Role of HR and Financial Management in Adidas

This report discusses the role of HR and financial management in Adidas. It covers the theories of motivation, financial management concepts, and the role of finance manager. It also discusses the importance of finance functions and sources of finance.

Introduction to Business
Studies

Table of Contents
INTRODUCTION ..........................................................................................................................3
MAIN BODY...................................................................................................................................3
TASK 3 ......................................................................................................................................3
TASK 4 ......................................................................................................................................5
CONCLUSION ...............................................................................................................................8
REFERENCES................................................................................................................................9

INTRODUCTION
Business studies refers to the area of study which teaches the principles of management,
business and economics. It basically combines the elements of finance, accountancy, marketing,
human resource management, organisational studies and operations. It basically provides the
increased understanding of mutual dependence by the system of business and the people also
become increasingly dependent on others. In the present report, Adidas is taken into
consideration(Agormedah and et.al., 2019).Adidas is a German multinational corporation, which
is headquartered in Herzogenaurach Bavaria that designs and manufactures the clothing, shoes
and accessories as well. The present report will cover discussion about the role of HR for
motivating their staff members. In addition to this, the report will cover analysis about the
theories related to HR and motivation. Moreover, the report will cover discussion about the
financial management concept, role of finance manager and significance of financial functions
among the organisation with the source of finance.
MAIN BODY
TASK 3
Human resource management: It basically refers to the practice of deploying, hiring,
recruiting and managing the employees within the organisation. Within the process of human
resource management, it generally includes strategic level activity which has been carried out
through the management of top level of the organisation.
Motivation: It refers to the word motive which means the desires, needs, drives or wants
within the individuals. It is basically the process of stimulating people to actions in order to
accomplish the goals (Fainshmid and et.al., 2020). Within the process of motivation it basically
comprises of different kinds of activities such as biological, cognitive and emotional forces that
results into activating the behaviour. At the organisational level, they motivate their employees
through the participation that creates the positive impact.
Theories of motivation: In context to motivation theory, it basically include the basic
understanding and knowledge which supports in terms of driving the individual towards the
specific outcome or objective.

Maslow's hierarchy of needs: With reference to this theory, it basically include five categories
of needs of human which act as support system in terms of giving direction to the human
behaviour. It is presented in the form of pyramid and according to the point of view of Maslow
the individual move forward towards their higher needs after completion of their basic needs.
Physiological needs: With reference to the lower needs, these are the physiological needs which
comprises of food, water, rest, health, clothing etc. In context to Adidas, the company provides
proper and accurate salary and breaks as well so that they can purchase for the basic
requirements of life.
Belonging and attachment needs: In context to social needs, it basically comprises of certain
parameters such as friendship, emotional bond, family bonds, friendship etc(Huang and Li.,
2019). With reference to Adidas, the company's major focus is towards creating the
belongingness that carries out different activities and also organises different social events.
Esteem Needs: Under the head of esteem needs, it basically include certain needs such as ego
driven needs, self esteem and self respect as well. In context to Adidas, the organisation
rewards the employees and staff members when they exceed the target and also offers better
position within the organisation.
Self actualisation needs: With reference to self actualisation needs, it involves certain needs such
as skill development, self fulfilment, self actualisation, education etc. In context to adidas, the
organisation offers the challenging situations and positions for the purpose of achieving the
success and look for growth opportunities as well.
Herzberg's Motivation theory: Under the case of Herzberg's Motivation theory, this theory is
also known as the two factor motivation theory. This theory basically argues that there are
different sets of factors of exclusive nature in the workplace that results into causing
dissatisfaction and job satisfaction as well. These are the factors which result into
encouragement of job satisfaction into context of self growth and actualisation(Li and et.al.,
2019). With reference to two factor theory, it is one of the most important framework when it
about the job satisfaction research. In context to the theory, it has considered two kinds of factors
that could detract or add from the job satisfaction which includes hygiene and motivation factors.
In the case of hygiene factors, these are mainly related to the need to avoid unpleasantness”.

The factor of motivation basically related to the satisfaction of job due to the requirement
of self actualisation and the requirement of individual personal growth. According to belief
system of there are different factors of motivation that are significant for the the main reason to
enhance the job satisfaction that includes possibilities of growth, advancement, achievement,
responsibility and the work itself etc.
With reference to Adidas company, the company offers matches and voluntary pay
donations of employees that generally means that the organisation provides the employees with
per hour amount that can donate the company it chooses. For adidas company, the concept of
compensation has considered to be very significant for making the staff members very
happy(Peterson and et.al., 2018). Under the head of Adidas, the organisation is basically
revolves around the motivation concept. The organisation has given major emphasis on the
inspiring and influencing the staff members in order to face different kinds of challenges. They
also believe that every employee should hold the higher level of potential. All the employees
who are working within the organisation are motivated towards fulfilling the last objectives and
also one of the main important activity is about the team exercise. The organisation also provides
different kinds of discounts, retirement plans, paid vacations and insurance as well that makes
the organisation very unique and attractive into the eyes of their employees. The organisation
also motivate their employees with support philosophies that basically has the power to
influence, challenge and inspire the workers on the daily basis. With support of brainstorming
sessions and group exercises, the organisation has challenged their employees in their past.
TASK 4
Financial Management: It basically deals with investing with the available resources of
finances in such a manner that higher level of success and return on achievement can be achieved
(Rahe and et.al., 2021). Financial management is also about the organise, plan and controls all
the transactions within the business. It also act the function of business which is related to the
expenses, cash profitability and credit so that the organisation has the means in order to carry out
the objectives into positive manner.

