The impacts on the financial decision process of human elements Essay - 1

The impacts on the financial decision process of human elements - Essay Example Financial decisions are made in a systematic process. Organization factions are run by individuals who are entrusted with carrying on the vision and the mission of the company. As such, human elements is one the key components in the formula of financial decisions success. This paper will evaluate the impacts of the human elements in the process of making financial decisions. As preamble, the paper commences by reviewing types of financial decisions that are made in the organization. The financial decision making process is then assessed. The study then evaluates the types of human elements that characterize the contemporary organization. The impacts of the identified human elements are then analysed with the intent of revealing the extent to which they affect the whole process of making the financial decisions. The study then concludes the findings by giving a brief summary of all the main ideas given in the whole study. Strategic financial decisions are mainly made by the senior management of the organization after the approval by the shareholders. There are three main financial decisions that are made within the organizations, that is, investment, financing and dividend policy decisions. The investment decisions involve identifying the available opportunities for the investment and investing the shareholders funds in the best investment that has high returns and low risks. The financing decisions are the decisions that are made to identify the possible sources of fund to the organization and then selecting three best source of fund. The main sources of fund for the investment to the organization are commercial loans, organization has retained earnings, fund sourced from the capital market, the grants from other organizations and issuing of the corporate bonds (Cascio, John and Boudreau 2010, p.255) On the other hand, the dividend decisions are the decisions, which are made to determine how the