Internal control system Administrative control Characteristics of an effective internal control system Limitation of Internal control Difference b/w

internal and external auditor It is the whole system of controls financial and otherwise it is establish by the management in order to reduce the risk or fraud, error, safeguard of Internal control system Administrative control Characteristics of an effective internal control system Limitation of Internal control Difference b/w internal and external auditor It is the whole system of controls financial and otherwise it is establish by the management in order to reduce the risk or fraud, error, safeguard of CAT T5 - [Managing people and system] (Sir Subhan Mirchawala) Note: Do not need to write in essays - you can write in point format (just refer to the past year papers answer by the examiner) & read the examiner article in Marc h 2010 which indicates that list of points is what is expected by the examiner Section A is not need to write notes for. Read Book for Section A Carefully. SECTION B: Chapter 5 . . Accounting control . . . Internal checks . Pre list . Post list . Control total . .

. Types of Control Internal control System: asset, adherence to management policy and to ensure that the accounting records and information is adequate and complete. Accounting control: .Bank reconciliation .Control account Control which are related to accounting records. Administrative control: Control related to the administration is called administrative control

Setting up of budgets, computing variance, preparing report these all are management control. Supervision: One person becomes responsible and he monitors the activities. Organization as a control: Organization is itself as a control, the structure of the organization should be design in such a way which minimize the risk of fraud and errors Arithmetic and accounting control: Bank reconciliation Control account reconciliation Trial balance Personnel Control: Recruitment and selection When recruiting the employees or assigning the task to them ensures that Setting up of budgets, computing variance, preparing report these all are management control. Supervision: One person becomes responsible and he monitors the activities. Organization as a control: Organization is itself as a control, the structure of the organization should be design in such a way which minimize the risk of fraud and errors Arithmetic and accounting control: Bank reconciliation Control account reconciliation Trial balance Personnel Control: Recruitment and selection When recruiting the employees or assigning the task to them ensures that Eight type of internal control: SPAM SOAP Segregation of duties: TO divide the duties among the workers to minimize the fraud Physical control: Lock doors gates, strong bones all are the physical controls Authorization and approval: Each and every transaction must be authorize and approve. Management Control: the employees are technically competent. There is no best internal control system the best is one which fulfill the requirement of the organization. It is not computed to adopt all of 8 types of internal control Internal checks: Prelist: The list which is drawn before the work is actually started. Post list: The list which is drawn during or after the work.

Control total: The sum of one document should be equal to the balance of other documents.

Characteristics of an effective internal control system. . Segregation of duties . Qualified personnel . Everything is dated . Everything is documented . Everything is signed . Proper maintenance . Periodic reviews . Pre-reviews, post reviews . Customer signature Limitation of internal controls: . Segregation of duties become useless when there is a collision between personnel. . Authorization and approval is useless when a person misuse its authority. . Management normally overwrites the internal controls which they setup themselves. Audits: External: An audit is an independent examination of the financial statements and to express an opinion whether the financial statement present true and fair view. Internal: Internal auditing is an appraising or monitoring activities established within an entity, established by an entity to provide services to the entity. Internal auditor should not involve those activities which are going to appraise by him. Internal auditors get the authority from the top management.

Difference b/w External and internal Auditors: . Internal auditor is an employee of company External auditor is not an employee. . Internal auditor is appointed by management. External auditor is appointed by share holders. . Internal auditor report to management External auditor report to share holders .Internal auditors work is define by management External auditors work is define by the Law .Internal auditor is relate to the internal operation External auditor focused on the financial statement. .It is not mandatory for internal auditor to be the member of professional bodies. External auditor must be the member of professional bodies.

Chapter 6 FRAUD Chapter overview Fraud Categories of fraud . . Potential for fraud . Dishonesty . Motivation . Opportunity What happens? . . Business risk Personnel risk Assessing the risk of fraud . External factor . Internal factor Removal of funds or Asset from business Intentional misrepresentation of financial statement When the results are stated When the results are understated Potential from computer fraud Who is responsible? .BOD .Auditors ----------------------------------------------------

Collision with the customer, supplier Disposal of fixed asset lower than the market rate Service not received but paid Intentional misrepresentation of financial statement: (The fraud which is done by director with shareholders) how to overstate the profit overstatement of sales overstatement of closing stock overstatement of other income manipulation of year end events understatement of purchase Removal of funds or asset from business Profit will be lower than expected Working capital cycle is affected. Intentional misrepresentation of financial statement: Collision with the customer, supplier Disposal of fixed asset lower than the market rate Service not received but paid Intentional misrepresentation of financial statement: (The fraud which is done by director with shareholders) how to overstate the profit overstatement of sales overstatement of closing stock overstatement of other income manipulation of year end events understatement of purchase Removal of funds or asset from business Profit will be lower than expected Working capital cycle is affected. Intentional misrepresentation of financial statement: FRAUD: There is no legal definition of Fraud, doing something wrong with intension. Categories of fraud: There are two broad categories of fraud. Removal of fund or asset from thee business (Fraud which is done by employee or manager with in an organization) . Theft of cash . . Theft of stock . . Payroll fraud . . . . . . .

Impact of frauds: . . If the results are overstated: More tax will given Share price will increase . . . . . Dividend will be decrease If the results are understated Dividend will be lower paid Share price will be decrease . Less tax will be given Potentials for fraud: Dishonesty . Personal factor . Cultural factor Motivation Opportunity

Assessing the risk of fraud: Internal factor: . Hiring new employees . Delaying . New product, new technology External factors: . Analyzing the environment . Check out in which sector you are in Business Risk: . Gross profit margin increase . Share price increase . Market confident increase/decrease . Demand is increase suddenly Personnel factor: . Expensive life style( it is just an indicator) . Long hour working . Undertaken holidays . Low moral . Autocratic management System for detection and prevention of fraud: Read [SPAM SOAP] Who is responsible? In limited liability companies the BOD, management, internal auditors are

responsible for the introduction of internal control, minimizing the risk of fraud.

Payment for idle hours Gross salary and net salary same Converting adverse variance into favorable. Control: . . Chapter 7 Improving control procedure Chapter overview: Sale cycle Purchase cycle Payroll cycle Cash cycle Objectives Frauds Controls Payroll: It is the formal system that how to company pay remuneration to its employees. Fraud in payroll cycle: . Overstatement of number of hours . Changes in the rate/hour . Absent but recorded as present . Overstatement of cheque . Ghost employees . Fraud in advances . Working in normal time writing as overtime . Unit not produce but recorded . Collision with guards . Employees are not punctual .

