What is the Difference Between Industrial Relations and Human Resource Management?
🆚 Go to Comparative Table 🆚The main difference between Industrial Relations (IR) and Human Resource Management (HRM) lies in their focus and the parties involved. Here are the key differences:
- Parties involved: IR involves four parties: employees, employers, trade unions, and government. In contrast, HRM primarily involves two parties: employees and employers.
- Focus: HRM focuses on effectively managing the human resources within an organization to achieve organizational goals and objectives, such as increased ROI. It also provides support and development to motivate the workforce. On the other hand, IR is about establishing and maintaining relationships among stakeholders, specifically employees, employers, trade unions, and government.
- Relationship establishment: IR initially begins with the employment relationship, where compensation is offered in exchange for work, such as in an employment contract. This contract has a legal dimension, and the decisions taken by managers and employers affect the industrial relations. HRM, however, is concerned with the management of all human resources within an organization, including employees and their relationship with the employer, as mandated by law.
In summary, IR is about establishing relationships among stakeholders and is a part of HRM. HRM focuses on managing human resources within an organization to achieve organizational goals and objectives, while IR involves the dynamic relationship between employers, employees, and institutions through which these relationships are conducted.
Comparative Table: Industrial Relations vs Human Resource Management
Here is a table comparing the differences between Industrial Relations (IR) and Human Resource Management (HRM):
| Aspect | Industrial Relations | Human Resource Management |
|---|---|---|
| Definition | The study of processes of control over work relations, focusing on trade unions and collective bargaining | A method for managing people in a thorough and structured manner, including recruitment, training, motivation, and policy creation |
| Emphasis | Focuses on the collective relationship between employees, employers, trade unions, and government | Primarily emphasizes the individual relationship between employees and employers |
| Approach | Collective bargaining, use of unions, and rules and regulations | Use of individual contracts and performance-pay systems |
| Goal | Ensuring favorable working conditions and employee rights | Maximizing the use of human capital for organizational success |
| Parties Involved | Employees, employers, trade unions, and government | Employees and employers, with some focus on third-party service providers |
While IR and HRM have different emphases, they are interconnected, as the management of human resources within an organization is influenced by the work relations and the broader context of labor regulations.
- Industrial Relations vs Employee Relations
- IHRM vs HRM
- Human Resource Management vs Personnel Management
- Personal Management vs Human Resource Management
- HRM vs HRD
- Human Resources vs Human Capital
- HRM vs SHRM
- HR vs Public Relation (PR)
- Hard vs Soft HRM
- Hiring vs Recruitment
- Scientific Management vs Administrative Management
- Recruitment vs Hiring
- Human Capital vs Physical Capital
- Human Capital vs Social Capital
- Administration vs Management
- Employee Involvement vs Employee Participation
- International Relations vs International Politics
- Tourism Management vs Hospitality Management
- Business Administration vs Business Management