9 iness ethicscommunicationsimplifiednotesin21pages
TRANSCRIPT
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Mukesh Agarwal Research Group Business Ethics & BS for CA PCC / IPCC
AECIndia.Commerce, G M Ext. Place, Shinde Ki Chhawani, Gwalior-474001 +91-751-2424240, 98930-16415
CS/CA Guidance Classes Web: www.aecedu.webs.com; E-mail:[email protected] Page 1 of 21
SpecialisedNotes
of
BUSINESS
ETHICS& BUSINESS
COMMUNICATIONPreparedby:$ARIKA GARWAL
40 Marks in just 21
pages
AEC.com Private Limited (CS / CA Guidance Classes)(SAFALTA SATH RAHE.)
2nd Floor,Gopal Madhav Extension Place,
Shinde ki Chhawani.98272 04115,98930 16415, 0751-2424240www.aeccsca.blogspot.com
http://www.aeccsca.blogspot.com/http://www.aeccsca.blogspot.com/ -
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Mukesh Agarwal Research Group Business Ethics & BS for CA PCC / IPCC
AECIndia.Commerce, G M Ext. Place, Shinde Ki Chhawani, Gwalior-474001 +91-751-2424240, 98930-16415
CS/CA Guidance Classes Web: www.aecedu.webs.com; E-mail:[email protected] Page 2 of 21
Sr.Number NumberofQuestions Topic PageNo.
1 5 Principles & BusinessEthics 3
2 5 Corporate Governance &Corporate Social
Responsibility5
3 5 Work Place Ethics 74 3 Environment Ethics 95 3 Ethics in Marketing &
Consumer Protection 10
6 6 Ethics in Accounting &Finance. 11
7 11 Essentials ofCommunication 13
8 6 Inter PersonalCommunication Skill 179 4 Group Dynamic 1910 4 Ethics of Communication 21
Index
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Mukesh Agarwal Research Group Business Ethics & BS for CA PCC / IPCC
AECIndia.Commerce, G M Ext. Place, Shinde Ki Chhawani, Gwalior-474001 +91-751-2424240, 98930-16415
CS/CA Guidance Classes Web: www.aecedu.webs.com; E-mail:[email protected] Page 3 of 21
Chapter1.Principles&BusinessEthicsInthischapter,weshallanalysetheconceptofEthics&itsrelatedfactors.
Q.1]DefineBusinessEthics&giveitsimportance.Ans.-1)Everybusinessisalwaysrunningfortheprofitmotive,butitmayaffectthesocialgoals for e.g. Satyam incorporations distributed huge dividends but its activities weredeclaredtobeethicallywrong.2)Thusthebusinessisexpectedtofollowsomeethicssothatitwillgrowwiththesocialbenefit.3)Inearliertime,theKingwashavingthehugewealth,buttheKingwhowasnotfollowingtheethicswasnotrespectedbythepeople.
4)ThefamousthinkerslikeSwamiVivekananda,MahatmaGandhi,andSocrateshasalsogivenlotofimportancetoethics.5)Ifabusinessorganizationfollowsbusinessethicsthenitwillresultinfollowingbenefits:-
(i)Thebusinesscangivebetterservicetothesociety,(ii)Itcreatesgoodwill,(iii)Itimprovesproductivity&positivity,(iv)Itcreatesgoodenvironmentinorganization,(v)Itgivesassuranceoffollowingthelegalformalities,(vi)Ithelpstoavoidcriminalacts,(vii)Themanagementisrespectedbythewholeteam.
Q.2]Whatisdifferencebetweenethics&morals?Points Ethics MoralsOrigin Greek word Ethics
meaning:TheCharacter Latin word Moralsmeaning : Custom orTradition
Relatedwith Individual personality &character The general rules ofsocietyDependson Thinkingof Individual ThinkingofSocietyDesignedby Individual Society
Sometimes, there is contradiction between these two terms, E.g. bowing downbeforeGodisatraditionbutitmaybeagainsttheethicsofindividualpersonnotbelieving in
God.
Q.3]Whatarethereasonsthatwefollowtheethics?Approach/Reason Meaning
Utilitarianapproach The approach to make the most good & least harmto anyone.
DeontologicalApproach Here we believe that our ethics are the rights of
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Mukesh Agarwal Research Group Business Ethics & BS for CA PCC / IPCC
AECIndia.Commerce, G M Ext. Place, Shinde Ki Chhawani, Gwalior-474001 +91-751-2424240, 98930-16415
CS/CA Guidance Classes Web: www.aecedu.webs.com; E-mail:[email protected] Page 4 of 21
person&meshouldrespectitFairness/Justiceapproach AsperGreekphilosophywearefollowingethicsbecause
memustgiveequaltreatmenttoall.Commongoodapproach Followstheethicsforwelfareofeveryoneinthesociety.Thevirtueapproach The ethics are followed with the belief that these
will becomemyhabits&willupgrademypersonality.Duetoalltheseapproachwefollowtheethics.
Q.4]WhatistheNatureofEthics?Ans.:-(1)ItisnotaReligion:-
Itdoesnotcomebyreligionbutanindividualmotive.(2)Itisnotculturallyacceptednorms:-
Culturemayhavesomeimpactonethicsbutitisnottheultimateforce.(3)ItisnotaScience:-
Scienceisuniversallysame,butethicschangesfrompersontoperson.
