HRM is involved in providing human dignity to the employees taking into account their
capacity, potentially, talents, achievement, motivation, skill, commitment, great abilities,
and so on. So, that their personalities are recognized as valuable human beings. If an
organization can trust, depend and draw from their bank account on the strength of their
capital assets, they can trust, depend and draw more on their committed, talented,
dedicated and capable people. This is what the HRM is involved in every business,
managerial activity or introduction.
The principal component of an organization is its human resource or ‘people at work’.
According to Leon C. Megginson from the national point of view Human Resources as,
“the knowledge, skills, creative abilities, talents and aptitudes obtained in the population;
whereas from the . view point of the individual enterprise, they represent the total of
inherent abilities, acquired knowledge and skills as exemplified in the talents and
aptitudes of its employees.”(2)
Human resource has a paramount importance in the success of any organization because
most of the problems in organizational setting are human and social rather than physical,
technical or economical failure. In the words of Oliver Shelden, “No industry can be
rendered efficient so long as the basic fact remains unrecognized that it is principally
(2) Leon C. Megginson, Personnel and Human resources Administration, Richard D.
Irwin Inc. Homewood, Illinois 1977.
(3) Human Resource Management, Geet S.D., Deshpande A.D. & Mrs. Deshpande
Asmita A., NIRALIPRAKASHAN, First Edition, Jan. 2009, P.24.