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Managerial competence review for Manager in Selected Accounting and Auditing Firms in Davao City, PH
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    Managerial competence review for Manager in Selected Accounting and Auditing Firms in Davao City, PH Managerial competence review for Manager in Selected Accounting and Auditing Firms in Davao City, PH Document Transcript

    • Managerial Profile and Competence Review of Managers in Selected Accounting and Auditing Firms in Davao City [APRIL 2009] CHARLES JOHN C. ECHAVIA, ET AL
    • University of Mindanao Bolton St., Davao City Managerial Profile and Competence Review of Managers in Selected Accounting and Auditing Firms in Davao City A Research Paper Presented to the Faculty of the College of Business Administration of the University of Mindanao In Partial Fulfillment of the Requirements for Bus 6 (Business Research, Code # 5420) Second Semester, SY 2008-2009 Submitted to: Rowena A. Cuevas-Cinco Bus 6 Adviser by Charles John C. Echavia Ivy Sheryl R. Miguel Alaine D. Abellana Alainder S. Tan April 2009
    • ACCEPTANCE SHEET This Business Research entitled “Managerial Profile and Competence Review of Managers in Selected Accounting and Auditing Firms in Davao City” prepared and submitted by Charles John C. Echavia, Ivy Sheryl R. Miguel, Alaine D. Abellana, and Alainder S. Tan. In compliance with the requirements of Business 6 under the College of Business Administration is hereby accepted. ROWENA CUEVAS- CINCO, MBA Business 6 Adviser VICENTE SALVADOR E. MONTAÑO, DBA Dean, College of Business Administration April 2009 University of Mindanao Davao City, 8000 Philippines
    • APPROVAL AND ENDORSEMENT SHEET This research project on “Managerial Profile and Competence Review of Managers In Selected Accounting and Auditing Firms In Davao City” has been prepared and submitted by, Charles John C. Echavia, Ivy Sheryl R. Miguel, Alaine D. Abellana, and Alainder S. Tan, in partial fulfillment of the requirements for the Degree of Bachelor of Science in Business Administration, has been examined and is hereby recommended for acceptance and approval for oral examination. MANUEL ORTEGA, MBA Adviser PANEL OF EXAMINERS Accepted and approved, after examination in the Final Defense on April 2009 for the requirement of the Degree of Bachelor of Science in Business Administration Major in Management Accounting, University of Mindanao, Davao City. VICENTE SALVADOR E. MONTAÑO, DBA Chairperson ROWENA CUEVAS- CINCO, MBA REYNALDO CASTRO Research Coordinator Member
    • ABSTRACT In fervor of identifying the significant relationship and differences among managerial profile and their level of competences, hence the desire of the researchers to instigate the study arise. Modern business in today’s competitive world requires modern management, and this means well-trained managers. Thus, this study is realized, it aims to determine whether there is a relationship between managerial profile and the competence of managers in three identified area of skills. The descriptive method of survey- correlation was used in the study. It is descriptive since it assess managerial profile of managers and their level of competence. It is co-relational in a sense that this study aims to determine the significance differences and relationships between managerial profile and their level of competence. 30 managers and 134 employees were used as the respondents of the study, purposive sampling was utilized. Two sets of questionnaires were distributed and were personally done by the proponents. It was found out, that managers possess a very high level of competence, significant differences were noted among manager’s age, length of service, educational attainment and experience in relation to the three areas of competence. On the other hand, significant relationship was established among manager’s educational attainment and training respectively, towards the three area of skills. With this, managers should update themselves by engaging to further education since their competence is best enhanced through this. Thus, educational institution should provide relevant education and program to update managers for the latest trend in business.
    • In addition, necessary trainings and seminars should be designed to enable the managers to be equipped with relevant knowledge and skills that would complement their profession.
    • ACKNOWLEDGEMENT The researchers would like to extend our sincerest thanks to some people who have helped us this research possible; To Prof. Manuel Ortega, MBA, our research adviser, for the guidance, knowledge, and wisdom provided to us for the success of our study; for the patience and understanding and for the comments and suggestions given to the researchers. To the distinguished panel of examiners, Vicente Salvador E. Montaño, DBA, Rowena Cuevas – Cinco, MBA, Reynaldo Castro for the critique and corrections to improve the research paper. To Mr. Guillermo B. Bonghanoy, our statistician, for the support and assistance in the research problem and analysis. To Dr. Nora L. Sisneros, our grammarian, for the patience of editing and reviewing our research. To our Parents, for the financial support in conducting the study. Above all, to Almighty God, for the wisdom and who is always with us to enlighten our mind and guide us to finish the research. The Researchers
    • TABLE OF CONTENTS Pages Acceptance i Approval ii Abstract iii Acknowledgment v Table of Contents vi List of Tables ix List of Figures x CHAPTER 1 INTRODUCTION Background of the study 1 Statement of the problem 2 Hypotheses 4 Review Related Literature 4 Theoretical and Conceptual Framework 19 Significance of the Study 20 Definition of terms 22 2 METHOD Research Design 23
    • Research Subject 23 Research Instrument 23 Data Gathering Procedure 25 Statistical Treatment of Data 25 3 PRESENTATION AND ANALYSIS OF FINDINGS Managerial Profile of Managers in Selected Accounting and Auditing Firms in Davao City. 27 Level of Competence of Managers in Selected Accounting and Auditing Firms in Davao City. 30 Significant Difference among Managerial Profile and the Level of Competence of Managers in Selected Accounting and Auditing Firms in Davao City 33 Significant Relationship among Managerial Profile and Their Level of Competence 44 4 SUMMARY OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS Summary of Findings 49 Conclusions 52 Recommendations 53 REFERENCES 54 APPENDICES A Letter of Permission 56 B Questionnaire 57 C Validation of Research Instrument 61 D Certification of Grammarian 62 E Certification of Statistician 63
    • CURRICULUM VITAE 64
    • LIST OF TABLES Tables Pages 1 Managerial Profile of Managers in Selected Accounting and Auditing Firms in Davao City. 29 2 Level of Competence of Managers in Selected Accounting and Auditing Firms in Davao City. 32 3 Significant Difference among Managerial Profile and the Level of Competence of Managers in Selected Accounting and Auditing Firms in Davao City when analyzed as to Age 34 4 Significant Difference among Managerial Profile and the Level of Competence of Managers in Selected Accounting and Auditing Firms in Davao City when analyzed as to Gender 36 5 Significant Difference among Managerial Profile and the Level of Competence of Managers in Selected Accounting and Auditing Firms in Davao City when analyzed as to Length of Service 38 6 Significant Difference among Managerial Profile and the Level of Competence ofManagers in Selected Accounting and Auditing Firmsin Davao City when analyzed as to Educational Attainment 40 7 Significant Difference among Managerial Profile and the Level of Competence of Managers in Selected Accounting and Auditing Firms in Davao City when analyzed as to Experience 42 8 Significant Difference among Managerial Profile and the Level of Competence of Managers in Selected Accounting and Auditing Firms in Davao City when analyzed as to Number of Training Attended 44 9 Summary of the Significant Relationship among Managerial Profile and their Level of Competence 46
    • LIST OF FIGURE Figure Page 1 Diagram of Conceptual Framework 22
    • Chapter 1 THE PROBLEM AND ITS SETTING Background of the Study Any business establishment succeeds by satisfying the needs of its customers. Therefore, managers are required to continually refresh and understand their customer’s requirements and anticipate shift in demand and expectation. Customer’s standards for satisfaction changes gradually, hence the managerial challenge to deliver products and services effectively and efficiently shall gear towards it. By this, enterprise is leading towards prosperity. In general, modern business in today’s competitive world requires modern management, and this means well-trained managers. Even today, most people undertake management position with little or no formal training. As a result, they adopt styles by which they themselves were managed. Every manager has a responsibility towards himself or herself, their team, the individuals within the team, the company and the task in hand. In the Philippines, Cariño, (1998) pointed out that the duty of managers is to manage the day-to-day activities and to plan for long term goals and eventually execute action plan to accomplish objective or goals. However, doing such will require competent and skilled managers. In the field of accounting, for instance, accountant-manager must possess skills that an ordinarily prudent accountant would have and exercise the degree of care that an ordinarily prudent accountant would exercise. An accountant conforming to Generally
    • Accepted Accounting Principle (GAAP) or Generally Accepted Auditing Standard (GAAS) and acting in good faith, will normally not be held liable for incorrect judgments or for relying on incorrect information. The manager-accountant plays a very important and crucial role in every business entity. Thus, they should posses an outstanding level of competence, in order to assure that they are able to project the necessary competence required in their profession. With this, researchers would like to assess as to what level of competence the managers have, in three identified skills identified by the proponents. In Davao City, Martinez, (2008) said that The Philippines Institute of Certified Public Accountants continues to create programs and necessary training that would enhance the competence of accountant to carry out their undertaking in efficient manner. The noted problem above, which concerns on the competencies of the managers, gives way to conceptualize this research. The proponents of this study want to ascertain the factors that significantly affect managerial competence. Thus, there is a need to undertake the study. Statement of the Problem The purpose of this research is to determine the managerial profile and the competence level of managers in selected accounting and auditing firms in Davao City. Specifically this study sought to answer the following questions: 1. What is the managerial profile of manager in selected accounting and auditing firm in Davao City in terms of: 1.1. Age
    • 1.2. Sex 1.3. Length of service 1.4. Educational Attainment 1.5. Experience 1.6. Training 2. What is the level of competence of managers in selected accounting and auditing firms in Davao City in terms of: 2.1. Communication Skill 2.2. Professional Skill 2.3. Technical Skills 3. Is there a significant difference among managerial profile and the level of competence of managers in selected accounting and auditing firms in Davao City when analyzed as to: 3.1 Age 3.2 Sex 3.3 Length of Service 3.4 Education 3.5 Experience 3.6 Training 4. Is there a significant relationship among managerial profile and the level of competence of managers in selected accounting and auditing firms in Davao City?
