How the finance function interacts with HR

Question 1

7 Stages of the HR Cycle

Answer 1

Recruitment
Selection
Training & Development
Performance Management
Incentives and Motivation
Reward
Termination

Question 2

Donald Kirkpatrick’s four level model of evaluation

Answer 2

Reaction - How the delegates felt about the training or learning experience

Learning - Measurement of the increase in knowledge before and after

Behaviour - Extent of applied learning back on the job implementation

Results - Effect on the business or environment by the trainee

Question 3

Lockett’s barriers to effective appraisals

Answer 3

Confrontation - Feedback badly delivered, differing views regarding performance

Judgement - Appraisal is seen as a one-sided process - the manager is judge, jury and counsel for prosecution

Chat - Lack of will from either party, no outcomes set

Bureaucracy - Purely a ‘form filling exercise’, no purpose or worth

Annual Event - Traditional ceremony carried out once or twice a year

Unfinished Business - No follow up, points agreed not actioned

Question 4

Maslow’s hierarchy of needs (Bottom to Top)

Answer 4

Basic/psychological - Basic salary, safe working conditions

Safety/security - Job security, Fringe benefits

Social - Compatible work group, friendships at work

Ego - Merit pay increase, high status job title, respect of others

Self-fulfilment - Challenging job, creative task demands, advancement opportunities, achievement in work

Question 5

The importance of the finance function working with HR

Answer 5

Cost and benefit of recruiting and selecting new employees

Impact of HR policies, such as reward policies, on the profitability of the business.