SIBUGAY TECHNICAL INSTITUTE INCORPORATED

Lower Taway, Ipil, Zamboanga Sibugay

www.sibugaytech.edu.ph
Email Address: [email protected]

School President: 09171271826 / 09171271902 Academic Dean: 09064393454

Registrar: 09353420564 Guidance Coach: 09497510953
DSA: 0935119087

MICRO FINANCE SERVICES

LEARNER’S MODULE
1st semester 2022-2023
UNIT TEST COVERAGE ( WEEK 1 AND 3) Pages 1 - 18
PRELIM COVERAGE (WEEK 4 AND 6) Pages 19 - 49
MIDTERM COVERAGE (WEEK 7 AND 9) Pages 20 - 99
PRE-FINAL COVERAGE (WEEK 10 AND 13) Pages 100 - 184
FINAL COVERAGE (WEEK 14 AND 18) Pages 185 - 265

STUDENT’S NAME: _______________________________________________

GRADE, STRAND & SECTION: ______________CONTACT #: __________

FB NAME: _______________________________________________________
BASIC COMPETENCIES

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WEEK 1
UNIT OF COMPETENCY 1: PARTICIPATE IN WORKPLACE COMMUNICATION

Lesson Objectives: At the end of this lesson, the students should be able to:
1.To discover the importance of workplace communication
2. Determine the types of forms
3. Enumerate ways to better communicate in the workplace

How can we participate in workplace communication?

Workplace communications and defines the standard required to: follow routine
spoken messages; perform workplace duties by following routine written notices; obtain and
provide information in response to workplace requirements; complete relevant work related
documents: participate in workplace meetings and discussions.

Why is it important for us to participate in workplace communication?

Good communication can boost teamwork and lead to better project collaboration. It
applies to practically every industry. Workplace communication is important for streamlining
internal communication. Maintaining effective communication ensures that management and
the team below them are on the same page.

What is effective workplace communication?

Effective communication occurs when a message is sent and received accurately. Just
because you believe you are communicating ideas and information properly in your
organization, does not necessarily mean it is effective.

Good communication can boost teamwork and lead to better project collaboration. It
applies to practically every industry.

Workplace communication is important for streamlining internal communication.

Maintaining effective communication ensures that management and the team below them
are on the same page. That means that employees are confident with the work at hand and
managers are assured that team members are correctly undertaking that work.

But remember, workplace communication and business communication are different.

Both are important to a company’s success going forward.

What are good communication skills to have?

Whether you are an enterprise or a small business, having good communication from
top to bottom is essential. Part of having good communication is understanding a “shared

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meaning.” This refers to the real information being understood by each party involved, using
words that mean the same to everyone, especially when it’s industry-specific terminology.

Even managers can have a hard time communicating. This comes from an Interact
survey asking employers how they feel about communicating with their employees. The
graph below demonstrates how managers feel in certain situations with employees:

Source

A staggering 69% of managers are uncomfortable when communicating in general.

Not even when delivering difficult news or offering feedback. That’s just in basic, everyday
communication. This suggests that communication is lax across many workplaces, which can
potentially negatively impact the business.
This has to change.

As a business leader, you need to analyze how you communicate in the workplace in
order to see where you can improve. Then, you can develop a strong communication strategy
for everyone to work from.
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Here are the top 5 ways to better communicate in the workplace.

1. Meetings

It sounds simple, but it’s often not practiced enough. Listening to others is arguably
the most important communication skill you can have. If you find you’ve got the tendency to
talk over others, then try to be more patient. You will get the opportunity to make your point
when they’re finished—especially if you’re the boss.

When employees feel like they’re being listened to, they feel more valued and
appreciated and creates a more collaborative culture. It also gives you the chance to
understand issues or concerns about a task from an employee’s perspective. This can
improve employee engagement.

2. Brevity for effective workplace communication

Speak to any successful business manager and they’ll all mention that time is their
most important asset. When discussions are dragged out, not only can this dilute the
importance of the message, but it can also over-complicate it. Keep your communication brief
and to the point.

3. Clarification

Don’t presume the other person understands what you’re saying. Similarly, don’t be
afraid to speak up if you need clarity on something. Asking questions can help you to gain a
better understanding of certain situations, and you should always be encouraging your
employees to ask you if they’re unsure.
Not only can this improve relations with employees, but it can also help to minimize errors.
Sometimes a simple question to double-check can save mistakes from happening.

4. Communication style

In order to give them the best service possible, you need to refine your communication
style. Perhaps you like to schedule a call and then follow up with some meeting notes. On
the other hand, maybe you prefer to video call and catch up with a phone call later on down
the line. Either way, you need to make an effort to establish a routine, so your colleagues and
clients know what to expect.

This also refers to the frequency of communication. If you respond a minute after your
client contacts you, then they’re going to become accustomed to that high level of
communication, which you may not always be able to deliver.

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5. Open-mindedness

Open-mindedness is another good communication skill to have. It allows you to enter

a conversation free of judgment or preconceived ideas, giving the person speaking the
confidence to explain new ideas that could potentially benefit the business.

If you’re quick to shut things down, then employees will be less inclined to tell you their
ideas. Your conversations will be less honest, and less productive because of this. By keeping
an open mind you’re willing to enter into a dialogue with someone whose opinion you may
not agree with, and you may surprise yourself by the end of it.

What are good communication tools?

Effective workplace communication means nothing if you do not have the right tools
to help foster teamwork! Now more than ever, teams are working from home, leaving less
face-to-face interaction in the office. There are many communication apps that businesses
can use to help with better communication.

Here are the top tools your business needs to communicate better with coworkers.

1. Video Conferencing

With the workplace environment becoming more flexible, many employees choose
to work from home. But this doesn’t mean they should miss out on team meetings. They want
to see body language, facial expressions, eye contact, and everything else that you’d pick up
on from face-to-face communication.

That’s where video calling comes in. With video calling, you can effectively
communicate with employees who are working remotely while still offering the experience of
being in a meeting.

2. Messaging

Messaging can be one of the main ways that coworkers communicate when they’re
out of town or working remotely. Although messaging isn’t always used as the number one
means of communication, it can be greatly beneficial alongside video or phone calls.
When it comes to managing remotely, messaging is often needed after a phone call to recap
what was said—a good idea when you want to ensure your employee has understood
everything. It can also be quicker than typing out an email and leaves less room for
miscommunication, as any queries can be quickly and efficiently cleared up.

3. Phone

It may sound old-fashioned but every company needs a reliable phone system to
communicate with clients and coworkers. You could need a business phone to hop on a quick

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call with a colleague, or need a centralized number for customers and clients to call in order
to get a problem resolved.

Phones allow for voicemails to be left and easy access to a customer service
representative. What better way to communicate than with the original communication tool?

4. Email

Emails are a popular way to communicate in an office from peer-to-peer or B2B.

However, as times have moved on and people are becoming more proficient in using video
calling software and cloud phone systems, emails are used less and less often.

As per our earlier graph, 16% of managers said they feel uncomfortable speaking face-
to-face rather than via email. Considering communication is better understood when verbal
and face-to-face, this is a worrying statistic. As a leader, you have to be confident in non-
verbal communication, especially when it comes to employees.

Why is Communication Important?

As a business leader, being an effective communicator at work is vital. One of the best
ways you can improve communication within your company is to invest in amazing
communication tools. This includes cloud-based communication and collaboration software.

The right software can enable your employees to communicate quickly and effectively,
especially if they’re working remotely. As you’ve seen, video conferencing and phone calls
can allow you to stay connected, no matter where you are. This, coupled with a great
communication strategy for the office, can help you to be an effective communicator with
clients and colleagues alike.

Learning Outcome: 1. Obtain and convey workplace information

Effective Communication

Communication is the process of exchanging information and ideas. There are many
means of communication. To be an effective and valuable member of your workplace it is
important that you become skilled in all of the different methods of communication that are
appropriate. This website looks at different types of communication and associated
technology, but before that it is important to understand the communication process.

The Communication Process for communication to occur it must pass from a sender
to a receiver. This must occur irrespective of the form of communication. For communication
to be effective it must be understood by the receiver and be able to be responded to. This
means that total communication involves speaking, reading, listening, and reasoning skills.
As communications pass from the source to the receiver there is plenty of opportunity for its
original meaning to change or alter.

Therefore listening, reasoning and feedback is an important part of the process as it

is an opportunity for the sender to make sure the receiver has understood the message. The
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other consideration is the “noise” associated with the communication – what else is
happening, what are the distractions, the baggage etc. Noise can have a big impact on the
message the receiver decodes.

How do you convey workplace information in the workplace?

1. Specific relevant information is accessed from appropriate sources.

2. Effective questioning, active listening and speaking skills are used to gather and. ...
3. Appropriate medium is used to transfer information and ideas.
4. Appropriate non-verbal communication is used.

Identifying relevant information

One of the hallmarks of scholarly study is demonstrated in your ability to identify

relevant information from the sources available.

There are three types of information:

 Primary information which is the original or raw data; this is often referred to as your
'source'. It is usually presented with little or no analysis. Examples of primary sources
include: statistics, standards, legislation and company data.

 Secondary information usually takes raw data and analyses it and presents it in a
format that is easier to read and understand. Reports, newspaper articles, textbooks
are examples of secondary information.

 Tertiary information includes books and articles based on the research of others.
They aim to explain research for a general audience. This may be useful as a starting
point for your research but provide little substance to support your academic
assessment since they tend to oversimplify, rely on too few sources and are quickly
out of date.

Learning Outcome 2. Participate in workplace meetings and discussions

Six Tips on How to Participate in a Meeting

Participating in a company meeting is a chance to get noticed by your peers and

superiors. What you bring to a meeting -- and what you don’t bring -- can give others a positive
or erroneous impression of you. Prepare yourself for business meetings and follow a few
simple rules to make yourself stand out like a star performer instead of a sore thumb.

1. Be Prepared

Prepare for the meeting by reading the agenda and brushing up on what’s going on. If you’re
not sure what the meeting’s about, ask someone so you can prepare. If the meeting is a
regular meeting with minutes taken, read minutes of past meetings to learn what’s already
been discussed and decided. If the meeting is organized, the participants might follow
Robert’s Rules of Order. This includes participants making a motion, one person seconding
each motion, discussion, then a vote called by the meeting chair.

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2. Pick your Battles

If someone makes an error or you disagree with him, think before you speak. Don’t show
someone up if you can correct him later. Even if the person is a subordinate or someone you
don’t like, others in the room will wonder if you won’t have their back in the future.

3. Contribute

Don’t leave a meeting without contributing, if it’s appropriate. Some meetings are
primarily for giving information. Others are more interactive. Either way, take an opportunity
to ask a question, make a comment or just lend your support. Be careful not to appear
insincere by simply stroking a superior. Look for opportunities to make specific comments. If
you’re going to compliment someone, tell the room exactly what you feel is positive about the
idea or information.

4. Choose your Timing

Don’t be the first one to comment on a presentation or proposal if you’re not senior
management or an expert. Your questions and comments might be answered by someone
else who goes after you and you might learn that you misinterpreted what was said. Wait until
you are confident that your input is needed and correct before you raise your hand.

5. Don’t Dominate

Even if you have several valuable questions and comments that contribute to the
meeting, don’t dominate the discussion. After you make a point, wait for others to chime in -
- they might make another point you were going to add, giving you a chance to sit back and
contribute later.

6. Soften Objections

If you see problems with ideas or proposals, try to frame your concerns in a positive
way. Instead of telling someone she is wrong, point out the problem by asking a question,
instead. This gives the person a chance to show they have the situation covered, and covers
you if it turns out you were wrong.

For example, instead of saying, “We can’t produce that many units in one week,” ask, “How
do you see us ramping up production to meet that demand?”

Participate at Work

Every workplace will have staff meetings/team meetings, formal and informal
discussions.

When a business places a proper value on the time spent by people preparing for and
attending meetings, it is quickly seen that they are a very expensive exercise.

Have you ever been to one of those meetings where no objectives were met, no
actions were agreed upon and generally it was a complete waste of your time? Effective

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meeting procedures are essential to ensure that the maximum output is gained from a
meeting.

Some basic expectations are:

A clearly defined purpose to your meeting – Ask questions such as; Why are we
meeting? What are we trying to achieve? Are we meeting for meetings sake? However,
consider that at times the purpose of bringing people together for a meeting may be to
achieve other important interpersonal objectives like team building, brain storming or group
problem solving. Make sure that you clearly communicate the meeting purpose well before
hand, this gives attendees time to gather ideas or research issues prior to attending the
meeting.

Advise people of the meeting in time for them to be able to attend – It is amazing how
often key people are left out of meetings or are not able to attend simply due to a lack of
planning and sufficient notice.

Set an agenda – An agenda aims to keep discussions on track and to keep everyone
focussed on the issues. The agenda should be distributed to attendees before the meeting.

Start and finish on time – Make sure the meeting starts and finishes on time so
participants feel that their time is valued and that they can plan for effective meeting
participation to fit within their work load.

Manage the participants – It is important that every person feels their attendance and
contribution is valued. People must be given the opportunity to express their opinion as well
as recognising they must also listen to others without interruption. Clear conflict management
strategies must be in place.

Learning outcome 3. Complete relevant work related documents

The Workplace Documents assessment measures skills that individuals use when
they read real workplace documents and use that information to make job-related decisions
and solve problems. The documents include messages, emails, letters, directions, signs,
bulletins, policies, websites, contracts, and regulations.

Types of Forms
In every workplace you will be required to complete forms. Each workplace will have
forms specific to their requirements. You must make sure that you know which forms to fill in,
when you need to use forms and where to find the necessary forms.

When filling in a form:

 read the form carefully

 fill in all the required details
 only include necessary information
 write clearly and simply
 check that you have completed it properly
 send or give it to the appropriate person, or file in the appropriate place

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Work instructions are the most basic tool used in every business or organisation to help
workers follow a sequence of steps. Inadequate work instructions are likely to result in a
variety of problems in the workplace that could range from:

 returned products
 loss of materials
 customer complaints
 liability issues
 poor work performance

Work instructions can have a major impact on the effectiveness and productivity of a
workplace. If instructions are difficult to follow, workers will make errors in implementing the
steps.

A good work instruction is a detailed sequence of steps that workers need to follow each
time they perform a task. The purpose of a work instruction is to organize steps in a logical
and systematic way so that workers can easily follow it independently.

This means a consistent format for your work instructions is important. Workers can read
the information faster and absorb it more quickly if it follows a consistent font and format. It
also makes the development of further work instructions far simpler as you have a template
to follow.

ACTIVITY:

Self- Quiz No.1. If the statement is true, write the word “True”, if otherwise, write the
word, “False”, opposite the corresponding number: (1 point each)

________1. Work instructions are the most basic tool used in every business or
organization to assist employees in following a set of instructions.
________2. Workers can read and absorb information faster if it is presented in an uniform
font and format.
________3. When filling out a form, read it thoroughly.
________4. Inadequate work instructions are likely to cause a wide range of issues in the
workplace.
________5. The process of exchanging information and ideas is known as communication.

Application No. 2. (5 points each)

1. Find the type of form you need on the internet. Fill out the form and explain why the
materials are important.
2. Why do we need to participate in workplace discussions as employees?

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3. What are some things you may do as an employee to help the organization achieve its
objectives?

WEEK 2
UNIT OF COMPETENCY 2: WORK IN A TEAM ENVIRONMENT

Lesson Objectives: At the end of this lesson, the students should be able to:
1. Describe and identify team role and responsibility in a team
2. Appreciate the Relationship and Responsibility as a team member.
3. Work as a team member.

WORK IN A TEAM ENVIRONMENT

A team environment is a setting in the workplace that's focused on everyone working

together toward a common goal. Brainstorming, joint projects and collaboration are all
common elements of team environments and strong, open communication is essential for
success

Learning outcome 1. Describe team’s role and scope.

Describe and identify team role and responsibility in a team

Clarify Roles

Knowing everyone’s role and being familiar with the responsibility of those roles create
efficiency and flexibility. Ideas for clarifying roles on the team include:

 Review team members’ roles frequently.

 Relate team member expectations to the team’s overall purpose.
 Clarify responsibilities when action planning.
 Learn what others do on the team.
 Figure out ways to help each other.

Setting aside time to really evaluate what you do and how that impacts (or not) the
company you work for is important to understanding the value you and your role have with
that organization. Are you a key player on your team? If not, does the role provide
opportunities for you to advance toward this?

After fully understanding your current role, value within your company, and its possible
benefits and setbacks for your future, it’s time to take action. So many people become
complacent in their careers and on the job.

If after evaluating your overall situation you discover that it’s actually beneficial to step out
of your current role—step out of it. Don’t be afraid to follow after what your heart truly desires.

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Relationship and Responsibility

Being a mutually evolving process, a relationship requires team members to be

dependent on each other. Every individual should develop a level of trust for each other in
order to be reliable for each other. Some of us just cannot find it easy to entrust a work with
another team member or cannot seem to trust what a member can contribute.

In order to build trust, the team can hold trust-building talks during meetings every now
and then. Self-disclosure is a good strategy for establishing trust with each other. Learning
how to open and share a little about you to your teammates will give them a chance to know
you as a person. Inject humor and some fun to be comfortable with each other.

Once you start to trust each other as an important member of the team, you will also
become easily dependent on each other. With this, a budding relationship is established.

Each individual in a team has talents and abilities that can contribute to a solid work
relationship which is needed to be productive in the job. As a team, members have to identify
who excel in technical expertise, who are keen in problem-solving and decision-making, and
who are adept in active listening, giving good feedback, and conflict resolution.

Identifying these skills helps a team perform effectively. This is otherwise known as
team synergy through a coordinated effort of performing these abilities. Diversities even in
skills and talents are common. But sharing these skills for the benefit of the team can build a
solid work relationship among the individuals.

For a relationship to become healthy, learn to appreciate each other’s talents. Being
recognized by fellow colleagues for the effort contributed for the team is heartwarming and
rewarding.

Relationship with a Team

Typically, in a work setting, every working individual belongs to a team where a group
of members work together with similar functions and work description, though not necessarily
similar in interests.

Also, individuals in a team generate a collaborative effort to achieve common goals,

and may need to give up individual autonomy in order to attain those goals. The organization
as a whole can make up a team and this component is by far the largest to be called as such.

If you are paired up with another work colleague on a project, you are already called
a team. Regardless of the population of the members and diversities in a team, building a
relationship is a crucially important factor grounded on teamwork.

Team members who develop a common strategy in working such as using a

discussion in the interaction process or assigning tasks are manifesting teamwork. Individuals
work together by sharing individual objectives and eventually come up with a unified goal.

Being a part of a team also entails commitment in the job and the responsibility. In
order for a team to be harmonious, a good working relationship has to be established.

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Learning outcome 2. Describe work as a team member.

Be an Effective Team Member

Working on teams can be rewarding, but at times it can be difficult and downright
frustrating. If there are poor communicators on your team, you may often feel left in the dark,
confused or misunderstood. To create a successful team, effective communication methods
are necessary for both team members and leaders.

Get Involved – Share suggestions, ideas, solutions and proposals with your team
members. Take the time to help your fellow teammates, no matter the request. You can
guarantee there will be a time in the future when you’ll need some help or advice. And if
you’ve helped them in past, they’ll be more than happy to lend a helping hand.

No Bragging

It’s one thing to rejoice in your successes with the group, but don’t act like a superstar.
Doing this will make others regret your personal successes and may create tension within
the group. You don’t have to brag to let people know you’ve done a good job, people will
already know. Have faith that people will recognize when good work is being done and that
they’ll let you know how well you’re doing. Your response? Something like “Thanks, that
means a lot.” is enough.

Group Planning and Decision Making

There can be advantages and disadvantages in involving teams of people in decision

making. Some advantages include; accumulating more knowledge, taking a broader
perspective and gaining support by letting individuals participate in the process.

Some of the disadvantages in group decision making include often a slower time to
get a decision, a necessity for compromise which results in a less than optimal outcome and
the potential for an individual or clique to dominate the group, negating its original benefit.

One difficult decision in itself for a manager or business owner is determining when to
engage a group, and the extent to engage a group to help make a decision or whether to go
alone and make a decision individually.

Group Decision-making Advantages:

What are advantages and disadvantages of group decision making?

 Advantages of Group Decision Making. Group decision making provides two

advantages over decisions made by individuals: synergy and sharing of information.
 Disadvantages of Group Decision Making.
 Diffusion of Responsibility.
 Lower Efficiency.
 Groupthink.

If it is determined that a group decision is the preferred option, some simple guidelines
for the decision making process can help as follows;
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 Develop a clear understanding of the problem and the need for a decision
 Develop a clear understanding of the requirements for an effective choice
 Thoroughly and accurately assess all the positive qualities of alternative solutions
 Thoroughly and accurately assess all the negative qualities of alternative solutions
 Although group decision making can be effective, it can also have disadvantages such
as;

a. Social pressure. The pressure to conform to the group can have adverse effects on
the creativity of the individual group member.

Domination by a vocal few. Group members may be ignored and outspoken by

members who speak the loudest and longest.

b. Goal displacement. The primary objective of making a sound decision may be

affected by a member’s personal considerations such as winning an argument, or
getting back at another group member.

c. Groupthink. Groupthink occurs when group members try to minimise conflict and
want to remain within the comfort zone of the group’s consensus thinking. Creativity
and independent thinking are usually the first things to be sacrificed, resulting in poor
quality decisions.

ACTIVITY

Definition No. 1. Define the following write your answer in the space provided below

_____________1. A team environment is a setting in the workplace that's focused on

everyone working together toward a common goal. Brainstorming, joint projects and
collaboration are all common elements of team environments and strong, open
communication is essential for success.
_____________2. Creativity and independent thinking are usually the first things to be
sacrificed, resulting in poor quality decisions.
_____________3. The pressure to conform to the group can have adverse effects on the
creativity of the individual group member.
_____________4. Domination by a vocal few. Group members may be ignored and
outspoken by members who speak the loudest and longest.
_____________5. The primary objective of making a sound decision may be affected by a
member’s personal considerations such as winning an argument, or getting back at another
group member.
Essay: Answer the following question.

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1. As the leader, do you have enough information of your own to make a good decision?
2. Is the problem structured in that it is clearly defined, organised and has recognized
solutions?
3. Do the members of the group have to accept this decision for it to work?
4. If you make this decision yourself, are you sure the group will accept it?
5. Are the group members aligned with the same goals that you are trying to achieve?
6. Is disagreement likely among group members in reaching a decision?

WEEK 3
UNIT COMPETENCY 3. PRACTICE CAREER PROFESSIONALISM

Lesson Objectives: At the end of this lesson, the students should be able to:
1. Understanding career professionalism.
2. Learn personality Development
3. Apply personal hygiene

What is practicing career professionalism?

In the working world, your professionalism encompasses the way you carry yourself,
your attitude and the ways you communicate with others. Being professional can ensure a
positive first impression, successful interpersonal relationships and a lasting reputation within
your organization and industry.

Learning outcome: Integrate personal objectives with organizational goals

Personality Development

Personal goals affect how an employee performs. While they can serve as motivation
to be more productive and more successful, they can also cause conflicts between staff or
between work and home.

Businesses are most successful when employees’ personal goals are aligned with
corporate goals. This can be difficult to do at times, but it is possible.

Most of the time, personal goals should still be work-related, such as achieving a sales
volume, working a number of hours, organizing a specific project, or improving a specific
skills. Finding common ground between these personal goals and your organizational
priorities can be hugely productive.

The easiest way to do this is to simply ask employees what they think the team can
do to help them reach their personal goals. Make sure you follow up by clarifying how their
own goals are contributing to the overall team objective.

One of the most effective ways we have to protect ourselves and others from illness
is good personal hygiene. This means washing your hands, especially, but also your body. It
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means being careful not to cough or sneeze on others, cleaning things that you touch if you
are unwell, putting items such as tissues (that may have germs) into a bin, and using
protection (like gloves or condoms) when you might be at risk of catching an infection.

Personal hygiene, such as bathing, is very much dependent on the culture in which
you live. In some cultures, it is expected that you will wash your body at least every day and
use deodorants to stop body smells. Other cultures have different expectations

Personal Hygiene and Practices

 Body odor
 Body smells are caused by a number of factors working in combination, including:
Chemicals in sweat, including pheromones, which are made by the body and
sexually attract (or repel) other people.
Wastes excreted through the skin, such as metabolised alcohol.
The actions of bacteria that live on the skin and feed on dead skin cells and sweat.
Unwashed clothes, such as underwear and socks.

Hand washing

Most infections, especially colds and gastroenteritis, are caught when we put our
unwashed hands, which have germs on them, to our mouth. Some infections are caught
when other people’s dirty hands touch the food we eat. Hands and wrists should be washed
with clean soap and water, using a brush if your fingernails are dirty. Dry your hands with
something clean, such as paper towels or hot air dryers. You should always wash your hands:

 After using the toilet

 Before making or eating food
 After handling dogs or other animals
 If you have been around someone who is coughing or has a cold.
 Personal hygiene for women
 The vagina is able to clean itself no special care is needed, other than washing the
external genitals. Do not put anything like douches into the vagina, as the delicate skin
can be damaged. Here are some personal hygiene suggestions for women:

Menstruation – wash your body, including your genital area, in the same way as you always
do. Change tampons and sanitary napkins regularly, at least four to five times a day. Always
wash your hands before and after handling a tampon or pad.

Cystitis – is an infection of the bladder. This is a common condition for sexually active young
women. Urinating after sexual intercourse can help to flush out any bacteria that may be in
the urethra and bladder.

Thrush – some soaps and detergents can irritate the skin of the vagina, and make thrush
infections more likely. Some people find that they often get thrush when they use antibiotics.
Use mild soap and unperfumed toilet paper. Avoid tight, synthetic underwear. Try cotton
underwear, and change regularly. There is medical treatment for thrush, so talk to your doctor
or pharmacist.

Personal hygiene for men

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A build-up of secretions called smegma can form under the foreskin of uncircumcised
men. If you are uncircumcised, gently pull back the foreskin when you have a shower and
clean with water. You can use soap if you like, but make sure you rinse it off well.

Bad breath

Good dental hygiene includes regular brushing and flossing. Bad breath can be
caused by diseases of the teeth, gums and mouth, such as infections. Most people have bad
breath first thing in the morning because saliva is not made while you’re asleep. Some foods
that can cause bad breath include garlic and onion. Mouth washes, mouth sprays and
flavored chewing gum can make your breath smell better for a while, but if you have a health
problem in your mouth, you need to see your dentist.

Travelling hygiene

When travelling overseas, take special care if you’re not sure whether the water is
safe. Suggestions include:

Drink only bottled water.

 Don’t use tap water to clean your teeth.
 When you wash your hands, make sure they are totally dry before you touch any food.
 Don’t wash fruit or vegetables in unsafe water.

If you have no other water source, make sure the water is boiled before you drink it by
holding it at a rolling boil for one minute.
 Make sure any dishes, cups or other utensils are totally dry after they are washed.
 Where to get help
 Your doctor
 Dentist.

Things to remember:

Good personal hygiene is one of the most effective ways to protect ourselves and
others from many illnesses, such as gastroenteritis.

Wash your hands regularly, especially before preparing or eating food and after going to

Learning Outcome 2. Set and meet work problems

In any responsible position in any company that you ever have, it is a given that there
will be more work to do than there are hours in the day. You could kill yourself, trying to do
everything that needs to be done, and still not manage to complete it all. As an employee,
your most important task is to determine priorities, so that the things that need to be worked
on are those that receive your time and attention and that of your department.

Priorities have to be established based upon what is best going to meet your
company’s needs. But, that’s not always easy to determine. What often looks like the best
possible solution may not actually be so. Properly determining priorities requires
understanding the various tasks that need to be done, how they relate to your company’s

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goals and how they compare to other tasks that also appear important.

ABC Prioritizing

The most common form of prioritizing tasks is by a simple ABC method. In this method,
you make a list of all the tasks that you have to complete, and assign them a letter code:

 A = High priority, very important to get this done

 B = Medium priority, this should get done
 C = Low priority, it would be nice if this could get done

It is assumed with this method that you know how important the various tasks are in
regard to your company’s and department’s goals. Otherwise, the priorities you place on the
individual tasks really have no value.

The next step in the process is to add a due date for each of these tasks. Most important
tasks need to be completed by a particular time. If they aren’t completed by that time, they
move from just being important to being important and urgent. Some items may not have a
due date, especially things that are priority C. However, a priority C item, that never gets dealt
with may become more important over time. For this reason, some people put a start date on
the items as well. That way, even items that may be a Priority C will have some visibility.

Learning outcome 3: Maintain professional growth and development

In rapidly changing environments, both organizations and the people who make up
those organizations must engage in continual growth, or risk becoming obsolete. All too often,
professional growth is a hit-or-miss process. Learning opportunities selected are often those
that meet immediate needs rather than future needs.

Professional development helps build and maintain morale of staff members, and is
thought to attract higher quality staff to an organization. It is a process of improving and
increasing capabilities of staff through access to education and training opportunities in the
workplace, through outside organization, or through watching others perform the job.

A career, the pursuit of consecutive, progressive achievement especially in public,

professional, or business employment, is a personal choice that entails commitment,
perseverance, and a plan. Professional growth in a career requires the continuous acquisition
of knowledge and skills through study, instruction, investigation, and practice. It is an on-
going process.

Career planning involves visualizing what you want to be doing in the future within
your profession. Career planning enables professionals to set goals and define specific tasks
that must be accomplished in order to reach those goals. At the same time, career planning
considers options, and alternatives. Flexibility is important as we cannot know the future.

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ACTIVITY

Self- Quiz No.1. If the statement is true, write the word “True”, if otherwise, write the
word, “False”, opposite the corresponding number: (1 point each)

________1. Professionals can use career planning to set goals and outline specific actions
that must be completed in order to achieve those goals.
________2. Priorities must be created depending on what will best satisfy the demands of
your firm. However, this isn't always straightforward.
________3. Don’t wash fruit or vegetables in unsafe water.
________4. Employees' personal ambitions should be matched with the company's goals for
maximum success.
________5. Professionalism in the workplace refers to how you carry yourself, your attitude,
and how you connect with others.

Definition No. 2. Define the following and write your answer in the space provided
below. (2 points each)

________________1. The most common form of prioritizing tasks

________________2. Has to be established based upon what is best going to meet your
company’s needs.
________________3.It can be caused by diseases of the teeth, gums and mouth, such as
infections.
________________4. Body smells are caused by a number of factors
________________5. It affect how an employee performs.

UNIT EXAMINATION WEEK

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WEEK 4
UNIT COMPETENCY 4. PRACTICE OCCUPATIONAL HEALTH AND SAFETY

Lesson Objectives: At the end of this lesson, the students should be able to:
1. Learn occupational health and safety procedures
2. Identify hazards and risks
3. Maintain occupational health and safety (OHS) awareness

OCCUPATIONAL HEALTH AND SAFETY (OHS)

What Does Occupational Health and Safety (OHS) Mean?

Occupational health and safety (OHS) is a branch of public health aimed at improving
workplace health and safety standards. It studies injury and illness trends in the worker
population and offers suggestions for mitigating the risks and hazards they encounter on the
job.

Every occupation has health or safety risks associated with it, and it is every
employer’s responsibility to ensure that their employees can carry out their work as safely as
possible.

Safeopedia Explains Occupational Health and Safety (OHS)

The field of occupational health and safety sets standards to mandate the elimination,
mitigation, or substitution of jobsite hazards. OHS programs also include processes and
procedures to minimize the consequences of workplace incidents.

Occupational health and safey is a very broad umbrella. It covers not only first aid
provisions and the safe operation of heavy machinery, but also infection prevention,
ergonomic best practices, and methods for responding to workplace violence.

The Occupational Safety and Health Act

In December of 1970, President Richard Nixon signed the Occupational Safety and
Health Act into law, becoming the first far-reaching federal law to protect American workers.
Soon after, the Occupational Safety and Health Administration (OSHA) was established to
ensure the proper and thorough implementation of the law.

OSHA not only enforces occupational health and safety standards, but continuously
updates those standards in light of new research findings, best practices, and

How to Stay Safe on the Job

Some of the topics covered by OHS include the following:

Appropriate use of PPE - It is the employer's responsibility to ensure that workers have
the personal protective equipment required to work safely. Depending on the job and work
environment, this can include fall protection devices, hard hats, high-visibility clothing, or
safety gloves.

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Safe operation of the work equipment - Safety procedures ensure that employees can
use heavy machinery, power tools, and other work equipment with minimal risk of injury. This
includes not only the appropriate handling of the equipment, but also regular inspections and
maintenance to ensure that it functions optimally.
Maintaining hydration - Since they are at work for extended periods of time, workers are at
risk of dehydration if clean drinking water isn't provided for them. While this affects all
workers, it is especially important for those who do intense physical labor, wear heavy

PPE, or work in high-heat environments.

Good bodily movements - Musculoskeletal disorders are an extremely common type

of workplace injury. To prevent them, workers need to follow ergonomic best practices. This
includes safe lifting techniques, good posture, and avoiding repetitive motions while carrying
out their work tasks.

How to Stay Safe on the Job?

Some of the topics covered by OHS include the following:

 Appropriate use of PPE - It is the employer's responsibility to ensure that workers

have the personal protective equipment required to work safely. Depending on the job
and work environment, this can include fall protection devices, hard hats, high-visibility
clothing, or safety gloves.

 Safe operation of the work equipment - Safety procedures ensure that employees
can use heavy machinery, power tools, and other work equipment with minimal risk of
injury. This includes not only the appropriate handling of the equipment, but also
regular inspections and maintenance to ensure that it functions optimally.

 Maintaining hydration - Since they are at work for extended periods of time, workers
are at risk of dehydration if clean drinking water isn't provided for them. While this
affects all workers, it is especially important for those who do intense physical labor,
wear heavy PPE, or work in high-heat environments.

 Good bodily movements - Musculoskeletal disorders are an extremely common type

of workplace injury. To prevent them, workers need to follow

Learning outcome 1: Identify hazards and risks

What is the difference between a 'hazard' and a 'risk'?

A hazard is something that can cause harm, e.g. electricity, chemicals, working up a
ladder, noise, a keyboard, a bully at work, stress, etc.

A risk is the chance, high or low, that any hazard will actually cause somebody harm.

For example, working alone away from your office can be a hazard. The risk of
personal danger may be high. Electric cabling is a hazard. If it has snagged on a sharp object,
the exposed wiring places it in a 'high-risk' category.

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Risk assessment is the process where you:

 Identify hazards and risk factors that have the potential to cause harm (hazard
identification).
 Analyze and evaluate the risk associated with that hazard (risk analysis, and risk
evaluation).

Learning outcome 2: Evaluate hazards and risks

What is evaluating hazards and risks?

A risk assessment is an examination and evaluation of hazards present in a workplace. It's

the process of cataloging and classifying the various machines, equipment, operational
procedures, employee behaviors and habits, working conditions, and other potential factors
that could cause people harm.

Learning outcome 3. Control hazards and risks

Sometimes using more than one control measure could be the most effective way to
reduce the exposure to hazards.
1. 1 Eliminate the hazard. Remove it completely from your workplace. ...
2. 2 Substitute the hazard. ...
3. 3 Isolate the hazard. ...
4. 4 Use engineering controls. ...
5. 5 Use administrative controls. ...
6. 6 Use personal protective equipment (PPE)

Why is it important to control hazards and risks?

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Image result for Control hazards and risks

Effective controls protect workers from workplace hazards; help avoid injuries,
illnesses, and incidents; minimize or eliminate safety and health risks; and help employers
provide workers with safe and healthful working conditions

Learning outcome 4. Maintain occupational health and safety (OHS) awareness

Why Occupational Health and Safety is Important?

Occupational Health and Safety (OHS) focuses primarily on protecting employees in the
workplace from accidents, injuries, and exposure to harmful substances. While accidents can
happen at any time, it is still the employer’s responsibility to ensure that they take steps to
reduce the risk of incidents and maintain a safe working environment. Prioritizing OHS at
your business has several key benefits, including:
 Reduced risk or accidents or injuries by identifying and mitigating hazards
 Improved efficiency and productivity due to fewer employees missing work from illness
or injury
 Improved employee relations and morale (a safer work environment is a less stressful
work environment)
 Reduced costs associated with accidents or injuries (healthcare and rehabilitative
costs, losses in productivity, impact on employees’ well-being)
 Lower insurance premiums resulting from fewer workplace incidents and workers’
compensation claims

It’s no secret that all industries have safety hazards of some sort. The most important
aspect of a good Occupational Health and Safety policy is identifying these hazards and
ensuring that employees have the training, safety equipment, and other resources needed to
work safely. Failure to implement effective policies and precautions can lead to injuries,
reduced productivity due to the absence or loss of skilled labor, workers’ compensation
claims, and possible penalties from the Occupational Safety and Health Administration
(OSHA).
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There are several types of hazards employees may be exposed to depending on their
industry

 Physical hazards are environmental factors that can lead to injuries. These include
exposed electrical wiring, falling objects, wet floors, and other conditions that can
cause slips, falls, cuts, or other injuries. Some physical hazards don’t necessarily need
to make physical contact to cause harm, such as excessive noise levels, heat, and
pressure.

 Biological hazards can lead to diseases, infections, and other serious health
conditions. Mold and fungi, blood and other bodily fluids, bacteria, viruses, sewage,
and vermin are all examples of biological hazards. Using Personal Protective
Equipment (PPE) is vital to preventing exposure to biological hazards and protecting
your health.

 Chemical hazards can be inhaled as gases or vapors, or come in contact with skin
as a liquid or solid. They can cause skin irritation, burns, respiratory problems,
blindness, or other serious health complications. Chemicals such as cleaning
products, acids, pesticides, and petroleum products need to be handled responsibly
with proper PPE to prevent exposure.

 Ergonomic hazards put strain on muscles, tendons, and other connective tissues of
the body. They can result from bad posture, not using dollies other mechanical
assistance, and repetitive or awkward lifting/movement. They can lead to
musculoskeletal injuries such as muscle sprains, ruptured or herniated discs, and
carpal tunnel.

 Psychological hazards can lead to depression, concentration problems, inattention,

or negligence. This type of hazard includes work-related stress, fatigue, harassment,
and violence. These conditions can, in turn, lead to morale issues, reduced
productivity and quality of work, and increased risk of injury.

How to Promote Occupational Health and Safety in Your Workplace

1. Make sure that your OHS policies comply with all federal and/or state laws and
regulations
2. Ensure that your staff is properly trained on all machinery and equipment they may
use in the workplace and are certified to operate them if required
3. Keep Safety Data Sheets (SDS or MSDS) for all chemical products in use at your
workplace, and make sure that they are easily accessible by your employees
4. Have all necessary Personal Protective Equipment (PPE) such as hard hats, eye
protection, and respirators readily available to all employees
5. Use tools and other equipment correctly and only for their intended purpose
6. Use mechanical assistance such as carts, dollies, or pallet jacks when lifting or moving
heavy objects
7. Maintain good posture when sitting, standing, or lifting, especially when doing so for
extended periods of time

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At Colorado Occupational Medical Partners, our mission is to deliver the highest quality
of occupational health care and physical rehabilitation to return patients to their highest level
of function. Our team is dedicated to helping employers and patients, and we strive to develop
strong, positive relationships with a culture based on safety, transparency, empathy, and
trust. To find out more, find our location nearest to you.
Let Colorado Occupational Medical Partners be your source for occupational therapies and
care in Colorado.

ACTIVITY

I. Modified true or false. Write True if the statement is true; Write false if the statement
is incorrect, (2 points each)

__________ 1. Keep Safety Data Sheets (SDS or MSDS) for all chemical products in use at
your workplace, and make sure that they are easily accessible by your employees
__________ 2. Ergonomic hazards put strain on muscles, tendons, and other connective
tissues of the body. They can result from bad posture, not using dollies other mechanical
assistance, and repetitive or awkward lifting/movement.
__________ 3. Chemical hazards can be inhaled as gases or vapors, or come in contact with
skin as a liquid or solid. They can cause skin irritation, burns, respiratory problems, blindness,
or other serious health complications.
__________ 4. A risk assessment is an examination and evaluation of hazards present in a
workplace. It's the process of cataloging and classifying the various machines, equipment,
operational procedures, employee behaviors and habits, working conditions, and other
potential factors that could cause people harm.
__________ 5. Musculoskeletal disorders are an extremely common type of workplace injury.

II. Enumeration
1. List down hierarchy of control
2. key benefits in pprioritizing OHS at the business.

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WEEK 5

COMMON COMPETENCIES

UNIT OF COMPETENCY 1. PROVIDE QUALITY CUSTOMER SERVICE

Lesson Objectives: At the end of this lesson, the students should be able to:
1. Update knowledge of products and services
2. Assess needs of new and existing clients
3. Conduct client satisfaction survey

To ensure you provide the best customer service:

1. know what your customers consider to be good customer service.

2. take the time to find out customers' expectations.
3. follow up on both positive and negative feedback you receive.
4. ensure that you consider customer service in all aspects of your business.

Quality customer service involves providing efficient, quick, and friendly service to
customers as well as building strong relationships with them. It also entails responding to
customers' issues in time and handling any complaints swiftly.

How to deliver quality customer service?

Good customer service can be hard to come by. Establishing a team to provide quality
customer service can be even harder. That’s why companies need to be strategic in training
customer service reps.

Quality customer service is one of the key differentiators of good, bad, and indifferent
companies. With the important role that good customer service plays in helping to build good
relationships with customers, it is necessary to ensure that customers leave with a great
impression. This will not only make them feel appreciated and valued but will also make them
want to do business with your company in the future. In fact, customers who receive excellent
customer service are likely to return often and spend more. By recommending your business
to their colleagues, friends, and family, satisfied customers will help you to attract new
customers, clients that you will then retain through maintaining high quality standards in
customer service.

With customer service evolving so quickly, one of the questions that managers and
business owners have is: What is quality customer service? A simple good customer service
definition will help to answer this and act as a guide on how companies manage customer
interactions.

Quality customer service involves providing efficient, quick, and friendly service to
customers as well as building strong relationships with them. It also entails responding to
customers’ issues in time and handling any complaints swiftly. This is achieved by
understanding customers’ needs and meeting them, ensuring quality product design, and
offering customers several options for communicating and contacting customer service.

Why is good customer service important?

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Seven out of ten U.S. consumers say they have spent more money to do business
with a company that delivers great service. This goes to show how important good customer
service is when it comes to building relationships and doing business, especially since studies
show that it is more expensive to acquire a new customer than to keep a current one. Here
are the reasons why quality customer service is important.

Provides value-effective customer service programs: These emphasize treating

customers well, answering questions, responding to complaints, and exceeding customer
expectations. Such an approach keeps customers engaged and builds strong relationships.

Reduces employee turnover: Employees are likely to work for an employer who treats
customers fairly and recognizes the contributions of their staff. When a company delivers
great service, employees will be more engaged in their work and are more likely to stay
through challenging times.

Retains customers: Customers who are appreciated are likely to be loyal to the
company. Once the business comes across as trustworthy, there is a good chance existing
customers will keep on coming to make new purchases.

Creates endorsements: loyal customers will not only keep on doing business with the
company but will also help strengthen the brand through online reviews and private
endorsements. Companies that provide quality customer service will often get more new
customers from recommendations than from advertising messages.

Profits – One of the main goals of any business is to make a profit. Quality customer
services helps to retain existing customers and attract new ones, a factor that contributes to
higher revenue and a rise in profit.

Once companies understand the benefits of good customer service, they should also
learn the difference between great and subpar customer service. While in the latter case,
companies do the minimum to keep customers satisfied, the first case involves going beyond
keeping them satisfied to retain their loyalty. In the end, 51% of customers will not do business
with a company after one negative experience.

Examples of good customer service

The term “customer experience” is all the rage these days. As a result, there are
countless good customer service examples and good customer service stories. Check out
the following examples of good customer service stories and scenarios in everyday
situations.

Examples of good customer service in retail

Sometimes, you may run into a situation where the customer is actually the problem.
Handling these types of problems requires good customer service skills in retail. For instance,
if you own a store with a 10-day return policy that is clearly printed on the receipt, and the
customer wants to bring a shirt back 15 days after the purchase. To resolve the problem, you
can explain the policy, accept the return if it can be resold and is unworn. Then you will be
able to welcome the customer’s future business. In the end, the customer gets what they
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want and you don’t lose out because you can actually resell the dress. In situations like this,
you are able to provide the customer with the best customer service experience, which is a
win-win situation.

Examples of good customer service in a restaurant

In a restaurant, promptness is everything. However, being prompt doesn’t mean

hovering or rushing. It does mean giving the customers what they need when they need it.
When you provide good customer service experience examples, your customers will always
return to your restaurant for a pleasurable experience. Good customer service in the
restaurant industry also means welcoming and friendly service as well as being available.
When the customers can see hosts, managers, and waiters, it can increase their experience
because they know you are always available to help.

How to improve customer service in the workplace

Customer service is one of the keys to any successful business. This means that
companies that do not have it should make it a priority and find ways of improving customer
service. However, customer service has evolved over the years, making it important to
identify effective customer service strategies that will help you keep customers satisfied and
increase sales performance. Here are a few tips to help improve customer service in the
workplace.

Create customer service standards for the team to follow

Once the leadership understands the importance of customer service standards, they
will be in a position to define them for their organization. Creating customer service standards
will allow the team to know what is expected of them, enabling them to make the necessary
adjustments. In order to ensure that the practice is continuous and sustainable, the
management has to make it part of the company culture so that it forms one of the values
that guide employees’ conduct and business operations.

Improve good customer service skills with dedicated practice

Embracing habits that promote improved customer service can take time. This is why
it would be necessary to encourage practice as companies strive to improve customer
experience. One of the examples of good customer service skills is effective communication
in customer service. By communicating clearly, employees will be in a better position to
answer customer queries, provide information, and address complaints. However, effective
customer service skills can only be developed and strengthened through continuous and
dedicated practice as well as activities like role-playing. Some other skills to focus on include
patience, attentiveness, and problem solving.

Train reps on key procedures, processes, and other important knowledge

Before the relevant employees can better their customer service skills, they will need
to receive training on key procedures, processes, and other important knowledge. Today,
social media outlets provide a channel through which customers can communicate with their
favorite brands instantly. In order to meet the needs of your target market, reps have to know
how to handle a wide range of situations. Training will help them keep up to date with
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emerging trends that influence customer service, a factor that will place the company ahead
of the competition.

Look at every customer touchpoint

It is very critical that companies know and understand their customers in order to
deliver superior service. Looking at every customer’s touchpoint will not only help to
personalize messages but also respond through the right channel. With the numerous
communication channels that technology has brought about, businesses should have people
who are familiar with the platforms. In this way, the business will appear more human and
have increased visibility on the various platforms, a factor that will ensure excellent customer
service.

Enhance your customer service strategy

Any business that is looking to improve customer service must have a clear strategy
to help achieve set goals. Effective customer service techniques will not only serve the
customers better but also deliver the desired results. Managers can consult experts in this
field in order to come up with strategies that will ensure return on investment. Lessonly, a
simple training software that helps teams learn, practice, and do better work, can help to
ensure that the customer service strategy is implemented as required.

The strategies for providing excellent customer service here:

1. Understand customers needs.

2. Train empathy.
3. Encourage honest customer feedback.
4. Set up a framework to measure your team's performance.
5. Set individual and team goals.
6. Streamline manual processes.
7. Set and communicate service standards.

Learning outcome 1: Update knowledge of products and services

Importance of Product Knowledge in Customer Service

In the realm of customer service the important of product knowledge cannot be

understated. Unless there is a complete and all-round understanding of the products and or
services offered, it will be unlikely that you will be able to veer your customer’s decision
towards buying or even considering your offerings. Product knowledge will make your
customer service team sound confident, competent and efficient. Their conviction in the
company’s offering will be reflected when they interact with the customer leading to higher
possibility of a sale and customer satisfaction. Knowing all there is to know about the offerings
of the company will make it easier to recommend it the customer and also provide customized
solutions based on their needs.

Product knowledge is one of the key responsibility areas for the customer service
teams. It is the aptitude for understanding the company’s offerings thereby enhancing the
prowess of the customer service role. We would go as far as saying that all employees must
have a basic understanding of their company’s product or service but the customer service
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team along with the other front end teams must have thorough product knowledge. The more
you know, the better you get at delivering customer service excellence.

“Know what your customers want most and what your company does best. Focus on where
those two meet.” – Kevin Stirtz

It is a given that customer service staff must be skilled – having product knowledge is
one such mandatory skill. Knowledgeable staff members are naturally enthusiastic and as
humans we are more easily convinced by happiness and enthusiasm. Customers are happier
to interact with staff that is passionate and eager to divulge details about the products or
services and how these will benefit the business of the customer. This passion is a positive
reflection on the company as a whole allowing customers to trust the company with an
investment. It is for this reason that companies and their leaders have become famous and
enjoy the trust of their customers.

“We will ensure that associates continue to possess unsurpassed product knowledge
and maintain their dedication to customer service and respect for their colleagues and for the
communities in which they work and live.” – Arthur Blank

The main aim of customer service is to make every customer experience memorable
and positive. Great customer service builds and enhances the customer’s relationship with
the company. Superlative customer service comes from the staff that has a positive attitude,
empathetic outlook and politeness all strengthened by knowing exactly what their company
does and has to offer. Remaining updated on all the aspects of the product or service will
allow you to answer most of the inquiries at the first instance. Product knowledge will help
you to refrain from using jargon and assist in explaining to the customer as lucidly and
coherently as possible. The customers are relying on you to understand the product or service
and would appreciate every little amount of help you can offer. Be honest and upright and
don’t hesitate to admit that you don’t know something, which may happen if the product is
extremely technical. Tell them that you will find out and revert or get a subject matter expert
to respond. Make sure either of these things happens within the time frame provided. Your
customers will thank you and respect you more. Customers don’t expect you to be an
authority on everything, they only need to know that you value them and care enough to
resolve their problems. Product knowledge is an asset and will allow your company to forge
ahead of competition.

Gaining and upgrading knowledge of the product may not be easy for the non-sales
customer service staff. Time and training must be afforded if your customer service staff is to
competently field any product or service related queries.

 By applying previous knowledge or personal experience of a product or service

 Read the material available such as brochures, promotional communication and
catalogues
 Attend training conducted by the internal sales teams
 Looking up information available on various media on the products or service offered

These are just some of the ways to gain product knowledge for use to service your
customers with a high level of expertise. Explore the other possibilities and methods of
gaining product knowledge to be utilized in customer service. When you know well the
offering of your company, it would be effortless to present the features as being immensely
29
vital and useful to the customer. When you know – what the product does or can’t do, its
USP, its competency as compared to a competitors offering, benefits gained by other
customers by using your product or service and the advantages for the customer’s business
– you would be displaying product knowledge. These may be just the very basics of product
knowledge, but go a long way in engaging a customer long enough to get them interested in
your product or service. Displaying lack of knowledge just makes the customer feel that the
company as a whole is incompetent and he or she is dealing with blockheads. You can be
sure your customer or a prospective one will run away. Fast. Customers are now smarter
than before and will easily see through the sham of trying to fake knowledge and will not
hesitate to tell you so. With loads of information now available at the click of a button,
customers are better informed, more sophisticated and more discerning. Don’t even think of
fooling them with a pretence.

Product knowledge will even help in raising the level of customer service currently
provided by your company. Equipped with product knowledge, customer service staff will see
a perceptible rise in:

1. Communication abilities – when you understand a subject and have an in-depth

knowledge of it, you will be able to convey that knowledge to anyone. Irrespective of language
command and the kind of customer, the passion and enthusiasm for the offering would be
apparent and serve to influence the person listening

2. Excitement amongst buying circles for the offering. Wouldn’t you be more inclined to
buy after hearing happy and passionate knowledge display? Any initial doubts about the
product are sure to be wiped out from the mind of the customer. Enthusiasm is infectious –
pass it on to your customer through product knowledge.

3. Develops confidence in the company and its offerings. A confident front end team will
seal the deal and easily overcome the first obstacle of a customer’s initial apprehension.

4. Allow you to skilfully allay any doubts a customer may have. Customers will continue
to probe and ask pointed questions on the product or service, which can be answered
immediately and to their complete satisfaction only with superior product knowledge. Being
able to articulate clearly the benefits and high points of the offering will serve to satisfy the
customer.