. Segregation of duties. Physical control . Attendance sheet . Clock card . Arithmetic and accounting control . Bio-metric control . When employee are working thy are supervised . Personnel control . Management control . Comparison between b/w budgets . Vouching signatures . Every thing should be documented

Competitive prices Check on purchase return Discount should be properly recorded .Inspection officer should be hire . front. . Competitive prices Check on purchase return Discount should be properly recorded .Inspection officer should be hire . front. . Order of low quality material Not considering competitive price Low qualities goods are received which are not ordered. Over/under statement of goods Bogus supply, goods order for personal use. Collision b/w purchase department and warehouses Authorization and approval Everything should be documented Dated signed by authorized person Pre-reviews, post-reviews Compare purchase budget with the production budget . Periodic reviews . Pre-list, post-list and compare with each other. Purchase cycle: It is the formal cycle that how the company purchase raw material from its suppliers. Risk of fraud in purchase cycle: . Overstocking . Collision with suppliers . . . Artificial delivery . .

. Over invoicing . Tax fraud . Fraud in discount . Raw material stolen . Over payment . . Controls: . Segregation of duties . . . . . .

. . When you are preparing the cheque, purchase order and GRN should be in Material should be supervised. Sale cycle: It is the formal function of company how to sale to its customers.

Risk of Fraud in sale cycle: . Goods delivered without any order . Fake order forum . Bogus supply of goods . Collision with customers . Overstatement of sales

Risk of fraud in cash cycle: Cash stolen Overpayment .Cash received not recorded .. . Risk of fraud in cash cycle: Cash stolen Overpayment .Cash received not recorded .. . . Changes in sales . Discount Fraud . Sales tax . Low quality material delivered . Over/under goods supplies . Teaming and lading . The customer has paid you but writing him as bad debt. . Over/under invoicing . Increase in selling price per unit . Delivering goods to fake address . Credit sales without any authorization . Low quality goods return Control: . Segregation of duties . Supervision . Gate pass

. Cameras . Quality inspection . Implementation of company policy . All the sales should be authorize and approved . Reconcile the debtor control a/c with personal control account . Physical control . Comparing production budget with the sale budget . Only cross cheque should be accepted and should be on company names. . Cash should not be received . Constant selling price . Credit rating should be check . Customer should not cross the limit . Provision for the bad debt should be properly recorded. Cash cycle: It is the formal system hoe the company receives or pays cash. . . Mishandling of cash Cash receive in personal a/c Payments are not authorized . No limit are specified .

Collision with the bank managers . Taking the cash for the personal use . Company is not paying on time . Artificial cash overstatement. Controls: . Segregation of duties . All the payments should be authorized . Strong bones and lockers

. Limit should be specified . Supervision . Properly security when the cash is moving from the organization to bank. . Periodic bank reconciliation . Maintenance of the petty cash float input . Always receive and pay through cross system cheque

CHAPTER 8 Management Information & Reporting system CHAPTER OVERVIEW . Data .Information .Quality of good information .Why an organization need information .Planning .Control .Decision making .Information requirement varies from level to level .Budget .MIS (Management information system) .Cost centre .Profit centre .Performance measurement Comparison is possible b/w: .Different companies .Different products .Different areas .Different periods .Deferent departments .Actual and budget

regulatory and professional MIS (management information regulatory and professional MIS (management information DATA: Data is raw fact and figure

bodies system) bodies system) e.g. purchase day book, sale day book.

Information: Data when it is processed it becomes information which become meaning full. Qualities of good information: It should be accurate, reliable, complete & authorize. Why organizations need information? For planning, control and decision making you want information. Information requirement varies from level to level: The information which is relevant for senior management may be irrelevant for operating core & vice versa. Sources of information: Internal External There are some internal sources: . Payroll . Timesheet . Production department . Invoices . Day book There are some external sources: . Newspaper . www . libraries .

Different components working together to analyze generate, record or distribute information which is helpful for management is known as Management information system (MIS) ------------------------------------------xxx-------------------------------------------

CAT T5 - [Managing people and system] (Sir Subhan Mirchawala) Note: Do not need to write in essays - you can write in point format (just refer to the past year papers answer by the examiner) & read the examiner article in Marc h 2010 which indicates that list of points is what is expected by the examiner SECTION C Chapter 9 Leadership, management and supervision Overview: Authority and responsibility The role of management The role of supervisor The role of leader Leadership skills and styles. Power: Ability to get things done. Sources of power: Coercive power: Authority of power that is dependent on fear, physical force or punishment. Reward power: A person has this power by virtue of some contacts excess over some valuable resources. Legitimate power: It come from chair and goes with chair. Expert power: It comes with the experience knowledge and qualification. Referent power: By possession of a personality or a person impress someone by force of personali ty. Negative power: The power which is used to disturb operation is called negative power such as strike.

When a manager transfers his own power, authority to its sub ordinates and remains accountable, this is what delegation. Why a manager delegate? .He wants to reduce his stress. .For training and development .He want to motivate his employees .He want to reduce his work load .Some time complexity of the organization How to delegate? .Specify the performance and checkout the person. .Formally assign the task and gain the agreement .Allocate all the resources and gave him some authority .Back off and allow him to so the work .Maintain contacts and regular feedback. When to delegate? .Consider the confidentiality When a manager transfers his own power, authority to its sub ordinates and remains accountable, this is what delegation. Why a manager delegate? .He wants to reduce his stress. .For training and development .He want to motivate his employees .He want to reduce his work load .Some time complexity of the organization How to delegate? .Specify the performance and checkout the person. .Formally assign the task and gain the agreement .Allocate all the resources and gave him some authority .Back off and allow him to so the work .Maintain contacts and regular feedback. When to delegate? .Consider the confidentiality Ability of the sub ordinates Can interest be placed Quality of decision Problem of delegation. .Burdon of accountability .Lack of trust . . Authority: It is the right to get things done. (Position power) Responsibility: Responsibility is a liability when you give surety that the work will be done. Greater the authority greater will be responsibility. Accountability: It is an obligation when a person is answerable to hi superior. When you have to justify your action is what accountability. Delegation: .

Moral of the employees . . . A desire to stay in touch Feeling threatened.

How to overcome these problems? . Give your employees some training and development . Better communication channel . Reduce control . Clear lines of authority and responsibility should be defined.

They ignore humans wish, will and wants. how to manage peoples. . They ignore humans wish, will and wants. how to manage peoples. . Management: Getting things done by people what management. Henry Fayol (classical school): Function of a manager . Planning . Organizing . Coordinating . Commanding . controlling Planning: Setting objectives and targets setting budget for future. Organizing: Arrange the job into manageable activities and task. Coordinating: To reconcile the activities to mash the activities harmonizing the work. Commanding: To give order and instruction so that employees or subordinates start their actu al work. Controlling: To compare the actual performance with the plan with the budget. If there is som e derivation take necessary actions. What are the key concepts of classical view of management? Other concepts: (June 2005) .Motivation was not mentioned because he was classical theorist because classical school emphasized or processes, resources and efficiency . . Early managers were technically very competent but socially incompetent . Managers were taught each and every thing but they were not taught hat Treating employees like a machine is not a recipe of either harmony or friendliness in the workplace.

