Human Resource Management

MODULE I
Introduction: Meaning, Definition, Nature &
Scope of Human Resource Management, HR
Functions, Qualities of HR Manager, External
& Internal Forces of HR Environment, Concept
& Importance of HR Planning, Concept of
Human Resource Development and Difference
between HRM & HRD.
 MODULE II
Acquiring & Training Human Resource:
Meaning, Process & Sources of Recruitment,
Meaning, Definition & Process of Selection,
Barriers to Effective Selection, Concept of
Placement & Induction, Meaning, Nature,
Need, Importance and Types of Training,
Methods & Techniques of Training, Principles
of Effective Training, Meaning, Nature and
Objectives of Compensation Management,
Components of Remuneration.
 MODULE III
Developing & Maintaining Human Resource:
Meaning, Concept, Objectives & Process of
Executive Development, Methods &
Techniques of Effective Executive
Development, Meaning, Objectives &
Methods of Performance Appraisal, Barriers to
Performance Appraisal, Fundamental Concept
of Potential Appraisal, Career Planning &
Counseling.
 MODULE I
Resources:
Resources are the means for getting results or for
fulfilling objectives. Without means it is
impossible to reach set goals.
(A) Material Resources :1) Money-Cash and
credit, 2) Land and building, 3) Powerwater, wind,
electricity, electronic, 4) Raw material, 5)
Machinery, Tools, Equipments etc
(B)Human Resources: Persons viz Management,
Middle management, other workers etc.
 Human Resources
Human resources of an organization are
composed of all human beings working in that
organization.
 HUMAN RESOURCE MANAGEMENT

INTRODUCTION

ORGANIZATIONS are made up of people & function through

people. Without people organizations cannot exist. The
resources of men, money, materials & machinery are
collected, coordinate & utilized through people. Therefore,
people are the most significant resource of any
organization.
 HRM- Meaning

• Simply, HRM is a management function that helps

managers recruit, select, train, motivate &
maintain people for an organization. Obviously,
HRM is concerned with people’s dimension in
organization.
• It is the process of binding people & organizations
together so that the objective of each are
achieved.
• Human resource management is a process that
consists of four functions acquiring, developing,
motivating and retaining human resources.
 Definition

Human resource management is “The planning,

organizing, directing and controlling of the
procurement, development, compensation,
integration and maintenance of people to the
end so that individual, organizational, and
societal goals are accomplished”.
Edwin B. Flippo
 Nature/Features of HRM

-People Oriented
- Continuous Process
- Future Oriented
- Integrating Mechanism
- Action Oriented
- Development Oriented
- Comprehensive function
- Challenging Function
-People Oriented: - It is all about people at work, both as
individuals and groups. It tries to put people on assigned
jobs in order to produce good results.
- Continuous Process: - Human resource management is not a
“one shot” function. It requires a constant alertness and
awareness of human relations and their importance in
every day operation.
- Future Oriented: - It helps an organization meet its goals in
the future by providing for competent and well motivated
employees.
- Integrating Mechanism: - It tries to build and maintain
cordial relations between people working at various levels
in the organization.
- Action Oriented: - Human resource management focuses
attention on action, rather than on record keeping or rules.
- Development Oriented: - The main intention of
human resource management to develop the full
potential of employees.
- Comprehensive function: - It is concerned with all
types of organization and all categories of
personnel from top to bottom of the
organization.
- Challenging Function: - managing HR is a
challenging job due to dynamic nature of people.
People have sentiments & emotions so they can
not be treated like machines.
 Objectives of HRM
• To help the organization attain its goals by providing well

trained & well motivated employees.

• To employ the skills & knowledge of employees efficiently &

effectively, i.e, to utilize HR effectively.

• To enhance job satisfaction of employees by encouraging &

assisting every employee to realize his/her full potential.

• To bring about maximum individual development of

employees by providing opportunities for training &

development.
• To maintain high morale & good human relations within
the organization.

• To establish & maintain productive, self respecting &

internally satisfying working relationships among all
members of the organization.

