Leadership skills are of most importance in managing human resources. Leaders must possess distinctive knowledge and skills as well as right personal characteristics demanded by their organisational status. To manage human resources successfully, leaders must give their employees example they want to follow. Besides competencies, leaders must possess developed emotional intelligence to know when is the right time for changes and what is the best way to present those changes to employees in order for them to accept them. The goal of human resources management is to select and recruit quality employees. Recruitment and successful adjustment of employees to the organisation is followed by training and development. Development plays a great role in reaching personal goals of employees because of every person's wish for progress and self-realisation as well as their skill enrichment. After investing in employees' development, the goal of organisation is to keep those employees form fluctuating elsewhere. That is possible by maintaining satisfacion of employees or increasing it. Human resource management is under an impact of different factors, both internal and external. Economic and cultural surroundings and activities of the state are external factors which can cause changes in the organisation comming from it's surroundings and requiring it's adjustment. Internal factors affect the organisation from inside and they include organisation's features, employees features and task features. In modern time changes are faster and more frequent, that is why the organisation must adjust in right time and use the right leadership style for employees to follow this changes. Leaders most commonly choose transactional, transformational or charismatic leaderhip style. A part od human resourse management is motivation. Leader must maintain high level of employee motivation to improve the results of business and to keep employees satisfied with progress. The goal of a leader is to achieve employees to identify organisational goals for their own to give their maximum contibution to the organisation. Another challenge of human resourse management is work stress which should be reduced or removed completely. Stress can have a negative effect on a psychophysical health of employees which means leaders should not treat it as irrelevant factor. Stress can disturb positive organisational climate and increase possibillity of conflict making. Conflicts make differences and dissagreements of employeesmore emphasized and they can lead to serious cooperation and team-work disorder. Conflicts should be resolved as soon as possible to prevent their escalation and so they could not disturb employees unanimity. Employees are the key factor in running an organisation which affects it's success and development. They should be well cared for because only then they can reach their full potential and achieve organisational goals. Leaders abillities determine how much employee potential can be used and how resourcefull the organisation will be.