Business Services - WordPress.com...Monitor and Manage Small Business Operations (4th edition) published by TAFE SA Small Business Training Centre & ESP Production House ISBN 9781865069906

FNSPRAC501A Manage & Maintain Small-Medium Business Operation

FNS51204 Diploma of Financial Services (Banking) GEY August 2009 Version 1 Copyright TAFESA Page 1 of 87

Business Services TAFESA Tea Tree Gully Campus

TAFESA Adelaide North

Study guide

FNSPRAC501A Manage & maintain small / medium

business operations

National code: FNSPRAC501A

Unit of Competency: Manage & maintain small / medium

business operations

State code: GEMT



Table of Contents

Table of Contents ...................................................................................................................... 2

Introduction to Unit ................................................................................................................... 5

Prerequisites .............................................................................................................................. 6

Resources required .................................................................................................................... 6

Hardware: .............................................................................................................................. 6

Software: ............................................................................................................................... 6

Textbook: .............................................................................................................................. 6

Handouts: .............................................................................................................................. 7

Range statement ...................................................................................................................... 10

Evidence guide ........................................................................................................................ 11

Key Competencies .............................................................................................................. 12

Employability Skills ................................................................................................................ 15

Grading Guidelines .................................................................................................................. 17

Assessment Summary .............................................................................................................. 18

Timetable ................................................................................................................................. 19

Lecture 1 – Identify Daily Work Requirements (1) ................................................................ 20

Mission ................................................................................................................................ 20

The Office/Operations Centre/Work Centre ....................................................................... 22

What Is Vision? ................................................................................................................... 23

Operations Plan ................................................................................................................... 24

Lecture 2 – Identify Daily Work Requirements (2). ............................................................... 26

Resources and Constraints .................................................................................................. 26

Managing Operations .......................................................................................................... 26

Managing the People ........................................................................................................... 28

Staff Numbers ..................................................................................................................... 29

Organisational Structure ..................................................................................................... 29

Job Analysis & Design ........................................................................................................ 30

Job Description & Person Specifications ............................................................................ 30

Monitoring Performance ..................................................................................................... 30

Lecture 3 - Monitor and Manage Work (1) ............................................................................. 32

Work Activities ................................................................................................................... 32

Work Roster ........................................................................................................................ 32

Work Allocation .................................................................................................................. 33




Problem Solving Techniques .............................................................................................. 36

Managing Equipment .......................................................................................................... 36

Materials & Stock ............................................................................................................... 38

Business goals may include: ............................................................................................... 38


Understanding the Problem ................................................................................................. 41

Change Language & Change Thinking ............................................................................... 42

Looking for Patterns [Trends] ............................................................................................. 44

Identifying and Attempting Sub Tasks ............................................................................... 45

Lecture 6 - Revision ................................................................................................................ 46

Lecture 7 – Assessment 1 ........................................................................................................ 46

Lecture 8 - Develop Effective Work Habits (1) ...................................................................... 47

Effective Work Habits ........................................................................................................ 47

Estimating & Managing Task Time .................................................................................... 48

Lecture 9 - Develop Effective Work Habits (2) ...................................................................... 52

Staff & Colleagues .............................................................................................................. 52

On the job training .............................................................................................................. 52

Tertiary Education ............................................................................................................... 54

Lecture 10 - Interpret financial Information (1) ...................................................................... 59

Financial Analysis Ratios .................................................................................................... 63

Lecture 11 - Interpret financial Information (2) ...................................................................... 65

Accounts Receivable or Debtors ......................................................................................... 66

Accounts Payable or Creditors ............................................................................................ 67

Lecture 12 - Evaluate Work Performance (1) ......................................................................... 72

Organisational Change ........................................................................................................ 73

Global Business ................................................................................................................... 74

Electronic Communication.................................................................................................. 74

Innovative Change .............................................................................................................. 74

Working Practices ............................................................................................................... 74

Working Processes .............................................................................................................. 75

Design Change .................................................................................................................... 75

Implementing Innovative Change ....................................................................................... 75

Product Desirability ............................................................................................................ 76

Market Size ......................................................................................................................... 77

Implementing Strategic Change .......................................................................................... 78



Change Behaviour ............................................................................................................... 78

Lecture 13 - Evaluate Work Performance (2) ......................................................................... 82

Changing Work Practices .................................................................................................... 82

Change Communication ...................................................................................................... 83

Operations – Impact of Codes & Laws ............................................................................... 84

Self Management ................................................................................................................ 86

Lecture 14 - Revision .............................................................................................................. 87

Lecture 15 – Assessment 2 ...................................................................................................... 87



Introduction to Unit

This unit covers the operation of day-to-day business activities in a micro or small business.

The strategies involve the developing, monitoring and managing work activities and financial

information, developing effective work habits and adjusting work schedules as needed.

It is particularly suitable to department managers within a larger organisation or to executives

responsible for their own business or franchise in the financial industry.

The unit requires the application of management, communication and problem solving

skills to operate a micro to small business or department.

It may be applied to the financial services industry.

Topics addressed include:

Identify daily work requirements

Resources

Monitor and manage work

Business goals

Problem solving techniques

Develop effective work habits

Time management strategies

Internal and external business sources

Interpret financial information

Evaluate work performance

Lecturer details Lecturer: …………………………………………………………………………

Email: ……………………………………………………………………………

Contact phone number: ………………………………………………………….



Prerequisites

Subjects may have required prior knowledge. A prerequisite subject must be completed

before starting this subject. Occasionally there will be a co-requisite subject. This means that

the subject must either be done before or at the same time as this subject.

The following table summarises the pre- or co-requisites for this subject:

Prerequisites Nil

Co-requisites Nil

Resources required

Hardware:

None required however access to the internet for research is recommended.

Software:

None required however access to the internet for research is recommended.

Textbook:

Monitor and Manage Small Business Operations (4th edition)

published by TAFE SA Small Business Training Centre & ESP Production House

ISBN 9781865069906 email: [email protected]

In addition to the lecture notes and you will be able to supplement your knowledge with bank

brochures and articles from magazines and papers (like the Australian Financial Review) and

the internet.

Video / DVD

There is no recommended video or DVD for this unit.

Reference websites:

Australian Securities & Investment Commission (ASIC)

(inc. EFT Code of Conduct - follow the Fido menu option) www.asic.gov.au

Australian Bankers Association (ABA) www.bankers.asn.au

TAFE SA www.tafe.sa.edu.au/

Small Business Banking (ABA sponsored) www.smallbusinessbanking.com.au

http://www.asic.gov.au/

http://www.bankers.asn.au/

http://www.tafe.sa.edu.au/

http://www.smallbusinessbanking.com.au/



Handouts:

Handouts provided have been taken from the Small Business Management Series of books

published by ESP Production House for the South Australian Department of Further

Education, Employment, Science and Technology and are used by permission.

© Minister for Employment, Training and Further Education, Government of South Australia

2005.



Unit of competency

Description This unit covers the operation of day-to-day business activities in a micro or small business.

The strategies involve developing, monitoring and managing work activities and financial

information, developing effective work habits, and adjusting work schedules as needed. It is

particularly suitable to department managers within a larger organisation or to executives

responsible for their own business or franchise in the financial industry. Employability Skills This unit contains employability skills. Application Of Unit This unit requires the application of management, communication and problem solving skills

to operate a micro to small business or department. It may be applied to the financial services

industry. Unit Sector Practice Management Performance criteria

Element

Performance criteria

1. Identify daily

work

requirements

1.1 Work requirements for a given time period are identified

taking into consideration resources and constraints

1.2 Work activities are prioritised based on business needs,

requirements and deadlines

1.3 If appropriate, work is allocated to relevant staff or

contractors to optimise efficiency

2. Monitor and

manage work 2.1 People, resources and/or equipment are coordinated to

provide optimum results

2.2 Staff, clients and/or contractors are communicated with

in a clear and regular manner, to monitor work in relation

to business goals or timelines

2.3 Problem solving techniques are applied to work

situations to overcome difficulties and achieve positive

outcomes

3. Develop

effective work

habits

3.1 Work and personal priorities are identified and a balance

is achieved between competing priorities using

appropriate time management strategies

3.2 Input from internal and external sources is sought and



used to develop and refine new ideas and approaches

3.3 Business or inquiries are responded to promptly and

effectively

3.4 Information is presented in a format appropriate to the

industry and audience

4. Interpret

financial

information

4.1 Relevant documents and reports are identified

4.2 Documents and reports are read and understood and any

implications discussed with appropriate persons

4.3 Data and numerical calculations are analysed, checked,

evaluated, organised and reconciled

4.4 Daily financial records and cash flow are maintained

correctly and in accordance with legal and accounting

requirements

4.5 Invoices and payments are prepared and distributed in a

timely manner and in accordance with legal requirements

4.6 Outstanding accounts are collected or followed-up on

5. Evaluate work

performance 5.1 Opportunities for improvements are monitored according

to business demands

5.2 Work schedules are adjusted to incorporate necessary

modifications to existing work and routines or changing

needs and requirements

5.3 Proposed changes are clearly communicated and

recorded to aid in future planning and evaluation

5.4 Relevant codes of practice are used to guide an ethical

approach to workplace practices and decisions

Skills and Knowledge Required skills: Skills requirements include:

literacy skills to interpret legal requirements, company policies and procedures and

immediate, day-to-day demands communication skills including questioning, clarifying, reporting, and giving and

receiving constructive feedback numeracy skills for performance information, setting targets and interpreting financial

documents and reports technical and analytical skills to interpret business documents, reports and financial

statements and projections ability to relate to people from a range of social, cultural and ethnic backgrounds and

physical and mental abilities problem solving skills to develop contingency plans using computers and software packages to record and manage data and to produce

reports



evaluation skills for assessing work and outcomes observation skills for identifying appropriate people, resources and to monitor work

Required knowledge: Knowledge requirements include:

National, State/Territory and Local Government legislative requirements affecting

business operations, especially in regard to occupational health and safety (OH&S),

equal employment opportunity (EEO), industrial relations and anti-discrimination technical or specialist skills relevant to the business operation relevant industry code of practice planning techniques to establish realistic timelines and priorities identification of relevant performance measures quality assurance principles and methods relevant marketing, management, sales and financial concepts methods for monitoring performance and implementing improvements structured approaches to problem solving, idea management and time management

Range statement The range statement relates to the unit of competency as a whole. It allows for different work

environments and situations that may affect performance. Bold italicised wording, if used in

the performance criteria, is detailed below. Essential operating conditions that may be present

with training and assessment (depending on the work situation, needs of the candidate,

accessibility of the item, and local industry and regional contexts) may also be included.

Resources may include: staff money time equipment space

Business goals may

include: sales targets

budgetary targets team and individual goals production targets reporting deadlines

Problem solving

techniques may include: gaining additional research and information to make

better informed decisions looking for patterns considering related problems or those from the past and

how they were handled eliminating possibilities identifying and attempting sub-tasks collaborating and asking for advice or help from

additional sources

Time management

strategies may include: prioritising and anticipating

short term and long term planning and scheduling creating a positive and organised work environment clear timelines and goal setting that is regularly



reviewed and adjusted as necessary breaking large tasks into smaller tasks getting additional support if identified and necessary

Internal and external

sources may include: staff and colleagues

management, supervisors, advisors or head office relevant professionals such as lawyers, accountants,

management consultants professional associations

Evidence guide The evidence guide provides advice on assessment and must be read in conjunction with the

performance criteria, required skills and knowledge, range statement and the Assessment

Guidelines for the Training Package.

Overview of assessment To achieve competency in this unit, a person must be able to

demonstrate: ability to identify daily work requirements and allocate

work appropriately ability to interpret financial documents in accordance

with legal requirements

Evidence required for

demonstration of

consistent performance:

Competence in this unit must be assessed over a period

of time in order to ensure consistency of performance

over the Range Statement and contexts applicable to the

work environment.

Delivery/assessment

relationship to other

units:

This unit may be assessed on its own or it may be

assessed with other units that cover related skills and

knowledge. Evidence is most relevant when provided through an

integrated activity which combines the elements of

competency for the unit, or a cluster of units of

competency.

Method of assessment: For valid and reliable assessment of this unit, evidence

should be gathered through a range of methods to

indicate consistent performance. Assessment of this unit of competence will usually

include observation of processes and procedures, oral

and/or written questioning on underpinning knowledge

and skills and other methods as required.

Context of assessment: This unit may be assessed at work, in simulated work

environments or a combination of these.

Resources required for

assessment: Assessment of this unit of competence requires access

to relevant workplace documentation, financial records,

and equipment.



Key Competencies

Key competencies are the skills required for a flexible workforce, where workers take more

responsibility for managing both the process and quality of their work. This means that along

with the knowledge and skills required to do the job, you are also expected to demonstrate the

‘Key Competencies’.

The seven key competencies are:

____________________________________________________________________

Collecting, Analysing and Organising Information

The capacity to locate information, sift and sort information in order to select what is required

and present it in a useful way, and evaluate both the information itself and the sources and

methods used to obtain it.

______________________________________________________________

Communicating Ideas and Information

The capacity to communicate effectively with other using the range of spoken, written,

graphic and other non-verbal means of expression.

______________________________________________________________

Planning and Organising Activities

The capacity to plan and organise one’s own work activities, including making good use of

time and resources, sorting out priorities and monitoring one’s own performance.

______________________________________________________________

Working with Others and in Teams

The capacity to interact effectively with other people both on a one to one basis and in

groups, including understanding and responding to the needs of a client and working

effectively as a member of a team to achieve a shared goal.

______________________________________________________________

Using Mathematical Ideas and Techniques

The capacity to use mathematical ideas, such as number and space, and techniques, such as

estimation and approximation, for practical purposes.

______________________________________________________________

Solving Problems

The capacity to apply problem solving strategies in purposeful ways, both in situations where

the problem and the desired solution are clearly evident and in situations requiring critical

thinking and creative approach to achieve an outcome.

______________________________________________________________

Using Technology

The capacity to apply technology, combining the physical and sensory skills needed to

operate equipment with the understanding of scientific and technological principles needed to

explore and adapt systems



Learning and Assessment Guide (LAG) Subject Name: Small Business Portfolio Management

Unit covered by this subject:

Unit Code State Code

Title Hrs

FNSPRAC501A GEMT Manage and Maintain Small/Medium Business

Operations 50

Elements in the Unit:

FNSPRAC501A Manage & Maintain Small/Medium Business Operations Element 1 Identify daily work requirements Element 2 Monitor and manage work Element 3 Develop effective work habits Element 4 Interpret financial information Element 5 Evaluate work performance

Refer to the unit documentation for:


Range statement

Evidence Guide

Aim of the subject:

This unit covers the operation of day-to-day business activities in small business. The

strategies involve developing, monitoring and managing work activities and financial

information, developing effective work habits, and adjusting work schedules as needed. It is

suitable to department managers or executives responsible for their own business or franchise

in the financial industry.

This unit requires the application of management, communication and problem solving skills

to operate a micro to small business or department. It may be applied to the financial services

industry.

This content statement is prepared to define the range of variables expressed in the unit below

to meet the requirements of the banking course in TAFE SA.

Learning outcomes for the financial services workplace:

Learning Outcome 1

Identification of daily work requirements

Identify work requirements for a given time period, taking into consideration

resources and constraints

Prioritise work activities based on business needs, requirements and

deadlines

Allocate work to relevant staff or contractors as appropriate to optimise

efficiency



Learning Outcome 2 Monitoring and managing work

Co-ordinate people, resources/equipment to provide optimum results

Communicate clearly and regularly to staff, clients/contractors to monitor work in

relation to business goals or timelines

Apply problem solving techniques to work situation to overcome difficulties and

achieve positive outcomes

Learning Outcome 3 Developing effective work habits

Identify work and personal priorities and achieve a balancing between competing priorities

using appropriate time management strategies

Seek input from internal and external sources and use this to develop and refine new

ideas and approaches

Respond promptly and effectively to business and enquiries

Present information to industry and audience in an appropriate format.

