Dear Prakash,
Libido, if seen in conjunction with Freud, has definite manifestations in the behavior patterns of individuals. This is why it is critical to HR.
Freud conceived of the mind as having only a fixed amount of psychic energy, or libido. Though the word libido has since acquired overt sexual implications, in Freud's theory, it stood for all psychic energy. This energy fueled thought processes, perception, imagination, memory, and sexual urges. In Freud's theory, the mind, like the universe, could neither create nor destroy energy, but merely transfer it from one form or function to another. Because the scope of the mind's capabilities was thus limited by the amount of psychic energy freely available, any process or function of the mind that consumed excess energy debilitated the ability of the mind to function normally. Repression, he held, demanded significant amounts of energy to maintain; even then, a repressed thought might come perilously close to becoming conscious, only to be redirected or defended against by a defense mechanism. Additionally, a fixation on a past psychosexual stage of development could permanently sap this libidinal energy, causing, in extreme cases, neuroses or worse.
The dynamic interaction between the id, ego, and superego, with each contending for as much libidinal energy as possible, illustrates the importance of the functions of the mind. A man who invests most of his libidinal energy into the cravings of his id will act and live much differently than the man whose guilt-inspiring superego consumes most of his libidinal energy. This constantly changing balance and interaction between the various functions of the mind, in Freud's theory, determines personality.
Best regards,
Deepak