Financial management

Financial management

Financial management is the primary aspect when it comes to the success of the company. For the company to be well organized, it has to have strong financial management. If the company has misguided financial control, it is doomed to fail.

Public financial management ensures that there is effective allocation of services and hence effective delivery. The good practices of local authorities enable effective public finance management. The good practices are inclusive of transparency, which reduces corruption and other undesirable vices.

Another component related to financial management is operational management. It is usually measured through the valuation of money allocation, and the outcomes received. The positive results mean that there is an effective utilization of the allocated budgets in different departments (Shabana 2018, p.269). There is a great need for organizations to pay attention the risk management as well as implementing financial control measures.

It is through effective financial management; that organization can eliminate some problems. Such problems include poor managerial performance, low productivity of the organization, low wages contribution, and over employment.

Finally, the aspect of active management aids a lot in assessing performance appraisal. It is the aspect that allows the human resource department to maintain the hardworking employees. Promoting employees makes them assume their responsibilities with a lot of seriousness. The element of motivating employees leads to the success of the organization. The more employees are motivated, the more they will work hard, and the overall benefits will be achieved within the organization (Musinbegovic et al. 2010, p.90). It is necessary to have effective management if an organization is to be successful. It is among many methods used in eliminating issues of financial crises, which has become a common global trend.