Q.5]Howethicaldilemma/confusionarises&howtocomeoutofit?Ans.:-1)Manytimestheethicschallengestheprofitmotive&itcreatesthedilemma2) It is very difficult to make choice between ethics & profit motive. E.g. If thedoctors wishestohavelotsofpatientsisagainsttheethicsbutinfavorofhisprofit.3)Thuswecantakethefollowingstepstocomeoutofthisdilemma:-a)Analysethesituation,b)Findoutreasonsofsituation,C)Checkyourownintention,d)Confirmthatyourprofitmotiveisnotharmfultoanyone,e)ConfirmthatitisnotharmfultothepersonrelyingonyouE.G.yourfamily.
Inthisway,thepersoncanmakecombinationofethics&profitability.Thuswehaveseenvarietyofconceptrelatingtoethics
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Mukesh Agarwal Research Group Business Ethics & BS for CA PCC / IPCC
AECIndia.Commerce, G M Ext. Place, Shinde Ki Chhawani, Gwalior-474001 +91-751-2424240, 98930-16415
CS/CA Guidance Classes Web: www.aecedu.webs.com; E-mail:[email protected] Page 5 of 21
Chapter2.CorporateGovernance&CorporateSocialResponsibility[CG&CSR]
Q.1]WhatisCORPORATEGOVERNANCE?Ans.:- 1) Many times it is observed that the profit maximization objective directlychallengestheethics.Thusiftheethicsareconvertedintorulesthereismoreprobabilitytofollowthem.2)Thuseverygovernmentdecidedtohaveonespecialgroupineveryentitywhichwilltakecarethattheseethics&rulesarefollowedproperly.3) The World Bank defines CORPORATE GOVERNANCE as it is about promotingcorporatefairnesstransference&accountability.4)ThusthemainobjectivesofCORPORATEGOVERNANCEare:-i)Toconfirmthatrulesarefollowed.(ii)Toconfirmthatproperaccountingisdone.(iii)Toconfirmthatresponsibilitiesarefollowed(iv)Toconfirmthatpropercontroliscreated
Insimplewordsitsateamofmanagementkeepingcontrol&management.Itgivesfollowingadvantages:-
i) Ittakescareofallstakeholdersi.e.shareholders,creditors,debtorsholders,workers,customersetc.
ii) Itavoidstodisturbtheethicsiii) Itcreatestransparencyinallactivities.iv) Itcratesgoodsimageoforganization.In this way, CORPORATE GOVERNANCE is the team which creates & maintains
corporatesocialresponsibilityinorganization.
Q.2]WhatisCORPORATESOCIALREPORTING?Explainit.Ans.:- 1) CORPORATE SOCIAL REPORTING is the concept which states that everyorganizationshouldfollowsomebasicresponsibilitiesasfollows:(i)EconomicsResponsibilitiesToearnmaximumprofit(ii)LegalResponsibilitiesTofollowsallthelaws(iii)EthicalResponseTofollowsbusinessEthics(iv)DiscretionaryResponsibilitiesTofollowsvoluntaryresponsibilities.E.g.Donationp.a.toNGO2) In simple words CORPORATE SOCIAL REPORTING helps to give proper returns toallstakeholdersi.e.
(i)Profitforshareholders(ii)Goodenvironmentforworkers(iii)Properpaymentofsupplies(iv)Properinteresttomoneylenders(v)Socialactivitiesforsociety.3) Thus if the entity is following CORPORATE SOCIAL REPORTING if will become agood corporatecitizen.
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Mukesh Agarwal Research Group Business Ethics & BS for CA PCC / IPCC
AECIndia.Commerce, G M Ext. Place, Shinde Ki Chhawani, Gwalior-474001 +91-751-2424240, 98930-16415
CS/CA Guidance Classes Web: www.aecedu.webs.com; E-mail:[email protected] Page 6 of 21
Q.3] If you want to follow CORPORATE SOCIAL REPORTING what should bethe contentsofyourCORPORATESOCIALREPORTINGpolicy?Ans.:-1)Perfectinternalcontrol,
2)Commitmenttoallethics,3)Perfectmanagement,4)Properpolicies,5)Properresponsibilities,6)Thevision&missionshouldbecleartoall,7)Propervaluesamongalltheemployees,8)Properstructureofmanagementforthebestcontrol,9)Accountability/Responsibilityofeveryone,10)Remarkstoemployeesfollowingtheethics,11)Propertrainingtoall,12)PerfectCORPORATESOCIALREPORTING.
InthiswayproperchainofalltheaboveactivitieswillhelptocreateCORPORATESOCIAL
REPORTING.
Q.4]WhataretheimpactsbyCORPORATESOCIALREPORTING?Ans.:-InlastsomedecadesmanycompaniesfollowedCORPORATESOCIALREPORTING&
itresulteditsfollowingadvantages:(i) Profitincreaseforshareholders,(ii)Properstandardsweresetforall,(iii)Properresponsibilitychainwascreated,(iv)Itcreatedthetransparencyinallactivities,(v)Resultedingoodimageoforganizatione.g.Tata(vi)Itcreatedproperholdofinvestmentsonorganization,(vii) Thegrowthoforganizationresultedinsocialbenefitalso.
