ACCA 1.3 MANAGING PEOPLE Session 10
Session 10
Effective Communication Practices
1Working with people
1.1Interpersonal skills
Interpersonal skills involve inspiring, motivating, leading and controlling people to achieve goals that are often poorly defined.
For working relationships to be effective it is important to recognize people’s right to
•Be treated with respect
•Assert themselves
•A fair hearing
Skills for effective working relationships include the ability
•To work co-operatively
•To maintain enthusiasm
•To persevere
•To be flexible
1.2Communication and behaviour
Communication has three important components – words, tone of voice and body language.
Research has shown that during communication words create less that 10% of the impact compared with about 40% form the tone of voice and about 50% from the body language.
When dealing with other people there are three types of behaviour that can be adopted:
Aggressive – standing up for yourself the expense of other people. This behaviour violates the rights of the other person.
Assertive – standing up for your own rights and needs while respecting those of others.
Passive – belief that your rights are less important than those of others
Assertion has the advantage of being influential because it is consistent while being respectful. Aggression often causes defensive responses and can ultimately be unproductive. Passive behaviour can become stressful as needs are denied.
‘2Communication
2.1The need for communication
Communication is the interchange of information, ideas, facts and emotions by two or more persons.
Formal communication
There are three formal communication channels in an organization –
•Downward – manager to employee
Katz and Kahn identified the general purposes of downward communication were to give specific directives, explain rationale for the job, provide feedback and communicate organizational and ideological information.
•Upward – employee to manager
Provides management with feedback on results achieved and problems encountered
•Horizontal/lateral – communication across departmental lines
This is important to task co-ordination, problem solving, information sharing and conflict resolution.
Informal communication
A lot of communication is carried on outside the formal communication channels. This includes:
•Grapevine
The network of social relationships that arises spontaneously as people associate with one another.
•Rumour
These are messages transmitted on the grapevine. These can be influential and damaging. An atmosphere of poor employee communication will increase the number of rumours.
•Gossip
This is idle talk can be hurtful and malicious. It can also be a socializing force.
Question 1
Communication is vital in all organizations and the communication process may take many forms. It is important that managers and supervisors recognize the nature of information flows and use appropriate forms of communication. The direction of the three main information flows can be said to be downwards, upwards and lateral.
Required
Describe and discuss the purpose of these three main communication flows that might be found in an organization. (15 marks)
Answer Plan
2.2Communication models
The communication process involves six basic elements:
•Sender (encoder)
•Message
•Channel
•Receive (decoder)
•Noise
•Feedback
2.3Importance to the manager of effective communication
Effective communication is necessary for:
•Management decision making
•Interdepartmental co-ordination
•Individual motivation and effectiveness
A formal communication system allows managers to perform their roles e.g. give instructions, receive feedback, exchange ideas etc.
2.4Barriers to communiction
Possible barriers to effective communication are
•Information overload
•Inappropriate use of language
•Inappropriate method of communication
•Assumptions made by the sender
•Attitude towards the sender
2.5Consequences of poor communication
Lack of downward communication can lead to:
•Poor awareness
•Lack of understanding
•Low morale
Lack of upward communication can lead to:
•Failure to identify problems
•Failure to ensure participation and innovation
•Poor control
Lack of lateral communication will lead to
•Divisions between staff/management
•Lack of co-ordination
•Lack of specialist advice
Question 2
Much of the work of professional accountants involves communicating information for others to use.
Required
a)Explain the importance of clear communication. (5 marks)
b)Explain two main communication methods (5 marks)
c)Describe two barriers to communication (5 marks)
(15 marks)
Answer Plan
2.6 Attributes of effective communication
The characteristics of good communication are that they should be:
•Timely
•Accurate, complete and to the point
•Directed to the right people
•Understandable
The steps that can ensure effective communication include:
•Feedback
•Using more than one communication network
•Restricting the number of links in the communication chain
•Ensuring clarity
2.7 Communication methods and patterns
Methods of communication can be grouped into four classes:
•Oral
•Written
•Visual
•Electronic
Patterns of communication that exists between group members. This pattern can be either
•Centralised – wheel, chain or “Y”
•Decentralised – circle and all-channels
The following diagrams illustrate these patterns.
The wheel is the quickest system and the circle the slowest. The all channel is best in complex situations. Satisfaction is lowest in the circle while under pressure the all channels system restructures itself into a wheel.
2.8 Process of consultation
Consultation is where one party seeks the views of another party before either party takes a decision.
