A model of SHRM has been provided in the project to bring out the relationship between theory and practice. This project aims to provide a suitable explanation of the concept of strategic human resource management (SHRM). The explanation is accompanied by analysis, and both together strive to define the term in this project. Appleby and Mavin have said that human resource is comprised of efforts, skills and capabilities contributed by people towards an organization. It is perceived as an approach that manages people and seeks to attain a competitive advantage with the help of a capable and committed workforce strategically (Armstrong, 2000, p.43). HRM activities are closely associated with the work done by the HR office, although it is known that supervisors would have to bear the responsibilities of decisions taken by the HR department. Strategic human resource management is those activities that help to accomplish the company’s mission and measure the extent to which these activities contribute towards the company’s strategic goals. A number of line managers were interviewed and were asked to select that HR activity which they felt contributed towards goal accomplishments. Although they could not agree on a specific activity yet it was unanimously declared that it was impossible for the organization to work towards its goals without the support of the HR. The most valuable contribution of this department was towards staffing and recruitment, employee development and employee relations. They were expecting more involvement and more innovative approach on the part of HR (Franklin, 1999, p.21). Efforts have been made to bring about organizational improvement by implementing strategic human resource management. Extensive research has also been conducted to detect their results. Evidence shows that the performance of USA and UK has improved after implementing this practice.