Human resource management incorporates managerial activities aimed at attracting, developing and maintaining effective personnel within a company. HRM plays an important part in the organization of the company. Planning of the human rsource departmnt is defined as the process of anticipation and concern for the employees in the company, within the company and outside the company, with the purpose to ensure the availability of the required number and structure of employees, as well employee optimization. Recruitment is the process that determines the demand for personnel, and is in charge of finding potential candidates for vacant jobs. There are two basic sources of personnel recruitment - internal and external. Internal sources include employees who are already working within company and external sources include those persons who are sourced out of the company. Selection is a choice between the recruited candidates for vacant jobs that best fit the requirements of the job. There are two ways of conducting selection. The first is to examine the characteristics, skills and knowledge of candidates in order to determine whether they possess the minimal requirements for the job. Another way is to first examine the characteristics, abilities and knowledge of the applicant that the application requires. Adria Plin specializes in selling, delivery and filling of gas, oil and petroleum products. Their primary function is to to deliver gas to homes, selling gas to wholesalers and LPG bottling plants. It currently employs 26 full-time employees. They planned to increase the number of employees in the company. Recruitment is done by combining internal and external sources of recruitment. Job listings are published on the website of the Croatian Employment Service. Recruitment is carried out in a way which examines the characteristics, skills and knowledge of candidates for a particular job, upon which results are used to choose the candidates who meet the requirements of the job. The selection is carried out through testing and interviews. The final decision on the selection of candidates for the job is issued by the Director on the basis of information collected on the candidate, as well as on the results of tests and trial operation.