In this knowledge-driven era, change is the only constant. This poses challenges for HRM which could start from bringing about changes in the organization's structure, workplace, knowledge management as well as negative practices like poaching. All HRM activities need to be looked at again in order to develop an environment which fosters growth.The affairs of the business world, today, are in a flux and evolving at a rapid pace. Rapid growth of innovations, changing legislations, growing lawsuits against firms, higher expectations, mergers and acquisitions seem to be order of the day. To cope up with this changing environment, the managers have to constantly innovate and move along at the rapid pace. Any organization not willing to adapt to this changing demands will eventually have to move out and make way for the newer and more competitive company to take its place. Darwin's theory, "Survival of the fittest" holds true now.

Particularly, in developing countries, globalization itself has several implications. It entails new markets, new products, new mindsets, new competencies and new ways of doing business, hence is one of the main competitive challenges for Human Resource Management (HRM). The world is becoming a small place due to globalization, with the introduction of various telecommunications, travel and information systems. The structure and operations of many industries are completely changed by globalization. Most of the enterprises have become highly transparent, because of the forces like global access and information technology. The organizations have been transformed to more responsive, faster, less bureaucratic and less hierarchical. Sustainability of competitive advantage requires rethinking as the value-laden resources (particularly intellectual ones) have become increasingly mobile. A different type of management thinking is required to more non-linear and innovative ways for handling human resource (HR) issues. In global competition, HR functions that are patterned on an external market model begin to take shape as they operate more as "customer-centric" businesses. The stress is being put by number of contemporary HR commentators on the need to identify and define who their customers are. Universal access to HR-related information and self-service options will be allowed by the new technology that is the part of globalization process and there will be greater convenience and freedom to the customer.