Social issues like shifting worker demographics, greater diversity, and the significance of work-life balance have propelled the recent shift in HRM. Economic factors that have affected HRM practices include globalization, technological development, and the move to a knowledge-based economy. These factors highlight the importance of strategic people management and agility in meeting market demands.
Traditional administrative responsibilities have given way to strategic business partnering in the recent expansion of HR roles and services. In order to promote performance and innovation, HR experts now play a critical role in organizational development, talent management, and change management. They do this by coordinating HR strategies with all business goals.