Human Resource Management System or HRMS is one of the driving forces behind an organization success in the modern times. (Note - HRMS is often used interchangeably with HRM software or HRM system, here we will be discussing more about the impact of HRMS in the conceptual side, rather than the details of the technicalities.) The very change from the earlier impersonal "personnel" department to the more respectable "Human Resource" stands testimony to this.

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The thinking that Human Resource is like any other "Resource" - meaning it needs to be managed, its supply is scarce itself is significant, and the first signs of victory for the advocates of Human Resource Management System. Just how the precious capital, raw materials, machineries are all handled in the modern industrial era, in the same way, may be with more importance the human resource is also handled. For this, a set of system, procedures and processes evolved which later crystallized into Human Resource Management System. Using IT to manage the HRMS is the by-product (just how accounting functionality is automated) and it is just an automation.

The significant challenge in Human Resource Management System involves in acknowledging the diverse nature of the Human Resource(s) in the organization and to treat them in such a way that they give their best to the organization. Procedures, guidelines, processes, IT all can be there for managing a huge work force, but if the organization fails to acknowledge the uniqueness of every individual, then it is doomed to failure. The HRMS should be in such a way that each individual's contribution is acknowledged, recognized, appreciated and motivated. Obviously one centralized team cannot do this. Enough de-centralization, with proper checks and balances is the hallmark of a successful Human Resource Management System

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