Q.5] Give the list of organizations formed by Govt. to take care of CORPORATE SOCIAL REPORTINGTeam/Standards Details
GlobalReportingInitiative(GRI) Standardsintroducedin1997atGloballevelA 1000 Launchedin1999asasupplementtoGRIby
JohnKillingtonSocialAccountability8000 AdditiontoGRIwithsomehumanrightsUnitedNationsGlobalCompact IntroducedinSep2000byUNO&itincludes
9additionalprinciplesOrganization for economic co-operation&development(OECD)guidelines Introduced in 1976 & updated in2004. Especiallyformultinationalcompany.Bench Mark for measuring businessperformance Introduced some principle for CORPORATESOCIALREPORTINGatgloballevelTheCOUXroundtable Introduced by the management in COUX
Switzerland. It includes the managementfromEurope,Japan&NorthAmerica
GlobalSullivanprinciples Introduced in 1999 with some additionalprinciples
Asian Pacific economic corporation(APEC) IntroducedbusinessCodeofconductin1999forits21membercountries.
ThuswehaveseentheconceptCORPORATEGOVERNANCE&CORPORATESOCIALREPORTING&theorganizationtakingcareofthem.
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Mukesh Agarwal Research Group Business Ethics & BS for CA PCC / IPCC
AECIndia.Commerce, G M Ext. Place, Shinde Ki Chhawani, Gwalior-474001 +91-751-2424240, 98930-16415
CS/CA Guidance Classes Web: www.aecedu.webs.com; E-mail:[email protected] Page 7 of 21
Chapter3:WorkPlaceEthicsIn this chapter, we shall learn the variety of ethics to be followed by us in the workplace.
Q.1]ExplainistheconceptofWorkplaceethics.Ans.:-1) The work place environment having the highest impact on the performance ofeveryperson.(2)Thuswearesomeguidelinestokeeptheenvironmenthealthy.(3)Generallywehavetheimpactoffollowing3factors:-(i)Individualethics&values(ii)Influenceoftopmanagementonothers(iii)Rules®ulationofmanagement(4)Theindividualethicsresultsinthebehaviorofeveryone&anynegativebehaviormaydirectlyaffecttheworkplaceenvironment.
Q.2]Whataredifferentissuestobecoveredbyus?Ans:-Whilecheckingweareshouldconsiderfollowingfactors
(1)Business Relationship The relation between co-workers top & lower levelmanagement,Management&client,Management&Govt.
(2)ConflictofinterestEveryindividualhasitsowninterest&weshouldconfirmthatorganistioninterestisnotdisturbingtheindividualinterest&vice-versa.
(3)Fairness&HonestyFairreturnsaregiventoalltheteams&alltheworkersarehonestwithorganization.
(4)CommunicationThecommunicationstreamshouldbeperfectlymanagedthetopmanagement.Thusabove4factorshelpstohaveperfectWorkPlaceEthics.
Q.3]Whatisdiscrimination?Whatisitsimpact?Ans.:-(1)Itmeansmakingthedistinguishbetween2persons,(2)Itmaybeduetoskillability&performanceofanyone,(3)ItaffectsthePrincipleofEquality&disturbworkplaceenvironment,(4)Thediscriminationtakesplaceinfollowingareas,(i)Improperrequirementsometimesappointmentismadeonbasisofcaste,relations,religion,sexetc,(ii) Screening procedure Sometimes some wrong bases are used for screeninge.g. Convertstudentswillbeselectedonly.
(iii)PromotionsTheparticularinpromotionaffectstheenvironment(iv)EmploymentConditionDifferentwagesjobtotheconditionhavingsamecaliber,maydisappointsomeone(v)DismissalFiringanyemployeeduetobadperformancediscriminationwillaffecttheenvironment.
Q.4]ExplainHarassment&itsimpact?Ans.:-i) Itmeansgettingthingsdoneforcefullyfromsomeone,
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Mukesh Agarwal Research Group Business Ethics & BS for CA PCC / IPCC
AECIndia.Commerce, G M Ext. Place, Shinde Ki Chhawani, Gwalior-474001 +91-751-2424240, 98930-16415
CS/CA Guidance Classes Web: www.aecedu.webs.com; E-mail:[email protected] Page 8 of 21
(ii) It includes (a) Forcing the person to do the activities out of his capacities(b) Overtimejobwithoutextrapayment(c)Forcingthepersontodothejobagain(d)Badworkers (e) Not giving holidays (f) Forcing to work in condition of ill health (g)
Sexual harassment.(iii)ThemetimpactofallabovefactorsisItwillaffectthebusinessEnvironmentthuseveryorganizationshouldhaveacommitteetocreateethicsagainstharassmentalso.
Q.5]Givetheguidelinestocreateproperlyworkplaceethics.Ans.:-(1)Createproperlycodeofconduct,(2)Createopencommunication,(3)Takedecisionsonthebasisofethics,(4)Publishtheethicaldecisionstakenbythegroup&giverewards,(5)Createtheteamstotakecareofethics,(6)Appointombudsmeni.e.middlemenforgoodco-ordinationofethics,(7)Createatmosphereoftrust,
(8)Updatethepoliciesproperly,(9)Createtheteamtosolvetheproblemofworkers,(10)Topmanagementshouldcreateproperlyexamplebeforelowerlevelmanagement,
Inthiswaywecancreateagoodbusinessenvironmentbyproperhints.
