Perspectives on Human Resource Management

RUNNING HEAD: FINANCE AND ROLE OF HR MANAGER 0
FINANCE AND ROLE
OF HR MANAGER
Student’s Details-
JANUARY 10, 2020

FINANCE AND ROLE OF HR MANAGER 1
Introduction
Human Resource Manager is involved in the undertaking the activities of recruitment
and undertaking the decisions for the financial longevity of the organization (Oh, Blau,
Han, & Kim, 2017). There is great role of finance in the decision making of HR in the light
of the facilitation of financial information. Here, the paper has discussed the role of finance
and use of financial information for the managerial decision making by the HR manager and
the value of knowledge of financial information.
Role of Finance in the Life of HR Manager
There is role of finance in the life of HR manager as finance is required for the
process of recruitment and determining the cost benefits of recruitment (Schiff & Schiff,
2016). It also specifies that finance is required for the hiring new talent into the organization
and management of the existing employees through spending a significant sum of money in
the for increasing the efficiency of the human resources. HR mangers use finance not only for
deciding the salary of the employees but also making investments into the motivational
programs for the employees. HR manager need to make analysis of the requirement of money
for carrying out various activities under the human resource function.
Apart from this, finance is required for the human resource planning made by HR
manager of an organization that can lead to the attainment of the organizational goals.
Finance is required for the HR functions such as the recruitment, selection and training and
development of the employees (Higgins, 2014). In some way, HR managers need finance
for the making promotions, giving bonus and providing allowances as per the policies of the
organization. It is important for the HR manager to make the forward planning of the HR
activities which requires the facilitation of the finance that can later be used for the adequate
planning and training budget program. The department of finance and Human Resources go
hand in hand wherein the various actions are undertaken for the continuous management of
the human resources in an efficient way.
Use of Financial Information and Financial Tools
HR decisions highly rely on the financial information and financial tools that provide
assistance to HR managers to undertake several decisions for the proper management of
workforce through ensuring all the strategic aspects of the organization (Storey, 2014). The