Consultation can help to:
•Improve the quality of decisions
•Lead to better co-operation
•Serve as a preliminary to negotiation
•Increase in organizational efficiency
•Help industrial relations
Consultation must be genuine. If consultation is synthetic then the exercise may be counter productive. If the result of a consultation does not include any of the ideas put forward, subordinates may not feel involved.
‘3The Role of Counselling
3.1What is counselling?
Counselling is about helping people to help themselves.
Counselling is a client-centred problem solving approach that is distinct from telling, advising or manipulating.
The manager/supervisor plays an important role in the counseling process. Kaplan and Coen found that American foremen spent 7% of their time dealing with subordinates problems. The most difficult issues concerned money, marriage and other employees. Their prime technique was the ‘sympathetic ear/’
The values necessary for successful conselling include:
•Non-judgement attitude
•Respect for the client
•Confidentiality
•Acceptance of the whole person
Effective counseling shows management’s commitment to and concern for its staff and is likely to improve employee loyalty and enthusiasm.
The problems of retirement and redundancy are increasingly recognized, and constructive counseling programmes have addressed these issues. In large organizations, links with external services such as marriage guidance counselors, Samaritans and Alcoholics anonymous, may be effective.
3.2
3.2Skills of effective counseling
Through active listening, the use of open questions and clarifications, the counselor encourages reflection and helps the client identify issues and solutions. Counselling does not involve giving advice or making suggestions.
Effective counseling relies on a high level of interpersonal skill, such as
•Establishing rapport
•The ability to discern meaning
•Being able to summarise and clarify
•Ask the right questions
Counselling, being a one-to-one technique to help people achieve a goal, requires good interviewing skills. The counseling approach may be alien to managers used to finding directive solutions to problems.
Counselling requires active listening.
3.3Counselling staff
Problems may arise
•Within the individual
•Be caused by the organization
•Or arise from sources external to both the individual and organization
Individual problems may be psychological – arrogance or self-pity – or be caused by dissatisfaction.
Most organizational problems arise from technical incompetence, underwork (role underload), overwork (role overload), relationships with colleagues and superiors, and uncertainty.
External factors may include money and family relationships.
The key factor in a successful counseling interview is establishing the main problem. This may be found by exploring the emotions involved and their source.
Counselling is a mutual exploration in a non-critical context. The range of feelings and emotions must be fully understood to ascertain the problem and explore solutions.
‘4Controlling conflict, grievance and discipline
4.1Causes of conflict
It is now generally believed that conflict is both valuable and necessary. Without it there would be fow new challenges, there would be no stimulation to think through new ideas and organizations would become stagnant and apathetic.
Conflict can be constructive (generating new ideas) or destructive (destroying morale and motivation).
While there are many different manifestations of conflict, the causes are often difficult to determine. These may include misunderstandings, insensitive or non-supportive relationships, failure to communicate and unreasonable, competitive or distrustful climates.
Inter-group conflict is sometimes: institutionalized, hierarchy-based and functional, and results from line/staff, formal/informal and status differences, which are often political.
4.2Managing conflict
To be successful in avoiding or resolving conflict, managers must understand:
•The nature of the conflict issue,
•The behaviour and norms of the group
•Their own balance of leadership style
The conditions for avoiding conflict include:
•A positive atmosphere with common recognized goals,
•A clear understanding of tasks and
•A steady environment
The two main strategies for managing negative conflict are to:
•Convert the conflict into a positive one using a team building approach
•To respond to the conflict by trying to avoid, defuse or confront it.
Confrontation means that the opposing sides meet and discuss the problem rather than suppress it. Conflict resolution through confrontation can occur by negotiation or through the exercise of power. The negotiation strategy has more chance of a win-win outcome.
Handy suggested two sets of strategies for tackling conflict:
•‘control by ecology’, which creates the environment for constructive relationships,
•‘short-term regulation’.
Techniques for coping with conflict are:
•co-operative problem-solving
•the search for superior goals,
•the peacemaker
•the improvement of interpersonal skills.
Question 3
Conflict is an inevitable feature of organizations but is rarely recognized or understood.
Required
a)Describe the causes of conflict. (5 marks)
b)Describe the symptoms of conflict in the workplace. (5 marks)
c)Describe the ways in which conflict may be managed. (5 marks)
(15 marks)
Answer Plan
4.3Dealing with grievance and disciplinary matters
A grievance is something employees have when there is something in the work situation which they feel is unfair, wrong, unjust or unreasonable.
A grievance may become a complaint, which expresses employee dissatisfaction, or a dispute, which is a formal expression dissatisfaction at organizational level.
Grievances may center on unfair treatment, unequal pay or job security.
Discipline is either a code of acceptable conduct or a system of rules establishing behaviour patterns.