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Mukesh Agarwal Research Group Business Ethics & BS for CA PCC / IPCC
AECIndia.Commerce, G M Ext. Place, Shinde Ki Chhawani, Gwalior-474001 +91-751-2424240, 98930-16415
CS/CA Guidance Classes Web: www.aecedu.webs.com; E-mail:[email protected] Page 9 of 21
Chapter4:EnvironmentEthicsQ.1]ExplainEnvironmentalEthics.Ans.:-(1)Anorganizationmayaffecttheenvironmentlikeaim,water,landpollutionetc.Thushereweshalllearnsameethicsrelatingtotheenvironment(2) Generally pollution refers to undesirable effect on the environment due tomanufacturing&useofresources.(3)Generallyfollowingimpacthasbeenobservedonenvironment(i) Air pollution Expanding the bad factors in the air, affecting the environmente.g.3000peoplekilledinaccidentofBhopalgasfactoryin1984.(ii)GlobalwarmingIthascreateddangerofheavyfloodfromsouthpole.(iii) Ozone depletion It includes heavy consumption distraction of ozone whichhas generatedglobalwarming.(iv) Acid Rain It results in the rain with some acidic factor due to pollution. i.e.TajMahalgettingaffectedduetoacidrain.(v)Waterpollutionsomebadfactorsaremixedinriveraffectinglife.(vi)LandpollutionArtificialfertilizersmixinginsailaffectsthequalityofsoil.Thenetimpactofallaboveresultedinaffectingenvironment.
Q.2]WhatarethecontentsofEnvironmentEthics?Ans.:-(1)Rulesagainstanypollution(2)Properwastageclearingsystem(3)Systemforreducingthewastage(4)Increasingtheecofriendlyproducts
(5)Resourceofwastage(6)Creatingawarenessamongworkers(7)Minimizingusesofnaturalresources(8) Green accounting system i.e. focusing on deficiencies in the use of environmentalfactors&accountingofEnvironmentEthics.
Q.3]WhatarestepstakeninIndiaforEnvironmentEthics?Ans.:-(1)IndianGovt.passedAIRcontrol&preventionofpollutionAct1981(2)WaterpollutionActwaspassed(3)FactoriesActwasamended(4)Industries(Development&Regulation)Actpassedin1951(5)Mines&Minerals(Regulation&Development)Actpassedin1957.
Inthiswayeveryorganisationmustfollowenvironmentalethics.
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Mukesh Agarwal Research Group Business Ethics & BS for CA PCC / IPCC
AECIndia.Commerce, G M Ext. Place, Shinde Ki Chhawani, Gwalior-474001 +91-751-2424240, 98930-16415
CS/CA Guidance Classes Web: www.aecedu.webs.com; E-mail:[email protected] Page 10 of 21
Chapter5:EthicsinMarketing&ConsumerProtection
Q.1]ExplainconcertmarketingEthics?Ans.:-(1)AsReyJohnRockefellerEveniftheproductisgood,itismoreimportant thatthepeopleshouldknowthatitisgood(2)Butmanytimesthemarketingpersonaffectsethicstosellmore&moreproductswhichaffectstheimageoforganization(3)Thusweshouldfollowmarketingethicsdueto(i)Itcratesgoodimageinsociety(ii)IthelpstoreduceGovernmentregulationontheorganization(iii)Ithelpstogivepowerinsociety
(iv)Itprotectsbrandnameofcompany.
Q.2]Whatisconsumerinterest&howitisprotected?Ans.:-(1)Asweknowconsumeristheking&varietyofprovisionsismadetoprotecthimfromthenegativeimpactofcompetition(2)TheWorldBankdefinesthesituationwheretheseller&purchasercandealethically&tohaveprofit.(3)Butmanytimescompetitioncreatesbadpractice(4)Thusfollowingarethestepstakentocontrolcompetition(i)AntiTrustAct1890wasintroducedinUS(ii)TheClaytonActwasintroducedin1914(iii)OnthefailureofaboveActinus
(iv)TheFederalTradecommissionAct,1914wasintroducedinUS(v)TheUKcompletionActwasintroduced1988(vi)TheUKcompletionlawwasintroducedin2002(vii)TheCompetitorAct2002introducedinIndia.ThemainaimofallaboveActswastoreducemonopolytorefuseimpropermergeretc.(5)Theoverallinterestofconsumeristobeprotectedbytheethicsofconsumerprotection.
Q.3]whichrightsofconsumerareprotectedbycentralcouncilofIndia&byUNguidelines?
:(1)ConsumerprotectioncouncilofIndiaprotectsrightsofconsumerstobe:(i)informed(ii)assuredaboutquality,(iii)heard,(iv)gettingredressed(remedy)againstcomplaint(v)protected,(vi)educated,(2)UnitedNationsguidelinesgivesfollowingrights(i)physicalsafety(ii)economic interest(iii) standard quality(iv)Remedy(v)education(vi)Health(vii)quality&consumption
(viii)essentialgoodsInthiswaymehaveseenmarketingEthics&consumerprotection
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Mukesh Agarwal Research Group Business Ethics & BS for CA PCC / IPCC
AECIndia.Commerce, G M Ext. Place, Shinde Ki Chhawani, Gwalior-474001 +91-751-2424240, 98930-16415
CS/CA Guidance Classes Web: www.aecedu.webs.com; E-mail:[email protected] Page 11 of 21
Chapter6:EthicsinAccounting&Finance.Q.1]ExplaintheimportanceofEAF.Ans.:-(1)Anaccountantishavingresponsibilityasheismakingtheaccountingtofindoutprofit&loss(2)Manytimesanaccountant/financialmanagerneedstogivesuggestionwhereconflict ofprofitv/sethicsmayarrive(3)AsperMr.HenryFordAbusinesswhichmakesonlymoneyisapoorkindofbusiness(4) Thus an accountant/FM must follow theethics sothat hecan generatetheprofitfor alongwiththesocialwelfare(5)Thustheethicsofaccountingincludestherealaccountingnofrauds&socialwelfare.
