Supervisory Management and Managerial Accounting - Coursework Example

Supervisory Management What is meant by leadership Leadership, in the context of business, is one of the means of direction and represents the partof managers' activities by which they guide and influence the behaviour of their subordinates and the group towards the accomplishment some specified goals. It is a great quality that can create and covert anything. It is an activity on the part of management to get things done by others, willingly and not by compulsion. Leadership is the process of influencing subordinates in an organization for the achievement of organizational objectives. It is the mangers' ability to induce employees to perform their tasks confidently and enthusiastically. To be a successful leader, one should have multifarious attributes such as social skill, emotional stability, intelligence, technical competence and so on and so forth. Briefly discuss the major factor that may influence the choice of an individual's leadership style. Correlate these factors with different leaders1hip styles. Leadership styles are the pattern of behaviour which a leader adopts in influencing the behaviour of his/her followers (subordinates in the organizational context). These patters emerge in the leader as he begins to respond in the same fashion under similar conditions; he develops habits of action that become somewhat predictable to those who work with him. Various researchers have proposed different leadership styles. These styles are either based on behavioral approach or situational approach of leadership. Irrespective of the style one follows to influence the people under him, there are some factors which have a bearing upon the selection of a particular style. One of such important factor is the leader-follower relationship. It refers to the degree to which followers have trust, co0nfidence and respect in the leader. Discuss how a supervisor would determine the readiness level of an employee. The readiness level of an employee implies the willingness of an employee to work for an organization as required by his/her supervisor. It determines how able and successful that worker will be in the climate of the organization. The willingness to work or readiness to work can be evaluated in terms the attitude of the employee by means of some attitude tests. What leadership actions fall under the category of task behaviors, and what actions fall under the category of relationship behaviors Creating confidence and morale in the employees is an important step towards the accomplishment of works done by subordinates. Subordinates are encouraged and motivated to work in an environment where leader takes the role of confident builder and morale booster. One of the important attributes of a good leader is that he/she must have the ability to motivate others in times of crisis. The relationship between a leader and his subordinates is largely influenced by the degree to which the leader is successful in motivating subordinates. Do you agree or disagree with Blake and associates that there is one best leadership style Support your position. The democratic/ participative style of leadership is the most popular and generally accepted one as it ensures substantial participation by members of the group in managing and decision making process of the leader. Very often subordinates are consulted by leader on wide range of problems. A democratic leader takes decision only in consultation with his subrogates. Subordinates are freely allowed to communicate with the leader and also with their fellow subordinates and take their own initiative. This style of leadership is based upon positive assumption about human beings. In his early fifties, Bob Goins modified his leadership style from heroic to developmental. If you were trying to motivate managers to change as Goins did, how would you go about it Do you think the majority of supervisors have the ability to modify their style Why or why not Leadership styles can be changed from one to another on the basis of the demands of a situation. Therefore, the success or otherwise of a leadership style depends to a large extent on certain factors that are mostly beyond the control of a leader. Thus, leader may have to adapt to the changing needs of the situation. However, not all leaders may succeed in this effort as they are vulnerable to change their attitudes towards their style of leadership and influencing people. Can you identify any transformational leaders from your own experience or reading Please list the reasons why you placed them in the category of transformational leader. If you cannot identify someone, do you agree with the leaders identified in this chapter - John F. Kennedy, Martin Luther King, Jr., and George Patton Why or why not All of these leaders have the capacity to influence the followers and they were adaptable to the changing needs of their followers. In addition to sound knowledge in certain areas, they are capable to learn even at their old ages in their lives. The willpower, confidence level, motivation and spirit of learning, etc made them all successful leaders of their period. Managerial Accounting What constitutes a firm's goals Goals represent the end results that an organization wishes to accomplish after a certain period. Goals are addressed by all major areas of business such as finance, marketing and personnel. All business activities have goals decided prior to the efforts put now. For example, financial activities may have their own end results for which financial manager put efforts with his/her team. Similarly, human resource manager has his own end results, which are in line with the overall objectives of the firm. In this context, it is better to differentiate between goals and objectives to have a better description of the term goal. Objectives are the end results through which goals are accomplished. Objectives are more specific than goals in the sense that goals are general statements of what the firm's end results of a series of activities in future. What is a mission statement and how does it relate to a company's goals An organization's mission statement is its unclear and vision translated into a written form. The mission should be concise and simple to comprehend. Mission of a firm is the purpose for which the firm exists and expressed in terms of its role in the society and among the customers and public. The mission statement of an organization answers the questions what is the business of the organization, what the organization will be and what it should be. The answers to these questions, when put together will imply the very reasons for the existence of the organization and its role in the society to fulfill the needs of a specific