CHAPTER ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
Business firms are established to achieve specific objectives. This may be to maximize profit or its shareholders wealth which is called the end point of planning (koontz. 1980:189). In the pursuit of these objectives, certain persons occupy positions of authority, and are charged with the responsibility or functions of planning, organizing, directing and controlling human and material resources and channeling such towards the actualization of the objectives. These persons are the managers. In its simplest definition, a manager is any person who gets things done through the efforts of others. (ulayi, 2007:21). In a typical organizational structure, there are three categories of managers. These are the top, medium and frontline managers. The first group makes strategic decisions by monitoring the external and internal environment of the firm, forecast operation, at the same time make long range plan. The medium level managers make tactical and intermediate plans on how to achieve plans made by the top management while the frontline managers are controllers of operations and implementations. They interact with the workers and understand their problems better. They also understand better the job problems and are also referred to as foremen and supervisors who perform the day-to-day supervisory functions and make adhoc plans to reach objectives at minimal cost (Okorie, 1993:62). Today’s complexity of business operations claims a leading authority in accounting, has placed users of information about firms in a much less knowledgeable position. Consequently, the necessity of keeping up with business date and other recorded information has not only posses a problem to accountants, but has also exerted great pressure on accounting as an information system (Davidson et al, 1979:11). Indeed accounting is an information system designed to convey relevant financial information to users. Managers also see non-financial information as relevant in solving their job problems, but they rely more on financial information which is maintained for the purpose of helping management in making decision about the use of economic resources, for eective control of the routing function (Davidson et al, 1979:16). Financial information provides frontline managers with budgets, forecasts, performance reports and variances with which to evaluate performance and take corrective actions. This research work will aim at evaluating the relevance of accounting information to frontline managers include; the identification of their jobs problems; causes of such problems and their information needs to solve their problem, the type and nature of information needed, its suitability and extent of usage; the claims of starvation of information; and managers perception of information and how they think their performance can be improved to achieve these, three (3).
1.2 STATEMENT OF THE PROBLEM
This topic “THE RELEVANCE OF ACCOUNTING INFORMATION TO FRONTLINE MANAGERS” was conducted to focus on most important problems facing the frontline managers. These problems include their inability to determine the actual cost of material acquired, quantity supplied and consequently the rate of turnover. A critical look at the managers in the contemporary times reveals that they are starved of relevant accounting information which will enable them carry out their jobs more effectively. But where such information are provided, they are seen as being so complex by the frontline managers, hence could not be used in computing how much is the actual cost of materials acquired, supplied and the rate of turnover Accounting information is a language with which financial data are communicated within and outside business establishments.