The article deals with the concept of institutions and social partners’ relation to the theory and practice of human resource management. The policy of state interventions in economy and the adoption of large-scale social measures are increasingly promoted in advanced countries. The significance of public administration institutions is increasing proportionally. In social practice, these institutions communicate with economic organizations, in particular in the area of work with human factors. In this context, the so - called hard and soft approach to HRM are discussed. The hard concept understands the employee as one of production factors, striving to strengthen its effectiveness by decreasing personal costs and increasing its performance. The soft approach lays an emphasis on humane goals of an enterprise. The soft approach lays an emphasis on human goals of an enterprise, striving to respect workers’ needs and interests. However, the reality of how organizations treat people or human potential is distinct diverse. The article results in the requirement of wider interaction of public sphere and private sector when looking for balance between economic profitability, managerial approaches and the degree of population social inclusion.