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MATRIC NO : 813076

NAME : Hafizah Binti Ab Rahman

TITLE : To what extend management accounting can add value for managers to execute their function.

LECTURER : Dr Mohd Azlan Yahya

MBA (ATC) SHAH ALAM

SEM 122

Table of Content

ABSTRACT....................................................................................................................................................... 2

INTRODUCTION............................................................................................................................................. 2

FINANCIAL PLANNING ACTIVITY.............................................................................................................................3NON FINANCIAL ACTIVITY......................................................................................................................................5

Workforce Management Report...........................................................................................................................5Call Recording Report.........................................................................................................................................6Quality Management Report...............................................................................................................................8Performance Management Report.....................................................................................................................10

CONCLUSION................................................................................................................................................ 10

References.................................................................................................................................................................11

Hafizah Abdul Rahman 813076 Management Accounting for Managers Page 1

Abstract

Management accounting can be defines as the process of preparing management reports

and accounts that provide accurate and timely financial and statistical reports which is also

known as a set of accounting that provides information for managers and other internal use. The

information gather from management accounting will be used by the managers in the

organization to perform their function effectively and efficiently in order to achieve organization

objectives and goals.

Introduction

This paper will explain on how the management accounting can add value for managers

in contact centre to execute their function specifically in call centre or contact centre

environment. A call centre or contact centre, also known as customer interaction centre is a

central point of any organization from which all customer contacts are managed. Through

contact centres, valuable information about company are routed to appropriate people, contacts

to be tracked and data to be gathered. Today, customers will contact companies by phone, email,

online chat, fax, instant message and social media to gather any information on the products and

services or to lodge complaints on any problems arise. For the purpose of this assignment, I am

looking at to the financial and non financial activity in Celcom (Malaysia) Berhad.


Financial Planning Activity

The utmost, the budgeting process is the crucial part for the Contact Centre management.

It is generally focuses on costs that are to identify the centre’s funding requirement for the

budget period, which is usually a year’s duration. Finance department will receives budget

proposal and if it approved, normally it will most likely eradicate all company profit for the

period, the first action is mostly to send all the budgets back with an instruction to reduce

requirement by a significant amount. This is where the negotiating process begin where the

managers in contact centres to proved that the Contact Centre is seen to generate greatest return

to the organization and also to improved customer service in the organization which to provide

best customer experience. For example, although the Contact Centre is also well known as a

resource centre or complaint centre, it is also the centre where company can generate income by

performing the upsell and cross sell activity which in the same time, revenue will be generated

base customer who accepted the offer.

By producing this kind of report will shown that Contact Centre can generate return to

the organization. From the budgeting process, it is useful for the managers to consider the role

and important of financial planning. To support above justification, below report is to be referred

which Celcom Contact Centre is not the place where agent is delivering the service requested by

the customer but they have an opportunity to approach customer to subscribe another value

added service which suit to customers’ current need. The revenue generated will be shown as

follows:-


Exhibit 1: Revenue Generated (RM) from Upsell Campaign

Financial planning for a Contact Centre creates a context for the budget process where it

is agreed in what direction the Contact Centre needs to go over a longer period and identifying

funding requirements over the period of the financial year. By producing a financial business

plan based on clear business objectives and delivering the benefits outlined in the plan, Contact

Centre is well placed to the benefit most from budgeting process.

From this context, variable and fixed cost is used to be example. Variable cost in

Contact Centre can be defined as cost that vary with output and activity, example salary and

telephone costs. To show that salary is being identified as variable cost when it involves the

forecasting of the call and scheduling of the manpower. If more call forecasted to be answered

on the specific month, total headcount also is to be considered. Normally, manager will decide

to increase the number of agent to answering as not to effect the service level, thus the total of

salary is to be paid to the group of bigger agent will incurred. While the fixed cost in can de

define as are expenses that don't change based on production or sales volumes. For example

building rental, its remaining fixed even if the numbers of call is to be answered by the agent is

increased.


Non Financial Activity

In order to ensure the decisions made by the managers are correct, below nonfinancial

reports has been identified as to determine the direction of the Contact Centre such as workforce

management, call recording, quality management and performance management. It will be

elaborated in the following paragraph.

Workforce Management ReportWorkforce Management (WFM) is basically the activities needed to maintain a

productive workforce, including payments and benefits, human resources planning, training and

development, time-keeping and attendance, recruitment and forecasting and scheduling.

Manager used this report for assigning the right employees with the right skills to the right job at

the right time to meet demand while optimising the scheduling of staff.

