Employees today represent the most significant resource of an organization. Accordingly, the need to manage human resources has become a necessity. Respectable organizations have started to see their employees as capital in which there is room to invest on many different levels, so that they can eventually become a huge advantage in the everlasting battle with the competition on the market. For these company’s, management is not strictly based on needs and interests of the organization, but also needs and requirements of their employees as well. In this assignment, the key process of managing Human Resources is shown, as well as research regarding the need to provide a department focused specifically on Human Resources in the VM2 d.o.o. Company. This research has been conducted using interview and questionnaire methods. It has shown that there indeed is a need to form a human resources department in an observed company. Currently the company director has the role of human resources manager and is currently in accordance with the business and capabilities of the observed company. Based on the results of the questionnaire conducted it can be concluded that the employees are satisfied with the current motivation and reward system. As well as how their work performance is reviewed and how conflicts in the work environment are resolved. In conclusion, after the conducted research, the employees of this company see and accept the imperative importance of forming a human resources department as an independent department in this organization.