part four. credit skills & management pty limited all rights reserved. use of this material is based...

PART FOUR

Credit skills & Management Pty Limited All rights reserved. Use of this material is based on the agreement of the following: No part of this material may be reproduced or transmitted in any form or by any method - manual or electronic including photocopying, recording, saving or any information retrieval or reproduction system whether for CSM learners or other without the express permission in writing from one of the Directors of Credit Skills & Management Pty Limited. Copyright(c) 2011

WELCOME BACK! Credit Two & Three were challenging.......BUT YOU MADE IT! Credit Four will be interesting but you cant afford to miss any lectures!

FEBRUARY MARCH APRIL MAY COMPULSORY CLASS ASSESSMENTS: PLAN YOUR STUDIES ACCORDINGLY! NATIONAL EXAMINATION 2 nd June 2012 INCLUDES AN ICM ASSIGNMENT

Refer Intro Pack for full ICM syllabus OVERVIEW OF SYLLABUS: Human Resource management Introduction to Statistics Business Legal Environment Overview of Economics

CONSISTS OF: 3 hour Examination PLUS Home assignment SET BY ICM EXAM = 80% Assignment = 20% BUT -MUST SCORE minimum of 50% in exam PLUS have an overall mark over 50% in order to PASS!

Blue Book of South Africa Internet Employment and the Law Business Management

EMPLOYMENT and the LAW

Explain, discuss, draft and/or evaluate: Contribution of human resource management to the business Theories of employee motivation Objectives and elements of KPAs, job descriptions, performance measurements Mentoring/counselling, training and discipline Legal compliance in employment Managing by objective Cash flow projections and targets

Permanent staff Part Time staff .. Contract worker Short term contract renewed maybe once NOT NECESSARILY AN EMPLOYEE Short term renewed frequently = EMPLOYEE Long Terms Contract = EMPLOYEE

EARNING MORE THAN R140736? - can then apply to the CCMA for them to determine whether or not you are considered an employee and therefore whether employee rights apply to you. IF you earn more than this then Sections 9 18 of the Act do not apply to you

Section 9 relates to STANDARD HOURS OF WORK Section 10 - relates to OVERTIME PAY Section 11 relates to COMPRESSED WOEKING WEEKS Section 12 relates to AVERAGE HOURS OF WEEK Section 13 relates to the DETERMINATION of HOURS OF WORK Section 14 Relates to MEAL INTERVALS Section 15 Relates to DAILY AND WEEKLY REST PERIODS Section 16 relates to PAY FOR WORK ON SUNDAY Section 17 relates to NIGHT WORK Section 18 relates to PUBLIC HOLIDAYS

What do you think the common law duties of an EMPLOYER and an EMPLOYEE are?

Appoint an employee into service Pay the agreed wage Ensure safe working conditions Conform to the Labour Relations Act

Have a duty to work Work in the manner required by the employer (reasonable and lawful) Respect the employers authority Work with diligence and in good faith (looking after the interests of the employer) Not compete with the employer or reveal trade secrets

Have a general duty to provide work for an employee?

PURPOSE / OBJECTIVE CONTENT EMPLOYMENT CONTRACTS BCEA

THE BCEA Regulates Acceptable minimum standards and rules of employment Employer can offer better terms and conditions than the Act stipulates but not worse ones by agreement) OR A collective agreement entered into with unions or bargaining councils can result in standards and rules being different to the BCEA The Minister can change the BCEA from time to time

The Act dictates amongst other things - that: Every employee must have a written employment contract in place Standard working conditions (hours)

This is: A legally enforceable contract between 2 parties wherein one party places his services at the disposal of, and under the control of, another party for an indefinite or determined period in exchange for a fixed or ascertainable wage.

A time agreement must exist It must be permissible by law The parties must have legal capacity There must be intention by both parties The employer must have the power to control and the employee must place his/her services at the employers disposal (possible to perform) There must be agreement between both parties Both parties must enter into the agreement of their own free will

Full name and address of the employer Name and address of the employee Title of the position Brief description of the work Place of work Date work to commence Normal hours of work Rate of pay for normal time Rate of pay for overtime Any other cash payments the employee will get Frequency of payment Deductions to be made from pay Leave entitled to Termination rules and periods Details of any councils that govern the employer List of any other company documentation relevant with details of where copies can be found

DRAFT A STANDARD EMPLOYMENT CONTRACT FOR: Susan Malophi who has recently been employed as a call centre debt collection agent for an international debt Collection Agency called BINDINI COLLECTIONS PTY Limited HAND IT IN TO YOUR LECTURER FOR MARKING

Must be in writing and signed Any subsequent changes must be in writing Employer must retain a copy of employment contracts for a period of 3 YEARS after termination of the employment agreement!