    • Hypotheses HO1: There is no significant difference among managerial profile and the level of competence of managers in selected accounting and auditing firms in Davao City. HO2: There is no significant relationship between the managerial profile and the level of competence of managers in selected accounting and auditing firms in Davao City. Review of Related Literature The following readings taken from different authors are found related to the study. GoldStein (1999) reported that the most vital contributor to continuous improvement is the manager. All managers have to ensure that their own education and training is sufficient for the business challenges of both today and tomorrow. Today, many companies are operating in an extremely competitive environment where goals and results to be reached are in an accelerated and constant-improvement process. In the managerial literature, organizational learning is presented as an effective practice to improve competitiveness based on the development of managerial competencies. He added that the improved managerial competence cannot be achieved in overnight settings, it is acquired through a long process of studying and involving the manager into a work related activities. The most common reported results of managerial competency programs includes an improvement in staff performance and achievement, an increase in staff motivation, development of a more flexible and highly skilled workforce, higher levels of customer service and improved quality levels. Managership must model ethical behaviors to create an ethical culture that helps to develop ethical behavior in employees and increase employee job satisfaction.
    • Age McMillan (2008) stated that more young people are in management positions these days, and the trend doesn't apply to only few establishments, but everywhere. It's spilling over into traditional industries as well. Young professionals have "fresh energy and new perspective" that companies find valuable at the management level. Age-related skepticism (and even criticism), however, is a challenge that these new managers must face. Onken (2008) on the other hand, stressed out that one of the undeniable facts about the differences between the young and old is that youth has physical advantages. In gymnastics, a person is over the hill at fifteen. Professional football players and strippers retire in their thirties. Intellectual young people often test well and excel at logic problems. The most important advantages, however, are psychological McMillan (2008) added that young managers can make subordinates of all ages feel comfortable by emphasizing teamwork. Being a manager doesn't mean making final decisions, but collaborating with players to come up with the best solutions and implement them. He said that one of the advantages of being a young manager is that it is not set in its ways. It is always looking for ways to improve how the operation runs. Unfortunately, not everyone looks beyond age and gives credit where it's deserved. But acknowledges that earning respect can take a while, especially when an individual is still wet behind the ears. Respect is something that one has to earn over time by working hard and showing interest in improving. Onken (2008) added that age, however, also has its job-related advantages. The career of a good judge doesn't peak until well after the commonly accepted retirement age. At a more mundane level, what the older workers lack in raw physical ability is to avoid
    • the kind of problems that require reflexes and strength to solve. They are more reliable, less volatile, and generally more productive than their younger colleagues. Every age group suspects that its own characteristics are really the most desirable and devises pejorative descriptions for those generation ahead. Thus, middle-agers tend to see older workers as "over the hill," "coasting toward retirement," experiencing "second childhoods," or subject to those memory impairing "senior moment. Nevertheless, old ideas about work and age die hard. Young managers fall prey to outdated prejudices, particularly when older workers encourage the prejudice by trying to be something they cannot be. Younger bosses make a place for older workers when workers guide them in ways of doing it. In fact, when each party can present him or herself without pretense or apology working out an appropriate role in the workplace can sometimes be as easy as just not taking oneself too seriously. Sex Schuhmann(1999) account that in an effort to better frame the significance of gender influences on the behavior of managers it is important to first take cues from two bodies of literature- the literature showing influences of gender on the behavior of public officials and the literature focusing on the importance of the management position to business firms. He said that there is an expanding body of socio-psychological and political science literature that suggests women have political attitudes and societal orientations that differ in meaningful ways than those of men. Further, there is a body of scholarship that argues convincingly that public administration broadly conceived is a highly gendered environment. While it is also important not to overstate gender differences, it is increasingly evident that men and women often bring different leadership qualities, agenda,
    • priorities and methods of conceptualizing policy issues to their professional roles. On the other hand, in the field of accounting profession, Hayes (1996) reported that one highly visible demographic trend in the last decade has been the surge in the number of female CPAs. Women now account for about 20% of all CPAs. There are several reasons for believing that the percentage of women accountants will continue to rise. For the past several years about 50% of all accounting graduates have been women. Barriers to female employment and progress continue to break down as more women are promoted to senior level positions. Davidson (2000) also said that managerial job segregation be gender persist, with women managers dominating certain managerial position such as human resource, public affairs, communication and law and others. Consequently, Schuhmann (1999) reported that Carol Gilligan mentioned in his path-breaking but controversial book, “In a Different Voice”, that men and women “construe social reality differently,” leading to the creation of distinctively male and female voices. According to Gilligan, he said that the female voice embraces the ideals of responsibility, caring and interconnectedness, while the male voice embraces adherence to rules and individualism. Other socio-psychological investigations, including some conducted by Gilligan herself, have further refined initial arguments. Additionally, Schuhmann(1999) said that based, in part, on these conceptions of gender differences, a growing number of studies of elected officials, public administrators, and private managers have explored professional behavior of men and women and found important differences. It was found out that women state legislators placed high priorities on policies that concern women, family, and children, while male legislators focused on
    • business and economic legislation. In a study of leadership style, it was noted that women committee chairs in state in a legislatures were much more task oriented than their male counterparts. In terms of the management style of appointed or merit employees, the research on gender influences in the public sector seems less well developed that the literature on elected officials. Finally, studies of private sector managers revealed that women show a pattern of leadership that differs from top-down, controlling styles often associated with men. It was observed that women encourage participation, share power and information more readily, enhance the self-worth of those around them, and tend to energize others. In another study on 1995 it was found out that women executives tended to see themselves as being in the “middle of things”. Women preferred to be not at the top, but in the center of a “web of inclusion”. Moreover, it was found out that women exhibit a number of a stylistic characteristic that may set them apart from their management counterparts in important ways. Some of these characteristics include a higher level of intuition about people, and interest in offering more praise to employees, a greater interest in giving orders “kindly,” a greater sensitivity to subordinates needs, a higher level of compromise and conciliation, and a different approach to team work. Moreover, Hayes (1996) said that the accounting profession has several characteristics especially appealing to women, such as relatively high pay, good working conditions, and a foundation in business that often leads to management or ownership career alternatives. However, women in the accounting profession have not been promoted as rapidly as their counterparts. A disproportionately small number of managers (35%) are women. A
    • study showed that less than five percent of the senior partner positions and less than 20% of the top managerial positions in the accounting firms were held by women. Foster (2003) reported that some commentators are concerned that the increasing number of women in the accounting profession will have an adverse affect on the profession’s status. After studying the historical development of other professions and occupations, some researchers have suggested four alternative scenarios for the future of the accounting profession. First, the profession could become predominantly female, since female accounted for more than half of the profession in the 1990’s. Historically, other professions that have become predominantly female have lost prestige on earning potential. Second, accounting could revert to a male-dominated profession. Third, the accounting profession could wind up with different levels or tiers that could be used to differentiate professionals. Such a system could accommodate different career track choices in ways that might mirror gender differences. The fourth alternative is for accounting to become fully integrated. Males and females would operate at all levels of the profession equally. As the profession becomes more dependent on technology, however, it could become multitiere. Hayes (1996) stressed out that the turnover rate is also higher for women than men; among lower and middle level managers this leaves fewer females available for promotions to senior positions. It is encouraging, however, that recent partner admission reflect an equitable gender distribution based on the relative proportions of men and women in the senior manager positions from which partners are chosen. He pointed out that women’s lack of success enriching partnership and manager status persists, despite overwhelming research evidence showing that women possess similar skills in accounting and general management. Studies have revealed no significant gender differences in behavioral traits,
    • work ethics, perceptions of occupational value, or career expectations. Similarly, studies show that men and women are much alike in feelings of job stress and commitment to the profession. Women, however, are promoted less frequently and earn less than men at every level after initial entry. The disparity in pay and advancement cannot be explained by differences in age, experience and education. Education Pickett (1998) noted that workplace training and education have increasingly been seen as pivotal factors in improving the abilities, skills and competitiveness of industry. Managers competency can be done by engaging themselves in work related task, rather by letting them study for theoretical concepts. McGuire (2008) accounts that education is a very important part of life. One needs to learn as much as possible to better themselves to make better students, instructors, and employees. One can fill with as much information possible to make us a better-fulfilled person and more successful. Having an education gives an ability to learn more and be able to share and teach others and have a better career. McGuire (2008) noted that education is a great benefit for a better career, higher paying job in a large company. Employers are looking for educated hard working individuals that are smart and well rounded and that have taken the time in getting a education in their particular field. Being a better employee and getting paid more is of great benefit of all the hard work and many hours put in to receive education. Knowing more about our career we have chosen can lead to promotions, higher pay and great benefits. He further reported that the importance of a college education is also accentuated because of the opportunity to gain valuable resources during tenure. Having a college degree often