Punishment is disciplinary action which occurs as the result of a breakdown in the code of conduct (or the breaking of the code as a deliberate action).
Generally, there are two types of discipline:
•accepted behavioural codes
•imposed, legally-enforced regulations or rules.
There are four basic categories of organizational rules. These are:
•to protect the organisation’s image,
•set out basic standards for its well-being,
•prevent loss
•outline behavioural codes.
Disciplinary problems within the organization may arise from breaches of health and safety regulations, and activities that hamper the performance of work teams or the organization in general.
Disciplinary problems that take place outside the workplace and involve the company include personal abuse of alcohol or drugs, law-breaking activities, or undertaking private work to the detriment of the employer.
4.4Appropriate procedures
Procedural agreements aim to ‘keep the peace’ and avoid ‘war’ between different parties, and may cover grievances, disciplinary action, disputes, promotion and redundancy.
The Employment Protection Act requires a named person to whom grievances can be addressed to be included in the terms and conditions of employment.
4.5Process
Disciplinary action is usually applied progressively, from informal to formal verbal warnings, written warnings, and disciplinary action such as suspension, demotion or layoff. Finally, dismissal may occur if previous action has failed.
An organization should have a model disciplinary procedure.
There are four formal stages in the grievance procedure, commencing with the employee’s immediate superior, moving on to more formal internal measures. External arbitration may follow, or the issue may be treated as a dispute and the agreed negotiation procedure may be adopted.
Whether the issue warrants a correction or reprimand must be clarified by the manager or supervisor before dealing with the issue.
Disciplinary action causes resentment both to managers and subordinates and is often avoided. To minimize resentment, any action should be taken quickly and consistently, and action should be impersonal and private.
Disciplinary interviews can be planned in advance to establish the facts and to confirm the offence. The aim is to prevent further misconduct. The employee has the right to bring a friend or colleague as a witness to the interview.
Employees have the right to appeal against disciplinary action. It is a management obligation to provide an appeal procedure.
Question 4
The accounts manager understands the need to motivate employees, but does not understand what is meant by discipline within the employment context. You have been asked to explain.
Required
a)What do you understand by the term ‘discipline’ in the employment context. (5 marks)
b)Provide examples of situations where disciplinary action may be required. (4 marks)
c)Describe the steps involved in a formal disciplinary procedure. (6 marks)
(15 marks)
Answer Plan
Effective Communication Practices
1Working with people
1.1Interpersonal skills
Interpersonal skills involve inspiring, motivating, leading and controlling people to achieve goals that are often poorly defined.
For working relationships to be effective it is important to recognize people’s right to
•Be treated with respect
•Assert themselves
•A fair hearing
Skills for effective working relationships include the ability
•To work co-operatively
•To maintain enthusiasm
•To persevere
•To be flexible
1.2Communication and behaviour
Communication has three important components – words, tone of voice and body language.
Research has shown that during communication words create less that 10% of the impact compared with about 40% form the tone of voice and about 50% from the body language.
When dealing with other people there are three types of behaviour that can be adopted:
Aggressive – standing up for yourself the expense of other people. This behaviour violates the rights of the other person.
Assertive – standing up for your own rights and needs while respecting those of others.
Passive – belief that your rights are less important than those of others
Assertion has the advantage of being influential because it is consistent while being respectful. Aggression often causes defensive responses and can ultimately be unproductive. Passive behaviour can become stressful as needs are denied.
‘2Communication
2.1The need for communication
Communication is the interchange of information, ideas, facts and emotions by two or more persons.
Formal communication
There are three formal communication channels in an organization –
•Downward – manager to employee
Katz and Kahn identified the general purposes of downward communication were to give specific directives, explain rationale for the job, provide feedback and communicate organizational and ideological information.
•Upward – employee to manager
Provides management with feedback on results achieved and problems encountered
•Horizontal/lateral – communication across departmental lines
This is important to task co-ordination, problem solving, information sharing and conflict resolution.
Informal communication
A lot of communication is carried on outside the formal communication channels. This includes:
•Grapevine
The network of social relationships that arises spontaneously as people associate with one another.
•Rumour
These are messages transmitted on the grapevine. These can be influential and damaging. An atmosphere of poor employee communication will increase the number of rumours.
•Gossip
This is idle talk can be hurtful and malicious. It can also be a socializing force.
Question 1
Communication is vital in all organizations and the communication process may take many forms. It is important that managers and supervisors recognize the nature of information flows and use appropriate forms of communication. The direction of the three main information flows can be said to be downwards, upwards and lateral.