Learning Outcome 4

Interpreting financial information

Identify relevant documents and reports

Read and understand documents and reports and discuss any implications with

appropriate persons.

Analyse, check, evaluate, organise and reconcile data and numerical calculations

Maintain daily financial records and cash flow correctly, and in accordance with legal

and accounting requirements

Prepare and distribute invoices and payments in a timely manner and in accordance

with legal requirements

Follow-up and collect outstanding accounts

Learning Outcome 5

Evaluation of work performance

Monitor opportunities for improvement according to business demands

Adjust work schedules to incorporate necessary modifications to existing work

routines and changing needs

Communicate proposed changes clearly to aid in future planning and evaluation

Used relevant codes of practice to guide an ethical approach to workplace practices

and decisions.

NOTE:

The Learning and Assessment Guide (LAG) is an interpretation of the unit of competency

and clarifies the learning outcomes. It is approved by the Financial Services Quality

Assurance Group.



Employability Skills

Employability Skills are skills that apply across a variety of jobs and life contexts. They are

sometimes referred to as key skills, core skills, life skills, essential skills, key competencies,

necessary skills, and transferable skills. Industry's preferred term is Employability Skills.

Employability Skills are defined as skills required not only to gain employment, but also to

progress within an enterprise so as to achieve one's potential and contribute successfully to

enterprise strategic directions.

Employability Skill Industry requirements for this qualification include:

Communication

applying strong interpersonal and verbal skills i.e. interviewing,

counseling, negotiating and acting as an advocate for the

organisation

developing a rapport with clients

documenting clients' complex or special needs to protect interests

of clients

fostering business relationships and providing a high level of

customer service and relationship management presenting complex

information to the client in a simple manner

questioning, clarifying and evaluating information

Teamwork

coaching and mentoring staff on reaching minimum customer

service standards

contributing to team cohesion

making constructive contributions to group decision making

processes

participating in the process of monitoring and reviewing team

performance

providing feedback, support and encouragement to team members

monitoring performance and conducting performance appraisals

negotiating and agreeing with staff on performance standards

Problem Solving

analysing business proposals and opportunities

analysing product applications and usage; conducting

segmentation analysis of small business market

using modeling tools to test assumptions against a variety of

scenarios

Initiative and

Enterprise

aligning customer characteristics to ' best product'

continually reviewing and applying emerging industry trends to

product and service knowledge

designing new products tailored to small business

developing, implementing and monitoring strategies for the

continuous improvement of small business products/services

developing innovative approaches to selling financial products and

services

generating a range of options for clients to consider

Planning and

Organising

developing and maintaining systems, records and reporting

procedures



Employability Skill Industry requirements for this qualification include:

ensuring the integrity of systems, records and reporting procedures

meet statutory requirements

managing and maintaining small business operations

planning and implementing communication campaigns for small

business clients

Self-management

managing own time and priorities and dealing with contingencies

taking responsibility as required by work role and ensuring all

organisational polices and procedures are followed

working ethically and complying with all industry Codes of

Practice and legislative requirements

Learning

developing and maintaining personal competence

following workplace safety procedures

maintaining currency o

adapting to change in technology and/or work practices

developing and maintaining personal competence

defining own work role and understanding level of responsibility

identifying opportunities for professional development

f knowledge of relevant legislation and Codes of Practice

using online help for self learning purposes

Technology

operating computers and using word processing, spreadsheet and

database skills to produce workplace documentation

using business technology to access, organise and monitor

information



Grading Guidelines

In addition to achieving competence in the unit, you will also be graded on your work (unless

the unit is an ungraded one). Grading is different from assessment. Grading is mostly about

the process or how you go about achieving the performance criteria.

If you achieve competence for the unit you will be graded as a PASS (ie: you have

demonstrated your ability to meet all performance criteria).

To gain a Credit or Distinction how you work in achieving the performance criteria is

considered. Each category is based on the following criteria:

Fail A grade for not meeting all performance criteria. Does not demonstrate competence in all performance criteria in the unit. Pass A grade for meeting all performance criteria. Demonstrates competence in all performance criteria in the unit (including

Key Competencies) Credit A grade for consistent judgement and application of theory and concepts. To

be awarded a credit grade, the student must meet the criteria for pass, and

further: Appropriately relate the performance criteria to work situations and

workplace standards

Meet all specified deadlines

Work with limited supervision

Assignments/assessments require no more than minor amendments only.

Distinction A grade for consistent excellence in the areas of originality, attitude and

independent application. To be awarded a distinction grade, the student

must meet the criteria for pass and credit grades, and further: Demonstrate original and independent application of theory and practice

Demonstrate initiative and outstanding attitudes, approaches to learning

and motivation

Where appropriate work with and lead a study group or demonstrate

outstanding consultation skills

Assignments/assessments require no amendments

Credits and Distinctions are only awarded for excellent work. They are not given out

routinely. If you are aiming to pass this unit with a grade higher than a Pass, you should

ensure where appropriate that group and individual activities and assessments:

show application of theories/concepts

(this should incorporate workplace examples and practices)

show a thorough understanding of all theories and concepts

are written concisely and comprehensively

are presented to workplace standards and on time

have been discussed with your work group and opinions of others have

been incorporated appropriately

show evidence of additional research into theories/concepts.



Assessment Summary

The assessment for this module consists of:

A. Unsupervised Homework / Classwork Exercises.

B. 2 Closed Book Assessments

A. UNSUPERVISED HOMEWORK / CLASSWORK

Lectures 1 - 5

5 Lecture sets of homework / classwork exercises comprising 25 questions reviewed in class

or during revision.

3 exercises reviewed in class.

Learning Outcome 1 – Identification of Daily Work Requirements.

Learning Outcome 2 – Monitoring & Managing Work

Lectures 8 to 13

6 Lecture sets of homework / classwork exercises comprising 30 questions reviewed in class

or during revision.

Learning Outcome 3 – Developing effective Work Habits.

Learning Outcome 4 – Interpreting Financial Information

Learning Outcome 5 – Evaluation of Work Performance

B. VALIDATION ASSESSMENT

Assessment 1

Learning Outcome 1 – Identification of Daily Work Requirements.

Learning Outcome 2 – Monitoring & Managing Work

Closed book assessment

No outside aids are required. [Closed Book]

No Calculations are involved, therefore no calculators are required

Unmarked hard copy dictionaries are allowed.

2 hours – Provide Business Advisory Services in a Financial Services Context.

Assessment 2

Learning Outcome 3 – Developing effective Work Habits.

Learning Outcome 4 – Interpreting Financial Information

Learning Outcome 5 – Evaluation of Work Performance

Closed book assessment

No outside aids are required.

No Calculations are involved, therefore no calculators are required

Unmarked hard copy dictionaries are allowed.

2 hours – Provide Business Advisory Services in a Financial Services Context.

The activities in class and set homework together with the assessments will provide

opportunities for students to develop their skills in the Key Competencies.



Timetable

Learning

Outcome Lecture Date Topic

1 1 Identify Daily Work Requirements (1)

1 2 Identify Daily Work Requirements (2)

2 3 Monitor & Manage Work (1)

2 4 Monitor & Manage Work (2)

2 5 Monitor and Manage Work (3)

6 Revision

7 Assessment 1

3 8 Develop Effective Work Habits (1)

3 9 Develop Effective Work Habits (2)

4 10 Interpret Financial Information (1)

4 11 Interpret Financial Information (2)

5 12 Evaluate Work Performance (1)

5 13 Evaluate Work Performance (2)

14 Revision

15 Assessment 2

Note: Please enter dates into the date column according to your start date.



Lecture 1 – Identify Daily Work Requirements (1)

Background

The aim of the subject will be introduce students to the general working of an office, how it

might be managed and what might be expected of any staff employed therein.

The key word above is „general‟ because different work places will be set up differently to

one another depending upon parameters like number of clients, number of staff or even the

size or layout of the office.

Following this line of thought if we compared say two branches of a National Australian

Bank it is possible to see that they are set up differently. Throw in the comparison of a Bank

to a Building Society or a Mortgage Broker’s Office then it would be possible to see that they

are different.

Additionally, it is possible that your work journey might be somewhere other than a financial

institution. The principles that will be delivered are basic, but will need adaptation to fit the

changed circumstances.

Exercise: What would you expect to be different if the above entities were compared?

i.e. NAB, compare a Building Society to a Mortgage Broker.

The key to any operations are;

Mission

Vision

Resources

Ability

Desire

Mission

An overused concept that came to light in the 80s was the Mission Statement, but what does it

really mean. More importantly what do staff think of the ‘statement’.

Firstly, the Mission Statement is generally the corporate statement of why the organisation

exists or what it is attempting to do. Often they appear glamorous or are couched in such

terms that the staff could be excused for dismissing them out of hand. At the very least they

might say oh that is for the Board or the shareholders or the executive staff. To promote

ownership banks, during the eighties asked their staff to develop their own mission statements

for their branches or departments.

However in terms of a branch or department mission statement, staff move on, new staff

arrive, departments close and gradually the Mission Statement which will be proudly hung in

the staff lunch room becomes simply a poster on the wall. The passion for the original

statement may have disappeared, become outdated or simply considered ‘corny’.



Nevertheless the corporate Mission statement lives on proudly in the Annual Report for all to

see.

The mission statement does not tell how to do the job but is more of a philosophy that if all of

the staff complete their function or job, then this is what will be achieved.

The Format or Set Up

In a small organisation the office will be the only place of business.

Where there is a central control and some operations through branch outlets then there will be

several independent but connected office set ups.

If state or regionally based then all operations will be under one set of laws and control

considered reasonable and tight.

However, if the larger financial institutions are considered then it is more complex with Head

Office, Capital Office, Regional Office and individual branch offices all connected aiming for

the same distant purpose but operating beneath different sets of parameters like laws,

customer quality etc .

Where we are coming to with this is that all departments, branches etc need to be managed or

controlled by a responsible person – a manager.

In basic terms all managers are going to have a common element – responsibility for the

functions of that department. Of course it has already been flagged that their individual

responsibilities will differ although some may be similar.

Responsibility or Purpose

The manager must know what it is that the business unit is required to undertake for the

business [financial institution]. An example of a branch operation could be;

Receipt of deposits

Payout withdrawals

Personal investment advice

General enquiries

Sale of international currency

A business banking office could be;

Investment advice

Loan advice

Sale of other bank products

Enquiries of a general nature

International trade

If a comparison is made then it should be apparent that there are similarities in what may be

provided.



However the method of delivery is quite different with the business banking unit only

available to the select clients of the unit, whereas the branch is open to the public.

The resources like office location, assets like phones, cars, computers, desks and chairs are

generally provided and are based on formula for type and size of operation etc. Although they

may need to be changed from time to time they are generally automatically provided.

What the manager must accept responsibility for is how they will operate.

Things that are essential are sufficient staff and they are available when clients are seeking

assistance. Other things that must be addressed are targets for completion, sales targets,

marketing or sales campaigns and achieving goals in a timely fashion. If considered necessary

essential and remedial training to be addressed.

Then there are the aspects of staff and customer safety and operating conditions. Simply put

there are many things, some which lay in the background, that must be considered or known

at some time.

In summary some of these elements are common not matter what the focus or location of the

operations.

Some other departments that still require a management function and operations in financial

institutions are;

I.T.

Trade & Operations

Credit Cards

Leasing & Finance Company

Corporate Teams

Mobile Banking

Other

The smaller institutions like Building Societies & Credit Unions would probably concentrate

more on consumer lines although some offer smaller business facilities.

Of course broking entities would likely be smaller again. Additionally where the function is

relatively small then these might be clustered together in a ‘general’ department that provides

control and administrative support.

We will try to consider a model that could be applied to all office organisations – a Generic

Office.

The Office/Operations Centre/Work Centre

All offices must have a responsible officer a leader charged with certain tasks.

The responsible officer can be called or labeled:

Manager

Controller

Leading Hand

Senior Clerk



Accountant

It doesn’t matter much what the title is, although some people will argue differently and insist

on the title of Manager, the responsibility is largely the same. The manager is responsible for

the results emanating from a particular work centre.

He/she may have a hands on approach or specific tasks and rely upon others to complete the

aims at that work centre.

Manager

This officer must know and be able to communicate what is expected from that site. At a

branch the position will control hours of operation, number of staff, allocation of tasks and

sub-responsibilities, compilation of results, comparison of results for sales, revenues and

expenditures.

A good manager will seek staff to work with her or him rather than for them.

A good manager should have a Vision of what can be achieved at the profit centre

and be able to communicate this to the staff.

What Is Vision?

not another Mission Statement!]

Refer to the handout – Vision and Values [for discussion]

The manager should have some sort of vision of how to operate ‘the business’ and it should

be shared with the staff that are going to help with its achievement. If it is not and everyone

has their own vision or direction we could end up with chaos. A shared vision is a statement

of what is required and how we get there can be varied depending on the individual!

Getting back to the mission statement for a moment all staff should have a personal mission

statement – ‘what is your mission in life?’

In the article the following questions were posed [Michael Gerber, the E Myth Revisited];

What do I value most?

What kind of life do I want?

What do I want my life to look like, to feel like??

Who do I wish to be?

What are your highest priorities, the values that govern everything else in life? Whether

committed to writing or retained in the subconscious all people have some values or ethics

that help shape their existence.

My mission is to work hard!

My mission is to guide people and improve their quality of life!

These statements are too shallow as a mission statement and need to be broadened.

My mission is to provide a good environment for my family, to apply myself at work so that

there is sufficient income to fulfill the aim and allow them to be educated to a level that

allows them to succeed in our society.



By having some kind of statement the process can become objective.

The mission statement is a vision and as stated ‘without vision we perish’ could subject us to

a robotic state of simply going through the process.

We will consider the article on Vision and Values and apply it to an employee work situation.

This is quite personal and in spite of the efforts of training and putting all staff into uniforms,

everyone is different physically, mentally, education, how we talk, beliefs, standards etc.

All that is asked here is that if a task is to be undertaken, or a job applied for give thought to

how customers will be treated, how staff will be treated, attitude to health and safety etc. these

things will impact on the performance.

Exercise: Consider the following Vision and Mission statement for the Operations

department of a small bank. Do you think staff will clearly understand their bank’s vision and

mission and why or why not? Discuss in class.

Vision

To provide staff with a safe and enjoyable working environment that satisfies their career

aspirations and justly recognises performance and initiative.

To seek consistent improvement in the delivery of operational and sales support via the

implementation of performance driven business practices, technological improvements

and sales techniques that minimise the cost of service delivery, enhance service quality

and result in satisfied customers who, by preference and with confidence, wish to do

business with our Bank again.

Mission

“Through valued, trained and confident staff deliver timely and accurate operational and

sales support that meets business objectives, satisfies career aspirations and exceeds

customer expectations.”

Operations Plan

The manager must manage or control a designated area and he is measured on results. If

empowered to use others to achieve a specific result then he must communicate what the Aim

or Objective is. He must share his vision.

He will provide the basic comforts like desks, chairs, lights, and a safe environment but then

trust the helpers to undertake duties or roles with minimal supervision. If it is required to be

over supervised then he is likely to be inefficient.

A good staring point is to share the vision or expectation in writing so that the communication

is in a form that all can see.

Refer handout on Develop Your Operations Plan [H/o pp 39 – 48]

The operations plan sets and supports the overall vision and strategic direction if the business.

These plans cannot be set in isolation i.e. all functions have some sort of relationship, relation

or interaction. All must be considered having regard for each element.



In diagram H/o p 39 it shows the relationship between Vision & Goals, Strategic Objectives

and then applied equally to the Marketing Plan, Operations Plan & the Financial Plan.

Let us digress and view this.

Marketing plan – relies on a budgeted amount and therefore is related to the Finance plan and

then to actual Operations.

Again part of this goes back to philosophies like Quality Standards and how much emphasis

is given to client contact. So we need to know about the quality of management by staff in

line with communicated principles.

