Financial Management

The Concept of Financial Management

The activity concerned with planning, organizing and following-up the
movements of the incoming and outgoing funds of the organization in
order to harmonize between two considerations: the return on investment
and the return on financing to provide the necessary liquidity and achieve
the target profit.
Financial Management Tasks
First :Financial Tasks
1-financial planning:
Measures that ensure consistency in the movements of spending and
spending, in order to avoid cases of financial hardship
2- Financial organization: 
Coordination between the efforts of employees in the relevant department
(financial management and the efforts of workers in other departments,
for example, in the department of personnel and payroll).
3- Financial Control
 to follow up on the spending and arrest movements that occur in the
organization
Secondly, Functional duties
Providing the necessary liquidity for spending and the necessary
repayment of creditors
Achieving profitability at targeted levels
financial management decisions
Financing Decision: Procuring the required funds in a timely manner
Investment decision: related to how the money is spent
 Human Resource Management

People Management Goals

Get competent people and benefit from their efforts to the maximum
Finding the best possible job opportunities and providing opportunities
for advancement 
Achieving a balance between the available work force and the manpower
that can progress
finding the best and most productive work that allows individuals to exert
their full potential
Ensuring protection and preservation of the workforce and providing a
working atmosphere that swears by freedom of movement and change

People Management Jobs

First, Human Resource Planning

Estimating the institution’s needs of individuals in terms of quantity and
quality during a certain period (for example, six), with the identification
of the jobs they occupy, the required qualifications, and the duties and
responsibilities that are required to be met.
Job stages
Study the objectives of the organization and that organization in order
to identify the influences that affect the needs assessment
Demand estimate
Determining the quality of people
Determining the number of people
supply prediction
Determine the surplus or deficit
Facing surplus or deficit
The money market is characterized by scarcity = workers rearrangement
The labor market is characterized by abundance, adopting a layoff policy
and strict recruitment conditions

Second, job analysis

Hope's familiarity with the details of each job separately in terms of
tasks, duties and responsibilities for the employee, the employee's
conditions, the surrounding circumstances

Third: Put the right person in the right place

Selection and appointment: searching for the skills required for the
facility and those who have the potential to fill the job

promotion
The employee’s transition from one job to another with higher
responsibilities and tasks depends on three foundations:
1-Seniority
 2-Proficiency
 3-Seniority and Proficiency together

shifting
shifting from one job to another at the same organizational level and with
similar wages to some extent

Fourth: Training and workforce development

Educating the individual and imparting knowledge and skill or helping
workers to gain effectiveness and efficiency

Steps and foundations of training

Discover the need for training to raise the productivity of the
organization
Identification of training needs
Designing training programs
Program Execution
Evaluation of training programs
Employee performance appraisal
  Marketing 
An organized process aimed at planning, pricing, promoting and
distributing goods, services, ideas and forecasting the market situation to
facilitate its flow and flow from the producer to the consumer to satisfy
the desires
The difference between the final buyer and the industrial buyer
The end buyer buys the item with the intent to use it
The industrial buyer buys the commodity with the intention of reselling it
or producing another commodity

Elements of the Marketing Mix

The 4 elements of the marketing mix include the following:
 Product 
 Price. 
 Promotion. 
 Process.
first: product
 Product (or Service) Your customer only cares about one thing: what your product or
service can do for them.

It is the first and most important element of the marketing mix and
consists of
A commodity is a tangible product
Service is the tangible and intangible product
Commodities are divided into
Final Goods Goods to be purchased with the intent to consume
Industrial Goods Goods to be purchased with the intent to resell

Steps to introduce a new product

Collect ideas, filter ideas
Market selection Product introduction

Second: pricing
The monetary value of the commodity
Many factors go into a pricing model.

