State Laws and HR Functions

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Questions and Answers

Why do human resource departments have to work countless hours and hire additional staff?

To reduce the workload of other departments

To comply with the extensive record keeping and reporting requirements of state laws (correct)

To focus on employee training and development

To handle the increased workload of recruiting employees

What is one of the consequences of an organization failing to comply with laws regulating equal employment, compensation, safety, and labor relations?

Improved company reputation

Increased employee morale

Reduced labor costs

Extremely costly back-pay awards, class action suits, and penalties (correct)

Why are human resource policies important in ensuring consistency and equity within an organization?

To reduce the role of human resource departments

To improve employee relationships with managers

To increase employee salaries

To prevent unfair promotion decisions and uneven compensation structures (correct)

What happens when managers make compensation decisions without consulting the human resource department?

The salary structure becomes very uneven and unfair Signup and view all the answers

What is one of the areas that has been influenced most by legislation in human resource functions?

Compensation Signup and view all the answers

What is the role of the human resource department in ensuring fairness in promotion decisions?

To coordinate promotion decisions with individual managers Signup and view all the answers

What is the primary textbook for the course?

Essentials of Corporate Finance, by Ross, Westerfield and Jordan Signup and view all the answers

What is the main focus of Business Finance?

Addressing questions on investments, raising capital, and cash flow Signup and view all the answers

What is the topic that deals with financial assets such as stocks and bonds?

Investments Signup and view all the answers

What is the topic that covers international aspects of corporate finance, investment, and financial institutions?

International Finance Signup and view all the answers

What is the topic that deals with businesses dealing in financial matters?

Financial Institutions Signup and view all the answers

What is the ISBN number of the primary textbook?

0-07-121057-7 Signup and view all the answers

What is the main focus of Investments?

Pricing financial assets and associated risks and rewards Signup and view all the answers

What are the four basic areas in Finance?

Business Finance, Investments, Financial Institutions, and International Finance Signup and view all the answers

Study Notes

State Laws and Human Resource Functions

Enactment of state laws has significantly contributed to the growth and importance of human resource functions.
Laws require extensive record keeping and reporting, leading to increased workload and additional staff for human resource departments.

Key Areas Influenced by Legislation

Equal employment: Organizations must comply with laws regulating this area to avoid costly consequences.
Compensation: Compliance with laws regulating compensation is crucial to avoid unfair salary structures and promotion decisions.
Safety: Legislation has a significant impact on safety regulations in the workplace.
Labor relations: Organizations must comply with laws regulating labor relations to avoid penalties and lawsuits.

Importance of Consistency in Human Resource Policies

Consistency is crucial in compensation and promotion decisions to ensure equity within the organization.
Human resource policies help maintain consistency and fairness in decision-making processes.
Without HR department coordination, salary structures tend to become uneven, and promotion decisions may be unfair.

Course Overview

The course uses the primary textbook "Essentials of Corporate Finance" by Ross, Westerfield, and Jordan, fourth edition, McGraw Hill Publishers.
Reference books include "Introduction to Finance" by Lawrence J. Gitman and Jeff Madura, and "Foundations of Financial Management" by Stanley B. Block and Geoffrey A. Hirt.

Course Contents

The course covers eleven topics:
- Financial Environment
- Financial Statements, Taxes, and Cash Flows
- Time Value of Money and Discounted Cash Flow Valuation
- Valuation of Stocks and Bonds
- Net Present Value and other Investment Criteria
- Capital Investment Decision
- Risk and Return
- Cost of Capital
- Leverage and Capital Structure
- Raising Capital
- Working Capital Management
- Dividends

Finance: A Quick Look

Finance encompasses four basic areas:
- Business Finance
- Investments
- Financial Institutions
- International Finance

Business Finance

Addresses three key questions:
- What long-term investments should the firm engage in?
- How can the firm raise the money for the required investments?
- How much short-term cash flow does a company need to pay its bills?

Investments

Deals with financial assets such as stocks and bonds.
Covers three key issues:
- Pricing Financial Assets
- Associated Risks and Rewards
- Determining the best mixture of financial investments
Career opportunities in investment include:
- Stock Brokerage
- Portfolio Management
- Security Analysis

Financial Institutions

Businesses dealing in financial matters, including:
- Banks
- Insurance companies

International Finance

Covers international aspects of corporate finance, investment, and financial institutions.

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Description

Learn about the impact of state laws on human resource functions, including record keeping, reporting, and compliance with laws regulating equal employment and compensation.