- Business Acumen
- Critical Evaluation
- HR Expertise
Purpose and Objectives
The purpose of this class is to increase the financial intelligence of human resources professionals. The ability to move HR from a tactical to a strategic role can hinge on an understanding of the financial aspects of an organization. HR professionals increase their credibility with line managers when they speak the language of business, which is finance. This class provides a foundation for understanding the Income Statement, Balance Sheet, and Cash Flow statements and how human capital and business decisions affect those statements. This is not an accounting course so we will not be exploring the nuances of GAAP. We will, however, focus our time on understanding the major elements of each of the major financial statements. We will then invest our time developing critical thinking skills on how human capital decisions affect each statement. We will also take time to learn how to evaluate the financial health of a business through ratio analysis and how ethics and bias can impact an organization. Upon the active participation and completion of the course, the student will be able to achieve the following:
- Demonstrate an understanding of how organizations make money and the major financial statements that are used to assess the health of a company
- Understand how human capital decisions impact the financial statements
- Understand the power of major financial ratios in evaluating financial heath
- Describe business ethics and corporate governance and their role in daily activities in the workplace
The class will cover these topics with a mix of lecture, discussion, and exercises
- The art of finance
- The Income Statement, what does it mean?
- The Balance Sheet, what makes balance?
- The Cash Flow Statement, why is cash is king?
- Using ratios, what do they say about the “health” of an organization?
This is an essential class for Human Resource professionals who desire to increase their understanding of the foundations of financial reports and their implications. Managers in any function will also benefit from the principles taught in the class. The class would be an excellent on-site program and can be customized to fit the need of your organization