If we look back at the evolution of human resource management, it is interesting to see that with every advancement, expectations of both employee and employer have changed. Organizations have changed their approach from being paternalistic to guiding, mentoring and now there is no hitch in providing employees with nurturing and blooming environment which encourages employees to take decisions in a more dynamic manner. Organizations compete in the era of performance management; now is the time when organization’s entire focus rests on the reinforcement of employee-employer relations.
In the present era, organizations are managing diverse workforce with the dominance of Generation Y. Generation X joins an organization with a plan of staying and retiring from the same organization (Carey, 2001), whereas Generation Y although brings a new style and perspective, yet organizations have to take the risk of unwanted turnover, thus, losing billions of dollars every year (Sujansky and Ferri-Reed, 2009). Organizations are still offering traditional reward system and career plans to Generation Y (Tulgan, 2009). Generation Y wants something new; gone are the days of baby boomers who were accustomed to work-life imbalance.