Hours of work Overtime hours Leave pay Sick pay Maternity pay Family responsibility leave

Not more than 45 hours per week Not more than 9 hours per day in a standard 5 day (or less) working week Not more than 8 hours per day in a week which is longer than 5 days By Agreement between the parties: These hours can be extended by 15 minutes per day (but not more than 60 minutes per week) where the employers business deals with the public after normal working hours)

Senior managerial staff Sales staff who travel to customers and regulate their own hours Employees who work less than 24 hours per month for the employer

Over time must have been agreed between the parties No more than 10 hours overtime a week (except where there is a collective agreement in place) Where there is a collective agreement no more than 15 hours overtime a week is allowed

Agreement with a group of people like a trade union Example: A Trade Union may agree with an employer that their members will work a maximum of 13 hours overtime per week

Overtime agreement must be entered into on commencement of employment or within 3 months of starting Rates are time and a half on Saturdays double time on Sundays and public holidays

In terms of the Act some employees may not be entitled to payment for overtime.

The BCEA states: Full time employees are entitled to a MINIMUM 21 consecutive days paid leave (ie 15 working days) after every 12 months of continuous employment OR By agreement 1 day for every 17 days worked OR By agreement 1 hour for every 17 hours worked

Annual leave must be granted not later than 6 months after end of leave cycle Employer must not allow annual leave to be taken during notice of termination of employment During any other leave (such as sick leave)

Sick Leave cycle is 36 months Employee entitled to paid sick leave every cycle - equal to number of days he would normally work in a 6 week period Example: 5 days a week worker: 30 WORKING days every cycle (36 months / 3 years)

Restriction of sick leave: During the first 6 months of employment only allowed 1 day for every 26 days worked

Sick for 2 or more consecutive days employer entitled to ask for a medical certificate OR Sick for 2 or more consecutive days on 2 or more occasions in a 8 week period employer can request a medical certificate

This refers to paid leave to deal with family issues related to: Death Birth Illness Direct family members: Child / Spouse/ parent / sibling/ grand parent / adoptive child / grandchild

PRIOR TO THE BIRTH 4 weeks (1 month) unless otherwise agreed or doctor note AFTER THE BIRTH 3 months TOTAL 4 months

NO legal requirement for the employer to pay the employee whilst on maternity leave Employee can claim benefits from UIF (Unemployment Insurance Fund) if they contribute to the fund monthly.

If in 3 rd trimester of pregnancy or if still born: Entitled to 6 weeks leave after the sad event

Annual Leave can be carried to the next period.................................................. Sick Leave Family responsibility leave Maternity leave FALLS AWAY and a NEW CYCLE BEGINS

The employee must agree in writing OR The employer must have been served a court order OR Deduction is as per a collective agreement or arbitration decision

The Company OVERPAYS you.... And wants to deduct it off your salary?

Termination of the employment contract must be: in writing In accordance with the termination conditions in the contract unless otherwise agreed by both parties

Within the first 6 weeks of employment1 week notice period After 6 weeks employment period but less than 12 months 2 weeks notice period After 1 years employment period4 weeks notice period

The employee is entitled to receive this stating: Employers full name and address Employees full name Description of any relevant council or sector Start date Termination date Salary at termination Job title Reason for termination (optional employee can decide if they want this shown or not)

This current labour law came about after consultation between: Organised labour (trade unions) Government Employers

The ensure that social justice, peaceful employment, work place democracy are adhered to resulting in economic growth

EMPLOYEES (Represented by TRADE UNIONS) EMPLOYERS (Represented by MANAGEMENT) THE STATE (Government)

Members of: SA Defence Force National Intelligence Agency SA Secret Service

Grievance Procedures Disciplinary Procedures Freedom of Association Organisational Rights Bargaining Councils Statutory Councils CCMA Labour Courts Strikes and Lockouts Collective Agreements Agency Shop Agreements Closed Shop Agreements Workplace Forums We need to study each of these in depth together LETS REFER TO YOUR NOTES... Pages 19 46 plus assignment to be done on page 22

PURPOSE OF THE ACT : Eliminate unfair discrimination (direct/indirect) against any employee AND Apply affirmative action measures to ensure the correct / fair balance of employment from within designated groups

Prepare and implement an Employment Equity plan which shows how they intend to bring about change to the demographics of their work force over the next few years (1 5 years) in order to have the correct balance of designated employees