    • provides for greater promotion opportunity.Through education and intensive training, one may acquire a skill that can lead to managerial and supervisory intelligence. McGuire (2008) furthered mentioned that the management courses that were taken by students in college will prepare them to supervise a large number of people at one time. Non-graduates will realize how important an education is when they are told that they do not meet the minimum qualifications for any position that is open, and management positions will rarely be opened to those that do not possess some type of college degree. Experience Takeuchi (2005) mentioned that work experience has gained increasing significance and is widely recognized as a vital asset and as potential source of competitive advantage for multinational companies. For firms competing in the global marketplace and for aspiring executives developing their careers, national assignments constitute an important set of work experience. Indeed, work experience is one of the major requirements for promotion to higher-level managerial positions and CEO’s with longer work experience are often more highly sought after than those who lack extensive work experience. Takeuchi (2005) explained that it is difficult for individuals to be successful during national assignments, and their failure has considerable costs for their organizations. In addition, organizations that fails to fully develop needed work experience among managers face potential inability to carry out global strategic initiatives. Insufficient work experience may also be associated with suboptimal productivity of subsidiaries, lost opportunities for creating or penetrating markets, and difficulties building and maintaining relationships with stakeholders. Furthermore, failure also bears considerable costs for managers, including loss of self-esteem, self-confidence, and reputation, as well as reduced motivation and
    • willingness to support others. Unsuccessful national assignment may also impair manager’s ability to learn and develop competencies needed by his or her organization. Training Foster (2003) detailed that computer knowledge plays a major role in today’s environment. Dependence on computers has been growing at geometric pace-especially in recent years-since the establishment of mandatory CPE in many of the states. Software and hardware availability change or are upgraded constantly. Knowing what is available today, and how to use it, does not ensure understanding tomorrow’s availability without continuing education. Whether part of an audit, the preparation of tax returns, consulting, engagement management, or you name it, current computer knowledge is a necessity, and must be an integral pat of any CPE program Foster (2003) added that no regulator of the CPA profession could have anticipated when formulating CPE licensing rules, the place computers and technology would assume in the effective and efficient operation of today’s accounting practice. The result of research by AICPA special committee on the future of audit and assurance services have shown that the competencies needed by the CPA of the future will be computer oriented. Everyone active in public accounting will have to keep current in computers and technology or become obsolete and diminished value in serving the people. The only answer is extensive ongoing training in technology at every level within the firm. Foster (2003) reiterated that today’s managers have to play more than just supervisory roles. Apart from playing the role of the leader and guide they also don the roles of facilitators, coaches, communicators and team members. Hence, manager training is a critical component in today’s organizational environment. Middle management is a
    • critical element of any organization’s structure as they serve the link between Executives and Frontline Managers. More often than not, organizations have found that a highly skilled, well trained set of managers can help steadily drive the organization towards it objectives, financial and otherwise. He added that investing in the management training usually reaps high returns as it means an organization will have better leaders. Better leaders usually make for better teams. This will also have an indirect impact on organizational and team communication, employee morale and productivity. Additionally, In their Executive Survey of Leadership effectiveness, “Fortune Magazine” and the “Hay Group of Company”, found out that the most admired companies in the world all had one thing in common: attentiveness toward nurturing "emotional intelligence" of leaders; in particular, a focus on the enhancement of such characteristics as self-awareness and management as well as social awareness and social skills through trainings and seminars Not surprisingly, the most successful and satisfied companies are those who understand ongoing leadership training and development to be excellent returns on investment. Training after training, will lead in excellence personal performance of leaders which is considered the key to corporate success Competencies Pickett (1998) mentioned that everyone have competencies. These are the sum of our experiences and the knowledge, skills, values and attitudes we have acquired during our lifetime. In the workplace we use our competencies to perform a variety of behaviors and activities, which in turn produce outputs (products and services) that we provide to others. It is the quality of these outputs and the reactions of those who receive them that
    • lead to results with positive, negative or neutral consequences for the organization; the people who work there; and its suppliers, shareholders, clients and customers. On the other hand, Rothman (2000) reported competence management is the process of determining what is required to meet organizational objectives, determining what the organization has, and developing strategies for either recruiting or internal development of the required competence levels. In his writing, he said that in order to meet the standard of competitive business world, managers should adapt changes. Such thing is necessary and critical for survival and staying in business. Bitencourt (2005) explained that in today’s setting, many companies are operating in an extremely competitive environment where goals and results are reached in an accelerated and constant-improvement process. The improved managerial competence cannot be achieved in an overnight setting, it is acquired through a long process of studying and involving the manager into a work related activities. Bitencourt noted that the concept of competence has different meanings, and it remains one of the most diffuse terms in the organizational and occupational literature. He further suggested that competence is a contested concept, the meaning of which is shaped by those who use it. Pickett (1998) further explained that the current and future success of an enterprise is a reflection of the effectiveness and competencies of the senior management team, their vision and leadership, and the combined knowledge and skills of the organization's workforce. This means that the identification of critical management and specialist competencies that will enable enterprises (and countries) to meet the demands of the future has assumed an even more important place as a key responsibility of senior business executives, human resource practitioners, educationalists, public administrators and
    • government leaders. He pointed out that the ability to create, apply and extend knowledge in the workplace is one of the critical factors in the future success of enterprises. Communication Skill Chapman (2000) mentioned that managers move into leadership roles, they go through a transition that can be rather dramatic. In no other area is this transitional change more pronounced than in communication. Professional leaders know the importance of developing communication skill. He added that communication skill development training has become an integral part of an increasing number of training programs for managers. And the emphasis on communication skills has seen phenomenal expansion in recent years. At the college level for example, student can now pursue full degrees in several specialties within the communication discipline. The reason for the increased focus on communication is simple: human relation – with communication skill as a central component – is still the most important and vital factor in hiring employee. Barret (2006) on the other hand explained that a leader must communicate effectively. Managers spend most of their time engaging in communication, in fact studies of how much time managers spend in various activities show that communication occupies 70 to 90 percent of their time every day. He added that effective leadership depends on effective communication. It is through effective communication that leaders directs, motivates and inspires other. Without effective communication, a manager accomplish little. Chapman (2000) further explains that leaders must be communicators because they have a considerable amount of responsibility for assuring good communication among members. Team work is extremely dependent upon a successful communication. Thus,
    • good communication is a vital element for team success. Walley (1996) reported that in addition to exercising their analytical and technical skills, CPAs must be able to effectively communicate with people at all levels. They examine, analyze, and evaluate human decisions and then communicate their findings to the trained and untrained. They must know how to ask the right questions, evaluate the responses, and act accordingly. CPAs must be able to persuade clients and others to revise and correct material that is not in proper form is questionable, or not economically sound. Individuals must be able to present and defend their views through formal and informal, written and oral, presentation. They must be able to so at a peer level with the business executives. They must be able to listen effectively to gain information and understand opposing point of view. They also need the ability to locate, obtain and organize information from both human and electronic sources. Consulting and business advisory services will be of limited value to clients and ultimately the public unless communicated effectively. Communication skills are greatly enhanced and made more effective through training. In addition, Walley (1996) continued that interpersonal skills and ability to work with others are an important part of public practice. Working effectively in groups with diverse members to accomplish tasks is essential. Individuals must be able to influence others, motivate and develop others, withstand and resolve conflict. He said that the proper training of CPAs in interpersonal and management skills helps assure that engagement is being performed in a way that assures maximum public benefit. Walley (1996) said that the growing needs of clients and the public and the increasing complexity of all business activity demand that the profession develop future
