This article suggests that--as human resources expenditures often amount to over 50 percent of a local government budget--the successful management of human resources (HR) is one of the most overlooked key management functions in local government. Discusses how a good HR plan addresses the personnel actions required to complete strategic goals, in addition to dealing with daily personnel functions. Highlights four components of an HR plan: work systems, performance and compensation systems, learning systems, and support systems. Concludes that a well-thought out plan will take time to develop and implement, but will provide the organization with an important and effective tool.