Monday, October 6, 2014

Human Resource Management

Human Resource Management

HRM stands for human resources management, which refers to the art of managing all aspects of the human work force at a company or organization. HRM aims at providing an optimal working environment for employees to fully and freely utilize their skills to their best to achieve the company’s intended output. As human resources management usually applies to big companies and organizations, it has sub categories, among which is HRD, which stands for human resources development. This is a component of HRM that focuses on ‘nurturing’ employee’s skills. Because the process of hiring new employees can be long, expensive and cumbersome, most companies employ the strategy of HRD to promote longevity of employees within the company because through this an employee is likely to progressively scale up the managerial ladder.
Human resources management of a company is often an independent department of its own composed of various sections including recruitment and retention, performance and appraisal management, HRD and compensation sections ally a manager.

Difference between HRM and HRD

1.  HRD is a sub section of HRM, i.e. HRD is a section with the      
    department of HRM.
2.  HRM deals with all aspects of the human resources function  
    while HRD only deals with the development part.
3. HRM is concerned with recruitment, rewards among others   
    while HRD is concerned with employee skills development.
4. HRM functions are mostly formal while HRD functions can be   

   informal like mentorships.