Bcompt Business Communication 1

Facilitator: Ms Lerato Lechoano

E m a i l : l e r a t o l @ r e g e n e s ys . n e t

April 2024
Learning outcomes

• Explain various concepts associated with business communication in an accounting

environment
• Answer questions in writing and in an acceptable format
• Understand conflict in the workplace and its causes
• Assess the communication process
• Distinguish between interpersonal communication, small group communication and
communication in organisations
• Determine when written and oral communication are appropriate
• Understand the impact of weak forms of communication (eg non-verbal)
• Demonstrate sound knowledge of business proposals and plans.

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2. VALUABLE
COMMUNICATION SKILLS
FOR ACCOUNTANTS
As an accountant is required to think in
a logical, critical way, to be persuasive,
understand the legal and ethical
implications of whatever you say to
your audience. Build your character, as
a chief value officer, and constructing a
sensible research report.
Cont ext i n com m uni cat i on

• Successful communication occurs when both the sender and receiver understand the
message that is transmitted. However, especially in an academic and business
environment, it is important that one is careful about what “successful” means.
Consider that you are in an intellectual debate with your facilitator and instead of just
repeating that he or she does not make sense, you actually build a logical argument
based on the materials they have referred you to and some extra readings you have
done yourself.
• Then consider yourself agreeing with everything your facilitator says in a lecture, but
without any thought or logical argument to discuss why you agree. Of these two
scenarios, which would you say is a successful transaction?
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BARRI ERS TO EFFECTI VE CO M M UNI CATI O N

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BARRIERS TO EFFECTI VE COMMUNICATION

▪ Filtering – or lack of filtering

▪ Selective perception – Mental models, ideas, beliefs
▪ Emotions – Anger, excitement, sadness
▪ Language – Complicated speaking, unfamiliar with the language
▪ Listening – Develop effective skills to actually listen
▪ Inconsistency between verbal and non-verbal communication
▪ Prior trust/mistrust –Trust is earned based on reputation
▪ Presentation – Clarity in manner and format, especially written
▪ Inaccuracy, bias, stereotypes and ways of giving offence - Written

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 Barriers to c om munication
• Linguistic barriers (People speaking different languages and different dialects)
• Emotional barriers (Someone with a low emotional intelligence could allow
strong emotional reactions to interfere with communication)
• Cultural barriers (Different cultures have different norms about politeness
and etiquette)
• Organisational structure barriers (Some organisations are not particularly
transparent or honest with employees and this can create a climate not
conducive to communication)
• Attitude barriers (Some people are introverted and prefer to be left alone)
• Perception barriers (we all interpret the world according to our unique filters)
• Technological barriers (It is meant to improve communication, but it also creates
limits, eg attention spans of listeners is perhaps becoming shorter).
B a s i c M o d el o f C o m m uni ca t i o ns P r o ce ss, T h i l l & B o v e e , 2013

Excellence in business communication Thill & Bovee Published by hazem elgammal, 2021
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T h e Effec t of C o n tex t o n C o m m un i c a t i o

Interpersonal and intrapersonal communication

• 1. The ability to present, discuss and effectively defend the points of view; and

• 2. The ability to listen effectively, locate, obtain, organise and use information from
different sources.

Fielding and du Plooy Cilliers indicate that:

• Intrapersonal communication is “more commonly known as self-talk” (2014). Intrapersonal
skills refer to the manner in which we communicate with ourselves (ibid) and also forms
our self-image.
• Our sense of self also informs how we address others, whether in an academic, professional
or personal space. “Our self-image can determine our willingness or unwillingness to
interact with others” (ibid).

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Accounting & Communication

The American Accounting Association lists “five core communication skills for accountants”:
• Writing
• Oral presentations
• Reading and critiquing written work
• Listening
• Understanding personal dynamics.

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Fielding and du Plooy-Cilliers refer to this as the “halo and horn
effect” and define it as:
• The halo effect occurs when we believe that, because a person
possesses some positive characteristics that we like, he or she
also possesses other positive characteristics which he or she
may not possess.
• The horn effect occurs when you refuse to acknowledge that
someone you dislike could possess some positive
characteristics.
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 K imber le e L e ona rd & fo ur le v e ls in a bu si
ness e n v iro nme nt .
1. Internal, Upward Communication – This type of business communication is anything that
comes from a subordinate to a manager or an individual up the organisational hierarchy.
2. Internal, Downward Communication – This is any type of communication that comes from a superior
to one or more subordinate. Communication might be in the form of a letter, a memo or a verbal
directive.
3. Internal, Lateral Communication – Lateral communication is the talking, messaging and emailing
among co-workers in the office. This might be cross-department communication or just internal
department dealings.

4. External Communication – External communication is any communication that leaves the office and
deals with customers, prospects, vendors or partners. It could also involve regulatory agencies or city
offices.
(Leonard, 2019)

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Building a Sound Argument

What is an argument?

