Management Accounting and its Environment II

Vocabulary flashcards related to key concepts in Management Accounting and its Environment II.

Manager

An individual tasked with leading, planning, staffing, and organizing an organization or part of an organization.

types of managers - levels

• Senior Managers - manage the business (directors), policy, strategy, external relations (shareholders, media, politicians)​

• Middle Managers - manage departments, operations, goals, report to superiors ​

• Line Managers - manage/supervise direct operations and personnel, ensuring day-to-day operations align with organizational objectives.

types of managers - tasks

• General managers - organisational unit, divisions - oversee multiple functions within organizational units or divisions.

• Functional managers - responsible for single common function e.g. Accounting, Personnel, Marketing ​

• Staff Managers - support functions e.g. Finance, IT ​

• Project Managers - in charge of specialist teams - ensure project goals are met within scope, time, and budget.

Functions of management

planning:

1. Identifying the objectives ​

2. Search for alternative courses of actions ​

3. Evaluating the alternatives

decision making:

1. Select the best alternative ​

2. Implement the decision

controlling

1. Compare actual and planned performance ​

2. Respond to divergences from plan

leadership and management

LEADERSHIP:

• Focuses more on people than task​

• Requires ability to motivate and inspire​

• Has capacity for independent vision

• Leadership is the lifting of a man’s vision to higher sights, the raising of a man’s performance to a higher standard, the building of a man’s personality beyond its normal limitations. (Drucker 1955)

MANAGEMENT:

• Requires a wider range of skills​

• Responsible for task and people​

• Needs to manage work within organisational objectives

leadership styles

autocratic leadership: a style where a single leader makes all decisions with minimal input from team members.

Centralisation of power, task orientation, high control, and less autonomy​.

democratic leadership: a style where leaders involve their team in decision-making, fostering collaboration and participation.

Decentralised power, relation orientation, low control, and high autonomy

laissez-faire leadership: leaders provide little guidance and allow team members to make decisions independently, promoting autonomy and creativity.

what can go wrong in team

• Groupthink (identified by Janis 1981)​

• Desire for harmony or conformity in a group results in​
  an incorrect or deviant decision-making outcome.

Group and Team

GROUP:

• interact with one another​

• are psychologically aware of one another​

• and perceive themselves to be a group

• Coordinated by someone else (i.e., Manager)

TEAM:

• work towards common objectives​

• its members may have distinct roles​

• it has some autonomy​​

• Coordinated amongst themselves

Theory X and Y

Theory X assumes workers are inherently lazy, dislike work, and need constant supervision and external rewards.

Theory Y, conversely, assumes workers are self-motivated, enjoy work, and seek responsibility. 

how to manage team

• Select compatible complementary members​

• Clarify team objectives​

• Help team to understand their characteristics​

• Strengths, weaknesses, skills, specialisms​

• Train in group processes​

• How to reach decisions​

• Ground rules for discussion, working, etc

can cohesive team be problematic

A cohesive team is one where members are united, work harmoniously, and are strongly committed to achieving shared goals.

• Cohesive teams may be:​

• Inflexible in their attitudes;​

• Difficult to influence;​

• Hostile to people outside the group;​

• Create inter-group conflict (competition).

business environments

P olitics

E conomic factors

S ocial factors
T echnological factors
L egal factors

E nvironmental factors

Corporate Social Responsibility (CSR)

The continuing commitment by business to behave ethically and contribute to economic development while improving the quality of life in the workforce, their families, and the local community.

Environmental Accounting

A management accounting practice focused on the costs associated with environmental conservation and sustainability.

a company may carry it out for:

• competitive advantage with customer

• sustainable future and reputation

• handle climate change

• stakeholder pressure (to act environmentally responsible)

• legal pressure (fine for not complying)

Sustainable Development Goals (SDGs)

A set of 17 global goals established by the United Nations in 2015, aiming to be achieved by 2030 to promote sustainable economic growth and development.​

University of Greenwich regularly reports on sustainability ​

• Sustainability is at the core of the university’s operation ​

• Many other universities around the world do the same

Diversity, Equity, Inclusion (DEI)

Business practices that consider all possible interests in their activities, ensuring equal rights and opportunities and making all individuals feel welcomed and valued.

• Diversity is including and involving people from diverse backgrounds.

• Equity is enabling people to have equal rights and opportunities.

• Inclusion is making everyone feeling welcomed and valued.

technological advancements

AI and management accounting:

• Made data sharper and more vast ever​

• AI brings internal efficiency in operations​

• It automates many traditional accounting tasks with minimum errors​:

• Inputting and matching data​

• Reconciliation ​

• Creating invoice and expense reports​

• Recording and sorting transactions ​