Gaining product knowledge is time and energy well-spent and plays an indispensable
role in making the customer service staff great at what they do. The training and knowledge
requirement for front ending staff is different from your other staff members. They need
specialized training to deal with all kinds of customers and their varied questions. Managing
the dissemination of product knowledge and other skills must be a key deliverable for the
supervisory and manager level staff members.

We have learnt from our experiences that good attitude, people skills, communication
skills and product knowledge work in conjunction. Mastering all of these provide your
customer service staff with the necessary tools to ensure customer satisfaction. They also
serve to enhance the company’s reputation, increase sales, reduce complaints and issues
and provide growth stability to the company.

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“There is a problem when you think there is a contradiction between sales and service, when
they are inextricably linked. The fact is, if you are consistently making money, it is almost
always a sure sign that you are adding value to the other person, to the buyer.” – Spencer
Johnson & Larry Wilson

Learning outcome 2: Assess needs of new and existing clients

Know your customers' needs

However good your product or service is, the simple truth is that no-one will buy it if
they don't want it or believe they don't need it. And you won't persuade anyone that they want
or need to buy what you're offering unless you clearly understand what it is your customers
really want.

Knowing and understanding customer needs is at the centre of every successful

business, whether it sells directly to individuals or other businesses. Once you have this
knowledge, you can use it to persuade potential and existing customers that buying from you
is in their best interests.

This guide tells you what you need to know about your customers, how to use this
information to sell to them more effectively, and how to win business from your competitors.

 Why do your customers need you?

 What do you know about your customers?
 The customer's current supplier
 Ten things you need to know about your customers

Why do your customers need you?

Every business needs a reason for their customers to buy from them and not their
competitors. This is called a Unique Sales Proposition (USP). Your USP can be identified by
completing the phrase "Customers will buy from me because my business is the only..."

Your USP can change as your business or your market changes, and you can
have different USPs for different types of customer.

For example:
 a stationery store could offer a free same-day delivery service for its business
customers within a local area - an effective USP for businesses that need fast delivery
 the same stationery store could offer a 5 per cent discount to businesses that spend
more than $1,000 a month - this would be a USP for cost-conscious customers
 the stationery store could also make sure it offers the most comprehensive stock of
artists' materials in the area - a USP for local professional or amateur artists

All of these USPs can be effective because they are driven by what the customer looks
for when making a buying decision.
It's a good idea to review your USPs regularly. Can you tailor your products or services to
better match your customers' needs? Consider asking your customers why they buy from
you. This will tell you what they think your USP is - this may differ from what you think your
USP is.

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It's also useful to check constantly what your competition is doing. Remember - if your
competitors are doing the same, your USP isn't unique any more.

What do you know about your customers?

The more you know about your customers, the more effective your sales and marketing
efforts will be. It's well worth making the effort to find out:

 who they are

 what they buy
 why they buy it

If you're selling to other businesses, you'll need to know which individuals are responsible
for the decision to buy your product or service. For information on targeting decision-makers,
see our guide on how to target the right people in an organisation.
You can learn a great deal about your customers by talking to them. Asking them why they're
buying or not buying, what they may want to buy in the future and asking what other needs
they have can give a valuable picture of what's important to them.
Strong sales are driven by emphasising the benefits that your product or service brings to
your customers. If you know the challenges that face them, it's much easier to offer them
solutions.

It's also well worth keeping an eye on future developments in your customers' markets
and lives. Knowing the trends that are going to influence your customers helps you
to anticipate what they are going to need - and offer it to them as soon as they need it.

You can conduct your own market research and there are many existing reports that
can help you build a picture of where your customers' markets - and your business - may be
going.

The customer's current supplier

Chances are your potential customer is already buying something similar to your product
or service from someone else. Before you can sell to a potential customer, you need to know:
 who the customer's current supplier is
 if the customer is happy with their current supplier
 if buying from you would offer the customer any benefits - and, if so, what those
benefits would be

The easiest way to identify a potential customer's current supplier is often simply to ask
them. Generally people are very happy to offer this information, as well as an indication of
whether they're happy with their present arrangements.
If you can find out what benefits they're looking for, you stand a better chance of being able
to sell to them. The benefits may be related to price or levels of service, for example. Are
there any benefits your business can offer that are better than those the potential customer
already receives? If there are, these should form the basis of any sales approach you make.

Ten things you need to know about your customers

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1. Who they are
If you sell directly to individuals, find out your customers' gender, age, marital status
and occupation. If you sell to other businesses, find out what size and kind of
business they are. For example, are they a small private company or a big
multinational?

2. What they do
If you sell directly to individuals, it's worth knowing their occupations and interests. If
you sell to other businesses, it helps to have an understanding of what their business
is trying to achieve.

3. Why they buy

If you know why customers buy a product or service, it's easier to match their needs
to the benefits your business can offer.

4. When they buy

If you approach a customer just at the time they want to buy, you will massively
increase your chances of success.

5. How they buy

For example, some people prefer to buy from a website, while others prefer a face-
to-face meeting.

6. How much money they have

You'll be more successful if you can match what you're offering to what you know
your customer can afford.

7. What makes them feel good about buying

If you know what makes them tick, you can serve them in the way they prefer.

8. What they expect of you

For example, if your customers expect reliable delivery and you don't disappoint
them, you stand to gain repeat business.

9. What they think about you

If your customers enjoy dealing with you, they're likely to buy more. And you can only
tackle problems that customers have if you know what they are.

10. What they think about your competitors

If you know how your customers view your competition, you stand a much better
chance of staying ahead of your rivals.

Learning outcome 3: Conduct client satisfaction survey

The Importance of Customer Satisfaction Surveys

Your customers' opinions and feedback are two of the most important factors that
validate important decisions within your business, catalyzing your business’s sustainability
and growth.

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Their opinions also shape the customer lifecycle. If you don’t know what your customers think,
you have a lower chance of retaining them, delighting them, and enticing them to make future
purchases.

Without question, the voice of the customer is important. So, why don't we involve
them enough?

Sometimes we don't know how to.

How do you know if the customer is satisfied? Or dissatisfied? How do you decide to
work on a new feature, if you don't even know whether the customer needs it or not? What
do you think your customers expect from you? Did they find what they're looking for?

In this post, we'll dig into customer satisfaction survey questions and real examples
that you can use to inspire your surveys.
We’ll cover:
 Customer Satisfaction Survey Questions
 Best Practices for Creating Customer Satisfaction Surveys
 Customer Satisfaction Survey Template
 Customer Satisfaction Survey Examples

Customer Satisfaction Survey Questions

If you want to obtain valuable feedback from your customers, then you have to ask
them the right questions. Sharing information isn't always an easy task, and it's not the
customer's job to provide your business with constructive criticism. Instead, it's the surveyor's
responsibility to create a thought-provoking prompt that engages the participant.

If you're getting stuck on deciding what to ask your customers, here are some of the
types of questions we recommend including on your customer satisfaction survey:
Product Usage

When it comes to customer success and satisfaction, your business must collect
feedback about your product or service. If you don't, then it's more difficult to assess customer
needs and provide effective solutions.
Finding out how satisfied your users are with your offer provides your marketing and product
teams with valuable information that can be used to improve customer retention.

Some questions that you could ask in this section are:

1. How long have you been using the product?

2. Which alternatives did you consider before purchasing the product?
3. How often do you use the product or service?
4. Does the product help you achieve your goals?
5. What is your favorite tool or portion of the product or service?
6. What would you improve if you could?
7. Which product features do you consider the most valuable?
8. Which product feature do you use most often in your day-to-day?
9. What points of friction have you encountered while using the product?
10. If there was one new feature you could suggest, what would it be and why?
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Demographics

Demographics are essential to marketing and sales teams because they make it
easier for companies to segment customers into buyer personas. By grouping customers
based on key characteristics, this categorization helps employees visualize their target
audience. Marketing and sales teams can then use that information to pursue leads that are
most likely to convert.
When asking these types of questions, be sure to embrace a proactive and inclusive
approach. These questions shouldn't be mandatory, so always provide an option for
customers to omit an answer. Your goal is to extract honest information, but you don't want
it to come at the expense of the customer's comfort.

Here are some demographics questions that you should consider including in your next
survey:

1. How old are you?

2. Where are you located?
3. If applicable, what gender do you identify as?
4. What is your employment status?
5. What is your marital status and do you have children?
6. What is your level of education?
7. What is your approximate annual household income?
8. Where do you work and what’s your job title?
9. What industry are you in?

Psychographics

Psychographic questions dig deeper than demographic questions, uncovering

information relating to your customers’ preferences, habits, behaviors, and tendencies. It’s
not about who your customer is, but why they do what they do.
Psychographic questions may seem intrusive, but they’re highly valuable pieces of
information that give you a glimpse into the reasons for your customer’s buying habits.
They’re usually phrased concerning your industry and not specifically about your product.

These questions are instrumental in customer satisfaction surveys because you can
indirectly find out how you can better serve your customers.
Here are a few questions you might ask:

1. Do you prefer to shop on your phone or your laptop?

2. What’s your most important priority when (insert something related to your industry)?
 E.g. if you’re a mortgage lender, you might ask, “What’s your most important
priority when buying a home?”
3. What’s your biggest roadblock when (insert something related to your product)?
 E.g. if you’ve created a recipe-sharing app, you might ask, “What’s your biggest
roadblock when trying to access the best recipes online?”
4. How much time do you spend on (insert social media platform you’d like to use for
advertising)?
5. How much does sustainability matter to you in purchasing a product?
6. How do you feel about (insert product type)?

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 E.g., if you sell women’s razors, you might ask, “How do you feel about women’s
razors?”
7. What do you dislike about (insert product type)?
8. How many hours a day do you spend doing (insert something that relates to your
product)?
 E.g. if you sell ergonomic car seats, you might ask, “How many hours do you spend
driving?”

Satisfaction Scale

Sometimes there are aspects of your offer or business that you want feedback on, but
they aren't things that your customers are actively addressing. In these cases, it helps to be
direct and ask customers how they feel about these specific details.
Before you do, you'll have to determine a quantifiable way to measure their responses.
Adopting a satisfaction scale section is a great way to create a consistent approach to
quantifying this subjective survey feedback. A few ways that you can implement this scale
are:
 A scale measuring from 1 to 10 (or another number). 1 means the customer was
extremely unsatisfied and 10 means the customer was very satisfied.
 A descriptive scale that measures a customer's response from unsatisfied to satisfied.
The customer is given a shortlist of responses to choose from that range from "very
unsatisfied" to "very satisfied."
 A picture scale that uses images to symbolize customer satisfaction. For example, you
can use happy, sad, and indifferent emojis to quickly gather customer feedback.

Example questions include:

1. On a scale of 1 to 10, how satisfied are you with your in-store experience today?
2. How likely are you to recommend (insert product or service) to others?
3. Rate your satisfaction with our team in resolving your issue.
4. Did you feel that our team answered your inquiry promptly?
5. Do you agree or disagree that your issue was effectively resolved?
6. How likely are you to purchase again from us?
7. How likely are you to return to our website?

Open-Text

Open-text questions are survey questions that allow the participant to write out their
response within a text box. This allows users to fully express their opinions using
the customer's voice instead of the company's pre-written responses.

While they can sometimes be time-consuming to analyze, these questions encourage

the participant to be honest and give them the freedom to address any topic. Open-text
questions can be an instrumental asset when determining the core values of your customers.

Here are open-text questions you can ask in your next survey:
1. In your own words, describe how you feel about (insert company name or product
here).
2. How can we improve your experience with the company?
3. What's working for you and why?
4. What can our employees do better?
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5. How can our employees better support your business’s/your goals?
6. How can we improve your experience with the website or the in-store location?
7. Why did you choose our product over a competitor’s?
8. What would be one word you’d use to describe us and why?
9. Do you have any additional comments or feedback for us?

Longevity

In the last section of your survey, you'll want to include questions about the steps that'll
happen after submission. These questions permit your team to follow up with the participant
in the future.

This comes in handy when you roll out changes and want to get updated feedback from
the same customers that were surveyed earlier. You can phrase these types of questions in
a few different ways:
1. May we contact you to follow up on these responses?
2. In the future, would you be willing to take this survey again?
3. If we were to update (insert product feature here), could we reach back out to talk
about these changes?
4. Can we connect you with a customer success manager via chat?
5. Would you be open to discussing upgrade options for your product?
6. Can we send you a list of useful resources for getting the most out of your product?

While measuring customer satisfaction can be tricky to manage, asking effective

questions can reveal highly valuable customer insights — and the questions we’ve listed
above will do the trick.
Next, we’ll go over best practices for creating customer satisfaction surveys.

Best Practices for Creating Customer Satisfaction Surveys

Designing a customer satisfaction survey is no easy task. Luckily, there are a few best
practices that will help you increase response rates and get much-needed feedback from
your customers.

Make sure you choose the right survey tool.

Without the right customer survey feedback tool, you’ll have a whole lot of data and
no way to distill it or glean valuable insights from it. Choose a tool that gives you the ability to
ask different types of questions, examine basic metrics such as response rates, and track
customer sentiment over time.

Always ask short and relevant survey questions.

No one enjoys spending a lot of time answering surveys, so be sure to keep

your survey questions short and to the point. When asking open-ended questions, keep the
minimum character count short, make the question optional, or offer an incentive.

Send the surveys at the right time.

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Give a lot of thought to the placement of your surveys throughout the customer
journey. It wouldn’t make sense to send a survey to someone who’s only just subscribed to
your blog — nor would it make sense to send one year after a customer stopped doing
business with you.

When do you send a customer service survey? Send it after a lengthy interaction with one
of your teams, a few weeks after purchase or onboarding, and a few times throughout the
year to measure the customer’s happiness.
Always A/B test your surveys.

A/B testing is an excellent way to find out whether your surveys are as effective as they can
be. Simply create two versions of the survey with minimal changes. You can change the order
of the questions, the number of questions, the wording, and even the color of the buttons.
(Change only one thing at a time so you can track its effectiveness.)

Send both out to a segment of your customer base and find out which one generates
more responses.

Thank your customers for their feedback.

Whether it’s through a gift card, a discount, or simply a nice email, always thank the
customer for their time, regardless of the nature of the feedback.
Ready to craft your own customer satisfaction survey? Use the template in the next section
to get started.

Customer Satisfaction Survey Template

The following customer satisfaction survey template can help you get answers from
your customers in one easy step. It asks one simple question: “How satisfied were you with
your experience today?” If you’d like, you can add more questions to get more details from
your customers.

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ACTIVITY

Application: Group your self into 10 create a Customer Satisfaction Survey Template.
Choose what product you want to used to conduct CSAT.

WEEK 6
UNIT COMPETENCY 2. COMPLY WITH QUALITY AND ETHICAL STANDARDS

Lesson Objectives: At the end of this lesson, the students should be able to:
1. Learn to Assess quality of received materials
2. Know to Assess own work/output
3. Submit oneself to third party assessment
4. Relate material properties to product and process quality.
5. Enumerate the factors that must be taken into consideration when choosing the right
material for their components and assemblies

Risks

Business technology management is about constantly balancing the opportunities

brought by technological innovations and dealing with the possible risks when deploying
them. When selecting new technology to be deployed, the choice can prove to be either
successful or unsuccessful. Building organisation-specific solutions can equally turn out to
be a bad investment instead of bringing further business benefits. In the run phase, the risks
can concern solutions that are heavily used by the business but have severe security and
maintenance issues. The level and amount of risks the company is willing to accept is
ultimately a decision that needs to be made by the business management.

Organisations have many alternatives to deal with risks. They can mitigate the risk by
taking actions that make risk probability and impact smaller, therefore lowering the overall
residual risk to an acceptable level. They can also decide not to take the risk, accept to live
with the risk or even transfer the risk somewhere else. Another good practice is to calculate
the costs of a risk and use the calculation as basis to either reduce an investment’s priority
or boost the implementation of an enhancement.

Business technology risks can be divided into three categories: quality, business
continuity and compliance risks.

Quality risks

 Non-vital technology usage: The organisation is dependent on technology that is no

longer succeeding in the market and is in decline. The risk is that an organisation falls
behind the competitors in development and functionality. The Business Technology
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Management Officer (BTMO) and Chief Enterprise Architect have the risk governance
accountability.

 Bad implementation: The organisation fails in efficiently implementing the technology

into business, the implementation runs heavily over budgets and leaves the business
in a difficult situation living between old and new. The Business Technology Portfolio
Officer (BTPO) has the risk governance accountability.

 Errors in technology: The technology, typically the software, has errors resulting in
unwanted behaviour and/or incorrect data. Errors in technology are costly to detect
and correct, but more importantly, they may risk the organisation’s reputation. Service
owners have the risk governance accountability.

Business continuity risks

 Security threat: The organisation’s personnel, network, data, systems and devices
are vulnerable to security threats that may damage or even destroy some valuable
assets. It should be noted that approximately 80% of all security threats can be
avoided with employees’ correct actions and only 20% with technology. The Chief
Information Security Officer (CISO) has the risk governance accountability.

 Operational failure: Includes major issues in technology operations that may cause
business downtime which in turn can cause a negative impact on costs, revenue and
reputation. The Business Technology Operational Officer (BTOO) has the risk
governance accountability.

 Unsupported technology: Technology which is no longer supported and therefore

more likely to have major issues. Usually the recovery of unsupported technology
takes more time than with supported technology. The Business Technology
Management Officer (BTMO) has the risk governance accountability.

Compliance risks

 Legal non-compliance: If the organisation is not compliant with legal and regulatory
rules, it takes a major risk of legal case or costly sanctions. The Sourcing Lead has
the risk governance accountability.

 Commercial non-compliance: The organisation must have a licence to use the third
party technology. If not, the organisation is in a commercial non-compliance situation
which might have costly effects. The Service Owners and Sourcing Lead have the risk
governance accountability.

Risk management is a wide-spread responsibility, and the Business Technology

Governance Officer (BTGO) should have an overarching accountability to organise adequate
risk management control points.

Quality

Quality can be considered as an attempt to minimise waste. Anything exceeding the

minimum amount of time, required material and effort or certain level of costs is basically
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waste that could be eliminated. Using key suppliers, empowering staff, having extra capacity
and being patient, flexible and comprehensive is a good start for eliminating the waste.

Quality problems usually stem from systemic faults, not from people or tools. Quality
management implies good communication between the stakeholder and the provider,
resulting in delivering the solution that meets the stakeholder’s expectation. A common way
to ensure that the provided services are meeting the quality standard is to use sanctions in
case of deviation. However, positive reinforcement, such as rewarding positive
accomplishments have been proven to work even better.

For information systems and data processing, it is advisable to state and control the
principles of business practices, systems and data processing integrity and protection.
Business practice principles describe how products and services are delivered, and how to
respond to claims and complaints. System and data processing integrity principles describe
the controls guaranteeing the correct completion and invoicing of orders. Information and
data protection principles describe controls to ensure that the information and data is
available for the intended users and use only and disposed securely when no longer relevant.

Products and services consist of supplier chains that require recurring reviews as
agreements, processes and systems. Formal change control is necessary to understand the
impact and avoid waste in the implementation. It tells who makes the changes, what changes,
when, why, and how and where the changes effect and in that way, guides the design and
implementation of resources in the most optimal way.

As quality is about waste minimisation, it is about assessing effectiveness. In systems

engineering, effectiveness is assessed at each phase, from discovering the needs to
implementing the system. It should not be a gate at the end of the line but present at each
phase and on everyone’s job description.

Compliance

Compliance refers not only to conformity in fulfilling official requirements, such as

being compliant with laws and regulations, but also to operations and processes to comply
with policies, agreements and licence terms.

Regulatory compliance refers to the act of being compliant with a binding ruleset
issued by a public or private authority which also supervises the set rules and can apply
sanctions in response to rule violations.

The rules and sanctions can vary a lot by country, location and industry. For example,
there are different regulations for financial, healthcare and manufacturing industry sectors
and regulatory structures in one country may be similar but with different nuances in another
country.

As the guidelines can change from year to year, the compliance governance should
be an ongoing process. Larger enterprises usually have their own compliance structures built
in their company structure. Small and mid-size organisations should also establish corporate
compliance programmes to help to govern policies and compliance and to make sure that the
company and its employees follow the laws, regulations, standards, and ethical practices that
apply to the organisation.
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Commercial compliance is mainly related to licences and is typically carried out by:

 Licence compliance and management, which is an iterative process of maintaining

processes and policies making the assets controllable and manageable
 Clearly defined roles and responsibilities that outline who can authorise the purchase,
how the licensing arrangements are agreed, who carries out the implementation and
how these processes are communicated to the employees or users. If procurement is
not centralised and businesses acquire services or solutions independently, there is
always a higher risk of being non-compliant
 Well-maintained documentation in order to efficiently maintain and optimise licences
and acquire information such as: business needs, purchased items, valid entitlements,
solutions, services or software in use, lifecycle data, usage policies, etc.

Ethics

Ethics in business has become a popular discussion topic lately, especially because
artificial intelligence (AI) and machine learning are quickly becoming an integral part of many
innovative solutions. The debate concerns transparency, accountability and fairness, and
how they are calculated and coded in the software and who eventually makes decisions on
how the algorithms operate, considering basic human values.

Responsible development of technology solutions and services requires clear processes

and a formal code of ethics from design to operating the services. In practice, the required
transparency and better accountability of automated tools can be addressed considering at
least the following:

 Establishing ethical guidelines, including the principles and ways of handling ethical
questions related to the development of services
 Establishing a role that oversees that the ethical questions are raised and taken care
of.
 Proactively raising awareness and concerns related to ethical questions, across all
businesses and organisations
 Training stakeholders such as software developers or managers to consider the
ethical stand in their respective organisation
 Identifying possible harm or damage that could be caused by technology innovation
and how to remediate its consequences

Products, solutions, and services contain countless lines of code which make algorithm-
based decisions difficult to trace back. Clear and transparent processes with shared ethical
stances promote responsible development of services and help to reduce the risk of violating
human rights or legislation.

Learning outcome 1: Assess quality of received materials

1. Selection of material- Material selection is one of the most commontasks for design
engineering. The ability to assess the material’s impact on the performance of a product is
crucial for reliable performance. Sometimes, buyers are also considering the label or name
of the company which are producing great quality of materials and are known in the market.
Examples are the name HP for printer and Intel for some computer hardware.
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2. Testing of material-The testing of material properties is widely understood to be the key
to obtaining data for a project, performing failure analysis, or understanding material
interactions. Material testing also provides information on the quality of incoming and
outgoing products. Inspection test equipment and techniques are demonstrated for a wide
range of materials and assemblies during the class. This provides the participants with both
knowledge of the common failure modes.

3.Cost of material-The cost of material is also considered when buying or selecting materials
for a specific project. The amount may vary but never taken for granted the quality and the
reliability of the material. Will you buy material which is less expensive but worst quality? Will
you buy material which you cannot afford? People look for places which can meet their
standards and right cost for materials to buy

Characteristic of common materials for increased security is also a great factor in the
design and planning process. Evaluation of longevity criteria and assessment of site
environmental factors are vital to project planning. Specific knowledge about the project and
general commonsense must dictate design and material selection. Although many materials
can offer enhanced protection, often the most cost-efficient and readily available material that
provides reasonable life expectancy for the project must be considered

Learning outcome 2: Assess own work/output

Evaluating Your Own Performance

1. Check Your Attitude. "Attitude is very important," says employment consultant Rick
Waters.
2. Be Reflective.
3. Assess Your Performance Against the Job Specifications.
4. Keep a File.
5. Find out the Supervisor's Expectations.
6. Get Feedback from Others.
7. Be a Team Player.
8. Plan Ahead.

Evaluating Your Own Performance

Clearly, it's in your best interests to take a hard look at your performance before your
boss does. You also have to assess yourself from your boss's point of view. Maybe you'd
understand someone who left 10 minutes early on a Friday -- but would your boss?

Robert Wilson is a partner in an employment consulting service called Job Bridge, as

well as an author and a video producer of employment resources.

"At some point, you have to assess what you think is good and bad about your
performance with what the supervisor thinks is good and bad, because he or she is the one
that counts."

The following eight steps will help you help yourself:

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1. Check Your Attitude

"Attitude is very important," says employment consultant Rick Waters. "I meet with a
lot of employers, and they tell me the first thing they look for is a person with a good attitude.
Doing the work properly is only part of the equation. The other part is your attitude.

"Do you come in late, leave early, spend time talking to friends instead of working,
dress inappropriately, phone in sick when you want a day off, help yourself to company
supplies for your personal use or are you rude to other people?
"Any of these things will earn you the reputation of someone with a bad attitude."

2. Be Reflective

"Every day on your way home from work, think about how the day went and what you
accomplished. Ask yourself what went well, what didn't go well, and what you could have
done better," advises Carol Coe.
She leads a group of teachers that help one another with self-assessment.

"Get in the habit of reflecting on your performance. Every week, set job-related goals
for yourself. Do it in writing because that helps to clarify your thoughts. Then at the end of the
week, view your goals to see how you did."
Kerry Mahoney, a university training and development coordinator agrees whole-heartedly.

"If you are working on a project, ask yourself what went well, what didn't go well, and
what happened. It's OK to make mistakes, but not the same mistake twice."

3. Assess Your Performance Against the Job Specifications

"There is no way you can assess yourself in a vacuum," says Robert Wilson. "At some
point, you have to assess what you think is good and bad about your performance with
what the supervisor thinks is good and bad."

a. If you have been given a job description, study it carefully and give yourself a thorough
and honest appraisal. How are you doing compared to what your job description says
you should be doing?

If there is no job description available, then write out your own specifications for
the minimum standards for performing your job. Then, rate yourself on how well you
have met those standards.

"It's very important to be both honest and thorough," says Wilson. "This is for
your eyes only, so be brutally honest."

b. If there are different aspects to the job, break those tasks down into a list and write
down what you have done to complete each task. Once again, this is for you alone,
so there's "no need to sugar-coat the deficiencies," reminds Wilson.

"Write down the good things you have done, and also the things that you have
been able to cover up. Then write the things you haven't done at all and where your
below-average performance is sticking out there for all to see."
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c. Compare your self-assessment with any physical documents that confirm your self-
assessment.

4. Keep a File

It's important to keep copies of any documents that directly or indirectly give some
indication of your performance level.

This could be letters, memos, reports, proposals or e-mail printouts that give some
clue as to your participation in departmental activity. Be sure to keep records of any occasions
when you may have exceeded expectations or gone beyond the call of duty.

"Maybe you managed to help out when there was a crunch," says Wilson. "Keep
records of it, because you may forget later on when it's time for your performance evaluation."

The record will be useful if you need to defend yourself against a negative review from
the boss, or for documentation when asking for promotions or raises. It is also useful for
updating your resume or for collaborating accomplishments for your next job.

"You should keep this file at home," adds Wilson. "That way, it won't be found on your
day off and misinterpreted by people at work."

5. Find out the Supervisor's Expectations

a. "Make every effort to find out what the job involves from the boss's point of view," says
Sylvia Ho, a lawyer specializing in employee relations. Ho is the workplace coach for
iVillage and the employee advisor for the Monster.com job board.

"Often on the first day, the boss shows you the ropes and invites you to ask for
a meeting if you have any questions later on. Take him or her up on that offer."

"Establish communication with the supervisor right from the beginning," agrees
Mahoney. "Ask if he or she is satisfied with your work and if there are suggestions as
to how you can improve."

b. Try to discover any additional expectations that the supervisor may have, then meet
or exceed those expectations. Look around you, talk and gather information.

For instance, if you are a cashier, there are some expectations that go along
with the job, such as showing up on time and being accurate.

There may be other specifics that the supervisor appreciates. Try to find out
what they are. For instance, "If you are a cashier, there may be someone to bag the
groceries. You might help with the bagging. This would be exceeding expectations,"
adds Ho.

6. Get Feedback from Others

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The experts agree that getting feedback from other sources is very important to your
self-evaluation.

a. "Ask some friends you trust if they agree with your evaluation. Or approach someone
in your organization that is obviously doing a good job and is well respected -- perhaps
someone from a different department.
"Tell them you are not fishing for compliments, but you are looking for an honest
appraisal," says Wilson.

"It's important not to depend on just one opinion, though. You need at least two,
and if they are very different, you will need three."

b. When you identify deficiencies, develop a strategy for eliminating the weakness. "If
you have already done this, you will be way ahead of the game," adds Wilson.

In your records, write down what you have done to improve these areas and
what the results of your efforts have been. During your formal performance evaluation,
you will be able to show the supervisor what you have done.

"Your supervisor will be very pleased that you have gone this far on your own.
He or she will be trained to help you work out a way to improve still further," says
Wilson.

c. "Find a mentor," suggests Mahoney. Mentors are supervisors or colleagues, usually

in a senior position to you, who offer guidance, feedback and advice from time to time.
Look around your organization and find people you admire. Talk to them and see if
they are willing to give you some guidance.

7. Be a Team Player

"Be a team player and not an independent merchant," says Ho. "You need to
understand the dynamics of the group. If you are not a team player, you will get thrown out
of the loop."

Newcomers to a workplace are not automatically accepted into the group. "The group
has to rediscover how to work together," says Wilson. Every workplace has "unwritten rules"
-- the expectations that don't appear anywhere in writing, but which people must abide by in
order to be accepted as one of the team.

"Joining the team depends on fragile interplay, communication, ability, the hierarchy
of who reports to whom and the egos of the people involved at every level.

"In some groups, you will find measures of fear, envy, jealousy, disrespect, and you
will have to deal with those things as well," says Wilson.

"Really watch and observe how things are done," says Mahoney. Network, research,
and talk to people. "And in the first few weeks on the job, it is a good idea to do more observing
than talking."

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"And be really careful about dating someone from work," offers Waters. "It is especially
unwise to date someone that you supervise or who supervises you. A lot of people don't
understand this and they get into serious difficulties.

8. Plan Ahead

Think ahead to where you want to go in the organization or in your career. Look for
ways to increase your responsibilities. "If you are not busy, take the initiative and figure out
how to get some new skills. Look for people who are busy and ask if you can help on their
project," advises Mahoney.

Have a development plan for yourself and let your supervisor know your interests.

For example, if you are doing well in your present job but you are interested in learning
public speaking, you might ask your supervisor if they would give you some added
responsibilities where you will have an opportunity to practice speaking in public.

Learning outcome 3: Submit oneself to third party assessment

Steps in the third-party risk assessment process include:

1. Identifying potential risks posed by all your third-party relationships;

2. Classifying vendors according to their access to your systems, networks, and data;
3. Reviewing service-level agreements (SLAs) to assure that vendors perform as
expected;

Third Party Information assessment

The Third Party Security Assessment (TPSA) is a due diligence activity to gain a level
of assurance with the overall security of our suppliers. It can be treated as part of the
procurement process or carried out with existing suppliers.
A common sense approach for assessing third-party risk

Third party security assessment

The Information Security Team can support your division, department or faculty to
identify and mitigate risks associated with using third-party services and suppliers who
process University data. Whether it’s a new or existing relationship, the results of an
assessment will better prepare you to make the right decisions about how to manage your
suppliers.

What we offer

The Third Party Security Assessment (TPSA) is a due diligence activity to gain a level
of assurance with the overall security of our suppliers. It can be treated as part of the
procurement process or carried out with existing suppliers. It involves sending the supplier a
list of security-related questions about their control environment, and uses the expertise of
the Information Security Team to assess the responses.

Benefits for you

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 Gain active assurance that suppliers are protecting your data
 Reduce the risk of information security incidents
 Make managers more aware of the supplier risks to your data
 Standardised assessment methods ensure a consistent approach to measuring
supplier risk
 Compliance with legal and policy requirements
 Enable informed decision making when selecting new suppliers

How it works

The service is available to all parts of the collegiate university. The service includes:

 Assistance with determining the level of risk based on the nature and volume of the
data involved
 Assessing the security controls and contractual arrangements of the supplier to
determine if they are fit for purpose
 Providing advice, assistance and support when dealing with supplier queries and
negotiations
 Making recommendations to help you decide whether the supplier’s security is
sufficiently mature

What you need to do

Firstly, take a look at our Working with third parties page for further guidance.Then if
you are interested in this service, please send a completed version of the TPSA
questionnaire to [email protected] or contact us in advance if you have any queries.

ACTIVITY

Self Quiz No 1. Modified true or false. Write True if the statement is true; Write false if
the statement is incorrect, (2 points each

____________ 1. Think ahead to where you want to go in the organization or in your career.
Look for ways to increase your responsibilities.
____________ 2. "Be a team player and not an independent merchant," says Ho. "You need
to understand the dynamics of the group. If you are not a team player, you will get thrown out
of the loop."
____________ 3. Robert Wilson is a partner in an employment consulting service called
Job Bridge, as well as an author and a video producer of employment distribution.
____________ 4. This provides the participants with both knowledge of the common failure
modes.

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____________ 5. The cost of material is also considered when buying or selecting materials
for a specific project.
____________ 6. Establishing ethical guidelines, including the principles and ways of
handling ethical questions related to the development of services
____________ 7. Regulatory compliance refers to the act of being compliant with a binding
ruleset issued by a public or private authority which also supervises the set rules and can
apply sanctions in response to rule violations.
____________ 8. Organisations have many alternatives to deal with risks.
____________ 9. Ethics in business has become a popular discussion topic lately, especially
because artificial intelligence (AI) and machine learning are quickly becoming an integral part
of many innovative solutions.
____________ 10. Quality can be considered as an attempt to minimise waste. Anything
exceeding the minimum amount of time, required material and effort or certain level of costs
is basically waste that could be eliminated.

Enumeration No. 2: Enumerate the following

1. Enumerate the benefits for you.

2. Enumerate the eight steps that can help yourself.
3. Business technology risks three categories

PRELIM EXAMINATION WEEK

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WEEK 7
UNIT COMPETENCY 3: PERFORMING COMPUTER OPERATIONS

Lesson Objectives: At the end of this lesson, the students should be able to:
1. Demonstrate an understanding of concepts and underlying principles in performing
computer operations.
2. Identify the components of computer and its function;
3. Understand the steps to follow in word application;
4. Perform word application within ergonomic guidelines;
5. Get to know programs to be used to access information;
6. Perform keyboarding techniques and shortcut keys;
7. Produce output data using computer system
8. Find out vital information using the internet.
9. Apply maintenance to computer equipment and systems.

Performing Computer Operations

Topic 1 Understanding the Computer System As an aspiring computer technician, it is

very important to know the different components of a computer system. These are the
hardware, software and peopleware. Each component plays an important role, without each
other computer systems will not work properly.

HARDWARE Computer hardware is the collection of physical elements that constitutes a

computer system. Computer hardware refers to the physical parts or components of a
computer.

Major hardware components of a computer system The following list represents a basic
set of hardware found in most PCs.

1. System Unit- The main part of a microcomputer, sometimes called the chassis. It
includes the following parts: Motherboard, Microprocessor, Memory Chips, Buses,

Ports, Expansion Slots and Cards. A System unit is the brain of a computer. It is
responsible for all functions and processes.

Hardware has two categories: it can be an input or output device. Input device is any
peripheral (piece of computer hardware equipment) to provide data and control signals to an
information processing system such as a computer or other information appliance.

On the other hand output device used to communicate the results of data processing
carried out by an information processing system (such as a computer) which converts the
electronically generated information into human readable form

A. INPUT DEVICES

1. Keyboard - the primary input device used to communicate with the computer. A computer
keyboard closely resembles a conventional typewriter keyboard with the addition of
numerous keys that are used specifically for computing functions.

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2. Mouse - The mouse is another input device used to point at objects on the computer
monitor and select them.

3. Touch Screen - A display screen that is sensitive to the touch of a finger or stylus.

4. Light Pen - A light-sensitive stylus wired to a video terminal used to draw pictures or select
menu options.

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5. Digitizer Tablet - A graphics drawing tablet used for sketching new images or tracing old
ones. Also called a "graphics tablet," the user contacts the surface of the device with a wired
or wireless pen or puck

6. Scanning Devices- A device that can read text or illustrations printed on paper and
translates the information into a form which the computer can use.

7. Microphone – It allows the user to speak to the computer in order to record a voice
message or navigate software.

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7. Microphone – It allows the user to speak to the computer in order to record a voice
message or navigate software.

8. Web Camera – used in transmitting live images over the World Wide Web.

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B. OUTPUT DEVICES

1. Monitor - It displays information in visual form, using text and graphics. The portion of the
monitor that displays the information is called the screen or video display terminal. There are
3 types of Monitor these are the CRT, LCD and LED Monitors

2. LCD Projectors - utilize two sheets of polarizing material with a liquid crystal solution
between them. An electric current passed through the liquid causes the crystals to align so
that light cannot pass through them. Each crystal, therefore, is like a shutter, either allowing
light to pass through or blocking the light.

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3. Printer - - A device that prints text or illustrations on paper. There are different types of
printer, these are Ink-Jet or Bubble-Jet Printer, Laser Printer, LCD and LED Printer, Line
Printer and Thermal Printer.

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4. Speakers – It is used to play sound. They may be built into the system unit or connected
with cables.

SOFTWARE

The set of instructions (also called a program) that guides the hardware to operate effectively.
Software is split into two main types: System Software and Application software.

Comparison of System Software and Application Software

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PEOPLEWARE

It refers to people involved in the data processing operations such as the system
administrator, office workers, students and others.

Topic 2 Word Application

Being able to use a word-processor is necessary in today’s society. Few people use
typewriters when a computer provides a better alternative. There are clear advantages of
using a word-processor compared to the usual method of writing on paper or typing with a
typewriter. Users should appreciate the use of a word-processor and be encouraged to use
it for most writing tasks.

A. OPENING A WORD APPLICATION

There are many ways to open a word application

✔ Use the start button, then select Microsoft office, and finally select Microsoft word
✔ Use a shortcut on the desktop, double click the MS WORD icon.
✔ Use the shortcut keys by pressing the windows logo from the keyboard and letter R at the
same time. A dialog box on the left downside will appear, type the word “WINWORD” on the
search bar and then click the OK button.

B. FORMATTING A WORD APPLICATION USING BARS

1. Title Bar

This bar is referred to the file name and the title of the program. In this case, the
program is called Microsoft Word.

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2. Toolbar

It is located at the top of your computer screen. It displays various sections that give
you options for formatting, styling, and saving your document.

3. Home Tab

The Home Tab is Microsoft Word’s standard view. This is the view most widely used
and allows you to format text by Font Style, Font Size, Bold, Italic, Underline, Alignment,
Numbered List, Bulleted List, Indentation, Spacing, and Font Color.

4. Insert Tab

It contains any additives you want to place in your document, including but not limited
to: Tables, Online Picture/Clip Art searches, Headers, and Footers. These icons are
convenient and will bring up a dialogue box to give
you further options when clicked.

5. Design Tab

It contains different styles of page formatting. When you type, your layout will
automatically match the format selected. It also allows you to change the color scheme,
watermark, and paragraph spacing of the document.

6. Layout Tab

It contains icons for page setup and paragraph actions, such as Margin, Orientation,
Size and Columns.

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7. References Tab

It makes especially simple to add Table of Contents, Footnotes, Bibliographic

Information, Indexes and Citations.

8. Mailings Tab

It is for post-office related uses. If you wanted to create custom Envelopes or Labels,
this is where you would find such actions.

9. R9. Review Tab

This is where one can find Spelling & Grammar, the built in Thesaurus and Dictionary,
you can Track Changes, Check Word Count, and Show/Add Comments.

10. View Tab

It allows you to change the views of your document.

C. SAVING THE DOCUMENT

Before you begin to type, you should save your document. To do this, go to File >
Save As (Command + Shift + S). Microsoft Word will open a dialog box where you can specify
the new file’s name and location where you want it saved. Once you have specified a name
and a place for your new file, press the Save button.

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D. COMPUTER ERGONOMICS

There are various health problems associated with the regular use of computers, such
as stress, eyestrain, and injuries to the wrists, neck, and back. Employers must take steps to
protect employees whose work involves the regular use of computers.

Computer ergonomics is the discipline of matching the task to the worker using the
most appropriate equipment to optimize human well-being and overall performance. This can
be simplified to ―Modify the workplace, not the individual".

Have a look at these top tips to ensure that you work safely and comfortably

1. The right lighting can reduce eyestrain, neck strain, and headaches. Sunlight is the best
light, but make sure it doesn't create glare on your computer screen.

2. The proper desk will let you find the perfect working position. It should be deep enough to
support your arms when you work at the computer.

3. Place your computer screen at eye-level or just below. For optimal comfort, set it about 45
cm (18 in.) from your face.

4. Sit up straight in your chair. Keep your feet flat on the floor and your knees slightly lower
than your thighs.

5. Choose an office task chair that lets you tilt forward to reach objects in front of you and
backward to stretch your arms when you're tired.

6. When you type, hold your fingers, wrists, and lower arms in a straight line from your
keyboard.

7. Keep equipment that you use a lot, like your telephone and computer keyboard, within a
distance of about 75 cm (30 in.) when you're sitting at your desk. Keep other storage and
equipment farther away. This encourages you to change working positions during the day.

Topic 3 Selecting Program for a certain Task.

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Programs are designed to help the user to perform singular or multiple related tasks.
Examples of application software programs are as follows:

1. Word processing software - Creates, edits, saves, and prints documents.

Examples: MS Word, WordPerfect, Ami Pro, MacWrite.

2. Spreadsheet software - An electronic spreadsheet consisting of rows and

columns are used to present and analyze data.

Examples: MS Excel, Lotus 123, Quattro Pro.

3. Database management software - Used to structure a database, a large collection of

computer programs. Data is organized as fields and records for easy retrieval.

Examples: MS Access, dBase, FoxPro, Oracle.

4. Graphic software - Graphics programs display results of data manipulation for easier
analysis and presentation.

Examples: Macromedia Flash, Harvard Graphics, 3D Studio Max, Adobe Photoshop.

KEYBOARD TECHNIQUES

Touch typing is a technique for you to type documents quicker with accuracy using
your 10 fingers without looking at the keyboard. In the home key position, your fingers will
rest at the middle part of the keyboard. Place your fingers on the home row keys:

1. Place your left hand fingers on the keys A S D F

2. Place your right hand finger on the keys J K L ;
3. Both of your thumbs should rest lightly on the spacebar.
4. Keep your wrists straight and slightly curled your fingers.

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Note: You may feel bumps on the F and J keys that will help you locate home row keys
without looking at the keyboard.

Learning outcome 1: Plan and prepare for assigned task

Planning your assignment

It is important to plan your approach to an assignment. It will ensure that you

understand the task, can manage your time, and present a structured and focused argument.

For each assignment you should make time to:

 interpret your assignment
 create a schedule
 plan your answer.

Interpreting your assignment

Start by working out what you are being asked to do and what type of assignment you
should produce.

Take time to understand the conventions of each type of assignment. You might be
asked to produce a report, an essay, an annotated bibliography or a literature review. This
will shape how you will research and write.

The next step is to analyse your question. Are you being asked to discuss, analyse or
evaluate something? Instructional verbs in the assignment question will set out how you will
approach the task.

You can also download our understanding instructional verbs (PDF) help sheet, which
offers a glossary of common words that you will find in your assignments, such as "analyse",
"discuss", "compare" and "describe".

Creating a schedule

Planning your schedule before you begin an assignment will help you to ensure you
have enough time to complete a high-quality piece of work.

Online calendars such as Apple Calendar or Google Calendar can be easily edited
(useful when your plans keep changing) and shared with others (great for organising group
meetings). They can be synced to your phone and email to send you reminders.

You could use My Study Life to timetable when you work on your assignments, It can
be accessed on your PC and mobile device.
Break down your assignment into manageable tasks and deadlines. As well as planning,
these will include:

 searching for information and finding material

 reading and note making
 drafting and writing
 editing and proofreading.
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Planning your answer

We would strongly recommend that you plan your answer before you start writing your
assignment. This will make the writing process far easier.

A plan will help you to produce a clear, coherent and well-structured assignment, stay
focused on answering the question, and stick to the main points that you want to make.

Mind-maps are useful for getting all your ideas onto one page and establishing a
sensible structure. Create mind-maps digitally on software such as Mindview (available on
most university PCs) or Coggle (available online).
Our tips for planning

1. Create a plan to help you gather your initial ideas and response to the question.

Think about:
 what you already know
 what sources of information you already have (lectures, seminars, labs,
reading etc) and what you still might need to gather
 what aspects of the topic you might want to cover
 what different perspectives might there be on this topic.

Learn more about finding high-quality information for your assignments.

2. Use a planning technique that suits you.

Use mind-maps: a visual planning method that helps you to quickly come up with
ideas and make connections between those ideas.

Use linear (list) plans: use headings, subheadings and bullet points to plan your
main ideas. This can be useful to plan out your writing paragraph by paragraph.

You can use a mixture of techniques. Perhaps a visual method when you are
gathering initial ideas followed by a more structured plan before you start writing.

3. Use your plan to create a structure.

From your plan pick out the most relevant points. If you don't have any evidence to
back up your points don't include them.

Think about what your reader needs to know. Whether you are writing a report, essay
or another assignment, don't include too much background material. Ask yourself whether
what you are writing answers the question or brief you have been set.

Consider in what order you need to present the information, arguments or points you
want to make.

Plan in paragraphs, under headings or in sections to help you build a logical structure.

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Learning outcome 2: Encode data

ENCODE data
In data encoding, all data is serialized, or converted into a string of ones and zeros,
which is transmitted over a communication medium like a phone line. “Serialization must be
done in such a way that the computer receiving the data can convert the data back into its
original format,” according to Microsoft.

Learning outcome 3. Access information

Information access is the freedom or ability to identify, obtain and make use
of database or information effectively.[1]

There are various research efforts in information access for which the objective is to
simplify and make it more effective for human users to access and further process large and
unwieldy amounts of data and information.

Several technologies applicable to the general area are Information Retrieval, Text
Mining, Machine Translation, and Text Categorisation.[2]

During discussions on free access to information as well as on information policy,

information access is understood as concerning the insurance of free and closed access
to information. Information access covers many issues including copyright, open
source, privacy, and security.

Groups such as the American Library Association, the American Association of Law
Libraries, Ralph Nader's Taxpayers Assets Project have advocated for free access to legal
information. The vendor neutral citation movement in the legal field is working to ensure that
courts will accept citations from cases on the web which do not have the traditional
(copyrighted) page numbers from the West Publishing company. There is a worldwide Free
Access to Law Movement which advocates free access to legal information. The Wired
Magazine Article Who Owns The Law is an introduction to the access to legal information
issue. Postsecondary organizations such as K-12 work to share information. They feel it is a
legal and moral obligation to provide access (including to people with disabilities or
impairments) to information through the services and programs they offer.[3]

Some effects of charging for information access, such as literature searches for
physicians, is studied in the article "Fee or Free: The Effect of Charging on Information
Demand". In this study, a $5 charge resulted in a 77% decrease in searches.[4]

Learning outcome 4: Produce data

Produce data
Production data is data that is essential to completing day-to-day business tasks
and processes. Production data must be readily available for frequent and efficient access
and is stored persistently. It is therefore often stored on high-performing Tier-1 storage that
can be easily managed.

Learning outcome 5: Use the internet to access information

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The internet is an empowering tool that can help you to access services, find
information, and stay connected to friends and loved ones. You have a right to services and
information to help you to access the internet safely. Many older people missed out on the
digital revolution so some services have been developed specifically for older people who
want to develop internet skills. This chapter provides information about internet services and
support, and explains the help that is available to you.

Help using the internet

Some older people think that they have missed the opportunity to learn to use the
internet or they fear they will not be able to pick up new technologies. If you would like to
learn to use the computer or improve your skills, you can access services that are designed
for older online learners. It is never too late to learn. There are services that can help you to
access the internet and provide you with training and assistance alongside your peers.

Broadband for Seniors provides older people with free access to computers and
personalised training to develop computer skills or to access the internet. There are
approximately 2000 kiosks across Australia.

Free training and ongoing support is provided by volunteer tutors, either individually
or in small groups. Some of the training topics include: how to use a computer; how to access
the internet; sending emails; using Skype to keep in touch with family and friends; and staying
safe online. Many of the volunteer tutors are also older people who have benefitted from the
services and support provided at a Broadband for Seniors kiosk.
Seniors Computer Clubs can help you learn and develop computer skills. They also provide
access to computers and the internet. The Seniors Computer Clubs are for people over the
age of 50. The clubs are non-profit volunteer organisations encouraging seniors to learn
together. There is generally a joining cost for club membership and a small fee for each
learning session that you attend.
Many Council libraries provide free internet access and some provide free internet and
computer training courses for library members. Check your local library to find out what is on
offer.

Many TAFEs, U3As, Centres for Adult Education and other Vocational Education
and Training organisations offer short introductory computer and internet courses. Check to
see if they offer a course that suits you. Some will be targeted to beginners and others will
be more advanced courses about different digital topics. These courses are generally
provided at a cost to you. Check your local course providers to find out what is on offer and
compare course prices.

12.2 Staying safe on the internet

The internet is a large part of public life. It is a place where you can interact with friends
and family, find information and transact business. As with other areas of public life, it holds
certain risks. Internet users need to ensure the security and safety of their personal
information.

It is necessary to be vigilant about your online security, as some people use the internet
to obtain your personal details, including your bank account details. They can use false
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webpages and emails to trick you into giving away personal details, or they can create viruses
that gather information from your computer. Protect yourself with these practical steps:

 Install security software;

 Think before you click on links and attachments;
 Talk to someone about anything online that makes you uncomfortable;
 Think before you put personal information online; and
 Use strong passwords and change them regularly.

Learning outcome 6: Maintain computer equipment and systems

10 Essential Computer Maintenance Tips

1. Protect with padding.

2. Organize cords.
3. Update your operating system.
4. Unplug to avoid overcharging.
5. Purge your system of junk files and programs.
6. Run regular antivirus scans.
7. Clean the keyboard and case.
8. Update your passwords.
9. Organize your data
10. Back uo your data

Today’s computers come in many different shapes and sizes, and each keeps us
connected to our digital world at any given time. Whether you depend on your collection of
devices for work or play, keeping them in impeccable, unblemished condition is of the utmost
importance. From their cosmetic appeal to their operational functionality, a well-maintained
computer looks good, lasts longer, and performs reliably.

Keeping your PC in tip-top condition lengthens the life of your PC, both internally and
externally. A glitchy operating system, overheating CPU, or fast-draining battery are
avoidable computer woes that a bit of regular maintenance could defend against. Let’s take
a look at these 10 essential maintenance tips, so your PC will see many more years of
powerful performance and sleek appeal.

1. Protect with padding

Everyone has been there; drops, bumps, and slips result in unsightly cosmetic dings
that leave your computer looking less-than-loved. If you’re like most people who travel with
their PC, safeguarding against accidents can feel next to impossible when packing your PC
away into a carry-on. An exposed laptop is vulnerable to all of the elements of travel you likely
want to protect it from.

Whether you’re traveling business-class or to a classroom across campus, shielding

your PC against the elements starts with a protective case. There are a few different styles
of protection that offer differing levels of armor and functionality. These include:

Skins

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Functioning as a full-body laptop sticker, laptop skins are best for protecting the
chassis from light damage and scratches.

Hardshell snap-on covers

Polycarbonate, plastic, or rubberized hard shell laptop covers protect your PC while still
granting easy access to ports, buttons, lights, and fans.

Sleeves

A simple, soft, envelope-style pouch typically made of gentle materials like nylon,
polyester, suede, or microfiber, laptop sleeves are lightweight protection.

Messenger bag

A shoulder bag specifically designed to accommodate your laptop and necessary

peripherals, the dedicated laptop messenger bag offers the most padded protection.

2. Organize cords

The only thing more frustrating than dealing with long, confusing cables is getting them
all mixed up and tangled in the process. Keeping your digital world connected is a must, so
nixing the cables isn’t a feasible option. Taking the time to declutter and organize the snake-
like mass of wires spawning from your power strip and PC ports is a great first step for both
desktop and laptop users. Try these wire organization tips:

A rotating power strip

Traditional power strips offer a single line or panel of surge inputs. A rotating power
strip gives you the freedom to modify the positioning of your many chargers, monitors, and
docks.

Color-coding cables

Computer cables tend to be two colors; black and white. Organizing your mess of wires
may be as simple as color coding them with reds, blues, yellows, greens, and or using labels
in distinguishable hues.

Cable clips

Wire management is made simple when you attach cable clips to your desk, wall, or
floor. These small clips are designed to hold cables of all different sizes.

Organizer panel

Functioning as a panel of cable clips, a wire organizer panel accommodates multiple

wires. Stick it in place with an adhesive or keep it desk-side when you use a weighted panel.

