Managing human resources is one of the key elements in creating competitive advantage in organizations today. To a large extent, this fundamental issue has been at the heart of a great deal of the analysis of how organizations coordinate and develop relationships with their people in order to ensure market leadership. As each successive analysis of ‘how to manage’ has unfolded, the employment relationship has provided one of the central parts of the debate. Part of the long debate is what type of relationship does or should exist between those who manage and those who are managed. It is suggested that healthy relationships with staff are fundamental to building a competitive advantage. All employees need to understand their contribution to the organization’s goals and have clear and actionable objectives. Human Capital Management and line management roles in building the competency of the individual to achieve their objectives will also be examined. Essentially, organizations should be willing to re-examine their Human Resource Policies, Procedures, Systems and Structures regularly and systematically so as to ensure that they are keeping in line with changes in the environment.