Scribd Logo
Upload

Welcome to Scribd!

  • 432 views

    The Role of Financial Manager in The Case of Amhara Pipe Factory

    Uploaded by

    Animaw Yayeh
    1) The document discusses the role of the financial manager at Amhara Pipe Factory in Ethiopia. It outlines the typical responsibilities of a financial manager but notes that at Amhara Pipe Factory, the financial manager's duties are more operational and routine rather than strategic. 2) While the financial manager tries to make the factory profitable and valued by customers, this is done in a traditional rather than modernized way. Financial management practices are unorganized and lack expertise. 3) To be more effective, the financial manager needs to provide leadership in cost-effective resource use, involve in decision-making by analyzing financial information, and ensure resources are protected from waste, fraud and abuse by improving accounting systems.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd

    The Role of Financial Manager in The Case of Amhara Pipe Factory

    Uploaded by

    Animaw Yayeh
    432 views15 pages
    1) The document discusses the role of the financial manager at Amhara Pipe Factory in Ethiopia. It outlines the typical responsibilities of a financial manager but notes that at Amhara Pipe Factory, the financial manager's duties are more operational and routine rather than strategic. 2) While the financial manager tries to make the factory profitable and valued by customers, this is done in a traditional rather than modernized way. Financial management practices are unorganized and lack expertise. 3) To be more effective, the financial manager needs to provide leadership in cost-effective resource use, involve in decision-making by analyzing financial information, and ensure resources are protected from waste, fraud and abuse by improving accounting systems.

    Original Title

    The Role of Financial Manager in the Case of Amhara Pipe Factory

    Copyright

    © Attribution Non-Commercial (BY-NC)

    Available Formats

    PPTX, PDF, TXT or read online from Scribd

    Did you find this document useful?

    Is this content inappropriate?

    1) The document discusses the role of the financial manager at Amhara Pipe Factory in Ethiopia. It outlines the typical responsibilities of a financial manager but notes that at Amhara Pipe Factory, the financial manager's duties are more operational and routine rather than strategic. 2) While the financial manager tries to make the factory profitable and valued by customers, this is done in a traditional rather than modernized way. Financial management practices are unorganized and lack expertise. 3) To be more effective, the financial manager needs to provide leadership in cost-effective resource use, involve in decision-making by analyzing financial information, and ensure resources are protected from waste, fraud and abuse by improving accounting systems.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    432 views15 pages

    The Role of Financial Manager in The Case of Amhara Pipe Factory

    Uploaded by

    Animaw Yayeh
    1) The document discusses the role of the financial manager at Amhara Pipe Factory in Ethiopia. It outlines the typical responsibilities of a financial manager but notes that at Amhara Pipe Factory, the financial manager's duties are more operational and routine rather than strategic. 2) While the financial manager tries to make the factory profitable and valued by customers, this is done in a traditional rather than modernized way. Financial management practices are unorganized and lack expertise. 3) To be more effective, the financial manager needs to provide leadership in cost-effective resource use, involve in decision-making by analyzing financial information, and ensure resources are protected from waste, fraud and abuse by improving accounting systems.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPTX, PDF, TXT or read online from Scribd
    Download as pptx, pdf, or txt
    of 15

    The Role of Financial Manager In The Case of Amhara Pipe Factory

    By Animaw Yayeh
    2/18/2012

    MBA University of Gondar - Special Arrangement

    Introduction
     The ever increasing of organizations socially and as per

    the interest of owners has contributed a lot for the emergence of financial management as a distinct management discipline.  The role of financial manager can be best understood by analyzing the definition of financial management.  Financial management is an integrated decision-making process concerned with acquiring, financing, and managing assets to accomplish some overall goal within a business entity.
    2/18/2012

    MBA University of Gondar - Special Arrangement

    Introduction Contd
     The duties and responsibilities of the financial manager are

    far reaching.  In broad terms, the two main functions of the financial manager concern acquiring and allocating funds among a firms activities.  For this reason the financial manager acts as a liaison between other departmental managers and the General Manager of the organization.  In todays rapidly changing environment, the financial manager must have the flexibility to adapt to external factors.
    2/18/2012

    MBA University of Gondar - Special Arrangement

    The Roles and Responsibilities of a Finance Manager


     The role of financial manager is to balance the inside

    and outside pressures of the organization that he is appointed.  The internal and external financing maters aims at keeping the organization strong and healthy so as to be competent in the market.  These include the identification of risk and the means to minimize.

