Certificate IV in Financial Services
(Bookkeeping)
Course 11334
Training Package FNS10
APPLY PRINCILPES OF PROFESSIONAL PRACTICE TO WORK IN
THE FINANCIAL SERVICES INDUSTRY
FNSINC401A
DEVELOP & IMPLEMENT POLICIES & PROCEDURES RELEVANT
TO BOOKKEEPING ACTIVITIES
FNSBKG401A
Workbook
Apply Principles of Professional Practice to Work in the
Financial Services Industry
FNSICIN401A
Develop & Implement Policies & Procedures Relevant to
Bookkeeping Activities
FNSBKG401A
Contents
Part 1: Role and Responsibilities of the Bookkeeper ................................................... 4
What is the Financial Services Industry? ....................................................................... 4
External Forces that may Impact the Australian Financial Services Industry ................. 5
Other External Forces that Impact the Australian .......................................................... 6
What is a Bookkeeper? ............................................................................................... 10
Part 2: Legislation and Codes in the Industry ............................................................. 12
Legislation in the Financial Services Industry .............................................................. 12
Ethics in the Financial Services Industry ..................................................................... 20
Part 3: Develop Systems .............................................................................................. 23
Organisation Codes, Policies and Procedures............................................................. 23
Planning Work and Time Management........................................................................ 27
Manage Information .................................................................................................... 31
Part 4: Personal and Professional Development ........................................................ 36
Accounting Professional Industry Associations............................................................ 36
Bookkeeping Professional Industry Associations ......................................................... 37
Other Forms of Professional Development .................................................................. 37
Part 5: Teamwork & Planning ....................................................................................... 39
Actively Participate in all Team Processes to Ensure Team Objectives are Met .......... 39
Team Skills.................................................................................................................. 43
Part 6: Identify Sustainability Issues for the Financial Services Industry ................. 48
The Importance of Triple Bottom Line.......................................................................... 48
Determining Best Practice ........................................................................................... 49
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Apply Principles of Professional Practice to Work in the
Financial Services Industry
&
Develop & Implement Policies & Procedures Relevant to
Bookkeeping Activities
Unit Purpose
By working through this resource you will obtain the underpinning knowledge required to:



Develop, implement and maintain policies, practices and guidelines to ensure that a
quality service is provided in relation to bookkeeping activities.
Develop a professional working relationship with relevant clients & other relevant
parties.
Recognise & apply GST implications and code transactions.
Carry out research to identify compliance requirements and support materials.
•
Set up and maintain appropriate systems to meet compliance requirements.

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Part 1: Role and Responsibilities of the Bookkeeper
What is the Financial Services Industry?
The financial services industry represents the single largest component of all sectors in the
Australian economy.
The main sectors of the financial services industry are:
• Accounting
• Insurance
• Superannuation
• Banking
• Financial planning
• Credit and lending services
• Finance and mortgage broking
• Conveyancing
• Worker compensation
• Financial markets
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External Forces that may Impact the Australian Financial
Services Industry
Over the last 20 years the financial services industry has experienced rapid and extensive
change brought about by globalisation, convergence, advances in technology, and
innovation in product development and service delivery. These forces are explained below.
1. Globalisation

Globalisation is the process by which economic systems and financial markets are
integrated across the world.

Over the two decades we have seen the rapid development technology based
information systems, communication and product delivery systems.

For example, foreign banks entered Australia as a result of deregulation of the
Australian financial system in 1985 and there are now 13 foreign bank subsidiaries
and 14 branches of foreign banks operating in Australia.
2. Convergence

Various sectors of the financial services industry are referred to as separate concepts
e.g. banking, insurance and superannuation. Financial sector reform enables us to
recognise the convergence that has taken place within the financial system.

This means we now view these individual sectors as parts of one whole financial
services industry.
3. Technological Change

Since the introduction of the Automated Teller Machine (ATM) in Australia in 1983
technology has moved ahead at an increasing rate. At the retail end of the market
new payment mechanisms such as EFTPOS and other forms of EFT and Internet
banking have been introduced.

Technology has already had a dramatic impact on all segments of the financial
services market. It has been used to develop new products, to improve the quality of
existing services, to increase operational efficiency, to lower transaction costs and to
increase returns to investors. It is likely that technology will have an even greater
impact in the future.
4. Innovation

Considerable financial innovation has occurred over the last five to ten years.
Technology is a major contributing factor to innovation.
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Other External Forces that Impact the Australian
Financial Services Industry
1. The Value of the Dollar

The Australian dollar (AUD) was floated in December of 1983 and since that time
has fluctuated in value quite considerably. This means the value of the AUD is set by
market forces i.e. more demand for the AUD will lead to a rise in the value of the
AUD whilst more supply will lead to a decline in the value of the AUD.

The main influence on the dollar has been the prices we attract for our commodity
exports overseas. With the resources sector performing strongly, demand for the
Australian dollar has seen it appreciate in value against other currencies.

The stronger AUD means that Australia’s exports become more expensive for
overseas buyers whilst it becomes cheaper for Australians to import goods from
overseas. When the Australian economy is performing strongly this can mean our
imports will exceed our exports.

The Reserve Bank of Australia (RBA) is usually happy to allow the market to set
the value of the AUD, however if the RBA believes that the value of the AUD is out of
step with fair value, the RBA can intervene in the market and conduct what is called
‘smoothing operations’. This means that the RBA enters the market and either buys
or sells a parcel of AUD which has the effect of influencing the value of the AUD.
2. Interest rates

The US economic downturn following September 11, 2001 and the resulting political
uncertainty around the world saw interest rates plunge to a 40 year low in many
countries in the Western world. Low interest rates result in higher economic growth.
This is because companies are encouraged to borrow, as loan servicing costs are
lower. Individuals are also likely to borrow for private purposes such as housing.

