The paper deals with the advantages and disadvantages of the staffing system in the cultural institutions of the city of Zagreb using the examples of theatres, museums, and cultural centers. The fundamental functions of management as well as management in culture are presented. The functions of planning, organizing, staffing, leading, and motivating are covered with examples of these functions in culture. Specific challenges arise in cultural institutions, directors of institutions must know how to balance between the legal framework, and the expectations of the audience and visitors, and when it comes to managing human resources, they have to deal with a variety of staff, from technical to artistic, which is challenge to manage. Each cultural institution is specific, and their activities are explained in more detail in the examples. Through interviews with the directors of the institutions mentioned above insight is given into their way of leading, motivating, and managing the institutions, as well as the problems the directors face in staffing the institutions. 6 interviews were conducted with directors of different cultural institutions to get a broader view of their management and the challenges they face.