The role of Financial Management in large Organizations in today’s Organizations and its effects on Project Management

Abstract

Main goal for every organization is to secure and maximize its profits and provide the wealth of the organization’s present owners. The achievement of that wealth it is not something easy mostly when companies undertake large and complex projects. Many companies face development problems because of ineffective financial management and when financial obstacles become an "impervious wall", then organizations meet stagnancy and are not able to achieve successful projects. It is essential for every company to have the abilities and the appropriate financial fastening in order to manipulate project execution successfully and methodically. Financial management is important in all type of business and must constitute a basic priority for every organization for the improvement in all financial management procedures. Effective financial management allows organizations to maximize its profits and with this way companies become more competitive in global level. This study analyzes all these crucial and necessary steps that organizations should follow and implement for succeeding in nowadays global business. Moreover, are analyzed the basic principles of project cost management and these strategies that organizations must apply for improving project’s financial goals. After all, financial management is a way of life in all organizations and financially successful organizations depend on strict financial control. In other words, cost is seen as a major metric of successful project management.