Interest rate rises in the last 18 months resulted in the loan servicing costs of
companies to rise. Higher interest rates discourages further borrowing by companies
and individuals, and may result in a decline in economic growth.
3. Political climate
A stable political climate that contributes to economic growth and development is likely to
lead to greater turnover in the financial services industry.
4. Economic climate
The economic climate has a major impact on the strength of the financial services sector.
The economic climate is the product of a range of economic fundamentals. These include:
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• The level of interest rates – the RBA has the task of maintaining conditions in the
money market so as to keep the cash rate at or near an operating target decided by
the RBA Board. The cash rate is the rate charged on overnight loans between
financial intermediaries (e.g. banks). It has a powerful influence on other interest
rates and forms the basis on which the structure of interest rates in the economy is
built.
• The inflation rate – the RBA has a target range for inflation of 2-3%. If the inflation
rate approaches the upper level of this range the RBA is likely to consider lifting
interest rates.
• Inflation can have significant economic effects as it can influence the distribution of
national income and wealth. The relative rates of inflation in Australia and overseas
affect our international competitiveness. A low and stable rate of inflation is desirable
both for the health of the economy and for individual welfare.
• Inflation can impose costs on individuals and the economy by affecting purchasing
power.
• Unemployment rate – a healthy, strongly performing economy favours falling
levels of unemployment.
• Wages growth – wages growth can lead to higher inflation, a rise in interest rates
and hence a fall in the level of economic growth.
• Economic indicators - such as retail sales, motor vehicle sales and the level of
housing starts. Economists use these to predict future economic activity.
• The level of economic growth and outlook – the outlook for the Australian
economy is generally good with relatively low interest rates, a contained inflation rate,
strong resource prices all combining to produce an acceptable level of economic
growth.
• Media, press and public relations reports - media, press and public relations
reports can also have an effect on economic conditions, as reports tend to reflect
market conditions and therefore help form a general market sentiment. If market
sentiment is positive we tend to see financial markets rise in value and conversely, if
market sentiment is negative, we tend to see prices fall.
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Activity 1: Value of the Australian Dollar
Use the range of media available to you to research information on the Australian dollar. This
may include:
• Newspapers – The Sydney Morning Herald, The Financial Review
• Websites, such as bank websites, as well as:
o www.exchange-rates.org
o www.rba.gov.au
• TV and radio – announcements are made at the end of news bulletins regarding the
current exchange rate.
Answer the following questions.
1. What is the value of the Australian dollar at today’s date?
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
2. What impact is the value of the Australian dollar currently having on the financial
services industry?
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
______________________________________________________________________
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Activity 2: The Australian Economic Climate
Discuss how you think the economic climate in Australia affects the following:
1. The housing industry
___________________________________________________________________
___________________________________________________________________
_________________________________________________________________________
2. Inflation
___________________________________________________________________
___________________________________________________________________
_________________________________________________________________________
3. Government spending
___________________________________________________________________
___________________________________________________________________
_________________________________________________________________________
4. Interest rates
___________________________________________________________________
___________________________________________________________________
_________________________________________________________________________
5. Investing – what to invest in
___________________________________________________________________
___________________________________________________________________
_________________________________________________________________________
6. Jobs in bookkeeping
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
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What is a Bookkeeper?
Bookkeeping is a growing profession - it is demanding, exciting, challenging and above all,
rewarding. It is about understanding how a business works and then providing accurate
figures that enable the business to know exactly how well it is doing.
Every business, no matter how large or small, is required by law to 'keep books'. This
involves the recording of the financial transactions of a business, whether manually into
ledgers or by entering everything onto a computer. Bookkeepers can set up record keeping
systems and manage records. Eligible bookkeepers can also prepare and lodge the
Business Activity Statements. However, bookkeepers can’t give taxation advice.
Most people most probably think of bookkeeping and accounting as the same thing,
nonetheless bookkeeping is actually one aspect of accounting. In general it can be said that
bookkeepers do the recording aspects of accounting work whilst Accountants are
responsible for financial report preparation and analysis. Therefore, Accountants themselves
may require the services of a bookkeeper.
The type of work a bookkeeper is responsible for includes the following:
1. Bookkeepers organise source documents pertaining to all of the processes of a
business enterprise – the purchasing, selling, transferring, paying as well as
collecting. Typically the documents include paperwork including purchase orders,
invoices, credit card slips, time cards, time sheets and also cost reports.
Bookkeepers in addition identify and input in the source documents, what are
identified as the financial results of the transactions, along with other business
activities. These include paying the staff members, generating sales, borrowing
money or getting goods or raw materials for production.
2. Bookkeepers record the transactions in the journals and ledgers of the business
(whether manual or computerized).
3. Bookkeepers prepare balance day adjustments and the trial balance which can then
be given to the Accountant for them to prepare the financial statements.
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Activity 3: The Role of a Bookkeeper
What type of things do you think you would be responsible for if you were the Bookkeeper for
each of the following types of businesses:
1. The local hairdresser who employs 2 staff.
___________________________________________________________________
___________________________________________________________________
_________________________________________________________________________
2. An electrician who works as a sole trader.
___________________________________________________________________
___________________________________________________________________
_________________________________________________________________________
3. You are a contract Bookkeeper for a Registered Tax Agent.
___________________________________________________________________
___________________________________________________________________
_________________________________________________________________________
4. You have been employed by a plumbing partnership that previously had manual set
of accounts and now want them computerised.
___________________________________________________________________
___________________________________________________________________
_________________________________________________________________________
5. A potential client has rung you up asking for taxation advice.
___________________________________________________________________
___________________________________________________________________
_________________________________________________________________________
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Part 2: Legislation and Codes in the Industry
Legislation in the Financial Services Industry
Legislation in the Australian financial services industry acts to regulate behaviour, protect
consumers and promote efficiency.
There is various legislation that applies to the financial services industry. The main ones
are discussed below.
Anti Discrimination Legislation



Discrimination means treating someone unfairly because they happen to belong to a
particular group of people.
Most of us have prejudices against, or negative views of, groups of people who are
different from ourselves. If we aren't careful, these feelings can easily lead us to
discriminate against people who belong to those groups.
The laws dealing with discrimination help give everyone in Australia an equal
opportunity or a 'fair go'. The following types of discrimination are against the law:
Carer’s Responsibilities Discrimination
When someone is discriminated against because they need to care for or support a child
or other 'immediate family member'.
Sex Discrimination
When someone is treated unfairly or harassed either because they are a woman or
because they are a man. Discrimination against a woman because she is pregnant can
also be sex discrimination. Harassment is also against the law.
Race Discrimination
When someone is treated unfairly or harassed because of their race, colour, ethnic
background, ethno-religious background, descent or nationality.
Age Discrimination
When someone is treated unfairly or harassed because of their age - for example,
because people think someone is too old, too young or too middle aged. Forcing people
to retire at the old retirement age is also against the law. This is called compulsory
retirement.
Marital Status Discrimination
When someone is treated unfairly or harassed because of their particular marital status,
for example, because they are single, or married, or living in a de facto relationship.
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Discrimination
When someone is treated unfairly or harassed because they are gay or lesbian, or
someone thinks they are gay or lesbian.
Disability Discrimination
When someone is treated unfairly or harassed because they have a disability.

The following state and commonwealth Acts are anti-discrimination legislation:
New South Wales
Anti – Discrimination Act 1977
Disability Services Act 1993
Privacy and Personal Information Protection Act 1998
Commonwealth of Australia
Disability Discrimination Act 1992
Equal Employment Opportunity (Commonwealth Authorities) Act 1987
Equal Opportunity for Women in the Workplace Act 1999
Human Rights and Equal Opportunity Commission Act 1986
Human Rights (Conduct) Act 1994
Privacy Act 1988
Racial Discrimination Act 1975
Racial Hatred Act 1995
Sex Discrimination Act 1984
Privacy Legislation

For reasons best known to ourselves we cherish the principle of keeping our private
affairs “private”.

While Common Law has established some rules in relation to the disclosure of
information, a need existed to reinforce the position with appropriate Statute Law.

The legislation we are concerned with is:
Privacy Act 1988 (Cth)

This Act established privacy standards relating to how personal information is
collected, stored, used and disclosed by federal government agencies.

The Act also sets out the manner in which consumer credit information and Tax
File Numbers (TFN’s) are to be dealt.
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
The Act was amended in 2000 by the Privacy Amendment (Private Sector) Act
2000 which established a national scheme for handling personal information by
the private sector.

This new legislation came into effect on 21 December 2001.

