PARA 13.2|IC 90, HRM One Liner|Chapter-1 | Introduction to Management Science

PARA 13.2|IC 90, HRM One Liner|Chapter-1 | Introduction to Management Science

Insurance exams offered by the Insurance Institute of India (III), consist of various papers either in Life or Non Life or Combined. Here we are providing ONE LINER IC 90, HRM Chapter 1- Introduction to Management Science for para 13.2 and III exam . These questions will be very helpful for upcoming promotional exam in 2020.

IC 90, Human Resource Management is a very important topic in insurance promotional exam. This IC 90, Human Resource Management paper comes in all GIPSA exams which makes it very important.

♦Chapter 1- Introduction to Management Science

1)Management: Every organisation has a variety of resources at its disposal. They are acquired at a cost. They are meant to be applied to achieve certain predetermined objectives of the organisation.

2)Individuals pursuing objectives (also called goals) also use resources like money, time, equipments, materials, etc to attain the objectives.

3) Principles of management: Principles of management apply to such individual pursuits as well. But the dimensions of the resources in organisations being much larger, the principles have been developed in the context of organisations.

4)To manage well even a simple job as the one referred to in the earlier paragraph, it would be necessary:

  • for someone to be in charge of the operation (Responsibility), for him to know what should be the final result when the job is completed (Objective),
  • to work out how the job should be done and how much time it should take (Planning),
  • the number of persons to be engaged in the task and the amount of money and other resources that may be required (Resources) and then arrange to gather the resources (organising)

5)Management science: Management science deals with issues relating to managing a group of persons and other resources in such a way as to achieve the objectives for which the group is formed.

6)Resources in management:  Men,  Materials, Machines, Money and Minutes (Time)

7)Human resource: The expression „human resource‟ refers to People. It is the most critical resource in an organisation.

8)The main schools of thought which helped in developing management science are the following:

  • Max Weber‟s Ideal Bureaucracy Theory
  • Taylor‟s Scientific Management
  • Movement Administration Theory
  • Human Relations Approach
  • Systems Approach
  • Contingency Approach

9)Max Weber‟s Ideal Bureaucracy Theory : One of the earliest writers on management was Max Weber (1864 – 1920). He was a German professor in sociology. In his book titled, „The Theory of Social and Economic Organisation‟, Weber described a formal organisation as a „Legal – Rational‟ system based on precisely defined and organised „across-the-board‟ competencies of various offices and individuals. He called such a system a Bureaucracy.

10)Taylor‟s Scientific Management:The year 1911 marked the beginning of a new school of management thought which became famous under the name of „Scientific Management‟. This school of thought was developed by Frederick W. Taylor (1856 – 1915). Taylor applied engineering principles to study work done in factories and find ways to improve efficiencies. He began to experiment with the methods of doing work and found that changes in methods would increase the outputs per worker with reduced effort and therefore help the worker to improve his wages.

11)Authority Bureaucracy: The foremost theorist of bureaucracy is the German sociologist Max Weber (1864–1920), who described the ideal characteristics of bureaucracies and offered an explanation for the historical emergence of bureaucratic institutions. According to Weber, the defining features of bureaucracy sharply distinguish it from other types of organization based on nonlegal forms of authority. Weber observed that the advantage of bureaucracy was that it was the most technically proficient form of organization, possessing specialized expertise, certainty, continuity, and unity.

12) Administration Theory: Henri Fayol (1841-1925) a French industrialist, based on his experiences of managing a mining company, put forward the first theory of general management which came to be known as the Administration Theory. In 1916, Fayol enumerated fourteen principles of management. Fayol‟s contribution was broader than that of Taylor. Fayol‟s fourteen principles are comprehensive and embrace almost the essentials of all the functions of management.

The fourteen principles are

  • Division of Work
  • Authority and Responsibility
  • Discipline
  • Unity of Command
  • Unity of Direction
  • Subordination of Individual interest to the Common Good
  • Fair Remuneration
  • Centralisation
  • Scalar Chain
  • Order
  • Equity
  • Stability of tenure of personnel
  • Initiative
  • Esprit-de-Corps or Union is Strength

13) System approach: The systems approach seeks to understand the dynamics of such interactions of the parts of a system and the whole of it.

