Human resource management is sometimes considered to be a departmental luxury that small and medium-sized business cannot afford. This is unfortunate, because HRM operations do much to organize the daily life of the firm, mainly through defining and developing the relations between management and employees. Nevertheless, it is costly and can be cumbersome to implement an HR department in a small business. Electronic HRM is often considered to be a solution, but packaged HRM software can still be extremely costly to adopt. The present thesis explores different ways to implement complete HRM services. Such a move can be made through the adoption of Web-based applications available from Internet providers. The thesis will present an argument for using a Web-based solution to the problem of developing an HR department in a smaller business setting. This study highlights the very visible benefits of using Web-based HRM - such things as increased company unity, cohesiveness, and harmony between management and employees - regardless of the difficulty researchers have had in confirming the claim that HRM benefits the strategy of the organization.