Difference Between HRM and HRD

Main Difference

The main difference between HRM and HRD is that HRM (Human Resource Management) relates to all aspects of the human resources function and HRD (Human Resource Development) only relates to the development part.

HRM vs. HRD

HRM refers to how the principles of management can be applied to effectively manage the employees working in an organization and HRD refers to continuous development functions that enforced for improving upon the act of those working in an organization. HRM is a management function whereas HRD is a sub-function of HRM. The functions of HRM are reactive and usually applied for gaining holistic organizational goals conversely the functions of HRD are proactive and have to be applied consistently to enhance the productivity of employees. The purpose of HRM is related to improving the overall performance of employees, and HRD goals usually connected with skill development, knowledge development and increasing the competency of employees. Most HRM processes are routine and to carry out as and when the need arises whereas HRD processes are ongoing and not occasional.

HRM is an independent existence in itself. It comprises of different sections comprehensive of recruitment and retention, HRD, compensation, performance, appraisal management, etc., on the other hand, HRD is a subsystem of HRM and draws many functions, attributes, and processes from HRM. HRM deals with and has distress for people only. It handles recruitment, rewards, etc. and HRD is concerned with the development of all intents and people within an organization and directs their skill development processes. HRM functions are generally formal and applied via classroom/laboratory training, etc. whereas HRD functions may be casual as in mentor-ships; employees receive coaching from superiors, usually managers.

Comparison Chart

HRMHRD
Human Resource Management relates to the application of principles of management to manage the people working in the organization.Human Resource Development means a continual development function that intends to improve the performance of people working in the organization.
Objective
To enhance the performance of the employees.To create the skills, knowledge, and competency of employees.
What is it?
It is a Staffing function of the organization.The development and management of company resources.
Includes
It includes compensation and benefits, recruiting and staffing, employee and labor relations, occupational health and safety.It includes organizational development, performance management, training and learning, and coaching.
Function
ReactiveProactive
Dependency
IndependentIt is a subsystem.
Process
RoutineOngoing
Concerned With
People onlyDevelopment of the entire organization.

What is HRM?

Human Resource Management or HRM defined as a part of management that relates to the management of employees in a way that they can provide the best results to an enterprise. Various management principles are applied through HRM to make employees work efficiently and effectively in any organization. It improves the performance and productivity of a company by assessing the best use of human resources. Overall, HRM termed as the art of putting the right human resource to the right job to provide the maximum possible use of an organization’s workforce. In general, human resource management concerned with hiring, motivating and maintaining workforce within businesses. Examples of core qualities of HR management are extensive knowledge of the industry, leadership, and effective negotiation skills. It is formerly called personnel management. The main activities of HRD directed towards career development, key employee identification, training & development, talent management, succession planning, performance management, coaching and mentoring, etc. The HRD department in most organizations, worldwide, work towards the development of employees right from their date of joining to termination or retirement. In the majority of organizations, agencies, and businesses, the human resources department is accountable for:

  • Directing job recruitment, selection, and promotion
  • Growing and overseeing employee benefits and wellness programs
  • Developing, furthers, and enforcing personnel policies
  • Promoting employee career development and job training
  • Providing orientation programs for new hires
  • Guiding disciplinary actions
  • Serving as the primary contact for work-site injuries or accidents

What is HRD?

Human resources development (HRD) relates to the immense field of training and development provided by organizations to enhance the knowledge, skills, education, and abilities of their employees. In several organizations, the human resources development process starts upon the hiring of a new employee and continues throughout that employee’s occupancy with the organization. Many employees enter an organization with only a basic level of skills and experience and must receive training to do their jobs efficiently. Others may already have the required skills to do the job, but don’t know relevant to that particular organization. HR development is intended to give employees the information they need to adjust to that organization’s culture and to do their jobs effectively. HRD has the same objective: to make better employees. HR development aims to provide the ‘coaching’ needed to strengthen and grow the knowledge, skills, and abilities that an employee already has. The goal of development and training is to make employees even better at what they do. Human resources development generally begins as soon as an employee is hired and continues throughout that employee’s tenure with the organization. HRD acts on different forms, including;

  • On-the-job training or job shadowing
  • Textbook or online education
  • Growth opportunities
  • Compliance training

Key Differences

  1. HRM (Human Resource Management) refers to the application of principles of management to manage the people working in the organization. HRD (Human Resource Development) means a continuous development function that intends to improve the performance of people working in the organization.
  2. HRM is a reactant management function while HRD stands for proactive functions that are a subset of HRM.
  3. HRM is a responsive function as it attempts to fulfill the demands that arise whereas HRD is a proactive function, that gathers the changing demands of the human resource in the organization and anticipates it.
  4. The basic goal of HRM is to improve the capability of employees. In contrast to HRD, which goals at developing the ability, knowledge, and competency of workers and the entire organization.
  5. HRM is a usual process and duty of administration. On the other hand, HRD is a continuous process.
  6. Human Resource Management is involved with people only. Unlike Human Resource Development, that emphasis on the development of the entire organization.
  7. HRD is an organizationally directed process; that is a subsystem of a big system. In place of HRM where there are separate roles to play, which makes it an independent function.

Conclusion

Human Resource Management is a large concept than Human Resource Development. The HRM and HRD are two different beings within an organization that holds different responsibilities, roles, and intents. The HRM is aimed to maximize the achievement of the employees to reach organization goals while the HRD helps employees in developing knowledge, personal skills, and abilities.