group of public. The goals and priorities of a firm are expressed through its mission statement. The fundamental goal of any firm is to increase the shareholders value which is possible through a mission which spells out what the firms intends to achieve in the long run. What is a strategic plan and how does it relate to a company's goals Strategic plan is the course of actions that a firm would prefer to adopt as its way towards its end results. Strategic plan is formulated in conformity to the objectives and mission of a firm after a careful analysis of the internal and external environment of the firm. In its analysis of the external and internal environment, the opportunities, threats, strengths and weaknesses are identified and find possible solutions to combat the treats and make use of the opportunities to further strengthen its role in the industry/business. Strategies are, therefore, long term plans of action that are to adapt a firm to its environment to accomplish gain over its competitors and sustain development and growth. The strategies of a firm are framed in line with the goals of the organization which have been set earlier. Goals once set shall not be changed in respect to the changes in the environmental factors. The factors are subject to perennial changes, but strategies are made in conformity to the goals to take advantage of the opportunities and /or combat treats posed by environment. What is the purpose of a capital budget and how does it relate to the strategic plan and a company's goals A capital budget sets out the plan for acquiring the assets which will have long life. Firm's purchase of fixed assets and investment in new business opportunities are evaluated through capital budgets. It refers to the process of making decision for the investment of money/fund in the long term assets which are mostly irreversible. A capital budget evaluates an opportunity/ investment in asset by critically appraising the viability of the project in terms of money. By employing an appropriate method for an investment appraisal, the selection or rejection of the proposal for investment is made. Capital budgets are also prepared and investment proposals are evaluated in line with the overall objectives and strategies of a firm. There is no doubt that a company's goals are also expressed through any capital budgeting undertaken by it. What is the purpose of an operating budget and how does it relate to the capital budget, the strategic plan, and a company's goals The operational budget sets out the estimations about the day to day operations of a firm. It deals with the estimation of revenues and expenditure to be incurred during a particular period in future. Sales budget, production budget etc are commonly seen operational budgets. The preparation of operational budget starts with the drafting of a sales budget which is considered to be the fundamental operation of a firm. Operational budgets are in no way connected with the capital budget as both deal with different types of investment and length of period. What are capital investments Capital investments refer to the commitment of a firm's fund in the long term assets/investment proposals. These investment proposals/capital assets are expected to fetch return during the life time of the project, which usually covers a period more than one year. Purchase of fixed assets, investment in long tern business proposals etc. come under the purview of capital investment. All capital investment is long term and involves huge amount of money and therefore, they are irreversible and will have long implications upon the financial condition of the firm. What is the difference between a capital investment and a capital project These two terminologies are often used interchangeably. However, precisely speaking, these two terms are different and used in different contexts. Capital investment as mentioned earlier is the investment of a firm's funds in the long term assets of the firm with an expectation of getting return during the life time of the asset. Capital project is those long term investment opportunities of a firm which are evaluated by the firm for commitment of its funds. These projects may include new investment opportunities, new product in the market, setting up of new factory for meeting the increased demand for existing product etc. What is the focus of the capital budget The capital budget provides guidance as to the amount of capital that may be needed for procuring of capital assets during a budget period. The budget is prepared after taking into account the available productive capacities, probable reallocation of existing assets and possible improvements in production techniques. If necessary, separate budgets may be prepared for each item of asset, such as buildings budget, plant and equipment budget etc. however, al capita budget focus its attention more on the likely return that the investment proposal fetch in future. Unless the return from the investment does not qualify the one which is required to meet the cost of capital, the proposal may be straight away rejected and the firm will think about some other alternatives. What does it mean when the cost of a purchased item is capitalized When the cost of an item purchased is capitalized as part of its accounting treatment, it implies that the return from the asset is expected to be received at different time points in future. If an investment in/cost of an item fetches its entire return in the period in which it is incurred, then the cost is treated as a revenue item and should not be capitalized. The term 'capitalized' means an accounting treatment by which the cost of an item is partly shown in the current year's income statement (profit and loss account) and the rest of cost is shown in the balance sheet as an asset. What does it mean when the cost of a purchased item is expended When the cost of an item is shown as an expense in the current year's income statement/revenue statement, it implies that the return from that investment/item is fully recouped in the year of investment itself. This accounting treatment argues that if an item fetches its entire return in the same year of investment, then it has to be matched with the revenue of the same period. Work Cited Blanchard, Kenneth H., Patricia Zigarmi & Drea Zigarmi. Leadership and the one minute manager: increasing effectiveness through situational leadership. Illustrated ed. Morrow, 1985 Brealey, Richard A., Stewart C. Myers & Brattle Group. Capital Investment and Valuation. Illustrated ed. McGraw-Hill Professional, 2003 Bryman, Alan. Leadership and organizations. Illustrated ed. Routledge, 1986 Northcott, Deryl. Capital Investment Decision-Making. Illustrated ed. Cengage Learning EMEA, 1992. Read More