“Formulating and executing human resource policies and practices that produce the employee competencies and behaviors the company needs to achieve its strategic aims” is called?

Correct option is A

Strategic Human Resource Management (SHRM) refers to the process of aligning human resource policies and practices with an organization’s long-term strategic goals. It ensures that the competencies, skills, and behaviors of employees contribute directly to achieving the company’s objectives.

• Key Features of SHRM:
  1. Focuses on aligning HR practices (recruitment, training, performance management) with business strategy.
  2. Aims to develop a workforce capable of achieving organizational goals.
  3. Involves both formulating HR policies and executing them to meet strategic objectives.

The statement in the question directly corresponds to SHRM, as it highlights the integration of HR efforts with the company’s strategic aims.

Information Booster:

Importance of Strategic Human Resource Management:

1. Talent Alignment: Ensures employees' skills and behaviors align with the company’s needs.
2. Competitive Advantage: A strong HR strategy can create a skilled workforce that differentiates the organization.
3. Long-term Planning: Goes beyond operational HR and focuses on long-term workforce needs.
4. Enhanced Performance: Links HR practices to organizational success, improving overall effectiveness.

Additional Knowledge:

• Option 2 (Strategic Human Resource Planning): Focuses on identifying and forecasting HR needs for the future but does not execute HR policies.
• Option 3 (Strategic Human Resource Auditing): Involves evaluating HR systems and processes for compliance and effectiveness.
• Option 4 (Strategic Human Resource Evaluation): Focuses on assessing the success of HR strategies and policies, not their formulation and execution.

SHRM emphasizes a proactive approach, where HR becomes a strategic partner in achieving business goals.