The role of human resources within the corporate structure has changed dramatically over the years. HR departments focused solely on personnel functions like hiring, payroll, and benefits until changes to corporate culture in the 1980s introduced the concept of strategic HR software systems.

Strategic human resource management is the practice of attracting, developing, rewarding, and retaining employees for the benefit of both the employees as individuals and the organization as a whole. HR departments that practice strategic human resource management do not work independently within a silo; they interact with other departments within an organization in order to understand their goals and then create strategies that align with those objectives, as well as those of the organization. As a result, the goals of a human resource department reflect and support the goals of the rest of the organization. Strategic HRM is seen as a partner in organizational success, as opposed to a necessity for legal compliance or compensation. Strategic HRM utilizes the talent and opportunity within the human resources department to make other departments stronger and more effective.



Building on the view of HR as human capital, strategic human resources management (SHRM) includes approaches for matching people to business strategies (Miles & Snow, 1984). A model of development of the HR function in organizations includes five levels divided into two categories according to Kearns (2004). The two categories are where employees are seen as a cost/resource and where employees are seen as a competitive advantage. When employees are seen as a competitive advantage, HR becomes a strategic partner responsible for getting the maximum value from the company employees. Strategic HR managers see the workforce as a source of strategic advantage, not a cost to minimize (Pfeffer, 2005).


Human resources has long been tasked with creating the mechanisms for motivating and retaining high-performing employees as well as dealing with individuals who are no longer delivering results, hopefully through positive measures such as coaching or development programs.

With the information gathered in one place, easily accessible via Internet connection at any time of the day or night, managers are able to conduct employee assessments with feedback gathered throughout an organization, including peers, vendors and clients, creating a richer picture of the employee. When creating recognition programs, such as pay-for-performance, HR benefits when employees have confidence in a system that consistently and accurately measures performance for all employees. By gathering assessments from others who work directly with the employee, feedback is perceived as more valid and objective, leading to a greater acceptance of results and actions required. These layers of information can be aggregated and analyzed from a team, departmental, or a company-wide perspective, enabling management to better understand which of their in-house skill sets are well honed and which need further development to maintain consistent talent pools for future growth.

Decreased Cost

Aside from the less tangible costs such as efficiency or productivity, a good HR software system will save you real money. A standard benchmark for the number of full-time HR working for a company is one HR professional per 100 employees. Since less paper is used, more time is saved; HR software system will save your money automatically.

Improved Communication

HR software systems will include an employee directory. Using HRMS makes the internal communication possible without being dependent on any other tool. Also as an Admin, one can send messages to the bulk of people using HRMS.

Access to Information

While using an online system, for multiple users, the security is an important aspect one must keep in mind. If the processes are done offline, the security cannot be managed apparently. However, HRMS takes care of it automatically. Employees can see their own information only. Only an accountant can access accounting information through the software and likewise.



Analytics for strategic decisions

According to, some HR software systems are robust enough to function as your main HR data solution with the data easily feeding into other HR software solutions, such as benefits and payroll, eliminating time-consuming data duplication and reducing the likelihood of human error in the data entry process. With pre-configured as well as customizable reports and auditing capabilities, you now have the ability to meet regulatory compliance and answer key HR-related questions all within one network. You can use this data to pinpoint and analyze trends throughout your company and generate customized reports enabling executives, managers, and frontline employees to run “what-if” scenarios and use strong data analysis to make more informed decisions about staffing and development opportunities.




According to Gupta & Banerjee (2015), Nissan Motors, one of the top selling automobile manufacturers and the world‟s first ever multi-brand conglomerate after its collaboration with Renault, has over 130,000 people working for them worldwide. This global corporation needed standardized HR practices in order to function successfully. The firm was also concerned about the overall employee satisfaction. Having an HRIS (Human Resource Information System) meant a strategic investment to reduce costs across the globe and therefore, in 2010, CEO Carlos Ghosn  introduced HRIS in Nissan, when Nissan was in troubled waters. His aim was not only to automate the HR services but to transform HR services in the whole organization. He implemented several plans to transform Nissan to take it out of financial disaster; one of the strategies was to have a HRIS. The strategy behind HRIS implementation was standardization of all HR practices throughout the organization around the world. Also he wanted to remove all administrative and transaction type tasks from the HR personnel in all locations around the world.

Some of the immediate benefits of implementing HRIS were an effective way of sharing information which was HR centric. Nissan had an employee intranet but it was not designed to be employee friendly and most of the employees did not have access to it. This ensured that there was a need for new technology with a dynamic employee portal, where all kind of HR related information could be made available to employees 24/7. This would allow the employees to access information they wanted themselves, creating a help yourself attitude.



From an employee’s perspective the HR related information is now readily available through HR system development like policies, personal information, etc. Any kind of information from their pay slips to leaves, holidays is available a click away. This kind of software technology has changed employee’s attitude as they help themselves now. People get information when they want it and don’t have to depend on anybody for it, this helps them improve the quality of work life. It also has environment friendly benefits like less paper work. For example, any changes that need to be made can be done by filling an online form, or any notice which needs to be sent is simply posted on intranet. Now there are fewer delays as forms don’t get lost. The transactional process has become very fast. HR people are also happier and more satisfied in their work as the administrative/transactional work has been removed and they can now focus on more important tasks.

HRIS implementation has proven to be a win-win situation for all from employees, HR, management to the business. During the implementation of HRIS at Nissan, Ghosn was very clear about the key-performance indicators (KPI) of HRIS. These included reduced response time in employee‟s query and faster communication regarding policies to employees. This basically boiled down to service given to employees, response rate and customer service. Nissan is currently at world class measures in all the KPI‟s stated.


HR management software has become an indispensable asset in almost every corporate environment. HR information system (HRIS) solutions have a broad range of features. They can provide benefits to the HR team by helping them recruit and track applicants, manage employee benefits, and train staff. They can also generate HR reports that can be used in employee reviews and serve as a resource when there is a time to consider promotion or raises. In addition, they provide benefits to your staff in the form of self-service options like biometric time-keeping, remote schedule management, and easy communication tools.

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