Comparison between the most popular traditional fi

Comparison between traditional financial management paradigm and flexible financial management paradigm

the word "paradigm" comes from Greek, that is, common display, which can extend the meaning of mode, model, specification, example, etc. Applying the concept of paradigm to theoretical analysis was proposed by the famous contemporary American scientific philosopher MAS samuelkuhn in the structure of the scientific revolution. He believes that paradigm is "some recognized examples in scientific practice - including laws, theories, applications and instruments and equipment - that provide a model for the emergence of a scientific research tradition". Kuhn's paradigm philosophy has three levels: values; Basic laws and theories; Mode, method and technology. In the Kuhn paradigm system, values are at the highest level. Without values, there is no paradigm. Paradigm determines the general direction of social science research. Hans poser, a famous German historian of science, once said that without paradigm, there would be no science. Because paradigm is a theoretical coordinate or compass, it is possible to classify and standardize a certain research category on this basis

I. The difference between traditional financial management paradigm and flexible financial management paradigm

Lao Tzu said: "the world is not as soft as water, but the strong one can win; the world is the most soft, galloping the world is the most strong." Up to now, when we appreciate the meaning with a modern vision and point of view, our feelings are more profound. At the end of the 19th century, Taylor, known as the father of modern scientific management, first put forward the theory of scientific management, and believed that the center of scientific management was to improve labor productivity. In order to improve productivity, we must select "first-class workers", so that workers can master standardized operation methods, and implement stimulating wage and reward system, that is, to form the later "foster" production line. This extreme individualism makes individuals and groups lose their creativity and creativity. This lack of "rigid management" has been exposed in the near collapse of many enterprises. Flexible management has increasingly become the mainstream of management in the 21st century, and it is an implementation form of humanistic management and cultural management. It represents the development direction of enterprise management in the era of new technological revolution

flexible financial management is a new field of financial management science, but it has not attracted enough attention from the theoretical and practical circles of financial management. Flexible financial management is relative to the traditional rigid financial management. Throughout the ages, people often only emphasize the rigid financial management with the color of coercion, and only emphasize observing and obeying various financial management systems to complete various financial indicators, otherwise they will be punished. Obviously, this kind of rigid financial management has mandatory characteristics. Flexible financial management, on the basis of studying people's psychological and behavioral laws, adopts a non compulsory way to produce an inductive force in people's minds, so as to achieve the management objectives of the organization and transform the will of the organization into everyone's conscious action. It can be seen that this is a more advanced, humanized and democratic financial management, as well as a convenient, faster, more rational and scientific financial management

Table 1 Comparative Analysis of traditional financial management paradigm and flexible financial management paradigm

the flexibility of financial management thinking is mainly manifested in two aspects: on the one hand, the organization of financial activities and the handling of financial relations are changed from the push type to the pull type; On the other hand, it is manifested in the transformation of financial relationship combined with traction. Traditional financial management often organizes financial activities according to the plan of the enterprise to promote the development of financial management. Flexible financial management emphasizes guiding the financial activities and financial management of enterprises and straightening out financial relations according to the changes of the environment. Change the past simplified creditor's right and debt relationship into a cooperative relationship, and change the past competitor relationship into a mutually beneficial and win-win relationship

the flexibility of financial management methods is mainly reflected in changing the past procedural and rigid financial management methods into non procedural and flexible financial management methods. For example, in order to shorten the financial budget cycle, the method of concurrent engineering is used to compile the budget; We should change the past rigid center into a flexible center, so that scientific and technological personnel can flow freely within the enterprise and solve the problems in production and operation. Our financial management should adopt corresponding methods to support various innovative activities of the enterprise. By reasonably increasing the investment in product design, we can not only meet the quality needs of users and mobilize the enthusiasm of scientific and technological personnel, but also reduce the total cost of enterprises. These all require more flexible financial management methods: in addition, we can also use ERP system to make financial management methods flexible, which can not only quickly meet the needs of users, but also improve the efficiency of enterprise resource utilization

II. Changes in the organizational system of enterprise financial management

in the face of a complex and multi-performance environment, enterprise financial management usually adopts the way of expanding the scope of its organizational activities and putting uncertain factors under its internal control to adapt to the environment. As a result, the complexity of the organizational objectives of financial management leads to the comprehensive expansion of the space and connotation of financial management. The financial management system required by this expanded financial management organization has more complex flexibility and dynamics than the organization originally engaged in relatively single financial management. As a result, more enterprise financial management organizations have shifted their structure from the traditional stable mechanical hierarchical structure to a new adaptive learning "organic structure"

