The importance of human resource management as a competitive advantage has long been accepted by Western organizations. However, in many Southeast Asian countries, human resource management for competitive advantage remains to be seen. In China, due to lack of experience, the history of human resource development is still unclear. In essence, Malaysia and China cannot compete on the basis of low labor costs, because other Asian economies are competing to be more effective on this basis (Rowley & Abdul-Rahman 2007). Therefore, focus on the need to develop human resources and human resource management plans.
The use of advanced technology, skilled labour, best practices, and education helps increase the efficiency of many major organizations and companies. However, there are many American organizations (Purcell, 2014) due to the 2008 financial crisis that affected the company’s financial performance, resulting in a decline in productivity. The longevity of an organization is affected by employee engagement, which is a factor in organizational financial performance (Bersin, 2014). On the contrary, increasing employee productivity has a positive impact on organizational financial performance. Organizational productivity depends on the effort and engagement of employees (Musgrove, Ellinger, and Ellinger, 2014). Interpersonal behaviour affects productivity; therefore, leaders have begun to monitor how different interpersonal behaviours affect productivity (Hausknecht & Holwerda, 2013). Negative effects can have a negative impact on productivity and reduce employee engagement. .