Managerial Implications of a Management Accountant

This research project aims to identify the importance of job descriptions for an individual career through analyzing management account job role and its impact on managerial implications in different sectors. The research project has been aimed at identifying the importance of job descriptions for an individual career through analyzing management account job role.

Research Project on Managerial implications of a
Management accountant
Name
Course
Tutor
University
Date
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Table of Contents
Chapter 1: Introduction..............................................................................................................3
Chapter 2: Summery of literature review..................................................................................5
Chapter 3: Methodology............................................................................................................8
Chapter 4: Data collection........................................................................................................10
Chapter 5: Results and discussion............................................................................................13
Chapter 6: Conclusion and recommendations..........................................................................14
Reference list............................................................................................................................15
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Chapter 1: Introduction
1.1 Introduction
This research is an empirical investigation of the importance of understanding job
descriptions in modern day professional life. While it is widely noticed that understanding of
professionalism is an important aspect of education and training of individuals, understanding
of job descriptions and job roles are equally essential to measure the skills already present
and how to apply them to get a better position in the job market. This research project has
been aimed at identifying the importance of job descriptions for an individual career through
analyzing management account job role. All the essential components for developing this
research project and adding value to managerial implications in different sectors have been
evaluated in this study.
1.2 Background of the research
Since many companies these days are concerned with updating their job descriptions and job
specifications for targeted roles, it is the duty and responsibility of an individual or aspirant of
a particular job role to understand the value of job description (Alvesson, 2018). This
function could bring knowledge to the candidate about the various parameters and needs they
are expected to fulfill in the given job role. Though, it has been found out that many of the
candidates are ignoring the importnace of updating job descriptions and forgetting to exhibit
value to judge their personal competencies against the job roles. What is apparent here is that
understanding job descriptions can provide a number of strategic benefits to the candidates,
which adopt significant mechanisms to make sure that job roles are understood by the one
who is targeting to apply for the specific role and can apply skills where needed (Chen et al.,
2016).
1.3 Purpose of the research
This entire research project has been build up to finding out the results of effective
understanding of the job descriptions and value to the managerial implication of a
management accountant.
1.4 Rationale of the research
Importance of job descriptions is increasing day by day. It is necessary to find out the core
skills relatable for a specific job role when targeting to enter into a professional life by
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applying the job role of a management accountant. It has been found out that many
organizations are aspiring for the best candidates for them who could add value to the
organizational objectives and productivity (Chen and Zhang, 2017). In this respect, it has
been really valuable for individuals to enlarge their knowledge regarding job specifications,
job descriptions and then identifying own skills. Recently, from several field studies, it has
been found out that effective leadership skills, cognitive abilities, and analytical thinking are
the most essential skills that one needs to apply for the role of a management accountant.
Skill development and acquiring new skills would be impossible for an individual if the
knowledge regarding job descriptions are incomplete.
1.5 Research aim
Aim of this research is listed below;
Judging and identifying the core skills required for a management account to achieve the
organizational goals and objectives.
1.6 Research objectives
Objectives of this research project are listed below.
Objective A
To identify the core skills organizations aspired in a management accountant.
Objective B
To avail and determine the training and development programs that are structured to meet
the needs of managerial accountants in preparation to meeting market.
1.7 Research questions
Research Question 1:
What is involved in the key functions of management accounting?
Research Question 2:
How has the field of management accounting evolved when comparing previous and
contemporary managerial accountant practices?
Research Question 3:
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Which aspects of managerial accounting are accountable to increase competitiveness?
Research Question 4:
Despite common skills and capabilities, what other requirements that are essential to increase
one’s success in the job market?
Chapter 2: Summery of literature review
Entire literature review has been developed based on the research questions and objectives
identified in this study. Essential factors that have been collected from the literature review
are described below;
2.1 Functions of management accountant
According to Deelman et al. (2015), the primitive functions for a management accountant are
to ensure provision of financial information, preparations and effective decision-making
qualities. The role of management accountant is important in these managerial functions to
reach the stipulated objectives of the company. As opined by Ylä-Kujala et al. (2018),
management account mostly required to perform the dual role of communicating additional
managerial functions as underlined previously along with the essential accounting aspect.
Therefore, the account graduates should possess qualities of managing an organization with
their knowledge of the technical information in accounting.
2.2 Skills needed for a management accountant
Espinosa (2017) has identified that keeping paced with the evolving needs of many
organizations the skills of a management account also have been developed from the mere
working with spreadsheets and manual data entry to communicating with other variables of
management responsibility in an organization. Espinosa (2017) has pointed out that a
management account in the 21st century should know to link accounting related understanding
with parenting in managerial decision-making, analytical decision-making skills, offering
quick expertise to the business development and financial reporting.
