The utilization of technology in human resource management has considerably grown over the past decade. Majority of companies is now utilizing someone or another human resource information system. In human resources, technology assists in several processes, from recruitment to retirement functions, and has led to drastic transformations in the way managers and employees get access to human resource data.
Benefits of using HRM technology
The use of HRM technology helps an organization to perform a variety of functions from communication and storage of information to highly sophisticated transactions. The utilization of technology can offer a wide range of benefits to line managers, human resource managers and the entire organization. The use of technology results in faster, more efficient and accurate processes and reduced human resource costs. HRM technology is also used to offer HR information and to encourage managers to undertake HR duties (Kleingartner, & Anderson, 2005).
According to Bratton and Gold (2003), the three principal types of HRM software are transaction processing, expert systems, and decision support systems. Transaction processing software manages and facilitates transaction-oriented applications. It enhances the administration of online business transactions reliably and effectively. The expert system is software for aptitude evaluation in the field of human resources. It improves decision-making process based on the analysis of information regarding issues like sources of novel recruits, training needs and salaries. Bratton and Gold (2003) note that a decision support system evaluates organizational data and presents it for use in making business decisions more quickly and easily. This software helps improving decisions via the utilization of scenario modeling in areas like management development and team formation programmes. It is beneficial for an organization to have one or all of the three forms of HRM software since they may lessen the transactional and administrative burden on HR function and, thus, permits the function to have a highly strategic role within the organization.
The use of HRM technology enables an organization to perform a variety of HR functions such as data storage and communication. It also enables employees and line managers to undertake HR duties faster, more efficiently and accurately leading to reduction of HR costs
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