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Pro tip: Be sure to keep your wires away from any footpaths. Tripping over wires could result
in the toppling of your devices, doing more damage in an instant than years of use could ever
do.

3. Update your operating system

If you’re looking for basic computer maintenance, keeping your operating system up
to date is one of the easiest solutions. Regardless of whether you’re a Windows, Mac, or
Linux loyalist, updating your PC when new patches are available ensures your PC stays at
the cutting-edge of performance power.
Windows 10 is known for keeping users in-tune with once-a-day update checks. This
automated scan occurs in the background and always notifies you if there are any important
software or operating system patches that need to be made. The end goal is to optimize your
PC performance, so when Windows suggests you update, you should do it.

Pro-tip: Some updates take longer than others. Set aside time before bedtime or during a
daytime break to let Windows do its thing without interrupting your workflow.

4. Unplug to avoid overcharging

With heightened dependence on wireless devices, optimizing battery power is a top

priority for many. There are few things more dreadful than a draining battery when you’ve got
hours of work and play left on your day’s schedule. However, it’s better to resist the temptation
of plugging in the moment your PC falls under 50% battery life.
Unnecessary charging can lead to overcharging, which then leads to regenerative capability
deterioration. This often looks like a laptop that can’t hold a charge as well as it could in its
earlier days.

Being shackled to the weight of a charger defeats the purpose of a laptop’s wireless
portability. To avoid a bad battery fate, unplug your device after it reaches 100% charge, and
don’t plug in until power is actually low.

5. Purge your system of junk files and programs

Computers tend to show their age best in the number of unused files living on their
hard drives. Useless programs and old junk files likely take up more space than you realize.
From old versions of software to retired versions of your resume, your PC is sure to have its
fair share of digital debris festering on your desktop or in your start menu. These programs
and files can quickly turn into performance hogs if they continue to accumulate.
Before your computer gets to a point where it’s begging for more storage space, use these
PC purge tips to relieve your system.

 Uninstall trialware
 Run disk cleanup software
 Empty the recycle bin
 Delete temporary files
 Remove cache of offline web pages

6. Run regular antivirus scans

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Malware attacks can sneak up on you at any given moment, and in the event one
does, having a savvy antivirus living on your PC will protect you against the damage viruses
bring. Weekly antivirus scans ensure your computer is always clear of malicious software
infections. A basic scan will examine your computer for any glaring dangers or outstanding
activity.

For those who are frequent web-users and download programs and files regularly,
consider running a virus scan twice a week. It’s always better to err on the side of safety,
especially when your personal data could be at risk.
Malware infections can compromise the performance of your computer and expose your
confidential information to third-party cybercriminals. Depending on the type of
malware installed on your system, a virus could also:

 Slow web browser speeds

 Disrupt network connections
 Freeze or crash your system
 Alter computer settings
 Allow unauthorized access to system resources

By running regular antivirus scans you can rest assured that nothing slips by. Be sure to
choose an antivirus scan servicer that also scans all of your downloads, too.

7. Clean the keyboard and case

You’d be surprised to see just how much dust and debris lives underneath your
keyboard’s keys. From food crumbs and dog hairs to dust and dirt, and everything else that
can fit in between the keys, a number of dirty particles can clog your keyboard. This usually
results in sticky or difficult-to-press buttons.

Clearing out these hard-to-reach parts of your laptop or desktop setup is most easily
done with a compressed air canister, available from office supply stores, computer stores,
and hardware stores.

For external keyboards

Unplug the keyboard from the USB port or power it off if it’s wireless. Tilt the keyboard
upside down and shake any loose debris out first. Spray compressed air at an angle and
approximately 1-inch away from the keys. Use a damp microfiber cloth to finish the job,
removing any excess dust or grime.

For the laptop user

Power your laptop off and unplug any USB or power supply inputs. Tilt the laptop
upside down and gently tap it to encourage any loose debris to come out. Set the laptop down
in its natural position and spray between keys from about 1-inch away. Spray in short bursts
moving from one side of the keyboard to the other.

If you find certain spots tougher to clean than others, use a cotton ball dipped in
isopropyl alcohol as a great alternative. Alcohol evaporates more quickly than water which
makes it the perfect solution for hardened debris.
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Pro-tip: When cleaning your laptop or desktop, absolutely avoid pouring any type of liquid
onto the body. Water and electronic devices do not mix well and could result in extreme
damage to your computer.

8. Update your passwords

Believe it or not, updating your passwords is a task as crucial as backing up your data.
Verizon’s 2017 Data Breach Investigations Report found that an alarming 81% of hacking-
related breaches leveraged either stolen and/or weak passwords [1]. Poor password behavior
encompasses everything from using the same password for every account to using simple,
guessable passwords like “password” or “123456.”

When it comes to basic computer maintenance, protecting your digital world against
cybercriminals should always be at the forefront of your task list. No security system is
perfect, and more today than ever before, consumers are realizing this on a large scale.

If you’re overdue for a password update, consider using these strong password generation
tips:
1. Use at least 10 characters
2. Use a combination of uppercase and lowercase letters
3. Include both numbers and special symbols
4. Add emoticons if possible (: O, :(, D, :), T.T)

A strong password safeguards all of your data against potential third-party hackers which
is precisely why it’s such an essential part of computer maintenance.

9. Organize your data

It’s easy to let your computer’s data organization run awry when your work and play
lifestyle doesn’t leave much time for calculated file management. Whether it’s old music files
from your garage band days or downloaded add-ons for your favorite simulation game, your
PC’s many folders can grow crowded.

If you can’t remember the last time you took a look through your downloads folder,
you’re likely overdue for a visit. The same applies to the rest of your default folders
(documents, photos, etc.).

Dealing with a cluttered desktop or crowded computer folders may be a daunting task,
but with these tips and tricks, you’ll be well on your way to a functioning system of files and
folders.

Create large, main folders

Everyone uses their computers for different primary purposes. A freelance writer will
likely have completely different main folder assignments than a professional gamer or a
business owner. It’s important to narrow down your digital world into easy folder divisions to
make your first round of organization a breeze, and your future rounds even easier.

Create small sub-folders

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Within your larger primary folders, smaller sub-folders make your organization
operation even smoother. Being able to categorize files by their functionality or content will
help you access them whenever you need them. No search button necessary.

Empty your downloads folder

Your downloads folder should function as a temporary cache for recently downloaded
files. Get into the habit of placing recent downloads in their proper folders or deleting them
once they’ve served their purpose.

Clear your desktop

When you power on your computer and saddle up for your day’s work or some light
social media browsing, you want to be able to do so without the stress of clutter. Clear your
desktop of any files, folders, or programs you don’t need readily available at every power-on.

Choose thoughtful filenames

If you’re frequently saving images, PDFs, and other common files, you know how easy
it is to type in gibberish for a successful “Save As” operation. Instead of rushing through, take
the time to come up with intentional file names so you always know what’s living on your hard
drive and where it’s located.

10. Back up your data

Part of owning a modern computer is to prepare for the unexpected. Sudden crashes,
untimely glitches, and random hardware failure all have the potential to damage the data
living on your PC. Backing up files is one of the most vital computer maintenance procedures
PC users can do for themselves. That’s why we’ve ranked it at our final spot. Your computer
is replaceable, but without a backup, your information is not.

Full backups are usually done on storage-heavy external hard drives and on the cloud.
By making duplicate copies of everything on your PC (actually having your data in 3 places
is safest), all of your valuable data lives both on your computer and inside of the external
drive or cloud.

ACTIVITY

Modified true or false No. 1. Write True if the statement is true; Write false if the
statement is incorrect, (2 points each)
_______________1. Computer hardware refers to the physical parts or components of a
computer.
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_______________2. Keyboard - the primary input device used to communicate with the
computer.
_______________3. Web Camera – used in transmitting live images over the World Wide
Web.
_______________4. Peopleware It refers to people involved in the data processing
operations such as the system administrator, office workers, students and others.
_______________6. Planning your schedule before you begin an assignment will help you
to ensure you have enough time to complete a high-quality piece of work.
_______________7. In data encoding, all data is serialized, or converted into a string of ones
and zeros, which is transmitted over a communication medium like a phone line.
_______________8. Production data is data that is essential to completing day-to-day
business tasks and processes.
_______________9. Seniors Computer Clubs can help you learn and develop computer
skills. They also provide access to computers and the internet.
_______________10. Part of owning a modern computer is to prepare for the unexpected.
Sudden crashes, untimely glitches, and random hardware failure all have the potential to
damage the data living on your PC.
Application No 2: Group into two. Practice using the computer and becoming familiar
with its components. Grade your peer's performance and send the result to your
instructor.
 Encode an Article 3 pages and submit to your instructor.

WEEK 8 & 9
CORE COMPETENCIES

UNIT COMPETENCY 1 : SELECT POTENTIAL AREA FOR MICROFINANCE OPERATION

Lesson Objectives: At the end of this lesson, the students should be able to:
1. Learn to conduct area scanning / mapping
2. know to coordinate with concerned government office
3. Review barangay profile

On-site Due Diligence - To confirm the status of each MFI, a due diligence on-site will be
conducted for most of them. It consists in 2 or 3 days analysis conducting interviews and
investigating all pre-identified topics plus any additional issues identified by the investment
and risk committee. They use a set book of procedures to analyze risk areas. Following the

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on-site due diligence, the Micro World operation team produces an investment memorandum
that summarizes the on-site Due Diligence.

Learning outcome 1: Conduct area scanning /mapping

CONDUCT AREA SCANNING/MAPPING

Microfinance institutions (MFIs)undergo an area selection process before establishing

a new branch orformingadditionalclusters1foranexisting branch. Whichever objective the MFI
wishes to achieve, this activity should be part of the business plan of the whole institution.

The specific steps in selecting a potential area for microfinance operations are briefly
presented below:

Step 1. Conduct Area Scanning/Mapping. The first step involves visiting the potential area
to assess its economic activities.

Step 2. Coordinate with concerned government office. This step requires the Loan Officer
to pay a courtesy visit to the government offices and barangay officials and introduce his or
her MFI and its microfinance program.

Step 3. Review Barangay Profile. The second step is the gathering of existing area profile
from the barangay or other government agencies. This would allow the MFIs to get more
accurate data on the target area's socio-demographic characteristics and economic activities.

Step 4. Conduct Area Survey. In conducting an area survey, the Loan Officer verifies initial
information gathered from government offices and local officials. At this stage, the Loan
Officer also identifies potential interviewees to the survey.

Step 5. Conduct Interviews. Community leaders and micro entrepreneurs in the target area
are interviewed to gather information about the area’s peace and order situation, economic
activities, informal lending practices, and business needs.

Step 6. Processing Survey and Interview Results. At this step, results of the area survey
and interview are consolidated.

Step 7. Submit Survey and Interview Results to Branch Manager. A written report of the
survey and interview results prepared and submitted to the branch manager.

Determining Potential Area

All the activities mentioned above will be done once the potential area has been
identified. In most MFIs, the Program Manager or the Operations Head is the one who
decides where a new branch will be put up based on the MFI’s criteria and business plan.
The general criteria in selecting potential area for microfinance operations used by most MFIs
are the following:

Enough number of potential clients - the number of potential clients should be enough
to form a group or cluster of groups based on the standard set by the MFI. Some MFI uses

73
poverty index in identifying potential clients, other MFIs use percentage of poor household
(30%-50%).

Distance and accessibility from the office–most MFIs set a radius of 5-7km.from the
branch office for their area of coverage. This is to ensure efficiency in terms oftime travel of
the Loan Officer to and from the branch and within centers.

Transportation–availability of public vehicles for easier accessibility

Learning outcome 2: Coordinate with concerned government office

IMPLEMENTING RULES AND REGULATIONS OF THE MICROFINANCE NGOS ACT

(REPUBLIC ACT NO. 10693)

RULE 1
Title

These Rules shall be known as the Implementing Rules and Regulations of Republic Act
No. 10693, otherwise known as the "Microfinance NGOs Act" promulgated pursuant to
Section 22 thereof.

RULE 2
Definition of Terms

As used in these Implementing Rules and Regulations, the following definitions

shall apply:

1. Act shall refer to the Microfinance NGOs Act or Republic Act No. 10693 (R.A. 10693);

2. Accreditation shall refer to the process of giving official recognition to a duly registered
Microfinance NGO, after meeting the minimum standards set by the Microfinance NGO
Regulatory Council (or "Council"). A Microfinance NGO is deemed accredited when it is duly
issued an accreditation certificate by the Council;

3. BSP shall refer to the Bangko Sentral ng Pilipinas;

4. BIR shall refer to the Bureau of Internal Revenue;

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5. Charges on loans shall refer to the agreed upon reasonable and conscionable interest
rate, service charge, penalty, and such other charges incidental to microfinance lending
activity; Published : Star , Sept . 14 2016 Date Rec ' d : UP Law Center , October 6 ,
2016

6. Clients shall refer to all borrowers and savers of a Microfinance NGO;

7. Compensating Bahnce shall refer to the proportion of the total loan of a microfinance client,
which is retained with the microfinance institution as capital build-up (CBU) or microsavings
which can be used to offset the clients' outstanding balance in case of default;

8. DOF shall refer to the Deparä-nent of Finance;

9. DSWD shall refer to the Deparffilent of Social Welfare and Development;

10. DTI shall refer to the Deparünent of Trade and Indusü-y;

11. Group Loan shall refer to a loan conü•acted by a member of a group of microfinance
clients whose loan is guaranteed by the group of members collectively or by any member/s
of the group. The creditor can collect from any of the members of the group that guaranteed
the said loan, without prejudice to the right of reimbursement of the member or members of
the group that had advanced the payment in favor of the actual debtor;

12. Gross from microfinance operations shall refer to the gross interest income, penalties,
surcharges, commissions and discounts, service and general fees, and other charges related
to microfinance operations actually or consn•uctively received without any deduction of any
kind or nature;

13. IC shall refer to the Insurance Commission;

14. Low-[ncome shall refer to the income of individuals or families that fall below the low-
income threshold, which is defined by NEDA as twice the official national poverty threshold
The above definition shall be subject to periodic review by the NEDA;

15. Microcredit shall refer to the extension of microfinance loans by a Microfinance NGO to
its poor and low-income clients;

16. Microenterprise Development Strategy shall refer to the social reform program to promote
and pursue inclusive growth that includes the poor, and whose implementation shall involve
both the public and private sectors among which Microfinance NGOs are key players.
Specifically, it shall refer to programs to empower the poor, manage risks and vulnerabilities
and thereby improve their asset base and expand access to microfinance services, such as
microcredit, microinsurance, microsavings, health care and microhousing through a broad
package of financial business and human development services and other non-financial
services, including education to enable them to lead productive lives;

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17. Microfinance shall refer to a viable and sustainable provision of a broad range of financial
services to poor and low-income individuals engaged in livelihood and microenterprise
activities. It uses nonü•aditional and innovative methodologies and approaches, namely: the
extension of small loans, simplified loan application procedures, group character loans,
collateralfree arrangements, cash flow-based lending, alternative loan repayments, minimum
requirements for CBU/minimum balance retention, and small denominated savers'
insn•uments aimed to improve their asset base and expand their access to capital and
savings;

18. Microfinance Loans shall refer to small loans granted to the basic sectors, as defined in
Republic Act No. 8425, otherwise known as the "Social Reform and Poverty Alleviation Act",
and other loans as defined by the government, as to their amount, scope, and coverage, that
are granted to the poor and low income individuals for their microenterprises and small
businesses, so as to enable them to raise their income levels and improve their living
standards. Microfinance loans are granted on the basis of the borrower's cash flow and are
typically unsecured;

19. Microfinance Nongovernment Organization or Microfinance NGO shall refer to a non-

stock, non-profit organization duly registered with the Securities and Exchange Commission
with the primary purpose of implementing a microenterprise development sn-ategy and
providing microfinance programs, products and services such as microcredit and
microsavings for the poor and low-income clients;

20. Microfinance Operations shall refer to the programs and services as specified under
Sections 1 and 2 of Rule 5 of these Rules.

21. Microinsurance, as defined under Section 187 of the Insurance Code, as amended, shall
refer to a financial product or service that meets the risk protection needs of the poor where:

22. The amount of conn•ibutions, premiums, fees or charges, computed on a daily basis,
does not exceed seven and a half percent (7.5%) of the current daily minimum wage rate for
non-agricultural workers in Meb•o Manila; and

a. The maximum sum of guaranteed benefits is not more than one thousand (1,000)
times of the current daily minimum wage rate for non-agricultural workers in Meü•o Manila;

23. Microsavings shall refer to the program of a Microfinance NGO to collect relatively
small amounts of money from its clients for purposes of a compensating
balance. It shall also refer to equity build-up or capital build-up;

24. Nongovernment Organization (NGO) shall refer to a nonstock, nonprofit organization

duly registered with the SEC, focusing on the upliftment of the basic or disadvantaged
sectors of society by providing advocacy, ü•aining, community organizing, research,
access to resources, and other similar activities, as defined in Republic Act No. 8425;

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25. Poor shall refer to individuals and families whose income fall below the poverty
threshold as defined by the NEDA. Generally, the poor are regarded as those who cannot
afford in a sustained manner to provide their minimum basic needs for food, health,
education, housing and other essential amenities of life as defined by Republic Act No.
8425;

26. Social performance shall refer to the effective ffanslation of a Microfinance NGO's
mission into practice;

27. Social Welfare Promotion/Purposes shall refer to the thrust, objectives, plans,
programs, services and activities designed to aid and/or ameliorate the living conditions
of the poor, disadvantaged, marginalized, vulnerable and underprivileged individuals and
their families in order to attain improved quality of life and well-being; and

28. SEC or Commission shall refer to the Securities and Exchange Commission.

RULE 3
Microfinance NGO Regulatory Council

Section 1. The Microfinance NGO Reguhtory Council or the "Council".— The

Council shall be composed of four (4) permanent members from the government sector
and three (3) members from the Microfinance NGO sector:

a. The permanent members of the Council shall be composed of the following:

i. The Chairman of the SEC or designated
representative as the Chairman of the Council;
ii. The Secretary of the Department of Finance CDOF)
or designated representative; iii. The Secretary of
the Deparffilent of Trade and Indusü•y (DTI) or
designated representative; and iv. The Secretary of
the Deparffnent of Social Welfare and Development
(DSWD) or designated representative;

b. The three (3) representatives from the Microfinance NGO Sector shall be
chosen by at least a majority of the permanent members of the Council from
among the nominees of organizations, associations, and alliances of
Microfinance NGOs duly registered with the SEC.

i. Organizations, associations, and alliances of Microfinance NGOs shall

have at least five (5) Microfinance NGO members before they can nominate
a representative to the Council The nominees must come from a
Microfinance NGO, which may or may not belong to the nominating
organization, association or alliance. Likewise, the nominating
organization, association or alliance may not solely consist of Microfinance
NGOs.
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Each organization, association or alliance shall have a Nominations and
Elections Committee (Nomelec) which shall be responsible for the
nominations. The nomination procedure, including the qualification
standards, shall be submitted to the Council at least thirty (30) days before
nominating its representatives, and posted in the website of the
organization, association or alliance. The President of the organization,
association or alliance shall certify under oath that the name/s he/she has
submitted, together with their respective Curriculum Vitae (CV), are the
nominee/s and that they were nominated in accordance with their Nomelec
rules and procedures. Otherwise, they shall be deemed to have not met
the qualifications as provided under the rules of the organization,
association or alliance.

ii. The organizations, associations, and alliances of Microfinance NGOs shall

nominate their respective nominees within sixty
(60) days from the effectivity of these Implementing Rules and Regulations.

iii. The majority of the permanent members of the Council shall within thirty
(30) days from submission of the list of nominees, choose the private sector
representatives from the submitted list. The representatives to be chosen
shall have the following minimum qualifications:

a. Citizen and resident of the Philippines for at least two (2) years immediately
prior to his/her nomination;
b. With at least five (5) year’s experience as a Trustee, President or Officer of
a Microfinance NGO;
c. No record of final conviction for an offense involving theft, fraud, falsification,
forgery, perjury or any adminisn•ative offense or crime involving moral
turpitude; and
d. A person of known probity, integrity and good moral character.

iv. The said representatives shall serve for a term of three (3) years who may
be reappointed Nominations for the succeeding years shall be conducted at
least sixty (60) days prior to the expiration of the term of the incumbent
representatives.

v. The procedure for nomination and appointment of a representative from

the private sector shall be the same in case of vacancy. The appointment shall
only be for the unexpired term of the predecessor but the appointed
representative may be eligible for reappointment, subject to the prescribed
qualification and nomination procedures.

vi. Any controversy or issue arising from the nomination of any representative
from the Microfinance NGO sector shall be resolved by the Council.

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Section 2. Functions and Responsibilities of the Microfinance NGO Regulatory
Council. — As the accrediting entity, the Council shall have the following functions and
responsibilities:

1. Institute and operationalize a system of accreditation for Microfinance

NGOs: Provided, That the criteria for accreditation shall include sound
and measurable standards of financial performance, social
performance, audit and governance, pursuant to the criteria specified
under Section 3, Rule 4 hereof;

2. Issue Certificate of Accreditation as a Microfinance NGO upon

determination that the criteria set for this purpose have been fully
satisfied The Certificate of Accreditation shall remain valid for three (3)
years unless earlier suspended or revoked by the Council on the
grounds provided herein;

3. Monitor the performance of Microfinance NGOs to ensure continuing

compliance with the financial standards, social performance
standards, governance standards and other provisions of the Act,
these Rules and other rules and regulations. The Council shall have
the authority to audit the books of accounts, records and papers of the
Microfinance NGO and conduct ocular inspections;

4. Place under probation, suspend or revoke any Certificate of

Accreditation upon due determination that a Microfinance
NGO no longer meets any of the criteria for accreditation;

5. Require the annual submission of the following reports by Microfinance

NGOs:

a. General Information Sheet (GIS);

b. Audited Financial Statements (AFS);

c. Sworn Statement (SS) by the President and Treasurer on the Sources, Amount and
Application of Funds and Program/Activity Planned, Ongoing and Accomplished;

c. Certificate of Existence of Program/Activity (COEP) which may be

issued by the Office of the Mayor, Office of the Barangay Chairman, the
Department of Health, or any appropriate government agency, relative
to the specific program/activity of the foundation in the locality where
such government office exercises jurisdiction. The Heads/Officers of
private institutions or actual beneficiaries/recipients of the
program/activity may also issue the COEP in lieu of those issued by
government agencies, provided that the same shall be notarized An
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organization, association or alliance of Microfinance NGO may also
issue a notarized COER Other documents proving the existence of the
Program/Activity may be admitted by the Microfinance NGO Regulatory
Council; and

d. Such other reports which the Council may deem appropriate.

6. Collect reasonable accreditation, supervision and monitoring fees from

a Microfinance NGO which shall be used for the accrediting entity's
operational requirements;

7. Submit an annual report to the President of the Philippines and the

concerned committees of both Houses of Congress; and

8. Perform such other functions as may be necessary to accomplish the

purposes and objectives of the Act.

Section 3. Regular/Special Meeting. — The Council shall meet en banc at least once a
month. However, a special meeting may be held as the Chairman sees fit or upon the
recommendation of the majority of the Council members. All members of the Council shall
have one vote each during the conduct of its business.

Section 4. Remuneration of the Council Members. — The members of the Council shall
be entitled to per diem, n-ansportation allowances, meal allowances and other benefits
which may be approved by the Council.

Section 5. The Secretariat. — The Council shall be supported by a Secretariat to

coordinate the activities involved in the accreditation process, monitoring and regulation
of accredited Microfinance NGOs, which shall be lodged at the SEC. The Secretariat shall
provide technical and administrative support to the Council.

Section 6. The Council may create additional Committees as it may deem appropriate for
the accreditation, monitoring and regulation of Microfinance NGOs.

RULE 4 of Microfinance NGOs

Microfinance NGOs shall be required to obtain accreditation from the Council as a

condition for the availment of the incentives under the Act.

Only Microfinance NGOs with the primary purpose of implementing a

microenterprise development su•ategy and providing microfinance programs, products

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and services for the poor shall be accredited by the Council. An entity shall not be
accredited if it does not provide the Basic
Minimum Core Programs and Services as provided under the Act. Further,
only Microfinance NGOs that have been operating for at least three (3) consecutive years
may be accredited by the Council.

Section 1. Form of Organization. - A Microfinance NGO shall be established as a non-stock,

non-profit corporation with a capital conffibution of at least One Million Pesos (P
1,000,000.00) and conform to the following requirements:

i. The word "Microfinance" shall be included in the corporate and fi-ade name of
the Microfinance NGO; ii. Its Articles of Incorporation and By-laws shall
specifically state that
a. It is "non-stock and non-profit"'
b. It has the primary purpose of implementing a microenterprise development
strategy and providing microfinance programs, products and services for
the poor;
c. Shall specifically provide that upon dissolution, the net assets shall be
disffibuted to another NGO organized for similar purposes, or the State for
public purpose/s or as may be determined by a competent court of justice;
d. No part of the property or income shall inure to the benefit of any member,
officer, organizer or any individual person;
e. The Trustees shall not receive any compensation or remuneration, except
reasonable per diem;
f. The level of expenses shall not exceed thirty percent (30%)
of the total expenses for the taxable year; and
g. Other requirements which the Council may deem necessary.

Section 2. Requirements for Securing Accreditation. - A Microfinance NGO shall file with the
Council Fwo (2) copies of the following:

1. Application Form;
2. National Bureau of Investigation (NBI) Clearance of each Trustee and Officer;
Il
3. BIR Certificate of Regisffation;
4. Foreign Trustees/Officers, in addition to the NBI Clearance, shall submit a
clearance from the Bureau of Immigration, a photocopy of their passports
showing a valid visa or stay in the Philippines, and Alien Certificate of
Registration Identity Card (ACR I-Card); work permits subject to the
exemptions/exclusions provided for by the Department of Labor and
Employment (DOLE);
5. Curriculum Vitae (CV) of b•ustees/officers;
6. A Sworn Statement indicating therein a full description of its activities for the
past three (3) years, its present activities, and those activities proposed for the
next three (3) years. It shall include the following:
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a. A profile of its clients or members for the preceding and current year; and
b. A list of its main, branch or unit offices;

7. Business plan including list of products, projects and programs, method of

marketing its products and sources of the funds and maturities of credit;
8. A location map indicating the exact address of the principal office, signed by
the President and countersigned by the Corporate Secretary; and
9. Other documents which the Council may require.

Section 3. The Council shall be guided by the following criteria for accreditation:

a. Financial Performance Standards— the Council shall assess the

financial performance of Microfinance NGOs through their:

a.i. Portfolio Quality Indicators—

a.i.l.
Portfolio at Risk Ratio
a.i.2. Loan Loss Reserve Ratio

a.ii. Efficiency Indicators—

a.ii.l. Adminisù•ative Efficiency
a.ii.2. Operational Self-Sufficiency
a.ii.3. Loan Officer Productivity

a.iii. Indicators—
a.iii.l. Financial Self-Sufficiency
a.iii.2.Loan Portfolio Profitability

a.iv. Outreach Indicators—

a.iv.l. Growth of number of active microfinance clients
a.iv.2. Growth of microfinance loan portfolio and
a.iv.3. Depth of outreach

a.v. Other indicators which the Council may deem appropriate.

b. Social Performance Standards—

b.i. Clearly communicate, and monitor mission. The Microfinance NGO shall
have a sü•ategy to fulfill its mission and achieve its social goals. As a
pre-requisite, these mission and goals are communicated to all
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stakeholders of the organization. It collects, reports, and ensures the
accuracy of client-level data that are specific to the institution's social
goals.

b.ii. Ensure board, management, and employee commitment to the mission.

The Members of the Board shall be responsible for the long-term
success of the institution, and to sustain its competitiveness and
sustainability in a manner consistent with its corporate objectives and the
best interest of its members and other stakeholders. They shall set and
oversee the implementation of the institution's sü•ategy for achieving its
social goals. Management, on the other hand, shall be responsible for
the day-to-day operations of the institution. The employees are frained
and equipped towards the achievement of the institution's social goals.

b.iii. by the Client Protection Principles such as: (1)

Avoidance of Over-Indebtedness; (2) Promotion of Transparency; (3)
Responsible Pricing; (4) Appropriate
Collection Practices; (5) Ethical Staff Behavior; (6) Mechanisms for
Redress of Grievances; and (7) Privacy of Client Data.

b.iv. Design products, services, and channels that meet clients' needs and
preferences. The institution's products, services, delivery models and
channels should be designed to benefit clients, in line with the
institution's mission and social goals.

b.v. Treat employees responsibly— The Microfinance NGO shall follow rules
on labor, social legislation and a written policy that protects employees
and creates a supportive working environment. It shall communicate to
all its employees the terms of their employment and provide trainings for
essential job functions. The institution shall monitor employee
satisfaction and turnover.

c. Governance Standards— Standards may include fairness, management

responsibility, respect for rights, corporate integrity, loyalty, compliance
with regulations and tansparency. The Council shall develop the
standards and the scorecard specifically for Microfinance NGOs.

The Council shall have the discretion to relax the accreditation standards for the first
three (3) years upon the effectivity of these Rules to allow the Microfinance NGO sector to
adjust to the standards. However, after the lapse of the three-year period, all Microfinance
NGOs seeking to benefit from the Act shall fully comply with the accreditation standards.

Section 4. A fee for accreditation in the following amounts shall be paid to the Council at the
time of filing of an application for a Certificate of Accreditation or for the renewal thereof:

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Portfolio Accreditation Fee

Pesos
Not more than Two Hundred Twenty Thousand
Million Pesos (P20,OOO.OO)

Thirty Thousand Pesos

More than Two Hundred Million (P30,OOO.OO)
Pesos but not
more than Eight Hundred Million
Pesos

More than Eight Hundred Million Forty Thousand Pesos

Pesos but not (P40,OOO.OO)
more than One Billion Pesos

More than One Billion Pesos Fiftyn Thousand Pesos

P50,OOO.OO

These fees shall be non-refundable and subject to the periodic review of the Council.

Section 5. Prohibited Donations. — No Microfinance NGO shall give donations in aid of any
political party or candidate or for purposes of partisan political activity.

Section 6. Certificate of Accreditation. Unless earlier revoked, the Certificate of

Accreditation shall be valid for three (3) years from the date of its issuance. Three (3) months
before the expiration of its accreditation, the Microfinance NGO may renew its accreditation
for the succeeding three (3) years. The process for initial application of accreditation shall
be the same for its renewal.

Rule 5
MICROFINANCE PROGRAMS AND SERVICES

Section 1. Minimum Core Programs and Services. — Microfinance NGOs shall continuously
provide at least any of the following programs, products, or services:
1. Microcredit and financial literacy programs; and
2. Microcredit and CBU or microsavings.

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Section 2. Other Programs and Services. The following are the other programs and services
that Microfinance NGOs may undertake, subject to existing laws and regulations:
1. Agricultural microfinance;
2. Housing microfinance;
3. Microinsurance, in partnership with authorized micro insurance companies,
agents and/or entities;
4. Elecffonic payment system such as mobile or any innovative digital platforms
or channels;
5. Money transfer and other related remittance services, in partnership with
authorized agents and/or entities;
6. Provide development opportunities such as leadership Training and
entrepreneurial skills enhancement; and
7. Other relevant and/or innovative programs, products and services that
address social welfare purposes and which are not contrary to existing laws and
regulations. This may include, but not limited to, programs involving health,
education, Disaster Risk Reduction and Management (DRRM), and Persons with
Disabilities (PW D) assistance.

The Council may require the submission of the necessary licenses/documents

proving that the Microfinance NGO is allowed to engage in the foregoing activities.

Section 3. Sustainability of Microfinance Operations. — Microfinance shall be undertaken

on a sustainable basis, where providers shall be able to recover all of its costs to allow
sustainable operation and regular provision of financial services to the poor and low-income
individuals and families.

Section 4. Amount and Charges on Loans. — A Microfinance NGO may grant microfinance
loans in such amounts as may be prescribed by the Council and subject to such reasonable
and conscionable interest rates and charges as may be agreed upon between the
Microfinance NGO and its debtor-client.

Section 5. Collection of compulsory savings/microsavings/CBU Microfinance NGO

may collect microsavings only from its clients for purposes of maintaining the compensating
balance. If a Microfinance NGO opts to prededuct the CBU from the loan proceeds, the
maximum amount is limited to five percent (5%) of the loan, and the amount deducted
therefrom shall not be included in the amount when computing the interest and other
charges on the loan. This will not preclude the Microfinance NGO from regularly collecting
small amounts from the borrower which shall form part of the CBU or microsavings. The
borrower may withdraw his/her microsavings upon payment of the loan.

A Microfinance NGO shall be a net lender at all times, wherein net loans mean total
loans minus total equity build-up or capital build-up. The compensating balance or total CBU
shall not exceed the total loan portfolio.

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For the purpose of implementing this provision, deposit-taking shall not include
taking of funds from current or prospective borrowers for the purpose of equity build-up of
an individual borrower's own loans.

Acceptance of client microsavings for this purpose shall not cause the Microfinance
NGO to be deemed as engaging in deposit-taking activities. A Microfinance NGO shall not,
at any time, engage in deposit-taking activities.

However, if a Microfinance NGO's compensating balance exceeds its total loan

portfolio, it shall be deemed to be involved in deposit-taking and its accreditation shall be
revoked

Section 6. Microinsurance. — A Microfinance NGO shall not directly engage in the

insurance business. It may only establish partnerships with authorized microinsurance
agents and/or entities in the furtherance of its social protection objectives.

Section 7. Compliance with the Truth in Lending Act. — Prior to the consummation of the
n•ansaction, a Microfinance NGO shall furnish each debtor-client a disclosure statement
signed by the borrower and attached with the loan documents, setting forth, to the extent
applicable, the following information:

a. The principal loan;

b. Rate of loan interest including the effective interest rates being applied;
c. Service or processing fee, if any;
d. Amortization schedule;
e. Any penalty charge for late amortization payment
f. Collection fee, if any;
g. Notarial fee, if any;
h. All other fees in connection with the loan n•ansaction;
i. Description of the collection and lien enforcement procedures; and
j. Illusä•ation of the method of calculating the total amount of obligation in
case of default.

Section 8. Management Information System. — A Microfinance NGO shall maintain a

ffansparent and comprehensive management information system that shall also frack at
least the following parameters:

1. Poverty oun•each or the poverty level of incoming clients;

2. Poverty alleviation or the change in client poverty status;
3. Gender ouä•each;
4. Rural ouffeach;
5. Employment creation; and
6. Other social goals.

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Section 9. A Microfinance NGO may borrow money or incur such obligations for the purpose
of relending to microfinance borrowers, subject to existing laws: Provided That a
Microfinance NGO shall not be deemed as engaged in quasi-banking activities if the
proceeds of such borrowings are exclusively used for relending to microfinance borrowers,
subject to existing laws.

Section 10. A Microfinance NGO may accept donations or grants or conn•ibutions in

accordance with existing laws and regulations.

Section 11. A Microfinance NGO may invest its funds in sound, nonspeculative enterprises
and insü•uments, subject to rules and regulations of the relevant government regulatory
agency and the Council.

RULE 6
Taxation of Microfinance NGO

Section 1. Preferential Tax Treatment. - A duly registered and accredited Microfinance NGO
shall pay a two percent (2%) tax based on its gross receipts from microfinance operations in
lieu of all national taxes: Provided, That preferential tax n•eaünent shall be accorded only to
NGOs whose primary purpose is microfinance and only on their microfinance operations
catering to the poor and low-income individuals in alignment with the main goal of the Act to
alleviate poverty. Provided, further, that the Certificate of Accreditation issued by the Council
shall be an essential requirement for granting the 2% preferential tax ffeatment of
Microfinance NGOs.

Section 2. The preferential rate of th ro percent (2%) tax based on gross receipts from
microfinance operations should only refer to lending activities and insurance commission
which are bundled and forming integral part of the qualified lending activities of the
Microfinance NGOs. All other income by the Microfinance NGO which are not generated
from the lending activities and insurance commissions, shall be subject to all applicable
taxes.

Section 3. Duly registered and accredited Microfinance NGOs, as well as their clients, shall
be required to have a Taxpayer Identification Number (TIN): Provided, That this shall be
accomplished within a reasonable time as prescribed, by the Council: Provided, further, That
the relevant government agencies, jn coordination with the Council, shall provide simplified
forms and procedures for securing the TIN.

RULE 7
Maintenance of Books and Reportorial Requirements

Section 1. Standard Chart of Accounts. — The standard chart of accounts widely used by
Microfinance NGOs shall continue to be adopted until a new standard chart of accounts
shall have been prescribed by the Council.

Section 2. Maintenance of Books of Accounts. - Every Microfinance NGO shall maintain

books of accounts as may be required by the Council, the SEC and prescribed by the BIR

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and other government agencies. [n case a Microfinance NGO engages in other
businesses, it shall maintain separate books of accounts for the same.

Section 3. Publication and Disclosure of Audited Accounts.

Microfinance NGO shall publish and disclose its Audited Financial Statements within one
hundred thxenty (120) days from the end of its financial year. Publication on the website of
the Microfinance NGO or the alliance/association to which it belongs shall be a sufficient
compliance of this requirement. Posting in public markets, where the Microfinance NGO's
clients are located may also be sufficient for small Microfjnance NGOs.

RULE 8
Access to Government Programs. Projects and Technical Assistance

Section 1. Access to Government Programs and Projects. - Duly accredited Microfinance

NGOs shall be given ready access to related programs and projects of the government.
Government agencies and government financial institutions shall develop and make
available support programs for Microfinance NGOs operating in areas and sectors with
poverty, or affected by or vulnerable to natural disaster or armed conflict. Support programs
may include the provision of operational and capacity building grants, low interest loans and
guarantee funds.

A Microfinance NGO, in addition to its Certificate of Accreditation, shall comply with

the requirements for the accreditation required by other government agencies before it can
avail of the aforesaid government programs and projects.

Section 2. Technical Assistance - Duly accredited Microfinance NGOs shall be

entitled to access any form of technical assistance from the government, donors and other
support organizations in facilitating the linkage between the poor
households/microenterprises and microfinance institutions, community organizations, and
capacity building of the target clientele; social preparation activities, and those that will lead
to the broadening and deepening of microfinance services such as development of
microfinance products, in microfinance technologies, and upgrading of performance
standards, operating systems and procedures.

RULE 9
Adminisä•aäve Sanctions

The Council shall define the adminisü-ative sanctions for violations committed by
Microfinance NGOs. It shall issue a Scale of Fines and Penalties for violations of the Act,
these Rules and other rules being implemented by the Council.

The Certificate of Accreditation of the Microfinance NGO may likewise be revoked

on any of the following grounds:

1. Noncompliance with reportorial requirements;

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2. Misrepresentation in, or falsification of, any document submitted in support of its
application for accreditation of the Microfinance NGO or any document submitted
thereafter;
3. Bankruptcy or insolvency of the Microfinance NGO; and
4. Revocation of the primary license of the Microfinance NGO as a corporate entity.

RULE 10
Initiative of the BSP and IC to Examine Microfinance NGOs

The BSP and the IC may request the Council to examine the operations of
Microfinance NGOs for the purpose of determining that the Microfinance NGOs are not
engaged in unauthorized undertaking or activities which are subject to their respective
jurisdictions. In case of a finding by the Council that an accredited Microfinance NGO is
engaged in an unauthorized undertaking or activities subject to BSP or IC regulations, it
shall place on probation, suspend or revoke the accreditation of the Microfinance NGO
based on such ground, as may be appropriate under the

RULE 11
Transitory Provisions

Section 1. Microfinance NGO Sector Representatives to the Council. — For the first three
(3) representatives, the permanent members of the Council shall appoint one (1) qualified
representative each from Luzon, Visayas and Mindanao.

Section 2. Transitional — Upon the effectivity of the Act, Microfinance

NGOs which are certified by the SEC to have no derogatory information shall be deemed
accredited for one (1) year, unless earlier revoked by the Council for good cause after
review.

RULE 12
Amendatory Provisions

The SEC, in coordination with the Microfinance NGO Regulatory Council, shall from
time to time issue amendatory provisions to these Rules and new rules and regulations for
the sustainability of Microfinance NGOs.

RULE 13
Separability and Effectivity

Section 1. Separability Chuse. — In the event any part or provision of these

Implementing Rules and Regulations is declared unconstitutional or invalid, the remaining
provisions not affected thereby shall continue in full force and effect.

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Section 2. Effectivity Clause. These Implementing Rules and Regulations shall take
effect after fifteen (15) days from its publication in a newspaper of general circulation

APPROVED, this 16 th day of August 2016.

CARLOS G DOMINGUEZ
Secretary
Secre y

Department of Finance Department of Trade and Industry

JUDY M. TAGUIWALO TERESITA J. HERBOSA

Secretary Chairperson
Department of Social Welfare a Securities and Exchange
Development Commission

Learning outcome 3: Review barangay profile

Why is it important to know the profile of our community?
The community profile is essential in producing evidence-based information for
planning, implementation and evaluation of health programmes in your catchment area. It
can also be a basis for suggesting further small-scale research into local health problems
and their possible solutions.

The elements of community profile

The key words in this definition are: comprehensive, needs, resources, com- munity,
active involvement and action plan. Community profiles are undertaken by a range of different
agencies for different purposes.

What is the importance of the community profiling to the community engagement?

About the importance of engaging communities in profiling

Engaging with displacement-affected populations throughout a profiling process not

only helps us improve the depth and quality of the evidence-base.

Learning outcome 4: Conduct area survey

Doing Survey Research | A Step-by-Step Guide

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Survey research means collecting information about a group of people by asking them
questions and analyzing the results. To conduct an effective survey, follow these six steps:

1. Determine who will participate in the survey

2. Decide the type of survey (mail, online, or in-person)
3. Design the survey questions and layout
4. Distribute the survey
5. Analyze the responses
6. Write up the results
7. Surveys are a flexible method of data collection that can be used in many different
types of research.

What are surveys used for?

Surveys are used as a method of gathering data in many different fields. They are a
good choice when you want to find out about the characteristics, preferences, opinions, or
beliefs of a group of people.

Common uses of survey research include:

 Social research: investigating the experiences and characteristics of different social

groups

 Market research: finding out what customers think about products, services, and
companies

 Health research: collecting data from patients about symptoms and treatments

 Politics: measuring public opinion about parties and policies

 Psychology: researching personality traits, preferences and behaviours

Surveys can be used in both cross-sectional studies, where you collect data
just once, and in longitudinal studies, where you survey the same sample several
times over an extended period.

Step one: Define the population and sample

Before you start conducting survey research, you should already have a clear research
question that defines what you want to find out. Based on this question, you need to
determine exactly who you will target to participate in the survey.

Populations

The target population is the specific group of people that you want to find out about.
This group can be very broad or relatively narrow. For example:

 The population of Brazil

 US college students
 Second-generation immigrants in the Netherlands

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 Customers of a specific company aged 18-24
 British transgender women over the age of 50

Your survey should aim to produce results that can be generalized to the whole
population. That means you need to carefully define exactly who you want to draw
conclusions about.

Samples

It’s rarely possible to survey the entire population of your research – it would be very
difficult to get a response from every person in Brazil or every college student in the US.
Instead, you will usually survey a sample from the population.

The sample size depends on how big the population is. You can use an online sample
calculator to work out how many responses you need.

There are many sampling methods that allow you to generalize to broad populations.
In general, though, the sample should aim to be representative of the population as a whole.

The larger and more representative your sample, the more valid your conclusions.

Step two: Decide on the type of survey

There are two main types of survey:

A questionnaire, where a list of questions is distributed by mail, online or in person,

and respondents fill it out themselves.

An interview, where the researcher asks a set of questions by phone or in person and
records the responses.
Which type you choose depends on the sample size and location, as well as the focus of the
research.

Learning outcome 5: Conduct interviews

CONDUCTING THE INTERVIEW

 Introduce yourself.
 Set the stage.
 Review the job.
 Start with generalized questions.
 Review the applicant's resume.
 Ask some consistent questions.
 Vary your questions.
 Give candidates a chance to ask questions.

PREPARING & CONDUCTING INTERVIEWS

Being well prepared and then conducting an interview methodically will help you make the
most of this important recruitment tool.

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When interviewing job candidates, you want to determine what sort of people they are,
how good their interpersonal skills are, how they might react under stress, whether they have
the skills for the job, and whether they have been honest in their resumes.

PREPARING FOR THE INTERVIEW

 Set aside enough time. Dedicate specific time, conducting the interview in an
appropriate location, uninterrupted by email, telephones or other employees. This will
allow you to concentrate, while also giving a good first impression of your company to
the applicant.
 Read the resume first. Make sure you have carefully studied each resume ahead of
time. Of course, when meeting with a candidate, you should have a copy of the resume
on hand for reference, but this is not the time to ask, “What have you done?” Know
the resume so you can use the time to dig deeper.
 Write a good job description. Having a specific and thorough outline of what a
candidate would do on the job makes it easier to assess applicants, says Derek
Gagné, CEO of HR consulting firm Talent Edge Solutions. “Know what it is you’re
looking for: the must-haves and the nice-to-haves. Some things you can handle later
with training.”
 Know the intangibles. A resume can’t indicate some of the intangibles that an
employee can bring to the job. Says Gagné, “Ask yourself, what are the behaviours
you want? You could have someone who’s a point-of-sale wizard but may be a bad
team player.” Identifying these intangibles ahead of time will help you probe for them.
 Write some specific questions. Don’t just take the candidate’s resume and wing it, says
Gagné. “Have 10 or 12 questions that you will consistently ask each candidate. This
is particularly important if you will be interviewing multiple applicants and want to
compare answers later. It doesn’t mean there won’t be one-off questions. A skilled
interviewer knows when to move off the script.”

CONDUCTING THE INTERVIEW

Now that you are well prepared, you are in a position to conduct a productive interview.
If you are uncertain of your interviewing skills, you can always learn more by contacting
your local chamber of commerce, taking courses at the community college level, or
seeking the assistance of companies like Talent Edge Solutions

 Introduce yourself. Greeting candidates courteously shows respect for them and will
help put them at ease. Tell them something about yourself and the company. This is
the first impression the candidate will make of you, so present a tidy office and turn off
your cell phone.

 Set the stage. Set the tone by telling the applicant what to expect for the next half
hour or so. Remember, you too are being observed. Your behaviour will set the tone
for the interview. If you come across as being too casual, an applicant may take the
interview less seriously. But being too serious will likely make the candidate more
nervous. In either case, you’re unlikely to bring out the best in the individual. How you
conduct yourself during the interview must also reflect the image and values of your
business.

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 Review the job. Spell out what the position involves in more detail than was outlined
in the job posting, so candidates can make sure the job is right for them. Let them
know what the core duties and responsibilities will be, and any working conditions that
may affect them. Say whether the position is permanent or temporary, or on contract.

 Start with generalized questions. Begin by asking a few questions about a

candidate’s background and interest in the position. Get candidates to tell you about
how they see themselves in relation to the job and what they can contribute.

 Review the applicant’s resume. Ask candidates about specific positions on their
resume that relate to the position you are hiring for. Ask them about job details,
responsibilities, what they accomplished, pressures they encountered. Ask about any
inconsistencies or gaps in employment or education, as there may be a simple
explanation. Ask about the candidate’s reasons for leaving a past or current job.

 Ask some consistent questions. Use a specific set of questions for all applicants.
This will help you to compare candidates and find the one whose skills and abilities
most closely match what you’re looking for.

 Vary your questions. It’s important that you ask questions on skills specifically
related to the duties and responsibilities of the position. This will help you uncover
candidates’ strengths and weaknesses. Don’t forget that open-ended questions are
best during interviews, such as “What was the most difficult challenge of your last job?”

 Give candidates a chance to ask questions. Confidently answering any question

thrown at you means knowing all aspects of the position and being able to clarify your
expectations, in addition to listing the benefits of working for your business. Applicants
should be given the chance both to answer your questions and to ask questions of
their own to determine if the job and the company are right for them. Their questions
can help you assess whether candidates have adequately prepared for the interview
and are genuinely interested in the job. An effective strategy is the 80/20 rule: You do
80 per cent of the listening and 20 per cent of the talking.

 Provide a timeline. Always provide an estimate of the length of time until final
selection will be made. Provide an indication as to when candidates might expect to
hear back from you regarding the final outcome or the next step in the recruitment
process.

Learning outcome 6: Process survey and interview data

Survey processes

To conduct an effective survey, follow these six steps:

 Determine who will participate in the survey.
 Decide the type of survey (mail, online, or in-person)
 Design the survey questions and layout.
 Distribute the survey.
 Analyze the responses.
 Write up the results.

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The stages of survey process

Stages of a Survey

Stage 1: Survey Design and Preliminary Planning.

What is planning and survey design?

Survey design is the process of preparing a complete plan of operations to be followed

in conducting a survey and disseminating its intended results.

Stage 2: Pretesting. - Pretesting is the stage in survey research when survey questions and
questionnaires are tested on members of target population/study population, to evaluate the
reliability and validity of the survey instruments prior to their final distribution.

Stage 3: Final Survey Design and Planning. - What is final survey design and planning?
Survey design is the process of preparing a complete plan of operations to be followed in
conducting a survey and disseminating its intended results.

Stage 4: Data Collection. - What do you mean by data collection?

Data collection is the process of gathering and measuring information on variables of

interest, in an established systematic fashion that enables one to answer stated research
questions, test hypotheses, and evaluate outcomes.

Stage 5: *Data Coding - Coding of data refers to the process of transforming collected
information or observations to a set of meaningful, cohesive categories. It is a process of
summarizing and re-presenting data in order to provide a systematic account of the recorded
or observed

Data-File Construction

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Data file construction schematic.

*Analysis - Data Analysis is the process of systematically applying statistical and/or logical
techniques to describe and illustrate, condense and recap, and evaluate data.

*Final Report.

How do you write a report after data analysis?

When writing your report, organization will set you free. A good outline is: 1) overview
of the problem, 2) your data and modeling approach, 3) the results of your data analysis
(plots, numbers, etc), and 4) your substantive conclusions. Describe the problem. What
substantive question are you trying to address?

Sample image of data Analysis, Hypothesis Testing and Final report

96
Example of a Time Schedule for a Study.

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Interview data

In social science, interviews are a method of data collection that involves two or more
people exchanging information through a series of questions and answers. The questions
are designed by a researcher to elicit information from interview participants on a specific
topic or set of topics.

ACTIVITY

Modified true or false No. 1. Write True if the statement is true; Write false if the statement is
incorrect, (2 points each\
_______________1. To confirm the status of each MFI, a due diligence on-site will be
conducted for most of them. It consists in 5 or 7 days analysis conducting interviews and
investigating all pre-identified topics plus any additional issues identified by the investment
and risk committee.
_______________2. Clients shall refer to all borrowers and savers of a Microfinance NGO;
_______________3. Microfinance Operations shall refer to the programs and services as
specified under Sections 1 and 2 of Rule 5 of these Rules.
_______________4. The community profile is essential in producing evidence-based
information for planning, implementation and evaluation of health programmes in your
catchment area.
_______________6. The target population is the specific group of people that you want to
find out about. This group can be very broad or relatively narrow.
_______________7. Coding of data refers to the process of transforming collected
information or observations to a set of meaningful, cohesive categories

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_______________8. Data Analysis is the process of systematically applying statistical and/or
logical techniques to describe and illustrate, condense and recap, and evaluate data.
_______________9. In social science, interviews are a method of data collection that
involves two or more people exchanging information through a series of questions and
answers.
_______________10. When writing your report, organization will set you free.

Enumeration No. 2.: Enumerate the following

1. Enumerate te steps in selecting a potential area for micro finance operations

2. Enumerate the Client protection Principles
3. Enumerate Survey research step by step guide
4. Common uses of survey research
5. Enumerate steps in conducting review

MIDTERM EXAMINATION

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WEEK 10
UNIT COMPETENCY 2: PROMOTE MICROFINANCE PRODUCTS AND OTHER
SERVICES

Lesson Objectives: At the end of this lesson, the students should be able to:
1. Learn Introduce loan products and services
2. Identify Marketing in Microfinance Institutions
3. Enumerate the types of Microfinance Institutions (MFIs).

The products and services of microfinance.