There are three basic requirements of an academic article, and they are
that it should be based on authentic sources; that the interpretation of the
source material should be faithful; and above all the approach should be
with an open mind, without any predilections whatsoever.

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Building a Sound Argument
• The basic structure of an argument:
• An argument consists of statements and statements are “the kinds of sentences
that can be true or false. When someone is trying to persuade you to believe
something,
• they will express this as a statement”
• However, you should be careful about “persuade”, as this can have negative
• implications.
Logical and critical thinking

Logic, in philosophy, is the study of how arguments work. As we have pointed

out, an argument can only be true if the conclusion supports the premises.
This means that when you write, whether an academic essay or a financial
report, you have to justify your claims. Critical thinking encompasses checking
the facts of your information and formulating a judgment from that.

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L o gic al and critical t h i n k i ng

• Step 1: Knowledge
• Step 2: Comprehension
• Step 3: Application
• Step 4: Analyse
• Step 5: Synthesis
• Step 6: Take action

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Logical and critical thinking
Step 1: Knowledge- step identifies the argument or the problem that needs to be solved.
Questions should be asked to acquire a deep understanding about the problem.
Step 2: Comprehension-to understand the situation and the facts aligned with it. [This step
involves collecting data about the problem.]
Step 3: Application- understanding of different facts and resources required to solve
the problem by building a linkage between the information and resources.
Step 4: Analyse -the situation is analysed in order to identify the situation [strengths and
weakness] and the challenges faced while solving the problem.
Step 5: Synthesis-how to solve the problem and the initial routes to follow to take this
decision into action.
Step 6: Take action- to build an evaluation about the problem that can be put into a plan of
action.
* ReasoningLab, 2016

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King (2018) talks about the three dimensions that any organisation should think about when conducting
business:

• The economy (how is the company making its money?);

• Society (what value is it adding to society?); and
• The environment (what impact does the organisation’s administration have on the
nvironment?).

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The Ishikawa diagram is a
cause-and-effect diagram that
was invented by a Japanese
quality control expert, Dr.
Kaoru Ishikawa. It is a visual
way of addressing the causes
of a problem, instead of just
looking at the symptoms
E xercise: BB coffee

BB Coffee is a new brand on the

market and opened several coffee
shops in Tswane, Durban and
Johannesburg. They asked your advice
to help them ensure that they do not
deliver bad coffee.

Analyse the problem by using the

Ishikawa diagram?
Cri t i cal readi ng

• Read through the text carefully

• Highlight key words or important passages.

• Make comments and notes of insights you get

• Draw conclusions from the contents of the text

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Types of thinking

• Logical Thinking
• Critical Thinking
• Holistic Thinking

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 Holistic thinking

• Holistic thinking is the inquiry of a complex whole.

• In the case of business organizations, holistic thinking takes into

account its purpose, values, function in its environment, process, and
structure.

• Regenesys encourages holistic leadership development by fostering multiple

intelligences at an intellectual, physical, emotional, and spiritual level
 C r i t i c al t h i nki ng
•Identify the problem that needs to be solved.
Step 1: Knowledge Ask questions to acquire a deep understanding
about the problem.

Step 2: •Understand the situation and the facts aligned

Comprehension with it. [This step involves collecting data about
the problem.].

Step 3: Application •Build a linkage between the information and

resources.

•Analyse the situation in order to identify the

Step 4: Analyse situation [strengths and weakness] and the
challenges faced while solving the problem.

•Form a decision about how to solve the problem

Step 5: Synthesis and the initial routes to follow to take this
decision into action.

•Build an evaluation about the problem that can be

Step 6: Take action put into a plan of action.
Levels of Formality
• Unlike formal communication, informal communication is “[c]asual [or
personal] communication… It is unofficial in nature and is based in the…
social relationships that are formed… outside of the normal hierarchy of
business structure”
Fit- for- purpose com munication
Formal communication
Business plans
Customer satisfaction surveys
Annual reports
Employer’s manuals

Informal communication

Teamwork
Training sessions
Any informal activity that falls outside the usual
chain of command
Fit-for-Purpose Communication: Formal vs Informal
The National Institute of Agricultural Extension Management (nd) defines
communication as a “process of transmitting information, thoughts, opinions, messages,
facts, ideas or emotions and understanding from one person, place or thing”. They then
point out that “(o)rganisational behavior seeks to examine the impact of communication
on the behaviour of employees within organisations”.
Note, however, that organisational communication does not happen only internally
(between management and workers), but also externally (between management or
workers and clients).
Fit-for-Purpose Communication: Formal vs Informal
Con sidering the audience
• Step 1: Determine who your audience is.
• Step 2: Consider what is on their minds.
• Step 3: Think about what you need them to know
• Step 4: Think about what you need them to think, feel or do based
on what you tell them.
• Step 5: Decide the best means of communicating this information
• Step 6: Ask yourself how you can best relate to your audience and
motivate them to take action.
• The better you can understand your audience, the better you can tailor your
communications to reach them.

• To understand them, a key step is to perceive clearly who they are, what they are interested
in, what they need, and what motivates them.

