Business Report: HR Department, Teamwork, and Financial Management

This report provides an overview of Human Resource Management (HRM) and Financial Management (FM) within a business context. It begins by defining HRM and FM, highlighting the roles of the Human Resource Department, including recruitment, training, record-keeping, and payroll management. The report emphasizes the importance of the HR department in performance management, employee relations, and strategic management. It then discusses teamwork, its benefits such as diverse perspectives and workplace synergy, and collaborative work practices between HR and Finance, as well as Marketing and Finance. The report also explores the significance of Financial Management, its role in planning, fund allocation, and profitability, and includes examples of financial documents like Balance Sheets and Profit and Loss Accounts. The conclusion summarizes the key takeaways, emphasizing the crucial roles of HRM and FM in organizational success.

Introduction to Business

Table of Contents
Introduction to Business..................................................................................................................1
INTRODUCTION...........................................................................................................................1
Human Resource Department .........................................................................................................1
Role and Importance of Human Resource Department...................................................................2
Team Work and Its Importance.......................................................................................................2
Collaborative Work Practices..........................................................................................................3
Financial Management and its Importance......................................................................................4
CONCLUSION................................................................................................................................6
REFERENCES................................................................................................................................7

INTRODUCTION
Human Resource Management (HRM) refers to management of people in an organisation
from their entry into the organisation to their exit from the organisation. Financial Management
(FM) seeks to manage finance of a firm in form of what is invested on its operations and what is
the return on these investments. This report discusses various aspects of HRM and FM like team
work and collaborative working and financial documents.
Human Resource Department
Functional area or department in a organisation that seeks to manage well-being of
employees in an organisation. Hiring, firing, payroll, benefits and compliance of all the state and
central laws and regulations all these responsibilities come under HR department. Along with
these HR department need to manage records of employees and their related details. HR
department also responsible for legal issues, for satisfaction of employees (Cooke, 2016). HR
department ensures that working conditions are according to regulations and employees are not
dissatisfied with their working condition and employees are having all the resources required for
making employees work easy.
On a wider level responsibilities of HR Department are Recruitment and Training, this
attempts to hire employees in organisation and then ensure they are well equipped with
knowledge to perform their tasks and duties. Record Keeping this attempts to recording of details
of employees and their activities and other related concerns in organisation. Payroll and Benefits
this activity of HR department manage payroll and remuneration of employees of the
organisation according to their designation (Enis, 2017). Benefits refers to extra facility and pay
that employees get other than their salary these may be for everyone regardless of their
performance or may be linked with performance of employees.
All these responsibilities are performed by HR department that have two main objectives
ensuring employees are satisfied and management or organisation gets best return on its
investment on employees.
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Role and Importance of Human Resource Department
Human Resource Department important functional area of an organisation. There are
many roles that are played by HR department other than their performing their functions, some
of them are as follows-
Role in Performance Management- HR department plays an important role in performance
management of employees which includes defining goals and expectations, setting performance
measurement criteria and lastly measurement of actual performance against standard
performance.
Role in Employee Relations- HR department's important responsibilities includes compliance
with employment regulations (Cooke, 2016). But HR also plays an important role in employee
relations that ensures that employees have good and harmonious relations with management.
Importance of HR Department is as follows-
Strategic Management- Experts of HR in department manage employees strategically with
knowledge of how employees affect organisation and its success (Trullen and et.al., 2016). HR
department and experts specifically take part in decision-making at corporate level and suggest
what company can do manage its employees in the best way to get the best performance and
return on investments. This helps in improving and enhancing profit and productivity of
organisation.
Employee Engagement- This is very important to ensure that employees are performing best
and organisation is able to utilize their potential. HR department ensures employee engagement
and perform functions that increase and enhance performance of employees in the organisation.
Engaged employees contribute in increasing profit and productivity of the organisation and that
is why HR department is important for employee engagement.
Team Work and Its Importance
Individuals in organisation cannot perform all the work alone and require assistance of
others. Team ensure that all the individuals in organisation who are performing different aspects
of a single task work collectively so that they can assist each other and bring more effective
results. In other words when individuals come together at a platform to accomplish a common
task and achieve common objective. Working collectively includes that employees coordinate
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with other members of team and complement each other and take advantage of each others'
expertise by collective problem solving. There are various reason that state importance of Team
Work which are as follows-
Teamwork offers different perspectives- Individuals when are working together solve their
problem together and this enables to see single issue and problem from different
perspectives(Sridharan and Boud, 2019). Individuals offer varied solution to a single problem
and this also generates many possible solution to a single problem and that contribute in more
effective decision-making.
Team provides workplace synergy- Teamwork promotes cooperation, encouragement and
shared goals and provide workplace synergy. This enables team members to feel greater sense of
accomplishment. Team members are collectively responsible for outcomes received by them and
feed incentives to individual for performing better. This also encourage risk taking and
innovative ideas to perform tasks.
More Learning Opportunities- Teamwork offers more opportunities for learning and team
members can learn from each other and share their knowledge and ideas with others (Sridharan
and Boud, 2019). Sharing expertise of individual also gives positive feeling and motivate
employee to develop themselves., which ultimately benefit organisation.
Collaborative Work Practices
Practices that are performed by two functional areas collaboratively are known as
collaborative work practices. Example of collaborative practices are as follows-
HR and Finance- HR is most important of an organisation without human resource all he other
resources of organisation will become inactive. Which will cost finance department as they have
invested huge amount on these resources (Kuismin and Moisander, 2018). To operate human
resources effectively HR department need finance to manage remuneration and benefits of
employees so that they can work and perform as required. This shows interdependence of these
two departments. This suggest that both these departments work collaboratively. Finance needs
to ensure that they are able to allocate sufficient budget to HR department and HR department
needs to ensure that financial investment for employees and human resources gives best return to
organisation as financial performance of organisation is indicator of its growth and success. Both
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the departments should make collaborative decisions so that they can avoid tensions between
them and can bring best possible results.
Marketing and Finance- Marketing ensures that business survive and grow. In present business
environment marketing is most important factor for success of a business. Success which is
visible in form of increasing financial profits. This states their relationship and marketing
requires finance for its various functions which are allocated by finance department (Kuismin
and Moisander, 2018). This suggests that marketing and finance work collaboratively and
effectiveness of both of them depends on each other.
Financial Management and its Importance
Financial Management can be defined as strategic planning, directing, organising and
controlling of finance of an organisation (Brooke, 2016). It involves that principles of
management are applied at finance of organisation. This ensures that-
Organisation have enough supply of funds.
Shareholders get good return on their investment.
Optimum and efficient utilization of funds.
Creating real and safe investment opportunities.
Importance of FM is as follows-
 FM helps organisation in planning its finance.
 FM assist organisation in planning and acquiring funds.
 Effective utilization and allocation of funds for various organisation operations.
 Contribute in increasing profitability of organisation.
 Ensures economic stability of firms, by employing best practices of investment and its
utilization in organisation.
Examples of Financial Documents
Balance Sheet- Balance Sheet is a report version of the accounting equation which is known as
balance sheet equation where assets always equate liabilities plus shareholders' capital. This
statement is important because it gives information to shareholders, creditors and other
stakeholders about financial stability of the company.
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Profit and Loss Account- This account shows annual profit and loss of a company. It is
prepared to determine net profit and loss of a company. This is an important financial statement.
It is important because it shows operating results of a company (Siminica, Motoi and Dumitru,
2017). It also contribute in controlling indirect expenses and improving profitability. Following
is an example of a profit and loss account.
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Illustration 1: Balance Sheet.
Balance Sheet Example, 2020.
Illustration 2: Profit and Loss Account.
Income Statement vs Profit and Loss Account, 2018.

