An organization's human resource management (HRM) function focuses on
the people aspect of management. It consists of practices that help the
organization deal effectively with its employees during the various
phases of the employment cycle. Organization's success depends on how an
organization manages its resources. Human resource is becoming more
important because many other sources of competitive successes are less
powerful than they once were. As the basis of competitive advantage has
changed it is essential now to develop a different frame of reference
for considering issues of management and strategy. Competitive advantage
is a status achieved by a company when gaining a superior market place
position relative to its competition. Organizations can gain competitive
advantage over competitors by effectively managing their human
resources. HRM practices of an organization can be an important source
of competitive advantage. As the management of human resources is less
susceptible to imitation, the competitive advantage achieved through HRM
practices is likely to be more sustainable than that achieved by other
means.