The Business Literacy for HR Professionals Series educates human resource professionals in the principles, practices, and processes of business and management. Developed in conjunction with the Society for Human Resource Management, these books provide a comprehensive overview of the concepts, skills, and tools HR professionals need to be influential partners in developing and executing organizational strategy. Drawing on rich content from Harvard Business School Publishing and the Society for Human Resource Management, each volume is closely reviewed by a content expert as well as by senior HR professionals. Whether you are aspiring to the executive level in your organization or already in a leadership position, these authoritative books provide the basic business knowledge you need to play a strategic role.
Introduction
1 Finance and the HA Professional
A Crucial Competency
Minding Your Business
Applying Your Financial Knowledge
Summing Up
Leveraging Chapter Insights: Critical Questions
2 Financial Statements
The Elements of Managerial Finance
Why Financial Statements?
The Balance Sheet
The Income Statement
The Cash Flow Statement
Where to Find Financial Information
Using Financial Statements to Enhance HR Service Quality
Summing Up
Leveraging Chapter Insights: Critical Questions
3 Finding Meaning in Financial Statements
A Look Behind the Numbers
Ratio Analysis
Percentage-Format Financial Statements
Summing Up
Leveraging Chapter Insights: Critical Questions
4 From Financial Measures to a Balanced
Scorecard
Measuring Activities That Drive Future Financial Performance
What Is a Balanced Scorecard?
hnplementing a Balanced Scorecard Program
Creating an HR Scorecard
Summing Up
Leveraging Chapter Insights: Critical Questions
5 Important Accounting Concepts
The Rules That Shape Financial Statements
Generally Accepted Accounting Principles
Cash Versus Accrual Accounting
Accounting for hwentory
Depreciation
Accounting for Leases
Historic Cost and Its Implications
Cost Accounting
Summing Up
Leveraging Chapter Insights: Critical Questions
6 Taxes
Important Details You Should Know
Taxes and the Legal Form of the Business
Progressive Tax Rates
Marginal Tax Rate
Credits Versus Deductions
Tax Loss Carryback and Carryforward
Summing Up
Leveraging Chapter Insights: Critical Questions
7 Financing Operations and Growth
Funding, the Different Stages of Growth
Start-Up Financing
Financing Growth
Other Forms of External Financing
The Matching of Assets and Financing
A Life-Cycle View of Financing
Summing Up
Leveraging Chapter Insights: Critical Questions
8 Money and Capital Markets
Another Option for Funding Growth
Money Markets
Capital Markets
Capital Market Securities
Summing Up
Leveraging Chapter Insights: Critical Questions
9 Budgeting
Forecasting Your Company's Financial Future
What Is Budgeting?
Budget Functions
Types of Budgets
The Master Budget
The Human Side of Budgeting
Developing an HR Department Budget
Summing Up
Leveraging Chapter Insights: Critical Questions
10 Practical Tools for Management Decisions
Making the Numbers Work for You
Cost-Benefit Analysis
Accounting Return on Investment
Payback Period
Breakeven Analysis
Estimating Nonquantifiable Benefits and Costs
Tracking Performance
Summing Up
Leveraging Chapter Insights: Critical Questions
11 Measuring and Reporting Human Capital
A Vital Exercise
What Is Human Capital?
Measuring Human Capital: Techniques and Challenges
Launching or Enhancing a Human-Capital Measurement
System in Your Firm
Reporting Human Capital
Summing Up
Leveraging Chapter Insights: Critical Questions
12 The Time Value of Money
Calculatiny the Real Value of Your investment
What Is Time Value?
Present Value and Net Present Value
Internal Rate of Return
Sensitivity Analysis
Economic Value Added
Summing Up
Leveraging Chapter Insights: Critical Questions
13 Business Valuation Concepts
Evaluating Opportunity
An Uncertain Science
Asset-Based Valuations
Earnings-Based Valuations
Discounted Cash Flow Method
Summing Up
Leveraging Chapter Insights: Critical Questions
14 Developing and Using Your Financial
Know-How
Next Steps for You and Your Firm's HR Department
Enhancing Your Financial Know-How
Serving as a Strategic Business Partner
Creating a Positive Working Relationship Between HR
and Finance
Operating Your HR Department as a Profit Center
Summing Up
Leveraging Chapter Insights: Critical Questions
Appendix A
Activity-Based Budgeting
Appendix B
Balance-Sheet Template
Appendix C
Income Statement Template
Appendix D
Cash-Flow Statement Template
Appendix E
Cash Budget Template
Appendix F
HR Department Budget Template
Notes
Glossary
For Further Reading
Index
About the Series Adviser
About the Subject Adviser
About the Writers
About the Society for Human Resource Management
