The centuries old methods of management have become totally obsolete. The new model of management lays stress on human being and its intellect as the main resource of development.
It is accepted view that the progress, fiscal growth and development of a particular society and country depend on the strength, abundance and vastness of its natural resources. The more the natural sources the nation possesses the more rich and wealthy it was considered. But this old concept of management of an organization and its development has undergone drastic changes in structure and outlook. Now the emphasis has shifted from source toman. Now man is considered to be the real trigger factor of growth and development. Now the most prevalent and accepted view point is that the success of organizations hence a nation depends less in management of financial resources, distribution of material goods and more on technological advancement and the involved intellectual asset in this technological advancement.
Human resource management is the function within an organization or institution new work force and people who work within the organization. This new shift of approach has become very popular in society and educated circles. Human resource management is the organizational work to get the maximum from minimum with efficient management of manpower. It is altogether new model of management. Its main issues within a organization are as such performance management, organizational skill, organizational development,
Human resource, knowledge economy, intellectual asset, intellectual capitals are some of the new terms and economic concepts evolved to denote this change in management of financial organizations. These terms describe and accept the role of man and knowledge in running an organization and determing the future destiny of organization. The organizational psychology has undergone a paradigmatic shift in structure, attitude, management and purpose. Now instead of currency wealth or resources wealth intellectual wealth is considered to be the new wealth of organizations. In the center, the creation of new ministry “human resource development” called HRD brief, is indicative of this paradigmatic shift. There are three main components of human resource:
Human resource recruitment
Human resource management
Human resource development
In the new model natural source has been replaced by human capital. In the changed scenario of technological advancement and development man occupies the primary and pivotal position in functioning and working of an organization.