HRM vs HRD: Difference between HRM and HRD

HRM is a management domain focusing on the optimal usage of human resources, such as better working environments for all employees. It includes all the activities that allow coordination and arrangement of human resources in every sphere. Stable relations are also maintained with all employees since it is one of the main objectives of HRM.

On the other hand, HRD can be regarded as a wing of HRM that enhances and upgrades the company workforce. Although very similar definitions, there are stark differences between HRM and HRD. People must have a broader perspective of HRD and HRD to understand the two and their differences.

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What is Human Resource Management?

Human Resource Management can be identified as a management branch which focuses on the relationship and employee management to produce successful results for the whole organisation. Several management principles enable orderly, efficient work culture to increase productivity and benefit enterprises. In short, HRM can be recognised as the art of conducting the right human resources to allow the maximum usage of an organisation’s potential. 

The HRM process supports various recruitment procedures, selection, induction, training activities and skill developments. HRM also focuses on maintaining good relations and different management sections across the organisation.

What is Human Resource Development?

Human Resource Development is the integrated usage of training and career developments to enhance individual and group performance rates to benefit an organisation. Competencies are developed to perform better and arrange future goals through learning activities. HRD centres on matching the requirements of the individual to the organisation. 

The primary role of HRD is to motivate and develop employees to work according to the needs of the enterprise, following HR created programs and policies.

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Differences between HRM and HRD:

The biggest distinction between HRM and HRD is HRM only deals with people. Contrarily, HRD deals with developing and enhancing the whole organisation in almost all aspects. 

Here’s a tabular format to differentiate between HRM and HRD:

Human Resource Management Human Resource Development
HRM deals with management principles and mainly emphasises the employees. HRD focuses on an ongoing developmental purpose of the entire organisation in a formal pattern.
It is a reactant function dealing with management. It stands for proactive functions, which act as a subset of HRM.
They focus on the improvement of the employees from all divisions. They are applied for organisational motives in a holistic form.
A usual process of administration. A continuous process.
People-centric form of management. Focuses on the organisation as a whole.
Anchor different roles to play, making it independent. An organisationally directed process; subsystem of a whole institution.

What are the benefits of HRM?

It is difficult to differentiate between HRM and HRD when choosing a better career option. Here is a list of advantages of studying HR Management:

  • Improvement in employee turnover: With the help of an HR professional, the ideal candidates are selected, helping the organisation save up on its costs. Proper compensation and benefits are also outlined to pay attention to their requirements. HR professionals mainly allow employee turnover at a lower rate, benefiting the organisation. 
  • Conflict Resolutions: A workplace is, without hesitance, an area consisting of different personalities and opinions. A good HR course will teach you to deal with conflict management and how to resolve such situations. Both parties should be equally assisted, and parting with both sides is undesirable for an HR professional.
  • Employee Satisfaction: This is one of the significant roles performed by an HR professional. Organising surveys, focus groups and interview strategies showcase whether the employees are suitable for the organisation. HR professionals are also responsible for finding underlying causes of dissatisfaction.
  • Improvement of employee performance: Performance management systems are organised by Human Resource Management teams. HRs scrutinise and hire the best, leading to a better work environment through annual performance reviews.
  • Training and Development: HR departments focus on assessments for employees to be well-equipped with the skills and additional qualifications, reducing the need to seek individuals for minor functions. 
  • Budget Control: Annual pay of organisation members is looked upon by the HR team. They also deal with the competitive and realistic wages to focus on labour markets and sale analysis, fully based on job functions.

    Hence, HRM is a required and most demanded profession by almost every organisation in every country globally.

What are the advantages of HRD?

Certain benefits are available if you decide to build a career in human resource development. The following advantages are as follows:-

  • Employees with enhanced skills: Employees need to have a broad set of skills that define the organisation’s potential. Most employees must possess soft skills and hard skills that are checked on by the HRD department frequently.
  • Supporter of business goals: Alignment of human resources order can bring in development to broader business motives. The HRD team must organise crucial training and development programs for every employee to receive vocational skills and reach their business goals. 
  • Increase in workforce diversity: A strong HRD department expands opportunities for the institution’s employees. Training in terms of behaviour and attitude provided by the HRD team brings a diverse workplace and better organisation functioning.
  • Easier management of employees: Staff supervision attracts greater coordination and reduces pressure on all. All should take adequate pressure to improve their time-management and functional skills towards planned goals.

Hence, HRD focuses entirely on the benefits of the organisation.

Summing Up: 

The distinctions between HRM and HRD can sometimes bring confusion in understanding. upGrad’s Professional Certificate Program in HR Analytics and Management is a course you can look up to as it will clear out your imprecise concepts professionally.

The benefits of the programs are as follows:

  • Understanding the importance of HR Management related business decisions taken in most organisations.
  • Focussing on data/analytics to complement management options.
  • Key insights on HR Management and Analytics.
  • Case Studies of unique and popular HR Management and Analytics.
  • Showcasing the latest concepts in HR.
  • Suiting a managerial role with solutions to complex business problems.
  • Classes from the NIRF 6th ranked institute.
  • Understanding of HR and Analytics in all industries.
  • Studying the most exciting and latest curriculum related to HR and Analytics.

Program highlights include:

  • Classes are taken from faculty members of IIM Kozhikode
  • Participation in popular industrial projects
  • Unique Curriculum
  • Offline Networking Events

This mentioned program is different from other online courses because Upgrad will provide you with the following:

  • Soft skill modules
  • Career Webinars
  • Job Opportunities Portal
  • Student Support

Sign up today to learn more!

What is the importance of human resource management and human resource development?

Human resource management supports the right quality and quantity of personnel in the workplace bringing about a range of opportunities. HRD helps in the skill development process, allowing an overall enhancement for the organisation.

Which is better in India: HRM or HRD?

India has more job opportunities in the domain of HRM compared to HRD. But both can be regarded as efficient professions in the country.

What is the highest position in HR?

VP in Human Resources is viewed as the highest position when it comes to the field of Human Resources.


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