Psychology Of Cash Handling and cashering
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Psychology Of Cash Handling and cashering Document Transcript

  • 1. PSYCHOLOGY OF CASH HANDLING AND CASHIERING Cash handling function is a very important operation in any organization that offers quality service(s) to customers. In order to maximize profit and for the organization to grow and remain solvent, it needs to manage its cash prudently. This task can only be achieved when “cashiers” (i.e personnel involved in handling cash) are groomed to handle cash, manage their superiors and customers. OBJECTIVES OF CASH MANAGEMENT Cash management is concerned with ensuring that Companies cash resources are employed efficiently. There are three main aspects to this:- 1st Planning and control of liquidity over the medium and longer time horizons. 2nd Element relating to the banking strategy that involves deciding upon the firm’s relationships with bankers and a consideration of the flow of funds between all entities within the firm with respect to the degree of centralization of banking and the most efficient arrangements for the flow of funds. 3rd There is the day-to-day tracking and control of cash within the firm aimed at minimizing the opportunity cost associated with maintaining cash balances in order to pay creditors and other commitments as they fall due. Cash management concentrates upon four elements:- • Available balances are the recorded bank balance less those uncleared items as these should not be drawn against before they are cleared, unless this has been arranged by prior agreement. • Receipt Float comprises receipts recorded in the Company’s books, which have either not been credited in the bank account or although credited in the bank account remain unchanged. • Payment Float consist of cheques written and entered in the books of the firm but which have not yet been cleared and debited to the bank 1
  • 2. account by the bank. the extent of the payments that will depend upon the time taken for cheques to reach the payee and for them to be banked and cleared. • Unbilled and Outstanding debtor cover invoices not raised, invoices in process and uncollected debts. The four together are often referred to as the “cash pool” UNDERSTANDING CORPORATE POLICIES/POLITICS RELATING TO CASH HANDLING Policies are guidelines that regulate the operations of any organizations. There are laid down policies with regards to cash management/handling in the organization. In such policies, matters ranging from the role of cashiers, the supervision of cashiers, mode of remittances to the bank, cash disbursement procedures, level of authorization and daily account rendering will be clearly spelt out in the policies. We shall also enumerate some other policies for our understanding. - Cash must be handled in such a way to avoid theft, embezzlement, fraud, over invoicing etc. - Cash must be kept from public glare. - To avoid liquidity crises and loss of confidence. - Daily cash position must be ready first thing everyday. - Every procedure of handling cash must be properly documented. - Cash flow must be planned in such a way that it is constant and consistent in supply. - The cash handling operations must be managed and controlled to ensure smooth running of the organization. - Cash must be managed and controlled to ensure smooth running of the organization. POLITICS INVOLVED IN CASH HANDLING OPERATIONS The Cashier needs to understand the politics being “played” by his/her superiors in the process of releasing funds to customers. • Approved and release for payment • Approved but not for payment • Pay (based on liquidity plans) 2
  • 3. • Please deal (treat as usual according to brief) • Pay (until cash flow improves) • Bring for clearance Notes: people involved in the cash handling politics - Director - General Manager ] - Principal Manager ] Managers - Senior Manager ] - Supervisors - Colleagues - Subordinates - Customers Having highlighted the policies and politics involved in handling cash, there is need to examine the behaviour of people that Cashiers work with in an organization: both internal and external customers. It is imperative, therefore, to discuss the human behaviour and the individual differences as this will enable us to understand better how Cashiers can cope effectively in their numerous activities without jeopardizing the operations of their organizations. UNDERSTANDING HUMAN BEHAVIOUR IN THE ORGANISATION The word “behaviour” as defined in the Oxford Dictionary is the way one acts or conducts oneself. In this context, human behaviour could be defined as the way people behave in the organization. Human behaviour is an ever present element of organizations. Behaviour of a person in an organization can be understood better with a knowledge of his individual characteristics and their origin. Man is extremely complex. His interests and abilities are diverse. He has many characteristics. Generally, a person’s characteristics are products of his genetic inheritance and physical being and learning experiences. The study of individual behaviour examined the personal factors that influence an individual in his behaviour: the individual person is the unit of study of analysis. 3
  • 4. Psychologists have taken this view point and have focused on motivation, judgement, perception, learning, remembering, imagination, personality traits and other such factors that constitute the world of the individual person. The following factors tend to affect people’s behaviour. 1. Genetic Inheritance and Physical being Each person starts life with a certain set of characteristics. Each person is unique. No one else has the potential to grow up into the same person hence people react to the same issue, differently. 2. Learning A person starts life with certain biological mental features. These inherited mental characteristics are modified by learning experiences to produce a complete personality, the individual that participates in organizations. Learning is a change in behaviour based on experience. It greatly affects the way man thinks, feels and acts and his beliefs, values and objectives. Thus learning is an extremely powerful determinant of man’s behaviour. 3. Personality Heredity and learning experiences combine to produce a personality – the sum total of what a person was, is and aspires to be. Everyone is different because he has different heredity and experiences. Because he is different, he will behave differently from everyone else. 4. Perception Ability of individual to view things from different angles through socialization processes. Perception is always influenced by Stereotype, Halo effect, 5. Cultural Beliefs. Culture is the way act, behave and do things. Culture is a powerful determinant of people’s behavior. 6. Complexes A complex is a system of inter-related feeling, memories, impulses and emotionally charged ideas. It is demonstrated when an individual is faced with a situation that triggers the expression of the complex. A person’s complexes have a direct bearing on his actions and reactions in an organization. 4
