HR Role in Motivating Staff and Financial Management: A Case Study of Nike

This report discusses the HR role in motivating staff and financial management in the context of Nike. It covers motivational theories such as Maslow's Hierarchy of Needs and Herzberg's Motivation Theory, financial functions, sources of finance, and the role of financial managers. The report also highlights the importance of financial management and HR in organizations.

FY021 Introduction to
Business Studies

Table of Contents
INTRODUCTION ..........................................................................................................................1
MAIN BODY...................................................................................................................................1
TASK 3............................................................................................................................................1
TASK 4............................................................................................................................................4
CONCLUSION................................................................................................................................7
REFERENCES ...............................................................................................................................8

INTRODUCTION
The concept of business studies is fundamentally described as field of study basically
supports in dealing of various principles of business, management and economics. Moreover, it
includes various elements including human resource, studies related to organizations,
operations, management etc. The company selected for report is “Nike”. It is basically an
American multinational organization that is active in activities of development, designing, selling
footwear, clothing, accessories and much more. The company was based in 1964 and
headquartered in Oregon, United States. The current report comprises of HR role in order to
motivate the staff. Moreover, it includes theories related to motivation. Lastly, it involves
financial management concept, role of financial manager, value of financial functions among
organization with sources of finance.
MAIN BODY
TASK 3
Human Resource Management: In reference to this concept, it involves the different practices
of hiring, deploying, managing and recruiting the employees within the organization. The
process of human resource management generally includes activity of strategic level which is
essentially carried out by top level management(Zartman, 2022).
Motivation: In reference to motivation process, it generally comprises of different activities such
as initiating, guiding and maintaining the goal oriented behaviours. There are various forces
such as cognitive, biological & emotional forces which basically consequences in activating
behaviour. The institution supports its employees by participating in creating a positive impact.
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Theories of Motivation: In reference to the motivational theory, it includes knowledge and
basic understanding that assists in driving a person towards a particular objective or outcome.
Maslow's Hierarchy of Needs: In reference to this theory, it includes categories of human needs
which basically supports in dictation of individual's behaviour. In case of such theory, it more
often than not presents in form of pyramid. As per the viewpoint of Maslow, an individual
moves to the higher level need when basic needs of organization are fulfilled(Turker, 2018).
Physiological needs: In reference to these needs, it is basically the physiological needs which
comprises of rest, food, water, clothing, health & much more. In Nike , the company offers
sufficient salary and breaks their employees.
Belonging and Love needs: In social needs, it generally comprises of emotional bonds,
friendship, family bonds etc. in case of Nike, the company for the purpose to create a sense of
belongingness carries out various activities and organizes different social events (Acquah,
Agyabeng-Mensah and Afum, 2020).
Esteem Needs: In self esteem needs, it includes needs such as self esteem, ego-driven needs, self
respect & much more. In Nike, the organization reward the staff and employees when they
overstep a target and offer them a better place in organization.
Self actualization needs: In reference to these needs, it basically involves need such as self
fulfilment, skill development, actualization, education etc. In context to NIKE, the organization
offers challenging situations and positions for the purpose to achieve success and look for growth
opportunities.
Herzberg's Motivation Theory: In case of Herzberg's motivation theory, it is also known as
Two factor motivation theory. This theory basically argues that there are separate sets of
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exclusive factors in the workplace which results in causing dissatisfaction and job satisfaction.
Basically these factors results in encouragement of the job satisfaction in context to self
actualization and self growth (Barrena‐Martinez, López‐Fernández and Romero‐Fernández,
2019). In reference to the two-factor motivational theory, it has become one of the most
commonly used type of framework when it comes to job satisfaction research. In context to this
theory, it basically considers two types of factors which could detract or add from job
satisfaction including motivation and hygiene factors. In case of hygiene factors, these are
basically related to “need to avoid unpleasantness”. The motivation factors basically lead to job
satisfaction due to the need of self-actualization and the need of individual for self growth. As
per the believe of Herzberg, there are various motivation factors which are important for the
purpose to improve the job satisfaction which includes advancement, Possibilities for growth,
Responsibility, achievement, the work itself and much more.
