Set up for the smith machine shrug by loading up the weight you want to use on a smith machine.
Stand facing the bar with your feet about shoulder width apart.
Grasp the bar with an overhand grip (palms facing down), with your hands about shoulder width apart. Bending at the knees only, pick the barbell up and release the safety.
Keeping the barbell close to your body, let your shoulders "sag" as far as possible. This is the starting position for the exercise.
Slowly shrug your shoulders up as far as possible.
Pause, and then slowly lower the barbell back to the starting position.
Repeat for desired reps.