Paper F1

Accountant in Business (AB)

1. THE BUSINESS
ORGANISATION
 The need for organisations

Organisations are social

arrangements for the
controlled performance of
collective goals

Organisations use systems

(e.g. swiping in when All organisations pursue
Two or more people working entering office) and certain goals and these are
together in a structured way. procedures (e.g. cash considered to be over and
handling rules) to regulate above individual aspirations
staff behaviour

Profit seeking organisations
Main objective is wealth maximisation
which can be expanded into
• to continue in existence (survival)
• to maintain growth and development
• to make a profit
Types of organisation
Not for profit organisations
Do not see profit as their main
objective
• seeking to satisfy particular needs of
their members or the sectors of
society that they have been set up to
benefit
• include hospitals, charities,
government organisations and mutual
organisations
 The roles of organisational
functions

Departments and
their roles
Production –
Services – Marketing – Purchasing-
Finance – converting
customer product acquiring R&D–
financial Admin – supplies into
HR –dealing services, design, input developing
reporting, back office finished
with staff dealing with pricing, materials and
treasury and supporting goods and
issues complaints distribution and improving
management functions adding value
and and negotiating products
accounting in the
enquiries promotion trading terms
process
 Planning Levels

Strategic
•Long term
•Looks at the whole organisation

Tactical
•Medium term
•Looks at the department/divisional
level

Operational
•Short term
•Concerned with the day to day
running of the organisation
2. ORGANISATIONAL
STRUCTURE
 Different Structural Types
Type Rationale
Entrepreneurial Typical in small owner
managed companies.
Functional Departments are based on
common specialisation.
Best suited to companies
operating in a stable
environment with few
products.
Divisional Each product or group of
products set up as a
separate division.
Geographical Activities are grouped
according to location.
Matrix A combination of the
functional and divisional.
Dual reporting lines
 Centralisation/Decentralisation

Centralised structure Decentralised structure

The upper levels of an organisation’s
hierarchy retain the authority to make
decisions
The authority to take decisions is
passed down to units and people at
lower levels. Can lead to extra costs in
obtaining information
Better motivation due to increased
training and career path
3. ORGANISATIONAL
CULTURE
 Organisational Culture
A set of
norms of
behaviour.
Formal and
informal rules

Organisational
Culture

A set of
Symbols and
shared values
symbolic
and dominant
actions
beliefs
 Handy’s cultural Types
Power Task
Found in smaller Project based, creative
entrepreneurial work
organisations Nothing is allowed to get in
One major source of the way of achieving the
influence (the founder) goals

Role
Person
Common in bureaucratic
organisations (e.g. Built around educated and
Government) articulate individuals –
specialists with a common
Emphasis on position interest
within the hierarchy
 Schein – 3 levels of culture

• The aspects of culture that can be

Artefacts easily seen e.g. the way that
people dress

Espoused • The strategies and goals of the

organisation including company
values slogans etc.

Basic • difficult to identify as they are

assumptions unseen and exist mainly at the
and values unconscious level
 Hofstede - 5 cultural traits

Individualism Power
Uncertainty
v collectivism distance

Masculinity v Confucianism
femininity v dynamism
2.LEADERSHIP, MANAGEMENT
AND SUPERVISION
 Theories of management

Classical • Taylor
theories • Fayol

Human
relations • Elton Mayo
school

Modern • Mintzberg
approaches • Drucker
 Authority, responsibility and
power concepts
• Authority is a legitimate right to give
orders
• Responsibility is an obligation placed on
a person to fulfil a task
• Power is an ability to exert influence.
Sources can be legitimate, reward,
coercive, referent or expert
• Delegation is a process of transferring
authority to a subordinate
 Leadership

Trait Theories –
Early studies
focused on
personality

Contingency
Transformational Theories – No
Theories – focus one leadership
on change Leadership style is right for
management every set of
Bennis , Heifetz circumstances
Fiedler, Adair

Behavioural
Theories – focus
on human
relationships
Blake and
Mouton,
Ashridge
5. INDIVIDUAL AND GROUP
BEHAVIOUR IN BUSINESS
ORGANISATIONS
Individual and Group Behaviour

Individual
or
team/group

Passive Behaviour Aggressive

Assertive
6. TEAM FORMATION, DEVELOPMENT
AND MANAGEMENT
 Teamwork
• A team is a formal group, it has a
leader, a distinctive culture and is
geared towards a final result
• The purpose of a team is to solve
complex problems
• Teams provide synergy, cooperation
and coordination of activities
 Team v Group

