INTRODUCTIONIn the fields of management and business, strategic human resource management (SHRM) has been a powerful and influential tool to motivate employees to be productive. (Ejim, Esther, 2013). According to Armstrong (2011), SHRM refers to how the company approaches its strategic objectives through people combining human resource policy and practices. The objective of SHRM is to produce a strategic capability that the organization must ensure, such that employees are competent, engaged and motivated in order to achieve sustainable competitive advantage (Armstrong, 2011). In particular, the organization must be able to carefully plan strategic human resource ideas, aimed at increasing productivity. The Importance of SHRM The organization must carefully select and support employees who will be able to achieve the goals of the organization. The important role in the organization is that of the employees, and this cannot be emphasized enough because they are the driving force behind the goals of any organization. (Esther Ejim, 2013). According to Becker and Huselid (2006), SHRM focuses on organizational performance rather than individual performance. SHRM also encourages managers to be more proactive in thinking ahead. The objective of SHRM according to Armstrong (2011) is the environment, organization, HR analyst (staffing) must ensure that people in the organization have sufficient knowledge, skills and abilities to achieve the objectives.2. Competitive advantage of strategic human resource management2.1. Enterprise ResourceEnterprise resources refer to all assets, capabilities, organizational processes, enterprise attributes, information, knowledge, etc. The company controlled ...... middle of paper ...... distinguish that a qualitatively new type of global trade was developing. The illustration presented by United from the late 1980s showed that “the less productive parts were moved overseas, leading to a decrease in employment while maintaining higher value-added parts. As a result, all productivity increased, while the tradable goods sector increased employment” (Spence and Hlatshwayo, 2011). Conclusion Strategic human resource management is becoming more important in the organization. This gives the company many competitive advantages, but the organization also needs to look at some challenges. Certain strategies help the organization minimize challenges such as training and compensating employees affected by offshoring. So, when organizations apply SHRM, they will face some complications..