The purpose of this paper is to describe and evaluate an innovative approach to teaching human resource management. The approach involves students working in small groups on a semester-long project in the form of an ongoing case-study (hereafter called the 'living case). After setting up a simulated organization complete with identification of strategies, structure and culture, students are required to make and defend a series of HR decisions in which they apply theory and classroom learning about HRM to their 'real' organization. The approach emphasizes the context of HRM decisions and helps to develop a range of both HR specific and more general management competencies. The living case develops managerial skills which have recently been identified as critical to future success in Australian organizations.