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logical systems in improving the human resource management of businesses, this dissertation uses ERP solutions to represent the information technology in the HR management in modern businesses. Due to the limit of space of this dissertation, the author will explain the functions of ERP solutions only briefly. In analyzing the necessity and methods for modern business organizations to use technological solutions, the author will base the argumentation on the practical needs of them, focusing specifically on the historical development of business growth. Thus, it is hoped that we can find some clues of the effectiveness of using technological solutions to improve business management in some specific areas, of which human resource management will be analyzed in details. 2. Literature review 2.1 The development of information technology in HR management Nowadays, the term information technology is most commonly used to refer to various kinds of commercial software systems that can be used to promote the management levels of a business. For modern enterprises, due to the complicatedness of business environment and ever-changing marketing situation, IT-based technological systems provide an integrated suite of information-processing technology that can be effectively used to aid the technical operations of an enterprise. (Applegate , Austin , and McFarlan , 2002) It is not just limited to planning functions but can be regarded as an important means of improving the general management level of a business organization. technological systems can support the essential management functions of an enterprise, ranging from financial management and Customer Relationship Management (Brown , C . , and I . Vessey , 2003). Other important areas of using technological systems include strategy making, human resources management, and even business culture construction. Today, technological systems are proved to be especially effective in HRM ( human resource management ) and Customer Relationship Management ( CRM ). For instance, the term ERP refers to a software system which is used to help finish the daily management of a business; however, in its broader sense, it also encompasses the business processes that drive system requirements and capabilities. As we will see in this dissertation, technological systems support the daily management work of an enterprise through the deployment integrated processes of business behavior ( Laudon and Laudon , 2003 ). Historically , technological systems have been used by large companies that can afford integrated software systems. However, with the advancement of IT and the Internet technology, and because of increased competition in the business world, more companies are considering the adoption of technological solutions to improve business processes, and subsequently company efficiency. As a result of technological systems gaining increased market attention, the IT software market has undergone significant change. Larger software companies ( for example Microsoft and Oracle ) have snapped up many of the pioneering ERP vendors ( JD Edwards , PeopleSoft , and Baan ), further increasing commercial interest in enterprise applications ( De Beer , 2002 ). Competition between vendors in the ERP market, for instance, has resulted in the provision of a wide range of technological solutions; with each solution focusing on satisfying a combination of business needs, including market positioning, human resource management, functional requirements, customer