The Privacy Act protects the way in which personal information is handled and
used by:


Private sector organisations;

Government agencies;

Credit providers and credit reporting agencies;

Those that use or collect tax file numbers; and

Data-matching agencies such as the Tax Office and Centrelink.
The Act covers the following areas:

Collection of Information;

Use of Information;

Disclosure of Information;

Quality & Security of Information; and

Rights of access and correction of personal information.
Breach of Privacy Legislation

The Privacy Act provides rights to the individual regarding the information
recorded about them, which include the:
o
Right to access their own personal credit record (a "reasonable charge"
for access may be made)
o
Right to request incorrect information be amended or a statement
detailing the request made added to their credit information
o
Right to expect the information to be safely stored, and used by or
disclosed to authorised users
o
Right to expect the data to be accurate and consistent in accordance with
sound practices of record keeping and information systems management.
o If the individual has reason to believe that their rights have been breached,
they have the right to lodge a complaint with the Federal Privacy
Commissioner.
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Corporations Law
The provisions of the Corporations Law govern financial corporations and institutions. It
provides for the:
 Incorporation of companies
 Issuing of prospectuses
 Allotment of shares and rights and the powers of shareholders
It also provides detailed requirements for the management and administration of the
business of companies including:
 Qualifications of directors and managers
 Calling of, and procedure, for meetings
 Provision of regular accounts and audit
The conduct of licensed financial advisors and their representatives is specifically addressed
in the Corporations Law. Here are some examples:
Conflict of Interest - Section 849
Investment and financial advisers must avoid conflicts of interest when making oral or written
securities recommendations by disclosing to the client:
o Any benefit, including commissions and fees, that the advisor will receive as a
result of the recommendation
o Any interest of the advisor or an associate of the advisor that may influence
the recommendation. For example a large personal holding in the shares they
are recommending.
Know Your Client - Section 851
An investment advisor must have a reasonable basis for making a recommendation. The
adviser is required to investigate the appropriateness of the recommendation in light of the
client’s circumstances. The adviser is liable to compensate a client if the client acts on a
recommendation that breaches these rules and suffers a loss as a result.
Misleading or Deceptive Conduct Prohibited – Section 995
A corporation, including a person, shall not engage in conduct that is misleading or
deceptive. Any person who suffers a loss as a result of such conduct can sue an investment
advisor who breaches this provision.
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Taxation Law
The primary function of taxation law is to raise government revenue.
Taxation law particularly relevant to the financial services industry includes:
Taxation of Companies:

This directly affects the amount of profit available for companies to distribute to
shareholders.

Taxation legislation can affect business decisions (e.g. leasing vs. buying)

Companies have an obligation to collect and/or pay appropriate taxes such as
company tax, PAYG and GST to the Australian Taxation Office.
Taxation of Individuals including Investment Income

Employees pay income tax progressively from their wages (PAYG).

Affects the level of return for investors (e.g. treatment of dividends, shares, share
options and interest)

Negative gearing acts as an incentive to investment (e.g. tax deduction for interest)
Tax Agent Services Legislation (TASA)
The tax agent services legislative package consists of the:



Tax Agent Services Act 2009 (TASA 2009). The TASA 2009 is the main Act. It
establishes the Tax Practitioners Board (TPB) and provides for the registration of tax
agents and BAS agents.
Tax Agent Services Regulations 2009 (TAS Regulations 2009). The Regulations
contain, among other things, the qualifications and relevant experience requirements
for registration.
Tax Agent Services (Transitional Provisions and Consequential Amendments) Act
2009 (Transitional Act). This Act deals with the consequential and transitional matters
arising from the enactment of the TASA 2009. This includes generous transitional
arrangements, including a six month period where BAS service providers can notify
the TPB to transition to registration.
The Tax Agent Services Bill 2008 was introduced into Parliament on 13 November 2008 and
Royal Assent was given to the TASA 2009 on 26 March 2009.
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The provisions that enable the new Tax Practitioners Board to be established commenced
on 26 March 2009, when Royal Assent was given to the TASA 2009. The early
commencement of these provisions is to enable the chair and members of the Board to
prepare for the commencement of the new regulatory regime.
The remaining provisions of the new legislation that constitute the new regulatory regime for
the registration of tax agents and BAS agents will commence on 1 March 2010.
Key Elements of the Legislative Regime
The key elements of the new legislative regime are set out under the following subheadings.
1. The establishment of a national Tax Practitioners Board
The Tax Practitioners Board (Board) has responsibility for registering tax agents and
BAS agents, ensuring that agents maintain appropriate skills and knowledge,
investigating complaints against agents and ensuring that unregistered entities do not
hold themselves out to be agents.
2. A wider scope of application
Under the new arrangements, BAS agents will be governed in the same way as tax
agents, but will only be able to provide a limited range of services relating to the
taxation laws relevant to a BAS provision in the law.
3. Registration requirements
Meeting the fit and proper person test, as well as minimum educational qualifications
and relevant experience requirements, will be required in order to obtain registration
to provide tax agent services for a fee or other reward. The minimum educational
qualifications and relevant experience requirements are set at a less demanding level
for registration as a BAS agent than for registration as a tax agent, in recognition of
the narrower scope of services provided by BAS agents.
The Board may impose conditions on registration limiting the scope of the services
that an agent may provide to one or more areas of the taxation laws or one or more
type of tax agent service. These limitations correspond to the prescribed
qualifications and relevant experience of an individual agent or, in the case of an
agent that is a partnership or company, to correspond to the prescribed qualifications
and relevant experience of the individuals who work for the agent.
While registration is restricted to individuals, partnerships and companies, there is
flexibility for a registered entity to conduct its business through a trust structure. The
registered entity needs to be a trustee of the trust. The TASA 2009 will apply to the
registered entity in its role as trustee in the same way it would apply to that entity if it
was not a trustee.
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4. The introduction of a Code of Professional Conduct
A Code of Professional Conduct (Code) governs the ethical and professional
standards of tax agents and BAS agents. The Code is set out as a statement of
principles and the Board may issue binding written guidelines for the interpretation
and application of the Code.
A formal legislated code has been a key aspect of the new legislative regime since it
was first recommended in 1994 by the Report of the National Review of Standards
for the Tax Profession, Tax Services for the Public. This report recommended that
any such code should be made binding through legislation to enable the Board to
impose sanctions for breaches and thereby to enforce compliance with the code.
5. A range of sanctions for breaches of the Code of Professional Conduct
Under the new arrangements, if a tax agent or BAS agent has breached the Code,
the Board has a range of options. The Board may caution the agent, require the
agent to complete a course of training, subject the agent to practising restrictions,
require the agent to practise under supervision, or suspend or terminate the agent’s
registration. (Currently, the state Boards are only able to suspend or terminate
registration.)
The Board may also apply to the Federal Court of Australia (Federal Court) for an
order to pay a pecuniary penalty for certain serious misconduct, or seek an injunction
to prevent an entity from engaging in, or compel an entity to undertake, certain
conduct.
Such a wide range of sanctions allows the Board to tailor its response according to
the severity of the misconduct.
6. Safe harbour from penalties
A taxpayer who uses a tax agent or BAS agent will benefit from a safe harbour from
certain administrative penalties in certain circumstances. Penalties will no longer apply:


where a false or misleading statement is made carelessly, provided the taxpayer has
taken reasonable care to comply with their tax obligations by giving their tax agent or
BAS agent the information necessary to make the statement; and
where a document (such as a return, notice or statement) is not lodged on time in the
approved form due to the tax agent’s or BAS agent’s carelessness, provided the
taxpayer gave the agent the necessary information, in sufficient time, to lodge the
document on time and in the approved form.
Instructions for GST Registered Businesses
The Australian Taxation Office has prepared a guide to assist you in the preparation of the
GST section of the Business Activity Statement: “NAT 7392 GST – Completing Your
Activity Statement”
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Activity 4: Web Search
Go to the Australian Taxation Office (ATO) website (www.ato.gov.au) and search for the
document “NAT 7392 GST – Completing Your Activity Statement”.
1. Do you think you would find this guide useful when preparing your BAS?
2. Did you see that it refers you to other documents (NAT guides) if you need help?
You will find that the ATO website has many more publications/guides that will be of
assistance to you in your role as a bookkeeper.
Australian Accounting Standards
What are Accounting Standards?


