HR framework can be best analyzed by using the framework of leadership, managerial and operational roles. HR practices are closely linked with organizational effectiveness. The importance of HR in the new pattern of business is now being realized by the corporate world.

With globalization cutting across the boundaries of various nations, a firm's ability to compete in a global environment becomes increasingly contingent on having the right people, transnational learning systems and optimal measures of guaging and rewarding the individual effectiveness. Corporate world has realized the significance of Human Resources in the new paradigm of business. Strategic responses of the corporates to the various opportunities and threats posed by the business environment entail significant implications for human resource strategy.

Post liberalization, the very existence of organizations are being threatened. Therefore, a time has come where HR strategies should be linked with the business goals of the organization. Miller (1989) found that strategic management of HR is an important component in strategic management and planning. Similarly, various authors stressed the crucial importance of employees for organizational success.