14) A “system‟ is an organised unitary whole, comprising of two or more inter- dependent parts or components, called subsystems.

15) By way of analogy, one may think of the human body. The body functions as a result of the coordinated efforts of its various parts like the nervous system, the digestive system, the respiratory system, etc.

16) Each of these subsystems is dependent and related to each of the other subsystems. Unless these subsystems function in unison, the end result is the mal-functioning of the total system viz. the body.

17) Types of System

  • An open system receives inputs from the environment, transforms the inputs into outputs and sends the outputs to the environment.
  • A closed system has little contact with the outer environment.

18) The Contingency Approach :  According to this approach management science considers that management is a complex process and that there is no single approach to management matters. This is known as the contingency approach and this approach is still being refined so as to be of help in designing organisations to be more and more effective.

19)The Human Relations approach made the following important contributions to management thought:

  • Organisations are social entities in addition to being technical entities.
  • Rational economic assumptions about human behaviour were inadequate to explain behaviour at work.
  • Informal work groups exist in organisations, with affiliations different from the formal work groups
  • The understanding of informal work group culture is crucial to understanding behaviour of workers at work
  • Productivity is intimately related to workers‟ satisfaction
  • Workers‟ motivation is not based merely on economic considerations, but sentiment and need for social affiliation also play important roles.
  • Workers‟ participation is important especially in communication and decision – making

20)The Human Relations Movement (HRM), triggered off an entirely new branch of study called Organisational Behaviour (OB). Yet the concepts developed by Weber, Taylor and Fayol cannot be considered irrelevant, in modern times.

21)The piece rate system is that system of wage payment in which the workers are paid on the basis of the units of output produced. Piece rate system does not consider the time spent by the workers. Piece rate system is the method of remunerating the workers according to the number of unit produced or job completed.

22)Human resource management procedures describe responsibilities and processes in relation to recruitment and employment arrangements, employee entitlements, workforce management, staff development and health, safety and wellbeing within DoE workplaces.

23) Rational describes choices that are consistent and value-maximising within specified constraints

24) Bounded rationality is behaviour that is rational within the parameters of a simplified decision-making process which is limited (or bounded) by an individual’s ability to process information.

25) Social systems theory as a grand social theory has a number of contributions to offer for the theoretical foundation of HRM. It advocates a focus on social processes and not on individual behaviour and proposes a new role for the individual in the internal environment of the organisation.

26) Time and Motion Study is not actually a theoretical concept but is actually one of the most powerful tools for Human Resource Management in organizations which are suffering from over staffing and seek to explore optimal usage of resources and ensure maximum possible utilization

Join Telegram Group: Click Link

Para 13.2 Maha Combo Mock

App  Link

Mahacombo ✅

  • 111 Online Mock Tests
  • 4775 Total MCQ’s
  • 15 Fire Mock Tests
  • 15 Marine Mock Tests
  • 13 HRM Mock Tests
  • 15 Miscellaneous Mock Tests
  • 3 Full Length Mock Tests
  • Current Affairs Mock Tests (Covered from January 2020 to Till Exam)
  • 10 Static Mock Tests
  • 20 English Mock Tests
  • With Explanations
  • English Language Only
  • Access on Web and App 24/7

Read More IC 67 Oneliners Chapter wise

Buy Online Mock Tests for GIPSA & Para 13.2 Exams


IC-01 Principles of Insurance Online Mock Tests Click Here
IC 92 Actuarial Aspects of Product Development Online Mock Tests Click Here
IC 86 Risk Management Online Mock Test Click Here
IC 85 Reinsurance Online Mock Tests Click Here
IC-90 HRM Online Mock Tests Click Here
IC-14 Regulation of Insurance Business Online Mock Tests Click Here
IC-11 Practice of General Insurance (Licentiate) Online Mock Tests Click Here
IC-57 FIRE Insurance Online Mock Test Click Here
IC-67 MARINE Insurance Online Mock Test Click Here
IC-78 MISCELLANEOUS Insurance Online Mock Test Click Here
IC-72 Motors Online Mock Tests Click Here
IC 02 Click Here
IC-26 Click here
IC-76 Click Here
IC-27 Click here

Leave a Reply