Managerial Profile and Competence

Review of Managers In Selected Accounting and Auditing

Firms In Davao City 

Background of the Study A business establishment succeeds by satisfying the needs of its customers. Therefore, managers are required to continually refresh their understanding of their customer’s requirements and anticipate shift in demand and expectation.

In the field accounting for instance, accountant-manager must possess the skills that an ordinarily prudent accountant would have and exercise the degree of care that an ordinarily prudent accountant would exercise

The manager-accountant plays a very important and crucial role in every business entity. Thus, they should posses an outstanding level of competence, in order to assure that they are able to project the necessary competence required in their profession. With this, the researchers would like to assess as to what level of competence the managers have, in three identified skills identified by the proponents.

Statement of the ProblemThe purpose of this research is to determine the managerial profile and the competence level of managers in selected accounting and auditing firms in Davao City. Specifically this study sought to answer the following questions:

1. What is the managerial profile of manager in selected accounting and auditing firm in Davao City in terms of:1.1 Age1.2 Sex1.3 Length of service1.4 Educational Attainment1.5 Experience1.6 Training

2 What is the level of competence of managers in selected accounting and auditing firms in Davao City in terms of:2.1 Communication Skill2.2 Professional Skill2.3 Technical Skills

3. Is there a significant difference among managerial profile and the level of competence of managers in selected accounting and auditing firms in Davao City when analyzed as to:

3.1 Age3.2 Sex3.3 Length of Service3.4 Education3.5 Experience3.6 Training

4. Is there a significant relationship among managerial profile and the level of competence of managers in selected accounting and auditing firms in Davao City?

Hypotheses

• HO1: There is no significant difference among managerial profile and the level of competence of managers in selected accounting and auditing firms in Davao City.

• HO2: There is no significant relationship between the managerial profile and the level of competence of managers in selected accounting and auditing firms in Davao City.

Review of Related Literature• GoldStein (1999) • MacMillan (2008) • Onken (2008) • Schuhmann(1999) • Davidson (2000) • Hayes (1996)• Foster (2003) • Pickett (1998) • McGuire (2008) • Takeuchi (2005) • Bitencourt (2005) • Chapman (2000) • Barret (2006) • Walley (1996) • Daft (2000)• Arul (2006)

Theoretical and Conceptual Framework

• This study is anchored on the theory of Jaffee (1992) which states that managerial and supervisory success is one that comprises competency factors and there involves exercising of skills and abilities in attaining the goal of the organization. Jaffee pointed out that without competency and leadership quality, managerial responsibility is difficult to perform.

• This was further supported by Pickett, (1998) explained that the current and future success of an enterprise is a reflection of the effectiveness and competencies of the senior management team, their vision and leadership, and the combined knowledge and skills of the organization's workforce.

Figure 1 

Diagram of Conceptual Framework

AgeSex

Length of ServiceEduc. Attainment

ExperienceTraining

Professional SkillComm. Skill

Technical Skill

Definition of Terms• Managerial Competence Review - It refers to evaluating the quality

of being capable, efficient and the capacity of managers in accounting and auditing firms in Davao City.

• Managerial Profile – It refers to the personal qualification and attributes of the managers

• Top managers – Are the managers who are in the top level management of the organizational structure. In this study, it refers to the owners of accounting and auditing firms in Davao City.

• Technical Skills – It refers to the qualities of a person to carry out its profession. In layman’s term it means the “know how” of a person.

• Professional Skills – It refers to the skill that is acquired by a person through formal training usually in education.

• Communication Skills – It refers to the capability of a person to communicate efficiently and effectively.

• Experience – It refers to the numbers of companies the managers had worked with.

•

METHOD • Research Design

The descriptive method of survey- correlation was used in the study. It is descriptive since it aims to assess the managerial profile of managers and their level of competence. It is co-relational in a sense that this study aims to determine the significance differences and relationships between managerial profile and their level of competence.