Classwork/Homework

1. What is your own personal vision for your future?

2. What is the Managers role in running a department or branch in a financial

institution?

3. What elements or items should be considered when attempting to define or write a

business plan?

4. Comment on the use of the principle of 80/20. How do you think it can be applied in

an office? Do you think that it can be adapted for other applications?

5. Using the internet study a bank website and download or copy the Mission Statement

and/or Vision for that institution.



Lecture 2 – Identify Daily Work Requirements (2).

Background Cont. - The 80/20 Principle

[refer handout- The 80/20 Principle p 15 – 19]

This may already be known to you as applied to sales or in some other forum but in basic

terms the application is that the majority of the client base;

1. contribute little to profitability

2. account for most the expenses

3. waste most time

4. etc.

This is usually part of a Total Quality Management system designed to benefit a business and

sets the parameters under which the staff should operate, and should improve business

processes and involve all staff in the maintenance of good business practices.

What is the benefit of having a direction regarding how much service should be applied

towards a client? Discuss the advantages V disadvantages.

Consider the following:

80% of the problems in business will result from 20% of causes

80% of the profits will result from 20% of your products or services

80% of value perceived by customers will relate to 20% of what your business does

80% of revenue will be generated by 20 % of your workers

Commonly called the Pareto Principle or Law it uses the 80/20 rule as a basis for explaining

who contributes or costs what in a business sense.

80/20 Thinking

[refer H/o p 17 - 18]

Resources and Constraints

To be considered under the following sections;

Managing Operations

Managing the Process

Managing the People

Managing Your Place of Business

Managing Equipment Resources

Managing Information

Managing Operations

[refer handout pp 53 -55 in booklet Managing Your Operations]



How operational functions are managed will be guided by the type, special considerations e.g.

qualification, size, retail, wholesale etc. Therefore there is not a blueprint that covers all

situations rather the function tailored to suit the business.

However the basics can be accepted to be the same, viz. creating a product and/or service,

managing resources etc. The employment of the right people to undertake the roles,

coordinating their efforts to achieve the very best results.

Use of Resources

Consider the diagram on p54.

Case Study – Finance Industry

[Read the notes. P 53 -55]

Describe the nature or type of business that is operated in the finance industry i.e. what

it relies upon most to operate

Referring to the diagram on p 54 rank in order the resources that would be used in the finance

industry.

Managing the Process [ Handout ]

[Refer pp 57 – 72]

Here there is a need to consider the process of the business how the inputs are converted into

outputs to meet customer requirements with a view to having an efficient process.

Productivity gains can only come from either;

Cost reductions, or

Increased production or output

Technological advance or introduction has been a large contributor to efficiency as the human

resource has attained its limits. Finding new, better methods for doing things can impact on

cost savings and releasing costly alternate expenditure.

In the work place this can involve a critical analysis of methods that have been in place for

many years. Some simple solutions may improve the performance yet others of more complex

natures might be required.

This can be done by staff or external contractors ‘time & motion experts’ skilled in viewing

operations and testing their efficiencies. A method described in the h/o uses flow charts to

define current usage and to recommend changes.

Define the Problem p61

Generally to try to solve a problem there is a need to establish what the problem is and often

this involves the collection of data over a period of time by the operators undertaking the

tasks. A check sheet is drawn up and handed to staff to compile the statistics.

From the data the aim is to define what the problem or bottle neck is so that solutions may be

sought.



Discuss or Define - What is a problem? Or - What does a problem mean to you as an

individual?

Are the customers a problem?

Is a lack of time a problem?

Is a lack of resources a problem?

Is a lack of knowledge a problem?

Where to improve customer service?

Data collection

Analyse the problem

Problem solving, consider:

The Fishbone Diagram [p64]

80/20 Analysis [p 16]

The 5 Whys [p 65] Keep asking WHY! until the problem is revealed. View the use of

‘why’ theory [p 66].

Case Study Analysis [p 68 – 71]

Although not a problem in the finance industry similar processes can reveal improved results.

What might be an inhibiting factor at grass root levels in applying problem solving

techniques?

Time, inclination, head office!

Managing the People

[Handout - Refer pp73 – 89]

Described as the biggest headache in the operation of a business by managers! ‘Getting

workers to do what you want them to do’.

Yet employees have conveyed that the biggest problem is finding out what management

wants, changing the goalposts, no authority and a lack of feedback on performance.

Five essential elements of productivity are;

Role Clarity

People need to know what it is that they are expected to do clearly & specifically

Correct job placement

Employees to be temperamentally suited to the type of work that they are doing so that they

can derive satisfaction and want to do it well

Competency

People need to be trained properly in how to do the job and given the time to build up their

experience and confidence

Systems Support

Employees need enough time and information, and systems and other mechanisms in the job

environment that help them to do a good job, not to hold back their efforts.

Leadership and guidance

Employees need to be guided or given strong management so that they feel supported.



The keys to unlocking quality performance are what to, want to, how to, and a chance to.

In summary you need the right person in the right job at the right time.

For consideration here are the following aspects of people management:

Staff numbers

Creating an organisational structure

Job analysis and design

Job descriptions and person specifications

Monitoring performance

Staff Numbers

There is mention of how to estimate staffing needs with reference that traditionally managers

run businesses under requirements much of the time. This could be on the basis that although

staff is under pressure they are able to handle it. Additionally, if over resourced, they will

adjust to the lower performance level as well. A method for determination of numbers is

mentioned on p75. The solution could be in the employment of people when required in a less

than full time capacity e.g. casual or part time.

In the h/o there is mention of the different types of employees and consideration of why they

are needed with special reference to the finance industry.

A properly structured workforce can help to reduce costs. Any work force can be made up of

permanent full time and part time staff, plus some contract or casual employment. If monthly

sales are consistent, permanent staff can be considered. However, if sales are erratic, casual

employees will give the business more flexibility.

Small business can rarely afford to carry a full time worker who is not fully occupied.

Consider needs carefully as it is much easier to increase hours than to decrease them.

Therefore there is a need to weigh up the advantages v disadvantages of hiring full time, part

time or casual staff.

Full Time

Part Time

Casual

Outsourced

Consider the descriptions outlines on p76 & 77.

What do you understand by these different categories of staff from other applications? What

are some of the differences in terms and conditions of employment?

Organisational Structure

This is where the structure so that all the workers can work together effectively.

In all efficient businesses staff must know what their roles are and additionally what their co

workers do as well. It is essential that all workers are able to see where their role fits into the

overall business structure. A clear understanding of their role and the expectations placed

upon it will aid in how the job relates to others and contributes to the goals and objectives of

the business.



Any organisational structures should address;

What role each position plays in the business

How each position contributes to productivity

What skills and experience they need

What they will cost

At what stage people will be hired.

Consider the Case Study p 79 & 80

Job Analysis & Design

The aim of the job analysis is to consider the following:

What is to be done

How it is to be done

Why it is necessary

The skills involved

Things to be considered are inputs, work procedures and output. [refer handout]

Job Description & Person Specifications

A job description is an outline of the main tasks and responsibilities involved in a particular

job. It should also include the performance criteria by which an employee’s performance will

be measured. E.g. sales representative to achieve certain set sales targets.

The job description will usually cover;

Job title

Taken from organisation structure

Scope

Broad statement describing the job and its contribution to the overall business

Responsible to

Who will supervise the position or who the position reports to?

Main responsibilities

The main functions of the position


For each function, how the employee’s performance will be measured or appraised

Conditions of employment

The award or enterprise agreement that covers the position is detailed. Detail of hours of

operations including weekend or after hours.

Consider the Case Study on Gourmet Foods [H/o p 79

Monitoring Performance

[Refer H/o p 85 -87]

The dreaded time when someone tells the staff member how they are going. If the role has

been undertaken correctly there should not been any surprises because it is not just a once a

year function rather than an ongoing process.



Performance appraisal should be a tool for improvement [if required] not a process for fear.

The manager can use it to;

Allocate resources

Reward deserving employees

Provide feedback for workers

To identify training and further development

[H/o p 85] consider the section titled ‘Job Description & Person Specification’

Classwork/Homework

1. What is your opinion about 80/20? Do you consider it fair for a manager or business

to dictate to the workers who they should spend time with? Give examples to support

your opinion including negative or positive thoughts.

2. What are the essentials for problem solving in a work place?

3. A client constantly attends the Bank to deposit funds about 5 minutes before closing.

The deposit usually takes 15 – 20 minutes to process and the casual staff are

employed only to 15 minutes after closing. When they process this deposit they are

late to leave. Think of the way in which you solve this problem using the h/o notes

supplied.

4. What types of staff do banks use and why do you think that they do this?

5. Why do businesses need an organisational structure?



Lecture 3 - Monitor and Manage Work (1)

Introduction - Review

The past two Lectures have given us some background to what a manager must do to operate

her or his area [office, domain, branch, department etc] of responsibility.

Exercise - Resource Needs

Give some thought to what resources are needed for you to operate in your office [or an

office], a branch of a financial institution. [Use the list above] You can draw on either past

experience or visits to a financial institution.

Are our needs different if we are a fast food outlet, a boutique or a sports store?

If yes please list the resources required.

Work Activities

The manager cannot do everything in the office, but he is responsible for ensuring that

everything gets done. In the finance industry the task of deciding how many positions are

needed will be done by a representative of administration and might involve a site visit after

statistics have been compiled. After allocation of number it is then up to the manager to fill

those positions. There is some flexibility as the estimate is usually made on full time

equivalents but if part time staff are employed there may be some additional benefits.

After receiving the quota which is generally stated in terms of F/T/Es [i.e. Full Time

Equivalents the manager decides the mix of different classes of staff.

People are employed to assist with this aim and this must be on the basis of having sufficient

staff available to meet peaks as required. As a result many industries employ staff as full time,

part time or casuals.

Although in different categories these groups have their individual rights and conditions of

employment. All, if qualified, must receive superannuation. Annual leave, long service leave

and sick leave are generally available to full time and part time staff. Casuals are only paid for

the actual hours that they attend and therefore they receive a loading that usually covers the

benefits like annual leave that are foregone.

Work Roster

Full time staff will attend core hours generally 9.00 - 5.00 and therefore are expected to attend

each week except for annual leave which must be pre-arranged.

Part time staff usually have set hours for attendance e.g. Monday, Tuesday Friday 11.00 –

3.15. However this might not be the case all of the time in some industries. However, in the

finance industry it is likely that ‘set’ shifts will make planning easier and attract staff seeking

set hours albeit casual. The pay rates for casuals are based on the same rate for full time staff

simply adjusted to reflect the number of hours worked.

E.g. Full time position gets paid $30/hour x 40 hours = $1200



Part timers up to 40 hours can be employed in any combination as long as their hours are the

same. For greater flexibility, 2 or 3 casuals could be employed when required [peak services]

over the five days.

Casual staff might be allocated shifts up to a week ahead and could have quite good hours say

20 hours. This suits those industries that have a need for staff to meet lunch hour peaks viz.

the hospitality industry. However, some casuals might just be used to cover annual leave or

sick leave [perhaps as former employees].

This type of employment may be favoured by a parent with school aged children who are

keen to earn extra money but still be able to commit to be available for their children.

However there is another class of casual who are employed by another company who supply

temporary staff as casuals to certain industries. These types of employees might be found in

Nursing or Finance.

It is up to the Manager to ensure that they have sufficient staff to enable the work to get done.

Therefore there is a responsibility each day to check that all staff have arrived or attended and

if there are any absences to make a decision as to how the absence might be covered. N.b. the

manager does not have to call in casuals, but if a position is left unfulfilled then the rest of the

staff must cover or carry it.

The face of employment has changed over time with changes including the employment of

more women, more people seeking alternatives to full time work, looking for a lifestyle /

work balance and some people simply not wanting to work full time.

This has been assisted by some employers in particular fast food operators seeking to employ

young staff who are still attending school for the profit motive. Of course many TAFE &

University students supplement their existence with part time work.

In summary the work force now consists of a host of individuals who are choosing their level

of involvement in the workforce to suit their period of life or their lifestyle.

Work Allocation

To get the work done it is suggested that the manager must allocate work. In reality, this

might not be necessary or critical as certain roles have little variety e.g. a teller. However

other jobs might not be so reactive or stereotyped and the manager must allocate tasks.

Additionally, some staff might not have time o spend on other duties due to the nature of their

employment and limited hours that go with this.

Often the tasks that are set are in addition to the ‘normal’ role that is generally undertaken by

that officer. Some of these extra tasks are regular but haphazard i.e. they must be undertaken

randomly or they are undertaken regularly but monthly, quarterly, semi-annually etc.

Examples of other than normal work could be returns, statistics, promotions or training.

In most cases time will be created to ensure that these tasks are able to be completed.

Out of this process could come a need to prioritise tasks based upon a business needs basis. A

need to determine deadlines to ensure that the report or task is completed within a certain time

frame.



We will revisit this area in the near future when personal priorities are considered but the

need for an over riding prioritisation might have precedence.

This task needs to be planned and will generally take place at least a week before as it will

need to be communicated to staff that will be involved.

Also to be considered with work allocation and forward planning is the need to plan to cover

for annual leave, sickness, maternity leave or long service leave. With a/l, m/l & l/s/l these are

generally for longer periods of time and usually cannot be covered by the group simply taking

on some extra tasks. As a result there must be some plan to have additional assistance.

In some businesses there are reserve staff who are available for this specific purpose and they

can be booked ahead. The draw on this reserve is sometimes so great that even this is not

available and alternate solutions might be required. The reserve is controlled by a central

administration group who act as the relief staff’s managers.

When there is a projected absence it is a very good opportunity to allocate the task of relief to

a colleague who will step up from their usual role, perhaps do some pre training and

undertake the role with a temporarily increased salary [higher duty]. Of course the problem is

not completely solved as there is now a need to cover the colleague’s role but there may be

many ways to do this due to a lower skill factor or the availability of relief staff, part time or

casuals.

Exercise – What might be the benefits of using other staff from within the office to

undertake a long term relief?

With maternity leave, staff have rights and are usually slotted back into their former position

however they simply have to be allocated the same type of work. Similarly, staff proceeding

on L/S/L should return to their former position but this too might be considered in the light of

the length of absence.

To cover the absence there have been some solutions offered with these generally of an

internal nature.

These days with employment agencies having temporary staff on their books it is possible

that the absence is covered by taking on an experienced casual. The benefit of this is that the

office is relatively undisturbed as the casual slots into the position and for all others it is

business as usual. The only factor here is how experienced the incoming casual or how well

do they know the systems. For many positions this is not a problem as some casuals become

trained in all aspects of a particular bank system and they find themselves regularly employed

by that institution.

However, not all positions will lend themselves to this pre-training and temporary

employment might be offered to an old retired or redundant employee. A temporary

agreement will be made and the temp will work on contract for the stated period at a salary to

be negotiated.

Clearly there are many options that can be exercised to cover these longer absences and it I up

to the manager to seek the option that most benefits the office and causes little disruption or is

most efficient or the least cost exercise.



Getting back to the work allocation aspect, the manager is seeking to ensure that the allocated

tasks are completed within the time frames, the cost structures and overall efficiencies of the

work centre. It is for this reason that the management is most important.

Of a slightly different nature, but also relevant to the allocation process, is the aspect of small

works whether minor alterations or repairs. For the greatest efficiency small works can be

arranged through local contractors but this will depend upon the rules of the organisation. Of

course where the office is located remote to the metropolitan area this might be a standard

arrangement as the cost factor might be prohibitive to use city contractors e.g. Adelaide -

Mount Gambier ( a major regional city 400 kms from Adelaide, the SA State Capital).

Classwork/Homework

1. Name and describe the different categories of staff that may be used in an office.

2. Give an explanation of how two very similar offices that have the same F/T/E staff

allocation can have a different mix of staff.

3. When might the use of contract staff be considered? Give the circumstances and

explain what the benefits are that might accrue from this decision.

4. Who is usually responsible for the determination of what resources are required and

allocated? How would they decide what is required?

