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YUM is a perfect tool to install packages easily. Through YUM we can resolve all the dependencies of the rpm we are going to install. By just writing "yum install packagename" we can install a package or by "yum remove packagename" we can uninstall a package without caring about its dependencies.
Step 1:- Copy Server folder from the RHEL DVD in to your hard disk (anywhere exceptRoot).
Also delete the folder named as REPODATA. For example I copied it in:
Step 2:- Install yum .rpm package from Server folder.
Step 3:- Create a file server.repo (named it anything but extension must be .repo)