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I think all organisations must have an H.R. software in order to cope with the current advancing IT revolution. An T-Form organisation is a must now, in my viewpoint.
I agree that all companies must have a software, but more developed, big company of course needs more improved, bigger one
A company employing20 and more people would be the ideal candidate for using HR solutions and software. However I don't think a company with7 employees would require HR software. There are free programs online to use to manage the7 employees vs spending money on a program for larger companies.
Every company needs to staff the program and to help keep the data their employees and to facilitate their actions