The primary goal of the people profession is to advocate for improved working conditions and professional careers. Providing positions, incentives, institutions, and work conditions that enable individuals to achieve their full potential, resulting in exceptional organizational results that drive economies and make decent, fair, and inclusive work a societal consequence. This mission is a global rallying call for knowledge area to be a catalyst for change. Each person is essential in the company because the whole is an important mechanism that will work correctly only if all people show their best professional sides. This work was written with the aim of analyzing their strengths in a professional environment.
The concept of business acumen is one of the trendiest topics in performance management these days. Regrettably, for talent identification experts and company leaders, there are various definitions of business skills, spanning from the most fundamental – teaching someone how to be on time – to the most complicated – assisting an executive in becoming a global corporate executive (Jewell et al., 2020). A corporate organization is a sophisticated object; that mechanism is propelled by a corporate strategy, which is a fundamental value presented to clients willing to pay a reasonable price for the benefit they obtain.
It is vital for every person in a corporate organization in order to understand how their firm produces money. The subjects are similar, but the nuances are tremendous. Understanding this helps workers to successfully lead and pick the most significant strategic decisions in support of the plan and its aims and priorities (Makhele & Barnard 2020). Every person in a business enterprise must comprehend how consumers generate money in order to connect their stock profits offering with the demands of customers.
In my opinion, business acumen is one of the fundamental qualities of a successful financial manager. This term implies many qualities of an actual manager and financial professional. I believe that the main ones are understanding the structure of the company and its position in it. Each person needs to understand their position and role in the company, and then the processes will be better completed.
Financial acumen relates to a person’s financial education and understanding of such procedures as reporting, budgeting, planning, and other economic abilities. Management must recognize what propels working capital into and out of their firms, as well as how to optimize profit and prevent loss. Economic knowledge encompasses all facets of a company’s money transaction and socioeconomic worth, and it enables executives to comprehend better and handle financial indicators linked to customers, assets, objectives, and commercial success.
Poor cash flow administration is one of the primary reasons businesses fail. Working capital relates to when individuals get income and when they spend it, not merely when they make a sale and repay their loans. Individuals might make many sales and still not be able to pay their debts (Goel, 2019). People must gain the economic understanding to establish adequate cash in order to run a healthy firm. Someone with economic savvy understands how to mature collections and use strategies, such as providing incentives to get them in quicker. Individuals in career advancement must have a thorough awareness of what affects their institution’s cash flow and profitability. Financial acumen is defined as a person’s capacity to grasp the economic consequences of one’s decisions and actions and to make informed judgments to generate profit and minimize loss (Martin et al., 2020). People having financial acumen comprehend accounting, bookkeeping, consolidated financial creation and monitoring, and cash management.
Financial acumen shows the proper level of professionalism of a person who holds the post of the financial manager. Being such a manager, I try to keep all tasks in focus and always evaluate risks. Although my primary responsibility is keeping records, this activity also has many features of its own. Data analysis helps me make important decisions that can sometimes be critical for the company.
Problem-solving abilities are another essential aspect of solid business acumen. These abilities pertain to a person’s capacity to deal with unexpected or challenging events in an efficient manner (Elder and Paul 2020). Individuals with fundamental solid concern abilities may identify the root cause of a problem and devise a suitable solution (Singh et al., 2021). Organizations favor problem-solving abilities in the majority of their workers, and individuals in any position may profit from excellent issue abilities.
To find innovative answers to long-standing issues, practical problem-solving skills necessitate discussing concepts and thinking outside of the box. Solving a group issue or a systemic societal problem necessitates collaboration and assistance from other members of the team. To identify the root cause of an issue and find the right solution, a professional must be analytic and represents the logical and rigorous procedure. It is critical for a person to have enough confidence and faith in themselves to make a choice and follow through on it.