Team Group

• Share a common • Interests change

goal frequently
• High level of • Membership is often
commitment temporary
• Team spirit • People negotiate
• Healthy competition and accommodate
• Can be multi skilled • Politics is common
or multi disciplinary
 Team Theories - Belbin
Leader Co-ordinator
Shaper Promotes activity -
dominant
Plant Thoughtful and thought
provoking
Monitor evaluator Criticises other ideas
Resource-investigator Extrovert, networker
The company worker Administrator, organiser
The team worker Concerned with
relationships within the
groups
The finisher The progress chaser
The expert As required by the project
Team theories - Tuckman

Forming

Storming

Norming

Performing
7.MOTIVATION
 Overview of Motivation
• Motivation is the internal psychological
process of initiating, energising,
directing and maintaining goal directed
behaviour (Buchanon and Huczynski,
1997)
• It is the urge to achieve goals or the
drive to excel
• Satisfaction on the other hand is about
being content and not seeking new
achievements
 Content theories of Motivation
• Maslow’s hierarchy of needs –
individuals have a hierarchy of personal
needs that can be satisfied in a set
order of priority in the workplace
• Herzberg two factor theory – hygiene
factors deal with non-job related
features e.g. working conditions,
policies and procedures. Motivators are
mostly non financial and will encourage
people to work harder
 Maslow’s hierarchy of needs

Self • Challenging job, creative task

fulfilment demands, achievement in work

• Merit pay increase, high status

Ego
job title

Social • Compatible work group,

friendships at work

• Job security, fringe

Safety/Security
benefits

• Basic salary, safe

Basic/Physiological
working conditions
 Herzberg’s two factor theory of
motivation

No longer
Dissatisfied and H
dissatisfied but M
Satisfied and
demotivated not yet motivated
motivated
 McGregor’s Theory X and Y
Theory X
• Human beings have an
inherent dislike of work and
will avoid it if possible
• People must be coerced,
controlled, directed or
threatened with punishment
to get them to contribute
towards organisational
objectives
• People prefer to be directed,
wish to avoid responsibility
and want security above all
else
Theory Y
• Physical and mental effort in
work is totally natural, people
not only accept but seek
responsibility.
• Staff will exercise self
direction and self control to
achieve objectives to which
they are committed
• People possess a high level
of imagination and creativity
in the solution of
organisational problems
 Process Theories
• The Vroom expectancy model
• Force = Valence x Expectancy
• Force is the strength of a persons
motivation
• Valence is the strength of an individual’s
preference for an outcome
• Expectancy is the probability of success
 Incentive Schemes
• Reward systems should attract and
retain staff, encourage desirable
behaviour and reflect the nature of the
job
• Financial motivators include salary and
bonus
• Non financial motivators include
feedback, participation and autonomy
8. INFORMATION
TECHNOLOGY
 Information and Data
• Data is a collection of symbols, raw
facts and transactions that have been
recorded but not yet processed. It could
be quantitative or qualitative
• Information is data that has been
processed in such a way that it
becomes meaningful
• Information is used for decision making
at the strategic, tactical and operational
levels
 Qualities of good information

Accurate

Easy to Complete
Use

Good Cost
Timely information effective

Understa-
Adaptable ndable

Relevant
 Computerisation
• Intranet
• Extranet
• Database
• Spreadsheet
 Sources of information
• Internal information includes customer
records, employee records, inventory
and product specifications
• External information includes invoices,
letters, statements from 3rd parties etc
• External information can also be
obtained through marketing research,
legal updates and government data
 Types of information system

Transaction Management Executive

Decision Support Expert System
Processing System Information System Information System
System (DSS) (ES)
(TPS) (MIS) (EIS)
•Looks at individual • Converts data from •Concerned with •Modelling tool which •For e.g. Bank loan
transactions TPS into information monitoring business requires significant approval
•Routine reporting • Used by middle results and general expertise to use •Contains a
e.g. Payroll management business conditions •Performs what if knowledge database
•Used by junior •Generates ad-hoc • flexibility in data analysis •Can be used at any
management reports reporting, including •Supports semi management level
•Concerned with •Concerned with drill down facility structured and •Relies on a set of
recording and basic monitoring •Includes data from unstructured rules to solve a
processing performance and internal and external decisions problem
coordination sources •Includes statistical •Can be used to
•Used by senior instruments automate manual
management processes
9.POLITICAL AND LEGAL
FACTORS
 Political Factors
Political environment includes:
• the political system and ideology
• the role of the government in the
economy
• the risk of political instability
• foreign trade relationships
Political systems operate on a global,
national and local level
 Legal Factors

