The Connection between Human Resource and the Finance Department

TheConnection between Human Resource and the Finance Department

TheConnection between Human Resource and the Finance Department

Although the Human Resource and the Financedepartments do not execute the same mandate, they have a greatassociation in implementing the various objectives of anorganization. While the Finance department manages the financialperformance of a firm, the Human Resource department managesemployees as well as ensures the retention and motivation of theseemployees (Kehoe &amp Wright, 2013). Consequently, the Financedepartment assesses human capital as an outlay. In this regards, theconnection between the two departments arises especially in sharinginformation and maintaining joint accountability for projects.Traditionally, people have viewed the contributions and objectives ofeach department as different and predisposed to different businessstrategies. Nonetheless, this view is changing today. In fact, thetwo departments often find their goals and findings overlapping todaydue to paradigm shifts in employees’ roles and performances. Inaddition, today’s firms relate all their business to profitabilitythus, all employees must devote to implementing the same objective.

Friction between the two departments occursfrequently thus, managers need to cultivate a harmonious balancebetween the departments as well as understand the changing landscapeof business. In fact, opportunities exist for the two departmentsfrom which a firm can choose the most viable advice from a set ofconflicting advice (Kehoe &amp Wright, 2013). A total rewardstrategy has become the most important opportunity for thedepartments since despite the departments’ varying priorities theysee the strategy as offering a competitive edge in recruiting andrewarding employees. In this regards, the two departments can helpeach other through communicating performance assessment information.Today, the Finance department is the most important source ofperformance assessment data as the data it collects on productivity,earnings, and customer satisfaction provides insight into staffingneeds. In addition, the departments can collaborate in cultivatingthe best practices as well as developing Financial/HR liaisons toassist HR in initiating projects. Conclusively, it is imperative forthe Finance and HR departments to collaborate, break down barriers,and communicate actively and effectively to ensure greaterinteractions in future.

References

Kehoe, R. R., &amp Wright, P. M. (2013). Theimpact of high-performance human resource practices on employees’attitudes and behaviors. Journal ofManagement, 39(2), 366-391.