Elton Mayo: (Human relation school) Dont follow myth, follow scientific way How to study this?? Let take an example: Western Electric Co. (U.S) Product: RELAY Normal production room Special testing room Modern School: (Peter Drucker) Function of the management: .Setting of objective .Organizing .Motivation .The job of measurement (controlling) .Developing people It is the responsibility of manager to bring out the potential of the employees. Rosa Beth Moss kantar: (when giant learn to dance) She put some impossible incomparable demand over those managers and organization those how are bureaucratic and traditional but they want flexibilit y through innovation. Work all hours but keep fit Henry Mintzberg: (Managers Role) . Figure head . Leader . Liaison

A business manager plays ten different roles in business organization. Figurehead: (ceremonial role) The one who welcome the guest at business, lunch, parties and dinner. Leader role: The one who motivate the employees and hire and fire the employees. Liaison role: The one who listen the outside customers Monitor role: He studies and controls the environment Disseminator: The one who spread the information and policies A business manager plays ten different roles in business organization. Figurehead: (ceremonial role) The one who welcome the guest at business, lunch, parties and dinner. Leader role: The one who motivate the employees and hire and fire the employees. Liaison role: The one who listen the outside customers Monitor role: He studies and controls the environment Disseminator: The one who spread the information and policies Spokes person: The one who represent the company or the one who give briefing in the meeting Entrepreneur: The one who take the risk when launching the product or investing Negotiator: . Monitor . Disseminator . Spokesperson . Entrepreneur . Negotiator . Disturbance handler . Resource allocator Roles: Roles are different hats people wear in different situation and in different situation and different circumstances The one who does table talk or the one who bargain or negotiate with the supplier or union

Disturbance handler: The one who deal with the uncertain situation, events Resource allocator: The one who allocate resource to different departments and divisions

Supervisor: Supervisor is a manager but at the lowest level. He is an interface a connecting link a community link b/w middle line and operating core. He does day to day operational planning. He is relating with bread and butter work. He does technical work. He is a gatekeeper. He will perform all the function of management at the lowest level. Leadership: Overview Leadership Vs management. Leadership skills Trait school Assumption Limitation Style school Tennenbaum Ashridge Model Rensis likert Blake and moutons Managerial Grid Contingency school Charles Handy Heresy and Blanchard Leadership: Leadership is an interpersonal influencing activity to help people aim achieving their objectives by their own wish. Leadership Vs management: .Mangers have subordinates whereas leaders have followers . Managers have short term view whereas leaders have long-term view. . Managers use their position power corrosive power whereas leader use their personality power. . Managers are selected on their skill, education and qualification whereas leaders are selected on the perception of other or though election . Management can be exercised over non-personal things whereas leadership can only be exercised over people . Managers are builders whereas leaders are architects

The difference is useless because successful management without leadership is useless and leadership without is good for nothing. Why manager should be a leader? Manager cannot perform his duties successfully without leadership quality. Trait school: Leaders are born in centuries but not made in factories Leaders are born not made. Certain qualities are absolute necessary for effective leadership. These traits were common in the part successful leader. Limitation of the trait school: .The list is so worst vary and contradictory. .A person cannot posses all the characteristics we have a mix or balance of characteristics. .If the person possessed all the characteristics, then he will be labeled as Superman . A person cannot become a leader by virtue of some characteristics but these characteristics must have relevant relationship with the followers, with the task, technology, organization, norms and culture. Style School: (Tennenbaum and Schmidt) Dictatorial: The leader takes the decision and h enforces them to punishments. Autocratic: The leader takes all the decision and he announces them. Democratic: The leader presents the problem listen to his sub ordinates but he takes the decision at the end. Leizez Fiere: The subordinates are allowed to take their own decisions. Ashridge Management college Models: Tells (Autocratic): The leader takes all the decision which must be obeyed without any question.

The leader has no trust or confident over his subordinates he imposes decision, he never delegates and he motivates by thread. Benevolent authoritative: The leader has only superficial trust over his sub ordinates. He imposes decision never delegate, he motivate through rewards. Participative: The leader has little trust or confidence over his subordinates, he presents the problem gather ideas from sub ordinates but controls decision making. He motivates through participation. Democratic: The leader has complete confidence over his subordinates and he has The leader has no trust or confident over his subordinates he imposes decision, he never delegates and he motivates by thread. Benevolent authoritative: The leader has only superficial trust over his sub ordinates. He imposes decision never delegate, he motivate through rewards. Participative: The leader has little trust or confidence over his subordinates, he presents the problem gather ideas from sub ordinates but controls decision making. He motivates through participation. Democratic: The leader has complete confidence over his subordinates and he has Sells: The leader presents the problem gather ideas from the subordinates but has the final say. Joins (Democratic): The leader and subordinates both take the decision on the basis of consensus. Results: In an ideal world people prefer consult style of leadership they had a most favorable attitude. Consistency is far more important than adopting any leadership style. Rensis Likert: Exploitative authoritative: allowed his subordinates to take their own decisions.

The manager is lazy he is neither interested in production nor in people need Task: Almost total concentration is on the task peoples needs are virtually ignored. Country club: First priority is given to the people and rather low priority to the task. Team: Team is an extreme situation, is an ideal situation it achievable, it is possible when the members are highly committed. The manager is lazy he is neither interested in production nor in people need Task: Almost total concentration is on the task peoples needs are virtually ignored. Country club: First priority is given to the people and rather low priority to the task. Team: Team is an extreme situation, is an ideal situation it achievable, it is possible when the members are highly committed. Middle of the road: (pendulum style) Balancing the need of production as well as people. The Grid is a management development tool. The manager can assess his own performance as well as his sub-ordinates performance. Contingency School: (Charles Handy) There is no one ideal leadership style the best leader is one which fulfills Blake and moutons Managerial Grid: Improvised: the requirement of situation. There are some contingent factors which should be considered while adapting any leadership style. Change the leadership style as the situation changes Charles Handy: According to the Charles handy there are three facts which should be considered while adopting any leadership. . Leader/leaders own personality . Subordinates whether the have to control or not . Task (Demand of the task either its sensitive or routine)

Henry Blanchard: S1: If the followers are unable and unwilling, adopt telling style. S2: If your followers are unable but willing, adopt selling style S3: If your followers are able but unwilling, adopt participating style S4: If your followers are able and willing, adopt delegating style.