Pricing goals
Maximizing profit, increasing sales volume, maintaining market stability

Third: promotion
Communicating with the public in order to influence their behavior
Elements of the Promotional Mix
Advertising
 Personal Selling
 Sponsorship
 Sales 
Promotion Direct Marketing

Fourth: distribution ( process)

Distribution Channels: Institutions that transfer a commodity from the
producer to the consumer
Distribution method
The short (direct) way: there is one or no mediator

product to consumer
Product to retailer to consumer

The long way (indirect) the presence of two mediators or more

The product to the agent to the wholesaler to the retailer to the consumer
 Third, production management
Inputs of production elements (labor, capital, land, organization)
Capacity or service outputs
Productivity: A criterion used to measure the production process and its
quality
Product: Good or service

production operations
A series of operating procedures that take place on the material for the
purposes of converting it from its initial form to its final form

production life cycle

1- Forecasting the sales volume in coordination with the marketing
department
Issuing directives to the technical (engineering) departments concerned
with the different shapes, drawings and designs of the commodity
Estimate the total cost of the product to determine the specific quantity
and determine the price
Inventory inventory volume of production to estimate the volume of final
production
The planning department is responsible for developing the production
plan
Production control by directing its approval of the production of human
and material requirements
Send the finished production to the warehouse

Production Considerations Production Planning Considerations

production design
Interior Design
Resource management and storage
production organization
production control
 Coordination

Coordination Definition

The organized arrangement of the efforts and actions of individuals

within the organization to achieve the desired goal

Coordination Goal

Prevent entanglement and interference in the performance of functions

Coordination area

Coordination applies to individuals and groups

The Difference between Coordination and Cooperation:

 People cannot achieve coordination by themselves, but they can

cooperate
 Coordination cannot happen by chance other than cooperation
 Coordination is more comprehensive than cooperation
 Coordination is a continuous process
The difference between coordination and planning:

The plans must be effective and integrated, and therefore coordination

must be made between administrative units
The relationship is illustrated by
When there is a plan to add a new product, the design of this product
must be planned
As well as designing operations, and all of this is done in a coordinating
framework
Individuals must participate in order to achieve the planned goal, and this
is done in a coordinated framework to unify efforts

Comprehensiveness of coordination

Each manager is responsible for his department and group

The interaction between administrative units takes place in a coordinating

framework, for example, production management
Producing the required quantity
Purchasing Department Learn to sell the produced quantity
purchase management
 Providing the necessary resources for the production process
Personnel management: works to recruit and train people

Coordination aspects

The amount of effort that is being made in terms of quantity and quality
timing of efforts
Orientation and direction of travel

Notes
The reason for the need for coordination is because people have different
understandings and different ability to explain different decisions
Coordination aims to prevent entanglement and interference
Coordination means

The chain of command: Each subordinate is directly responsible to his

superior, and this enables the superior to coordinate between
subordinates

Rules and Procedures: If the required work is planned in advance and can
be predicted, then coordination is in the form of rules and procedures

Coordination by goals: the goal or goal is set and coordination is carried

out based on these goals

(Use of assistants in coordination Appointment of an assistant to act as a

manager) (Coordination

Use of communication in coordination between different departments

Sales - production is done by contacting all kinds of problems

Committees - Forming different committees to carry out the coordinating
function

Projects: The completion of some work and projects with a special

feature through the development of a specific project

unofficial mantras

Special Coordinator: A special coordinator who advises the company

Effective coordination properties

simple to organize
Simplify interdepartmental work
Clarity of organization and planning
Program alignment and integration
Improve the means of communication
Encouraging voluntary coordination and cooperation
 Leadership

It is the ability to direct others to achieve a specific goal

The difference between leadership and presidency (the leader and the
president

Source
Leadership comes from the group
The presidency is imposed on the community
Target
The ability to share the group in setting the goal
The presidency determines the goal and chooses it
Admissions
Leadership comes from a group and depends on positive incentives to
implement goals

The presidency is the source of authority and it is outside the group and
depends on the authority of the president and the fear of punishment
Leader's strengths
Use of compression techniques
Personal Impact
regular power
financial source
Experience and skill

Types of leadership

Autocracy
It is based on criteria based on unilateral, tyrannical behavior and forcing
others to act according to their singular will, using threats and threats,
disregarding the opinions and suggestions of others.
Democracy
It is based on advice, opinion, persuasion, and reconciliation of opposing
opinions
Official leadership
It is a leadership that derives its strength from its presence in a privileged
position (director - deputy director) and this leadership has the right to
issue orders

