2024-03-07
If you've browsed recent HR job listings, you’ve likely encountered terms like HRM, HRD, HRBP, ER, and more. While they may seem familiar, many people struggle to clearly explain what each role entails.
In this first article of the HR Role Analysis series, we’ll break down the key differences between HRM and HRD—two of the most common and essential HR domains.
HR organizations are broadly divided into two main areas: HRM (Human Resource Management) and HRD (Human Resource Development). While it’s common to associate HRM with “personnel” and HRD with “training,” these roles encompass far more than that.
With the rise of startups and the expansion of global companies, HR functions are becoming increasingly specialized. This has led to the development of more segmented and defined HR roles across organizations.
HRM, or Human Resource Management, focuses on managing human capital to help the organization achieve its business goals. HRM oversees talent acquisition, placement, evaluation, and performance management. It also plays a strategic role in managing future workforce planning, improving productivity, and designing systems for effective talent utilization.
In addition to managing headcount, HRM is responsible for developing and implementing HR policies such as promotion frameworks, performance systems, compensation, benefits, and labor relations.
HRD, or Human Resource Development, is centered on building the competencies of both the organization and its individuals to achieve strategic goals. This includes training programs that target skills, behavior, attitude, and leadership at various role levels. The ultimate goal is to enhance employee capability and drive business growth.
Before designing training programs, HRD teams typically conduct job analysis to identify the required core competencies. This helps determine the appropriate training level and content based on job role or rank.
Modern HRD also includes organizational culture initiatives, aimed at fostering trust and building stronger, more cohesive teams.
In 1989, McLagan introduced the “HR Wheel” through the American Society for Training and Development (ASTD) to visually define the scope of HR responsibilities. While decades have passed, the framework remains relevant and widely accepted among HR professionals today.
McLagan’s HR Wheel (1989)
Both HRM and HRD aim to enhance organizational productivity. The difference lies in their focus:
HRM uses management principles to handle strategic planning, monitoring, talent placement, and performance evaluation. Meanwhile, HRD supports ongoing employee growth through training and capability-building efforts.
McLagan’s HR Wheel shows how diverse HR responsibilities are. As companies scale and place greater emphasis on talent attraction and retention, HR roles are becoming more specialized.
Today’s organizations seek professionals with expertise in niche HR areas such as HRBP (HR Business Partner), HRIS (HR Information Systems), C&B (Compensation & Benefits), TR (Talent Review), and EA (Employee Advocacy).
In the next article—HR Role Analysis 2—we’ll explore these increasingly common yet often misunderstood HR job titles in greater detail.
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