Page 172 - Budgeting for Managers

Budgeting and Human Resources
• Managing hiring, including advertising openings, sched-
uling interviews, conducting HR department interviews,
and employment-related testing.
• Managing professional development and employee
retention and development policies. 155
•Managing employee reviews, terminations, and exit inter-
views.
Depending on the management structure, there are three
ways of making the decisions involved in HR management:
• The senior executive level of the corporation may make
all the decisions.
• The senior executive
Departmental control
level of the corpora- Accounting jargon for a
tion may make the business organization
strategic decisions, where each department controls its
providing direction own payroll budget. HR services, such
to HR, which devel- as payroll, are provided to each
ops policies. department by HR.
Central control Accounting jar-
•Departments may be
gon for a business where the payroll
more independent,
budget is controlled and managed by
having control of HR or the senior corporate execu-
their own structures, tives. Departmental budgets do not
job definitions, and include payroll.
salaries.
The first two methods above are called central control and
the third is departmental control. Regardless of who makes the
HR management decisions, HR services such as payroll are
provided by the HR department.

Use of Consulting Services and Outsourcing
When companies do not want the cost of maintaining their own
HR operations for permanent staff, they may use a body shop
or outsourced services. In using a body shop, the company
defines the job description and departmental organization. The