A management system of which financial planning is one type
is effective, if it triggers employees’ reactions in the direction that will
promote the achievement of enterprise goals and objectives. To a greater
extent, enterprise survival and goal achievement depend on the management
systems, financial planning and employees’ reactions. The management system
(authoritarian or humanistic) portrays the firm as a composite entity of the
goal-setting machine (top management) and the goal-achieving machine (employees,
subordinates inclusive). Admittedly, the type of management system and its
associated financial planning strategy have a significant effect on the life of
any firm. This is because the goal of the organization (for the period the
financial plan covers) is contained in the financial plan. This book chapter
adopts historical and descriptive research methods. Goals must not only be set
in the financial plan but strategies must be evolved to achieve the goals. A
financial plan (autocratic or participatory) expresses the expectations of the
enterprise from its members and also specifies the employees’ duties and rights
(if any) for that period. Financial planning refers to the process of
estimating the funds requirements of an enterprise and determining the sources
of funds. Financial planning, therefore, is a useful strategy for enterprise
goal achievement. This book chapter is necessitated by the unconcerned attitude
of enterprise management toward current works of research in modern management
systems, motivational theories of financial planning and employee behaviour.
Available accounting, finance and business literature support the assertion
that authoritarian management systems and their associated financial planning
strategies do not always work. Rather than bringing improved performance, such
a system generates anxiety, mistrust, interdepartmental strifes, quarrels with
financial staff, demotivation, corrupt practices, poor productivity and other
dysfunctional attitudes and behaviours that are inimical to enterprise growth
and survival. On the contrary, the humanistic management system relative to its
financial planning strategy triggers employees’ morale, motivation and
productivity. The humanistic management system is employee-centred and has
gained a great deal of support in the literature of business management. Such a
system boosts corporate existence and enhances continued goal achievement. This
system is believed to serve as a panacea: a cure for all the many ills
associated with the authoritarian management system and its associated
financial planning strategy.
Author(s) Details
Usen Paul Umo
Department of Accounting, Akwa Ibom State University, Nigeria.
Please see the link:- https://doi.org/10.9734/bpi/bmerp/v1/11549F
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