Strategic HR: Systems for Managing Your Human Capital
Welcome to the acronym-littered world of strategic human resources (HR) information technology (IT). Strategic HR IT focuses on the management of human capital and it often employs a Talent Management System (TMS). A second component of HR IT is called Enterprise Resource Planning (ERP). ERP focuses on transaction processing, storing all of the basic data related to personnel administration, payroll, time management and so forth. As such, it is not considered strategic.
Strategic HR IT concentrates on TMS and its three main subcomponents. These are education and training, which can be implemented through Learning Management Systems (LMS); Performance Management (PM), which is an ongoing process rather than a single year-end review; and recruiting and talent acquisition, which are managed via Applicant Tracking Systems (ATS).
Not surprisingly, strategic HR IT systems were designed for large enterprises, and they can be expensive and time- and labor-intensive to implement. Fortunately, small business can acquire just the modules they really need. Many open-source and off-the-shelf products are available, which keep costs consistent with what small businesses can afford.