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Human resources and its affect on other functional areas

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Human resources and its affect on other functional areas The most obvious link between human resources and the other functional areas is in the recruitment of staff. In many areas, departments notify human resources when they have a vacancies and it is up to the HR staff to make sure that this is advertised or placed with the most appropriate source for recruitment and that the paper work is completed and the interviews scheduled according to the company policy. If the vacancy also creates a promotional opportunity, The HR staff will also make sure that the vacancy is advertised internally as well as externally. Once the selection has been made, the HR department will confirm the appointment and prepare the contract of employment. There will be links between different functional areas and HR staff over training events and staff development activities. The training manager will not only be able to advise on suitable opportunities for staff, he or she will also organize internal training events, often with liaison with internal specialists, such as the health and safety officer. Normally the HR department organizes regular induction programmes which all new staff attends together, regardless of which department they will work in. In many specialist areas, the HR function operates in an advisory capacity. It advises managers about employment law and about both employer and employee rights and responsibilities. It checks and monitors that the company's equal opportunity policy is being met. It ensures that all employees are informed about company facilities and welfare policies. It is involved if there are disputes or disagreements which need resolution through the formal disciplinary or grievance procedures. It has a key role in negotiating with union or staff representatives from different departments if any changes are being proposed. As for health and safety, there are obvious links with all areas in the organization. Safety representatives will work in other functional areas and, particularly in more hazardous environments such as production, there will be constant liaison between departmental managers and staff and the health and safety officer. ...read more.


A summary of all the important figures can be obtained quickly and easily and this gives a continuous flow of information, which is very important to managers. Imagine you have a shop selling 50 different lines of clothing. You want to know which items are selling well and which are not. This affects your plans for buying new stock. It may also make you decide to hold a sale to periodically get rid off all 'slow' items. You could only make decisions like this if you knew exactly which lines were the most Profitable. This would be possible if you had access to records on sales which were always up to date. This is possible with a computer package. The information you obtain is known as management information because your managerial decisions would be based on it. In a large organization, it is a job of the management accountant to ensure this type of information is constantly available for managers. The financial accountant, on the other hand is the person responsible for assembling all the accounts information into the format required for the statutory accounts which must be prepared at the end of each financial year. Statutory means required by law. Companies must provide a profit and loss account shows how much profit or loss the company made in the year. The balance sheet shows all the assets (belongings) of the company and their value and all the liabilities (debts) on a specific date. Many companies also produce their cash flow statement as well. These accounts provide information for those who have a financial interest in the company-as well as for the inland revenue which can then check the amount of tax to be paid by the company is correct. Note that the individuals pay income tax on their earnings, where as companies pay corporation tax on their net profit. Calculating the tax liability of the company is also the task of the financial accountant. ...read more.


Finance depends on the buyers of goods checking them on arrival and notifying them if there are any changes or if any deliveries are incorrect. In return, the functional areas are dependant on finance paying their bills relatively promptly. Production doesn't want to telephone a supplier to be told nothing else can be delivered because the last bill still hasn't been paid. Administration The purpose of the administration function The main purpose of administration is to make sure that the organization is to make sure that the organization operates as effectively as possible by performing a wide range of support activities promptly and efficiently. If you think of business as a large engine which is constantly trying to move forwards, then administration represents all the couplings that hold it together. Unless these function properly, then no amount of energy produced in making and selling goods will work, and the business will grind to a stop. If you study the option unit 'administrative systems', you will learn about this function in more detail. Many large organizations traditionally centralized their administration function. In these cases a large administration department provided all the support services needed by the other functional areas. Today administration is often decentralized and each functional area has it's own administrative staff to serve it's own needs. This provides greater flexibility for the organization and better job opportunities for staff, who can transfer between departments to gain more experience and improve their skills. The following are the key areas with which administrative staffs are concerned. * Information handling-the creation, storage, retrieval and transmission of all the documents used by the organization, the receipt, safe storage and monitoring of all the documents received by the organization and all the records held by the organization. * Communications-sending and receiving messages by telephone, fax, email; sending and receiving mail; dealing with customers, collogues and other visitors face-to-face. * Making arrangements-from booking parking spaces for visitors to organizing a foreign trip for a senior manager, from preparing for a small meeting to organizing a large conference. * Obtaining resources-providing stationary stock and other basic office items. ...read more.

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