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Basic functions of Human Resource Management

&
Basic functions of Human Resource
A relevant
Management & A relevant case study
case
study
HRM301 (Section-7) Name ID

1.Nusrat 2020-1-10-411 20%

Prepared for Amin

Tamanna Parvin Eva 2.Tasnim 2021-1-10-056 20%

Senior Lecturer Tahsin Laiba
Department of Business Administration
East West University 3.Husna 2020-2-10-010 20%
Ferdous Lipi

4.MD 2021-2-10-065 20%

AZMAIN
Prepared by UDDIN
KHAN
Ismam Dayan 5.Ismam 2021-3-10-062 20%
2021-3-10-062 Dayan
(on behalf of others)
Bachelor of Business Administration Participation
East West University
27 December 2024
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Introduction

Human Resource Management (HRM) plays a crucial role in the functioning of organizations by
managing the most valuable asset: human capital. At its core, HRM encompasses a range of
functions that are designed to recruit, develop, motivate, and retain employees to ensure
organizational success. The basic functions of HRM—recruitment and selection, training and
development, performance management, compensation and benefits, and employee relations—are
interconnected activities that help organizations effectively manage their workforce, align human
resources with organizational goals, and foster a productive and harmonious work environment.

This assignment seeks to explore the fundamental HRM functions and their impact on achieving
organizational objectives. The scope of the study includes a detailed examination of each HR
function, highlighting how they contribute to both the operational and strategic goals of an
organization. By analyzing the significance of these functions, this paper aims to provide a clear
understanding of how effective HRM practices contribute to employee satisfaction, engagement, and
organizational performance.

The sources of information for this assignment are drawn from a variety of academic resources,
including textbooks on HRM, peer-reviewed journal articles, and industry reports. Authoritative texts
such as Human Resource Management by Gary Dessler and Armstrong’s Handbook of Human
Resource Management Practice by Michael Armstrong offer foundational insights into HR theory
and practice. Additionally, recent studies and case analyses from reputable sources such as the
Journal of Human Resource Management and industry-specific reports provide up-to-date examples
and real-world applications of HR functions in diverse organizational settings.

The primary objective of this assignment is to demonstrate the essential role HRM functions play in
shaping an organization’s success. By delving into each HR function, this study will illustrate how
organizations can leverage HR practices to meet business objectives, improve workforce efficiency,
enhance employee morale, and drive long-term growth. A relevant case study will be used to provide
a practical application of these HRM functions, showing how they are applied in real-world
situations to align human resource strategies with organizational goals. Ultimately, this assignment
aims to emphasize the importance of HRM in achieving organizational excellence, employee
satisfaction, and a competitive advantage in today’s dynamic business environment.
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Main Body

2.1. Description of Assigned Topics:

Human Resource Management is crucial in ensuring that an organization has the right people with
the right skills in the right roles to achieve its business objectives. Below are the key HR functions
and how they contribute to organizational success:

1. Recruitment and Selection

Recruitment and selection are fundamental HR functions that ensure the organization attracts and
hires the best talent. By following systematic procedures for job analysis, sourcing candidates,
conducting interviews, and selecting the most suitable employees, HR ensures that the company
builds a strong and competent workforce. Effective recruitment directly impacts productivity and
helps achieve organizational goals by bringing in individuals who align with the company’s culture
and objectives.

A study by Dessler (2020) suggests that organizations that have a structured recruitment process are
more likely to attract high-performing employees, which leads to better overall organizational
performance.

2. Training and Development

Training and development are vital for enhancing the skills and knowledge of employees. By
providing opportunities for learning, HR supports employees in their professional growth, improving
both their performance and their contribution to the organization. Continuous training fosters a
culture of improvement, ensuring that employees remain adaptable and can meet the challenges of a
constantly changing business environment.

According to Armstrong (2017), organizations that invest in training and development not only
improve employee capabilities but also increase engagement and job satisfaction, leading to greater
productivity and retention.

3. Performance Management

Performance management involves setting clear expectations, providing feedback, and assessing
employee performance against predefined goals. This HR function helps align individual
performance with the organization's strategic objectives. Regular performance reviews and feedback
loops ensure that employees are motivated, focused, and understand their role in the organization’s
success.
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Kuvaas (2016) highlights that organizations that implement effective performance management
systems see higher employee engagement and retention, as employees are motivated when their
contributions are recognized and rewarded.

4. Employee Relations

HR is responsible for maintaining healthy employee relations, ensuring that employees are treated
fairly, and that workplace conflicts are resolved promptly. By fostering a positive work environment,
HR helps improve employee morale and satisfaction, which in turn boosts organizational
productivity. Managing employee relations also involves compliance with labor laws, ensuring that
the organization avoids legal issues and maintains a harmonious work environment.

According to Stone (2018), organizations that prioritize employee relations and work on resolving
conflicts effectively can reduce turnover and enhance employee loyalty.

