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HRM is a set of policies, practices and programmes designed to maximise both personal goals of the employees as well as the goals of the organisation. It views its manpower in the organisation as its resources and assets and not as liabilities or mere hands. It reflects a new approach, a new philoso­phy, a new outlook and a new strategy towards human resources. It is a process of managing the people in the organisa­tion with a human approach. HRM is concerned with the management of human resources in the organisation. In other words, HRD has become an integral part of the HRM. At the same time, it should be noted that HRD is at the centre of HRM. They are different concepts with different meaning and they are used in different contexts. Some writers have used both the terms HRM and HRD interchangeably assuming that they are synonymous. Incentives Used – It relies on job enrichment, job challenge, informal organisation, autonomous work groups, and creativity for motivating people.ĭifference between Human Resource Management and Human Resource Development – 6 Points of Distinction In fact, it aims at developing the capabilities of all line managers to carry out various human resource management functions themselves.ħ. Responsibility – It is regarded as the responsibility of all managers in the organisation. Morale Productivity Relationship – It considers improved performance as the cause of improved job satisfaction and morale.Ħ. Orientation – It is considered a proactive function which does not merely cope with organisational requirement but anticipates them and acts on them in advance in a planned and continuous manner.ĥ. Objective – Its objective is to develop human resources matching with organisational culture and provide inputs for the effective performance of various HRM functions.Ĥ. But the focus of it is on building the right organisational culture that can continuously identify, nurture and use human capabilities.ģ. The focus of human resource management is on increasing the efficiency of people. Aim and Scope – It is wider in scope and aims at developing the total organisation. It is assumed to be made-up of mutually dependent parts.Ģ. Status – It is viewed as a sub-system of a larger system, i.e., the organisation. Incentives Used – In HRM, salary, wage, incentives and job simplification are considered to be the main motivations. Responsibility – HRM is supposed to be the exclusive responsibility of the human resource department.ħ. Morale Productivity Relationship – Under HRM, high morale and satisfaction are regarded as the cause of improved performance.Ħ. Functions – Acquiring, developing, motivating and retaining human resources.ĥ. Objectives – Social, Organizational, Functional, and Personal Objectives like Union Management Relations, Employee Relations, Placement & Orientation, Employee Assessment, Compensation etc.ģ. Many Organisations are still not clear about what constitutes development and so it is important to differentiate between the two. With the growing importance of knowledge workers in organizations and the mounting expectations of employees, it is essential to have a good human resource development system with Human Resource Management System in place. HRM has come to be celebrated as an important factor in the successful management of an organization and so the emphasis on effective human resource management has increased in the recent times. HRM motivates the employees by giving them monetary incentives or rewards whereas human resource development stresses on motivating people by satisfying higher-order needs.ĭifference between Human Resource Management and Human Resource Development