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Cloud Computing Can Improve Human Resource Management

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Cloud technology is changing the future of business in many different ways. Countless companies have discovered the benefits cloud computing has to offer. As a result, 60% of companies have migrated to the cloud.


One of the many benefits of cloud technology pertains to human resource management. A growing number of companies are storing employee data on the cloud, which makes it easier to handle certain HR tasks.

In order to appreciate the benefits of using the cloud for HR management, it is necessary to understand the importance of human resource management in general. Keep reading to learn more.

What is Human Resource Management?

Human resource management is the process involving recruiting and selecting candidates while also providing them with training and development. Human resource management also decides on the appraisals of the employees’ performance and the compensation for the same. They maintain the proper relations with the employees and ensure the safety and healthy environment for the employees, which is in compliance with the labor laws of the land.

Since HR is so important, companies use the latest technology to handle it. This is one of the reasons that cloud technology has become so important in HR. The cloud helps with workforce planning and HR analytics, although there are still some challenges here that companies need to avoid.

HR management mainly deals with essential workplace functions like organizing, planning, directing, and controlling. It focuses on managing human resources for the organization and is responsible for their training, development, and maintenance. The HR department helps the organization achieve its social objectives.

What is human resource management?

HR management is a multidisciplinary subject that studies various fields like psychology, management, communication, and sociology. In recent years, it also involves new technology investments such as cloud computing.

It also helps in promoting teamwork. HR department handles every factor surrounding employees and manages the functions like job analysis, selection of the candidates, training, providing benefits and incentives, career planning, and maintaining discipline among the employees. It also communicates with the employees at all levels and maintains compliance with local as well as state laws.

What is the importance of Human resources?

Human beings have a great capacity, and no product or service can be produced without participation. It is a basic resource for the production of anything. Every business or organization desires to have skilled and professional people to make their business a success. It should be no surprise that many startups are investing in cloud HR technology to deal with these issues.

The management basics include the five ‘M’s, which are men, machines, money, methods, and materials. Human resource management is the branch that deals with the men. Humans are not easy to manage as each person is different from the other. In the other ‘M’s, men play a key role and have the power to manipulate the other ‘M’s.

People run businesses; a business cannot run by itself. The success of a business lies in its employees and managing them is what human resource management is all about.

Scope of human resource management

Human resource management includes a wide range of factors, so it’s necessary to classify it under the following subheads:

  1. Personnel management – It is also called ‘direct manpower management,’ and it includes the most basic functions of human resource management like:
  2. Hiring
  3. Training
  4. Induction and orientation
  5. Transfer, compensation, and benefits
  6. Layoff and Termination
  1. Labour relations – HRM focuses on improving the relationship between labour and organization. It addresses the grievances and settles the disputes to maintain harmony.
  2. Employee welfare – This mainly focuses on the working condition of an employee and includes factors like the safety and health of the employees.

As human resource management play a key role in recruiting and training professionals, an organization needs to increase its skills and expertise through senior management courses. The growth of an organization depends on how well the employees are assigned to their roles, and human resource management is responsible for the same. A well-organized and skilled human resource management department ensures an organization’s steady and consistent growth.

What Benefits Does the Cloud Bring to HR Management?

There are a lot of great reasons companies are investing in cloud technology for HR management. Here are some of the biggest benefits:

  • You can take advantage of SaaS human resource management tools that are only available on the cloud. Many cloud-based tools help with payroll administration, recruiting, benefits administration and talent management.
  • You can track performance of employees more easily by storing records of their work on the cloud.
  • You can use cloud-based tools to automate many workflows.

The benefits of using cloud computing in human resource management cannot be overstated. A report by Deloitte highlights some of the most pressing benefits of cloud HR.

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