Developments in SHRM thinking are thus explored through the best-fit, best-practice and configurational approaches which have a profound impact in the understanding of the contribution SHRM can enhance organizational performance, through increased competitive advantage and added value. Indeed, it becomes clear that whether the focus of SHRM is on alignment with the external context or on the internal context of the firm, the meaning of SHRM can only be really understood in the context of organizational performance, whether that be in terms of economic value added and increased shareholder value; customer value added and increased market share or people added value through increased employee commitment and reservoirs of employee skills, knowledge and talent.