Using a qualitative approach, this study fills a void in the literature on strategic HRM by analyzing Austrian CEOs' perceptions of the role of the HR department in their organizations, and the conditions that affect the development of a strategic role. The results suggest that even if CEOs have an overall positive evaluation of their HR departments and are willing to delegate responsibility for higher-level decision-making, to develop the HR department's role, CEOs must also feel they have the scope to do so. A framework for future research and practical implications for opportunities and constraints confronting HR managers are discussed.