Social and economic reasons that brought about the recent transition in HRM.
There are 3 main social and economics reasons that force a transition in HRM of most multinational company, which are:
1. Emerging geographical market : Due to the enormous demand for a variety of goods and services in many nations, multinational corporations seeking to develop there will take advantage of this situation to increase their profits and market share.
2. Globalisation - The trend of globalisation is spreading quickly throughout many nations, which will cause them to become more accessible to the economies, demographics, and cultures of other nations.
3. Increased competition - emerging market and globalisation will lead to increased competition.
Moreover, Recent HR transformations have tended to focus on costs savings rather than building more agile, business driven HR functions.