Concept Of Asset Management

Having at different sections of work conceptualize the terms “Asset” and “Management”, it is ideal to use the different conceptions to develop a theoretical conceptual framework for the word “Asset management” the term refers to the application of management function of planning, organizing, leading, coordinating and controlling to the various kind of asset utilized by an organization. Asset management constitutes a large percentage of managing concerns in an organization.

Apart from administering tangible goods, raw materials, finished products, vehicles, buildings and many other such items modern businesses also need to manage their intellectual assets e.g. personnel’s

Meticulously managed assets of a business organization can make a lot of difference in its profit percentage. Judicious control over all tangible and intangible assets of a company makes sure that there are no leaking funds in the organization and all assets are utilized at maximum capacity.

Asset Management is a comprehensive term and usually requires professional handling. Asset Management is the management of an organization’s assets by a term dedicated entirely for this purpose. Asset Management is a skill like any other. While a rounded person can skillfully perform any of the tasks of their profession, appreciate various kind of interest like music, art, sport, or martial arts, they are not expected to know everything thus, whatever profession you engage in you probably understand it better as a professional than a layman.

In today’s world Asset certain companies known as “Asset Managers” frequently link management with the activities of managing the securities, stocks, bonds, and other like funds of organization. While this is also asset management but the term as earlier stated is broader and more comprehensive that this as posted in the Internet Wikipedia.

Asset Management in summary can be defined as “a process that guides the gaining of assets, along with their use and disposal in order to make them so of the assets and their potential throughout the life of the assets”. While doing this, it also manages and maintains any costs and risks associated with the assets. It is not something you can buy, but rather a discipline, which must be followed to effectively and efficiently manage whatever assets, is used in the organization.

There are many different means of asset management, which depends on the asset involved whether it is financial, or non-financial assets.