The most used model in management theory is the model of the bell curve, or a Gaussian distribution. If one were to study for an MBA anywhere in the world, one of the first things taught would be statistical control based upon a bell curve. Managers learn that the world consists of Gaussian distributions, and that one can safely ignore the occurrence of things or events past the second or third standard deviation. In theory, if one understands the bell curve, they understand how the world works. It’s an interesting reduction. It’s clearly a way of reducing the world in order to achieve an illusion of the ability to cope, and …. it’s dead wrong.
April 8, 2008 at 7:51 am
Gaussian statistics derive from one of many representations from this branch of mathematics and should be applied to populations that tend to be distributed accordingly. Most managers do not base decisions using even simple statistical models rather choosing more primative methods that can be more readily grasp. Operations research and systems engineering methods extend well beyond Gaussian models and generally do not enter discussions in any except the most sophisticated boardrooms having been discounted several organizational levels beneath if able to garner support whatsoever.