Symptoms
One cannot update the Manager field in AD using the Account Management Service. The NETBIOS and LDAP path is different i.e. NETBIOS = {Example} and LDAP = {LDAP://DC=DifferentExample,DC=LOCAL}
Diagnoses
This is a known issue with the software.
Resolution
The solution was the application of a coldfix and for that you will need to contact K2 support.