This paper elaborates Strategic Management and Human Resource Management. Special emphasis is placed on their integrative connection as a possible response to the today challenges. The aim of the paper is to analyze the factors that affect Human Resource Management and examine their importance. The purpose of the research is to present human resources as the intellectual capital that enables business efficiency, emphasize the limitations of available resources and the need for making choices about where, how and when to allocate resources. The influence business strategies have on operational Human Resource Management has also been observed. The operational Human Resource Management consists of the analysis and design of the work place, selection and procurement of the staff, performance management, salary structure, incentives and benefits, and achieving good working relationships with the employees. The challenges Strategic Human Resource Management faces in the 21st century have been detected and analyzed. The issues concerning talent management, women labor, company mergers, and technology progress have been analyzed in terms of human resources. Following the theoretical part, an example of integrative connection of strategic management and human resources management has been presented. The concluding part synthesizes the positive outcomes of strategic decision-making in correlation with the management of human resources. The importance of integrating a business strategy and a human resource management strategy has been emphasized and methods concerning their interactions have been demonstrated.