    • leaders to handle client assignments and to operate their firms into the next century. It will require well rounded, broadly educated CPAs. Management education is vital to train leaders who will be the driving force to make sure the kind of services needed in the future will be available at fair price. He explained that a recent pronouncement of the AICPA requires that financial statements include disclosures about certain significant risks and uncertainties the enterprise feces. Other professional standards require that the accountant consider the ability of the company to remain a going concern. Accountants who are called upon to deal with such matters to deal with such matters cannot rely on their training on technical subjects, but must be exposed o a broad range of business and managerial subjects. Professional Skills Professional is defined as a worker required to possess a large body of knowledge derived from extensive academic study with the training almost always formalized. Professional skills can be derived, therefore, if a certain individual undergo extensive formalized study. Daft (2000), reiterated that there is a need to strengthen professional skills in order to enhance personal power of the managers. Personal power is the tool of the leader. Subordinates follow a leader because of the respect and admiration, for the individual and his or her ideas. Technical Skills Arul (2006) said that technical skill implies understanding of and proficiency in a specific kind of activity, particularly one involving methods, processes, procedures, or
    • techniques; it involves specialized knowledge, analytical ability within that specialty, and facility in the use of the tools and techniques of the specific discipline. Vocational and on- the-job training program largely do a good job in developing this skill. He added that the starting point for analyzing the contribution of skills is to use level of education as a proxy for skill. The strength of this approach is that it allows a focus on the knowledge accumulation process over the working life, including the level of education, work experience and on-the-job training. Pickett (1998), states that it certainly helps if a manager and supervisor has strong technical skills, an overall understanding of the technologies being used to meet business needs and how that ties into projects and department responsibilities. But being a good manager also requires other important skills Theoretical and Conceptual Framework This study is anchored on the theory of Jaffee (1992) which states that managerial and supervisory success is one that comprises competency factors and involves exercising of skills and abilities in attaining the goal of the organization. Jaffee (1992) pointed out that without competency and leadership quality, managerial responsibility is difficult to perform. This was further supported by Pickett, (1998) explained that the current and future success of an enterprise is a reflection of the effectiveness and competencies of the senior management team, their vision and leadership, and the combined knowledge and skills of the organization's workforce. This means that the identification of critical management and specialist competencies that will enable enterprises (and countries) to meet the demands of the future
    • has assumed an even more important place as a key responsibility of senior business executives, human resource practitioners, educationalists, public administrators and government leaders. In this study the independent variable is the managerial profile of selected managers of accounting and auditing firms in Davao City in terms of educational attainment, experience, and training, age, sex, and length of service. On the other hand, the dependent variables are the competence factors which comprise the professional skills, communication skills, and technical skills. Accordingly, Daft (2000) reiterated that in order to be consider a competent manager there is a need to strengthen professional skills in order to enhance personal power of the managers. Additionally, Barret (2006) added that effective leadership depends on effective communication. It is through effective communication that leaders directs, motivates and inspires other. Without effective communication, a manager accomplishes little. Thus, higher level of communication skills would qualify the manager a competent one. Lastly, Pickett (1998), states that it certainly helps if a manager and supervisor has strong technical skills - an overall understanding of the technologies being used to meet business needs, so that he will be able to accomplish his job competently. Significance of the Study The finding of this study may of great help to the following sectors: Managers in accounting and auditing firm – The result of this study will enable the managers to assist their level of competence. They shall have an idea of upgrading their knowledge to meet the standards that they should posses.
    • Students – The result of this study would encourage students especially the ones who are soon to be managers in accounting and auditing firms. On the near future, students would realize how important for a manager to become competent for it would affect the company as a whole. Clients - The result of this study will help the interested users or the client to realize how important it is for an accounting and auditing firm to have competitive managers who will assist the needs of its clientele. Independent Variable Dependent Variable Figure 1 Diagram of Conceptual Framework Managerial Profile Age Sex Length of Service Educational Attainment Experience Training Managerial Competence Professional Skill Communication Skill Technical skill
    • Definition of Terms Managerial Competence Review - It refers to evaluating the quality of being capable, efficient and the capacity of managers in accounting and auditing firms in Davao City. Managerial Profile – It refers to the personal qualification and attributes of the managers Top managers – Are the managers who are in the top level management of the organizational structure. In this study, it refers to the owners of accounting and auditing firms in Davao City. Technical Skills – It refers to the qualities of a person to carry out its profession. In layman’s term it means the “know how” of a person. Professional Skills – It refers to the skill that is acquired by a person through formal training education. Communication Skills – It refers to the capability of a person to communicate efficiently and effectively. Experience – It refers to the numbers of companies the managers had worked with.
    • Chapter 2 METHOD This chapter presents the research design, the subject of the study, the research instruments, data gathering procedure and statistical treatment of the data. Research Design The descriptive method of survey- correlation was used in the study. It is descriptive since it aims to assess the managerial profile of managers and their level of competence. It is co-relational in a sense that this study aims to determine the significant differences and relationships between managerial profile and their level of competence. Subject of the study The study focused on the managerial profile and competencies level of managers in selected accounting and auditing firm in Davao City. 30 managers and 134 employees in accounting and auditing firm were chosen as the respondents of the study. Purposive sampling method was utilized in the conduct of the study. Research Instruments The study utilized two sets of questionnaires. First set of questionnaire determine the managerial profile and the second set focuses on the competency review of top managers in selected accounting and auditing firm in Davao City. The first part of the questionnaire deals on the managerial profile in terms of age,
    • sex, length of service, education, experience, and training. This part comes in a checklist form. However there are questions which need to be personally answered by the respondent. This part was distributed to accountant-manager. The second part deal with competence level of managers, in three identified area, each indicator composes of eight questions. Likert scale is utilized, thus respondents were ask to rate the of manager's competency from 5 as highest to 1 as lowest rating. This part was distributed to the employees of the selected managers. The questionnaires were validated by Professor Marcelina Falcon with an over all mean of 4.00 which mean very good, Professor Rowena Cuevas-Cinco, 4.16; very good and Professor Vicente Salvador Montaño, 3.71; good, with an over all mean of 3.96, good. Below are the scales used in rating the managers: 5 – Always -The skill is evident always at all times 4 – Often -The skill is evident regularly 3 – Sometimes -The skill is evident sometimes and at short interval of time 2 – Seldom -The skill rarely happens and at along interval of time 1 – Never -The skill is not evident at all The following interpretations were used for getting the mean for managerial competence RANGE VERBAL DESCRIPTION INTERPRETATION 4.21-5.00 Very High Very High Competence 3.41-4.20 High High Competence 2.61-3.40 Moderate Moderate Competence 1.81-2.61 Low Low Competence 1.00-1.81 Very Low Very Low Competence
    • Data Gathering Procedure 1. Asking permission to conduct the study. A letter of permission to conduct a research survey regarding the managerial profile and competency review of top managers in accounting and auditing firm of Davao City was prepared by researcher and was subject for approval by the research coordinator. 2. Administration and retrieval of the questionnaires. After it was approved, the researchers immediately proceeded to the administration of questionnaire to the chosen respondents. Administering of questionnaires was personally conducted by the researchers so that objective of the study will be thoroughly discussed to the respondents and for the respondents to be guided in answering the questionnaire. 3. Collation and processing of data. After the administration of the questionnaires, the data was collated and was subjected to statistical procedures. 4. Analysis and interpretation of data. When the data has been statistically treated, it was subjected to analysis and interpretation. This time the data being collected was processed to find out the answers of problem presented in Chapter 1. Statistical Treatment of the Data The following statistical tools were used in conducting the study: a. Frequency and Percentage: This was used to determine the profile of managers in selected accounting and auditing firm in Davao City. Mean: This was used to determine the competence level of selected managers. Analysis of Variance (ANOVA): Used to test the hypothesis whether significant
    • differences exist between managerial profile and competence level of managers in selected accounting and auditing firm in Davao City. Pearson R Correlation: was used to test the significant relationship exist between managerial profile and their level of competence. To determine the profile and the level of competence of managers, frequency and average mean were used.
    • Chapter 3 PRESENTATION AND ANALYSIS OF FINDINGS This chapter presents the findings of the study and the analysis of data including the interpretation based on the statistical results. The findings of the study are presented under the following heading. Managerial profile in selected accounting and auditing firms in Davao City, Level of Competence of Managers when analyzed as to: age, sex, length of service, education, experience, and training and the significant difference and Relationship among managerial profile and the level of competence of managers in selected accounting and auditing firms in Davao City. Managerial Profile of Managers in Selected Accounting and Auditing Firms in Davao City. Presented in Table 1 is the summary of managerial profile in selected accounting and auditing firms in Davao City in terms of age, sex, educational attainment, experience, length of service, and number of trainings attended. Age. Data reveals that out of 30 managers 50% of which or 15 managers comprises the biggest count which ranges from 51 to 60 years old, 8 managers or 26.67% comprises the first age bracket having 30 years old and below. Additionally, 4 managers or 13.3% of total count comprise the third biggest count which has the age bracket of 41 to 50 years old. Lastly, 10% of the total count or 3 managers ages 31 to 40 years old. It shows that older managers saturate the accounting and auditing firms.
