Are Finance Departments the Best Place to Train Future Ceos - Essay Example

The role of the officer has been made more intense and expanded to keep under it the goals of communicating financial performance and also giving an updated forecast of the company's financial background and current status to the analyst of the shareholders of the company. This is done to enable them to take better developmental and progressive steps. The title is equivalent to finance director, commonly seen in the United Kingdom. The CFO typically reports to the Chief Executive Officer and is frequently a member of the board of directors.

CEO VERSUS CFO/ ROLE CONFLICTS:
CFO is a very diverse field. It is the backbone of all organizations and institutions. An effective and well-equipped administrative department is what ensures that a company reaches its maximum potential and keeps growing bigger and stronger. CEO on the other hand is a field that requires well-educated and highly motivated, vigilant staff. CEOs are responsible for hiring all personnel, ranging from the janitorial staff, right up to the vice president of any organization.

The CEO is a very vital part of the company he follows and keeps updates on all aspects of a company and its staff right from the time they apply for a job till the time they get hired. They keep checks on any training and development that is necessary and make all necessary amendments. The question these days has come about regarding the necessity of a separate CFO and CEO. And the similar curiosity as to whether there is an actual need for a separate training department or not. It is also common to wonder whether the role of the CFO is a specialist role or can it should be fulfilled by a CEO and vice versa. CFO is a very vital part of all organizations. They are responsible for the efficient and effective management of Human capital.

The main function of the CEO’s tracking the data points of every employee and staff member. Along with tasks such as selection, placement payroll, and evaluation. To reduce the excessive workload of these activities organizations started to employ individuals to handle these specific areas and thus there came the administrative departments. And these days with technology at its peak these tasks are also being taken care of by automated computer-based programs. Making it possible for the work of three separate organs of a company the human resource The CEO and the CFO to be done by one person that too with the click of a mouse key. This is the reason that the questions stated earlier regarding the need for separate individuals have started coming up.

CONCLUSION:
However, as has been mentioned above that both roles are very different from one another, and therefore to think that they can be done by one person is not a wise thing. The Chief Financial Officer (CFO) of an organization has responsibilities that include internal financial control of the organization, financial reporting (external financial accounting), financing the organization, assessment of the capital budgeting process, and an array of additional responsibilities. The CFO must have an external orientation and they must know all ways in which they can gather knowledge about the market with which their company deals and also the kind of investments the investors and shareholders are making to give proper advice for future investments. There fore they would require a whole different degree of training and also they would require different types of experiences. This is as mentioned above a specialist role and therefore to place a CEO who has worked and been trained in totally different areas to do this job would not be a wise move by any company. Read More