This chapter begins with an overview of Human Resource Managements (HRM) historical development within New Zealand. It then outlines the political, economic and cultural context within which HRM practices have emerged. The development of HRM in New Zealand has been shaped by historical ties with the 'mother country', Britain, resulting in the mirroring of British HRM practices. From the mid-1950s the HR profession in New Zealand began to evolve, with HRM practices such as development, performance management and reward becoming more innovative. The ascendency of strategic HRM principles raised HRM professionals' awareness of their potential contributions, and called for them to demonstrate their role's value to employers. Understanding New Zealand's HRM practices requires a deeper look at the political frameworks that govern employment relationships and, in particular, the historical development behind today's political system. Finally the chapter examines the current and future challenges facing HRM in New Zealand.