In which of the following scenarios would a business use human resource management system (HRMS) software?

• A. To track employee attendance and manage payroll processing
• B. To analyze customer buying patterns for marketing campaigns
• C. To record inventory purchases and sales transactions
• D. To prepare financial statements for external reporting

Answer: (A)

Verified step by step guidance

1. Understand the purpose of Human Resource Management System (HRMS) software: HRMS is designed to manage and streamline human resource functions such as employee attendance, payroll processing, recruitment, and performance management.
2. Analyze the options provided in the question to determine which tasks align with HRMS functionality. For example, tracking employee attendance and managing payroll processing are core HRMS functions.
3. Eliminate options that are unrelated to HRMS. For instance, analyzing customer buying patterns for marketing campaigns is a function of marketing analytics software, not HRMS.
4. Similarly, recording inventory purchases and sales transactions is typically handled by inventory management or accounting software, not HRMS.
5. Finally, preparing financial statements for external reporting is a function of financial accounting software, not HRMS. Therefore, the correct scenario for using HRMS software is to track employee attendance and manage payroll processing.