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HRM vs HRD: How Are They Different From Each Other?

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Enable Group | Oct 25, 2022

For Employers ● 3 min read

Human resource (HR) is an integral component of many organisations, regardless of industry or size. The HR department essentially serves as the bridge that connects the company and its employees, ensuring that both are set up for success. Due to its massive importance, numerous businesses place much attention on their HR department and even engage HR services in Singapore to assist with their HR functions.

When it comes to HR, it is crucial for business owners and HR leaders to understand two concepts: human resource management (HRM) and human resource development (HRD). HRD primarily falls under the umbrella of HRM. While they have many similarities, they also have significant differences. Continue reading and discover how HRM and HRD differ from one another. 

What is HRM?

In general, HRM refers to the creation of systems that organise people within a company, such as compensation, benefits, staffing, and designing or defining policies. For HR managers, employees are one of the most valuable assets of a company. As such, it is the job of an HR manager to develop talent and cultivate collective and individual success, all while achieving company-wide objectives and maximising profit. 

What is the objective of HRM? 

The primary aim of HRM is to develop, maintain, and improve the relationship between the company and its employees in order to foster and retain top talents. This is particularly relevant these days since issues concerning inclusion and diversity come to the forefront of workplace discussions. Another ultimate objective of HRM is to help solve problems that arise within the company and build career paths for people.

What is HRD? 

HRD generally pertains to the cultivation of employees’ skills and competencies. It necessarily entails providing employees with the relevant knowledge and skills that may help them grow in the workplace. This makes HRD a vital part of HRM. HRD often begins with a clear vision for employee development, which is attained through corporate initiatives, coaching and training. Usually, the HRD team is responsible for developing these initiatives to prepare workers for career advancement.

What is the objective of HRD? 

The primary objective of HRD is to enhance learning and performance on both organisational and individual levels. This could involve attaining the business’s overall objectives and advancing the employees’ personal goals to ensure that both parties gain from the connection. It is also the aim of HRD to determine crucial problems within these areas and help develop effective systems for addressing these problems.

Essential differences to keep in mind

Many people consider HRD to be a mere component of HRM. With that said, they have two distinct objectives and frequently involve diverse responsibilities. HRM focuses on compensation, benefits, labour relations, and compliance. HR managers typically also work on matters like inclusion and diversity.

On the other hand, HRD is primarily concerned with training employees and aligning their development objectives with the broader goals of the business. HRD professionals are typically best suited for positions such as development experts, training managers, program developers, and instructional designers. Meanwhile, a professional with an HRM background may likely become a general HR manager or a specialist in recruitment, payroll, and benefits. 

Conclusion

Overall, HRM and HRD are similar in that they both require interacting with people and resolving business challenges. However, there are important distinctions between these two concepts that business owners and HR directors must understand. Knowing what distinguishes HRM and HRD allows you to better understand human resources as a critical component of a business.

Planning to outsource HR services to improve the operation and organisation of your HR department? Enable Consulting is here to assist you! We are a reputable agency that offers a wide array of efficient and cost-effective HR services, ranging from HR advisory and consultancy to HR outsourcing in Singapore. Feel free to reach out to us anytime to learn more about our reliable services or discuss your business requirements.


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