The purpose of this final paper is to present the human resources management process. Human potential consists of knowledge, skills, abilities, and competencies possessed by people in organizational culture, as well as outside it. Human resources management as a process has the task of collection, selection, and finally introduction to working, motivation, and encouragement of development and lifelong learning of employees. The importance of a competent and high-quality employee in private companies as well as in public administration and the evaluation of a potential employee has become the foundation of the efficiency and success of companies and public institutions. Many of them care about the development of such employees and ultimately the organization as a whole. The aim of this paper is to present the theoretical framework of human resources management as well as its importance in the business processes of modern economies, and economies with a special focus on human resources management in public administration. Public administration bodies and institutions in the public sector in the Republic of Croatia have been criticized and stereotyped as ineffective. The system of public institutions is often mentioned in the context of an outdated and slow organizational culture. In this paper, human resources management will be presented as a resource, but also as a phenomenon that characterized the modern management of companies, public institutions, and all forms of organizational culture. Special emphasis will be placed on describing this segment of modern management within the business and organization of public administration. The current situation regarding the management of human resources in public administration will be presented, as well as the strategic models to which the development of public administration in this field of management should strive, as well as interventions that must be undertaken in the public administration system in order for institutions to be as efficient as possible and focused on development.