In an era of increasing competitiveness, globalisation, economic rationalisation, deregulation, technological revolution and changing workforce there is an ever-increasing need for human resource management to be able to capitalise on the special challenges that this changing environment brings. For a company to be able to successfully keep ahead of the competition, human resource management is seen to be a significant contributor. Human resource management faces many challenges and operates in a constant environment of change. Two of the most important challenges to the role of human resource management in the future is the ability to move to a strategic human resource model and the capacity to develop and utilise a new set of competencies to fulfil the changing roles. In this assignment I will outline how each of these areas have developed to become two of the most important changes for Human Resource Managers and why I believe they are critical to the success of an organisation. Strategic Human Resource ManagementThe literature on the changing role of human resource management emphasise the requirement to move from an administrative support function, or the more traditional human resource operational management model, to a strategic and facilitative role. To sustain the transformation of the human resource function to a Strategic Human Resource Management model requires human resource professionals to develop a new set of competencies to fulfil this role.Strategic Human Resource Management DefinedStrategic human resource management encompasses functions, which focus on the long-term goals of the organisation. The functions of the human resource department are key activities which include policies, programs and practices which link the human resource management activities with the strategic business needs (Kramer, McGraw & Schuler, 1997, p. 60. Johnson, J. 1997, p.3. & Tyson, 1997, p.277). Operational management, on the other hand,...