This thesis discusses the fact that the conduction of business and development of an organization are not possible without management. Management's fundamental purpose is to achieve organizational goals through optimal management of people and other, mostly material organizational resources. Management achieves these goals by making smart business decisions based on well-coordinated managerial functions, planning, organizing, human resources management, leadership and control. Achieving organizational goals is a task shared by both the managers and employees. The only way of achieving these goals is by collaboration. For a successful collaboration, quality of human resources management is crucial. This thesis argues that to achieve such synergy, the managers in an organization need to posses the knowledge and skills necessary for the management and development of human resources. Thus, it can be said that the human resources management has become a crucial managerial function. The thesis also shows how this fundamental managerial function, human resources management, has gained a new dimension, a strategic one, and has thus become a strategic human resources management. The thesis also emphasizes how crucial good human resources management is in an organization, because people are, as the most important resource, a crucial factor of competitive advantage. The goal of this thesis was to determine how much has the role of human resources manager changed in a way that the human resources manager is more often the creator of the organization’s strategy together and equally with all other executive managers, as well as the challenges the human resources managers meet in these, for business more than challenging, times.