Accounting standards are authoritative statements of how particular types of
transactions and other events should be reflected in financial statements.
Accordingly, compliance with accounting standards will normally be necessary for the
fair presentation of financial statements.
Why are Accounting Standards Required?
 Accounting standards aim to promote comparability, consistency and transparency,
in the interests of users of financial statements.
 For example, investors rely on financial statements and reporting to make informed
assessments on companies and hence their investment decisions.
 The Australian Accounting Standards Board (the Board) is responsible for developing
and issuing AASB Accounting Standards (AASBs) and the “care and maintenance” of
the body of Standards.
 Many entities regulated under the Corporations Act 2001 are required to apply
Accounting Standards in preparing their financial reports.
 Some public sector entities are required to apply Accounting Standards by
Commonwealth, State or Territory legislation, through specific instructions to
preparers or reporting frameworks set out in guidelines or regulations.
 Members of CPA Australia, The Institute of Chartered Accountants in Australia and
the National Institute of Accountants have a professional obligation to take all
reasonable steps within their power to ensure that entities with which they are
involved comply with Accounting Standards in preparing their general purpose
financial reports.
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Ethics in the Financial Services Industry
What are Ethics





Ethics can be defined in a number of ways.
Ethics can be viewed as:
o A set of values
o Moral principles
o Rules of conduct
Ethics determine how an individual reacts when presented with a moral dilemma.
Ethics also govern the way people, and therefore organisations, behave in general.
Ethical considerations and choices that people make are different for many reasons.
Factors Contributing to an Individual’s Ethics
1.
2.
3.
4.
There are many factors that contribute to an individual’s set of values, which are
unique to each person.
Ethics are important because they influence the way people think and act in different
situations.
Person A when faced with the same situation as Person B may react in a completely
different manner because of their particular ethical values.
Some of the factors that shape an individual’s ethics include:
o
o
o
o
o
o
o
o
o
o
o
o
o
Gender
Socio-economic group
Life experience
Parents
Spouse/partner
Family situation
Age
Environment (home/work)
Friends
Work colleagues
Education
Religious beliefs/Culture
Relative wealth
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Factors Contributing to an Organisation’s Ethics
•
An organisation’s ethics are formed by many factors. Some of the factors that
determine an organisations’ ethics include:
o
Management behaviour: an organisation’s ethics is influenced heavily by the
behaviour of management and the emphasis they place on ethical issues within
the company. For example, is there much effort taken by the company to explain
ethical policies to staff? Are there training programs that explain Codes of
Conduct/relevant laws to staff?
o
Employees: they are a key part of an organisation’s ethical behaviour. Each
individual is responsible for themselves, however within an organisation there
must be controls in place that monitor the ethical behaviour of employees.
Employee behaviour may be influenced by a great number of factors including:
1.
2.
3.
Job satisfaction
Job reward in the form of wages and benefits
Relationship with peers
o
Industry type: Some industries are more susceptible to unethical conduct than
others and usually this is based on conduct in the past. For example, when
someone mentions the used car market, people will often associate this industry
with unethical practices, based on past conduct and experiences.
o
Industry Codes of Conduct/Associations: organisations with formal codes of
conduct or who are members of ethical associations reduce the chance for
individuals to behave unethically as there are clear guidelines to follow. It is
important to impose controls on these types of policies.
Making Ethical Workplace Decisions
As discussed so far, an individual’s ethics and an organisations ethics will be different for
many reasons.
Industry Codes of Practice and organisation Codes of Conduct are there to help employees
make ethical decisions.
For example, under the Tax Agent Services Act 2009 (TASA 2009) Registered Tax Agents &
BAS Agents need to comply with the Code of Professional Conduct.
The code of Professional Conduct consists of 5 fundamental principles:
1. Act with honesty & integrity
2. Independence
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3. Maintain confidentiality
4. Be competent
5. Other responsibilities
Activity 5: Tax Agent Services Act 2009 (TASA 2009)
1.
Go to the Tax Agents Services Act 2009
http://www.comlaw.gov.au/ComLaw/legislation/act1.nsf/0/E16BD87134984597CA2576870
020E047/$file/0132009.pdf
and answer the following question.
Briefly summarise the things that can happen if you breach the Code of Professional
Conduct
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
2.
You are on your way back to work after attending a training session on MYOB. Your boss, the
Financial Controller, has asked you catch a taxi back to the office as it is a busy time of the
month. When you arrive at work, the taxi driver offers to leave the amount blank on your
receipt. You can claim this taxi expense on petty cash. Do you accept the taxi driver’s offer
of leaving the amount blank so that you can fill in any amount?
a) What would you do? Why?
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
b) Now consider the fundamental ethical principles when making your decision. Does your
decision change? Which principles did you apply?
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
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Part 3: Develop Systems
Organisation Codes, Policies and Procedures
So far in this unit we have examined various legislation and codes of practice that apply to
the financial service industry. Employees within the financial services industry are expected
to comply with the relevant legislation and codes of practice when performing their work.
Employees in the financial services industry are also expected to comply with codes and
policies that organisations develop internally.
A company’s policies and procedures are developed over time and in response to legislation,
codes of practice, industry guidelines and the company’s vision and mission statement.
A vision statement sets out the values of an organisation. Values of an organisation may
include statements on how customers are treated and how the organisation is to respond to
its customers.
A mission statement sets out how the organisation is going to achieve its ‘vision’ or
‘values’.
Policies and procedures are specific to the company and its nature of business. They are a
set of rules and guidelines to be followed by employees. Best practice can be identified and
referred to in the policies and procedures that will establish standards across the company.
An Organisation’s Code


Society expects that an organisation and its employees behave ethically and that
they should be accountable so as to be able to clearly identify any breach of ethical
behaviour in the workplace.
There are fundamental ethical principles which apply to all employees e.g. avoidance
of conflict of interest, corruption.

It is important for all concerned that an organisation’s standards of ethical conduct
are clearly spelt out for all its employees. This ensures employees know what is
expected of them therefore they can be called to account.

