For any organization we can say that employees are the most important assets. But they never considered in reflections of balance sheets of organization. Human assets may not be considered as own unlike physical assets. Therefore human resources were not considered amendable to financial reports. Human resource accounting may be referred to as a process of identifying measuring and communicating information about human assets in financial terms to aid human resource planning and control. Human resources always subject to improvement of quality and most of the organizations spend a lot of time, efforts and money to maintain that. They does this by means of training, development, performance appraisal, counseling, career planning and various employee benefits. The most human resource investments used to made based on faith, philosophy or compulsion earlier. But later cost conscious started spreading to human resource function too. Now human resource systems are changed and are also able to rate the performance of the employee. Changes in the human resource values indicate the changes in trends of employee turnover. Such changes prompt organization to relook at cost of hiring, pay and benefit programs and leadership styles.

In an organization planning of human resources starts with the analyzation of internal availability and status of human resources. An inventory is prepared to analyze the individual skills and capabilities of existing human resources by means of the inputs collected like name, education and expertise, prior to the joining of employee in the organization. Current position, performance rating and special skills are also considered in the analyzation. This data is very importantfor human resource planning to picturise the present availability of expertise, capabilities and skills in the organization and helps to guide to explore the possibilities of expansion or moderation of strategies. That also helps to increase the skills and capabilities of present resources in the organization by means of training and development. It also helps restructure the organization by promotions and transfers. Human resource information system is one effective system that helps an organization to compile the personal information needs of the organization, it helps the organization to retrieve all the information when ever is needed. This information is very necessary for an organization for planning successfully for the future human resource requirements.

An organization in process to achieve the goals or objectives it must ensure that it has enough number of people who can perform to achieve the goals. An organization must ensure the efficiency of the people and capabilities of the people to complete the tasks at right time that will help the organization achieve its overall objectives. That is human resource planning translates the objectives and plans into number of people needed to meet those objectives. The purpose of human resource planning is to assess whether the organization is going in right way to achieve the goals. Human resource planning comprises assessing current human resources. Analyzing and reviewing overall objectives and business projections. Forecast of demand. Forecast of internal and external supply sources. Matching demand and supply.

Management has got different meanings depending on the field where it applies. Management is applied in different ways by different people. Finally the meaning of management for any way may be understood as the role played to achieve the objectives of specific field in an organization. In other means we can say it as “Art of achieving the objectives by getting the things done by the people (employees). That is a manager achieves the objectives or goals of an organization by enabling or controlling other members of organization to perform a task rather performing the task himself. In fact, management encompasses a wide variety of activities that no single definition can capture all the facets of management. Management is the process of planning, organizing, leading and controlling the efforts of other members of organization by using the resources of organization to achieve the objectives. Management is a continuous process. Management aims at achieving the organization’s objectives by utilizing the resources of organization effectively.

Human resource management is concerned with the people dimension in management. Every organization is made up of people and thus acquiring their services, developing their skills, motivating them to high levels of performance, and ensuring that they continue to maintain their commitment to the organization are essential to achieving organizational objectives. This is applicable regardless of the type of organization-government, business, education, health, recreation, or social action. Hiring and retaining good people is vital to the success of every organization ,Whether profit or non profit, public or private. Those organizations that are able to acquire, develop, stimulate, and retain outstanding workers will be both effective and efficient. Those organizations which are ineffective or inefficient risk the hazards of stagnating or going out of business. Survival of an organization requires competent managers and workers coordinating their efforts towards a common goal. While successful coordination cannot guarantee success, organizations which are unsuccessful in getting such coordination from managers and workers will ultimately fail. To look at HRM more specifically, it is a process consisting of four functions-acquisition, development, motivation and maintenance-of human resources. These functions can be getting people, preparing them, activating them, and retaining them. The acquisition function begins with planning. Relative to human resource requirements, the organization needs to know where it is going and how it is going to get there. This includes the estimation of demands and supplies of labour. Acquisition also includes the recruitment, selection, and socialization of employees. The development function can be viewed along three dimensions. The first is employee training, which emphasizes skill development and the change in attitudes among workers. The second is management development, which concerns itself primarily with knowledge acquisition and the enhancement of an executive’s conceptual abilities. The third is career development , which is continual effort to match long term individual and organizational needs. The motivation function begins with the recognition that individuals are unique and that motivation techniques must reflect the needs of each individual. Within the motivation function, alienation, job satisfaction, performance appraisal, behavioral and structural techniques for stimulating worker performance, the importance of linking rewards to performance, compensation and benefits administration, and how to handle problem employees are reviewed. The final function is maintenance. In contrast to the motivation function, which attempts to stimulate performance, the maintenance function is concerned with providing those working conditions that employees believe are important in order to maintain their to the organization. Within the confines of the four functions- acquisition, development, motivation and maintenance-many changes have occurred over the years. What once was merely an activity to find a warm body to fill a vacancy has become a sophisticated process of finding , developing and retaining the best –qualified person for the job .But this metamorphosis did not occur overnight . It is the result of many changes in management thought, society, and the workers themselves.