In face of the challenges emerged in recent decades due to globalization, a common set of pressures are imposed to all markets across the globe. The phenomenon is characterised by growing interconnectedness of the international economy, more fragmented markets, fundamentally shifted production and sourcing relations, and rapid pace of technological advancement. In order to survive in this highly competitive business environment, ensuring sustainable competitive advantages has been a critical strategy for all organizations. Since competence and capabilities as a source of competitiveness are the internal resources which embedded in the workforce, adopting a strategic human resource development (SHRD) approach with a strong strategy shaper role is pivotal as “organizations in the new economy have come to realize that employee expertise is a vital and dynamic …show more content…
Since the 1980s, many human resource scholars have attempted to define the meaning and function of HRD and argued to include the strategic perspectives and the linkage between strategy and HRD to complement the SHRD theory and importance to organizations. SHRD essentially is a ‘high-road’ HRM strategy which emphasise high involvement, rewards and commitment. It is an approach to ensure employees have the required competence for high performance. This goal is to be achieved through a holistic HRM approach with appropriate recruitment from external, internal promotion and training and development. It also facilitates the development and reinforcement of the targeted behaviours and establishes an appropriate framework for individuals and the organization interact with each other. The strategic advantages brought by SHRD through creating, maintaining and strengthening a firm’s competitiveness and strategy integration makes SHRD a vital approach to be adopted by