Should HR Report To Finance And Accounting……………....????

Dear Bipin,

I am glad that you did not hint on HR reporting to Marketing guys. First of all, why should HR report to non-HR people? It is the not the hierarchical matrix. HR has to coordinate with Finance department at the time of approval and posting of payroll with banks, decision on fixing of % of hike, allocation of bonus, approval for motivation cash rewards, printing of certificates, marriage gifts, annual budgeting and so on.

Each department is a separate entity and one should not dig into other. Finance people always have an eye on 'cost factor' and would not easily allow things to happen. What is must for a HR is a waste of expense for Finance. So the basics of coordination itself is blown off. If the Finance man himself happens to head the HR, then he has no escape. You are the boss in your domain and what would happen if the roles are mixed up? Let me narrate an interesting story.

Three men, a musician, cook and a doctor, decided to exchange their job roles. Musician began to boil water in a mud pot to cook rice. The Ayurvedic doctor went out to purchase vegetables. He looked at vegetables, potato...oh,no... full of gas, brinjal.... brings skin scratches, lemon is too acidic, cucumber is watery, yam... not good for arthritis, .... and after analysis he finally returned home buying nothing.

The cook was trying music with children at home and wanted to see how their voices are cooked for singing. He gave a concoction of various herbs and pastes to strengthen voice. Finally the kids were taken ill with new recipe to their throat.

In the mean time, rice was boiling in the mud pot. Inspired by the bubbling sound, the musician got into 'thal and jathi'. Out of enthusiasm, he played with the serving stick and tapped the pot. Oh! The pot broke and spilled over the fire.

So the moral of the story is 'every one has to look into their own domain of work'. Bipin, your idea may hold good for a small size compnay and if applied to major setup, would lead to chaos.

Regards,

Chandru

Why are we getting in to reporting structure? HR and Finance should have a good co-ordination and should work as a team. HR cannot report to finance either finance cannot report to HR as both play different role all together..but definetly Support and co-ordination is requied from both the deparments.

Hai,
we cannot generalize or conclude saying who should report to whom. It depends on the structure of the organization ans also the size. In a smaller organization where very thin workforce is there, it is not the department that matters but the person responsible, may be a senior in the organization. Ours is one such having a very thin staff of 12 members and in this case it is not the post or portfolio we hold but the presence of the person in- charge who reports to boss.

Dear Mr. Chandru,
I fully agree with your view, but there are many organisation were the HR person have to Report to the head of Finance and Admin. For eg A HR Manager Reporting to Head- Finance and Admin.
So what ever decision are been taken is based on cost factor. Polices are not employee friendly and they are least bothered abt employee welfare.

Hi Bipin
well first of all i would like to make one thing clear that HR is one of the sub system similar to finance that forms the whole organization system. both play entirely different roles and are inter dependent also .every functional unit has to "co-ordinate" with the finance department when it comes to financial matters but that does not mean the functioning of the individual department is directed by the finance department.
If finance department would ditate terms then not only Hr even mktg ,log, every one will have to rport to the fincis,which shall shatter the basics of organization.
and as for as your example to mr ravi the policies in the organization are prepared keeping the previous policies , their pros and cons, and the organization viability in mind so that has nothing to do with the individual who prepares it and his departmental objective
This is my view and i am open for your critics

Dear Mr. Bipin,

Of course it is a debatable point so far as reporting part is concerned i.e. who is to report to whom (Especially, should HR report to Finance ?). No doubt both HR as well as Finance of every organization being the responsible departments, therefore, there shouldn't have any clash of egos inter se at the cost of organizational growth & interest. HR is normally suppose to interfere in every administrative activities being carried on and to be carried out by every department of the organization , but on the other side Finance deptt. has the authority to exercise their interferences while financial interest (s) is / are involved. E.g. in my organization, every month an HR Report is issued addressing the head of the Finance deptt. taking into account certain facts & figures available with the HR deptt. for the previous month. Basing on the said monthly HR Report, salary statement is prepared and released accordingly on the "Pay Day". Such kind of co-ordination is absolutely essential for the larger interest of any organization. Thank you.

Biswajit Pani

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Hi Bipin
Rather than using a term reporting better we can make it simple like an HR laising with Finance team, so that we can avoid the inferiority feelings.
How ever the point of contact for all the employees will be the HR so its his responsibility that he clarifies all the queries that the employees have.
I hope there is no harm in HR laising with Finance team to sort out the issues.
Cheers,
Amjad

Dear All,
Below are my observations
HR Department cannot function perfectly if there is no Finance department.
Eg : recruitment Costs, Induction costs, Training costs and appraisal costs etc needs to be communicated with Finance department.
So HR Must communicate the financial aspect to finance department.
Thanks
Soju

I think HR Manager must report to top Management but should coordinate and hand on hand work with Finance peope regarding expected funds for any recruits budget or employee benefits.
Finance people thinks more on monetary matters rather than employees affairs.
Nadine