Article Sidebar

Download
View Article
Statistic
Read Counter : 321 Download : 128

Downloads

Download data is not yet available.

Main Article Content

Abstract

The purpose of this study is to explore human resource (HR) managers' perceptions of using financial statements in HR decision-making, particularly in compensation, workforce planning, and budgeting. The research design employed a qualitative approach involving interviews with HR managers to understand how financial data is interpreted and applied in strategic decisions. The methodology focused on identifying the barriers HR managers face, including financial literacy limitations and organizational silos, that hinder the effective integration of financial data into HR practices. The findings reveal significant variability in financial literacy among HR managers, directly influencing their ability to leverage financial data. While some managers demonstrate a strong understanding of financial statements, others rely heavily on operational metrics. The study highlights the need for organizational improvements, particularly in fostering collaboration between HR and finance departments, to ensure more informed and aligned decision-making. In terms of implications, the study offers practical recommendations for improving HR decision-making by increasing financial literacy through targeted training programs and promoting interdepartmental collaboration. This research contributes to both theory and practice by emphasizing the importance of financial data in HR strategies, with implications for more integrated HR and financial management approaches.

Keywords

Financial Literacy HR decision-making Financial statements Workforce planning Organizational collaboration

Article Details

Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

How to Cite
Pertiwi, W. (2024). A Descriptive Study of Managers’ Perceptions of the Use of Financial Statements in the HR Management Decision-Making Process. Atestasi : Jurnal Ilmiah Akuntansi, 7(1), 777–791. https://doi.org/10.57178/atestasi.v7i1.950
Download Citation
Endnote/Zotero/Mendeley (RIS)
BibTeX