Data Health and

protection safety

Employment
law
10. MACROECONOMIC
FACTORS
 Economic factors
• Microeconomics is the study of the
economic behaviour of individual
consumers, firms and industries
• Macroeconomics considers aggregate
behaviour and the study of the sum of
individual economic decisions.
 Factors affecting the level of
business activity
• consumer and business confidence in
the economy
• aggregate demand:
AD = C + I + G + X – M
• availability of capital
• use of resources such as technology
• government policy on spending and
taxation
• exchange rate movements
 Trade Cycle
• A series of fluctuations in the rate of
growth of real (inflation adjusted) GDP
over its long-run trend
• Recession
• Depression
• Recovery
• Boom
• Government tries to smooth pattern out
 Key economic terms
• Economic growth
• Inflation
• Unemployment
• Balance of payments
• Fiscal economic policy
• Monetary policy
11. SOCIAL AND
TECHNOLOGICAL FACTORS
 Social Factors
• Population (e.g. birth rate and growth)
• Wealth (e.g. high disposable income)
• Education (e.g. skilled staff thrive in
knowledge economy)
• Health (e.g. obesity, HIV)
• Cultural trends (social structure, buying
patterns, values, attitudes, tastes)
• Affected by government policy
 Technological factors
Impact of technology on:
• organisational structure (e.g.
downsizing, outsourcing)
• products (e.g. sophisticated features)
• production processes (e.g. automation)
• society (e.g. ecommerce, home-
working)
12.COMPETITIVE FACTORS
 Competition – Porter’s generic
strategies
• Cost leadership: to become the lowest
cost producer and enjoy a superior
margin
• Differentiation: demanding a premium
for perceived added value of the
product
• Focus: Serving a niche market
Being ‘stuck in the middle’ is a recipe for
disaster
 Porters 5 Forces

Threat of
New
Entrants

Power of Competitive Power of

Buyers Rivalry Suppliers

Threat of
Substitutes
 Porter’s Value Chain – primary
activities
Activity Description
Inbound logistics Receiving, storing and handling raw
materials
Operations Transformation of raw materials into
finished goods
Outbound logistics Storing, distributing and delivering
finished goods to customers
Marketing and sales Market research and the 4 P’s
Service All activities occurring after the point
of sale e.g. training, repair
 Porter’s Value Chain – support
activities
Activity Description
Firm infrastructure How the firm is
organised
Technology How the firm uses
technology
HRM How people contribute to
competitive advantage
Procurement Purchasing, not just
limited to materials
13. STAKEHOLDERS
 Stakeholders

