Some Organizational Factors Related to the Effectiveness of Management Science Groups in Industry

The organizational factors which can influence the “effectiveness” of a management science activity are discussed in this paper. The discussion is based on some preliminary findings from a series of studies, performed by Northwestern University, on the life histories of OR/MS groups in 66 large U.S. companies. Many companies could be observed having difficulties in absorbing their new management science functions. Such factors as the level of managerial support, client receptivity, organizational and technical capability of an OR/MS group i.e., the type and quality of its personnel and leadership, the organizational location, group reputation, the relevance of projects performed, and other variables are noted as being significant in determining effectiveness. How well established a group was in the organization is identified as being a critical factor in how these variables would influence the potential for a group's success or failure. This level of “establishment” is defined in terms of four life-cycle phases, namely, Pre-birth, Introductory, Transitional and Maturity. A case study demonstrating the appearance of these phases is presented. Successful implementation of a group's output is discussed as a possible measure of effectiveness. Client “receptivity” is related to the freedom permitted to a group, by their clients, to select projects, gather data, and implement proposals.