Negative aspects of groups: No one is individually accountable No one is individually responsible .. Negative synergy Negative aspects of groups: No one is individually accountable No one is individually responsible .. Negative synergy Chapter 10 Individual and group behavior Groups Formal groups

Informal groups Groups: Group is the collection of individuals which shared objectives and goals. In a group there is sense of identification, interaction b/w members. There is a manager who is ultimately responsible for the activities. Formal Groups: Formal groups are designed by organization for a particular task; members are formally selected, formal rules and regulations, formal channel of communication. The manager is ultimately responsible. Informal group: informal groups are loosely structured between pair workers; co-workers the schismatic members influence. Positive aspects of groups: Positive synergy follow chapter 1 . . As the group size increases, individual efforts decreases Group norms: Behavior which are normal in the group Positively reinforced: When they are excepting show them rewards and praise Negative reinforced: Show them punishments.

Like minded people when taking the decision is what polarization. Culture: Topics overview: Organization culture: Culture can be understood at three different levels. Like minded people when taking the decision is what polarization. Culture: Topics overview: Organization culture: Culture can be understood at three different levels. Group cohesions: Sun of all the forces or force of attraction between the members, which bind the members. Group cohesion is positive key factor for the effectiveness of team working. A very cohesive group is dangerous because: . Outsiders are considers as enemies . Decision making is disturbed . Chances of fraud . Labor turnover rate Group polarization: Observable Value & belief Assumptions

Importance of organization culture Culture and structures Culture: The values transferring from one generation to another, the way we do things round here. Culture is the collective program of the mind which distinguishes the members of one category to another. What shape the organization culture? The founder The history Leaders and managers The environment

Culture can be understood at three different levels: . Observable (from dressing and language) . Values and belief . Assumption What shapes the organization culture? Founder: The person who startup the organization. If the founder is strong no matter he gets the retirement or he is dead the values still remain in practice. History: The time when the organization is incorporated Leaders and managers: The leaders and managers they also set culture. The environment: The organization is an open system Importance of organization culture: .Identification .It brings unity .It motivates .Cultural values can be used as reward .Cultural values can replace rules and regulations .Culture can bring a change in organization Cultures and structures: (Charles Handy) .god Zeus .god Apollo .goddess Athena .god Dionysus god Zeus: (Power culture) .Small organization .Young organization .Few no: of employees .Direct communication with all of its employees .Authority centralized .Few rules and regulations

god Apollo: (Role culture) Complete bureaucracy god Athena: (task culture) When the performance is judge on the basis of output (Adhocracy). This culture is an expensive culture because there is need to hire experts and experts demand the market price. god Dionysus: (person culture) In this culture the individual is not working for organization interest but he is working for his own personal interest. And the business is based on his talent. In such organizations these are few job and low level jobs. Role culture: (Bureaucracy) god Apollo: (Role culture) Complete bureaucracy god Athena: (task culture) When the performance is judge on the basis of output (Adhocracy). This culture is an expensive culture because there is need to hire experts and experts demand the market price. god Dionysus: (person culture) In this culture the individual is not working for organization interest but he is working for his own personal interest. And the business is based on his talent. In such organizations these are few job and low level jobs. Role culture: (Bureaucracy) The organizations having a role culture has a formal structure and operates by w ell established rules procedures. Individuals are required to perform these jobs ful l but not over step of boundaries of their authority.

Personality: Topics overview: Personality: Personality trait Personality types Personality clashes With the task With system Management and culture With other personalities How to solve these clashes Change the job Negotiate Fire Perception: Process of perception: The context Nature of stimuli Some internal factors Misperceptions happen between: Manager and staff Different work cultures Different races religion and sex Human brain taken as example of stimulation and reaction Perception: Perception is the physiological data in which incoming sensory data is analyze or is processed and it gives meaning to individual is called perception Perception is a unique picture which is quite different from reality, what the world really is, but how sees the world. Process of perception: The context: People see what they want to see. Things which are relevant in situation influence the situation. Nature of the stimuli: Our attention is automatically divert to large, bright, loud, unfamiliar and moving items

Some internal factors: Our need and interest also influence our perception. Personality: Personality is the stable pattern of characteristics, stable pattern of motion, feeling, attitude, behavior shown by individual. Self image: What a person of himself, where you stand in your eyes. People want response from the world in accordance to their self-image Personality trait: List of characteristics qualities by which we can differentiate between different individuals. Personality type: The associated characteristic automatically comes under the head of particular type. Personality clashes: .With task .With system management culture .With other personalities How to solve these clashes? .Switch the person to another job .Negotiate, let him understand the problem, nature .Incompatible personalities should be outside of the team.

Chapter 11 Team management Chapter overview: TEAMS: Multi disciplinary team Multi skilled team Self managed team Virtual team Belbins Team roles Neil Rackham and terry Morgan: How do people contribution? Tuckman: Stages of team management Wood cock: Blockages and building blocks Effective Vs Ineffective team How to reward an effective team How to build: Team identity Team solidity Commitment toward shared objective How to reward an effective team: Profit sharing scheme Group sharing scheme Group bonus scheme Employee share option scheme Team: Team is a collection of individuals with complimentary skills who hold themselves mutually accountable.

Multi disciplinary team: All the members are specialized and they are from different backgrounds. There are no backup roles available. Multi skilled team: People are multi skill and they can perform any of the group task, backup and substitute are available Self managed team: People are highly mature, self disciplined peoples, they set their own rules and regulation, it saves managerial cost, they solve their own conflict. Virtual teams: Team which doesnt physically exist but it wok like a physical team. For such team information and communication technology is must. How to reward an effective team? .Profit sharing scheme and xyz percentage of profits an effective team .Gain sharing scheme, the percentage of a surplus gain is given to the team members. .Group bonus scheme .Employee share option scheme. Schemes are offered to an effective team at lower than the market price. Effective Vs Ineffective team: Effective team . High productivity . High quality . High motivation . Low conflict . Labor turnover low Ineffective team . Low productivity . Low quality . Low motivation . High conflict . High labor turnover rate How to build a team? . Name . Badge . Uniform

. Separate space . Special vocabulary

How to build team solidity? . Express solidity . Be loyal with team . Reduce conflict among the members . Reduce competition among the members . Reduce group bonus scheme How to make people more committed? . Clarify the objectives . Attached rewards .Allow them to participate .Give them regular feedback Belbins team roles: (9 roles) 1. Plant 2. Resource investigators 3. Coordinator 4. Monitor evaluator 5. Shaper 6. Team worker 7. Implementer 8. Completer/ finisher 9. Specialist According to Belbin in an ideal team, there should be a mixed balance of roles and not necessary nine members. . Motivate team Plant: Person who solve difficult problem and very creative Resource investigator: Person who develop contacts. The resource investigator is the executive who is never in his room, and if he is, he is on the telephone. Coordinator: The one who clarify the goals and coordinate the activities Monitor evaluator: The one who judges accurately. The monitor evaluator is not deflected by emotional arguments, is serious minded Shaper: The one who overcome the obstacles and barrier in the way of effective team working

