Finance is critical to the bottom line and firm's existence. Since resources are scarce, it is critical for managers to keep the bottom line in mind when negotiating decisions.

That is why, HR and Finance within the same company sometimes have conflicting goals.

One criticism that corporate leaders have on HR is that HR managers are not very familiar with how the firm makes money. So HR professionals need to know and understand financial statements to gain credibility in the wardrooms.

Often HR is encharged to provide headcount information which is critical in hiring or reducing the workforce. If an HR professional can also make an argument why the hiring or firing makes business and financial sense, then he/she can be more effective in negotiating and becoming a trusted advisor.

During the turn of the 20th century, Frederick Taylor created the term "Scientific Management". Taylor started out as one of the first management theorist and consultant.

Taylor developed the following principles to his management theory.

1) Management is a true science. Creating a harmonious work environment with good work standards and practices can be executed by research and experimentation and applied across the board throughout the corporate world and government.

2) The selection of workers is a science. Taylor believed that interviewing and hiring employees and assigning them to the job that was most suitable for them and the company could be executed methodically.

3) Workers should be developed and trained -- this is management's responsibility to standardize responsibilities across the board.

4) Scientific management involves a collaboration of both workers and managers.