HUMAN RESOURCE MANAGEMENT(HRM) vs HUMAN RESOURCE DEVELOPMENT (HRD)
While HRM as a function is structured to handle entire employee activities in an organization, HRD is particularly formed for employee training and development. Training is one of the main components of HRD and it is a basic responsibility for employee development. With the other words, HR as a department works for all employee-related issues such as recruitment, performance, motivation, promotion, compensation, HRD as a component of HR, works for improving employees’ knowledge, skills, and abilities (KSA). A simple comparison between HR and HRD can be done as the following;
- HRM covers HRD and HRD is a subsection of HRM,
- All human resources functions are the responsibilities of HRM, training and development of employees are the responsibilities of HRD,
- From recruitment to retirement, all human processes should be operated by HRM; knowledge, skills and abilities of employees should be managed by HRD,
- HR is dependent to top management, HRD is dependent to HR,
- HR focusses on human works, HRD focuses on human development issues.
Most of the HRM and HRD researches were conducted in the large organizations and we know that majority of economy consists of small businesses. It is a common reality that many small businesses do not have a separate and concrete HR department, HR directorship, and formal HR processes because of their nature. A small organization can handle the responsibilities of HR and HRD through documentation (1), building a corporate culture (2), and maintaining compliance (3).
First of all, a small business can do keeping the records and files of HR issues because of “document is everything” principle. In addition, the current knowledge, skills, and abilities of employees can be recorded in order to predict prospective needs and improve development programs. Secondly, a small business can build a corporate culture through defining vision, mission, and core values. Corporate culture guides company to formalize and complete HR functions carefully and motivates employees for training and development. It is easy in a small business to define training needs for actual and potential issues and organize training programs. Thirdly, maintaining compliance helps organization to protect both company and workforce by reducing legal problems and improving workforce. Compliance can support HRM and HRD practices and provides a better work environment for employee development.
To sum up, the number of employees in a small business is lower than large organizations and it is possible to meet training needs of small business easily. The owner of a small business has closer working relations with employees and has an idea about “who know what in the organization”. A small business owner can lead and guide employees how to improve themselves. As an advantage, improving training and development programs in a small business will be less costly and formal than larger organizations.
