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1. BOOK 3, GROWING
THE ENTERPRISE
• MANAGING THE HUMAN
RESOURCE FUNCTION
• MANAGING THE FINANCE
FUNCTION
• GROWING THE ENTERPRISE

2. CHAPTER 5: MANAGING THE HUMAN RESOURCE FUNCTION
The learning objectives are as follows:
1. Appreciate the people’s role as the lifeblood of any enterprise and that human
resource management must be given ample attention
2. Understand the four major HR functions and how they are interrelated to one
another
3. Learn the dynamics behind the Eight R’s of HR intertwined with the four major
HR functions
4. Determine the important ingredients in making the Eight R’s of HR work for
your organization or enterprise

3. The success and failure of
any organization lies in the
hands of the people who run
the show but unfortunately,
HR functions are usually
relegated to the
administrative stuff and not
taking so much role in the
organizational development
aspect. People-centric
organizations succeed
because they know how
exactly to develop and
motivate their people.
THE HUMAN RESOURCE FUNCTION

4. THE HUMAN RESOURCE FUNCTION
The vertical line polarizes the strategic and the operational
levels of HR while the horizontal line divides the systemic and
the people dimensions of HR. This creates the four HR
functions. The first quadrant (Quadrant A) is the strategic-
systemic HR function. This quadrant involves the strategic
deployment of people to execute the enterprise strategy and
to achieve its desired goals. The second quadrant (Quadrant
B) is the systemic-operational HR function. It designs and
administers HR systems, policies and procedures for the
efficient and effective management of the organization. The
third quadrant (Quadrant C) is the operational-people HR
function. It focuses on empowering and energizing people to
create a conducive work environment and to elicit the best
operating practices from them. The fourth quadrant
(Quadrant D is the people-strategic HR function) is about
strategic change management and the transformation of
people to meet the challenges of change.

5. CHAPTER 6: MANAGING THE FINANCE FUNCTION
The learning objectives are as follows:
1. Identify the different finance functions or
processes that are essential in running an
enterprise
2. Determine the role of finance in the context of
achieving corporate goals while observing
business policies and considering the values of
top management

6. The seven functions or processes can shown based on the acronym F.I.N.A.N.C.E.
These are Financing, Investing, Negotiating and Deal Making, Administering,
Numbers Generation, Cash and Treasury Management and, Evaluating and Planning.
The first two finance functions are Financing and Investing. Why do they go
together? These two finance functions enable the translation of corporate goals,
strategies and operating plans into investments (assets) and financing (liabilities)
plans. Because of the criticality of these two functions, there are certain criteria that
the decision makers must adhere to in order to make a sound investment and
financing decisions. The primary criteria should be to achieve the financial
objectives and performance indicators set, which emanate from the overall
corporate vision, mission and policies.

7. The third finance function is Negotiating and Deal
Making. From a financial standpoint, the best person
to assess the deal no doubt is the finance person
(working closely with the legal officers and technical
experts).
The fourth finance function is Administering. For some
reason, this eats up the bulk of their time because of
the numerous tasks and paper works involved. This is
where the finance person’s skills are tested including
managing people, managing information, managing
processes, managing systems and managing policies.

8. The fifth finance function is Numbers Generation,
analysis and reporting. Similar to administering, this
function challenges the finance person’s abilities to
gather relevant information, processing and storing
them and eventually disseminates the processed
information to all concerned.
The sixth finance function is the Cash and Treasury
Management. While this entails much of accounting
skills, it also highlights the finance person’s ability to
understand the flow of funds as well as safekeeps and
releases funds as necessary.

9. The seventh finance function is Evaluating and
Planning. The finance person is the one who
orchestrates the entire process of corporate
planning and spearheads the budgeting. This is
where his or her other finance functions come
together into a coherent and comprehensive
enterprise evaluation process and a corporate
and financial plan that will guide the strategies
and action programs of the organization.

10. CHAPTER 7: GROWING THE ENTERPRISE
The learning objectives are as follows:
1. Understand how family enterprises run, evolve and grow
2. Identify and differentiate the different enterprise growth models

11. ENTERPRISE GROWTH
MODELS
Market Chain Growth Model put together a
complete supply to market chain in the
restaurant and bakery business. They
bought or set up companies that provide
various food ingredients which supply the
needs of a central kitchen. The central
kitchen processes the food items and
distributes them to a network of branches
and franchises which sell the final food
products to the customers.

12. ENTERPRISE GROWTH
MODELS
Hub and Spoke Growth Model is a critical
success factor because this has always been
the competitive advantage of a transport
utility and cargo business having cost of
repairs and maintenance that is lower than
the industry, keeping the vehicles running
optimally and, therefore, earning maximally.

13. ENTERPRISE GROWTH MODELS
Conglomerate Holding Company Growth Model is
composed of a holding company which serves as the
main financer to the enterprises that were
established and rationalized into industry groupings.

14. ENTERPRISE GROWTH
MODELS
Simple Growth Models
Some entrepreneurs would rather adapt a simple growth model like in the case of
manufacturing enterprise; it can be adding capacity by building a new plant should
demand surges over time. Similarly, the distribution system follows the same fate in
terms of geographical expansion. For service providers, like spas, salons, restaurants
and boutiques, branching, franchising and aggressive channel management strategies
could work in case the enterprise would like to expand its market reach. If the
enterprise is not as sensitive in terms of rendering personal service to its customers,
subcontracting and outsourcing are good alternatives for multiplying the capacity of
the enterprise.

15. ENTERPRISE GROWTH
MODELS
Flexible Growth Models
Enterprises can follow a flexible growth model that can easily
change from one customer to another. A classic example of
this is the Li & Fung flexible system. It is a Hongkong-based
trading company that caters to the whims and fancies of its
large customers like Bloomingdales of the United States. The
flexibility starts from the presentation of proposal to the client
up to the manufacturing system. Once the garments are out,
they go all the way through a flexible supply chain system. For
companies like Li & Fung, the world is their entire source of
supply. It can grow its supply chain in one particular way for
one year, but in another completely different way altogether
next year.