HRM itself is the new avatar of 'Personnel Management'. Personnel management was largely concerned with the technical aspects of hiring, evaluating, training, and compensating employees. HRM on the other hand leaves scope for career building of the employee, development of a professional relationship and the satisfaction aspect. as per the latest trend, the 'individual' acquires a central place in the HR policies being devised by the management. HRM mainly intends to bring optimum out of the individual so that the company gets maximum output and in turn the individual too gets his due share of profit. This further inspires the individual as well as the team to perform par excellence.
Human Resource Management is a very crucial and an integral part of any organization. The very fact that now people are being considered as resource instead of liability marks the importance of human beings constituting this resource. Human Resource environment as such is affected mainly by the following five factors;