Employers that: Employee 50 or more people OR Employee less than 50 people but have a turnover that exceeds a certain amount as laid out in Section 4 of the Act (varies industry to industry refer to page 47 of your notes for levels)

Black Indian Coloured Chinese Woman People with disabilities

This plan must state: Objective to be achieved each year Affirmative action measures intended to be taken Numerical goal in order to achieve the correct balance Time table for the plan for each year Period of the plan (not more than 5 years) Procedures that are going to be used to monitor progress of the plan Internal dispute resolution methods in terms of disputes within the planning committee Name of person responsible for the plan

The employers must submit a progress report to the Department of Labour Annually on the 01 st October for companies having more than 150 employees Every 2 years on the 01 st October for companies with employees of less than 150

OVERALL PURPOSE To encourage business to become involved in the skills development and training of employees and to contribute to the training and development of unemployed individuals through a skills levy / tax / rebate scheme CONTENT Companies must pay a monthly skills levy / tax to the Government based on 1% of their employees salary and wages total (not deductable from employees) Companies that train staff can claim back part of this levy Government gives training grants to various companies from the levies they have received

Develop the skills of SA workforce Increase levels of investment in education and training by companies Use the workplace as an active learning environment To provide employment / work experience To ensure the quality of training in the workplace To provide opportunities for the jobless to find work To provide and regulate employment services

YES in part more people are getting trained NO in part as it has not resulted in a vastly improved / increase in - skills based, employable work force

Discuss page 49 Exemptions to the Act?

Who do you think is exempt from paying this Skills Development Levy? Any company whose annual salaries and wages are less than R250 000 Any company declared exempt by the Commissioner of SARS

PURPOSE OF THE ACT To provide a mechanism of short term financial relief for people who were are ready and able to work but who are unable to get work / work for whatever reason To provide a mechanism for short term financial relief for people who may be temporarily unable to work for a specific reason (example pregnancy)

Employees contribute 1% of their gross income (up to a maximum amount of R12478) per month Employers meet this contribution (ie the employer also contributes 1% This 2% is paid over to the Dept of Labour via SARS every month

Must advise the Dept of labour of the names, addresses,ID and salary levels of all employees Pay over the unemployment levy (the 2%) within 7 days of each month end

Jane Smith earns R 10 000 per month UIF deduction will be R100 Peter Malopi earns R15 000 per month UIF deduction will be R124.78 Maximum salary for UIF deduction is R12478.00 TOTAL DEDUCTIONS = R 224.78 COMPANY MUST PAY OVER R224.78 X 2 = R 449.56

Unemployment benefits Illness benefits Maternity or adoption benefits Dependents benefits

Unemployment period of 14 days or more Unemployed because of: Termination of contract Dismissal Insolvency of employer Must be capable and available for work Must register at the UIF offices

Contributing 4 years or more? Will be calculated based on a sliding scale of between 38% 58% of your last monthly salary (if salary under R12 478) OR between 38% - 58% of R12 478 if your salary is greater than that amount Contributing less than 4 years? Calculation will be based on 1 day for every 6 days worked whilst contributing

Can be claimed if the period of illness is: 14 days or more AND -The employee cannot perform specifically because of this illness -AND -The employee meets any prescribed requirements in terms of the illness

Up to 17 weeks worth of benefits can be claimed for maternity Up to 6 weeks if a miscarriage occurs One parent can claim benefits if leave work to look after an adopted child under the age of 2

Payable to a surviving spouse, life partner or dependent child Claim must be submitted within 6 months of a contributors death

Cannot claim if: Receiving a pension from the state Receiving payment from a compensation Fund for injuries that caused the unemployment Receiving payment from any other fund under the LRA The employee RESIGNED The employee fails to conform to requirements The employee is working again

Calculate how much would be paid over to the UIF each month based on the following: J Smith earns R17500 per month S Clote earns R12000 per month F Jones earns R5600 per month A Liven earns R10000 per month (see example on page54)

DEDUCTIONS from each employee would be: J Smith earns R17500 per month Deduction based on R12478 = R124.78 S Clote earns R12000 per month Deduction = R120.00 F Jones earns R5600 per month Deduction = R56.00 A Liven earns R10000 per month Deduction = R100.00 TOTAL DEDUCTION = R400.78

Deductions would be R 400.78 Company contribution would be R400.78 TOTAL Amount to pay over: R 801.56

Write a memo to your staff members identifying the following in terms of the unemployment Insurance Act: Key purpose Responsibilities of the Employer Rights of the Employees Who should contribute When can a claim be submitted Who should it be submitted to Who is exempt from this Act