Q.2]Whythereisconflictsinethics&accounting?Ans.:-(1)ConsultantHehastothinkaboutprofitabouthisclientwhichmayaffecttheethics.(2)AuditorSometimesheignore/fraudstoavoidtheloss(3)Sometimesshorttermresultsareveryimportantthanethics(4)Sometimesverysmallunethicalissuesarereflectedwhichcumulativelycreatesfraud. (5)SometimessomeA/crulesaretwistedtoincreaseordecreasetheprofit(6)Thusinabovesituationsthereisaconflictinethics&profit.
Q.3]Whatisexpectedfromanaccountantbyfollowingtheethics?Ans.:-(1)Properaccounting(2)Followingallthelaws(3)Propertreatmentofeachtransaction
(4)PerfectAudit(5)Bringingmistake/fraudinthepicture(6)Toconfirmthatemployeesknowstherules®ulations(7)Heshouldfollowfollowingprinciplesof:(i)IntegrityItmeanstoavoidfraudrefusebribeetc,(ii)Objectivityi.e.tofollowimpartiality,(iii)Confidentialityi.e.nottodisclosesecretinformation,(iv) ProfessionalCompetence&duecareinAudit,(v)Professionalbehavior,
Q.4]Whatarethethreatsduetowhichtheaccountantavoidethics?Ans.:-Threatof(i)SelfinterestHeisfollowingtheethics(ii)Selfreviewnothavingselfrespect(iii)Advancethethreatofnotgettingco-operationfromother(iv)Familiaritythreatofaffectingcloserelations(v)Indemnificationhereheisnotallowedtofollowethicsbyexternalpressure.
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Mukesh Agarwal Research Group Business Ethics & BS for CA PCC / IPCC
AECIndia.Commerce, G M Ext. Place, Shinde Ki Chhawani, Gwalior-474001 +91-751-2424240, 98930-16415
CS/CA Guidance Classes Web: www.aecedu.webs.com; E-mail:[email protected] Page 12 of 21
Q.5] Which safeguard steps the management can take so that theaccountant/audition/employeeswillfollowtheethics?Ans.:-(1)Givetheassuranceofnotrelishingforsayingthetruth(2)Goodworkingenvironment(3)Educationaltraining(4)Corporategovernance(5)Createstandards(6)Createproblemssolvingteam(7)Createethicalmodels (8)Stronginternalcontrol (9)Goodcommercialsystem(10)AppointingimportanceofEthics(11)Explainingawardsforfollowingtheethics
Q.6]Howtheethicalconflictbesolved?Ans.:-Thiswehaveseeninearlierchapter.Inthiswaywehaveseentheimportanceof ethics&theirapplicationinall theareas ofbusiness.
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Mukesh Agarwal Research Group Business Ethics & BS for CA PCC / IPCC
AECIndia.Commerce, G M Ext. Place, Shinde Ki Chhawani, Gwalior-474001 +91-751-2424240, 98930-16415
CS/CA Guidance Classes Web: www.aecedu.webs.com; E-mail:[email protected] Page 13 of 21
PARTB:BUSINESSCOMMUNICATION
Chapter7:EssentialsofCommunication.Q.1]Whatiscommunication?Whyitisimportant?Ans.:- (1) The word communication is derived from Latin word Communicate whichmeanstoshareideasthoughts&feelings.
(2)Thecommunicationstartsfromthebirthofaperson&evenitisnotendedafterdeath(3) Thus in business world also the communication is the most important factor Theimportanceofhasbeenincreasedduetofollowingreasons:-(i)Thesizeoforganizationhasincreaseduptointernationallevel(ii)Nooftradeunionshasbeenincreased(iii)Theimportanceofhumanrelationshasbeenincreasedalot(iv)Increasingimportanceofpublicrelation(v)Advancementoftechnologyhasincreasedthescopeofcommunication.
Q.2]Explainthecommunicationprocess.Ans.:-(1)SenderThepersonsendingthemessage(2)MessageTheideas/emotionstobecommunicated(3)EncodingConvertingmessageintocodeformat(4)ChannelMediumforsendingmessage(5)ReceiverPersonreceivinghemessage(6)DecodingConvertingbecodelanguageinnormalmessage(7)FeedbackResponsefromthepersonreceivingmessageQ.3]WhatarethetypesofCommunication?Ans.:-Communicationisof2types:Formal&Informal.Theformalcommunicationsareoffollowingtypes(1)DownwardsCommunicationbossestosubordinates(2)UpwardCommunicationsubordinatestobosses(3)HorizontalCommunicationbetweendepartmentmanagers(4)Diagonal/CrosswordBetweendifferentemployeesofdifferentdepartment.Q.4]Explainadvantagesofformalcommunication.Ans.:-(1)Itismosteffectivewayofcommunication(2)Itcoverswholeorganization(3)Itcanbeextendedwithincreasingsizeoforganization(4)Ithelpstokeeppropercontact(5) Itgivesperfectcommunicationsystem.
