Comparison Chart

Basis for
HRM HRD
Comparison
Human Resource Management refers Human Resource Development means a
to the application of principles of continuous development function that
Meaning
management to manage the people intends to improve the performance of
working in the organization. people working in the organization.
What is it? Management function. Subset of Human Resource Management.
Function Reactive Proactive
To improve the performance of the To develop the skills, knowledge and
Objective
employees. competency of employees.
Process Routine Ongoing
Dependency Independent It is a subsystem.
Concerned
People only Development of the entire organization.
with

Definition of HRM

Human Resource Management, shortly known as HRM refers to a systematic branch of

management that is concerned with managing people at work so that they can give best results to
the organisation. It is the application of management principles to the people working in the
organisation. It aims at improving the performance and productivity of the organisation by
finding out the effectiveness of its human capital. Therefore, HRM is an art of placing the right
person at the right job, to ensure the best possible use of organisations manpower.

The process involves an array of activities that begins with the recruitment, selection, orientation,
& induction, training & development, performance appraisal, incentives & compensation,
motivation, maintaining workplace safety, health & welfare policies, managing relationship with
the organisation, managing change.

Definition of HRD

The term Human Resource Development or HRD refers to the development of people working
in an organisation. It is a part of HRM; that aims at improving skills, knowledge, competencies,
attitude and behaviour of employees of the organisation. The purpose of the HRD is to empower
and strengthen the abilities of the employees so that their performance will get better than before.

Human Resource Development involves providing such opportunities to the employees that will
prove beneficial in their all around development. Such opportunities include training &
development, career development, performance management, talent management, coaching &
mentoring, key employee identification, succession planning and so on. Nowadays, there are
many organisations work for the human resource development of employees from the day they
join the enterprise, and the process continues, until the end of their employment term.
Key Differences Between HRM and HRD
The significant differences between HRM and HRD are discussed in the following points:

1. Human Resource Management refers to the application of principles of

management to manage the people working in the organisation. Human
Resource Development means a continuous development function that
intends to improve the performance of people working in the organisation.

2. HRM is a function of management. Conversely, HRD falls under the umbrella

of HRM.

3. HRM is a reactive function as it attempts to fulfil the demands that arise while
HRD is a proactive function, that meets the changing demands of the human
resource in the organisation and anticipates it.

4. HRM is a routine process and a function of administration. On the other hand,

HRD is an ongoing process.

5. The basic objective of HRM is to improve the efficiency of employees. In

contrast to HRD, which aims at developing the skill, knowledge and
competency of workers and the entire organisation.

6. HRD is an organizationally oriented process; that is a subsystem of a big

system. As opposed to HRM where there are separate roles to play, which
makes it an independent function.

7. Human Resource Management is concerned with people only. Unlike Human

Resource Development, that focus on the development of the entire
organisation.

8. HRM functions are mostly formalwhileHRD functions

c a n b e i n f o r m a l l i k e mentorship.

9. HRM deals with all aspects of the humanresources function while HRD only
deals with the development part.

Conclusion

HRM differs with HRD in a sense that HRM is associated with management of human resources
while HRD is related to the development of employees. Human Resource Management is a
bigger concept than Human Resource Development. The former encompasses a range of
organisational activities like planning, staffing, developing, monitoring, maintaining, managing
relationship and evaluating whereas the latter covers in itself the development part i.e. training,
learning, career development, talent management, performance appraisal, employee engagement
and empowerment.
resource is an important factors of economic development.As opined by Adam Smith the
prosperity of a country is determined by the skill,efficiency and attitude of the labour used by
that country.Many countries have been able to develop themselves due to the will,capacity and
skill of their human resources.As for example,the countries like Japan,Singapore,Germany,and
Hon Kong have been able to achieve economic miracle by mobilising their human resource.

1. Utilisation of natural resources :The natural resources like mineral,water,oil and forest
are utilized by the human resource.The utilisation of natural resources increase the
national income.The per capital income and living standards of the people increase.The
dearth of proper human resource is one of the causes of non-utilisation of natural
resources in world.

