Strategic Human Resource Management is becoming the preferred new way inrnour world. In multi-national organizations and most enterprises it has become arnmandate. HRM is giving way to SHRM. Taking into consideration that thisrntransition is benefiting; SHRM is getting fairly wide acceptance worldwide. Thisrnstudy is about its relationship with organizational performance in the EthiopianrnShipping and Logistics Services Enterprise. The purpose of this study is to showrnthe effect of Strategic Human Resources on the organizational performance ofrnESLSE. This study shows the use of SHRM components and practices in ESLSE.rnThe study is made in the Ethiopian Shipping and Logistics Services Enterprise.rnThe findings of this study are backed by document analysis, interviews, physicalrnobservation, as well as questionnaires. Interviews have been made to sixteen ofrnthe management employees. Questionnaires were distributed to 287 of the nonmanagementrnemployees located in the Head Office. Random sampling was usedrnwhile selecting respondents from each stratum. Slovinâ€™s formula was used torncalculate the sample size. The data gathered was analyzed using a software SPSSrn22. Using this software the researcher has found that a direct relationship existsrnbetween SHRM and Organizational Performance in ESLSE. The researcher hasrnalso found out that the enterprise tends to be more lenient in its exercise towardsrnsome components of SHRM. The organization needs to make serious changes asrnto address its leniency in some regards which are mentioned. In ESLSE, SHRMrncomprises of knowledge management and training, organizational climate,rndevolvement, and performance measures. In this organization, most of the SHRMrncomponents need improvement in their application. The researcherrnrecommended that HR department employees need to act as business partnersrnnot mere subordinates of the HR department. HR department employees need tornadd feasible value to the company. It is recommended that compensation andrnbenefit of employees is further studied and revised.