How financial position of a company effects Human Resources Management ?

When financial stability goes, so does the functioning of the enterprise....unless its a non-profit organisation. or simply What do people inside the hr department work for...?

If the co. is financially strong meaning it has more more funds to invest in profitable ventures, it can invest in HR in terms of employee training, management development, promotions,  compensation to employees better than competitor, awards, monetary motivations and non monetary motivations, and many more. All this will lead to improving the efficiency and recognizing oneself with the co., better productivity. Also better compensation packages will attract large empoyee pool outof them, only best ones can be selected and strong and loyal employee base can be created. All this can come from sound financial position of the co.