Industrial Relations vs. Human Resource Management: The Difference

September 9, 20193:57 pm
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Any well-maintained organisation must aim to inaugurate their company from both inside and outside forces. They should also align both inside and outside power in order to increase and achieve expected goals. To do this, industrial relations and human resource management should come into play. 

Industrial relations and human resource management are two departments that relate to each other but hold different roles within an organisation. They are also divided under a different concept.

The different concepts

Industrial relations

Industrial relations (IR) or commonly known as employment relations examines various employment situations that include employees, employers, trade unions, and government. Initially, IR will begin with employment relations where compensation is offered in exchange for work such as employment contract. IR is also affected by a decision of manager and employer.

Human resource management

Human resource management (HRM) is simply about managing human resources within an organisation. They should focus on achieving organisational goals and objectives such as increased ROI through hiring best talents. HRM also provides support and development to motivate workforce. Thus, effective management of human resources can directly contribute to organisational effectiveness.

See also: The Brief History of Human Resources

Key takeaway

To conclude, industrial relation has wider view about stakeholders and company.  IR is about establishing a relationship among stakeholders – employees, employers, trade unions, and government. Meanwhile, the concept of human resource management is about managing human resources in an organisation that consists of employers and employees.

The different responsibilities

To further understand both concepts, here are IR managers and HR manager’s responsibilities.

Read also: 2 Best Ways to Structure Human Resource Department as Your Business is Growing