Strategic Human Resource Management is also known as "People Strategy".
It is pivotal for a firm's HRM to understand the long-term goals of the firm. They need to understand this because they are in charge of recruiting the right kind of talent for the firm. If they don't understand the firm's long-term objectives, they will not be able to acquire the right talent and skilled candidates. Also, recruitment is just one of the earlier stages of hiring an employee. Later on, employees need to be trained, motivated, and incentivized to perform at their highest efficiency level to get the best outcome for the firm.