Business Analysis Questions What is the Role of a Financial Manager? A financial manager is any person that is entrusted with monetary issues of a given institution for a particular time. Although different organizations define the financial management department differently, depending on the role and duties that are set, financial managers in all firms perform almost similar duties. This paper will focus on those roles that the managers are entrusted. The first duty that the managers do is the oversight of the preparation, ratification and delivery of financial reports and statements, as BlurtIt. com (2009) confirm.
These range from day books, such as journals, sales and credit day books, cash books and so on, to periodicals, such as the income statements and balance sheets. Although in many firms the manager doest not actively participate in the day to day direct update of the information to these books, he oversees and guides the preparation and final reports. Secondly, the financial managers guides and directs the investment portfolio of a company. Companies of this day and age multi-invest in not only their primary industry, but also in other industries.
The financial management analyses and recommends the opportunities for investments that the companies ought to pursue. The financial managers of the 21st century companies also have the duty of monitoring and assessing the risk factor. Financial managers are often given the responsibilities that risk managers have because they are best placed to handle such affairs (BlurtIt. com, 2009). Ultimately, the role of the financial manager is the core aspect of any company in terms of the long term strategies and objectives set. Learning Curve A learning curve in a layman’s language is the rate or the speed with which an individual(s) achieves a given objective within a particular time frame.
These objectives include absorption of information, mastering a particular skill or finishing particular tasks that one is entrusted with. It is used in economics, business psychology and so forth, but this paper will focus on the business aspect (Ritter, and Schooler, 2002). In business, the learning curve can be used to explain the business growth cycle curve, as well as the organization behavior patterns amongst the human resource.
This means that as the business starts at the development stage to the later stages of maturity and decline, there is always a different level of productivity and return at each stage. On the other hand, the human resource also performs differently at each stage of the curve subject to different factors or limits, such as experience, technology, as well as resources. The curve of business growth at the initial stages is not steep showing the learning of the people involved, as well as the slow speed of productivity. This is because of the limiting factors already mentioned.
An increase is witnessed as the stages advance to the growth phase and maturity phase where the curve is at its steepest (Ritter, and Schooler, 2002). At this point it is clear that there is full utilization of the resources and returns are very good. In the decline stage, the objective is already met, hence, a negative return is experienced. References Ritter, E. and Schooler, L., 2002. The Learning Curve, International Encyclopedia of Behavioral Sciences. BlurtIt. com, 2009. What Is The Role Of Finance Manager In An Organization? [Online] Available at [Accessed 20 Dec.