MONEY BEGETS MONEY, ONLY WHEN IT IS PROPERLY MANAGED
Prepared by P. A. Mhache
Yes my friends today I would like to talk a little bit about Finance, Financial Management and Financial Accounting. We normally end up with a confusion when people talk about Finance in our organization. Other thought that as you announce the terminology “FINANCE” you mean Finance Department. As the results we end up with a conflict within different departments, Finance Department are claiming that their duty has been taken by other departments while other department direct their duty to the Finance Department.
To overcome the problem let us make some reference and try to come up with a common stand about it.
According to the Oxford Dictionary of Banking and Finance, the word finance has several meanings. The first meaning is that finance refers to the practice of manipulating and managing money. In another meaning finance means the capital involved in a project, especially the capital that has to be raised either to start a new business, or to facilitate the running of an existing company, e.g. a loan of money from a bank. In the book by Maheshwari (2003)1, finance is defined as the provision of money at the time it is wanted.
In all these definitions, there is one common thing, and that is, something to do with money. It is very common to hear people saying that businesses need money to make money. Another, but equally common saying goes like “money begets money, only when it is properly managed”. The latter saying reminds us that it is not only finance that matters, but it is also how it is managed.
6Meaning of Financial Management
It is the entire range of efforts devoted to the management of sources and uses funds by the organization. It includes the efficient use of an important economic resource, namely capital funds. It concerned with the managerial decisions that result in the acquisition and financing of long term and short term credit for the firm. It deals with the situations that require selection of specific assets or combination of assets; the selection of specific liabilities (i.e. sources of funds to finance the assets) as well as the problem of size and growth of an enterprise. The analysis of these decisions is based on the expected cash inflows and outflows, and their effects upon managerial objectives. In short, financial management is concerned with management of funds, and the finance manager must see that the funds are procured in a manner that the risk, cost, and control considerations are properly balanced in a given situation and there is optimum utilisation of funds.
Financial management is the ways and means of managing money, implying the determination, acquisitions, allocation, and utilisation of financial resources (McMenamin, 1999). Financial management is therefore a process of analysing financial situations, making financial decisions, setting financial objectives, and formulating financial plans, to attain those objectives and providing effective system of financial control to ensure plans progress towards the set objectives.
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It is important, now, to distinguish financial management from financial accounting, the two disciplines that are often confused. The two are quite distinct from each other. Financial accounting is concerned with the recording reporting and measuring of business transactions. The information produced by financial accounting is used by the financial manager to take decisions to help the organisation in achieving its objectives. So financial accounting is a data collection process dealing with the accurate recording and reporting while financial management is a managerial decision making process. Financial accounting is concerned with the measurement of funds while financial management is concerned with the management of funds.
The main objective of financial accounting is to keep a systematic record of the transactions of the company (eventually producing the financial statements). On the other hand, financial management is primarily concerned with the task of ensuring that funds are procured at optimum cost and involved minimum financial risk. It also ensures that funds are available at the right time and procurement of the funds does not interfere with the right of management or exercising control over the affairs of the organization.
Is that the case! I need your comments
Saturday, February 21, 2009
Wednesday, January 28, 2009
REMAIN TO BE POOR
GREAT RULES THAT WILL HELP YOU REMAIN POOR ALL YOUR LIFE
1. Never wake up early: Keep stretching and turning in bed until you get too hungry to continue dozing. If there are no bedbugs, why hurry to get up?
2. Never plan how to spend your money: Whenever you get money, start spending it right away and when it is finished, try to count and recall how you spent it.
3. Don't think of saving until you have real big money: How can you save when you earn so little? Those telling you to save are not sympathetic to your burning needs.
4. Don't engage in activities usually reserved for the "uneducated": How can you, a graduate, engage in petty trade or home- based production? That is for people who never went to school.
5. Don't think of starting a business until an angel comes from heaven and gives you capital: How do they expect you to invest before you get millions of shillings? Even though more than half the businesses in your town were started with a few hundred shillings, you as a smart person can only start with millions.
6. Complain about everything except your own attitude: Blame the system, the government and the banks that refuse to lend you money. They are all bad and do not want you to get rich.
7. Spend more than you earn: To achieve this, buy consumer products in credit and keep borrowing from friends and employer.
8. Compete in dressing: Make sure you wear the latest clothes among all the workers in your office. Whenever your neighbour buys a new phone, get one that is more expensive.
9. Get yourself a nice second- hand car that costs more than three times your gross monthly pay: That will surely keep you in debt long enough to hinder the implementation of any bad plans that could make you accumulate capital.
