The Finance

Function and
Human Resources

BSCI/BSST 121: study unit 05

Chapter:11
 Study Unit Learning
Outcomes

Describe:

• Finance function’s relationship to human

resources

• Main role of human resources

• Areas of interface with finance

• Key performance indicators

Introduction:

Human Resources’ main activities include but

are not limited to:

 Staff acquisition
 Staff development
 Performance management
 Human resource activities

• Selection ensures that the organisation obtains people

with the qualities and skills it requires
• Appraisal enables targets to be set that contribute to
the achievement of the overall strategic objective of the
organisation
• Training and development ensures that employee
skills up to date and relevant
• The reward system should motivate and retain valued
staff.
• Performance depends on each four components and
how they are coordinated
HR Planning

HR plans concern the acquisition,

utilization , improvement and return
of an enterprise’s human resources
 Recruitment
The recruitment process
Perform job analysis: The process of collecting, analysing and
setting out information about the content of jobs in order to
provide a job description and data.
Job design stage is the development and outlining of
competencies within a competency framework.
Develop a job description: Set out the purpose of the job and
where it fits in the organisation’s structure.
Advertising job vacancies: The organisation should advertise
the job vacancy
Initial screening: The final process in the recruitment phase is
the initial screening of candidates
 Selection
Consist of procedures to choose the successful
candidate from among those made available by
recruitment efforts.

• Application forms: are used to obtain relevant

information about the applicant and to know more
about the employee
• Job interviews: There are different kinds of interview,
these are used to ensure the best candidate is chosen
for the job
• Testing of candidates: These are used to supplement
interviews or select applicants for interviews.
(Psychological and personality tests, Cognitive tests,
Proficiency tests, Psychometric tests, Medical tests)
• Group selection methods: consist of a series of tests,
interviews and group situations over a day or two
• Assessment centers: involves observing the
candidate’s behaviour and judging
• References: This is done by contacting candidates'
 HR: Development and training

• Ensuring the organisation meet current Human resource development strategy

The overall and future performance activities
purpose of performance objectives • Organisations often have a training and development
human • Continuous improvement of the strategy based on the overall strategy for the business
resource performance of individuals and teams
development
• Maximizing people's potential for
includes
growth
>Planned approach and training
• This is adopted to ensure that the training offered
meets the real need of the organisation

>Personal development plans

• This ensures that the person’s performance is improved,

and they obtain skills they will use in the future
Methods of development and training

• Formal training
• On-the-job training

Benefits of development and training are( ORGANISATION)

• Minimize the learning cost of obtaining the skills the organisation Benefits to Individual
needs • Enhances portfolio of skills
• Psychological benefits
• Lower cost and increased productivity • Social benefits
• Fewer accidents and better health and safety • The job

• Less need for detailed supervision

• Flexibility
• Change management
• Corporate culture
• Motivation
9
Career Career management Succession planning
management and • (it affects both the individual • They can plan a logical
and organization ) progression for
succession individuals through the
• Ensures that the
planning organisation has a reserve
hierarchy over time
of managers in waiting • The objective is to
• Ensures that the correct ensure suitable
replacements
training is provided to
enable the correct abilities
for the job
HR: Appraisal and performance
management

•Performance management
• The process of getting the best out of
employees

•Performance management is concerned

with 2 area being :
• Creating a work environment and setting that
is conducive to allowing employees to work
• Analyzing employee performance levels and
feeding back into training and development

11
 Rewards and Incentives
Incentive schemes make part of the individual’s rewards
Total reward schemes conditional on results
This recognises that individuals are all different and may not be • Such schemes need properly organised and
motivated by money. administered appraisals
• Managers and specialists will require a form of
management by objectives, where targets are agreed
This has led to the development of flexible benefit packages.
for the future

Examples of non-cash benefits:

Types of incentives
• Training,
• Performance-related pay: pay is directly related to
• Gym membership,
output produced or targets met
• Flexible working hours,
• Share schemes,
• Bonuses: supplement salary and can act as an
• Working at home,
incentive. They can be administered individually or be
• Health insurance, based on group performance
• Pension schemes,
• Career progression,
• Profit sharing: Employees receive a percentage of
• Childcare voucher,
profits in cash or shares
• Shopping vouchers
Business partnering and key
performance indicators