DIFFERENCE BETWEEN HRM & HRD

HRM vs HRD
HRM stands for human resources management, which refers to the art of managing all aspects
of the human work force at a company or organization. HRM aims at providing an optimal
working environment for employees to fully and freely utilize their skills to their best to achieve
the company’s intended output. As human resources management usually applies to big
companies and organizations, it has sub categories, among which is HRD, which stands for
human resources development. This is a component of HRM that focuses on ‘nurturing’
employee’s skills. Because the process of hiring new employees can be long, expensive and
cumbersome, most companies employ the strategy of HRD to promote longevity of employees
within the company because through this an employee is likely to progressively scale up the
managerial ladder.

Human resources management of a company is often an independent department of its own

composed of various sections including recruitment and retention, performance and appraisal
management, HRD and compensation sections. But HRD does not only focus on development of
skills but also focuses on the personal development of employees. Because peoples’ needs and
expectations are ever growing and changing this section of HRM is specifically there to help
employees cope with such and prepare them for future uncertainties.

Generally speaking, professionals working within the HRM department must have excellent
people skills although this is more so with those particularly working in the HRD section. The
HRD section needs to have professionals with impeccable people management skills as they
need to be able to realize talent within people from a cross section of backgrounds. The HRD
section is concerned with identifying strengths and weaknesses among different employees and
devising training means that aim at making those skills complement the other.

HRD aims at developing a superior workforce so that the company and individual employees
may achieve their work goals in the customers’ service. It can take on a formal approach as in a
classroom or laboratory training in a case where it may apply. It may also take the informal
route where an employee receives coaching or simple mentorship from his superior, usually a
manager.

Key Differences Between HRM and HRD

The significant differences between HRM and HRD are discussed in the following points:

1. Human Resource Management refers to the application of principles of management to

manage the people working in the organisation. Human Resource Development means a
continuous development function that intends to improve the performance of people working in
the organisation.
2. HRM is a function of management. Conversely, HRD falls under the umbrella of HRM.

3. HRM is a reactive function as it attempts to fulfil the demands that arise while HRD is a
proactive function, that meets the changing demands of the human resource in the organisation
and anticipates it.

4. HRM is a routine process and a function of administration. On the other hand, HRD is an
ongoing process.

5. The basic objective of HRM is to improve the efficiency of employees. In contrast to HRD,
which aims at developing the skill, knowledge and competency of workers and the entire
organisation.

6. HRD is an organizationally oriented process; that is a subsystem of a big system. As opposed

to HRM where there are separate roles to play, which makes it an independent function.

7. Human Resource Management is concerned with people only. Unlike Human Resource
Development, that focus on the development of the entire organisation.

8. HRM mainly focus on the management of human resources of the organisation whereas HRD
focus on the development of the human resources.

9. HRM works on employee performance enhancement and HRD works on development of

skills, knowledge and competency of employee.

10. HRM majorly handles the staffing functionality whereas HRD looks after development and
management of company resources.

11. HRM functions are:- compensation and benefits, recruiting and staffing, employee and labor
relations,occupational health and safety.

12. HRD functions are:- organization, development,performance management,training and

learning,and coaching.

13. HRM is independent and HRD has dependency on HRM

Summary:
1. HRD is a sub section of HRM, i.e. HRD is a section with the department of HRM.

2.HRM deals with all aspects of the human resources function while HRD only deals with the
development part.

3.HRM is concerned with recruitment, rewards among others while HRD is concerned with
employee skills development.

4.HRM functions are mostly formal while HRD functions can be informal like mentorships.