Definition of Resource

What is the resource?

Resource could be defined as any thing used in production- both good and services. Economists have identified 5 types of resources used in the production function.
Those are
1) Labor
2) Capital
3) Land/Natural resource
4) Entrepreneurship

Labor is defined as “The time human beings spend producing goods and services”

Capital could be defined as “Something produced that is long lasting and used to produce other goods”

Natural resource is the naturally occurring materials that come with it. Land is also a natural resource.

The ability and willingness to combine the other resources- labor, capital, and natural resources – in to productive enterprise is called as “Entrepreneurship”

Capital could be divided in to 2 basic categories; those are Physical Capital and Human Capital.

Physical Capital is the part of the capital stock consisting of physical goods, such as machinery, equipments, and factories.

Human Capital is the skills and training of the labor force.

So, according to this we can identify that organizations have two basic inputs.
1) Capital
2) Labor

History of Human Resource Management

Organizations have many operational functions. HRD is one of the functions that is engaging with the tasks of an organization. In early 70 s there was no division called as Human Resource Department or Division. By that time there was only a division called "Personnel" engaged with the labor related in the organization.

Personnel Management was introduced by the end of 19th century. At that time, this was focused on the welfare of labors in the organizations. According to the tasks they have done, the officers at Personnel Department was called as "Welfare Officers". The special thing was, the employee welfare tasks were done by women at that time.

During the period of 1914-1939, many organizations has showed a quick growth and quick changes in needs and wants of the operations. Therefore the tasks done by women shifted to the men's, because of the complexity of tasks. These officers has called as "Labor managers" at that time.

After Second World War, during the period 1945 - 1979, this has grown up and changed to "Personnel Management", and Personnel Management was focus basically on employee administration and the legislation.

At late 70 s the economic of the world changed gradually and organizations started to consider labors work as an important resource. At the decade of 80 the concept of "Human Resource Management" was started and then it has shown growth gradually in decade of 1990. Finally the tasks and operations of personnel management was shifted to the Human Resource Management and it is functioning now in broad way in the organizations than Personnel Management.