This paper investigate the extent to which Strategic Human Resource Management (SHRM) influences Firm Performance. Quick environmental changes, competition to extend innovative products, changing customer and angel demands and globalization have become the criterion backdrop for firms. Sustained Competitive Advantage (CA) could be generated from a firm’s Human Capital by styling SHRM to diagnose a firm’s strategic needs which is wanted to implement a CA and achieve operational goals. Effective Human Resource Management HRM systematically organizes all individual HRM measures to directly impact employee attitude and behavior in a way that leads business to achieve its CA. Finally, this article develops a conceptual framework that explains the relationship between SHRM, CA and FP.
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