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Module 1 · Introduction & Scope

Human Resource Management · Notes

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1. Concept of HRM

Key definitions (remember author + keyword):

Author Keyword to remember
Leon C. Megginson HR = knowledge, skills, creative abilities, talents, aptitudes (national + enterprise view)
Michael Armstrong “Strategic and coherent approach” to most valued assets (people)
Edwin B. Flippo Planning, organizing, directing, controlling of P-D-C-I-M-S*
Indian Institute of Personnel Management (IIPM) Responsibility of all who manage people; “people at work + their relationships”

*Flippo’s functions = Procurement, Development, Compensation, Integration, Maintenance, Separation.

Clinical analogy: HRM is the physiology of an organisation — the body has organs (departments), but HRM keeps the people (cells) healthy, coordinated, and performing.

2. Characteristics of HRM (6)

Memory hook: “U-P-S-C-L-P” → Universal, People, Staff, Comprehensive, Line, Pervasive.

3. Scope of HRM

IIPM’s 3 core aspects:

Aspect Covers
Personnel Aspect Manpower planning, recruitment, selection, placement, transfer, promotion, training & development, layoffs/retrenchment, remuneration, incentives, productivity
Welfare Aspect Working conditions & amenities — canteen, crèche, rest/lunch room, medical assistance, education, health, safety, recreation
Industrial Relations Union–management relations, joint consultation, collective bargaining, grievance & disciplinary systems, settlement of disputes

Added over the years: HR Planning · Employee Assistance · HR Information System (HRIS) · Organizational Development (the “synergetic effect”) · Selection & Staffing · Employee Training & Development.

4. Objectives of HRM (10)

Goal = attain organisational goals economically + effectively while promoting employee welfare.

  1. Procurement of personnel (get capable people).

  2. Effective utilisation of human resources.

  3. Build desirable working relationships.

  4. Raise morale of employees.

  5. Cost containment.

  6. Integration of goals (individual/group ↔︎ organisation).

  7. Maximum individual development.

  8. Satisfy individual needs & group goals (fair remuneration, security).

  9. Healthy employer–employee relations (“minimum cost, maximum profit”).

  10. Disciplined atmosphere at work.

5. Importance of HRM — 4 Levels

Level Why it matters
Enterprise Attract/retain talent, develop skills & attitudes, secure cooperation, utilise HR, ensure future competent team
Professional Improves quality of work life, teamwork, personal development, healthy relationships, proper work allocation
Social Enhances dignity of labour, suitable employment, balances jobs ↔︎ jobseekers, conserves physical/mental health
National Skilled committed manpower drives economic growth → higher living standards & fuller employment

Trading analogy: Human capital is the compounding asset — two firms with identical resources diverge in returns purely on quality of people (like two traders with the same capital but different skill).

6. Functions of HRM

Two broad classes: Managerial + Operative.

A. Managerial Functions (P-O-D-C)

B. Operative Functions (5)

Function Activities
1. Procurement Job Analysis → HR Planning → Recruitment → Selection → Placement → Induction/Orientation
2. Development Performance & Potential Appraisal, Training, Executive Development, Career Planning & Development
3. Compensation Job Evaluation, Wage & Salary Administration, Bonus (Payment of Bonus Act, 1965)
4. Integration Reconcile org ↔︎ member goals: motivation, job satisfaction, grievance handling, collective bargaining, workers’ participation, counselling, QWL
5. Maintenance Protect physical/mental health: fringe benefits (housing, medical, conveyance), social security (PF, pension, gratuity, maternity, insurance), safety + records/research

Watch the difference (common trap):

7. Role of HRM (8 roles)

8. Origin, Evolution & Development of HRM

Seeds in Industrial Revolution (1850s), Western Europe & USA → reached India early 20th century.

Era Key person / event Core idea
1. Trade Union Movement Royal Commission of Labour India 1911 (Whitley); Trade Union Act 1926 Abolish ‘jobber’ system; protect workers → birth of collective bargaining, grievance handling, arbitration
2. Social Responsibility Robert Owen (British industrialist) Paternalistic — owner = father, worker = child; shower baths, model villages, ↑ min wage, ↓ hours 12→10
3. Scientific Management F.W. Taylor 4 principles: scientific work methods, scientific selection/training, division of work, harmony & cooperation
4. Human Relations Hugo Munsterberg; Elton Mayo — Hawthorne Experiments (1924–32) A happy worker is a productive worker; social/psychological needs > physical environment
5. Behavioural Science Sociology/psychology/anthropology scholars Human behaviour = means to efficiency; motivation, leadership, group dynamics; people enjoy work
6. Contingency Approach Mary Parker Follett (“Law of the Situation”), Taylor, Fayol No single best way — match management to the situation
7. Systems Approach — Org = interdependent sub-systems (Technical, Social, Power); inputs→transform→outputs→feedback; MIS at core

Hawthorne findings (high-yield, 5):

  1. Physical environment had no material impact on efficiency.

  2. Favourable worker/team attitudes mattered more.

  3. Meeting social & psychological needs ↑ morale & efficiency.

  4. Informal groups strongly influenced performance.

  5. Money alone doesn’t motivate — security, recognition, voice do.

Clinical analogy (Human Relations Era): Like the placebo effect — the psychosocial context (attention, being observed/cared for) changed outcomes more than the physical intervention itself. That’s literally what Hawthorne showed.

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