    2/18/2012

    MBA University of Gondar - Special Arrangement

    The Roles Contd


     Financial analysis and planning - is concerned with

    determining the proper amount of funds to employ in the firm. The financial planning including
        assessing the funds requirement, identifying and sourcing funds, allocation of funds and income and controlling the use or utilization of funds towards achieving the primary goal of profit/wealth maximization.

     It also consists of the evaluation of the financial

    condition and operating performance of a.


    2/18/2012

    MBA University of Gondar - Special Arrangement

    The Roles Contd


     Investment decisions - a decision that is concerned with

    the use of funds in buying, holding, or selling of all types of assets that have some return sometime in the future. The efficient allocation of funds to specific assets or investment.  Financing and capital structure decisions - are concerned with the acquisition of funds or the raising funds on as favorable terms as possible to be used for investing and financing day-to-day operations. Capital structure decisions aims at determining the composition of liabilities and equities to start up the business.
    2/18/2012

    MBA University of Gondar - Special Arrangement

    The Roles Contd


     Management of financial resources - Focus on the

    management of current asset and current liability (working capital).  Risk management - The financial manager determines the appropriate riskreturn tradeoff to maximize the value of the firms stock or wealth. Financial decisions involve a riskreturn tradeoff in which higher expected returns are accompanied by higher risk.

    2/18/2012

    MBA University of Gondar - Special Arrangement

    The practice in Amhara Pipe Factory


     Habitually, the management of business finance which

    is performed by accountants who focused on reporting and organizing financial data are seldom involved in the decision-making process.  The accounting function is basically paper-driven and human resource intensive, and accountants functioned more or less as clerks.  However there is an increasingly improvement in the use of different softwares in todays advances in IT, as a result of the competitive pressures of globalization and corporate restructuring.
    2/18/2012

    MBA University of Gondar - Special Arrangement

    The practice in Amhara Contd


     Structurally the financial manager of the factory has six

    employees under its direct responsibility (the purchaser, the casher, two accountants and two store keepers).  There is no as such a clear cut duties and responsibilities for the financial manager and is a joker to experience the failure and the success of the factory being so proactive than the rest of the employees under his supervision.  The financial manager duties are far to be managerial instead so operational and routine.

    2/18/2012

    MBA University of Gondar - Special Arrangement

    Duties of the financial manager


     ordering of purchase in a national and international level    

    and fulfilling the requirements thereof. facilitation of loading and unloading of raw materials purchased. facilitation of documents for the payment signing of checks and payment vouchers by verifying the necessary documents. writing letters to the concerned parties in relation to payment and other activities.
    MBA University of Gondar - Special Arrangement

    2/18/2012

    Duties of the financial manager Contd


     supervise the work of the employees under his   

    supervision. approve, correct and produce financial statements. check the availability of the raw material for the factorys continuous operation. accept sales request from different customers of the factory via the sales department and collect sales revenue. participate in the decision making activities of the factory.
    MBA University of Gondar - Special Arrangement

    2/18/2012

    In Sum
     The financial manager tries to have an organization that

    is profitable and highly valued in customers.  This is being exercised in a routine and traditional way than being strategic and based on modernization in management practices and acceptance of tools to handle resources in an effective manner.  Even though, the financial management practice is being exercised in unorganized and in-expertise way.

    2/18/2012

    MBA University of Gondar - Special Arrangement

    Comment
     The financial manager has to play a variety of important

    roles in creating and maintaining an effective and successful financial management in the factory including:  Providing leadership in the cost-effective use of an organizations financial resources by employing effective general and financial management practices;  Involving actively in organizational decision-making by providing timely and reliable financial and performance information and by analyzing the implications of this information in relation to the achievement of the factorys goals and objectives;
    2/18/2012

    MBA University of Gondar - Special Arrangement

    Comments Contd
     Ensuring that the organizations resources are

    protected from waste, fraud, and abuse by improving its accounting systems and internal controls.  Consider competencies to utilize more in the factory and outside of the factory if any.

    2/18/2012

    MBA University of Gondar - Special Arrangement

    Thank You!!!

    2/18/2012

    MBA University of Gondar - Special Arrangement

    You might also like