If you are pursuing your MBA or have already graduated is one with a specialization in HR then you have to be ready for facing challenges of all possible kinds. If you always thought that being a part of the public sector organization is an easier way out than being in a privatized organization as a human resource manager then that is nothing short of a misconception. Public sector unit HR professionals have to go beyond the day job and brace themselves as advisers to managers and advising leaders about how they should be implementing their leadership skills. That is were the responsibilities for a human resource manager in a public sector unit becomes more difficult than their counterparts of the private sector. The concept of leadership becomes more pronounced and way more demanding inside a public sector unit than anywhere else. Leading a place that provides services to various areas and a mass is different from that of leading a multimillion revenue earning private corporation. There has to be quality business acumen along with abilities to listen and respond to the needs of the people as individual. A human resource manager in the public sector unit needs to be a patriarch than just holding his office and doing his job. He would need to think like the head of a family. The reward factor is another issue that has always posed a challenge for the human resource manager in a public sector unit. Salary is in most cases not as plush as they are compared to that received by their counterparts of the private organization. Even though many people are usually of the opinion that public sector offers more security but still the reward has always demanded a hike. The most challenging aspect of a human resource manager inside a public sector unit is managing the diversity of man power. The focus over communities and community cohesion increasing day by day,the public sector HR needs to be keener than ever and should have a very strong voice to sort out these issues. The public sector human resource must have a very keen eye for spotting talent and taking an active initiative in developing that for the benefit of the organization. Something that becomes immensely complicated inside a public sector unit. More orthodox set of rules are imposed over the Human resource managers and one has to be very tactical in order to take out the best of an employee and develop him in polishing up his skills. Finally, predictably the biggest challenge for HR in the future is to manage the service transformation and modernization, that is altering the way in which public services are delivered. The public sector is always blamed of inappropriate service and a deficient human resource team, but he fact is that the public sector has a few orthodox set of norms that prevent the Human resource department to lack in efficiency. This is where the public sector HR needs to focus more than anywhere else.