2.3 Identification of the skill gap between a graduate and a management accountant
The management accountant roles have been more critical in this century due to ensuring
competitive advantage and compete with similar professional roles of financial analyst and
managerial consultants (Brandon-Jones et al., 2016). As identified in the previous section of
the literature review, there is still some gaps exist in the theoretical and professional skills of
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a management account. According to Brandon-Jones et al. (2016), lack of practical
knowledge in a graduated accountant is affective for the individual as the knowledge between
applied skills of an accounting graduate and the professional skills of a managerial account
remain incompletes. Universities and colleges, as described by Moore and Morton (2017),
should include teaching classes and practices that ensure the knowledge development of
graduates in communicating analytical, creative as well as financial decision-making power.
2.4 Current professional needs of a management accountant
As per the understanding of Howieson et al. (2014), the current professional needs of a
management accountant in many organizations are communication skills, intellectual skills
and others. The foremost importance is given to communication skill as the management
accountant needs to communicate with other professionals for written information and
commune verbal communication to the parties interested in interpreted financial details. On
the other hand, intellectual capabilities are the second priority for a management accountant
to evaluate the wide range of information available to sort out the most relevant for the
organization. Wong and Giessner (2016) have marked that without effective time
management skills, a management accountant could not be able to perform all the duties and
responsibilities asked for within the expected time.
Not only that, according to the observations of Howieson et al. (2014), expertise and
professional needs of a management account in dependent and independent organizations
vary from each other. A dependent organization finds teamworking abilities, communication
skills, industrial understanding while an independent organization requires commercial,
informative and IT expertise in a management accountant other than the financial abilities.
2.5 Summery of skills needed in a management graduate
According to some prior studies and field analysis, it has been found out that apart from the
core accountancy knowledge, knowledgeable skills, communication skills and relational
skills are most important in a management graduate. These skills will help to build
connection with other professionals within an organization and will able to understand the
current needs of the company. With these qualities, a management graduate when aspiring to
get a job of management accountant as prescribed by Lukka and Järvenpää (2017), will
understand the core lack in the processes of the firm and how to manage them to get assured
results in the business field. Despite these facts, as per the view of Lukka and Järvenpää
(2017), a combination of these skills in a management accountant and in a graduate will help
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in competing with the constant pressure of standing in the front and upholding the value of
managerial implications while doing the job.
2.6 Gap of the literature
From the above summary of literature review and earlier studies, it has been found out that
there are still some limitations of gaps exist in the literature review conduction and results
that need to be identified for better results of the research project for the next time. Though
the skills and capabilities of a management accountant have been pointed out here, no hint
has been given about the implications of them in business profitability and productivity here.
On the other hand, apart from the gaps between skills of a graduate and a management
account, there is no description of the possible training and development schemes that need to
be adopted by the graduates to overcome the limits given in the literature review, which is not
clearly establishing the second objective of the project.
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Chapter 3: Methodology
3.1 Research approach
Among the three types of research approaches, “Deductive research approach” has been used
in this study (Gale et al., 2013). This research approach has helped to examine the validity of
assumptions at hand and proved to be helpful in conducting both the secondary and primary
research in this project.
3.2 Research philosophy
Among “Realism, interpretivism, positivism and pragmatism”, positivism research
philosophy has been selected for this study. This research philosophy has helped in collecting
quantitative data and results for this study (Gale et al., 2013).
3.3 Sampling techniques
Among “probability and non-probability sampling techniques”, non-probability sampling
techniques have been used in this research since the sample size is small and not each
member from the population has the chance to participate in this research (Roberts, 2013).
3.4 Data collection methods
Both the secondary sources and qualitative data collections have been used in this study to
find effective results. The secondary research has been done through journals and trade
journals and business reports (Roberts, 2013). The qualitative data collection methods have
been done through interviewing focused groups, friends and family (Roberts, 2013). The
sampling size is small counting 5 people from focused groups and organizational
professionals.
3.5 Research limitations
Research limitations related in this study are listed below;
 Lack of proper previous research in the same field
 As the sample size is too small, proper statistical data could not be derived from the
results of the study (Taylor et al., 2015).
3.6 Ethical considerations
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 During the research and interviewing, no participants have been harmed and respect
of the dignity of research participants was preserved (Lewis, 2015).
 Confidentiality of each participant details has been preserved
 Any kind of misleading information and representation of primary data collection
results in a biased way have been avoided.