  • 5. 7. Intelligence Man’s intellectual ability is far above that of other beings. Man can determine cause and effect relationship, infer, deduce, have fantasies and make generalizations from insight. This also affects human behavior. 8. Attitude Formation An attitude is a predisposition to act in a certain way toward some aspect of one’s environment including other people. Factors involved in formation of attitude are:- (a) Social influences, such as cultural norms (b) Personality Characteristics (c) Information 9. The Environment Human behaviour is always a product of the environment. Persons have certain typical ways, called psychological mechanisms, by which they relate to their environment. These mechanisms are used by persons as a means of coping with mental problems or conflicts. People do not function independently of their environment or the situation in which they find themselves. Situational differences can affect how people respond in a variety of ways. Our individuality is partially shaped by our environment. THE 5R’S IN CASH HANDLING FUNCTION READ In cash handling, reading is a very important aspect of the job. Any instruction or instrument of payment or receipt must be read clearly by the cashiers. If the cashier neglects this aspect, no doubt such cashier cannot succeed for too long in cash handling. Any document that the cashier has stamped and signed becomes binding on him/her, and he/she cannot turn round to claim any ignorance. Not reading instructions very well may lead to over payment overstating receipt. And when any of these occur, the cashier bears the full consequence arising from such negligence. No feeling of urgency should pressurize the cashier into not reading all instructions. 5
  • 6. RECOGNITION A cashier must recognize the level of authority and the limit of such authority in the organization. He/She must know what an officer can approve and what he cannot approve. Part of such recognition is to be able to clearly identify the signature of all officers that have authority over receipt and/or disbursement of cash resources. Failure not to recognize those signatories will lead to wrong payment and illegitimate approval. The cashier must also, on the other hand recognize the identity and signature of whoever is making any claim. REVIEW The cashier must constantly review whatever instruction he/she has received to confirm its conformity to laid down procedures and policies. Any observation of non-conformity should not only be challenged, but it must be equally reported to the superior officers. Such review will always save the cashier from committing errors and consequent loss of job. RESPOND For whatever comes the way of the cashier, he/she is required to respond to it. It may be in terms of acknowledgement by issuing of receipts for remittance and payment vouchers for disbursement. RE-ACT When there are pressures on the cashier by the superiors he/she is expected to react to such pressure. The reaction will either be that of compliance, in other to avoid arguing with your bosses, or complaint in other to draw the attention of the superiors to the illegality of their demands. It must be said that there are some instructions that deserve clear refusal on the part of the cashier. The reaction of the cashier should be based on good judgement derived from a clear understanding of the organization policies as it relates to cash handling. Competencies required of Cashier to function better With the sensitive nature of handling cash, it is important that cashiers develop the:- - ABILITY TO DEVELOP GOOD INTER-PERSONAL RELATIONSHIP IN THE WORKPLACE There are four levels of inter-personal relationship that the Cashier needs to understand in order to function effectively. 6
  • 7. • Relationship with the Boss • Relationship with Subordinates • Relationship with Colleagues • Relationship with Customers What each relationship requires from the Cashier 1. Relationship with the Boss - Respect - Loyalty - Hardwork - Commitment - Honesty and Trust 2. Relationship with Subordinate - Love - Understanding - Caring - Tolerance - Counseling - Support 3. Relationship with Colleagues - Respect - Love - Sharing - Hard-work - Commitment - Support - Trust - Co-operation 4. Relationship with Customer - Respect - Politeness - Understanding - Patience - High Quality Service - Tolerance - Prompt Attention 7
  • 8. Other points to consider to help Cashiers manage their customers There are different types of customers a Cashier relates with in an organization, the customers may be internal or external – whatever the case may be, the Cashier must develop the skills to understand the behaviour of his/her customers when relating with them. Different types of Customers/Ways to manage them Types of Customer Action 1. The quarrelsome type Keep calm. Don’t involved in an argument. 2. The know-all type Don’t let him dominate you, decide and attend to him quickly and let him go. 3. The loquacious type Limit his speaking time by tactful interruption and attend to his needs without much delay. 4. The Unco-operative type Give him the feeling that you understand his 8
  • 9. needs and try to gain his friendship. 5. the Highbrow type Be patient, and don’t criticize him. In summary, the Cashier must endeavour to adopt the following tips for good performance:- • Understand the psychology of human behaviour • Understand individual differences • Understand the different types of customer he/she relates with • Develop a good inter-personal relationship • Be self confident • Develop the ability to manage his/her superiors • Should learn to manage time effectively • Be prompt in attending to customers • Should have a sense of accountability • Pay attention to details • Be accurate in cash counting • Be open to new ways of doing things (welcome change) • Be trainable (Self development programmes) • Should be firm and assertive. Finally, a good Cashier must be man or woman of integrity, transparency and accountability. 9
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