The social and economic reasons that have brought about the recent transition in HRM are globalization, emerging markets, increased competition among businesses globally and talent and skills gap.
The reasons above have caused a need for the transition of HRM from cost-driven and process-based approaches to the strategic alignment of HR in business decision making so as to get desired outcomes. For instance; Global Mobility should be aligned with broadening the Business strategies to cater for the talent gap, workplace learning needs to be introduced for both employees and HRM so more skilled employees are produced continuously when there is a need for particular skills at a particular job level and in turn the HRM is skilled enough to train and prepare employees for eventual business changes, a need to invest in technology and knowledge of how to use them effectively and a need to provide fair global incentives that attract and retain talent.
Lastly, the evolution of HR functions requires more knowledge, research and strategic planning so as to integrate the organisation's objectives with the changing global market trends.