This paper considers challenges of human resource management (HRM) in open innovation (OI) processes. It examines which strategies managers use to overcome these problems. By conducting an inductive case study of the Brazilian oil and gas company Petrobras based on grounded theory, we developed a framework explaining these challenges and strategies. The paper argues that the most important HR challenges are (a) interpersonal relationships, (b) power shifting inside the organization, and (c) creating a sense of value among workers, and explains how managers tackled all these challenges to build a better working environment. The deep analysis of HRM challenges in OI contributes to a better understanding of management problems these processes can cause and how these could be overcome.