Financial resources are 

the funds and assets that finance an organization’s activities and

investments this includes purchasing supplies, paying staff, and site costs such as office rentals
or the purchase of properties and buildings. In simple terms, financial resources are the monies
that keep a business operating, and there are several ways a business will raise and use its
financial resources. Some of the financing resources include personal investment, when
borrowing, you invest some of your own money either in the form of cash or collateral on your
assets, business incubators grants, and subsidies and loans.
Human resources refer to the personnel of a business or organization, regarded as a significant
asset in terms of skills and abilities. The term human resources (HR) describes the people who
make up the workforce of a company or organization. In the business world, human resources
are the department responsible for recruiting and training staff, developing workplace policies,
administering employee benefits, and motivating employees to stay with the organization.

A formal organization is a social system structured by clearly laid out rules, goals, and practices
that function based on a division of labor and a clearly defined hierarchy of power. Examples of
formal organizations include government agencies, courts, banks, schools, corporations, and
professional associations. Three main types of formal organizations include: utilitarian, coercive,
and normative organizations (Etzioni, 1965; 1975)

Here below are some of the importance of financial resources in managing formal
organizations

Financial resources act as a starter for any business

Without financial resources business cannot exist in today’s business economy, Small
businesses, and Entrepreneurship are on the rise which means more positions for financial
managers will continue to become much more available. Without an eligible person responsible
to manage the incoming and outgoing money a good business cannot exist.
As good business generates money, through this generated money paying bills for materials,
payment of salary for the employees in an organization are done. Good business earnings happen
by selling quality services or products. Managing financial aspects plays a very vital role in the
progress of any good business.

Adequate funds availability

Sufficient financial resources are necessary to meet daily expenses to purchase long-term assets
for the company’s requirements accordingly; also funds should be there to deal with future
unforeseen costs that may arise. The company should know from where the funds have to be
raised and when they should be needed in an emergency to deal with the monetary crisis.

Organize Operations

Businesses generate enormous amounts of money every day. This money has to be used further
to pay bills, delegate funds, invest in multiple engagements, and monitor all. Therefore better
financial management including maintenance of both cash inflow and cash outflow within a
formal organization is important so it will be easy to allocate funds efficiently and effectively not
forget that irregular flow of money can turn the organization insolvent.

To Sustain the Economic changes

If you look at the growth graph of an organization, you will never find one that rises straight or is
without any bends. The growth of the cycle of business organization is a mix and merge of highs
and lows which of course could be due to various reasons. With sufficient finance and significant
financial management, it becomes easier for the organization to proceed with its workings in
periods of economic recessions or depression.

Having said all of the above, it is clear that as much as finance is important for your business, so
is management. Right from collecting funds to allocating and spending them, organizational
leaders must have a transparent view of all financial undertakings within their organization and
likewise, indulge in planning for efficient utilization of available resources.

Why are human resources important?

Training staff

Training happens after onboarding as employees move into new roles and responsibilities, and
human resources are often responsible for training initiatives. This might include company-wide
training on topics like harassment or ethics, or it might include employee-specific training. Not
all training will require the involvement of HR, but HR professionals often track the pieces of
training that they or other supervisors implement in order to ensure that new employees
transition smoothly into their full job responsibilities human resources help maintain a happy,
legal, and effective workforce. Here are some ways that HR is important for a company:

Recruiting

Human resources professionals recruit employees for their organization through a variety of
methods, including online and in-person events, job listings, and employee referrals. HR
professionals often follow a formal recruitment plan, especially in industries where labor is in
demand. If you work as an HR professional, you might screen resumes and conduct first
interviews to discover the best candidates for relevant staff members to hold subsequent
interviews with.

HR professionals also track applicants through the hiring process to keep it organized so hiring
managers can get any relevant information they need. HR handling the recruiting allows other
employees to do their work more effectively.

Hiring

Often, HR will manage all the steps of hiring, including making an offer, coordinating any
necessary negotiations, and getting the required paperwork. They may make recommendations
on what salary to offer to a candidate based on existing company salaries and provide guidance
to the hiring managers on the process as needed. They will also communicate a start date to the
candidate after discussing it with any relevant staff members.

