The vital resource namely human resource is significant because of the following reasons :
(i) It is only through human resource all other resources are effectively used.
(ii) Industrial relations depend on human resource.
(iii) Human relations is possible only through human resource.
(iv) Human resource manages all other factors of production.

According to Dale Yoder human resource management as ''the effective process of planning and directing the application, development and utilisation of human resources in employment''.

The functions of human resource management may be classified as:
(i) Managerial function
(ii) Operative function
(i) Managerial function:
Planning
Directing
Organising
Controlling
(ii) Operative function:
(i) Procurement
(ii) Compensation
(iii) Integration
(iv) Development
(v) Retention
(vi) Maintenance

The unique, peculiar and distinctive features of human resources are as under :
(i) Human resource is the only factor of production that lives.
(ii) Human resource created all other resources.
(iii) It is only the labour of employees that is hired and not the employee himself.
(iv) Human resource exhibits innovation and creativity.

In the words of E.F.L. Breach, HRM as that part of management process which is primarily concerned with the human constituents of an organisation.