Hi Aneekbanerjee86 and welcome to Hibernate.
The problem is in the following code:
<mapping resource="com.hibernate007.pkg.Employee"/>
It needs to be mapped an "hbm.xml" file that is available in the package you mapped, meaning "com.hibernate007.pkg", and it should use a slash ("/") notation and not a dot (.) notation. So create an "Employee.hbm.xml" file in the package "com.hibernate007.pkg" and change the mapping to "com/hibernate007/pkg/Employee.hbm.xml".
There is also a nice tutorial in: "http://ejbas-hibernate.blogspot.co.il/", that explains how to use Hibernate in a really neat and detailed step-by-step.
Good luck
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