5. Compensation and Benefits

The compensation and benefits function of HR ensures that employees are rewarded fairly for their
work, which helps in attracting and retaining talent. Competitive salaries, bonuses, health benefits,
and retirement plans are all key components of this function. When employees feel they are
adequately compensated, they are more likely to stay with the company and perform at their best.

As noted by Milkovich and Newman (2014), a well-structured compensation system is crucial for
motivating employees and improving organizational performance, as employees are more likely to
be committed to the organization when they are satisfied with their rewards.

Flowchart:

To visually represent the relationship between HR functions and organizational goals, you can create
a flowchart like this:

HR Functions and Organizational Goals

1. Recruitment and Selection → Brings in skilled employees → Higher productivity and

innovation
2. Training and Development → Enhances employee skills → Improved performance and
adaptation to change
3. Performance Management → Aligns individual goals with organizational objectives →
Increased motivation, performance, and engagement
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4. Employee Relations → Fosters a positive work culture → Better retention, morale, and
job satisfaction
5. Compensation and Benefits → Attracts and retains talent → Enhanced employee loyalty
and motivation

This flowchart demonstrates how each HR function directly contributes to the achievement of
organizational goals such as improved performance, increased productivity, and employee
satisfaction.

The basic functions of Human Resource Management are essential for organizations aiming to
achieve their strategic objectives. Through effective recruitment, training, performance management,
employee relations, and compensation, HR plays a critical role in aligning human resources with
organizational needs. The implementation of these functions leads to higher employee satisfaction,
better organizational performance, and the long-term success of the business.

2.2. Case Analysis:

Question 1: What are the problems faced by Northrop now? What advantages might it experience
from solving the problem with current employees?
Ans: Northrop Grumman, the world's largest aerospace company, faces a large number of workforce-
related issues that seriously threaten the sustainability and growth of the company. These issues
include an aging workforce, a shortage of talented engineers, competition from technology firms in
recruiting employees, federal restrictions from hiring non-U.S. citizens, and a capability gap between
today's talent and future needs. These challenges will be essential in ensuring Northrop maintains its
leader status in the industry. Here we will look at such problems and the benefits of solving them by
focusing on the existing employees.
Problems Faced by Northrop
⮚ Aging Workforce: Northrop’s engineers, the average age is 47 years thus posing high risk of
retirements in large numbers with high likelihoods of loss of key talent within the firm.
⮚ Talent Shortage: In aerospace, this need is so great that Northrop is having difficulty finding
enough engineers.
⮚ Competition for Talent: New entering engineers are also more likely to join technology an
internet firms and this makes Northrop even less attractive for recruiting new engineers.
⮚ Legal Restrictions: Since it operates as a defense contractor, Northrop loses available talent
because it cannot employ people from other countries with a green card.
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⮚ Skill Gap: From the case, the company is challenged with the issue of employee needs in the
current market and new needs that are being developed thus the urgent skills development
actions.
That is why solving problems with current employees brings certain benefits:
⮚ Retention of Expertise: Northrop keeps a wealth of institutional knowledge and experience
within by continued training and progression of current employees.
⮚ Cost-Effective: In general, internal mobility, and development initiatives are cheaper than
external search when it comes to specialist positions.
⮚ Enhanced Employee Morale: When an organization promotes its employees, they can
prevent them from jumping ship to another company, making them happy in their jobs.
⮚ Strategic Alignment: Employee already working in a company keeps themselves acquainted
to the culture, objectives and functioning system and thus now only it takes time to set up.
⮚ Faster Execution: The internal mobility is thus valuable to Northrop as it can help the
company to fill strategic workforce needs sooner than labor market recruitment.
Explaining Northrop’s workforce challenges highlight the need for better HRM strategies. These
issues should be dealt with among the current employees because it is inexpensive and motivating
for other employees, although it is a challenge due to shortages in the labor force that might expose
the company to competition by rival firms.

Question 2: Besides the recruitment sources used in the case, what other recruiting methods
would you recommend for Northrop to remain a strong, innovative company? Explain with
examples.
Ans: The other recruiting methods are:
Employee Referrals

Explanation: Employee referrals leverage the networks of current employees to attract qualified
candidates who align with the organization’s culture.
Example: Northrop could incentivize its employees with referral bonuses for recommending skilled
professionals, especially those with expertise in emerging aerospace technologies like AIdriven
systems or sustainable materials.
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Social Media Recruiting

