The role of financial management in health services primary role is to secure the financing need to meet an organization operating objectives. The role of the financial manager is to plan for, acquire, and utilize capital to maximize the efficiency and value of the organization.
“The four elements of financial management are: planning, controlling, organizing and directing, and decision making (Hearle, 2009) p.g 56.” The elements are based on the purpose of each task. Planning identifies the steps that must be taken to accomplish the organizations objectives. Controlling makes sure each are of the organization is following the plans established. Decision making allows the financial manager to make decisions among available alternatives, and Organizing and Directing allows the financial manager to effectively carry out established plan by utilizing the organization resources. Planning
“The purpose of financial planning is to identify objectives and then identify steps required to meet the objectives (Hearle, 2009) p.g 56.” The financial is responsible for identifying the steps and ensuring that the objectives are met. Controlling
One way of ensuring each area of the organization are following the plans established are studying and comparing earlier reports. “The comparison will show financial manager where the organization will need attention due to being ineffective (Hearle, 2009) p.g 57.” “The purpose of controlling is to ensure plans are being followed (Hearle, 2009) p.g 57.” Organizing and Directing
“While organizing, the financial manager will decide how to use resources available by the organization that will most effectively carry out plans that have already been established by the organization (Hearle, 2009) p.g 57.” The financial manager will work daily to keep the results running efficiently. “The purpose of organizing and...
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