Difference between HRM and HRD

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

The full form of HRM is Human Human Resource
Resource Management. It refers Development. It refers to
Definition and to how the principles of continuous development
full form management can be applied to functions that are
manage the employees working implemented for improving
in an organization effectively. the performance of those
working in an organization.

HRD is a sub-function of
Nature HRM is a management function.
HRM.

The functions of HRD are

The functions of HRM are
proactive and have to be
reactive and are usually applied
Function applied consistently to
to gaining holistic organizational
enhance the productivity of
goals.
employees.

HRD goals are usually

connected with skill
The objective of HRM is related
development, knowledge
Goal to improving the overall
enhancement, and
performance of employees.
increasing the competency
of employees.

Most HRM processes are routine

HRD processes are ongoing
Process and have to be carried out as
and not occasional.
and when the need arises.

Dependency HRM is an independent entity in HRD is a subsystem of HRM

itself. It comprises of different and draws many functions,
 Basis of
HRM HRD
Differentiation

sections inclusive of recruitment

and retention, HRD, attributes, and processes
compensation, performance, from HRM.
appraisal management, etc.

HRD is concerned with the

development of all aspects
HRM deals with and has concerns
Concerned and people within an
for people only. It handles
with organization and manages
recruitment, rewards, etc.
its skill development
processes.

HRD functions may be

HRM functions are generally
informal as in mentorships,
Levels of formal and are applied via
employees receive
formality classroom/laboratory training,
coaching from superiors,
etc.
usually 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.