Team worker: The one who listen to every one, build the relation and he is a cheerful person. Implementer: The one who convert ideas into reality Completer/finisher: The one who complete the task and delivery on time. The completer finisher dots the is and crosses the ts. He or she gives attention to detail, aims t o complete and to do so thoroughly. They are not so interested in the glamour of spectacular success. Specialist: The specialist provides knowledge and technical skills which are in rare supply within the team. They are often highly introverted and anxious and tend to be self-starting, dedicated and committed. Two additional roles given by Belbin .Team role .Functional role Team role: How you deal with other politeness, trust and your interpersonal role. Functional role: The technical knowledge which is demanded by job Neil Rackham and Terry Morgan: Peoples contribution: .Proposing . Supporting . Seeking information . Giving information . Attacking . Defending . Open behavior . Shutdown behavior . Bringing in behavior . Testing, understanding and summarizing

Provide information to another member Attacking: They put difficulty and are totally disagreed Defending: They support Open behavior: They dont take either side Shutdown behavior: They just end up the conversation Bringing in behavior: They startup the conversation again Provide information to another member Attacking: They put difficulty and are totally disagreed Defending: They support Open behavior: They dont take either side Shutdown behavior: They just end up the conversation Bringing in behavior: They startup the conversation again Proposing: The one who put forward the suggestion Supporting: The one who support other persons proposal Seeking information: Asking fact and figures Giving information: Testing, understanding and summarizing: All the arguments are listened and the decision is then make Tuckman: Stages of the team development: . Forming . Storming . Norming . Performing . Dorming . Mourning/Adjourning

Forming: The team is just coming together, no body knows each other. Every body wants to impress each other, the objective is not clear, no body knows about the organization norms Storming: Less open conflicts between members and this is fruitful stage Norming: Every thing is settle down, the objective is clear, the leader is clear Performing: Now the team has actually started his work Dorming: When the team has been working successfully for a periods then the members attention is change toward the personal interest at the expense of the task. Adjourning/Mourning: The team is dissolved and this is the stage of sadness and confusion, also this is the stage of celebration because the task has been achieved WOOD COCK: Factor: .Leadership . .Feedback .Members .Methods Blockages: .Inappropriate style .Not giving .Roles are not defined .ineffective Building Block: .adopt a proper leadership style .giving regular feedback .define the roles .adopt effective method

Chapter 12 Motivation Chapter overview: Motivation +ve motivation - ve motivation Reward and incentives Extrinsic reward Intrinsic reward Feedback as motivator Motivational feedback Development feedback Management style as motivator Theory X Theory Y Pay Job Job Job as motivator enrichment enlargement rotation

Job satisfaction William Ouchi Theory Z Context school Abraham Maslow Herzberg McClelland (Need theory) Process School Victors Vrooms Equity theory Handys motivation Calculus Discipline +ve discipline -ve discipline Self discipline Disciplinary procedure Informal talk

In an orderliness state or an acceptable behavior or a sensible conduct which is in accordance with the goal of the organization Positive discipline: Also called constructive discipline, when the organization system equipment is designed in such a way that the employee has no other option but to act on the desired manner. Negative discipline: When the employee has the option to go wrong but later will be punished, fired and there will be sanction. Self discipline: It is the best discipline found in mature people. When the employee In an orderliness state or an acceptable behavior or a sensible conduct which is in accordance with the goal of the organization Positive discipline: Also called constructive discipline, when the organization system equipment is designed in such a way that the employee has no other option but to act on the desired manner. Negative discipline: When the employee has the option to go wrong but later will be punished, fired and there will be sanction. Self discipline: It is the best discipline found in mature people. When the employee Oral warning Written warning Suspension Denotation Dismissal Factor to be consider during disciplinary actions Immediacy Impersonality Advance warning Fairness Privacy Consistency Discipline: think by his own about the organizations rights Disciplinary situations: .Irregularity .Punctual .Behavior .Sleeping on duty .Living . Involved in fraud . Violation of rules . Intoxication . Embezzlement . Arrestment Disciplinary procedure:

. Informal talk . Oral warning

Always the same action should be taken (consistency) Fairness (just treatment) Advance warning (the person must already informed) Privacy ( the case should be kept confidential) The manager will welcome you and he will explain you the Without any personal emotion he will let you know about behavior that how it is affected our organization The manager will explain the organizations future expectation Now the employee will comment and justify himself The organization might change his policy The manager will put a penalty The manager will explain him organizations appraisal procedure Always the same action should be taken (consistency) Fairness (just treatment) Advance warning (the person must already informed) Privacy ( the case should be kept confidential) The manager will welcome you and he will explain you the Without any personal emotion he will let you know about behavior that how it is affected our organization The manager will explain the organizations future expectation Now the employee will comment and justify himself The organization might change his policy The manager will put a penalty The manager will explain him organizations appraisal procedure . Formal written warning . Suspension . Demotion . Dismissal (fire him) Factors to be consider during disciplinary action: . Immediacies . Disciplinary action should be taken as speedily as possible. . Impersonality . It should be for everyone . . . .

Disciplinary interview: . purpose of interview .

. . . . . Motivation: Motivation is the decision making process people choose an appropriate behavior to the desire outcomes. Motivation is a social process where other people influence us to behave in the way they wish Rewards Vs Incentives: Reward: Any thing which is given to the employee after the work has actually been done, after the success after the contribution. Incentives: It is the promise is the offer for the reward made before the work actually been started

Management style as motivator: (Douglas MC Gregor) Theory X: Theory X is the manager perception, the manager who think my employees are lazy and they hate to work and responsibility and they are only working for pay. Such managers adopt autocratic management, less delegations, less trust relationship. Theory Y: Theory Y is the managers perception. The manager who think my employees like work and they are not only for pay, they work for interest challenge and no body inherently dislikes work, people work as natural as rest or play. Such managers adopt democratic management, more delegations more trust more perception. Management style as motivator: (Douglas MC Gregor) Theory X: Theory X is the manager perception, the manager who think my employees are lazy and they hate to work and responsibility and they are only working for pay. Such managers adopt autocratic management, less delegations, less trust relationship. Theory Y: Theory Y is the managers perception. The manager who think my employees like work and they are not only for pay, they work for interest challenge and no body inherently dislikes work, people work as natural as rest or play. Such managers adopt democratic management, more delegations more trust more perception. Extrinsic rewards: Extrinsic reward is the materialistic financial reward. These are under the control of other. These rewards motivates but for the short time. Intrinsic Rewards: Intrinsic rewards are the apological reward. It gives you ever lasting reward e.g. after complete the task, the satisfaction you get about completion. Pay as motivator: Pay from organizational point of view: Pay is a major expense for organization. Organization welcomes high salary when the profit is high but it sucks low wages when the profit is low. Pay from individual point of view: Pay is an income from individual point of view to fulfill the basis needs. They satisfy their wants, their luxuries. Pay is a security symbol, status symbol; pay sets your standard of living, pay is a short term motivating factor. Feedback: Feedback as motivator: Feedback is the perception of others about your job.

