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What do Managers do?

What do Managers do?
Smith et al. describe management as “Making Organizations perform”. Management is concerned with Individuals who are delegated authority to manage others – Let me call them ‘People with Power’. Activities for achieving goals – ‘Real Action Plans’. A body of knowledge represented by theories and frameworks about people and organizations – ‘Policy Framework’. What do managers do? As we all know they are involved in general management functions like Forecasting Planning Organizing Motivating Co-ordinating Controlling Are you aware of the ‘hidden’ dimensions of a manager’s job? Modern management theories, although highlighting the complexity of the role, have yet to provide sufficient empirical research and advice into key areas that enable both managers and organizations to increase their effectiveness. For example Dealing competently with organizational politics (“You can ignore it, but it won’t go away” – This is how surveyed employees said they viewed office politics) Successfully managing change (Adaptability is about the powerful difference between adapting to cope and adapting to win) Controlling ethical issues and demands (It takes 20 years to build a reputation and five minutes to ruin it. If you think about that, you’ll do things differently.) Developing the role of  women managers (Women can be better managers than men because they tend to be more conservative and do their homework. Men tend to take more risk without the research) Ensuring personal ‘survival’ and career success in organizations (A successful man is who lays a firm foundation with the bricks others throw at him.) Safeguarding personal health in a stressful environment (Manage stress before it manages you). How to achieve a more comprehensive view of development? Frameworks for setting, linking, and balancing individual and organizational objectives. Systems for identifying and selecting managers Structures to support, motivate and reward Plans to enable career progression Mechanisms to measure and evaluate performance. HRM and Management Development Human resource management as the name suggests is about the effective management of people in organizations. HRM involves the integration of people with business goals and strategies HRM views people as assets to be developed and utilized in a productive way rather than costs to be minimized or eliminated. The philosophies, ideologies, values and beliefs of management that operate and dominate within the organization have an impact on people management. The practices, policies and management styles that managers employ in their managerial role also align people’s behavior towards organizational goals. Senior managers determine the extent to which people are integrated into the organization’s strategic plans. They set the agenda and create the culture climate of prevailing values, attitudes and behavior. Middle and junior managers translate and ‘operationalize’ broader human resource strategies and policies. They give HRM its meaning and reality. It is their perfect management style and actual behavior that decided how the human resources is deployed and managed and thus what people experience as human resource management. The way managers themselves are managed and developed is a significant influencing factor in the way people are subsequently...
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Management vs. Financial Accounting

Management vs. Financial Accounting
Management Vs. Financial Accounting Management Accounting : The process of preparing management reports and accounts that provides accurate and timely financial and statistical information to the management Financial Accounting : The purpose of accounting is to provide the information that is needed for sound economic decision making concerned with classifying, measuring and recording the transactions of a business. What is Management Accounting: Management accounting is the updated version of what you call financial accounting and the most circulated term in corporate business arena. Management involves planning, organizing, staffing, leading and controlling the resources available in an organization, namely the physical and human resources. Much importance is given to personnel management as they are the priceless assets of any organisation.But it is equally important for a firm to record all its business transactions for future reference and tax audits. Thus the necessity of accounting comes into the fray. Financial Statements Made Easy Functional Difference: Well, accounting means something to do with finance. So, what is the big difference, if it is financial or management accounting? One difference is in the title, and the other in their function. The rationale behind financial accounting is statutory, done for the benefit of shareholders, customers, government regulatory agencies, other external agencies, potential investors and the like. It records all business transactions that are purely monetary in nature and no further analysis is done. Essential for Management Planning: Management accounting is voluntary and reports are prepared to meet the internal needs of management. We talked about planning, for which interpretation and analysis of such quantitative data and other inputs becomes necessary to plan for future needs of management. The main functions being attention direction and problem solving, management accounting is primarily concerned with providing information relating to the various aspects of a business, like cost or profit associated with some portions of business operations. It employs techniques such as standard costing, budgeting, marginal costing, break- even analysis and so on., Inputs also stem from industry data, competitor data, published reports by public and private agencies and research studies findings, thus widening its scope for improvement in business operations. Financial Accounting: Financial accounting is restricted to deal only with “generally accepted accounting principles” and any deviation is considered to be errors for correction. Though it provides valid and authentic information, it lacks timeliness. The former restricts the accountant to a mere book-keeper while the latter transcends the role of the accountant to that of total business information technologist. Here he becomes an evaluator of different functional areas like marketing, production, purchase and personnel. As modern business is huge in size, complex, diversified and decentralized in terms of operations, financial accounting just does not fill the bill, as information is required as when an event happens at various hierarchical levels of an organisation. This infographic from Goodaccountants.com  details the industries that employ the most accountants and auditors, and the results are very interesting!  Management accounting is inter disciplinary in character and derives inspiration from organizational theory, economics, behavioral sciences, statistics and management. Although the paraphernalia required for management reporting is complex and expensive, it is worth the try, as it tries to compare and contrast the actuals with the standards and bring out variances if any. This is quite useful in determining the cost-effectiveness of a particular project or to be prepared for suitable action. Management accounting is nothing but a management information system where the managers have to be techno-savvy in order to handle the total information resource and project it suitably to the management to take timely actions for the increase in growth, profit and sustainability of the...
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