Dick also had experienced difficulties with

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Dick also had experienced difficulties with accounting. When he became the plantmanager in Modrow, he learned the importance of the accounting department due to the constant
DICK SPENCER CASE11pressure he was under to reduce expenditures. During his first few months in Modrow, costs hadsoared without an end in sight (Buller & Schuler, 2003).On account of the modernization, short-term losses were to be expected (Buller & Schuler, 2003). Head office’s acknowledgement ofthis loss would partially and temporarily absolve Dick from accountability even though he stillfelt pressure. The following year, managers worked with their supervisors and accountants on thenext year’s budget.(Buller & Schuler, 2003). Dick recognized the importance of working oncosting procedures. However, without the support and knowledge of his former controller, hepreoccupied himself with tasks of low importance (Buller & Schuler, 2003). In this moment Dickshould have asked for assistance – but he did not. Dick was afraid to delegate. He was alsofearful of trying to understand what needed to be delegated. One day, he overheard twoaccountants talking about him:For a guy who’s a vice-president, he sure spends a lot of time breathing down ournecks. Why doesn’t he simply tell us the kind of systems he would like to try, and let us do theexperimenting and work out the budget? (Buller & Schuler, 2003).Dick wanted to be in control of the entire process, but he lacked the know-how andconfidence to direct his accountants. Once Dick had absorbed that conversation, he spent lesstime in the accounting department and became less directive (Buller & Schuler, 2003).Most micromanagers are insecure and controlling. Typically, they do not trust theperformance of their subordinates (White, 2010). Like many micromanagers, Dick was uncertainand doubtful of himself (White, 2010). He realized that he was clueless, insecure, and afraid ofbeing found out. In his previous managerial positions (with the exception of the Birminghamplant), Dick was not directly responsible for overseeing the accounting activities.InBirmingham, he relied heavily on his controller.The controller has an intuitive understanding of
DICK SPENCER CASE12accounting issues and is directly in charge of the accounting function (Vafeas, 2009). Theirresponsibilities include: financial accounting and reporting, costing and budgeting, accountinginformation systems and taxes (Vafeas, 2009). In Modrow, Dick lacked the knowledge andsupport that was necessary to make sense of the accounting documents.To be an effective manager, one must delegate.Since Dick had difficulties understandingaccounting, he was unable to delegate to his team. His managerial judgment had been clouded byhis strong sense of pride and his desire to control. In the interest of the company, Dick shouldhave gotten help, but he was afraid to acknowledge that the president may have been right; hewas not ready for a managerial position. For many years, Dick was aware of his weaknesses in

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Term
Fall
Professor
Bandy,K
Tags
Management, Marketing, Dick Spencer

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