The manufacturing industry is very much crucial for driving the economy of the nation. It has a direct impact on the GDP of any nation and also, it is very beneficial for a country to be strong in the manufacturing industry. This is also the case for a developing nation such as India. Hence, it is imperative for the organization to effectively manage their human resources to optimally utilize them as they are the non-perishable resources of the company. This could be done with the help of Cloud-Computing which is one of the advanced fields of elastic IT (Information Technology). This technology is continuously gaining momentum as it is relatively easier to use in E-HRM (Electronic-Human Resource Management) and also contains less initial investment. The objective of the study is to identify the factors that have an impact on the effectiveness of Human Resource Management by the help of Cloud computing. Various statistical tools like Exploratory Factor Analysis and Structural Equation Modeling have been executed in this study by SPSS 21 and AMOS 21 software.