An Industrial Revolution of 1950, has brought about specialization and growth in the size of the organizations, awakening in labour, resulting in the formation of various labour organizations and federation. Cultural and social changes are now very fast due to the changes in the educational background, changes in social values of labour and changes in the managerial viewpoint, etc. In addition, to the above changes, there are fast changes in the form of business organizations, cooperation of science and industry and the control and coordination in industrial set-ups.

Now the subject of Personnel Management has acquired considerable authority and is fruitfully utilized for the welfare of personnel serving in the industry. This has acquired more dimensions, scope and significance in the wake of recent increase in industrial unrests. Now personnel management is called as "Human Resource Management”. Human Resource Management deals with ‘personnel’ of the organisation. So it needed to obtain and retain employees or to get and keep workers.

Any business is a partnership of shareholders, employees, consumers, community and the Government. Each of these partners have different expectations from the business. The shareholders expect higher dividend; the employees job security; job satisfaction and growth; the consumers-better value for the money in terms of the quality and service; the community-the fulfilment of social obligation and price stability and the Government- the economic growth and development of the country. The challenge before the managers is to merge and balance the interest and expectations of various partners in the business and to ensure the productive utilization of various resources. The managers have the responsibility of safeguarding the public and national interest besides meeting their obligation towards the organization, employees, and consumers and all those who deal and transact with the society and the nation as a whole. Managers should endeavour to accomplish the modern methods of effective management and efficient administration. All aware of the various resources, e.g. Material, Machine, Men, Money, Energy and Management are all important in achieving the productivity of the organization. It is the human asset, the centre of all resources which converts the various resources into the productive resource.

Organizations of today are producing products and services which were unknown in the past and thus giving a new life with more material comforts than ever before. All these comforts are possible through the effective utilization of human resource which need to be polymerized in an organization to result in a cohesive and enormous force. The human polymerization needs individual, ideas and desire of organisational system. Polymerisation could be possible if an individual would establish a 'bond with other individuals, multiply and generate power to create, build and to produce. It is the human resource which has to harness all other resources effectively. It is only the human resource which appreciates with time whereas all other resources undergo the process of depreciation. Human resource adds to value, while all other resources add to the cost. All the terms buy the same material and the machines but it is the people in the firm who build the organization and make a difference in the final product. A machine's maximum value reaches the day it starts producing. Man never reaches an ultimate value throughout his life time at work, but is able to change, grow and enrich his value.

Success of an organization mainly depends on the quality of its manpower and its performance. Any forward looking management will be greatly concerned with the problems of developing adequate talent for manning various positions in the organization. There is a need for effective manpower planning and development, motivation, effective personnel policies and leadership, resulting in an organizational climate which may adapt to the changing and dynamic environment. The role of building a motivated management inventory is with the managers managing the Human Resource. Gone are the days of handicraft when it was possible to take the best efforts from workers who were the members of the same family. In the era of automation and computerization, there is a need to create an atmosphere within the organization so that the work force is motivated for honest and sincere efforts. The will to be something different from the power or capacity to work. One can buy man's time, his physical efforts, but not his enthusiasm, initiative or loyalty. Thus, enthusiasm or willingness to work can be created by motivation.

Motivation means inspiring the person with a zeal to work for the accomplishment of the organizational objectives. Effective motivation succeeds not only in having an order accepted but also in gaining determination to see that it is fulfilled efficiently and effectively. Everyone knows that motivation gains momentum when it embraces leadership and direction that can elicit the full cooperation of the team which is so vital to the organization. Basic concept behind motivation is to emphasize the importance of human resource and how this resource can utilize other resources effectively. Because human performance is a product of ability and motivation and business performance being the product of human performance and physical factors, therefore, motivating the force which is the product of situation and the attitude of the people need to be cultivated by the practising managers so that they are able to get the best and consistent work out of their people towards productivity and resource utilization. Management is primarily a human activity. The various functions of a manager, may be in any discipline- Material, Finance, Production or Engineering can be classified as Managerial Functions and Operative Functions. The managing functions in all the above disciplines are identical, i.e., Planning, Organising, Directing, Coordinating and Controlling but the operative functions vary depending on the discipline.

Therefore, for effective managerial functions, the professional art and science of working with and through the people is very important. Effective management is as good an asset as material, finance, machine, etc. Effective management is the life blood of an organization. Management adds a real plus value to the operation of any enterprise. It is like adding two plus two and getting five. Management is an activating resource which provides new ideas and vision to the work group for smooth flow of work by strengthening weak links and establishing team spirit amongst the personnel.