Strategic human resource management values the integrated development of each subsystem in forming a more complete strategy system. It also considers the strategic relationship at an organizational level to ensure mutual cooperation and development, in order to increase the organizational effectiveness over the long run. Research on strategic human resource management often discusses the concept from three perspectives. The universalistic perspective believes that promoting the best practices will allow an organization to have better performance. The contingency perspective emphasizes the cooperation between internal and external contingencies; the higher the goodness of fit, the better the organizational performance. The configurational perspective believes that a higher overall goodness of fit among all the subsystems of human resource management will yield better organizational performance.
The mechanism design theory, a theory that also examines manpower utilization, has been well empirically tested in the field of economics. It can guide mechanism designers to think about the problems of information efficiency and incentives compatibility. This study is based on the universalistic perspective of strategic human resource management. It combined the five major systems of practice with the connotations of the mechanism design theory, and applied them to school settings. Through combining the contingency perspective with information efficiency and the configurational perspective with incentives compatibility, their mutual integration became a mechanism of strategic human resource management with specific guidelines. This can be used to increase the organizational performance of all levels of schools in the education system. Researcher proposed that strategic human resource management should avoid problems with adverse selection during recruitment. Instead, strategies based on the signal, screening, and separating equilibrium should be adopted. Training should equip organizational members with the skills and abilities that are needed to achieve the organization’s objectives. The process of appraisal should avoid moral hazard problems and even eliminate them by using systems of incentives, supervision, and reputation. Practical benefits are most closely related to the incentives compatibility principle, as they are the keys to whether an organization can obtain the best allocation of resources. Finally, an emphasis should be placed on the information channels for each human resource management activity. This will yield a grasp of the levels of adequacy, authenticity, rapidity, privacy, and voluntariness during the practice of information acquisition.