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Role of each function

1. Role of Human Resource Management. The human resources management


team suggests to the management team how to strategically manage people as
business resources. This includes managing recruiting and hiring employees,
coordinating employee benefits and suggesting employee training and
development strategies.

2. Role of Marketing Management. Organizations marketing efforts is to


develop satisfying relationships with customers that benefit both the customer
and the organization. These efforts lead marketing to serve an important role
within most organizations and within society.

3. Role of Operations Management (OM) is the business function responsible


for managing the process of creation of goods and services. It involves
planning, organizing, coordinating, and controlling all the resources needed to
produce a company's goods and services.

4. Role of Financial Management. Involves the evaluation, disclosure, and


management of economic activity and is crucial to the successful operation of
firms and market.Financial managers perform data analysis and advise senior
managers on profit-maximizing ideas. Financial managers are responsible for
the financial health of an organization. They produce financial reports, direct
investment activities, and develop strategies and plans for the long-term
financial goals of their organization.

5.Role of Material and Procurement Managemant. Materials management can


deal with campus planning and building design for the movement of materials,
or with logistics that deal with the tangible components of a supply chain.
Specifically, this covers the acquisition of spare parts and replacements,
quality control of purchasing and ordering such parts, and the standards
involved in ordering, shipping, and warehousing the said parts. Materials
management is the function responsible for the coordination of planning,
sourcing, purchasing, moving, storing and controlling materials in an optimum
manner in order to provide a pre decided service to the customer at a minimum
cost.
6.Role of Office management is a profession involving the design,
implementation, evaluation, and maintenance of the process of work within an
office or organization, in order to maintain and improve efficiency and
productivity.

7. Role of ICT Management. Knowledge Management (KM) has become the


key factor for the success of all organizations. ICTs are technologies which
facilitate the management to share knowledge and information. Thus, ICTs
have a prominent role on Knowledge Management initiatives. In the current
business environment, the implementation of Knowledge Management
projects has become easier with the help of technological tools. Thus,
knowledge sharing is facilitated through information and communication
technologies including computers, telephones, e-mail, databases, data-mining
systems, search engines, video-conferencing equipment and many more. The
purpose of this study is to identify the significant role of information and
communication technologies (ICTs) in Knowledge Management (KM)
initiatives that lead to organizational effectiveness.

Function of each Functions

1.Human Resource Management is a management function concerned with


hiring, motivating, and maintaining workforce in an organisation. Human
resource management deals with issues related to employees such as hiring,
training, development, compensation, motivation, communication, and
administration.

2. Marketing Management is the processes of planning, organizing directing


motivating and coordinating and controlling of various activities of a firm.
Marketing is the process of satisfying the needs and wants of the consumers.
Management of marketing activities is Marketing Management.Marketing
Management focuses upon the psychological and physical factors of
Marketing. The Marketing managers are responsible for influencing the level,
timing, and composition of customer demand accepted definition of the term.
While the psychological factors focus upon discovering the needs and wants
of the consumer and the changing patterns of buying behavior, habit etc. the
physical factors focus upon fulfilling those needs and demands buy better
product design, channel of distribution and other functions.

3. Operations Management is a multi-disciplinary field that focuses on


managing all aspects of an organization's operations. The typical company
carries out various functions as a part of its operation. The dividing of a
company's activities into functional categories occurs very early on, even in a
company formed and operated by a single individual. Most companies make a
product of some kind or produce a saleable service. They must also carry out a
sales and marketing function, an accounting function, and an administrative
function to manage employees and the business as a whole. Operations
management focuses on the function of providing the product or service. Their
job is to assure the production of a quality good and/or service.

4. Financial Management. The functions of financial management are guided


by the ultimate aim of any business i.e. profit and wealth maximization. If we
broadly classify the functions of a finance head of the business, it can be the
procurement of funds and utilization of funds. The objective underlying the
function of procurement of funds is to minimize the cost of funds whereas the
objective behind the utilization of funds is to maximize the returns.

5. Material and Procurement Management is a service function. It is as


important as manufacturing, engineering and finance. The supply of proper
quality of materials is essential for manufacturing standard products. The
avoidance of material wastage helps in controlling cost of production.

6. Office management is a profession involving the design, implementation,


evaluation, and maintenance of the process of work within an office or
organization, in order to maintain and improve efficiency and productivity.
Management is an important part of organisation.