Microfinance comprises several financial tools such as savings, credit, leasing,

insurance and cash transfers. These services are provided by a variety of institutions, which
can be broadly divided into banks, NGOs, credit and savings cooperatives and associations,
and non-financial and informal sources.

Why do MFIs need to promote its products?

Promotion is a marketing tool that can be used by an MFI in several ways: (1) to
distinguish its products from those offered by the competition, (2) to introduce a new product
to its clients, and (3) to raise client awareness about the institution and its overall product
offerings.

Marketing in Microfinance Institutions

The term “marketing” is usually associated with advertising, promotional, and public
relation activities aimed at selling a product, service, or concept. In fact, marketing is a
program encompassing a range of activities, such as demand and consumer analysis, market
segmentation, competitive analysis, positioning strategy, and promotion. Broadly speaking,
marketing for a microfinance institution (MFI) can be defined as an analytical tool to study
and know the client. It addresses the questions of who are the institution’s clients, how many
clients there are, which clients should the MFI target (target market), and how many clients it
hopes to capture (market share).

The concept of a marketing program has emerged as an important issue for MFIs only in the
past few years because of four factors:
1. Increasing competition in some markets for microfinance;
2. Slowing growth rates in certain MFIs;
3. Increasing client desertion; and
4. Growing recognition that MFIs need to be more client led.

Until now, most MFIs have operated in a relatively noncompetitive environment, where
the market for financial services to microenterprises and low-income households contains
only a few players, each having its own specific target clientele, and where the level of unmet
demand remains high. The priorities for these institutions in the early years dealt with refining
the lending methodology, building institutional capacity, maximizing outreach, and growing
the size of the lending portfolio to achieve sustainability.

In recent years, the landscape of the microfinance market has changed dramatically.
Some institutions have become formalized financial institutions, commercial banks have

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started to downscale to serve the traditional clientele of MFIs, and additional microfinance
organizations continue to enter the market. At the same time, clients have become more
sophisticated and discriminating in terms of the types of products and quality of services they
would like to receive from MFIs. Consequently, MFIs have been forced to focus on improving
efficiency by retaining clients and identifying new clients interested in the financial services
offered.

Marketing and Profitability. Another important driving force behind the move to be
more client driven is the MFI’s goal for sustainability and profitability. All microfinance
providers, whether they are nongovernmental organizations (NGOs) with a focus on poverty
lending or for-profit commercial institutions concerned with maximizing their return on
investment, realize that the existence of a strong and permanent institution is crucial in
ensuring the successful provision of microfinance services. The table below

Learning outcome 1: Introduce loan products and services

Compared with its original formula, the microfinance industry has evolved by
expressing ever more complex needs, regarding both microfinance beneficiaries and
microfinance institutions (MFIs). With reference to beneficiaries, the first chapter has shown
how new categories of clients have emerged with an increasing degree of entrepreneurial
capability; these express a demand for increasingly complex financial services, passing from
the category of the ‘poorest of the poor’ to the ‘marginal’ ones. With MFIs, it has become ever
more essential to use alternative forms of financing in respect to the donors’ funds; in fact,
sustainability goals impose on MFIs the need to be independent from subsidies and to access
the market in order to obtain the necessary funds to carry out their business.
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The microfinance industry has been, for a long time, product driven. In the past, the
needs of the client, besides access to credit, were not fully satisfied. The request for more
structured financial products and services, compared with traditional credit, imply a more
complex product development process; this process must be defined starting from the
objectives of the MFI and, consequently, from the identification of the target group. In other
words, in modern microfinance, it is necessary that MFIs should no longer be product driven
but market driven, in order to take into account, the growing level of complexity of the financial
needs of the beneficiaries. Which are the factors that MFIs must take into consideration when
it wants to offer new products beyond plain microcredit? When and how should they offer
non-financial services? Can a single institution offer, at the same time, financial services and
technical assistance or is it necessary to create a partnership with other institutions? Finally,
how can an MFI access the capital market in order to satisfy its funding needs and operate
in a sustainable manner? This chapter will try to answer to these questions that have an ever
greater relevance in the microfinance industry; in fact, offering client responsive products
means pursuing objectives of sustainability through credit methodologies that help the
beneficiaries in fulfilling their own contractual obligations.
Financial services
For a long time, the offer of financial services to low-income clients meant the granting
of microloans to develop microbusinesses. The beneficiaries of microcredit have typically
been ‘the poorest of the poor’, the ‘poor’ and women, who have mainly benefited from small
loans used to finance their cash flow. In the past decades’ microcredit projects have assumed
wider features than their original ones. In modern microfinance the ‘poorest of the poor’ is no
longer the only client. All the victims of financial exclusion have now been added to the
traditional target beneficiaries. In addition to developing countries, there are now
industrialized countries with high levels of financial exclusion; in addition to the non-profit
institutions there is an ever-increasing number of traditional credit intermediaries.
The step from microcredit to microfinance requires the effort of reconsideration of the
business models and the distribution methodology of financial services. It is not by chance
that many authors define the current period as the ‘financial services era’ and underline how
the recent consideration of the variety of new financial services motivates the knowledge of
an increasing complexity and variety of needs of low income clients (Rutherford, 2003). The
poor, in fact, do not only need productive loans: they need further financial services in order
to meet other specific needs. Examples are the demand for credit or savings in order to
provide education for their children; the need for insurance services to deal with shock or
emergency situations; the requirement for savings and insurance services to meet the costs
of old age and funeral services. From this perspective, it is then possible to distinguish
between the following needs:
● medium- and long-term funding needs (circulating and fixed capital);
● access to safe, fast and cheap payment systems;
● saving and liquidity needs;
● risk hedging.

Learning outcome 2: Conduct orientation and briefings on microfinance products and

services

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Examples of Microfinance Services
 Group Loans.
 Individual Business Loans.
 Agriculture Loans.
 Insurance.
 Money Transfers.
 Energy Loans.
 Savings Accounts.

Types of Microfinance Institutions (MFIs).

 Village Savings and Credit Associations (VISACAs),
 Finance Companies (FCs), and.
 Fiduciary Financial Institutions (FFIs).
Financial and Social Orientations of Microfinance Institutions in India
Muneer Babu M. Department of Economics, College of Business and Economics,
Adigrat University, Tigray, Ethiopiawe examine differences in the technical efficiency (TE)
orientation of 79 sample Indian Microfinance Institutions (MFIs) during 2010–2011 under
various combinations of three inputs and three outputs, by using the data envelopment
analysis (DEA). Furthermore, we have used principal component analysis (PCA) technique
to identify various TE orientation of TE in Indian MFIs namely, loan portfolio orientation, client
orientation (i.e. breadth of outreach) and average loan size per borrower (i.e. depth of
outreach) orientation. We find that TE in Indian MFIs tremendously varies when we use
different input and output combinations to specify production. The analysis shows that all fully
technically efficient MFIs have loan portfolio orientation, may be they have financial
orientation. Similarly, some MFIs have breadth of outreach and depth of outreach orientation,
which may be due to their social orientation
Learning outcome 3: Facilitate/Coordinate microfinance training program

Training Program on Microfinance Sector Development for OIC Member Countries

Khartoum, Sudan, July 18-21, 2009:

Microfinance has received most significant recognition of its importance in the 2005
World Summit. The Summit Outcome Document recognized the need for access to
financial services, in particular for the poor, including through microfinance and microcredit.
Support for microfinance was also strongly implied in the endorsement by the
Summit of the 2002 Monterrey Consensus, which states: “Microfinance and credit for
small and medium-sized enterprises, including in rural areas, particularly for women are
important for enhancing the social and economic impact of the financial sector. The
microfinance received further recognition as the year of 2005 has been declared the
International Year of Micro-credit.

The Islamic Chamber of Commerce and Industry (ICCI) as an affiliated institution of

the Organization of Islamic Conference (OIC) and as representative of the private sector is

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also laying emphasis on micro-finance. Therefore, in collaboration with the Islamic Research
& Training Institute (IRTI) of Islamic Development Bank (IDB), the PerezGuerrero Trust Fund
(PGTF)/United Nations Development Programme (UNDP), Central Bank of Sudan and the
Sudanese Businessmen & Employers Federation, the Islamic Chamber organized the
Training Program on Microfinance Sector Development for OIC Member Countries in
Khartoum, the Republic of Sudan, July 18-21, 2009.

The Training Programme was attended by 61 trainees from Member Chambers and
by the senior level representatives of several Microfinance, Commercial & Agriculture

Banks, Central Banks and financial institutions from 17 OIC Countries namely Azerbaijan,
Bahrain, Bangladesh, Burkina Faso, Djibouti, Egypt, Indonesia, Iran, Jordan, Malaysia,
Nigeria, Pakistan, Senegal, Uganda, Uzbekistan, Yemen and Sudan. A list of participants is
enclosed (Annex-I).

Objectives:

The Training Program was designed to create awareness on the microfinance sector
and its effective usage in alleviating poverty by providing poor with access to credit. The
program discussed essential elements of devising a national level Microfinance Sector

Development Program (MFSD) and role of various stakeholders.

The objective of the Training Program was to understand the nexus between
microfinance and poverty in OIC countries perspective in general and to develop strategy for
designing and developing microfinance services in reducing poverty in particular.

Additionally, participants from different countries actively participated and shared their
experiences on the theme.

The overall objectives of the Training Program were as follows:

i) Based on OIC and global experiences, introduce the concept of Microfinance Sector
Development, defining its essential features, identifying the rationale and critical
success factors for supportive policy intervention towards its initiatives in OIC Countries.

ii) The possibilities for using microfinance in poverty alleviation and capacity building.

iii) Study the instruments and policies necessary to foster the Microfinance Sector
Development in OIC Countries;

iv) Provide know-how and support to participants willing to promote Microfinance in the

OIC region.

v) Provide practitioners in the field of SME and local economic development with the
necessary skills to promote the development of Microfinance Sector.

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vi) Knowledge sharing and learning from the case studies and success stories about the best
practices, methodologies, policies and programmes for Microfinance Sector Development
initiatives in OIC Countries.

vii)To study the constraints of microfinance in the OIC Countries and to propose possible
solutions.

In order to achieve the above outlined objective, the Work Plan (Annex-II) was designed
in a manner that all the sessions directly addressed the microfinance sector.

Inaugural Session:

The Training Programme was inaugurated by H.E. Badreldin Mahmoud Abass, Deputy
Governor of the Central Bank of Sudan on 18th July 2009 with recitation of verses from
the Holy Quran.

The welcome address was delivered by H.E. Ali Mohamed El Hasan Abrci,
VicePresident of Sudanese Businessmen and Employers Federation, who welcomed the
participants and wished them pleasant stay in Sudan. He acknowledged the outstanding
contribution made by the ICCI for the promotion of socio-economic development of the OIC
Countries in general and the less developed countries in particular. He applauded the efforts
exerted by H.E. Shaikh Saleh Kamel, President of the ICCI for the interest of the peoples of
the Islamic Countries. He expressed the Federation’s willingness to cooperate and support
all the programmes and activities of the ICCI. He also praised the role of the Central Bank of
Sudan in the organization of the Training Programme and thanked for the personal presence
of H.E. Badreldin Mahmoud Abass, Deputy Governor of the Central Bank of Sudan. He
emphasized the significance of the microfinance sector and welcomed the ICCI initiative for
setting-up of a Microfinance Training Center. Engineer Widad Yaqoob Ibrahim, the
Chairperson of the Board of Directors of the Family Bank of Sudan delivered her speech,
wherein she highlighted the experiment of the Family Bank of Sudan, its services for the
targeted segments. She stated that the vision of the bank is to provide Sharia compatible
services and to assist the poor to have a better standard of living. They opened several
branches in the capital as well as the other states of Sudan through which they are providing
financial services in different modalities such as Modarabah, Musharaka etc.

The message of Mrs. Attiya Nawazish Ali, Assistant Secretary General (Coordination),
Islamic Chamber of Commerce and Industry (ICCI) was delivered by her Assistant, Mr.
Elsadig Gadallah Mokhair. She conveyed the compliments of H.E. Shaikh Saleh Abdullah
Kamel, President of the ICCI and his wishes for the success of the program. She underlined
the importance of the microfinance sector, as one of the priorities of the OIC 10-Year Work
Program and ICCI’s 10-Year Work Plan, hence it is considered an essential instrument for
poverty eradication. She thanked the Central Bank for patronizing the program and their kind
support. Furthermore, she lauded all time support extended by the Islamic Development Bank
(IDB) and the United Nations Development Programme (UNDP) in assisting the ICCI in
poverty alleviation and capacity building. She also thanked the Sudanese Businessmen and
Employers Federation for their hospitality and warm reception to foreign delegates.

Thereafter, H.E. Badreldin Mahmoud Abass, Deputy Governor of the Central Bank of
Sudan presented his opening speech and inaugurated the Training Programme. He
underscored the significance of this program which would help in advancing the microfinance

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sector. He said that the Central Bank of Sudan has devised a comprehensive strategy to
promote microfinance program and at this stage priority is given to training and capacity
building for both the targeted as well as the trainers and the personnel of the Institutions
serving this sector. He called for partnership with the Central Bank for conducting the training
programmes and confirmed the commitment of the Central Bank of Sudan to support the
setting-up of an international training center for microfinance in Sudan for OIC Member
Countries. He assured that this idea shall be materialized as an initiative to support all the
stakeholders in microfinance sector through capacity building programmes by the Center.

Mr. Bakri Yousef Omer, Secretary General of the Sudanese Businessmen & Employers
Federation presented vote of thanks to the co-organizers namely the Islamic Chamber of
Commerce & Industry, Central Bank of Sudan, Islamic Development Bank (IDB), the mUnited
Nations Development Programme (UNDP) and the participants as well.

Working Sessions:

During the four-day Training Programme, eight interactive working sessions were held
and lectures were delivered by expert resource persons. Mr. Ozair A. Hanafi and Ch. Israrul
Haq from Pakistan acted as Lead and co-facilitator in the training course. The working
sessions covered lectures on the following topics (Annex-III):

1. Microfinance Concept, History and Nature of Microfinance Industry

2. The Power of Positive Attitude
3. Social Mobilization & its Prerequisites
4. Business VS Social Approach to Microfinance
5. Group Formation VS other approaches
6. Outreach & Promotion Plan
7. Microfinance Product Design and Development
8. Impacting Bottom Line through the Power of Diversity

Exercises & Group Work

Team Work on Product Development was an innovative approach as a brainstorming

exercise assigned to the participants. The participants were divided into 8 teams with the
objective to design a microfinance product in the area of savings or credit. The product
development assignment primarily focused on the following aspects.

- Title (to be innovative and attractive in name)

- Type of product (saving or credit)
- Criteria for opening of accounts
- Eligibility criteria for any micro financing loan
- Interest rates and repayment frequency / schedule.
- Guarantees on collateral
- Profitability
- Justification

The team composition was done on country representation basis. Each team
consisted of at least 7-8 members. The participants were assigned 3 hours to work in group
form and prepare their presentations in multimedia. Out of these 8 teams, one was assigned
to work on Islamic mode of micro financing and one group on designing of a product

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exclusively for women clients. Each team member showed great enthusiasm in the assigned
task and cameup with new microfinance products on savings & credits.

The team leaders made presentations on the products identified by the team and
explained in detail, the modalities and mechanism alongwith features of each product. Most
of the products were certainly focused to be of innovative in nature and adoption and quite
suitable from perspective of helping the poor to get benefits as a means of poverty alleviation.

The overall objective was to enable the participants to have a clear idea about various
elements involved in designing of a microfinance product. The Resource Persons assisted
the team participants to accomplish the assigned task. The whole process was found to be a
useful methodology to create understanding about microfinance in an effective manner.

Since it was a struggle based exercise, all the participants rated this as a good and
useful exercise for learning and sharing thoughts, particularly for those who had not done
such type of activity before.

Other Presentations:

In addition, Central Bank of Sudan, Graduates Employment Fund of Sudan, Family

Bank of Sudan and Sudan Academy for Banking & Financial Studies also presented their
papers. Moreover, the trainees also presented country papers on Microfinance sector
development in their respective countries.

Presentation by the Central Bank of Sudan:

Dr. Khalid Al-Amin Abdul Gadir, the Director of the Microfinance Unit of the Central
Bank of Sudan, made a comprehensive presentation on the role of Central Bank of Sudan in
Promoting Microfinance Sector for Development Financing. He highlighted efforts so far
made by CBOS in developing Microfinance. He also explained the contextual and strategic
frameworks and the national strategic vision for Microfinance as well as the Bank’s plan of
implementation of the Microfinance strategy. In conclusion he pointed out the Bank’s
contributions in financing social development dimensions and Microfinance future trends,
obstacles, and recommended actions.

Presentation by the Graduates Employment Fund:

On behalf of the Graduate Employment Fund, which is an entity of Ministry of Social

Welfare, Women and Child Affair of the Republic of Sudan, Mr. Ali Ahmed Daghash,
Secretary General of the Graduate Employment Fund made a speech in which he welcomed
the participants and briefed them about the Fund, which is a government mechanism
established for combating unemployment problem among fresh graduates. He introduced Dr.
Islah Hassan Elawad, Training In charge of the Fund, who made an in depth presentation on
the Fund its objectives, policies and achievements. She explained how the fund through
policies advocacy and initiated projects contributes to creation of job opportunities to meet
the high market demand. She showed few samples of successful projects financed by the
Fund. The session was followed by a dinner hosted by the Graduate Employment Fund in
honor of the participants in Burj Al-Fateh Hotel.

Presentation by the Family Bank of Sudan:

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In response to the kind invitation of the Family Bank, all participants visited the Headquarters
of Sudanese Banks Union in the evening of 19th July 2009. They were received by the
General Manager and some of the Senior Executives of the Family Bank. The Governor of
Khartoum State was the Chief Guest of the occasion. He chaired the proceedings, where
comprehensive presentation was made on objectives, activities and progress accomplished
so far by the Family Bank. The Assistant Governor of Central Bank of Sudan has also
addressed the audience and thanked the Islamic Chamber of Commerce & Industry,
Sudanese Businessmen & Employers Federation for their efforts in organizing the program.
The Chief Guest H.E. Dr. Abdul Rahman Al-Khidr, Governor of the Khartoum State welcomed
the foreign delegates and wished their program all success. The Family hosted dinner in
honor of the participants.

Presentation by the Sudan Academy for Banking & Financial Studies:

In response to the kind invitation of the Sudan Academy for Banking & Financial
Studies, all participants visited its Headquarters in the evening of 20th July 2009. The
participants were received by Prof. Dr. Awatif Yousif M. Ali, Chairperson of the Board &
Academy President. The participants were briefed about the Academy’s history, objectives,
programs and future prospects. Later the participants were shown the facilities available in
the Academy. Publications of the Academy were gifted to the visitors. Critical Issues Being
Faced by the Islamic Countries in Microfinance Sector: After the Team Work Assignment, the
Resource Persons held a session on critical issues being faced by the Islamic Countries in
Microfinance Sector.

The participants while taking a keen interest in the sessions shared their views and
highlighted a number of issues in the sector. Some of the issues are summarized as under:

1. Limited outreach of the Microfinance Institutions up to the gross root level;

2. Lack of capacity building programmes for the management staff of Microfinance

Institutions, the functionaries of civil organizations and the beneficiaries.

3. Lack of technical assistance and skill based enterprises development training for women.
4. Loan delinquency (defaults)

5. The poor particularly the rural poor (exclusion of ultra-poor) have little access to credit
programmes due to the lack of awareness and less outreach by the Microfinance Institutions.

6. Lack of Clear policy, vision coordination among the MFIs and the beneficiaries and
effective monitoring mechanism was another issue for consideration

7. Low repayment behavior (high default ratio) on beneficiaries, awareness about MFIs
Products. Procedures of loaning and less marketing opportunities were identified as one of
the critical issues in the success of micro financing in Islamic Countries.

Outcomes:

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The Training Program provided the platform to OIC Member States to share their success
stories of microfinance and draw future guidelines to effectively carry out activities with full
participation of the people living with similar thoughts and beliefs in the region.

Participants were able to develop and recommend strategy for domestic resource
mobilization and management of microfinance programmes in the OIC region. They were
also able to develop financial structure, modalities and instrument, assessing financial
performance and sustainability of micro credit to the poor, capacity building on financial
management for beneficiaries, microfinance as means of increasing income and employment
opportunities for the poor, conducive policies and practices for pro-poor financial system,
products and services of microfinance etc.

Participants demonstrated their abilities in applying key approaches, tools and

methodologies for formulating and implementing Microfinance sector development policies
and strategies.

Developed skills for the removal of functional bottlenecks hampering smooth operations of
Microfinance sector development;

Recommendations:

The training methodology of each session was kept interactive and participatory by
sharing of experiences and best practices in Microfinance Sector. The participants were also
given opportunities to openly discuss the obstacles and constraints they are facing in their
respective countries. During discussions, critical issues being faced by the participating
countries were addressed.

On the conclusion of the Training Program and after in-depth discussion, the
participants of the Training Program put forward the following recommendations:

1. To create an effective awareness mechanism by all the stakeholders and to streamline the
procedures for microfinance among the beneficiaries.

2. To setup a Microfinance Training Centre to take care of the following issues:

 human capacity building of microfinance providers, and stakeholders.
 focus on capacity building of beneficiaries of Microfinance Institutions in micro
enterprise skills, middle management in operational and marketing aspects and senior
level management in policy issues.
 research on various aspects of micro financing and Islamic mode of financing may be
the area of focus.
 prepare training modules for all the three tiers of clients and organize training courses
for all the stakeholders of OIC Member States and workshops / seminars of senior
level management.

3. Propose to policy maker a uniform regulatory framework and guidelines to develop

innovative products and services may be created to assist the MFIs of Islamic Countries.

4. To prepare possible mechanism for development of synergies and partnership with

microfinance institutions of Islamic Countries.

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5. To call upon concerned public and private sector institutions in OIC Countries to provide
Microfinance not only to setting-up new projects, but also to focus on upgrading the existing
small businesses.

6. To call upon Islamic Chamber of Commerce & Industry to continue holding such useful
Training Programs for the benefit of all the stakeholders.

7. ICCI should promote public private sector partnership to create a competition amongst
MFIs to help in lowering the interest rates and launch innovative and attractive microfinance
products in the market. For this support of technology and involvement of private sector mega
banks needs to be promoted.

8. ICCI should play a catalyst role in creating strong linkages with MFIs of all the Islamic
Countries.

Immediate Outcome:

In order to implement one of the recommendations adopted during the Training

Program, it was unanimously agreed to sign a Memorandum of Understanding (MoU) among
Islamic Chamber of Commerce and Industry (ICCI), Central Bank of Sudan (CBOS) and
Sudanese Businessmen & Employers Federation (SBEF) for setting-up of Microfinance

Training Institute in Sudan.

The participants welcomed and appreciated the initiative and the importance of the
Centre to address the issues of capacity building in microfinance sector.

Training Evaluation:

The participants’ evaluation of the training program was completed before the
concluding session; each having submitted his/her inputs through a questionnaire. This
brought in a good deal of information about the perceived impact of the program. A review of
this information revealed the usefulness of the knowledge that had been gained in the
discussions, group work sessions and exercises.

Learning outcome 4: Assist clients on promoting their products

Ways to promote your product or service

Marketing is more than just an advertising campaign; it should result in revenue for
your business. Understanding the different ways to promote your product or service can help
you make the right choice for your business.

PRINT AND GRAPHIC ARTS MEDIA

Depending on the type of message you want to communicate to your customers, print
media offers different options, including: brochures, business cards, newspaper ads and
magazines.

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 Brochures, posters and packaging are a cost effective way to provide a variety of
messages and detailed information about your products and services.

 Business cards can be used to support your networking activities and give potential
customers the information they need to contact you.

 Local newspaper advertising is a way to reach people in your community and

repeatedly exposes them to your message in order to create a stronger local presence
for your business.

 Magazines have the advantage of targeting a more specific audience of subscribers

who are interested in the topics it covers.

ELECTRONIC MEDIA
Electronic media is a general term for any media that requires an electronic device for the
content to be accessed. Some of the most common forms of electronic media include
television, radio, internet and content for mobile devices.

 Television content captures more audience time than any other media and is targeted
at home audiences.

 Radio is cost effective, and the audience is usually loyal to a station's program format.

 The internet offers you a variety of different ways to market your product or service
on a website or by email.

 Cellphones and smartphones allow for marketing tactics that let you reach
customers directly on their mobile devices.

 Social media marketing encourages online interaction between your customers and
your business using various social networking sites.

ADDITIONAL PROMOTIONAL IDEAS

Promotional gifts, like pens, key rings and calendars, can be given to individuals and groups
that you know personally to help create a positive opinion of your company and improve its
reputation.

Networking and community involvement can also support the promotion of your business.
You can make new contacts and reach out to potential customers by participating in trade
shows, conferences, community activities and other networking events. Speaking to people
about your business can be one of the most effective ways of promoting your product or
service.

Planning your marketing strategy will help you determine the best way to promote your
product or service, allow you to measure your success against set goals and provide you with
a clearer idea of where your strategy may need adjustments.

Microfinance Institutions Must Enhance Client Protection to Better Serve Clients

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Microfinance institutions must ensure that clients are treated in a fair and transparent
manner, and are able to fulfill their debt.

Microfinance is a critical tool for low-income households to escape poverty and for
micro enterprises to sustain their business. In Asia and the Pacific, the microfinance market
has been growing backed by strong demand and intensive policy support.

However, growth with low credit discipline may encourage excessive credit supply and
over-indebtedness of borrowers. For instance, lack of transparency in loan pricing and
alleged abusive debt collection by microfinance institutions triggered a microfinance crisis in
Andhra Pradesh, India, which raised its head in 2010. Financial consumer protection is thus
an essential ingredient to deliver quality and sustainable microfinance services.

Microfinance client protection has been drawing increasing attention from

policymakers, regulators, microfinance service providers, borrowers, and civil societies, as
well as global communities such as the G20.

The Smart Campaign, implemented by the Center for Financial Inclusion at ACCION
International, plays a leading role in developing and promoting a set of client protection
principles for microfinance institutions to address 7 issues: (i) appropriate product design and
delivery; (ii) prevention of over-indebtedness; (iii) transparency; (iv) responsible pricing; (v)
fair and respectful treatment of clients; (vi) privacy of client data; and (vii) mechanisms for
complaint resolutions. Although a number of microfinance institutions have endorsed the
Smart Campaign to protect their clients, there remain many institutions having yet to do so in
Asia and the Pacific.

In 2015-2016, ADB and the Smart Campaign carried out training programs on
microfinance client protection in Azerbaijan, India, Kyrgyz Republic, Lao PDR, Myanmar, and
Papua New Guinea. The objective was to provide practical guidance for microfinance
institutions to ensure that clients are treated in a fair and transparent manner, and are able
to fulfill their debt.

The microfinance markets in each of these six countries are all growing but have
different profiles in size and depth (see table) as well as different challenges. In Azerbaijan,
for instance, dollarization of microcredit is a critical cause of client over-indebtedness. In
India, the Andhra Pradesh crisis was caused by poor governance and discipline within the
industry that allows households to take multiple loans with high interest rates that they could
not repay. In the Kyrgyz Republic, rural clients have limited financial education and a risk
defaulting after having taking out multiple loans from smaller financial institutions that
undermine consumer protection.

Each government has its own strategy to boost consumer protection in microfinance
based on its understanding of current market conditions. In India, the Andhra Pradesh
government enacted the Microfinance Ordinance in 2010 to protect microfinance borrowers,
and at the national level the Reserve Bank of India has set the Fair Practice Code. The Kyrgyz
Republic implemented the Microfinance Development Strategy 2011-2015 which promoted
consumer protection rights. Lao PDR has established a taskforce to prepare the legal
framework for microfinance consumer protection. Myanmar enacted the Microfinance Law in
2011 and instructions including consumer protection. Papua New Guinea launched a

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consumer protection working group in its 2014-2015 National Financial Inclusion and
Financial Literacy Strategy.

Consumer protection in microfinance is not only about fair treatment and safeguard of
clients’ individual rights, but also relates to the governance of microfinance institutions. It has
a direct bearing on the ability of the industry to achieve its fundamental social mission of
poverty reduction, while ensuring sustainability of operations. Microfinance institutions must
deliver demand-driven, quality services to these clients, so as to reach more low-income
people and develop the industry in a health way. ADB’s 2012 Special Evaluation Study on
Microfinance Development Strategy called for increased support to consumer protection to
make microfinance demand side-oriented and more beneficial to borrowers.

Advanced technology has been diversifying microfinance services available for low-
income people, while a new risk set –such as cyber risk and money laundering– has come
out. This requires further sophisticated client protection measures and education for
microfinance institutions. The training programs helped participating microfinance institutions
acquire appropriate knowledge and skills on client protection to provide traditionally
underserved clients with high-quality services. The next step is to secure more focused
training at the national level to adapt these institutions to rapidly changing technology in the
industry, and how it will affect client protection.

Understanding In Microfinance, Clients Must Come First

In the debate over whether microfinance works, few microfinance institutions articulate
what, exactly, their ultimate goals are and how, exactly, they will achieve them. The authors
cut through the confusion by mapping a clear theory of change for microfinance. If the goal
of microfinance is to alleviate poverty, they say, then MFIs should focus on helping their
clients build successful enterprises, rather than on making more and bigger loans.

Microfinance may be one of the world’s most powerful new solutions to poverty, as
well as to the wars, diseases, and suffering that poverty ignites. If it works.Supporters of
microfinance contend that small loans fuel economic self-sufficiency. They point to the billions
of dollars that microfinance institutions (MFIs) such as Grameen Bank, Acción International,
and Opportunity International (OI) have given to millions of small-time, impoverished
entrepreneurs. They cite research showing that microloans increase household consumption,
give women more clout in their communities, encourage the use of contraceptives, and
improve the nutrition of young children.

Critics, in contrast, contend that the world’s most vulnerable people are often in no
position to take on the risks of entrepreneurship. They point to evidence showing that stable
jobs in large industries, not volatile small businesses, lift people out of indigence (see
“Microfinance Misses Its Mark” in the spring 2007 issue of the Stanford Social Innovation
Review). They cite research showing that microfinance clients have been known to scrimp
on food, sell their furniture, borrow from loan sharks, and take second jobs to pay off their
loans; that husbands, sons, and fathers-in-law often take control of women’s loans;4 and that,
overall, microfinance fails to find its way to the world’s poorest people.

These two camps disagree partly because studies of microfinance are, indeed,
inconclusive. MFIs vary so much in their missions, strategies, and tactics that assessing their
overall impact – or comparing them to each other – is not yet possible. At a more prosaic

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level, MFIs usually operate in places where it is difficult to conduct research – places that are
geographically isolated, politically unstable, technologically backward, and educationally
disadvantaged.

But the largest barrier to understanding whether microfinance works is that few MFIs
have clearly articulated what it would mean for microfinance to work – let alone how it could
work, for whom it could work, where it could work, or when it could work. In other words, few
MFIs have explicitly formulated their theory of change – that is, an explanation of how their
activities could lead to their desired outcomes. Without a clear theory of change, these MFIs
invest resources, launch programs, and track outcomes that have little to do with their ultimate
goals.

For most MFIs, that ultimate goal is to alleviate poverty. Many MFIs do not explicitly
state this. Instead, they say that their goal is to give poor people access to credit. But their
donors, staff, and beneficiaries draw the last two links in the chain of logic: Access to credit
will help beneficiaries establish profitable businesses that will, in turn, make them
economically self-sufficient. We call these organizations institution-centered MFIs, because
their theory of change – often implicit – is that building financial institutions for poor clients
will eventually help lift these clients out of poverty. In keeping with this theory of change,
institution centered MFIs aim to serve as many clients as possible by offering a few basic,
high-quality, low-cost services. They assume that their clients will be able to use these
services to improve their businesses and, in turn, their socioeconomic standing. And like
banks, they track financial outcomes such as loan repayment rates, loan sizes, and number
of clients.

Yet few MFIs elaborate exactly how their beneficiaries will create those successful
businesses. This is an egregious oversight, as the vast majority of microfinance clients have
no prior business or banking experience and little formal education. We have even heard
about female clients who were not sure whether they were allowed inside banks.

Through our fieldwork and research in Ghana, Malawi, Zambia, and Nicaragua, we
have started to formulate a different theory of change for microfinance – a theory that
addresses the unique needs of poor clients. We call this approach clientcentered
microfinance. (See figures on p. 42 and p. 43 for the logic models of institution-centered and
client-centered MFIs.) Rather than nurturing only the success of the MFI, client-centered
microfinance also nurtures the profitability of borrowers’ businesses – and, in turn, clients’
economic and social well-being. To do this, MFIs must provide far greater services than
traditional financial institutions do. They must offer not only financial products and services,
but also financial education, management training, value chain support, and social services.
They should track how their clients use their loans and how they allocate their profits. They
should monitor poverty alleviation using measures of not just income, but also health,
nutrition, housing, and education.

Although client-centered microfinance practices are not widespread, and no single

MFI, to our knowledge, currently implements all of the practices we recommend, early
evidence suggests that client-centered microfinance would more readily alleviate poverty
than institution-centered microfinance.6 At the same time, economic pressures and the
growing importance of financial sustainability are pushing many MFIs to become even more
institution-centered. Yet if the goal of microfinance is to alleviate poverty, MFIs should adjust
their theories of change to a more client-centered approach.

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Institution-Centered Microfinance

Microfinance refers to financial services – most commonly loans, savings, and

insurance – delivered in small denominations to poor clients who lack the collateral, credit
history, or other assets to enter the formal financial system. The MFI industry has long viewed
its primary role as delivering loans to poor clients (see sidebar on p. 41 on the growth of
microsavings). If clients are able to pay back their loans and take out new ones, the story
goes, they must be getting economic and social benefits from them. Indeed, MFIs routinely
report repayment rates of over 95 percent. And today, there are 100 million people receiving
microcredit loans from more than 3,000 institutions.7

Yet these metrics can hide how poorly an MFI’s clients are faring. MFIs often lend to
groups, and so they do not report when individual clients within the group default. From the
institution’s perspective, this makes sense: There is no default if the rest of the group repays
the loan. But from the clients’ perspective, one person’s default means more suffering for
everyone. Other group members are forced to make up the difference – often with great
hardship. And the debtor, in turn, faces the wrath and sometimes violence of the other
members. Some debtors have even resorted to suicide, as several highly publicized cases in
Bangladesh reveal.8 And so high loan repayment rates don’t necessarily indicate wealthier,
happier clients.

Pressure to post high repayment rates also leads many MFIs to neglect the truly poor.
For instance, the Mexican government designed the Solidaridad program to make loans to
the poorest farmers in the country. Yet a recent study found that less than half of the loans
went to the poorest 40 percent of the population. And more than 10 percent of the loans went
to the wealthiest 20 percent of the population.9 A recent study of MFIs in 49 developing
countries shows why: The banks serving the poorest borrowers had the highest average
costs.10

Another common indicator of an MFI’s health is the average size of its loans. Yet a
study in Bangladesh found that the larger the line of credit, the more families borrowed, rather
than saving some of their credit for future use. These families also continued to borrow from
informal sources, thereby plunging them into excessive indebtedness.11

Adopting the practices of commercial banks can allow MFIs to serve more clients and
therefore can increase their social impact. But the pressure to instill more financial discipline
often shifts organizations’ focus away from their original mission. As a result, many firms can
recite their portfolio at risk (PAR) percentages to two decimal places, but few have even rough
estimates of the percentages of their clients who eventually move out of poverty.

Services for Microentrepreneurs

Leaving poverty does not depend on repaying one’s loans. Leaving poverty depends
on creating a successful business. Yet too few MFIs focus on helping their clients use their
loans to create successful businesses. Some that have shifted to a client-centered approach
appear to have had more success.

Beyond financial services, most MFIs offer basic loan repayment training. Generally
the training is limited to emphasizing the importance of repaying the loan and of applying the

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loan to the business, rather than spending it on personal needs. Yet clients often face health
emergencies and family crises, and also want to spend some of the loan proceeds on
education. And so MFIs need to give clients more training in financial literacy and money
management so that they can better meet both their business and personal needs. At
present, MFIs do very little of this.

Moreover, mastering loan management does not lead to generating profits. Just
because clients use a loan to stock more inventory, for example, does not mean that they will
be able to sell the goods at a profit. And just because they sell goods at a profit does not
mean that they can generate enough profits to support household needs, business
reinvestments, and loan repayments – sometimes at interest rates as high as 60 percent per
year. Yet that is exactly what most MFIs and clients presume.

There are exceptions. Opportunity International, an Oak Brook, Ill.-based MFI with
operations in 30 countries, gives business training to its clients. In Peru, the Foundation for
International Community Assistance (FINCA), a Washington, D.C.- based MFI, teaches its
clients how to identify their customers, market their products, and perform basic accounting.

A recent study found that FINCA clients who received business training increased their
profits, reinvested more profits into their businesses, and maintained better records than did
clients who did not receive the training.12

Other MFIs offer enterprise-specific training. The Tanaoba Lais Manekat (TLM) not
only helps poor cattle farmers in East Nusa Tenggara, Indonesia, buy cows, it also teaches
them best practices in cattle husbandry and offers them support services, such as
vaccinations. In another program in East Nusa Tenggara, TLM teaches seaweed farmers
both business development techniques and better seaweed cultivation methods. Some 87
percent of TLM clients in the seaweed cultivation program state that their profits and savings
have increased since they joined the program.

To make businesses even more productive, some MFIs have targeted the health and
happiness of the clients themselves, offering training in areas such as nutrition, health care,
and domestic problem solving. These social services not only help clients profit from their
loans, but also aid in the development of human capital – an important contributor to the
alleviation of poverty.

The Bangladesh Rural Advancement Committee (BRAC) makes the business case
for improving the health of microentrepreneurs. The nongovernmental organization (NGO)
noticed that borrowers had a much harder time repaying their loans when they or their families
fell ill. And so BRAC introduced its essential health care program – monthly community
meetings about disease prevention, nutrition during pregnancy, local sources of essential
vitamins, and other health topics. A health program organizer facilitates the meetings with the
help of community health volunteers whom BRAC trains. BRAC volunteers also go door to
door to deliver information about sexually transmitted diseases, reproductive health, and
domestic violence. Since the program’s inception, childhood malnutrition and mortality have
declined more among BRAC member households than among nonmember households. The
BRAC field staff strongly support the educational programs and believe that there is a strong
correlation between clients’ participation in the programs and their successful use of credit. 13
A final client-centered service that MFIs can provide is value chain support – which includes
linking clients to customers and suppliers, conducting regional economic analyses, and

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standardizing production to enable bulk sales and export. TLM, for example, links seaweed
producers in East Nusa Tenggara to domestic and international markets. Likewise, OI is
organizing an agricultural cooperative in Granada, Nicaragua, that will deliver cassava to
local as well as to U.S. and Canadian markets. Although cassava is one of Nicaragua’s
leading exportable crops, low local market prices have discouraged farmers in Nicaragua
from growing it. OI will help the cooperatives develop techniques that greatly extend the shelf
life of the cassava, as well as establish business agreements with U.S. and Canadian
distributors.

Client-Friendly Products and Practices

Client-centered microfinanciers need not only provide services after the fact of lending,
they should also consider clients’ needs on the front end. Meeting clients’ needs begins with
an analysis of client economics. Too few academics or practitioners have studied how clients
use their loans. For example, MFIs award many of their smallest loans to traders and service
providers who use the loans to purchase inventory. But no one seems to know how these
clients use their inventory to generate profits. Do they sell it gradually over the sixmonth loan
cycle, or do they replenish their inventory every two days? How do they decide how much to
mark up their inventory? Will their markups be enough to cover the loan payments and meet
household needs? In some cases, MFIs make inventory loans to clients who are unlikely to
use them for inventory. What does a produce vendor with sales of $20 per day do with a $200
loan?

When standardized loans are mismatched with client needs, clients may borrow more
than they need, pay higher than necessary costs, or make poor choices, like skimping on
quality or selling out inventory stocks to meet an unforgiving payment cycle. And so
understanding how clients use financial products can help MFIs tailor their financial products.

Prizma, an NGO in Bosnia and Herzegovina, is one organization that has adjusted its
practices to accommodate its clients. Like poor people everywhere, Prizma’s rural clients
often face family crises and intermittent income, which make it difficult for clients to pay back
their loans consistently. To accommodate this reality, Prizma adjusted its incentive system
so that loan officers were no longer under pressure to maintain zero arrears. Loan officers
now take into consideration a client’s circumstances and renegotiate repayment terms when
clients experience financial setbacks.14

In this and many other cases, the loan officer makes or breaks borrowers’ experience
(for a related article, see “Luck of the Draw” in the spring 2007 issue of the Stanford Social
Innovation Review). In addition to being the face of the MFI, the loan officer can give clients
the information and support they need to thrive in business and at home. During early
discussions of the loan process, the loan officer can help determine the appropriate loan
amount and how the client will earn enough to repay. In other words, loan officers should
spend less time chasing defaulting clients and more time avoiding defaults in the first place.
To do this, loan officers need not only financial expertise, but also the knowledge and skills
that will help them identify target clients, encourage them to learn about the MFI’s financial
services, evaluate their needs, assess their character and capacity for repayment, and
interact with them with the appropriate language and cultural nuance.

MFIs should also consider the burdens their clients bear when accessing financial
services. Tangible costs include those of obtaining information about the services, applying

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for the loan, getting transportation to make loan payments, and tracking the debt. Intangible
costs include the stress of getting temporary loans from other sources, the familial discord
that arises from shifts in balances of power, and the time spent learning about lending – and
away from business, family, and other activities. OI in Malawi recognizes these difficulties,
and allows groups to shift from a weekly payment and meeting schedule to a biweekly or
monthly schedule once they have proven their ability to repay the loans. The organization
also holds its training sessions on a monthly basis, which reduces clients’ traveling time.

A final way that MFIs can better serve their clients is to measure whether their loans
are actually moving people out of poverty. Grameen Bank does this with its poverty index.
The index includes socioeconomic indicators such as whether schoolage children are
attending school and whether family members are free from treatable health problems. Such
metrics can show whether loan officers, branches, and MFIs are achieving their social goals.
They can also be used as a basis for rewards and resource allocation decisions.

Expanding the Niche

MFIs have all but ignored how clients use loans and other resources to build profitable
businesses. Many of them hold the view that giving poor people access to financial services
alone will relieve poverty. Others know that increasing access to financial services is not
enough to alleviate indigence, but think that providing other services and products is too far
from their mission or too challenging and costly. The background of their senior staff members
is often banking, and so they rightly believe that their core competence is banking services,
not health and human services. And so most MFIs leave education, training, value chain
support, and so forth to other organizations, and instead stick to their institution-centered
niches.

If MFIs are serious about alleviating poverty, though, they must provide more training,
support, and products tailored to poor clients. The success of microenterprises is critical both
to alleviate poverty and to drive financial returns to the MFI. When microenterprises fail to
make profits, clients must reduce their consumption, sell valuable assets, take on more debt
from other sources, or default on their loans. MFIs also suffer, losing revenue and posting
unfavorable returns.

Although the ranks of micro entrepreneurs are swelling, MFIs must remember that
their clients are often in business by necessity, rather than by choice. Most microfinance
clients have no training, education, or role models in business, and therefore are unlikely to
cultivate successful microenterprises on their own. They are not entrepreneurs in the
traditional sense. If their communities had jobs and if their family situations permitted it, they
would be employed. Yet the large-scale, labor-intensive enterprises that generate stable
employment will not arrive in most developing countries any time soon.

To make microfinance work for more people, more often, in more places, MFIs need
to think clearly about how their practices will bring about the changes they seek. This may
mean making fewer microfinance loans and incurring more costs to support the loans they’ve
already made. The benefit, of course, is the building of sustainable businesses. The
challenge is finding ways to provide these additional services efficiently. In our current
research, we are designing and testing these client-centered practices. We hope that our
results will ultimately lead to the broader application of effective and cost-efficient client-
centered microfinance programs.

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Learning outcome 5: Administer survey on enhancement of MFI products and services

Product survey
Simply put, a product survey is a tool that a company can use to learn what their users
think about their products. Running a survey before launching a product means you get to
see what people really want and need.
Plus, it can help you with the creation and design of what you’re making—so
companies really shouldn’t forget the importance of product research.
Now you can also use product surveys for an existing product, so you can see how
people are enjoying their experience and how the product can be improved. So they’re always
useful.
Product Survey Questions Examples
We’ve made a list of some of our favorite product survey questions to help you conduct
product research that’ll make a difference to your company.
Let’s take a look at some example product survey questions to ask customers about your
product:
1. How often do you use our products?
2. Which features are most valuable to you
3. How would you compare our products to our competitors’?
4. What important features are we missing?
5. What are you trying to solve by using our product?
6. What other types of people could find our product useful?
7. How easy is it to use our product?
8. How would you rate the value for money?
9. How likely are you to recommend this product to others?
10. How could we improve our product to better meet your needs?
11. How often do you use our products?
1. How often you used our products?
Start simple. With this question, you can see which products your customers are using and
how often they’re using them.
This will make the following questions even more useful—you can see which products
are making people happy, which ones aren’t, and which products your most dedicated
customers are using.
2 Which features are most valuable to you?

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It’s pretty unlikely you only offer a single product with one single feature. This question
lets you know which parts of your product are the most valuable to your clients.
You might even be surprised to learn your customers use your product totally
differently to how you imagined. Maybe a small feature, one you perhaps added as an
afterthought, is what’s keeping people with you.
3 How would you compare our products to our competitors’?
Let’s not beat around the bush. If you have a product, someone else out there is
offering something similar. You want to know how you stack up.
Knowing where in the market your product falls, or at least how your customers see it, can
unveil some really useful insights. It can tell you how to market your product in the right way,
to the right people.
4 What important features are we missing?
This will help with new products and features down the road. Companies often spend
a lot of time and put money into a new product, to find that their customers have no use for
it.
This question could even reveal small things that you hadn’t considered that could be
implemented relatively quickly.
5 What are you trying to solve by using our product?
Your users use your product because it solves a problem for them. It’s that simple. But
do you really know what problem is being solved here?
Asking this question could unearth aspects of your product that need a bit of fixing up.
It could even open a path for future products or features. Imagine if your existing product is
being used for something you weren’t aware of. Now imagine how popular it could be if you
focused on that problem as much as the others.
6 Who else could find our product useful?
Asking this is a great way to find potential new users for your product—maybe even a
whole group of people you had never even considered as being your audience. And finding
new people to sell your product to can be difficult, so why not get your existing customers to
help you out?
7 How easy is it to use our product?
Your product might work well for seasoned users—but what about your new sign-ups?
Here you might find that the product isn’t as intuitive as you thought and this can be
new user repellant if they get frustrated. So consider simplifying certain parts of the product,
or offering video tutorials or helpful hints throughout.
8 How would you rate the value for money?
Knowing how affordable your product is for your customers is huge.

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If it’s too expensive, then imagine all the potential sales you’ve lost by just pricing out
some of the more value-focused people. And if people are saying that value for money is
great? Well, then it might be time to build some premium features to generate more revenue.
Important to remember here—if you’re asking your existing customers this question, then
you’re only speaking to the people who you know can afford your product.
9 How likely are you to recommend this product to others?
This is one of the most popular survey questions. And for good reason.
Your Net Promoter Score lets you know how your customers are talking about your
product to others. If it’s positive, then you have a huge group of people doing your promoting
for you. So maximize that.
If it’s negative, then that makes this whole survey even more important. If your
customers are talking trash about you, or if they’re thinking about leaving you, then you really,
really need this feedback.
So let them know they’ve been heard, and tell them the changes you’ll be making. You
might be making money now, but dissatisfied customers rarely stay around for long.
10 How could we improve our product to better meet your needs?
This is a broad and basic question—but it’s important.
Your customers know better than anyone how useful your product is. Asking this
question lets you know where you should be focusing your efforts to make your customers
as happy as possible.
Save this question for the end of your survey. You want your readers to have time to
think about the product by asking them the previous questions first.
So by asking this as a final question, everyone responding to your survey should have
your product, and their experience with it, clear and fresh in their mind.
Top tips for asking product survey questions
Before you launch any survey, you need to have a purpose. So plan ahead, find out
the key pieces of information you want from your customers, and craft your survey around
that plan.
You probably don’t want to include every survey question from the list above. Don’t
bore your customers with an endless list—if you do, you’ll just end up with rushed answers.
Just pick the questions you need to have answered now, and launch another survey down
the road if you have more to ask.
Finally, let your customers know their feedback will be used. They’re giving up their
time to help improve your product—so don’t let it go to waste. Once you’ve gathered your
answers and given them a proper read, get back to the people who responded and let them
know what the future holds.
There are lots of ways to run a survey and even more ways to use the information
you’ve learned. Whether you want to analyze your data in a Google Sheets spreadsheet,

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connect your answers through Hubspot or automate responses and communications with
Mailchimp, Typeform’s got you covered.

ACTIVITY
Modified true or false No. 1. Write True if the statement is true; Write false if the
statement is incorrect, (2 points each)

_______________1. Microfinance comprises several financial tools such as savings, credit,

leasing, insurance and cash transfers.
_______________2. The term “marketing” is usually associated with advertising,
promotional, and public relation activities aimed at selling a product, service, or concept.
_______________3. The microfinance industry has been, for a long time, product driven. In
the past, the needs of the client, besides access to credit, were not fully satisfied.
_______________4. financial services to low-income clients meant the granting of
microloans to develop microbusinesses.
_______________6. The Training Programme was inaugurated by H.E. Badreldin Mahmoud
Abass, Deputy Governor of the Central Bank of Sudan on 18th July 2009 with recitation of
verses from the Holy Quran.
_______________7. Team Work on Product Development was an innovative approach as a
brainstorming exercise assigned to the participants.
_______________8. The training methodology of each session was kept interactive and
participatory by sharing of experiences and best practices in Microfinance Sector.
_______________9. Marketing is more than just an advertising campaign; it should result in
revenue for your business. Understanding the different ways to promote your product or
service can help you make the right choice for your business.
_______________10. Simply put, a product survey is a tool that a company can use to learn
what their users think about their products.

Enumeration No. 2.: Enumerate the following

1. Indicate some example of product survey questions

2. The following aspect of the product development

Essay No. 3.: Give your own though and opinion

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1. What important features are we missing?
2. What are you trying to solve by using our product?
3. Who else could find our product useful?

WEEK 11
UNIT COMPETENCY 3: FORM GROUP OF MICROFINANCE CLIENTS

Lesson Objectives: At the end of this lesson, the students should be able to:
1. Learn to meet with barangay official/s
2. Know schedule and conduct family background investigation/CCI/BI
3. Organize group/center/cluster
4. Orient group officers/center/officer on their roles and responsibilities

Who are the clients of microfinance NGOs?

a. Poor and low-income individuals or families that fall below the low-income threshold, as
defined by National Economic and Development Authority [Section 3(d) of the Microfinance
NGOs Act]; b.

Learning outcome 1: Meet with barangay official/s

Rural Microenterprise Finance Project. In 1996, ADB approved a $20 million loan for
the Rural Microenterprise Finance Project. The Project aimed to support efforts of the
Government of the Philippines to strengthen rural financial institutions by assisting
organizations that employed the Grameen Bank Approach in providing credit to the poor. The
objective of the Project was to reduce poverty, create employment opportunities, and
enhance the incomes of the poorest of the rural poor (the ultra poor)—the bottom 30% of the
rural population as measured by income.

The Project provided two credit lines to help meet the incremental financial
requirements for a nationwide expansion of the Grameen Bank Approach. First, the
investment loan component, which supported the incremental investment requirements of
institutions known as Grameen Bank Approach replicators9 for relending to self-help group
members. Second, the institutional loan component, which supported institutional
development and strengthening of the participating institutions.

The Project ended in December 2002. The project completion report rated the Project
“highly successful”. The project performance evaluation report rated the Project “successful”
because the investment and institutional components met their goals. The Project brought
microfinance into the mainstream of the financial system. With the participation of rural banks,
cooperative rural banks, cooperatives, thrift banks, and non-government organizations
(NGOs), the Project demonstrated that the Grameen Bank Approach can be replicated
nationwide.

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Rural Livelihood Project

In 1998, ADB approved a $42.26 million loan to support the poverty reduction efforts
of the Government of Bangladesh by creating sustainable farm and nonfarm employment. A
corollary objective of the Project was to transform successful cooperatives of the completed
Rural Poor Cooperative Project11 into sustainable microfinance institutions (known as District
Bittaheen Banks). The Project had four components: (i) the formation of landless poor
societies and provision of microfinance services to society members, (ii) project
management, (iii) support of the Rural Poor Cooperative Project, and (iv) support of a pilot
District Bittaheen Bank.

