HRM vs HRD Explained: Key Functions, Roles, and Objectives

In any company, people are an important asset. Managing them leads to long term success of any business, and that’s, where Human resource management(HRM) and Human resource development (HRD) come into play, they are two important aspects of any organization. While both are interrelated to each other and may sound similar but both are different.

In this blog we will describe the difference between HRM vs HRD, their key functions, and roles.

What is HRM (Human Resource Management)?

Human resource management process of handling the employees. It handles the tasks of hiring,paying salaries, managing benefits, and following labor laws. HRM manages everything from hiring of new employees to when they leave the organization.

Main Goals of HRM:

  • Hiring the right people
  • Keeping records and managing payroll
  • Making sure the company follows labor laws
  • Managing salaries, and benefits
  • Handling employee problems or complaints

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What is HRD (Human Resource Development)?

HRD is a part of HRM, helps in the future goals of employees. It mostly consists of skill development, career planning, and training. The goal is to make employees better at their jobs and help them grow in their career.

Main Goals of HRD:

  • Improving employee skills and knowledge
  • Helping employees grow in their careers
  • Encouraging ongoing learning
  • Boosting performance and productivity

Developing future leaders within the company

HRM vs HRD: What’s the Difference?

To better understand hrm vs hrd, here’s a simple comparison:

Aspect HRM – Human Resource Management HRD – Human Resource Development
Meaning
Managing all employee-related tasks
Helping employees grow and improve
Main Focus
Hiring, salaries, laws, and employee issues
training, learning, and development
Goal
Ensure smooth daily operations
Build skills for future roles
Time Frame
Short- to medium-term focus
Long-term focus
Approach
More administrative and reactive
More proactive and growth-focused
Handled By
HR managers, general HR staff
Trainers, learning & development teams

In simple words HRM focuses on managing people and HRD focuses on developing people.

Main Functions of HRM

To understand hrm vs hrd better, let’s look at what HRM actually does:

1. Hiring and Staffing:
Finding the right people, advertising roles, conducting interviews, and onboarding new hires. 

2. Salary and Benefits:
Setting pay, managing bonuses, insurance, and retirement plans.

3. Employee Relations:
Handling workplace issues, feedback, and engagement programs.

4. Legal Compliance:
Making sure the company follows labor laws, safety rules, and policies.

5. Performance Reviews:
Organizing employee evaluations and promotions.

Main Functions of HRD

Now let’s explore what HRD does to help employees grow:

1. Training and Learning:
Setting up training sessions, classes, and workshops to develop new abilities. 

2. Career Growth Support:
Helping employees set career goals.

3. Mentoring:
Putting workers in touch with mentors to support their professional growth. 

4. Leadership Training:
Preparing talented employees for future leadership roles.

5. Improving Company Culture:
Helping improve teamwork, communication, and overall company effectiveness.

How HRM and HRD Work Together

They both are different but HRM and HRD are most effective when they work together. HRM lays the foundation by handling hiring and basic employee needs. HRD builds on that by helping employees grow and succeed.

For example:

  • HRM hires a new employee and handles their salary.
  • HRD trains employees for their future goals.

When combined they lead to better employee growth and a strong team for the future.

HRM vs HRD in Small and Large Companies

How companies use HRM and HRD depends on their size and structure.

Small Companies:

  • Focus more on basic HRM tasks like hiring and payroll
  • HRD is often informal or done through simple on-the-job training

Large Companies:

  • Have dedicated HRM and HRD teams
  • Invest in programs that teach staff members new skills, advance their careers, and become better leaders.

No matter the size, companies benefit from using both HRM and HRD together.

Why Understanding HRM vs HRD Is Important

Here’s why knowing the difference between hrd vs hrm matters for business owners and HR teams:

  • Better Planning: Helps divide resources between managing staff and developing them, especially when using HR analytics software to track employee performance and development
  • Smarter Hiring and Retention: Attract and keep the best people while helping them grow
  • Happier Employees: People feel more motivated when they’re supported and developed
  • Stronger Future Teams: HRD prepares employees to take on bigger roles over time

Whether you’re creating an HR plan or improving your current system, understanding both HRM and HRD will help you succeed.

Final Thoughts: HRM vs HRD – Use Both for Success

To wrap up, HRM is about managing people and processes, while HRD is about helping those people grow and succeed. When you compare hrm vs hrd, it’s clear that both are important. One supports the present, the other builds the future. Companies that focus on both  HRM and HRD are more likely to create a productive and skilled workplace. If you’re a HR professional make sure to use both for as a part of the strategy.

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