Irrespective of the nature of an organization’s work, it is important to have a financial manager. A financial manager’s primary objective is to plan, organize, control, and direct organizational finances in a manner that complies with relevant laws and regulations and brings organizational success (Al Ahbabi & Nobanee, 2019). A core role performed by these managers is providing and interpreting financial information for other managers and staff. For instance, a financial manager in a particular company could analyze financial ratios to help determine the most efficient method of allocating funds. Therefore, organizational financial managers supervise and control all the firm’s financial functions, unlike other managers.
Financial managers make more technical resolutions in comparison to other managers. For instance, the top-level managers depend on the financial managers when they have to make a technical decision, such as a lease versus buy decision (Brigham & Houston, 2021). In an organization, the financial manager will ensure compliance with tax regulations, diversification of the organization’s portfolio, and deal with technical and financial aspects of mergers and acquisitions, among other roles. On the other hand, general managers deal with setting goals, arranging tasks, motivating workers, and monitoring the organization’s performance.
The roles of financial managers are also different from those performed by specified types of managers other than general managers. According to Wayne and Martocchio (2019), they differ from human resource managers, whose primary role is to ensure proper management of human resources (Wayne & Martocchio, 2019). They are also different from IT managers concerned with coordinating computer-related activities and marketing managers who create strategies to boost sales.
Admittedly, organizational financial managers are more concerned with a firm’s financial functions, unlike other managers. They are different from the general managers who focus on the general firm’s activities such as planning, organizing, controlling, and directing. They also differ from the human resource managers who recruit, direct and manage employees. Moreover, financial managers vary from IT managers who ensure computer information systems are implemented successfully and satisfy the organization’s requirements.
References
Al Ahbabi, A. R., & Nobanee, H. (2019). Conceptual building of sustainable financial management & sustainable financial growth. Available at SSRN 3472313.
Brigham, E. F., & Houston, J. F. (2021). Fundamentals of financial management: Concise edition. (11th ed.). Cengage Learning.
Wayne, R., & Martocchio, J. J. (2019). Human Resource Management (14th ed.). Pearson Education Limited.