The Project aimed to provide support for more than 500,000 members to start
microenterprises and income-generating activities. Of these, 246,000 would be new
members and the rest would be existing Rural Poor Cooperative Project participants. The
project area covered 152 thanas (subdistricts), of which 70 thanas were underdeveloped with
a large proportion of their populations living in poverty. The remaining 82 thanas comprise
Rural Poor Cooperative Project areas that require modest amounts of further support until
they become self-sustainable.

Learning outcome 2: Orient target clients

Target client orientation

The consumer orientation emphasizes on understanding consumers' real needs, and

satisfying them better than any competitor. It requires the company to define the consumer
needs from consumer's point of view. Company must do everything possible to meet
expectations of the target consumers.

An organisation focus (and subsequently its marketing) is centred around five key
categories, classified into the following orientation groups: Production orientation, product
orientation, sales orientation, societal orientation and market orientation

Client oriented approach

Client oriented approach is an organization of work whereby client requirements form
the structure of company's business processes and company's resources are consolidated
for creation and supply of customer's values. A big role in client centered structure is played
by the workforce.

Learning outcome 3 Schedule and conduct family background investigation/CCI/BI

The best background check services offer a fantastic way to find useful information for
people online. This can help you assess a person or find someone more easily.

To be clear, this isn't for use professionally, as is laid out by the Fair Credit Reporting
Act (FCRA), so you can't use this for work related searches.

When you do start using one of the best background check systems you'll find you
have access to public information for criminal records, previous addresses, employment

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history and even contact details. It's also worth cross referencing with the best people search
sites for optimal accuracy.

You may also include a short survet and ask clients regarding their family tree or family
background and financial status.

Learning outcome 4: Organize group/center/cluster

Customer clustering
Customer clustering or segmentation is the process of dividing an organisation's
customers into groups or 'clusters' that reflect similarity amongst customers in that particular
group.
Example of clustering

Retail companies often use clustering to identify groups of households that are similar
to each other. For example, a retail company may collect the following information on
households: Household income. Household size.

In MFIs clustering is to classify clients into clusters according to their family status ang
financial background. To have assurance of their capacity to pay such loans.

Cluster analysis is a technique used in machine learning that attempts to find clusters
of observations within a dataset.

The goal of cluster analysis is to find clusters such that the observations within each
cluster are quite similar to each other, while observations in different clusters are quite
different from each other.

Learning outcome 4: Orient group officers/center/officer on their roles and

responsibilities

Developing Staff Orientation Programs

Learn how to develop a staff orientation so new staff members can understand and adjust
to the organization and their jobs, and quickly become effective.

 WHAT IS A STAFF ORIENTATION PROGRAM?

 WHY RUN A STAFF ORIENTATION PROGRAM?
 WHAT ARE THE ELEMENTS OF A STAFF ORIENTATION PROGRAM?
 HOW DO YOU CONDUCT A STAFF ORIENTATION PROGRAM?

Imagine starting a new job in a community-based organization in a new area. You accept
the position, show up for work on the agreed-upon day, and the director shows you your
space, welcomes you to the organization...and leaves. That's it - your introduction to your
new position. You're on your own to learn all the ins and outs of the job and the organization
- who your co-workers are, who does what, what the pitfalls of your position are, where to eat
lunch...all of it.

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Do you think you'd be likely to be able to do your best work - or any work, really - in the
first few weeks or months? More important, how would you feel about working for this
organization? Would you have confidence that these folks had things under control, that
they'd thought out what they were doing?

Fortunately, most organizations don't operate this way. New staff members are generally
given at least some idea of what they're supposed to do, introduced to other staff, shown
around, and made to feel welcome. Most organizations find it useful to conduct a short
informal orientation, or - if they have the resources - a longer, more formal one, for all new
staff, so that they'll learn much of what they need to know to do their jobs before they actually
start working. Yours can do the same.

WHAT IS A STAFF ORIENTATION PROGRAM?

The word "orientation" literally means being turned toward the east, i.e. getting the
basic information that tells you where you are and how to get where you want to go.
Orientation to a new job should give a staff member the basic information about the
organization, her position, the target population, and the community, so she, too, can
understand how to get where she wants to go. All or most of an orientation, therefore, should
best take place before the job starts.

In reality, however, many organizations find it hard to schedule orientations right away,
and new staff members may flounder for several days or weeks before they get any official
introduction to the organization. It's worth it to make time for an orientation when it's needed -
before and while the new staff member actually begins working. Conducting an orientation at
the right time makes more sense not only for the staff member, but for the organization as
well. You'll save much more time in the long run, through the staff person knowing what he's
supposed to do and how to navigate in the organization, than you'll save by putting it off.

Staff orientation programs may look either formal or informal, may be as short as a
day or may continue through a month or more, may or may not include some training.
The organization should think out beforehand what a staff orientation for that organization
should look like.
 What's important for staff to know?
 Does the organization have unique features that are especially necessary for staff
members to understand?
 What's different about the target population?
 Who are the important people, within and outside the organization, for this staff person
to meet?
 What impression of the organization do you want new staff members to walk away
with?

None of the answers to these questions should be left to chance; they have to be included
in the orientation.

The point here is that a staff orientation program is more than simply telling people a
few things about the organization. It's a coherent, planned introduction that combines
information, experiences, and a transmission of the values and culture of the organization
(more on this later), all of which are aimed at giving new staff members the foundation they

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need to do their jobs and to integrate themselves into the organization and the community as
easily as possible.

WHY CONDUCT A STAFF ORIENTATION PROGRAM?

An orientation for new staff can be a boon to both those staff members and the
organization. Some specific advantages to such a program include:
 It allows new staff members to hit the ground running. If they have a clear
understanding of the organization, their positions, and the community, they can jump
into their jobs immediately and start to make a difference.
 It instills new staff with confidence in both their own ability to be effective - because
they know they have the information and contacts they need - and the organization
which has had the foresight to provide them with that background, and made them feel
a part of the operation.
 It improves the possibility - through facilitating a good start and providing appropriate
background - that people will do a good job over the long term...and stay longer with
the organization.
 It makes life easier for others in the organization, by eliminating the need for new staff
members to ask them constantly for information and advice.
 It enfolds the new staff member into an existing social structure, thereby helping him
to feel comfortable and to bond with others, and at the same time helping to improve
the organizational climate (the way the organization "feels" to those who work in and
have contact with it).
 It formally welcomes new staff to the organization, and makes them feel that they have
support for doing a good job.
 By familiarizing new staff members with the organizational culture (see below ), it
increases the chances that they will fit well into the organization, and absorb and
become part of that culture.
 By making staff knowledgeable and better-prepared, it builds the organization 's
reputation in the community, leading to community support and better services.

A well-conceived and well-run orientation can thus address all the factors - logistical,
professional, social, and philosophical - that can help a staff member fit into the organization
and do the best job she can.

WHAT ARE THE ELEMENTS OF A STAFF ORIENTATION PROGRAM?

A note: The folks at the Community Tool Box are aware that most small - and many
larger -- organizations don't have the time or resources for a formal orientation. An orientation
may encompass a look at the organizational manual, a few introductions, or even less. What
follows is a picture of the ideal: what you actually do will depend on your resources and the
demands of your situation.

The main point here is that the more information and comfort you can provide to a new
staff member at the beginning, the better. If your organization's current orientation consists
of "Come on in and look around, and we'll put you to work," you might think about what you
can do to make a new person a bit more at home. You don't have to run a full-day orientation
to do that.

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So you're convinced - a staff orientation program is a great thing, and can really benefit
your organization. Now you're faced with the question of what such a program should consist
of. Orientation to just about any position needs to include introductions to the organization,
the target population, the community, and the position itself. The following are some elements
that might be included in each of these introductions.

Much of the material suggested below can be conveyed in numerous ways - in person
through conversation or discussion, in a workshop, through an activity, in printed form (either
as a hard copy or on a website), etc. Since the effectiveness of various methods of
presentation varies from person to person, the ideal is probably to try to communicate
information in different ways - some face-to-face, some independent reading, some
observation, for instance.

INTRODUCTION TO THE ORGANIZATION HISTORY.

Even if the organization is brand new, it has a history: the conditions that made it
necessary, how it was started and by whom, how it garnered support, and how it got to the
point of hiring staff. If the organization has been around for a while, its history includes, in
addition, those who have worked in it, its accomplishments, its past challenges and how it
overcame them (or didn't), changes in direction, etc.

You may want to do some thoughtful editing here, both for length and for content. A
new staff member doesn't need to know every minute of the organization's history to get the
picture, and she doesn't necessarily have to know every negative or stupid thing the
organization or its employees have ever done. At the same time, the history shouldn't be
sanitized: if you've gone through tough times, that's part of the character of the organization,
and employees should know about it.

All of this is important to understanding the organization as it currently exists. Equally

important, it gives new staff members access to the references to people and events that are
part of the common language of the organization, and that allow one to be an "insider".

MISSION.

Your organization has - or should have - a mission statement, and new staff members
should have a copy of it and be given a chance to discuss it and digest what it means. They
should also understand clearly what the real mission of the organization is if it's not stated
directly in the mission statement.

The mission statement may explain what the organization does, but not necessarily
what it stands for (or vice-versa, but that usually comes under the heading of organizational
problems). What it does may be community health promotion or adult literacy, for example,
but its real goals may be social change or economic development. If your mission includes
an unstated agenda, it's crucial that new staff members understand that from the beginning.

ORGANIZATIONAL PHILOSOPHY.

Often tied in with its mission, an organization's philosophy guides its structure; the
roles of various people within it; the way it treats its employees, volunteers, participants, and
colleagues; the methods it uses in whatever programs or services it provides; and its ethics.

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In an ideal world, an organization's philosophy is a conscious choice, arrived at
through careful thought by its founders, or through discussion and compromise by a larger
group. In reality, many, perhaps most, organizations express philosophical foundations that
are simply assumed or that have developed unexamined over time. If you haven't thought
out or examined your organizational philosophy, this might be a good time to do so.

If your work is to succeed, your philosophy should be consistent with the goals of your
organization. An organization that strives to help a community become more democratic, or
to empower a disenfranchised target population, is likely to find itself running in circles if it
treats its own staff members in ways it wouldn't treat members of the target population, for
instance, or places a high value on job status. Philosophical consistency is a necessary
foundation for an organization comfortable with itself and equipped to do its work effectively.

METHODS OR STRATEGIES.

While some organizations leave it up to staff members to decide how they'll do their
jobs, others have set ways of accomplishing their goals. A particular drug treatment program
may advocate an individual approach for all participants, while another may rely only on
therapeutic groups. One adult literacy program may use phonics exclusively, a second only
as one of a broad range of techniques. An organization's choice of methods may be based
on research, past successful (or even unsuccessful) experience, experimentation, intuition,
conventional wisdom, philosophy, inertia, or some combination.

If your organization employs a particular method or technique, it's important that new
staff members understand both what the method itself is, and that they are expected to use
it. Learning to use the method itself should be part of staff training, but at least a brief
explanation of it and the reasons for its required use should be included in an orientation.

PEOPLE.

An organization is actually no more than the people who do its work and give it life.
Perhaps the most important task of a new staff member is to become familiar with those
people and to understand what each of them does. To the extent possible (depending upon
the size of the organization, whether people are full-time, etc.), new staff members should
meet individually with the following:

 Administrators. In small grass roots and community-based organizations, where there

is often little distinction made between administrators and line staff (those who work
directly with the target population and do the specific work of the organization), it's
usually important to get to know everyone well. In addition, administrators generally
have a broad perspective on the organization that is important for a new staff member
to be aware of.

 Line staff. An opportunity to find out how veteran staff members do the work of the
organization, and, for new line staff, to learn with whom they share the most
philosophically, and whom they're most comfortable approaching for help and advice.

 Support staff. Receptionists, maintenance people, technology coordinators, etc. often

are the glue that holds organizations together. Many have close relationships with

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participants as well as with other staff, and may orchestrate the logistics of the
organization as well. Knowing them well and understanding and respecting what they
do can be key to the quality of anyone's life in an organization.

It's also necessary for new staff to understand whom to approach with specific problems.
Who functions as the ADA (Americans with Disabilities Act) coordinator, for instance? Who
handles affirmative action? Is there a union, and, if so, who are the officers? Who administers
the benefits program? Who's in charge of payroll?

ORGANIZATIONAL STRUCTURE.

Organizational structure includes several components:

 Structure of responsibility. Who reports to whom, who's responsible for what areas of
the organization's work, who makes things happen.

 Decision-making structure. Who participates in what decisions; when various people

can act independently and when they need to check with someone else; who shares
in hiring, grievance, conflict resolution, and other decisions.

 Governance structure. Role, structure, and membership of the Board; actual powers
of the director and other administrators; parts that others - line staff, participants,
community - play in the governance of the organization.

 Physical/geographical structure. Depending upon the size and geography of the

organization, anything from where people's desks are located in the (one and only)
office to where various sites are located in different towns and what happens at each.

LOGISTICS AND DAY-TO-DAY ROUTINE.

This area covers the "rules" of the workplace, and the small pieces of knowledge that
make it possible for everyone to function in the course of a day (much or most of this
information might be conveyed in print that new staff members can read on their own):

 Equipment. The availability and location of copiers, computers, phone systems, CD

and DVD players, VCRs, etc., and instructions for and restrictions on their use (e.g.,
participants get computer priority during times when programs are in session).

 Materials and supplies. Where everything is kept; the routine for ordering; how you
get access to what you need; petty cash.

 Time issues. Expected work hours; payday; arrival, lunch, and quitting time; extra
work times (Board meetings, community meetings, etc.)

 Benefits. How to take a vacation, personal leave or sick day; how to use health
insurance; comp time; travel reimbursements; etc.

 Office routine. Who opens and closes the workspace, where restroom keys are, who
answers which phones, security procedures.

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 Quality of life. Good places to eat lunch, where to park, soda machines, spring water,
coffee, food rotation for staff meeting.

SUPERVISION.

There are two facets of supervision that new staff members need to know about: the
basic information about who supervises whom (including whom the new staff member
supervises, and who supervises her), how often, and in what areas of practice; and the more
complex issue of the organization's attitude toward supervision.

There are at least two ways of looking at supervision. One consists essentially of the
supervisor as watchdog, making sure that the staff member does her job right, and follows
the rules of the organization. Too often, this has been the model followed in education, the
one that generates horror stories of teachers being fired because their skirts were too short,
or because they were critical of an assigned text.

The other view of supervision sees it as a mentoring relationship, aimed at improving

performance through constructive feedback, suggestions, and discussion of situations. This
is the model used most often in counseling and psychology, and more frequently now in
education, medicine, and other areas. It is, in the writer's opinion, far more effective and
useful than the other, and more likely to lead to real improvement in performance.

POLICIES AND PROCEDURES.

It's important to have a clear set of policies and procedures that explain and govern
the various tasks and relationships necessary to keep the organization running. You may
even have a handbook that lays out the ways in which the organization operates and explains
how to file a grievance, how to deal with a personal conflict, how to handle a participant
complaint, hiring and firing issues, etc. Even if you have a handbook, however, it's a good
idea to call new staff members' attention to important issues as part of their orientation. Then,
at the very least, if they find themselves in difficult situations, they'll know that there are
policies that cover them.

ORGANIZATIONAL CULTURE.

Every organization has its own culture, developed over its life. The culture is the result
of the organization's history and of the thinking and behavior of its founders and former and
current staff. It may change a small amount with each departure from and new addition to the
staff, but is generally fairly stable, and includes not only standards for behavior, but the in-
jokes and references that everyone in the organization is expected to know and respond to.

If your organization is new, you and those you hire are forming its culture even as you
read this. You can just let that happen, or you can discuss the issue and make some choices
about what sort of culture the organization wants, and what would reflect the character it
wants to have. How it treats both staff and participants, the formality or informality of its style,
its openness, even its furniture (Does it choose to spend its money on expensive furniture or
on its mission?) - all can reflect and shape its culture.

Some of the areas governed by organizational culture that new staff members should be
aware of:

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 Dress. Every organization has a dress code, whether formalized or not. If everyone
wears jeans, the one person who dresses up will stand out, just as someone wearing
jeans will stand out in a workplace full of suits. The dress code may be that there is no
code - everyone dresses as she pleases. Whatever the formalized or unspoken dress
code is in your organization, new staff members should be aware of it.

 Work expectations. Everyone may get paid for 40 hours a week, but some
organizations expect staff to work much more than that as a matter of course. Others
are far more relaxed - you can go home when your day's work is done, regardless of
what time that is. Still others expect 40 hours a week or more, but allow enormous
flexibility as to when those hours are put in.

 Smoking. Is smoking OK in the building? Outside? In the next town? Many

organizations feel extremely strongly about this issue.

 Food. Is food in the office OK? Expected? Are you expected to bring in food to share
on a regular basis (even if this is unstated)? Can you eat at your desk, or in the course
of a program? Can participants eat during programs? Are there specific food and drink
rules (no food near the computers, for example)?

 Children. Can staff or participants bring children to the workplace if necessary?

Never? Only in emergencies? On a regular basis?

 Work relationships. How do people treat one another? Is there an effort to treat
everyone equally? Is there a family atmosphere, or is everything kept formal? Do real
friendships develop? Do staff members see each other outside of work? Do these
friendships sometimes transcend position (i.e. the director or a Board member
becoming close friends with a support staff person or a participant)? What about
language? Gender relations?

Understanding the organizational culture will help a new staff member become "one of
the bunch" more quickly, and reduce the uncertainty (and the stress) of a new situation. It will
make his transition into the organization and the work easier.

INTRODUCTION TO THE TARGET POPULATION

If the organization's work is targeted to a particular group, new staff members should learn
as much about this group as possible in orientation.

IDENTIFICATION.

Toward whose benefit is the work of the organization directed? The answer to that
may have to do with the income, race or ethnicity, age, gender, native language, place of
residence, basic skill or education level, disability, physical or mental health, homelessness,
immigration status, workplace, unemployment, or almost any other characteristic of a
particular group of people. The target population may also be a whole community.

DEMOGRAPHICS.

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How many of these folks are there in the community? Where do they live? Where do
they work? What's their level of education? How many of them speak English? (A lot of this
information can be gleaned from census data or town reports. You may or may not want to
get that detailed in an orientation.)

The best way to begin to understand the target population, of course, is to meet and
talk with as many of its individual members as possible. New staff should be introduced to
program participants, leaders of the population that the organization works with,
knowledgeable elders, etc., and encouraged to get to know them as people.

CHARACTERISTICS AND CULTURE.

If they are culturally distinct (e.g. immigrants from the Cape Verde Islands), what are
the defining elements of their culture? What do they eat, wear, believe, hold dear? What are
their families typically like? Are they, as a group, demonstrative or undemonstrative,
hospitable or suspicious, tolerant or intolerant of differences? Do they all speak the same
(non-English) language? (In Boston's Chinatown, for instance, where once virtually everyone
spoke Cantonese, now you can hear several Chinese dialects, Vietnamese, and Thai, among
other languages). Do they have particular social taboos or imperatives?

It is often the small things that define a culture for those who belong to it. In France,
when greeting a crowd of friends, you have to kiss everyone on both cheeks. You can't just
wave to the ten people on the other side of the room - you must go over there and greet them
formally. If you don't, you're a hopeless social failure. Understanding and participating in the
small rituals can mean the difference between acceptance and ridicule.

STRENGTHS AND NEEDS

.
Why are they the target population, and what are their specific strengths, needs and
issues? Is the organization trying to address all or only some of these? How did it choose, or
did the target population itself do the choosing?

INTERACTION BETWEEN THE ORGANIZATION AND THE TARGET POPULATION.

How are members of the target population best approached? What seems to work well
with them - what kinds of programs and initiatives do they respond to? Who are the key
individuals in the target community? How does one establish credibility and build trust in that
community?

The more new staff members know or can learn about the target population before
they start work, the less likely they are to make costly mistakes.

INTRODUCTION TO THE COMMUNITY AT LARGE

Unless she lives in the community in which she'll be working, a new staff member
needs to know a number of things about it.

"Community" can be interpreted in different ways by an organization. It may mean the

town in which the organization is located. But it can also mean an urban neighborhood, a
rural area that encompasses several towns or villages, a particular cultural or social group, a

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housing project...almost anything that defines a group of people as having something in
common. It is the community as your organization interprets it that you should be considering
here.

DEMOGRAPHICS.

The size, diversity (and what groups constitute that diversity ), average income,
average education level, etc.

ECONOMICS.

Types of business and industry, major employers, types of housing, nature of different
areas ("wealthy" vs. "poor" parts of town, e.g.), level of employment. In general, what's the
community's socio-economic status?

GENERAL CHARACTERISTICS.

What are the schools like? How much crime is there? What issues do people care
about? Who do elected officials tend to be? Is the community largely liberal, largely
conservative, or somewhere in between? Is it socially tolerant? Do people from different
groups mix, or do they stay separate, even if relations among them are good?

INSTITUTIONS.

What do the power structure and the governing bodies look like - and are they the
same? What are the important institutions in the community (hospitals, banks, major
businesses, etc.)? What are the faith communities? How powerful are the various media, and
what are their biases?

ORGANIZATIONAL RELATIONSHIPS.

Who in the community does the organization know well and/or work with, among both
individuals and other organizations and agencies?

INTRODUCTION TO THE POSITION

You may have had the experience of starting a new job with very little knowledge of the
job itself, and with the expectation that you'd simply figure out what it was you were supposed
to do. If so, you understand clearly why new staff members need more than that if they're
going to be effective. Some basic information would include:

 What the job actually looks like day to day. The job description is a start here, but
there's also the question of what the person in that position actually does. What will
an average day look like...or is there no such thing as an average day? What are the
real activities that the new staff member will find himself engaging in? How much of
his day will be occupied with meetings, with working directly with participants, with
community outreach, and/or with paperwork? It's only fair that he should know what to
expect.

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 Unstated job requirements. It may not be in the job description, but staff members
may be expected to pick up and deliver participants, intercede with welfare workers or
the court system, act as counselors, or perform other functions. If anything outside the
job description is expected, new staff members should be aware of it.

 Trial period. Is there a trial period - a period during which either the individual or the
organization can end the employment without any bad feeling or negative reports?
Many organizations write a three- or six-month trial period into any staff contract. If
there is a trial period, the new staff member should be aware of the criteria on which
she'll be evaluated at the end of it.

 Regular evaluation. Many organizations evaluate staff performance regularly

(usually annually). If you have a regular performance evaluation, the orientation should
specify how often evaluations are conducted, what form they take, what the grounds
for evaluation are, what is done with the final evaluation, how it is used in the
organization, and who has access to it.

 Expectations. We've already mentioned unstated job requirements, but there may be
other expectations that have to do with the organizational culture. How many hours
are staff members really expected to work? Does staff get reimbursed for work-related
travel (other than commuting)? What's the policy on personal phone calls, or on
weekend events in the community that the organization is involved in? Are staff
members expected to engage in community fundraising? Is there comp time?

Compensatory time, or comp time, is time taken off from work to make up for unpaid
overtime. Many organizations can't afford to pay for overtime, but do offer comp time.

HOW DO YOU ACTUALLY CONDUCT A STAFF ORIENTATION PROGRAM?

Actually conducting a staff orientation, in addition to planning out the topics to be

covered, takes some consideration of a number of issues. First, however, you need to think
through what the orientation is really meant to do.

Decide at whom your orientation is aimed. Are you going to orient everyone in the
organization, or only some people? Will there be different orientations for different positions?
Once you're clear on your audience, the rest will follow logically.

Is it a group or individual orientation? If you're a new organization, or if you've just

gotten a new pot of money, you may be hiring several people at once. A group orientation
offers some advantages over an individual one: new staff members can discuss issues
among themselves, some may ask important questions that others in the group wouldn't have
thought about, and you can plan group activities - role plays, for instance - that might help
people understand their jobs and the organization better. Another advantage of a group is
that the focus of the orientation is less likely to get lost in the day-to-day work of the
organization if there's a group to consider.

All of this raises the question of whether you should wait until you have a group of new
and relatively new employees before you conduct an orientation. Despite the advantages of
a group orientation, putting off an orientation is usually a bad idea. The new staff member
needs the support and knowledge at the beginning. By the time you get around to it, she may

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have already learned much of what she needs to know. She may also be frustrated that she
had to do it on her own, and had to endure the stress of not understanding the organization,
and not knowing what she was supposed to do. By waiting, you'll have lost the point of the
orientation.

Clarify what you want to accomplish. Is the orientation meant simply to introduce the new
staff member to others in the organization, or do you hope that it will equip her to start right
in on her job? What are your goals here? Answering that question will help you reach your
next decision.

Decide on the content of the orientation. Knowing whom you're orienting and to what
purpose should give you the basis for determining how much of the content laid out above
you want to include. Will you go through the personnel policies? Will you take the new staff
member to visit other sites or other organizations? Are there observations or activities that
need to be included?
Start by laying out the specific content areas that need to be covered. Then, for each of them,
you may be able to see what would be the best format and method to cover that area, and
who would be the best person to present it.

Decide whether the orientation will be group or individual. To some extent, this will be
determined for you by your situation. If you've just hired one new staff member and you're
not planning to hire others in the foreseeable future, then an individual orientation is in the
cards. If you're new or are overhauling your organization, you may be hiring several people
at once, and a group orientation probably makes more sense. If you're constantly recruiting
volunteer staff, you may want to run group orientations on a regular basis - perhaps every
other month, or three or four times a year.

Choose your format and methods. The format of your orientation is the medium through
which material is presented. You could present it face-to-face, post it to a website and ask
people to read it or download it from there, give them information in print, involve them in
activities, send them off on their own to talk to and/or observe staff of your or other
organizations, ask them to watch a video or listen to an audiotape, or combine any number
of these and other formats. Varying the format is one way to keep the orientation interesting
and fresh.

Methods are the techniques you choose to present the content of your orientation. As is
probably clear from the previous parts of this section, you have a range of possibilities in
deciding what to actually do in an orientation. The whole thing can be conceived of, for
instance, as a straight presentation of information...which will probably be dry and boring,
and most of which the new staff member will forget as soon as it's over. It generally makes
more sense to think in other ways:

 Practice participatory planning and implementation. In addition to veteran staff,

participants, and others, ask new staff members themselves to help plan out the
orientation. What are they most anxious about, or what do they consider most
important to find out? What or whom in the organization would they like to learn about
first? How do they think they could do that most effectively? By involving them directly
in the planning and presentation, you'll pull new staff members in and give them
ownership of the orientation process. They'll then be far more likely to try to get as
much as possible out of it.

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Another advantage to running a participatory orientation is that, if you're a grass roots
group, it probably reflects your organizational philosophy, thus reinforcing it in the minds of
new staff.

 Think active. There is certainly room for straightforward presentation of material, but
most people learn best - and are most interested - when they're doing something. That
"something" may be as simple as being engaged in discussion or as complex as acting
in a role play or guiding a group problem-solving activity. Varying presentation styles
and keeping people active will hold their interest and cement their learning.

 Take or send new staff members on field trips. The best way to understand a
community is to walk, or, in the case of rural areas, to drive through it. The best way
to find out what other organizations are doing is to visit them, talk to their staffs, and
observe their work. Whether in the company of a knowledgeable guide - a member of
the target population, for instance - or alone, new staff members should get out and
see for themselves what's going on in the world they'll be working in.

 Encourage as much personal contact as possible. Other people - staff of your and
other organizations, participants, members of the target population, folks in the
community - offer the best information, as well as the potential friendships and good
working relationships that both ease the transition into a new job and continue to make
the job pleasant when it's no longer new.

 Remember that different people learn differently. Some people take in information
best by seeing, others by hearing, still others by touching and manipulating. Some
tend to look at the big picture, others at the details; some prefer a step-by-step
approach, others a more diverse and intuitive one. It's important, especially in a group
orientation, to be aware of presenting material in different ways. Not only does this
raise interest levels, but it's also more likely to speak to the diversity of learning styles
in a group. Possibilities include:

 Conversation and discussion: Personal contact helps learning for many.

 Observation: Seeing the actual practice of what you've talked about or
learned.
 Text: Reading printed theory, policies, or other material.
 Computer-based learning: On a website (your own, the Tool Box, or some
other) or through some other channel (by e-mail, or on a professional list-
serv or chat group).
 Lecture or blackboard/newsprint presentation.
 Multimedia: Video and audiotapes, computer, etc.
 Direct experience: Role plays, practice with feedback.
 Journals: Writing about orientation learning and experience may set them
in the mind.
 Involve as many current staff, Board, participants, volunteers, and
administrators as possible. The diversity of people will not only help to
increase the scope and effectiveness of the orientation and the knowledge
base of new staff members, but will also make them feel that they know
people in the organization, and contribute to their comfort as they start work.

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 Practice what you preach. If your organization uses specific teaching or
presentation methods with participants, or advocates certain ways of
approaching people, those methods should be reflected in the way you
conduct your orientation.

Decide who will conduct the orientation. In the ideal world, the orientation would be
conducted by the person or people who know the most about the areas covered. In reality,
most organizations don't have the resources to make this happen.

In small organizations, orientation may be conducted by one person -- probably the

director or the new staff member's supervisor. In a larger organization, many people may be
involved, each presenting information about her particular job or responsibilities. In either
case, a new staff member should meet with all other staff, either individually or in small
groups, both to get to know them and to understand what they do and how they fit into the
organization as a whole.
If the orientation is conducted by a number of people, it is still important that one person
oversee the process, acting as the main contact for the new staff person and making sure
that he gets appropriate information, completes assigned tasks, has no trouble arranging
meetings, and gets his questions answered.

Decide on the length of the orientation. Knowing the content and your goals, you should
be able to estimate how much time you'll need to run the orientation you want to. You may
run an informal orientation (some conversation, introductions to other staff, some reading to
do), which may take up part of the first day, or be spread out over a few days. Another
possibility is a formal orientation (i.e. a carefully-structured series of presentations, activities,
meetings, etc.), each part of which lasts a set amount of time. Or you may choose to
designate an orientation period at the beginning of a staff member's employment, during
which she may be working, but may also be involved in orientation-related activities. In the
former cases, orientation might last only a few hours or a day or two. In the latter, it could last
a week or a month, or even several months, and would probably include initial training.

 Formal orientation. If you run a formal orientation of only a few hours or a day, it will
probably involve the direct presentation of a lot of information. You may ask a variety
of veteran staff members, participants, or others to take part in the presentation, and/or
you may ask new staff members to seek out and talk to certain people on their own
time. Training will be separate from orientation in this case, although it may
immediately follow it.

 Orientation period. An orientation period may last as little as a few days or a week,
or as much as three or four months. If it's short, it could be pure orientation time, during
which the staff member does nothing else, or it could fit in around a work schedule.
During this time, the new staff member will get some direct information, and also spend
a good deal of time meeting with other staff members, Board members, participants,
people from other organizations, and others who can cast light on her job and its
context. She might also observe or shadow other staff members, read relevant
material, be trained in necessary areas, become familiar with the community or target
area, etc. In any case, the orientation is her job, or part of it, for this period.

If you designate an orientation period that encompasses staff members' first few weeks
or months of work, it still makes sense to ensure that they get the important information and

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introductions they need before they actually begin work. Then the rest - organizational
history, for instance - can be passed on over time as they learn their jobs and settle into the
organization.

An advantage of a long orientation period is that it gives people the time to absorb what,
in most organizations, is actually a considerable amount of information. If it's all handed to a
new staff member at once, she'll forget at least some of it before she turns around, and only
have to relearn it anyway.

As is true for most of the material in this and many other sections of the Community Tool
Box, the above refers to an ideal world, one in which there are the time and resources for a
proper orientation period to take place. In reality, especially in a small grass roots or
community-based organization, the position has probably been empty for longer than it was
supposed to be, other staff have been working overtime to do the job until someone could be
hired, the new staff member is going to have to start work the instant he appears, and no one
in the organization has time to spare to actually run an orientation.

Even if your organization can't devote much time solely to orientation, however, it's
absolutely crucial to regard at least the first week or two as an orientation period, and to
support a new staff member by providing information, helping him to make contact with other
people inside and outside the organization, and introducing him to the community. It will make
all the difference in the long run, both in the quality of his work and his attitude toward the
organization.

When an organization hired a new Associate Director, she had to start instantly on a
grant proposal that was due only days after she began work. The Executive Director worked
with her on the proposal, and made sure she spent some time every day getting to know
other staff members. He took her to every meeting he had for the first six weeks or so of her
employment, so she could meet people from other agencies and the community, and
understand the issues that the meetings addressed or exposed. In daily conversations, he
tried to tell her everything he could about the organization that wasn't obvious or available
from printed material. As a result, she was able to write a successful proposal, and to slide
seamlessly into the job. She ultimately became a key figure in the development of the
organization.

Evaluate your orientation each time you run it. Evaluation will help you make your
orientation more effective, which, in turn, will make your staff more effective. An evaluation
should include feedback from those evaluated, and can be built right into the orientation itself.
A final piece of the process might be reflection on what has taken place, and some ideas
about what was missing, what was particularly helpful, and what could have been done better.

You might also consider asking staff members to reevaluate their orientation after
they've been on the job for a while. At the end of the orientation, they may not yet know what's
most or least helpful, and what they'll use or not use. They might have a better perspective
on those issues in three or six months.

Create some sort of marker for the end of the orientation or orientation period.
A small party, an official welcome to the staff, the presentation of keys...something that puts
an official end to the orientation. This kind of closure - and it doesn 't have to be tremendously
formal - can help to facilitate the transition from "new " to "regular" staff member.

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IN SUMMARY

An orientation at the very beginning of their employment is an important tool in helping

new staff members understand and adjust to the organization and their jobs, and to become
effective as soon as possible. It also gives new staff members the chance to meet their
colleagues and to start the process of becoming integrated into the organization.

Orientations should include introductions to the organization, the target population, the
community, and the job itself, as well as an evaluation and something to mark the transition
to "regular employee." If you can run a timely orientation for new staff members that includes
these elements, as well as whatever else you and they feel they need to know to do their jobs
well, you'll probably have done much to forge a long-term relationship between them and the
organization.

If you've never run an orientation for new staff - or if you're a new organization - now
is a good time to create one. If you've been running orientations for years, you might
reexamine yours, and see how it could be improved to better serve your organization and its
new staff. An orientation that does its job can improve both the effectiveness of your
organization and the quality of life for new staff members.

Learning outcome 6 Facilitate group/center officer meetings

How to manage meetings like an expert facilitator?

Team Coach

A skilled meeting facilitator can get a group to discuss, debate, and, above
all, decide a lot of stuff in not-a-lot of time. Trouble is, most teams don’t have dedicated
program managers or agile coaches to step in and fill that role. So as the modern workplace
becomes ever-more collaborative, it’s increasingly important for all team members to
know how to run effective meetings.

I’ve been facilitating meetings for years, and I’ve had to grabble with quite a few
facilitation questions. What if the pace is too fast, or too slow? Is the agenda pitched at the
right level? How will the vibe in the room change if I “double-click” on an uncomfortable truth
that surfaces? Will I be able to get the inevitable strong personality in the room to button up
and listen to their peers? Sheesh. So many x-factors to keep track of!

The good news is that meeting facilitation is simply a skill you have to practice. To help
build your chops and conquer your fears, here are some pointers and pro tips that will help
you manage your next meeting with confidence.

TIP

Bookmark this post so you can review it quickly the next time you’re about to facilitate
a meeting.

1. Understand your role as meeting facilitator

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Hint: It’s not about you
Me, I’m a classic “talker”. So standing in front of a group to facilitate a meeting isn’t much of
a stretch. (In fact, when I was learning how to manage meetings, the hardest part was getting
myself to shut up so the rest of the group could speak.)

Being an effective meeting facilitator while simultaneously being a meeting participant

is near impossible – you can’t be emcee and performer at the same time. Embrace the
facilitator’s role of managing time, encouraging participation, and asking juicy questions. Let
the other people in the group be the stars of the show.

2. Create an interactive agenda

Structure your agenda such that there are opportunities for different people to lead
parts of the discussion. This lets you sink into the background, observe the group, and focus
on driving the group toward that outcome or decision.

As meeting facilitator, it’s a best practice to send a meeting agenda out to all
participants before the meeting so they can come prepared. Many folks here at Atlassian will
simply pop the agenda into the meeting’s calendar invite.

3. Establish your meeting’s purpose

Every meeting you facilitate needs to have a clear endpoint: an objective to achieve,
or a decision to make. Make sure your agenda covers this so participants know why they’re
there, and (importantly) what it would take to finish the meeting early.

It’s worth reiterating the objective at the start of the meeting, too. Heck, you could even
write it on the whiteboard to serve as guardrails for the discussion – especially if you’re likely
to have detractors in the room. If the conversation heads down a rabbit hole or veers off-
course, you can get the group back on track by reminding them of the meeting’s purpose.

4. Close your laptop and open your ears

People are far more engaged in discussions when they’re not firing off an email or
checking Facebook. So take a hardline approach and ask for all laptops, tablets, and phones
to be turned off. The only exception is the meeting’s scribe, who gets a pass to use their
device for taking meeting minutes. Don’t start the meeting until everyone is tuned in and ready
to contribute.

A laptops-closed/phones-off policy is critical for sessions that revolve around active

listening and flat-out, transparent sharing. Can you imagine someone working up the courage
to share a dissenting opinion while their teammates pecked away on email? Not so much.
For team retrospectives and similar types of meetings, it’s best if the facilitator takes notes
so all participants are fully engaged in the discussion.

If someone insists they need to be working on something else during the meeting, then
give them permission to leave the room and go do it. They’ll have an easier time of it and
produce better work without the distraction of people talking around them anyway.

5. Make space for everyone to contribute

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Sometimes there’s a “celebrity” in the room: a strong personality with strong opinions
who is highly respected by other people in the group. They can dominate the discussion
(usually without intending to), or even disrupt it by advancing their own agenda.

Give them a pen, and ask them to take charge of capturing ideas on the whiteboard.
Not only does this intrinsically task them with listening (i.e., creating space for others to
speak), you also avoid the scenario where they sit in the back of the room trashing ideas that
diverge from their own. No hecklers, please.

If they’re a strong detractor or feel particularly strongly about the session, you’ll be
glad you shared the agenda and purpose in advance and gathered their input before the
meeting. Help them walk in ready to make a constructive contribution.

6. Facilitate conversation through questions

Many meetings are essentially problem-solving workshops (5 Whys, Experience

Canvas, Premortem, Empathy Mapping… If you’ve ever checked out the Atlassian Team
Playbook, these are probably familiar!). As the meeting facilitator, it’s not your job to have all
the answers. It is your job, however, to lead the group to answers. That means posing the
right questions at the right time. When done well, pointed questions will challenge
assumptions that may be preventing the group from getting to that “ah-ha!” moment.

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Even if you think you have The Answer™, resist the temptation to offer it up. Instead, ask
leading questions that guide the group to that answer (it’s more meaningful if they arrive at
that conclusion themselves). Here are a few of my favorites that you can customise:

 Can you expand on that point?

 Is this conversation moving us in the direction we want?
 Your last point intrigues me, but it feels counterintuitive – in what context could you
see that applying?
 How would you summarise that?
 What would that look like?
 How does that make you feel?
 Why?
 How would you measure success in that instance?

Of course, asking the right questions requires you to bust out your active listening skills.
Give the group space to burn through the ideas that come quickly, and pay attention to what
they’re saying so you know which questions can get them to think deeper. But generally stay
out of the discussion until it stalls out or starts going in circles.

7. Read the room

Tune into the energy of the room and look for visual cues like body language. Are
people fidgeting in frustration? Do looks of discontent or disagreement abound? These are

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signs you need to intervene. It’s ok to gauge sentiment in the room by simply asking people
straight-up: Is this resonating? Do we feel comfortable with the progress we’re making?

Bringing focus to the group’s emotional state helps you understand whether they’re
engaged or disconnected. And if the group is disconnected, it’s time for you to jump in and
lead them down an alternate path.

TIP

Pay especially close attention in meetings that tend to be highly emotional like team
health checks, goal-setting workshops, and root-cause analysis sessions
Getting your energetic radar calibrated will take time, and you’ll get it wrong once or twice.
Being mindful and observant are the first steps.

8. Create a “parking lot” for good ideas that distract

If an idea pops up that is valuable, but off-point, offer to create a “parking lot” and jot
it down (usually on the whiteboard or in the meeting notes) so you can come back to it later.
Because right now is all about nailing your objective for this meeting.

Knowing their thoughts aren’t lost forever to the aether helps people return their focus
to the outcome you’re striving for.

9 Know your audience

If you’re facilitating a problem-solving meeting or a retrospective, be on high alert for

people who need to be drawn into the discussion. Consider the personality types amongst
your attendees, and try to get everyone to contribute to the discussion evenly (more or less).
The quiet people in the group might not be shy, per se. In fact, they might have a lot to say,
if given the opportunity. It’s your job as the facilitator to carve out space for them to speak.

A veteran facilitator might even observe people as they enter the room, mentally noting
who they sit next to or who they avoid. It’s ok to use your judgment and re-arrange chairs (or
who sits where) if that’ll help bring out the best in everyone.

Also, understand who has the final say on whatever decisions you’re making, and use
them as a tie-breaker if the group can’t reach a consensus. That person can also come in
handy when deciding who owns follow-up items.

10. Get moving to keep the energy up

Stand up, congregate around the whiteboard, and bring some dynamic energy to the
room. This isn’t the UN General Assembly, after all. (Unless you actually work at the UN. In
which case, good on ya.)

One dead-simple facilitation hack I like is having people write their thoughts on sticky
notes, then walk up to the front of the room and post them a whiteboard or butcher’s paper.
Once everyone is done posting up ideas, take turns coming up front to present those ideas
to the group. Works great in problem-solving or brainstorming-flavored meetings
like mindmapping and premortems.

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Incidentally, when paired with coffee, a whiteboard is easily the most innovative tool in the
knowledge worker’s tool kit. Seriously!

Running meetings and workshops will be clunky at first, and you’ll make some
mistakes. That’s ok! You don’t have to be an ace facilitator to save your team weeks’ worth
of time spinning their wheels.

Your skills will improve with practice. So you know what’s next, right? Get out there
and start practicing! Browse the brainstorming and problem-solving meeting ideas in the
Atlassian Team Playbook – our free, no-BS guide to working better together – and schedule
a session with your team.

ACTIVITY

Modified true or false No. 1. Write True if the statement is true; Write false if the
statement is incorrect, (2 points each)
_______________1. Rural Microenterprise Finance Project. In 1996, ADB approved a $20
million loan for the Rural Microenterprise Finance Project.
_______________2. In 1993, ADB approved a $42.26 million loan to support the poverty
reduction efforts of the Government of Bangladesh by creating sustainable farm and nonfarm
employment.
_______________3.The consumer orientation emphasizes on understanding consumers'
real needs, and satisfying them better than any competitor.
_______________4. The word "orientation" literally means being turned toward the east, i.e.
getting the basic information that tells you where you are and how to get where you want to
go.
_______________6. An organization is actually no more than the people who do its work
and give it life.
_______________7. Line staff. An opportunity to find out how veteran staff members do the
work of the organization, and, for new line staff, to learn with whom they share the most
philosophically, and whom they're most comfortable approaching for help and advice.
_______________8.Structure of responsibility. Who reports to whom, who's responsible for
what areas of the organization's work, who makes things happen.
_______________9 It's important to have a clear set of policies and procedures that explain
and govern the various tasks and relationships necessary to keep the organization running.
_______________10. An orientation period may last as little as a few days or a week, or as
much as three or four months. If it's short, it could be pure orientation time, during which the
staff member does nothing else, or it could fit in around a work schedule.

Group yourself into 10 candidate submit a list of name to your instructor each group
will conduct a staff orientation program using webinar.

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WEEK 12
UNIT COMPETENCY 4. FACILITATE CENTER MEETINGS

Lesson Objectives: At the end of this lesson, the students should be able to:
1. Learn to Lead opening and closing prayers, Present scheduled topic/s, Facilitate group
discussion, Check clients attendance, Facilitate center/cluster Meeting and Facilitate open forum
2. Know to Counsel clients on personal/family problems
3. Resolve conflict among clients

10 meeting facilitation techniques to improve your skills

 Begin your meetings with a quick check-in.

 Review desired outcomes and agenda items.
 Assign meeting roles.
 Practice active listening.
 Synthesize the main themes to reframe the conversation.
 Pause and allow for reflection.
 Encourage and balance participation.

Learning outcome 1: Lead opening and closing prayers

When closing a meeting, thanking God for his continued protection and inspiration is just
one way to end a bible study or meeting. Here is a look at some great opening and closing
prayers for meetings that will help encourage your continued commitment and dedication to
the Lord.

Enter with Thanksgiving Prayer

Heavenly Father, thank you that you are gracious and compassionate, slow to anger and
abounding in love. We enter your gates with thanksgiving today and we enter your courts
with praise. We glorify you for the countless ways you have blessed us. We praise you for
your great love. We thank you that we can enter your presence today. May Christ dwell in
our hearts through faith so that we, being rooted and grounded in love, may have the strength
to know the love of Christ that surpasses knowledge. May we be filled

Learning outcome 2: Present scheduled topic/s

How To Write a Meeting Agenda: Tips, Template and Sample

When leading a business meeting, you might be responsible for managing a large
number of people and tasks. An effective meeting agenda can help you make sure you
discuss all the necessary material, keep the meeting on topic and ensure that your group

145
uses time efficiently. In this article, we’ll cover how to create a meeting agenda that will help
you effectively lead any meeting.

What is a meeting agenda?

A meeting agenda is a list of topics or activities you want to cover during your meeting.
The main purpose of the agenda is to give participants a clear outline of what should happen
in the meeting, who will lead each task and how long each step should take. Having this
information before and during the meeting should ensure that it proceeds efficiently and
productively.

How to write a meeting agenda?

Whether you have a short, one-hour meeting or one that lasts a full day, you can use
these steps to help you write an agenda:

 Upload your resume on Indeed

 Let employers find you when you create an Indeed Resume
 Identify the meeting’s goals.
 Ask participants for input.
 List the questions you want to address.
 Identify the purpose of each task.
 Estimate the amount of time to spend on each topic.
 Identify who leads each topic.
 End each meeting with a review.

1. Identify the meeting’s goal

When you start with your goal, you can make sure the purpose of the meeting is clear
and every task you want to cover is related to your objective. Make sure to set an achievable
goal to keep your meeting as focused as possible. For example, a meeting goal to approve
the company’s monthly advertising budget is more attainable than a goal to improve spending
overall.

2. Ask participants for input

If you want to keep your participants engaged during the meeting, ask for their input
beforehand so you can be sure the meeting fulfills their needs. You can ask them to suggest
what topics they would like covered or what questions they have. Once you have a list of
ideas from the participants, you can review them and decide which items you’ll ultimately
include.

Related: 6 Qualities That Make a Great Team Player

3. List the questions you want to address

Once you know your meeting’s objective and have some ideas about the topics you
want to cover, list the questions you need to answer during the meeting. Some meeting
agendas simply list a topic as a phrase, for example: “rental equipment.” However, you can
clarify each agenda item’s purpose by phrasing discussion points as questions. For example,
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you could write, “Under what conditions should we consider renting equipment instead of
buying it?” These prompts can ensure you are inviting discussion and gathering all of the
information you need for each agenda topic.

4. Identify the purpose of each task

Every task you complete during your meeting should have a purpose. Typically, the
three main purposes are to share information, seek input or make a decision. As you’re going
through your agenda, make note of the purpose of each task. This step will help meeting
participants know when you want their input and when it’s time to make a decision.

5. Estimate the amount of time to spend on each topic

Next, estimate how much time you plan to spend on each task. This part of the agenda
ensures you have enough time to cover all of the topics you have planned for your meeting.
It also helps participants adjust their comments and questions to fit within the timeframe.

You can optimize your timeframe by giving more time to items you anticipate taking
longer to discuss or scheduling items of higher importance earlier in the discussion to ensure
vital topics are covered. If you have many people coming to your meeting, you may even limit
time on certain topics to streamline the conversation, encourage a quick decision if needed
and keep the meeting on schedule.

Read more: Time Management Skills: Definition and Examples

6. Identify who leads each topic

Occasionally, someone other than the meeting leader will lead the discussion on the
topic. If you plan on having other people mediate topics during your meeting, you can identify
them under their respective topic. This step helps keep the meeting running smoothly and
ensures that everyone is prepared for their responsibilities.

7. End each meeting with a review

Leaving time to end each meeting with a review can help participants better
understand what decisions they made and what information they discussed so they can take
any necessary steps after the meeting. During this review, you and your meeting participants
should also consider what went well during the meeting and what needs improvement. By
taking a few minutes to consider these questions, you can make sure your next meeting is
even more effective.

Related: Employee Surveys: Your Modern Day Suggestion Box

Meeting agenda template

Here’s an outline that you can tailor to nearly any type of meeting:

MEETING AGENDA

Date:

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Time:
Location:

AGENDA DETAILS

Goals:

1. Agenda item one description

Time:
Purpose:
Leader:

a. Remarks
b. Remarks
c. Remarks

2. Agenda item two description

Time:
Purpose:
Leader:

a. Remarks
b. Remarks
c. Remarks

3. Agenda item three description

Time:
Purpose:
Leader:

a. Remarks
i. Additional remarks
ii. Additional remarks
b. Remarks
c. Remarks

4. Agenda item four description

Time:
Purpose:
Leader:

a. Remarks
b. Remarks
c. Remarks

5. Agenda item five description

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Time:
Purpose:
Leader:

a. Remarks
i. Additional remarks
ii. Additional remarks
iii. Additional remarks
b. Remarks
c. Remarks

6. End of meeting review

Time:
Purpose:
Leader:

a. What did we do well in this meeting?

b. What should we do differently next meeting?

Meeting agenda example

You can use the following sample meeting schedule when crafting your own agenda:

MEETING AGENDA

Date: Aug. 1, 2019

Time: 1 p.m.
Location: Conference Room A

AGENDA DETAILS

*Goals: Review the marketing campaigns from last year, identify seasonal slumps in product
demand, brainstorm ways to increase demand during these slumps and make sure we’re
prepared for the next marketing campaign.*

1. Review marketing campaigns from last year.

Time: 15 minutes
Purpose: Share information
Leader: Jamal Adams

a. Present the marketing campaigns from last year.

b. Review the sales numbers after each campaign.
c. Identify which campaigns seemed to have the biggest impact.

2. How do we best manage the fluctuating demand for our product?

Time: 30 minutes

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Purpose: Decision
Leader: Blair Hanline

a. Review sales numbers from the last four quarters.

b. Identify any trends in sales numbers.
c. Brainstorm ideas on how to increase sales during those slumps.

3. Preparing for the next marketing campaign

Time: 15 minutes
Purpose: Decision
Leader: Blair Hanline

a. What do we need to prepare for the next marketing campaign?

i. Review the attached marketing campaign materials.
ii. Identify tasks for each team member.
b. How will we track the effectiveness of this campaign?
c. Review sales goals for this campaign.

4. End of meeting review

Time: 5 minutes
Purpose: Decision

Leader: Jamal Adams

a. What did we do well in this meeting?
b. What should we do differently next meeting?
References

Learning outcome 3: Facilitate group discussion

How to Facilitate Discussions

1. Understand the role of the facilitator. Stay neutral.

2. Provide structure to the discussion.
3. Guide the discussion.
4. Record the discussion in a visible way.
5. Ensure productive group behaviors.
6. Summarize the results.

Tips for Facilitating Groups

1. Mentally and physically prepare yourself as the facilitator.

2. Create the right environment.
3. Ensure the expected outcome/s or objectives are clear.
4. Establish expectations.
5. Energise the group throughout the meeting.
6. Manage participation.
7. Adjust your facilitation style

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How do you conduct a group discussion?

Image result for How to Facilitate group discussion in a meeting

To conduct a group discussion, start by having everyone introduce themselves. Next,

establish some ground rules, like treating everyone with respect, no interrupting, and being
succinct. Then, explain the topic that's up for discussion and ask an open-ended question to
begin the conversation.

Learning outcome 4: Check clients attendance

Check the attendance one by one recall if necessary other clients may came late and
record the result.

How do you find the attendance of a meeting?