5. Through the internet or by other means, research those organisations that provide

casual staff here in South Australia or Australia.




People, Resources and/or equipment are coordinated to provide optimum results

Staff, clients and/or contractors are communicated with in a clear and regular manner,

to monitor work in relation to business goals or timelines

Business goals may include;

Sales targets

Budgetary targets

Team and individual goals

Production targets

Reporting deadlines

Problem Solving Techniques

are applied to work situations to overcome difficulties and achieve positive outcomes

Problem solving techniques may include:

Gaining additional research and information to make better informed decisions

Looking for patterns [trends]

Considering related problems or those from the past and how they were handled

Eliminating possibilities

Identifying and attempting sub tasks

Collaborating and asking for advice or help from additional sources

People, resources and or equipment have been referred to in the previous weeks.

Therefore it is intended that a review of those elements is taken so that we can move forward

to look more at business goals and later problem solving techniques.

We will consider in more detail the separate elements of equipment resources by reference to

the h/o Managing Equipment Resources [p 101 to 110].

In summary the people resource is considered very highly in the assets or resources of the

firm. They are important because they are the link element that generally uses the other

elements. They are the variable in how the fixed cost or expense will be best utilised.

Managing Equipment

In the finance industry, indeed most offices, equipment needs are relatively small when

compared to machinery used in a processing or manufacturing plant.

Exercise - To start off the thought process, please consider the type of equipment and

resources required to efficiently operate an office. Let’s check what you have come up with;



Now its one thing to have some equipment, yet another to see whether it is up to date,

effective, cheap to run or efficient.

With developments in computer applications these days it is no surprise to find that some

machinery or equipment has become dated or inefficient. Take care as a supervisor looking

for a Rolls Royce result from a Kia input might find that it is a physical impossibility to

achieve.

We will consider the equipment issue under the headings that are found in the handout.

Equipment Effective

Equipment Fully Utilised

Equipment Up To Date

Equipment Safety

Equipment Maintained

Computers – a special case

Exercise – why do we need to keep an inventory of equipment and what should the

record cover?

20 Things to Do for a Safe Workplace

Briefly, they are;

o Share any savings in reduced insurance premiums

o Match the applicant to the job

o Install alarm systems

o Report all threats of violence to the police

o Maintain a first aid cabinet and have staff trained

o Meet all OH&S requirements

o Comply with all hazardous material guidelines

o Keep all exits aisles and passages that are clearly marked clear

o Maintain safety guards on machines

o Employees to wear appropriate safety clothing

o Productivity is not more important than safety

o Use ergonomically designed furniture

o Reduce indoor pollution

o Regularly inspect equipment for functionality

o Appoint a safety officer with authority

o Send ill workers home rather than have them work on machinery

o Have emergency response plans for natural disasters

o Practice evacuation drills



o Enforce good non-smoking prohibitions

o Make OH&S a standing agenda at meetings

N.B. the above are probably most suited to a factory, however many of the applications would

apply to any office. You might be able to think of some others that might be applicable.

Materials & Stock

p111-127

Considered a major item in manufacturing but not as important in an office, stock in this case

would refer to supplies essential to the process of providing service to clients or staff.

In this area stationery would be a major consideration viz. paper and to a lesser extent pens as

these are the main consumables in an office sense. To ensure stock [paper etc.] is available a

system of stock control should exist so that the office does not run out of it. Additionally large

stockpiles of goods that will not be used for some time might have an opportunity cost

attached. At the same time the balance between too little v too much must be addressed.

The stores must be under someone’s control and responsibility and there must be some

authority for ordering. When received they must be stored and placed perhaps in a safe place

as they have the capacity to be over utilised if not controlled.

Staff, clients and/or contractors are communicated with in a clear and regular manner,

to monitor work in relation to business goals or timelines

Business goals may include:

Sales targets

Budgetary targets

Team and individual goals

Production targets

Reporting deadlines

Let’s consider the above elements and offer explanation should there be any

misunderstanding.

All of these targets, goals and deadlines must be communicated to those people expected to

perform to some sort of level. This should include support staff directly involved in the

business unit. Therefore, in a business banking unit it is appropriate that the Credit officers

are aware of what the sales force has been asked to complete.

However, the aspect of targets does not rest solely with sales. All departments have their own

areas of control or responsibility and contribute to the overall efficiency or profit of the

organisation.

This impacts over every department even those in support of the actual production or sales

function:

Stores – excess stocks are costly, chance of obsolescence, stock shortages

Delivery – late deliveries lose future orders

Human Resources – recruit wrong staff, inefficient in replacing staff, wrong pay rates

Production – too much, too little



Safety – lost time due to poor practices

There is not too much point in putting guidelines in place if there is little or no effort in

ensuring that they are maintained, checked or actually aimed at. Therefore there is a need for

reporting against the targets on a timely basis and perhaps independent checks of work

practices. Rewards and penalties should feature in this type of function.

Some functions are so important that they must be conveyed on a regular cycle. It is important

however that the importance of these messages is not downgraded or watered down due to

this process. The method of conveyance should be varied at least once a year to ensure that

the message is still considered important.

Exercise – Why do you think we have made the statement that the message is to be

treated as important? Make some notes for our discussion.

The above suggests that with targets that there will be some measurement and therefore some

comparisons about effectiveness of the individual or unit. Looking further performance might

have some affect on things like pay, bonuses or promotion.

Therefore it is important that the internal communication is effective, timely and relevant.

Reference of communication to the client is not the same but will determine how much we

communicate with existing and prospective clients. The act of communication is more than

just giving a message. Any correspondence must be clear and capable of being understood by

the end user. Should there be penalties or rewards then these should also be part of the

message.

Classwork/Homework

1. What are the various alternative names for ‘Targets’?

2. Why is the management of equipment considered important to a business? What

types of controls should be included in this area?

3. What are the consequences of ‘poor’ stock controls?

4. What would you do if it was clear that there was going to be a delay in the

completion of an order?

5. Choose five of the ’20 things to do for a safe workplace’ and explain how they would

be expected to impact on the worker.




Review

We will review last weeks work and then move to the task of Problem Solving in an office

context.

How important are the functions that do not necessarily have direct access or contact with the

public?

In the finance industry what are the so called production areas? How can they impact on the

sales function?

In regards to equipment how much impact does this have on the overall efficiency of the

operations?

Problem solving techniques are applied to work situations to overcome difficulties and

achieve positive outcomes

Problem solving techniques may include;







Problem Solving

How often are we called upon to solve problems? Depending upon perspective, it could be

said that everything that is done in managing a business, our lives results in a solution of

some sort or put another way ‘solving a problem’.

Take the journey to TAFE, because this is done often it is an automatic reflex action and not

given too much thought. However, if considered in its own light, there are choices for making

this journey:

Walk

Cycle

Drive car

Public transport

If we take a poll it is likely that at least two of the options have been exercised.

Given choices or alternatives there is a need to weigh up the options and then to choose one.

If the journey is repeated later in the week then the decision process is presented again. Just

because a mode of transport was chosen last time, it does not mean that it will always be this

way [although often it will]. Different circumstances can intrude like attending a function

after TAFE or practice for a sport etc.



It might be that you don’t think of what you have solved as being a ‘problem’ which we

usually associate with the extraordinary events that cause us grief or discomfort. Yet the skills

that are employed are exactly the same, whether they are getting us out of a crisis or just

carrying out daily activities.

In all problem solving cases there is a need to understand the problem.

Understanding the Problem

Before you devise a plan make sure that you understand the problem.

To understand the problem there is a need to find out what is causing the problem and then

how to remove it.

An example: Turnover of a product is unacceptably low and there is a need to examine why

the product sales are low.

Is the product really what the customers want?

Are customers aware of its benefits?

Is the price right?

Am I able to supply it when and where the customers need it?

Is it the right colour?

Are the traders pushing other similar products due to the commission paid?

All possibilities should be investigated!

If there is not a simple solution then the solution must be given importance in the context of

strategic planning process.

The inability to solve problems often is caused by restricted thinking or stereo type thinking.

Often a fresh set of eyes can provide a solution which when solved leads the original solver to

state ‘how silly of me’ or ‘why didn’t I think of that?’ or ‘it was staring me in the face all of

the time’.

Problems are very close to being solved and only restricted by the ability of the observer to

apply an unrestricted focus to it. Drawing on the past experiences is important but so is

opening the mind to alternate solutions. Not simply stating ‘but we have always done it that

way’.

Challenge – Think Differently

‘If at first you don’t succeed, try something different’

Most people when faced with a problem tend to apply themselves harder and put in extra

effort – working harder not smarter. You could be excused for thinking ‘if I could do

something different I already would have by now!’

However we are so used to thinking in a particular way we no longer notice that it is just that

way in effect only one way of thinking.

If the work allows think differently by interpreting the messages that are on the overhead.

Exercise - What do they mean?



e.g. EMPLOY T = MEN OUT OF EMPLOYMENT

MEN

Consider the others and record your answers for discussion.

When these answers are revealed you will appreciate how a different perspective may have

assisted you in coming up with the solution which is not really obvious at first glance.

How did you go? How is this going to help me to solve any future problems?

Simply be prepared to clear the head of all prejudices and seek to exercise the brain to

accommodate things that are already before you.

Unfortunately, some of the prejudices of working in environments that are too set in their

ways or where the problems have already been solved will deflect us from using our problem

solving techniques. However, we might be able to apply them in other settings perhaps in the

home.

Change Language & Change Thinking

The way that we use language conditions us to how we interpret what has been said. Once a

phrase or words are conveyed the brain receives them and interprets them automatically.

e.g. if someone says ‘whose is that dog?’ The mind interprets this clearly and we look for the

dog. If someone said ‘what is that running out there?’ It might still mean the dog or some

other animal or human running or perhaps the noise of a tap that has been left on.

In this case dog is a noun and running is a verb, a word describing an action.

Instead of thinking in terms of things the mind thinks in terms of actions and changes the

emphasis of how to think.

Take the act of smoking. Why do some people give it up quite easily whilst others struggle

with the process? Is it because some of the people consider smoking as an activity that they

wish to dispense with or others consider themselves as smokers a statement or description of

who they are?

‘The Six Hats’ by Edward de Bono [ ref. pp 70 – 76 Manage Your Time – Problem

Solving]

Edward De Bono is a well known writer who has published many books on problem solving

and lateral thinking. One of his techniques is called the ‘six thinking hats’, where six

coloured hats represents each basic type of thinking. When you are up against a problem, and

need to put your thinking cap on, you will need to decide which hat you will wear – which

kind of thinking that you are going to use. A bit like a golfer who has up to 14 clubs in the

bag but must choose which club to employ for the next shot. De Bono’s six hats are:

White Hat – gather information

Red Hat – use your emotions

Black Hat – exercise caution and judgement

Yellow hat – search out positive aspects

Green Hat – be creative



Blue Hat – take control

Lateral thinking does not use the traditional step by step process to solve problems but allows

the mind to range over different possibilities that the problem suggests.

One of our problems is that mind tends to make assumptions as soon as it is confronted with

something new. Gap filling is the biggest single barrier to creative problem solving.

Filling in the gaps;

* * * *

* *

* *

* * * *

What do you see when the following figure is presented to you? Write down your

answer so that we may discuss it.

There is obviously no right answer although many of us will come up with the same or a

similar answer.

If we do this while discussing or negotiating with another person, there is a good chance

that we will miss the point by substituting our own interpretation.

Please consider the following statements;

A; I think that Australia doesn’t need a monarch!

B; Don’t be silly! A president would cost ten times more.

What has happened here is that B has filled in the gaps that aren’t necessarily there.

Let’s consider the h/o problems to see how they might be interpreted. Consider the

following statements on the overhead. Do them quickly, have some fun with them!

Of course problem solving in the real world can be fun or serious or what ever you want it to

be. Opportunity to solve problems should be grasped as an exercise that can be worked

through bringing forward new outcomes after stepping out of the preconceived prejudices that

we all have.

The following steps have been suggested as a process for problem solving’

Felt a Need [identification of the problem]

Analysis of Causes

Analysis of Possible Solution

Action Plan

Problem solving techniques may include;









Now placing this problem solving into context let’s consider the above points.

Additional Research

In a loan application the easiest method for dealing with a decision is to simply rely on the

facts given at face value and come up with the decision to Decline. A good analyst will go the

extra distance and by questioning what has been presented and making enquiry perhaps find

sufficient information to justify approval.

The additional research may be gleaned from external sources and the banking industry

supports clients in going to government departments and professionals like accountants to

give the application its best chance. All major banks have forged contacts with these third

parties.

Also, in the event that something does go wrong later in the process then the amount of

additional research undertaken is a positive when trying to find out what went wrong.

Remember in business things do go wrong and often it is not the fault of the decision maker

or even the business client.

Looking for Patterns [Trends]

Business has the ability to generate considerable amounts of data about its own clients. In the

banking industry this can be used as a positive or negative but in support of the decision. Of

course other agencies like the Australian Bureau of Statistics compile information on industry

which is available to the public. Industry trends are important for new business applications

and for the process of ongoing business as trends can change e.g. recent trends in the wine

industry.

These sources can convey additional information regarding their particular industry and some

are the basis for prediction which could assist a decision maker.

Considering Related Problems [or those from the past and how they were handled]

In some ways experience is an invaluable source for the solving of problems. It may be

personal or within the team or simply from external sources or agencies.

Sometimes it may be difficult to locate external sources but a very good example is the

government agency Austrade which has been established to assist international trade with a

special emphasis on new entrants.

Some of the information will be a positive to go ahead whilst other experiences will convey a

very firm negative outcome through that source of action.

Case studies are an excellent method of investigating how business [in a similar industry]

handled a specific problem.



Personal experience of handling clients in the past will generate ideas on how to handle a

particular problem. If a new operator then the experience and ideas might be offered by

another operator who has done it before and is prepared to assist with solutions.

Eliminating Possibilities

Remember the challenge to consider things differently and to give consideration to a wide

range of possibilities without being weighed down by specific parameters.

What this requires is to consider the range of possibilities and to work through them

eliminating those possibilities that are either too difficult or that do not fit or solve the

problem.

Identifying and Attempting Sub Tasks

Breaking a big problem into a series of smaller problems may assist in the overcoming of

barriers.

This requires an ability to consider the bigger task and to break it into smaller portions for

consideration, solve or decline to proceed further.

Collaborating and Asking for Advice [or help from additional sources]

This is similar to considering related problems given that the net for advice might be internal

or external.

Exercise 1 – Two people have called in sick in the business banking unit where there are

usually four people. What action might be appropriate for this problem?

[As a start list what the problem is, how it might affect the business unit. List the choices that

might be involved in the solving process.]

Exercise 2 – Two people have come to you and requested leave at the same time and they

already know that it is against company policy. What are you going to do?

Exercise 3 – There is a trade show at which bank products can be showcased. It is expected

that staff should attend but the financial institution is already over budget in respect to wage

expenses. How much you achieve the objective of attendance and yet still satisfy the budget

constraint.



Classwork/Homework

1. What are the six hats that de Bono has suggested in the process of considering a

problem?

2. What might be a challenge to the notion that we should try to think differently.

3. Our records indicate that sales turnover is down as compared to past years trading.

What sort of action might be taken to increase sales for the following year? Outline

your strategy for solving this problem.

4. List and briefly describe some problem solving techniques [at least 4] suggested for

application in the work place.

5. A business needs reasonable supplies of raw materials. However, it has been found

recently that when material was obtained from the store it was damaged and appeared

to be old stock. List the actions that might be taken to solve this problem.

