2. MODULE 1
Introduction to HRM
SHAFEEQ RAHMAN K
ASSISTANT PROFESSOR

3. Title & Indicative Content
• Introduction to Human Resource Management
• Definition and importance of HRM
• Historical development of HRM
• Major theories and concepts of HRM
• Applications of HRM in business

4. • Introduction, evolution of HRM, theory of HRM, perspectives in
people management, best fit models, SHRM, themes of HRM
• Forces Shaping HRM at work: Introduction, globalization and global
comparisons, labour market patterns of employment, flexibility and
fragmentation at work, legal framework for HRM and employment
relations, the institutional framework for HRM

5. HUMAN RESOURCE MANAGEMENT
• Human resource refers to the total knowledge, skills, creative,
abilities, talents & aptitudes of an organization workforce as well as
the values, attitudes & beliefs.
• It includes both quantitative & qualitative measurement.
• Human resource are also called human assets or human capital.
• Human resource management is the planning, organizing, directing &
controlling of the procurement, development, compensation,
integration, maintenance & reproduction of human resource to the
end that individual, organizational & societal objectives are
accomplished.

6. Definition
• Human resource management is the planning,
organizing, directing & controlling of the
procurement, development,
compensation,integration,maintenance&reprodu
ctionofhuman resource to the end that
individual,organizational& societal objectives are
accomplished

7. Features of HRM
• Management function
• Comprehensive function
• Individual consideration
• Action oriented
• Continues function
• Development of Human resource
• Pervasive in nature
• Achievement of objectives
• New Discipline

8. Importance of HRM
• 1. Importance to organization
a) Helps in Procurement of talented persons, recruitment,
selection, motivation etc.
b) Helps to obtain cooperation among employees for achieving
organizational objectives
c) Helps best utilization of human resource
d) Helps in setup proper and effective work force

9. 2. Importance to Professional
• a) Helps to provide maximum opportunity to employees for their
career development
• b) Helps to provide healthy relationship among employees
• c) Helps in proper allocation of works among employees
• d) Helps to provide training to employees for their career
development

10. 3. Importance to society
• a) Helps to enhance dignity of labour
• b) Helps to provide psychological and social satisfaction to
employees by appointing right job
• c) Helps to increase standard of living by providing best
remuneration
• d) It helps to mental and physical securance to employees by
providing safety measures like insurance etc

11. 4. Importance to Nation
• a) Helps to speedup economic growth
• b) Helps increase standard of living
• c) Helps to create more employment opportunities

13. According to DaleYoder_The Scope of HRM is
• Getting general and specific management policy for organisational
relationships,and establishing and maintaining a suitable organisation fo
rleadership and co-operation.
• Collective bargaining, contract negotiation, contract administration and
grievance handling.
• Staffing the organisation,finding,getting and holding prescribed types a
nd numberb of workers.
• Aiding in the self-development of employees at all levels providing
opportunities for personal development and growth as well as for
acquirin g requisite skill and experience.

14. Continue...
• Developing and maintaining motivation for
workers by providing incentives.
• Reviewing and auditing manpower managementb
in the organisation.
• Industrial relations research - carrying out studies
designed to explain employee behavior and there
by effecting improvement in manpower
management

15. Objectives of HRM
1. General Objectives
A) Optimum individual development
B) Creation of good human relationship
C) Moulding of human resources to achieve maximum
production

16. Specific Objectives
1. Selection of right type of individual for the right job
2. Provision for training facilities
3. Orientation to new employees
4.Arrange better working condition and facilities
5. Provide fair wages, salaries and other incentives
6. Provide Retirement benefit
7. Maintain Good relationship with trade union and all employees
8. Facilitate material and mental satisfaction of employees

18. Managerial Functions

19. 2. Organizing
• Design and develop organisation structure to carry
out the various operations.
• The organisation structure basically includes the
following:
• Grouping of personnel activity logically into functions or
positions;
• Assignment of different functions to different individuals;
• Delegation of authority according to the tasks assigned
and responsibilities involved;
• Co-ordination of activities of different individuals.

20. Directing
• The direction function of the personnel manager involves
encouraging people to work willingly and effectively for the goals of
the enterprise.
• In other words, the direction function is meant to guide and
motivate the people to accomplish the personnel programs

21. Controlling
• Controlling is concerned with the regulation of activities in
accordance with the plans, which in turn have been formulated on
the basis of the objectives of the organisation.
• It involves performance appraisal, critical examination of personnel
records and statistics and personnel audit

22. Operative Functions
1. Employment
a. Recruitment
b. Selection
c. Placement
2. Training and Development
3. Compensation
4. Integration and Maintenance
provision of cafeteria, rest rooms, counseling, group insurance, education
for children of employees, recreational facilities, etc.