On Google Calendar

1. Create a new event. click Add Google Meet video conferencing. On the right, click
Change conference settings. Check the box next to "Attendance tracking" ...
2. Click an existing meeting. click Edit event. Under event details, click Change
conference settings. Check the box next to "Attendance tracking"

Track attendance in Google Meet

Eligibility

 Attendance tracking is available to Google Workspace Essentials, Business Plus,

Enterprise Starter, Enterprise Essentials, Enterprise Standard, Enterprise Plus,
Education Plus and the Teaching and Learning Upgrade users.
 Live stream reports are only available for Workspace users with access to the live
stream feature. Live streaming is available for Enterprise Standard, Enterprise Plus,
Education Plus, and Teaching and Learning Upgrade editions.

Enable Attendance Tracking and Live stream reports

Attendance tracking and live stream reports will be enabled by default for your
organization and can be turned on or off by Administrators.

 Google Workspace for Education Plus users and Teaching and Learning Upgrade
users automatically receive an attendance report for any meeting with 2 or more
participants and a live stream report for all live stream events.

 All other eligible Workspace users can turn attendance tracking and live stream reports
on and off from within a meeting or from the Google Calendar event.

 If you turn these features off in recurring meetings or meetings that use the
same meeting code, the setting will be saved for the next scheduled meeting If

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you turn these features off in a one-time, nicknamed, or instant meeting, the
feature will return to on, after the meeting ends.

 Tip: Anyone who schedules or starts a meeting will be the meeting host. If you transfer
or schedule a meeting on someone else's calendar, the other person could become
the meeting host. By default, there is only one meeting host per meeting but you
can add up to 25 co-hosts once inside the meeting.

Inside a meeting

1. From the bottom, click Menu .

2. Click Settings Host Controls .
3. Turn Attendance tracking on or off .

On Google Calendar

Go to calendar.google.com and chose one:

1. Create a new event click Add Google Meet video conferencing.

1. On the right, click Change conference settings .
2. Check the box next to "Attendance tracking" click Save.
3. Finish setting up your event.
2. Click an existing meeting click Edit event .
1. Under event details, click Change conference settings .
2. Check the box next to "Attendance tracking" click Save.

Get your attendance report

After the meeting, the organizer will receive an email with an attached Google Sheets
attendance report with the following info:

 Participant’s name
 If someone calls in from their mobile device, instead of their name, some of
their phone number digits will be listed.
 If someone calls in from a Google Meet meeting room, instead of their name,
the meeting room’s name will be listed.
 Participant’s email
 Length of time participant was on a call, including timestamps of when they first joined
and when they left the call.
 If someone gets ejected from a call, that timestamp will be recorded as the time
they left the call.
 If someone joins and leaves the call more than once, multiple timestamps won’t
be listed, but their overall call duration will be included.

Tip: Meeting organizers will get attendance reports for all meetings, including those
started from Classroom or meet.google.com.

Get your live stream report

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After a live stream, the meeting organizer will receive an email with an attached
Google

Sheets report with the following info:

 Presenters & live stream hosts who dialed into the meeting
 Participants who watched the live stream
 A graph of the live stream’s viewership over time.
 Total number of unique viewers that joined a live stream.
 Unique viewers per minute.

Tip: You will receive a Google Sheets report for each live stream event. The report will
show a different tab with metrics for every time you start and stop the same live stream.

Learning outcome 5: Facilitate center/cluster meeting

Example of LGUs Cluster meeting approach

LGUs to use cluster-based approach for committee meetings

Recognizing the enormous responsibilities of LGUs and the need to synchronize and
harmonize local committee policies and actions, the Department of the Interior and Local
Government (DILG) introduced the cluster-based approach in the conduct of council and
committee meetings.

DILG Secretary Mel Senen S. Sarmiento said this approach will ensure closer and strategic
coordination and efficient implementation of government programs and projects at the local
government level.

“Sa pamamagitan ng cluster-based strategy, mapagtutuunan ng sapat na pokus at atensyon

ng mga lokal na pamahalaan ang samut-saring isyu at suliraning hinaharap nila araw-araw,”
said Sarmiento.

In a directive to local chief executives, Sarmiento urged them to group their local special
bodies, local councils and committees into five clusters: Economic; Social Protection;
Environmental Management and Climate Change; Peace and Order and Public Safety; and
Infrastructure.

The local chief executive may assign any concerned office to provide secretariat support to
each of these clusters.
However, the Local Development Council is exempted from the cluster mandate and shall
independently function as prescribed by law, considering that its mandate encompasses the
concerns of the above clusters.

The local chief executive who shall call and preside the same shall determine and conduct
the Cluster meetings. A special meeting may be conducted to respond to urgent concerns
involving a specific cluster or committee.

Individual committee meetings, regular or special, are expected to be held as prescribed by

existing laws, rules and regulations. The local chief executive may designate an official to
chair said regular or special meetings.

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As stipulated in the memorandum, a Cluster Oversight Committee (COC) may be created
with representatives from the bodies, councils and committees within each cluster. Members
of each council or committee shall select from among themselves their representative to the
COC. The local chief executive shall serve as chairperson of this committee, with a vice-chair
who may be selected from among the representatives of the councils and committees within
the cluster.

Meetings of the committee may be conducted to look into the status of the cluster-wide
implementation of plans and programs, among other things, and ensure efficient and effective
implementation of the same. Upon guidance from the chair, the vice-chair may also call for
COC meetings.

Facilitated Cluster Meeting Minutes (Example)

The below minutes were taken at a cluster meeting facilitated by Country Education
Partnerships (CEP). The tables show a summary of responses to brainstorming activity
aimed at promoting discussion of the aims of the cluster partnership and its future direction.
This is an example of a strategy for exploring the value and potential of a partnership and is
a useful tool for setting shared priorities and goals.

NB: the responses are verbatim and are grouped by theme. The forward slash indicates a
separation between responses.

1. WHY DOES THE CLUSTER PARTNERSHIP EXIST?

Number of
Responses
responses
Support / Collegiate support / Help between teachers / Support and
understanding / Constant support and encouragement to give students
12 the best / Support from those around me / Support and shared
experiences through cluster days and the PLC / Comradeship / The
cluster meetings are valuable / Principal group support
Collaboration / Cluster has provided a collaborative meeting time to
plan and teach Maths / The opportunity to collaborate with other
6
teachers, both experienced and other grads / Opportunities to grow my
teaching knowledge
Come together more often / Chance to get together for meetings PD
4 locally due to more numbers / Opportunity to network with other staff /
Opportunities for conversations about learning
The sharing of ideas and current research / Sharing experience and
4
shared topics / Enhance our own learning
PLC / Weekly PLC / PLC expert knowledge / Continual learning and
4
access to PD
Advice / Sounding board for solutions to problems/to be able to work
3
with or ask advice from others in the cluster

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3 Resources / Resources and sites
Communication with other ESO and support / Open communication
3
and collaboration / The friendship and support of other ES staff
Ability to back myself / A chance to try new things and take some
3
leadership / Opportunity to try new things
2 Year level relevant activities together / Familiar faces at camp
Team Planning Days as long as they’re run / Led correctly structured /
1
Team planning
1 Experience / Professional
1 Clarification
1 When asked, always helps
1 Community welcome

2. HOW WOULD WE LIKE TO WORK TOGETHER IN THE FUTURE?

Number of
Responses
responses
More Group days / More cluster days / More rural cluster days / More
activities together for the students (with a cheaper travel option) /
Students get together more often (more opportunities as each
8 school has different facilities / Interschool leadership days (senior
students) / Socialising / More opportunities to connect students in
learning and leadership / Get extended students to work with other
extended students from different schools / Rotate, share students
Share skills among schools / Share staff expertise in Art, Music, PE,
Science / Share teachers / Creative opportunities / Music
performance opportunities / Employ shared specialists (for Science,
8 Music, etc.) to allow a focus on Maths, literacy and SOSE planning
/ Clear cycled scope and sequence yearly plan / Sharing of learning
programs / Approaches to teaching / Curriculum and administration
sharing
Time for focused small group work at point of need without
classroom management at the same time / More time for teachers
to put new ideas, practices into place, e.g. workshops, inquiry
teaching / Provide time for professional training of teachers /
Teacher collaboration to be able to share data, ideas and moderate
8 / More opportunities to share planning, moderate learning, etc. / The
cluster could implement shared planning times (across schools) for
teachers to teach (including the use of technology, i.e. video
conferencing) / View other teachers in same year level teaching a
subject they love but find challenging / Continue to remain, and
become more, committed to our PLC

Use the technology available to connect the students on a more

4
regular basis / Better and more advanced ICT/STEM technology /

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Better use of teleconferencing system to get students working
together

Upskill all teachers in the development of basic skills/early concepts

2 (foundation skills), motor skills, language / Consistent approach to
vocabulary learning
Share resources – material and ideas / Share expertise/knowledge
2
regarding school libraries / Resource centre
Engage more people from our local community within our schools /
2 More interaction with communities outside of school / Build strong
connections within and beyond the cluster
2 Family support / Ongoing support
Create a program for those students who are not fitting into the
1
current school structure, e.g. FLO
1 Adventure activities
1 Koori education/Australian history
1 Relationships
1 Team Meeting for ES staff
1 A bus to take children on more excursions

3. WHY SHOULD THIS CLUSTER WORK TOGETHER IN THE FUTURE?

Group Responses
Students can come to a small school with the same access to
resources and curriculum in an educational environment that fits
5/6
their needs
Student leaders as a group/extension content/group
We need each other because we can’t do our best alone
Change teaching practice/isolated kids – opportunity caters for
kids/connections to community/small schools need best
Practice/moderating/best practice/affordability/opportunity/don’t
limit 7 small spaces to a small school
Peer observations – staff students/community
PLC, more PDs/Literacy leaders
Balance – more get to know you time
Increase teacher capacity
To improve student outcomes
Striving for excellence
Keep PLC going
Share physical resources
Share planning more effectively – use Google Docs more effectively

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Altogether we can achieve and succeed
To gather together socially at least once a term

To provide the best opportunities for our students through

collaboration, communication and sharing knowledge and resources
/ Students (technology link up)
Staff – meeting for ES Staff, communication (technology)
Regular EA’s gathering – began late last year (Dec)
Update sharing about PLCs/staff meetings
Technology hook ups

4. HOW CAN WE BUILD /STRENGTHEN/ INCREASE TEACHER CAPACITY?

Group Responses
Plan = more opportunity to spend time together (through technology)
Observe = Peer observations through timetabling aligned
Planning time (speaking more often)
5/6
What passions/expertise do we have – survey and use these in the
cluster
Reflect = PLC moderation of work samples
Independent experts being trained up as leaders – need a driver as
a coach
Middle
PLCs more or less? – Maths/Literacy/Wellbeing
Maths has worked well but Literacy is mixed and not really a PLC
PLC type mindset
- PLC training/ Planning together, sharing activities
- Deeper data conversations
Junior
- Cluster data as opposed to individual school data
NB
- Working part time makes it difficult to attend meetings
More PD
PD days for all cluster ES staff
PLCs
We need to know what teaching staff are gaining/ learning from the
PLCs?
Why are they doing this? Is this extra to the Curriculum?
If we have more knowledge about the results they are striving for,
we can assist more effectively and support or link their objectives to
the children’s learning
An email will do
EA Staff Face-to-face sharing of our experiences, strategies would be ideal

Learning outcome 6. Facilitate open forum

Steps on how to Facilitate Discussions

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1. Understand the role of the facilitator. Stay neutral. ...
2. Provide structure to the discussion. ...
3. Guide the discussion. ...
4. Record the discussion in a visible way. ...
5. Ensure productive group behaviors. ...
6. Summarize the results.

Learn about the role of the facilitator and ways to provide guidance and structure for
productive meetings in the classroom and other workplace contexts.

1. Understand the role of facilitator

 Stay neutral. Your role is to create the process and conditions that enable a group to
discuss, plan, decide, learn, or grow (PDF). Conduct the discussion without trying to
direct the group to a particular outcome.
 Achieve learning objectives. Instructors need not be as neutral as facilitators, but you
should strive to bring out the voices in the group, saving "teaching" behaviors until the
group has explored the subject.

Note: If you must participate, change hats by letting the group know that you are shifting
roles and will participate briefly. Do this only if you are actually a member of the group.

2. Provide structure to the discussion

 Decide on a process for the discussion, either independently or with your client.
 Begin with some form of ice breaker (PDF). This helps participants get involved
immediately to address the issues at hand.

Example—Respond to a question:
o What have we learned since last time?
o What unfinished business do we have?
o Tell us something about you that we probably don't expect.
o If you were in charge of this project, where would you start?
 Structure the discussion, rather than allowing a free-for-all, to ensure greater
participation.

Examples:
o Round robin: Each person speaks in turn.
o Nominal group technique: Each person takes 30 to 90 seconds to collect their
thoughts, followed by a round robin.
o Small group discussions: Break big groups (more than eight) into smaller
groups to discuss and then report about the subject. Using smaller groups
ensures greater participation (PDF).

3. Guide the discussion

o Focus on group process. Is the group repeating itself? Are all members who wish to
participating? Is the discussion staying on track and on time?

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o Explain what you see happening, and ask participants to confirm if their experience is
the same. Be factual and specific. Avoid blaming or criticizing indivudals.
o Summarize what is being said.
o In a low-level summary, you simply to say back to the group what it said.

Example: "So Bill agrees with Michelle that this suggestion would be too costly."
o In a high-level summary, you tell the group what you think their discussion
means.
o Example: "So Bill, it sounds like you are concerned about what this decision
ultimately means for the future of this project. Is that right?" Note: Following a
high-level summary, confirm your interpretation with the speaker(s).

 Ask questions to open up discussion, to help the group to decide whether their process
is working, or to think about new directions.
o Closed-ended questions (yes/no or factual) are useful for summarizing or reality
checks, but they don't elicit much input.
o Open-ended questions (how, what, why, tell me, describe) draw people out. If
your discussion isn't getting off the ground, try an open-ended question.

4. Record the discussion in a visible way

Record the discussion in a way visible to the group. Use flip charts, overhead
transparencies, or meeting software projected onto a screen by the facilitator or a helper.

 This is not the same as taking minutes, though you may use the recorded discussion
to supplement the minutes.
 Having the discussion visible helps the group to see the progress it's making and to
refer back to earlier comments.

Note: Whenever possible, use the speaker's own words, and be sure to record everyone's
comments to avoid creating tension and resistance.

Counsel clients on personal/family problems

How do you counsel a client with family problems?

Healthy families

1. Communicate, listen, and value time to talk together.

2. Affirm and support one another.
3. Develop trust among family members, and take care and time to mend breaches of
trust.
4. Have fun, sharing play and leisure time together.
5. Share responsibility.
6. Have shared values and independent values.

5. Ensure productive group behaviors

 Have agreements about starting on time, coming prepared, and working toward
consensus. Refer to the agreements when necessary to get the group back on track.

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 Include everyone. Be sure all members have an opportunity to be heard.
 Look for common ground.
 Deal with conflict by talking about the facts.

Examples:
 "It sounds like we have a difference of opinion here."
 "Let's hear from both points of view, and continue until both sides agree they
have been understood."
 "What do we know about the situation?"
 "What concerns do people have?"
 "How does the current situation affect your ability to make this decision?"

Ask for feedback so you know whether you are helping the group achieve its goals.

6. Summarize the results

Summarize key points at the end of the session for:

 Learning
 Follow-up
 Future action

Learning outcome 7: Counsel clients on personal/family problems

Steps on how do you counsel a client with family problems?

Healthy families

1. Communicate, listen, and value time to talk together.

2. Affirm and support one another.
3. Develop trust among family members, and take care and time to mend breaches of
trust.
4. Have fun, sharing play and leisure time together.
5. Share responsibility.
6. Have shared values and independent values.

Family issues

We all start life with a family, whether that family is blood relatives, adopted parents or
a foster family. Our families influence almost every aspect of our lives, from our first moments
to our last.

Our families go through lots of changes throughout our lives and, because of this, it’s
normal to have problems with your family life from time to time. But, it can be comforting to
know that, whatever issues your family is facing, there is help and support available.
Counselling can help you overcome difficult times together as a family.

What does it mean to be a family?

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We often think of families as people who are always there to support one another and
whilst they can be, for the majority of people, family life isn’t always perfect. Problems may
not always be present but issues can arise from time to time.

Family dynamics

Our family dynamics change considerably over the course of our lifetimes.
Birth, death, marriage, divorce; they are many types of transitions that families go through
together. And each family is unique, even within its own culture. Every family has its own
beliefs and values and, within each family, there may be differences of opinions about a wide
range of issues.

Factors in our lives can affect our family relationships and, equally, our family
relationships can impact the rest of our lives. Our families absorb many of the stresses and
strains from the outside world - and the pressures can sometimes boil over. Personal
problems can overwhelm a family, so much so that it can feel as though there is no clear way
forward. Other times, changes within the family leave other members confused, angry or hurt.

The love, grudges, loyalties and betrayals present in family life, can have lasting
psychological and emotional effects. Whether we remain close or become separated, the
relationship we have with parents, siblings and other family members has the potential to
shape and inform us like no other experience. It can define us, or leave everlasting
suggestions as to who or what we should be.

Particularly as children, we spend so much time with our families, and these people
have an undoubted impact on what makes us who we are; we develop our expectations of
others, communication skills, outlook on life, as well as many other traits from our families.
As a result of the impact our family lives have on us as people, it’s important to try to resolve
problems within family life, to prevent ongoing issues.

What are family problems?

Families can be a source of support, encouragement and love but, sometimes,

relationships within families are put under strain. Perhaps you’re a parent worried about your
child's behaviour or how a divorce may impact your family. You might be part of a stepfamily
and need help adjusting, or you may be arguing with parents or siblings and need support
communicating with each other.

Every family is different but many families face similar issues. Problems that a family
may face include:

 Disruption as a result of separation or divorce.

 Problems with step-family life or when a new partner moving in.
 Money problems such as debt or redundancy.
 Changes in family structure, as the result of a bereavement or illness.
 Problem behaviour with adolescents or older children.
 Children leaving home.
 Unwanted pregnancy.

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It’s important to remember that there may be a number of issues that are causing family
problems, and it may not be possible to ‘fix’ any of the issues. What we can do, however, is
adjust our attitude to what is happening and try to find solutions to make problems easier to
deal with.

Parenting issues

Parents often seek counselling because they are struggling with a child who is
displaying a lot of emotional angst. For young children, feelings of sadness, disappointment,
frustration, confusion and anger can feel overpowering and all-consuming.

If your child’s behaviour has changed, consider what else is happening in their life - is
there anything that may have triggered their distress? Situations like moving house,
divorce, bullying and bereavement can affect a child greatly, and stress can build when they
don’t know how to cope.

It's important to remember that our children need boundaries - maybe now more than
ever. Curfews, check-ins, accountability - they're all important in showing our young people
that they have value, and the reason we want them home by a certain time is because we
love them and we care.

Particularly as children get older and enter into their teenage year, further problems can
start to arise. And, given that 75% of mental illnesses are established by the time we turn 25,
supporting young people’s mental health as they enter adolescence - a peak period of
change in their lives - could make the world of difference in their long-term health.

Stepfamilies

To reach the point of the stepfamily, there has often already been a degree of change
and potential emotional strain on your family. Whatever the reason parents decide
to separate, it can take its toll on the family life.

If you are a stepparent, you may find it difficult to fit into an existing family dynamic.
For many reasons, it can be hard to strike a connection with stepchildren. It is important to
recognise that stepfamilies can present challenges from the start and that this is natural. It
takes time to develop and consolidate as a family group.
Counsellor Graeme Armstrong provides seven tips for if you are becoming or are already
a stepparent.

Ageing parents

As our parents grow older, the relationship tends to shift towards us becoming their
carers and feeling responsible for their well-being. Depending on circumstances, you may
find yourself faced with numerous dilemmas relating to finances and healthcare, which can
greatly impact on your own sense of well-being.

The need to make difficult decisions can cause conflict among siblings and this can
impact on other members of the family, such as your partner or children. You may also find
yourself asking questions about your own mortality and attitude to death.

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If you find yourself facing questions like this, existential therapy can provide a non-
judgmental, open setting for exploring these challenges.

Overcoming issues as a family

Sometimes it can feel difficult to deal with certain issues, particularly if relationships
are strained within the family. But, although it’s hard, it can be useful to talk these things
through with someone you trust - your partner, a family member or a close friend. Talking
about the challenges you are facing as a family can allow you to understand and address
problems.

In some cases, it can be beneficial to seek professional help. Speaking to a counsellor

regularly for a matter of weeks or months to a get a more comprehensive understanding of
what we’re feeling and where it’s coming from.

What is family counselling?

Family counselling, also known as systemic therapy, is an approach that works with
families to encourage conversation and communicate better with each other, in order to
resolve issues. Issues which might be explored may relate to one incident or a repeated
pattern of behaviour.

Family counselling and therapy usually work with cognitive behavioural therapy,
systemic and solution-focused therapy, to take a closer look at the thoughts of all family
members. The aim is to clarify what the problems are and then focus on solutions, rather than
delving into the origins of the problems. This can help with self-reflection for the individuals
and increase self-awareness of their family’s stage in its life cycle.

Family counselling is flexible because every family is unique. The goal is to help
families build stronger relationships, but this will mean different things to different families, as
we all have unique challenges. Ultimately, the aim is for families to enjoy being together and
to face life’s challenges as a team.

A family counsellor maintains neutrality at all times, to establish a platform free from
blame. This allows members to explore the problem and then express their concerns for the
family’s ability to change.

How does family counselling work?

Your counsellor will collect the views and thoughts of members of the family through
questions, mainly about the differences that exist among the individuals. Family members
are then invited to be observers, too, of the questions answered by other members and of
their own behaviours and assumptions. The trained family counsellor offers the group an
opportunity to think and reflect on the present situation with a view to moving towards a better
way of being together.

An assessment can be difficult due to the different natures of family dynamics -

defining where the problem is can mean something different to each member of the family.
One person might be blamed and they, in turn, may blame someone else. If this issue gets
stuck, these two members might work together for a couple of sessions.

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The interconnected set of relationships within the family is central to this type of
counselling. The logistics of getting all members along to participate in counselling can pose
difficulties, but it can be a satisfying and rewarding means to establish new and healthier way
of relating.

Not all members have to attend every session; couples counselling, youth work or individual
counselling may follow and the family may meet later to discuss changes.

How could counselling help my family?

Counselling can help establish the events that have led to the family needing help.
These might include life events, transitions or repeating patterns. Family problems might be
mapped out to show their history and development and allow members to feel clearer about
the problems and how they might have arisen, reducing blame.

There should also be an opportunity to define the relationships, as people see them
themselves and as others do. This can lead to greater awareness and insight to allow any
necessary changes. It can also offer the opportunity to see the abilities and difficulties that
are available within the family group for dealing with problems and change and how they be
might be used.

Counselling might clarify a new pattern of being together after a marital breakdown or
remarriage. It can also help to process feelings of being excluded or rejected, which might be
otherwise acted out in disruptive behaviour; misunderstood by the other family members.
Communication might be repaired or established for the first time and family members may
feel supported and encouraged to manage changes.

Learning outcome 8: Resolve conflict among clients

Strategies for Handling & Resolving Conflicts with Clients

1. Determine if the problem is worth discussing.

2. Use the right body language.
3. Focus on the facts not on personal opinions.
4. Allow everyone to speak.
5. Be mindful about language.
6. Refocus the client on the impact.
7. Approach the problem with empathy.

If you were one to relish conflict, you’d probably have chosen a different career path –
one where you could charge clients in 15-minute increments and demand a higher billable
rate.

Yet it’s impossible to completely avoid tough situations. Conflict is the direct result of two
groups having disparate versions of success -- a natural thing as two businesses work with
one another. It also easily occurs when communication is unclear, processes are unfamiliar,
changes happen quickly, and expectations are misaligned.

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For an agency business conflict management is key. 16% of agency businesses face
client retention problems due to proper conflict management strategies in place. Agencies
and their clients have to deal with disagreements during a relationship, especially in the
beginning as the teams are learning about one another and the partnerships is unproven.
This is compounded by the fact that clients, naturally, want to achieve the best results at the
lowest price, and the hourly rate structure of agencies is set up to encourage the opposite
approach.

According to the Marketing Agency Growth Report 2018, even when an agency has
the right talent in place, only 50% of agencies structure their companies in a way that
encourages career growth. This is a red flag that signals agencies’ risk of losing talent to
other agencies or to other industries thereby reducing their daily productivity and disconnect
with their clients. One way to bypass some of this disconnect is with an effective onboarding
process to identify all intentions and expectations, but does not circumvent all possible points
of contention.

But conflict doesn’t have to be negative. Expertly navigating conflict can actually result
in more trusting and honest relationships and improved collaboration and productivity.
A study by VitalSmarts found that employees waste $1,500 per eight-hour workday for every
conversation they avoid. And to get a coveted referral, the key is to have open, understanding
conversations that create an appealing environment where all parties will want to work
together.

Handling conflict in the right way will allow you to get to the core issue more quickly
and with a better end result, helping you to salvage the relationships that matter and end
those before they ruin your reputation. It’s also a valuable opportunity for both sides to
consider and state what really matters to them and refocus on that.

The Styles of Conflict Management

According to the Thomas-Kilmann Conflict Mode Instrument (TKI), there are five styles of
handling conflict. An understanding of the five styles should be used to plan an approach to
a difficult conversation or meeting, or it can be used to understand the other party's position
and approach.

5 Approaches to Conflict Management

1. Competing
2. Collaborating
3. Compromising
4. Avoiding
5. Accomodating

1) Competing

Under this style, you disregard the wants of the other person and aggressively pursue
your goal. This should only be used if there is little hope of salvaging the relationship or an
immediate action or conclusion to the situation is needed.

2) Collaborating

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In this mode, you are both assertive and cooperative, working to find a solution that
satisfies both teams.

3) Compromising

In the compromising approach, you know that neither you nor the client will be
completely happy at the resolution of the issue. Your main goal is to find a solution that partly
satisfies both sides. You each need to give a little. These conflict resolutions are more
complex, requiring both sides to reveal what they care about and to trust the other person.

4) Avoiding

This approach to conflict is all too common. You simply avoid the issue, hoping that
you won’t have to deal with it. Sometimes it works to avoid problems that will eventually
resolve themselves. But in most cases, this is not a long-term solution as these problems
reappear, uglier than ever.

5) Accommodating

In the accommodating mode, you work to solve the resolution and are so focused on
the other person’s needs or solving the problem that you end up working against your own
objectives.

It's also useful to consider how much power you have in this situation. Is it more or
less than the other party? What are you willing to lose in the conflict situation? Know this
before you start the resolution process.

Techniques for Handling & Resolving a Client Conflict Productively

Knowing how to handle and resolve conflict will make your agency an ideal place to
work with. Having strategies to reduce conflict with your agency will produce greater
satisfaction among clients and employees.

When people have different priorities, incentives, and ways of working, it’s natural for
conflict to occur, so identifying which type of client you are working with will help determine
how to productively interact with them. Accepting this fact is the first step. Next, you need to
be able to appreciate conflict as a way to improve communication and the end work product.
Once you have adopted this mindset, consider these strategies for handling & resolving
conflicts with clients.

Strategies for Handling & Resolving Conflicts with Clients

 Determine if the problem is worth discussing

 Use the right body language
 Focus on the facts not on personal opinions
 Allow everyone to speak
 Be mindful about language
 Refocus the client on the impact
 Approach the problem with empathy

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1) Determine if the problem is worth discussing

I’m not advocating that you avoid problems, but there are some issues not worth
mentioning -- the emotional energy and professional time it would take to address and resolve
it is disproportionate to its negative impact on your team.

Many people fear conflict and try to avoid it at all costs. By bringing up an issue, you
may spur feelings of discomfort and defensiveness in the other person. Be prepared for things
to be repaired or for resentments to form.

2) Use the right body language

The way you are sitting, your facial expressions, and your verbal tone provide a lot of
information to the person on the other side of the table about your approach to solving the
problem, no matter what you are saying.

This is an often-cited statistic, but it is worth revisiting: Only 7% of a message is

conveyed through words, while 38% is communicated through vocal elements and 55%
through nonverbal cues such as facial expressions and posture.

If the person’s body language is positive and shows openness, you will want to mirror
their posture and position. Refrain from crossing your arms as this tends to indicate
aggression on your part. Try to sit close to the person to show your willingness to collaborate
and communicate.

3) Focus on the facts not personal opinions

It can be easy to be blinded by your personal opinions of the person on the other end
of the disagreement, but when addressing an issue or dealing with frustrations and other
emotions, focus on the issue. Start the conversation by outlining the facts -- the who, what,
where, when, why, and how -- and remain objective. If the situation warrants bringing up
emotional implications, use phrases such as “I feel … ” or “When you did X, it caused me to
feel X … ”.

4) Allow everyone to speak

Clients that leave their agencies often complain of not feeling heard. They may have
expressed a need or emphasized a problem, but the agency staff members either
downplayed the importance of the issue or it was never brought to the attention of the right
leaders.

If you’ve already identified an issue and are working to solve the conflict, be sure to
allow the client to fully express her feelings and thoughts. Give her the forum and the time to
detail what happened and how she felt. Ask open-ended questions that are non-judgmental.
Don’t jump into defending why your team did one thing or another. Most likely, that's not even
important at this point. For some, it’s enough to just know that their concerns have been
voiced, and they have been heard.

5) Be mindful about language

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Specific words can prompt people to become defensive or to question your motives
for highlighting a problem. When you are having a disagreement with a client, use “and”
instead of “but”. For example: “You want us to have the project done by Friday, and our team
is already under a deadline for another project. I’m worried about how to resolve these two
things.”

By phrasing it this way, your client can begin to see your struggle and the decision you
have to make. It won’t always solve the immediate issue, but it could spur the client to
consider your point of view during conversations.

6) Refocus the client on the impact

Sometimes people can become so blinded by missteps that they lose focus -- they
forget the end goal. While it’s obviously not ideal that a key deadline was missed or that the
account manager failed to ask for a key piece of information, in the end, these two things
have had little-to-no impact on the client getting what they really want -- whatever that may
be.

Try to refocus the client on what really matters. Apologize and ask if she can move
forward. Reestablish your expertise and commitment to achieving the client’s objective.

7) Approach the problem with empathy

Only focusing on how a problem negatively impacted your team is the wrong way to
approach resolving a conflict. Consider why the client is upset or disappointed in the
relationship. Consider the implications for her team or even her job. Try to understand the
motivations for the client being difficult.

One way to create empathy in your team and the client’s is to prompt everyone to
consider a hypothetical situation that allows people to disconnect emotionally from the
situation and consider a different perspective. This can put people in a new mindset and
make them more willing to work through an issue.

ACTIVITY

Modified true or false No. 1. Write True if the statement is true; Write false if the
statement is incorrect, (2 points each)

_______________1. Specific words can prompt people to become defensive or to question

your motives for highlighting a problem.
_______________2. Having strategies to reduce conflict with your agency will produce
greater satisfaction among clients and employees.
_______________3. Counselling might clarify a new pattern of being together after a marital
breakdown or remarriage.

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_______________4. Talking about the challenges you are facing as a family can allow you
to understand and address problems.
_______________6. Our families go through lots of changes throughout our lives and,
because of this, it’s normal to have problems with your family life from time to time.
_______________7. Meetings of the committee may be conducted to look into the status of
the cluster-wide implementation of plans and programs, among other things, and ensure
efficient and effective implementation of the same.
_______________8. Plan = more opportunity to spend time together (through technology)
_______________9. Record the discussion in a way visible to the group.
_______________10. To conduct a group discussion, start by having everyone introduce
themselves.

Activity No. 2 Assume to have a meeting with your clients Make a Meeting agenda and
submit to your instructor.

WEEK 13
UNIT COMPTETENCY 5. PROCESS APPLICATION FOR LOANS AND OTHER
PRODUCTS/SERVICES

Lesson Objectives: At the end of this lesson, the students should be able to:
1. Learn to Gather applications for loans and other products/services
2. know to evaluate loan applicant and/or insurance applicant/claimant
3. Prepare summary of loan applications and/or insurance

What Happens During the Loan Application Process?

Small business owners often ask us about the loan application process. What is
required to apply for financing and successfully complete the process? How long will it take
to receive funds? Whether you need financing today or are hoping to gain a better
understanding of the loan process to plan for future needs, it is important to know what to
expect from application to closing.

Depending on the financial institution you choose, the process and the time it takes to
receive funding may vary. Generally, once the loan application and all related documents are
submitted to the bank, the rest of the process can take anywhere from two weeks to six
months. The timing may vary based on the bank’s experience with lending to the borrower’s
industry, the borrower’s responsiveness in submitting the necessary documents and the
accuracy and completeness of information collected. At Live Oak Bank, our lending team
specializes in various industries and understands the intricacies of those business models,
which can make the process smoother.

During each phase of the loan process, a borrower will work with different members
of the loan team. The three stages of every loan are the application, underwriting and closing.

Application

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In the application phase, a loan officer will work with you directly to gather all
information needed to prequalify your loan request. First, you will discuss your plan for the
loan proceeds. Are you looking to refinance existing debt? Are you looking to acquire an
existing business or expand your current operations? If you are buying or expanding, have
the purchase price details available. The lender will need to understand your business and
your plans for the future to submit a complete loan application. During the application phase,
be prepared to present the following information to your lender:

-Describe your new and/or existing business and the local market. It will be important
to understand the competition in the area, as well as the local demographics. The lender will
also need to know about your experience in the subject business and the industry.

-Discuss present revenue breakdown and anticipate future revenue and trends. This
information will help the lender better understand your business.

The application includes items such as corporate tax returns and current financial
statements as well as your contact information, resume and personal tax returns.

Once all the necessary documentation is submitted, Live Oak Bank will send you a
loan proposal. After the proposal is accepted, you will move into the underwriting stage.

Underwriting Process

In the underwriting phase, you will work directly with the underwriter assigned to your
loan. The underwriter verifies and analyzes documents submitted during the application
phase to determine accuracy and creditworthiness. The underwriter will complete a cash flow
analysis and full review and analysis of other pertinent financial information related to both
the business and the individual(s) seeking the loan. Additional financial details may need to
be submitted to the underwriter analyzing the business. This information will be part of the
credit memo, which is presented to the credit officer who ultimately approves or rejects the
loan request. Specific questions regarding paperwork can be addressed directly to your
underwriter.

By understanding your story, how you got where you are today and your plans for the
future, your underwriter will be your advocate and assist you throughout the review process.
When your loan is approved, you will receive a commitment letter with the terms and
conditions of the loan. Once you provide your signature, you will move into the final stage of
the loan process.

Loan Closing

Once a commitment is made by the institution providing financing, the loan closing
specialist, or closer, will prepare a closing checklist of all required documentation needed on
your loan prior to closing. He or she will contact you to schedule a kick-off call to explain the
checklist in detail. All parties involved in the loan, including the borrower, the borrower’s legal
consultants and the lender, will be included on the call. Your closer will then review and
approve all documents received off the checklist and move the loan into the last phase of
closing. At this point, final loan documentation, including the Note, Deed of Trust, Security

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Agreement, is prepared and reviewed by your closing team prior to you signing to ensure all
necessary information is included.

Throughout the financing process, you will work with a group of specialists who bring your
loan to fruition. Understanding the phases of the loan and the roles of the lending team
members will help you gather the appropriate information and navigate the loan process.
With Live Oak, you get a partner who believes in your success, and is willing to take the
journey alongside you

Learning outcome 1: Issue applications for loans and other products/services

Loan Processing Step-By-Step Procedures

We will outline all the major steps needed to be completed by a loan processor in order
to ensure a successful loan package. While there are variations to these steps depending on
your employer, local and state laws, and others, the following guide will still serve as a good
checklist in any loan processing environment.

1. The Loan File

The loan file is where it all begins. Depending on whether or not you are the loan
processor of a larger company or both the loan officer and loan processor of a smaller office,
the work of the loan processor starts here with this file (well folder). The loan file will contain-
-you guessed it--the loan application. In addition, it will include comments made by anyone
who has had their input in the loan application process as well as any notes about the
potential borrower that was made during the loan interview process. Read through the
application, comments, notes, and overall loan request. You should make sure that you
understand the loan in its entirety before moving forward. If you have any questions about
the loan you need to clarify these issues with the Loan Officer before moving forward.

After you have reviewed the information and have a clear picture of the loan and why
the applicant is requesting it, you'll enter this information into your company's loan processing
computer system. There are many programs out there that your employer will use; many of
them are a combination of home-grown software packages. However, the reason this
information needs to be fully entered into the computer system is because fulfilling all the
requirements of a successful loan is tedious and deadline specific. The loan processing
software you use will keep you on track for the next steps that need to be completed as well
as their related deadlines. Once this information has been fully entered into the computer
system, you can now proceed to the next step.

2. The Credit Report

In many cases, the credit report may already be provided for you. The loan officer may
have already run this report from the beginning before going any further with the loan
application process. The loan applicant has consented to have their credit report pulled for
purposes of evaluating their loan worthiness. If the credit report is not already attached to the
loan file, then you'll need to double check the application to make sure that they have
consented to the credit report check and then pull their credit report. Most of the credit reports
you pull will be stored electronically in your loan processing software, but if not, print at least
2 copies to attach to the loan file.

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3. Title Records and Information

If you are processing a loan request for an automobile, boat, house, and so on, you
will need to verify the title information (VOT: Verification of Title). This will not be necessary
for all loans which you might handle. Title verification helps to determine if there is a lien on
the object that the borrower is requesting a loan on.

Interested in learning more? Why not take an online Loan Processing course?

4. Verify Income Sources

Probably the most important step is to verify all the income, assets, and employment
information of the borrower. You need to verify the employment of the borrower (VOE). You
need to verify the income of the borrower (VOI). You also need to verify the assets listed by
the borrower (VOA) and any other income information required or produced by the borrower.

Every lender differs in the way you go about verifying a loan applicant's income, so be
sure to follow the procedures for your specific lender. If your lender requires verification of
employment in writing, you'll need to request that letter from the loan applicant's employer.
For some lenders, paystubs and W2 forms are sufficient. And yet for others, simple verbal
verification of employment by phone is fine. You need to record each verification that you
have made into the loan processing software which you are using.

5. Appraisals, Insurances, and Inspections

If you have verified all the income and employment sources for the loan applicant (or
you are far along in the process and you are only waiting for replies from the necessary
parties), you are now ready to continue with any necessary appraisals, proof of insurance, or
inspections. These items will vary greatly depending on the state and local laws that govern
the loan which the applicant is requesting, as well as the type of loan itself. For example, if
you are handling a mortgage loan, you'll need to have the property appraised, inspected, get
proof that there is no termite presence (in some states), and other procedures.

6. Loan File Review

If there are any mistakes, errors, or oversights, this is where they need to be caught.
At this point, the loan process is complete; you have obtained the credit reports for the loan
applicant. You have verified all income, deposits, and employment. You have appraised and
inspected the property, the vehicle, or other asset, if needed. Now you need to check and re-
check all of this documentation. If any of the information seems vague, you either need to
clarify the information or write in an explanation as to why this information isn't provided in
greater detail. This is also where you'll be able to find any red flags in the file. Be sure to
highlight or note any red flags that you see before you send it off to the underwriters.

7. Certify and Deliver the File

Now that you have reviewed all the information in the loan file and are satisfied with
the documentation you have provided and verified, you will now finalize the loan package
and deliver it to the lender, underwriter, and manager.

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In summary, your file should include the loan application, this is the typed and signed
application with all information provided by the loan applicant, the credit report, all
verifications of employment, income, assets (W2s, paystubs, tax returns, and bank
statements, for instance), any valuation reports (inspections, appraisals, proof of insurance),
any title reports (particularly noting any liens), and any public legal disclosures that must be
signed by the loan applicant. The final product should be sent registered mail to the
appropriate parties (most likely the lender or the underwriter).

After the whole process it is time to release/Issue applications for loans and other
products/services

Learning outcome 2: Gather applications for loans and other products/services

How to Expedite Your Loan Application?

If you plan to apply for a business loan and would like to expedite the turnaround time
for a decision, consider the recommendations below. These tips are provided by Connecticut
Innovations’ Lending Group.

Before meeting or talking with commercial lenders:

Collect financial information.

Historical: Assemble financial records for the most recent three calendar or fiscal
years, including your business’s financial statements (balance sheet, income statement and
cash flow statement, including all schedules) and tax returns, your personal tax returns, and
a signed personal financial statement (if you own 20 percent or more of the business). Your
accountant should have these on file.

Current: Additionally, gather financial statements for the current fiscal year to date,
your business debt schedule, and accounts receivable, accounts payable and updated
inventory reports.

Future: Finally, prepare financial projections (with assumptions and supporting data)
for the remainder of the current fiscal year as well as the next two years.

Prepare a company summary. If you do not have a formal business plan, don’t panic.
You may submit a business summary, which contains many key elements of a business plan,
addressed in a more concise fashion. Include discussions of: company history, management
team, the product and/or services you offer, the markets you operate in, the state of your
industry (whether growing, mature, contracting), and major competitors and how your
products/services differ. Additionally, provide resumes of key principals of the business.

Collect other documents (as needed). If you are seeking financing for the purchase or
construction of real estate, gather (as applicable): executed purchase and sale agreement,
real estate appraisal, environmental report and any construction plans, permits, budget, etc.,
for the project.

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If you are seeking financing for the purchase of equipment, be prepared to submit the
equipment appraisal and a detailed list of the fixed assets your business owns (i.e., property,
machinery and equipment).

When meeting or talking with lenders:

Identify your borrowing needs. When you speak with prospective lenders, be prepared
to talk about the current state of your business, plans for growing your business, why you are
seeking financing and how much financing you feel you need. Discuss whether your accounts
receivable are growing or slowing, and why.

After a frank discussion, your lender should be able to identify the appropriate
financing product for you. This may, for example, be a permanent working capital loan to help
you ramp up production if your accounts receivable are growing, or to help you pay creditors
if your accounts receivable are slowing. Additionally, the lender may decide that it wishes to
partner with Connecticut Innovations to meet your financing needs.

After you meet or talk with lenders:

Complete the lender’s loan application. If the lender you have spoken with invites you
to submit a financing application, be sure to complete all relevant sections. An incomplete
application will likely delay the processing of your request.

Submit your financial statements, business summary information and other required
documents electronically. Lenders generally prefer to receive this information in an electronic
format, not mailed as hard copy via U.S. Postal Service.

Be responsive to lenders’ follow-up questions. Even if the information you submitted

is 100 percent complete, the lender will most likely ask you to clarify certain points or gather
more detail in certain areas. Be sure you respond promptly.

Learning outcome 3: Evaluate loan applicant and/or insurance applicant/claimant

What Lenders Look at When Evaluating Your Loan Application

What everything you’re about to read boils down to is that business lenders are looking
for candidates that will help them mitigate risk. After all, the business of lending money is
inherently risky—and lenders want to make sure they’re going to not only not lose money,
but get it back (and then some).

These are the key factors that lenders use to assess that level of risk you bring to the
table as a borrower. This combination of indicators allows them to evaluate the chance of
whether or not you’ll pay back the money they’ll lend you:

Creditworthiness

Lenders will evaluate your credit report—often both your business credit and your
personal credit, depending on the loan product you want—to see how you’ve managed
money you’ve borrowed in the past. More often than not, lenders will take into account your

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credit score when deciding whether or not to offer you a loan. In general, the higher your
credit score, the lower your perceived risk.

Cash Flow

Lenders will want to see that you have a solid cash flow to repay your loan, and the
assets to fall back on if you experience setbacks. That’s one of the reasons they generally
request bank statements for underwriting. For many seasonal businesses, providing proof of
consistent cash flow can be a challenge—you make the majority of your money during certain
calendar months, and so your cash flow is uneven.

Time in Business

The more data you can provide a lender on your track record with handling money
responsibly, the better. That’s why time in business is an important stat. You have more
business credit history for the lender to see and judge your risk factor—plus prove that you’ve
been good with loaned money.

Revenue

Although not every business is profitable, lenders will be looking at the revenue that
you’re generating. Sometimes, getting your business into the black can take quite a while—
and investment, too. With that in mind, lenders want to see that your business is generating
revenue, and consistently has been over a sustained time period.

Plan for Using Your Loan

Lenders will evaluate the proposed loan’s purpose as well as your plan to implement
the funds. You’ll want to come to the table with a plan for what you’re going to do with the
money, whether it’s investing in fixed assets, inventory, payroll, or anything else.

Learning outcome 4: Evaluate loan and/or insurance documents

Credit evaluation and approval is the process a business or an individual must go

through to become eligible for a loan or to pay for goods and services over an extended
period. It also refers to the process businesses or lenders undertake when evaluating a
request for credit. Granting credit approval depends on the willingness of the creditor to lend
money in the current economy and that same lender's assessment of the ability and
willingness of the borrower to return the money or pay for the goods obtained-;plus interest-
;in a timely fashion. Typically, small businesses must seek credit approval to obtain funds
from lenders, investors, and vendors, and also grant credit approval to their customers.

EVALUATING CREDIT WORTHINESS

In general, the granting of credit depends on the confidence the lender has in the
borrower's credit worthiness. Credit worthiness-; which encompasses the borrower's ability
and willingness to pay-;is one of many factors defining a lender's credit policies. Creditors
and lenders utilize a number of financial tools to evaluate the credit worthiness of a potential
borrower. When both lender and borrower are businesses, much of the evaluation relies on
analyzing the borrower's balance sheet, cash flow statements, inventory turnover rates, debt

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structure, management performance, and market conditions. Creditors favor borrowers who
generate net earnings in excess of debt obligations and any contingencies that may arise.
Following are some of the factors lenders consider when evaluating an individual or business
that is seeking credit:

How 4 Top Performers Maintain Their Mental and Physical Wellbeing

Credit worthiness. A history of trustworthiness, a moral character, and expectations of

continued performance demonstrate a debtor's ability to pay. Creditors give more favorable
terms to those with high credit ratings via lower point structures and interest costs.

Size of debt burden. Creditors seek borrowers whose earning power exceeds the
demands of the payment schedule. The size of the debt is necessarily limited by the available
resources. Creditors prefer to maintain a safe ratio of debt to capital.

Loan size. Creditors prefer large loans because the administrative costs decrease
proportionately to the size of the loan. However, legal and practical limitations recognize the
need to spread the risk either by making a larger number of loans, or by having other lenders
participate. Participating lenders must have adequate resources to entertain large loan
applications. In addition, the borrower must have the capacity to ingest a large sum of money.

Frequency of borrowing. Customers who are frequent borrowers establish a reputation

which directly impacts on their ability to secure debt at advantageous terms.

Length of commitment. Lenders accept additional risk as the time horizon increases.
To cover some of the risk, lenders charge higher interest rates for longer term loans.

Social and community considerations. Lenders may accept an unusual level of risk because
of the social good resulting from the use of the loan. Examples might include banks
participating in low-income housing projects or business incubator programs.

OBTAINING CREDIT APPROVAL FROM LENDERS

Many small businesses must rely on loans or other forms of credit to finance day-to-
day purchases or long-term investments in facilities and equipment. Credit is one of the
foundations of the American economy, and small businesses often must obtain credit in order
to compete. To establish credentials for any credit approval process, from short-term loans
to equity funding, a small business needs to have a business plan and a good credit history.
The company must be able to show that it can repay the loan at the established interest rate.
It must also demonstrate that the outlook for its type of business supports planned future
projects and the reasons for borrowing.

In applying for credit, small business owners should realize that potential creditors-;
whether banks, vendors, or investors-;will seek to evaluate both their ability and willingness
to pay the amount owed. This means that the creditor will examine the character of the
borrower as well as his or her ability to run a successful business. Creditors will also look at
the size of the loan needed, the company's purpose in obtaining funds, and the means of
repayment. Ideally, lenders evaluating a small business for credit approval like to see up-to-
date books and business records, a large customer base, a history of prompt payment of
obligations, and adequate insurance coverage.

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The process of granting loans to businesses is regulated by the Federal Trade
Commission (FTC) to ensure fairness and guarantee nondiscrimination and disclosure of all
aspects of the process. The Small Business Administration (SBA) publishes a series of
pamphlets and other information designed to assist businesses in obtaining loans. These
publications advise businesses on a range of credit approval topics, including describing
assets, preparing a business plan, and determining what questions to expect and how to
prepare responses to those questions.

GRANTING CREDIT APPROVAL TO CUSTOMERS

Credit approval is also something that a small business is likely to provide for its
customers, whether those customers are primarily individual consumers or other businesses.
The process by which a small business grants credit to individuals is governed by a series of
laws administered by the Federal Trade Commission that guarantee nondiscrimination and
other benefits. These laws include the Equal Credit Opportunity Act, Fair Credit Reporting
Act, Truth in Lending Act, Fair Debt Collection Practices Act, and Fair and Accurate Credit
Transactions Act.

Experts recommend that small businesses develop credit policies that are consistent
with overall company goals. In other words, a company's approach toward extending credit
should be as conservative as its approach toward other business activities. While granting
credit to customers can offer a small business a number of advantages, and in fact is a
necessary arrangement for many types of business enterprises, it also involves risks. Some
of the disadvantages of providing customers with credit include increasing the cost of
operations and tying up capital that could be used elsewhere. There is also the risk of
incurring losses due to nonpayment, and of eroding cash flow to an extent that requires
borrowing. But granting credit does offer the advantage of creating a strong base of regular
customers. In addition, credit applications provide important information about these
customers that can be used in mailing lists and promotional activities. In the retail trade,
furthermore, credit purchasers have proven to be less concerned with prices and inclined to
buy more goods at one time.

When developing credit policies, small businesses must consider the cost involved in
granting credit and the impact allowing credit purchases will have on cash flow. Before
beginning to grant credit to customers, companies need to be sure that they can maintain
enough working capital to pay operating expenses while carrying accounts receivable. If a
small business does decide to grant credit, it should not merely adopt the policies that are
typical of its industry. Blindly using the same credit policies as competitors does not offer a
small business any advantage, and can even prove harmful if the company's situation is
atypical. Instead, small businesses should develop a detailed credit policy that is compatible
with their long-term goals.

The decision about whether to grant credit to a certain customer must be evaluated
on a case-by-case basis. Each small business that grapples with this issue needs to gather
and evaluate financial information, decide whether to grant credit and if so how much, and
communicate the decision to the customer in a timely manner. At a minimum, the information
gathered about a credit applicant should include its name and address, Social Security
number (for individuals), bank and/or trade references, employment and income information

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(for individuals), and financial statements (for companies). The goal is to form an assessment
of the character, reputation, financial situation, and collateral circumstances of the applicant.

Credit Programs for Business Customers

There are many avenues available to small businesses for gathering information about
credit applicants. In the case of business customers, a small business's sales force can often
collect trade references and financial statements from potential customers. The small
business can also contact local attorneys to find out about liens, claims, or actions pending
against the applicant, and can hire independent accountants to verify financial information.
An analysis of a company's debts, assets, and investments can provide a solid picture of its
credit worthiness, particularly when the data are compared to a composite of companies of
similar size in similar industries. It is important to note that all information gathered in the
credit approval process should be held strictly confidential.

Credit Programs for Individual Consumers

Consumer credit bureaus are a useful resource for small businesses in evaluating the
credit worthiness of individual customers. These bureaus maintain records of consumers'
experiences with banks, retailers, doctors, hospitals, finance companies, automobile dealers,
etc. They are able to provide this information in the form of a computerized credit report, often
with a weighted score. Still, credit bureau reports do have some potential for error, so small
businesses should not necessarily use them as the only source of consumer credit
information. It is also important to note that credit granted to consumers is subject to the
federal Truth in Lending Law, as well as a number of other federal statutes.

Many small businesses, particularly in the retail trade, choose to participate in major
credit card plans. Allowing customers to pay with credit cards offers businesses a number of
advantages. Since most large retailers provide this service to customers, accepting credit
cards helps small businesses compete for new customers and retain old ones. In addition,
customers are often tempted to spend more when they do not have to pay cash. The
convenience of credit card purchases may also attract new business from travelers who do
not wish to carry large sums of cash. Finally, credit card programs enable small businesses
to receive payment more quickly than they could with an individual credit account system.
The main disadvantage to participating in credit card plans is cost, which may include card
reading and verification machinery, fees, and a percentage of sales. Credit cards also make
it easier for customers to return merchandise or refuse to pay for items with which they are
dissatisfied. Still, in this technological age, few small businesses (or large ones, for that
matter) can afford to forsake membership in some sort of credit card plan.

