ce of its competitive priorities as well. In this way, there is a natural alignment of competitive strategies with competitive priorities of manufacturing strategy.The choice of certain competitive priorities and dimensions of the functional strategies requires the capability of the sub-areas of the manufacturing function (process and product engineering, quality and logistics) to co-ordinate the efforts of the various functional areas during the planning and execution of the programmes in order to achieve the capabilities and objectives related to the competitive priorities. Similar to the manufacturing function, the human resource area needs to coordinate the cross-functional efforts to promote the formation of network based on teams, organizational learning and organizational culture management.The concepts of competitive priorities and dimensions of the functional areas are directly related to the resource-based theory of competitive advantage because their main purpose is to support the formulation of functional strategies by exploring the functional resources and capabilities and creating competitive advantages for the company (Grant, 1991).1:2Limitations Within The Relationship Between The Functional Areas Of Manufacturing And Human ResourcesOwing to the possibility of arranging the competitive priorities within one manufacturing strategy, it is difficult to associate a competitive strategy exclusively with quality, delivery performance, flexibility or cost. However, in the international literature, human resource management is linked to competitive and manufacturing strategies based on a single competitive priority of manufacturing, usually named business strategies or strategic choices.In addition, human resource management is linked to strategic choices of quality, flexibility and cost reduction by the use of a functional approach. In other words, the competitive priorities of manufacturing strategy are usually related to per...