• This ability to perceive is important with audience members from distinct groups,
generations, and even cultures.

• (Open Library Pressbook, 2018)

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• The information you present will differ depending on who within the hierarchy is being
addressed.

• The type of information provided to employees must vary from the information you give
directors.

• If you tell workers that the company is not doing well financially and that it is possible that
some people have to be cut, this will demotivate staff and kill productivity.

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Annual reports

• 1. “Assist with decision-making;

• 2. “Inform;
• 3. “Recommend action;
• 4. “Record facts; and
• 5. “Persuade.”
Business C o mmunication E tiquette
E-mail etiquette
• Helpful
• Efficient
• Interested
• Concerned
• Honest
• Friendly
• Professional
Ethical and Legal Issues
Ethics in accounting
• Ethical codes are the fundamental principles that accounting
professionals choose to abide by to enhance their profession,
maintain public trust, and demonstrate honesty and fairness.”
Ethics in communication
Ethics vs M orality
F i v e f u n d a m e n t a l p r i nc i p l e s o f e t h i c s , w h i c h a r e :
(a) Integrity – to be straightforward and honest in all professional and business
relationships.
(b) Objectivity – not to compromise professional or business judgements because
of bias, conflict of interest or undue influence of others.
(c) Professional Competence and Due Care – to:
(i) Attain and maintain professional knowledge and skill at the level required to
ensure that a client or employing organisation receives competent professional
service, based on current technical and professional standards and relevant
legislation; and
(ii) Act diligently and in accordance with applicable technical and professional
standards.
(d) Confidentiality – to respect the confidentiality of information acquired as a
result of professional and business relationships.
(e) Professional Behaviour – to comply with relevant laws and regulations and avoid
any conduct that the professional accountant knows or should know might
discredit the profession.
Ensuring Legal Communication
• Promotional communication
• Contracts
• Employment communication:
• Intellectual property:
• Financial reporting
• Defamation
• Transparency requirements
Ethical Considerations for Business
Communicators
• Plagiarising
• Omitting essential information.
• Selective misquoting:
• Misrepresenting numbers
• Distorting visuals
• Failing to respect privacy or information security needs
T h e Art o f P e rs uasion

Rhetoric

• Rhetoric is “the principles of training communicators – those seeking to persuade or inform” (Sloane and
Perelman, nd).
• In Ancient Greece the art of rhetoric was much discussed.

• Philosophers took a technical approach to debate and took great lengths to discover and make sense
of the hidden mechanisms by which we are persuaded.

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Reason

• What is reason?

• A credible explanation, ground, or motive for an action or belief, as opposed to a

mere excuse which may be based on nothing more than emotion.

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A notion for r e asoning..
Credibility

• A measure of your believability based on how reliable you are and how much trust you
evoke in others.
-(Bovée and Thill, 2018)

• The term “professional credibility” refers to the respect a professional earns by being good at
what they do. “Earning the accolades [trust, credibility and respect] from your colleagues,
friends or partner is not something that happens overnight” (Buckland, nd).

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Exercise: analyse the text

Climate change: IPCC report is 'code red for humanity'

By Matt McGrath

Human activity is changing the climate in unprecedented and sometimes

irreversible ways, a major UN scientific report has said.
The landmark study warns of increasingly extreme heatwaves, droughts and
flooding, and a key temperature limit being broken in just over a decade.
The report "is a code red for humanity", says the UN chief.
But scientists say a catastrophe can be avoided if the world acts fast.
There is hope that deep cuts in emissions of greenhouse gases could stabilise
rising temperatures.
Echoing the scientists' findings, UN Secretary General António Guterres said: "If
we combine forces now, we can avert climate catastrophe. But, as today's
report makes clear, there is no time for delay and no room for excuses. I count
on government leaders and all stakeholders to ensure COP26 is a success.”
The sober assessment of our planet's future has been delivered by the UN's
Intergovernmental Panel on Climate Change (IPCC), a group of scientists
whose findings are endorsed by the world's governments
 E xercise: review cr itically

• For years, Steinhoff did deals with companies that were

secretly linked to Jooste and his cronies

• Steinhoff did many transactions with companies that were supposed to be

independent third parties – but secretly had strong links to Jooste. These deals
made Steinhoff look much more valuable and profitable than it really was.
• Many of deals involved companies buying things from Steinhoff, like
trademarks. The prices of these deals may have been inflated, and on top of
that, Steinhoff gave these companies massive loans to buy its own assets.
• Steinhoff listed undertakings from these companies that it will pay back these
debts as so-called “cash equivalents” on its books, which made it look like a
much bigger company than it really was.
• Its financial statements featured elaborate tricks to show what these cash
equivalents were supposedly worth, the PwC report says.
• These fake loans would also be moved between different Steinhoff units and
other “independent” companies. And often when they were moved around,
they were magically reclassified as something else, which would further
artificially pumped up Steinhoff’s value.
Source: https://www.businessinsider.co.za/new-steinhoff-report-2019-3