Role Of A Human Resource Manager

928 WordsSep 11, 20154 Pages
Today’s human resource department requires more input and collaboration from the finance department than ever before. Smaller organizations may combine the two together instead of having two separate departments because both are strategic partners that help maximize an organization. This paper will describe the role of finance in the life of a human resource manager, important financial decisions that human resource managers make which rely on financial information and knowledge of financial tools, and how knowledge of finance within an organization can lead to better managerial decisions. As stated earlier, finance and human resource management work hand in hand with one another. Chaudhary and Prasad stated that HRM (human resource…show more content…
If the hourly rate or salary is lower then expected, the candidate will not take the job offer. If the proposed salary or hourly rate is too high for a position, the organization will be loosing money. Every organization is all about making money; otherwise they will not be in business. That is why it is important to fairly compensate each employee by analyzing their KSAOs and verifying that the amount being compensated is within the organization’s budget. What happens when an organization has awesome employees? In order to retain employees it is important to give raises when necessary, find methods of appreciating employees, and satisfy their wants within an organization. All three of these examples will require some sort of budget that has to be discussed with the finance department. Organizations have annual performance reviews, but at each performance review it does not necessary mean that every employee gets a raise; only a selected few are given raises based on their performance. Now let’s look at productivity for example. At Serenity Dental, the production goal is to produce $120,000 each month. Every month this year except for August, Serenity Dental was able to produce over $120,000. The production for August is lower because the problem could very well be
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