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Chapter 4: Data collection
4.1 Secondary data collection
In the past epoch, there has been adequate research done on this area, which established the
fact that there should be changes in the management accounting practices, functions and
techniques connecting to the relevance of management (Eriksson, 2014). The management
accountant should be knowledgeable to “information frameworks such as Activity Based
Costing, Balanced Scorecard, Key Performance Indicators, Economic Value Added, and
Benchmarking” (Eriksson, 2014). Currently, the expertise management accounting body in
U.S.A and UK has found out that experiences and functions differ from businesses in
different countries. On the other hand, the Australian study conducted by Di Tria et al. (2013)
has resulted to the fact that management accountant roles should incorporate “providing
expert advice, team leadership, leadership in using statistical/analytical techniques, the design
and management of information systems, the design and control of performance measurement
systems”.
As per the views of Arena et al. (2010), the management accountant in organizations is not
only the person to provide adequate information regarding accounting but also to participated
in the role of decision-making process in the face of changing pressure of globalization,
development in technology and gravity of getting information at hand. According to the
definition and findings of IMA (Institute of Management Accountants), it could be said that
“Management accounting also comprises the preparation of financial reports for non-
management groups as shareholders, creditors, regulatory agencies, and tax authorities”
(Eriksson, 2014). Therefore, according to Tria et al. (2013), it could be said that currently a
management accountant is positioned throughout the organization and responsible for
communicating the cross-functional teams that consist of workers representing different
functions of the organization.
4.2 Primary data collection
Qualitative data analysis
The research questions asked in the interview and their results have been described in below;
1. what are the requirements of a managerial accountant in the modern world?
Answer from focused group discussion
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In the modern business world, a management account should at first has the knowledge to
understand the key requirements of the job role and then link it to the organizational
objectives.
Response of first management accountant
According to the first management accountant, an individual aspiring to be an effective
management accountant in the future should know the value of communication along with
financial accountancy knowledge to adhere to the objectives of the company.
Response of second management accountant
A management accountant in modern day should know how to made quick analytical
judgments to overcome difficulties at hand.
2. Are different management accountant skills and abilities cut across different
businesses or organizations?
Answer from focused group discussion
Nowadays, different managerial skills traverse to various businesses and organizations
adding more value to the understanding of managerial implications to business success.
Response of first management accountant
According to the first manager, some skills are common in every business such as
communication, interpersonal and analytical skills.
Response of second management accountant
As per the second manager, time management, analytical abilities, financial knowledge and
most importantly practical abilities of a management account cut across in different
organizations.
3. What should be the nature of training and development that is required to enable
managerial accountants meet the needs of their job requirement?
Answer from focused group discussion
According to the focused group discussion results, adequate training and development could
be able to help graduates and management accountants to understand the changing needs of
their organizations and act according to them.
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Response of first management accountant
The first manager has answered that the nature of training and development should guide
individuals so that they could identify their shortcomings and eventually find solutions to
them.
Response of second management accountant
The second manager has said that the nature of training and development should be a process
to introduce new ways of learning and developing skills that are necessary.
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Chapter 5: Results and discussion
From the above secondary data collection process, it has been identified that with the
changing organizational context and the constant pressure of competing with new business
agendas, the role and functions of management accounting have also been modified (Otley,
2016). There is no fixed role or functions of a management accountant within an
organization. This position or job role has no particular degree of works, the accountant must
have sufficient knowledge regarding the company and have the knowledge to work with the
cross-functional teams involved in the firm.
On the other hand, the qualitative data collection results have identified that fact that
communication skills, time management, and analytical skills along with accounting
knowledge are the most important ones according to the modern day professional roles and
requirements of companies in a management accountant (Otley, 2016). Most significantly, it
has been found out from the previous research that a management accountant must know the
role of directing, decision-making, planning, organizing, controlling and gathering feedbacks.
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Chapter 6: Conclusion and recommendations
Therefore, from the above research, it has been found out that certain skills are needed to
fulfil the job requirements of a management accountant and not only that, skills pointed out in
the study are also useful to manage all the given operations effectively to management
accountant. This study has been pointed out changes in the job role of a management
accountant. This is due to the rapid change in the business environment and the needs of the
organizations in order to compete with others. The most needed skills in this area that has
been pointed out are communication skills, technical knowledge, analytical skills along with
accounting knowledge. For acquiring better results in future researcher could enlarge the
sampling size so that more statistical data from the professionals in this field could be
gathered. In the future, for completing entire research more systematically, time management
should be applied strategically so that more concentration could be given to the data
collection process.
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