7. ICT Management. Information technology has become a major driving


force in many organizations. These organizations are seeking to get IT
applications which can help them sell their products or services effectively.
For example, by use of Internet, organizations or businesses are moving
information faster and they also coordinate multiple activities to achieve
efficiency. They also use the internet to sell their services or products.
Information technology has changed businesses, education so many other
sectors. In the business world it has helped in creating a networked economy
where businesses are linked with their suppliers, customers, manufacturers and
business partners in real time

Effect of not having Financial Management in the Organization

Financial management is involves planning, organising, controlling and


monitoring financial resources in order to achieve organisational objectives.
Organization without the financial management is not an organization, it is
one of the management that is bringing about the organizational success.
Financial management is in charge with funds, cash, credits, etc. but when it is
not in the organization, income, taxes and funds cannot distribute properly on
how it is use in the business. All managements are affected.

Relationship of financial management to one another in bringing about


the organizational success

F MGT - HR MGT

A strong relationship between HR and finance departments is key to business


success. Often times, the core values of each department can be seen as
drastically different, making it difficult to find common ground. HR
departments often live by the motto, People are our greatest asset. Finance
departments, on the other hand, operate under the old adage, Cash is king.

The nature of each departments work has also been a source potential conflict
between the two. In the past, HR departments have found it difficult to
measure their programs return on investment, and therefore found themselves
struggling to communicate effectively with the CFO. Finance managers tasked
with improving the bottom line have traditionally viewed HR as the defenders
of the workforce, blocking personnel decisions that could potentially lead to
lawsuits or poor morale, even though those decisions may be good for that
business.

The Changing Landscape

Given these core differences, the relationship can often appear to be in


conflict, but in the end, both HR and finance are working towards the same
goal of a healthy and successful company. When these two departments are
able to come together, their cooperation leads to positive business outcomes.
According to a global survey of CFOs and CHROs, a strong relationship
between the two departments leads to improvements in employee productivity
and engagement, and higher corporate earnings. However, in order to create a
positive working relationship based on collaboration, finance and HR must
have an appreciation for the goals and the work of each others
department.

What Has Finance Learned From HR?

In the past, CFOs and members of the finance team didnt generate many fans
among the workforce. They made the tough decisions that often had a negative
impact on employee morale. However, through developing a closer
relationship with HR, the best CFOs have learned:

The human element of business. CFOs were typically viewed


as naysayers, especially among HR teams. They were, and still are, tasked
with making tough decisions to keep their organization moving forward.
Working together, HR managers, CFOs and other key finance decision makers
have looked beyond short term numbers when weighing options, and have
begun to incorporate the human element of business into their long-term
strategic plans.

Seeing beyond ROI. Not all success in business can be easily


quantified. It can be difficult to determine precisely how a program or benefit
designed to improve employee morale will impact profitability in the long run.
However, good CFOs are now able to see how investments in human capital
can positively impact the business in ways that are not always immediately
quantifiable.
What Has HR Learned From Finance?

In the past, HR departments have been viewed as a cost center whose function
is to provide support and compliance. However, the best performing
companies have begun to include their HR managers in strategic planning
efforts. The best HR teams have used this seat at the table to forge solid
relationships with the finance department, and from those relationships they
have learned:

The Business Perspective. CFOs want to know only one thing:


How will the results of this decision affect business performance? Solid HR
managers have learned how to quantify and qualify strategic personnel
investments.

How to Use People Data. Effective HR managers have learned


how to influence decisions relating to performance metrics and business goals.
Theyve developed best practices for tracking, collecting, and reporting their
people data.

A Partnership for Long-Term Business Success

Successful cooperation and collaboration between CFOs and CHROs has been
achieved when members of both teams took the time to learn from and
understand each other. Finance leaders learned valuable lessons about the
human side of business, and HR leaders have learned how their work and
decisions impact the goals and the success of the organization. Together, solid
finance and HR teams have developed strong partnerships that have driven the
most successful businesses.

