THE IMPACT OF CLOUD-BASED MANAGEMENT INFORMATION SYSTEMS ON HRM EFFICIENCY: AN ANALYSIS OF SMALL AND MEDIUM-SIZED ENTERPRISES (SMEs)

Abstract

Cloud-based management information systems (MIS) are becoming integral to the operational success of small and medium-sized enterprises (SMEs), particularly in enhancing the efficiency of human resource management (HRM) processes. This article, based on a comprehensive review of 75 peer-reviewed studies, investigates how the adoption of cloud-based MIS positively impacts critical HRM functions such as employee management, recruitment, training, and performance monitoring. The findings indicate that cloud-based systems significantly streamline these HR tasks by reducing time, costs, and the administrative burdens traditionally associated with manual or localized HR operations. Moreover, the integration of real-time data analytics through cloud-based platforms enhances decision-making capabilities, enabling HR professionals to make data-driven and timely decisions that improve overall workforce management. The reviewed studies also emphasize that cloud-based MIS are essential for improving strategic HR planning. These systems allow SMEs to access advanced tools for workforce analytics, employee engagement, and performance tracking, which were previously only accessible to larger corporations. The flexibility and scalability offered by cloud-based MIS enable SMEs to quickly adapt to changes in staffing needs, business growth, and external market conditions without the need for costly infrastructure. Furthermore, the review highlights the role of cloud technology in fostering innovation within HR departments by supporting predictive analytics and AI-driven decision-making, which can further enhance operational efficiency. In addition to operational benefits, cloud-based MIS facilitate a more seamless integration of HR functions across geographically dispersed teams, allowing for enhanced collaboration and communication. This capability is especially critical as SMEs continue to adopt remote and hybrid work models.