Module IV፡ Work Effectively in the Financial Services Sector

UNIT 1: WORK WITHIN FINANCIAL SERVICES SECTOR

Learning outcomes: By the end of this unit, you will be able to
 Describe the nature and meaning of financial service sector.
 Apply organization procedures, guidelines, and policies in financial services sector.
 Identify organization’s philosophy, values and objectives
 Apply organizational code of ethics in financial service sector.
1.1 Financial Service Sector
 It is a broad range of economic activities that are related to the creation,
management, and provision of financial products and services to individuals,
businesses, and governments.
 It encompasses a wide range of industries and sub-sectors, including banking,
insurance, investment and securities, asset management, payment systems,
mortgage lending, security trading and more.
Organization procedures, guidelines, and policies
Policies
• It is a high-level statement that outlines an organization's goals, objectives, and direction.
• It is a formal document that sets out the organization's stance, direction, or strategy on a
particular matter.
•it approved by senior management and is often referred to as "policy statements."
Examples of policies include:
 Anti-money laundering (AML) policy
 Data privacy policy
 Investment policy
 Whistleblower policy
Guidelines
• It is a more detailed document that provides guidance on how to implement a policy.
• Guidelines are often used to clarify the procedures or practices required to achieve the
goals outlined in a policy.
• Guidelines may be developed by various teams or departments within an organization,
and they should be consistent with the organization's policies.
Examples of guidelines include:
 Anti-money laundering (AML) guidelines for customer due diligence
 Guidelines for handling customer complaints
 Guidelines for conducting market research
Procedures
 It is a specific set of steps or actions taken to accomplish a task or achieve a goal.
 It are often detailed and prescriptive, outlining exactly what needs to be done, by
whom, and when.
 It should be consistent with policies and guidelines, and they may be updated or
revised as needed.
Examples of procedures include:
 Procedure for processing customer transactions
 Procedure for reporting suspicious activities
 Procedure for conducting regular audits
Importance of the financial services sector
A) Value exchange: a way of making payments.
B) Intermediation: a way of transferring resources between savers and borrowers.
C) Risk transfer: a means for pricing and allocating certain risks.
D) Liquidity: a means of converting assets into cash without undue loss of value.
1.2 Organization, Organization philosophy, mission, vision and values
What is organization?
 It is an entity—such as a company, an institution, or an association—comprising
one or more people and having a particular purpose.
 There are a variety of legal types of organizations, including corporations,
governments, nongovernmental organizations, political organizations, international
organizations, armed forces, charities, not-for-profit corporations, partnerships,
cooperatives, and educational institutions, etc.
What is organization philosophy?
 It refers to the underlying beliefs, values, and principles that guide an organization's
behavior and decision-making processes.
  It defines the organization's purpose, vision, mission, and values, which shape its
culture and identity.
Examples – common types of company philosophies.
Customer-centric philosophy:
 Focuses on putting the customer's needs and satisfaction at the forefront of all
business decisions.
 Example: "We put the customer at the center of everything we do."
Innovation philosophy:
 Emphasizes creativity, experimentation, and innovation to drive growth and stay
ahead of the competition.
 Example: "We encourage experimentation and learning to drive innovation."
Quality philosophy:
 Prioritizes quality and excellence in all aspects of the business, from products to
services.
 Example: "We strive for perfection in everything we do."
Employee-centric philosophy:
 Prioritizes employee well-being, development, and engagement to drive business
success.
 Example: "We invest in our people because they are our greatest asset."
Results (profit)-driven philosophy:
 Focuses on achieving measurable results and outcomes, often with a focus on profit
margins and revenue growth
 Example: "We're driven by a passion for results and a commitment to delivering
value to our stakeholders."
Mission Statement
 A company’s mission statement describes an organization’s core objective, usually
from a social point of view or with emphasis on corporate social responsibility
(CSR).
 The mission corresponds, so to speak, to the way in which goals should be achieved.
Vision
 “What would we like to achieve together in the future?”
  This is the question the company vision addresses.
 The goal is to formulate a meaningful and motivating vision to positively influence
an employee’s own actions.
Values
 Company values provide concrete action orientation.
 They are primarily directed at the company’s own employees and are often
communicated to applicants for employer branding purposes.
Why do companies need a philosophy?
 A company philosophy can fulfill various purposes and functions, both internally
and externally.
 Integration function
 Orientation function
 Coordination function
 Decision-making function
1.3 Code of Ethics
What Is a Code of Ethics?
 It is a guide of principles designed to help professionals conduct business
honestly and with integrity.
 It outlines the mission & values of the business how professionals are supposed
to approach problems, the ethical principles based on the organization's core
values, and the standards to which the professional is held.
 Organizations and individuals across the financial services industry shall
continuously uphold and abide by the following ethical principles that are vital
to the achievement of a high standard of professionalism and ethics across the
industry:
Principle 1: Competence
Individuals across the financial services industry shall develop and
maintain the relevant knowledge, skills and behavior to ensure that their
activities are conducted professionally and proficiently.
 This includes acting with diligence, as well as obtaining, and regularly
updating, the appropriate qualifications, training, expertise and practical
experience.
Principle 2: Integrity
Organizations and individuals across the financial services industry shall
be honest and open in all their dealings.
