Question

summarize the four elements related to financial management. Is there one element that seems more important than the others? Additionally, determine how, as a manager, you would direct your employees/organization without being too controlling.

Answer 1

Element related to financial management are:-

1) Planning

The estimation of the capital required is made in financial planning. It is the process by which the finance should be procured and to be administrated is discussed for the entity. Financial policies are being formed in this phase. The type of financial strategy that should be followed by the enterprise is also determined by this process.

2) Controlling

It is an important part of an entity's finances. It is a multi-perspective analysis of the company's finance, which is done regularly. This helps in avoiding irregularities. Controlling helps by giving a chance for improvement. Better communication could be established in the company and it helps in motivating the human resources too.

3) Organizing and Directing

It is the process of guiding the entity to do what with the finance. It helps in determining how financial management could be connected to achieving the company's objective and goal.

4) Decision Making

The decisions linking the financial structure of the firm is involved in this element. It includes how the finance is to be raised. The best finance mix is determined here.

I think that financial planning is the most important element. As it ensures that adequate finance is available for the management in time.

I would direct my employees/organization without being too controlling as:-

• Getting their opinion before implementing any plans
• Providing a space for self-evaluation among the employees
• Involving them in the decision-making process
• Conducting a feedback session within the organization after each day work if not possible weekly
• Provide space to socialize