The reason that brought the recent transition in HRM is because the impact of social and economic.
First, as we know the HR environment is a pat of social environment which includes the concept, viewpoints, work culture, attitudes, efficiency, skills, productivity, nature and behaviour of HR, employees' demand and supply, motivational aspects, compensation methods and industrial relation concerning of HR practices. The social enviroment includes th e impact of the political institutions on the HRM depatment, the following activities are mainly affted by the constitutional provisons, like HR planning,recruitment, selection,placement,training and development, employee relations and separations.
Second, the economic environment refers to all the economic factors which directly or indirectly affect HRM, the components of economic environment included suppliers, competitors, customers, and industrial labor.The economic and social status of today’s workers has vastly improved. Improved skill contents, matching educational and training inputs, and increased emoluments have made the industrial employment as the first attraction of the young job seekers.
The human resource environment is changing very fast and the changes are requiring it to play an ever more crucial role in organizations. These trends include work force diversity, technological trends, globalization and changes in the nature of jobs and work.