ACCOUNTING INFORMATION FOR LOWER LEVEL MANAGERS

(A CASE STUDY OF (ANAMCO LTD.)EMENE, ENUGU)

By

CHUKWU CHINYERE NNEKA

Presented To

Department of Accountancy

TABLE OF CONTENT

TITLE PAGE

APPROVAL PAGE II

DEDICATION PAGE III

ACKNOWLEDGEMENT IV

ABSTRACT V

TABLE OF CONTENT vi

CHAPTER ONE

11 Introduction

12 Purpose of the study

13 Significance of the study

14 Statement of problem

15 Hypothesis formulation

16 Scope and limitations

17 Definition of terms

CHAPTER TWO

Review of Related Literature

21 Definition

22 General concept of information

23 Importance of information

24 Accounting information: General view

25 Sources of information

26 Criteria for accounting information

27 Users and uses of accounting information

28 Accounting information and the lower level mangers, functions, needs, form, content and uses

29 Improving the quality of accounting information

210 Summary

CHAPTER THREE

RESEARCH DESIGN AND METHODOLOGY

31 Study area

32 Source of data

33 Sampling procedures

34 Research design

35 Summary

CHAPTER FOUR

PRESENTATION AND ANALYSIS OF DATA

41 Presentation

42 Corporate information environment

43 Test of hypothesis

44 Information suitability and nature

45 Uses of information

46 Job completion

47 Accounting information

48 Neglects of information by mangers

49 Starvation of information and job execution

410 Improving performance

CHAPTER FIVE

SUMMARY OF FINDINGS, CONCLUSION AND RECOMMENDATION

51 Findings

52 Conclusion

53 Recommendation and suggestion

BIBLIOGRAPHY

APPENDIX: QUESTIONNAIRE DESIGN

CHAPTER ONE

11 INTRODUCTION

Business firms are established to achieve specific objectives

This may be to maximize profit or its shareholder weather These are called "the and in view" Coventry, (1980;83) or the end of planning" Koontz (1980:189) In the pursuit of this objective, certain persons occupy positions of authority and are charged with the responsibility of integrating, through the functions of planning organization, directing are controlling, human and material resources and channeling such towards the actualization of the objective There persons are the mangers

In a typical organizational structure there are three categories of managers These are the top medium and lower level mangers The first group makes strategic decision by monitoring the external and internal environment of the firms forecasting operations, at the same time make long vange plan

The medium level mangers make tactical decisions and intermediate plans on how to achieve plans made by the top managers While the lower level mangers are controllers of operations and implementations, they interact directly with the workers and understand their problems better These managers also understand better the job problems They are also retired to as "frontline foremen and supervisions" Okono, (1993:62) Loto performs the day to day routine functions and makes adhoe plans to achieve objectives of minimal cost

Business secessions are made in a complex and uncertain environment This calls for a careful planning and implementation of plans for such plans to be made, the planner must be well informed on the object of planning In the work of Ase chemic (1994:12), the off-the-scene, non-certainty, and social disintegration problems faced b mangers call for the use of information Woel fel (1980:12) argued in favour of information when he called it "the raw material for decision making To butteries his point, he further argued that "there is a direct relationship between the value of information received and the appropriateness of the decisions made"

In a business concern information can be obtained from one accounting, marketing, external, research or other information sources The use determines the courses and varies information content Information can be presented in financial or non-financial form It could be used, disregarded or seen to be irrelevant and complex by mangers There are also cases when mangers are starred of information

The lower level manger perform the important role of bringing management plans into action Therefore any derivation at this point nullifies the entire plans and frustrate objectives They therefore need more information for effective implementation of plans For instance, a supervisor (lower level manger0 know through feed back information that so much quantity raw material has been used up in the production of contain batch of goods This will make him to make adjustment in raw material consumption's when the need be

This is also the case with units controllers such as treasures, plant supervisors, foremen, chief engineers, among others

This study therefore is based on the lower level mangers' information environment, on area little or nothing has been written on

12 PURPOSE OF THE STUDY

Daff (1986:7) opined that accounting information is the language with which financial data are communicated within and out side business establishments It produces information for people through people Is a "live wire" without which the current of success cannot flow through the line of any business establishment This description serves to show the important of accounting information in any business firm

In the same line, the lower level mangers are front-line supervisors who put management plans into actions

They do this by performing the routine function of allocating individual with work and seeing that is as accomplished Applay, (1976:30) The position of these managers are demanding in view of their functions

The purpose of this study is therefore to identify, among other things, this information environment open to the lower level mangers with special emphasis on the place of accounting information in this environment This purpose in achieved through the following steps:

i Identification of their job problems and the cause of such problems

ii Identification of their information needs

iii Identification of information they are provided with

iv Identification of the type and nature of their information needs and those provided

v To also know if the information provided are suitable for their jobs or not

vi Identify the uses for these information

vii Verify the claims on starvation and neglect of information and finally;

viii Identify the place of accounting information in the entire environment

13 SIGNIFICANCE OF THE STUDY

There are two major facts to view the importance of this study These are from cooperate and academic perspectives

There are various claims over the information needs of these mangers Some could be starred, over provided for, or complex and untimely this study will therefore enable corporate bodies known the actual needs of their managers, as well as their general perception of accounting

In the academic world, this study will changing the protracted arguments, claims and counter claims on information of lower level mangers It will as well serve as a reference point for future researchers

