Strategic HR approach is a proactive way rather than reactive way in managing organisations. A strategic approach involves on fitting HRM into an organisation's strategy. Different organisation strategy will result in different HR strategy. These strategies are: Paternal, Traditional, Commitment, Collaborative. Each of these strategy depends on how an organisation competes in their market and thus requiring a process or resources based approach to HRM.
Academics and HR professionals embraced SHRM as there are business cases whereby a SHRM strategy will result in better retainment of employees as well as business objectives.
One of the case study involves airlines companies whereby a full service airlines seek to compete with low cost airlines by splitting its employees and further reducing their compensation to the market rate of the low cost competitors. The result was dissatisfied employees.
Another example involves a privatised national airline. In a bid to reduce cost, the airline downsized it's workforce and services, which lowered employee morale in the process. The airline lost market share in the aftermath until the management ensured that they are fully committed to the remaining employees. This gave a sense of security to these employees.