Required
Describe and discuss the purpose of these three main communication flows that might be found in an organization. (15 marks)
Answer Plan
2.2Communication models
The communication process involves six basic elements:
•Sender (encoder)
•Message
•Channel
•Receive (decoder)
•Noise
•Feedback
2.3Importance to the manager of effective communication
Effective communication is necessary for:
•Management decision making
•Interdepartmental co-ordination
•Individual motivation and effectiveness
A formal communication system allows managers to perform their roles e.g. give instructions, receive feedback, exchange ideas etc.
2.4Barriers to communiction
Possible barriers to effective communication are
•Information overload
•Inappropriate use of language
•Inappropriate method of communication
•Assumptions made by the sender
•Attitude towards the sender
2.5Consequences of poor communication
Lack of downward communication can lead to:
•Poor awareness
•Lack of understanding
•Low morale
Lack of upward communication can lead to:
•Failure to identify problems
•Failure to ensure participation and innovation
•Poor control
Lack of lateral communication will lead to
•Divisions between staff/management
•Lack of co-ordination
•Lack of specialist advice
Question 2
Much of the work of professional accountants involves communicating information for others to use.
Required
a)Explain the importance of clear communication. (5 marks)
b)Explain two main communication methods (5 marks)
c)Describe two barriers to communication (5 marks)
(15 marks)
Answer Plan
2.6 Attributes of effective communication
The characteristics of good communication are that they should be:
•Timely
•Accurate, complete and to the point
•Directed to the right people
•Understandable
The steps that can ensure effective communication include:
•Feedback
•Using more than one communication network
•Restricting the number of links in the communication chain
•Ensuring clarity
2.7 Communication methods and patterns
Methods of communication can be grouped into four classes:
•Oral
•Written
•Visual
•Electronic
Patterns of communication that exists between group members. This pattern can be either
•Centralised – wheel, chain or “Y”
•Decentralised – circle and all-channels
The following diagrams illustrate these patterns.
The wheel is the quickest system and the circle the slowest. The all channel is best in complex situations. Satisfaction is lowest in the circle while under pressure the all channels system restructures itself into a wheel.
2.8 Process of consultation
Consultation is where one party seeks the views of another party before either party takes a decision.
Consultation can help to:
•Improve the quality of decisions
•Lead to better co-operation
•Serve as a preliminary to negotiation
•Increase in organizational efficiency
•Help industrial relations
Consultation must be genuine. If consultation is synthetic then the exercise may be counter productive. If the result of a consultation does not include any of the ideas put forward, subordinates may not feel involved.
‘3The Role of Counselling
3.1What is counselling?
Counselling is about helping people to help themselves.
Counselling is a client-centred problem solving approach that is distinct from telling, advising or manipulating.
The manager/supervisor plays an important role in the counseling process. Kaplan and Coen found that American foremen spent 7% of their time dealing with subordinates problems. The most difficult issues concerned money, marriage and other employees. Their prime technique was the ‘sympathetic ear/’
The values necessary for successful conselling include:
•Non-judgement attitude
•Respect for the client
•Confidentiality
•Acceptance of the whole person
Effective counseling shows management’s commitment to and concern for its staff and is likely to improve employee loyalty and enthusiasm.
The problems of retirement and redundancy are increasingly recognized, and constructive counseling programmes have addressed these issues. In large organizations, links with external services such as marriage guidance counselors, Samaritans and Alcoholics anonymous, may be effective.
3.2
3.2Skills of effective counseling
Through active listening, the use of open questions and clarifications, the counselor encourages reflection and helps the client identify issues and solutions. Counselling does not involve giving advice or making suggestions.
Effective counseling relies on a high level of interpersonal skill, such as
•Establishing rapport
•The ability to discern meaning
•Being able to summarise and clarify
•Ask the right questions
Counselling, being a one-to-one technique to help people achieve a goal, requires good interviewing skills. The counseling approach may be alien to managers used to finding directive solutions to problems.
Counselling requires active listening.
3.3Counselling staff
Problems may arise
•Within the individual
•Be caused by the organization
•Or arise from sources external to both the individual and organization
Individual problems may be psychological – arrogance or self-pity – or be caused by dissatisfaction.
Most organizational problems arise from technical incompetence, underwork (role underload), overwork (role overload), relationships with colleagues and superiors, and uncertainty.
External factors may include money and family relationships.
The key factor in a successful counseling interview is establishing the main problem. This may be found by exploring the emotions involved and their source.
Counselling is a mutual exploration in a non-critical context. The range of feelings and emotions must be fully understood to ascertain the problem and explore solutions.
