The main task of the manager is to increase the return on invested efforts and funds. It does not matter in which field of activity this task is.
Specialists determine the following theoretical foundations of management:
- Monitoring
- Control.
- Organization.
- Planning.
Management is considered art and science at the same time. Art is reflected in the goal - to make work with the manager more effective than without it. The scientific part of management is methods for achieving this goal.
Work begins with planning. Without this management foundation, it is almost impossible to succeed in any endeavor. If random success nevertheless took place, then there are negative points. They consist in the inability to conduct a reverse analysis and to identify what specifically provoked success.
Planning begins with the statement of the final goal of the work. The next step will be to identify the best way to achieve it. When planning, it is important to consider the potential and actual availability of resources (what can be obtained in the near future and what is available now). In addition, great importance is given to the human factor. When achieving the goal, you should choose the most rational path. Often this way is outsourcing (hiring a third-party professional), which allows you to save staff time.
When planning, all possible scenarios of upcoming events are necessarily worked out. After comparing all the schemes, one is selected, the most suitable and easily implemented.
The organization is the next management foundation. Just before starting the planned process, you need to make sure once again that everything necessary is prepared for implementation. If certain people are involved in the work, it is necessary to check how ready they are to fulfill the intended tasks. The manager must verify everything personally. This condition is necessary for the successful implementation of the plan.
The next component of the work is management. The essence of this management framework is regulation. At the same time, each of its participants occupies its own position and performs certain tasks, and the manager, as a conductor, controls the process.
Management fundamentals include an element such as monitoring. Despite the fact that the process is running, constant control over it is necessary. The manager must be sure that all processes occur as planned. If you encounter any difficulties, it affects the work, solving problems.
In addition to the above concept of management, there is the concept of "financial management". The tasks of this industry are somewhat wider. There are several other fundamentals of financial management. These include:
- Normative, legal and state regulation of the enterprise in the financial sector. This, in particular, the tax administration in the form of established rates, due dates and other.
- Application of a market mechanism in regulating the financial activities of an organization. At the core of this framework is demand, supply and price level for the liquidity of stock and monetary instruments, loans.
- Internal financial management of the enterprise. Regulation is carried out taking into account the charter of the organization, standards, requirements, targets.
- Information support based on management and financial accounting, statistical and operational reporting of services.
- Used in the analysis, control and planning of financial, economic activities of the organization, financial management methods.
- The system of financial leverage. Under the leverage understand the interest rates on deposits and loans, tax rates, depreciation rates.