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Mukesh Agarwal Research Group Business Ethics & BS for CA PCC / IPCC
AECIndia.Commerce, G M Ext. Place, Shinde Ki Chhawani, Gwalior-474001 +91-751-2424240, 98930-16415
CS/CA Guidance Classes Web: www.aecedu.webs.com; E-mail:[email protected] Page 14 of 21
Q.5]Explaintheconceptofinformalcommunication.Ans.:- (1) Its a communication without any planning (2) It generates without anylimitation&isalsocalledasGrapeWine(3)Managementhasnocontrolonit(4)followingarethereasonsof increasinginformalcommunication(i)feelingofuncertainty(ii) lackofdirection(iii)lackofselfconfidence(iv)formation awardablegroup(5)FollowingaretypesofGrapewine(i)SinglestrandchainAcommunicatedwithB,BwithC,CwithDetc.
(i) SingleStrandChain
(ii)GossipChainAgossipingwithB,C,D,
(iii)ProbabilityChainAcommunicatedwith3peopleofthem&2communicatedwith4people&soon
(iv)ClusterChainCommunicationingroups
(6)Followingaremeritsof GrapeWine (i) Communicationwithhighest speed (ii) It givesimmediatefeedback(iii)It issupportingtoformalcommunication(iv)Itgivespsychologicalsatisfaction toall. (7)Followingarea limitationofGrapeWine (i) It isnotso credible (ii)Many times it carries incomplete information (iii) There is no assurance of reflectionof information.
Q.6]Giveshortnoteaninterdepartmentalcommunication.Ans.:-(1)Itisthetypeofformalcommunicationwhere2departmentheadscommunicatewitheachother(2)Theimportanceofithasincreasedduetofollowingreasons(i)increaseinnumberofdepartments(ii)Longdistancebetweendepartments(iii)physicalseparationsindepartment(iv)separationofactivitiesofdepartment.
Q.7]ExplainvarietyofMediasofcommunication.Ans.:- Media
Verbal
Oral Written
NonVerbal
Signlanguage BodyLanguage
Visual AudioSign Sign
ThecommunicationcanbemadebyvarietyofMediasasfollows(1)Oralcommunication:-
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Mukesh Agarwal Research Group Business Ethics & BS for CA PCC / IPCC
AECIndia.Commerce, G M Ext. Place, Shinde Ki Chhawani, Gwalior-474001 +91-751-2424240, 98930-16415
CS/CA Guidance Classes Web: www.aecedu.webs.com; E-mail:[email protected] Page 15 of 21
(i) According to the research, the oral communication is about 45% of totalcommunication.(ii) It includes:-a)Intra personal(self)Communicationb)Interpersonalcommunication C)Group communication d)Public communication e)Masscommunication(iii)Inoralcommunicationwehavetotakecareoffollowingpoints:-a)understandthe subject b) Analyse the receiver c) be sincere d) use simple language e)be prcised f) Explain the facts g) Assuming nothing h) Be polite I) Avoidinsultingmessage.
(2)Writtencommunication:-(i)Itcreatetheproofofcommunication(ii)Itisthemostformalwayofcommunication(iii)Alongwithaboveprecautionsweshouldusecorrectgrammaticallanguagegoodhandwriting,yourattitude.
(3)Bodylanguage
:-
(I)itisthemosteffectivemeansofcommunication(ii)Itincludesposture,eyecontact,dressingsense,gesture,smile(iii) The best use of body language creates the best impact before startingfor communication.
(4)Paralanguage:-(i)Itisalsononverbalcommunicationbutitisapplicabletoverbalcommunication(ii)Itincludes:-a)Pitchvariationb)Speakingspeedc)Properpaused)wordstresse)volumevariation.E.g.OK,Uknowhowetc.Ifallthesefactorsareusedproperlythen,wecanhaveperfectcommunication.
(5)OthernonverbalMedias:-(i)Silence(ii)Timelanguage:-heretimeisveryimportantfactor.E.g.Someonegivesbetterperformanceinmorning&otherinevening(iii)Proxymies:-(i)Itsaspacebetween2person(ii)Itindicatesimportanceofsuchperson(iii)Itisdividendin4levels:-a)Intimate/close(upto8inches)b)Personal(18inchesto4feets)c)Social(4to12feets)d)Public(12feets&above).Thusallabovewerethetypesofcommunication.
Q.8]Whatistheimpactofgoodcommunication?Ans.:-(i)Goodimpression
(ii)Timesaving(iii)Solvingtheproblems(iv)Easydecisions(v)Increasedproductivity(vi)Goodrelations
(vii)steadyworkflow(viii)Goodresponse.
Q.9]Explainbarrierstocommunication.Ans.:-(i)Noice
(ii)Poortiming(iii)Wrongchannel(iv)Breakdownofnetwork(v)Lackofproperplanning(vi)Psychologicalbarriers
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Mukesh Agarwal Research Group Business Ethics & BS for CA PCC / IPCC
AECIndia.Commerce, G M Ext. Place, Shinde Ki Chhawani, Gwalior-474001 +91-751-2424240, 98930-16415
CS/CA Guidance Classes Web: www.aecedu.webs.com; E-mail:[email protected] Page 16 of 21
(vii) Culturalbarriers(viii) Wrongassumptions(ix)Sociopsychologicalbarrierse.g.Bossmaynotgiveimportancetosubordinates
(x)Emotional(xi)Perception(xii) Filteringofinformation(xiii) Overloadofinformation(xiv) Poorrelation(xv) Poorlistening(xvi) Conflictingoals(xvii) Offensivestyleofreceiver(xviii) Insufficientperiodofadjustment(xix) Transmissionloss(xx) Pastreference(xxi) Differentlanguage.
