Magic of Cash
We live in different societies, and in different societies cash has a different relevance. I am not talking about having some cash in a wallet in the event a credit card may no longer work, but more about hunting for cash in our accounts or not. We know from psychologists that typically not the absolute, but the relative welfare is relevant for individuals: How do we compare with our peers, neighbors, friends, relatives…
Comparing our own welfare in an international context can make life even more delicate: In a global organization some nations may need an annual increase of wages in double digit percent while others are getting low single digits. Comparing our welfare will as well include the social security system of the society we are embedded: If the social net is thin, we may focus to become as quickly as possible independent. Consequently, we will try to have enough money in the background. If the social net is broad, we may rely on others.
In business, we are embedded in the country or countries we have companies in and business with. We may see not only a different way of using cash in our organization but as well between organizations, and taxation differs. To optimize cash and cashflow may be one of the tasks of a finance department. To keep all departments aligned is part of the duties of various departments including HR, the businesses and – depending on the organization – other departments as well. Cash, if not well managed, may cause frustration, aggression and may even force people to leave.
Why is cash and cash management connected to culture and people? There is more relevant than one might expect. If you are interested, feel invited to talk.