In reference to Nike, the organization offers voluntary pay and matches employee
donations which generally means the company gives the employee $10 per hour which they can
donate to the company they choose. For Nike, the concept of compensation is considered to be
very important for the purpose to make the employees happy. In case of Nike, the organization is
basically the company that revolves around the concept of motivation. The company always pay
emphasis on influencing and inspiring the employees to face different challenges. They believe
that each employee basically holds great potential. All the employees working in the
organization are encouraged to meet the end objectives and one of the major activity used by
them is group exercise(Pattanayak, 2020). The company also offers paid vacations, product
discounts, insurance and retirement plans which makes the organization quite attractive in the
eyes of employees. Also the company motivate their employees through philosophy which
basically has the power to challenge, influence and inspire the employees on the daily basis. Also
the organization has challenged their employees in the past through brainstorming sessions and
group exercises.
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TASK 4
Financial Management: In context to financial management, it is basically described as
business function that generally deals with investment of different financial resources in a
method that supports in achievement of return on investment or greater business success. The
process of financial management basically comprises of organizing, professional plans and
control of all the various transactions in a organization (Riinawati, 2022).
Importance of financial functions within the company
The finance function basically refers to the various functions which are basically
intended in order to manage and acquire the different financial resources for the purpose to
generate profits and revenue. It basically produces different financial resources and data and also
contributes to the decision making activities, planning and also productivity of the different
business functions.
In context to organizations, the main objective of the finance function is to support the
decision making and business planning. In addition to that, it helps in providing the various
financial information that other business functions basically requires for the purpose to operate in
efficient and effective manner(Block, Hirt and Danielsen, 2018). When it comes to small
business, they do not have enough resources for the purpose to support a separate finance
function. With the help of finance function, it basically helps in monitoring the different changes
which are happening within the company both externally and internally. One of the most crucial
role of the finance function is to basically ensure that all the records of the finances are kept up to
date and highly accurate.
Role of financial manager in a company
Financial managers are basically involved in overseeing the financial health of the
company and also ensures continued viability. In reference to finance manager, they supervise
important functions such as management of expenses, monitoring flow of cash, providing
accurate financial information or determining profitability. A financial manager is basically a
individual who basically takes care of function of the company related to finances. The main
goal is to have funds are utilized in the most efficient way.
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Main role of financial manager
Raising of Funds: For the purpose to met company's obligations, it is very significant to have
liquidity and cash. A organization could raise funds through debt and equity. In case of financial
manager, it basically involves the responsibility of financial manager to decide ratio between
equity & debt and also it is very significant to maintain a balance among debt and equity
(Marqués, García and Sánchez, 2020).
Allocation of funds: In case funds, these basically raised through channels and it is very
important to allocate these funds in such a way that they could be optimally used. For the
purpose to allocate the funds in the best way, it is very important to consider the mode of funds,
growth capability, size of the organization and status of different assets. These financial
decisions basically impact the activities of managers.
Profit planning: It is considered to be one of the most important function for any organization.
Earning of profits is considered to be very important for the sustenance and survival of the
company. In profit planning, it basically involves use of profits generated in organization.
Understanding capital markets: In financial manager, it involves clear and better
understanding of the capital market. When the different types of securities are traded on stock
market, it basically comprises of huge amount of risks. Therefore, it is very important for the
financial manager to calculate and understand the different types of risks involved in the trading
of the debentures and shares (Bapat, 2020).
Sources of Finance
Sources of finance for the company are basically debt, equity, retained earnings,
debentures, letter of credit, euro issues, working capital loans and venture funding. All these
types of sources of funds are basically used in various situations. In context to organizations,
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there are basically two types of sources of finance which can be categorised as long term and
short term.
