The authors would like to thank the NSW Sport Commission for their support in the conduct of this research.HR for paid staff and volunteers 2 2 Contemporary business challenges and globalisation pressures have had a significant impact on the human resource management (HRM) practices of many organisations. Whilst the adoption of more sophisticated, complex and strategic management systems is well documented in the general HR literature, organisations that operate with both paid and volunteer human resources have been virtually ignored by scholars. In this paper we report on a study on the adoption of HRM practices by state sport organisations in New South Wales, Australia. Our results indicate that despite pressures to become more strategic in their people management, only a minority of these sport organisations have formal HRM systems. We also found differences between the HRM practices used with paid employees and volunteers particularly in organisations with formal HR policies. Research and practical implications for HRM in sport organisations are discussed as well as future challenges HR for paid staff and volunteers 3 3 Over the past few decades representative/parent organisations of sporting activities have faced increasing pressure to adopt more sophisticated management systems and become more business oriented. In sport we have witnessed a gradual professionalisation of state and national sport organisations and a growing number of paid staff have been appointed in roles traditionally held by volunteers (Auld, 1997;Thibault, Slack & Hinings, 1991). This has led to change management issues and tensions, as organisations transition from largely volunteer managed and governed approaches to a workforce that is a mixture of paid employees and volunteers (Nichols et al. 1998). In combination with this shift, many of these sport organisations are currently facing difficulties recruiting and retaining volunteers (Burgham & Downward, 2005). The associated human resource issues highlight the pressing need for HRM practices to effectively manage both paid and volunteer staff in sport organisations now and into the future. In considering what HRM approaches would be most effective, the distinguishing characteristics of non-profit sport organisations should be taken into account.The sport industry's distinctiveness is exemplified by features of intangibility, heterogeneity and inseparability of production and consumption (Buswell, 2004). Each sport organisation's existence is based on the requirement of co-ordinated, seasonal event-based competitions that are controlled by governing bodies (Beech & Chadwick, 2004). Sport organisations that are representative/parent bodies of sport activity have been traditionally managed by sport enthusiasts with a passion for the sport, wherein measures of success are related to on-field success and participant numbers rather than to operational effectiveness.The management of these enterprises has perpetuated these distinctions by drawing heavily on a committed volunteer workfo...