Managing Financial Resources in Health and Social Care Essay - 3

Managing Financial Resources in Health and Social Care - Essay Example Financial Management is therefore an important aspect which refers to the effective and efficient management of funds (money) in such a way that the objectives and goals of the organziation are accomplished. The department of finance requires the specialist functions that are connected with the top management at hierarchal ladder. Financial Management has been defined by Joseph Massie as the operational activity in a business organization which serves the purpose of obtaining the funds and utilizing them in an effective manner for the efficient business operations. Weston and Brigham describe this term as a domain of financial decision making that harmonizes the enterprise goals and individual motives (Weston, Fred and Brigham, Eugene, pp. 25-46). It is evident from the definitions that researchers and financial experts have recognized the purpose of financial management as an activity which pertains specifically to the planning, obtaining, monitoring, controlling and managing the funds or money in a business. It is a domain of business management activities within an organization that is dedicated to the careful selection and utilization of the capital and sources of finance for enabling a business organization to proceed into the direction of goal achievement (Weston, Fred and Brigham, Eugene, pp. 25-46). Thus, financial management involves the raising and allocation of capital judiciously. In order words, it is directly related to the concept of capital budgeting. Finance is the lifeblood of any organization. The financial management, until the period of 1960s, was considered to be of a descriptive nature in all industries along with its key role being to secure the financial requirements for fulfilling the operating objectives of the business. However, in the present era, the capacity of financial management contributes vitally to the management of any organization irrespective of its nature and structure. Now, the key