The concept of microfinance has gained immense popularity among the international development community as a technique to poverty alleviation and microenterprise development. Due to such positive impacts, microfinance institutions are growing rapidly across the world. Nevertheless, the institutions are facing severe challenges to deal with such growth and achieve institutional goals. As a result, there is a growing need to develop an effective human resource management system that could support the growth and help achieve such institutional goals. Therefore the principle aim of the project is to examine the current human resource practices of microfinance institution in Bangladesh. The project has proposed an effective and integrated human resource management system by analysing the contextual factors and adapting some concepts of good effective human resource models, that could help maintain the steady growth and overcome the challenges.