Function of Human Resource Management System

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According to Porter’s Value Chain, information technology is categorized as a support activity that does not directly add competitive advantage to an organization (Porter, 1985). Although it may not directly add competitive advantage to a company, information technology is used as a tool to create efficiencies within other activities, both supportive and primary, by reducing the time, money, and the effort spent accomplishing the task at hand. One great example of this is how information technology can be leveraged to increase the contribution of human resources within an organization. Like information technology, human resources is classified as a support activity, but is absolutely essential to the overall ability to function as an organization of any company with more than one employee. Human resource technology can be defined as any technology that is used to attract, hire, retain, and maintain human resources, support HR administration, and optimize Human resource management.

A Human Resource Management System (HRMS) or Human Resource Information System (HRIS) is a software application that combines many of the human resources functions, including benefits administration, payroll, recruiting and training, and performance analysis into one system (Bessler, 2011). This report will give an overview of these functions, our lining what processes are currently used to perform them, what technologies exist to help perform the specific function and then show how technology can be used to streamline, automate, integrate and even eliminate many of these processes thereby creating a more efficient role that can save any company time and money.

The first function of human resource management is to find potential candidates for fu...

... middle of paper ... a third party benefits administrator will save employers the time, man-hours, and complications of making sure that all of the benefits they offer are being maintained according to regulations.


Just because Porter defines something like information technology and human resource management as a “support activities (Porter, 1985)” doesn’t meant that it doesn’t make a huge impact on the company’s overall success. The long-standing procedures or human resource management combined with the latest advances in computer software and online communication can make a major difference in the operational success of any organization. By reducing the time, effort and money that is spent needed to perform necessary tasks, properly leveraged technology can increase the contribution and efficiency of any function within an organization, including human resources.
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