Internal

Connected Stakeholders External

Conflict
 Mendelow’s stakeholder
mapping

Low

Minimal Keep
Effort Informed
Power

Keep Key
Satisfied Players
High
Low Level of Interest High
14. COMMITTEES IN
BUSINESS ORGANISATIONS
 Committees
A committee is a group of people officially
delegated to perform a function and
who are given appropriate authority.
Types of committees:
• Ad-hoc
• Standing
• Sub-committee
• Joint
 Types of Committees continued
• Executive
• Steering
• Work safety
• Ethics
• Audit
• Remuneration
15. BUSINESS ETHICS
 Business ethics
• Ethics is the analysis of right and wrong
and associated responsibility
• Business ethics is the systematic study
of moral matters pertaining to business,
industry or related activities, institutions
or practices and beliefs
• Two approaches to ethics, either a
compliance-based approach or an
integrity based approach
 Code of professional conduct
ACCA’s code of ethics:
• Integrity
• Objectivity
• Professional competence and due care
• Confidentiality
• Professional behaviour
16. GOVERNANCE AND
SOCIAL RESPONSIBILITY
 Board of Directors
• At least half of the board should
comprise independent non-executive
directors (NED’s) who do not engage in
day to day execution of management
decisions
• NED’s contribute to strategy
formulation, monitor performance
reporting, ensure robust financial
controls and determine executives
remuneration
 Corporate Governance
• The system by which companies are
directed and controlled
• UK – Combined Code is principles
based, company must ‘comply or
explain’
• USA – Sarbanes Oxley is rules based
(i.e. law) with personal liability of
company officers
 Social Responsibility
• Social responsibility is a duty to all
stakeholders of the company to make
decisions in such a way that takes into
account the interest of the environment
and society as a whole
• Benefits include, attracting customers,
reducing operational risks and retaining
employees
17. LAW AND REGULATION
GOVERNING ACCOUNTING
 Regulations covering
accounting function
Responsibility to:
• Companies House (for filing of
accounts)
• Tax Authorities (e.g. HMRC for VAT,
PAYE)
• Financial Services (e.g. stock exchange
for listed co’s)
• Office of national statistics (e.g.
business statistics)
 Bodies governing the
accounting function
• International Accounting Standards
Committee foundation, parent entity of:
• International Accounting Standards
Board (IASB)
• International Financial Reporting
Interpretation committee (IFRIC)
• Standards Advisory Council (SAC)
 Other bodies
• Accounting Investigation and Discipline
Board (AIDB)
• Financial Reporting Review Panel
(FRRP)
• Professional Oversight Board for
Accountancy (POBA)
• Recognised Supervisory and Qualifying
Bodies (e.g. ACCA, ICAEW)
18. THE ACCOUNTING
PROFESSION
 The role of accounting within
the business
• Not a ‘stand alone’ function
• Interacts with other departments and is
one of the central functions of business
• Financial information is a fundamental
requirement in decision making
 Purpose of accounting function
• Produces financial information that will
be used to make decisions
• May be produced for users outside the
company e.g. sales invoices, financial
statements
• May be produced for users inside the
company e.g. ledgers, cost information
19. ACCOUNTING AND
FINANCE FUNCTIONS
 Modern accounting function
Structure of accounting function:
• Financial Accounting (maintaining
books and records, preparing accounts)
• Management Accounting (appraisal,
budgeting)
• Treasury (cash management, tax
affairs)
• Auditing (reviewing financial reports and
internal controls)
 Recording of transactions

Ledger Financial
Transactions Day Books
accounts statements
20. FINANCIAL SYSTEMS AND
PROCEDURES
 Financial Procedures
Stages in:
• Sales cycle
• Purchasing cycle
• Wages cycle
• Cash system
• Inventory system
 The purpose of organisational
control
Purpose Why important
Safeguard company’s assets If assets are stolen or damaged the
company will have to spend money to
replace them
Efficiency Inefficient business practices are a
waste of the company’s money
Prevent fraud Fraud means the loss of valuable
resources belonging to the company
Prevent errors Errors can lead to losses in efficiency
(time spent correcting) or a loss of
assets (e.g. paying for goods that
weren’t received)
21. THE RELATIONSHIP OF
ACCOUNTING WITH OTHER
BUSINESS FUNCTIONS
 Coordination between accounting
and other business functions
• Establishing credit terms
Purchasing • Monitoring payments

• Cost measurement and overhead allocation

Production • Budgeting

• Recruitment and training expenditure

HR • Reward plans, tax efficient benefit packages

• Systems design and development

IT • Improving access to information

• Pricing additional services

Customer Services • Assessing costs of product failures

• Advertising budgets
Marketing • Product pricing
 Marketing
• Defined by the Institute of Marketing as
‘the management process that
identifies, anticipates and supplies
customer needs efficiently and
profitably’
• Key emphasis on customer needs
• Marketing research, product
development, distribution and promotion
all important
 Marketing Mix

• This includes product features, durability,

Product design, brand name, packaging, warranties and
guarantees

• Choice of distribution channels, transportation,

Place outlet management, stocks and warehouses

• Advertising, personal selling, publicity, sales and

Promotion promotion techniques

• Price levels, discounts, allowances, payment

Price terms and credit policy
22. INTERNAL AND EXTERNAL
AUDIT
 Internal and External Audit
• Internal auditing is an independent
activity, established by management, to
examine and evaluate organisational
risk, management processes and
control systems and make
recommendations for improvements
• External auditing is an independent
examination of the financial statements
to see whether they give a true and fair
view of the company’s affairs
 Internal and External Audit -
differences
Internal Audit External Audit
Roles Advises management on Provides an opinion to
the strength of internal the shareholders on
controls and protecting whether the financial
the organisation against statements give a true
loss and fair view
Legal Basis Not a legal requirement, Legal requirement for
but highly recommended most companies and
by The Combined Code public bodies
Scope of Work Determined by Determined by auditing
management standards
Approach Evaluates and Tests items and
recommends transactions in the
improvements to controls financial statements
Status Company employees Independent
accountants
23. INTERNAL FINANCIAL
CONTROL
 Internal Controls
Internal Control is a process designed and initiated by
management to provide reasonable assurance about
the achievement of the entity’s objectives with regards
to:
• reliability of financial reporting
• effectiveness and efficiency of operations
• compliance with laws and regulations

Internal controls are checks on day to day transactions.