    • Table 1 Managerial Profile of Managers in Selected Accounting and Auditing Firms in Davao City Age Frequency % below 30 8 26.67 31- 40 3 10.00 41- 50 4 13.33 51 - 60 15 50.00 Total 30 100.00 Sex Male 12 40.00 Female 18 60.00 Total 30 100.00 Educational Attainment College 30 100 Masteral 7 23.33 Doctoral 0 0.00 Experience 1 1 3.33 2 9 30.00 3 7 23.33 4 6 20.00 5 Above 7 23.33 Total 30 100.00 Length of Service Below 5 yrs 0 0.00 5-10 6 20.00 11-15 5 16.67 16-20 4 13.33 21 yrs. Above 15 50.00 Total 30 100.00 No. of Trainings Attended 1 27 90.00 2 28 93.33 3 22 73.33 4 26 86.67 5 24 80.00 6 20 66.67 7 16 53.33 8 19 63.33 9 22 73.33 10 15 50.00
    • Sex. Study shows female managers dominated the accounting and auditing firms in Davao City. As they comprise 60% of the total count or 18 managers. 40% of which or 12 managers are male. This observation was supported by Hayes (1996) when he reported that one highly visible demographic trend in the last decade has been the surge in the number of female CPAs. Women now account for about 20% of all CPAs which he believes that the percentage of women accountants will continue to rise. For the past several years about 50% of all accounting graduates have been women. Educational Attainment. Results show that out of 30 managers who had finished their Bachelors Degree, only 23.33% or 7 managers had continued their education to Masters Degree and out of 7 managers none of them had continued their education to Doctoral Degree. Experience. Experience refers to the number of company the managers had worked with. Data reveals that 7 managers or 23.33% had worked with more than 5 companies; the same number of managers had worked with 3 companies. 9 managers or 30% which comprise the most number of managers had worked with 2 companies and 1 manager or 3.33% had worked with one company. Length of Service. When asked as to number of years they had work, 15 managers or 50% of the total count answered 21 years and above. 6 managers or 20% comprise the second biggest count had worked from 5 to 10 years, 5 managers or 16.67% responded that they had work for about 11 to 15 years and 4 managers or 13.33% had work for 16 to 20 years. Number of Trainings Attended. The researchers had identified 10 important and relevant trainings to accountants-managers. Result shows that considerable number of
    • managers had attended the trainings enumerated. It was noted that on the first training 27 or 90% had attended, second training 28 or 93.33% had attended, third training 73.33% or 22 managers had attended, fourth training 26 or 86.67% had attended, fifth training 24 or 80% had attended, sixth training 20 or 66.67% had attended, seventh training 16 or 53.33% had attended, eighth training 19 or 63.33% had attended, ninth training 22 or 73.33% had attended. Finally, 50% or 15 managers had attended the tenth training. Level of Competence of Managers in Selected Accounting and Auditing Firms in Davao City. Table 2 show the level of competence of managers in three identified area of competence such as: Communication Skills, Technical Skills, and Professional Skills and the overall rating for overall competence. Result show that managers obtained a very high level of competence in three identified area, having communication skills as their most valuable asset which has a 4.51 mean rating. This means that managers possess outstanding level of competence in communication skill which follows that they are able to communicate accurately, concisely and clearly in both verbal and nonverbal. Result also shows that professional skills rank second having 4.49 rating. It implies that managers are able to practice their professional skills in efficient manner. It also denote that they are able to master and practice theories and skills in profession.
    • Table 2 Level of Competence of Managers in Selected Accounting and Auditing Firms in Davao City. Level of Competence Mean Verbal Description Communication Skill 4.51 Very High Technical Skill 4.45 Very High Professional Skill 4.49 Very High Overall 4.48 Very High
    • Furthermore, it is noticed that technical skills rank third having 4.45 rating. It implies that managers possess more than enough knowledge to the technical aspect of their profession. It means that managers understand fully even the smallest details of their profession. Significant Difference among Managerial Profile and the Level of Competence of Managers in Selected Accounting and Auditing Firms in Davao City Age. Table 3 shows that the significant difference among managerial profile and the level of competence of managers when analyzed as to age. It shows that there is a significant difference among age of managers and their level of competence in three identified skills such as communication skills, technical skills and professional skills. Results show that the computed significance in three identified skills were as follows. Communication skills: 0.00, technical skills: 0.00, professional skills: 0.02. This result is lower than 0.05 alpha level, thus it rejects the hypothesis. Furthermore, result shows that manager’s age and the overall competence resulted to 0.00 significance which further rejected the hypothesis. Additionally, this result implies that age can be a factor of competence in his profession. It can further imply that managerial competence significantly differ among old and young managers.
    • Table 3 Significant Difference among Managerial Profile and the Level of Competence Of Managers in Selected Accounting and Auditing Firms in Davao City when analyzed as to Age. Level of Competence F – Values Significance Decision on Ho Communication Skill 4.90 0.00 Do not accept Technical Skill 5.36 0.00 Do not accept Professional Skill 3.58 0.02 Do not accept OVERALL 6.14 0.00 Do not accept
    • Sex. Shown in the Table 4 is the significant difference among manager’s sex and their level of competence in three identified skills. Result show that there is no significant difference among managers’ sex and their level of competence as it gave a level of significance of 0.92 in communication skills, 0.18 in technical skills. 0.45 in professional skills. Additionally, when sex of managers is paired to overall competence it resulted to 0.42 level of significance. The computed result is considerably higher than 0.05 alpha level, thus it accept the hypothesis. This observation implies that regardless of managers’ gender, whether male or female they are still able to exhibit the required competence in their profession. In other words there is no gender effect on managerial competence in three identified area of skills.
    • Table 4 Significant Difference among Managerial Profile and the Level of Competence Of Managers in Selected Accounting and Auditing Firms in Davao City when analyzed as to Gender Level of Competence t - Values Significance Decision on Ho Communication Skill 0.01 0.92 Accept Technical Skill 1.85 0.18 Accept Professional Skill 0.57 0.45 Accept OVERALL 0.65 0.42 Accept
    • Length of Service. Presented in Table 5 is the significant difference of managers’ length of service and their level of competence in three identified skills. It revealed that there is a varied result among managerial profile and their level of competence when analyzed as to length of service. Statistics shows that when length of service is compared to manager’s communication skills and technical skills it gained a 0.16 and 0.06 level of significance respectively. This level is higher than 0.05 alpha level. Thus it accepts the hypothesis. This result implies that regardless of the number of years the manager had work he is still able to show competence in communication and technical skills. This means that length of service does not significantly affect managers’ communication and technical skills. On the other hand, when length of service is paired with professional skills it gained a 0.02 level of significance and is lower than 0.05 alpha level which reject the hypothesis. It implies that manager’s competence in professional skills matter depending on the number of years he had worked. Professional skill therefore, can be enhance by the number of years in practicing a profession. Furthermore, when length of service is compared to overall competence it resulted to 0.02 level of significance lower than 0.05 alpha level. It therefore rejects the hypothesis. This further implies that length of service does not significantly affect managerial competence.
    • Table 5 Significant Difference among Managerial Profile and the Level of Competence Of Managers in Selected Accounting and Auditing Firms in Davao City when analyzed as to Length of Service Level of Competence F - Values Significance Decision on Ho Communication Skill 1.75 0.16 Accept Technical Skill 2.51 0.06 Accept Professional Skill 3.56 0.02 Do not accept OVERALL 3.44 0.02 Do not accept
    • Educational Attainment. Table 6 presents the significant difference of managers educational attainment and their level of competence in 3 identified skills. It revealed that when educational attainment is paired with three area of competence its significance level is considerably lower than 0.05 alpha level of significance. It was noted that it gained 0.02 in communication skills, 0.02 in technical skills, 0.04 in professional skills, and 0.01 in overall level of competence. Since, the result denotes the rejection of hypothesis. Thus, there is significance difference of educational attainment and the level of competence of managers. This result explained that educational attainment significantly affects the competence of managers. It indicates that education is important to gain managerial competence. .
    • Table 6 Significant Difference among Managerial Profile and the Level of Competence Of Managers in Selected Accounting and Auditing Firms in Davao City when analyzed as to Educational Attainment Level of Competence t – Values Significance Decision on Ho Communication Skill 5.85 0.02 Do not accept Technical Skill 5.77 0.02 Do not accept Professional Skill 4.44 0.04 Do not accept OVERALL 7.35 0.01 Do not accept
    • Experience. Shown in the Table 7 are the significance difference of manager’s experience and their level of competence 3 skills enumerated therein. Statistics revealed that there is a varied result when experience is paired with communication skills, technical skills and professional skills. Notably, result shows that there is a significant difference between managers’ experience and their technical and professional skills as it gained a level of significance at 0.02 and 0.04 respectively Additionally, experience of managers and the overall level of competence gained 0.04 level of significance. These levels of significance are lower than 0.05 alpha level. These results reject the hypothesis. However, it was noted that experience has no significance difference to the managers’ communication skills. Data revealed a significance level of 0.02 outstandingly higher than 0.05 alpha level of significance. Therefore, hypothesis is accepted. Noted result above implies that managers’ technical and professional skills are significantly affected with their experiences with the previous company they worked with. It means that managers may hoard technical and professional skills through their experiences with other companies. In contradict, experience do not affect managerial communication skills. It means that whether a manager had work for many years, in many companies, it does not bear any difference in his competence on communication.