Another common type of consumer credit is an installment plan, which is commonly

offered by sellers of durable goods such as furniture or appliances. After credit approval, the
customer makes a down payment and takes delivery of the merchandise, then makes
monthly payments to pay off the balance. The down payment should always be large enough
to make the purchaser feel like an owner rather than a renter, and the payments should be
timed so that the item is paid off at a faster rate than it is likely to depreciate from use. The
merchandise acts as collateral and can be repossessed in the case of nonpayment. Although
installment plans can tie up a small business's capital for a relatively long period of time, it is
possible to transfer such contracts to a sales finance company for cash.

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Learning outcome 5: Prepare summary of loan applications and/or insurance

Loan Summary means the summary furnished to the borrower and attached to the
Agreement as Annexure B, which constitutes the Quotation required to be furnished by
Investec in terms of the Act, if the Act applies;

1. To prepare a summary of loan applications

2. To Write an Effective Loan Submission Summary

 Include information about your borrower. ...

 Provide details about the property. ...
 Let your lender know what your borrower plans to accomplish with this loan. ...
 Remember, presentation is important.

How to Write an Effective Loan Submission Summary

There is not a single small business lender who does not appreciate a clear, concise
loan summary when evaluating a commercial loan scenario. When you submit your
borrower’s deal, it’s important that you draft a summary of the deal, including information
about your borrower and the loan. Here’s how to write a loan submission summary that will
impress a lender and help your borrower:

Include information about your borrower

Your lender will need to know if they’re dealing with an individual borrower, multiple
borrowers or a business entity. Be sure to include all relevant information, such as your
borrower’s credit score and any financial issues they have encountered in the past.

Provide details about the property

Commercial lenders are always interested in the collateral being pledged. Include
information such as the where the property is located, the size of the building, what type of
property it is and its estimated value in your summary of the deal.

Let your lender know what your borrower plans to accomplish with this loan

Any commercial lender will be interested in how your borrower plans to use the funds.
Be sure to explain why your borrower wants this mortgage and what they will be doing with
the money.

Remember, presentation is important

When you’re working on the loan submission summary, make sure that it is
professional. Type it up and make sure that the information is presented clearly and concisely.
Keep an eye out for spelling mistakes and make sure your numbers are accurate, as mistakes
can lead to confusion.

Providing an effective loan submission summary might mean the difference between
a quick approval and your deal languishing in the pre-approval stage. It’s important to include
all of the information a lender will need to evaluate a deal and to present it in a professional,

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easy-to-read format. A well-done loan summary helps the lender to make a decision
regarding your borrower’s approval more quickly and helps your borrower to get the
commercial mortgage they need.

Learning outcome 6: Recommend qualified loan applicants and/or insurance claimant

What are the characteristics of successful loan applicants?

Obviously, the most qualified loan applicants all do a great job of the above on their small
business loan applications.
...
But beyond those quantitative factors, here's what you'll find the best candidates have
in common:

 They're responsible.
 They're precise.
 They're prepared.
 They plan ahead.
 They're attentive.

How to Know If You Are a Good Candidate for a Mortgage Loan

A mortgage is a type of loan that's used to finance property. A mortgage is a type of

loan, but not all loans are mortgages. Mortgages are “secured” loans. With a secured loan,
the borrower promises collateral to the lender in the event that they stop making payments.

For a first-time buyer, the thought of applying for a mortgage loan can be daunting.

Will you qualify? What sort of rate will you get? What type of mortgage should you
apply for? Are you even a good candidate in the first place?

The questions are endless.

But the truth is there are no perfect mortgage borrowers. In general, a lender just wants
to see that you’re a safe bet—that you’ll pay your bill on time, that you’ll care for the home,
and that you’ll make responsible financial decisions while you’re a homeowner.

Not sure how to qualify for a mortgage loan? Worried you won’t? Here’s what a
mortgage lender generally looks at:

Your debt-to-income ratio.

A lender wants to know your monthly income, as well as how many debts you’re
currently covering with that income. Do you have car loans? Student debt? Credit card
balances? Most lenders want to see a debt-to-income ratio of 43 percent or less, meaning 43
percent of your income goes toward debts. There are some loan programs that may allow
higher DTI ratios, though, so check with your lender to be sure.

Your payment history.

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Mortgage lenders will also pull your credit report, looking at your open accounts, your
debts, and how often you pay those. If you’ve got lots of high balances and overdue accounts,
that may send up a red flag that you’ll do the same with your mortgage. If you regularly pay
your bills on time and have no creditors calling, you’ll be a much safer bet for a mortgage.

Your credit score.

Your lender will also look at your credit score. An 850 is the highest score you can
have, but very few consumers have that. Generally, you’ll need to have at least a 580 to
qualify for an FHA loan, though some loan programs may allow for lower scores. Be prepared
to come to the table with a decent down payment, though.

Your employment history.

Finally, a mortgage lender wants to know that your income is steady and reliable—
and that you’ll be able to use it toward your mortgage payments for the long haul. They’ll
verify your employment with your boss, and they may want to see past tax returns to double-
check you have a steady stream of income.

If you’re worried about qualifying for a mortgage loan, take time to work on your credit
and pay down your existing debts. Use our mortgage calculator to see how much home you
can afford—before you start shopping.

Learning outcome 7: Inform clients about loan application and/or insurance status

How do you explain the loan process to a new client?

Steps in the Lending Process Policy means action or procedure conforming to or

considered concerning prudence or expediency.

Bank lending policy refers to the policy and guidelines adopted by a bank to make the
lending process systematic and methodical.

Banks deal with other people’s money, and they lend the money they borrow from the
depositors.

Unless these deposits are prudently utilized, banks are destined to incur losses. Banks
cannot keep the deposits idle in the vaults or lend the deposits and not recollect.

Hence, a proper lending policy must be in place.

6 steps in the lending process are;

1. Finding prospective loan customers,

2. Evaluating a prospective customer’s character and sincerity of purpose,
3. Making site visits and evaluating a prospective customer’s credit record,
4. Evaluating a prospective customer’s financial condition,
5. Assessing possible loan collateral and signing the loan agreement,
6. Monitoring compliance with the loan agreement and other customer service needs.

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These are explained below;

1. Finding prospective loan customers

Most loans to individuals arise from a direct request from a customer who approaches
a member of the lender’s staff and asks to fill out a loan application.

On the other hand,

Business loan requests often arise from contacts the loan officers and sales
representatives make as they solicit new accounts from firms operating in the lender’s market
area.

2. Evaluating a prospective customer’s character and sincerity of purpose

Once a customer decides to request a loan, an interview with a loan officer usually
follows, allowing them to explain their credit needs.

That interview is significant because it allows the loan officer to assess the customer’s
character and sincerity of purpose.

If the customer lacks sincerity in acknowledging the need to adhere to the terms of a
loan, this must be recorded as a strong factor weighing against approval to the loan request.

3. Making site visits and evaluating a prospective customer’s credit record

IT a business or mortgage loan is applied for. A loan officer often makes a site visit to
assess the customer’s location and property condition and ask clarifying questions.

The loan officer” may contact other creditors who have previously loaned money to
this customer to see their experience.

Did the customer fully adhere to previous loan agreements and, where required, keep
satisfactory deposit balances?

A previous payment record often reveals much about the customer’s character, the
sincerity of purpose, and a sense of responsibility in using credit extended by a lending
institution.

4. Evaluating a prospective customer’s financial condition

If all is favorable to this point, the customer is asked to submit several crucial
documents the lender needs to fully evaluate the loan request, including complete financial
statements and, in the case of a corporation, board of directors’ resolutions authorizing the
negotiation of a loan with the lender.

Once all documents are on file, the lender’s credit analysis division conducts a
thorough financial analysis of the applicant to determine whether the customer has sufficient
cash flow and backup assets to repay the loan.

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The credit analysis division then prepares a summary and recommendation, which
goes to the appropriate loan committee for approval.

On large loans, members of the credit analysis division may give an oral presentation,
and discussion will ensue between staff analysts and the loan committee over a loan
request’s strong and weak points.

5. Assessing possible loan collateral and signing the loan agreement

Suppose the loan committee approves the customer’s request. In that case, the loan
officer or the credit committee will usually check on the property or other assets to be pledged
as collateral to ensure that the lending institution has immediate access to the collateral or
can acquire title to the property involved if the loan agreement has defaulted.

Once the loan officer and the loan committee are satisfied that both the loan and the
proposed collateral are sound, the note and other documents that make up a loan agreement
are prepared and signed by all parties to the agreement.

6. Monitoring compliance with the loan agreement and other customer service needs

The new agreement must be monitored continuously to ensure that the terms of the
loan are being followed and that all required principal and interest payments are being made
as promised. For larger commercial credits, the loan officer will periodically visit the
customer’s business to check on the firm’s progress and see other services the customer
may need.

Usually, a loan officer or other staff members enter information about a new loan
customer in a computer file known as a customer profile.

This file shows what services the customer is currently using and contains other
information required by management to monitor a customer’s progress and financial service
needs.

ACTIVITY

Modified true or false No. 1. Write True if the statement is true; Write false if the
statement is incorrect, (2 points each)
_______________1. The loan officer” may contact other creditors who have previously
loaned money to this customer to see their experience.
_______________2. Once all documents are on file, the lender’s credit analysis division
conducts a thorough financial analysis of the applicant to determine whether the customer
has sufficient cash flow and backup assets to repay the loan.

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_______________3. Business loan requests often arise from contacts the loan officers and
sales representatives make as they solicit new accounts from firms operating in the lender’s
market area.
_______________4. Your lender will also look at your credit score
_______________6. A mortgage is a type of loan that's used to finance property.
_______________7. Commercial lenders are always interested in the collateral being
pledged.
_______________8. There is not a single small business lender who does not appreciate a
clear, concise loan summary when evaluating a commercial loan scenario.
_______________9. Lenders will want to see that you have a solid cash flow to repay your
loan, and the assets to fall back on if you experience setbacks.
_______________10. Probably the most important step is to verify all the income, assets,
and employment information of the borrower.

PRE-FINAL EXAMINATION

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WEEK 14 & 15
UNIT COMPETENCY 6: COLLECT DUES

IMPROVING COLLECTIONS FOR MICROFINANCE INSTITUTIONS

Lesson Objectives: At the end of this lesson, the students should be able to:
1. Learn to consolidate total collection
2. Deal with delinquent members
3. Submit incident report

By Geetika Shukla, Lizann Fernandez & Dharmesh Ba

India’s history of financial inclusion is intricately linked to microfinance. MFI’s

(Microfinance Institutions) play a prominent role in enabling inclusive growth to low and
middle-income groups without access to formal finance by providing microcredit. Bandhan,
Janalakshmi, and Ujjivan — all banks today — have a rich history in building profitable
microfinance companies in India.

Microcredit:

Microfinance is one of the most powerful tools in alleviating poverty by providing

sachet-sized financial products. Micro Credit has been defined as the provision of thrift, credit
and other financial services and products of a very small amount to the poor in rural, semi-
urban and urban areas for enabling them to raise their income levels and improve their living
standards. MFIs in India operate under the NBFC-MFI license of RBI.

Micro Savings and Micro Insurance are the other financial products provided by the
MFI to the Low and middle income (LMI) segment.

Collections:

Micro Finance Institutions typically offer group loans and individual loans that have
standardized repayment structure. The repayment cycle could be weekly, monthly or
fortnightly depending on the scheme and institutions. An efficient collection process enables
MFIs receivables into liquid assets as quickly as possible and also maintains goodwill with
the borrowers. In a typical collection process either an MFI agent visits the borrower to collect
the repayment in cash or the borrower walks to a physical branch to make the payments.

Pandemic challenges

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The current outbreak of the COVID-19 pandemic prevents both the borrower and the
MFIs agents to meet to enable the repayment in cash. Based on the RBI’s moratorium
announcement, most borrowers assume that their repayment instalments are waived-off or
the payment could be deferred without incurring interest rates. The lack of a complete
understanding of the RBI’s moratorium for the borrowers puts additional pressure on the
timely repayment of the borrower. The delay in repayments by the borrower affects the cash
flow liquidity of the MFIs and impacts their repayment performance.
Digital penetration

We believe educating borrowers about timely repayments and enabling them to repay
digitally is the way to solve collections for MFIs. India’s deep smartphone and mobile internet
penetration indicate the access of digital apps in every household or a neighborhood
household.

The loan repayment could be viewed as a form of any utility bill payment (like
electricity, mobile recharge, etc.), most of which have already moved digital through India’s
interoperable bill payment network called BBPS (Bharat Bill Payment System). BBPS along
with the UPI provides a way to collect money through 3.5 million+ touchpoints from any
individual against a bill (in this case the ‘bill’ being a loan repayment)

Loan collections through BBPS

Bharat Bill Payments System (BBPS) is an integrated online platform developed by

the National Payments Corporation of India for all kinds of bill payments. The scheme, run
by NPCI with a mandate from RBI has built an interoperable service through a network of
400+ agents, enabling multiple payment modes along with the instant generation of receipts
of payments. It would connect the utility service companies on one end and all payments
service providers on the other. For example, all the utility bill payment services that one sees
in digital ‘agents’ like Google Pay, PhonePe, and Amazon Pay are a part of BBPS.

Listing your business on BBPS increases the potential for consented loan collections
in a completely contactless and digital manner.

A BBPS biller has the potential to collect loan payments from more than 3 million
touchpoints both online and offline. This also includes famous UPI apps like PhonePe,
GooglePay, etc.

There are 4 ways of loan collections through the list on BBPS that would help the
micro-finance institutions increase their loan collections.

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1. UPI apps (Google Pay, PhonePe)
2. AEPS (through Kirana stores)
3. UPI QR at branches
4. Mobile banking apps

UPI apps:

Loan repayments could be facilitated from one of UPI payment apps like PhonePe and
Google Pay, where the customer pays the outstanding loan amount by surfacing their
customer identification number.

This would be a self-serve model where the borrower would need to be educated with
contextual knowledge material through WhatsApp, IVR, SMS to help them make the
transaction.

Sample flow of loan repayment on a UPI payment app. This is a clickable prototype of
the user experience

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AEPS and cash — Through Kirana Stores:
 The local Kirana stores powered Aadhaar Enabled Payment Services (AEPS) can help
borrowers facilitate bill payments.
 These bill payments are facilitated through BBPS too, with the exception that the
authentication happens through AEPS.

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UPI QR at branches:

 In situations where the borrower prefers to walk into the branch to do a payment,
having a dynamically generate UPI QR code for their payment would help them to pay
the lender by avoiding contact through cash payments.
 This payment method is especially helpful at the branch when the borrower negotiates
on repayment amount or late fees with the agent and then decides to pay.

Mobile banking apps:

 Finally, these loan repayments could be made through the net banking portal or mobile
apps of their corresponding banks through NEFT, IMPS etc.

MFI’s with SHG model

Self-Help Groups (SHGs) are informal associations of 5–20 women who come from a
similar social and economic background. Members of the group meet at regular intervals to
save a small sum of money to improve their living conditions. The collected pool of money is
lent on a need basis. The primary goal of an SHG is to provide access to formal finance to
economically backwards households by linking them to the bank or Microfinance Institution
(MFIs).

SHG collection during COVID:

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 SHGs typically collect the repayments from the members during the weekly meetings
in cash to the SHG office bearers. The cash is later deposited at an MFI branch or is
collected at the doorstep by the MFI agent.
 The current outbreak of the COVID-19 pandemic prevents these SHG members from
conducting meetings at regular intervals, and also the office bearers and the MFI
agents to meet to enable the repayment in cash.
 To solve this problem digitally, the microfinance institutions can go live on BBPS as a
lender and the SHG members can be nudged by SHG office bearers to make the
payment through various payment apps.
 To help the members through the payment process the SHG leaders shall send them
how-to guides/video tutorials over Whatsapp about repaying loans on payment apps.
 The MFIs shall send the communication to the group members through the SHG
leader to maintain the hierarchy of the group. Since SHGs are not regulated bodies,
bringing them on BBPS will not be possible.

Following up on the payments:

 The list of SHG members paid shall be sent to the group leader every day so that
unpaid group members shall be followed up for the repayment. This enables the
relationship between the group members, leader and the MFI intact.

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Financial literacy on repayments:

The misunderstanding of the RBI moratorium facility nudges people to differ the loan
payments without understanding the consequences of it. It is upon the MFIs and other lenders
to educate the borrower through various channels about the disadvantages of deferring
payments and nudge them to do timely payments in the best possible situation.

This information should also be coupled with easy to understand DIY payment guides
on how to make loan payments on UPI apps. Whatsapp, SMS, IVR are the three commonly
used communication channels used predominantly by most households.

How to list yourself as a biller on BBPS?

If you a lender or microfinance looking to get yourself listed on to BBPS network,

Setu.co (Parent org of D91 Labs) can help you with it. Setu.co offers the easiest way to get
on to BBPS through its product BBPS Collect. Do drop a mail to [email protected] if you would
like to know more about it.

Learning outcome 1: Receive collection reports

Strategies and Techniques to Improve Accounts Receivable Collection Processes

The due date comes…the due date goes and a new reality sets in: Will your customer
pay? How will you know when a good customer suddenly begins to struggle? Most likely, you
won’t. But the threat is real, and solving this challenge is key.

Late payment and payment default situations like these occur with alarming frequency.
That makes it critical for the financial health of your company to minimize them. So how can
you mitigate this risk and improve accounts receivable collections?

Below is a matrix for overhauling your organization’s strategic AR collection

procedures based on three tiers of strategy: Foundational, Defensive, and Offensive. Want a
hint? Focus on the offensive.

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Foundational Defensive Offensive
Systems & Contracts Processes & Documentation Insurance & Intelligence

What is the Importance of Accounts Receivable Management?

Effective accounts receivable management ensures that money owed by customers

for goods delivered or services provided is paid to the company in a timely manner. Effective
accounts receivable management enhances company cash flow by preventing nonpayment
or late payment.

Foundational Accounts Receivable Collection Methods and Procedures

The foundational accounts receivable strategy tier focuses on establishing clear

contracts with your clients and implementing workable systems to manage those contracts.
Your contracts or written agreements should specify your terms of payment, cash-up-front or
retainer stipulations, or any early payment discounts you offer to motivate clients to pay ahead
of their invoice deadlines. Contracts should also stipulate parameters about starting work
only after contracts or agreements are signed.

Stay organized and know where every contract is in the agreement process and the
status of every invoice. Contact management systems and accounts receivable management
systems can help you process, review and access documents faster, and more easily track
and report on status.

Create a Process for Sending Invoices and Payment Reminders

Setting up and maintaining systems and standards is essential for mitigating your A/R
risk. Make sure that invoices are sent out regularly by adhering to a repeatable process. Call
customers before invoice due dates and take steps to address non-payment the minute that
a receivable becomes overdue. Sending notices of late invoices will help to highlight the
issue, and the practice provides a valuable paper trail so that you are prepared if you need
to escalate the matter later. Include this documentation in the onboarding of new back-office
staff.

Once an invoice is 14 days past due, it’s time to reach out via an accounts receivable
collections email. Make sure your email is respectful, concise and specifically explains that
you are writing about a past-due invoice. In bullet points, summarize the details of the past-
due invoice, including invoice tracking number, the principal amount, any interest or fees and
a description of what the original balance is for — including dates and locations. Then, thank
the recipient for swift payment or a call to discuss terms. Reference our accounts receivable
collections letter template to help make this process easier.

Revisit and Improve Your Accounts Receivable Processes

Institute new policies to protect your business, and set a calendar reminder now to
revisit your accounts receivable process again a year from now. Many companies use down
payments, cash-up-front terms, retainers, or milestone payments to minimize the amount
they could lose.

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Another option could be to keep an alternative form of payment on file such as a credit
card, and include in your agreement a remedy to charge the account in the case of a missed
invoice.

Secure the signatures.

Establishing a requirement that an agreement or contract is signed before products or

services are provided is a key component to an effective A/R process. Remember that the
terms in your contract may impact your competitive edge: if your competitors offer open terms
and you require cash terms, you may lose business.
Establish a digital filing system for signed agreements to insulate your company from some
(or all) receivables risk. Ensure that all contract documents are easily accessible and set your
system up to receive e-signature documents as well as scans. Don’t let things live only in
email.

“ ...if your competitors offer open terms and you require cash terms, you may lose
business. “

The foundational strategy should be used as a portion of your overall A/R collection
procedure. By itself, it will help show you what accounts may be overdue, and it can organize
your contracts or agreements once a client is onboarded. But it alone will not help in
managing your accounts receivables for better cash flow.
Defensive Accounts Receivable Collection Methods and Procedures

The defensive strategy tier focuses on establishing terms that your clients would be
responsible for should you need to move to debt collection for a past-due account. In addition,
to maintain and fine-tune your A/R collection process for enhanced performance, you need
to establish a protocol to communicate your credit management process with your staff and
a process for continued improvement in accounts receivable collection strategy.

Create a sufficient paper trail.

Work with an attorney to draft documentation that will support your actions and specify
your customer’s agreement to cover all costs related to debt collection. This should include
things like:

 Contracts
 Payment timelines
 Third-party collection expenses
 Late fees and consequences
 Legal fees
 Your company’s standard terms and conditions

This will ensure everyone is on the same legal page. You should also agree on a uniform
naming convention for documentation. In order to collect on a receivable, you will need to
generate documentation supporting your claim.

As part of your standardized process going forward, create a contract that specifies the
work or products you provide as well as the payment schedule to which your customer has
agreed, and require customers to agree to these terms when applying for credit terms with

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your company. These systems and processes should be documented and communicated to
your entire organization.

Become an over-sharer.

Communicate your credit management process to other departments within your

company; set clear limits on required actions and make people accountable. Make sure you
are including customer-facing account staff as well.

Keep improving your accounts receivable collection strategies.

Set ambitious goals and actions for your A/R process, and periodically measure your
performance to apply changes whenever and wherever necessary. This should include
having your business development people in your post mortems on bankruptcy and non-
payment situations so they can be learning what to look for when it comes to customer risk
at the prospecting stage. Preventing non-payment is not a one-off project. It’s a process you
must keep working at all year.

The defensive strategy is also a portion of your overall A/R collection procedure. It’s
not designed to enhance A/R collection without the foundational and offensive strategy tiers
in place.

Create an Accounts Receivable Aging Report

One of the best ways to improve control over your accounts receivable is to create an
accounts receivable aging report. This report provides a clear view of unpaid invoice balances
and the length of time they are outstanding.

Typically, the accounts receivable aging report lists all clients and their outstanding
invoice amounts, and sorts them by age, from current status to 1-30 days past due, 31-60
days past due, 61-90 days past due, 91-120 days past due and 120+ days past due.

Another important accounts receivable strategy is to calculate your receivables turnover

ratio. This ratio shows how well you manage the credit you extend to your clients and how
efficient you are at collecting payment. The higher the ratio, the better. To calculate your
receivables turnover ratio for a six-month period:

 Step 1: Add the accounts receivable total at the beginning of the six months and at the
end of the six months.
 Step 2: Divide that number by two to get your average accounts receivable total.
 Step 3: Divide your total sales for the six months by the average.

For example, if your company had $10,000 in receivables at the beginning of six months
and $15,000 at the end of six months, and total sales for the six months of $90,000, the
receivable turnover ratio would be 7.2.. This means that receivables were collected about
every 25 days (half a year divided by 7.2). The formula looks like this:
$90,000 ÷ (($10,000 + $15,000) ÷ 2) = 7.2

Offer Early Payment Incentives to Accelerate the Collection of Receivables

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Incentives are another effective accounts receivable action plan to help maintain positive
cash flow and avert late payments. To accelerate collection of receivables, you can offer a
percentage discount to customers to entice them to pay the invoice on or before the due date.

Similarly, you can incentivize positive behavior (paying on time) by making sure your
contracts stipulate that a late fee will be due if invoices are paid past the deadline. Another
way to improve accounts receivable collections is to include language on your invoice that
paying on time avoids a late fee penalty.

Incorporate Payment Plans

Cash flow problems can happen to any business. If a client informs you that they are
having difficulty paying a bulk invoice, offering a payment plan is a positive accounts
receivable strategy because it can help conserve the client relationship as well as ensure you
get paid in-full.

If you offer a client a payment plan, make sure it is in writing and is signed by you and
your client. It should detail the specific number of payments, amount of each payment and
the payment schedule. In addition, with a payment plan in place for past-due money owed, it
is wise to make all other sales to that client cash on delivery until the payment plan is
completed and past-due monies are paid.

Offensive Accounts Receivable Collection Methods and Procedures

Offensive accounts receivable collection procedures take a proactive stance,

leveraging measures to insulate your organization from loss. Consistent data collection and
monitoring of financial health, as well as taking out a credit insurance policy can work in
tandem to help you evaluate customers and prospects who may pose a risk of nonpayment.

While a foundational accounts receivable strategy specifies the terms of contracts with
customers and establishes rules for payments or discounts, a defensive strategy sets terms
for clients who violate those terms, resulting in past-due accounts that need to be collected.
While both a foundational and defensive strategy focus on the customer after they’ve become
a customer, an offensive strategy serves as a layer of protection in evaluating risks before
they happen.

Investing in Trade Credit Insurance

As an added layer of protection, consider purchasing trade credit, or accounts

receivable, insurance to protect your assets from loss, and mitigate future risk. Credit
insurance specifically protects you against a loss to your largest and most vulnerable asset—
your A/R.

A credit insurance policy with a leading carrier like Euler Hermes is more like a
partnership with a worldwide network of risk management experts. The carrier provides data
and insights to help you pick the right customers to begin with, monitors their financial health
throughout the year, and reimburses you in the event a covered customer fails to pay. The
investment in a credit insurance policy can often pay for itself multiple times over—even if a
claim is never filed, simply by fueling safe, but aggressive, sales in the future.

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“A credit insurance policy with a leading carrier is more like a partnership with
a worldwide network of risk management experts. “

Don’t go it alone.

Partner with experts to get data and insights to help you pick the right customers to
work with. Monitor their financial health throughout the year, and get reimbursed in the event
a covered customer fails to pay.
Pursue forward-facing research.

Check and monitor the creditworthiness of your prospective and existing customers,
and implement a defined system for monitoring changes in financial wealth—particularly
signs of financial distress. This process should be informed of the relative A/R risk of
customers, with frequent checks for newer, smaller and less-stable companies. Have all your
internal stakeholders take advantage of this intelligence.
If your company has not already formally done so, officially document your credit policies and
procedures to define how creditworthiness is determined and monitored. This document
should specify data sources including (but not limited to):

 Bank and trade references

 Credit report
 Individual company financial statements
 Ongoing monitoring of political risk and macroeconomic risk

“Even if you’re on the right track, you’ll get run over if you just sit there.” -Will Rogers
Prudent credit management is a tough and never-ending job. You may want to consider
augmenting your internal staff by partnering with capable experts to ensure efficiency and
thoroughness. With success, you can accelerate the collection of receivables and help
optimize the working capital your organization has to work with. This creates funds with which
your company can invest in the future and proves the value of effective credit management
to the entire organization.

In the case of Euler Hermes, our team of more than 1,700 sector-specific credit
analysts constantly monitor and grade companies' financial health and credit risks with on a
Grading Scale of 1 through 10 (10 being the riskiest). This is based on our database
spanning 200+ countries and over 85 million businesses. Trade credit insurance policy
holders are able to leverage this ranking to evaluate credit decisions quickly, and then use
our policy management platform to increase coverage on an existing buyer or request
coverage for a new buyer.

Automate Your Accounts Receivable

Efficiency is essential to an effective accounts receivable management process.

Among some of the best accounts receivable process improvement ideas is automation. By
automating accounts receivable management, you can help standardize your process and
deliver the most accurate data, while reducing the costs associated with payment processing.
Data also show that automating your accounts receivable workflow often translates to faster
client payment.

Proactive Debt Collection Strategies Are Where Winners Are Made

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Offensive accounts receivable collections processes is where Euler Hermes comes in.
With Trade Credit Insurance, you get multiple benefits that enhance your A/R process. You
are protected against non-payment, which ensures a stronger fiscal position for your
company. You also have access to r esearch, data, and insights so that you can make even
smarter decisions about which clients you extend credit to, which you don’t, and how to know
the difference. That’s intelligence. That’s Euler Hermes .

Business is about reinvention. It’s about evolution. It’s about outsmarting the
competition and making the right move at the right time.

Learning outcome 2: Receive payment

4 Ways to Accept Online Payments

1. Online payment service provider. If you run a service-based business or sell products
online, an online payment service provider might be the most common way you get
paid by customers or clients.
2. ACH transfer.
3. Mobile payments.
4. Invoicing and billing.

1. Payment method is best for online business.

There are many methods of online payment. The most popular methods you should
consider accepting are Apple pay, Google pay, Paypal, and Amazon Payment. While popular
methods are good, many others use the same technology, making them worth investigating
as well.

2. ACH transfer is a payment made over the ACH (Automated Clearing House) network
between bank accounts. ACH transfer is commonly used by consumers for things like direct
deposit or auto bill pay, and by businesses for online, MOTO (mail order, telephone order),
business-to-business (B2B), and direct debit transactions.

3. A mobile payment is a money payment made for a product or service through a portable
electronic device such as a tablet or cell phone. Mobile payment technology can also be used
to send money to friends or family members, such as with the applications PayPal and
Venmo.

4. Bill vs Invoice: Key Takeaways

Essentially, bills and invoices are both documents that request payment and provide
details on purchase sales. Invoicing, however, is used for merchandise sold on credit,
whereas billing is done immediately and on up-front purchases.

Learning outcome 3: Sign repayment schedule

Loan repayment schedule.

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Simply put, the act of repaying the loan through a series of scheduled payments
generally referred to as EMIs that includes both the principal amount outstanding and the
interest component is known as the Repayment Schedule. It is also called an Amortization
Table.

What is Loan Repayment

While availing of any type of credit, whether it is a personal loan, secured or unsecured
loan, the borrower needs to repay the amount to the lender in full. However, there is a
structure and process to repay the outstanding loan amount, which every borrower needs to
follow. Failing to follow or adhere to the process, you need to pay additional fees as a penalty.

What is Loan Repayment and How does it Work?

The loan repayment is a process to repay the loan taken back to the lender within the
specified period of time, as per the terms mentioned in the loan agreement. The repayments
are made n the form of EMI (Equated Monthly Installment) that includes both principal and
interest components, pad over a predefined number of months known as loan tenure. The
EMI may also comprise of other small components such as insurance and service charges,
as per the agree upon terms and conditions.

In loan, the interest components is the most crucial part, which you need to pay timely
and the amount is calculated on the outstanding loan amount.

For example, until you start the repayment of the principal loan amount, you need to
pay the interest amount on the borrowed amount.

Simply put, the act of repaying the loan through a series of scheduled payments
generally referred to as EMIs that includes both the principal amount outstanding and the
interest component is known as the Repayment Schedule. It is also called an Amortization
Table.

What is an Amortization Table?

The repayment schedule of the loan is outlined in the Amortization Table that is shared
by the lender with the borrower. This table is typically determined by a Loan Amortization
Calculator. The borrower is able to check how much of the monthly EMI is being allocated
towards the repayment or the principal outstanding and interest respectively, depending on
the rate or interest and tenure of the loan.

Generally, you will notice the following information in your Repayment Schedule:

1. Loan Information: When you use the loan amortization calculator, you will be able to enter
information like the total loan amount, tenure of the loan and the rate of interest. The
amortization calculations are based on these factors.

2. Payment Frequency: The first column of your Repayment Schedule lists the frequency at
which you will have to make payments to your lender. Generally, the most common format is
a monthly payment cycle.

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3. Total Payment: The total monthly EMI that is payable by the borrower is calculated under
this column. You may also use a personal loan calculator to arrive at this figure.

4. Extra Payment: If the borrower has access to more funds and decides to make an excess
payment towards the loan account that is more than the allocated EMI figure, the loan
amortization calculator automatically applies the additional amount paid towards the principal
loan. All future interest payments on the loan will be recalculated and the updated balance
will be listed under this section in the Repayment Schedule. Please note that this is not
applicable for personal loans.

5. Principal Repayment: The amount that is allocated towards paying off the principal loan
amount on a monthly basis is displayed under the Principal Repayment column in the
Repayment Schedule. Generally, you will find the figure increasing over the tenure of the
loan.

6. Interest Costs: The interest payment being made on a monthly basis is tracked under this
column of the amortization table. You will observe that the interest payments per month will
decrease over the life of an amortized loan.

7. Outstanding Balance: Your outstanding balance on the loan post making a scheduled
payment is calculated under this column. This can be done by subtracting the principal
component paid in each period from the current outstanding loan balance.

Why is Loan Repayment Schedule Important?

The Loan Repayment Schedule is an important document for the borrower because:

1. It helps borrowers understand their loan repayment by breaking down the balance into
equal monthly repayments or EMIs.

2. The borrower can keep track of the money that is being paid towards the interest and
principal components respectively.

3. It also updates the outstanding balance on the loan post making each individual monthly
payment.

4. The Repayment Schedule also helps borrowers to calculate the total interest payable on
the loan if any additional payment that is more than the EMI amount has been paid towards
the loan account.

5. This is especially useful for mortgage loans where a part payment is often accepted.

6.Lastly, the amortization table aids in the calculation of the total interest paid annually which
is useful for claiming income tax benefits on specific loan products such as home loans.

Fullerton India offers a range of financial products including business, mortgage and
personal loans.

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How to Apply for a Personal Loan?

With minimal paperwork, you can easily apply for a personal loan online. Start
by checking your eligibility.

1. Personal Loan Eligibility: You can check your eligibility by checking the various criteria
and also use the personal loan eligibility calculator to estimate the maximum loan amount
you may be eligible for.

2. Online Documentation: Upload soft copies of all the required documents along with filling
up the online loan application form.

3. The Loan Application Process: Follow the steps as given below to make your loan
application on Fullerton India:

 Click on the “Apply Now” button on this page

 Select “Personal Loan” and enter your mobile number for OPT verification.
 Fill in all relevant personal, employment and financial related information
 Choose the required loan amount, desired interest rate and convenient repayment
tenure
 Upload soft copies of your documents
 Click on ‘Apply Now’

Based on the information provided, instant decisions will allow you to know whether your
application will be taken forward for processing. After receiving your confirmation or the same,
your loan will get approved and the amount will be disbursed into your bank account within a
few hours.

Learning outcome 4: Record collection on group treasurer’s register

To keep Treasury record

Record-keeping for treasurers

1. Correspondence.

Correspondence records are those documents used to keep track of

correspondences in an organization. They show evidence of important transactions,
letters, reasons for writing and those involved, dates, addresses, e-mails and other
important messages.

TYPES OF CORRESPONDENCE

There are three main types of correspondence, they are:

1. In-coming mails
2. Out-going mails
3. Postage book.

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1. In-Coming Mails: These are letters that comes into an organization. In-coming
correspondence will reach the records offices in a number of different ways. Some will come
through the regular post office or other courier services, like, DHL,UPS etc.

Other in-coming mails could come via e-mail, or with the growth in technology, through
text messaging: - Short Message Service (SMS) or Multimedia Messaging Services (MMS).

 Letters
 Parcels
 Computer printouts e.g. e-mail or other data
 Telegrams
 Internal memos Examples of In-Coming Mails are:
 Text messages

METHODS OF MAIL DELIVERY

Mails or letters can be delivered either by post or by hand to the recipients in two ways:

a. Delivery by Post: People pay for a private mail box or bag in the post office where their
mails are deposited safely and locked till the owner comes (to the post office) with the keys
to pick up mails. The post man also delivers received mails to the appropriate addresses with
authority from the post office management.

b. Delivery by Hand: The mails that can be delivered by hand include letters, circulars,
memos, handbills, notices of different sizes etc. The mails must be handled with care, so that
the recipient will receive it without complaint and in time too.

All mails are sorted out first in the mail room before being distributed to the appropriate
persons or organization(S).

2. Out-Going Mails: These are mails that are going out of or from the organization. The
secretary or clerk in the office handles such mails with care and treats them with the urgency
required.

In smaller organizations, the receptionist can also see to it that such mails are handled
appropriately and accountability and reference.

Examples of out-going mails are letters, parcels, computer printouts like e-mail, SMS,
memos, telegrams, and other related mails.

3. Postage Book: This is a book which records accurate and full details of mails and other
documents that need postage. The book contains the exact amounts of postage stamps used
on the mails, date and address.

USES OF CORRESPONDENCE RECORDS

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They are used:

1. For evidence of receiving and attending to mails.

2. To shoe the correct date a mail was received.
3. To record information about the content(s) of mails.
4. To show how the issue in context was handled by the organization. Tells whether an
answer has been given or not.
5. To show exactly what agreement was made and the date of the decision.
6. It confirms delivery of mails.
7. It shows the origin of the mail and who or unit it was addressed to.

CLASSIFICATION OF CORRESPONDENCE RECORDS

1. Inward Book or Inward Register

2. Outward Book or Outward Register
3. Dispatch Book

2. Bank statements.

What Is a Bank Statement?

Your bank statement details all of the transactions made with your account in a
month. By looking at your bank statement, you can see all of the money that has come into
your account and out of your account in one place. For each transaction, dates and other
parties are shown as well. That way, you can see whom you paid (or who paid you) and the
date the transaction actually cleared the bank. With this information, you can manage your
savings and make better financial choices.

A typical bank statement includes the following information:

 Personal identifying information, such as your bank account number, name, and
address

 The period of time covered by your bank statement, usually encompassing a month.
However, statements don’t always start at the beginning of the month. For example,
your statement could run from the 13th of the month to the 12th of the next month.

 Information about the bank, including the customer service number and instructions
for reporting fraud and mistakes

 The balance for both the start and end of the statement period

 All of the deposits into your account, including direct deposits, checks, transfers,
reimbursements, payments, on-us items, and interest earned

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 All the withdrawals from your account, including purchases, transfers, ATM
withdrawals, automatic payments, and bank fees.

How Does a Bank Statement Work?

A bank statement is designed to show you exactly what happened with your account
during the past month, detailing your spending habits and any incurred expenses. Most bank
statements start by grouping all deposits together, giving you an idea of exactly what came
into your account during the preceding month. Next, you’ll see your withdrawal activity
summarized. Your summary will include your account balance at the beginning of the month,
then show your ending account balance after all of the deposits are added and the
withdrawals are made.

3. Outstanding bills.

How to Handle an Outstanding Bill

Small businesses rely on a steady inflow of cash to fund operations. When a large
outstanding bill remains uncollected for a long period of time, production can easily be
disrupted. More complications arise when the outstanding debt is associated with a single,
valued customer. Defining payment terms and collection policies to use as a guide will ensure
that a business handles outstanding customer invoices in an efficient manner.
Identifying Outstanding Bills

Identifying and tracking outstanding bills is the first step to collecting amounts due.
Accounting software makes the task easier with built-in reports illustrating outstanding
invoices by customer and date at any given point in time. Management should review a
weekly or monthly report of outstanding bills, also known as an aged accounts receivable
report. Once a receivable is aged to a predetermined past due date, such as thirty days after
invoicing, a reminder letter should be sent and follow-up procedures implemented.

How to Get Paid on Time for Outstanding Invoices

1. Offer a Variety of Payment Methods

Some clients prefer paying by cash, check, or online payment systems, while others
would rather go for a direct bank deposit. Opening up to as many payment options as possible
gives your clientele more reason to pay you back right on schedule.

It’s always best to think long term: the small fee of integrating credit card payments will
cost way less than having to hire an attorney or taking up your late bills to court in the future.

2. Consider Advance Payment Requests

Worried you won’t get paid on time? Consider requesting a partial advance deposit as a
safety net.

Now, keep in mind to only go for this approach if it’s sensible in terms of the price of the
purchase. In other words, you shouldn’t ask for advance deposits on a $5 bill.

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But if you’re working on a months-long project, for instance, or selling a very pricey
product, requesting an advance partial payment can help reduce the risk of not getting paid back.

For these types of purchases, asking for an advance payment fee is a common business
practice, so don’t worry about your clients getting offended.

3. Provide Early Payment Discounts

To encourage timely payments, offer discounts for customers who pay you back early.

For example, if your usual payment policy is 15 days, reward clients who pay back within
the first week, 2% off the entire invoice amount.

4. Include Late Payment Fees

Again, there is no incentive like money. And at the same time, a late payment fee is only
fair - without it, you’re basically just offering clients free credit.

Make sure to clearly communicate your late payment fees and how they will occur at the
very start of the sale. Include these terms in every contract, invoice, and other written agreement
you write.

State the late fee penalty clearly and in an e asy-to-spot section of the invoice. To learn
more about how to create an invoice and the core elements it includes, head over to our guide
on how to make an invoice.

5. Send a Friendly Reminder Email

With the number of emails in everyone’s inbox nowadays, it’s possible that your invoice
could have gotten lost along the way. Or maybe your customer simply forgot to pay back - we all
get busy and things fall in between the cracks sometimes.

So, stay ahead of the game by sending them a friendly reminder email around a week
before the deadline, to let them know their invoice is due soon.

Make sure the email includes:

 A subject line with the invoice number

 An attachment of the original invoice
 Body message reminding them of the due date

Keep the language of the message friendly and polite, so you don’t risk offending or
losing the client in the process. After all, the invoice is not overdue yet, so it’s best not to express
any irritation, no matter how worried you might be.

End the email by encouraging them to contact you regarding any inconveniences.

Want to learn how to properly email and invoice your clients, and get paid right on schedule? Just
take a quick skim at our guide on how to send an invoice.

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6. Give the Customer a Call

If the client is completely unresponsive to your emails, you can always give them a call
to have a quick chat and figure out what’s going on.

Just like in the reminder email, ask them about any possible issues, and when they plan
on paying you back.

4. Paid bills and receipts.

The Difference between a Bill and a Receipt

A bill and a receipt are used in two entirely different situations. A bill is presented when
money is owed, while a receipt is given when an amount owing has been paid. Put another
way, a bill is a request for payment, while a receipt is the acknowledgment of payment
received.

Generally, bills are used for purchases made on credit, and receipts follow cash
payments for goods or services. For instance, when a customer is paying for groceries, the
clerk will total the items and hand the customer a receipt immediately after he or she receives
the payment. A person who has an account with a telephone company, on the other hand, is
likely to receive a bill about the same time each month with the specific amount owing. If the
previous month's bill hasn't been paid, the amount will usually be added onto the current one,
with perhaps an interest charge if the due date has long passed. This method of a bill and a
receipt is used for consumer as well as business situations.

5. Asset file with instructions and guarantees.

What Is an Asset?

An asset is a resource with economic value that an individual, corporation, or country

owns or controls with the expectation that it will provide a future benefit. Assets are reported
on a company's balance sheet and are bought or created to increase a firm's value or benefit
the firm's operations. An asset can be thought of as something that, in the future, can
generate cash flow, reduce expenses, or improve sales, regardless of whether it's
manufacturing equipment or a patent.

Assets that can be used to guarantee:

 PROPERTY, PLANT, and EQUIPMENT (PPE)

 VEHICLES

Types of Guarantees

Scotiabank offers a range of different cross-border guarantees to help reduce risk at

every step along the way towards the fulfilment of an agreement between an importer and an
exporter.

Bid/Tender Guarantee

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Issued in support of an exporter's bid to supply goods or services and, if successful,
ensures compensation in the event that the contract is not signed.

Performance Guarantee

Issued as an undertaking to pay a certain sum to the buyer if the exporter fails to carry
out the terms of the contract.

Advance Payment Guarantee

Gives protection to the buyer who has made an advance or progress payment to the
exporter before the contract has been completed.

Warranty Guarantee

Provides a financial guarantee to cover the satisfactory quality or performance of

goods or services supplied during a maintenance or warranty period.

Retention Guarantee

Guarantees the refund of released retention monies to the buyer, in the event of non-
performance of the exporter's obligations after the contract completion.

6. Lease file for equipment and rental hire.

What Is a Lease?

A lease is a contract outlining the terms under which one party agrees to rent an
asset—in this case, property—owned by another party. It guarantees the lessee, also known
as the tenant, use of the property and guarantees the lessor (the property owner or landlord)
regular payments for a specified period in exchange. Both the lessee and the lessor face
consequences if they fail to uphold the terms of the contract. A lease is a form of incorporeal
right.

Understanding a Lease

Leases are legal and binding contracts that set forth the terms of rental agreements
in real estate and real and personal property. These contracts stipulate the duties of each
party to effect and maintain the agreement and are enforceable by each. For example, a
residential property lease includes:

 The property address

 Landlord and tenant responsibilities
 The rent amount
 A required security deposit
 Rent due date
 Consequences for breach of contract
 The duration of the lease
 Pet policies
 Other essential information

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7. Insurance.

What is insurance?

Insurance is a financial safety net, helping you and your loved ones recover after
something bad happens — such as a fire, theft, lawsuit or car accident. When you purchase
insurance, you’ll receive an insurance policy, which is a legal contract between you and your
insurance provider. And when you suffer a loss that’s covered by your policy and file a claim,
insurance pays you or a designated recipient, called a beneficiary, based on the terms of
your policy.
The most difficult thing about insurance is that you’re paying for something you hope
you never have to use. Nobody wants something bad to happen to them. But suffering a loss
without insurance can put you in a difficult financial situation.
Choosing an insurance provider

Here are a few things to consider when choosing an insurance company to work with:

 Insurance coverage.
What types of insurance does the company offer? Can you buy all of your insurance through
the company and receive a discount?

 Financial strength.
Would the company be able to pay your claim? Look to U.S. credit rating agency AM Best to
determine the company’s financial strength.

 Agency model.
Would you prefer the help of a local insurance agent? Or would you prefer to manage your
insurance on your own?

 Customer service.
Do others recommend this company? What are people saying about it in online customer
reviews?
There are 8 types of insurance, namely:
1. Life Insurance
2. Motor insurance
3. Health insurance
4. Travel insurance
5. Property insurance
6. Mobile insurance
7. Cycle insurance
8. Bite-size insurance

8. Cash book - record of your cash receipts and payments.

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How a Cash Book Works

A cash book is set up as a subsidiary to the general ledger in which all cash transactions
made during an accounting period are recorded in chronological order. Larger organizations
usually divide the cash book into two parts: the cash disbursement journal, which records all
cash payments, and the cash receipts journal, which records all cash received into the
business.

Learning outcome 5: Record collection on client’s passbook

What is a passbook?

A bank passbook is a physical notebook held by bank account holders. It records on

paper the details of all banking transactions, including elements such as:

 Debits
 Credits
 Loans
 Fixed deposits
 Recurring deposits

While most banks now offer paperless alternatives to the old-fashioned passbook, you
can still find some accounts with a passbook attached. For example, a passbook savings
account comes both with a physical notebook to record transactions, as well as competitive
interest rates.

How does a passbook work?

A bank passbook is simply a physical log of your transactions, but what type of
information should be recorded?

For debit transactions, you’d include all details about payments including payee name,
method of payment, and name of the bank making a transfer. You’d also record all direct
debit and pay order information, as well as details about self-payments to other accounts.

Similarly for credit transactions, you’d use your passbook to keep track of deposit
interest, receipts from third parties, and cash deposits. Any loan-related details would go here
as well including the mode of payment.

Essentially, passbooks hearken back to a pre-internet form of banking when you’d

need to meticulously keep paper-based records in the absence of computers and SMS alerts.
Bank customers would use a cheque book and passbook to balance their accounts.

Learning outcome 6: Record collection on loan officer’s register

What Is a Loan Register?

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A loan register is an internal database of maturity dates on loans belonging to a
servicer. The loan register shows when the loans are due and lists them in chronological
order by maturity date.

How a Loan Register Works?

Loan registers are also known as maturity tickers. They are important tools for in-
house loan officers, who use them to create follow-up leads. Most servicers have dedicated
teams for business retention; they use loan registers to determine which borrowers to target
in mass mailings or phone campaigns.

For servicers, loan registers are essential to generating return business. These
registers allow a company to revisit its existing clients at the exact time that they may be
thinking of taking out a new loan. While most loan registers are automated for larger
corporations, smaller lenders and mortgage broker shops may use a more informal way of
keeping track of their pool of aged loans. White boards, spreadsheets, and simple calendar
systems can help them track when their customers’ loans are coming due.

Learning outcome 7: Consolidate total collection

How to Account for a Consolidation

Consolidation accounting is the process of combining the financial results of

several subsidiary companies into the combined financial results of the parent company.
This method is typically used when a parent entity owns more than 50% of the shares of
another entity. The following steps document the consolidation accounting process flow.

Step 1. Record Intercompany Loans

If the parent company has been consolidating the cash balances of its subsidiaries
into an investment account, record intercompany loans from the subsidiaries to the parent
company. Also record an interest income allocation for the interest earned on
consolidated investments from the parent company down to the subsidiaries.

Step 2. Charge Corporate Overhead

If the parent company allocates its overhead costs to subsidiaries, calculate the
amount of the allocation and charge it to the various subsidiaries.

Step 3. Charge Payables

If the parent company runs a consolidated payables operation, verify that all
accounts payable recorded during the period have been appropriately charged to the
various subsidiaries.

Step 4. Charge Payroll Expenses

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If the parent company has been using a common paymaster system to pay all
employees throughout the company, ensure that the proper allocation of payroll
expenses has been made to all subsidiaries.

Step 5. Complete Adjusting Entries

At the subsidiary and corporate levels, record any adjusting entries needed to
properly record revenue and expense transactions in the correct period.

Step 6. Investigate Asset, Liability, and Equity Account Balances

Verify that the contents of all asset, liability, and equity accounts for both the
subsidiaries and the corporate parent are correct, and adjust as necessary.

Step 7. Review Subsidiary Financial Statements

Print and review the financial statements for each subsidiary, and investigate any
items that appear to be unusual or incorrect. Make adjustments as necessary.

Step 8. Eliminate Intercompany Transactions

If there have been any intercompany transactions, reverse them at the parent
company level to eliminate their effects from the consolidated financial statements.

Step 9. Review Parent Financial Statements

Print and review the financial statements for the parent company, and investigate
any items that appear to be unusual or incorrect. Make adjustments as necessary.

Step 10. Record Income Tax Liability

If the company earned a profit, record an income tax liability. It may be necessary
to do so at the subsidiary level, as well.

Step 11. Close Subsidiary Books

Depending upon the accounting software in use, it may be necessary to access

the financial records of each subsidiary and flag them as closed. This prevents any
additional transactions from being recorded in the accounting period being closed.

Step 12. Close Parent Company Books

Flag the parent company accounting period as closed, so that no additional

transactions can be reported in the accounting period being closed.

Step 13. Issue Financial Statements

If a subsidiary uses a different currency as its operating currency, an additional

consolidation accounting step is to convert its financial statements into the operating
currency of the parent company.

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Given the considerable number of steps, it is useful to convert them into a detailed
procedure, which the accounting department should follow religiously as part of its
closing process. Otherwise, a key step could be missed, which would throw off the
financial statement results.

Some of the tasks noted here can be automated, or at least made simpler, in order
to produce financial statements more quickly. However, to some degree, the higher level
of precision required to produce more accurate financial statements requires additional
consolidation effort, and therefore more time.

Learning outcome 8: Issue cash receipts/official receipt.

What are the different types of receipts?

A receipt is essentially written proof of any kind of transaction. Invoices are the most
common type of receipt. These basically serve to document the demand for a fee or service.
However, there is a wide variety of different types of receipts, each relating to a different kind
of business transaction, both between a company and external agents, and internal daily
business within a company.

That’s why it’s important to distinguish between internal financial

statements and external financial statements.

External financial statements include all receipts obtained from external sources,
such as:

 Purchase invoices
 Bank statements
 Bills of lading and commercial letters
 Expense reports
 Tax assessments
 Commercial receipts

Internal financial statements, on the other hand, are handled internally within a
company. These include:

 Wage and salary rosters

 Material withdrawal slips
 Transcripts of outgoing invoices
 Copies of receipts, commercial letters, cheques, etc
 Proof of cancellations and transfers

Where the document originated from is the deciding factor in what constitutes an
external financial statement and what is an internal financial statement. For example, with
online banking statements, even if the company prints out the statement itself, it is still an
external document, as it was created and provided by an external party. Furthermore, an
invoice sent by mail also counts as an external document, even if it is printed independently.