• To secure the integration of all individuals & groups with

the organization by reconciling individual goals with those
of an organization.
 EVOLUTION OF THE CONCEPT OF
HUMAN RESOURCE MANAGEMENT

• The commodity concept

• The Factor of Production concept
• The Paternalistic Concept / Paternalism
• The Humanitarian concept
• The Human Resources concept
• The Emerging concept
• The commodity concept:
• Labor was regarded as a commodity to be
bought and sold. Wages were based on
demand and supply. Government did very
little to protect workers.
• The Factor of Production concept:
• Labor is like any other factor of production,
viz., money materials land etc. Workers are
like machine tools.
• The Paternalistic Concept / Paternalism
• Management must assume a fatherly and
protective attitude towards employees.
Paternalism does not mean merely providing
benefits but it means satisfying various needs
of the employees as parents meet the
requirements of the children.
 The Humanitarian concept:
• Under the paternalistic approach, the employer was
providing benefits to employees as a favor. The
humanitarian approach is based on the belief that
employees had certain inalienable rights as human
beings & it was the duty of the employer to protect
these rights.

• To improve productivity, physical, social and

psychological needs of workers must be met.
 The Human Resources concept:

• Employees are the most valuable assets of an

organization. Efforts were made to integrate
employee with organization so that
organizational goals & employees aspirations
could be achieved simultaneously.
 The Emerging concept

Employees should be accepted as partners in

the progress of a company. They should have
a feeling that the organization is their own. To
this end managers must offer better quality of
working life and offer opportunities to people
to exploit their potential fully.
 Scope of HRM:
The Indian Institute of Personnel Management
has specified the scope of HRM as-

1. Personnel aspect

2. Welfare aspect

3. Industrial relation aspect

 Scope of HRM:
1. Personnel aspect: - This is concerned with manpower
planning, recruitment, selection, placement, transfer,
promotion, training and development, layoff and
retrenchment, remuneration, incentives, productivity
etc.
2. Welfare aspect: - It deals with working conditions and
amenities such as canteens, crèches, rest and lunch
room, housing, transport, medical assistances,
education, health and safety, recreation facilities etc.
3. Industrial relation aspect: - This is concerned with
organization relations with the employees as a group
and includes union-management relations, joint
consultation, collective bargaining and negotiating,
grievance and disciplinary procedures, settlement of
disputes etc.
FUNCTIONS OF HRM
 QUALIITES OF HR MANAGER

• Fairness & firmness

• Tact & resourcefulness
• Sympathy & consideration
• Knowledge of labor & other term
• Broad social outlook
• Others
• Leader
 QUALIITES OF HR MANAGER
• Fairness & firmness: he/she should be fair in matters
of promotions, demotions, transfers etc & be firm in
enforcing discipline.
• Tact & resourcefulness: HR manager must be tactful in
dealing with different situations & must be resourceful
too.
• Sympathy & consideration: the HR manager must be
guided by sympathetic attitude towards employee
demands. True, several of the demands are
unreasonable, but patient listening, open mind, &
concern for employee’s welfare make unmanageable
workers relent. Similarly, intentions & actions of the HR
manager must be tempered with consideration for
others.
 QUALIITES OF HR MANAGER
• Knowledge of labor & other term: the HR manager must
possess a sound knowledge of constitution & other acts
that influence labor interests. He must be aware of the
government’s policy towards labor & the general economic
conditions prevailing at a given time.
• Broad social outlook: it is desirable that HR manager has a
social outlook & contributes towards the betterment of
quality of life of the employees & those who live around &
beyond the company.
• Others: the HR manager must be competent to perform
activities relating to personnel better than his/her
subordinates.
• Leader. Managers have to be leaders.The team needs to
know what is expected, what the goals of the organization
are and how their performance relates to achieving those
goals. Simply telling people what to do is not leadership.
 HUMAN RESOURCE DEVELOPMENT
• Concept of HRD
• HRD is a process, which is concerned with
developing the skills, knowledge &
competencies of people. It aims at helping
people to acquire competence & contributes
to achieve their personal organizational goals.
So, in HRD, there is an emphasis on improving
existing & potential skills of an individual & on
attainment of organizational & individual
goals.
 Definitions
• “HRD is developmental oriented planned effort in
the personal area which is basically concerned
with the development of human resource in the
organization, improving the existing capabilities &
acquiring new capability for achievement of
corporate & individual goals”.
• HRD means safeguarding, maintaining, improving
existing skills as well as bringing into light the
potential skills of HR so as to increase their
productivity for ultimate well being of
organization as well as their own.
 OBJECTIVES
• To develop the capabilities & competencies of human
resource in relation to the present job.
• To develop the capabilities & competencies of human
resource in relation to their expected future roles.
• To build up competencies at individual, interpersonal,
group & organizational level to meet the individual &
organizational goals.
• To help the development of people & their maximum
utilization in the interest of society & nation.
• To help employees to plan their career.
• To increase organization effectiveness i.e, higher
productivity, lower cost, more profit, better organizational
image etc.
• To ensure the availability of competent & committed
people to occupy key positions at higher level.
 Difference between-HRM and HRD
1. HRM is concerned with managing people at work at all
levels in the organization. It is a routine, maintenance
oriented and administrative function. HRD is a continuous
on-going development function which aims at improving
human resources.
2. HRM is concerned with bringing people and their
organization together to achieve the goal of them. HRD is
concerned with the development of the competencies,
motivation, dynamics and effectiveness at the people in the
organization.
3. HRM is considered as a micro-concept as it concentrates on
individuals. Where as HRD is both a micro and macro
concept.
4. HRM is a subset of the entire management processes of an
organization. HRD is a subset of HRM.
5. Scope of HRM is wider. Scope of HRD as compared to HRM
is narrower.
 Difference between-HRM and HRD
6. HRM emphasizes that employees, their
abilities and their attitudes constitute an
important organizational resource that should
be used effectively and efficiently to achieve
organizational as well as employees' goals.
HRD emphasizes mainly on training and
development of employees.
7. HRM takes decisions on HRD plans. HRD thus
depends on the decisions of HRM.
 External & Internal Forces of HR
Environment
• External (HRM has no control):
• Political-legal
• Economic
• Technological
• Cultural (national/external)
• Internal (HRM can influence):
• Strategy, Task and Leadership
• Unions
• Organizational culture

