assignment 1 management accounting by Dr. ZackZaki
A manager’s role is very crucial in an organization. The success of organization depends upon manager’s ability in
utilizing the resources for achieving the pre determined goals. Henry Mintzberg suggested three areas where a
manger has to work.
Interpersonal roles of a manger are concerned with his interacting with people both inside the organization and
outsiders. There are three types of interpersonal roles.
Figure Head: In figure head role manager performs activities which are ceremonial and symbolic nature. These
include greeting the visitors attending the social functions involving employees, handing out merit certificates and
other awards to outstanding employees.
Leader: Manager’s leader role involves leading his subordinates and motivating them for willing contributions.
Manager is responsible for activities of his subordinates. He has to set example of hard work and dedication so that
subordinate follow his directions with respect.
Liaison Role: In liaison role manager serves as a connecting link between his and outsiders or between his unit and
other organizational units.
Informational role involves receiving collecting of information and distributing them as required. It is of three types
Monitor: In monitoring role manager collects the information which can affect the organizational activities by reading
magazines and periodicals, reports from the departments, talking with others to learn changes in the public’s taste.
Disseminator: In disseminator role manger distribute the information to his subordinates and superiors by sending
circulars, holding meetings and making phone calls.
Spokesperson: In spokesperson role the manager represents his organization or unit with interacting with outsiders.
These may customer, financer, govt. suppliers or other agencies in society. It can be done by attending press
conferences, meetings and by issuing notices.
It is very important role. Manager has to take decisions daily. In decisional role he performs four roles.
Entrepreneur: As an entrepreneur the manger assumes certain risks which can affect the organization. He has to
take decisions like expansion or diversification, initiation of new projects, development of older procedures etc.
As a Conflict Handler: As a conflict handler he has to take care of certain disturbance in organization such as
resolving employee disputes and strikes etc.
Resource Allocator: As a resource allocator managers fulfill the demand of various units in terms of human
physical and financial. He tries to utilize these resources in such way that no department suffers for their inadequacy.
Negotiator: As negotiator manager has to take decisions regarding prices with suppliers and customers. He also
deals with trade unions and negotiates with them regarding working conditions and wage fixation.
What Is Decentralizing?
By Mark Holtzman from Managerial Accounting For Dummies
Decentralization is the process of moving decision-making powers down the chain of command. In a highly
decentralized organization, frontline managers and staff often make important decisions. On the other hand, in a
highly centralized organization, senior managers at the top of the organization chart make the decisions.
Decentralization offers several benefits:
Large corporations may need to oversee many diverse subsidiaries, making it impossible for a top-level
manager to call all the shots.
Frontline employees usually have closer access to the information needed to make decisions, enabling them
to respond more quickly than senior managers can.
Decentralization empowers employers to make more independent decisions with less red tape from senior
managers, often improving employee morale.
It facilitates speedy customer service because it doesn’t require employees to wait for supervisor approvals.
As an example of decentralization, many discount stores train and empower service desk employees to decide
which customer returns to accept and which to reject. After all, those folks should best know which returns appear
reasonable, and anyway, the dollar value of each return is low.
A more centralized organization would impose stricter requirements on which returns a service desk employee can
or can’t accept, leaving very little to the employee’s own judgment.
That said, decentralization has some problems, so it isn’t for every organization. Decentralized organizations often
must devote duplicate assets and duplicate efforts to get things done. Furthermore, decentralization can make it
difficult for senior managers to fully monitor and control a large number of frontline employees making decisions. As
such, poor or self-interested decisions may lead to errors or even fraud.
For example, when issuing home mortgages, most banks require that a central department approve every
mortgage applicant. Although this process delays the application process (and damages the perception of customer
service), it also reduces the proportion of bad loans.
A wide variety of positions exist within a line-and-staff organization. Some positions are primary
to the company's mission, whereas others are secondary—in the form of support and indirect
contribution. Although positions within a line-and-staff organization can be differentiated in
several ways, the simplest approach classifies them as being either line or staff.
A line position is directly involved in the day-to-day operations of the organization, such as
producing or selling a product or service. Line positions are occupied by line personnel and line
managers. Line personnel carry out the primary activities of a business and are considered
essential to the basic functioning of the organization.
Line managers make the majority of the decisions and direct line personnel to achieve company
goals. An example of a line manager is a marketing executive.
Although a marketing executive does not actually produce the product or service, he or she
directly contributes to the firm's overall objectives through market forecasting and generating
product or service demand. Therefore, line positions, whether they are personnel or managers,
engage in activities that are functionally and directly related to the principal workflow of an
Staff positions serve the organization by indirectly supporting line functions. Staff positions
consist of staff personnel and staff managers. Staff personnel use their technical expertise to
assist line personnel and aid top management in various business activities. Staff managers
provide support, advice, and knowledge to other individuals in the chain of command.
Although staff managers are not part of the chain of command related to direct production of
products or services, they do have authority over personnel. An example of a staff manager is a
legal adviser. He or she does not actively engage in profit-making activities, but does provide
legal support to those who do. Therefore, staff positions, whether personnel or managers, engage
in activities that are supportive to line personnel.
The chief financial officer (CFO) or chief financial and operating officer (CFOO) is a
corporate officer primarily responsible for managing the financial risks of the corporation. This
officer is also responsible for financial planning and record-keeping, as well as financial
reporting to higher management. In some sectors the CFO is also responsible for analysis of data.
The title is equivalent to finance director, a common title in the United Kingdom. The CFO
typically reports to the chief executive officer and to the board of directors, and may additionally
sit on the board. The CFO supervises the finance unit and is the chief financial spokesperson for
the organization. The CFO reports directly to the President/Chief Executive Officer (CEO) and
directly assists the Chief Operating Officer (COO) on all strategic and tactical matters as they
relate to budget management, cost benefit analysis, forecasting needs and the securing of new