What do you understand by the term 'human resources'? Describe the nature of human resources.

Meaning of Human Resources — Human resources may be defined as the number of persons working in an organisation together with their knowledge, skills, experience, attitudes, motivation and potential. Organisations are made up of people and function through people. Without people, organisations cannot exist. Therefore, human resource is the most valuable and active resource of any organisation.

Nature/Features of Human Resources:

1. Most Valuable Resource — Human resources are the most valuable resource as the productivity of all other resources depends upon people.

2. Heterogeneous — Human resources are heterogeneous as they consist of different individuals with different backgrounds, skills, knowledge, attitudes and personalities.

3. Dynamic — Human resources are dynamic in nature. People have sentiments and emotions and their behaviour, expectations and aspirations change over time.

4. Possess Immense Potential — Human resources have immense potential which can be developed through proper training and motivation.

5. Active Resource — Unlike physical and financial resources, human resources are active. They make decisions and take actions, while other resources are passive.

6. Source of Innovation — Human resources are the source of new ideas, creativity and innovation, which give a competitive advantage to the organisation.

7. Cannot Be Stored — Unlike physical resources, human resources cannot be stored. The skills and time of employees not used today are lost forever.

8. Need Continuous Development — Human resources need continuous development through training, education and experience.