23. Continue
5. Motivation
6. Personal Records
7. Promotion, Transfer, and Termination
8. Negotiation with Trade Unions

24. Advisory Functions
• Advice to Top Management
In formulation and evaluation of personnel programs,
policies and procedures. He also gives advice for
achieving and maintaining good human relations and
high employee morale.
• Advice to Departmental heads
Manpower planning, job analysis and design,
recruitment and selection, placement, training,
performance appraisal, etc.

26. Evolution of Human Resource Management:-
• 1)Commodity concept
• The separation of owners from managers breaks the close relationships between owners & employees. Labor
began to be considered a commodity to be bought & sold
• 2)The factor of production concept
• employees were considered a factor of production, just like land, materials & machinery. Taylor’s scientific
management stressed proper selection & training of employees To maximize productivity
• 3)The paternalistic concept (welfare schemes)
• Employees organized together based on their shared interests & formed trade unions to improve their lot.
Employers have a fatherly and protective attitude towards their employees. The welfare schemes included
health facilities, recreation facilities, pension plans, group insurance schemes, etc. Employers & employees
both began to realize that they cannot survive and prosper without each other.
• 4)Humanitarian concept (human problems)
• Industrial psychologists pointed out that an employer was not merely interested in material rewards. Instead,
social and psychological Satisfaction was equally important
• 5)Human resource concept (employees as valuable assets of organization)
• Efforts were made to integrate employees with the organization so the organization’s goals and employees’
could be achieved simultaneously
• 6)Emerging concept
• Now, employees are considered partners in the Industry. They are gradually being given shares in the
company’s stock membership. Workers’ representatives are being appointed to the board of directors

27. ✔Human resource department is established as a staff department to advise
all other departments and the top management on human resource matters.
✔Human resource manager as the head of the human resource department
exercise line authority over his own staff but in relation to other department
he is a staff expert expected to provide advice& information on human
resource matters.
✔Human resource management is a line management responsibility but a staff
function.
✔HRM department creates &maintains the environment in which employees
can work effectively to accomplish organizational goals &at the same time
satisfy their personal needs.
✔The recognition that employees are central to achieving competitive
advantage has to the emergence of new discipline known as strategic human
resource management

28. 1. Period before industrial revolution –
• ➢ The society was primarily an agriculture economy with limited
production
• ➢ Number of specialized crafts was limited and was usually carried
out within a
• village or community
• ➢ That time apprentices assisting the master craftsmen.
• ➢ Communication channel were limited.
• ➢ India , China and Greece is treated as the origin points of HRM
concepts

29. Period of industrial revolution (1750 to 1850) –
• ✓ Industrial revolution marked the conversion of economy from agriculture based upon
industry. Modernization and increased means of communication gave way to industrial
setup.
✓ A department was set up to look into workers wages, welfare and other related issues.
This led to emergence of personnel management with the major task as Worker’s wages
and salaries - Worker’s record maintenance Worker’s housing facilities and health care
✓ An important event in industrial revolution was growth of Labour Union (1790) the
works working in the industries or factories were subjected to long working hours and very
less wages. With growing unrest, workers across the world started protest and this led to
the establishment of Labour unions.
✓ To deal with labour issues at one end and management at the other Personnel
Management department had to be capable of politics and diplomacy, thus the industrial
relation department emerged.

30. Founder of personnel management Robert Owen. In 1813 he wrote a
book namely “a new view of society”. Through this work he emphasis
the better industrial relation and better working condition to workers.
He suggest the attitude towards workers will be very cordial liberal and
paternalistic

31. Post Industrial revolution –
• ❖ The term Human resource Management saw a major evolution after 1850.
• ❖ Various studies were released and many experiments were conducted during this
period which gave HRM altogether a new meaning and importance. A brief overview of
major theories release during this period is presented below
• ❖ Frederick W. Taylor gave principles of scientific management (1857 to 1911) led to the
evolution of scientific human resource management approach which was involved in –
Worker’s training - Maintaining wage uniformity, and focus on attaining better
productivity
• ❖ Hawthorne studies, conducted by Elton Mayo
• •- Focus on attaining better productivity. & Fritz Roethlisberger (1927 to 1940). –
Observations and findings of Hawthorne experiment shifted the focus of Human
resource from increasing worker’s productivity to increasing worker’s efficiency through
greater work satisfaction.
• ❖ They suggest that workers must be treated as a human being and the management
will recognize his social psychological and moral instincts
Seek and accept responsibility, and need little direction

33. Douglas McGregor Theory X and Theory Y
(1960)
In 1960, Douglas McGregor formulated Theory X and Theory Y
suggesting two aspects of human behaviour at work, or in other
words, two different views of individuals (employees): one of which is
negative, called as Theory X and the other is positive, so called as
Theory Y. According to McGregor, the perception of managers on the
nature of individuals is based on various assumptions.

