The Air Company and the Position of Accountable Manager - Coursework Example

A manager who is answerable and accountable for all his acts to another authority or some other person holding some higher rank or position is called an accountable manager. The authority to which such manager is accountable is generally the authority setting the regulations governing and directing the actions of such manager. Such person is also deemed to have some authority provided by the organization. The authority must be enough to allow him to carry out all the operations effectively and efficiently. He must also be given some powers regarding the necessary financing that may be required to carry out the desired activities. The accountable manager is usually considered to have some position in the Board of directors or other equivalent body of the company. This allows him a more close connection with the owners of the company. So, the objectives set by the Board of Directors contain an opinion on his part. It also assists him further to understand the objectives fully and other underlying requirements of these objectives. The presence of a person in setting objectives makes such manager more accountable as the objectives are set with full collaboration of such manager. However, larger organizations usually consist of more than one units who either dependent of each other or independently work to achieve the desired results and objectives. The regulations for each of these units are also different. So, different accountable managers are appointed for all these units who supervise the work of these units. These managers are accountable to their respective Regulatory body. Usually, accountable managers are solely responsible for the accomplishment of desired objectives. However, the tasks are not carried out by them alone. A large number of subordinates are involved and it is inevitable for the accountable manager to rely upon the work of subordinate managers. However, these subordinates are responsible to report to the accountable manager about their work. The Accountable manager is after all responsible for their own work s well as the work of their subordinates. Because of such greater responsibility, the accountable managers are not given any other task which they are capable of carrying out. The reason is that the focus is not diverted to any other work which is less important than the primary job of such manager. In case of companies which carry out air operations, the accountable manager is responsible to the regulatory body, either within or outside the company, for all the operations which are undertaken by the service provider of air navigation, airplane operator, airport operator or by any organization responsible for the repair and maintenance of aircrafts. This certainly builds up greater responsibility on such managers. Other responsibilities of such managers include flight training, flight operations, quality assurance of flight services and ground operations. DUTIES OF AN ACCOUNTABLE MANAGER: Due to the significance of the responsibilities and duties of accountable manager, it is very important that this position should be vested upon on any person who holds a significance position in the organization. Generally, The President, Vice President, Chief Executive, Managing Director or any other person carrying the similar position suit to such post. However, it is considered necessary that the person holding the post of accountable manager must have sufficient financial and executive authority that he may comply with the requirements of organization in respect of seeking of approval. The duties of accountable manager encompass all the duties vested on him either by the relative legislation or by the Regulatory body. It also includes the duties which are supposed to be done by him under the scope of his job. Main duties of accountable manager are as follows: 1. Compliance with relevant regulations: The compliance of the organizational procedures with the relevant laws and regulations governing the industry is the prime responsibility of Accountable manager. Some companies are strongly governed by the internal regulations. So, it is also the responsibility of the accountable manager to analyze the compliance of the organization with such regulations also. In case of Air company, it is the prime responsibility of the accountable manager to analyze the compliance of the company with regulatory requirements that are attached with the business of air. The service of the aircraft company and the condition and status of aircrafts should be viewed closely. In case any default, he is not only accountable to the organization but also answerable to all the regulatory bodies and authorities. 2. Monitoring of Quality: The second basic duty of the accountable manager is to monitor the quality of the services provided by it. This may be done by organizing, supervising and managing all the activities of the organization. It also includes the contracting arrangements undertaken by the company. The scrutiny of all contracting and sub-contracting arrangements is also undertaken by the accountable manager. A number of contracts and sub-contracts are arranged between two or more Air companies. However, the arrangements are to be undertaken by the accountable manager of the company. The provision of quality service is also the duty of the accountable manager. He is also primary responsible for the management and supervision of all such activities. 3. Direction of Proper Quality Control Setup: It is also the responsibility of accountable manager to develop a setup for quality control. He must then direct this setup for ensuring and enabling the maintenance of services in accordance with the relevant regulations and requirements of the manufacturers and the organization itself. The accountable manager in Air company is responsible for ensuring that the services provided by the company as well as the aircrafts conditions are checked on regular basis. It is also required to be ensured that there is a proper setup which is regularly used by such company for ensuring quality control. 4. Providing Staff: It is also the duty of the accountable manger to provide the necessary staff and personnel for successful accomplishment of the work. The staff must be well trained and qualified and should be eligible for doing such work. The staff may be, for instance, well trained pilots, Aviation engineers containing degrees for such qualification etc. 5. Providing Finance: One of the most important duties of accountable manager is to manage for the finance required to complete the task. The provision of finance to a particular section at appropriate time is also his duty. The finances required for maintenance of aircrafts, for training of staff and for other purposes will all be provided by such manager and he will be accountable for the provision and use of such finances. The last mentioned duty is considered to be the most important duty of the accountable manager. It also helps to judge the capability of the manager regarding the management and provision of finance. This opens a new field for such manager in which he should have a sufficient expertise. The field is known as ‘Financial Management’. FINANCIAL MANAGEMENT AND ACCOUNTABLE MANAGER: “The accomplishment of the financial objectives of a company through management of finances available with the company is known as financial management.” It is one of the most important duties of an accountable manager to manage the finances. The process of financial management consists of three basic elements; financial planning, financial control and the financial decision making of the company. 1. Financial Planning: The first step towards financial management is the financial planning. The accountable manager is required to judge whether adequate funding is available for fulfilling the tasks. In either case, he is then required to plan and manage the finances among the investments in equipments, payment to employees and funding of sales. 2. Financial Control: The second element of financial management is financial control. It involves the critical evaluation of the capability of business to meet its objectives. It involves the evaluation of the usage of all fixed and current assets. 3. Financial Decision Making: This is the key element of financial management. It really tests the eligibility of the accountable manager to handle financial resources and using these in the best interest of the company. The accountable manager must emphasize two aspects while making financial decisions. Firstly, the way in which finances have been obtained. There may be a number of alternatives from which one may be chosen depending on the financial position of the company. The investments may be raised either by borrowing money from banks or by issuing new shares. Secondly, the accountable manager must decide whether the profits earned should be held in business or distributed to the shareholders in the form of dividends. So, the holder of the position of accountable manager strongly relates to financial management. The accountable manager must plan the financial resources of the company in order to efficiently use them. The planning and decision-making may, among other matters, include the allocation of aircrafts for services, the time period after which these are required to be taken through overhauling process, the appointment and allocation of pilots and aviation engineers and the allocation of the finance obtained from public. Conclusion: So, the position of accountable manager is very important and significant in carrying out the desired objectives of the Air Company. So, the person for this post should be selected after due consideration. The person who may held himself responsible for the tasks undertaken by him on behalf of the company should be appointed for the post of Accountable manager. References: 1. Skybrary, 2010. Accountable Manager. [Online] (Updated 18 August 2010) Available at: [Accessed 10th May 2011]. 2. Airworthiness Advisory Circular, 2001. Accountable Manager. [Online] (Updated 12th Feb 2011) Available at: [Accessed 10th May 2011]. 3. Business Dictionary.com. Financial Management. [Online] Available at: [Accessed 11th May 2011]. 4. Economy Watch. Financial Management. [Online] Available at: [Accessed 11th May 2011]. 5. Guidance for those nominated as an AOC Accountable Manager. The Accountable Manager. [Online] Available at: [Accessed 11th May 2011]. 6. Tutor2u. What is Financial Management. [Online] Available at: [Accessed 11th May 2011]. 7. Wikipedia. Financial Management. [Online] Available at: [Accessed 12th May 2011]. 8. Q- Pulse, 2011. Accountable Manager. [Online] Available at: [Accessed 12th May 2011]. Read More