14 STATEMENT OF PROBLEMS

Strategic problems They say, require strategic solutions

for the purpose of this study, it is added that strategic solutions can only be reached through the use of strategic information that relates to the problems the lower level mangers solve vital problems such as inventory valuation; recorder, pricing and profit plans implementation As well as buy or repaid decisions implementation

The issue in point remains that the type of information this level of managers need is not clear Writers in this field have preoccupied their mind with the information needs of the top and medium level mangers They neglect completely the mention of the information needs of the lower level mangers In most cases, they simply incorporate such into The information needs for the medium level mangers or just make a descriptive writing on the functions of the lower level mangers This actions has actually created a vacuum in the knowledge on the information needs of those mangers Recently, a researcher is administrative studies writing on the there " accounting information for management actions" identified various classes of mangers and their functions But dwat on the information needs of the top and medium level mangers Commenting on lower level managers, he simply put

Organizational information equip the lower level managers with the companies plans on some strategic problems, these include cost control, time , material, and labour needs of the firm … the mangers should be aware of stock valuation, assets valuation, and its disposal policies Expenditure levels, charges in product lines and pricing technique should be explained Bxpnior; (1996:3)

The writer preoccupied his mind with what ought to be and not what is He did not bother to know if information is provided or not When provided, he did not talk of the nature type and extent of usage

There were various claims over the information environment for the lower level managers in a class lecture Aseehemic has commented the lower level mangers Are starred of information, but did not go beyond that to explain the ground for his assertions and the type of information he was referring to Some other writers has claimed that the information sent to these managers are too complex for them to understand This they claimed have led to managers neglecting the information sent to them

As this air of uncertainties and lack of clarity persists it becomes more impossible and pressing on the academic world to carry out a research of this nature that ca clearly study the information environment open to the lower level managers and make assertions in that regard This is therefore the problem this work will try to study with special attention to accounting information

15 HYPOTHESIS FORMULATIONS

The statement of hypothesis provides on measurement

criterion that keeps a researcher on the line of study Osuda (1982:44) in their words, it is "a speculation on the way the variables of the study behaves: Buridan (1990:3) It is a guide on the type of data that is to be collected and the methods to be use is their analysis

The need for such guide rise tot he following hypothesis:

1 There is a big difference between the proportion of mangers that use accounting information one those that do not

2 There is a big difference between the proportion of accounting information required by managers and those provide for their use

3 There is a big difference between the proportion of mangers that use financial information and those that do not in Nigerians firms

4 There is a big difference between the proportion of managers that perceive accounting information as irrelevant and those that do not

5 There is big difference between the mean of managers that disregard information sent to them and those that do not

16 SCOPE AND LIMITATION OF THE STUDY SCOPE

Considering the fact that the theme "Accounting information for lower level managers" is a wide one to study The researcher at this point wishes to state an achievement premise from the target population to constitute the scope of the study

The target population in this study is the entire corporate bodies in Nigeria and all the lower level mangers therein, and the access population include the environment open to al lower mangers in five states (Enugu, Abia, Delta, Imo and River) in Nigeria, while the study sample will cover a cross sectional study of 150 mangers in 25 companies form five industries (manufacturing, oil, sales, bank and publishing) in the aforementioned states

Precisely, the study will cover 150 managers from 25 companies among 5 industries in 5 states

17 LIMITATIONS

In the business of fulfilling this study objectives, the

researcher faced great number of constraints these include time, finance, respondents insensitivity, and lack of materials

i TIME CONSTRAINTS: The time unit gave for this study is so short that if compared with the actual time requirement, a significant difference does exist Till now that this report is almost completed, some questionnaire are still being posted back but can not be use again

ii FINANCIAL CONSTRAINTS: For a wider scope and coverage to be achieved, it requires lots of money for both transport and acquiring materials The fear of these financial implication mode the researcher to narrow her study to just 150 managers in only five states, predominantly Enugu State

iii RESPONDENTS INTENSIVELY: Another major set back to the study is the respondents insensitive to the importance of attending to the questions It took regular visits and much preaching to convince those mangers to respond to the questions raised in the questionnaire This action could be their fear of insecurity and illiteracy

iv LACK OF MATERIALS: This is another major constraints tot he study Materials on accounting information for lower level managers are very few due to the fact that this study is a very new one There searcher has to put various components Together to ensure that she get enough material for the study

18 DEFINITION OF TERMS

The researcher wishes to explain some terms that were used from points to view, to makes for a clearer understanding of the study and implications

1 MANAGER(S): Unless where other wise stated, is used to measure lower level managers

2 INFORMATION: This is used in general terms to mean data processed into a meaningful and understanding way It embraces all types of information from the management sub systems

3 ACCOUNTING INFORMATION: Where this is referred to, is clearly shown This study does not intend to confuse accounting information with other management information sub-system

Nor does it intend to create the impression that there is only accounting information in the management system But intends to know the place of accounting information in the entire information system opened to the mangers

4 GENERALIZATION OF THE FINDINGS: It is assumed in the study that the scope of the study in large enough to be used as a parameter for generalization Hence, the findings are assumed to be applicable to all lower mages in Nigerian firms

SUMMARY:

There is a great gap in knowledge over the information type, nature and content that is opened to Nigeria mangers and the place if accounting information in this environment various claims and counter claims have been made over this matter Till now, no concrete stance has been given to the concept of accounting information for lower level managers

Therefore, the need for this study become important to cover this gap and create a clear understanding of the entire environment

This chapter is used to give a conceptual frame work that served as a guide for the entire study