34. Assumptions of Theory X
• An average employee intrinsically does not like work and tries to escape it
whenever possible.
• Since the employee does not want to work, he must be persuaded,
compelled, or warned with punishment so as to achieve organizational
goals. A close supervision is required on part of managers. The managers
adopt a more dictatorial style.
• Many employees rank job security on top, and they have little or no
aspiration/ ambition.
• Employees generally dislike responsibilities.
• Employees resist change.
• An average employee needs formal direction.

35. Assumptions of Theory Y
• Employees can perceive their job as relaxing and normal. They exercise
their physical and mental efforts in an inherent manner in their jobs.
• Employees may not require only threat, external control and coercion to
work, but they can use self-direction and self-control if they are dedicated
and sincere to achieve the organizational objectives.
• If the job is rewarding and satisfying, then it will result in employees’
loyalty and commitment to organization.
• An average employee can learn to admit and recognize the responsibility.
In fact, he can even learn to obtain responsibility

36. • The employees have skills and capabilities. Their logical capabilities
should be fully utilized
• In other words, the creativity, resourcefulness and innovative
potentiality of the employees can be utilized to solve organizational
problems.
• Thus, we can say that Theory X presents a pessimistic view of
employees’ nature and behavior at work
• while Theory Y presents an optimistic view of the employees’
nature and behavior at work.

37. Maslow’s Hierarchy of Needs Theory
• Abraham Maslow is well renowned for proposing the Hierarchy of
Needs Theory in 1943. This theory is a classical depiction of human
motivation. This theory is based on the assumption that there is a
hierarchy of five needs within each individual. The urgency of these
needs varies. These five needs are as follows
• 1. Physiological needs- These are the basic needs of air, water, food,
clothing and shelter. In other words, physiological needs are the
needs for basic amenities of life.
• 2. Safety needs- Safety needs include physical, environmental and
emotional safety and protection. For instance- Job security, financial
security, protection from animals, family security, health security,
etc.

38. • 3. Social needs- Social needs include the need for love, affection,
care, belongingness, and friendship.
• 4. Esteem needs- Esteem needs are of two types: internal esteem
needs (selfrespect, confidence, competence, achievement and
freedom) and external esteem needs (recognition, power, status,
attention and admiration).
• 5. Self-actualization need- This include the urge to become what
you are capable of becoming / what you have the potential to
become. It includes the need for growth and self-contentment. It
also includes desire for gaining more knowledge, social- service,
creativity and being aesthetic. The selfactualization needs are never
fully satiable. As an individual grows psychologically, opportunities
keep cropping up to continue growing.

39. • According to Maslow, individuals are motivated by unsatisfied
needs.
• As each of these needs is significantly satisfied, it drives and forces
the next need to emerge.
• Maslow grouped the five needs into two categories - Higher-order
needs and Lower-order needs.
• The physiological and the safety needs constituted the lower-order
needs. These lower-order needs are mainly satisfied externally.
• The social, esteem, and self-actualization needs constituted the
higher-order needs. These higher-order needs are generally
satisfied internally, i.e., within an individual.

40. Theory X and Y Relation with Need theory
• If correlate it with Maslow’s theory, we can say that Theory X is
based on the assumption that the employees emphasize on the
physiological needs and the safety needs; while Theory X is based
on the assumption that the social needs, esteem needs and the self-
actualization needs dominate the employees.
• McGregor views Theory Y to be more valid and reasonable than
Theory X. Thus, he encouraged cordial team relations, responsible
and stimulating jobs, and participation of all in decision-making
process.

41. • These studies and observations led to the transition from the
administrative and passive Personnel Management approach to a
more dynamic Human Resource Management approach which
considered workers as a valuable resource.
• As a result of these principles and studies, Human resource
management became increasingly line management function, linked
to core business operations.
• Some of the major activities of HR department are listed as-
• 1. Recruitment and selection of skilled workforce.
• 2. Motivation and employee benefits
• 3. Training and development of workforce
• 4. Performance related salaries and appraisals

42. Find characteristics of theory X & Y people
 Unmotivated
 Happy to work
 Lazy
 Intrinsically motivated
 Hate to work
 More involved in decision making
 Forced to work
 creative
 Punishment needed
 Taking additional duty
 Need to be supervised at every step.
 Seek and accept responsibility, and need little direction
 no incentive to work or ambition
 Happy to work on their own initiative.

43. • THANKS