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Development Of Human Resources As Strategic Factors Of The Companies' Competitive Advantage

Summary/Abstract: Today, in the midst of a complex and turbulent environment, the world economy and market are developing quickly. In the analysis of their competitive factors, the prevailing understanding is that the bases from which everything begins and on which everything depends are the people and their position rather than structure and function. Competitive position of any business system within the global business environment depends on its flexibility, inventiveness and focusing on their employees' quality. The subject of this article is the development of the employees as the generic function of human resource management from the viewpoint of its influence on individual performances, and based on this, on direct effect on the company's development and the increase of its competitiveness. The main starting point of this article is the idea that knowledge, as the result of the employees' development, is becoming a strategic resource and centre of competitive advantage and differentiation in modern economy. Attempting to change from within to adjust to external changes, modern organizations encourage development of employees and seek after methods and instruments enabling them to change the employees' knowledge and skill structure as the basis of organizational development.

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