A combination of economic and societal forces has driven the recent changes in human resource management, or HRM. In terms of society, diversity and inclusion are now major factors that HRM must take into account. Policies and procedures that guarantee equity and equal chances for workers from all backgrounds are therefore necessary. In addition, HRM has had to adjust to a digital workplace due to the quick advances in technology. This means using digital tools and platforms to improve collaboration, enable remote work, and expedite HR procedures. Business globalization has forced HRM to take a more global view from an economic standpoint. This entails negotiating several regulatory frameworks, managing a diverse workforce, and upholding international labor norms.
In addition, the need for cost effectiveness in an increasingly competitive environment has prompted HRM to use technology to expedite procedures, which has led to significant cost savings. Together, these social and economic dynamics have changed the nature of HRM's position and function, making it a strategic partner for the success of organizations, fostering employee engagement, utilizing data-driven insights, and guaranteeing adherence to changing legal and diversity-related requirements.