10. Give your children everything they ask for since you are such a loving parent: They should not struggle for anything because you do not want them to suffer. That way, they will grow up lazy and hence poor enough to ensure they cannot help you in your old age.
If you diligently implement these 10 great rules, you will not fail to invite poverty in great measures to your homestead. That way, all important leaders, from East or West, will spend al lot of hours thinking about you, planning how to uplift your daily expenses above one dollar. Isn't it nice to be the subject of concern of all those leaders and scholars?
1. Never wake up early: Keep stretching and turning in bed until you get too hungry to continue dozing. If there are no bedbugs, why hurry to get up?
2. Never plan how to spend your money: Whenever you get money, start spending it right away and when it is finished, try to count and recall how you spent it.
3. Don't think of saving until you have real big money: How can you save when you earn so little? Those telling you to save are not sympathetic to your burning needs.
4. Don't engage in activities usually reserved for the "uneducated": How can you, a graduate, engage in petty trade or home- based production? That is for people who never went to school.
5. Don't think of starting a business until an angel comes from heaven and gives you capital: How do they expect you to invest before you get millions of shillings? Even though more than half the businesses in your town were started with a few hundred shillings, you as a smart person can only start with millions.
6. Complain about everything except your own attitude: Blame the system, the government and the banks that refuse to lend you money. They are all bad and do not want you to get rich.
7. Spend more than you earn: To achieve this, buy consumer products in credit and keep borrowing from friends and employer.
8. Compete in dressing: Make sure you wear the latest clothes among all the workers in your office. Whenever your neighbour buys a new phone, get one that is more expensive.
9. Get yourself a nice second- hand car that costs more than three times your gross monthly pay: That will surely keep you in debt long enough to hinder the implementation of any bad plans that could make you accumulate capital.
10. Give your children everything they ask for since you are such a loving parent: They should not struggle for anything because you do not want them to suffer. That way, they will grow up lazy and hence poor enough to ensure they cannot help you in your old age.
If you diligently implement these 10 great rules, you will not fail to invite poverty in great measures to your homestead. That way, all important leaders, from East or West, will spend al lot of hours thinking about you, planning how to uplift your daily expenses above one dollar. Isn't it nice to be the subject of concern of all those leaders and scholars?
Wednesday, January 7, 2009
SALASALA WATER USERS ASSOCIATION IN CONTRACT WITH DAWASCO
M
Our chairman Dr. Mgana and other member of Salasala Water Users Association signing a contract with Dawasco. This is to comply with Dawasco policy of Water Bulk Supply.
Our chairman Dr. Mgana and other member of Salasala Water Users Association signing a contract with Dawasco. This is to comply with Dawasco policy of Water Bulk Supply.
IT GOING TO COST US ABOUT 6.6ML
In order to bring close the service of water to the residents of Mboma road it requires us to raise about 6.6 ml out of connection fees. This is a cost of main line construction, Wo Can we, Yes we can. The costs required cover only 308 m, that is 78m from Reserve Tank to Col Masero and 230m from Col Masero to Kitimoto.
As I went through I realise we are about 20 residents and incase we devide the sum among ourself we are required to contribute almost about 330,000 mind you is not an exactly figure. Let advise each other what are going to do
Ha ha haaaa
We real need water at Salasala, lack is for those who are already connected but Inshallah things will be OK.
As I went through I realise we are about 20 residents and incase we devide the sum among ourself we are required to contribute almost about 330,000 mind you is not an exactly figure. Let advise each other what are going to do
Ha ha haaaa
We real need water at Salasala, lack is for those who are already connected but Inshallah things will be OK.
Thursday, December 18, 2008
MANAGEMENT FUNCTIONS
MANAGEMENT AND ITS CHALLENGE
Prepared by P. A. Mhache
Community Economic Development Student (2008/09)
Yesterday I promised to talk about what is management and key function of management, what do managers have in common in short “They get things done through their organizations”
Managers create the conditions and environment that enable organizations to survive and thrive beyond the tenure of any specific supervisor. A key aspect of managing is recognizing the role and importance of others.
Good managers know that the only way they can accomplish anything at all is through the people of the organization.
Management scholar Mary Parker Follet defined management as “the art of getting things done through people” Peter Drucker recently management theorist stated that the job of managers is to give direction to their organizations, provide leadership and decide how to use organizational resources to accomplish goals.
Getting things done through people and other resources and providing leadership and direction are what managers do. By saying so the following is the definition of Management.