Explanation: Platforms like LinkedIn, Twitter, and specialized job boards are effective for reaching
passive candidates and building a strong employer brand.
Example: Northrop could launch targeted LinkedIn campaigns showcasing its cutting-edge projects
and career development opportunities to attract young engineers and innovators.
Partnerships with Professional Associations
Explanation: Collaborating with organizations such as the American Institute of Aeronautics and
Astronautics (AIAA) can connect Northrop to a broader pool of professionals.
Example: Sponsoring AIAA events or hosting webinars on aerospace innovation can position
Northrop as a leader and attract experienced engineers.
Apprenticeship and Internship Programs
Explanation: Internships provide hands-on experience for students, making them more likely to
consider Northrop as their future employer.
Example: Northrop could create a rotational internship program allowing students to work in
multiple departments, fostering interest in specialized areas like defense systems or space
exploration.
Recruiting Through Diversity and Inclusion Programs
Explanation: Targeting underrepresented groups in STEM fields expands the talent pool and brings
diverse perspectives.
Example: Partnering with organizations like the Society of Women Engineers (SWE) or Historically
Black Colleges and Universities (HBCUs) can help Northrop attract a diverse workforce while
promoting its commitment to inclusion.
Global Recruitment Strategies
Explanation: While Northrop faces restrictions on hiring non-U.S. citizens for defense roles, it can
still recruit internationally for other positions and leverage global talent.
Example: Recruiting engineers from countries with strong aerospace programs, such as Canada or
Australia, for roles not limited by legal restrictions.
Headhunting and Executive Search Firms

Explanation: These agencies specialize in finding experienced professionals for critical roles.
Example: Northrop could use executive search firms to recruit senior aerospace engineers or
technology leaders with experience in cutting-edge areas like hypersonics or satellite systems.
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Online Job Portals and AI-Driven Platforms

Explanation: Advanced platforms like Indeed or AI-driven recruitment tools can efficiently match
candidates’ skills with job requirements.
Example: Northrop could use AI to screen applications for technical roles, ensuring a quick and
precise hiring process.
Job Fairs and Industry Events
Explanation: Attending industry-specific job fairs allows direct interaction with potential candidates.
Example: Hosting or participating in aerospace-focused events such as SpaceTech Expo can connect
Northrop with professionals passionate about the industry.
Developing "Returnship" Programs

Explanation: These programs target professionals returning to the workforce after a career break.
Example: Northrop could create returnships aimed at individuals with past aerospace experience,
offering a pathway to re-enter the field and contribute immediately.

By diversifying its recruitment strategies beyond traditional sources, Northrop can build a robust
pipeline of innovative talent. Combining modern digital tools, partnerships, and targeted programs
with its existing systematic approach will ensure the company continues to thrive in a competitive
industry.

3.Findings

Contribution of HRM Functions to Organizational Goals

 Effective HRM strategies like talent management, training, and recruitment directly align
with organizational goals, fostering innovation, employee satisfaction, and productivity.
 Strategic use of workforce segmentation and predictive modeling enables better
alignment of workforce capabilities with business needs.

Northrop's Talent Management Approach

 The company successfully integrates workforce planning with business strategy to

address talent shortages and enhance retention.
 Collaboration with educational institutions helps in building a steady pipeline of skilled
professionals, addressing long-term industry challenges.
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Recruitment Challenges and Benefits

 Recruitment strategies such as campus outreach and structured career development

ensure better alignment between employee expectations and organizational goals.
 Focusing on internal promotions and skill development reduces recruitment costs while
retaining institutional knowledge.

Potential Recommendations for Improvement

 Expanding recruitment to include digital platforms like LinkedIn or specialized aerospace

forums could attract a broader talent pool.
 Leveraging AI for talent identification might improve hiring efficiency and accuracy.

Addressing Emerging Skills Gaps

 Northrop's partnership with schools ensures employees are equipped with future-ready
skills, sustaining innovation.
 Continuous workforce development programs maintain employee engagement and
prepare the organization for future challenges.

4.Conclusion

This assignment underscores the transformative role HRM (Human Resource Management) plays
through its core activities of recruitment to management. The case study highlights real-world
challenges and opportunities, demonstrating the practical application of HR principles to address
organizational needs. For example, innovative recruitment strategies, such as employee referrals,
partnerships, and AI-driven platforms. By aligning human capital with organizational objectives, not
only does HRM adapts to the technological advancements & globalization. Additionally prioritizing
employee well-being, way to connect & grow by contributing more & more innovative idea. As
study reaffirms, that an organization’s ability to attract, develop, and retain top talent through
strategic HR interventions is critical to achieving sustainable growth and successful operational
management
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5.References:

● Armstrong, M. (2017). Armstrong's Handbook of Human Resource Management Practice

(14th ed.). Kogan Page.
● Dessler, G. (2020). Human Resource Management (16th ed.). Pearson Education.
● Kuvaas, B. (2016). Performance Management and Employee Motivation. Journal of Human
Resource Management, 30(2), 89-101.
● Milkovich, G.T., & Newman, J.M. (2014). Compensation (11th ed.). McGraw-Hill.
● Stone, R.J. (2018). Human Resource Management (9th ed.). Wiley.