We all know Reserve Funds are important in any organization but through reserve fund availability, we can differentiate organizations in 3 types.
1. Worker: Worker is someone who is leaving based on daily earning and spending. One or two days non availability of work/ income will directly affect bead and butter of the own and family.
Similarly Worker organizations are those who are dependent on their monthly incomes for paying salary and other expenses. Mismanagement or non availability of finance in a month directly reflect on payment cycles and lead to late salary and payment of other expenses.
Majority staff/team members working with this organizations leaves the organization if they are consistently not getting salaries on time. Employees who have second earning member in family may stay with the organization for longer period of time but who’s family is dependent on one earning member will face problem in managing financial issues on regular basis.
As per Maslow’s Theory organizations on Introduction and early stage of growth will fall in to worker category. Thus major focus of organization on this stage will be on continuous income generation.
2. Manager: The person who is/promoted on Managerial level starts saving some amount of money for future or security as his income grows with time. Managers who’s expenses are on higher side and are not have saving for survival of 3 to 6 months without income can drop-down to worker level anytime. in short managers are those who have saving for 3 to 6 months survival.
Similarly Manager Organizations are those who have enough fund on hand/savings where they can survive and manage all regular expenses without income for 3 to 6 months. The organizations will be on edge over worker organization in terms of consistency of business operations and having bit stable team as they continuously gets salaries and perks on time.
These kind of organizations will be continue their journey on Growth stage with stability and consistency.
3. Leader: Leader is someone who is more stable and secure in terms of financial availability for business management and growth. Leader will plan for long-term and prepare financial resources for same.
Similarly Leader organizations also focus on having 1 to 2 years capital availability for sustaining continuous operations of the business venture. The organization in leader category will have edge above manager and worker organizations as they have more chances of fixing the hurdles coming to way for being market leader without affecting daily operations of the organization for long-term.
As per Maslow’s Theory leader organization will be on Growth and Maturity level who are profitable and having good market share.