‘4Controlling conflict, grievance and discipline
4.1Causes of conflict
It is now generally believed that conflict is both valuable and necessary. Without it there would be fow new challenges, there would be no stimulation to think through new ideas and organizations would become stagnant and apathetic.
Conflict can be constructive (generating new ideas) or destructive (destroying morale and motivation).
While there are many different manifestations of conflict, the causes are often difficult to determine. These may include misunderstandings, insensitive or non-supportive relationships, failure to communicate and unreasonable, competitive or distrustful climates.
Inter-group conflict is sometimes: institutionalized, hierarchy-based and functional, and results from line/staff, formal/informal and status differences, which are often political.
4.2Managing conflict
To be successful in avoiding or resolving conflict, managers must understand:
•The nature of the conflict issue,
•The behaviour and norms of the group
•Their own balance of leadership style
The conditions for avoiding conflict include:
•A positive atmosphere with common recognized goals,
•A clear understanding of tasks and
•A steady environment
The two main strategies for managing negative conflict are to:
•Convert the conflict into a positive one using a team building approach
•To respond to the conflict by trying to avoid, defuse or confront it.
Confrontation means that the opposing sides meet and discuss the problem rather than suppress it. Conflict resolution through confrontation can occur by negotiation or through the exercise of power. The negotiation strategy has more chance of a win-win outcome.
Handy suggested two sets of strategies for tackling conflict:
•‘control by ecology’, which creates the environment for constructive relationships,
•‘short-term regulation’.
Techniques for coping with conflict are:
•co-operative problem-solving
•the search for superior goals,
•the peacemaker
•the improvement of interpersonal skills.
Question 3
Conflict is an inevitable feature of organizations but is rarely recognized or understood.
Required
a)Describe the causes of conflict. (5 marks)
b)Describe the symptoms of conflict in the workplace. (5 marks)
c)Describe the ways in which conflict may be managed. (5 marks)
(15 marks)
Answer Plan
4.3Dealing with grievance and disciplinary matters
A grievance is something employees have when there is something in the work situation which they feel is unfair, wrong, unjust or unreasonable.
A grievance may become a complaint, which expresses employee dissatisfaction, or a dispute, which is a formal expression dissatisfaction at organizational level.
Grievances may center on unfair treatment, unequal pay or job security.
Discipline is either a code of acceptable conduct or a system of rules establishing behaviour patterns.
Punishment is disciplinary action which occurs as the result of a breakdown in the code of conduct (or the breaking of the code as a deliberate action).
Generally, there are two types of discipline:
•accepted behavioural codes
•imposed, legally-enforced regulations or rules.
There are four basic categories of organizational rules. These are:
•to protect the organisation’s image,
•set out basic standards for its well-being,
•prevent loss
•outline behavioural codes.
Disciplinary problems within the organization may arise from breaches of health and safety regulations, and activities that hamper the performance of work teams or the organization in general.
Disciplinary problems that take place outside the workplace and involve the company include personal abuse of alcohol or drugs, law-breaking activities, or undertaking private work to the detriment of the employer.
4.4Appropriate procedures
Procedural agreements aim to ‘keep the peace’ and avoid ‘war’ between different parties, and may cover grievances, disciplinary action, disputes, promotion and redundancy.
The Employment Protection Act requires a named person to whom grievances can be addressed to be included in the terms and conditions of employment.
4.5Process
Disciplinary action is usually applied progressively, from informal to formal verbal warnings, written warnings, and disciplinary action such as suspension, demotion or layoff. Finally, dismissal may occur if previous action has failed.
An organization should have a model disciplinary procedure.
There are four formal stages in the grievance procedure, commencing with the employee’s immediate superior, moving on to more formal internal measures. External arbitration may follow, or the issue may be treated as a dispute and the agreed negotiation procedure may be adopted.
Whether the issue warrants a correction or reprimand must be clarified by the manager or supervisor before dealing with the issue.
Disciplinary action causes resentment both to managers and subordinates and is often avoided. To minimize resentment, any action should be taken quickly and consistently, and action should be impersonal and private.
Disciplinary interviews can be planned in advance to establish the facts and to confirm the offence. The aim is to prevent further misconduct. The employee has the right to bring a friend or colleague as a witness to the interview.
Employees have the right to appeal against disciplinary action. It is a management obligation to provide an appeal procedure.
Question 4
The accounts manager understands the need to motivate employees, but does not understand what is meant by discipline within the employment context. You have been asked to explain.
Required
a)What do you understand by the term ‘discipline’ in the employment context. (5 marks)
b)Provide examples of situations where disciplinary action may be required. (4 marks)
c)Describe the steps involved in a formal disciplinary procedure. (6 marks)
(15 marks)
Answer Plan