Q.10]Writeshortnoteonyouattitude,Ans.:- (i) It is an assumption in letter writing that the writer is the own reader.(ii) Its advantageisthathewilltakecareoflanguage&useproperwords.
Q.11]Differentformatsofbusinessletter.Ans.:-Page13to24ofthestudymodule.
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Mukesh Agarwal Research Group Business Ethics & BS for CA PCC / IPCC
AECIndia.Commerce, G M Ext. Place, Shinde Ki Chhawani, Gwalior-474001 +91-751-2424240, 98930-16415
CS/CA Guidance Classes Web: www.aecedu.webs.com; E-mail:[email protected] Page 17 of 21
Chapter8:InterPersonalCommunicationSkillsQ.1]ExplainICS(Interpersonalcommunicationskills)&itsprinciples.Ans.:-(1)Interpersonalcommunicationisthecommunicationbetween2persons.Itmay beformal&Informal.(2)Itneedsthebestskillswhichcreateourimpressiononthese.(3) Following are the principles of ICS :- (i) Its indispensible i.e. unavoidable (ii) Itis irreversible i.e. cannot be changed. (iii) It is very much complicated (iv) Itdepends onrelation(v)Ithasimpactofenvironmentalfactor(vi)Itdependsonsituationsalso(vii)Ithasimpactofculture.ThuswemustimproveICS.
Q.2]WhatarethecontentsofICS?Ans.:-Itincludesfollowingactivities:-
(i)Collectingtheinformation(ii)Transferringinformation(iii)Creationofunderstanding(iv)Establishinggoodrelations(v)Respectingtheidentityofotherperson.
Q.3]GivetipsforeffectiveICS.Ans.:- (i)Collecttheperfectdata.(ii)Useperfectmedium(iii)Usetheconceptyouattitude(iv)Takethefeedback(v)Beagoodlistener.
Q.4]Giveshortnoteonactivelistening.Ans.:-(i)Itmeansgivingproperresponsetothespeaker(ii)Sayingyesifagreed(iii)Itishelpfultothespeakerforcontinuingthecommunication(iv)Thespeakercanunderstand.Whetherthelisteneriscomfortableornot
(v)Followingarethetipsforactivelistening:-a)Giveattentiontothespeakerb)Show yourinterestinsubjectc)Givereflectionsd)Re-statewhateveryouhavelistenede)Askquestionifrequiredf)Donteveractwithemotions.
Q.5]Giveshortnoteoncriticalthinking.Ans.:-a)Itsateachingtotakeimportantfactsb)HereweshouldignoreirrelevantinformationC) It needs following skills :- i) Analyse course & effect ii) Prepare sequence iii)makecomparisoniv)makeproperrevaluationv)makesomepredictionsaboutfuturevi)check therationality in it vii)Decide the priority viii)make summary of communication (ix)Add ourowninformationwithitD)Thesetechniquewillimprovethefollowingthings:-(i)Personwillbeopenminded(ii)Hewillhavelotofinformation(iii)Hewillmakesomeexperiments(iv)Hewillrememberimportantcontext(v)Hewillbealsotomaketheconclusion.
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AECIndia.Commerce, G M Ext. Place, Shinde Ki Chhawani, Gwalior-474001 +91-751-2424240, 98930-16415
CS/CA Guidance Classes Web: www.aecedu.webs.com; E-mail:[email protected] Page 18 of 21
Q.6]Giveshortnoteonemotionalintelligence.Ans.:-(i)Asweknowhumanbeingisgiftedwithemotions(ii) sometimes these emotions create limitations on us but many times it gives usthe strength.E.g.Mr.J.R.D.Tatawasnotallowedtoresidein5starhotelsinEnglandstatingthatIndian&dogsarenotallowedDuetothesesademotionsheconstructedhotelTajwhereforeignersneedstomakebookingsbeforecomingtoIndia.(iii) It means that if the emotions are used in a proper way then we can achieve
the greatestthingintheworld.(iv)Theemotionalintelligencereferstothecapacitytorecognizeourownfeelings&tousethemforarebenefit.(v)HereweshouldmakeSWOTanalysistoachievesuccess.(vi)Itgivesusselfawareness,selfconfidence,socialawareness,ethics&goodrelationswithall.
ThuswehaveseenimportanceofICS.
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Mukesh Agarwal Research Group Business Ethics & BS for CA PCC / IPCC
AECIndia.Commerce, G M Ext. Place, Shinde Ki Chhawani, Gwalior-474001 +91-751-2424240, 98930-16415
CS/CA Guidance Classes Web: www.aecedu.webs.com; E-mail:[email protected] Page 19 of 21
Chapter9:GroupDynamicsQ.1]Whatisgroup?Giveitsfeatures&types.Ans.:-(i)Groupisacombinationofpersonshavingdifferentskillsbutcommongoal.(ii)Ithasfollowingfeatures(a)Eachgrouphasitsowngoal(b)Eachgrouphasitsownstructure
(c)Formal&Informal(d)Thereispropercommunicationingroup(e) Each group has its own rule (f) Each group has its own climate which depends
on bindingspiritopennesscommunication&motivation.