• Subject of the studyThe study focused on the managerial profile and competencies level of managers in selected Accounting and Auditing firm in Davao City. 30 managers and 134 employees in accounting and auditing firm were chosen as the subject of the study. Purposive sampling method was utilized in the conduct of the study.

• Research Instruments

The study utilized two sets of questionnaires. First set of questionnaire will determine the managerial profile and the second set will focus on the competency review of top managers in selected accounting and auditing firm in Davao City.

• Below are the scales used in rating the managers:

5 – Always -The skill is evident always at all times4 – Often -The skill is evident regularly3 – Sometimes -The skill is evident sometimes and at short interval of

time2 – Seldom -The skill rarely happens and at along interval of time1 – Never -The skill is not evident at all

• The following interpretations were used for getting the mean for managerial competence:

RANGE VERBAL DESCRIPTION INTERPRETATION

• 4.21-5.00 Very High Very High Competence• 3.41-4.20 High High Competence• 2.61-3.40 Moderate Moderate Competence• 1.81-2.61 Low Low Competence• 1.00-1.81 Very Low Low Competence

• Data Gathering Procedure

1. Asking Permission to conduct the study. 2. Administration and Retrieval of the questionnaires3. Collation and Processing of Data. 4. Analysis and Interpretation of Data.

Statistical Treatment of the Data The following statistical tools were used in conducting the study:

Frequency and Percentage: This was used to determine the

profile of managers in selected accounting and auditing firm in Davao City.

Mean: This was used to determine the competence level of selected managers.

Analysis of Variance (ANOVA): Used to test the hypothesis whether significant differences exist between managerial profile and competence level of managers in selected accounting and auditing firm in Davao City.

Pearson R Correlation: was used to test the significant relationship exist between managerial profile and their level of competence. To determine the profile and the level of competence of managers, frequency and average mean were used.

PRESENTATION AND ANALYSIS OF FINDINGS

1. Managerial Profile of Managers in Selected Accounting and Auditing Firm in     Davao City. In terms of age, result showed that majority of respondent ranges from 51- 60 with 15 counts or 50%,

followed by managers having 30 years old and below with 8 counts or 26.67%, managers ages from 41-50 are third in ranks with 4 counts or 13.3%. and followed with managers ages 31-40 with 3 counts or 10%.

When group as to sex, study shows that Accounting and Auditing firms in Davao City are almost dominated by female mangers with 18 counts or 60% and male managers with 12 counts or 40%.

Moreover, it was found out that out of 30 managers who had finished their bachelors degree, only 7 of 23.33% had taken their masters degree, surprisingly 0 counts had taken doctoral degree.

Additionally, 7 managers or 23.33% had worked with 5 and more companies; the same count is noted worked with 3 companies. 9 managers or 30% had worked with 2 companies and 1 count or 3.33% had only work with 1 company.

When group as to length of service, 15 counts or 50% had worked 21 years and above, 6 counts or 20% for 5 to 10 years, 5 counts or 16.67% had work for 11 to 15 years and 4 counts or 13.33% had worked for 16 to 20 years.

Lastly, data revealed that majority of the managers had attended the trainings enumerated, to summarize the following data is obtained: 1st- 27 or 90%, 2nd- 28 or 93.33%, 3rd- 22 or 73%, 4th- 26 or 86 .67%, 5th – 24 or 80%, 6th – 20 or 66.67% or 53.33, 8th- 19 or 43.33%, 9th 22 or 73.33% and 10th – 15 or 50%.

2. Level of Competence of Managers in Selected Accounting and Auditing Firms in Davao City.

The manager’s level of competence in 3

identified skill obtained considerably very higher rating. Accordingly communication skill obtained a rating of 4.51, technical skill with a mean of 4.48 and professional skill with a rating of 4.49, and an overall mean of 4.48. This observation means that managers posses a very high level of competence.

3. Significant Difference among managerial profile and the level competence of managers in selected Accounting and Auditing firm in Davao City.

