The recent changes in HRM have been influenced by social and economic factors, resulting in the transformation of HR functions and responsibilities. Here's a review of the social and economic factors that propel changes in HRM functions and roles:
1. Impact of globalization: Companies with headquarters in various nations hire workers in the globalized workforce. Workers engage with individuals from diverse cultures, each with different work attitudes, which requires effective communication for job success.
2. Globalization and diversity of talent pools: Economic globalization has increased organizations' talent pools, but it has also made managing a culturally diverse workforce difficult. HRM nowadays considers recruitment, talent management, and cultural competency globally.
3. Intense competition for talent and talent acquisition: Some industries face skill shortages and intense competition for top talent. HR nowadays has revolutionized their HR function by incorporating expertise from global mobility and recruitment in order to deliver the right talent.