Management responsibilities: Plan Lead Organise Control

Type of work to be done Available financial resources Company policies Companies strategy Available level of skills Economic growth of the business

Conduct a job analysis Transform this into a job description Set goals Motivate employees Measure performance Train Coach /Counsel Discipline / Motivate

JOB ANALYSIS Conducted by internal personnel OR Through an external consultant Need to COLLECT INFORMATION ANALYSE AND GROUP THE INFORMATION DESIGN A JOB ANALYSIS REPORT FROM WHICH A JOB DESCRIPTION CAN BE DONE

WHAT PURPOSE does a job description fulfil? Can be used for recruiting of new people Sets guidelines for a new employee Can be used to train, coach or counsel an employee Can be used to assist in the evaluation of an employees performance Can be used to determine salary levels

Title of the job (ie credit controller) Reporting structure (centralised / decentralised & chain of command) revise credit 2 for organisational structures Overall objective of the job EXAMPLES (primary objective of a credit control position (divisional) = maximise profitable sales whilst minimising bad debts and slow payments) (primary objective of a call centre debt collector = collect as much money as soon as possible and rehabilitate the debtor) (primary objective of a third party debt collection agent is to collect as much as soon as possible in the most cost effective manner possible)

Main duties Examples: (provide details under each heading) New Account Assessments Reconciling of payments to remittance advices Allocation and capturing of debtor payments Account reconcilliation Current and arrear debt collection Job specifications Skills Knowledge Ability

SKILLS required Competency based activities Analyse credit information to form a decision Capture within a set time period Conduct a telephone collection call

KNOWLEDGE required Subject matter knowledge on: Securing an account Rules of the National Credit Act / Consumer Protection Act (which ever is relevant to the industry) Credit principles QUALIFICATIONS required

ABILITY Task related: Ability to work on a specific computer program Excel SAP Ability to calculate: DSO calculations Trade discount percentages

A job description is drawn up based on the JOB to be done.... And NOT on the ability / skills etc of the person already in the position

SKILLS required Competency based activities Analyse credit information to form a decision Capture within a set time period Conduct a telephone collection call

KNOWLEDGE required Subject matter knowledge on: Securing an account Rules of the National Credit Act / Consumer Protection Act (which ever is relevant to the industry) Credit principles QUALIFICATIONS required

ABILITY Task related: Ability to work on a specific computer program Excel SAP Ability to calculate: DSO calculations Trade discount percentages

What motivates YOU to work well?

An persons internal desire to satisfy an unsatisfied need Therefore each persons internal desire may differ from the next persons making it very difficult for managers to motivate each person on their team

There are a number of theories that have been documented about the motivation of staff members: Authors of FORMAL Motivation Theories include: Maslow Hertzberg McClelland Alderfer HIERACHY of NEEDS

A basis that human needs need to be met in order for employees to be motivated......... And they all debate the order of importance of these needs and they group them differently to each other Human Needs include: Fair return for efforts (money) Safe and comfortable work environment Social acceptance Recognition of efforts Recognition of skills and ability levels What else would you identify as a human need in the work environment?

Employees have needs These needs have to be met in order to have motivated staff members These theories differ in: how these needs are grouped / identified the order of that these needs have to be met

Go through the theories briefly. You aree required to investigate them further make your own notes and then do the assignment on page 60

Self actualisation needsEsteem needsSocial needsSecurity(safety) needsPhysiological needs Starts here

Growth needsRelatedness needsExistence needs Starts here

Motivational (growth factors) Maintenance (not motivational but essential) BOTH MUST EXIST

Need for affiliationNeed for power Need for achievement

Examine the 4 different theories provided in your text book Compare each theory and provide a report that: Explains each one in your own words Identify the theory that YOU personally believe would best suit YOUR motivational needs in the workplace and justify your answer

Motivation is greatly based on many of the aspects of these theories PLUS support from management in the following instances: Clearly defined structures / expectations Environment Reward and recognition Communication / feedback Counselling / Coaching and training

Job descriptions / KPAs and goals (DSO)

These can ONLY be done if clear goals / expectations / targets were originally set and communicated to the employee Must be done regularly (same month/s each year) Be done when it is due (no delays) Employees must be treated with respect

Purpose Advantages Disadvantages Common types of appraisals Preparation for implementing appraisals

Can increase loyalty in staff member Eliminates discrimination Assists in making promotional decisions Assists in salary levels Encourages communication Identifies correction needs (coaching / counselling / training/ discipline) Opportunity to communicate company vision and strategies Opportunity to communicate employees role in the strategy Protects company from needless litigation