When tested as to the extent of significant difference among managerial profile and

the level of competence of managers in selected Accounting and Auditing firm in Davao City, it was found out that significant difference was established when analyzed as to age. F-values of 6.14 with 0.00 level of significance is obtained, which lower than 0.05 alpha level of significance, thus hypothesis is not accepted..

When analyzed as to gender, 0.65 t- values is obtained with 0.42 level of significance lower than 0.05 alpha levels, hence hypothesis is accepted.

Moreover, when analyzed as to length of service, significant difference is established. F value 3.44 with 3.44 with 0.02 level of significance is obtained, this value is lower than 0.05 alpha level of significance, and thus hypothesis is rejected.

When analyzed as to educational attainment, t-values of 7.35 with 0.01 level of significance is obtained, this value is lower than 0.05 alpha level of significance. This observation rejects the hypothesis.

When analyzed as to experience, f-values of 2.61, 0.04 level of significance is obtained, this value is lower than 0.05 alpha level of significance, hence hypothesis is rejected.

Lastly, when data is analyzed as to number of training attended, it reveals that hypothesis is accepted, thus no significant difference is observed as it gained a 1.80 f – values with 0.09 level of significance higher than 0.05 alpha level of significance.

4. Significant relationship among managerial profile and the level of competence of managers in selected Accounting & Auditing Firm in Davao City.

To test the relationship between two variables, Pearson r of correlation is employed. It was observed that when analyzed as to age, Pearson r value of -0.11 with 0.11 level of significance is obtained. This means that hypothesis is accepted.

When group as to sex, Pearson r value of -0.07 with 0.21 level of significance is obtain this value is greater than 0.05 alpha level of significance. It denotes that significant relationship exist, thus hypothesis is accepted.

As to length of service, statistics show that the obtained Pearson r has a value of 0.01 with 0.45 level of significant and is higher to 0.05 alpha level of significance. Significant difference is therefore established and hypothesis is accepted.

Moreover, no significant difference is establish when analyzed as educational attainment and number of trainings attended, as it reveal a Pearson r value of 0.23 with 0.00 level of significance and 0.15 with 0.04 level of significance, this lead to the rejection of hypothesis.

Finally, when analyzed as to experience, it obtains a 0.08 Pearson r and 0.18 level of significance higher than 0.05 alpha level which accept the hypothesis.

ConclusionsOn the basis of foregoing findings, the following conclusions are drawn:

1. Older managers saturated Accounting and Auditing firms, Female managers almost dominated accounting and auditing firms, only few continued their education in master degree, 50 percent had gained competence by working for a long period of time, and managers put so much emphasis on trainings.

2. Managers obtained a very high rating of 4.48 which means they are able to project a very high level of competence.

3. Managerial competence of managers in selected accounting and auditing firm in Davao City significantly differs to manager’s age, length of service, educational attainment, and experience. On the other hand, sex and number of training shows no significant difference on managerial competence.

4. Managerial competence of managers in selected accounting and auditing firm in Davao City is significantly related and has a direct relationship to manager’s educational attainment and number of trainings attended. However, indirect relationship is observed between managerial competence and their age, sex, length of service, and experience; which means, it does affect the competence of managers.

RecommendationsOn the basis of foregoing findings and conclusion, the following recommendations are

offered:

1. Older managers dominated the managerial position in accounting and auditing firms, thus young ones are encouraged to be trained to fill managerial position on the future.

2. Very high level of competence is observed in the three areas of skills identified. Further study on the other field of competencies shall be done to further analyze the general competencies of managers and to help them exercise their profession competently.

3. Clientele and the community in general shall be educated that age, sex, length of service, experience does not have any direct relationship on the competence of managers.

4. Managers should update themselves by engaging to further education since their competence is best enhanced through this. Thus, educational institution should provide relevant education and program to update managers for the latest trend in business.

5. Necessary trainings and seminars should be designed to enable the managers be equipped with relevant knowledge and skills that would complement their profession.