The hospitality industry is an industry that offers guests accommodation, food, beverage, recreation and various other services. The expertise and ability of each employee is a condition for achieving quality service and ultimate business success for the hotel. The main goal of the hotel business is to achieve an acceptable level of profit through the prism of meeting the needs and desires of guests. The organization of business in a hotel is the integration of the work of employees and hotel property in order to accomplish business tasks. Marketing and public relations are extremely important parts of a functional organization because without them it is hard to achieve interaction with potential and current guests. The hotel sells its services on the market, which is characterized by different sales prices and operating costs and the spatial separation of demand from supply. In the Croatian hotel industry are practiced individual sales directly to guests at the reception desk. The basic task of every manager is to make people capable of working in a team, to make sure that all their qualities are used properly, and that all their weaknesses become irrelevant. The hotel manager, front office manager and the head of sales work together to make tactical and strategic decisions that will be essential for the functioning and operation of the entire hotel. The reception is responsible for welcoming guests to the hotel, giving first information and finally renting out a room. The housekeeping takes care of the cleanliness and tidiness of the rooms and other rooms in the hotel, the attractiveness, decoration and pleasant ambience. The food and beverage department at the hotel provide quality food and beverage services. Each hotel has its own defined organizational structure, which implies the totality of relationships and connections between all factors of the production and service process. The work climate represents all the factors that negatively or positively affect the employee at the time of the work process. Human resource management is a managerial function that operates in the planning, employment, selection, training, development, rewarding and maintenance of members of the organization. A success in business comes with the proper cooperation of all departments in the hotel. The Croatian hotel industry is characterized by an insufficient level of quality in the form of services, an unfavorable structure and a low level of capacity utilization. Record investments are expected in the Croatian hotel industry for the next five years, as highlighted in the latest survey conducted by the auditing and consulting company EY.