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
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
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
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
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)
• Please deal (treat as usual according to brief)
• Pay (until cash flow improves)
• Bring for clearance
Notes: people involved in the cash handling politics
- General Manager ]
- Principal Manager ] Managers
- Senior Manager ]
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
UNDERSTANDING HUMAN BEHAVIOUR IN THE
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.
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.
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.
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.
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.
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.
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
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
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
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.
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.
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.
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.
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
- 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.
• 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
- Honesty and Trust
2. Relationship with Subordinate
3. Relationship with Colleagues
4. Relationship with Customer
- High Quality Service
- Prompt Attention
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
2. The know-all type Don’t let him dominate you, decide
and attend to him quickly and let him
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
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
• 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