Unit 1 Difference Between HRM and HRD

Difference between HRM and HRD
Interview questions revolving around the difference between human resource management and
human resource development have been taking many participants by surprise. The same is true
for new employees who find it difficult to distinguish between HRM and HRD at the best of
times. This article throws light on the difference between HRM and HRD in tabular form, the
definition of HRM and HRD, HRM and HRD concepts, etc. Read on to take a closer look.
HRM vs. HRD

HRM is an essential branch of management that deals with making the optimum usage of
organizational human resources by nurturing better work conditions for all concerned. On the
other hand, HRD is a branch of HRM that focuses on the growth and development of the
workforce in any organization.
Before we define HRD and HRM in detail, here is a comparative chart depicting the differences
between HRM and HRD in tabulated format.
Basis of
HRM HRD
Differentiation
The full form of HRD is Human
The full form of HRM is Human
Resource Development. It refers to
Resource Management. It refers to how
Definition and continuous development functions
the principles of management can be
full form that are implemented for improving
applied to manage the employees
the performance of those working in
working in an organization effectively.
an organization.
Nature HRM is a management function. HRD is a sub-function of HRM.
The functions of HRD are proactive
The functions of HRM are reactive and
and have to be applied consistently
Function are usually applied to gaining holistic
to enhance the productivity of
organizational goals.
employees.
HRD goals are usually connected
The objective of HRM is related to
with skill development, knowledge
Goal improving the overall performance of
enhancement, and increasing the
employees.
competency of employees.
Most HRM processes are routine and
HRD processes are ongoing and not
Process have to be carried out as and when the
occasional.
need arises.
HRM is an independent entity in itself. It
comprises of different sections inclusive HRD is a subsystem of HRM and
Dependency of recruitment and retention, HRD, draws many functions, attributes,
compensation, performance, appraisal and processes from HRM.
management, etc.
Basis of
HRM HRD
Differentiation
HRD is concerned with the
HRM deals with and has concerns for development of all aspects and
Concerned with people only. It handles recruitment, people within an organization and
rewards, etc. manages its skill development
processes.
HRD functions may be informal as
HRM functions are generally formal and
Levels of in mentorships, employees receive
are applied via classroom/laboratory
formality coaching from superiors, usually
training, etc.
managers.
What is HRM
Human Resource Management or HRM is defined as a branch of management that deals with
the management of employees in a manner that they can provide the best results to an enterprise.
Various management principles are applied via HRM to make employees work efficiently and
effectively in any organization. It enhances the performance and productivity of a company by
assessing the best utilization of human resources. Overall, HRM can be termed as the art of
putting the right human resource to the right job to enable the maximum possible usage of an
organization’s human resources.
 The HRM process incorporates a wide range of activities that include recruitment,
selection, hiring, orientation, induction, training, skill development, feedback,
performance appraisal, incentives, rewards and compensation, maintenance of workplace
safety, staff motivation, health, and welfare plans, change management, etc.
 HRM also aims to maintain good relations across the entire organization and the different
levels of management.
What is HRD
Human Resource Development is defined as the development of employees working in any
organization. As a subset of HRM, it aims at improving the skills, competencies, knowledge,
behaviour, and attitude of people working in a specific organization. The main goal of HRD
activities relates to empowering and strengthening the capabilities of employees for making their
performance metrics better.
 HRD deals with the provision of beneficial opportunities to employees for their overall
development.
 The main activities of HRD are directed towards career development, essential 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.
Key difference between HRD and HRM

 One of the main differences between HRD and HRM is that the former applies
management principles on a routine basis for the proper management of organizational
employees. The latter refers to a continuous development function that is performed
continuously with the intent of improving the performance of those working in an
organization.
 HRM is a reactive management function, while HRD stands for proactive tasks that are
a subset of HRM. HRM aims to fulfil the various demands that keep on arising in an
organization, while HRD meets up with the ever-changing needs of employees by
anticipating them beforehand.
 Another way to differentiate between HRM and HRD is that the objective of HRM lies in
improving the efficiency of all employees, while HRD deals with increasing the
knowledge, skills, and overall competency of those working in the organization.
 HRM is an independent entity and function and has different roles to play in comparison
to HRD that is a subsystem of HRM and a dependent task.
Conclusion
The answers to what is HRD, what is HRM, how to differentiate HRM and HRD, the features
and functions of HRM vs. HRD have been scripted above. In case you have any further queries
for HRM or HRD definition or would like to add to our table of HRD vs. HRM, then we would
appreciate your response in the Comments section given below.

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Difference between HRM and HRD

HRM vs. HRD

Key difference between HRD and HRM

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