The purpose of this study is to shape a key employee Characteristics and their appropriate management practice theory through Inductive approach based on data collected from interviewees in Medical Procurement Organization (MPO). In this theory, the "employee Characteristics" is the central phenomenon. Based on data collected from interviewees, key employee Characteristics could be categorized in Personality, Managerial, leadership and occupational groups. As well as Appropriate Hr practice could be categorized in recruitment and selection, training and development, performance management, compensation and reward and employee relation group. But, implementing these polices and practice require infrastructures such as hard (Suitable Plan, Systems, processes and structure) and soft (Skill and organizational culture) wares. At the end organizational productivity increase and organization will gain a sustainable competitive advantage.