References

  1. Abiola, J. O., & Adisa, R. A. (2020). Influence of human resource accounting practices on managerial decision-making. Archives of Business Review. 8(5). https://doi.org/10.14738/abr.85.8145
  2. Arseneault, R., & Gagnon, J. (2024). Managerial accounting practices, HR metrics, and firm performance. Advances in Accounting, 64, 100730. https://doi.org/https://doi.org/10.1016/j.adiac.2024.100730
  3. Barney, J. (1991). Firm resources and sustained competitive advantage. Journal of Management, 17(1), 99–120. https://doi.org/10.1177/0149206391017001
  4. Bellingham, R., & Campanello, R. J. (2004). HR optimization: from personnel administration to human and organizational capital development. Human Resource Development.
  5. Carlier, J. (2021). Managing Learning and Development Cost. In D. Pepple & C. Zhang (Eds.), Financial and Managerial Aspects in Human Resource Management: A Practical Guide (pp. 63–74). Emerald Publishing Limited. https://doi.org/10.1108/978-1-83909-612-920211007
  6. Cascio, W., & Boudreau, J. (2010). Investing in people: Financial impact of human resource initiatives. Ft Press.
  7. Chaerudin, A. (2018). Manajemen pendidikan dan pelatihan SDM. CV Jejak (Jejak Publisher).
  8. Cotten, A. (2007). Seven steps of effective workforce planning. IBM Center for the Business of Government.
  9. Faisal, S. (2023). Twenty-years journey of sustainable human resource management research: A bibliometric analysis. Administrative Sciences, 13(6), 139. https://doi.org/10.3390/admsci13060139
  10. Flamholtz, E. (1999). Human resource accounting: Advances in concepts, methods, and applications. Springer Science & Business Media.
  11. Forsten-Astikainen, R., Hurmelinna-Laukkanen, P., Lämsä, T., Heilmann, P., & Hyrkäs, E. (2017). Dealing with organizational silos with communities of practice and human resource management. Journal of Workplace Learning, 29(6), 473–489. https://doi.org/10.1108/JWL-04-2015-0028
  12. Indrastuti, S. (2020). Manajemen sumberdaya manusia stratejik. UR Press. https://repo.unsrat.ac.id/4583/1/Buku MSDM.pdf
  13. Indriakati, A. J. (2023). Financial Performance Analysis Using the Economic Value Added Method. Advances in Applied Accounting Research, 1(2), 81–92. https://doi.org/10.60079/aaar.v1i2.89
  14. Irfani, A. S. (2020). Manajemen Keuangan dan Bisnis; Teori dan Aplikasi. Gramedia Pustaka Utama.
  15. Iswahyudi, M. S., Tahir, R., Samsuddin, H., Hadiyat, Y., Herman, H., Hamdani, D., & Ramadoan, S. (2023). Strategi Perencanaan Sumber Daya Manusia: Mengelola dan menetapkan SDM yang Berkualitas. PT. Sonpedia Publishing Indonesia.
  16. Jekiel, C. M. (2020). Lean human resources: redesigning HR processes for a culture of continuous improvement. Productivity Press.
  17. Jensen, M. C., & Meckling, W. H. (1976). Also published in Foundations of Organizational Strategy. Journal of Financial Economics, 4, 305–360. http://ssrn.com/abstract=94043Electroniccopyavailableat:http://ssrn.com/abstract=94043http://hupress.harvard.edu/catalog/JENTHF.html
  18. Junaedy, J. (2023). Insolvency Forecasting using model Altman Z-Score dan Springate Score Analysis. Advances in Management & Financial Reporting, 1(2), 95–106. https://doi.org/10.60079/amfr.v1i2.113
  19. Mahapatro, B. (2021). Human resource management. New Age International (P) ltd. https://doi.org/http://dspace.vnbrims.org:13000/jspui/bitstream/123456789/4277/1/Human%20Resource%20Management.pdf.
  20. Negt, P., & Haunschild, A. (2024). Exploring the gap between research and practice in human resource management (HRM): a scoping review and agenda for future research. Management Review Quarterly. https://doi.org/10.1007/s11301-023-00397-7
  21. Ningrum, N. A., Pratowi, N. M. I., & Mulyati, D. J. (2024). Pengaruh Anggaran Keuangan Terhadap Efisiensi Pengelolaan Keuangan Program Pelatihan Kerja Pada Upt Balai Latihan Kerja Surabaya. Musytari: Neraca Manajemen, Akuntansi, Dan Ekonomi, 6(8), 81–90. https://doi.org/10.8734/musytari.v6i8.4563
  22. Nocker, M., & Sena, V. (2019). Big data and human resources management: The rise of talent analytics. Social Sciences, 8(10), 273.
  23. Noy, I. (2023). The company’s financial performance in terms of liquidity and profitability. Advances in Management & Financial Reporting, 1(2), 71–82. https://doi.org/10.60079/amfr.v1i2.99
  24. Nugroho, Y. A. B. (2020). Manajemen sumber daya manusia: Mengelola SDM secara profesional. Penerbit Universitas Katolik Indonesia Atma Jaya.
  25. Olayinka, A. A. (2022). Financial statement analysis as a tool for investment decisions and assessment of companies’ performance. International Journal of Financial, Accounting, and Management, 4(1), 49–66. https://doi.org/10.35912/ijfam.v4i1.852
  26. Oluwatoyin, A. S. (2014). Human resources accounting and disclosure in financial statement: literature review. Human Resources, 5(22).
  27. Ortiz‐de‐Mandojana, N., & Bansal, P. (2016). The long‐term benefits of organizational resilience through sustainable business practices. Strategic Management Journal, 37(8), 1615–1631.
  28. Phillips, J. J. (2009). Accountability in human resource management: connecting HR to business results. Routledge.
  29. Pillai, R., & Sivathanu, B. (2022). Measure what matters: descriptive and predictive metrics of HRM-pathway toward organizational performance. International Journal of Productivity and Performance Management, 71(7), 3009–3029. https://doi.org/10.1108/IJPPM-10-2020-0509
  30. Redman, T. C. (2008). Data driven: profiting from your most important business asset. Harvard Business Press.
  31. Samson, K., & Bhanugopan, R. (2022). Strategic human capital analytics and organisation performance: The mediating effects of managerial decision-making. Journal of Business Research, 144, 637–649. https://doi.org/https://doi.org/10.1016/j.jbusres.2022.01.044
  32. Shet, S. V., Poddar, T., Wamba Samuel, F., & Dwivedi, Y. K. (2021). Examining the determinants of successful adoption of data analytics in human resource management – A framework for implications. Journal of Business Research, 131, 311–326. https://doi.org/https://doi.org/10.1016/j.jbusres.2021.03.054
  33. Suwarno, S., Fitria, F., & Azhar, R. (2023). Optimizing Budget Allocation: A Strategic Framework for Aligning Human Resource Investments with Financial Objectives and Business Goals. Atestasi: Jurnal Ilmiah Akuntansi, 6(2), 835–855. https://doi.org/10.57178/atestasi.v6i2.880
  34. Tóth, R., Zéman, Z., Túróczi, I., Kása, R., Popp, J., & Oláh, J. (2021). The system of relationships between sustainable corporate governance and corporate financial literacy. Polish Journal of Management Studies, 23.
  35. Tuffour, J. K., Amoako, A. A., & Amartey, E. O. (2022). Assessing the effect of financial literacy among managers on the performance of small-scale enterprises. Global Business Review, 23(5), 1200–1217. https://doi.org/10.1177/09721509198997
  36. van Wyk, L.-M., & Wesson, N. (2021). Alignment of executive long-term remuneration and company key performance indicators: An exploratory study. Journal of Economic and Financial Sciences, 14(1), 17. https://doi.org/10.4102/jef.v14i1.564