Abstract
<title>Abstract</title> <p>In today's competitive business environment, Strategic Human Resource Management (SHRM) is widely recognized as a lever for gaining competitive advantage and improving organizational performance. However, empirical evidence from Ethiopian manufacturing firms remains limited. A cross-sectional, quantitative explanatory design was employed. Data were collected from 310 employees across four selected manufacturing companies in Gondar City using structured questionnaires. Simple random sampling was used. Descriptive statistics, Pearson correlation, and multiple linear regression were analyzed using SPSS v26. Four SHRM dimensions served as independent variables—Performance Management (PM), Integration of HR Strategies with Business Strategy (HRS), Focus on Long-Term Goals (FLG), and Emphasis on Employee Development (ED)—with organizational performance (OP) as the dependent variable. All four SHRM dimensions had statistically significant positive effects on organizational performance (p < 0.05). The regression model explained 68.6% of the variance in OP (R² = 0.686; F = 166.947; p < 0.001). Emphasis on Employee Development was the strongest predictor (β = 0.392), followed by Focus on Long-Term Goals (β = 0.231), Integration of HR with Business Strategy (β = 0.188), and Performance Management (β = 0.141). Manufacturing companies in Ethiopia should prioritize employee development programs, align HR practices with long-term strategic goals, and integrate HR policies with business strategy to enhance organizational performance.</p>