Strategic human resource management is the alignment of a company's human resource function with its overall strategic goals and objectives. Human resources management policies and practices are increasingly believed to be a source of long-term competitive advantage and success, provided that they are integrated with and/or generated from broader organizational plans and goals. The purpose of this study is to examine the effect of strategic human resource management on organizational performance in BOA, Bahir Dar city branches. To achieve the purpose, quantitative research approaches and cross sectional survey research design is used. The data was gathered from a primary source and collected using structured questionnaire to measure both independent and dependent variables. All professional employees who are currently working in the bank were taken as the population of the study, and the return rate is 91.6%. The analysis is done using SPSS. The data was analyzed with both descriptive and inferential statistics using frequency, percentages, mean scores, standard deviations, correlation and regression. The findings of the study indicated that organizational performance had moderate, positive and statistically significant relationship with strategic reward and compensation, and strategic performance appraisal, but strategic recruitment and selection, strategic training and development, have a weak significant and positive association. The finding also exposed that; performance appraisal was the most dominant strategic human resource management practice that contributes more for performance. From the findings it is concluded that strategic reward and compensation, strategic training and development and strategic performance appraisal positively influence organizational performance. But strategic recruitment and selection has statistically insignificant influence on the organizational performance. Thus, it has been recommended that, the bank had to strengthen those strategic human resource management practices based on the principles of strategic human resource management to improve the overall performance of the bank.