Financial and Personnel Management Differentiated
“The financial management deals with the estimation of financial requirements of the organization. Personnel management deals with people at work. It consists of managing human resources. Effective management of human resources is one of the most crucial factors.”
One of the most important parts of any business includes financial and personnel management. It refers to the procurement and effective utilization of funds required in business.It is concerned with identifying, obtaining and utilization of long term funds. The financial manager is concerned with procurement of funds from various sources so that a firm always has at its disposal, adequate funds to finance the various business activities. He is also responsible for the proper utilization of these funds.
The funds must be utilized in purchasing a proper mix of various types of assets. Financial management is thus plays a very important function. Many companies, which are otherwise very profitable, have had to declare insolvency, just because their management funds were not proper.
The financial management deals with the estimation of financial requirements of the organization. It selects the source of finance and takes decisions for the investment of those sources. The manager should be determined for the optimum capital investment and proper allocation of funds. He should prepare, analyze and interpret financial statements to negotiate with others.
Personnel management deals with people at work. It consists of managing human resources. Effective management of human resources is one of the most crucial factors associated with the success of an enterprise.
The main function of the personnel management is to provide efficient manpower to the organization. It not only recruits the employees but also trains them for the achievement of desired results. It is concerned with the interests of subordinates too. It provides compensation and promotions whenever required.
It is also concerned with the welfare activities to satisfy the subordinates and to build healthy work relationships. Personnel manager is responsible for the maintenance of service record and research work.
He organizes the personnel in such a way that it helps the management in attaining its goals. In this way conflicts are reduced to a minimum and effective coordination is effected with the subordinates.
Author - DeeKay
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