Effective financial administration is critical for the survival and success of any firm. In order to fulfill their corporate objectives, they must plan, organize, control, and monitor their financial resources (Larsson 2017). Budgetary control should be integrated into their necessary procedures and incorporated in their continuous planning. A business strategy will outline where individuals are and where they wish to be in the following years. It should include information on how individuals plan to finance their firm and its operations. People should keep track of the growth of their businesses on a frequent basis. Individuals should realize how much money they have in the bank, how many purchases they are generating, and how much product they have on hand on a daily basis.
Saving money and energy can thus be accomplished through behavioral changes and more effective use of existing equipment. It is one of the simplest methods to save money. Individuals must select the right sort of financing for their business; each type of financing is created to accommodate particular demands. Smaller firms typically rely on overdrafts and private finance, which may not be the most excellent option for their organization. Financial troubles are always unpleasant, but there is aid and guidance available to help individuals confront them before they become too much to bear, so get expert counsel as soon as possible.
Managers are frequently called upon to present and justify capital investments and strategic initiatives aimed at improving overall financial performance. The economic assessment of these initiatives is an integral part of the review and approval. Management should be aware of the assumptions behind the financial analysis of any project championed under their guidance and be prepared to ask probing questions. Financial discipline is a vital component of every manager’s toolset. Managers should comprehend the financial ramifications of their choices and utilize financial data to enhance the success of their organization (Waxman & Barter, 2018). Learning and development firms should guarantee that their training programs give their leaders the fundamental financial abilities needed to run the business properly.
Each manager in the company must understand their responsibilities and capabilities to the fullest. In my opinion, sometimes this can cause difficulties, but only for the first time in office. I believe that the development of critical thinking will be a comprehensive solution to many possible problems as a financial manager. Reducing the number of risks, constant vigilance, and a sober analysis of the situation are critical for a financial manager.
To summarize, business acumen, in my perspective, is one of the essential characteristics of sound financial management. This word implies many characteristics of a true management and financial professional. Although my primary task is to keep records, this activity has numerous unique characteristics. Analysis of the data assists me in making significant decisions that might be essential for the firm at times. Each management in the organization must fully grasp their roles and talents. This, in my opinion, can occasionally cause problems, but only for the first time in office. As a financial manager, I feel that developing critical thinking skills will provide a complete answer to many potential difficulties.
The people profession’s primary purpose is to promote decent working conditions and skilled positions. Each individual is crucial in the organization since the total is a critical system that will only function well if everyone shows their most exemplary professional aspects. It is critical for everyone in a business organization to understand how their company makes money. Managers must understand the financial implications of their decisions and use financial data to improve their organization’s performance.
Reference List
Elder, L., & Paul, R. (2020) Critical thinking: Learn the tools the best thinkers use. Foundation for Critical Thinking.
Goel, S. (2019) Finance for non-finance people. Routledge India.
Jewell, P., Reading, J., Clarke, M., Kippist, L. (2020) ‘Information skills for business acumen and employability: A competitive advantage for graduates in Western Sydney’. Journal of Education for Business, 95(2), pp. 88-105.
Makhele, L., & Barnard, B. (2020) ‘The Impact of Business Acumen and Startup Skills on Entrepreneurial Development’. IUP Journal of Entrepreneurship Development, 17(1).
Martin, J. D., Keown, A. J., & Titman, S. (2020) Financial management: principles and applications. Prentice Hall.
Larsson, K. (2017) ‘Understanding and teaching critical thinking—A new approach’. International Journal of Educational Research, 84, pp. 32-42.
Singh, G., Dhanny, H. S., Garg, V., Sharma, S. (2021) ‘HR Acumen in Industry 4.0: Managing Talent and Achieving Balance in Life’. Financial Intelligence in Human Resources Management: New Directions and Applications for Industry 4.0.
Waxman, K. T., & Barter, M. (2018) ‘Entrepreneurial leadership: Innovation and business acumen’. Financial and business management for the doctor of nursing practice, pp. 327-343.