A bank is planning to expand its digital banking operations. The HR department proposes hiring a large number of employees with technical skills but does not assess whether existing employees can be redeployed or reskilled. From a Strategic HRM perspective, which approach would be most appropriate?

Strategic HRM aligns human resources with long-term organisational strategy. In this case, digital expansion requires identifying the existing workforce capabilities, forecasting future requirements, identifying skill gaps, reskilling employees and then recruiting externally where internal capability is insufficient. A is incorrect: External recruitment may be necessary but should not automatically be preferred over internal development. B is incorrect: Workforce reduction is not the primary requirement. D is incorrect: Decentralised recruitment without strategic coordination can create skill duplication and inconsistency. E is incorrect: Productivity targets alone cannot address a capability gap.