Informal leadership

It is a leadership that derives its strength from the group and other social
or personal considerations
Main entrances to the study of leaders

First, the trait entry provides a number of traits

Physiological traits (length, strength, bulkiness)
Personal traits (intelligence, confidence, achievement,
Social traits (deal with others - love)
Multiple attributes (sacrifice - ambition - persistence - perseverance -
patience)
Second, the behavioral approach
The leader’s dependence on multiple behaviors in dealing with others
Interested in doing business?
Planning and defining the work required
Respecting the feelings of others
Credibility
Facilitating work
Attention to the goal
Distribution of tasks
Praise and recognition of achievements

Third: Situational Entrance

The leader may appear in a certain situation without another

 Controlling 
It is to ensure that everything is proceeding according to the established
lines and principles that must be adhered to in order to detect and correct
obstacles

Reasons for controlling

Identifying the extent of problems or obstacles hindering the work
Recognize the achievements and their conformity with the set plans
aspects of control
The first aspect: following up and evaluating the results and
achievements and whether they are going according to what was planned
or not
The second aspect: focuses on monitoring and following up on
individuals themselves in following up on their work
The third aspect: focuses on monitoring and monitoring deviations

Types of deviation
Negative deviation: perpetrators deserve penalties commensurate with
their non-compliance with orders and directives (such as non-compliance
with language specifications).
Positive deviations: perpetrators deserve penalties for exceeding the
permissible limits (such as the employee producing additional units).

Regulators
First: internal parties
Each head of a group of individuals exercises his supervisory authority
(director-0-assistant manager-supervisor).
Second: third parties
Competent external bodies, whether legal or irregular
(as inspectors of government actions - researchers of specifications and
quality - the State Audit Bureau - international bodies for granting quality
certificates "ISO")

Control timing
Oversight starts from the first moment and during work (implementation)
first-hand in order to see the details, performance and progress of work
The importance and benefits of oversight
First: the organization
1- Discovering and correcting errors and times
  Ensure efficient use of all resources
Ensure that human resources are suitable for the positions they occupy
Discover negative and positive deviations
Ensure the progress of work and the extent to which the objectives can be
achieved

Second: the people

The competent worker is assured of the fairness of the control process by
rewarding his efforts (rewards - incentives - promotions)
Control steps
Setting regulatory standards
Quantitative criteria (tangible)
Quantitative Metrics - Financial Metrics
Qualitative (non-material) standards
Employee Category - Consumer Category - Supplier Category
Actual performance measurement
Observe the scope of supervision
Extent of the efficiency, skill and experience of the observer himself
The extent to which subordinates are focused
The degree of recentness of the subordinate’s experience with the job
skills
The effectiveness of communication systems
The extent to which subordinates understand in advance the objectives of
monitoring
There should be a degree of permissible error
The actual evaluation method for the performance of the supervisor's
subordinates
Direct follow-up (live) by watching
Automatic live monitoring through cameras
indirect monitoring
Written reports that a subordinate may personally prepare for his superior
Written or oral reports prepared by the supervisor submitted by his direct
manager
Correcting positive-negative deviations
The most important considerations for the stage
Determining the causes of deviation in order to reach the main cause
Availability of administrative powers that allow correction of deviations
Suggestions for alternative solutions
Follow-up
  Organization
   Distribution of responsibilities and coordination among all employees
in a way that ensures the achievement of the largest possible number of
desired goals

Organization Elements
1-Defining goals and identifying activities to be achieved
2-Classification and division of workers (compiling the required work
and identifying similar ones in one specialty
3-Determining the specifications and qualifications of employees
4-Defining responsibilities and authorities and selecting the appropriate
workers
5-Putting the previous elements into an organizational map
Organization Goals
1- Setting the whole frame to implement the plans and programms to
achieve a certain goal
2- Collecting the necessary resources to achieve this goal
3- Clarity of procedures which is required to turn these resources to
production.
4-Setting the balance between goals, resources and results using the
perfect solutions
Successful  Organizational Management Criteria