None... If done correctly and fairly! BUT if NOT done correctly and fairly: Could result in expensive legal consequences for the Company De-motivation of employee

Self appraisals Check the box appraisals Competency based appraisals Comprehensive performance review Peer to Peer /360 degree appraisals Continuous feedback Using Management by Objectives

Self appraisals Company provides a pre drafted form that the employee fills in - based on the employees own performance The manager is given the same form to fill in based on his opinion of the employees performance The employee and manager then meet to compare and discuss and come to an agreement on the quality and level of The employees activities

Check the box appraisals The company produces a pre printed document that has a list of activities to be measured and the manager then rates the employees performance using a sliding scale of numbers EXAMPLE 1 = Below acceptable standards 2 = Acceptable standard achieved 3 = Above expected standard )

The manager may not be fair The manager may impose his own prejudices Could de motivate employee

Competency Based Appraisal Best used in jobs that have outcomes that are easily identified and measured Examples from the credit departments: captures new application details accurately Captures payments correctly and on time Follows credit policy authority levels Files documents accurately

Comprehensive Performance review Define expectations Define additional areas to be evaluated

Class Discussion DIVIDE INTO GROUPS Discuss your opinions with your group on the Advantages and Disadvantages of this type of appraisal Present your thoughts to the class for discussion and the class must come up then with am overview of the advantages and disadvantages

Advantages: Clearly states what the employee is going to measured against (no surprises) Varied duties better chance of higher score than if just being measure on one thing Disadvantages Score achieved depends on the managers opinion in some instances Any problems with co-workers whether employees fault or not will result in a lower score

Peer to Peer The employees colleagues in the same department actually do the appraisal on the employee based on their opinion on the employees: teamwork Work quality Communication skills Work ethics Strengths and area of development

360 degree appraisal Very similar to peer to peer appraisal except that other departments are also involved Examples: - sales department -claims department - payment allocation data capturers

What is the main problem that you can identify in using either or these 2 appraisal methods?

Continuous feedback Very informal Coaching and counselling sessions held to discuss short term performance levels

Appraising (Managing) by Objective Set a goal to be achieved by the employee Make sure the goal is SMART Specific Measureable Achievable Realistic Time frame After the set period identify to the employee what has been achieved Compare this to the goal set Analyse any differences between results and expectations Discuss causes for this difference Report on it Correct the problem through counselling / coaching / discipline or training / education

A company can decide which type they wish to make use of or they may combine a number of them IMPORTANT that generally all employees are measured using the SAME type of appraisal That preparations are complete before appraisal system implemented

Ensuring that there is a job description in place and that the employee has a copy Ensuring that any goals or objective that are set are achievable Ensuring that there is open communication between the manager and the employee Ensuring that the Companys expectations are CLEARLY identified for the employee Ensuring that the purpose and expectations of reviews are clearly communiciated to the employee Ensuring conformance to all labour laws / legislation Ensuring that the Company has a clear strategy and mission and that this is communicated to the employee

Some differences between measurements in: Divisional credit structure Usually commercial / trade credit Functional credit structure Retail credit / consumer credit Commercial call centre collection environment

MeasurementNew Accounts DeptCustomer Service (Inbound) Debt Collection PRODUCTIVITY LEVELS Number of applications captured Number of calls answered in a set amount of time Number of calls made within a set period of time WORK QUALITY LEVELS Accuracy of information captured Number of queries resolved and time taken to resolve Taped call audits to determine service levels when collecting WORK EFFECTIVENESS LEVELS Number of Promise to pay (PTP) received Number of PTP met Rand value collected

Days Sales Outstanding Percentage of debtors overdue Total Per age Number of overdue accounts

Accuracy of capturing payments Correctness of allocation of payments (open item specific) Time taken to resolve queries Filing and safe keeping of proof of delivery documents Maintenance of master files Management of credit limits Relationship with sales staff

Are you confident in calculating this from information provided?

If using DSO to measure performance targets could be set with a view to reduce the n=following months DSO by a set number of days: ( no more than 2 3 days reduction per month is generally considered the norm) BUT:- Credit controllers need to have a RAND value target derived from these reduction day requirements

Need to have a target of reducing DSO by 2 days AND need to say how much RAND VALUE must be collected in order to reach this 2 day reduction target! We will now study the process of setting this RAND value target:

PROCESS: Calculate DSO at month end Decide how many days to be reduced in following month Work out which months these days will refer to (remember to include current months days) Work out how much money can still be left OUTSTANDING on the debtors book at the coming month end to make up the DSO anticipated above Deduct this amount from the debtors balance of last month end BALANCE IS COLLECTABLE See examples in your manual pages 73/74

See page 75.

