Functions of the Financial Manager

The important role of financial manager in modern business is as follows:

 

1.Provision Capital: How to create and implement programs for Provision of capital required by the Company.

2.Investor relations: the creation and maintenance of a sufficient market for company with the Securities and maintaining a sufficient connection with the investment Bankers, analysts and shareholders.

3.Short long-term financing: To the appropriate sources for the company current loans from commercial banks and other lending institutions.

4.Banking and storage: agreement with the bank, consider a given depots.

5. Credit and collections: the direct lending and collection accounts for the company, including oversight of the necessary sales financing arrangements, such as the payment of time and Leasing plans.

6. Investment: To raise money from the company as needed and get create and coordinate measures for investments in pension and other similar trust funds.

7.Insurance: Providing insurance protection as needed.

8. Planning Control: Develop, coordinate and manage an appropriate plan for monitoring the measures.

9.Reporting and Interpretation: To compare the information with business plans and standards and to report and interpret the results of operations for all Levels of management and owners of the company.

10. Evaluation and Consulting: For all segments management is responsible for policy or action on any stage
Operation of the company in achieving the objectives and effectiveness of policies, organizational structure and procedures.

11. Tax Administration: the administration of tax policy and procedures.

12. Government Reporting: monitor or coordinate the preparation of the reports from government agencies.

13. Asset Protection: Protect company assets through internal controls, internal audit and the appropriate insurance Cover.

Profit Maximization vs Wealth Maximization

Profits - It is a fundamental objective of financial management. Profit maximization is intended to improve efficiency, maintain stability and reduce losses and inefficiencies.

Benefit may be seen in both directions in this context.
1. Maximizing profits for the owner.
2. Maximization of profit for others.

1. They are generally available with efficiency and it is the test of effectiveness.But this approach has limitations as the ambiguity of the term is not clearly how he has never been defined, varies from person to person.

2. Quality of earnings - profits are generally calculated in terms of cash. Normally referred to as the official profits, but ignored some basic ideas like waste, efficiency, skill requirements of workers, employees, sales, product mix, production processes, administrative installation.

3. Moment of the time value / benefit of profits - in inflationary conditions reduce the value of the gain and thus the benefits should not extend over a longer period comparable.

4. Some economists argue that profit maximization leads to some unhealthy tendencies and harmful to society and can not use, unhealthy competition and lead to abuse of position.

Maximization of wealth - one of the traditional

Approaches to financial management by maximizing the wealth we create and accumulation of wealth, property and assets on average over a longer period of time to take care when to maximize profits, its limitations, it is run wealth maximization in the true sense of the search, this is a long-term cash flows that the profits were so it may be a

Situation where a company is losing money every year, but there are cash prizes for the severe impairment, which indirectly suggests high levels of investment in fixed capital and is the real wealth, and takes into account the time value money and it is generally accepted.

What is Employee Retention

An Organization.

One where people meet and work in harmony towards a common goal is set to achieve as an organization called. People who earn their bread together in an organization and butter and profits as an employee. The employees are the lifeblood of a company and contribute effectively to its operation and profit taking.

An organization can only survive if people seriously and they are more concerned about their personal interests.

Employee Retention?

Employee retention will maintain the various policies and practices, the staff of an organization for a longer period of time. Each organization invests time and money to groom a new joinee make him a material corporate loans and bring them to parity with current employees. The organization is completely lost when employees leave their jobs once they are well trained. Employee retention takes into account the various measures taken for an individual remains in an organization for the maximum period.

Why do employees leave?

Studies show that most employees leave the organization of constant frustration and friction with superiors or members of the team. to force in some cases, low salaries, lack of growth opportunities and motivation of an employee looking for a change. The management must strive to be best to people who are really important to the system and are known, effective employees will be retained.

It is the responsibility of supervisors and management to ensure that employees with their roles and responsibilities and work satisfaction by providing a new challenge and learning every day.

The Example, the concept of employee loyalty to understand.

Misha was a talented staff, who gave his best and he has his work within the prescribed period. His work had no mistakes and always has been as innovative and challenging. Never in someone else's work and remained away from unnecessary gossip and rumor. She avoided a walk around the job was his work very seriously and is confident that his performance has always been sensitive. Greg, his immediate boss never really liked Misha and considers its biggest threat unturned to insult and discourage workplace.He Misha. Mischa soon got tired of Greg and decided to go further.

Situation 1 - The HR does not make efforts to conserve and mixing his resignation was accepted.

Situation 2 - Human Resources responded immediately and problems that led many to think Misha talked about for a change. They tried their best to convince Misha and even appointed a new chief to make things better for them.

Situation 1 would most likely leave the organization in a dilemma. It is not easy for an employee, also gels with the system and knows how to find work. Rent to engage an employee, the form and be in a position in an organization tremendous effort and the genuine efforts made, therefore, should be to retain employees. Every problem has a solution and management, the exact reasons for the dissatisfaction of an employee to explore. employees adhere to an organization for a long time tend to know the organization better and develop a sense of connection with it. Employees who remain for a longer duration, are familiar with company policies, guidelines and rules and regulations and may therefore contribute more efficiently than people who come and go.

Employee retention techniques go a long way in motivating employees to enjoy their work and to avoid changing jobs frequently.