Changing responsibilities for financial management in an era of TQM

Abstract

Examines six issues to decide whether total quality management (TQM) concepts can improve the effectiveness of company‐wide financial activities, i.e. the finance function. These issues address the basic role of a central finance department; TQM concepts in specific financial processes including capital budgeting and working capital management; competitive benchmarking; and personnel skills needed for the future. The finance function in most organizations has been pulled in many directions recently by downsizing, technology, ethical issues and, of course, TQM. The central finance office (CFO) needs to understand how TQM issues may not be a negative constraint on the finance process but actually assist in re‐engineering the finance process for the future. Defines the service role of the finance function and how it can be decentralized throughout the organization. Presents many issues in a question format which allows the finance manager to organize the implications of TQM in the total finance operation. Also investigates various financial processes such as capital budgeting and working‐capital management.