Question

There are 4 recognized elements of financial management planning, controlling, organizing and directing, and decision making.

Define each element as it relates to fiscal management of an organization and give at least one example of each element as to how a manager demonstrates the performance of each duty.

Answer 1

Elements of financial management is 1) Planning, 2) Controlling, 3) Organizing and directing, and 4) Decision making.

1) Planning : Planning refers to deciding what needs to happen in the future. i.e. today, next week, next month, next year, over the next five years, etc. and generating plans for action.
Example : While introducing of new product(s) into market, manager have to plan various factors which are affect n their reverse proper planning for avoiding them, for proper implementing of new product into highly competitive market.   

2) Controlling : Controlling defines as to checking current outcomes against forecasted plans and making adjustments when necessary, so that goals are achieved.
Example : While introducing of planning into ground level activities, there after contrlling into outcomes as well as proper control into product line also vary important which effect positive at later stage.

3) Organizing and Directing : Organizing refers a process of implemention of relationships among workers and making optimum use of the resources required to enable the successful carrying out of plans. And Directing define as to determining what needs to be done in a situation and getting people to do it.
Example : While planning and controlling are into initial stage of working that time organising to employee, n directing them into effective working scenario is most affordable to company in itself. Without direction sometime mis-understanding into employee-employer relationships.

4) Decision Making : The main aspects of the financial decision-making process relate to investments, financing dividends and asset management.
Example : Decision making is just like to finalize or selection of better option when we have alternatives, if manager have analytical skill, than it can analyze n make their final decision for better opportunities.

However, all of the above duty is based on human behaviour, which is not certain in every case, so that it can be good if supportive contrl are their to help a manager.