MANAGING HUMAN RESOURCE

Managing Human Resource

Managing Human Resource

Introduction

Human resources management (HRM) is a term that encapsulates the approach and process of managing people who work for an organization. This work can be either paid or undertaken in a voluntary capacity. HRM frames all people-related matters within an organization, including planning for new appointments, recruitment and selection, induction, performance management, reward and incentive structures, training and development, and when and how to let people go. Effective HRM is a vital component in the operation and success of any organization. Typically only larger organizations, those with more than 100 employees or volunteers, will have a specific human resources staff member or functional area. Therefore, the direct line manager will be responsible for the functions of HRM. While many HRM principles and practices are relatively generic across industry sectors, organizations possess many unique characteristics, notably in aspects of governance, performance measures, incentive structures, public and media scrutiny, and reliance on volunteers.

Discussion

It is not in the budget” is a familiar refrain. An unanticipated major repair, a long-standing grant that is not renewed these events can alter expense and revenue in ways that can compromise the ability of a non-profit organization to fulfil its charitable purpose. A budget gives a projection of revenue and expense over the course of a year. It is a plan that communicates an organization's priorities and a tool that can be used to monitor revenue and expense. A budget is usually prepared by an executive director and approved by a board of directors. Operating budgets, program budgets, cash flow budgets, and capital budgets gets routinely used by public service organizations (Rosen, Gayer, 2008, Pp 77).

Budget Preparation

Operating budgets, often referred to as simply the budget, gets prepared on a cash basis; expense got incurred, and revenue acquired over the 12 consecutive months that make up the fiscal year. Usually, a budget is balanced; that is revenue is equal at the expense. The process of formulating expense and revenue projections often begins 6 months before the start of a new fiscal year. It involves the executive director, program director(s) or department heads, and the chief financial officer (if there is one). Typically, an executive director asks program directors to project expenses for their program. Revenue is estimated after expense. Revenue and expense planning may also involve the treasurer of the board of directors or a board finance committee. The board of directors formally approves the final budget (McKinney, 2004, Pp 33).

The Budget and Managerial Control

As a plan, an operating budget communicates program priorities and sets fundraising goals. A balanced budget communicates a non-profit's intention to preserve its resources. It projects neither a deficit (expense exceeds revenue) nor a surplus (revenue exceeds expense). Total revenue matches total expense. Program or program services along with administrative and fundraising or supporting services is matched with revenue sources. A balanced budget is a step toward preserving a non-profit's resources for future generations. The current generation is generating sufficient revenue to cover current ...