Knowledge about the environment helps HR managers to

become proactive and not remain reactive to environment.
 Political-Legal :Include –
• Law making body (legislature, parliament) to enact labor acts;
• Law implementing body (government); and
• A watchdog (judiciary) to ensure that other two work within the
confines of the Constitution and in public interest.

laws: Examples: conditions of employment; working conditions; job

security; compensation; health and safety, etc.

All HP activities are affected by one or other by them. To be specific,

HR planning, recruitment and selection, placement, training and
development, remuneration, employee relations, etc. are
conditioned by Constitutional provisions.
 2.Suppliers

Who provides human resources (e.g.

universities, vocational training institutes,
colleges, consulting firms, competitors). Type
of employees depend on the source.
 3.Competitors

• Competition plays a significant role in some

of the HR functions & activities.
• As the no. of organizations competing for
human resources increases, so does the
importance of staffing function & its appraisal
& compensation activities.
• If several companies make job offers to one
individual, the organization with more
attractive terms and conditions will win .
 4.Customers

• Seek high-quality products at reasonable

prices – responsibility of every employee.
• HR should ensure that their work is of the
highest standard.
• Sales are often affected by product quality
which is directly related to the skills &
qualification of the organization’s employees.
 5. Economic growth

Quality of labour and therefore employee

productivity depends on education, health,
and nutrition available to citizens.
 6. Technological
• With the advent of technology, jobs tend to become more
intellectual or upgraded.
• Jobs handled by illiterate and unskilled worker now
requires the services of an educated & skilled worker.
• New technology dislocates workers unless they become
well-equipped (trained) to work on new machines.
• This makes it obligatory on the part of HRM to train
workers.
• Jobs become more challenging and rewarding – (increased
productivity, reduced prices and increased real wages)for
those employees who pick up & acquaint themselves with
new technology.
• Reduces requirements for much of human interactions in
organizations.
 7. Cultural
Behavior derives from invisible attributes such as values,
norms, beliefs, customs, etc. which are acquired by an
individual as a member of a society.
1. Culture creates the type of people who become members
of an organization (e.g. Sri Lankans, Indians, Japanese, etc.)
2. Attitude of workers towards work is a result of their
cultural background (likes, dislikes, apathy towards work).
3. Work ethics, achievement needs and effort-reward
expectation, which determine individual behavior, are
result of culture. Strong ethics ensures motivated
staff, hard work and commitment to work.
4. Sometimes culture makes people confine themselves to
certain occupations and regions (e.g. caste and industries;
religions and industries).
 1. Strategy, Task and Leadership
• Strategy: the direction in which an
organization moves. e.g. Firms believing long
term success (rather than short term profits)
invest more on HR (training and development,
safety, security, welfare, and harmonious
industrial relations).
 1. Strategy, Task and Leadership
Task: a work that an employee is expected to
do. Several tasks constitute a job.
Task (skills required, task significance,
autonomy, and feedback of results) have
implications on employee motivation and
satisfaction. Task/Job affects hiring, and then
motivation and satisfaction of employees.
 1. Strategy, Task and Leadership
• Leadership: a leader is one who matters in any
functional area of business.
• Leader must organize the distinctive skills, experiences,
personalities, and motives of employees; facilitate
interaction within work groups; provide direction,
encouragement, and authority to evoke desired
behavior; choose right people and motivate them;
catalyzing the learning process among followers; as
well as creating the environment that contributes to
improving performance.
• The experience and style of a leader will influence
which HRM programs are selected, implemented, and
effective.
 2. Unions
A trade union is an association of workers
formed to protect their own individual
interests.
All HR activities – recruitment, selection,
training, compensation, IR and separation –
are carried out in consultation with union
leaders.
 3. Organizational Culture
Every organization has its own culture. It is guided by core
values, norms, beliefs, etc. HR managers have to
identify the culture and strive to foster those values.
(e.g. “get the best people and set them free” –
