When a worker enters the factory, it is not only the two hands and a few heat units of energy that he/she carries with him/her but also a live personality throbbing with aspirations and anxieties. HRM attracts the best quality people to join the organization and retains the achievers, performers by offering excellent pay packages, perquisites, challenging jobs, higher responsibilities, effective career planning and development. To figure out as to what extent the external factors affect the human resources, one of the prominent external features out of these are social factors. This plays a major role in an employment setting as the staff will be realise that they have responsibility and needed that the company would benefit from. Performance appraisal motivates employees to perform better. Motivation of workforce by providing financial and non-financial incentives and opportunity of promotion. Some employees regard Human Resource (HR) as the policing, traumatizing, systematizing arm of executive management. This is done by taking the following steps: (i) Forming the dignity of the employees as a ‘human-being’. Human resource management focuses on achieving higher production and most effective utilization of available resources, 1. His/her human aspects are subjective and changeable, qualitative and dynamic, and more often than not, with the passage of time, vary with a number of factors such as economic events, personal background and cultural environ­ment in which he/she has been brought up. He/she manifests himself/herself through his/her individual actions as well as group interactions. , 2008. iv. (ii) Maintaining the dignity of personnel at the workplace. (vi) Increase productivity and profitability. To provide facilities and conditions of work and creation of favourable atmosphere for maintaining stability of employment. The arrangement of training programs on regular basis helps employees to improve their skills, attitudes and knowledge. According to Lawrence Appleby, “Management is the development of people, not the direction of things. Here comes the HRM into picture. 3. It is rather unfortunate that human factor which is a living and an active factor of production and which activates the passive factors of production, namely land, capital and so on, and is the foundation pillar of industrial develop­ment has not received adequate attention. Employees express satisfaction over performance appraisal system. A Contemporary Approach. HR professionals were once largely concerned with complying with various regulations—a position sure to put them on the periphery of most organizations. Also, documentation was made effective as a means to remind staff of their responsibilities and to create awareness of the need to communicate effectively. The HR department conducts appraisals on regular basis. Social worker 1. Human resource management ensures that every employee makes his maximum contribution to the achievement of business goals. (b) It helps to develop the skills and positive attitude among the employees in the organization through proper training, development, performance appraisal etc. Human Resource Management (HRM) is the function within an organisation that focuses on the recruitment of, management and providing direction for the people who work in the organisation.Managing human resources is an important part of an organisation to understand the process for recruiting and designing strategies for building an effective team. It contributes to professional growth in the following ways: (a) This provides good opportunities to the employees to develop in the organization. Dynamic and growth-oriented organisation do require effective management of people in a fast-changing environment. 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