What Are the Factors Responsible for the Growth of HRM

Factors for HRM Growth

Human Resource Management (HRM) plays a pivotal role in the success of any organization. It’s the driving force behind nurturing a productive and motivated workforce. But what are the factors responsible for the growth of HRM? In this article, we’ll delve into the evolution of HRM, explore the various internal and external factors that influence it, and discuss the evolving nature of Human Resource Management in today’s dynamic business world.

Evolution of HRM

Human Resource Management, as we know it today, has come a long way from its inception. It has evolved through various stages to adapt to the ever-changing business landscape.

What Are the Factors Responsible for the Growth of HRM?

HRM’s growth can be attributed to a combination of internal and external factors that shape its function and significance within organizations.

Internal Factors

Internal factors refer to elements within an organization that influence HRM. These include:

  • Organizational Culture: The culture within an organization sets the tone for HRM. A positive and inclusive culture fosters a thriving HRM environment.
  • Leadership and Management: Effective leadership and management practices play a critical role in HRM’s growth. Leaders who value their workforce are more likely to invest in HRM.
  • Workforce Diversity: In today’s globalized world, workforce diversity is a key internal factor. HRM must adapt to cater to diverse employee needs.
  • Technology Integration: The integration of technology in HRM processes has streamlined operations, making HRM more efficient and data-driven.

External Factors

External factors refer to elements outside an organization that impact HRM. These include:

  • Economic Trends: Economic conditions, such as recessions or booms, can significantly affect HRM strategies. Organizations must adapt to ensure workforce stability during economic fluctuations.
  • Legislation and Regulations: Employment laws and regulations continuously evolve. HRM must remain compliant with these changes, affecting its growth and structure.
  • Globalization: As businesses expand globally, HRM faces the challenge of managing an international workforce, requiring diverse skill sets.
  • Technological Advancements: The rapid pace of technological advancements continually reshapes HRM practices, from recruitment to training and development.

Nature of Human Resource Management

The nature of Human Resource Management (HRM) has transformed significantly in recent years, reflecting the changing dynamics of the workplace and the evolving needs of both organizations and employees. This transformation has been driven by several key factors.

Strategic Focus

In the past, HRM was primarily seen as an administrative function, responsible for tasks like payroll processing, benefits administration, and record-keeping. However, in the contemporary business landscape, HRM has transitioned into a strategic partner within organizations.

Today’s HRM is not merely an administrative arm but an integral part of an organization’s strategic decision-making process. HR professionals actively contribute to defining and implementing business strategies, ensuring that the workforce aligns with broader organizational goals. They work closely with top management to identify talent gaps, develop succession plans, and foster a culture of innovation and adaptability.

Employee-Centric Approach

Another critical shift in the nature of HRM is its increasing emphasis on an employee-centric approach. Traditionally, HRM was primarily concerned with the organization’s needs, often treating employees as a means to an end. However, this mindset has evolved dramatically.

Modern HRM recognizes that employees are the most valuable asset of any organization. As such, it prioritizes the well-being and development of employees. This includes fostering a workplace culture that values diversity and inclusion, promotes work-life balance, and offers opportunities for growth and development.

Moreover, HRM has embraced the use of data and analytics to understand employee needs better. By collecting and analyzing data on employee performance, satisfaction, and well-being, HR professionals can tailor their strategies to address specific issues and foster a more supportive work environment.


In conclusion, Human Resource Management has evolved significantly over the years, adapting to internal and external factors that have shaped its growth. From its humble beginnings, HRM has become a strategic partner in organizations, with a strong focus on employee-centric approaches. To stay competitive in today’s dynamic business world, organizations must recognize and leverage the factors influencing HRM to ensure their workforce remains their most valuable asset.
If you’re looking for HR solutions that can help your organization navigate these factors, consider partnering with Stravatek. We specialize in HR outsourcing services that can streamline your HR processes, allowing you to focus on what matters most – your people. Contact us today to learn how we can assist you in achieving HR excellence.

Stravatek was started in 2017 from Bahrain to simplify how companies can benefit from external professional business partners.

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