An effective HRM system allows organizations to address human resource issues strategically. This helps the workforce deliver high quality health services, despite internal and external challenges to the organization. HRM helps attract and retain competent employees, assists employees and managers in adapting to organizational change, and facilitates the use of technology to determine how and where work is done. Human resources management play an important role for organizations to manage employees to work effective, creative, quality and productivity to reach the competitive advantages over competitor and achieve organization goals and objectives. For gain competitive advantages today organization face three main competitive challenges, i.e. challenge of sustainability is ability to deal with changing for all business environment; global challenge is a challenge that organization must both defend their domestic markets from foreigner competitor and broaden their scope to encompass global market; and for technology challenge organization should design work for employees to comply with new technology updated. All aspects of human resources management including how organization manages the human resource environment, acquiring and preparing, assessment and development, compensating human resources, new role of human resources management and its competencies can help organization meeting their competitive challenges and create value. Meeting organization challenges is necessary to create value ant to gain a competitive advantage. Human resources management is very crucial for organization without it they can not reach their goal and objective. Human resources management helps organization to design employees work, recruit and select right person for right job, training and develop employees to be a knowledge worker and empowerment for working environment. So if organizations that have not considered effective of human resources management they will not manage their staff at work effective and can not examine what they will do to make working people more productive and effective. Last but not the least, HRM practices help to ensure the legal compliance which is key for the long term survival of an organization.