spirit of TATA)
Characteristics of org. culture – examples
1. short term vs long term
2. Proactive vs reactive
3. Individualism vs groupism
4. Change vs stability
5. Personal goals vs organizational goals etc.
 HUMAN RESOURCE PLANNING
• The actual HRM process begins with the estimation of
the number and the type of people needed during the
coming period.
• Human Resource Planning (HRP) basically ensures the
availability of the right resources in the right place to
match the future organizational needs.
• In simple words, HRP is understood as the process of
forecasting an organizations’ future demand for and
supply of the right type of people in the right number.
• It is a subsystem in the total organizational planning
which is facilitates the realization of organizations’
objectives by providing the right type and the right
number of personnel.
• Human resource planning is variously called manpower
planning, personnel planning or employment planning.
 Objectives of HRP-

• Anticipating from past records:- (i)

Resignations (ii)Simple discharge (iii)Dismissals
(iv) Retirement.
 Objectives
1. Ensure adequate supply of manpower as and
when required.
2. Ensure proper use of existing human resources in
the organisation.
3.Forecast future requirements of human resources
with different levels of skills.
4.Assess surplus or shortage, if any, of human
resources available over a specified period of
time.
5. Anticipate the impact of technology on jobs and
requirements for human resources.
6.Control the human resources already deployed
in the organization.
7.Provide lead time available to select and train
the required additional human resource over
a specified time period.
8. Help to meet the needs of expansion and
diversification program.
9. Determining training requirements for
management and organization development.
 IMPORTANCE
1. Determine present and future personnel needs.
2. Enables an organization to cope with changes in
competitive forces, markets, technology, products
etc.
3. Ensures optimum use of available human
resources.
4. It is foundation for personnel functions.
5. It avoids unnecessary dismissals.
6. It is a process of getting the right number of
qualified people into right job at right time.
7. Useful for managerial succession.
8. It is evaluation tools and helps to reduce labor
cost.
 Factors affecting HRP
• HRP is influenced by many factors. These are:

a. Type of organisation: The type of organisation determines the production process and
number and type of staff needed. Manufacturing organisations have a more complex
structure compared to service organisation. It goes without saying that the HRP differs
according to the nature of the organisation.

b. Strategy of organisation: The human resource needs of an organisation depend on the

strategic plan adopted by it. For example, growth of the business calls for hiring of additional
labour, while mergers will need a plan for layoffs. Or proactive or reactive.

c. Environmental Uncertainties: Organisations operate under changing political, social and

economic conditions. The environmental changes demand carefully formulated HR policies.
The HR manager has to evolve suitable mechanism to deal with uncertainties through career
development, succession planning, retirement schemes etc.
• d. Time period: Human Resource Planning also depend on the time
period, and according short-term or long-term plans are adopted. The
time span is based on the degree of environmental uncertainties. For
example, an organisation operating in an unstable environment must
adopt short-term plans, while an organisation operating under fairly
environment can adopt long-term plans.

e. Information: The type and quality of information used in making

forecast is an important factor influencing Human Resource Planning. In
the absence of a well-developed information mechanism Human Resource
Planning is just impossible. Accurate and timely human resource
information system helps in getting better quality personnel.
f. Nature of jobs being filled: Job vacancies are very common and arise
due to promotions, retirements, termination of services, growth,
expansion, etc. HRP is required to ensure that suitable candidates are
recruited.
 JOB ANALYSIS
• A procedure through which information about
job tasks and job requirements are obtained.
• Job analysis is the procedure for determining
the duties and skill requirements of a job and
the kind of person who should be hired for it.
• Job analysis is a systematic procedure for
studying jobs to determine their various
elements and requirements.
Why is Job Analysis important - Without
sufficient knowledge of what employees do,
organizations cannot develop other human
resource practices and procedures.

