Difference between HRD and HRM

HRD and HRM although interconnected are two very distinct concepts. The difference between HRM (Human Resource Management) and HRD (Human Resource Development) lies in their functionality. HRM encompasses the part of the employee life cycle including the recruitment, compensation, performance management and employee relations. HRD on the other hand, focuses on the training and development part of the employee life cycle in an organization including enhancement of employee skills, knowledge, abilities fostering career development.

What is HRM and HRD?

HRM and HRD is what dictates the entire employee life cycle, right from the recruitment of an employee to their exit from the organization. Everything that falls between these two aspects is collectively governed by HRM and HRD.

HRM (Human resource management) focuses on:

• The administrative part of human resources and how to manage it.
• Initial employee life cycle, meaning the operational aspect of it.
• Involves recruitment, selection, compensation, and benefits and maintaining employee relationships.
• Ensuring that the right candidates have been hired at the workplace.

HRD (Human Resource Development) focuses on:

• Developing the skills and knowledge of current employees as well as future employees
• Training and development, career development
• Improving employee performance contributing to the organization’s success
• Supporting individual growth as well as organizational growth

What is HRM?

HRM (Human Resource Management) is the part of management in an organization where the human resources of the firm are put to the best use possible by providing them with the required resources. HRM focuses on the management and deliverance of administrative tasks, policies, and procedures. It involves tasks like recruitment, payroll compensation, benefits, compliance with labour laws. HRM aims to align organizational goals with employees to create a successful workforce and a productive environment.

What are the direct benefits of HRM in an organization?

• Higher chances of recruiting better candidates and fostering improved employee performance and productivity.
• More employee satisfaction leading to better retention rates due to the presence of clear communication channels.
• No compliance issues as there would be a dedicated focus on workplace safety and data privacy by the HRM team.
• Better performance by the organization due to effective human capital management

However, there are a few disadvantages associated with HRM, if not implemented the right way.

• Increased costs, as the tasks of recruiting and hiring employees is cost intensive.
• There can be major penalties and fines an organization could face in the event of non-compliance with legal requirements.
• The HR (Human Resource) must always be fair and just, otherwise it could create a negative impact among the workforces.
• A strong HR leader is necessary if HRM must be carried out effectively and without chaos.

What is HRD?

HRD (Human Resource Development) is the process of driving the skills and abilities of employees through various active training and development methods. The aim of HRD is to help employees to acquire skills and capabilities that would not just help them fit into distinct roles and expand their learning horizons and progress in their career paths but can also greatly contribute to the organization and be a big part of the company’s success. HRD ensures that the workforce has employees with the right skills working in the right roles.

What are the direct benefits of HRD in an organization?

1. Greater employee performance

The right training helps employees acquire the skills they lack, but need, to excel at their jobs as well as contribute or may be even transition to other roles, increasing their productivity and in turn increasing the organization’s productivity.

2. Highly engaged and motivated employees

When individuals are trained to have the right skills and knowledge, their confidence of performing better automatically increases, leading better engagement at work.

3. Higher retention rates

Only when you commit to helping an employee progress in their career or demonstrate interest in training them to be better will they be willing to give their all and stay and work for you as well

4. Aligned skills with organisational goals

Having a workforce with the right skills, knowledge and abilities is what you need if you want your organisation to grow and thrive. HRD programs are a big part of realising this aim.

Some of the disadvantages associated with HRD are:

• Higher costs can be involved as a lot of resources must be spent on training candidates to help them acquire the right skills.
• HRD is also a time-consuming affair for obvious reasons for both the employers and employees.
• There is no guarantee of how much employees learn and grasp from the training provided, limiting their effectiveness.

What is the difference between HRM and HRD?

In the article above you have now seen what the meaning of HRM is and HRD and their impact in an organization. While they are both a big part of an employee’s life cycle, there are distinct difference between the two. A comparison between HRM and HRD can help you understand better about these two especially essential functions.

Some of the key differences between HRD and HRM are-

Relationship between HRM (Human Resource Management) and HRD (Human Resource Development)

HRM and HRD are intertwined as they both are part of the human resources. Apart from the distinct difference between HRM and HRD, they have quite a few similarities as well.

Some of the important similarities the two presents are-

• HRM and HRD, both focus on the management and development of employees.
• They have the same aim of improving the productivity of employees.
• They both are involved in the management of employee relations and resolution of conflict.
• Properly implement policies and procedures ensuring compliance with laws and regulations
• Each entails the measurement and evaluation of employee performance.
• Each focus on the development of career paths and opportunities for employees.
• Each necessitates a strategic and long-term approach to workforce management.
• Each utilizes data and analytics for decision-making and process improvement.
• Each aligns HR practices with the organization’s overall goals and strategy.

Adding up

HRM and HRD differ certain ways pertaining to their end goals and functionality. HRM focuses on the management of human resources, while HRD emphasizes the training and development of skills and knowledge of employees.

Human Resource Management is a broader concept that includes activities such as recruitment, selection, staffing, development, monitoring, maintenance, relationship management, and evaluation. In contrast, Human Resource Development specifically pertains to the development aspect, which involves training, learning, career development, talent management, performance appraisal, employee engagement, and empowerment.

If you are an organization seeking HR services encompassing all the goodness and effectiveness of HRM and HRD collectively, then Alp Consulting would be your ideal HR partner. With 26 years of experience in the HR industry, we not only house HR experts who are adept at carrying out all HR functions efficiently but also understand all the nuances involved in Human Resources and provide unique HR solutions to clients relevant to their business.

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