FINANCIAL MANAGEMENT PRACTICES AND THEIR IMPACT ON ORGANIZATIONAL PERFORMANCE

Abstract

To maintain economic growth and ensure the provision of a stable and affordable electrical supply, the power sector is crucial. Sound financial management practices in this sector are critical to its sustainability, operational effectiveness, and overall financial performance.To achieve this, we will conduct a thorough analysis of financial management practices, focusing on key areas such as financial planning, budgeting, investment decisions, cost control, and financial reporting. The results showed that factors like knowledge acquisition, storage, creation, sharing, and implementation play a significant role in knowledge management. Additionally, aspects such as productivity, financial performance, employee performance, innovation, workplace relationships, and customer satisfaction also significantly influence organizational performance. In the end, this research highlights that effective knowledge management practices have a direct impact on the performance of small and medium-sized enterprises (SMEs).