Table 2 comparative analysis of the hierarchical structure and "organic" structure of financial management organization

enterprise flexible financial management is the ability of the financial management system to "effectively" deal with environmental changes and uncertain financial problems caused by the environment. Whether it is "effective" needs to be measured by some indicators, such as change range, response speed, economy, etc. Financial management systems that can adapt to changes quickly and smoothly in a large range are more flexible than those that obtain the same changes at a large cost or a long time. The "effectiveness" of flexible financial management is relative to external demand

III. performance and implementation conditions of financial management flexibility

1. Performance of financial management flexibility

(1) construction of enterprise financial culture. The appearance of financial management seems to be the management of funds, and its essence is the management of people. And people are controlled by specific spiritual forces. Therefore, the development trend of financial management must pay attention to the guidance of people's basic values and spiritual world. The management method of enterprise financial culture is a kind of management art based on this understanding. Our financial management should give full play to the talents and abilities of our employees, which is the key to our success. As a kind of management culture, enterprise financial culture should be people-oriented and take the shaping of values as the core to guide, regulate and condense people's enthusiasm and creativity. Human nature, human value, human self realization and all-round development have really been highly valued by financial management. Of course, the construction of enterprise financial culture also has many contents, such as enterprise financial spirit, financial objectives, financial image, enterprise group financial consciousness, and enterprise leaders' financial management style. Its core is the enterprise financial spirit. As a cultural phenomenon, financial management obviously shows a flexible trend

(2) irrational financial management. It has two meanings: one is the negation of rational financial management mode. The traditional and standardized organization and mode of enterprise financial management are constructed according to strict logical principles and reasoning, and have become increasingly unsuitable to the changing environment and the needs of stakeholders. On the contrary, those "financial management organizations" temporarily built according to specific goals can adapt to the changing environment and the needs of stakeholders. The second is to pay attention to human irrational factors in financial management. For example, financial allocation, if we pay too much attention to the rational factors such as people's education, experience, position and working hours, but do not pay attention to the irrational factors such as people's interests, hobbies and habits, it will affect the exertion of people's enthusiasm and the improvement of work efficiency. Scientific and technological personnel who are interested in scientific research should be supported in terms of wages and scientific research funds

(3) financial management promotes the formation of enterprise talent system. The establishment of high-quality enterprise talent system has become the key to the success of enterprises in the 21st century. Financial management can not only manage limited funds, but also calculate the input-output account of the talent system, so as to occupy the commanding height of market competition

2. Implementation conditions of financial management flexibility

(1) a scientific and sound rigid system of financial management. The ultimate goal of financial management flexibility and financial management rigidity is basically the same, of course, there are some differences. Financial management flexibility is to better realize that new materials are large but not strong. There are three main reasons: 1. It supports the goal of weak guarantee ability and rigid financial management. Otherwise, it is meaningless to emphasize financial management flexibility

(2) good social atmosphere and leader image. If the social atmosphere of the internal and external environment of a unit is very poor, and the leadership style of the unit is not correct, it is unrealistic to implement the flexible management of finance. Even if it is implemented, the effect must be very poor. Good social atmosphere and leader image can produce many positive effects, which is exactly what the flexible management of financial management needs

(3) good management objects. That is, the employees of the enterprise should have a higher spiritual pursuit than money, a stronger sense of democracy, a higher cultural quality and a better moral quality. This is the basis of flexible management of financial management

3. Obstacles to the implementation of flexible financial management in Chinese enterprises at present

the current implementation of rigid financial management mode in Chinese enterprises shows great limitations

(1) the rigidity of financial management is too heavy, lacking family affection and relatively stiff. In fact, spending a lot of money in this way may not have a good effect. Sometimes, although the cost is controlled, it loses people's hearts

(2) too many levels of organizational structure, unable to communicate in time, resulting in low efficiency of financial management. Because many enterprises in China still use the pyramidal organizational structure, with many levels, complex relationships, controlled by administrative orders, blocked information, poor financial management image, and high management costs

(3) the quality of employees in many enterprises is not high, and the level of managers is low. Many employees are only satisfied with completing their own work and are not interested in how to improve enterprise financial management. Managers are only satisfied with completing the financial indicators issued by the enterprise, and are used to bargaining with the enterprise. They are not really concerned about financial management from the enterprise

(4) lack of excellent knowledge-based enterprise leaders and chief financial officers. Excellent enterprise leaders and chief financial officers are very valuable resources in economic resources. Under the condition of market economy, the development of enterprises has a lot to do with them. Their goals, ideals, mental state, management level, business ability and way of thinking have a great impact on financial management. The promotion and implementation of flexible management of financial management requires a large number of excellent knowledge-based enterprise leaders and chief financial officers, but we still lack them at present

4. Preparations for the implementation of flexible financial management in Chinese enterprises

(1) ideas should be changed from production orientation to market orientation. The traditional rigid financial management mode is closely related to production orientation, and is more concerned with product production and economic production batch,