The major force behind recent changes in human resource management (HRM) has been globalization. It has increased competition and made effective people management more important (Schuler &. Jackson 2007). Furthermore, new organizational forms such as international joint ventures and mergers have underscored the need for a more dynamic form of HRM.
The new emphasis is on innovation, and democratic leadership is embracing the vision. People bring their talents and knowledge to the workplace to perform more integrated jobs. The digital age enables part-time, remote work along with new paradigms that reward creativity. Motivation cohesive teams capitalize upon new systems of applying human intellect.
Certain advances in HRM have helped meet these challenges. Holistic management helps leaders see people within an organizational framework where these process networks are emerging (Chiavenato 2001). Some of the traditional roles of HRM have become the domain of middle management, and strategic planning has become a task for HRM. Joint decisions and communication augment this emerging corporate culture. Helping employees develop their full potential as well as developing alternatives to traditional conflict management are just some of the new trends toward more effective HRM.