Financial and Managerial Aspects in Human Resource Management: A Practical Guide

At the end of this chapter, learners should be able to:

• Define accounting.

• Explain the objectives of financial accounting/reporting.

• Explain regulatory framework for financial reporting.

• Appreciate why human resource managers should care about accounting.

Define accounting.

Explain the objectives of financial accounting/reporting.

Explain regulatory framework for financial reporting.

Appreciate why human resource managers should care about accounting.

At the end of this chapter, learners should be able to:

• Explain what an income statement is and the items included in the income statement.

• Understand the classification of cost.

• Explain what a balance sheet is and the items included in the balance sheet.

• Write up an income statement and balance sheet.

• Understand the concept of a consolidated account to enable human resource practitioners develop business and commercial awareness skills.

Explain what an income statement is and the items included in the income statement.

Understand the classification of cost.

Explain what a balance sheet is and the items included in the balance sheet.

Write up an income statement and balance sheet.

Understand the concept of a consolidated account to enable human resource practitioners develop business and commercial awareness skills.

At the end of this session, learners should be able to:

• Understand why interpretation of financial statements is necessary.

• Calculate accounting ratios for profitability, liquidity, efficiency, capital structure and investors.

• Utilise ratio analysis to critically appraise an organisation’s published financial statements.

• Explain the limitations of ratio analysis.

Understand why interpretation of financial statements is necessary.

Calculate accounting ratios for profitability, liquidity, efficiency, capital structure and investors.

Utilise ratio analysis to critically appraise an organisation’s published financial statements.

Explain the limitations of ratio analysis.

At the end of this chapter, learners should be able to:

• Identify and describe the main functions that fall within the activities labelled ‘accounting’ and ‘finance’ and relate these functions to one another.

• Locate these functions within the structures typical of small and large organisations and relate these functions:

  • (a)

    to organisational success and failure and

  • (b)

    to other business functions.

• For each of the main class of decision made by human resource practitioners identify the information required and the ways in which this information is, in part, generated by the accounting and finance function.

Identify and describe the main functions that fall within the activities labelled ‘accounting’ and ‘finance’ and relate these functions to one another.

Locate these functions within the structures typical of small and large organisations and relate these functions:

• (a)

  to organisational success and failure and

• (b)

  to other business functions.

to organisational success and failure and

to other business functions.

For each of the main class of decision made by human resource practitioners identify the information required and the ways in which this information is, in part, generated by the accounting and finance function.

After reading this chapter, students should be able to:

• Identify why learning and development (L&D) activities are important to organisations.

• Appreciate the cost implications associated with L&D activities.

• Understand different types of learning theories.

• Identify different types of L&D activities.

• Analyse methods of evaluating L&D.

Identify why learning and development (L&D) activities are important to organisations.

Appreciate the cost implications associated with L&D activities.

Understand different types of learning theories.

Identify different types of L&D activities.

Analyse methods of evaluating L&D.

At the end of this chapter, learners should be able to:

• Explain what redundancy is.

• Understand how to manage redundancy.

• Calculate redundancy pay.

• Understand the support available for surviving employees.

Explain what redundancy is.

Understand how to manage redundancy.

Calculate redundancy pay.

Understand the support available for surviving employees.

At the end of this chapter, learners should be able to:

• Understand the meaning of grievance and disciplinary.

• Understand the procedure for grievance and disciplinary.

• Appreciate the critical role of the Advisory, Conciliation and Arbitration Service.

• Understand the step by step guide for the analysis involved in basic award computation

Understand the meaning of grievance and disciplinary.

Understand the procedure for grievance and disciplinary.

Appreciate the critical role of the Advisory, Conciliation and Arbitration Service.

Understand the step by step guide for the analysis involved in basic award computation

After reading this chapter you should be able to:

• Understand what is meant by relocation cost.

• Explain the management and disbursement of relocating costs.

• Critically evaluate the calculation of relocation costs.

• Reflect on the role of human resource managers in relation to the future of the costs of relocation.

Understand what is meant by relocation cost.

Explain the management and disbursement of relocating costs.

Critically evaluate the calculation of relocation costs.

Reflect on the role of human resource managers in relation to the future of the costs of relocation.

At the end of this chapter, learners should be able to:

• Discuss the origin of family-friendly policies.

• Explain the different types of family-friendly policies.

• Explain the importance of family-friendly policies.

• Explore the financial implications of family-friendly policies.

• Understand how to calculate leave payment.

• Explain possible limitations of family-friendly policies.

Discuss the origin of family-friendly policies.

Explain the different types of family-friendly policies.

Explain the importance of family-friendly policies.

Explore the financial implications of family-friendly policies.

Understand how to calculate leave payment.

Explain possible limitations of family-friendly policies.

At the end of this chapter, learners should be able to:

• Explain the major components of executive compensation.

• Understand the role of objectives, costs and risk in designing executive compensation packages.

• Explain the influence of transparency, corporate governance and corporate social responsibility practices on executive compensation in an organisation.

Explain the major components of executive compensation.

Understand the role of objectives, costs and risk in designing executive compensation packages.

Explain the influence of transparency, corporate governance and corporate social responsibility practices on executive compensation in an organisation.