    • Table 7 Significant Difference among Managerial Profile and the Level of Competence Of Managers in Selected Accounting and Auditing Firms in Davao City when analyzed as to Experience Level of Competence F – Values Significance Decision on Ho Communication Skill 1.45 0.22 Accept Technical Skill 2.94 0.02 Do not accept Professional Skill 2.54 0.04 Do not accept OVERALL 2.61 0.04 Do not accept
    • Training. Presented in the Table 8 is the significance difference between managers training and their level of competence in three identified skills. The data revealed that there is no significance difference among managerial profile and their level of competence when analyzed as to training they had attended. It shows that when training is compared to communication skill, technical skill, professional skill and overall skills, it gains a significance level of 0.14, 0.08, 0.20 and 0.09 respectively, which is higher than 0.05 level of significance. Thus, the hypothesis is accepted. This result implies that managerial competences in three areas of skill are significantly affected by the number of training they have attended
    • Table 8 Significant Difference among Managerial Profile and the Level of Competence Of Managers in Selected Accounting and Auditing Firms in Davao City when analyzed as to Number of Training Attended Level of Competence F – Values Significance Decision on Ho Communication Skill 1.60 0.14 Accept Technical Skill 1.86 0.08 Accept Professional Skill 1.44 0.20 Accept OVERALL 1.80 0.09 Accept
    • Significant Relationship among Managerial Profile and their Level of Competence. Table 9 shows the summary of the significant relationship among managerial profile and their level of competence in selected accounting firms and auditing firms in Davao City. When analyzed as to number of trainings attended Pearson R correlation is used to test the relationship among managerial profile and their level of competence in 3 identified skills. Age. Statistics shows that managers’ age does not have significant relationship to their level of competence. It shows that the value of significance in 3 identified skills which are 0.11 in communication skills, 0.39 in technical skills, 0.07in professional skills, and 0.11 in overall competence are higher than 0.05 alpha level of significance. Thus, it accepts the hypothesis. This observation implies that age does not affect managerial competence. It means competent manager is not judge by their age, whether they are old or young in their profession. Thus, it does not follow that old manager project more competence than the young ones or vice versa. Sex. Likewise managers’ sex is compared to their level of competence in communication skills. technical skills, professional skills and overall skill, it shows that significant relationship does not exist among manager’s age and competence level. It was noted that their level of signifi9cance were as follows: communication skills: 0.46, technical skills: 0.09, professional skills: 0.23, overall skills: 0.21, these values are higher than 0.05 alpha level of significance. Thus, it accepts the hypothesis. It implies that gender is not an issue whether a manager is competent or not. In other words, gender does not exhibit a significant relationship on managerial competence. male or female, may exhibit a required competence in his or her profession.
    • Table 9 Summary of the Significant Relationship among Managerial Profile and their Level of Competence Independent Variable Dependent Variable Pearson r Significance Decision on Ho Age Communication Skill -0.11 0.11 Accept Technical Skill -0.02 0.39 Accept Professional Skill -0.13 0.07 Accept Overall -0.11 0.11 Accept Sex Communication Skill 0.01 0.46 Accept Technical Skill -0.12 0.09 Accept Professional Skill -0.07 0.23 Accept Overall -0.07 0.21 Accept Length of Service Communication Skill -0.02 0.41 Accept Technical Skill 0.09 0.14 Accept Professional Skill -0.04 0.33 Accept Overall 0.01 0.45 Accept Educational Attainment Communication Skill 0.21 0.01 Do not accept Technical Skill 0.20 0.01 Do not accept Professional Skill 0.18 0.02 Do not accept Overall 0.23 0.00 Do not accept Experience Communication Skill -0.02 0.39 Accept Technical Skill 0.22 0.01 Do not accept Professional Skill 0.02 0.42 Accept Overall 0.08 0.18 Accept Number of Trainings Attended Communication Skill 0.06 0.24 Accept Technical Skill 0.21 0.01 Do not accept Professional Skill 0.12 0.09 Accept Overall 0.15 0.04 Do not accept
    • Length of Service. On the other hand, length of service and the level of competence of managers shows result observed in age and sex. It was noted that significant relationship between length of service and the three areas of skills does not exist. It is observed that the significance value computed were higher than 0.05 alpha level of significance value computed were as follows: communication skills: 0.41, technical skills: 0.14, professional skills: 0.33 and 0.45 for overall skills. This result accepts the hypothesis and implies that the number of years that a manager had work do not affect on its competence in three identified area of skills. Educational Attainment. Contradict to the result in age, sex, and length of service, educational attainment projects different result. It was noted that there is a significant relationship among managers’ profile and their level of competence when analyzed as to education. Statistics shows, that the computed level of significance is considerably lower than 0.05 alpha of significance. It was observe that communication skills, technical skill, professional skills, and overall skills gained the level of significance of 0.01, 0.01, 0.02, and 0.00 respectively. This observation denotes the rejection of hypothesis. And consequently imply that managerial competence depends on their educational attainment. It means that the level of education is an important factor to be considered in attaining a required competence in their profession. Thus, education is an important consideration for managerial competence. Experience. When analyzed as to experience, varied result on the significant relationship among managerial profile and their level of competence were observed. It gained 0.18 significance when experience is compared to overall area of competence,
    • which is higher than 0.18 alpha level of competence. This means, the hypothesis is accepted. The same observation is noticed on the significant relationship among managerial profile and their level of competence when analyzed as to experience in communication and professional skills. It gained 0.39 and 0.42 level of significance respectively, which is higher than 0.05 alpha level of significance. This result implies that experience is not a factor for managerial competence in both communication and professional skills. However, when manager’s experiences is compared to technical skills, different result is obtained, a 0.01 level of significance is derived and is lower than 0.05 alpha level of significance. Hence, hypothesis is rejected. This implies that a technical skill is related to managers’ experience. Number of Trainings Attended. Similarly, varied result is obtained on the significant relationship between managerial profile and their level of competence in three identical skills when analyzed as to number of trainings attended. It was noticed that when a number of trainings is compared to communication skills and professional skills, the result is obtained. It gained a 0.24 level of significance on communication skills and 0.09 in professional skills. Both result are higher than 0.05 alpha level of significance, therefore it accept the hypothesis, which means no significant relationship between number of trainings, communication and professional skills. It also implies that communication and professional skills are not dependent on managers training. On the other hand, it was noted that there is a significant relationship between number of training and the technical skills; statistic shows that 0.01 level of significance is obtained and is lower than 0.05 alpha level of significance. Thus, it rejects the hypothesis.
    • Finally, when a number of training is compared to the three identified skills, 0.04 level of significance is obtained and is lower than 0.05 alpha level of significance for this reason hypothesis is rejected. This result implies that technical skill of managers is significantly related to the number of training attended.
    • Chapter 4 SUMMARY, CONCLUSION AND RECOMMENDATION This chapter presents the summary of the findings, conclusion and recommendation based on the result of the study. Summary of Findings Based on the data gathered, the following summary is presented: 1. Managerial Profile of Managers in Selected Accounting and Auditing Firm in Davao City. In terms of age, result showed that majority of respondent ranges from 51- 60 with 15 counts or 50%, followed by managers having 30 years old and below with 8 counts or 26.67%, managers ages from 41-50 are third in ranks with 4 counts or 13.3%. and followed with managers ages 31-40 with 3 counts or 10%. When group as to sex, study shows that accounting and auditing firms in Davao City are almost dominated by female mangers with 18 counts or 60% and male managers with 12 counts or 40%. Moreover, it was found out that out of 30 managers who had finished their bachelors degree, only 7 of 23.33% had taken their masters degree, surprisingly 0 counts had taken doctoral degree. Additionally, 7 managers or 23.33% had worked with 5 and more companies; the same count is noted worked with 3 companies. 9 managers or 30% had worked with 2
    • companies and 1 count or 3.33% had only work with 1 company. When group as to length of service, 15 counts or 50% had worked 21 years and above, 6 counts or 20% for 5 to 10 years, 5 counts or 16.67% had work for 11 to 15 years and 4 counts or 13.33% had worked for 16 to 20 years. Lastly, data revealed that majority of the managers had attended the trainings enumerated, to summarize the following data is obtained: 1st - 27 or 90%, 2nd - 28 or 93.33%, 3rd- 22 or 73%, 4th - 26 or 86 .67%, 5th – 24 or 80%, 6th – 20 or 66.67% or 53.33, 8th - 19 or 43.33%, 9th 22 or 73.33% and 10th – 15 or 50%. 2. Level of Competence of Managers in Selected Accounting and Auditing Firms in Davao City. The manager’s level of competence in 3 identified skill obtained considerably very higher rating. Accordingly, communication skill obtained a rating of 4.51, technical skill with a mean of 4.48 and professional skill with a rating of 4.49, and an overall mean of 4.48. This observation means that managers posses a very high level of competence. 3. Significant Difference among managerial profile and the level competence of managers in selected Accounting and Auditing firm in Davao City. When tested as to the extent of significant difference among managerial profile and the level of competence of managers in selected Accounting and Auditing firm in Davao City, it was found out that significant difference was established when analyzed as to age. F-values of 6.14 with 0.00 level of significance is obtained, which lower than 0.05 alpha level of significance, thus hypothesis is not accepted.. When analyzed as to gender, 0.65 t- values is obtained with 0.42 level of significance lower than 0.05 alpha levels, hence hypothesis is accepted.
