THE EFFECTIVE FINANCIAL MANAGEMENT AS A TOOL FOR ASSESSING EFFICIENCY AND GROWTH IN ORGANIZATION

ABSTRACT

The research was undertaken in an attempt to ascertain the relationship that exist between effective Financial management and organization efficiency and growth. Using first bank Jos market branch as a reference point. The study examined the financial activities of the bank under study relates it to the existing body of knowledge. The researcher mined/review existing literature by scholars in this field in terms of books, journals, lecture notes and other publication in order to find out consistency of first bank’s activities to the existing trend. In order to measure the consistency, hypothesis were drawn for proofing. In considering the hypothesis therefore.. data were collected from respondents using questionnaire from the 120 sample size consisting 20 management staff and 100 customers of first bank chosen out of the research population. The data collected were subsequently analyzed simple percentage table. While the hypothesis was proved using chi-square. The analysis of the data led the researcher to certain discovery prominent among which is that the organization financial management is effective considering her experienced personnel and its relationship with customers. Finally, based on the findings, the researcher recommended that the organization should uphold its effective financial management by motivating the personnel etc.

CHAPTER ONE

1.0   INTRODUCTION

Finance is one of the most essential aspects of business management. As asserted by wikipedia.org, finance is the science of funds management.

The establishment of a good business plan, with the best and proper set of human resources and equipment is not result oriented without effective management of the organization’s fund. It is a known and acceptable fact that effective financial management is the only key to organization success: without proper financial management, organization is unlikely to succeed. This is because organization depends on its finance to make appropriate investment production, administration and retain human capital states that managing money is essential to ensure a second future for the organization. The concept of financial management – been reviewed and discuss by many scholars in the field.

Neave-and Wiginton (1981′) states financial management goal and principal task are raising finance capital to invest in productive enterprises with a view to maximize the value of the owner’s investment.

Furthermore the primary objective of financial management is to maximize financial and economic benefits from an investment. Financial management from the researcher’s point of view is the task of balancing risk and profitability, while attempting to maximize an organization wealth and value of stock.

From the foregoing, the success and survival of every organization depend solely on the effective utilization of funds at its disposal to achieve organization goal while maximizing profit