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How does the modern financial manager differ from the traditional manager?
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∙ 14y ago
The modern financial manager is more focused on strategic planning and decision-making than the traditional manager. The traditional manager is more focused on operational tasks and day-to-day management.
David Denton
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What is traditional manager?
Traditional management refers to management that has been in place for many years. Most places have had to change their traditional management styles because they could not keep up with things in the modern world.
What is the difference between a traditional concept of business and a modern concept of business?
The traditional concept of business is profit motive but the modern concept of business is service oriented.
What is the difference between a modern office and a traditional office?
The difference between a modern office and a traditional office is the amount of technology that is present. A traditional office might have had a phone, a desk, typewriter, Dictaphone, and a filing cabinet. The modern office has computers, printers, copiers, cell phones, and other advanced technical devices.
What is the difference between traditional office and modern office?
The basic difference between a traditional office and a modern one has to do with the prevelance of wood panneling and portraits of past presidents of the company. One halmark of the modern office though is the presence of a napping room.
What are the advantages and disadvantages of traditional and modern control techniques in management?
One disadvantage of traditional control techniques often create distance between managers and employees. Modern control techniques have the disadvantage that they can create ambiguity in roles. The advantage of traditional control is that is creates a sense or order.
Modern financial manager vs traditional financial manager?
The modern financial manager uses computer technology to develop strategies. The traditional financial manager uses research and evaluation to develop strategies.
How does modern financial manager differ from the traditional financial manager?
The modern financial manager is more focused on strategic planning and decision-making than the traditional manager. The traditional manager is more focused on operational tasks and day-to-day management.
How does the modern financial manager differ from the tradition financial?
The modern financial manager is more focused on strategic planning and decision-making than the traditional manager. The traditional manager is more focused on operational tasks and day-to-day management.
What is the difference in traditional and modern approach in financial management?
traditional and modern approches of financial manag
how does the modern financial manager differ from the traditional financial manager Does the financial managers role differ for large diversified form and the small medium size firm?
A modern finance manager is totally different from traditional finance manager. Initially the finance manager was concerned and called upon whenever funds were required by the firm. The traditional finance manager was given a target amount of funds to be raised and was given the responsibility of procuring these funds. So, his function was for raising the funds only. Once the funds were procured his function was over. However, over a period of time, the scope of his function is tremendously widened. His presence at present is required at every moment whenever the decision involving funds is to be taken. The functions of traditional finance manager are: Overall financial planning and control Raising funds from different sources Selection of fixed assets Management of working capital Any other financial event While performing these functions the scope of finance manager increased from traditional to modern and so has their working. Today, a modern finance manager has to operate a link between firms operations on one hand and the capital market on other hand. The role of finance manager as an intermediary arises because of two way cash flows between the firm and the investors in the first instance the investors provide funds through capital market to the firm and second, the firm distributes profit among the investors in the form of interest or dividends. So the finance manager has to take care of the interest of the investors as well as the firm. While performing these functions, he is required to take different decisions which can be broadly classified into 3 groups: Investment decision: Firms has scarce resources that must be allocated among competitive uses. The investment decisions include not only that create revenues and profits but also those that save money. Financing decision: Financing decision deals with the financing pattern of the firm. As a firm makes decisions concerning where to invest these resources they also have to decide how they should arise resources. There are 2 main sources of finance- a. The shareholders funds b. Borrowed funds The borrowed funds are always repayable and the shareholders funds are not repayable. Dividend decision: Another major area of decision making by a finance manager is dividend decision. It deals with appropriation of profits after tax. These profits are available to be distributed among the shareholders or can be retained by the firm for reinvestment within the firm.
Evolution of financial management?
The evolution of financial management can be classified in to three stages: 1. Traditional Stage 2. Transitional Stage 3. Modern Stage
What is the behavioral assumption of the modern financial-economic theory?
The behavioral assumption of the modern financial-economic theory runs counter to the ideas of trustworthiness, loyalty, fidelity, stewardship, and concern for others that underlie the traditional principal-agent relationship.
For which decision areas is the financial manager responsible?
Answer-Modern approach of financial management provides a conceptual and analytical framework for financial decision making. According to this approach there are 4 major decision areas that confront the Finance Manager these are:- a) Investment Decisions; b) Financing Decisions; c) Dividend Decisions d) Financial Analysis, Planning and Control Decisions
What is traditional manager?
Traditional management refers to management that has been in place for many years. Most places have had to change their traditional management styles because they could not keep up with things in the modern world.
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