Management is the attainment of organizational goals in and effective and efficient manner through planning, organizing, leading and controlling organizational resources.
There are two important ideas in this definition: one the four functions- planning, organizing, leading and controlling and second is the attainment of organizational goals in an effective and efficient manner.
Let me ask one question, you can answer it through your comment on this article or by any means. Kinondoni Municipal does it have a goal “Organizational goals” does it have resources? For those with answer of “YES” they’ll agree with me that the above definition is within our organization.
Kinondoni Municipality has its vision and mission statement. Let me remind you about this, I don’t mean that you are not aware of that but I think you can forget about it or we can give a minimal weight on it.
OUR VISION:
‘A community, which is motivated, dynamic, with socio economic development’
OUR MISSION:
‘Provision of quality services to the community through effective and efficient use of resources, capacity building, good governance and rule of
law hence improve the living standard of people’
To attain our vision and mission we need resources but always resources are scarce whether in term of human resources as well as material resources. To survive we are required to choose through scale of preferences. The whole activities must be done through Management.
By saying so, what is planning by the way, planning defines where the organization wants to be in the future and how to get there.
Planning means defining goals for future organizational performance and deciding on the tasks and use of resources needed to attain them.
Lack of planning or poor planning can hurt an organization’s performance. And we can end – up being busy but busy for nothing. No one will recognize our efforts. Our DC complained that we are good on papers “ECXELLENT” but nothing moving ON, is it true?
Another function of Management is Organizing, it involves the assignment of tasks, the grouping of tasks into departments, and the assignment of authority and allocation of resources across the organization.
Leadership is becoming an increasingly important management function. Leading is the use of influence to motivate employees to achieve organizational goals. Leading means crating a shared culture and values, communicating goals to employees throughout the organization, and infusing employees with the desire to perform at a high level.
Leading involves motivating entire departments and divisions as well as those individuals working immediately with the manager.
Controlling is the fourth function in the management process. It means monitoring employees’ activities, determining whether the organization is on target toward its goals and making corrections as necessary. Managers must ensure that the organization is moving toward its goals.
By doing self assessment, are we doing the four function of management? If Yes are we on tract to achieve our goals and if Not what is wrong with us, are we COLD to be WARMED, I don’t know.
Next time before X-mass I would like to share with you about Management skills which includes Conceptual Skills, Human Skills and Technical Skills. I would also share with you about management type including Top Managers, Middle Managers and First Line Manager.
Please you can make your comment on my web www.ngorora.blogspot.com
19/12/2008
Thank you.
Prepared by P. A. Mhache
Community Economic Development Student (2008/09)
Yesterday I promised to talk about what is management and key function of management, what do managers have in common in short “They get things done through their organizations”
Managers create the conditions and environment that enable organizations to survive and thrive beyond the tenure of any specific supervisor. A key aspect of managing is recognizing the role and importance of others.
Good managers know that the only way they can accomplish anything at all is through the people of the organization.
Management scholar Mary Parker Follet defined management as “the art of getting things done through people” Peter Drucker recently management theorist stated that the job of managers is to give direction to their organizations, provide leadership and decide how to use organizational resources to accomplish goals.
Getting things done through people and other resources and providing leadership and direction are what managers do. By saying so the following is the definition of Management.
Management is the attainment of organizational goals in and effective and efficient manner through planning, organizing, leading and controlling organizational resources.
There are two important ideas in this definition: one the four functions- planning, organizing, leading and controlling and second is the attainment of organizational goals in an effective and efficient manner.
Let me ask one question, you can answer it through your comment on this article or by any means. Kinondoni Municipal does it have a goal “Organizational goals” does it have resources? For those with answer of “YES” they’ll agree with me that the above definition is within our organization.
Kinondoni Municipality has its vision and mission statement. Let me remind you about this, I don’t mean that you are not aware of that but I think you can forget about it or we can give a minimal weight on it.
OUR VISION:
‘A community, which is motivated, dynamic, with socio economic development’
OUR MISSION:
‘Provision of quality services to the community through effective and efficient use of resources, capacity building, good governance and rule of
law hence improve the living standard of people’
To attain our vision and mission we need resources but always resources are scarce whether in term of human resources as well as material resources. To survive we are required to choose through scale of preferences. The whole activities must be done through Management.
By saying so, what is planning by the way, planning defines where the organization wants to be in the future and how to get there.
Planning means defining goals for future organizational performance and deciding on the tasks and use of resources needed to attain them.
