Comparative Analysis on HRM and HRD

Let’s first understand the meaning of both. HRM stands for Human Resources Management and HRD stands for Human Resource Development. HRM focus on management of resources while HRD not only focuses on the development of skills but also on the personal employee development. In this article, we will understand the differences in detail.

HRM falls under management and is concerned with making best possible use of the firm’s human resources, such as by providing better working conditions, to its employees. HRM involves activities that arrange and coordinate the human resources of a company. It also aims at maintaining a good relationship at various management levels.

HRD is a wing of HRM that focuses on the growth and development of the organization’s human resources. A lot of people think that HRM and HRD are the same, but this is not true. Please take a look at the below table to understand the difference between the two:

Human Resource Management:

  • HRM is the application of principles of management to manage the people working in the organization.

  • It is a management function.

  • The function type is reactive.

  • Its objective is to improve the performance of employees.

  • Its process type is routine.

  • It is an independent process.

  • It’s concerned with people only.

Human Resource Development:

  • HRD is a continuous development function intending to improve the performance of people working in the organization.

  • It is a subset of Human Resource Management.

  • The function type is proactive.

  • Its objective is to develop the skills, knowledge, and competency of employees.

  • Its process type is ongoing.

  • It is a subsystem.

  • It’s concerned with the development of the entire organization.

Human Resource Management, known as HRM is a systematic branch of management concerned with managing people in an office so that they can give best results to the organization. Management principles are applied to the people working in the organization. Its goals are to improve the performance and productivity of the organization. Hence, HRM is an art of placing the right person at the right job, to get the best possible use of the organization’s manpower.

HRD is a part of HRM and refers to the development/improvement of people working in an organization. The main aims are improving skills, knowledge, competencies, attitude, and behavior of employees. The main purpose of the HRD is to empower and strengthen the abilities of the employees so that their performance keeps improving.