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

Dear Bipin,
I strongly feel no HR professional should report to Finance. For what GM/ VP HR are there for in that case? We have to maintain our hirearchy level in HR.
Secondly, finance head would only think about cost cutting... i mean from financial point of view.... wheras one of HR's function is to keep employees satisfied through innovative measures.
Mr. Ravi- Pl dont comment as : Finance gives food to company and HR is nothing but skills. If that's the reality then every Tom,Dick n Harry would be in HR. W/o HR, a company can't run smoothly. I am sure you are not in HR, your series of comments proves that.
Deepa

dear
if yoy are real HR then you cant think such type of bogus question.
Please left this type of questions from non HR person like K. Ravi.
dada

HI,
I guess people both in HR and Finance can co-ordinate themselves to-gether in making certain decisions associated with cost, wherein a HR reporting to finance or finance person reporting to HR is not advicable as they would end up in difference in opinion affecting the smooth working of the company. Moreover both finance and HR are support functions of a company and they need to work in co-ordiantion and not get linked in the reporting pattern.
Regards,
Vidhya

Dear Bipin,
I dont think you belongs to SATYAM, Kindly learn from the episode of satyam. HR does'nt have their say, Only top management and fin people will decide whole policy. They keep fake employees in their records and their accounts people processes their salary also without geting any clearence from HR-Department.

There is no final yard stick or any rule that so and so should report to so and so. It depends from company to company. Finally there is no harm in reporting hr to finance provided head finance is senior to head hr. In todays scenerio the finance is given even stearing of the organisation. These days the function of finance is not just keeping accounts. Rathere it involves admn. liason, negotionetc.

HR reporting to Finance!
This depends upon what culture does the organization have? How much importance does employee related matter, OD, T &D, Grievance handling is given over the Finance or MONEY? What vision does TOP Management has? If everything is looked upon with the perspective of money then yes HR has to report to Finance and this is true in many Organizations.
Saurabh

Dear Sakshi,
I think most of the MNC fall under this categories........ they all tend to report to a Finance head....... this is wat been followed in middle east.

Hi,

This has been a great discussion so far. I am presenting my point of view.

I think all the policies and processes are dependent on the vision and mission of the organization. Each department aligns itself to the objectives of the organization.

Based on the alignment, each department provides the budjet for themeselves, may be on a monthly, quarterly, biannually or annually.

Policies are also prepared by the respective departments, but i feel they dont serve any purpose untill they are in sinc with your objectives as well as the rest of the resources in your organization. I think this will be the process followed in any totally aligned organization, irrespective of its size, location or industry.

So each department has its task cut out and yes it will have to be approved by the management, which would include CEO, Head HR, Head finance, etc.

Now whether a HR department can report to a Finance person, i dont think it is wrong.

I can quote an example here, Mr. Mohan Das Pai has worked in almost all the departments in Infosys as he now heads the HR department. He has been successful in all is roles.

My point is that a finance person can also be a good HR person, provided he knows the work involved in HR and vice versa.

I might not completely agree with the point that a finance person will look only at the cost cutting perspective as he/she knows that if it is not employee friendly, then they might also face the same situation some time in his career.

Dear Bipin,
Its not a matter of who reports to whom.
HR policies form a framework for cohesive work atmosphere.
Hr is a part of an organisation, which cannot be sustained by itself (without money), hence it is extremely important that HR policies are framed on the company's financial strengths.
The need is to have a close co-ordination between HR and Finance, for policy making, and with all departments in the organisation in general.
I am at a loss to understand why many HR executives feel it inferior to report to anybody except the very top management.
Hr is suppossed to create Healthy Respect for each employee, not create Harrassed Renegades.
If you look closer at TATA's HR, you will realise that they form the tyres of the carriage(which take the brunt of the humps for a smoother ride for the people in it) and NOT the whip in the hands of the driver.
So, its not whom they report to that matters, its what they deliver that does.
Warm Regards,
Kiran

Yes Mr. Tiwari,
Just see a huge investment companies HR dept was bound by Finance people.......... This shows that money is taken into consideration than the employees welfare..........