Financial and Managerial Aspects in Human Resource Management: A Practical Guide
There is an increase in the demand for human resource (HR) professionals to evolve from the traditional payroll and recruitment functions towards adapting to the complexities of managing employee productivity and wellbeing (Mone & London, 2018). The former focusses mainly on employees as a cost item, while the later considers employees as a resource that has the capacity to improve and achieve an organisation’s objectives if managed properly (Collins, Wood, & Szamosi, 2018). Understanding that employees are important for the actualisation of an organisation’s objectives, HR professionals are increasingly getting involved in key business decisions in some organisation from the onset to provide HR-relevant information (Brewster, 2017). In response to this increasing demand, professional bodies like the Chartered Institute of Personnel Development (CIPD) updated professional maps to ensure that HR professional training is broadened to cover the key skills and knowledge on HR. Commercial drive with a strong insight focus are the core behaviour required for HR professionals.
It is therefore important that HR practitioners have the relevant managerial and financial accounting knowledge to be able to make meaningful contributions to business decisions. This book recognises that HR professionals’ roles are increasingly getting strategic with organisations depending on HR professionals’ expertise. Based on the CIPD professional map (2019), this book is the first of such text to respond the call from professional bodies and address the broadening managerial and financial aspects in HR management (see Table 1). The book will help to develop financial knowledge and skills for managers with people management responsibilities in the public, private and third sectors. The book is also useful for students at both undergraduate and postgraduate level of study and may also serve as a reference material for HR professionals. On successful completion of learning, students should be able to develop a comprehensive understanding of financial terminologies and context and how HR-related decisions impact an organisation’s financial performance. This book will explain common financial terms, explore and analyse the financial statements, and introduce and evaluate tools used in planning and implementing financial decision-making.
This book therefore is divided into two sections with the first section covering issues in financial accounting. The discussions are presented to enable the reader to understand how an organisation is viewed externally and how the financial reports are derived (Director, 2012). The second part of the book focusses on the practical management aspects and present management accounting decisions that are undertaken by HR professionals. Each chapter in this section provides critical discussions on topical issues and cover a wide range of financial-related aspect in people management and organisational change. Addressing financial-related aspects are important as HR practitioners need this skill and knowledge to make business cases for resources required for HR operations (Brewster, 2017). Also, with the challenging business environment, organisations have to make decisions that will keep their operations running. There are increasing rates of redundancy and redesigning of work to soothe remote working (CIPD, 2020). The book covers relevant topics like managing redundancy, managing family-friendly policy and managing learning and development cost. These issues are significant for managing employee relations. One of the unique features of this book is to encourage reflective learning and there is a tailor-made end of chapter revision exercise provided for each chapter to enable learners reflect on the learning objectives. The content of this book shows that it is relevant and timely for HR management students and professionals. To bridge the financial and managerial sections, the book presents a unique chapter that is geared towards understanding how HR functions relate to accounting functions. Reflecting on over 35 years of practice and teaching, Simon provides insights into the contextual issues that influence the practice of HR and finance in the United Kingdom.
The contributors in this book are drawn from several quality universities in the United Kingdom with different backgrounds. In addition to having years of industry and teaching experience, the contributors are recognised with teaching and professional qualifications from their different disciplines. This suggests that the book is uniquely placed to provide knowledge to HR students and practitioners alike. Irrespective of the growing demand for HR practitioners to develop business acumen and commercial awareness, we are not aware of any text that specifically addresses the issues discussed in this book. This book exposes learner to the financial aspects in HR management. We hope that learners will find it both interesting and academically stimulating.
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|December 10, 2021|
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