Lecture 6 - Revision

Lecture 7 – Assessment 1



Lecture 8 - Develop Effective Work Habits (1)

Work and personal priorities are identified and a balance is achieved between competing

priorities using appropriate time management strategies

Time management strategies may include:

Prioritising and anticipating

Short and long term planning and scheduling

Creating a positive and organised work environment

Clear timelines and goal setting that is regularly reviewed and adjusted as necessary

Breaking larger tasks into smaller tasks

Getting additional support if identified and necessary

Input from internal and external sources is sought and used to develop and refine

new ideas and approaches

Internal and external sources may include:

Staff and colleagues

Management, supervisors, advisors or head office

Relevant professional such as lawyers, accountants, management consultants

Professional associations

Business or inquiries are responded to promptly and effectively

Information is presented in a format appropriate to the industry and audience

Effective Work Habits

In this topic there will be an exposure to how individuals can benefit from thoughts of better

ways of doing things. Of course if yours is a closed mind then there will be little to be gained

from this topic. However, because you don’t have too many bad habits [yet] you should be

able to take some of these suggestions and apply them in the work place.

Be warned that just like with problem solving there are already quite firm guidelines in place

and some offices will want you to follow established practice. However, take heart for if you

can find a better way of completing the work provided it is quicker, no more expensive etc

you will become more efficient and ‘shine’ as a good worker.

It is in the area of time management that we will concentrate and the handout appropriately

from The Small Business Management Series, Manage Yourself called Time Management

[p 47 to 66] will be a source of information. [These notes will be our lecture source,]

Deciding What is Important [p 47 – 48]

Answer questions like ‘What am I doing this for?’ or ‘Is this really what I want to do?’

Before you can manage time you need to know what time is!

Event Management [p48 – 51]

What is Time?



How Much Control Do You Have?

Recognise that in undertaking a particular task or action that there is always a choice

involved.

False Beliefs About Control

Sometimes the task appears too difficult and cannot be done, yet with an incentive it suddenly

becomes achievable.

Choosing a task over another involves the process of prioritisation.

Estimating & Managing Task Time

[p51]

How to Handle Optimistic Bias

Often students miss deadlines because they delay the start of the task and they are optimistic

about their ability to finish a task quickly.

Where Does Your Time Go? [p52 – 57]

Time Wasters

Meetings,

Waiting for replies,

Weak job definition

Bureaucracy

Travel

Work overload

Bad communication

Mechanical problems

Altered deadlines

Changing priorities

Other peoples’ errors

Interruptions

Lack of planning

Lack of priorities

Over commitment

Management by crisis

Paperwork & reading

Routine & trivia

Visitors

Telephone

Indecision

Lack of delegation

Compulsive Time Usage

What category do you fit into?

1. Hurry up

2. Be Perfect

3. Please me

4. Try Hard

5. Be Strong



Time Management Techniques [p57 -60]

Techniques for Success

Set priorities and do Essential Tasks First

Do Related Activities Together

Break Big Jobs Into Smaller Tasks

Schedule events in a Timetable

Focus on One Task at a Time

Complete Tasks

Take Action Now

Prepare a daily to do list

Make all telephone calls in a block

Maintain a planning calendar

Organise your selling tools

Save time on the run – mobile phone

Use of e-mail

Territory management

Plan sales calls

Quiet Time

Consider how these answer the list of time wasters!

The last few suggestions have been provided by the text Selling Today 8th edition by Manning

& Reece

Refer [p 58] Set Priorities and do Essential Tasks Now!

A four step process ‘To – do list!

Solutions for Timewasters [p 61 – 63]

Time Wasters Causes Solutions

Lack of planning

Lack of priorities

Over commitment

Management by crisis

Paperwork & reading

Routine & trivia

Visitors

Telephone

Indecision

Lack of delegation

Solutions to Compulsive Time Use [p63 – 65]

Solutions for 1) Hurry Up, 2) Be Perfect, 3) Please Me, 4) Try Hard & 50 Be Strong

Essential Tools

Summary - Common Time Wasters

Staff

Interruptions

Too accessible



Lack of training

Compulsive Excessive

Lack of Delegation

Telephone Calls

Too accessible

No private time

Poor planning by operator

Failure to Prioritise and Plan

Haphazard management

Undertake the easy tasks first

Procrastination

Delaying the inevitable by avoiding the big issues

Wandering

Smoke or tea breaks

Sociable

Paperwork

Keeping ‘important?’ papers handy

Poor filing

How long has it been there?

Meetings

Meeting for the sake of meeting

No purpose

No Agenda

Necessary people absent

Timing is poor

Insufficient information for a decision

Trivia discussed

Constant interruptions

Customers

Too accessible

Sociable

Inappropriate classification

Inappropriate placement

Summary

Time management is often a failure of the individual i.e. personal as well as business. The act

of time management should be practiced by all and there is no time like the present to begin.

Consider how you deal with your personal time now. Are you drifting along without much

consideration for time just because you have plenty of it? Are you always struggling to get

places on time? Do you always have to say that you are sorry for being late, for not

completing a task, for an extension to the assignment? These are classic signs of time

mismanagement but the good news is that they can be fixed with a little effort.



Time management tools do not have to be complex, a pen and a piece of paper is all that are

needed to make a list of ‘things to do today’. Other tools that can be used include a diary, a

computer or telephone with the only limiting factor in place _ you or your imagination!

Classwork/Homework

1. Why is time considered so precious to so many people?

2. What steps can an operator take to ensure that time is allocated to the tasks

required to complete sufficient work for a week?

3. What is more important, helping another staff member or completing the

application for finance? Please discuss this question.

4. Critically analyse your personality and conclude where you fit into the time

management area. Are you a good user of time or do you waste time including

the time of others? Make a list of things that you can improve.

5. What are some of the tools that you think might be useful in a time management

sense? In your answer convey how you would use them.



Lecture 9 - Develop Effective Work Habits (2)

Work and personal priorities are identified and a balance is achieved between competing

priorities using appropriate time management strategies Time management strategies may

include:

Prioritising and anticipating

Short and long term planning and scheduling

Creating a positive and organised work environment

Clear timelines and goal setting that is regularly reviewed and adjusted as necessary

Breaking larger tasks into smaller tasks

Getting additional support if identified and necessary

Input from internal and external sources is sought and used to develop and refine new

ideas and approaches

Internal and external sources may include;

Staff and colleagues






Staff & Colleagues

Internal Sources of New Ideas & Approaches

In the context of solving problems and learning there is no better source than from other staff.

It is cost effective, motivates teacher & learner, and provides valuable back up support and

flexibility. This has long been recognised through processes such as on the job training,

internal staff training, internal courses and simply asking for help. We will investigate these

aspects of acquiring information.

On the job training

When ever possible, it is important to develop staff in facets of other jobs. This gives the unit

flexibility, the ability to cover sickness and absence and also develops the individual giving

them a sense of advancement or importance.

As suggested on the job literally means sitting alongside another worker observing what they

do and being given the chance to do the tasks albeit under close supervision in the initial

stages. After development of the skills, taking over and completing the specific task. Initially

it may involve learning particular facets and then finally completing the duties in a relief.

The process is gradual but thorough and at the end of the time will assist the general

efficiency of the office and end up with a more experienced officer capable of promotion to

the next level.



Internal Staff Training

In this context we will consider the actual training of maximum 20 minutes duration delivered

by a team member to others in the team.

The subject is chosen and then allocated to a specific team member for delivery to all others

in the group. Before attempting this role it is beneficial for the staff member to have had

training in the preparation of training including lesson plans.

The allocated trainer usually has some experience with the subject matter although this is not

mandatory as staff must deliver new product releases and the training that goes with it.

It is expected that the trainer or presenter will be quite formal in the approach with a lesson

plan, notes, handouts, overheads or practical demonstrations part of the approach. The use of

whiteboards, questions and answers all complement the presentation.

A real benefit of these sessions is that they are able to be delivered at the work place and little

time is lost for travel or absences. Some organisations have a regular ‘slot’ each week when

staff training topics are presented.

Internal Courses

Most financial institutions have an internal training division situated in their main office [head

or capital office]. Specific staff are selected and given additional training either externally or

internally and they offer courses of benefit for the staff of all areas.

These courses are specific in their nature and target all areas of banking like customer service,

credit appraisal but also areas such as time management, anger management and leadership.

They are usually topics offered regularly but at various times of the year on a repeat basis and

often presented by special trainers.

The course dates are advertised and either staff will ask their manager to include them in the

training

Selection for these courses is usually the province of the manager, because the attendee must

be freed from their usual duties to attend at the central point, usually the capital or head

office. This raises the issue of how best to cover the absence perhaps by the use of part time

staff attending for extra hours or simply covering from within the work unit.

The courses are well designed and delivered by experienced trainers as compared to the

varying quality of other internal trainers who are just undertaking extra duties and perhaps

have other pressures.

Help

All banks have guide books that convey the basics of how products work. Sometimes, time

permitting, staff may be able to work through the guide and come out with the solution.

However, when faced with a customer enquiry there is not a lot of time for research and the

assistance of another more experienced employee might be sought.



If this required some efforts should be made to ensure that the inexperienced staff member

learns about the product so that they will be able to deal with it by themselves next time.

Other

Some of the larger financial institutions have training facilities located away from the capital

office. In the case of the larger banks, they generally have stand alone facilities that are used

by selected staff from throughout Australia. Given the cost of transporting staff and the fact

that they are of a residential nature they are a big investment and cost to their organisations

and therefore the selection of staff for these courses is an important process.

These courses can be of up to 2 or 3 weeks duration and may involve supervisors and

managers with delivery by head office experts. Additionally external experts may be guest

presenters.

Formal Courses Externally Presented

Since the 1990’s there has been a trend for all staff to be trained or exposed in the changed

directions of customer service, business analysis etc.

These often involve the contracting of external training companies who employ staff who

have little or no knowledge of the running of the bank.

All banks at some stage have delivered a new ‘customer service’ course, leadership &

management course and where required analysis of financial statements.

These are accepted by the bank management and then delivered by outside consultants.

They can be residential or day release but importantly the delivery is usually at an external

point.

Tertiary Education

There are a number of courses that offer assistance to finance employees so that they can

improve their knowledge and perform better in their job.

TAFE has always offered courses but is just one of many institutions that offer assistance.

Attendance is voluntary and some staff may attend after hours to gain their qualification.

Courses are also offered by universities and related institutions. The financial institutions do

offer assistance for staff to study like course fees, text book costs and even time off to attend.

The aim of giving support is that staff will accelerate their knowledge for the benefit of the

organisation and their career.

However, these days having a piece of paper will not guarantee promotion, rather it should

give the participant a wider appreciation of material required for the industry and more

importantly shown that the employee is prepared to make a greater effort to succeed in the

chosen vocation.

It also proves that the participant has determination to succeed together with a thirst for

knowledge.



What should be studied? This is a good question and it depends on the institution, the

individual or the desired career path required. An example of this is the Financial Planning

path where participants must have a qualification before they can give advice. Additionally

there is a requirement to keep knowledge updated with a commitment to the completion of

tests and additional study on a regular basis.

Of great importance to any individual is where does the study present opportunities in the

current employment and is it marketable or useful outside as well.

An accounting degree, diploma or certificate has many applications in and outside the finance

arena and therefore is considered useful. Other useful qualifications are Valuation, Financial

Planner, Economics, Applied Finance or Mortgage Broking. [There may be more!]

Education Supplement

The Financial Services Institute of Australasia [Finsia] is the group that advises the

industry of courses that are relevant and available to employees of financial institutions.

Although Finsia successfully conducted financial services training for many years their

education arm was sold in 2007 to KAPLAN, a commercial training services provider.

Information on their courses can be obtained through their website:

http://www.kaplanprofessional.edu.au/

You may notice that there is mention also of diploma and certificate courses offered by the

KAPLAN and of course these are also offered through institutions like TAFE.


Much of the foregoing can be attributed back to the managers, supervisors and head office.

However from time to time they may participate either in topic preparation or in training of

other staff. This often happens where a particular manager has become the recognised expert

in the state and where her or his specialist knowledge might be valuable to others. Areas like

the finance company products that can be sold by all are where a specialist might participate.

Head office might have a similar brief in the transmission of expert knowledge to others.

Specialist products would include:

Micro pay

Accounts Receivable Finance

International Trade

Others

External Assistance

External sources may include:





If there is a link to any associations then assistance may be available from the professional

activities offered by them. This is usually only available to members but guests can be

introduced as long as they pay the fee for the course. In general terms the associations exists

to assist members with information, education, courses and members’ services including

monthly [or bi-monthly] magazines.

This other source of information, provided in regular monthly magazines, contains articles

about various topics. These can be shared with colleagues if they relate to problems or are

associated with the workplace.

Another important source of information from professionals comes through business

association either through referral or perhaps as a client. If the association or rapport is strong

enough a simple phone call can assist with the provision of information on a topic or an

industry.

It is important that it is recognised that for this referral to be effective there should exist a

strong rapport with the professional with perhaps the presence of a mutual client being the

catalyst. In this way the professional is solving a problem for their client and assisting in

perhaps getting a loan.

Areas that are usually covered in this context are taxation [personal, company and goods] or

law particularly the use of trusts and how they impact on beneficiaries.


In the context of effective work habits it is good business sense to respond to business

inquiries in a timely fashion. However in covering this aspect it would be good to give

attention to the things that have been discussed in our Time Management.

A quick response to all inquiries might be to the detriment of other activities. This means that

there can be a balance between availability and getting the necessary work done for other

clients. Therefore there are occasions where planned or blocked ‘quiet time’ is okay but

where others will cover the absence and take messages. Try to program some time to get back

to those messages the same day.

Sometimes the inquiry can be dealt with by another in your team and this simply means

conditioning both team members and clients that others may be able to solve problems

especially those of a general nature. Ensure that the client knows all team members.

However it also good business practice to get to know the clients and to establish those that

are prone to time wasting and those who really only telephone when there is a problem.

Additionally, some might be very important in terms of funds generated and therefore need

the special attention.

Having said that it is important that there are some rules for conduct and contact.

When dealing with complaints it is a written rule that someone must take ownership of the

problem and whilst it may not be possible to solve all problems immediately there should be

an undertaking that there will be a follow up within a certain time.

The client is looking for their problem to be:



Easily reported

Acknowledged

Dealt with quickly, sensitively and fairly

Complaints that are dealt with quickly often stops them escalate into major problems.

Neglecting to follow up or returning a message could be the first fissure or crack in any

relationship.

Not addressing the issue and providing wrong information or excuses is a quick way to a bad

relationship.

When the phone rings in the office all team members should be aware of the whereabouts of

others in the team. Another phone ringing should have a message facility or be answered if

possible within 3 rings. This gives the impression that the office is efficient and is concerned

about all calls.

These days with phone technology being of such a high order there is no excuse that people

should be uncontactable. Recorded messages, the ability to divert calls and an all round team

effort should see this as a potentially strong part of the business.

Remember if you tell lies or make up excuses then you need to have an excellent memory.


In business there is the opportunity to have contact with clients from all walks of life, some

who have strong education backgrounds and others who have little formal training.

To address all in the same manner is a recipe for disaster. If all are treated the same then there

is likely to be a problem especially if the assumption is made regarding ability to absorb

technical aspects or business jargon.

On the other hand if the client does have a good understanding, to avoid offence, then the

communication should be couched in technical terms rather than being too simple.

In all cases at some stage in the negotiation or relationship there will be a need to place

information in writing and often to seek a confirmation that the message has been received

and understood.

Of course industry standards are quite clear and the processes for conveying information are

quite well documented with all clients able to receive approvals in writing.

Documents that are used conform to the legal requirements of the law and although not

particularly user friendly for their understanding are usually a standard format for

presentation. Additionally, copies of these documents can be provided but they are not very

easy to understand and perhaps might require a lawyer’s involvement.

Remember a verbal communication is not worth the paper it is written on! How many times

has your interpretation of what was said differed from the actual message?

Exercise:

Winning Customer Ways



Y N

1. Are you cheerful and smiling at all times when you deal with clients?

2. Are you able to „transform‟ yourself into a happy state before dealing

With clients?

3. Do you approach clients with a cheerful greeting always?

4. Do you avoid situations that might prompt sad responses?

5. Do you try to uncover the client‟s unconscious emotional needs?

6. Do you follow up with the client and ensure that the client has all that

they need?

