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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 on-going case study (here after called the 'living case'). After setting up a simulated organisation 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" organisation. The approach emphasises 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 organisations.