Educational Research

Educational Research (ISSN:2141-5161) Vol. 2(7), pp. 1299-1305  July 2011         
Copyright © 2011 International Research Journals

 

Full Length Research Paper

 

The effectiveness of cash management policies: a case study of Hunyani flexible products

Fungai N Mauchi1*, Robert Nzaro2, Kosmas Njanike3, Masvosva Nyaradzai4, Roseline T. Karambakuwa5, David Damiyano6, Rumbidzai N. Gopo7, Fungai B. Gombarume8, Silas Mangwende9  and Collins Manomano10

1*/ 2/ 3/ 4Banking and Finance Department, Bindura University of Science Education.

5/6Economics Department, Bindura University of Science Education.

7/8Intelligence and Security Department, Bindura University of Science Education.

9Management Department, Women’s University in Africa.

10Human Resources Department, Bindura University of Science Education.

*Corresponding author e-mail. fnmauchi@yahoo.com

Received 19 May, 2011; Accepted 03 June, 2011

Abstract

The study sought to evaluate the effectiveness of cash management policies at Hunyani Flexible Products (HFP) using data from 2000-2010. Other objectives of the study were to identify the key processes and models in cash management; examine the impact of poor cash management on the overall company performance and come up with strategies that can lead to an effective cash management system. The descriptive survey method was used to solicit information from the respondents and a case study approach was used. The research study was confined to respondents at Hunyani. Flexible Products where a sample of forty (30) respondents was drawn. Data was obtained through interviews, administering questionnaires and by observations. From the research findings, it was established that there is a high deficiency of an effective cash management policy although some attributes of an effective management system were present. The study found that there is a positive relationship between the level of cash flow and the profitability of the company. The research concluded that, cash management is a culture that forms part of the strategy of companies and depends more on managers themselves than the characteristics of companies.

 

Keywords: Cash management, effectiveness, cash budget, cash flow.

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