Final answer:
Linking HR policies with strategic business goals is termed strategic management. It includes practices like increasing workforce skills and professionalizing HR to reduce hiring biases.
Step-by-step explanation:
Linking HR policies and practices with strategic goals to improve business performance is known as strategic management. This concept ties the human resource activities directly to the strategic plan of an organization. Effective strategic management of HR includes various practices like upgrading the skills or knowledge of the workforce, increasing education, and fostering apprenticeships to augment human capital. Professionalizing HR functions is crucial to reduce bias in hiring and ensure equal opportunity which is in line with the strategic goals of enhancing diversity and compliance with regulations.