Mini essay on understanding and interpreting financial information
In the context of today’s competitive global economy the importance of understanding and interpreting financial information is nowadays vital for HR professionals, and there are good reasons why we can consider it so. As I shall argue, being an HR specialist today is not as easy as it may seem, as this job requires more skills and knowledge than ever before.
Today there exist completely new HR roles such as Human Resources Business Partner and Reward or Compensation & Benefits Manager allocated especially in big or global companies. However, traditionally Human resources’ role has been considered as a supportive one, functioning at an operational level (Long, Ismail, Amin, 2010). According to Ulrich (1997), HR practitioner has four roles in order to increase organization’s value. They are the following:
• strategic partner;
• administrative expert;
• employee champion; and
• change agent.
“The influence of the HR department on corporate decision-making may be expected to have increased over the last decade” (Farndale, 2005). Currently the HR department is involved both in operations and in the process of corporate decision-making. The evidence presented here aims to contribute raising requirement to HR practitioners. Today they should know and be able to read and interpret financial data in terms of organizational performance. Having experience, on the one hand, as an HR consultant of recruitment company whose role is to explore and evaluate appropriate personnel for vacant positions in organisations, and on the other hand, as Country manager of a company, I am responsible for performance management, leading people, compiling quarter or annual finance and marketing plans, cost calculation, cash flow control, employees’ motivation through correct salary and benefits (reward strategy). In my company, annual plans regarding the minimum turnover and target turnover are elaborated every year. I face a variety of financial and accounting aspects such as
Today there exist completely new HR roles such as Human Resources Business Partner and Reward or Compensation & Benefits Manager allocated especially in big or global companies. However, traditionally Human resources’ role has been considered as a supportive one, functioning at an operational level (Long, Ismail, Amin, 2010). According to Ulrich (1997), HR practitioner has four roles in order to increase organization’s value. They are the following:
• strategic partner;
• administrative expert;
• employee champion; and
• change agent.
“The influence of the HR department on corporate decision-making may be expected to have increased over the last decade” (Farndale, 2005). Currently the HR department is involved both in operations and in the process of corporate decision-making. The evidence presented here aims to contribute raising requirement to HR practitioners. Today they should know and be able to read and interpret financial data in terms of organizational performance. Having experience, on the one hand, as an HR consultant of recruitment company whose role is to explore and evaluate appropriate personnel for vacant positions in organisations, and on the other hand, as Country manager of a company, I am responsible for performance management, leading people, compiling quarter or annual finance and marketing plans, cost calculation, cash flow control, employees’ motivation through correct salary and benefits (reward strategy). In my company, annual plans regarding the minimum turnover and target turnover are elaborated every year. I face a variety of financial and accounting aspects such as
Bibliography: 1. Farndale, E. (2005). HR department professionalism: a comparison between the UK and other European countries. The International Journal of Human Resource Management, 16 (5). 660–675. 2. Farnham, D. (2010). Human Resource Management in Context: Strategy, insights and solutions. 3rd edition. London. Chartered Institute of Personnel and Development. 3. Long, C.S., Ismail, W., Amin, S.M. (2011). Internal consultation skill and linkage with the critical strategic roles of HR practitioners in Malaysia. Journal of Management Development, 30 (2). 160-174. 4. Watson, G. and Reissner, S. (2010). “Finance Skills”, Developing skills for business leadership. London: Chartered Institute of Personnel and Development. pp.287-349.