ON THE JOB (Internal) OR OFF THE JOB (External)

FUTURE OPPORTUNITY TRAINING TOP UP TRAININGTASK RELATED TRAININGOPERATIONAL TRAINING

Should be for ALL Employees Covers company policies Employment policy Disciplinary and code of ethics policy Credit policy

Specific to the employees job function (activity / skills) Reconciliation of customer accounts training Capturing and allocation of deposits training Telephone skills training

Relates to the job function but more to the KNOWLEDGE about the function being performed Credit management 1 4 Legal process training

Training that prepares the employee for future positions Supervisory skills training Management training

COUNSELLING Assisting staff member through discussion to identify and solve a problem themselves COACHING Identifying area of non performance and giving solution to the problem MENTORING Acting as an advisor to employees engaged in further or top up training (mentors are experienced people who have already followed the process and have succeeded therin)

Training related assistance CoachingCounselling Development related assistance Mentoring

Identify tasks to be done Plan the resources required Compile job descriptions and objectives Provide the necessary training Provide performance feedback Reward / train / coach / counsel / discipline Encourage further self development Conform to all Labour Legislation!

Use the questions on pages 79-81 to assist you to revise this section and to prepare for the examination Ask your lecturer if you are unsure of any answers

Introduction to Statistics

Understand and extract meaningful credit statistics Analyse these statistics Provide relevant charts and graphs to management

Definition Sources of data Data Collection methods Credit data Analysing Trend Analysis Presentation of the data

Timely (up to date) Accurate Relevant Adequate Available when it is needed (easily available)

Information / Data can be gathered but without analysis it is generally meaningless Information / data must be: Gathered from relevant sources Relate to the objective / outcome that is being considered Summarised Analysed Presented in a meaningful manner

Imagine management is asking about the number of credit notes passed in your company each month and wants to put in a plan to reduce these You provide them with the Information / data gathered that states: 580 credit notes are passed monthly Although this tells management how many are passed it doesnt help them solve the problem on how to REDUCE them. Further ANALYSIS of the REASONS behind these must be obtained. You should gather the information now that will assist you to analyse these.

External Data Sources Primary data sources Secondary data sources Data collection methods

EXAMPLES Rand value of credit notes passed Number of credit notes passed Rand value of bad debts Number of accounts that have gone bad Rand value collected Rand value of overdue accounts Number of overdue account Days sales outstanding

93 COMPARE THE OUTCOMES TO ESTABLISH A TREND OVER THE PAST PERIODS! Will then be able to see if the results have improved or declined over the past periods

Refer example on page 95-96 Used to present a combination of information/ data Often a CHART is used to plot the data before putting into a graph format

Most common chart used is a PIE CHART

Good to use for showing: Reasons for credit notes being passed Ageing of the total age analysis Comparison between applications approved and applications rejected Rand collected per month

Commonly used graphs include: Line graphs Bar graphs Simple bar graph Multiple bar graph Stacking bar graph

SIMPLE MULTIPLE STACKING

Easiest to first put the relevant data into a table Discuss when percentages should be used: REFER PAGE 101

Information is STACKED on top of each other (maximum 100% when using percentages)

Using the NUMBER of credit notes instead of the percentage:- (top of graph is 120 = total credits passed)

More than one column

REFER TO PAGE 104 - 107 MARKED Assignment 3 Complete this assignment Compare your answers to your lecturers responses Were you correct?

Revise all Acts from Credit 3 SPECIFICALLY Insolvency Act Companies Act (We will revisit this) We will examine: SA Constitution National Small Business Act Non Profit Organisations Act Protected Disclosures Act Financial Intelligence Act Value Added Tax act Business names Act Promotion to access Information Act Electronic Communications Act Consumer Affairs Act (Consumer Protection Act) CORPORATE GOVERNANCE

A Constitution is: A written record of fundamental principles or established precedents according to which a state or other organization is acknowledged to be governed.

Heal the divisions of the past Establish a democratic society Protect all citizens equally Improve quality of life for all

Right to: Equality and protection from discrimination Human dignity Life Freedom and security of person Privacy in body, home and relationships Freedom of conscience, religion, belief and opinion Freedom of expression Freedom of assembly, demonstration and picket Freedom of association Political freedom Freedom of movement and residence Freedom of trade, occupation and profession Healthcare, education and housing Access information

CONSTITUTIONAL COURT is the highest court of the land that can over rule all other courts where the protection of human rights is involved

What challenges do you think are faced by small business in South Africa today?