The process of job analysis results in two sets of

data:
i) Job description and
ii) Job specification.
• Organizations consist of positions that have to be
staffed.
• Job analysis is the procedure through which you
determine the duties of these positions and the
characteristics of the people who should be hired
for them .
• The analysis produces information on job
requirements, which is then used for developing
job descriptions (what the job entails) and job
specifications (what kind of people to hire for the
job).
 Job Description:
• A job description is a written statement of what
the job holder does, how it is done, under what
conditions it is done & why it is done.
• It describes what the job is all about, throwing
light on job content, environment & conditions of
employment.
• The main purpose of writing a job description is
to differentiate the job from other jobs & state its
outer limits.
 Job Specification:
• Job specification summarizes the human
characteristics needed for satisfactory job
completion. It tries to describe the key
qualifications someone needs to perform the job
successfully.
• It spells out the important attributes of a person
in terms of education, experience, skills,
knowledge & abilities to perform a particular job.
• This helps the organization to determine what
kind of persons are needed to take up a job.
 Job Description Vs. Job Specification

• Job Description - written narrative describing

activities performed on a job; includes
information about equipment used and working
conditions under which job is performed.

• Job Specification - outlines specific skills,

knowledge, abilities, physical and personal
characteristics necessary to perform a job –
(Strength, patience, risk-taker etc)
 JOB ANALYSIS
JOB DESCRIPTION JOB SPECIFICATION

• job title • education

• Location • Excperience
• Job summary • training
• Duties • Physical effort
• Machines, tools & equipment • Emotional characteristics
• Materials used • Communication skills
• Supervision given or recieved • Behaviour, attitude
• Working condiotns • Unsual sensory demands such
• Hazards as sight, smell, hearing etc.
 Methods of Collecting Job Analysis
Data
• Interview
• Observation
• Experiment/Job Performace
• Questionnaire method
• Critical incidents
 USES OF JOB ANALYSIS

JOB ANALYSIS

JOB SPECIFICATION JOB DESCRIPTION

Recruitment PLacement & Counsellin Employee Performance Job

HRP & selection Orientation
T&D g Safety appraisal evaluation
 PROCESS OF JOB ANALYSIS

Selection of
collection Preparation
representat Preparation
Organization of Job Job
ive of Job
al Analysis analysis Specification
positions to Description
data
be analyzed
 Job Design
• Job design is the process of Work arrangement
(or rearrangement) aimed at reducing or
overcoming job dissatisfaction and employee
hostility arising from repetitive and mechanistic
tasks.
• Through job design, organizations try to raise
productivity levels by offering non-monetary
rewards such as greater satisfaction from a
sense of personal achievement in meeting the
increased challenge and responsibility of one's
work.
• JOB DESIGN is the process by which a job may
be made interesting ,giving more freedom and
autonomy to employee
• On the basis of job analysis many redesigning
techniques are adopted to make a job
meaningful and interesting and also flexible.
 Job Design
• In a very simple sense, job design means the
ways that decision-makers choose to organize
work responsibilities, duties, activities, and
tasks.
• Job Redesign thus involves changing work
responsibilities, duties, activities, and tasks.
• Although job analysis, as just described, is
important for an understanding of existing
jobs, organizations also must plan for new
jobs and periodically consider whether they
should revise existing jobs.
• When an organization is trying to improve quality or
efficiency, a review of work units and processes may
require a fresh look at how jobs are designed.
• These situations call for job design.
• To design jobs effectively, a person must thoroughly
understand the job itself (through job analysis) and its
place in the larger work unit's work flow process
(through work flow analysis). Having a detailed
knowledge of the tasks performed in the work unit and
in the job, a manager then has many alternative ways
to design a job.
• Job analysis helps to develop job design.
 Techniques of Job Design
• Job enlargement,
• Job enrichment,
• Job rotation, and
• Job simplification are the various techniques
used in a job design exercise.
 JOB ROTATION
A job design technique in which employees are moved
between two or more jobs in a planned manner. The
objective is to expose the employees to different
experiences and wider variety of skills to enhance job
satisfaction and to cross-train them.
Job rotation implies systematic movement of
employees from one job to the other. Job remains
unchanged but employees performing them shift from
one job to the other.
With job rotation, an employee is given an opportunity
to perform different jobs, which enriches his skills,
experience and ability to perform different jobs.
It is a well-planned practice to reduce the
boredom of doing same type of job everyday
and explore the hidden potential of an
employee.
 JOB SIMPLIFICATION
• Breaking the job into easier sub-parts with the
intention to enhance the individual’s
productivity by minimizing the physical and
mental efforts required to perform a complex
job.
 JOB ENLARGEMENT
• Job Enlargement, a job design technique in
which the number of tasks associated with a
job is increased (and appropriate training
provided) to add greater variety to activities,
thus reducing monotony.

