What is the relationship between Financial management and other management disciplines?

Answer 1

There is a close relationship between the finance function on the one hand and production, procurement, marketing, personnel function on the other. Almost all business activities in an organization directly or indirectly involve the acquisition and use of funds. The determination of production, procurement and marketing strategies are the prerogative of the chief of production, purchase and marketing divisions respectively, but for implementing their decisions funds are required. For example, the production department may decide to replace an old machine with a new one to increase the production capacity but it has financial implications too. Similarly, the purchase and sales promotion policies are laid down by the purchase and marketing divisions respectively, but procurement of materials, advertising and other sales promotion activities cannot be carried out without funds. Likewise, the recruitment and promotion of staff is the responsibility of the personnel department but recruitment and promotion of employees require funds for the payment of wages, salaries and other benefits. Many times, it may be difficult to demarcate where the one function ends and other starts. It may, however be noted that although the finance function of raising and using funds has a significant effect on other functions, it need not limit or obstruct the general functions of the business. It is possible that a firm facing financial difficulties may give more weightage to financial considerations and devise its own production and marketing strategies to suit the situation. On the other hand a firm with plenty of funds may not have much rigidity with regard to financial considerations vis-Ã -vis other management functions. In such a firm, financial policies may be adjusted to the needs of the decisions relating to production, procurement, marketing and other functions email Based, Online Homework Assignment Help inRelationship Between Financial Management and Other Areas of Management Transtutors is the best place to get answers to all your doubts regarding relationship between financial management and other areas of management with examples. Transtutors has a vast panel of experienced in relationship between financial management and other areas of managementfinancial management tutorswho can explain the different concepts to you effectively. You can submit your school, college or university level homework or assignment to us and we will make sure that you get the answers related to relationship between financial management and other areas of management

Answer 2

The process of managing a company's money is known as financial management. Budgeting, cash flow, and investment are all part of it. Because they are all part of the business world, financial management is linked to other disciplines such as accounting and economics.

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