Lack of funding opportunities Economic challenges Lack of adequate infrastructure Lack of guidance and mentors Legislation compliance

Promote small business Set up an agency that assists small business to expand and monitoring in the form of: Training Advice counselling Non financial services

Who registers under this Act? Non Profit ORGANISATIONS such as Fund raisers Optional that Section 21 Companies may also register (as well as under the Companies Act rules) Trusts (although must still register with the Master of High Court) Voluntary Associations

To provide an environment where such associations can flourish To establish the framework under which these associations can conduct their affairs (rules) To provide tax benefits to such associations

(Commonly referred to as the Whistle Blowers Act)

Make provision for: PROCEDURES to be followed by employees wishing to make a disclosure regarding information of unlawful and irregular conduct by employers or other employees PROTECTION for employees who make a disclosure

To establish a Financial Intelligence Centre and a money laundering Advisory Council to minimise money laundering by criminals To impose certain duties / activities on institutions who may be used for money laundering To amend the Prevention of Organised Crime and the Promotion to Access Information Act

Attorneys as defined by the Attorneys Act 53 of 1979 An Estate Agent A Bank Long Term Insurers Foreign Exchange dealers Investment advisors Approved investment managers A Board of Executors or a Trust company (under the Trust Property Control Act)

Establish and verify: the identity of the client The legal residence of the client The authority to act on some ones behalf where relevant Where acting on some one else behalf establish and verify the identity and the residence of that person/ business

Purpose of this Act To regulate how the government will collect VALUE ADDED taxes on the sale of goods or services within South Africa Exemptions: Certain food stuffs Goods that are exported directly from the supplier to the customer

Registration Tax invoices Returns Rate

Compulsory registration Where turn over exceeds R1000 000 per annum Choice registration Where turnover is between R50 00 and R999 999 per annum No registration Where turnover is less than R50 000

Where a company is registered for tax it is required to ensure that it issues an original tax invoice: Invoice must show both the SELLERs and the BUYERs (if applicable) tax number

Those registered need to do TAX RETURNS on a regular basis Regularity of returns depends on type of business / turnover level (example every 3rd month) Must declare the OUTPUT and the INPUT tax and the difference between the two OUTPUT TAX = the tax charged by a seller INPUT TAX = the tax paid by the seller to his suppliers Must pay over this difference to the Receiver Penalties and interest apply if returns not done and paid

Small business may apply to have all their taxes (ie VAT and profit tax) combined called TURNOVER TAX Their turnover must be less than R1 million per annum

Objective: To regulate business names (make sure that they are not offensive) Provide protection for business to ensure no one else uses their name The following is prohibited from being used in business names: Government State United Nations

Regulates Individuals rights to access information held by the State and other companies (public and private) When access to information can legally be refused Legal remedies in cases where information is illegally withheld Registration required Companies must register with the Human Rights Commission and provide standard information about themselves (excludes financial information) Objective of the Act To promote transparency in the spirit of the Constitution (ie for the intention of protection of human rights) See additional notes emailed

To provide for the facilitation and regulation of electronic communications and transactions; to provide for the development of a national e-strategy for the Republic; to promote universal access to electronic communications and transactions and the use of electronic transactions by SMMEs; to provide for human resource development in electronic transactions; to prevent abuse of information systems; to encourage the use of e-government services; and to provide for matters connected therewith.

Protect consumers from UNFAIR BUSINESS PRACTICES Example: negative marketing

The King reports were drafted to outlay the basic moral and the rules that all business should comply with (not a law known as Code of Ethics) Listed companies HAD to comply other companies were given the recommendation that they should comply Some of these rules have now been incorporated into the new Companies Act

Responsibility and accountability of Directors Sound Risk management Internal Audits Integrated, sustainable reporting Account and external auditing rules Compliance Enforcement

Management discipline Management independence Management transparency Management accountability Management responsibility Fairness of activities Social responsibility

Module Four Introduction to Business Economics Definitions Economic systems Free market Command (Communism) Socialism Economic Cycle 3 main sectors Monetary Public Foreign Macro & Micro Labour market & Trade Unions The Labour Market Trade Unions Craft Unions Industrial Unions

As studied briefly before: Need to Balance the SUPPLY of money, goods and services within a country to the DEMAND by the people of the country - for those goods, services and money Economics is the study of all the activities that impact on the supply and demand of these commodities

GDP (Gross Domestic Product) Measure the productivity levels of a country and the country is graded according to productivity levels by the rest of the World. This will affect foreign investment the more productive a country is the more attractive it is for investors

