Contemporary business environment generates hyper changes and hyper competition, which is why enterprises are challenged to search for new sources to preserve and build competitive advantage in the global marketplace. In the theory and practice of management, the general view is that people and their knowledge are becoming a fundamental value in modern enterprises, and that successful human resource management is an important determinant of competitiveness. However, the importance of having specific knowledge and skills in the enterprises in Bosnia and Herzegovina (BiH) is still not recognized and human resources of these enterprises are not treated in accordance with their importance. Therefore, the objective of this paper is to point to the state and prospects of human resource development in the enterprises in BiH in the context of improving their competitiveness. This paper includes the results of one part of the empirical research covering 120 enterprises from BiH. The research was conducted in order to identify and analyze the situation in the field of key phases of human resource management in these enterprises (job analysis, human resource planning, management and selection of human resources, training and human resource development, evaluation of work performance, selection and implementation of the reward system, and management of human resource fluctuation). Based on the results, it can be concluded that the human resource management in these enterprises is underdeveloped when viewed as a special managerial function or business function, but also when treated as a separate modern business orientation in which people and their knowledge are the key value in the enterprise. The study results also show inadequate organizational treatment of human resource management in the enterprises in BiH, considering that managers’ awareness about the importance of establishing a department of human resources in these enterprises is still not sufficiently developed.