Financial Management is that managerial activity which is concerned with the planning and controlling of the firm financial resources. It is the managerial activity that involves the rigorous analysis of investment of an organization’s funds in asset and obtaining the best mix of financing.

It can be referred to as the management of finance of an organization in order to achieve financial objectives by extending the overall organization’s objectives.

The role of financial management in an organization cannot be over emphasized because it plays a vital role in obtaining the distribution of funds. It provides policies and procedures which facilitate co-ordination among the various functioning units of a business firm. It also harnesses the limited financial resources towards maximization and efficient utilization of funds in order to create additional wealth, which enhance effective decision making, investment decision and planning as well as financial control





Managers of financial resources of business organization or management in general, use various decisions making and control tools to perform the managerial functions of controlling, planning and decision making. These are perform in order to efficiently run and manage the business successfully.

These problem observed poor utilization of financial management as a vital instrument for decision making and control policy. Ineffective investment appraisal techniques of evaluating financial management policies, systems and procedures, lack of competent personnel and professionals for financial planning, inadequate methods of evaluating capital budgeting and capital structure decision.


The main purpose of this study as follows:

  1. To find out the adequacy of financial management policies and procedures established within an organization.
  2. To find out the relationship between financial management and decision making control.

iii.      To find out the efficiency of established financial management policies of reviewing the light of changing circumstances and reporting ob method of improvement.

  1. To find out the motivational factors behind financial management exercises in relation to decision making and control.
  2. To show how financial management is used as a control measures to ensure complaint to standards.


This study is aimed at analyzing the following and trying to establish their relevancy and importance in the survival of a business firm in addition to the vital role they play.

  1. To what existence of relevance of financial management policy as an instrument
  2. Of what impact is financial management policy as an instrument for control in an organization?

iii.      To what role does financial management play in the continued existence of an organization?

  1. Of what effect of benefit are the various financial management techniques of measuring overall efficiency, liquidity, profitability and returns on investment?
  2. Of what importance in effective financial management in helping the organization meet up with financial obligations when due?


Ho:    Financial management policies and procedures has no significant effect in an organization.

Hi:     Financial management policies and procedures has significant effect in an organization.

Ho:    The motivational factors has no significant effect behind financial management exercises in relation to decision making and control.

Hi:     The motivational factor has significant effect behind financial management exercises in relation to decision making and control.

Ho:    The efficiency of established financial management policies has no significant effect by reviewing the light of changing circumstances and reporting on method of improvement.

Hi:     The efficiency of established financial management policies has significant effect by reviewing the light of changing circumstances and reporting on method of improvement.






This study is to prove empirically the role of financial management plays in the life of an organization, it would also explore the effective  control and decision making in an organizations, financial resource and how relevant its is to the actualization of the organizations over all objectivity?

The study will also help to reveal the essentially of financial management plays in the life of a business organization, the study would have the advantage of making financial resources and also take adequate financing decision that will help the organization achieve its short term and long term financial objectives.

This study will also prove that good management of finance of a company may pave way to expansion, development and smooth running of the organization.


With the consideration of the large volume of organization in Nigeria, the researcher has been able to limit the scope of the study to one of Nigeria’s top, financial institutions of high profile, Zenith Bank Plc at its branch office located at Broad Street, Lagos Island, Lagos State. This will help in critically analyzing the research to pic with good focus.

Time and finances has also pose a great threat to this research work at this level as it well known that organization don’t easily five out information about its workings and performance for security reasons.

This study although limited to only one of Nigeria’s major financial institution, Zenith Bank Plc is believed to cut across other business that have the common goals and objectives of profit maximization and as well as shareholders health maximization.


Zenith International Bank Plc was established and incorporated in June 1990 to carry out among other things the business of banking in Nigeria. It was incorporated as a private limited liability company that became a public limited Liability Company on May 20, 2004. The bank is engaged in the business of providing commercial banking services to corporate and individual customers,. Its head office is located at 84, Ajose Adeogun Street, Vitoria Island, Lagos State with branches scattered all over the country.

Zenith Bank Plc is a financial institution with a very strong capital base of over 36 billion Naira, which makes it the fourth largest bank in Nigeria with branch network of over 130 branches scattered all over the country and a deposit base of over 131 billion naira, Zenith Bank Plc has set a landmark achievement over the past 22 years of its establishment without any total of doubt year 2010 was very a challenging one for operators in the banking industry. This is not withstanding, Zenith Bank Plc whether in company terms or group considerations, was able to exploit the opportunities with the environment. This translated into a cheery performance that further attest to the durability and resilience of the brand. These results are once again, an eloquent testimony to the second financial health of the bank and the group. For the bank, total deposits where N1.29 trillion for the year ended December 31, 2010, presently a 16 percent increase over the previous year’s figure N11.1 trillion profit after tax similarly jump by 12 percent, from N14.69 billion (annualized) in 2009 to 33.34 billion in 2010 during the same period, total assets of the bank grew by 14 percent, from N328.38 billion to N350.41 billion. Gross earnings however dropped from N203.32 billion  (annualized) in year 2009 to N169.37 in 2010.

As a group the performance indices were no less impressive. The group profit before tax grew by 78 percent, from N28.07 billion (annualized) in year 2009 to N50.03 billion in 2010. Profit after tax thus jumped by a whopping 127 percent, from N1.66 trillion in 2009 to N1.90 trillion in 2010, while total deposits grew by 12 percent during the same period, from N1.17 trillion to N1.32 trillion, Group share holders fund grew by 8 percent, from N337.79 billion in 2009 N363.56 billion. Gross earnings however declined during the period, from N277.30 billion to N192.49 billion.

Zenith Bank Plc provides various banking and financing services to corporate and individual customers to Nigeria. It offers a range of banking services including corporate banking, individual banking, retail banking and telephone or mobile banking among other conventional and modern banking services.

Within the first decade of commencing operations, the bank made its mark in profitability and all other performance indices in Nigeria and has maintained his prime position to date.


Financial Management: A managerial activity concerned with the planning and controlling of an organizations financial resources.

Finance: This is the management of the flows of money through an organization and the claim against money.

Dividend: A sum of money payable to a shareholder out of the company’s profit

Capital Budgeting: This is the commitment of the organization’s fund into long term project, the benefit of which met be spread over the life span of such project.

Capital Investment Decision: This is the commitment of resources with the expectation of realizing future benefits over a reasonable long period of time in the future.

Shareholders Wealth Maximization: This is an organizational objective of increasing the net worth of the shareholders by increasing the value of benefits accruing to a company.