Human resource management is a process of bringing people and organizations together so that the goals of each other are met. Nowadays it is not possible to show a good financial or operating report unless your personnel relations are in order. Over the years, highly skilled and knowledge based jobs are increasing while low skilled jobs are decreasing. This calls for future skill mapping through proper HRM initiatives. Indian organizations are also witnessing a change in systems. There is a need for multi skill development. Developing Need based Skill is a process of identifying key competencies for an organization, the jobs and functions within it. Skill Development is important and is an essential activity. Every well-managed firm should have well defined roles and list of competencies required to perform each role effectively. By developing skill it identifies an individual__ampersandsignlsquo;s strengths and weaknesses in order to help them better understand themselves and to show them where career development efforts need to be directed. Developing need based skill is not only done for Confirmed employees of an organization and it can also be done for contract workers or for those seeking employment to emphasize the specific skills which would make them valuable to a potential employer. These kinds of skills can be determined, when one is ready to do the work. Skill Development is one of the most accurate means in identifying the job and behavioral competencies of an individual in an organization. Competency is a set of knowledge, skills and attitudes required to perform a job effectively and efficiently. A Competency is something that describes how a job might be done excellently; a Competence only describes what has to be done, not how. Core competency is something which cannot be copied and it is the pillar upon which individual rest.