The essence of this study was to ascertain the extent to which the nature of staff may influence the effectiveness of inventory management. To establish this effect the study was conducted at Buhinga Regional Referral Hospital among forty (40) participants using a self-administered questionnaire. The first objective was to find out the extent to which nature of staff have been incorporated in functionality of inventory management at Buhinga Regional Referral Hospital. In this respect, the study findings have strongly indicated that there is significant link between nature of staff and inventory management effectiveness. Professional as well as personal endowments such as self-efficacy were found to contribute to the effectiveness of inventory management. While, the presence of high levels of competencies in expertise as well as in ethical behaviors may result into service efficiency however, the study has found that lack of both professional and behavior capacities results into high inventory costs. On the question of the level of inventory management effectiveness at Buhinga Regional Referral Hospital; it was found that, there is poor inventory management at Buhinga Hospital accounting for frequent stock outs, high costs related to spoilage of drugs and medicine, inaccuracy and irresponsiveness to demands among others. Regarding the relationship between nature of staff and inventory management effectiveness, the study findings indicated that staffs with the potential to be highly effective in the inventory management functions require high ability to adapt rapidly to their changing circumstances as well as a diverse competency profile to demonstrate value and deliver superior performance. Inventory management practices are the key factor in ensuring continuous improvement in turnover growth. In this regard it is recommended that the hospital should carry out efficient inventory monitoring and operate good inventory information management system intervention. Therefore, automation and instituting an automated patient’s relationship management (PRM) module to capture lost services for accuracy of demand forecasting information to ensure realistic inventory forecasts to support health service delivery.