2. Compensate the deficiency of natural resources :The utilisation of human resource

compensates the deficiency of natural resources.Many countries poor in natural resources
have been able to achieve high economic and human development on the basis of the
human resources.

3. Utilisation of physical capital :The more existence of physical capital is on guaranteed of

development.They should be property utilised.They are utilised by human
resource.Human resources is essential to operate machinery and equipment and to run
factories and industry.

4. Increase production :The skilled,educated and healthy human resources increase the
productivity and production.The production may be done even by the use of unskilled
and semiskilled manpower .But the production of goods quality and variety of goods
need skilled manpower.

5. Reform in tradition cultural and attitude :The traditional culture,values,intestines and

attitude have been inimical to the development of developing countries including
world.The educated manpower reforms the traditional cultural and attitude .

6. Increase in managerial capacity and entrepreneurship :Human resources increase the

managerial capacity and entrepreneurship.It leads to innovation.The new production
technique,new market and new technology are developed.This increase the production
and national income.

7. Development of agriculture and industry :The modern and superior technologies should
be use for the modernisation of agriculture and rapid industrialisation's.This is made
possible only by human resource.Theodore Schultz observes "It is simply not possible to
have the fruits of a modern agriculture and the abundance of modern industry without
making large investment in human being.
 8. Remove economic background :Human resource helps directly to remove the economic
backwardness.It increase labour efficiently and specialisation.It increase labour mobility
from which the executing resources can be made more productivity.The development of
human resources increase the knowledge of natural resources.New production
technique,market and opportunities of economic activities.The human resource also help
in the proper utilisation of imported capital.These all lead to the increase in
production,employment opportunities and levels of living of people.

Discuss the role of human resources in the economic development? or discuss the
relation of population growth and economic development?
There is a close relationship between population and economic development in
some countries. It is an obstacle in the way of economic development. While in
various countries it is playing very effective role in improving the rate of economic
development. The role of population in the economic development can be explained
by the following facts :

1. Maximum Utilization of Resources :-

If the majority of the population is educated and technically trained then the
resources of country can be utilized to the maximum level.

2. Population and Per Capita Income :-

If the birth rate is high in the country, it will reduce the per capita income. Because
per capita income is calculated by dividing the total number of population by the
GNP.

3. Labour Intensive Industries :-

In those countries where rate of population growth is high labour intensive
industries can be set up to increase the production. Man power will be cheap and it
will reduce the cost of production.

4. Population and Standard of Living :-

High birth rate reduces the per capita income and low per capita income reduces
the standard of living.

5. Solution of Capital Shortage :-

The poor countries are facing the problem of capital shortage. They can not import
the heavy machinery. So by using the labour in factories we can solve the problem.

6. Population and Savings :-

If the rate of population growth is high then rate of saving will be low and due to
this rate of investment will be low. Low rate of investment causes low production.

7. Specialization :-
In those countries where size of population is large specialization process is adopted
in the factories. It increases the production on large scale and also improves the
quality of the product.
8. Population and Employment :-
A rapid increase in population increases the rate of unemployment in the country.
While in those countries where birth rate is low the rate of unemployment is also
low.

9. Extension of Market :-
If the size of population is greater it will increase the demand of various goods and
services. So the size of market will expand.

10. Population and Agriculture :-

If the rise in population is fast the population pressure increases on land. The farmer
can not use the inputs like fertilizer and seeds. It causes low production.

11. Population and Other Facilities :-

If any country birth rate is very high then government can not provide various
facilities, like health, education, housing and transport to all the population.

12. Population and Social Evils :-

With the rise in population, there is a rise in social evils like theft, and bribery.

13. Population and Urban Development :-

In any country as the population increases people migrate to the urban areas and
create many problems like water, education and housing in urban areas.

14. Population and Industrial Development :-

A high birth rate reduces per capita income, savings and investment. With the rise
in population, the demand of basic goods like food and milk increases. While less
attention is paid to the industrial development.