CONCLUSION
On the basis of above discussion it can be concluded that HR department play a very
significant role in organisation. Activities like resourcing organisation with right kind of
knowledge and skill and then providing them resources so that they can work effectively is
undertaken by HR department. Collaborative working have also been discussed in this report and
it suggests that two departments working together is known as collaborative working in
organisation. Financial management have also been discussed in this report.
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REFERENCES
Books and Journals
Brooke, M.Z., 2016. Handbook of international financial management. Springer.
Cooke, F.L., 2016. Human resource department. In Encyclopedia of Human Resource
Management. Edward Elgar Publishing Limited.
Enis, F.I.T.A., 2017. Human Resource Management and Its Role in Today Organizations.
Human Resource Management. 9(11).
Kuismin, A. and Moisander, J.K., 2018, July. Space as a Mechanism of Organizational Control
in Collaborative Work Settings. In Academy of Management Proceedings. (Vol. 2018,
No. 1, p. 17896). Briarcliff Manor, NY 10510: Academy of Management.
Siminica, M., Motoi, A.G. and Dumitru, A., 2017. Financial management as component of
tactical management. Polish Journal of Management Studies. 15.
Sridharan, B. and Boud, D., 2019. The effects of peer judgements on teamwork and self-
assessment ability in collaborative group work. Assessment & Evaluation in Higher
Education. 44(6). pp.894-909.
Trullen, J and et.al., 2016. The HR department's contribution to line managers' effective
implementation of HR practices. Human Resource Management Journal. 26(4). pp.449-
470.
Online
Balance Sheet Example, 2020. [Online]. Available through :
<https://www.accountingcoach.com/balance-sheet/explanation/4>.
Income Statement vs Profit and Loss Account, 2018.[Online]. Available through :
<http://www.accounting-basics-for-students.com/income-statement-vs-profit-and-loss-
account.html>.
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