This is sometimes referred to as a Code of Conduct. A Code of Conduct is a written
document that focuses on the relationship between the staff and the bank. It normally
outlines key principles which govern ethical standards and professional performance
behaviour.
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
Parts of all Codes of Conduct that are used by both public and private organisations
may be considered as a "plain English" version of the law. They alert staff to the
obligations they have within the law to the organisation’s policy.
Commercial Confidentiality





Directors and managers cannot use information entrusted to them for their
own benefit e.g. trade secrets, customer lists for competitors etc.
Employees must also keep this information confidential as misuse of this
information can harm the employer’s interests.
Insider Trading is a breach of confidentiality & is prohibited by the
Corporations Law.
Insider Trading is where directors/employees (present & past) of a company
use their position in the company to obtain benefits for themselves at the
expense of shareholders & people in the open market.
Most companies require employees to sign a contract of employment detailing
the requirements of commercial confidentiality.
Duty of Care of Employee & Employer





Legal definition of duty of care is a person’s obligation to exercise reasonable
care in their conduct towards other people to avoid injury, damage or loss.
Employers duty of are includes taking great care when making employment
decisions such as redundancy retrenchment, demotion and when employing
competent & qualified employees. It is also an employer’s duty of care to
provide a safe workplace.
Relevant legislation includes Workers Compensation Act 1987 (NSW) &
Occupational Health & Safety Act 2001 (NSW).
Employee’s duty of care includes performing work diligently, honestly and
ethically. For example honouring a cheque written by a customer where the
account has sufficient funds.
An organisations Code of Conduct shapes the duty of care an employee has
to its employer.
Conflict of Interest



Definition of Conflict of Interest is when the duties performed by an
employee/director in the workplace conflict with the employee/directors
personal interest.
An example is where a director of a public company enters into a contract
with their own personal company & their own personal interests were put
ahead of the employers interests.
Conflict of Interest is governed by the Corporations Law.
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An Organisation’s Policies




In all organisations, many decisions must be made on a day to day basis.
Management must be able to take a consistent course of action when making
decisions.
In addition to legislations and codes of practice, managers are likely to follow internal
policies when making decisions.
An organisations policies outline the course of action that should be taken to
influence and determine decisions in the workplace.
For example, most companies have a personnel policy. A personnel policy would
outline matters such as how a HR manager should decide which person is best for
the job after completing interviews.
An Organisation’s Procedures



As you can imagine, the staff of a financial services organisation perform a variety of
tasks. Staff undergo training (on the job and internal training) to perform their tasks in
a satisfactory manner.
For consistency purposes, staff must follow the same steps and process when
performing a task. To achieve this, organisations develop procedures for staff to
follow when performing various tasks.
For example, consider the Accounts Payable Clerk working at Go Transport Pty Ltd.
Their tasks would include issuing payment when an invoice is received. What do
they do first? The staff member may have undergone general training on how to
process an invoice for example in their study at TAFE. It is also likely that that Go
Transport has developed internal Procedures which outline the task of processing
invoices and issuing payment.
Safework SA have published a guide on “How and When to Write Policies and Procedures”.
You should have a look at this document now.
http://www.safework.sa.gov.au/contentPages/docs/labrWritingPolicy.pdf
Other worthwhile guides can be found at:
http://www.writeexpress.com/or/employee-manual/Employee-Manual-eBook.pdf
http://www.volunteeringnthqld.org.au/volorg.pdf
As you can see policies and procedures are written on all aspects of the business.
Everything from specific job tasks to dress code.
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Some examples/samples of Policies & Procedures for you to look at:
Drugs & Alcohol Policy
DET Code of Conduct Policy
Cash Handling Policy & Procedure
Expenditure & Accounts Payable Procedure
Annual Leave Policy
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Planning Work and Time Management






Planning is an essential function at every level of an organisation. It allows the
identification of priorities and objectives and helps the organisation anticipate change.
The tasks an employee does are based on the goals of the team and the department.
Goals are set at different levels within an organisation, as part of the performance
management process. Ultimately, goals should be integrated to ensure that
employees are working towards supporting the mission and overall direction of the
organisation.
Senior management will be involved in strategic, long-term planning relating to the
overall company operations, often over a 5 to 10 year period. Based on these plans,
operational and action planning will be done by individual departments, with
objectives and targets set and measured over a shorter time, such as 12 months.
As an employee you will be expected to help your organisation achieve its objectives.
Your goals will be more specific, and may include daily, weekly or monthly objectives.
To achieve your goals and objectives you will need to plan effectively and develop
the required skills. It is no longer enough to just have the skills required to do the job.
In the rapidly changing work environment you will need to continually upgrade and
develop these skills and adapt to changes in technology and organisational
structures.
You will need skills to locate information and the resources you need, to plan and
prioritise tasks to be completed, to work independently and with others and to
manage your time effectively.
Time, Resources and Priority Management


An essential element of planning your work effectively is learning how to manage
your time.
You can analyse the effectiveness of your planning and task management by:
o keeping a detailed record of all the activities that you complete during a day
when you are very busy working or studying
o recording the time spent on each task
o reflect on whether you used your time well
o reflect on whether you had appropriate resources
o consider ways you could have worked more effectively
Organising Your Work Space
Organising your workspace will reduce clutter, allow you to access information and
equipment you need quickly and easily, and make it easier for you to process information
and complete tasks.
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Changes in Technology and Work




There is no doubt that change is now a fact of life.
In the financial sector there are many new services, products and competitors in
response to consumer needs and the introduction of new technology.
New ways of investing, the self-service options of online banking and ATMs and the
ability of banks to provide 24-hour international and local access to services are just
some of these.
Changes in workplace legislation, practices, structure and conditions also affect the
way we work, as can be seen in the impact of Australia's workplace relations system.
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Activity 6: Plan Your Work
List 5 the tasks that you need to accomplish this week, either for work, study or family.
Then sort them in order of priority. Identify the information and resources required to
complete the tasks, and the deadline.
Task 1 _________________________________________________________________
Information required _______________________________________________________
Resources required _______________________________________________________
Deadline ________________________________________________________________
Task 2 _________________________________________________________________
Information required _______________________________________________________
Resources required _______________________________________________________
Deadline ________________________________________________________________
Task 3 _________________________________________________________________
Information required _______________________________________________________
Resources required _______________________________________________________
Deadline ________________________________________________________________
Task 4 _________________________________________________________________
Information required _______________________________________________________
Resources required _______________________________________________________
Deadline ________________________________________________________________
Task 5 _________________________________________________________________
Information required _______________________________________________________
Resources required _______________________________________________________
Deadline ________________________________________________________________
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Activity 7: Time Management
Choose one of the tasks from Activity 6. Record the time it took you to complete the tasks.
Analyse the effectiveness of your time management skills by answering the following
questions:
Did you use your time well?
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
Did you have the appropriate resources?
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
Suggest some ways you could have worked more effectively.
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
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Manage Information


Efficient and effective management of information is essential in the day-to-day operation
of all businesses.
Working in the financial services sector involves reading, understanding, analysing,
checking and organising documents and reports in order to meet the needs of both the
organisation and its clients.
Types of Information

Information comes in a variety of forms such as minutes of meetings, memos, letters
and emails, departmental reports to management, company reports, sales figures,
monthly financial reports, client invoices and statements, client files and databases,
personnel files, brochures explaining services to clients, graphs, accounting records,
purchase orders, delivery dockets.