Short Term Sources: Such type of finance basically involves those who means a period of of
less than one year. In context to main sources of short term external finance it basically
comprises of debt factoring, bank overdrafts and trade credit.
Bank Overdraft: It is basically a imbalance on bank account. In case of bank, they allows a
organization to withdraw its account up to an agreed maximum limit.
Trade Credit: In context to trade credits, most transactions among organisations are on credit
basis where purchasing organization is given time for the items received within three months.
Debt factoring: In case of firms, they basically maintain records of money owing in debtors'
book. The main benefit is that a organization get immediate liquidity but loses a percentage of
value of its debts.
Long term sources: In long term sources, it basically denotes a time period of over five years.
It basically comprises of share finance and debt. Such sources of long term external debt finance
generally involves business angels, loan capital, venture capital, subsidies, share capital and
much more.
Loan Capital: In loan capital, it is fundamentally borrowed from a bank which basically subject
to regular interest payment. In reference to interest, it can be fixed or variable. In reference to
variable interest rates, it basically offers less cognitive state as percentage interest varies with
government base rate.
Equity finance and share capital: In case of limited companies, it basically issue shares in
order to raise finance. The value of shares is basically shown in balance sheet of company. The
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share capital involves permanent capital because funds are never paid back unless organization
goes into liquidation(Finkler, Calabrese and Smith, 2022).
Additional sources of long Tern Finance: There are various additional sources of long term
finance which comprises of subsidies, form of aids and grants. In reference to Nike, the sources
of raising funds used by the company involves equity financing and debt financing. In reference
to debt financing, the company would have to borrow funds for the purpose of global expansion
from the domestic securities markets or the banks.
CONCLUSION
From the report, it can be reason out that human resource and financial management
play a very crucial role in organization. Also, it can be determined that the various motivational
theories and HR theories play a very essential role in the company when comes to motivating
employees. In addition to that, it also assists in better understanding of concept related to
financial management and the various sources of finances used by the organization in order to
raise capital.
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REFERENCES
Books and Journals
Acquah, I.S.K., Agyabeng-Mensah, Y. and Afum, E., 2020. Examining the link among green
human resource management practices, green supply chain management practices and
performance. Benchmarking: An International Journal.
Bapat, D., 2020. Antecedents to responsible financial management behavior among young
adults: moderating role of financial risk tolerance. International Journal of Bank
Marketing, 38(5), pp.1177-1194.
Barrena‐Martinez, J., López‐Fernández, M. and Romero‐Fernández, P.M., 2019. The link
between socially responsible human resource management and intellectual
capital. Corporate Social Responsibility and Environmental Management, 26(1), pp.71-
81.
Block, S.B., Hirt, G.A. and Danielsen, B.R., 2018. Foundations of financial management.
McGraw-Hill Education.
Finkler, S.A., Calabrese, T.D. and Smith, D.L., 2022. Financial management for public, health,
and not-for-profit organizations. CQ Press.
Marqués, A.I., García, V. and Sánchez, J.S., 2020. Ranking-based MCDM models in financial
management applications: analysis and emerging challenges. Progress in Artificial
Intelligence, 9(3), pp.171-193.
Pattanayak, B., 2020. Human resource management. PHI Learning Pvt. Ltd..
Riinawati, R., 2022. Financial Management at Muhammadiyah Educational Institutions in
Banjarmasin. Budapest International Research and Critics Institute (BIRCI-Journal):
Humanities and Social Sciences, 5(1).
Turker, D., 2018. Social Responsibility and Human Resource Management. In Managing Social
Responsibility (pp. 131-144). Springer, Cham.
Zartman, I.W., 2022. 1 Introduction: African Traditional Conflict “Medicine”. In Traditional
cures for modern conflicts (pp. 1-12). Lynne Rienner Publishers.
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