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The purpose of this article is to analyse the level of strategic human resource management (SHRM) and explain organisational factors that influence the level of SHRM in Ethiopia. The findings are based on a large questionnaire survey run in 156 large business organisations operating in Ethiopia, comprising both service and manufacturing, local and multinational, and private and public firms. Data were collected from the most senior responsible managers in HR from the sample organisations. Discriminant analysis was then applied to partition organisations into high or low SHRM, and to identify the independent variables that acted as predictors of the level of SHRM. Results show a moderate level of SHRM. To a moderate extent, HR directors are members of the senior management team, and are involved in key strategic decisions and have direct reporting relationship to the CEOs. Top management support for HRM, HRM directors’ involvement in strategic decisions, and HRM department budget are major predictors of SHRM.