MANAGEMENT ACCOUNTING 2
Themanagement process is described as an action that involvesdecision-making, controlling, and planning. The process illustratesthe responsibilities of a manager and functions to allow theworkforce. Managers have the prerogative and sometimes burden to makeindividual decisions for the best interests of the company. The aimof this paper is to look at the above highlighted functions and whythey should be implemented by every manger in a business to reapmaximum benefits.
Consistentwith other responsibilities in the current business environment,management accountants have a twofold reporting liaison. They performthe function of providing decision based operational and financialinformation as well as acting as the chief strategic partners of acompany. To fulfill these roles better, they are allowed theresponsibility of managing a business team while at the same timereporting responsibilities and relationships to the company’sfinance organization. Management accountants are a key in thedevelopment of operations research, new product costing, managementscorecard and sales, client profitability analysis, and businessdriver metrics (Mukherjee 2005, p. 5-7).
Planningcan be referred to as a detail plan of action to accomplish setgoals. It requires clear objectives and devising of means to fulfillthem. For instance, a manufacturing factory manager can carry out asupplier assessment program to discover and decide on suppliers whoare keen and capable of supplying zero defect raw materials. Inaddition, planning enable a manager to keep track of his successtrend during the running of a business. He/she may also be able tonotice anomalies before they actually happen. Business expertsusually recommend on the importance of spending more time in planningphase before executing ideas to ensure their effectiveness once theyare rolled out (Mukherjee 2005, p. 5).
Controllingis a managerial action that helps to keep an eye on theimplementation of a plan, to create corrective, and to formulateremedial procedures whenever necessary. Immediately after a plan isdevised, it passes to the execution phase. The manager and theworkers are given the responsibility of monitoring the process toensure that everything is working as planned. Feedback is usuallyneeded to assess and set the corrective measures to execute a definedplan. This function is very important in ensuring the smooth runningof a process. For instance, a manager in a food manufacturing firmmay need to control the production process to ensure that only theintended quality foods are packed and sold to the customers(Mukherjee 2005, p. 6).
Thedecision-making process is used to select the best resolution to aproblem among many options. This function is collaboration betweencontrolling and planning. The quality of a resolution can be enhancedif all optional information is collected and presented to the managerwho decides if the plan is heading in the right direction or not. Forinstance, a manager may decide on the number of employees needed tocarry out a certain duty in the production process. If he/shemiscalculates the exact figure needed, it may lead to serious lossesto the company. This function is important to an organization as itallows the company to head in the right direction through timely andwise decisions (Mukherjee 2005, p. 6-7).
Asa managerial accountant in a manufacturing firm, it would be prudentto carry out the above-mentioned functions to ensure the qualityproduction of products. Planning for a manager would be important inputting down the steps of production needed to improve the efficiencyof production. This may be done by coming up with a flow chartindicating all the processes involved in the whole productionprocess. Controlling will ensure that all due process is beingfollowed without faltering. To device a good control measure, I wouldestablish a Quality assessment team to ensure the smooth running ofproduction while also evaluating the quality of the final productsproduced. Decision-making will be an essential function for thisposition. To come up with efficient decisions for the company, I willform a team that will help in coming up with ideas and decide onthem.
Mukherjee,S. (2005). Organisation& Management and Business Communication.New Age International.