Strategic human resource management (SHRM) involves aligning human resource policies and activities with organizational strategy to ensure employees have the necessary competencies and behaviors to achieve strategic goals. SHRM plays both a strategy execution role in administering initiatives like downsizing and a strategy formulation role by identifying opportunities, threats, strengths, and weaknesses to help develop the strategic plan. The challenges of SHRM include supporting corporate performance improvement efforts and requiring HR units to be more involved in designing the company's strategic plan rather than just executing it.

1. Chapter - 2 The strategic Role Of H.R.M