Difference Between HRM and HRD

Edited by Diffzy | Updated on: June 03, 2023

       

Difference Between HRM and HRD

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Introduction

Human resources is said to be the most valuable resource. Humankind is known as a human resource which is considered an invaluable asset in the present scenario. HRM and HRD are the two components required for the human resource to make it more effective and efficient. Both HRD and HRM are two interrelated yet different concepts. They are connected in terms of human resources since human resources are at the center of their focus. HRM and HRD are different in terms of human resources as one's only attention is the management of the human resource while on the other side, one's attention is towards the development of individuals. Now we will be discussing the point of their differences in their respective field and concerned topics.

HRM vs HRD

HRM is a management function that is fixated on the employees and the management of the people in an organization. While human resource development is a developmental function that is done to improve the skill set of the employees for better results. HRM is a broader aspect whereas HRD is just one of the aspects that lie in the broad concept of human resource management. HRM gives main attention to the people and their working in the organization while the human resource development's main concern is the development and enhancement of the working and non-working staff. There are many developmental programs initiated in this regard of development and growth but there are no such management programs in the HRM. Human resource management can be created in one by way of imparting necessary skills through education and training. Development is solely done through training and other related programs. Since people are changing and along with that change working life is also changing, so it's the top most requirement of HRD to tackle spontaneous changes in the behavior of individuals. HRD is a continuous function since an individual's progress is an ongoing aspect of their being, whereas HRM uses a comprehensive approach for the enlargement and development of the organization.

Difference between HRD and HRM in the tabular form

Parameters of comparison    HRM  HRD
MeaningHuman resource management implies the management of people or employees in an organization.Human resource development refers to the sharpening of the skills and inherited knowledge of the person working for the organization.
NatureHRM is of a management nature.HRD is a component of human resource management.
ObjectiveThe sole purpose of HRM is to enhance the working of employees.The main objective of HRD is to development of the skills and efficiency of the employees.
Point of focusThe main focus of the HRM is the “people”.The point of focus in HRD is the development of all the people in the organization as a single unit.
DependencyThe HRM is an independent function of management that deals with the people.The HRD on the other hand is one of the components of HRM which means it is dependent on the HRM.

What is HRM?

HRM stands for human resource management and it is the combination of two very vital terms i.e

 “Human resource + Management=HRM”.

We know what human resource is, it’s the human beings. The term management means to manage something. It can be the event, company, institutions, and homes that need to be managed. When the terms management is combined with the human resource it gives out the meaning of managing people. So, that’s how we have human resource management. HRM is a systematic profession that is of greater importance in the organization. Each person inherits some unique traits and when these individuals are combined to obtain an objective, they will surely create chaos. So, the management has this branch of managing human resources to prepare them for achieving bigger goals in life.

Management regards humans as a resource or we can say as a fuel to make the big corporate companies work. HRM deals with people and guides them by providing them with management and leadership skills to work efficiently. The primary objective of human resource management is to put the right person at the right job. In corporate industries, it’s very important to have the right person for the job to protect the resources, time, and efforts of the organization.  In present times, big organizations spend a good amount on the establishment of special departments usually known as HR departments for managing and controlling the affairs of the companies and organization. These departments have an HR manager who implements the management function given by “Henry Fayol”. As a consequence of their significant contribution to the management and oversight of the company's many operations, HR departments are usually considered an essential component of modern organizations. Implementing the management role outlined by Henry Fayol involves the HR manager's responsibility the responsibility of the HR manager and contributes to the successful operation of the business in question. An HR manager usually carries out the following activities

  • Recruitment
  • Selection
  • Onboarding of the selected employee
  • Motivating the employees
  • Maintaining day-to-day activities

These are a few activities that are performed by an HR manager in routine. Other than above mentioned duties of an HR manager following are some of the advantages of human resource management.

Enhancing the employee’s efficiency

The HRM professionals work hard to increase the performance of the employees. They take the hardships to make the employee better and the best fit for the organization. The concern is for all the employees equally regarding the enhancement of the performance of the employees.

Training and development

Training is a must for every employee before the commencement of the job. Human resource management ensures that the newly joined staff gets the proper training. Training helps in the growth of the employee and the employer. Both are on the same terms when it comes to training. 

Creation of relationship

The human resource department aims at creating better work-life relationships. As all the people work in the same environment, the working environment should be peaceful and all can work together without any issues.

