Difference Between HRM and HRD – The Best Ways To Compare

Difference Between HRM and HRD – The Best Ways To Compare

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Syed Aquib Ur
Syed Aquib Ur Rahman
Assistant Manager
Updated on Dec 13, 2023 16:59 IST

Knowing the difference between HRM and HRD is crucial. HRM makes the team work better, while HRD focuses on making the team grow continuously. HRM reacts to issues, HRD plans ahead. Understanding these helps balance using resources and helping employees grow. It's about finding the sweet spot for a strong team and a successful company. Dive in to learn more and boost your team's potential.

HRM versus HRD


The difference between HRM and HRD lies in function, objective and nature. Human resource development (HRD) is a subset of human resource management (HRM). HRD looks at the development part, while HRM is focused on all aspects that make up human resources in the organisation. Find out more. 

  1. Difference between HRM and HRD
  2. What is HRM?
  3. What is HRD?

Difference Between HRM and HRD

Here is how you can compare the difference between HRM and HRD. 

Parameters HRM HRD
Primary Objective Optimisation of human resources and workforce Continual development of workforce
Nature Management Subset of HRM
Type of Function Reactive Proactive
Process Routine Ongoing
Concerned with Employees Organisational development
Formality Formal Can be informal

What is HRM?

HRM or HR management is the optimisation of human resources and the workforce in an organisation. It utilises the various principles of management to utilise resources in the best possible way so that the organisation benefits.

Explore HR Management courses

The core functions of HRM include recruitment, training and development of employees, and maintaining regulations in the organisation. All of these functions help in meeting a range of objectives that are functional, societal, personal, and organisational combined. Enhance your understanding of these function with staffing in management too.

Though debatable, HRM is mainly considered reactive rather than proactive. It responds to situations in the organisations only after they take place. Many organisations today are also moving to the proactive approach in HRM to prevent issues from happening in the future. At the same time, some give equal importance to both these aspects when it comes to HRM. 

What is HRD?

HRD or human resource development is a subset of HR management. The function is more geared towards the continual development of the employees. It looks into improving the workforce’s competencies so that organisational goals are met without hassle. 

Some examples of HRD include offering on-the-job training, mentoring, etc. 

Apart from that, HRD is also responsible for the below functions that are related to employee hiring and development – 

These functions are essential for the organisation’s growth. HRM is more about optimising resources in a routine manner. HRD is a continuous process of making employees more productive, which makes it more proactive than HRM. 

Parting Thoughts

Both HRM and HRD are essential for an organisation to run smoothly. And knowing the difference between HRM and HRD is important for understanding how the organisation and employees grow and benefit from each other. Hopefully you are now able to know what makes human resource management and human resource development different from each other. 

It is also recommended that you check out the difference between personnel management and HRM to know human resources better. 

And if you have made it this far, check out the free HR management courses to get started with your professional development journey right away!


What is the difference between HRM and HRP?

HRM deals with the day-to-day management and administration of human resources, while HRP (Human Resource Planning) is more concerned with the strategic planning aspect, forecasting future workforce needs and aligning them with the organisation's long-term goals.

How do the functions of HRM and HRD differ?

HRM operates in a more reactive manner, dealing with issues as they arise within the organization. HRD, however, takes a proactive approach, consistently improving employee competencies and contributing to organisational growth.

What distinguishes the nature of HRM from HRD?

HRM is the broader management of all aspects related to human resources within an organization. HRD, on the other hand, is a subset of HRM, focusing specifically on employee development.

Are HRM and HRD equally important for an organisation's success?

Yes, both HRM and HRD are crucial for an organization's smooth functioning and growth. HRM ensures effective resource utilization, while HRD focuses on enhancing employee skills, directly contributing to organizational success and achieving goals.

How do HRM and HRD differ in their approach towards employees and organisational development?

HRM primarily concerns itself with managing employees within an organisation, covering recruitment, training, and regulation maintenance. In contrast, HRD concentrates on employee skill enhancement and development, contributing directly to organisational growth and effectiveness.

About the Author
Syed Aquib Ur Rahman
Assistant Manager

Aquib is a seasoned wordsmith, having penned countless blogs for Indian and international brands. These days, he's all about digital marketing and core management subjects - not to mention his unwavering commitment ... Read Full Bio