7. Do you try to make the conversation as simple as possible?

8. Do you undertake to follow up an outcome at a later time?

9. Do you try to sell the client services the Bank wants her or him to have?

10. If the caller wants to speak to another person do you offer to try to solve

the problem?

Classwork / Homework

1. What do you consider a tertiary qualification adds to the ‘tools or expertise’ of a

participant in the finance industry?

2. What does on the job training entail and what are some of its benefits?

3. What are some of the benefits of attendance at external courses?

4. The customer is important but how important? Discuss this statement in the context

of time management.

5. Why is it important to tailor information for different clients?



Lecture 10 - Interpret financial Information (1)

Introduction

Any accounting study will introduce the student [if not already exposed] to the books of a

business. In effect the books are the collection of ledgers that a business utilises to organise or

report how it is doing in a financial sense.

The number of ledgers [accounts] that a business requires is very much up to the owners as a

business could exist with very few ledgers. However, to make things easier for statistics or

balances or information that is relevant to the running of a business, there are often a

reasonable number of ledgers or accounts. Added to this is the aspect that different industries

or activities have differing needs.

In short the ledgers are designed to reflect the needs now and in the future of

management/ownership.

The ‘books’ are the internal operations of the business and as such it should be construed are

confidential to that business. However, from time to time external agencies might have an

interest in those confidential records. Who might these outside agencies be?

If a company or a partnership is applying for new or continued debt the financial

institution of choice might want to see the financials so that they can verify the ability

to service debt.

The taxation department might want to see the books!

ASIC or ASX might want to see a companies records.

The police might have an interest.

A prospective buyer for a business might want to see how the business has traded in

the past.

A bank will want to see financials if requested to lend to a business and also as a

condition of ongoing loan conduct.

The right to view the records might be enshrined in law or simply a condition of doing

business, but it is safe to say that many businesses open up their books to scrutiny by others.

In the context of banks it is important that its staff dealing with financial records have a better

than average understanding of how books are compiled and to some degree how they can be

manipulated to present a view or a contrived result meant to confuse or trick the reader. It is

with this background that we consider the topic of financial information interpretation.

Warning this topic is meant to put you on guard when viewing financials that all may not be

as it seems.

Interpret Financial Information

Relevant documents and reports are identified

Often referred to as „financials‟ the financial records that are viewed or presented to the

banking institution are;



Balance sheet

Trading, profit & loss, revenue statement or statement of income & expenditure

Taxation return or lodgement

Company report

A balance sheet is a listing of assets [things of value] and liabilities [amounts that are owed]

together with the stakeholder’s interest [aka ownership, equity, proprietorship, shares etc].

A trading statement [aka Profit & Loss statement, Revenue statement, Income & Expenditure

statement etc] gives an indication as to how the business is trading.

Taxation lodgement is where the income & expenditure is assessed for calculation of the

incidence of tax on the business. The majority of businesses would provide the financials as

proof of the trading i.e. balance sheet & trading statement.

Company report has special rules re lodgement and contains a balance sheet and trading

statement.

It is likely that in some future role within the finance industry or any other industry for that

matter that there will be a need to interpret financial information. Depending on the role the

level of interpretation will vary.

Therefore there is a need to understand what is required of the job and then to act accordingly.

For example if part of the duties was to audit the account receivables account there would be

a requirement that the officer would know the rules for giving credit, the rules for follow up,

collection write off procedures and simply where to find the actual record of accounts

receivables. In short there would be total understanding of what is required to do the job.

The skills, expectations and requirements of a Credit Analyst as compared to an Auditor are

likely to be quite different given that there are different expectations of each role.

The Credit Analyst would be considering financial information prepared by a third party for a

third party but provided for the purposes of the analyst considering an application for

borrowing funds.

It is therefore expected that the analyst will know what information will be required and what

must be done with it including extraction, calculations like ratios and then interpretation.

Considering our accounts receivable audit the employee will be dealing with an internally

generated report in a format that will reveal an ageing of accounts and perhaps records to

indicate any action to write off old debts suitably approved by an authorised officer.

The question might be raised regarding a suitable qualification to undertake these roles and

whilst education is important it is often not a prerequisite provided the internal training has

been applied and is appropriate.

Of course once the task has been completed there must be protocols in place for the reporting

that the task has been completed. In the case of the Credit Analyst it will be the completion of

a report detailing all aspects of the application together supporting comment for the decision

process.



The matters that are found should be first investigated and reported to the account keeper but

the person charged with the investigation should never compromise their report as the book

keeper will have the opportunity to answer any query raised but through the correct forum.

In summary, depending on the role undertaken, the records to be viewed will vary with

external reports for loan applications usually sufficient for loan decisions but more detailed

examination of the actual books of the business by auditors or complex arrangements.

However, staff would be expected to have a good knowledge of company reports and how to

view the information contained therein.

Owners of companies should also understand what the information in the financials can tell

them about the company and perhaps alert them to problems existing or in prospect. Of

course some owners use an accountant either internal or external for this purpose if their skills

in this area are lacking.

Documents and reports are read and understood and any implications discussed with

appropriate persons

The questions could be

How much referral must there be with the preparer of reports?

Who can I refer to?

What access can I have to the business records?

These are not straight forward questions with simple answers and will depend on the owner

and the enquirer.

In the internal document the process could be simple if the person undertaking the audit has

authority from the owners, legal authority etc as the clerk simply must comply and furnish all

information that is requested.

It is very important that the information that is offered is freely available from the system and

not subject to adjustment by the controller. Often a duplicate set of reports will be

automatically generated by the system or a specific report featuring or highlighting

irregularities will be generated. It is these documents that form the basis for investigation and

if necessary questions raised as a direct result of this document. [N.b. this is not to be

confused with the maintenance of two sets of books produced for purpose of deceit or a

managed result.]

Fortunately, when documents are offered to an analyst, auditor, due to their training and

background most will be able to be followed or interpreted without too much referral.

With external documents the matter is perhaps potentially more difficult as the external

accountant has prepared them specifically for her or his client [the customer now seeking the

loan]. He may not know that they have been referred to the financial institution.

To overcome any potential problem when a client applies for assistance an authority to

contact third parties should be taken. Provided the contact with the account is genuine [not

frivolous] then it is usual for contact to be direct and purposeful. Any cost from this action

would be billed to the client not the institution.



Items that might be covered could relate to specific entries or accounting methods like

depreciation or write offs of receivables, profit calculations, valuations of assets viz. stock.

The implication here is that the reader will understand the financial information sufficiently

that they will be able to ask questions. In this regard the working papers should form part of

the overall file so that if required they can be provided to explain decisions.

To become competent for the task of reading financial information then attendance at tertiary

courses, internal institution courses and on the job training will assist the operator. However,

many operators have only as superficial knowledge of the analysis process and therefore their

judgement might be flawed with heavy reliance on the backstop – security on offer.

What is the right amount of referral? The right amount of referral is variable and the right

answer could be that an analyst should keep seeking answers until satisfaction is received.

Data and numerical calculations are analysed, checked, evaluated, organised and

reconciled

It is not the province of anyone who is analysing or checking accounting information to re-do

the books of the business that they are considering but to satisfy themselves that they truly

represent the actual position of the business. Part of the process these days is for the

information to be extracted from the financials and to be input into a computer program. This

will automatically confirm whether the additions are correct, however entries that are wrongly

input to ledgers cannot be detected.

These days much of the process of ratio analysis is undertaken automatically by the computer

once the information is input. In this input function the program highlights any inaccuracies

and of course these could be taken up with the client accountant etc. Given that this is rare,

then the process is more about ensuring that the document being viewed has the right date and

is compatible with the ledger balance in the main report.

Reconciliation might be required where there has been any material alteration since balance

date.

A favourite reconciliation is the bank reconciliation and the ledger balance is compared to

that record the bank statement that is prepared by the bank on the basis of drawings received.

It is rare if ever that this comparison reveals the same balances. The main reason is to show

the level of cheques that are drawn but not posted out to clients or not yet banked or in the

system waiting for presentation.

The cheques are often in favour of Creditors who have not yet received the cheque and

therefore are still owed the money particularly in their own ledger.

However, because the cheque has been drawn the amount in the creditor’s ledger would have

been written down. This can misrepresent the true position so that if a bank reconciliation is

undertaken the information should perhaps be followed back to its source. Additionally there

is a case for the adjustment of the creditor’s ledger [increase/credit] and the cash at bank

ledger [increase/debit], to reflect the true position.

This process is important for both the internal auditor and for a credit analyst seeking to find

the true extent of debts owed or an appreciation of how the accounts or books are conducted.



These days when financials are extracted a computer program is usually utilised and it is in

this format that some automatic calculations are made. When these calculations, ratios, are

presented it is up to the analyst to consider them and to compare them to other year’s

calculations. Should there be a material difference in the calculation then a closer

consideration of the financials might be warranted.

This could prompt questions to the business or its accountant to ascertain why there is a

discernible difference.

Financial Analysis Ratios

One area that is important to any analyst is ‘are the records consistent’ with other years as

different accounting methods may change the result without any real benefit to the business.

The ratios that are calculated for a set of books reveal a static result at a point in time and

therefore they are usually compared to similar calculations from other periods. Any

discernible movements must be investigated to reveal why things have changed.

Financial institutions are pedantic about analysing results but are looking for their staff to be

able to interpret them and reveal any hidden items.

Some ratios that will be sought are;

Current Ratio

Quick Assets Ratio

Accounts Receivable Ratio

Accounts Payable Ratio

Gearing Ratio

Sales Ratio

Gross Profit Ratio

Net Profit Ratio

Stockturn Ratio

Return on Investment

Whilst the aspect of ratio calculation is important it is not part of this subject and more suited

to credit evaluation. However, it is worth repeating that the process enables a qualified analyst

to be able to verify the effectiveness or otherwise of the companies controls and therefore be

able to make an opinion about the management ability of the company.

The more efficient, the more confidence in the decision making process of the company or

business.

Classwork/Homework

1. What external bodies might become interested in the financial records of a business?

Choose 2 from your list and briefly outline why they might be interested and where

there their authority to examine exists.

2. What are the usual sources of financial information that an external analyst might

seek from a company?



3. What might an analyst do if he does not understand something that appears in the

financials?

4. Do you think an outside analyst can demand copies of specific reports or view the

actual ledger entries?

5. What are some of the important considerations that come out of an analysis

undertaken by an external consultant/agent?



Lecture 11 - Interpret financial Information (2)

Review

The interpretation of financial information is a very important process for internal and

external users.

Owners employ other people to assist them run their business with many relying on book

keepers, ledger keepers or accountants to maintain the cash and credit sales and purchase

functions in books or ledger. However, if the reliance is absolute and they do not understand

what or how items are recorded the owners are at some risk of fraud, conversion or loss. A

good manager therefore either has some analysis skills or employs others to assist in checks

and balances by virtue of system design or audit.

Additionally, external agencies have different needs when viewing the reports of clients etc

but it is essential that their staff who undertake this function are fully cognisant with the

interpretation and consequences of any information that is generated. The role is only

complete after full investigation has taken place and this might involve a need to contact the

client or its staff for further clarification.

Daily financial records and cash flow are maintained correctly and in accordance with legal

and accounting requirements

How Much Training is Required to Operate as a Book-keeper?

The accounting course is a three year tertiary course but many people operate as book keepers

without any or minimal studies or through having completed one or two subjects.

Not everyone has had tertiary training. Therefore there can be people working on ledgers or

records quite successfully who have simply been trained on the job.

Often they are responsible for just a portion of the ledger and therefore do not see the whole

picture. Observance of this experience in successful businesses would suggest that this

approach has had its success in the past and will probably continue in the future.

Partial training

On the Job Training

This part training can provide an operator with skills that can be transferable, are portable and

may aid in the provision of a career that is satisfying to the holder. The holder might be able

to progress to other jobs in and outside of the organisation. On the job training has been

successful in the past but the quality or understanding of what the function achieves is

determined by the experience or quality of the trainer.

The weakness of simply being trained on the job or for a specific function is that if the

method of completing the function is flawed then this will be passed on to the new incumbent.

Invoices and payment are prepared and distributed in a timely manner and in

accordance with legal requirements



There is a need to understand the basics of the receipts and payments systems conducted by

business. Both collections and payments are a feature of any business that deals in credit. The

reasons for providing customers with time to pay can vary but generally it is because the

clients seek and expect it and it is an industry norm. Additionally it can be a marketing ploy

that is freely available in the economy.

Both functions refer to sales and purchases on strict credit terms

Accounts Receivable or Debtors

[Sales made to customers on credit where payment will be some time in the future and by

agreement by the seller]

The process or ledger system conducted by a business wherein the business allows its clients

time to make the payment, e.g. 30 or 60 days credit during which period no fees or costs will

be incurred. This offer of credit might be essential to attract or maintain custom or it might be

normal for the industry. To not offer credit might result in a loss of business or potential

business.

Immediately there should be an understanding that 30 days credit should mean that the

average credit allowed by business is 45 days. [This is on the basis that all sales in a month

i.e. sales on day 1 and those on day 28 are all issued with a statement on the last day of the

month. Therefore all of the debts are already an average 15 days old at the time of statement

issue.]

Having established this background, it must be stated at the outset that it is a function quite

divorced from the sales and very likely that in the ordinary course of business that the credit

people never touch a sale.

The accounts receivable function is part of the critical working capital requirement of a

business’ operations.

Sales can be made but are not complete until the cash is collected. Therefore there is a need

for all involved including the sales function to realise its importance. Once logged into the

invoice book then the emphasis is shifted to the credit control and function of the accounts

receivable ledger.

The sales invoices must be transferred to the businesses accounts perhaps through a sales

journal so that the accounts function can dispatch an invoice and the collect the funds.

Poor controls in these areas can be critical to the success of a firm. Initially, the function

might be involved in the granting or approval of credit limits. Different clients have different

limits with new clients having to prove themselves as being creditworthy. This might involve

producing references, identification and the business undertaking checks.

The reason for this is simply that the business is undertaking a role similar to a financial

institution but at the pointy ‘unsecured’ end. Identification is necessary to ensure that the

business is aware of whom it is transacting because if things go wrong there may be a need

for recovery through the courts.



Having established the customer’s bona fides the ledger should be established in such a

manner that it reflects at a glance the state of the outstandings, in particular an ageing of the

accounts outstanding. The usual columns are;

Current 30 Days 60 Days 90 Days Plus

This assists with controls and at a glance the summary will convey to any analyst to what

extent control is invoked.

Too many accounts in the 60 & 90 Days Plus columns would warrant further investigation.

Additionally in this area is the Accounts Receivable Ratio where the current ledger is divided

sales on credit multiplied by days in a year which then gives an idea of the number of days

sales outstanding. This is a ratio that bankers like to view as it gives at a glance a view of how

good the control is. If trading terms are 30 days on statement then a ratio greater than 45days

would need to be investigated, part of which would be to compare to past trading periods.

Business owners should also be using this ratio as an internal indicator of how effectively the

business is collecting its cash.

Note well cash sales are precluded as they would distort the ratio.

Of course it would also be good to ask what efforts are being made to aid recovery of debts

including the issue of UJS [Unsatisfied Judgement Summons] and even a talk to the controller

might be in order.

Accounts Payable or Creditors

[Purchases made from suppliers on credit where payment will be some time in the future and

by agreement by the seller]

This is money owed by the business and could be construed as not quite as important.

However, slack control of the function can often have a detrimental affect on future

operations. A poor payables function could lead to poor relations with a supplier and

ultimately blocked supply. Although other suppliers might be available a poor performance

has a habit of being conveyed to others, in spite of privacy rights, and supply might be

rejected on terms other than cash up front. If unable to pay outstanding accounts the business

can be sued with the process usually becoming public at some stage with a detrimental or

negative affect on how both customers and clients perceive the business and management.

