Legislation has played a pivotal role in shaping HRM by enforcing policies that safeguard employee rights and protections. Laws regarding minimum wage, working hours, health and safety, and anti-discrimination, among others, necessitated HRM to adapt its practices to comply with legal standards. Consequently, HRM evolved to incorporate comprehensive practices that ensure organisational adherence to these laws. This involves developing policies, procedures, and workplace initiatives that protect employee rights, enhance working conditions, and safeguard organisations against legal repercussions. Thus, legislation has been instrumental in standardising HRM practices to ensure they are ethical, fair, and in compliance with the prevailing legal framework.

Various economic theories have substantially influenced HRM evolution by providing frameworks through which human resource practices are devised and implemented. For instance, classical economics, which emphasises rationality and self-interest, influenced HRM to focus on performance-related pay and clearly defined job roles. Meanwhile, behavioural economics, which considers the irrationality and biases of human decision-making, has encouraged HRM to develop strategies that address employee wellbeing, work-life balance, and organisational culture. Consequently, HRM practices have been shaped by these theories, aligning them with the economic principles believed to drive employee behaviour and thus, seeking to enhance productivity and organisational performance.

Globalisation has dynamically shaped HRM by necessitating the development of practices that address the challenges and opportunities presented by a globally interconnected business environment. This involves adapting HRM strategies to manage diverse, multicultural workforces, navigate international labour markets, and comply with varied legal and cultural frameworks across different countries. Globalisation has also facilitated the movement of people and ideas across borders, thereby introducing HRM to a plethora of practices, ideologies, and challenges that have enriched its development and encouraged the formulation of more comprehensive, adaptable, and globally-relevant HRM practices.

Workers' movements and strikes have been pivotal in illuminating employee grievances and pushing for change, thereby influencing the evolution of HRM. These events often highlight systemic issues within organisations, such as poor working conditions, inadequate pay, and unfair treatment, which necessitate HRM to re-evaluate and amend its practices. HRM has thus evolved to pre-emptively address potential sources of worker dissatisfaction and to constructively engage with employee representatives, such as unions, to mitigate conflicts and foster a harmonious working environment. Furthermore, they have led to the implementation of strategies aimed at enhancing employee engagement, representation, and satisfaction to not only comply with worker demands but also to foster a productive, satisfied, and stable workforce.

The feminist movement significantly moulded HRM by championing gender equality and advocating for women’s rights and opportunities within the workplace. Prior to its influence, female workers were often relegated to lower-paying, lower-status positions with limited opportunities for advancement. The movement raised critical awareness about these disparities and pressured organisations and legislatures to address them. Consequently, HRM practices evolved to incorporate gender-sensitive policies, equal opportunities, and diversity and inclusion strategies, ensuring a more equitable work environment. This change not only benefited female employees but also enriched organisations by tapping into a broader talent pool and fostering diverse perspectives, which are key to innovation and problem-solving.