Lack of planning or poor planning can hurt an organization’s performance. And we can end – up being busy but busy for nothing. No one will recognize our efforts. Our DC complained that we are good on papers “ECXELLENT” but nothing moving ON, is it true?
Another function of Management is Organizing, it involves the assignment of tasks, the grouping of tasks into departments, and the assignment of authority and allocation of resources across the organization.
Leadership is becoming an increasingly important management function. Leading is the use of influence to motivate employees to achieve organizational goals. Leading means crating a shared culture and values, communicating goals to employees throughout the organization, and infusing employees with the desire to perform at a high level.
Leading involves motivating entire departments and divisions as well as those individuals working immediately with the manager.
Controlling is the fourth function in the management process. It means monitoring employees’ activities, determining whether the organization is on target toward its goals and making corrections as necessary. Managers must ensure that the organization is moving toward its goals.
By doing self assessment, are we doing the four function of management? If Yes are we on tract to achieve our goals and if Not what is wrong with us, are we COLD to be WARMED, I don’t know.
Next time before X-mass I would like to share with you about Management skills which includes Conceptual Skills, Human Skills and Technical Skills. I would also share with you about management type including Top Managers, Middle Managers and First Line Manager.
Please you can make your comment on my web www.ngorora.blogspot.com
19/12/2008
Thank you.
Wednesday, December 17, 2008
KINONDONI WE CAN CHANGE
MANAGEMENT AND ITS CHALLENGE
Prepared by P. A. Mhache
Community Economic Development Student (2008/09)
I would like to share with my friends and other staffs especially in a Local government about management and its challenges. It is not a new concept, every body knows it but I think with this way it can be a good means of reminding each other. People are claiming that Local government staffs “Managers” they are not performing, politician has tried to advice that it could be better if all staffs from the organization “Local Government” they could pack off and go leaving the organization with a green light to prosper. Is this true? Am talking about Local Government Staffs and my concentration centre is Kinondoni Municipal council staffs.
Our Regional Commissioner (Mzee Kandoro) and our District Commissioner (Col F. Masawe) claimed that we are “COLD” and we need to be “WARMED”, is this true? Head of department and section were required to swear that they can change “ YES WE CAN”. To me it was a great challenge, whatever comment made during that session lead me to think that am not a part of the problem, but no way I am a part of it.
With that reasons I tried to go back to my program “CED Programme” and make some reference to identify what is the problem, why that problem and what resources available to solve the problem. I would like to share with you who play a role like a Manager.
Managers need to be able to understand and communicate information to others, maintaining good relationships with customers and members of the organization and make clear, rational decisions.
Manager makes plans for her department or company, organizes and leads staff and monitors activities to keep the department or company on target towards it goals. Is it what we are doing? If not we can’t change.
Managers are constantly dealing with uncertainty and unexpected events, whether it be something as small as the sudden loss of a major customer or something as large and dramatic.
Kinondoni like other organization is coping with diverse and far-reaching challenges, challenge about city cleanness “garbage collection”, challenges of Machinga where by every corner- of the road reserves and open spaces are now used as a market centre, no one doesn’t know its result, poor infrastructure, issue of education and so on.
Solid Management skills and actions are the key to helping this organization, workers are asking that managers share rather than hoard power. A new kind of leader is needed to guide through this turbulence – a strong leader who recognizes the complexity of today’s world and realizes there are no perfect answers.
The revolution asks managers to do more with less, to engage whole employees, to see change rather than stability as the nature of things, and to create vision and cultural values that allow people to create a truly collaborative workplace.
This new management approach is very different from a traditional mindset that emphasizes tight top-down control, employee separation and specialization and management by impersonal measurements and analysis.
Making a difference as a manager today and tomorrow requires integrating solid, tried-and true management skills with new approaches that emphasize the human touch, enhance flexibility and involve employees’ hearts and minds as well as their bodies.
Successful departments and organizations don’t jus happen – they are managed to be that way. Managers in every organization today face major challenges and have the opportunity to make a difference.
Every day managers solve difficult problems, turn organization around, and achieve astonishing performances.
We as manager let us remember what our Regional Manager Mzee Kandoro told us, to me that wise words aimed to make us change and Yes We Can we promised.
Protect your credibility/status
Protect reputation of your family
Protect reputation of your organization
And be Mzalendo
We all face challenges but with a little skills we can minimize if not eradicating that challenges.
Next time I would like to talk about definition of Management and four management functions (planning, organizing, Leading, Controlling)
Please you can make your comment on my web http://www.ngorora.blogspot.com/
Thank you.
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