HRM & Finance Flashcards
Recruitment and selection of staff
Investigating trends in the current labour market. Forecasting future staffing needs & identifying future skills required, providing induction training
Role of Human Resources
Recruitment and selection of staff, promoting a corporate culture, managing staff welfare, managing employee relations
Promoting a corporate culture
Sharing the mission and vision, facilitating communication systems, providing CPD (continuing professional development)
Managing staff welfare
Team-building
providing fringe benefits
work-life balance & health skills
Managing employee relations
Designing, implementing & managing appraisals, dealing with discipline & grievances, managing redundancy
Objectives of HR
See sheet
Role of HR department
FACES
Facilitator, Auditor, Consultancy, Executive, Service
HRM: Facilitator role
HR staff must provide or facilitate training to other members of staff in the organisation
HRM: Auditor role
HR staff must monitor and report on how effectively individual staff and departments are following HR polices and procedures
HRM: Consultancy role
HR staff must provide specialist guidance and information to managers on how to deal with particular staffing situations
HRM: Executive role
In this role, HR staff assume the role of ‘resident expert’ in all staffing matters
HRM: Service role
HR staff must provide useful information and to be able to do so must keep up with current legislation and other changes that may affect staff
Role of Finance
See sheet
Uses of financial information to an organisation
To: control costs & expenditure, monitor cash flow, forecast trends, monitor performance, inform decision making
Finance: to control costs & expenditure
Financial info allows managers to identify where costs/expenses have increased in order to help them take corrective action
Finance: to monitor cash flow
A business will pay close attention to cash flow to ensure that it has enough funds coming in to pay bills as they arrive. Producing cash budgets assists with this
Finance: to forecast trends
Managers analyse the firm’s annual accounts over several years to help them plan likely future costs, revenue and profits
Finance: to monitor performance
Managers use the firm’s annual accounts to asses how the firm had performed compared to previous years & competitors. This allows corrective action to be take if problems are found
Finance: to inform decision making
Financial info allows budgets to be prepared for internal uses to assist with decision making & planning. Using ratio analysis allows an organisation to decide where improvements need to be made
Users of financial information
Managers, owners, creditors, employees/trade unions, citizens, banks/lenders, inland revenue, financial journalists
How managers use financial info
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How owners use financial info
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How creditors use financial info
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How employees/trade unions use financial info
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How citizens use financial info
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How banks/lenders use financial info
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How inland revenue use financial info
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How financial journalists use financial info
See sheet
Who wants to use financial information?
Shareholders, management, employees, customers, competitors, government, analysts, creditors/lenders
Why Shareholders want to use financial info:
See sheet
Why management want to use financial info:
See sheet
Why employees want to use financial info:
Interested in viability of business & ability to pay their salaries, want to monitor cash flow
Why customers want to use financial info:
May have ethical/environmental issues, may simply want to know if the company will continue to trade
Why competitors want to use financial info:
Interested in plans for expansion, want to know if business has increased/decreased market share
Why Government want to use financial info:
Want to know future plans for business and how much it is making in order to collects taxes
Why analysts want to use financial info:
Collate information and make comparisons with other business in same industry/research sector for research and statistical purposes
Why creditors/lenders want to use financial info:
Assess the viability of the business and whether it is in a good position to pay back any loans & meet it’s commitments
Effects of ICT on staff
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Effects of ICT on organisation
See sheet
Data Protection Act (1998)
Controls the way organisations can use the data they hold and give certain legal rights to people whose information is stored
The eight data protection principles are:
See sheet
Computer Misuse Act (1990) makes it an offence to:
See sheet
