This article reviews some demands facing organizations and their leaders and why people, human resource management practices, and organizational culture is the only competitive advantage in today's worldin both good and bad times. It highlights the benefits of effective human resource management in building individual and organizational capacity, why managers do not use the latest knowledge about people management, effective human resource management practices, and what organizations need to do to become resilient and "change ready".

The world of work and orga nization has become in creasingly demanding and turbulent. Ulrich (1997) lists eight major challenges currently facing organizations. They are: globalization, responsiveness to customers, increasing revenue and decreasing costs, building organizational capability, change and transformation, implementing technology, attracting and developing human capital and ensuring fundamental and long-lasting change. Thus levels of competition among organizations have increased. Most organizations today can copy technology, manufacturing processes, products, and strategy. However, Human Resource Management (HRM) practices and organization are difficult to copy, thereby, representing a unique competitive advantage. To be successful in the future, organizations will have to build organizational capability. The HR professionals and HRM practices will be required to create value by increasing organizational competitiveness.

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