.Long term employment with slow progressing. .Broad concern for employee welfare both inside and outside the work context. .Implicit informal control. .Decision making should in for of consensus. .No artificial status barrier and there should be trust relationship. Job design as motivator: (Herzberg) .Job enrichment .Job enlargement .Job rotation Job enrichment: Job enrichment is a vertical extension of the job giving a person more authority more freedom and more decision making power and is also .Long term employment with slow progressing. .Broad concern for employee welfare both inside and outside the work context. .Implicit informal control. .Decision making should in for of consensus. .No artificial status barrier and there should be trust relationship. Job design as motivator: (Herzberg) .Job enrichment .Job enlargement .Job rotation Job enrichment: Job enrichment is a vertical extension of the job giving a person more authority more freedom and more decision making power and is also Job enlargement: Job enlargement is the horizontal extension of the job it means widen the job by increasing number of operations. It reduces repetition, it reduces Burdon. It is the step toward promotion. Job rotation: Motivational feedback: When the performance is up to the standard and feedback is given positively in the form of reward and in the form of praise. Development feedback: When the performance is not up to the standards there is some lacking in the performance but the feedback is given fairly so that the learning opportunity are develop in the person. William Ouchi: (Theory Z) called as empowerment. Job rotation is the plan to transfer of the job switching a person from one job to another. It reduces multi-skills. Backup roles are normally created. Job satisfaction five factors: . Skill variety . Task identity

. Task significance . Autonomy . Feedback

Job satisfaction: When an employee thinks about his job and he feel relax. There are five factors which contribute toward job satisfaction Skill variety: All your potential been utilize in the job Task identity: Job which you performing have some identity Task significance: The importance of task. Autonomy: It mean the employee have some power, decision making power Feedback: You must know where you stand, regular feedback. Context school: Context school asks one question, what are the things which motivate a person whereas process school asks that how a person can be motivated. Process school: What is the way which motivates the person? Content school: (Abraham Maslow) Self Actualization Esteem need Love /social needs Safety needs Psychological need Psychological needs: Safety needs:

Once the need has been satisfied, it can no longer are dominant until satisfied. Limitation of Maslow: .Different peoples have different priorities .Some needs are rare in nature .The theory is culturally specific only for UK and .Self actualization can really be satisfied .Pay is an ambiguous concept .Some behavior may be after difficult needs .We do current suffering for the future promise. Once the need has been satisfied, it can no longer are dominant until satisfied. Limitation of Maslow: .Different peoples have different priorities .Some needs are rare in nature .The theory is culturally specific only for UK and .Self actualization can really be satisfied .Pay is an ambiguous concept .Some behavior may be after difficult needs .We do current suffering for the future promise. Security for him or his money Love/social needs: Esteem need: Respect from other, status etc

be motivating factor, need

USA.

be motivating factor, need

USA.

Self Actualization: Fulfillments of personal potential never try to dance better than other. I alway s try to dance better than myself. If you want to motivate someone, you need to start from very basic need. Herzberg 2factor theory: . Hygiene factors . Motivators the employee toward hygiene factor. E.g. personal growth, achievement, feedback, training and development. McClellans Need theory: . Need for power . Need for affiliation . Need for achievement Hygiene factor:

Hygiene factors are those factors, the presence of which doesnt motivate but his absence creates great dissatisfaction. These factors simply normalize the condition. If these factors motivate it give short term motivation, e.g. pay, working condition, company policy, job security. Motivators: The presence may which motivates but absence may divert the attention of

Need for power: People want to control other, they want to have to say in decision making such people s are motivated through promotion, authority Need of Affiliation: Some people want relationship belonging affiliation. Such people are motivated through working in a group in a department Need of achievement: Some people have strong desire for success and strong fear of failure. They are motivated through challenging task and shorter deadlines. Process school: (Victor Vroom) F = V x E F= force of motivation V= valence E= expectancy Force of motivation: If a person is motivated he put some extra force and this force of motivation is the product of valance and expectancy Valance: The worth or the strength of the reward in the eyes of the individual. Valance c ould be either positive, zero or negative Expectancy: It is the chance of outcome probability. Expectancy become 0 or 1 Equity Theory: A person is always compare his input and output with the other employees input and output within an organization as well as outside the organization and when he fe el that he is getting lesser as compare to other person there will be a sense of ne gative inequity and when negative inequity occur. .Increase absenteeism rate .Increase in labor turnover rate . Decrease in productivity . Decrease in quality . Grievances Handys Motivation calculus: This is another expectancy approach He has identified some E factors, when a person is motivated and he put some extra efforts, extra energy, extra excitement, excellence, extra expenditure and extra endeavors. -------------------------------------------------------xxx----------------------------------------------------

CAT T5 - [Managing people and system] (Sir Subhan Mirchawala) Note: Do not need to write in essays - you can write in point format (just refer to the past year papers answer by the examiner) & read the examiner article in Marc h 2010 which indicates that list of points is what is expected by the examiner SECTION D Chapter 13 Panning and organizing personal work Chapter Overview Appraisal Purpose of appraisal Why only formal appraisal system? Appraisal process Evaluating appraisal scheme Barriers to effective appraisal Who does appraisal? Self appraisal Upward appraisal Appraisal techniques: Overall appraisal Guided assessment Grading Custom appraisal 360 degree appraisal Behavioral incidental method Result oriented scheme Appraisal Interview techniques: Tell & Sell method scheme Tell & listen method scheme Problem solving approach Appraisal: Appraisal is an assessment of employees past performance and take some reasonable action today in order to get efficiency in future

Purpose of appraisal: . It brings efficiency in the organization . It brings control in the organization . Employees training need may be identified . Whether the employees deserve promotion . Whether he deserve reward a increment in pay . He helps in human resource planning Why only formal appraisal system? . There is no documentation in record . Chances of discrimination . Different assess and different criteria . Manager remember your short coming but forgot your major contribution . There is no regular feedback in an informal system Appraisal process: . Select the criteria . Preparation of appraisal report prepare by appraise and appraisal both . Getting the appraisal and appraise together . Review of the assessment . Action plan . Follow up, implement, monitor & control