(iii)Following
are
the
types
of
groups
:-(a)SelfdirectedPeoplecomingtogetherwithoutanycompulsion
(b)QualitycirclePeoplecomingtogetherforcommongoale.g.CAgroup(c)CommitteesTheseareformedformallyforspecificobjectivee.g.sportscommittee(d)TaskForceItissamelikecommitteebuthavingshorttermlife.Q.2]Explaingroupdynamics.Ans.:-(i)Itsaforceofthegroupwhichwecanfeel(ii)Everygroupisdoingtheactivityduetothisforceonly.(iii)Itdependson(a)Spiritofmembers(b)Respectgivenbymemberstoeachother(c)Respectbymemberstovalues&rulesofgroup
(d)Resistancetochangee.g.thegroupmayresistwaychange&itcreatetheforce(e)Thethinkingofagroupe.g.groupofreligionmayhatetheother(f)Thepowerofgroup.Thusthegroupdynamicofeverygroupisdifferent.
Q.3]Whoisleaderofgroup?Whatarehisqualities?Ans.:-Theleaderisthenavigatorofgroup&hehasperformthefollowing:-(1)Selforientedgoals:-(a)Keepingperfectcontrolonselfforcesothatdominationwillnottakeplace.(b)Retiringfromtheteamatrighttime.(c)Havingthemotivationalskills(2)TeamRoles:-(a)Givingencouragementtoallgroupmembers.(b)Creatingproperenvironmentintheteam(c)Givingpropersupporttotheteam(d)Solvingtheconflicts(e)Listeningofall(f)Positivecriticism(g)Keepthetransparencyingroup(h)Maketheinventions.
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AECIndia.Commerce, G M Ext. Place, Shinde Ki Chhawani, Gwalior-474001 +91-751-2424240, 98930-16415
CS/CA Guidance Classes Web: www.aecedu.webs.com; E-mail:[email protected] Page 20 of 21
(3)Taskrelatedrules:-(a)Acceptingtherealistictask(b)Createtheplans
(c)Makeperfectimplementation(d)Keepthecontrol(e)Createperfectcommunication(f)Giveproperremarksonfulfillingthetask.
Q.4]Explainnegotiationskillsofaperson.Ans.:-GenerallytheleadergetsinvolvedinthenegotiationprocessHecancompletethenegotiationswith4results:-(1)WinLosesituatione.g.wewillwinwhileotherswilllose(2)LoseLosesituationHerebothwillsufferloss(3)WinWinsituationBoththegroupwillwinthesituation(4) Compromise Herebothwill takeafewstepsbackward& will createawinwinsituation.Followingaregeneralrulesofnegotiation:-
(a)Analysetheinternalsituationofus&thatofother(b)Decideourexpectation,terms,conditions,stretchablelimitetc.(c)Select proper technique like starting from minimum level, offering 2-3
proposals givingcommitment,increasingofferetc.(d)Makepropernegotiationusingourstrongpoint&othersweakpoint(e)Generallythenegotiationprocessgoeslikethis
(i)Findingouttheobjectives(ii)Arguments(iii)Gettingthesignals(iv) Keepingproperproposals(v)Packagingofotherthingswithproposal.
(vi) Properbargainingbyboth(vii)Argumentordisagreement.Thus this way the leader plays an important role in bargaining also
which needstheskilltoinfluence&preservation
Chapter10:EthicsofCommunication
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AECIndia.Commerce, G M Ext. Place, Shinde Ki Chhawani, Gwalior-474001 +91-751-2424240, 98930-16415
CS/CA Guidance Classes Web: www.aecedu.webs.com; E-mail:[email protected] Page 21 of 21
Q.1]What
is
communication
ethics?
Give
its
importance.Ans.:-
(1)Evenifthecommunicationisgoodbutethicsarenotfollowedthenitwillbeofnouse.(2)Everyonemustfollowsameethicsinthiscommunication(3)Everycommunicationreflectstheethicalbaseofthecommunication(4)Itcreategoodimpressionontheoppositepartyitreflectsourpersonalityalso(5)Wemustfollowthecommunicationethicswithourassistantboss,familymembers&everyotherperson.(6)Theethicsincommunicationdependsonindividualethicsaswellasorganizationpolicyalso
Q.2]Whythereisdilemmaincommunicationethics?Ans.:-Thecommunicationethicsstatesthateverythingmustbeproperlydisclosedbutitcreatethedilemmainfollowingsituations.(1)Whensecrecyistobemaintained(2)Whenthecommunicationmayresultinthegreatnegativeimpactonsociety(3)WhenitisGrapevine(4)Whenitisjustarumor(5)Whenthereisanyconfusion(6) When the information can be given with mild sense. E.g. Even if bribe is calledas considerationfees,itisperfectcommunicationbutitisethicallywrong.
Q.3]Whataretheguidelinestofollowethicsincommunication?Ans.:-(1)Createguidelinesforall(2)Keeppropercommunicationsystem
(3)Appointpropermiddleman(4)Motivatehonesty(5)Showconfidenceinemployees(6)makecommunicationintime(7)Keeppenaltyforun-ethicalcommunication.
Q.4]Whatisadvantageofethicalcommunication?Ans.:-(1)Itcreatesgoodimage(2)Perfectcommunication(3)Senseofresponsibility(4)Ifcreategoodenvironmentofselfrespectetc.Inthiswaywehaveseentheimportanceofethicalcommunication.