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mnj.tiwari
9

Bipin, I do not agree with you, its wrong practice, even i cannot understand that the money come from organisational profits not from individuals.
From India, Gurgaon
mnj.tiwari
9

You must take care of your employees with available resources in keeping mind your organisational goal & vision.
From India, Gurgaon
Balaji Kuppuswamy
4

HR reporting to finance augers the HR team to think more on financial aspect and delivers more valuables to employees.
HR reporting to finance is prevailing in most of MNCs currently. Even german co.s follow the pattern.
kb

From India, Madras
vinodkumar
3

I never asked during interview in my 10 yrs career : "sir, whom I will be reporting to".

I had a similar role in HR where I used to administratively report to Finance and Accounts, and functionally to HR at Head Office. These are the usual things when it happens this way.

Finance & Accounts works on the fixed guidelines and approvals, certification from admin or HR for everything, which is 100% correct. They would look forward for all these documents for any kind of payments internal (staff, or a different department) or external (vendors etc). No deviation from their routine work is tolerable to them; things like expenses on staff welfare would make their eyebrows rise.

But when it comes to internal payments or any kind of benefits to Finance and Accounts department they don’t require the approval or certification from HR. after all HR is reporting to them.

One thing every one must acknowledge that 90 % of people in finance and accounts have the background of a little administration work, and payroll. Most of them start their career from a small organization where in admin, HR and Accounts are merged under one department. Later they join big organizations but still think functioning of HR is same as in their earlier organization where the volume of staff was very less.

Every one has limitations and eligibility defined by the policy, but finance and accounts can fly (flight) or hire (vehicle) beyond eligibility. Audit…? They have approvals from Finance Head and they cannot explain the emergency which made them to….. oh ! and the traveling reimbursement doesn’t require the certification of HR they can see the Policy and certify by themselves.

Since, PF, PT ,Tax, is calculated / intimated by Finance and Accounts. They feel the payroll / Payslip of 100+ staff done on SAP by an HR is just a small effortless thing. They would call it a routine copy paste business.

Time and money spent on Recruitment and job portals is waste of time you have better options like outsourcing.

Induction is not that necessary since new recruits will get acquainted with the time but don’t forget to take the contact address and phone numbers………( would any HR recruit people without these details?) did we asked for induction with bankers or vendors but we are managing or not?

Tax plans? Why ? why it has to be explained to all the staff? People should know their Tax liabilities they should come to us (Finance and accounts) for guidelines, If no we would advise HR to deduct.

End of the year…………………HR is flooded with complaints.

Why ? you should be smart enough to handle these type of things, that’s hat we have an HR otherwise we would have managed it on our own.

At last we (HR) gathered and made a representation to the Sr. HR in Head Office now we are functionally and administratively reporing to HR at HO Things have changed a lot, every little problems solved since we go by policy of course with a human touch.

Now I am not surprised when a candidate asks me during interview Sir, to whom I will be reporting to? Rather I would appreciate he knows more than I do.

From India,
mnj.tiwari
9

Mr. Vinodkumar,
That is the problems which we have to discusse, If everything comes under finance & accounts there having high chances to misuse the resources, becouse of tendency that departmental issues. But if for each and everthing with be well defined by policy there are list chances of misuse.Infact the tendency of the employee will changed. they never try to misuse the available resources. Yes its easy for individuals but company will loosing its values / money. Even this is possible in small organisation only, when we think for a big organisation where is policy driven organisation, its tought to manage this way. Now you can decide that what way you opt.

From India, Gurgaon
cnyanyiwa
You know what guys i think people are misfiring here. Reporting and liasing/consulting are different animals. HR professionals should always report to their superiors of which these are neither Finance nor Accounts professionals. These two or three professions are interwined and for Hr to have his/her wage bill he/she needs to consult the Finance/Accounts people and the reverse is true. Finance/Accounts professional always consult us (hr) in for instance financial statements and paying the statutory levies. Even HR can present their departmental budgets to finance and accounts.So this is more of consulting rather than reporting. Unless of course in some set up where finance/accounts are immediate bosses to HR people, though its very unprofessional and degrading other professions. I care to be corrected.
From Zimbabwe
dks.ica
35

Hi All,
Most popular discussion of the day.......but in spite of the fact that each department having there own importance ........in every organisation there should be a finance department it means without finance department a company can not work but they may work without HR department.
If we consider govt. as a company and ministers as departmental heads situation are same finance minister are more powerful then HR Minister... friends thease are the requirement of the country/company they will have to give more importance to Finance.

From India, Mumbai
adnanalam2
14

Mr. Bipin,
Corporate policies are not a one man show, each and every department head is involved in this process. Obviously comapnies strives to save their costs but at the same time there potential workforce too. And in order to compete the market of course they have to prove that we're best in industry otherwise no way to win the hearts and minds of their people.
It doesn't matter to whom you're reporting but the matter is to understand the policies. How one cannot adhere to policies once they are approved and circulated. The major aspect of Management is to formulate and implement the policies.
If salaries, perks, bonuses are approved how finance guy can interpret? Inspite of heading HR, Finance Manager is reporting to someone else and to whom he'll have to reply for non-adherence of policies.
Best

From Oman, Muscat
raakani
Just to add to a bit on the part of reporting by HR to the Finance, I don't see why such a question has been put up. A company comprises of various units functioning together to achieve a single set of goals-so referred to as the VISION, MISSION and OBJECTIVES of the company. All units has to humbly report to this, and each of the units has to go hand in hand with one another. You cannot simply have HR policies heading south and Finance policies heading north and not to say the co-operate policy heading east. All has to head one direction. Meaning the HR and Finance and all other respective departments must have their clear "COMMUNICATION CHANNELS" set up so that one policy will not be in the way of the other. In modern terms there is no more "reporting". Its not relevant in context now. The new term is "Consulting", and this is very powerful when done in the right way.
hope i didn't say too much and to tell u this is my first ever post on CiteHR

From Maldives, Male
abhishekchauhan99
Dear,

Before I put my view forward I would like to recall to all of the fellow members that HR is not an authoritative function but mere a coordinating agency among various departments. Many people make a mistake at this very initial stage of understanding.

Now cominf to the point, there is no harm HR people reporting about their activities to Finance/accounting department. But here again I would like to modify the statement. HR department should function in coordination with the finance department and not exactly report to them. There is no point to hire a person or conduct a training session that goes to the right hand side of the balance sheet.

Being an HR this practice, which is indeed good, will only add to the revenue side of HR department.

So not reporting but yes in coordination with finance department HR people must carry on their activities and there is no harm in it.

And some of the best companies follow this practice, where not only recruitment but also traing data in (Man-hours) is feed to them.....

From India, Delhi
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