The purpose of HR strategy is to capitalize on the distinctive competencies of the organization and add value through the effective use of human resources.Effective HRM strategies include external and internal fit,and a focus on results.Explain external and internal fit.

HR programs must align with, or fit, the overall strategy of the organization. If the business strategy is to differentiate from competitors based on superior service, then selection and training programs should be developed to hire and train people in the skills and behaviours necessary to deliver superior service.
We look at two types of internal fit: a fit with other functional areas, such as marketing, and a fit among all HR programs. Fit with other functional areas is important. If the marketing department is developing an advertising plan that promises 24-hour access to customer service representatives, but the HR plan does not include compensation differentials for shift work, the overall marketing strategy might fail. HR programs must also be consistent with each other; that is, training, selection, and appraisal must work together to support a strategy. If the training department decides to teach employees to use the Internet to handle customer service, the staffing department must hire people who either are computer literate or who have the kinds of intelligence that enable them to learn computer skills rapidly.