Strategic HRM is concerned with issues such as organisational culture, structure, effectiveness, resource allocation, and performance. It entails both the development of process capabilities and the successful management of human capital. The approaches employed in strategic HRM may be divided into five groups:
1. Resource-based Strategy: Addresses issues that can improve the firm's strategic capabilities.
2. High Commitment Administration: By increasing the managers' and employees' mutual commitment.
3. Employees are treated as partners in the firm by high-involvement management.
4. High-Success Management: Improves a company's performance by focusing on its employees' productivity, growth, and profitability.
5. Achieving Strategic Fit: For a firm to run smoothly and profitably, human capital and resources must be integrated.