Job enlargement is considered a horizontal

restructuring method in that the job is
enlarged by adding related tasks.
 Job Enrichment

Job enrichment adds new sources of job

satisfaction by increasing the level of
responsibility of the employee in organization.
While job enlargement is considered as
horizontal restructuring method, job enrichment
is considered as vertical restructuring method
of moral excellence of giving the employee
additional authority, autonomy, and control over
the way the job is accomplished. Also called job
enhancement or vertical job expansion.
 Concept of HRD
• Most of the organization have started HRD
department & also appointed HRD managers. It
shows that organizations have realized the
importance of HRD.
• The concept of HRD has been formally
introduced by Prof. Leonard Nadler in 1968. Prof.
Leonard Nadler introduced this concept in a
conference organized by American Society for T &
D.
• In India, Larson & Turbo Ltd., a private sector
company has introduced this concept in 1975 in
their organization. In the public sector, BHEL has
introduced this concept in 1980.
• HRD is a process, which is concerned with
developing the skills, knowledge &
competencies of people. It aims at helping
people to acquire competence & contributes
to achieve their personal organizational goals.
• So, in HRD, there is an emphasis on improving
existing & potential skills of an individual & on
attainment of organizational & individual
goals.
 Definitions
• “HRD is a series of organized activities,
conducted within a specified time & designed
to produce behavioral change”.
• “HRD is developmental oriented planned
effort in the personal area which is basically
concerned with the development of human
resource in the organization, improving the
existing capabilities & acquiring new capability
for achievement of corporate & individual
goals”.
 Features
Systematic

Planned

Improving quality of
working life

At Interpersonal, Development of Interdisciplinary

organizational, social competencies
level
 NEED or Importance
Changing Job Requirements

Need for multi-skilled workers

Technological advancement

Organizational complexity/Change

Handling industrial disputes

 OBJECTIVES
• To develop the capabilities & competencies of human resource in
relation to the present job.
• To develop the capabilities & competencies of human resource in
relation to their expected future roles.
• To build up competencies at individual, interpersonal, group &
organizational level to meet the individual & organizational goals.
• To help the development of people & their maximum utilization in
the interest of society & nation.
• To help employees to plan their career.
• To develop team spirit & interpersonal relation among the
employees in organization.
• To motivate employees for their contribution by suitable rewards.
• To increase organizational effectiveness i.e, higher productivity,
lower cost, more profit, better organizational image etc.
• To ensure the availability of competent & committed people to
occupy key positions at higher level.
 Difference between-HRM and HRD
1. HRM is concerned with managing people at work at all
levels in the organization. It is a routine, maintenance
oriented and administrative function.
HRD is a continuous on-going development function
which aims at improving human resources.
2. HRM is concerned with bringing people and their
organization together to achieve the goal of them.
HRD is concerned with the development of the
competencies, motivation, dynamics and effectiveness at
the people in the organization.
3. HRM is considered as a micro-concept as it concentrates on
individuals.
Where as HRD is both a micro and macro concept.
 Difference between-HRM and HRD
4. HRM is a subset of the entire management processes
of an organization.
HRD is a subset of HRM.
5. Scope of HRM is wider.
Scope of HRD as compared to HRM is narrower.
6. HRM emphasizes that employees, their abilities and
their attitudes constitute an important organizational
resource that should be used effectively and efficiently
to achieve organizational as well as employees' goals.
HRD emphasizes mainly on training and development
of employees.
 Difference between-HRM and HRD
7. HRM takes decisions on HRD plans.
HRD thus depends on the decisions of HRM.
8. HRM takes care of all the human needs and tries
to satisfy these needs so that the employees are
motivated from all the angles to contribute their
best to achieve organizational goals.
HRD focuses on upgrading the skills and
competencies of the employees in order to
improve the performance of the employees on
the job.