1-Comprehensive coverage (not to leave any job without a responsible)

2-Clarity (every person should know his duties and authorities)
3-Balancing between authority and resbonsibility

Types of Organization
First: Formal organization: It is the organization that defines the
relations and administrative levels of the work carried out by individuals
and groups and the distribution of responsibilities and duties in a way
that allows the performance of work in each administrative unit.
Second: Informal organization: It is a set of relationships that arise and
continue between workers because of their presence in one place of work
and their participation in similar problems and goals.

unformal Formal organization

organization 1-It results from official goals
1-It results from the and tasks
gathering of individuals in 2-The goal of the individual is
organization to perform the work
2-The goal of the individual is 3-  The relationship is formal
to satisfy material needs administrative
3The nature of the  4-Communication takes place
relationship is      social in a hierarchical way
4-Communication takes place
according to the influence of
the person

Organization principles
They are the foundations and directives that are preferred to be guided by
when designing the organizational structure of the institution. Each
administrative unit and the organization show several principles, which
are as follows:
First principle    (Objective principle)
 i.e. the goal and purpose must be clear, and this in turn leads to the
development of plans and the focus of the efforts of individuals
Second principle    (The principle of the job)
 i.e., the organization should observe the requirements, powers and
responsibilities of the job, regardless of the person who occupies this job
Third principle (The principle of assignment and division of work)
 i.e. allocating certain parts of a specific work among a certain number of
members of the organization instead of one person doing several jobs,
dividing the work into sub-works and then assigning each job to a
specific person, which leads to the performance of the work more
actively
Fourth principle  (The principle of unity of command)
Subordinates and employees must receive orders and directions from one
person because this ensures defining responsibility and unifying the
efforts of employees
Fifth principle  (The principle of the scope of supervision)
The number of workers supervised by one manager, the number varies
from one unit to another
Sixth principle  (The principle of equal authority “authority and
responsibility”)
Definition of authority: the powers granted to occupy the position and
include the right to issue orders and instructions and the right to make
decisions within certain limits
Definition of responsibility: holding others accountable for the
performance of work and jobs
Seventh principle (The principle of centralization and decentralization)
Centralization: transferring decision-making power and concentrating the
bulk of power to senior management
Decentralization: the transfer of decision-making power and its exercise
from the highest administrative levels to the lowest
Eighth principle (The principle of delegation of authority )
The authority delegated to the employee should be commensurate with
his ability
Ninth principle (The principle of coordination)
 is working to reconcile and achieve harmony between the various
administrative units to perform business and achieve goals
Tenth principle  (The principle of flexibility)
, meaning that the organization is flexible and subject to change in
relation to the internal and external variables that surround the
organization
Characteristics of Effective Regulation
Effective organization is what helps the organization to achieve its goals
at the lowest costs and its characteristics are as follows:
1- Reducing costs 
2-. Coordination between all units 
3- Development and innovation
Organizational Chart
 It is the model that reflects the nature of dealing and coordination
designed by the administration in order to link the tasks in the
organization in order to achieve the goals of the organization.
 GENERAL Manager

Media
Responsible

vice manager

department Head production Manager Marketing Manager

Organizational Structure Elements
Define tasks and responsibilities
Assembling the functional positions of employees in the form of an
administrative unit
Mechanisms and ways of coordinating between the different units
organizational chart
It is a graph depicting the outlines of the organizational structure. The
organizational chart shows the following
The main functions of the organization
Responsibility ‫عالقات‬
Official Communication Channels
Organizational Manual
It is an explanatory document of the organizational structure, as it gives a
detail of all activities within the institution and the work that takes place
within the organizational map
It includes the following:
The reason behind preparing this guide and its importance to the
company
A brief history of the organization (its origins, goals and achievements

Decision Taking
taking decision is the core of  the
administrative process.
No benefits gained from planning, organizing or
oversighting without taking the decisions
 
