FINANCIAL LITERACY IN THE MANAGEMENT OF HUMAN RESOURCES IN THE ORGANIZATIONS

Financial literacy in the management of human resources in organizations refers to the understanding and competence of individuals, particularly HR professionals, in comprehending and effectively utilizing financial concepts, principles, and tools within the context of workforce management. This encompasses the ability to interpret financial data, analyze budgets, and make informed decisions that impact the allocation of resources for personnel-related activities. The concept underscores the significance of integrating financial knowledge into HR practices to ensure optimal utilization of funds, aligning employee initiatives with organizational goals, and fostering sustainable growth. Effective financial literacy among HR personnel contributes to prudent budget planning, informed compensation and benefits structures, data-driven recruitment strategies, and efficient talent development initiatives. This annotation explores the multifaceted relationship between financial proficiency and human resource management, highlighting its role in driving organizational success through sound financial decision-making and strategic resource allocation.