Organizational Psychology holds that successful organizations do not owe their success solely to market realities and sustainable competitive advantages. Actually, there is a lot more. Successful companies are those that consider their human capital as their most important asset. Facts and figures are the quantitative elements of successful management, yet the qualitative, i.e. the cognitive aspects, are those that actually make or break an organization.

Human Resources Management (HRM) is the strategic management of the employees, who individually and collectively contribute to the achievement of the strategic objectives of the organization. Assuming that the employees of an organization are individuals with own mental maps and perceptions, own goals and own personalities and as such they cannot be perceived as a whole, HRM holds that the organization should be able to employ both individual and group psychology in order to commit employees to the achievement of organizational goals.

The Human Resource procedures in many organizations are becoming more complex. It handles employee selection and evaluation in the recruiting phase, evaluation during the employees work as well as the compensation package. In addition it needs to handle benefits and sometimes the procedures for termination.

These administrative tasks traditionally require a lot of paperwork from the Human Resource manager. Moreover, employees should have personal files that gather all of their data in one central location, such as personal histories, skills capabilities and salaries. One Human Resource ERP should take care of all of these aspects, while automating many processes and saving time for the HR department.