❖ INTRODUCTION
The management process and financial management
The purpose of management has been described as making people capable of joint
performance through common goals, common values, the right structure, and providing
the training and development they need to perform and to respond to change.
The central purpose, then, of the management process is to secure, as it faces change,
the vitality and endurance of an organization through the ongoing co-ordination of
activities, efforts and resources.
The management process in this write-up divides into component parts that focus
respectively on:
- Organizational direction setting;
- Organizational structuring;
- Organizational resource use;
- Organizational commitment;
- Organizational change; and
- Organizational control
Financial management is the process of managing financial resources and other related
resource efficiently and effectively i.e. cost determination and financial control, the
provision of information for management planning and control with focus on the
reduction of waste in resources used in business processes to generate or create value
through the effective and efficient use of resources. See figure 1.