 Types of Decisions

Long-term decisions
Short term decisions

Immediate and fast decisions

Decisions that require thought

Group and individual decisions

Strategic and goal-oriented decisions
Organizational and management decisions

Programmed and unprogrammed decisions 

Programmed Decisions
Decisions made routinely and frequently in certain situations
Unprogrammed decisions 
Decisions made under uncertainty and high risk

Sources of uncertainty in unprogrammed decisions

Time and Costs
Social and Political Factors
Environmental Conditions
Rapid Changes in Technology

Decision Making Steps

 1- Define the problem 
 2-Data collection
 3-Presenting alternatives and choosing the appropriate alternative
 4-Implementation of the solution
 5-Follow up on the implementation of the solution

Group and Individual Decisions

Group approach to decision making:

Reasons for relying on the group style
Creativity: Participation leads to generating ideas and offering
alternatives
Commitment to implement
Collective decision-making leads to the provision of a huge amount of
information

Positives
Collectivism and affirmation of the principle of shura
Offer more than one alternative
Acceptance (commitment to perform)
improve spirit
Getting to better decisions

Negatives
|Time Consumption
The dominance of some members
Distraction
 Planning
1-Defining specific goals and knowing the most important ways to
achieve them
2-Planning in the present for what is in the future
3-Predicting what the future will be like while preparing to face it

Planning features
  1- Focuses on a specific goal
  2-  caring about time
  3- predictive
Planning Benefits
1- Helps in solving future problems
2-Organize work
3-Helps to coordinate between goals  and how to achieve them
4-Helps in setting goals ,and with the presence of goals determines
directions
5-Continuous supervision of work

Types of planning
According to the Time Period
long term
medium term
short term
According to the Administrative Level
Senior management level (president and vice president)  characterized
by the strategic dimension (long-term strategic plan)

Mid management level    (Managers and Department Heads)

characterized by the detailed dimension
Third management level  (supervisors and foremen)
characterized by the operational dimension

Planning Elements
1-Objective:
 It is the goal to be achieved, and the objectives must be arranged in a
hierarchical manner
 conditions that must be met in the objective
1-Clarity of purpose
2-The legitimacy of the goal, which is consistent with customs and
traditions
3-Realistic goal i.e. achievable according to capabilities
4-Measurability means that it is measurable and follow-up
2- Rules
What should and shouldn't be done 
3-procedures
work series, steps and stages to be followed
4-Policies
The framework guiding the process of implementing decisions, which are
the principles and laws established by the establishment in order to guide
the employees

Planning steps
Setting goals (which clear, legal and real) 
Data collection
Making assumptions (which may be encouraging or discouraging)
Identification of alternatives (selling at a lower price
insert changes to the goods -searching for new markets.
Implementation and evaluation of results
 Burgan Diploma
Business Administration

Management Definition 
       The
process
of directing, planning, organizing, coordinating,oversightin
g and making decisions;using
financial,human, material and informational resources 
to achieve a goal efficiently and effectively.

The Manager
An individual in an organization who is responsible for a
group of subordinates for the purpose of achieving the
goals set through  organizing, directing, coordinating,
oversighting and making a decision to use the available
resources

Comparison between an efficient an effective

manager
An efficient manager : is one who achieves the best
results or outcomes compared to others
An effective manager: chooses realistic goals and needs
An example:
A country that needs iron, and in this society there are four
production companies

1- 100 million dinars -----------1000 tons of iron (efficient and effective)

2- 100 million dinars,-----------900 tons of iron (inefficient and effective)

3- 100 million dinars,------------ 1050 tons of copper (efficient and
ineffective)

4- 100 million dinars--------- 1000 tons of copper (inefficient and very

effective)

Types of managers

Administrative level
Senior management: managers are responsible for
managing the organization (the president and vice
president)
Mid-level management managers: are responsible for
implementing the procedures (production, marketing,
operations)
The third level: supervision of activities and coordination
of business activities (supervisor - office manager)

Areas of Management
Marketing manager
Production Manager
Financial Manager
Human Resource Manager
Managing Director

Scope of Activities
General manager: he is responsible for all activities
A functional manager: he is responsible for a specific
activity

Responsibility type
Executive Director : he is responsible for procedures
and tasks
consultant Director: his profession is counseling