If to be considered as part of an analysis by a financial institution then it is suggested that at

the same time as this ledger is viewed it is good idea to peruse or have a bank reconciliation

completed. The reconciliation is a comparison of what the bank statement reveals as

compared to the Cash Account in the ledger. The usual differences are cheques issued but not

yet presented to the bank.

The real reason for this event is that they may have been written up as paid i.e. the Accounts

Payable ledger reduced as if paid and the Cash reduced as if the bank has been debited. This

could result in the account being overdrawn if presented but the account at the bank is always

in funds.



Some businesses simply draw all cheques as if making payment but hold onto them until cash

flows in. This tends to distort the efficiency of the function. If added back they would give a

different result when the Accounts Payable ratio is calculated.

Current Balance divided Annual purchases on Credit Multiplied by 365

Outstanding accounts are collected or followed-up on

The whole process of Credit Control can come undone if staff;

Do not have training or experience

Do not have clear direction

Do not treat the function as important

Do not follow up in a timely fashion

Do not have clear guidelines re approving credit

Are not accountable

Are inexperienced

Therefore there is always a demand for staff to operate this function either with external or

internal training.

In general terms credit control starts with the sales function. It is sales people who have the

initial contact with clients and who process the paper work to evidence the sale. Note well the

aspect of credit sales does not cover sales on Credit Cards. These sales are virtual cash as the

business gets value for the transaction almost immediately or at worst when the credit

vouchers are banked into their account.

Credit sales are where the recipient has taken the goods and will pay for them later. To be

considered by the sales person are:

Do they have an account already in existence?

What is their limit?

Are they on a ‘black list‟?

Is their account ‘up to date‟?

If the client does not have an account then an application must be completed as this will

contain all specific detail for processing;

Business name

Address

Phone no.

Contact person

Special delivery instructions

Referee details

Bank details etc

Authority for privacy considerations

This form of application is not unlike the application that a financial institution might get

from someone seeking credit facilities. It will then be on forwarded to the credit department

for their usual checks and decision. It is at this stage that the credit department decides which



clients will qualify for credit which in most cases will be ongoing and the source of additional

profit for the business.

Where a sales person receives income from sales by way of bonuses, commission etc

naturally they will be keen to get the sale on the books. However, as previously stated where

credit is involved the sale is incomplete until the funds are collected. Sometimes the sales

person might have to become involved in the collection of outstandings no matter how

unpleasant that task might be. The rationale being ‘you sold it therefore you can help collect

it’.

As part of the process all credit sales must be recorded in an invoice book which can be

manually or computer generated. As part of the security the invoices will have a specific

number attached to them so that all sales can be accounted for and the credit sales billed in

due course. This is not negotiable as this process is the only way that a business can collect its

outstanding sales on credit.

When agreeing to credit it must be reinforced both verbally and in writing what the actual

terms of credit. Terminology must be able to be understood. E.g. 30days net is not the same as

30 days from invoice issue date.

The credit function needs to have clear directions and responsibilities from management.

Already it has been stated that the function should have a clear direction that its staff do not

do sales. The process can not be manipulated if this is the case other than by collusion

between staff.

The credit function needs clear direction regarding who is responsible for what! The approval

of credit is an important function and should not be considered lightly. Therefore an

experienced operator should give the approvals or it could be tiered so that all of the major

decisions are handled by the Credit Manager with minor amounts to be approved at a lower

level. However if credit is granted then the business must ensure that the limit is

communicated and respected. If wishing to exceed limits and refused then cash might need to

be provided.

As part of the process a signed application must be taken and identification and credit enquiry

part of the analysis process.

Once approval is granted then the relevant information is to be loaded into the system so that

it can be accessed by others including sales as well as credit staff.

There is an old saying “a sale isn‟t made until it is paid!”

The other important process is the collections including the monitoring of activity and then

taking action for recovery. Credit exposes the business to the possibility of non-payment for

what ever reason, including late payment through to the more serious fraud.

Faced with non-payment the collections area must know what it can do secure or recover any

outstanding debts. This should be covered by a credit manual and by adequate training and

exposure to control scenarios.

The first step in any debt problem is to communicate with the client and ascertain why the

payment[s] has been delayed. Sometimes the problem stems from a late payment in their own

business and it might be a once only. Usually these situations work themselves into order and

the relationship continues without any further problem.



If more serious then the second step might see the client placed on restricted access or cash

only until arrears are cleared.

If considered as a real problem then the third step could see the collections department

canceling access to further credit and moving towards legal action which is usually the issue

of a UJS [unsatisfied judgement summons] for recovery of the debt.

The following is suggested;

7days overdue – send a reminder notice

14 days overdue – follow up with a phone call, ascertaining a legitimate reason for

non-payment

30 days overdue – follow up with a personal visit and at the end of it record what has

been said and agreed

60 days overdue – send a letter of demand, threatening legal action

14 days later – move to issue UJS or place in the hands of a debt collector

Of course the staff need to how and when to move to these situations as wrongful actions can

create more problems.

A strong response to client’s actions or lack of action will generate respect and understanding

from the clients. After all the granting of credit is the same as their own bank providing credit

BUT at zero interest rate.

All the work undertaken in recovery of outstanding accounts comes at a cost to the collecting

business. Therefore a strong efficient credit control function can certainly pay for its efforts

over time.

Refer Ten Demandments of Account Recoveries

[Edward F Phillips Creditors Protection Association Pty Ltd.]

DO

1. Prepare Before Contact

2. Use Telephone

3. Control the Conversation

4. Require Specific Amounts

5. Regular Review of Contact Process

Don’t

6. Delay

7. Argue

8. Lose Your Temper

9. Use the Same Series Letters

10. Moralise with the Debtor

As well as providing credit control as mentioned this area also administers discounts allowed

for prompt payment and whilst it may appear as a relatively simple process it has its

responsibilities. Perhaps its main function in administering discounts is that they should

confirm that conditions have been met and therefore the action confirmed.

In the Accounts Payable function where credit is given to the business it might be considered

that there would be little need for controls. However, the function might be able to take up

discounts that are offered and save money for their business – Revenue! Another intangible

consequence could revolve around late payments and whilst it might save interest payments



for the business it might also be potentially damaging to future supplies. The supplier might

be quietly plotting to stop supply to those businesses that must be constantly followed up for

their funds.

Sometimes a stopped supply notice has further affects including notice to other suppliers that

a certain business causes trouble and this might affect the supply of goods by others.

Perhaps a strategy could also revolve around how much credit is used or the amount of

purchases undertaken as cash flow might be compromised.

In summary the payment of accounts is considered an important area of most business

operations. Whilst it can generate further sales and lead to more profits it can also become a

costly function if the clients granted the credit take too long and too much follow up in

collection.

Classwork/Homework

1. What are some of the benefits of a business offering sales on a credit basis?

2. How much part does the sales function contribute towards credit? Describe how

credit can interact with sales.

3. Consider the ‘10 Demandments of Account Recoveries’. How does this impact on

granting credit in the first place?

4. What are the consequences of poor collection practices? [make a list]

5. What benefits might an aged schedule present for management or an outside analyst?

How do ratios complement this aspect?



Lecture 12 - Evaluate Work Performance (1)

Opportunities for improvements are monitored according to business demands

Work schedules are adjusted to incorporate necessary modifications to existing work

and routines or changing needs and requirements

Proposed changes are clearly communicated and recorded to aid in future planning

and evaluation

Relevant codes of practice are used to guide an ethical approach to workplace

practices and decisions

Introduction

In large organisations, like those involved in the finance industry, the structures are largely

determined by centralised departments and based on volumes of work and business as to how

many staff are required to meet the need.

Then the structures are set in place with managers appointed to control the teams that are

established.

However with volumes constantly subject to change or the systems subject to modification,

probably by the centralised function, there is a need to consider how to evaluate progress and

results.

Our studies have already touched on personal performance and evaluation as employees want

to know how they are progressing and what affect that will have on their future.

Another aspect that has been covered previously reflects the industries penchant for change

where over the past 25 years it has sought to re-invent itself. In Australia the focus has

changed from the branch being important to serve clients to the focus on the individual clients

and providing resources to service their needs.

In a constantly changing world it is essential that organisations have the ability to change, if

necessary re-invent themselves. Those organisations that prefer to use the old methods will

quickly find themselves left behind. This also covers staff that fails to embrace the now and

the future. Once a decision has been made by an organisation then the concept must be fully

embraced otherwise it has the chance of tripping or derailing the process.

Later there will be mention of the problems that ‘older’ staff have in accepting change, hence

the saying that ‘you can’t teach an old dog new tricks’. Perhaps this can be tested!

Background - Case Study

The banking industry has acted with a sales orientation that has changed little over 40 to

50 years.

Staff are recruited mainly as school leavers and learns their craft with on the job instruction

reinforced with internal training and some external studies. Some within the ranks have

tertiary studies.



However, there is an opportunity for all staff to progress as far as their talents will take.

Sales are sought but not particularly aggressively with little emphasis on monitoring results.

Most staff is employed in branches where the manager is responsible for all aspects of the

business. Of course the manager is responsible to higher authorities within the state. The state

managers are answerable to Head Office.

Suddenly, in the early nineties there is a revolution of thought as the hierarchy of these

institutions suddenly bring in a new way to look at the bank, its staff, its products, its

methods.

Accountability becomes the focus for all staff that is trained in sales and is expected to

achieve targets that are set.

The whole structure is turned on its end as the branch manager is taken out of her or his

comfort zone and placed in a new structure where the customer is the focus. Right through the

system this follows. Whilst there are still branches and they have managers the focus is much

less on the manager and the positions are down graded. The clients that call here are more of

the transaction type with smaller individual worth.

The bigger more important clients are placed in business centres and deal exclusively

with a team of bank officers who focus on a smaller group of connections.

What has been just described is Major Change.

Please consider the above and discuss.

Consider what has just been described and give some thought to some of the things that the

bank and staff would have needed to accept.

What are the positives/negatives to come out of the changes?

At the end of the day this change that occurred was quite massive and even now it is ongoing.

The topic will focus on Change and Innovation in the work place.

In a changing world it is inevitable that there will be changes accepted by organisation and

forced [accepted] by its staff. The changes might be new challenges, innovation, strategic,

physical or behavioral.

As managers you have to understand why the organisation needs to change and that the

change can be either innovative or strategic.

Innovative means change within the framework of existing resources

Strategic involves doing something new

Most managers can plan and execute physical changes successfully but it is in the area of

behavioral change that the most difficulty is experienced. To implement change successfully

there needs to be the right conditions for motivating and involving people with one of these

being the commitment to leadership.

Organisational Change



Delivering ‘best value’ services has been suggested as a reason for change. Is this a customer

or an organisation focus? With the answer that it is for both.

Modern technology and advances in physical and electronic communication have made it

possible for people and industry to compete as never before.

Supply v Demand

Supply has outstripped demand in a global sense and the customer in now the ‘king’. This has

created increased competition, with market share being the key goal. If you want to grow in a

finite market you must target someone else’s customers.

Global Business

There has been an n acceptance of the international company. The target market is now

spread throughout the world and companies are prepared to spend vast sums of money

promoting themselves. As a result manufacturing strategies ensure that they have highly

productive specialised plants around the world, to minimise production costs taking

advantage of cheaper raw material and labour. Pricing policies are made to ensure

competitiveness in local markets and local competition is aggressively targeted,

Electronic Communication

Perhaps the biggest aid to international business, the computer, Email, mobile phone and the

internet have revolutionised the way and speed with which we doe business. Additionally, the

physical transportation of goods ahs been sped up with quicker, larger transport means and

with better document exchange procedures.

Innovative Change

The changes have been evident in both working practices and processes. Changes in design

and delivery of products including management of results have been introduced over time

sometimes slowly almost undetected and at other times quite dramatic.

Working Practices

To make changes in how people actually do their jobs can involve a number of factors

including the introduction of teamwork, flatter structures, different performance management

and the introduction of self management. Amongst the biggest changes in recent years have

been:

Change from single to multi skilling enabling the organisation to establish small multi

purpose teams optimising the use of people

The introduction of flatter structures rather than the old traditional hierarchical lines

Focus on results rather than status

Introduction of empowerment to solve organisational problems



Working Processes

A change to the way that work is processes through the organisation and further by the

industry to take advantage of:

New organisation processes aimed at shortening order cycle times

Work processes aimed at reducing the rime taken to do specific tasks

In the first instance, organisation processes can reduce the order or process cycle. This has

been achieved by mapping the process and establishing specialist areas like a mortgage

process centre.

Under work process innovation methods such as JIT [Just In Time] and Kaizen [continuous

gradual change]

The cornerstone to all of this is to have an acceptable methodology and belief that it will

benefit the whole process, including the end product [customer service!].

Design Change

Although there is an old saying „if it ain‟t broke don‟t fix it‟ it also follows that if business

does not keep up with the technology available then they could be going backwards.

As a result it can be concluded that machinery, technology and product design reflect the

conditions prevailing at the time that they are developed.

In a similar way people’s needs for services and the way they are delivered change.

To remain competitive there is a need to constantly review how products are designed, the

benefits, the fees and the methods for delivery. Neglect of this area can mean the difference

between greater sales than not.

Handling Changes

At this stage the documents are mainly processed centrally. Enquiries are directed centrally.

Cheques and exchanges are undertaken centrally. Therefore it could be assumed that the work

is done.

However, the future trend could see these processes still centralised but out sourced on a

contract basis.

This brings into the equation further economies of scale.

Implementing Innovative Change

It usually follows the following steps:

1. Decide – decision is made by senior management to introduce a policy for improvement

2. Agreement – the tools to be used to effect improvement

3. Training - the training of special staff to deliver

4. Assign Ownership – responsibility is entrusted to frontline managers

5. Implement – teams are established to tackle any problems

6. Monitor – the whole process is monitored overseen by senior management



There is no choice involved in the process whether to accept when it is a total revamp of the

way to do business in the future.

Strategic Change

- Why Change?

Recent past changes have been enormous especially in the culture of finance. Millions of

dollars have been expended by all organisations as they strive for the point of difference but if

followed end up looking very much the same.

Some reasons for change are:

Shareholders

Product Desirability

Product Price

Market Size

Product Promotion

Product distribution

Product Support

Product Cost

All of these elements can be pivotal in the introduction of change and are considered briefly;

Shareholders

Shareholders are targeted for the cause of many things that change but they do not usually

contact the company and demand change per se.

However shareholders can express their dissatisfaction by how they treat their shares i.e. sales

of holdings altering price etc. Therefore management, boards etc are mindful of their results,

and those of their competitors, products, pricing, image etc.

[N.b. if the price of shares falls and/or shareholder dissatisfaction then the company is

vulnerable to takeover action]

Product Desirability

Over time products and services need to change to reflect changing market conditions. People

want products that will enhance their lifestyles with recent innovations like the internet

having a great effect on the way that we can do business. The old needs are serviced by

different delivery.

Product Price

People are cost sensitive these days preferring to shop around rather than accept the first

price. The finance industry is a good example of price innovation as it has lowered some

prices and yet increased others.

However, the industry is very watchful of its competition as some participants will take a

niche position on some product pricing as a loss leader or because they specialise in a limited

range of products.



Market Size

Any particular local market is finite and to some extent changing. Consider the local housing

market which can be affected by cost of loans, cost of rent, price of housing, availability of

houses in areas. If a local lender wanted to expand it might need to expand its services to

other states or overseas.

Product Promotion

The effective promotion of product is a basic of commercial success. Potential customers

need to be aware of the product or brand and its availability.

Most financial institutions undertake all forms of promotion in a bid to maintain their name in

the sights of potential customers.

Additionally, if the institutions use more than one form of delivery then the promotion must

be designed for all facets c.f. branch lenders and mortgage brokers who sell the same product

for a major bank.

However, just as important is the fact that when the client calls that the product is available in

the format suggested otherwise another product will be selected.

