Abey Francis

Abey Francis, a freelance writer and a professional blogger who enjoys the challenges of creativity and attention to detail. He has published many articles and editorials regarding management on different blogs and online journals. His articles stimulate thinking of corporate managers on key issues of organizations and management. His research interests focus on international management, International trade finance, Investment management, leadership, social capital and knowledge management in enterprises and cross-culture studies.

Agency Problem

Why conflict of interest between owners and management?

The control of the modern corporation is frequently placed in the hands of professional non-owner managers. We have seen that the goal of the financial manager should be to maximize the wealth of the owners of the firm and given them decision-making authority to manage the firm. Technically, any manager who owns less than 100 percent of the firm is to some degree an agent of the other owners. In theory, most financial managers would agree with the goal of owner wealth maximization. In practice, however, managers are also concerned with their personal wealth, job security, and fringe benefits, such as country club memberships, limousines, and posh offices, all provided at company expense.… Read the rest

Abey Francis

The Role and Responsibilities of Finance Managers

Role and responsibilities of a finance manager have undergone a remarkable transformation during the past four decades. Not too many years ago, finance manager had a very limited role in a business enterprise. Finance manager was responsible only for maintaining financial records, preparing reports on the company’s status and performance and arranging funds needed by the company so that it could meet its obligations in time. Finance manager, as a matter of fact, was regarded as specialized staff officer in the company concerned only with administering sources of funds.

Finance manager  was called upon only when his specialty was needed. For example, when the company experienced the problem of dearth of funds, the management expected the finance manager to locate suitable sources of funds and procure additional funds.… Read the rest

Abey Francis

Interface Between Finance and Other Management Functions

Finance is the study of money management, the acquiring of funds (cash) and the directing of these funds to meet particular objectives. Good financial management helps businesses to maximize returns while simultaneously minimizing risks.

Financial management is an integral part of overall management and not merely a staff function. It is not only confined to fund raising operations but extends beyond it to cover utilization of funds and monitoring its uses. These functions influence the operations of other crucial functional areas of the firm such as production, marketing and human resources. Hence, decisions in regard to financial matters must be taken after giving thoughtful consideration to interests of various business activities.… Read the rest

Abey Francis

Risk-Return Trade off

Risk may be defined as the likelihood that the actual return from an investment will be less than the forecast return. Stated differently, it is the variability of return form an investment.

Financial decisions incur different degree of risk. Your decision to invest your money in government bonds has less risk as interest rate is known and the risk of default is very less. On the other hand, you would incur more risk if you decide to invest your money in shares, as return is not certain. However, you can expect a lower return from government bond and higher from shares.… Read the rest

Abey Francis

Career Planning Assistance by Human Resources Department

What is  Career Planning ?

Career planning is the process of one’s life work and involves evaluating abilities and interests, considering alternative career opportunities, establishing career goals, and planning practical development. Career planning is a deliberate process through which a person becomes aware of personal career related attributes and the lifelong sense of stages that contribute to his or her career fulfillment.

The major focus of career planning is on assisting the employees achieve a better match between personal goals and the opportunities that are realistically available in the organization. Career programmers should not concentrate only on career growth opportunities. Practically speaking, there may not be enough high level positions to make upward mobility a reality for a large number of employees.… Read the rest

Abey Francis

Career Development from the Perspective of an Individual Employee

Career development comprises those personal improvements one undertakes to achieve a career plan. The personnel department may sponsor these actions or they may be activities that employees undertake independent of the department. That is career development may be organizational and individual. From an organizational career standpoint, career development involves tracking career paths. In contrast, individual career development focuses on assisting individuals to identify their major career goals and to determine what they need to do to attain these goals. Each person must accept responsibility for his   own career; assess his own interests, skills and values and take the step required to ensure a happy and fulfilling career.… Read the rest

Abey Francis