    • Moreover, when analyzed as to length of service, significant difference is established. F value 3.44 with 3.44 with 0.02 level of significance is obtained, this value is lower than 0.05 alpha level of significance, and thus hypothesis is rejected. When analyzed as to educational attainment, t-values of 7.35 with 0.01 level of significance is obtained, this value is lower than 0.05 alpha level of significance. This observation rejects the hypothesis. When analyzed as to experience, f-values of 2.61, 0.04 level of significance is obtained, this value is lower than 0.05 alpha level of significance, hence hypothesis is neglected. Lastly, when data is analyzed as to number of training attended, it reveals that hypothesis is accepted, thus no significant difference is observed as it gained a 1.80 f – values with 0.09 level of significance higher than 0.05 alpha level of significance. 4. Significant relationship among managerial profile and the level of competence of managers in selected Accounting & Auditing Firm in Davao City. To test the relationship between two variables, Pearson r of correlation is employed. It was observed that when analyzed as to age, Pearson r value of -0.11 with 0.11 level of significance is obtained. This means that hypothesis is accepted. When group as to sex, Pearson r value of -0.07 with 0.21 level of significance is obtain this value is greater than 0.05 alpha level of significance. It denotes that significant relationship exist, thus hypothesis is accepted. As to length of service, statistics show that the obtained Pearson r has a value of 0.01 with 0.45 level of significant and is higher to 0.05 alpha level of significance. Significant difference is therefore established and hypothesis is accepted.
    • Moreover, no significant difference is establish when analyzed as educational attainment and number of trainings attended, as it reveal a Pearson r value of 0.23 with 0.00 level of significance and 0.15 with 0.04 level of significance, this lead to the rejection of hypothesis. Finally, when analyzed as to experience, it obtains a 0.08 Pearson r and 0.18 level of significance higher than 0.05 alpha level which accept the hypothesis. Conclusions On the basis of foregoing findings, the following conclusions are drawn: 1. Older managers saturated accounting and auditing firms, female managers almost dominated accounting and auditing firms, only few continued their education in master degree, 50 percent had gained competence by working for a long period of time, and managers put so much emphasis on trainings. 2. Managers obtained a very high rating of 4.48 which means they are able to project a very high level of competence. 3. Managerial competence of managers in selected accounting and auditing firm in Davao City significantly differs to manager’s age, length of service, educational attainment, and experience. On the other hand, sex and number of training shows no significant difference on managerial competence. 4. Managerial competence of managers in selected accounting and auditing firm in Davao City is significantly related and has a direct relationship to manager’s educational attainment and number of trainings attended. However, indirect relationship is observed between managerial competence and their age, sex, length of service, and experience;
    • which means, it does affect the competence of managers. Recommendations On the basis of foregoing findings and conclusion, the following recommendations are offered: 1. Older managers dominated the managerial position in accounting and auditing firms, thus young ones are encouraged to be trained to fill managerial position on the future. 2. Very high level of competence is observed in the three areas of skills identified. Further study on the other field of competencies shall be done to further analyze the general competencies of managers and to help them exercise their profession competently. 3. Clientele and the community in general shall be educated that age, sex, length of service, experience does not have any direct relationship on the competence of managers. 4. Managers should update themselves regularly by engaging to further education since their competence is best enhanced through this. Thus, educational institution should provide relevant education and program to update managers for the latest trend in business. 5. Necessary trainings and seminars should be designed enable the managers to be equipped with relevant knowledge and skills that would complement their profession, and further study whether managers age in relation to the number of trainings they had attended affect their competence.
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    • Onken, O.(2008). Surviving the Younger Boss. Accessed October , 2008. From loris.net/younger boss.html. Pickett, (1998). Public Personnel Management. Les Publication, USA Rothman, J (2000). Managerial Competence: The Key to Surviving Change, Addison- Wesley Publishing Co., New York Schuhmann, R. (1999, May/June).Gender and Local Government: A Comparison of Women and Men City Managers. American Society for Public Administration. Washington D.C., USA Takeuchi, D. et al. (2005). An Integrative View Work Experience. Academy of Management Journal. Pace University, USA Walley, E. (1996, February). Effectiveness of Communication Skills. The CPA Journal. The New York State Society of CPAs, 530 Fifth Avenue, New York
    • APPENDIX A Letter of Permission January 21, 2009 ______________________ ______________________ ______________________ Dear Sir/Madam: Greetings of Peace! We are a student of University of Mindanao, under the College of Business Administration, currently enrolled in the subject BUS 6 – Business Research. We are conducting a study on “The Managerial Profile and Competence Review of Managers on Selected Accounting and Auditing Firm in Davao City”, as a requirement of the said subject. In connection with this, we would like to ask for your permission to distribute questionnaires in your good office. Your approval would be of great help in realizing this endeavor. We are hoping for your positive response and support. Thank you and more power. Respectfully yours, CHARLES JOHN C. ECHAVIA Group Representative Noted By: Approved By: Prof. ROWENA CUEVAS-CINCO _______________________ Research Coordinator The Manager Dr. VICENTE SALVADOR E. MONTAÑO Dean, College of Business Administration APPENDIX B
    • Sample Questionnaire _____________ _______________ _______________ Greetings of Peace! We are the students of University of Mindanao, taking up Bachelor of Science in Business Administration Major in Management Accounting and currently enrolled in the subject Business 6- Business Research. We are now conducting a research study the “Managerial Profile and Competence Review of Managers in Selected Accounting and Auditing Firms in Davao City. With this, we are asking you to be our respondent for we believe that you would be of great help in realizing the said study. Please answer the following questions honestly and with the best of your knowledge. We assure that this information will be held with utmost confidentiality. We are hoping for your positive response. Thank you and more power. Respectfully yours, _________________ Researchers ------------------------------------------------------------------------------------------------------------ Part 1 Name (optional):_________________________ Title :_________________________ Age 30 below [ ] 31-40 [ ] 41-50 [ ] 51-60 [ ] Sex: Male [ ] Female [ ] Educational Attainment:
    • Bachelors Degree (please specify) ___________________ Masteral Degree (please specify) ___________________ Doctoral Degree (please specify) ___________________ Experience: Number of companies you work with (please check) [ ] 1 [ ] 2 [ ] 3 [ ] 4 [ ] 5 and above Length of Service: [ ] 1 yr. below [ ] 1-3 yrs. [ ] 4-6 yrs. [ ] 7-9 yrs. [ ] 10 yrs. above Training: (please check) [ ] Principles and Laws in Taxation [ ] Philippines Accounting Standard [ ] Philippines Standard on Auditing [ ] Philippines Financial Reporting Standard [ ] CPE (Training and Seminar) [ ] Ethics and Good Governance [ ] Bookkeeping [ ] Generally Accepted Accounting Principles [ ] Generally Accepted Auditing Standards [ ] Training on Accounting Software’s [ ] Others (pls. specify) ____________________ Number of employees under your supervision: Please Specify: _______________________ _____________________ SIGNATURE Part 2
    • Instruction: Below are items related to 3 necessary skills listed by the researchers. Please rate your manager with the best of your knowledge using the scale enumerated. 5 – Always -The skill is evident always at all times 4 – Often -The skill is evident regularly 3 – Sometimes -The skill is evident sometimes and at short interval of time 2 – Seldom -The skill rarely happens and at along interval of time 1 – Never -The skill is not evident at all Communication Skills 5 4 3 2 1 2 Understand fully the importance of verbal and non verbal communication 3 Able to keep audience attention when I talk to any size group 4 Know how to adjust my conversation to the vocabulary and interest level of others 5 Use appropriate voice control, diction and delivery techniques 6 Able to pick the right words to convey message 7 Able to employ all communication system available 8 able to communicate in writing accurately, concisely and clearly 9 Able to organize and understand incoming communication verbal and non verbal Technical Skills 5 4 3 2 1 4. Able to understand technical information of the profession 5. Able to use and understand technology utilized in performing the profession 6. Updated and know how to use accounting software 7. Able to arrive with competent and dependable decision making 8. Seeks help from experts if troubled in new technology used 9. Updated with the new standards and trends in accounting, auditing and taxation