They are managements responsibility.
 Components of Internal Control
Control • Overall attitude of management to internal
Environment controls

Risk assessment • How the company identifies and responds to risk

process

Information • Procedures to process transactions and maintain

Systems control over assets, liabilities and balances

• Policies to ensure management directives are

Control Activities carried out

Monitoring of • Assessment of internal control performance over

controls time
 Categories of Internal Control

Authorisation

Physical Comparison
Controls

Internal
Controls
A ccounting Computer
Reconciliations Controls

M aintaining Arithmetical
a trial balance Controls
 Types of Control

• segregation of duties
Preventative • screening of new personnel

• reconciliation
Detective • supervision

• data back ups

Corrective • follow up procedures
24. FRAUD
 Fraud
• Fraud is an intentional act involving the
usage of deception to obtain an unjust
or illegal advantage. It is a criminal
offence
• Prerequisites include: dishonesty,
motive and opportunity
• Fraud could be committed by
management, employees or third
parties
 Examples of fraud

Management • window dressing

fraud • misappropriation of assets

Employee • teeming and lading

fraud • skimming schemes

Third party • false billing

fraud • advance fee fraud
 Implications of fraud
• Company collapse
• Adverse publicity
• Reduced profits
• Qualified audit report since financial
statements do not give a true and fair
view
• Distorted performance results make it
hard for managers to make business
decisions
 Responsibility for preventing
fraud

• Required by the combined code to maintain a

Directors sound system of internal control

• An implied duty to act honestly and report

Employees suspected actual fraud
• Specific duties in employment contract

External • No duty to find fraud but may act as a deterrent

• If financial statements materially affected by
Auditors fraud, audit report will be qualified
 IT systems security
Risks to data:
• Human errors
• Technical malfunction (e.g. systems
crash)
• Natural disasters (e.g. fire, flood)
• Sabotage or espionage
• Malicious damage
 Principles of data security
• Use individual and complex passwords
• Secure communication channels (e.g.
fire walls)
• Back up information on a regular basis
• Have a contingency plan
• Physical security for documents
• Policy on suspicious emails
25. RECRUITMENT AND
SELECTION
 Recruitment and selection
• Recruitment is the process of
generating a supply of possible
candidates for positions within an
organisation
• Selection is choosing from a number of
candidates the one most suitable for the
specified position

Importance of R&S
• New recruit will be technically
competent and able to perform the job
• Effective R&S reduces the need for
retraining
• Employee will bring in ideas and
enhance productivity
•Candidate will get on well with
existing team
•Process will comply with legal
requirements reducing employee
disputes
Recruitment process
Consequences of poor R&S
• High staff turnover
•Wasted advertising budget
•Loss of management time dealing
with unsuitable candidates
•Costs and demoralising effects of
dismissal
•Increased workload on existing staff if
new recruit makes mistakes
• Potential effect on efficiency of
operations
 Job Analysis
• The process of collecting all relevant
information about the position
• This information is then summarised
into:
1.Job description
2.Person specification
3.Job evaluation
 Selection Process
Selection tools include:
• Interviews
• Tests (e.g. aptitude, proficiency)
• Assessment centres
• References from previous employer
 Types of Interview
• Face to face
• Successive Interviews
• Group interviews
• Panel interviews
 Equal opportunities and
Diversity
• Equal opportunities is normally
delivered through legislation which is
aimed at giving all people an equal
chance to be treated fairly in all aspects
of employment
• Diversity relates to valuing everyone as
an individual and recognising the
differences as contributing factors of
business success
 Equal Opportunities legislation

• Aims to eliminate differentials in pay and terms and conditions

Equal pay of employment between people in similar positions

• Prohibits discrimination on the grounds of sex and marital

Sex discrimination status. Identifies four forms of discrimination: direct, indirect,
victimisation and harassment

Racial • Outlaws discrimination on the grounds of colour, race, ethnic or

national origin. Exemptions include genuine occupational
discrimination qualifications

