The underpinning social and economic reasons that brought about the recent transition in HRM.
1. Globalization: the world becoming well connected and better communication services, forces the traditional HRM to move along with the time trends of the global community to ensure competitive advantage, in the global market.
2. Changed attitude to work and work ethics. Employees now want more flexible and individualized benefits and work environment( remote working). Companies are adopting a less formal and more flexible approach in HRM to better accommodate the needs of the employees.
3. The Economic situation has a significant influence on HRM. Recessions, economic recovery, inflation, consumer demand, unemployment rate, etc.. are economic factors which brings about the change and transformation in HRM., as shown below. You will also spend approximately 1 hours on this lesson.