Social and Economic Reasons Behind the Recent Transition in HRM
The shift in HRM has been driven by globalisation, skills shortages, and the need for agile, talent-focused organisations. Here are the key factors:
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Globalisation & Emerging Markets
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Companies are expanding across borders, creating a demand for HR to manage international talent, cultural diversity, and global leadership pipelines.
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Skills Gap & Talent Shortage
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There's a worldwide shortage of skilled workers, especially in leadership and tech roles. HR must now ensure the right talent is in the right place, often through global mobility programmes.
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Workplace Evolution
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The shift to borderless, flatter organisations means HR must now support flexible teams, virtual collaboration, and hybrid work models.
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Evolution of Recent HR Functions/Roles
HR has evolved from a traditional administrative function into a strategic business partner. Key changes include:
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Global Talent Resourcing
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HR now plays a core role in deploying talent globally, integrating mobility with business needs.
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Strategic Business Partnering
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HR professionals are increasingly involved in strategy planning, not just recruitment or payroll.
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Data-Driven Decision Making
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Use of analytics and HR tech to forecast talent trends, measure engagement, and improve decision-making.
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