The information technology has profoundly changed the way organizations are structured as well as the nature and the role of the business divisions. Human resource department, as one of the most vital units of any organization has also not been immune from these changes and many of its functions has transformed from traditional techniques to IT-based methods. The current research aimed to clarify some controversial issues regarding the nature of IT effects (i.e. positive or negative) on human resource department performance from two dimensions: operational and strategic. Based on the methodological approach, the nature of this research is field study. A questionnaire was designed and distributed in order to collect the data and test research hypotheses. The results showed that the IT utilization in auto-manufacturing firms, operating in the city of Tehran, would improve the operational and strategic performance of HR departments. In addition, the result supported the hypothesis that enhancing operational performance will result in strategic performance improvement.