Hasnu et al., (2015) reinforce that budgets quantify organizational plans over a specific amount of time and are frequently used to monitor and control an organizations progress as it represents their financial goals (pg.48). With this in mind, it can be implicated that a strong relationship exists between budgeting and the HR department but only when human resources departments are directly involved in the preparation and decision of budgets (Hasnu, Jamil & Kazmi, 2015, Pg.48). Budgeting can be applied to several functions that are directly controlled by human resources managers such as training and development, administration, cost allocation and recruitment that once properly mastered can be used to help align human resource professionals
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Budget use, within human resources, primarily consists of the master budget which is defined as the overall financial plan for the human resources department within an organization and successfully resembles the organizations goals (pg.2, CITE). Budgeting, and the master budget in particular, serves as a useful mechanism to help plan and control what areas within human resources in terms of the amount of funds are available, the amount of funds needed to be spent in order to reach a goal, and the current amount of funds remaining after goal is reached. In contrast, human resource managers can use a budget to formally state its goals and performance objectives for a specific time period, such as when a high amount of new hires are required for seasonal positions, or when new training is needed to improve employee’s aspects in certain performance areas. To achieve this as a human resource manager, the master budget requires effective coordination of all activities within the human resource function allowing for adequate decisions to be properly made to increase an organizations effectiveness without harming the financial status (pg.10). To illustrate how this can be …show more content…
When human resource professionals do not have an input in the creation of a budget it creates drawbacks and reduces the likelihood that human resources will be able to take the measures to recruit suitable candidates as funds may not be available. Cohen and Karatzimas emphasize the concept that budgets go beyond the ideas of planning and control for human resources management and serve as a tool that could benefit human resources in developing a strong connection among its various parts, “to measure employees’ performance and control them, to motivate personnel and to enhance communication” (Cohen and Karatzimas, 2011, pg.152). The human resources department is responsible for many different duties and responsibilities such as training and development, recruitment and selection, pensions, and employee benefits thus having to deal with a great amount of finances (Cohen and Karatzimas, 2011). Using the concept and application of budgets allows for human resource managers to successfully control and monitor the different duties and components under their department (i.e., training, recruitment) and make adjustments as necessary in order to reach and fulfil future goals.
Budget use, within human resources, primarily consists of the master budget which is defined as the overall financial plan for the human resources department within an organization and successfully resembles the organizations goals (pg.2, CITE). Budgeting, and the master budget in particular, serves as a useful mechanism to help plan and control what areas within human resources in terms of the amount of funds are available, the amount of funds needed to be spent in order to reach a goal, and the current amount of funds remaining after goal is reached. In contrast, human resource managers can use a budget to formally state its goals and performance objectives for a specific time period, such as when a high amount of new hires are required for seasonal positions, or when new training is needed to improve employee’s aspects in certain performance areas. To achieve this as a human resource manager, the master budget requires effective coordination of all activities within the human resource function allowing for adequate decisions to be properly made to increase an organizations effectiveness without harming the financial status (pg.10). To illustrate how this can be …show more content…
When human resource professionals do not have an input in the creation of a budget it creates drawbacks and reduces the likelihood that human resources will be able to take the measures to recruit suitable candidates as funds may not be available. Cohen and Karatzimas emphasize the concept that budgets go beyond the ideas of planning and control for human resources management and serve as a tool that could benefit human resources in developing a strong connection among its various parts, “to measure employees’ performance and control them, to motivate personnel and to enhance communication” (Cohen and Karatzimas, 2011, pg.152). The human resources department is responsible for many different duties and responsibilities such as training and development, recruitment and selection, pensions, and employee benefits thus having to deal with a great amount of finances (Cohen and Karatzimas, 2011). Using the concept and application of budgets allows for human resource managers to successfully control and monitor the different duties and components under their department (i.e., training, recruitment) and make adjustments as necessary in order to reach and fulfil future goals.