Final answer:
The correct answer is A) strategic human resource management. This approach involves aligning HR policies and practices with the strategic goals of an organization, focusing on developing employee competencies and behaviors necessary for achieving these aims.
Step-by-step explanation:
Formulating and executing human resource policies and practices that produce the employee competencies and behaviors a company needs to achieve its strategic aims is known as strategic human resource management (SHRM). SHRM not only encompasses the hiring and retaining of employees but also addresses the alignment of human resource practices with the strategic objectives of an organization. This approach typically involves comprehensive, long-term planning about how to develop and manage the workforce in ways that support overall business ambitions.
Investments in human capital, such as providing education and training, creating apprenticeship opportunities, and professionalizing HR functions, are crucial elements of SHRM. These efforts can lead to significant economic payoffs by upgrading the skills and knowledge of the workforce. Furthermore, professional HR strategies may lead to a more equitable hiring process, as evidenced by research that shows larger firms with professional HR practices tend to display reduced levels of discrimination in hiring.
Specialized knowledge in industrial and organizational (I-O) psychology and performance appraisal also play a key role in effective SHRM, by helping to design optimal work tools and environments and by fairly assessing employee performance in relation to their job duties and contribution to organizational culture and goals.