Management of pay-scale

One of the most important tasks of human resource management is to maintain the remuneration and pay scale. All the salary and grievance-related issues are dealt with by human resource management. In every company whether large scale or small scale, the task is performed by an HRM manager who is a part of the human resource management. The team makes a detailed analysis for the sales and marketing teams to manage the labor rates.

What is HRD?

The HRD stands for human resource development. The HRD is one of the aspects of human resource management which is relatively connected with the development and growth of human resources. There's no doubt that human being is an important resource or in layman's language human resource is an asset to the company. It's a wonderful idea if we considered the development of the assets since they are the asset. Human resources may be made into a useful asset with the right direction and training. This is the main reason that human resource development came into existence with the growing popularity and recognition of human assets. Human resource development is concerned with the development of the skills and knowledge of the employees. The organization and the employees both are in the gaining position in human resource development as the organizational objectives are achieved along with the employee's personal growth and development.

It can be done before the commencement of the job or even after starting the job. We have got two training methods for this purpose which are explained in brief as follows:

  • On-the-job training
  • Off-the-job training

On-the-job training

This method of training says that the employees should be given proper training while they are on their job.  Training is given at the office hours. The employees get familiar with the people they have to work with and the job that they have to perform. There are certain advantages of this method of training such as

  • Employees get familiar with the people and the working environment
  • Employees are observed properly while on the training so there are no chances of them slacking out.
  • Job rotation is an eminent method to improve the employee's knowledge, skill, and efficiency to do the work.

Off-the-job training

This is the training method in which employees are given training after working hours. There are many ways in which employees can be imparted with the training such as

  • Seminars and lectures after the working hours
  • Educational tours can be arranged
  • Sometimes an identical work situation can be created to give the employees realistic work experience.

Human resource development is much more than just enhancing the skills and abilities of the employees. Some big organizations have started special HRD programs in which employees are given wider experience to increase their horizons. The mental health of employees is critical when it comes to their growth and professional success. People get engaged in such activities and chores so that they can put effort into themselves to improve their mental health. It is agreed upon that if people's mental health is excellent, they can focus on their tasks with higher effectiveness and efficiency.

HRD is a very crucial aspect and now we will discuss its importance in the present environment which is as follows

  • The changing dynamics of the present environment require brilliant human assets that are skilled to achieve any given objectives within a specific period.
  • Employees with enormous potential are given opportunities to sharpen their abilities and enhance themselves in their respective fields of work.
  • Proper human resource development helps the human resource not only find their true potential but also help in shaping their careers. Development program fills up employees with zeal to do something and helps them with abundant resources to work on.
  • One of the important aspects is that HRD-initiated programs help in the creation of talent in the employees. Through proper programs and opportunities, human resources can be created and molded in the desired manner according to the requirements of the organization.

Difference between HRM and HRD in points

  • Human resource management is a broader concept in contrast to HRD since HRM includes components such as planning, selection, recruitment, and employee relations in an organization.
  • While human resource development is merely a component of HRM, it primarily focuses on the training and development of human resources to improve their working competence by expanding their expertise as well as their skills.
  • Human resource management focuses on the management part of the human resource while HRD is concerned with the development part of the employees.
  • The HRM ensures that the employee's requirements must be met appropriately and that they are not having any issues at work. HRD, on the other hand, makes reassure that workers have improved working circumstances and a pleasant workplace.
  • HRD support many developmental programs and encourage activities and task for the growth purpose of employees whilst human resource management does not initiate such programs.
  • HRD not only prepares individuals for their current ventures despite that it helps them improve their talents for future endeavors. Human resource management, on the other hand, oversees their working environments.
  • Human resource management implies management principles although human resource development is a continuous process done for the betterment of the entire organization.

Conclusion

In light of everything that has been discussed so far, we can conclude that HRM and HRD are two relevant concepts of management. Human resource management comes under the umbrella of human resource management. Management is a diverse function that has many functions and characteristics for the management of an organization. While taking into all the considerations that have been scripted above regarding the difference between HRD and Human resources management it's important to study the two as an individual topic for a clear understanding of the concept.

Correspondingly, both are important in the human resource industry and strive towards an objective of profit maximization without deploying resources. Subsequently, as a result, if one desires to operate a firm successfully in the long run, one needs to be well-versed in both principles.


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"Difference Between HRM and HRD." Diffzy.com, 2024. Tue. 01 Oct. 2024. <https://www.diffzy.com/article/difference-between-hrm-and-hrd>.



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