Disability • Companies must make a reasonable adjustment to

accommodate special requirements of disabled staff
discrimination
Age • Prohibits unjust age discrimination, removes compulsory
retirement age
discrimination
26. REVIEW AND APPRAISAL OF
INDIVIDUAL PERFORMANCE
 Appraisal
• Appraisal is a regular and systematic
review of performance and assessment
of potential with an aim of producing an
action programme to develop both work
and individual
• Its purpose is to review performance,
potential and pay
 Objectives of appraisal
From organisational point of view
• Establishes the results staff are
expected to deliver
•Identifies training and development
needs
•Encourages communication
•Aids personnel planning
•Creates a supportive organisational
culture
From individual point of view
•Determines future promotional
activities
•Gives recognition for work well done
•Serves as a basis for increase in
remuneration
•Formal opportunity to ask for
guidance
•Chance to contribute to goal-setting
process
 Barriers to effective appraisal
• Appraisal seen as a confrontation
• Appraisal seen as a judgement
• Appraisal seen as just a chat
• Appraisal seen as bureaucratic ‘form
filling’
• Appraisal just an annual event, no
substance
• Appraisal just looks at recent events,
ignores everything else
 Features of an effective
appraisal system

Relevant

Fair Participative

Appraisal
system

Serious Efficient
27. TRAINING, DEVELOPMENT
AND LEARNING
 Learning

• Undertaken deliberately when individuals

Formal consciously ‘learn’ and ‘study’
• Highly structured

• Usually intentional but not highly structured

Informal • Examples include self-directed learning,
networking, coaching and mentoring

Incidental • A by-product of some other activity, e.g. learning

from mistakes or trial and error
• Learning may be taken for granted, tacit or
learning unconscious
 Kolb’s experiential learning
theory
Experience
(planned or
accidental)

Active Observation and

experimentation reflection (actively
(trying out learning thinking about the
in another situation) experience)

Abstract
conceptualisation
(generalising from
reflections)
 Honey and Mumford’s learning
styles
• open to new experiences
Activists • ‘hands on’, enjoy teamwork and role-plays

• prefer to observe others before taking action

Reflectors • Cautious, likely to adopt a ‘low profile’

• need to understand underlying principles

Theorists • Learn best in a classroom environment

• keen to deal with real situations

Pragmatists • learn best ‘on the job’
 Training, development and
education
• Planned and systematic modification of
behaviour through learning events which
Training enables individuals to achieve a high level of
knowledge, skills and competence

• Growth of a person’s ability and potential

Development through learning and educational experiences

• Process of developing knowledge, skills and

Education character required in all aspects of life
 Stages in training and
development
Identifying
training and
development
needs

Follow up- how

successful is the Training
training planning
programme?

Implementation
of plans
 Features of a Learning
Organisation
• adapts to change
• encourages questions and
experimentation
• sees mistakes as part of learning
• supports risk-taking and initiative
• knowledge shared openly and willingly
• people committed to continuous
professional development
28. IMPROVING PERSONAL
EFFECTIVENESS AT WORK
 Preparing a personal
development plan
Stage 1 - analysis of current position,
strengths and weaknesses and areas for
development

Stage 2 – setting goals to cover:

performance in the existing job and future
changes in the organisation and role

Stage 3 – Draw up an action plan to

achieve the goals
 Effective time management -
influences

Culture

Management Colleagues
Style influence

Time
management

Nature of the Staff

work demands

Individual’s Individual’s
personal skills personality
 Barriers to effective time
management

Barriers Ways to overcome

barriers
•Frequent interruptions •Be assertive
•Unpredictable nature of the •Distinguish between urgent
job and important
•Having to travel long •Multi-task
distances •Focus on effectiveness
•Bureaucratic procedures •Promise yourself a reward
•Putting things off on completion
 Coaching, counselling and
mentoring
• Trainee is put under the guidance
Coaching of a more experienced member of
staff

• Problem solving, helping people to

Counselling help themselves

• A more senior employee supports

Mentoring and guides the trainees through
personal and career development
29. EFFECTIVE COMMUNICATIONS
AND INTERPERSONAL SKILLS
 Communication process

Response Sender

Decoded Encoded
message message

Receiving
the Medium
message
 Effective communication

Barriers to effective communication Ways to overcome the barriers

•Different cultures and languages
•Noise and distortion
•Information overload
•Assumptions and prejudice
•Conflict between individuals
•Provide training on cultural
awareness
•Choose the most effective
communication channel
•Prioritise and focus
•Be open minded
•Rise above the differences
 Communication patterns
1. Centralised:
• Wheel
• Chain
• Y
2. Decentralised:
• Circle
• All channels