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My position in an accounting firm can be determined as a strategic management accountant. The work of a management accountant includes not only the world of assets, passives, postings, and balances. A true professional is obliged to be guided in everything that concerns the organization’s activity, to be interested in economy, policy to trace the changes in the legislation, and to constantly upgrade qualifications.

Management accountant in the company is a materially responsible person and is accountable not only to the head of the department or the enterprise. Correct assignments of taxes are one of the most important elements of work; after all, serious sanctions up to imprisonment can be applied to lawbreakers.

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Thus, a modern management accountant is a person who plans future cash flows, estimates liquidity and investment appeal of the enterprise, analyzes the conditions of the financial currency markets, and follows developments at stock exchanges. “The purpose of the management accounting discipline is to aid managerial decision-making. Its role has traditionally been limited to the provision of relevant information for the purposes of planning, control and decision-making”.

The functional duties of the management accountant are:

1.  Tax and management accounting.

2. Drawing up of accounting policies of the organization.

3. Interaction with supervising organizations.

My tasks include timely paying of taxes, reporting to the state authorities, clients, and partners of the company, watching a state of the account of the enterprise, and reducing the balance to the uniform indicator. This work demands not only serious vocational training, but also a necessary qualification and leadership qualities.

Leadership is an administrative relationship between the head and subordinates, based on the effective combination of various sources of the power directed at the motivation of people to achieve common goals. Leadership style is the typical for a leader system of methods of influence on the members of a group (subordinated). There are three styles of leadership: authoritative, democratic, and anarchical.

Democratic style presupposes a joint discussion of problems, the head’s encouragement of initiatives of subordinates, and active exchange of information between the management and subordinates.

Democratic leadership style makes an emphasis on social psychological moments of management, orientation on a person, delegation of powers, group decision-making, encouragement of initiatives, adequate self-esteem, high morality, a full information, assistance to the subordinates, etc.

It is relevant to state that the role of a leader is executed by one person throughout the whole period of work of an informal group or a team. In some situations, an active leader focused on the performance of the task that employees have successfully accomplished is completely unnecessary. There are leadership substitutes who provide successful performance of set tasks if a leader is absent. Modern leaders understand that it is necessary to share a part of control to receive results; in other words, they act as instructors, not as bosses. Instead of considering leadership as a synonym for dictatorship, it may be defined as more subtle art connected with human activity.

Effective leaders possess an accurately structured system of the ideas based on the knowledge and the system of values, which can be completely and without difficulties perceived by followers. Moreover, training of new leaders in such organizations becomes a part of a corporate culture.

Garner (2002) states that “leadership facilitates the accomplishment of the work and develops the employee; non-leadership accomplishes the work at the expense of the employee. A leader inspires the employee to do his/her best to accomplish the tasks at hand; a non-leader drives or pushes the employee along. A leader assumes the obligations and consequences of the role; a non-leader will pass blame to others”.

Being the element of social interactions, leadership is a difficult activity which includes the process of influence of participants, both leaders and followers, a number of possible results:- not only purpose achievement, but also adherence of people to these purposes, interaction improvement in a team, and a change of the corporate culture.

The management of changes is the basic function of any leader. The leader is necessary where changes occur. In modern quickly changing economy, such situations occur continuously and quickly. It is unpredictable when and where the role of leaders will sharply increase.

The attributes of a leader are personal qualities which are the components of effective leadership. These attributes include a wide spectrum of characteristics, such as the system of values, character, motives, habits, characteristic features, competence spheres, style, behavior, and abilities.

A democratic leadership style does not interfere with the activity of the collective, a possibility of the individual and collective creativity.

Modern Leadership Theories

The theory of attributive democratic leadership

The given concept is based on the theory of attribution, explaining relationship of the cause and effect between what occurred and what people consider the reason of the occurred. The attributive approach to leadership recognizes that the conclusions of the leader as well as the behavior of the followers are caused by the reaction of the leader to the behavior of the former. Observing the work of the subordinates, the leader receives the information about how it is carried out. Depending on it, he makes conclusions about the behavior of each worker and chooses the style of behavior in order to react adequately to the behavior of the subordinate.

In search for the reasons the leader tries to receive three various types of information about the behavior of the subordinate, difference degree, sequence, and uniqueness degree.

The given model of attributive democratic leadership has essential differences from traditional models which are unduly descriptive and, the main thing, do not answer the question “why”.

The theory of charismatic democratic leadership

There are two opposite positions of the leader’s image. One denies any influence of the leader on organizational efficiency, and another one leads to leader charisma and attempts of the followers to attribute magic and divine qualities to the leader. Charisma is the form of influence on others by means of personal appeal, causing support and recognition of the leadership that provides the owner of charisma with the power over followers. As the source of leadership power, charisma concerns the ability of the head to influence subordinates due to personal qualities and style of management. Charisma offers the head advantages for making the impact on subordinates more effectively. Some people define charisma as a set of specific leader qualities. The former is the basis of the concept of charismatic leadership which is, as a matter of fact, a continuation of the concept of attributive leadership based on the combination of qualities and behavior of the leader.

The theory of transformative democratic leadership

The theory of transformative or reformative democratic leadership has a lot in common with charismatic leadership. The leader, may be also called reformer, motivates followers to be more conscious of importance and value of the task, granting the possibility to combine personal interests with an overall aim, creating a trusty atmosphere and belief of the followers in the necessity of self-development. The democratic leader-reformer is a converter, not a savior; he shows creativity instead of magic; his background consists of realities instead of myths, he leads followers to results instead of promises, focuses people on work instead of dividends; his purpose is not to change the world, but to change himself in the world through development.

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