The strategic goal of HR service is to increase the company’s value by improving the efficiency of management of the most valuable resource of any organization, its capital – people. A modern HR director should understand the specifics of his company’s business as a whole and share the mission and strategic goals of the organization (Subramony et al., 2021). Modern HR is a cross-function that overlaps with all company areas, from finance to sales.
There are six main blocks of expertise in the activities of HR. The first function of this specialist is recruiting. This includes the search and interviewing of candidates and the selection and adaptation of personnel. Unprofessional recruiting can lead to disastrous consequences, such as the firm’s bankruptcy. An HR specialist must be able to distinguish a person who is willing to work to avoid a large personnel turnover.
The second function of the HR specialist is personnel assessment. The HR specialist evaluates actual results and competencies (Shakil et al., 2019). In order to understand whether the specialist achieves the results, HR must first develop key performance indicators, which determine the effectiveness. Moreover, competencies are the knowledge, skills, and abilities that manifest in behavior. The third function is staff training and development. There are many different systems: a corporate university, external training, and internal training system. Without proper training of specialists, the company will not achieve highly effective production. The fourth function is the system of salaries, bonuses, and compensation. HR is obliged to monitor the level of salaries and bonuses. It does not necessarily mean that salaries should be raised if they are below the market level. HR can compensate for the level of salaries with something else. For example, health insurance or discounts on products. In this way, employees will be motivated to perform better.
The fifth function is to maintain the company’s corporate culture. Corporate culture includes such things as the mission and vision of the company and social responsibility. Every corporate culture and social responsibility action should coincide with the marketing strategy. This information should also be communicated to the employees – they are the carriers of the corporate culture. If a company’s corporate culture does not differ from its competitors, the employees will not consider their work important. They will go to those who pay more or give better benefits. The sixth function is interaction with the CEO. A general director is also a person who can get tired, and he needs a partner to manage the team. Signaling out problems and suggesting ways to solve them is a straightforward task for high-level HR.
The main purpose is to determine the quantitative and qualitative need for personnel to ensure the current and future productivity of the enterprise. The specific definition of the need for personnel is a calculation of the required number of employees by their qualifications, time, employment, and deployment by the enterprise’s current and future development objectives. The calculation is based on comparing the calculated need for labor and the actual supply state on a certain date. It is the information basis for making managerial decisions in attracting personnel, their training, and retraining. At the same time, it is necessary to distinguish between the total need in personnel, which is the number of personnel that the company needs to perform the planned volume of work, and additional need, the number of employees that are needed in the planned period in addition to the available number of the base year, due to the current needs of the company.
In a market economy, the role and importance of the enterprise’s employees and the mechanism of personnel management are increasing. Modern enterprises have to adapt to the conditions of market relations and competition. Therefore, the factors determining success in the market are simultaneously the survival factors of the organization.
Because the company operates 24 hours a day, Orange Motorway Services Ltd. needs more staff to work in shifts. Namely, several secretaries, bankers, managing directors, commercial directors, marketing directors, financial directors, group financial controllers, and operations directors will be required. It is necessary to expand the firm’s functionality by adding a cafe, coffee shop, and grocery store to increase its competitiveness. The customer lounge area is important because the firm should be focused on customer comfort. The company should not forget about the staff working on the above innovations and the cleaners.
I want to provide a sample CFO position at Orange Motorway Services Ltd. The CFO is the most important assistant and business owner. It is a vital managerial link, responsible for the movement of money in the company and constant replenishment in the form of dividends: “liquidity management is usually at the top of the CFO’s agenda” (Florackis & Sainani, 2018, para 2). Digitalization is essential if a business is to remain competitive in the marketplace in the face of advances in information technology (Möller et al., 2020). I have identified the main responsibilities of the CFO, which include controlling the payment of bills, ensuring financial stability, increasing the company’s profits, and properly distributing the firm’s money.
The CFO works closely with many departments of the company (accounting, sales, warehouse, and production) and coordinates their work. He regularly reports to the CEO and informs the owners of the situation. Under the CFO may be financial and economic departments, accounting, auditing, HR, and IT services. The Chief Financial Officer shall be liable for improper performance or failure to perform his/her job duties as provided by this job description. Offenses committed in the course of his/her activity and causing material damage to the company are undoubtedly the responsibility of the CFO. The Chief Financial Officer belongs to the category of executives (Ojeka et al., 2019). A person with higher professional (economic) education and at least five years of work experience in the financial activity organization is appointed to the position of CFO.
The financial director must know the legislative and regulatory documents defining the requirements for the financial and economic activity of the enterprise. The state and prospects of development of financial markets and markets for the sale of products (goods, services, works) is an integral part of the requirements for a specialist. Thus, the financial director is a very heavy position that requires many skills and abilities. In digitalization, a specialist must have the appropriate skills to work with computer technology.
Thus, the company must recruit personnel who can ensure the efficient and quality performance of tasks. Especially important is the position of financial director, so it must be given special attention. For the successful promotion of the company, it is necessary to update the technical equipment and expand the line of business according to the customers’ wishes. Only after these actions Orange Motorway Services Ltd will be able to remain competitive in the growing market.
Florackis, C., & Sainani, S. (2018). How do chief financial officers influence corporate cash policies?. Journal of Corporate Finance, 52, 168-191. Web.
Möller, K., Schäffer, U., & Verbeeten, F. (2020). Digitalization in management accounting and control: an editorial. Journal of Management Control, 31(1), 1-8. Web.
Ojeka, S. A., Adegboye, A., Adegboye, K., Alabi, O., Afolabi, M., & Iyoha, F. (2019). Chief financial officer roles and enterprise risk management: An empirical based study. Heliyon, 5(6), e01934. Web.
Shakil, R. M., Hassan, M. A., & Qureshi, M. I. (2019). Understanding the Relationship Between HR Roles and HR Effectiveness: A Conceptual Review. Management Research Spectrum, 9(1), 78-82.
Subramony, M., Guthrie, J. P., & Dooney, J. (2021). Investing in HR? Human resource function investments and labor productivity in US organizations. The International Journal of Human Resource Management, 32(2), 307-330. Web.