    • 10. Able to apply new approaches and strategies in profession 11. Knows how to organize facts and materials for presentation Professional skills 5 4 3 2 1 Able to master and practice theories and skills in profession Develops new approaches and strategies in profession Follows standards in performing duties Applies analytical and logical thinking Ensures good performance in job Can handle diversified character of employee Able to adopt changes in working conditions 8. Portrays good relationship with the employees _____________________ SIGNATURE
    • APPENDIX C Validation of Instrument Validators Mean Description Prof. Marcelina C. Falcon 4.00 Very Good Prof. Rowena Cuevas-Cinco 4.16 Very Good Dr. Vicente Salvador E. Montaño 3.71 Good Over-all Mean 3.96 Good
    • APPENDIX D UNIVERSITY OF MINDANAO College of Business Administration Bolton St., Davao City C E R T I F I C A T I O N To Whom It May Concern: This is to certify that the research study entitled “Managerial Profile and Competence Review of Managers in Selected Accounting and Auditing Firms in Davao City” has been reviewed and edited by the undersigned. This certification is issued upon the request of the researchers. Given this April 2009 at University of Mindanao, Davao City. DR. NORA L. SISNEROS GRAMMARIAN
    • APPENDIX E UNIVERSITY OF MINDANAO College of Business Administration Bolton St., Davao City C E R T I F I C A T I O N To Whom It May Concern: This is to certify that the research study entitled “Managerial Profile and Competence Review of Managers in Selected Accounting and Auditing Firms in Davao City” has been reviewed and edited by the undersigned. This certification is issued upon the request of the researchers. Given this April 2009 at University of Mindanao, Davao City. . MR. GUILLERMO B. BONGHANOY STATISTICIAN
    • Alaine D. Abellana Barangay Miranda, Babak District, IGACOS Contact No. 09217846891 Email: alaineabellana@gmail.com CAREER OBJECTIVE: To land in a job where I can apply my knowledge in management accounting, and to attain my fullest potential. SPECIAL SKILLS: I posses computer typing skills, I have a knowledge in operating basic program of Microsoft such as MS word, MS power point, and MS excel. I have basic knowledge in accounting software such as Peachtree and Quickbooks. SEMINARS AND TRAININGS: • Round Table Conference for Mindanao Young Leaders Parliament EDUCATIONAL BACKGROUND: College: I am currently enrolled in University of Mindanao, taking up Bachelor of Science in Business Administration Major in Management Accounting. Secondary: I finished my secondary education at Holy Cross of Babak, Inc., Babak District, IGACOS on March, 2003. Elementary: I completed my elementary at San Antonio Elementary School, Babak District, IGACOS, on March 1999. PERSONAL REFERENCE: Age : 22 yrs. Old Sex : Female
    • Birthdate : February 2, 1987 Birthplace : Magallanes Street, Davao City Civil Status : Single 12. Citizenship : Filipino 13. Religion : Roman Catholic 14. Height : 5’4”ft. 15. Weight : 58 kgs. 16. Language and Dialects : English, Tagalog, and Cebuano CHARACTER REFERENCE: Mr. Cristino L. Doños Salesman DAPCOR, Bago Aplaya, Talomo District, Davao City Contact Number: 296-1015 Mr. Quirino Bastasa Barangay Captain Miranda, Babak District, IGACOS Mr. Gene Vincent Perez College of Law Ateneo de Davao University Roxas, Davao City Signature
    • Charles John C. Echavia Bl.11 L 34, Rosalina 3, Baliok, Talomo District Davao City Contact No. 09216851739/09236483467 Email:cjechavia@gmail.com CAREER OBJECTIVE: To land in a job where I can maximize my skill and knowledge in management accounting, and to attain my fullest potential as an individual. WORK EXPERINCE: I was an OJT of Villamor and Associate Accounting and Auditing Firm, Bonifacio Street, Davao City. from April to May 2007. SPECIAL SKILLS: I posses computer typing skills, I have a knowledge in operating basic program of Microsoft such as MS word, MS power point, and MS excel. I have basic knowledge in accounting software such as Peachtree and Quickbooks. I have a background in writing on a school paper publication. SEMINARS AND TRAININGS: • Round Table Conference for Mindanao Young Leaders Parliament • Business Etiquette • Public Speaking • Project Planning Seminar • Good Governance and Corporate Social Responsibility • Feasibility Study: Determining Demand and Supply • PESLA Seminar • Time and Stress Management • How to build self confidence • Fundamental of bookkeeping and taxation EDUCATIONAL BACKGROUND: College:
    • I am currently enrolled in University of Mindanao, taking up Bachelor of Science in Business Administration Major in Management Accounting. Secondary: I finished my secondary education at Tandag Science High on March, 20004. Elementary: I completed my elementary at Libas Gua Elementary School on March 1999. PERSONAL REFERENCE: Age : 22 yrs. Old Sex : Male Birthdate : February 21, 1987 Birthplace : Madrid, Surigao del Sur Civil Status : Single 17. Citizenship : Filipino 18. Religion : Roman Catholic 19. Height : 5’2”ft. 20. Weight : 60 kgs. 21. Language and Dialects : English, Tagalog, and Cebuano CHARACTERS REFERENCES: Ma. Shiendy Rose Bugas-Cuajotor Guidance Counselor University of Mindanao Bolton Street, Davao City Marilou Flores Guidance Counselor University of Mindanao Bolton Street, Davao City Ms. Analyn Tan Entrepreneur ASSA Merchandise Aurora-Quezon, Davao City
    • Signature Ivy Sheryl R. Miguel 65-1 Bonifacio St., Davao City Contact No. 09103249686 Email:ivysherylmiguel@gmail.com CAREER OBJECTIVE: To land in a job where I can maximize my skill and knowledge in management accounting, and to attain my fullest potential as an individual. WORK EXPERIENCE I was an OJT of Villamor and Associate Accounting and Auditing Firm, Bonifacio Street, Davao City. from April to May 2007. SPECIAL SKILLS: I posses computer typing skills, I have a knowledge in operating basic program of Microsoft such as MS word, MS power point, and MS excel. I have basic knowledge in accounting software such as Peachtree and Quickbooks. SEMINARS AND TRAININGS: • Round Table Conference for Mindanao Young Leaders Parliament • Business Etiquette • Time and Stress Management • Public Speaking • How to Build Self Confidence • Feasibility Study: Determining Demand and Supply EDUCATIONAL BACKGROUND: College:
    • I am currently enrolled in University of Mindanao, taking up Bachelor of Science in Business Administration Major in Management Accounting. Secondary: I finished my secondary education at Trento National High School on March, 20005. Elementary: I completed my elementary at Sampaguita Elementary School on March 2001. PERSONAL REFERENCE: Age : 20 yrs. Old Sex : Female Birth date : February 11, 1989 Birthplace : Sampaguita, Veruela, Agusan del sur Civil Status : Single 22. Citizenship : Filipino 23. Religion : Roman Catholic 24. Height : 5’0”ft. 25. Weight : 52 kgs. 26. Language and Dialects : English, Tagalog, and Cebuano CHARACTERS REFERENCES: Ms. Jean B. Soliva Junior Accountant King Cooperative, Palma Gil, Davao City Contact 09216981722 Mr. Florencio P. Tabada Brgy. Captain Sampaguita, Veruela, Agusan del Sur Mr. Larry Marcos School Principal Sampaguita Elementary School Sampaguita, Veruela, Agusan del Sur
    • Signature Alainder S. Tan Blk 35 Lot 31 Pears St., Ciudad de Esperanza. Cabantian, Davao City Contact No. 09107823391 Email:alainder_brian@yahoo.com CAREER OBJECTIVE: To be able to succeed in my career and to fulfill my ambition in life, “to become a successful businessman”. WORK EXPERIENCE I had worked as an OJT students in L. B. Cainglet & Co. CPA's and Gotera Marketing and Allied Services SPECIAL SKILLS: I posses computer typing skills and I know how to deal with people in any situations. SEMINARS AND TRAININGS: • Round Table Conference for Mindanao Young Leaders Parliament • Drug Awareness Seminar • Abortion Seminars • PESLA Seminars EDUCATIONAL BACKGROUND: College: I am currently enrolled in University of Mindanao, taking up Bachelor of Science in Business Administration Major in Management Accounting.
    • Secondary: I finished my secondary education at Our Lady Of Fatima Academy on March 2005. Elementary: I completed my elementary at V. L. Angliongto Sr. Elem. School March 2001. PERSONAL REFERENCE: Age : 20 yrs. Old Sex : Male Birth date : August 11, 1988 Birthplace : Davao City Civil Status : Single 27. Citizenship : Filipino 28. Religion : Roman Catholic 29. Height : 5’7”ft. 30. Weight : 51 kgs. 31. Language and Dialects : English, Tagalog, and Cebuano CHARACTERS REFERENCES: Mrs. Maria Shiendy Rose B Cuajotor Guidance Counselor University Of Mindanao Cell # 09283895495 Ms Teresa Pesayco Professor University Of Mindanao PO3 Ronald Gambalan Ciudad de Esperanza. Cabantian, Davao City