Top management expects HR managers to assume a broader role in overall organizational strategy. HRM is playing a vital role in creating and sustaining the competitive advantage of an organization. In order to carry out their expanded role, many HR professionals will need to acquire competencies such as these:



1.    Business capabilities. HR professionals will need to know the business of their organization thoroughly. This requires an understanding of its financial capabilities.

  1. State-of-the-art HRM practices. HR professionals will be the organization’s behavioral science experts. HR professionals should develop competencies in staffing, development, appraisal, rewards, team building, and communication.
  2. Management of change process. HR professionals will have to be able to “manage change processes” so that HR activities are effectively merged with the business needs of the organization.


The ability to integrate business, HRM, and management of change is essen­tial. By helping their organizations build a sustained competitive advantage and by learning to manage many activities well, HR professionals will become strate­gic business partners. Many of the most forward-looking CEOs are seeking top HR managers who will report directly to them and help them address key issues.

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