Human Resource Management (HRM) is a branch of management; that is concerned with making

best possible use of the enterprise’s human resources, by providing better working conditions, to
the employees. It involves those activities that arrange and coordinates the human resources of an
entity. Further, it aims at maintaining good relations at various levels of management.

On the other extreme, Human Resource Development (HRD) is a wing of HRM that keeps focusing
on the growth and development part of the organisation’s manpower. There are many people, to
whom HRM and HRD convey the same meaning, but this is not true.

Comparison Chart

BASIS FOR
HRM HRD
COMPARISON

Meaning Human Resource Management refers Human Resource Development means a

to the application of principles of continuous development function that
management to manage the people intends to improve the performance of
working in the organization. people working in the organization.

What is it? Management function. Subset of Human Resource Management.

Function Reactive Proactive

Objective To improve the performance of the To develop the skills, knowledge and
employees. competency of employees.

Process Routine Ongoing

Dependency Independent It is a subsystem.

Concerned with People only Development of the entire organization.

Definition of HRM

Human Resource Management, shortly known as HRM refers to a systematic branch of management
that is concerned with managing people at work so that they can give best results to the
organisation. It is the application of management principles to the people working in the
organisation. It aims at improving the performance and productivity of the organisation by finding
out the effectiveness of its human capital. Therefore, HRM is an art of placing the right person at the
right job, to ensure the best possible use of organisation’s manpower.
The process involves an array of activities that begins with the recruitment, selection, orientation, &
induction, training & development, performance appraisal, incentives & compensation, motivation,
maintaining workplace safety, health & welfare policies, managing relationship with the
organisation, managing change.

Definition of HRD

The term Human Resource Development or HRD refers to the development of people working in an
organisation. It is a part of HRM; that aims at improving skills, knowledge, competencies, attitude
and behaviour of employees of the organisation. The purpose of the HRD is to empower and
strengthen the abilities of the employees so that their performance will get better than before.

Human Resource Development involves providing such opportunities to the employees that will
prove beneficial in their all around development. Such opportunities include training &
development, career development, performance management, talent management, coaching &
mentoring, key employee identification, succession planning and so on. Nowadays, there are many
organisations work for the human resource development of employees from the day they join the
enterprise, and the process continues, until the end of their employment term.

Key Differences Between HRM and HRD

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

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.

HRM is a function of management. Conversely, HRD falls under the umbrella of HRM.

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.

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

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.

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.

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

HRM differs with HRD in a sense that HRM is associated with management of human resources while
HRD is related to the development of employees. Human Resource Management is a bigger concept
than Human Resource Development. The former encompasses a range of organisational activities
like planning, staffing, developing, monitoring, maintaining, managing relationship and evaluating
whereas the latter covers in itself the development part i.e. training, learning, career development,
talent management, performance appraisal, employee engagement and empowerment.
HRM vs HRD

Human resources are an essential section of any organization, company or institute. Recognizing this
importance, separate branches geared towards the development and the safeguarding of this sector
has evolved over time. HRD and HRM are two such subjects that cater to this growing need today.

What is HRD?

HRD or Human Resource Development is a sort of framework that allows and aids employees of an
organization to develop their organizational and personal skills as well as their knowledge and
abilities. There are a myriad of practices and opportunities involved in this field. Some of them can
be named as performance development and management, training, career development, mentoring,
coaching, succession planning, tuition assistance, key employee identification, etc.

The main goal of Human Resource Development is to create the most superior workforce possible so
that the organization has the means to fulfil their services towards their clientele better. Human
Resource Development can be formal or informal: formal being tutored in a classroom or an
organized effort while informal may be on the job training by a manager.

What is HRM?

HRM or Human Resource Management is an organizational function that has been thus introduced
with the aim of maximizing the performance of the employees. HRM focuses on policies and systems
and deals primarily in the manner in which people are managed within organizations. HRM deals
with a number of activities such as employee training, recruitment, performance appraisals as well
as duly rewarding the employees. In doing so, HRM must also make sure that organizational
practices are kept in line with the rules and regulations of governmental laws, thereby ensuring a
balance between industrial relations as well.

At the beginning of the human resources movement in the early 20th century, HRM was defined by
duties such as benefits and payroll administration and transactional work whereas today with
globalization, HRM has come to focus upon strategic initiatives such as talent management,
succession planning, industrial and employee relations, and inclusion and diversity.

In order to cater to the growing need of HRM, professionals, universities, higher educational
institutes all over the world have introduced various courses and degrees that will allow individuals
to gain the necessary knowledge needed for this field. In order to be qualified for a position in HRM,
one needs to possess educational qualifications befitting their position.

What is the difference between HRD and HRM?

HRD and HRM are both practices that deal with human resources of a company. Usually in large
organizations, there exists entire departments dedicated to HRM where trained professionals work
together solely towards the amelioration of this aspect, dealing with both HRD and HRM functions.
HRD is human resource development. HRM is human resource management.

• HRD deals with functions such as performance development and management, training, career
development, mentoring, coaching, succession planning, tuition assistance, key employee
identification, etc. HRM deals with functions such as employee training, recruitment, performance
appraisals as well as duly rewarding the employees.

• HRD is a part of HRM. HRM deals with all HR initiatives while HRD only deals with the development
factor.

• HRM functions are more formal than of HRD functions.