| Summary: | The role of Human Resource Management in healthcare sector and challenges it faces has always been an important area of research both in developed and developing countries. The objective of this study is to evaluate the role of HR department in private healthcare sector in the province of Khyber Pakhtunkhwa (KPK), Pakistan and to analyze the challenges/factors affecting the role of HR department. Being the largest private sector hospital in KPK the researchers have selected RMI as a case for this study. Data was collected through interviews from different levels of employees in RMI. Constant comparative method was used for analyzing the data. Results present that HR department plays the role of an administrative expert in RMI. The major internal factors include workload, top management interference, management style and organizational culture which negatively effect motivation, performance and morale of the employees. While small labour market, undue interference of government and other higher authorities and trade unions are the external factors that affect the role of HR department in RMI. All these external factors create difficulties for HR department to attract and retain the desired workforce.
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