What is a strategic approach to human resource management focused on?

A strategic approach to human resource management is fundamentally about aligning the management of employees with the broader organizational goals. This alignment ensures that HR practices and policies support the overall mission and objectives of the organization, enabling it to effectively compete in the marketplace.

By focusing on this alignment, human resource managers can create a workforce that is not only skilled and motivated but also directly contributes to the company's strategic objectives. This includes recruitment practices that attract talent suited for the company's goals, training programs that enhance skills necessary for future initiatives, and performance management systems that encourage the desired outcomes.

In contrast, simply producing more products, developing financial forecasts, or reducing costs through outsourcing do not inherently take into account the strategic alignment of human resources with organizational goals. While these activities can be part of an organization's overall strategy, they do not reflect the core principle of a strategic human resource management approach, which is the integration of human capital management with the organizational direction.