Appraisal techniques: *Overall assessment: The manager write in narrative form about the employees performance, there is no consistency in criteria and it is very vague approach *Guided assessment: This is another vague approach, the manager will comment upon employees integrity, straight forward dealing and other characteristics of employees *Grading: Grades are assign from A (excellent) to E (poor) to each individuals performance area *Behavioral incident method: Your actual behavior is compared with the standard behaviors demanded by the job

.He might not be mature enough .He cant identify mistakes .He might be dishonest 2) Upward appraisal: The subordinates assess the performance of appraisal .It brings motivation .Enhance upward communication .The manager can have more views more feedback .He might not be mature enough .He cant identify mistakes .He might be dishonest 2) Upward appraisal: The subordinates assess the performance of appraisal .It brings motivation .Enhance upward communication .The manager can have more views more feedback *Result oriented scheme: The performance is judge on the basis of result and outputs 1) Self Appraisal: The employee assesses his own performance himself. It save managers time, it reduces the burden on senior management. It brings motivation. It brings commitment. Employee is directly involved in job. Disadvantages: .Subordinates are directly involved with the manager Disadvantages: .They are not mature sometimes .Office politics . Fear of giving negative feedback . Sometime subordinate writes nothing because they think that they wont be listen 3) Customer appraisal: The customer assess the performance of employees

Barrier to effective appraisal: . .Appraisal is one sided process, the manager act as a judge. Barrier to effective appraisal: . .Appraisal is one sided process, the manager act as a judge. 4) 360o Appraisal: Ask from his boss co-workers and employees Appraisal Interview techniques: 1) Tell and sell method: The manager will explain the employee that how he has been asses and he will let him know about the result. It is one way of communication 2) Tell and listen method: The manager will explain the employee that how he has been assess and then he will allow the employee to comment, and then manager will announce the result. Through out the interview manager will not only one to lead 3) Problem solving approach: The manager and the employee they both solve the problem on the basis of consensus. The objective of the approach s to bring the efficiency in the job Appraisal has confrontation ( appraisal us proceed in an open way) . Appraisal . Appraisal . Appraisal . Appraisal . Appraisal has bureaucracy has chat has annual event has unfinished business and pay

Evaluating appraisal scheme: . Whether the objective of the organization is achieved . Labor turnover rate . Employee grievance . We can have feedback on appraisal and appraise .Efficiency .Cost benefit analysis

Chapter 14 Training and development Topic list Training Development Experimental learning cycle Learning organization Learning barriers A systematic approach to training Induction training On the job training / off the job training Evaluating training performance Method of development Management development Carrier Professional Personal Learning style Theorist Reflectors Activist Pragmatist Benefits of training

From organization view From individual view How does a person learn? Behaviorist psychology Cognitive approach Training: Training is the systematic modification of behavior through learning provision or acquires new knowledge or enhancement in skills Development: Development is the growth, construction or realization of the person potential Benefit of training from organization point: .It bring efficiency .More productivity .Motivated workforce .Wastage rate reduce .Accident rate may reduce .Less need for detail supervision . Ready for competition . Flexibility Benefit of training from individual point of view: . Enhancement in post folio or in CV

.training cannot change bad management .training cannot change poor factory equipments .training cannot change poor recruitment .training cannot give you willingness .training cannot increase your intelligence A systematic approach to training: .identification of overall growth development .define the learning gaps that how man skills are already present and how .training cannot change bad management .training cannot change poor factory equipments .training cannot change poor recruitment .training cannot give you willingness .training cannot increase your intelligence A systematic approach to training: .identification of overall growth development .define the learning gaps that how man skills are already present and how many are need to acquire plan the training program .implement the training program . . More opportunities for promotion . Enhancement in skills . Personal growth . Job satisfaction . Social benefits Limitation of training: . monitor, control, review, feedback is very necessary . go back to step 2 if more training is requires or more training is demanded On the job and off the job training: The training which is given to the employee within the work context it mean whatever you learn while doing the job is on the job training

Methods of on the job training: . observation . learning from colleagues . learning from manager . learning from experience . learning from mistakes . temporary transfer . temporary promotion . job rotation Off the job training: The training which is given to the employee outside the work context is off the job training. Methods of off the job training: .Workshop .Seminar .Classrooms .Universities . Computer based learning . Visits and tours Advantages of ON THE JOB training: . It saves time . It saves cost

.Efficiency may decrease .Chances of costly mistakes .No formal lectures .Office politics .No formal degree Learning style: Theorist: They like theories, they like to study principles, and they can best learn from .Efficiency may decrease .Chances of costly mistakes .No formal lectures .Office politics .No formal degree Learning style: Theorist: They like theories, they like to study principles, and they can best learn from . Practical approach . No irrelevant theories . No need for induction training . Departmental and group relationship Disadvantages . Stress . Work overload teacher, they like formal classrooms Reflectors: They observe the phenomena first they learn. They have their own pace of learning, they cannot learn in hurry program. Activist: They like practical work; they dont have patience with theories

Pragmatist: They want to connection b/w learning and rear situation. They want to implement on rear situation. Experimental learning style: Have an experience Review the whole scene Give a conclusion in the light of theories and principles Plan for the next step or implement Learning organization: An organization provides learning and development opportunities to its employees and managers. These organizations are good at experimentation. Theorists are risk takers. They can be bear costly mistakes. They transfer their knowledge very quickly through the organization Induction training: Induction training is the formal training which is giving to the new employees to reduce its frustration to let hi about the organization norms, organization culture, value, pin point of the areas, so that he can start his job, let hi kno w about the health and safety policies, let him know about the office layout, who is the boss and who is the subordinate and what is the reporting structure. Induction training is not a first day affair it is an ongoing process Learning barriers: . People hates responsibilities . Blaming others . Fixation on events . People hate charges sometimes

Evaluating training program: .We can have a feedback from its employees .We can have a feedback from manager .Accident rate check .Wastage rte check .We can have a test .Quality of goods .Cost of benefits analysis check .We can observe employee when he is doing a job Evaluating training program: .We can have a feedback from its employees .We can have a feedback from manager .Accident rate check .Wastage rte check .We can have a test .Quality of goods .Cost of benefits analysis check .We can observe employee when he is doing a job . Office politics . People ignore their experience . Some people peruses that it has wastage of time . Some people perceive that t has wastage of money . Some peoples are not willing Method of development: Management development: Enhancement is leadership skill, communicating skills, administration skills, and HR skills for e.g. MBA Career development: Enhancement through promotion, career moves or through transfer Professional development: The training program which is designed by a professional body for its member is called professional development

Personal development/ self development: It is designed by the organization for the employee where as self development plan is designed by the employee himself How does a person learn: - (refer book) Online books available at http://www.accaglobe.tk

Different in objectives Different in personality Different in perception Limited resources People are competing for power Different in objectives Different in personality Different in perception Limited resources People are competing for power Chapter 15 Conflict: Clashes b/w two forces, different in opinion, dissatisfaction, disagreement Causes of conflict: . Miscommunication . Misunderstanding . Different in opinion . . . . .

