The purpose of job evaluation is to identify, analyze, and measure a certain job against a pre-established criterion. The purpose of job evaluation is also to weigh the value of a given job in a consistent and uniform manner (Understanding the Job Evaluation Process, n.d.). In many cases, job evaluation is done is order to help in assigning the appropriate salary group and range to all job groups in an organization. This is important in providing salary equity among all employees in an organization, as it ensures consistentcy with the industry’s ranges. Job evaluation is done when a new position arises and/or when changes ranging between 10 and 15 percent are observed in an existing job (Understanding the Job Evaluation Process, n.d.). This paper provides a job evaluation of a management accountant.
A management accountant, also referred to as a private, managerial, corporate, cost, or industrial accountant, is responsible for recording and analyzing financial information of the company he/she works at for internal use only. A management accountant prepares financial statements; usually budgets, cost schedules, asset management schedules, and manufacturing accounts, analyzes their results, and then uses the results to advise the management on the best course of action. A management accountant is also responsible for developing strategic plans and financial plans for new products. Their role in strategic planning is to ensure that financial resources required to implement a proposed plan are availed at the right time and in the right amounts. They also ensure cost-effective utilization of financial resources in implementation of strategic plans.
In development of new products, management accountants ensure that every product is financially and economically feasible. That is, an organization will be able to produce a new product with the available financial resources, and that the new product will be cost-effective in order for the company to reap profits from its sales. Since management accountants are usually part of the accounting department, they are sometimes involved in preparation of financial reports for creditors, tax authorities, stockholders, and regulatory agencies’ use. The process of job evaluation involves identification of the duties performed by an individual in a specific job. Job duties can be identified by looking at the responsibilities of an individual employee in a specific job. Thus, the aforementioned responsibilities of a management accountant are also the duties of a management accountant.
The next stage in job evaluation is to benchmark an employee’s performance against the pre-established standards of the position help. This involves looking at an employee’s expertise, problem-solving skills, and accountability level (Understanding the Job Evaluation Process, n.d.). Expertise is the total of skills and knowledge required for an employee to perform a specific job acceptably. For a management accountant, an incumbent requires to possess specialized knowledge of cost accounting and general accounting knowledge, managerial skills, and human relations skills.
During the job evaluation process, the management accountant was found to possess a bachelor’s degree in business management, certificate in public accounting, and membership certificate of the Institute of Certified Public Accountants. The management accountant had previously worked as an accountant in a local bank where he acquired adequate experience in the accounting department. In his current position as a management accountant, the employee was found to possess good managerial and interpersonal skills. The employee always delegates various duties to his subordinates whenever he is issued with an assignment by the management. He has good coordination skills and he always ensures that all activities in his section are undertaken in an organized manner. His subordinates complimented him on his good interpersonal skills. Based on these, it was concluded that the employee possessed the required expertise to undertake the job of a management accountant acceptably.
Problem-solving skills are the ability of an individual to analyze, reason, and arrive at a conclusion when confronted with a situation/issue, which requires original and self-starting thinking (Understanding the Job Evaluation Process, n.d.). When evaluating the problem-solving capacity of an employee, two elements are taken into consideration, such as thinking environment and thinking challenge. “Thinking environment is defined by the degree, to which a job holder is free to develop solutions to every day problems based on simple memories, creative thinking, or long-range strategies” (Understanding the Job Evaluation Process, n.d.). The job of a management accountant requires a relatively high degree of freedom in making day-to-day decisions. This is because a management accountant is the most knowledgeable individual in an organization when it comes to making decisions, which involve cost-benefit analysis. An organization cannot be profitable if the costs of most of its decisions overweigh their benefits.
After evaluating the problem-solving skills of the management accountant, it was found that he has a relatively high degree of freedom to make decisions without seeking approval from the management. This enabled him to make decisions during the times of emergencies. Some of the economical decisions made by the management accountant included ordering of immediate repair of a processing plant, which was spilling a large volume of raw materials thus requiring the company to purchase more raw materials than required for production of a specific volume of output. “The thinking challenge defines the complexity and uniqueness of problems” (Understanding the Job Evaluation Process, n.d.). The management accountant was found to be exposed to a challenging thinking environment, since many of the decisions made in his section involved creative thinking. Nonetheless, the management accountant exhibited good problem-solving skills in his work.
In reference to accountability, the management accountant was found to be very accountable for his actions and that of his section. The management accountant always uses his discretion to make and implement decisions, which he deems necessary for efficient functioning of his areas of duty. He always assumes the directing, controlling, facilitating, advisory, and interpretive roles in his section. This implies that he recognizes that he is responsible for all actions undertaken in his section, as well as his own actions in his position. The job evaluation results of the management accountant indicate that the employee possesses the necessary skills required for acceptable performance of the duties of a management accountant, and his performance is acceptable.