The Role of Finance Manager And Its Responsibility in a Complex Organization

It’s around four years now since recession hits the world and makes powerful economies to go out of cash. Large organizations started to cut their jobs and discontinue their operations in other regions and many go default. The businesses that enjoyed showing handsome revenue in their financial statements are no longer in that position as they are now struggling for their survival. In this situation, the role of finance manager is critical.Changing world makes it a challenging job for a finance manager to find ways that can keep business operate smoothly. This includes finding new sources of finance for their capital investments as well as to fulfill their short-term commitments. Analysis of new projects is another duty of any finance manager. Capital investment decisions are another important duty of a finance manager, he has to make a decision whether new project is worthwhile to take and utilize the resources in this new project or go with the exist project and all available scarce resources should be employed for ongoing projects. Scarcity of available resources forced the finance manager to choose the best outcome of its options.In times of recession, shareholders will only be intact to their organizations, if they are being paid a sufficient amount of the dividend and here finance manager will have the responsibility to ensure that he is entertaining the shareholders along with other stakeholders of the organization. Finance department’s duty is to maximize the wealth of the organization.Today’s business is changed completely from the past as it becomes more complex and requires expertise in every area of business whether it is production line, administration, engineering department HR department or finance, every department needs specialists to deal with the continuous changing the business environment. Now finance department also needs dedicated team of individuals who are experts in financial management and can apply their knowledge to the next level that can benefit their organization in achieving its corporate objectives. Hence, finance manager has many different tasks to do, he is considered the most important element in the decision-making body as he has a role concerning the entire organization and its stakeholders.The corporate objective of any organization depends on several factors, and financial manager has a lot to do with it in achieving the corporate objectives. Efficient dividend policy, investment decision, short-term financing, new project’s worth assessment and effective foreign currency hedging will ensure the success of financial manager and supports his company to achieve the overall corporate objectives.