The transition in HRM reflects broader social and economic shifts toward globalization, technology, and a knowledge-driven economy. HR’s evolution from administrative personnel management to a strategic, data-driven, and people-centered function enables firms to adapt to complex, dynamic environments and remain competitive.
Social and economic reasons include globalization, technical advance, changing workforce demographic, shift toward knowledge economic, economic uncertainty and flexibility, and lastly is the increased focus on employee well-being and corporate social responsibility (CSR).
Evaluation of HR:
1. Personnel Management (Traditional HR)
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Focused on administrative tasks: hiring, payroll, compliance, and labor relations.
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Reactive, transactional, and primarily concerned with employee welfare and rule enforcement.
2. Human Resource Management (Modern HR)
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Broader focus including training, performance appraisal, and employee relations.
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More proactive in supporting organizational goals but still mostly administrative.
3. Strategic Human Resource Management (SHRM)
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Integrates HR strategy with business strategy to drive organizational performance.
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Emphasizes workforce planning, talent management, leadership development, and culture building