F MGT - MARKETING MGT

Relationship of Finance with Marketing:-

Marketing departments main duty is to sell maximum goods and satisfy the
consumers. Its products input cost will decrease if all products are sold by
marketers of company. For developing the product, promotion activities and
distribution activities of marketing department need some money for paying
salesmen, advertising budget and other promotional expenses. For this
marketing department makes his marketing budget and it is cleared by finance
department, but sometime finance department will not all specific marketing
expenses but marketing department need that type of expenses for promotion
of sales. This will create confliction. Good relations will be helpful for both
departments. If both department does meeting and show behavior like good
relative, the problem can easily

solve. Both departments should think that both are the part of companys
organization and co-ordination between them is must. Sometime, marketing
department obtains big order for supplying the goods, at that time finance
department should help marketing department for arrangement of money for
buying raw material and supplying fastly without any delay.

F MGT - OPERATIONAL MGT

Performance & financial management covers the management, process, and


behavioural aspects of strategy execution, and managing and monitoring
performance. This is important to professional accountants, both as employees
or advisers, since many of them are focused on helping their organizations
deliver on objectives, goals and targets, and strategies using a range of
approaches, tools, and techniques.

Performance & financial management involves the deployment of various


tools, techniques, and systems to help an organization implement its strategies
and plans, and support the achievement of organizational objectives.
Successfully executing strategy involves various disciplines, areas of
capability, including planning and forecasting, funding and resource
allocation, revenue and cost management, managing performance against
objectives, and improving operational management and utilization of assets.

Performance & financial management also covers the management of an


organizations finances, such as cash flow and working capital management,
and forecasting and budgeting, as well as ensuring resources are allocated to
the most important projects and investments by using analytical approaches to
project and investment appraisal.

Effective performance & financial management requires:

engaging people to determine their information needs;

implementing processes and systems to collect the right data;

turning the data into information and insights; and

presenting it in the best way.

Technological advances in data collection and storage present opportunities


for enhancing performance & financial management. There improvements
have also introduced new terms, such as business intelligence, big data, and
predictive analytics, to represent the importance of evidence-based decision
making that helps organizations succeed. The emergence of cloud computing
is enabling organizations, especially small- and medium-sized entities (SMEs),
to gain access to and capitalize from performance & financial management
applications.

F MGT - MATERIAL/PROCUREMENT MGT

Financial Management and Material Department: The financial management


and the material department are also interrelated. Material department covers
the areas such as storage, maintenance and supply of materials and stores,
procurement etc. The finance manager and material manager in a firm may
come together while determining Economic Order Quantity, safety level,
storing place requirement, stores personnel requirement, etc. The costs of all
these aspects are to be evaluated so the finance manager may come forward to
help the material manager.
F MGT - ICT MGT

Information technology focuses on the development of electronic networks


that exchange information. Because all financial transactions involve the
exchange of information, the increasing popularity of online finance coincided
with advances in information technology. According to Professor Jane K.
Winn of the University Of Washington School Of Law, "Financial institutions
were at the forefront in creating the global information economy as it exists
today." Finance today relies on information technology. Information
technology allows finance to function on a global level. "Financial markets
can be thought of as the first organized, global information markets operating
through networked computers," Winn says. Without information technology,
financial markets couldn't react to global developments and finance companies
couldn't consistently acquire information at the same time as their competitors.
For example, the Internet allows continuous access to credit scores and credit
ratings to all lenders, insurance companies and businesses that need financially
responsible customers.

Social Media

The information technology that runs social media on the Internet provides
financial institutions with valuable information on their customers. By
encouraging online communities associated with their products, finance
companies not only acquire information but also encourage brand loyalty. For
example, websites such as Trade King allow online stock traders to discuss
their picks and advise newcomers. Socially driven information technology
allows finance companies to contact the younger demographics that will be
their future customers.

Uses of funds in the organization

The money needed for various purposes for business startup. This
includes:
The beginning quantities of supplies, equipment, and furniture.
Purchase of building or land.
Costs of deposits for rent other start-up costs. If your business is
considering expansion, the "uses" part of the statement would show the
build-out or improvements you will need, and additional capital assets
you will need to buy.

Ways of income is distributed to the business owners

A partnership is a business with several owners. Partnerships make a profit -


or incur a loss - in the same way as other businesses, but there are some
differences in the way a partnership functions that make its profits and losses
different. In this article, we'll look at the financial structure of a partnership
and discuss how the partnership as a whole - and the partners within the
partnership - makes money.

How partners get the money

A partnership account is created for each partner. From month to month, an


amount is transferred into each partner's account.

During the year, partners may take some of their money out of the partnership
(assuming there is money available for them to take!), according to the terms
of the partnership agreement. Each partner can take a draw (drawing money
from his or her partnership account.