Onboarding

Onboarding is the process of getting a new employee started in their role by completing the
necessary paperwork, education on benefits, equipment set-up, and training. Onboarding isn't
always a formal process, but many HR departments are working to change that in order to
improve employee retention. Employees who clearly understand what's expected of them often
do better in their role, so HR professionals often reduce turnover in employees with proper
onboarding.

Managing benefits
Many people associate human resources with benefits such as health insurance and retirement
funds, as HR is often responsible for providing benefits information, tracking benefits
paperwork, and reminding employees of enrollment periods. HR also often manages paid time
off (PTO) and other benefits. They may coordinate with benefits providers for their company to
get the best value for what their employees need, and they also might assist with establishing
how much PTO the company offers to employees.

Writing the employee handbook

Employee handbooks are a valuable tool for communicating rules, procedures, and benefits
information to their employees. These documents serve as easily accessible reference guides that
standardize expectations across the organization. Because handbooks contain rules and
guidelines related to job duties, HR professionals often assist with creating and revising a
company's employee handbook. This might entail creating a handbook, doing regular updates as
changes occur, and advising management on how to write the handbook.

Establishing culture

HR is the starting point for a company's culture, as they often establish and enforce rules related
to things like attendance or harassment. HR professionals also work to reduce conflict in the
workplace and listen to employee issues. Additionally, if you work in HR, you can influence
how the rest of the company responds to circumstances that involve HR and how welcomed
employees feel. This is particularly important as more companies are interested in establishing
diversity, equity, and inclusivity initiatives.

Organizing employee events

Employee events might include parties, awards ceremonies, happy hours, speakers, anniversary
celebrations, and team-building programs. Some organizations have an employee group that
arranges certain types of events, but for some organizations, this is HR's responsibility. Events
are a part of the company's culture, so HR professionals can make a positive impact on how
employees feel about the organization by planning fun and meaningful events.
Resolving conflicts

Resolving conflicts is a task many people associate with human resources because it is this
department's responsibility to ensure fairness in the workplace. This might be a disagreement
between two peers, or it might be a situation where there has been some harassment or
discrimination. HR's task is to find the best resolution possible within legal and company rules.
Depending on the size and seriousness of the issue, HR may need to bring in help in the form of
an investigator or expert on that type of conflict.

Ensuring compliance

Human resources are often responsible for ensuring the company complies with federal and state
laws in a variety of ways. This might include completing paperwork to verify an employee's
citizenship or visa status, organizing required training for employees, or reviewing employment
laws to confirm compliance. If they operate in an industry that the government regulates, HR
may need to work with management to file the necessary paperwork and track any information
the government needs.

Being very important in managing formal organizations, there are setbacks or challenges
facing many organizations when it comes to the acquirement and management of both
human and financial resources. A few of these include the following.

 Globalization

HR managers often deal with teams and workforces in geographically distributed areas. A
company’s customer demographic is also more diverse. Human resources officers are tasked
with devising new plans and strategies to build an inclusive workforce that credit the technology
of the 21st century. In addition, managers must embrace the diversity of their workforce, and
work towards reaching a new audience through them. It might be difficult to have the same
effect virtually on an employee however, there are programs that can help you build a work
culture online.
Meeting the ambitions of employees

Once a formal organization is done with the process of onboarding new employees, the next
challenge for human resources management is to retain them. Companies can start with simple
activities such as mapping their employee goals, establishing a workplace based on trust and
respect, and keeping communication open to meet the aspirations of their employees and build
loyalty.

 Financial Management

A chief financial officer or a financial consultant is crucial for any organization, no matter how
small it is. A financial advisor helps in making robust financial calls regarding cash flows, profit
margins, and reducing costs as well as helping to increase productivity. A business idea backed
by numbers is one that is more than likely to succeed.

 Adapting tools to user needs

Current financial tools, both transactional and decisional, are not always adapted to the analysis
of large volumes of data. A brute force processing of these information flows is no longer
sufficient. It is essential to adopt the right tools, capable of cross-referencing very large amounts
of data and processing them in an “intelligent” manner.

CONCLUSION

Having said all of the above, it is clear that as much as finance and human resources are
important for your business, so is management. Right from collecting funds to allocating and
spending them, organizational leaders must have a transparent view of all financial undertakings
within their organization and likewise, indulge in planning for efficient utilization of available
resources.
REFERENCES