Product Distribution

The aspect of product distribution has been linked largely to technological advance and the

finance industry has been very adaptable. These days loans can be procured in the following

manner:

Branch

Mobile Lender

Business Relationship Manager

Direct Marketing

Internet Application

Franchisee

Mortgage Broker

It is much easier to glean information about product than ever before through the internet web

sites of the various facilitators.

Product Support

All products need specialist support whether it is for the employees or the client. The more

technology intrudes the more there is a need for field support. Without this the service or

product will quickly establish a negative reputation and poor press and this affects all facets

of the business.

Some of this work can be out sourced to contractors who simply service that product on

behalf of the provider.

Product Cost

Many of the foregoing changes are dependent on the product cost so that the sales function

can be competitive. Out sourcing may contribute to the lower costs and make this possible.



Direct application by the internet is cheaper! Centralising mortgage production is cheaper.

Call centres use a more efficient and cheaper labour cost.

Implementing Strategic Change

It takes the familiar process of;

Decision

Plan

Communication

Management

Monitoring

Change Behaviour

Change at the very least sees the introduction of new knowledge which might be a new way

of doing an old process. Generally it entails the teaching of new skills perhaps using the latest

technology or computer programs.

Behavioral change involves things like staff motivation, team working and requires

management change.

There are five behavioral influences

Knowledge

Skills

Beliefs

Environment

Purpose

Knowledge

This can be quite straightforward as the complete package can be designed and then provided

for delivery. The rate of absorption then is reliant on the abilities of the recipients of training

with older staff generally slower with computer technology.

However past experience has suggested that most cope even after some teething problems.

Skills

This is the ability for staff to carry out new tasks and can be physical or behavioral.

Physical skills include such tasks as using a keyboard.

Behavioral skills entail the task of getting things done, arranging training or conducing

meetings, managing customer relations. Changing how staff greet clients to include a subtle

sales approach.

Beliefs



Attitude is affected by belief and in turn can affect how knowledge and skills are delivered. If

individuals are against the introduction of a product then delivery might be constrained. This

is quite important to the change process as non belief usually impacts on no support. Beliefs

are difficult to change as they require people to let go of something that is already an

established behaviour.

Environment

This is where rewards are introduced, inducements to follow a suggested path. Successful

organisations are successful where they encourage people to behave effectively. The bottom

line is that an institution can not tolerate ineffective behaviour.

Purpose

Purpose must be conveyed to the end user. It is usually contained in the Mission or Vision

statement. If the leader’s clear vision can be accepted then usually it can be adopted easily by

management and staff alike.

Opportunities for improvements are monitored according to business demands

All of the above will be useless unless there is some process for determining when or how

improvement might be required.

The various levels of management must be aware of the need for improvement. At the ‘shop

front’ or ‘coal face’ the local manage must monitor the incidence of sales activity.

Indicators of problems with particular products could be that there are no sales being

generated. Of course the skills, knowledge or behaviour of the individuals must be checked

first.

If it is skill or knowledge then this can be fixed with training, mentoring, coaching the usual

remedies to improve the user.

However, behavioral aspects are more difficult with attitude the province of the holder. If

critical that it affect their own work or more importantly influences others then it can be quite

critical to the operation. It might be time to cut and move on.

However, it also could cover the area of product suitability. If a competitor has a superior

product and this is recognised by the consumers then it is difficult to obtain sales unless there

is a price difference. If not available then the organisation should convey this through to those

who can make a difference [usually product developers in head office]

If it is a local problem then the counter might be local solution i.e. only applies to a particular

area.

If widespread then it must be countered and could mean a new matching product developed.

Sometimes change is slow as the appropriated areas investigate needs, products and modes of

delivery.

Case Study



A classic case of a need being addressed related to the Commonwealth Bank of Australia

(CBA) introducing its travel service Travelstrength in the late 1970s.

The feedback from many was that all the other banks provided a travel service and the CBA

didn’t. This frustrated staff who noticed that when dealing with their clients needs that they

used other travel agencies including those of competitors.

Eventually the travel service was introduced with staff recruited from outside as well as

opportunity for some CBA staff.

Within a few years Travelstrength remained the only bank travel agency all the others deemed

unprofitable.

Even though a need was perceived the research was faulty and therefore the result was poor.

Eventually the CBA sold off its agency.

The CBA had not recognised the signs that travel was a very fine profit industry and clients

would chase the best deal. The add-on sales for currency and traveller’s cheques were

minimal and the travel staff did not push these greatly.

A more successful introduction was the introduction of the securitised loans system by

finance institutions in the late 80s.

Initially undertaken by the mortgage brokers, but met in opposition by the larger banking

sector the process works in this manner.

Individual loans are sold to the public. They are pooled together and then traded as

security for funding for further advances. In effect the loans are onsold as a pool of

assets. The securitisor carries the debt and receives interest and repayment of capital. In

the meantime the original makes income from the margin charged the original borrower

and what they negotiate to the securitisor.

The benefits of this are that large parcels of money could be accessed offshore and at

better rates than those available here in Australia.

The result

Cheaper loans to borrowers

Competition driving down rates

Cheaper fee structures

The larger banks adopted the same practices

More competition

The process adopted for other products as required

Higher fees introduced for other products

Mobile lenders introduced

Internet application

Next Lecture the topic moves on looking at more change for the finance industry and also a

look at what has already changed.





Proposed changes are clearly communicated and recorded to aid in future planning

and evaluation

Relevant codes of practice are used to guide an ethical approach to workplace

practices and decisions

Classwork/Homework

1. Why has the finance industry in Australia undergone change in the past 20 – 25

years?

2. How does change impact on the staff of a large organisation?

3. What are some of the benefits from change for staff? Are there any disadvantages?

Name any vulnerable groups.

4. What are the big Catalysts of change in most industries? How has this impacted in

banking? Give two examples.

5. How do banks operate these days in the selling of a Home Loan? Name the method

and briefly describe how it works.



Lecture 13 - Evaluate Work Performance (2)

Change is inevitable

Change is constant

Change is a product of evolution

Change may not be embraced by all

Changing Work Practices



Things have changed in the finance industry due to the needs of the customers and how they

are perceived by the employer. Some employees will embrace change and introduce it

themselves long before it becomes official.

Agreeing to work longer hours just to get the job done.

Providing additional material not normally given to the client.

However, if the need has changed i.e. clients calling patterns have changed [customers call at

bank most in period 12.00 to 1.45] then it makes sense that there is sufficient staff available at

that time. Lunch breaks are scheduled accordingly, casual or part time staff is employed over

those times.

However, there are times when the role changes dramatically due to a strategic move by the

organisation. Examples of this are:

Changed trading hours viz. opening branches of the bank until 2pm on Saturdays

Taking on the position of Mobile Lender which entails the sales of home loans often

after hours or on week ends

Relationship management where most of the work including interviews is undertaken at

the client’s premises or elsewhere

Whilst some of these might be considered part of the career path and therefore accepted they

do encompass acceptance of a change in ‘normal’ work conditions.

Change has also impacted on the customer’s perspective of how banking has been done.

Some of these direct changes are listed:

Passbooks v Statement Accounts

Opening Hours [increased]

Relationship Banking [degrees of customer importance]

Cash withdrawals and funds transfer by ATM

Fees

Banking interfaces with accounting software (SME’s)

Internet & telephone banking

Casual and Permanent Part Time Employment

Branch closures or conversion from transaction to sales centres

Re-organisation of service delivery

Customer Service Delivery Model



Focus on Financial Planning

Bill Payment System

Real Time Settlement of Exchanges

EFTPOS Delivery

Career Expectations

Not all change is well accepted initially and sometimes there are exceptions that are tolerated.

However, the introduction of ‘change’ is sometimes carefully managed.

For example when Saturday trading was recently introduced, all staff was invited to

participate on a voluntary basis. However as new staff are introduced then often it forms a

part of their conditions that are non-negotiable. This is the job, these are the hours - do you

accept the conditions?

Where the changes are ‘minor’ or where some staff is willing to take up the offer then it is

introduced relatively easily.

It might mean some slight inconvenience like taking the lunch break at 11.15am but people

can adjust. [Example of cover for lunch breaks] However where the hours for attendance

change then staff may be compensated, perhaps a shift loading or time off in lieu on another

day.

Another example might be changing roles to that of Mobile Banker. The hours that are

standard for a mobile banker include after hours work that for other positions might mean

‘overtime penalty pay’. Therefore if considering applying for this role it is assumed that there

is an acceptance of weekend and night work without overtime applying. Of course the pay

and rewards of becoming a mobile banker are potentially more beneficial as well!

If however there are new skills to be acquired it would be a reasonable expectation that

training would be provided as well.

Change Communication

Proposed changes are clearly communicated and recorded to aid in future planning and

evaluation

If there are changes then these must be well documented and then communicated to those

sections, personnel affected. In an ideal situation there is some time to make re-arrangements

if necessary. If it is a new concept or product then planning, communication and training are

essential.

Part of this stems from the desire of sharing the vision, the information on the product, tools

to be employed [brochures, methodology etc], training and the timetable for release with all

staff that will be affected.

As part of the new plan then this must be investigation to see whether other items already in a

future plan need to be modified, cancelled etc.

Evaluation comes back to assessing the success or otherwise of a new product, methodology

and to reward or take other action. Part of the evaluation in the early stages should be

comment on any difficulties in delivery; weaknesses etc so that changes are made if deemed

necessary.

Eventually evaluation or reward becomes the driving tool for participants.



Of course part of the process entails the writing of procedures and rules that can be followed

by staff especially where a problem is encountered that needs to be solved quickly and if

possible without reference to others – Head Office!

Operations – Impact of Codes & Laws

Relevant codes of practice are used to guide an ethical approach to workplace practices

and decisions

There are a number of laws or codes of practice that may affect operations. Some are easily

seen to apply whilst others might impact in a more obtuse way. The development of products,

the growth in institutions, and change in products and practices have all at times prompted

authorities to consider how consumers are protected. A good example of ‘necessity being the

mother of invention’ was the development of electronic funds transfers in the finance industry

and elsewhere. Initially there was no Code of Practice and therefore how transactions were

handled relied on the integrity of the deliverer. This however has been addressed in the

release of its own code covering EFT specifically.

The release of codes has given everyone, industry, the public and the judiciary, a reference

point particularly where there is a dispute or someone has been badly treated.

The most common laws apply to all in the community and include the finance industry. As a

corporate citizen the staff of financial institutions must have an appreciation of these laws

some of which apply directly to them by virtue of action undertaken. Some of these are

considered as essential for all staff to know and therefore some of the basic training will be

geared to cover these aspects.

The common laws that apply are:

Partnership Act

Companies Act

Taxation Act

Privacy Act

Anti-discrimination Act

Trade Practices Act

Bills Of Exchange Act

Superannuation Act

Real Estate Acts

Then there are others that perhaps have been introduced due to growth and bad practices in

the industry;

Financial Services Reform Act

Financial Transactions Reports Act

Secret Commissions Act

Others again reflect the changing situation Australia finds itself in within the global

community eg:

Anti Money Laundering / Counter Terrorism Financing Act

Also there are codes that apply to either the industry or types of transactions;



Code of Banking Practice (industry based ABA administered voluntary code –

defines responsibilities, obligations and service commitments)

Mortgage Brokers Codes of Practice [Currently individual state enacted]

Electronic Funds Transfer Code of Conduct (incorporating the former banking

internet code of conduct) covers most electronic based transactions and customer

requests

Franchisors Code of Practice (some banks franchise their outlets)

Credit Union Code of Practice (similar to the Banking Code of Practice in intent)

General Insurance Code of Practice (some banks act as insurance agents)

General Insurance Broker’s Code of Practice

Financial Planner’s Code of Ethics and Rules of Professional Conduct (some bank

staff act as financial planners)

Internet Code of Conduct (now incorporated into the ASIC administered EFT Code of

Conduct that covers all forms of electronic banking transactions including cards,

phone, fax, email and internet)

Obviously if in these particular industries then the individual code applies but as can be seen

there is scope for many and varied application across different types within the general

industry.

It is not within the scope of this subject to place these under review and participants might

well ask how anyone could be expected to know and abide by all of these. Obviously there

would be some similarities of application across the codes meaning that the same standard

would be applied across the board but obviously there would be succinct differences.

The Federal Government maintains a website which refers to the abovementioned codes

[most] and provides brochures, articles and specific comment regarding specific codes. Of

course those institutions that transact within these areas affected by a specific code will

regularly conduct training or circulate a copy so that their staff can familiarise themselves

with the contents. Additionally, staff who work in specific areas where a code impacts would

need to possess this intimate knowledge.

Therefore the application of common sense and an ethical approach are all important in

ensuring that the customer is treated with respect, protected at all times and given the

opportunity to transact without fear. Remember ethics are related to our moral position and

this can be difficult to define precisely.

As already mentioned the penalties for breach can be quite large including jail for the worst

breaches. Also the action of employees will also impact on the employer with fines for

breaches.

If an individual was employed as a Financial Planner or a Mortgage Broker there would be no

defence of ignorance against prosecution as part of their qualification and their professional

development they are expected to maintain their knowledge and practices in terms of the

relevant codes.

In all cases there is protection for consumers on the basis that they are ignorant of the law but

the financial institutions are not. Additionally companies do not always have the same

protection as consumers but probably better access to legal support,

Therefore staff is encouraged to treat the clients with respect and by the application of ethics

in any transaction.



Self Management

It is important that all prospective entrants to the finance industry take control of their own

destiny.

This does not mean just being active to get a job or to change jobs but to have an aim of

where the journey will go.

It is suggested that a Personal Development Plan be in put into existence so that the career

has some momentum or direction.

If of course there is a specific job that is targeted and it needs qualifications then it is up to the

individual to acquire them. This might entail enrolling at TAFE, university or some other

institution and paying fees. Sometimes employers will assist with these costs but if they don’t

the qualification might mean getting a better paying job and that will repay the expense and

effort already undertaken. The ideal time to do the majority of study is when people are

young.

The personal plan might cover:

Learning needs

Specific job aspirations

Time frames for achievements

Organisations for employment

Self management can also be applied to current jobs. Usually there is a timeframe or

apprenticeship or an expectation that people will be in a job. The process for advancement is

usually the attainment of further skills or knowledge and if patient this will happen in time.

However, if impatient then becoming proactive and undertaking additional learning may

accelerate this process. It would certainly confirm the desire to progress and make things

happen.

Conclusion

This is the last topic in the subject Manage & Small and Medium Business Operations

[FNSPRAC501A] and it is now time for some of you to begin to put things into place either

by further study or getting work.

The subject refers to small and medium business but the large institutions use similar

principles and approaches. Additionally, there has been some reference to the finance industry

but there are similar applications to other industries.

Although there are obviously some specific application of rules and laws in different

industries this simply means that employees must quickly come to grips with these specific

requirements as soon as entering the new job. Also commonsense or asking others will often

get by until the knowledge becomes personal.

Perhaps a reminder of what was covered;



The unit requires the application of management, communication and problem solving skills

to operate a micro to small business or department.

It may be applied to the financial services industry.

Identify Daily Work Requirements

Monitor and Manage Work

Develop Effective Work Habits

Interpret financial Information

Evaluate Work Performance

Self Management for Work Prospects

The important thing is to recognise that most things that present themselves can be solved

with knowledge, skills and teamwork. The distance or journey that you travel will be

determined by your own endeavours with just a little luck along the way.

The subject is aimed very much about personal endeavour because there is an expectation that

if things happen then it is best if the participant is part of the decision process not simply

incidental to it.

Those who are Proactive rather than Reactive will have some part in their career journey.

Classwork/Homework

1. Why do staff need to accept change to things like how they do their job or what hours

they work?

2. Why are there so many codes of practice in place in today’s business environment?

Who or when do they apply?

3. Consider your notes where they refer to the ‘Codes’ and list those codes that might

apply the banking industry. Give brief reasons.

4. Why might you consider a ‘personal plan’ for your own career?

5. List some things that have changed in the finance industry over the past 20 years in

Australia.

Lecture 14 - Revision

Lecture 15 – Assessment 2