For the large organizations its not appropriate for HR to report to the finance department in fact that is the serious undermining of HR professional . even for small organizations with highly enriched jobs there is no need for finance department to handle HR issues. it should be noted that when HR issues are coined with finance there is a tendency of undermining HR issues over finance and sometimes i don't have to blame the the finance guys because HR is far beyond their competence. Therefore, I conclude by saying that as organisation becomes complex and larger then the HR issues becomes of more strategic