Following 5 types of strategic fits are generally adopted: 1.

BEST FIT APPROACH: ( STRATEGIC FIT APPROACH): Also called external fit or vertical integration with business strategies. HR strategies should match stages of development of firm ie need for different types of people as well as diverse approaches towards investment in HUMAN CAPITAL. 2. FIT AS CONTIGENCY: ( BEST FIT APPROACH) : HR approaches to ensure that internal practices of organization respond to external factors : market, skill availability est.'s per contingency of situation 3. FIT AS AN IDEAL SET OF PRACTICES: ( BEST PRACTICE APPROACH) Identifying any organization as benchmark which has reputation for excellence and copying its practices. 4. FIT AS BUNDLES (BUNDLING APPROACH): Development and implementation of several HR practices together so that they are interrelated and internally consistent. Each HR practice reinforces and complements the other. APPROACHES TO STRATEGIC HRM: . Strategic fit vertical fit or integration is necessary to provide congruence between business and human resource strategy so that the latter supports the accomplishment of the former and, indeed, helps to define it. Horizontal integration with other aspects of the HR strategy is required so that its different elements fit together. The aim is to achieve a coherent approach to managing people in which the various practices are mutually supportive. . Best practise the unfounded belief that there is a set of best HRM practices and that adopting them will lead to superior organizational performance. . Best fit the belief that there can be no universal prescriptions for HRM policies and practices. It is all contingent on the organizations context and culture and its business strategy best fit is better than best practise. . Bundling the belief that improved organizational performance will be achieved by developing inter-related HR practices which, when they are linked together, will function more effectively by complementing and supporting one another than if they existed as separate entities.

Resource-based strategic HRM (ECONOMIC PERSPECTIVE) sustained competitive advantage stems from the acquisition and effective use of bundles of distinctive resources that competitors cannot imitate. (Barney, 1991). This is achieved by developing HR

strategies and policies which increase the resource capability of the organization by ensuring that (1) it has higher quality people than its competitors (2) the unique intellectual capital possessed by the business is developed and nurtured (3) organizational learning is encouraged and (4) organization-specific values and a culture exist which bind the organization together (and) gives it focus. Benefits of SHRM
1. Identifying and analyzing external opportunities and threats that may be crucial to the company's success. 2. Provides a clear business strategy and vision for the future. 3. To supply competitive intelligence that may be useful in the strategic planning process. 4. To recruit, retain and motivate people. 5. To develop and retain of highly competent people. 6. To ensure that people development issues are addressed systematically. 7. To supply information regarding the company's internal strengths and weaknesses. 8. To meet the expectations of the customers effectively. 9. To ensure high productivity. 10. To ensure business surplus thorough competency. 11. Facilitates development of high-quality workforce through focus on types of people and skills needed 12. Facilitates cost-effective utilization of labor, particularly in service industries where labor is generally greatest cost 13. Facilitates planning and assessment of environmental uncertainty, and adaptation of organization to external forces 14. Successful SHRM efforts begin with identification of strategic needs 15. Employee participation is critical to linking strategy and HR practices Strategic HR depends on systematic and analytical mindset 16. Corporate HR departments can have impact on organization's efforts to launch strategic initiatives.