The shift in Human Resource Management (HRM) has been driven by several key social and economic factors:
Globalization – Companies operate across borders, requiring diverse workforce management.
Technological Advancements – Automation and AI have changed how HR functions, emphasizing digital HR solutions.
Workforce Diversity & Inclusion – The demand for fair, inclusive workplaces has reshaped HR policies.
Gig Economy & Remote Work – Flexible work arrangements require new HR strategies.
Changing Employee Expectations – Employees now prioritize work-life balance, career growth, and well-being.
Economic Shifts – Recessions, inflation, and labor market changes force HR to focus on talent retention and cost efficiency.
HR has evolved from a traditional administrative role to a strategic business partner:
Personnel Management (Early HR) – Focused on payroll, hiring, and compliance.
Human Resource Management (HRM) – More structured approach to recruitment, training, and performance.
Strategic HRM (SHRM) – Aligning HR strategies with business goals to drive growth.
HR as a Business Partner – Involves workforce planning, culture-building, and change management.
Digital & Analytics-Driven HR – Uses HR technology, AI, and data analytics for decision-making.