Manager used various types of reports from WFM department for scheduling the staff

base on the total forecasted call on the daily basis and how many agents needed to be on the floor

to perform Contact Centre activity. This is the most critical report to be provided as if failure in

staff scheduling will result failure in Contact Centre service level. The calculation of the number

of staff required must be carried out sufficiently in advance to allow for the needed to recruit and

train new staff. By creating optimized employee schedules, it also improves service levels and

reduces costs. Beside, time-keeping or time sheet and attendance are to be track in daily basis

and yet at the end of the month this is to be used for preparing agent’s salary which the basic

salary and the overtime is being calculated.


Exhibit below shown Daily Dashboard Report which explained on the headcount

required based on the call forecasted in daily basis in Celcom Contact Centre.

Exhibit 2 : Daily Dashboard

Call Recording ReportCall recording is a system that records every call that comes in and the managers to

analyse them on an agent or subject level to identify area for immediate improvement such as

whether it is a training issue, a process issue or the product issue. It is also can be used as a real-

time analysis and the actions leading from it. Agent performance also can be improved as a

result of the identification of training needs. From the report, managers are able to determine

whether agent is performing well on many areas whether it will give more impact to customer or

to organization as well.

The accuracy of the transaction between agent and customer also can be track from the

call recording report. It is also can be used as a tool for manager to evaluate on the poor

response to sales and marketing campaigns or product launches can be identified quickly based

upon detailed analysis of specific areas. Effectively, the call recording and the analysis from it


can be use by the managers who can oversee the entire operation in right away, which is vital, as

managers need something to monitor the agent and on the same time to prove compliance. On

the same time, call recording will helps manager to understand the types of call received and to

improve the processes.

Exihibit 3 : Call Recording Report


Quality Management ReportTo improve customer satisfaction, Contact Centre needs to provide high quality of

service. Excellent quality control results by providing products and services become more

confident. However, the quality control would depend on the enthusiasm of employees, or more

seriously, will affect customer satisfaction.

For Celcom Contact Centre, we have setting the target of 85% on the first call resolution

is to be achieved. Meaning that, agent is to ensure information is delivered to the customer

accurately from the start and transaction requested is being done correctly. From the customer’s

prospective, feedback from them will be measured as a benchmark and the target has been set at

75% exit poll rating which means SMS will be sent out to get feedback from customer either

they satisfied or not with the service rendered by the agent.

From the quality management report, managers’ are able to determine which transaction

done by the agent gives impact to end-user critical error accuracy, business critical error

accuracy and compliance critical error quality. With the various type of report from quality

management, it is managers’ duty to performed evaluation for quality improvement.


Exihibit 4 : Outbound SMS Survey Report

Exihibit 5 : Quality Management Report


Performance Management ReportPerformance management is a key to a success for each of the organizations. It is also a

key competent of increasing results, motivating teams and building talented individuals. In our

current situation, the mangers are no longer being the team’s system expert, but need to create a

people-centre environment, needs to be both facilitator and inspirers provide their team with

support to grow rather than controlling the team members. The performance of agent is to be

tracked base on average handling time, the accuracy of transaction being performed as per

customer request and resolving 80%of customer issue on the first call. This is where the manager

is playing their important role by looking at the report and their responsibility to assist and to

help agent to meet their performance. Teamwork is a foundation of a successful management.

Managers have a very difficult challenge to manage their own team. The primary objective is to

improve to maximise the individual performance, by implementing the understandable

performance management, measurable and visible, agent and management will strive to improve

on their results.

ConclusionTo conclude on how management accounting can add value to the managers on how to

execute their works, Contact Centre managers are required to balance customer satisfaction with

financial and non financial activity as explained before. To survive and excel in this ever

changing environment, with today’s increasing focus on corporate earnings and internal costs,

Contact Centre managers must know how management accounting and financial accounting

practices work and how they can reflect and guide real and perceived performance. In other

hand, the managers should be wise in decision making in both financial and non financial, so that

the managers can maintain the level of outstanding performance in Contact Centre as a whole.


References1. Natalie Calvert (2008). Gower Handbook of Call and Contact Centre Management

ISBN 0-566-08510-0

2. "Call Centre" Wikipedia: The Free Encyclopedia. 18 January 2013

3. http://en.wikipedia.org/wiki/Call_centre

4. http://www.strategiccontact.com/pdf/CC_Cost_WP.pdf

5. http://www.voicecyber.com/07web/en/product/CPCe_5.html

6. Celcom (Malaysia) Berhad ,Revenue Generated (RM) from Upsell Campaign

7. Celcom (Malaysia) Berhad, Daily Dashboard Report

8. Celcom (Malaysia) Berhad, Call Recording Report

9. Celcom (Malaysia) Berhad ,Outbound SMS Survey Report

10. Celcom (Malaysia) Berhad, Quality Management Report


http://www.voicecyber.com/07web/en/product/CPCe_5.html

http://www.strategiccontact.com/pdf/CC_Cost_WP.pdf

http://en.wikipedia.org/wiki/Call_centre

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