In today's world, the quality of human capital and the use of this capital in the labor market are a very important factor for any business development. This brings with it a number of challenges associated with various processes such as demographics, globalization and the development of new and innovative economic sectors. As a result, human capital is the primary and most important asset of every business and often determines whether the business is competitive and, furthermore, whether an organization has a chance of surviving in the market. Every company must constantly ensure the quality and continuous development of its human capital. The role of human resource management has expanded to a more strategic function in today's competitive organizations. Traditional personnel and human resources management activities are no longer sufficient to participate in a constantly changing and challenging world. HR sectors must become strategic partners of a company's senior management and be part of the strategic planning process. All HR functions should be designed in accordance with the organization's policies and objectives, and there should be horizontal and vertical consistency across all company HR functions and policies. To develop workforce capabilities and support their improvement, management features and practices should be applied in accordance with employee requirements. Companies can gain a competitive advantage by systematically planning their HRM tasks and helping their employees to be innovative. One of the main tasks of the organization is to achieve the objectives and effective applications of its mission and policies. To achieve this, an organization must attract middle of paper ......k security and internal labor markets; Selective recruitment and sophisticated selection methods; Extensive training and development; Staff participation and sharing of 'information Self-managed teams/teamwork; High pay based on performance; Harmonization. There are some criticisms of the best practices approach: Unpredictability in describing what essentially defines best HR practices Difficult to confirm whether it is HR practices that lead to better organizational performance, or whether strong performance organizational structure allows companies to participate in best HRM practices Difficult to influence the operation of the company within tight financial limits to invest in expensive HR practices Difficult to rationalize the cost of best HR practices, because the benefits are not not always easy to measure Tendency to accept a unitarian point of view and ignore pluralist beliefs.