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Human resource capacity has become a critical issue for contemporary universities as a result of increasing pressures from governments and global markets. As a consequence, particularly where the institution is the employer, changes are occurring in the expectations of staff and institutions about employment terms and conditions, as well as the broader aspects of working life, and this is affecting academic and professional identities. Even under different regimes, for instance, in Europe, with the government in effect as the employer, institutions are giving greater attention to ways in which they might respond to these developments. This paper considers key issues and challenges in human resource management in higher education, and some of the implications of these changes. [ABSTRACT FROM AUTHOR]