This includes behaving in an accountable and trustworthy manner, and
avoiding any acts that might damage the reputation of, or bring discredit
to the industry at any time.
Principle 3: Fairness
Organizations and individuals across the financial services industry shall
act responsibly and embrace a culture of fairness and transparency.
This includes treating those with whom they have professional
relationships with respect and ensuring that they consider the impact of
their decisions and actions towards all stakeholders.
Principle 4: Confidentiality
Organizations and individuals across the financial services industry shall
protect the confidentiality and sensitivity of information provided to
them.
This includes using it for its intended purposes only and not divulging
information to any unauthorized persons, including third parties, without
the necessary consent from those involved unless disclosure is required by
law or regulation.
Principle 5: Objectivity
Organizations and individuals across the financial services industry shall
not allow any conflict of interest, bias or undue influence of others to
override their business and professional judgment.
They shall declare, to those concerned, all matters that could impair their
objectivity.
UNIT 2: WORKPLACE COMMUNICATION
Learning outcomes: By the end of this unit, you will be able to
 Define communication and workplace communication.
 Explain importance of communication in the workplace.
 Identify component of communication.
 Identify various principles of communication.
 Identify types of workplace communication.
 Develop listening and speaking skill
2.1 Introduction to Communication
 It the exchange of information and ideas between two or more people.
 It defined as interchange of thought or information between two or more persons to
bring about mutual understanding and desired action.
 It is the information exchange by words or symbols. It is the exchange of facts, ideas
and viewpoints which bring about commonness of interest, purpose and efforts.
Workplace communication
 It refers to the exchange of information, ideas, feedback, and messages among
employees, managers, and other stakeholders within an organization.
 It, also known as business communication, encompasses the exchange of
information, ideas, messages, and feedback within a business or organizational
context.
 It is essential for the smooth operation of companies and plays a crucial role in
achieving organizational goals, fostering collaboration, and maintaining
relationships with stakeholders.
Purpose and Importance Communication
Importance of communication
• Motivates employees
• Easier to control and coordinate business activity
• Makes successful decision making easier for managers
• Better communication with customers will increase sales
• Improve relationships with suppliers and possibly lead to more reliable delivery
• Improves chances of obtaining finance
 Purpose of communication
1. For instruction
2. For integration
3. For information
4. For evaluation
5. For direction
6. For teaching
7. For influencing
8. For image building
9. For employees orientation
2.1.3 Elements of communication
The process of communication involves the following elements:
1. Sender or transmitter: The person who desires to convey the message is known as
sender. Sender initiates the message and changes the behavior of the receiver.
2. Message: It is a subject matter of any communication. It may involve any fact, idea,
opinion or information. It must exist in the mind of the sender if communication is to take
place.
3. Encoding: The communicator of the information organizes his idea into series of symbols
(words, signs, etc.) which, he feels will communicate to the intended receiver or receivers.
4. Communication channel: The sender has to select the channel for sending the
information. Communication channel is the media through which the message passes. It is
the link that connects the sender and the receiver.
5. Receiver: The person who receives the message is called receiver or receiver is the person
to whom the particular message is sent by the transmitter. The communication process is
incomplete without the existence of receiver of the message. It is a receiver who receives
and tries to understand the message.
6. Decoding: Decoding is the process of interpretation of an encoded message into the
understandable meaning. Decoding helps the receiver to drive meaning from the message.
7. Feedback: Communication is an exchange process. For the exchange to be complete the
information must go back to whom from where it started (or sender), so that he can know
the reaction of the receiver. The reaction or response of the receiver is known as feedback.
8. Noise: Noise in communication refers to any interference, distortion, or disruption that
hinders the effective transmission and reception of a message between a sender and a
receiver.
Steps of communication process
The communication process has five steps: idea formation, message encoding, message
transmission, message decoding, and feedback.
1. Sender has an idea.
2. Sender encodes the idea in a message.
3. Message travels over a channel.
4. Receiver decodes message.
5. Feedback travels to sender.
2.1.4 Principles of Communication
For effective message you need to apply certain communication principles.
Interestingly, seven of them begin with the alphabet C and four with S. They are: 7 Cs -
Completeness, Conciseness, Consideration, Concreteness, Clarity, Courtesy and
Correctness. 4 S’s - Shortness, Simplicity, Strength and Sincerity.
2.1.5 Types of communication
Communication can be broadly classified into two types:
1. Verbal communication and
2. Non-verbal communication.
Each of these types can be further sub-divided into different types.
verbal communication is of three types.
• Oral communication
• Written communication
• Visual and Audio visual communication
2.1.6 Effective Business communication
Business communication involves the exchange of messages in a commercial environment.
Reasons for exchanging messages include:
• To promote a product, service, or the organization itself;
• To inform and share information within a business;
• To request a decision; and
• To persuade the recipient of something.
2.1.7 Barriers of Communication
 Physical Barriers
 Psychological Barriers
 Language Barriers
 Cultural Barriers
 Organizational Barriers
 Emotional Barriers
 Technological Barriers
UNIT 3: WORK IN A TEAM ENVIRONMENT
Learning outcomes: By the end of this unit, you will be able to
➢ Define team and team work.
➢ Explain importance of team
➢ Identify stages of team development
➢ Explain activities carried out by teams;
➢ Elucidate the barriers to effective teamwork; and
➢ Analyze the ways of enhancing teamwork.