How partner distributions are taxed

When a business makes money, the money goes to the owners, in the form of
net income.

In the case of a partnership, the net income is divided between the partners
each year, based on their agreed-upon percentage of ownership, as set out in
the partnership agreement.

The partnership agreement should spell out each partner's distributive share
of the profits or losses. After the end of the tax year, the partnership files an
information return on Form 1065, showing the total net income or loss. Then
each partner receives a Schedule K-1 showing his or her distributive share of
this income or loss. The partner files the Schedule K-1 with the personal tax
return.

Different risks faced by financial officers

There are many ways to categorize a company's financial risks. One possible
perspective is provided by separating financial risk into four broad categories:
market risk, credit risk, liquidity risk and operational risk.

Risk is inherent in any business enterprise, and good risk management is an


essential aspect of running a successful business. A company's management
has varying levels of control in regard to risk. Some risks can be directly
managed; other risks are largely beyond the control of company management.
Sometimes, the best a company can do is try to anticipate possible risks, assess
the potential impact on the company's business and be prepared with a plan to
react to adverse events.

Market Risk

Market risk involves the risk of changing conditions in the specific


marketplace in which a company competes for business. One example of
market risk is the increasing tendency of consumers to shop online. This
aspect of market risk has presented significant challenges to traditional retail
businesses. Companies that have been able to make the necessary adaptations
to serve an online shopping public have thrived and seen substantial revenue
growth, while companies that have been slow to adapt or made bad choices in
their reaction to the changing marketplace have fallen by the wayside.

This example also relates to another element of market risk the risk of being
out maneuverer by competitors. In an increasingly competitive global
marketplace, often with narrowing profit margins, the most financially
successful companies are most successful in offering a unique value
proposition that makes them stand out from the crowd and gives them a solid
marketplace identity.
Credit Risk

Credit risk is the risk businesses incur by extending credit to customers. It can
also refer to the company's own credit risk with suppliers. A business takes a
financial risk when it provides financing of purchases to its customers, due to
the possibility that a customer may default on payment.

A company must handle its own credit obligations by ensuring that it always
has sufficient cash flow to pay its accounts payable bills in a timely fashion.
Otherwise, suppliers may either stop extending credit to the company, or even
stop doing business with the company altogether.

Liquidity Risk

Liquidity risk includes asset liquidity and operational funding liquidity risk.
Asset liquidity refers to the relative ease with which a company can convert its
assets into cash should there be a sudden, substantial need for additional cash
flow. Operational funding liquidity is a reference to daily cash flow.

General or seasonal downturns in revenue can present a substantial risk if the


company suddenly finds itself without enough cash on hand to pay the basic
expenses necessary to continue functioning as a business. This is why cash
flow management is critical to business success and why analysts and
investors look at metrics such as free cash flow when evaluating companies as
an equity investment.

Operational Risk

Operational risks refer to the various risks that can arise from a company's
ordinary business activities. The operational risk category includes lawsuits,
fraud risk, personnel problems and business model risk, which is the risk that a
company's models of marketing and growth plans may prove to be inaccurate
or inadequate.
Read more: What are the major categories of financial risk for a company? |
Investopedia http://www.investopedia.com/ask/answers/062415/what-are-
major-categories-financial-risk-company.asp#ixzz4thIxKfzR

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Types of Investment made or used in financial management

Bonds: "Bond" is a more umbrella term for any type of debt investment. When
you buy a bond, you loan money to an entity (a corporation or the government,
for example) and they pay you back over a set period of time with a fixed
interest rate. Another big chunk of your portfolio will probably be made up of
bonds.

CDs: A CD, or certificate of deposit, is a promissory note issued by a bank in


exchange for your money. You've probably seen your bank offer these.
They're a type of savings account, but they're a little different. Instead of
taking your money out at any time, you commit to leaving it in the account for
a set period. In return, they'll offer a higher interest rate based on how long
you invest in them.

Stocks: Also known as equity or a share, a stock gives you a stake in a


company and its profits. Basically, you get partial ownership of a public
company. A large percentage of your portfolio should probably be made up of
stocks.

Real Estate: According to Investopedia, any real estate you buy and then rent
out or resell is an ownership investment (though it can sometimes be classified
as an alternative investment). By their terms, the homes you own fulfils a
basic need, so it doesn't fall under this cite.

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