Value added method Incomes earned method Expenditure method

Income per Capita Calculated by dividing GDP by the number of people of working age in a country Inflation The increase in price of goods due to influencing factors without there being an increase in the value of those goods (ie paying more for a loaf of bread this week than you did last week)

methods of controlling the production activities within a country FREE MARKET (Capitalism) COMMAND SOCIALISM Current protestors in England and across the world AGAINST a Capitalism system

The citizens of the country are free to do business and to gather personal wealth Most of the products that are needed by the population are provided by privately owned companies Most of the key product areas such as mining/ forestry / agriculture etc are privately owned THEORETICALLY:- Benefit of this system is that people are in control of their own wealth and they can accumulate wealth for themselves Disadvantage of this system can have very rice people and also very poor people in the country

This type of economy places the control firmly in the hands of the STATE (Government) THEY decided WHAT products need to be produced and they CONTROL the production of all products and services including banks The INTENTION of this type of system is to make everyone equal in wealth BUT generally it results in making everyone equally poor! THEORETICALLY Benefit is that everyone would have access to the necessities of life Disadvantage is that no-one can accumulate their own wealth can only have what the State provides for them at the price the State decides. This encourages the development of a black market- where goods can be obtained for a high price under the radar of the Government

This type of system puts all the essential products and services such as mining, transport, agriculture etc under the ownership and control of the State but then allows the people to trade on other goods and still accumulate wealth for themselves (almost a mixture between free market and command economies) Theoretically The benefits of this system are that the cstizens will always have access to the key products and services at a fair price The disadvantage of this system is that mismanagement, corruption and self interest often plays a large role in the states activities with these resources leaving the people with little or inadequate resources in the end. Therefore this system in theory is a good one if all were honest and experienced in managing the countries assets and activities

Free market / socialism mix More on the Free market side with some key products owned by the State (Trans Net)

Refer to notes

Monetary Foreign Public

People in the workplace Have already studied the labour laws of South Africa intended for the protection of the rights of employees TRADE UNIONs represent employees CRAFT Unions INDUSTRIAL Unions

Are formed for the benefit of a group of people who perform the same activity such as PLUMBERS

Are formed for the benefit of a group of employees who are all employed within the same INDUSTRY Clothing & textile industry Steel Industry

Rights Obligations Freedom of Association Closed shop agreements Agency shop agreements

BCEA LABOUR RELATIONS ACT EMPLOYMENT EQUITY ACT SKILLS DEVELOPMENT ACT UNEMPLOYMENT INSURANCE ACT FICA PROTECTED DISCLOSURES ACT Review of THE INSOLVENCY ACT VALUE ADDED TAX ACT

Purpose of the Acts Content Comparisons between the Acts

Plan, Lead, Organise (provide practical examples from the work place) Performance measurements identify, explain, compare and give practical work related examples Include motivational theories that must be explained and compared and have practical examples from the work environment DSO targets KNOW how to calculate a target for the reduction of days sales outstanding Methods of measuring performance in consumer / retail and commercial environment compare these

Control Assess what has been achieved (using performance appraisals) Compare it against targets set / effectiveness/ quality/ etc Analyse the results REPORT results using various types of graphs! Learn the type of graphs and practical examples of when they can be used to portray information from the credit environment Coaching/ Counselling / Training (types) and Mentoring Explain, compare and give examples from the work environment

Explain List and explain the 7 factors required

Terminology GDP explanation and calculations Income per Capita explanation and calculation Inflation explanation Economic Systems - explain, compare give advantages and disadvantages

ORGANISE your study time have a plan EAT before you study (preferably fresh fruit) DRINK WATER (250 ml for every hour of study keeps your brain focused) TAKE REGULAR BREAKS (5 minutes every half hour) PRACTICE answering past questions

Get AT LEAST 6 HOURS sleep the night before EAT before the exam (Protein and fruit) WEAR comfortable clothes SIT as close to the front as possible (less distractions) UNDERSTAND all verbal instructions given by the invigilator

READ the full paper before you begin & make brief notes READ QUESTIONS CAREFULLY Answer the easiest ones first (mark your question numbers carefully & correctly) CHECK THAT YOU HAVE ANSWERED ALL QUESTIONS BEFORE YOU HAND IN YOUR PAPER! BE POSITIVE - & try to stay relaxed! Hang out with other positive people # DO NOT enter into any course related discussions whilst waiting to go into the exam hall!

Thank you for choosing CSM as your study partner!

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Documents

employee slide

law slide

icm assignment slide

law business management

public holidays slide

night work section

labour relations act

standard hours of work