Individual Reflection: Blueprint for Professional and Personal Growth
Future as a Manager, with Executive Summary of Class and Management Accounting Skills
CALYN A HARRIGAN
WMBA 6050: Accounting for Management Decision Making
WEEK 8 ASSIGNMENT
October 28, 2018
Taking this course and completing the assigned readings and assignments has definitely enhanced my awareness and understanding of accounting management and the decision-making process. There are several areas covered that were new concepts or concepts that I was not very familiar with. For instance, concepts such as accounting rates of return and internal rates of return were entirely new to me. The triple bottom line (TBL) was another concept that acts a framework for performance of an organization. It comprises of three aspects include the financial health of the organization, the environmental sustainability and the continuance of social justice (Slaper & Hall, 2011). Overall one area that stood out was the need to be accurate in every area of the financial and accounting process as decisions are highly influenced by the data obtained. Zimmerman highlighted the importance of communicating with the employees on accounting and accountability as well suggests the use of bookkeeping or accounting software to assist with tracking information regarding the business (2017). The knowledge gained from understanding these concepts definitely has the potential to be beneficial in the future. The combination of my experience and the coursework completed during this course has allowed me to further understand the intricate details entailed in becoming a successful manager.
My goals have been influenced by the information obtained from this course. Accounting on its own appeared as simply another division in the business world that just focused on the numbers. However, I now know that the accounting process is vital to the decision making process of managers. I was aware that a business has to be able to pay its operating expenses in order to stay open. However, I was not very familiar with the concept of the break-even analysis and the balanced scorecard. Zimmerman explained that an organization that is unable to cover the operating costs would not be able to successfully operate (2017). The gains and the losses have to be equal in order to break-even. Additionally, the use of a balanced scorecard as a system of measurement allows for organizations to observe and improve performance in the areas of “financial, customer, internal business processes, and learning and growth segments” within that organization (Bragg, 2018). The overall enhancement of performance is dependent on doing well in all of the four mentioned areas (Bragg, 2018). I am now more aware than ever that accounting tools have to be incorporated into my future organization to assist in the decision making process.
PERSONAL AND PROFESSIONAL STRATEGY
My ultimate goal is to help to drastically improve the healthcare system of my home country. In order to do this, I have set out to become a physician but I also understand the importance of public health and policy as well as being qualified to run a business. As such, In addition to my MBA, I am working towards completing my medical degree and have already earned my Masters in Public Health. I do intend to own and operate a healthcare facility. Earning a profit will be one of the many goals of the business, however, in addition to serving the patients, there will be a need to be socially responsible. In order to meet the various demands, it is essential that processes of forecasting, strategic planning and budgeting be utilized. According to Zimmerman (2017), a budget is basically an aggregate forecast of all transactions that are expected to occur during the given period. Implementing these processes as an integral part of the decision-making process will help to ensure the success of my business. The knowledge gained from these processes has to be assembled and communicated to the managers with the power to make the final decisions (Zimmerman, 2017). I would also be able to factor in the contributions to upholding my social responsibilities as a business within the community.
Additionally, when operating my business, I will have to ensure that at the very least, I am able to meet my break-even point. This is the point where my expenses and earnings are equal. There is virtually no way to continue running a business that is operating at a loss. Accurately completing a break-even analysis would assist me in making the necessary decisions surrounding my expenses and earning in order to break even and eventually make a profit. This also influences how much I am able to contribute to society. As a business, if operating at a loss, I would be unable to fulfill by social responsibilities. The break-even analysis will play a significant role in the decision making process at my business.
Moreover, my business will be operating internationally, however, many of the supplies will have to be obtained from the United States of America. I am more aware that companies have to acknowledge the differences that exist among various nations and that what works in one country may not work in another. As such, as a manager I will have to take into consideration differences such as culture, socio-economic status, workforce and education. This would require some collaboration with other organizations. This would lead to the managers of the involved companies to work together in order to ensure that there is optimal performance, productivity and efficieny (Portz & Lere, 2010).
Of all the personal and professional goals that I am working towards achieving, the area of social responsibility is very important to me. I agree that it is essential that a business makes a profit in order to be successful, but I think it is also vital that a company contributes to society. An organization generally succeeds when it is influencing positive change. For instance, many people are inclined to invest in businesses that are openly charitable or environmentally friendly. This will also help the business earn a profit. It is significant that the impact on the environment and society be considered when in a position to affect change. As a business owner and manager, I will ensure that provisions are made to promote and ensure good practices throughout my company.
Becoming socially responsible will take effort and focus in order to be successfully accomplished. Firstly, there will be a need for everyone involved such as stakeholders, managers, staff and the consumers to all be on the same page. To do this, it will be necessary for a degree of transparency in the business. Secondly, evaluation methods, strategic planning, and budgeting must be implemented in order to adequately fulfill the goal of contributing to society. It is easy for businesses to get caught up in trying to make a profit and neglect their social responsibilities. As manager, it will be my duty to ensure that these responsibilities to society are accomplished along with making a profit.
Bragg, S. (2018). Balanced Scorecard. Retrieved from: https://www.accountingtools.com/articles/2017/5/11/balanced-scorecard
Hategan, C-D., Sirghi, N., Curea-Pitorac, R-J., and Hategan, V-P. (2018). Doing Well or Doing Good: The Relationship between Corporate Social Responsibility and Profit in Romanian Companies. Sustainability (10): 1041; doi:10.3390/su10041041
Portz, K., & Lere, J. C. (2010). Cost center practices in Germany and the United States: Impact of country differences on managerial accounting practices. American Journal of Business, 25(1), 45-52.
Slaper, T. F., & Hall, T. J. (2011). The triple bottom line: What is it and how does it work? Indiana Business Review, 86(1), 4-8.
Zimmerman, J.L. (2017). Accounting for decision-making and control (9th ed.). New York, NY: McGraw-Hill.