Some examples of financial documents include:
o Quotation - A document specifying an offer to sell particular goods at a
stated price and under specified conditions.
o Purchase order - A document used to order goods or services from a
supplier. When the goods/services are received, the invoice for the goods
will be checked against a duplicate copy of the original purchase order.
o Invoice - A document sent by the supplier to the purchaser with details of
the products/services and prices. When the goods/services are received,
the invoice for the goods will be checked against a duplicate copy of the
original purchase order and the details recorded.
o Statement - A monthly summary of all transactions between the supplier
and purchaser. These are vital documents that should be checked against
invoices and receipts.
o Receipt - A document sent by the supplier to the purchaser after payment
is made. Details must be checked and recorded by the supplier in the
cash receipts journal.
Processing Information




Employees will be responsible for receiving information from management, other staff
members, suppliers and clients.
They will also need to prepare information in a format appropriate for management,
staff members, suppliers and clients.
Documents, reports, diary entries, and documents from suppliers and purchasers
should be carefully checked and accurately processed. This may involve checking
times and dates of appointments, the spelling of names of companies, people and
products, addresses, all figures and calculations and details in quotations.
It will also involve cross-checking documents, for example invoices should be
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checked against purchase orders.
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Activity 8: Processing Information
You work for Apex Financial Planners, and have put in a purchase order for stationery from
Quality Office Supplies. The stationery has arrived with an invoice for payment.
Purchase Order A623
APEX FINANCIAL PLANNERS
P 0 Box 762
Canterbury
Victoria 3125
To:
QUALITY OFFICE SUPPLIES PTY LTD
56 Exeler Road, Box Hill Victoria 3123
Please supply and charge the following goods to our account.
Product
Quantity
number
24
A35N/2
24
5N/3
30
2B/111
Description
Quickwrite pens - black
Quickwrite pens - red
Lined pads – A4
Unit price $
(incl. GST)
10.00 doz
10,00 doz
2.00
Total
20.00
20.00
60.00
Terms: Nett 30 days
Deliver to:
21 Blessingham Road
Canterbury Victoria
Required by: 15 August 2005
Per: L. Smith
Transport:
Speedy Couriers
Date: 10 August 2005
GST included in quoted prices
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Invoice
QUALITY OFFICE SUPPLIES
PTY LTD
56 Exeler Rd, Box Hill
Victoria
3123
Apex Financial Planners
21 Blessinghain Road
Canterbury
Victoria 3125
Invoice No:
Date:
Purchase order no:
15/08/2006
A 623
Qty
Item
Description
Ordered
1.
24
Quickwrite pens 2.
24
Quickwrite
pens - red
black
3.
24
Lined pads– A4
Subtotal
Plus delivery charges
$
625
Method of delivery:
Speedy Couriers
Unit price per
Total
10
00 doz 20
10
00 doz 20
3
00 each 72
112
20
132
00
00
00
00
00
00
The total price includes GST of: $12
Cross-check the invoice against the purchase order, then briefly explain the
action you would need to take next.
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Storing and Retrieving Information






All organisations need to have an efficient system for storing and retrieving
information.
This will include both electronic ("soft-copy") filing systems and paper-based ("hardcopy") filing systems. All systems should allow quick access to the required
information.
Computer-based systems need an effective system for naming files, which must be
backed up regularly for security. The personal details of clients kept in company
databases must be kept confidential and secure.
Paper-based systems will require secure storage for vital documents, often off-site.
Duplicates of financial documents will be required to complete accounting records,
and there will be specific requirements for the number of copies.
As financial source documents must be kept for seven years, it is essential that the
filing system is accessible and conforms with the organisation's requirements.
Providing Information


Effective filing will ensure that employees can access the necessary information they
will need when dealing with clients, suppliers or other employees.
It is important that employees understand what information can be provided, and
which information, such as clients' personal details and details of company activities,
is private or confidential.
Handling Financial Documents


Employees will have to handle, issue and process many different types of source
documents in accordance with their employer's security procedures.
This may involve measures such as two employees counting cash, more than one
employee signing cheques, or two employees holding the keys to safes.
Managing Financial Information