Constructive conflict: Healthy competition Destructive conflict: Strikes, etc How to manage conflict personality? 1) Communication: Exchanging of ideas 2) Negotiation:

If the conflict is on minor values just ignore it. 2) Suppression: Sweeping it under the carpet 3) Compromise 4) Encourage collaboration Divert their attention toward the shared objectives If the conflict is on minor values just ignore it. 2) Suppression: Sweeping it under the carpet 3) Compromise 4) Encourage collaboration Divert their attention toward the shared objectives Table talk, exchanging words 3) Separate: Withdraw yourself form the situation if the other person is rigid How to manage conflict in the team? 1) Denial/ withdraw: 5) Problem solving team WIN WIN MODEL: Win lose: When one party completely satisfied and one completely lost this situation is very common Lose lose: When both the parties scarify. It could be senseless outcome. The third party takes the advantage Win win: When both the parties completely satisfied, they get what they want; here we need to ask some questions Grievance: Grievance means sad feelings, sorrow feelings.

It occur when a person feels that he is been wrongly or unfairly treated by othe r employee or manager When grievance occur: . Unfair disciplinary action . Unfair appraisal .Discrimination .Harassment . Dismissal .Inequitable pay .Blockages and training and development Grievance should be should be solve either informally or there should be a formal grievance handling procedure 1. consult with your union leader or your immediate boss 2. if you are not satisfied with your decision of immediate boss, go to the higher management 3. cases referred to higher management should also be submitted in the human resource department Interpersonal skills Skills which are used n interaction b/w more than one individual. Needs of interpersonal skills .motivation .team working .negotiation .customer care

It is a two way process when a sender send a message and receiver receive it, he understand it, he interpret it and then get you the feedback Feedback Feedback is the response or reaction of the receiver and it gives confirmation t o the sender. Feedback could be verbal or non verbal or it could be an action Encoding: When the message is converted into words, symbols are called encoding and encoding is from the sender side. It is a two way process when a sender send a message and receiver receive it, he understand it, he interpret it and then get you the feedback Feedback Feedback is the response or reaction of the receiver and it gives confirmation t o the sender. Feedback could be verbal or non verbal or it could be an action Encoding: When the message is converted into words, symbols are called encoding and encoding is from the sender side. . communication . interview What is communication? Transfer of message or exchange of ideas Effective communication Decoding: The words/symbol are converted into message and it is from receiver side Distortion: Sometime meaning is changed or lost during encoding/decoding There are some factors which should be considered while selecting media. .Speed . Cost . Confidentiality . Complexity . Need for the written record . Need for interaction

Communication flows: *Vertical Downward Upward *Horizontal Formal Informal * Diagonal Vertical: Downward communication: From manager to subordinate . Order Warning .Laws .Rules and regulations . . Command Upward communication: From subordinate to manager . Feedback . Report . Advices

Communication which crosses the vertical and horizontal barriers Communication barriers: 1) Physical noise: Traffic, machinery, fans etc 2) Technical noise: Bad internet connections, bad mobile connections Communication which crosses the vertical and horizontal barriers Communication barriers: 1) Physical noise: Traffic, machinery, fans etc 2) Technical noise: Bad internet connections, bad mobile connections Horizontal communication: Communication b/w pair workers, . Manager to manager . Subordinate to subordinate It could be either formal or informal Diagonal communication: 3) Social noise: When peoples are from different culture they communicate 4) Physiological noise: The state of mind and the mood of a person 5) Language: 6) Use of non verbal signs 7) Technical jargons: Vocabulary which is for particular field 8) Lack of communication skills 9) Distortion

How to overcome these barriers? . Use sound proof doors . Use good internet connections, use good mobile connections . Give them training . Use simple language Communication methods: 1) Written communication: Communication in black and white form (letter, applications, memo, email, policy manual, house journal, fax etc) 2) Oral communication: Face to face interaction or verbal communication, (telephone calls, voice chat, meeting lectures, interviews etc) 3) Non-verbal communication: Communication without words (postures, facial expression, body language, symbols, nonverbal signs, smile etc) General guidelines on informing: .Identify the listener needs, audience need .Use visual aids . Seek feedback . Use appropriate verbal signs . Use effective media . Identify the audience taste

Influencing: Push style: Influence the people in authoritative style, identify the problems and give command and dont ask comments from other person. Its fast but the commitment is weak Pull style: It is democratic approach, consult approach, we identify the problems, give our suggestion and ask for comment, its slow but the commitment is strong Assertive behavior: Positive communication, clear-cut communication, direct communication, honest communication. Standing up for your right in such a way that you are not violating the right of others. Expressing your needs, your wants in appropriate manner is what assertive behavior Aggressive behavior: It is a fright reaction either physical or verbal Standing up for you right n such a way that you are violating the rights of other. Expressing your needs, your wants your opinion in an appropriate manner is what aggressive behavior. Positive behavior: It is a flight behavior; one cant standup for his or her own rights. Negotiation: Negotiation is a problem solving technique when both the parties exchange arguments and in the beginning they have different objectives but at the end they ant to solve their problems without damaging the relationship they want to reach a mutual consent, mutual understanding what they both can live with that situation. . What is your ideal situation and worst situation?

. Though the both parties should be flexible? . Over coming side tracks . Dont be personal . Be culturally sensitive Counseling: Counseling means guidance, advice, support someone, to help someone. Counseling is the temporary relationship when one person helps another person to help himself it is a way of exploring thoughts, emotions and the feelings with the aim of reaching the clearer understanding, there should be a separate space for counseling. The meeting should be kept confidential. You should always be honest and correct; you must be good listen as well. You should play a passive role. Councilor cant take the decision because it is not his problem. He should adopt a passive role. Canceling is free of cost and indirect service t o an employee, this problem can solve without the involvement of councilor. CHAPTER 16 (read from T5 study text) Section E is basically a section of common sense. So there is no need of writing in concise notes format. For section E you must read the Book. ------------------------------------------THE END----------------------------------------GOOD LUCK www.accaglobe.tk Waqar Adil