Importance of finance functions within the organisation
The finance function can be defined as the different functions that are intended in order to
acquire and manage different financial resources for the main cause of generating the revenue
and profits. It basically produces different financial resources and data which contribute into
context of decision making activities, productivity and planning of different business functions.
In context to organisation, the main objective of finance function is to support the business
planning and decision making. In addition to this, it support in terms of providing the different
financial information which other business functions basically need for the purpose to operate in
effective and efficient manner(Rossier., 2020). When its about the small business, they do not
have enough resources in order to support different finance function. With support of finance
function, it basically support in terms of monitoring the dissimilar changes that happens within
the organisation both at the internal and external level. There is one more challenging role of the
finance function which basically ensures that all the records of finance needs to be updated and
highly accurate as well.
Role of finance manager in a company
The manager of finance are involved in terms of overseeing the health of finances of the
organisation and also ensures about the continued viability. With reference to finance manager,
they supervise the significant functions such as monitoring the cash flow, managing the expenses
, determining profitability and accurate financial information. The finance manager is an
individual who takes care about all the functions of an organisation which is related to the
finances. The main target is that to ensure about the funds which has been utilised into the most
efficient manner.
Main role of finance manager
There are certain main role finance manager which has been defined into the following
manner:
Raising of funds: It is very necessary to have liquidity and enough cash for the purpose of
meeting out the obligation of the organisation. An organisation can raise funds by equity and
debt as well(Stuss and et.al., 2019).With reference to finance manager, it is basically the
responsibility of finance manager is to decide the ratio between the debt and equity and also it is
necessary to maintain the good balance between equity and debt.

Funds allocation: Under the case of funds, these are raised through different channels and also
it is very necessary to allocate the funds into such a manner that they could be used optimal
manner. For allocating the funds into best possible manner, it is necessary that to consider the
capability of growth, mode of funds, status of different assets and size of the organisation as
well. These are the financial decisions which impacts the activities of manager.
Profit planning: The concept of profit planning basically revolves around the use of profits
which has been generated by the organisation. Earning of profits is very important for the the
sustenance and survival of the organisation.
Sources of finance: The main sources of finance basically include equity, debt, letter of credit
retained earnings, debentures and venture funding (Xie and Li., 2018). In context to organisation,
there are basically two categories of sources of finance which include short term and long term.
Short term sources: These are the sources of finance who are less than one year period of time.
In context to main sources of short term external finance which basically comprises of bank
overdrafts, debt factoring and trade credit.
Bank over draft: It is a line of credit which covers the the transactions if the bank account
balance drops the below zero level and also act as the negative balance on the business bank
account.
Trade Credit: It is a kind of arrangement in order to buy the goods and services on account
without making the immediate cash or cheque payments
Long term sources: These are the sources which denotes the time period of more than five years
and also basically comprises of debt and shared finances. The main long term sources of finance
basically include loan capital, subsidies, venture capital etc.
Loan Capital: Under this head, it is basically borrowed from the bank that is subject to regular
payment of interest. With reference to variable interest rates it basically offers the less certainty
as the percentage interest varies with the base rate of government.
Share capital and equity finance: Within the limited companies, it has ben observed that the
shares have been issued in order to raise the finances. The shares value can be shown into the
balance sheet of the organisation. The share capital is considered to be the permanent capital
because the funds can't be paid back unless the organisation goes into voluntary liquidation.

Additional sources of long term finance: There are different sources of long term finances
which includes form of aids, subsidies and grants as well. With reference to Adidas, the sources
of raising funds used by the organisation which include debt and equity financing. With
reference to debt financing, the organisation have to borrow funds for the main cause of global
expansion from the domestic markets of securities or the banks.
CONCLUSION
The above stated report concludes that business studies plays a very important role in this
business world. It has been concluded that without human resource management and finance
management it becomes very difficult to run the organisation into successful terms. It has been
determined that there are different motivational theories of HR which can be utilised at the
organisational level. At the organisational level, financial management and sources of finances
are very necessary in order to fulfil the targets and objectives of an organisation.

REFERENCES
Books and Journals
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school business studies teachers' concerns. Humanities, 4(4), pp.486-497.
Fainshmid and et.al., 2020. The contributions of qualitative comparative analysis (QCA) to
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pp.455-466.
Huang, K. G. and Li, J., 2019. Adopting knowledge from reverse innovations? Transnational
patents and signaling from an emerging economy. Journal of International Business
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Li and et.al., 2019. Country-level institutions and management earnings forecasts. Journal of
International Business Studies, 50(1), pp.48-82.
Peterson and et.al., 2018. Traversing cultural boundaries in IB: The complex relationships
between explicit country and implicit cultural group boundaries at multiple
levels. Journal of International Business Studies, 49(8), pp.1081-1099.
Rahe and et.al., 2021. How users approach novel media products: Brand perception of Netflix
and Amazon Prime video as signposts within the German subscription-based video-on-
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Rossier, T., 2020. Accumulation and conversion of capitals in professorial careers. The
importance of scientific reputation, network relations, and internationality in economics
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Stuss and et.al., 2019. Competences of graduates of higher education business studies in labor
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Xie, Z. and Li, J., 2018. Exporting and innovating among emerging market firms: The
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