All forms of business are required to issue financial reports for review by
stakeholders.
Stakeholders include managers, shareholders, financiers, taxation authorities,
regulatory bodies and staff. Financial reports include the following:
o Statement of Financial Position (the balance sheet), and
o Statement of Financial Performance (the income statement), and
o Statement of Cash Flows.
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Part 4: Personal and Professional Development
Personal Development
Employees need to ensure they maximise their effectiveness and efficiency when working.
This includes developing the personal organisational and time management skills discussed
earlier, as well as problem-solving and decision-making skills.
Professional Development
In today's demanding employment environment, employees of all types must complete
continuing professional development (CPD) to ensure they have the knowledge and skills
they need to offer clients up-to-date, effective advice and to meet all regulatory requirements
and standards. This is particularly true of the CPD requirements in the financial services
sector described below.
Accounting Professional Industry Associations
There are a number of accounting industry associations. These include:
o
o
o
National Institute of Accountants (NIA)
CPA Australia
Institute of Chartered Accountants in Australia (ICAA)
Whilst the CPA Australia and the ICAA require degree qualifications to qualify for
membership, the NIA accepts membership from holders of an Advanced Diploma in
Accounting.
National Institute of Accountants
To access the professional development requirements of the National Institute of
Accountants go to http://www.nia.org.au/ and click on Membership
The NIA accredits members with their Professional National Accountant or PNA designation.
The NIA sets standards for professional integrity through a Code of Ethics, enforced by the
NIA's investigation and discipline process. Members also commit to continuing professional
education to ensure the maintenance of professional standards and knowledge.
CPA Australia
To access the professional development requirements of the CPA go to
http://www.cpaaustralia.com.au/cps/rde/xchg and click on the Professional Development tab.
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Institute of Chartered Accountants in Australia
To access the professional development requirements of the Institute of Chartered
Accountants in Australia go to http://www.charteredaccountants.com.au/ and click on the
Education tab.
Bookkeeping Professional Industry Associations
Bookkeeping industry associations include:
o
o
Association of Accounting Technicians Australia (AAT) http://www.aat.org.au/
The Institute of Certified Bookkeepers http://www.icb.org.au/
Refer to these websites to see what the minimum level of qualification & experience is
required for membership.
Both these associations require their members to have ongoing training to make sure their
skills are current. Regularly check these websites to see if they offer any professional
development training courses that suit your needs.
The Tax Practitioners Board has a list of registered BAS Agent Associations. The Board can
accredit professional associations so that the professional qualifications and experience of
their members are recognised for registration purposes.
It is well worth your while to join one of these industry associations.
Other Forms of Professional Development
•
•
•
•
•
•
Free ATO http://www.ato.gov.au/ seminars in conjunction with local business
chambers
Short courses to develop skills such as leadership and management skills
Short courses to update your knowledge on legislative changes
Daily reading of financial newspapers such as Australian Financial Review
Industry journals and magazines such as Australian Investor and Business Review
Weekly
Websites such as www.moneymanagement.com.au
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Activity 9: Web Search
Go to the Tax Practitioners Board website (http://www.tpb.gov.au/)
Search for “BAS Agent Associations”.
List & briefly describe the 3 documents that have been produced.
1. _______________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
2. _______________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
3. _______________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
Find and open the document “Recognised BAS Agent Associations”. List the associations
that have been accredited by the Tax Practitioners Board and the date they were accredited
on.
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
_______________________________________________________________________
Keep this information for future reference.
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Part 5: Teamwork & Planning
Actively Participate in all Team Processes to Ensure Team
Objectives are Met
Strategies for team-building need to be structured around the task of getting a group of
people to evolve into an effective work team so that desired organisational goals can be
attained.
Team Definition
Who belongs on the team? Who are the primary players, supporting players, and peripheral
players?
Role Clarification
Who is responsible for what tasks? Who must interact with whom in order to accomplish
his/her tasks?
Goal Acceptance
To what extent do people understand and accept team goals?
Work Climate
How open, trusting, and stimulating is the workplace environment?
Communication
How well do team members communicate with each other? Which behavioural patterns
should be reinforced, which discontinued, and which changed?
Problem Solving
What practical steps should the team take in the future in order to improve both its process
and its performance?
These matters tend to be seen as the less glamorous aspects of teamwork. Yet if they are
not all attended to, inefficiencies and misunderstandings are likely to creep in at the time
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when they are least wanted. Such problems occur when the team is under pressure to
produce a certain outcome and there is no time to rectify inadequate processes.
Clear objectives and sound processes are the foundation of effective teamwork. On that
foundation, teamwork skills are built.
Work Performance
It is probably easier for us to point out another person’s poor performance than our own.
Remember, we are not perfect and although we may be already doing an excellent job, there
is usually room for improvement or for extending our skills and knowledge.
Examples of poor work performance might be caused by a range of factors, e.g. lack of
training, lack of skills or poor management.
Poor work performance may also be a result of absenteeism, conflict, poor staff morale, and
drug and alcohol use by staff. These can be causes or symptoms that have underlying
causes.
You may have heard the term ‘performance gap’—this is basically about identifying poor
work performance and taking action to remedy it.
Identify Strategies to Improve Productivity
Within a service-oriented organisation, where your position involves customer service,
improving productivity can include being able to satisfy customer needs more fully and in a
timely manner.
But what steps would be involved in improving customer service? Employers may need to
provide more effective technology, reorganise the work or even provide more training.
Improving management-employee relations could also help increase productivity.
Productivity can also be improved by increasing employee satisfaction. Employees who are
unhappy at work tend not to perform as well as those who are satisfied with their jobs.
There are a variety of arrangements that workplaces can introduce to provide their
employees with more flexible work arrangements. To achieve greater flexibility, employers
will need to consider the needs of their organisation, their customers and their employees.
For example, for some organisations to better meet the needs of their customers, they may
need to extend business hours, and operate more than five days a week. To do this, the
organisation may need to introduce procedures to help their employees manage their
competing demands.
Employees also need workplaces that are flexible in regard to their needs, like family, study
or other activities.
If an organisation is able to introduce measures to help their employees with their personal
situations, this constitutes a flexible work arrangement.
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Appropriately Inform Individuals of the Workplace Performance
Standards
As members of a team working within a service organisation, we are all responsible for
meeting the specific responsibilities and roles of our individual job specification. In a wellfunctioning team and in certain situations, there will be times that you will assist another
team member in completing their duties—just as they will sometimes assist you in
completing your duties.
All members of the team should feel like they are a valuable collaborator in the development
of the service and this requires individual staff members to be well informed of service
philosophy, policies and practices.
Team members not only need to understand policies and procedures, they are also required
to communicate any concerns and provide feedback to management about the relevance of
these to the service operation. The supervisor of a Financial Services organisation fulfils the
linking role between staff and management and is, therefore, responsible for reporting and
evaluating individual staff or group concerns to be addressed by management.
The Importance of Job Specifications
In working as a team, there is a need to ensure that all work responsibilities are met. To
ensure all work responsibilities are completed in a fair and clear manner, job specifications
are written for all individual team members.
Service policies and practices specify formally how these responsibilities are to be met by
individuals in order to ensure that the legal responsibilities and obligations of the service are
attained.
These policies also ensure that work tasks completed complement the work tasks of another
member of the team, facilitating the development of ongoing cooperative work relations
between team members.
When working within a team, however, there are many occasions when one team member
completes a task expected of another team member. This teamwork is valuable and
cooperative and is the type of supportive environment that should occur in a community
organisation.
Here is an example of how it is necessary for all work tasks to be completed to complement
the work of others in the team, according to policies and practices of the workplace.
Work task: I write down messages I receive in the late evening for the early staff next
morning.
When my work is completed on time: My team members are kept informed. In the
morning, they can make alternative arrangements (if I alert them to any changes) and
address any pressing issues.
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If my work’s not completed on time: Team members are left in the dark and surprised by
events that may occur early in the morning.
Remember: It is important to report to your supervisor any tasks that are not completed.
When working within a cooperative team environment, it is also necessary to inform other
team members when tasks have not been completed and why.
Case Study
Ariel is feeling overworked. When he arrives at 7.30am to start his shift, he has to complete
tasks not completed by the evening staff. This then means that his duties are not finished by
the time clients start arriving at 8am. He is concerned that he looks disorganised and
stressed when the clients arrive. When he thinks about it, he realises that for the past two
weeks there have been several casual staff working the late shift.
In Ariel’s situation, the late staff were not completing all their tasks. He reported the situation
to the supervisor. The supervisor realised that Ariel’s concern was valid—the problem was
due to the fact that the staff members on the late shift are casual staff. Perhaps the casual
staff weren’t fully aware of the duties expected of them or perhaps the implications in not
completing the expected duties don’t concern them. Their attitude may be that they are only
a casual and who cares about the early morning staff.
There will be times when the completion of our work tasks does not complement those of
others, but as long as you are aware of the implications of this you will be better informed
and prepared for the consequences.
Completing Activities to the Expected Standard
As a worker in a Financial Services organisation you are expected to complete the tasks and
activities to an expected standard. This standard should be maintained even if you have a
large amount of work and competing priorities. We will look at some ways you can make
sure that you continue to work to a high standard in your workplace.
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Team Skills
The Macquarie Dictionary tells us that an effective team has: ‘balanced roles, common
goals, open and honest communication, cooperation and effective management of conflict,
trust and support, individual development, good leadership, empowerment and relationships
with each other.’
However, no team is perfect. There are various strengths that each team may have. It may
be that the team is capable of conducting day to day business very effectively. However, for
a team to be truly effective, it must start with people that have a commitment to their jobs
and care about outcomes. They must want to be creative and to contribute.
Members of work teams need to be more skilled than employees working in traditional jobs.
There are a number of reasons for this, including their need to be competent in handling
tasks which were once the responsibility of more senior personnel.
Developing Team Skills
Working with your team is very important. Often it’s not just what you know, but how well you
work with your fellow professionals
People unused to teamwork may need new skills so that they can function effectively in a
work team. This may include help to develop the confidence to handle problems that once
could have been passed to managers.
Skills required by team members are how to:

communicate

resolve conflict

analyse and solve problems

set objectives

plan

measure results

take initiative

work unsupervised

adapt to change

be committed to continual improvement

relate effectively to other team members
Also, people who have worked for many years under close supervision may have difficulty
accepting responsibility for outcomes. Such people will need help in coping with change and
developing their potential. Allocating adequate time and resources to equip people to make
the proposed changes, and training them to feel confident and perform competently during
and after the changes are vital. Recognising and rewarding people who take up the
challenge of change and promoting people who perform well in the new circumstances are
two useful strategies.
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Teams are created around related tasks and specific areas of responsibility. The team is
given training so that members can become multiskilled, that is competent in a wide range of
work skills. This means that they can take on a larger variety of activities, including the
responsibility for maintaining agreed quality standards.
Working in teams requires:

technical skills to undertake team tasks

interpersonal skills to communicate with people

team skills to work as an effective team member.
In this part of the topic we will be looking at how we can enhance the interpersonal and
teamwork skills of team members.
Communication and Relationships
Successful team operation needs open, honest and productive relationships and these are
dependent on effective communication. The more complex an organisation, the more
important communication becomes. Even when you think you are working alone, you are still
reliant on the input from others and you are also providing information to others.
Conscious effort needs to be given to the learning of essential communication skills.
Because you are giving instructions and holding meetings, you’ll develop effective speaking
skills, such as clarity, simplicity, vividness, preparedness, naturalness and conciseness.
Because you will be listening, you’ll consciously develop listening skills—listening attentively
to others, while at the same time recording your own thoughts and responses to what you’re
hearing. Paraphrase regularly. Group participation is nurtured by the team building on,
adding to, or refining each other’s thoughts and ideas.
You will be working together to find solutions, so you’ll need interpersonal skills such as
negotiation and conflict management. Because you are building a team, you will need
interaction communication rules. These include:

frank expression of feelings

restating ideas and feelings when emotions run high—this involves
summarising, perception-checking and clarifying for meaning

self-disclosure of relevant past experiences

giving reciprocal support

listening with empathy and without judging

taking on responsibility

inviting individuals to self-examine behaviour

making the past relevant to the present

illustrating points with examples.
To sum up, what is required is empathy, honesty and trust; trust in ourselves, in our team
members and in the process. This isn’t the first time we’ve mentioned trust, and it won’t be
the last. In the next section we will see how trust is the leader’s first step in establishing a
successful team building environment.
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Communication is a two-way process. You might think that you have made the message
clear, but you have not succeeded if the receiver of that message doesn’t understand it, or
doesn’t want to understand it. The bottom line with any communication is your ability to show
empathy to those with whom you are communicating.
Know Your Team Members
In some organisations, employees are given a battery of psychological, intellectual and
personality tests, such as the Meyers Briggs Inventory, to determine their likely participation
in teams and in work situations. Some organisations use them when interviewing job
applicants.
No test can really test your ability to get on with all people at all times. The best teams are
those with a variety of types of people with different skills and different temperaments. You
couldn’t have a football team made up of no-one but front row forwards (although front row
forwards might disagree with this). Usually, whether your team be a work team or
social/community team, you don’t have a large say in the members of the team. Your role as
leader/coach will be to fit these diverse people in a team where you use their unique talents
and personalities.
The characteristics of an effective team are:

Goals and objectives are clearly defined, understood and agreed on by all team
members.

Expectations of the team, and of individual members, are clear and understood.

Team members are actively involved in team activities and gain satisfaction
from team accomplishments

Formal and informal communication networks which facilitate open and effective
communication are established and maintained within the team.

Support of, and trust in, team members is a key goal.

Communication, including two-way feedback, and an approach to conflict which
is focused on the problem rather than the person, are both encouraged.

A team culture exists in which members are encouraged to be creative and take
risks helps establish an effective team.

Individual experience, personality, ideas and education are appreciated and
valued, and seen as a benefit to the whole team.
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Activity 10
Think about your own experience in a team. Answer the following questions.
1.
Briefly describe that team’s goal/s.
_______________________________________________________
_______________________________________________________
_______________________________________________________
_______________________________________________________
2.
What was your role within that team?
_______________________________________________________
_______________________________________________________
3.
How were you expected to behave and what were you expected to do in your role?
_______________________________________________________
_______________________________________________________
_______________________________________________________
_______________________________________________________
_______________________________________________________
4.
How did other team members think you were expected to act in your role?
_______________________________________________________
_______________________________________________________
_______________________________________________________
_______________________________________________________
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5.
What did the organisation that the team belonged to expect of you?
_______________________________________________________
_______________________________________________________
_______________________________________________________
6.
What did you expect of the organisation the team belonged to? That is, how did you
expect the organisation to help your team reach its goals?
_______________________________________________________
_______________________________________________________
_______________________________________________________
_______________________________________________________
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Part 6: Identify Sustainability Issues for the
Financial Services Industry
Sustainability in the workplace includes aspects of quality principles, change management,
process analysis, teamwork effective communications, continuous improvement principles,
mistake proofing and occupational health and safety (OHS), delivery can be integrated with
other units of competency dealing with these matters.
•
•
•
•
•
•
•
•
•
•
Increases the competitive edge offered by sustainable business
Sustainable solutions are often innovative solutions
Shareholders’ recognition and increasing support of sustainability
Green options potentially provide economic advantages
Environmental regulations can be turned into business advantages
Supports maintaining and even increasing profit through a triple bottom line approach
Potentially reduces business costs through sustainable workplace practices
Potentially increases business efficiency
Creates an awareness of cost beneficial sustainable technologies and practices
Reduces environmental impacts
If you're about to launch a new green business or are considering steering an existing
business to more environmentally friendly practices (or perhaps encouraging your employer
to do so); you may have heard the term "triple bottom line". The phrase was first used in
1989 by John Elkington, co-founder of a consultancy focused on sustainability.
So what does it mean?
Sometimes referred to as "TBL", or "3BL. Triple bottom line simply stands for
 People - This is also known as Human Capital
 Planet - This is Natural Capital
 Profit - making a honest profit than raking a profit at any cost
Triple Bottom Line reporting is becoming an accepted way for businesses to demonstrate
they have strategies for sustainable growth. The triple bottom line is a form of reporting that
takes into account the impact your business has in terms of social and environmental values
along with financial returns.
The Importance of Triple Bottom Line
This is why Triple Bottom Line concepts are so important - it's not just about commerce, it's
about civilization. It’s an ongoing process that just helps a company keep on track towards
running a greener business and demonstrates to the community at large they are working
not just towards riches, but the greater common good - and that's what consumers are
increasingly wanting to see these days.
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Green business is simply good business and hopefully before too long it will be the only way
to engage in commerce.
Determining Best Practice
How do you know what ‘best practice’ sustainability is as it applies to your workplace?
You can find out by:
• having some background knowledge of sustainability principles (e.g., you know that using
less fuel in a car is better for the environment as there are less greenhouse gas emissions)
• undertaking research via the Internet, journals or books
• asking organisations or government departments for information (for example, the
Australian Greenhouse Office (http://www.greenhouse.gov.au ) or
• Reviewing case studies of other organisations to see what they have done. Always
remember when you are undertaking research that what might be considered a sustainable
option elsewhere may not be so in Australia.
Best practice can often be defined by looking at your own policies and procedures. If your
company has an environmental policy or accredited environmental management system,
these documents will provide information on your company’s ‘best practice’ in its aims and
objectives.
Don’t forget that being sustainable is about supporting the future of our environment,
community and economy – so try applying everything you’ve learned at home too.
You’ll be amazed at just how easy it is…
and you’ll save money too
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Activity 11
How you could make your working environment more sustainable? (Give 3 ways).
1. ___________________________________________________________________
___________________________________________________________________
2. ___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
3. ___________________________________________________________________
___________________________________________________________________
How you could make your personal (home) environment more sustainable? (Give 3 ways).
1. ___________________________________________________________________
___________________________________________________________________
2. ___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
3. ___________________________________________________________________
___________________________________________________________________
Do any of your actions overlap between work & personal environment? Why is this so?
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
___________________________________________________________________
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Activity 12
Can you identify 5 recyclable materials in your immediate environment right now?
List them below:
1.___________________________________________________
2.___________________________________________________
3.___________________________________________________
4.___________________________________________________
5.___________________________________________________
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