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In addition to internal and external documents, another important type of receipt is
the corrective invoice, which is used as a replacement document if it’s necessary to reissue
an invoice or receipt. It’s also possible to generate your own supporting documents here.

In order for them to be officially recognized, however, reissued receipts for large
amounts of money should be exceptions and must not occur too frequently in order for them
to be credible. However, it is relatively common to verify small amounts of change using
reissued receipts – for example, tips, postage, parking fees, etc. As reissued receipts are
handled internally within a company, they do not count as an internal document because they
have a special status as a third type of receipt.

Learning outcome 9: Turnover/deposit collection

What Is Turnover/Deposit Turnover?

Turnover is an accounting concept that calculates how quickly a business conducts

its operations. Most often, turnover is used to understand how quickly a company collects
cash from accounts receivable or how fast the company sells its inventory.

In the investment industry, turnover is defined as the percentage of a portfolio that is

sold in a particular month or year. A quick turnover rate generates more commissions for
trades placed by a broker."Overall turnover" is a synonym for a company’s total revenues. It
is commonly used in Europe and Asia.

The Basics of Turnover

Two of the largest assets owned by a business are accounts receivable and
inventory. Both of these accounts require a large cash investment, and it is important to
measure how quickly a business collects cash.

Turnover ratios calculate how quickly a business collects cash from its accounts receivable
and inventory investments. These ratios are used by fundamental analysts and investors to
determine if a company is deemed a good investment.

Accounts Receivable Turnover

Accounts receivable represents the total dollar amount of unpaid customer invoices
at any point in time. Assuming that credit sales are sales not immediately paid in cash,
the accounts receivable turnover formula is credit sales divided by average accounts
receivable. The average accounts receivable is simply the average of the beginning and
ending accounts receivable balances for a particular time period, such as a month or year.

The accounts receivable turnover formula tells you how quickly you are collecting
payments, as compared to your credit sales. If credit sales for the month total $300,000 and
the account receivable balance is $50,000, for example, the turnover rate is six. The goal is
to maximize sales, minimize the receivable balance, and generate a large turnover rate.

Inventory Turnover

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The inventory turnover formula, which is stated as the cost of goods sold (COGS)
divided by average inventory, is similar to the accounts receivable formula. When you sell
inventory, the balance is moved to the cost of sales, which is an expense account. The goal
as a business owner is to maximize the amount of inventory sold while minimizing the
inventory that is kept on hand. As an example, if the cost of sales for the month totals
$400,000 and you carry $100,000 in inventory, the turnover rate is four, which indicates that
a company sells its entire inventory four times every year.

The inventory turnover, also known as sales turnover, helps investors determine the
level of risk they will face if providing operating capital to a company. For example, a
company with a $5 million inventory that takes seven months to sell will be considered less
profitable than a company with a $2 million inventory that is sold within two months.

Portfolio Turnover

Turnover is a term that is also used for investments. Assume that a mutual fund has
$100 million in assets under management, and the portfolio manager sells $20 million in
securities during the year. The rate of turnover is $20 million divided by $100 million, or 20%.
A 20% portfolio turnover ratio could be interpreted to mean the value of the trades
represented one-fifth of the assets in the fund.

Portfolios that are actively managed should have a higher rate of turnover, while a
passively managed portfolio may have fewer trades during the year. The actively managed
portfolio should generate more trading costs, which reduces the rate of return on the
portfolio. Investment funds with excessive turnover are often considered to be low-quality

Learning outcome 10: Investigate Reason/s for delayed payments

Everyone loves receiving timely payments. However, as a business owner dealing

with varied clients, you may have to face delayed payments from customers at some point.
This can lead to a cash crunch, which would mean that you would have to borrow more
money to handle your operating expenses. While this is a tricky situation, you can keep this
in control by adopting practices to prevent late payments from occurring in the first place.

Payment delays can happen due to many reasons, ranging from a customer simply
forgetting the due date to inadequate funds in the customer’s account. However, there are
precautionary steps you can take to reduce the frequency of such payment delays and
prevent them to a certain extent.

Read on to know how you can increase the chances of getting paid on your schedule!

Prevention plan: how to avoid late payments

Step 1: Have a written record of your terms and conditions

Before you invoice your customer, be transparent with them about your terms and
conditions, payment schedules (for example: 40% deposit in advance and the remaining 60%
upon completion), interests and late payment fees, and any debt collection procedures that
you will follow in the event of a delayed payment. Communicate these in writing, and get the
customer to sign it. Doing this online with digital signatures makes it easier. Then, if they don’t

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follow through with payment, you can show them the form they signed as proof and use it for
any legal recourse.

Step 2: Double-check before you make a sale

If you’re considering offering customers credit, do a background check on them to

understand their financial history first. If you’re unsure of their reliability, wait until you receive
payment to ship your products. You can also reduce non-payment risks by reviewing your
payment terms and maintaining an accurate AR aging report that shows the details of any
late payments. This will give you an idea of which customers consistently fail to meet your
payment terms, so you can decide whether you would like to continue doing business with
them.

Step 3: Communicate well

It’s always best to send invoices out as soon as the goods or services have been
provided, and keep in regular contact with your customer from that point on. You can ask
them for feedback on the service or product as a way of following up on the invoice. It’s
always possible that you missed something in your invoice, so communicating with the
customer about whether they’ve received an invoice with the correct details will help you
eliminate any problems on your end and get confirmation that the next step is up to them.

If you have many customers who are lagging behind in payments, it may mean you
need to communicate with them more. Once your product has reached the customer, ask for
proof of delivery or an acknowledgement of receipt from them. Besides reminding them to
pay, this may come in handy later if they claim that they haven’t received the product or if you
need to recover your dues.

Step 4: Make payments easier and encourage advance payments

If possible, bill your customer upfront so you can receive your dues immediately.
Offering multiple payment options, such as debit card, credit card, online payment gateways,
and offline payment modes, will make it easier for customers to make payments faster. If
they’re new or one-time customers, you can also request an advance payment to secure the
order (which also helps with cash flow). Getting an advance payment is easier if you have a
great track record and attractive testimonials, as your customers will be more likely to trust
you. As a bonus, you can incentivize them for early payments, by way of discounts or
goodies.

It’s helpful to allow installment-based payment plans if your customer can’t afford to
pay you the full sum immediately. Negotiate an amount that they can afford, and specify the
payment period. Although it will take a bit longer to receive the complete amount, you’ll still
get a portion of your payment up front, and you’ll receive additional portions each month (or
based on the payment terms you’ve set). This will help your cash flow while easing your
customer’s burden. It’s a win-win situation!

Step 5: Automate payment reminders

Setting up automated payment reminders is a good way to alert your customers about
payments due, without requiring extra effort from you. You can set these up in your online

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accounting system with a custom schedule, ranging from a payment reminder a week before
the due date to past-due reminders after the due date. When your customer is reminded
ahead of time, chances are higher that they will remember to pay you on time as well,
speeding up the payment collection process.

Being prepared to prevent and resolve late payments can help your business stay
strong in the long run. Set your cash flow up for success by keeping a record of your payment
terms, researching your customers’ credit history, staying in contact throughout the sale,
encouraging advance payments, and using a well-equipped accounting system like Zoho
Books. With this plan in place, you can minimize the risks of late payments and keep your
business and cash flow secure.

Learning outcome 11: Deal with delinquent members

Addressing issues with delinquent members can be stressful and awkward. Follow
these ten tips for managing delinquent members to make the process easier and increase
your chances of improving the situation:

Critique Behavior, Not People

It’s important that you don’t make the conversation overly personal or emotional. The
end goal is to reach a solution to the problem, not to spark a confrontation. To do that, it’s
important to focus specifically on inappropriate or undesirable behavior the member has
demonstrated rather than attack them personally. There may not be negative intentions
behind their negative behavior. It might stem from confusion, fear or personal problems that
you aren’t aware of.

Listen to Feedback

You should have a two-way conversation with the challenging member. Listen to their
feedback so you can understand where the problem lies and acknowledge any workplace
issues that might be contributing to the negative behavior. Sometimes, just feeling listened
to is enough for the member to feel better and improve their behavior.

Give Clear Direction

Giving tough feedback can be a difficult task, but it’s important that you give clear and
specific examples of the negative behavior and explain why it’s inappropriate and how it has
to change. Focusing on specific examples can help lower the member’s defensiveness and
offer useful information that can help them improve their workplace performance.

Document Problematic Behavior

Whenever you witness poor performance or troubling behavior, write it down in detail
so you have a record of what happened and be sure to include the date. Proper
documentation not only helps you remember and refer to specific events, it also protects in
the event that the member is let go and decides to sue for wrongful termination.

Consult to the Department

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Schedule meetings to discuss the situation. They can give advice on how to deal with
the poor behavior, help you understand the documentation you need and provide a course
of action for addressing the issue with the member.

Work Together Toward a Solution

The ideal result when you discuss a difficult member’s behavior with them is that the
two of you work together to develop a solution you both agree on. Discuss the negative
behavior, what the appropriate behavior looks like and then find out what the member needs
from you to improve. Agree upon a solution to the issue.

Write Down Expectations

Detail your expectations for what needs to improve and set a timeline for improvement.
Write down a clear plan of action with a specific timeline and evaluation framework for
measuring success. Sign the plan and have the member sign it as well. You should both keep
a copy of the document so the member use it to enact the plan and you can evaluate
performance moving forward.

Set Specific Consequences

It’s possible that your plan for improvement with a difficult member will fail if you don’t
set clear consequences if the behavior doesn’t change within the agreed upon timeframe.
Members likely won’t change their behavior unless continuing it will affect them negatively.

Monitor Progress

Give your member the time needed to correct their behavior. During that time, monitor
their progress and make note of any issues or relapses. Check in as frequently as needed to
get a better sense of how they’re progressing with the agreed-upon plan and intervene if they
get off track. After the timeline from your plan has passed, schedule a full in-person evaluation
to discuss how the situation has progressed.

Recognize a Hopeless Situation

While the goal is to improve the member’s behavior so that your team can be more
happy and productive together, realistically there will be times when that isn’t possible

Learning outcome 12: Recommend/execute plan of actions to settle delinquent

account/s

How to Handle a Delinquent Account

A delinquent account is a term used in finance to describe an account that is past due.
If you borrow money, or you have a credit card, there are guidelines in place that govern
when you need to make payments or repayments. If you miss the deadline, your account
becomes delinquent.
It’s common to hear about delinquent accounts when talking about credit cards. If you
have a credit card, and you fail to make a payment on time, your card issuer will class your
account as delinquent. In most cases, however, the company won’t report a delinquent

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account to a credit bureau for 30 days. In some cases, if you have a history of making
previous payments on time, you may be given two months to make a payment.
The number of delinquencies is likely to impact your credit score. Multiple
delinquencies will affect your ability to borrow money in the future.
How Can I Avoid Delinquency?
Most people who miss payment deadlines do so because they can’t afford the
repayment or they have a genuine reason why the payment was late. It can be very difficult
to keep up with payments, especially if your financial situation has deteriorated due to loss of
income, unemployment, or needing to cover unexpected costs, such as medical care. The
following tips can help you to avoid delinquency:
 Try to draw up a monthly budget: This can help you to plan for payment deadlines
and ensure you have enough money to cover repayments. If your budget is tight, and
you’re struggling to make ends meet, look for costs you could reduce or eliminate.
Setting spending limits is an effective way to lower your outgoings and get rid of
unnecessary expenses.

 Contact your lender: If you know that there is a risk of missing payment deadlines,
contact your lender before your account becomes delinquent. There may be hardship
options or payment programs, which could help to prevent you from having a
delinquent credit card account and reduce financial pressures and anxiety. There is
often help available for people who experience financial emergencies.

 Tackle high-interest debts: It may seem illogical to try to clear debts if you’re finding
it hard to pay bills, but if you tackle high-interest debts, you’ll reduce your overall
outgoings and lower the risk of penalty charges and extra fees for late payments.

 Seek expert advice: If you can’t pay bills on time or make payments, the best course
of action is to seek advice from experts. There are options available to clear debts,
such as consolidation loans and debt management plans. Financial advisers will be
able to talk to you about solutions that are relevant to your financial situation.
How to Handle Delinquent Accounts
The best way to prevent stress and changes in your credit rating linked to delinquent
accounts is to make sure that you meet payment deadlines. Always ensure that you know
when you have to pay creditors and check your balances and statements as the deadline
approaches.
If you are struggling to make payments, it is best to contact the lender rather than
letting the account become delinquent. It may be possible to move the deadline back or
participate in a repayment program as part of a hardship program.
If your account becomes delinquent, it’s beneficial to try and make your payment as
soon as possible to avoid further financial penalties and multiple delinquencies, which can
affect your credit rating.
To Summarize delinquent account is a term used to describe an account that is past
due. If you miss a payment deadline for a loan or credit card, for example, your account
becomes delinquent. Delinquencies can affect your credit rating, and they usually stay on
your credit report for seven years. It is best to try to avoid delinquent accounts by managing

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your money and contacting the lender or seeking professional financial advice if you are
finding it hard to pay bills on time.
Learning outcome 13: Submit incident report

Facts related to the incident include:

1. The Basics. Identify the specific location, time and date of the incident. ...
2. The Affected. Collect details of those involved and/or affected by the incident. ...
3. The Witnesses.
4. The Context.
5. The Actions.
6. The Environment.
7. The Injuries.
8. The Treatment.

How to Write an Effective Incident Report [Templates]?

We all do our best to ensure a happy and healthy workforce. That’s why, in a perfect
world, you would never have to create an incident report.

But since incidents do happen, it’s never a bad idea to be prepared for any situation–
especially the unexpected.

Small business owners, human resources teams and workplace emergency first
responders: this is the article for you!

In this step-by-step guide, we’ll share our top tips on creating incident reports that will
help you carry out effective investigations and make sure similar (or more serious) incidents
don’t happen again. We’ll also include our top templates to get the job done.

1. What is an Incident Report?

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An incident report is a form to document all workplace illnesses, injuries, near misses
and accidents. An incident report should be completed at the time an incident occurs no
matter how minor an injury is.

Any illness or injury that impacts an employee’s ability to work must be noted. The
specifics of what is required by law to be included in an incident report will vary depending
on the federal or provincial legislation that affects your workplace.

If you’re unsure, you can take a look at your government’s website for more details. In
certain cases, there are exceptions that can exempt small businesses from complying with
such legislation.

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2. Incident Report Examples and Design Tips

Here are some examples of type of incident reports to help you get started. I’ve also
included some report design tips to help you present your information effectively. We’ve also
got a comprehensive guide to general report design if you want to dig a bit deeper into the
topic.

Incorporate your branding into your report design

As with any document you create for your business, it’s good practice to incorporate
your branding into your incident reports. (Psst–Venngage’s Brand Kit feature makes it easy
to add your branding in just a click!)

Include your brand colors into your design. You can do this by using them in the report
header, footer, side bar, and in any visuals.

You could use your brand colors in the background of your incident report:

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you may also want to include your logo, like in this incident report
template:

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Organize your information into sections using boxes

To make your information as readable as possible, organize it into sections. One of

the easiest ways to do this is by using boxes.

For example, take a look at how these type of incident report templates use boxes to
section off the information:

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This type of incident report example also uses rectangles to denote section headers:

Color code the sections of your incident case report

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Colors aren’t just great for making your reports, presentations and charts more
interesting to look at. You can also use color to organize sections of your report and to draw
attention to key information.

For more tips on using color in your designs, read our guide on how to pick colors to
communicate effectively.

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Add a visual header to your incident report

As part of your company branding, you may want to add a visual header to your
reports. For example, this incident case report template uses a neutral photo with a color filter
to create a professional header:

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You can do this in Venngage by overlaying a photo on a color background and
adjusting the opacity of the photo:

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Make a mock form to offer news team members as an example

If you’re transitioning in staff or something happens when the individual who owns
incident reports is away, it’s very important that there is a process documented. That will
ensure that if someone is put on the spot, they can fill in the incident report properly.

It can also be helpful to add brief descriptions of the information in the type of incident
report to include in each field. Take a look at how this incident report example offers some
brief text to guide the person filling it out:

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Use icons to visualize concepts

Icons are small, compact visuals that can be used to reinforce information in your
reports. You can also use them to draw attention to specific fields and important pieces of
information.

For example, this incident case report template uses icons to indicate the purpose of each
field:

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3. How to Write an Incident Report

It’s important to establish a systematic method for investigating incidents.

It’s also equally important to have a report prepared that enables you to record every relevant
aspect of the incident details–this is the essential first step in the incident reporting process.
After you’ve created your incident report form, you can:

 Begin your investigation with fact-finding

 And end your investigation with determining recommendations for preventing both an
increase in severity of the incident and the possibility of a recurrence.

To write any incident case reports, follow the basic format described below.

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1. Take Immediate Action

Employees of your organization should notify their manager or another member of the
company’s leadership committee as soon as an incident occurs–regardless of the nature of
the event (whether it be an accident, illness, injury or near miss).

That being said, there needs to be communication channels clearly defined to promote
the practice of employees coming forward in these situations and the importance of such.

Once an incident has been reported, the member of leadership’s first responsibility is
to ensure that appropriate treatment, if necessary, is being administered to those affected by
the event.

On this note: if the hazard still exists, the manager that the event has been reported
to must eliminate the hazard by controlling it. Each company should have a defined procedure
for accomplishing this based on the nature of their work.

For example, if there was a spill that caused a fall. You would attend to the victim and promptly
have the spill wiped up and identify the area as a hazard by using a sign.

2. Collect the Facts

Once the immediate action including the response to the event and eliminating the
hazard from the environment has been conducted, it’s time to determine and record the facts
related to the incident details.

Facts related to the incident include:

The Basics

Identify the specific location, time and date of the incident. This information is
fundamental to the investigation and the most obvious information to collect.

The Affected

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Collect details of those involved and/or affected by the incident. This would entail
recording the name(s) of the individual(s) involved, their job title(s), the department(s) they
operate in the manager(s) of those affected.

The Witnesses

Speak to any witnesses of the event to collect their perspective of the event. Record
their statements as detailed and accurately as possible in the form.

To ensure accuracy, it’s best practice to review your notes with the witness to ensure
they agree with how the event is portrayed on the report. It’s also important to include the
name(s) of any witnesses in the report in case any additional questioning is required.

The Context

Consider and document the events that occurred leading up to the incident. Ask:

What was the employee doing?

Who asked them to complete the task? How was the employee feeling prior to the
incident? …etc.

It is important to identify which factors were an outcome of the incident and which
factors were present prior to the incident and could be a potential contributing factor to the
incident occurring.

The Actions

In the report, you must specify the actions of those involved at the time of the incident.
What did the employee do that led to the incident?

For example, if an employee injured their back when lifting a box at work, it is important to
determine how that employee lifted the box to decide if that contributed to their injury. If yes,
then inquire if this employee was trained properly for this task and by who or what source?

The Environment

Identify and record environmental conditions that contributed to the event. Was there
inadequate lighting? Was a piece of equipment not operating properly? Was the employees
visibility obstructed by a glare or blind spot? Etc.

The Injuries

Record detailed descriptions of specific injuries and evaluate the severity of such in
the report. This description should include part(s) of body injured, nature and extent of
injuries.

The Treatment

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It is also important to document in the incident case report the type of treatment
administered for the acknowledged injuries. This information is important to document in
order to understand how the employee recovers when reviewing the specifics of the event.

The Damages

Record an account of any damage to equipment, materials, etc that was affected by
the incident. This will be helpful to refer back during the analysis of the event in order to
consider a both a corrective action plan and to determine what items will need to be repaired
or replaced.

3. Analyze and Reflect

Collecting and recording the facts related to the occurrence of the incident will aid in
determining how the incident occurred. Analyzing the collected facts related to the incident
will aid in determining why the incident occurred.

Analyzing and determining how and why the incident occurred is essential in order to
develop an effective corrective action plan.

Potential causes for accidents or injuries that occurred in the workplace could include:

Primary causes (for example, an unsalted ice patch on a set of stairs that caused a slip and
fall).

Secondary causes (for example, an employee not wearing appropriate personal

protective equipment, such as a hard helmet or eyewear).

Other contributing causes (for example: a burned out light bulb in the area causing
poor visibility).

4. Establish a Corrective Action Plan

A Corrective Action Plan would provide recommendations as a means to reduce the

possibility of a continued issue and/or recurrence of the incident details. The
recommendations would result from an effective analysis of the facts collected and
documented in the incident report.

Elements of an effective Corrective Action Plan could include:

Occupational Health & Safety training for employees

Preventative routine maintenance processes that ensure equipment is in proper working
condition

A review of job practices and procedures with a recommendation for changes to

reduce the risk of incidents

Conducting a job hazard analysis to determine if other potential hazards are

associated with the task and/or environment and then training employees on these hazards
based on the findings of the assessment

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Engineering, equipment or PPE changes/upgrades to ensure the task or the process
of completing said task poses less risk

Incident Report Examples

COVID-19 Employee Incident Report Template

Blue healthcare employee critical incident report template

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Conclusion

Although being prepared for the unexpected is often difficult, preventative measures
are the cornerstone of maintaining a happy and healthy working environment for yourself and
your workforce.

Incident reports are a not only a defining piece in any company’s incident response
protocol, but they provide a means to avoid recurring mishaps and/or inspire change.

That’s why it is crucial to have a relevant and comprehensive incident report form
prepared and on hand for any incident details that may arise. By adhering to your jurisdiction’s
legislation and considering the four components prescribed above, you’ll be well prepared to
handle incidents effectively.

The effect of responding to workplace incidents in a timely and detail-oriented manner

will not only ensure a safe workplace, but also:

Reassure your employees that their employer is prepared to take the right steps in any
situation

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 Ensure all appropriate parties are fully informed of incidents
 Establish a record of incidents for future reference
 Protect both you/your company and your employees from lawsuits and disputes
 FAQs about incident reports
 What is the purpose of incident reporting?
 An incident report is used to describe an event that requires an investigation which
needs to be documented.

What is in an incident report?

Any event that may or may not have caused any injuries to a person is considered an
incident that requires documentation in the form of an incident report.

Types of incident reports

 Accident Reports
 Workplace Incident Report
 Edit Form

ACTIVITY

Application: Create a group, assume that you are working in Microfinance industry.
Make an incident report according to the Challenges faced by Microfinance Institutions
stated below.

 Over-Indebtedness

WEEK 16
UNIT OF COMPETENCY: UPDATE FINANCIAL RECORDS

Lesson Objectives: At the end of this lesson, the students should be able to:
1. Learn to review transactions
2. Identify review steps
3. Create action plan

Learning outcome 1 Review transaction report

Review transaction

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The review tool on the Transactions page allows you to mark a transaction as
reviewed, which helps you ensure all the details of the transaction are verified.

When you import or create a transaction, it's good practice to ensure a category is
selected, a sales tax set, any customer or vendor information is added, and the description
is correct. Only the category field is mandatory in order to verify the transaction, but make
sure you've included everything you need to keep your records accurate.

The types of procedures that would be reasonable to conduct for a review include:

 Conduct a ratio analysis with historical, forecasted, and industry results

 Investigate findings that appear to be inconsistent
 Inquire about the procedures for recording accounting transactions
 Investigate unusual or complex situations that may impact reported results
 Investigate significant transactions occurring near the end of the accounting period
 Follow up on questions that arose during previous reviews
 Inquire about material events that occurred after the date of the financial
statements
 Investigate significant journal entries
 Review communications from regulatory agencies
 Read the financial statements to see if they appear to conform with the applicable
financial reporting framework
 Review the management reports of any accountants who reviewed or audited the
entity's financial statements in prior periods

There are also a number of review steps that can be utilized in specific areas,
such as:

 Cash. Are cash accounts being reconciled? Have checks written but not mailed
been classified as liabilities? Is there a reconciliation of intercompany transfers?

 Receivables. Is there an adequate allowance for doubtful accounts? Are any

receivables pledged, discounted, or factored? Are there any non-current
receivables?

 Inventory. Are physical inventory counts performed? Were consigned goods

considered during the inventory count? What cost elements are included in the
cost of inventory?

 Investments. How are fair values determined for investments? How are gains and
losses recorded following the disposal of an investment? How do you calculate
investment income?

 Fixed assets. How are gains and losses on the disposal of fixed assets recorded?
What are criteria for capitalizing expenditures? What depreciation methods are
used?

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 Intangible assets. What types of assets are recorded as intangible assets? Is
amortization being appropriately applied? Have impairment losses been
recognized?

 Notes payable and accrued expenses. Are there sufficient expense accruals?
Are loans properly classified?

 Long-term liabilities. Are the terms of debt agreements properly disclosed? Is

the entity in compliance with any loan covenants? Are loans properly classified as
short-term or long-term?

 Contingencies and commitments. Are there guarantees to which the entity has
committed itself? Are there any material contractual obligations? Are there
liabilities for environmental remediation?

 Equity. What classes of stock have been authorized? What is the par value of
each class of stock? Have stock options been properly measured and disclosed in
the financial statements?

 Revenue and expenses. What is the revenue recognition policy? Are expenses
recorded in the correct reporting period? Have the results of discontinued
operations been properly reported in the financial statements?

The preceding list represents a sampling of the review activitie s that an accountant
could engage in.

If the accountant believes that the financial statements are materially misstated, he
should perform additional procedures to obtain a limited assurance that there is no need
to make material modifications to the financial statements. If the statements are
materially misstated, the accountant must choose between disclosing the issue in the
report that accompanies the financial statements, or of withdrawing from the review.

Learning outcome 2 Prepare loan disbursement master roll

Loan Disbursement Process: How banks leverage technology to disburse Personal Loans?

The speed of personal loan disbursement is unlike anything we have seen.

Technology has fuelled this movement and continues to impact transform lending unlike ever
before

The confluence of technology and finance is a game-changer. Artificial intelligence

(AI), machine learning, and data analytics have revolutionised finance, helping banks and
other financial institutions enhance customer experience. Thanks to technology, customers
can access any financial product without moving a muscle.

From mutual fund investments to stock trading, every tool is a click away. Personal
loans are equally easy to access, with every step carried out digitally. Banks can now accept
applications, verify the documents, and disburse the loan amount online, saving time, effort,
and resources.

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Role of technology in personal loan disbursement

In digital lending, customers can avail of instant personal loans digitally. They do not need to
visit a bank and fill an application form. The entire process can be completed on the bank’s
website or mobile application.

After a personal loan application is submitted, they are scrutinised using data analytics
and AI. Past repayment records are considered to conclude the applicant’s probability of
repaying the loan amount. Once the bank feels confident of lending the loan amount, the
money is disbursed within hours in the lender’s account.

This was not possible with traditional lending methods. They laid greater emphasis on
manual intervention, which prevented many people from accessing credit.

READ MORE

Personal Loan in Pune - Instant Personal Loan Online

Things to tell your child when they apply for their first Personal Loan

Explained: the digital personal loan lending process

Personal loans are assessed and processed at lightning speed, but how do banks do it? Let’s
examine.
 People had to visit the bank and stand in long queues to apply for a loan some years
back. Even after the effort, there was no guarantee they would get the loan. If they did,
the personal loan disbursement process would take weeks, which would cause
problems, especially during emergencies. The digital lending process has changed
this, with customers now able to apply for a loan online. They can open the bank’s
mobile application or website and apply for a loan. Applicants can also read up on the
eligibility criteria to see if he meets the requirements. Most banks also provide
loan Personal Loan EMI calculators to help customers plan their repayment even
before getting a loan.
 In traditional lending, the submission and verification of documents could take weeks
or even months. Digital lending does the same in a few hours, showing the value of
technology. Customers must scan and upload the required documents online,
following which the bank assesses their application.
 Risk-assessment algorithms plan an important role in assessing personal loan
applications. The algorithm helps decide whether the applicants can repay the loan.
The loan amount is disbursed in the applicants’ account within hours if the algorithm
gives positive data. Quick loan disbursement was imaginable in the traditional method
of lending.
 The entire loan disbursement process takes less than 48 hours, with the money
directly reaching the applicants’ bank account. Compare this to a few decades ago,
and we can see how technology has impacted lending.

PROCESSING OF PERSONAL LOAN APPLICATION

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Your Personal Loan application is processed usually within 24 hours to a week,
depending on the credibility of the information provided by you. Once it is approved, banks
generally provide a cheque that you can collect from the branch, or sometimes, it’s mailed to
your address.

DISBURSAL OF PERSONAL LOAN

Once the Bank is satisfied with the information provided by you, it will approve your
Personal Loan and the disbursement of the loan can begin.

The amount disbursed depends upon the loan agreement and other factors like :

 Type of loan
 Processing fee
 Upfront payments (if any)
 Service tax

MODE OF DISBURSAL

In normal circumstances, a personal loan is disbursed within 24 hours of the

application being approved. A cheque or a demand draft is provided by the bank, which is
then either couriered or can be physically collected from the branch by you.

In rare circumstances, the loan amount can also be credited to your bank account by the
concerned branch via a NEFT transfer.

CONFIRMATION FROM THE BANK

After disbursal of the Personal Loan, the bank will send a confirmation letter either
through an email or as a paper copy along with a welcome kit. Additionally, the bank will also
provide you an EMI calendar and an amortization table that will help you calculate the
principal to interest ratio for your loan payments.

PROCESS OF REPAYMENT

Once you’ve received the money, you can start repaying the loan in accordance to the
agreement between you and your bank.You can repay the loan either through post-dated
cheques or Electronic Clearing Services (ECS). If you’ve taken the loan from a bank you
have an account with, you can opt for periodic auto-debt with standing instructions that will
make the repayment process more convenient. However, if you’ve taken the loan from
another bank, they will accept the repayment only through your salary account.

Disbursal: If the loan application is approved, the loan amount is finally credited in the
borrower's account. If the loan for a business is availed from a bank, it would take a week or
two in disbursal. Whereas if the loan is availed from an NBFC, the loan amount is disbursed
within a few days.

WEEK 17
Learning outcome 3 Record daily collection on daily collection sheet

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Lesson Objectives: At the end of this lesson, the students should be able to:
1. Learn to record daily collection
2. Identify collection sheets
3. Enumerate the areas of monitoring information

While few entrepreneurs start their own businesses because they're fond of
paperwork, recording your day-to-day sales, purchases and other transactions is a must.
Learn where to record what, and how often to do so.
Control of your financial recordkeeping begins with accurately recording pertinent
transactions. You need to record:

o Sales and revenue transactions, including cash transactions

o Accounts receivable, if you extend credit to your customers
o Accounts payable, if you purchase from your suppliers on credit
o Summaries of transactions in your general ledger

Consider separate accounting for different product lines

If you have more than one product line or department, you may want to keep a
separate set of books for each. Many entrepreneurs find separate accounting provides more
meaningful information for their products. The practice may reveal that one product line or
department is profitable and another is not.

Unfortunately, it may be difficult to keep a separate set of books for each product line
or department. For example, some or all expenses may not apply to only one department,
but must be allocated among departments. You should seek the advice of
an accountant before setting up an accounting system of this nature.

Selecting the right accounting software

Shop around for the right accounting software, and be sure to ask for your accountant's
opinion. With so many options like QuickBooks, MYOB, Peachtree, as well as online options,
take the time to consider the pros and cons of each.

While many accountants will do their best to accommodate their clients’ already
installed software, their experience with companies of you size and (hopefully) your industry
will provide real insight. Ask your accountant for recommendations prior to investing in a
system. If your accountant knows the software you've chosen, he or she will probably help
you set it up.

If you have employees, your chosen software should permit the use of passwords to
control access to all or some of your accounting transactions. In order to prevent irregularities
by your employees or others, it's wise to restrict access to your accounting records.

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Whether your operate your business as a sole proprietorship, partnership, or
corporation, always keep your personal transactions separate from your business
transactions in your accounting software. Using business funds to pay for personal
expenditures complicates your recordkeeping and can lead to serious tax problems. It can
also result in some hefty accounting fees as you pay your accountant to sort it all out.

Maintaining sales and cash receipts journals

You record daily sales in a sales journal. To simplify your bookkeeping, we

recommend a combined sales and cash receipts journal. With a journal that combines sales
and cash receipts, you record all sales (cash and credit) and all cash receipts, including
collection of accounts receivable, in one journal, which your software should be able to
accommodate.

Entries in your sales and cash receipts journal come from the source documents you
use in your business every day. These documents are sales invoices, daily cash register
totals, daily cash sheets and daily sales registers.

Keeping tabs on sales invoices

If you use sales invoices, you will post the information from each invoice to an entry in
the sales journal. If you maintain customer charge accounts, you will also be posting entries
to the accounts receivable ledgers so that each customer account is up-to-date. Sales
invoices should be numbered.

While you can store paper copies in file cabinets, tracking invoices digitally makes
much more sense.

If you prefer a paper method, prepare two copies at a minimum: one copy for the
customer, one for you. Preferably, you should prepare the invoices in triplicate, with two
copies retained by you. File one by customer name, the other by invoice number. Include
canceled or voided invoices when filing by number so you can account for all of them.

Whether digital or paper, the invoice should show:

o The date of the sale

o Quantity, if applicable
o Price or rate
o An extension column, if applicable (quantity multiplied by price)
o A payment due date

Don't worry about creating a sales invoice template. Most office suites (such as Microsoft
Office or OpenOffice.org) contain a number of invoice templates that may be used as a
starting point to design your own sales invoice. And a quick “sales invoice” Google search
will surface free templates on a number of websites.

Recording cash register receipts

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If you use cash registers, daily sales can be totaled on the register. Most cash registers
produced within the last decade should be able to separately record cash sales and charge
sales, and keep track of sales tax.

Some should also be able to record cash received on account. At the end of the
business day, record your cash register totals in the sales journal.

Opting for cash sheets in lieu of registers

If you don't use a cash register, you can record cash receipts on a daily cash sheet and
record sales on a columnar sales register. The sales register is simply a record of each sale
for the day. Total the cash sheet and sales register at the end of every day. Enter the totals
in the sales and cash receipts journal.

A variety of different types of sales journals and cash receipts journals are available.
To simplify your bookkeeping, we recommend a combined sales and cash receipts journal.

If you are going to be recording sales and cash receipts manually in a journal, visit an
office supply store. They will have many different kinds for you to choose from. Look at the
different column headings, and choose the one that best meets the needs of your business.

If you will be using computer software, you probably won't have to decide which type
of journal to use. Your program will probably have some type of sales and cash receipts
journal, but may allow you to customize it based on your type of business.

Sample Daily sheet

Learning outcome 4 Submit daily monitoring report

Why monitor client status?

This Practice Note discusses how microfinance institutions (MFIs) can cost-effectively
monitor and improve their social performance. By monitoring, we refer to regular, systematic

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and on-going collection of timely and appropriate information that helps the staff and clients
of an organisation to make decisions to improve the quality of their work.

You probably already monitor your financial portfolio so that you can respond to
problems and reduce risk. If you also monitor your success in meeting your social goals, this
will help you to manage and improve your social performance, by revealing patterns and
trends in who you reach and how they perform. This information allows you to track progress
against objectives; to identify and respond to problems at an early stage; to see whether there
are differences in performance for different client groups, different branches, products or staff;
and to assess the risk and performance of different products and services. Together these
contribute to improving the quality, efficiency and effectiveness of your work.

Monitoring provides an overall picture of performance rather than an understanding of

the reasons for the trends and patterns observed. It therefore does not take the place of more
in-depth assessments of social performance, but it helps to guide and complement them.

How can this Practice Note help you? Monitoring systems can be an important
resource to help you manage social performance. However, careful planning is needed to
ensure that the system is appropriate for your needs, capacity and resources. This Practice
Note guides you through choices that need to be made in designing a system that suits your
needs. As we stress elsewhere in the Imp-Act Guidelines and Practice Notes, there is no
single system that works for all organisations, but there are some key principals and things
to avoid that will help guide you through the process. In the end, the effectiveness of your
monitoring will depend on how you use the information to make better management decisions
(see Imp-Act Practice Note 1 on feedback loops).

1 How can monitoring help improve social

THIS SECTION explains how you can use client monitoring data to understand the
performance of your institution and the clients you serve. By tracking indicators that reflect
the context and performance of your clients (see Imp-Act Practice Note 5 on indicators),
monitoring systems provide information about how clients use financial services, and how
this contributes to changes in their quality of life. By relating these changes to the operations
of your MFI, this information will allow you to manage both social and financial performance.

Monitoring information can be useful in three main areas:

• Tracking progress against targets

• Making adjustments to improve performance
• Early warning system

Tracking progress against targets Many MFIs wish to monitor performance against
certain social performance objectives, for example poverty outreach, client business growth,
or children’s school enrolment. Making sure regular collection of this data is an integrated
part of your MFI operations monitoring systems will enable you to record and report on this
performance data (see Case study 1)

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Making adjustments to improve performance Monitoring provides information about
patterns and trends in performance. When combined with follow-up research this can help
you understand problems and opportunities and allow you to take action to improve
performance. This information may be used at different levels of your organisation, for

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example supporting field staff in providing a better quality service, improving responsiveness
of services to clients, and allowing for better strategic decisions at an organisational level.

If you regularly monitor your clients in relation to your social performance goals you
will gain information about the patterns and trends in your MFI’s performance, and identify
areas where improvement is needed. You may find that your existing portfolio information
provides some of the information you need, but it is likely that you will need to develop
additional indicators (See ImpAct Practice Note 5 on indicators). The Imp-Act social
performance framework (See Imp-Act Practice Note 9 on social performance management)
suggests that there are four areas where performance can be improved through monitoring:
• Who uses and who is excluded from your services? By monitoring the characteristics of
clients and how this changes over time you can ensure that you reach your target clients. For
example Imp-Act partners LAPO (Nigeria), Prizma (Bosnia and Herzegovina), CARD (the
Philippines), and SEF (South Africa) include client poverty status as a monitoring indicator.
By collecting this data for all clients on entry, these MFIs.

Performance

can monitor whether they are achieving their objectives in terms of depth of outreach.

• How do clients use our services? By monitoring client use and response to services you
can get a picture of whether your services meet your clients’ needs. If you look at the
characteristics of clients who use a particular service or perhaps that take particularly large
loans, you will be able to more effectively understand the differences between your clients
and respond more effectively to their needs.

• Who leaves or fails to make full use of our services? Monitoring data can help you to see
the patterns of client exit and ‘resting’ and see if these relate to your inputs or other contextual
factors. Combining this information with follow-up research into the reasons for these patterns
can help you to improve the effectiveness of your services.

• What progress are our clients making? Monitoring gives you information about how your
clients’ situations change over time (see Case study 2). Indicators of client status normally
relate to the specific social objectives of an MFI and therefore can be very varied (for example
the poverty level of clients, whether their children attend school, or the profitability of their
business). Again, by analysing information separately according to different characteristics,
you can better understand the progress and needs of different client groups. Monitoring can
also provide good baseline information for more in-depth research into impact, providing an
overall picture of microfinance clients.

Early warning system An important feature of effective monitoring is that it provides a

warning system, identifying problems before they become harmful for the organisation. By
identifying key factors that affect client performance, you can track indicators that give
warning about developing problems. You should select a small number of indicators that are
very sensitive to change, and monitor these on a regular basis. Benchmarks are set, and
these are refined over time using information from past clients. If any worrying patterns are
identified, this can lead to investigation of the issue and action can be taken to ensure that
the problem is dealt with before it becomes more serious (see Case studies 3 and 4).

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3. Monitoring poverty exit Clients who leave for negative reasons are unable to benefit from
SEF’s services. Low exit rate is necessary for positive impact, so SEF closely monitors client
exit, setting targets at individual and branch level. The MIS is able to group clients according
to their poverty score (on entry to the programme), and this information is used on a monthly
basis to track performance and is used for staff incentives. Separate figures are produced for
the poorest clients to ensure that the most vulnerable clients are not the ones tending to leave
(see graph).

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2 Designing a monitoring system

YOUR MONIT O R I N G system needs to be designed to meet your specific needs.

There is no single approach that works for all organisations, and it is important to have a clear
idea of how you will analyse and use your monitoring information before you start your design
(see section 3). Many of the steps for the development of a monitoring system follow the
general process for social performance management systems outlined in the Imp-Act
Guidelines (see Resource section).

1 Clarify your objectives: You need to be clear about why a monitoring system is needed and
precisely how the information collected will be used.

2 Understand how the indicators you will monitor relate to your clients and their needs: This
will ensure that you are able to use your monitoring information to improve practice.

3 Review and build on your existing information systems: Experience from Imp-Act partners
has shown that many monitoring systems try to collect too much information, with the result
that they are too expensive, too complex and too confusing to influence management
decisions effectively. It is often better to collect information on a small number of indicators
from a sample of clients, but to do so regularly, reliably, sustainably and usefully.

4 Ensure simple and effective collection, analysis and reporting of monitoring information:
• Select appropriate mechanisms for collecting and analysing data.
• Decide how often data needs to be collected to be useful.
• Decide whether data is needed from all clients, or whether a sample is sufficient.
• Determine how data should be collected and by whom – it is important to integrate data
collection into your existing operations as much as possible.
• Develop procedures for aggregating, processing and analysing the data Remember, you
may need to make compromises between what you would like to monitor, and what is

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practical and cost-effective to do. For example, many MFIs collect information for groups not
individuals, and therefore have problems incorporating individual data into their MIS.
• Assign responsibility for converting information generated into recommendations for action.
• Create a plan to make sure the changes are put into practice.

5 Set up mechanisms for follow-up research: Management and staff may have many ideas
about the reasons for the patterns and trends revealed through the monitoring system, but it
is important that these are explored further to understand the reasons for the data revealed
by monitoring. Use of monitoring information alone, without adequate follow-up, may lead to
incorrect conclusions being made and poor decisions.

Types of monitoring Monitoring data is collected as a routine part of everyday

operations. The exact data captured varies according to the particular needs, objectives and
methodology of your MFI. Some MFIs may just monitor the profile of their clients on entry.
Others may seek to monitor changes in client profile and performance over time. For
example:
• Sinapi-Aba Trust, in Ghana, collects monitoring information that allows for reporting on key
impact indicators to external stakeholders and the board.
• PRADAN, in India, prioritises selfanalysis by clients and uses individual learning diaries that
are completed weekly by clients themselves.
• Prizma, in Bosnia and Herzegovina, uses monitoring as part of branch and staff
performance management, and requires information that can be used as part of performance
targets.
• The Covelo Network, in Honduras, has supported routine collection of client exit and
satisfaction information from its members throughout its member organisations.
• SHARE, in India, has introduced an annual client feedback process through branch
workshops. These address a range of issues and provide a forum for regular feedback to the
organisation about client perceptions of the services being provided and problems
encountered.

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Methods and tools for collecting data

Your choice of methods and tools for monitoring depends in part on your existing
systems and how well additional data collection can be integrated, and in part on the sort of
information that you wish to collect and how it will be used.

Tools chosen need to be easy for staff to use without specialist research training and
simple enough to allow for quick collection of data without long discussions. They also need
to be easy to understand.

Monitoring can, for example, include:

• Short questionnaires (5–10 questions) administered as part of the loan application form
• Client exit forms administered as clients withdraw their savings, or at another convenient
time
• Staff observation during visits to client homes or businesses
• Discussions at client meetings, such as village bank or centre meetings, or at client
workshops
• Monitoring forms or diaries completed by clients
• Routine focus group discussions conducted by field staff, internal audit or external
consultants on issues such as client satisfaction
• Use of formalised staff discussions and feedback in management meetings. Various tools
can be applied, including:
• Simple yes/no questions, such as:
Do you own a:
❏ television
❏ radio
❏ refrigerator
❏ electric cooker
❏ bicycle
❏ sewing machine
❏ motorbike
❏ car
• Ranking scales: these allow for information about the extent of an indicator to be collected
without the need for precise information.

For example:

How often do you cook special food for your household?

When I want =5
Every week =4
Every month =3
Occasionally =2
Never/rarely =1
• Direct observation of client business, or using visual assessment tools such as the Housing
Index, which assesses poverty status based on scoring housing condition
• Simple quantitative data, for example about business profits
• Participatory tools.

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3 Analysing and using monitoring information

B Y UNDERST A N D I N G the possibilities for using a monitoring system, you will be

able to plan more effectively how to design a system that meets your needs. Your possibilities
for use depend on the analysis that you do. This in turn depends to a large extent on the
information systems that you have, particularly whether you are able to integrate monitoring
into an MIS (see Table 1 and Case study 6).

Storing and recalling information Few MFIs would be able to function without
monitoring basic portfolio data such as loan disbursements, savings receipts, arrears or
portfolio at risk. Many organisations seek more detailed information and look for patterns and
trends in the portfolio to see if the performance varies in relation to operational factors such
as product, branch and staff members.

An effective MIS is invaluable in this process as it allows managers and other users,
such as board members, to access up-to-date and accurate information about the financial
portfolio of the MFI at the time that it is needed. A number of operational variables are
recorded in the MIS – such as loans dispersed, training provided, loan officer name. Further
analysis – such as credit scoring – looks at how factors relating to the clients are linked to
the patterns and trends in performance observed. This can be done if simple information
about clients – such as age, business type, marital status etc – is captured.

Monitoring and using social performance information By also tracking client

performance indicators related to your social objectives – such as reaching poor clients or
achieving changes in terms of poverty level, health status, education of children, or housing
conditions – you will be able to assess your social as well as your financial performance.
MFIs commonly add a small number of indicators – typically up to five – that relate to the
changing status of clients (see Table 1).

ANALYSING AND USING MONITORING INFORMATION

Using a management information system (MIS) As noted above, a computerised MIS

creates the possibility for detailed analysis of patterns and trends in your performance –
especially the ability to be able to look at the relationship between different factors.

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The degree of computerisation varies between an MIS that has the capacity to fully
incorporate monitoring data and to produce analysis and reports, and one where the
monitoring system runs alongside the MIS using separate.software. Whilst a fully integrated
monitoring system makes analysis and reporting much more straightforward, it is essential
that you design a system that fits with your capacity and resources. Many off-the-shelf or
tailormade MIS are not designed to incorporate social performance indicators, and you may
have to investin considerable modifications to your system. It is therefore essential that you
have a clear idea of: 1) what information you want to capture in the MIS, 2) what routine
reports you want the MIS to produce, and 3) what additional analysis you might want to do.

If you think these modifications are going to be too expensive and timeconsuming, you
can record monitoring data manually or with computer software that is not linked to your MIS.

Analysing patterns and trends The simplest way to use monitoring data is to examine
variables in the form of frequency tables or graphs to get a picture of patterns and trends in
the portfolio which need further investigation. For example, most MFIs will use the MIS to
monitor their portfolio at risk (PAR) and track the trend in this over time. An increase in the
PAR acts as a warning for unforeseen problems. However, in some cases there are seasonal
trends, and having information over a number of years can assist you in knowing what trends
are normal and what is unusual and needs investigation. A number of client performance
indicators can be monitored to give you a picture of your social performance.

ANALYSING AND USING MONITORING INFORMATION

Examining the performance of different groups The greatest power of a monitoring

system is where it is used to reveal the performance of different groups of clients and to look
at the relationship between factors such as whether clients with a particular business are
more successful than others. This is known as portfolio segmentation, and provides valuable
lessons about the characteristics of clients who perform well – in terms of your social

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performance objectives – as well as those that contribute the most to the MFI profitability and
create the least problems.

Segmented analysis can be done relatively simply; the example in Case study 2
compares the performance of poorer clients with the overall portfolio. Richer information can
be gained by looking at several factors at the same time. A computerised MIS will allow you
to ‘filter’ for different client characteristics – for example, sex, region, age, ethnic group,
poverty, education levels of client, financial product accessed, business type etc. – allowing
you to see the performance of each group separately and in relation to the others. This can
be a powerful tool in understanding the performance of clients from different conditions. To
achieve this you would select a client profile variable such as age, and then look at how
clients of different age groups perform in relation to other factors such as savings balance,
client exit rate, growth in loan size, arrears etc. This type of analysis allows you to ask
questions and see if there are any patterns of performance that may help you find the answer.

For example, an MFI examining reasons for increasing arrears may ask the following
questions:

• What is the relationship between loan amount and arrears?

• What is the relationship between products and arrears – do some products result in higher
levels of arrears than others?
• Do all business types have the same rate of arrears?
• Is there any relationship between the age of the client and the rate of arrears?
• Is there a relationship between client education level and portfolio risk?
• Is there a link between client sex and portfolio performance?

A range of other relationships can be investigated using the monitoring data combined
with portfolio data. The questions you choose to ask will depend on your specific needs.

For example:

• Is the rate of arrears the same in all branches? The MIS information can be used to identify
branches with the highest rate of arrears as well as the lowest. Additional investigation and

analysis will be required to identify the factors that lead to differences – for example, levels,
types and frequency of training, length of time in position, attitudes, management styles,
information access, employee incentives and similar.

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• Are there differences in client performance, for example in terms of their asset
accumulation? Is this affected by factors such as the time of year a loan is given; the poverty
level of clients on entry; the total amount of money dispersed; the loan sizes given; the
products and services accessed; the savings balances held; household size client age;
marital status; education level; and whether the clients receive remittances? • Are there
differences in the change in poverty status for clients with different business types, or for
younger or older clients?
• For the piloting of a new product, what are the effects of the product on who the MFI is able
to serve and on the benefits to clients? This allows for an informed decision to be made about
the value of the proposed product in terms of both financial and social performance.

Practical tips

T O MAKE THE MOST of money, time and human resources, keep your system simple
and make sure it fulfils your objectives. Key points to consider are:
• Monitoring systems can be costly in terms of staff and client time, particularly when data is
required that is not available from the loan application and the MIS.
• Where additional data needs to be collected, field staff often resist the additional work
involved, and this can lead to data quality problems.
• It is potentially difficult to obtain accurate information using field staff, as there is a tendency
for data collection to be rushed. The monitoring needs to be seen as a core part of their work
and you need to both supervise staff’s work and ensure they receive appropriate incentives
(see Case study 7).
• As MFIs grow, the system will produce a vast amount of data. Using a sample of clients will
reduce the data collection and processing burden. Remember that it will also reduce the
detailed analysis that can be done, however.

WEEK 18
Learning outcome 5 Summarize collection on loan officer’s summary book
1. Learn to write an effective loan submission summary

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2. Identify task of a loan officer

How to Write an Effective Loan Submission Summary

1. Include information about your borrower.

2. Provide details about the property.
3. Let your lender know what your borrower plans to accomplish with this loan. ...
4. Remember, presentation is important.

There is not a single small business lender who does not appreciate a clear, concise loan
summary when evaluating a commercial loan scenario. When you submit your borrower’s
deal, it’s important that you draft a summary of the deal, including information about your
borrower and the loan. Here’s how to write a loan submission summary that will impress a
lender and help your borrower:

1. Include information about your borrower

Your lender will need to know if they’re dealing with an individual borrower, multiple
borrowers or a business entity. Be sure to include all relevant information, such as your
borrower’s credit score and any financial issues they have encountered in the past.

2. Provide details about the property

Commercial lenders are always interested in the collateral being pledged. Include
information such as the where the property is located, the size of the building, what type of
property it is and its estimated value in your summary of the deal.

Let your lender know what your borrower plans to accomplish with this loan
Any commercial lender will be interested in how your borrower plans to use the funds. Be
sure to explain why your borrower wants this mortgage and what they will be doing with the
money.

3. Remember, presentation is important

When you’re working on the loan submission summary, make sure that it is
professional. Type it up and make sure that the information is presented clearly and concisely.
Keep an eye out for spelling mistakes and make sure your numbers are accurate, as mistakes
can lead to confusion.

Providing an effective loan submission summary might mean the difference between
a quick approval and your deal languishing in the pre-approval stage. It’s important to include
all of the information a lender will need to evaluate a deal and to present it in a professional,
easy-to-read format. A well-done loan summary helps the lender to make a decision
regarding your borrower’s approval more quickly and helps your borrower to get the
commercial mortgage they need.

Learning outcome 6 Prepare monthly plan

Planning Tools

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Before you start planning out your month, it’s helpful to get organized with a few different
tools. Here’s what I use:

 A notebook to dump out ideas and plans for the month.

 A monthly calendar to keep track of appointments. I prefer Google Calendar because I

can move things around with ease.

 A tool for managing your projects, tasks, due dates, and recurring tasks. I
recommend Asana or Trello, but you can also use a paper planner like the Erin
Condren Life Planner (pictured above).

 A notebook to dump out ideas and plans for the month.

 A monthly calendar to keep track of appointments. I prefer Google Calendar because

I can move things around with ease.

 A tool for managing your projects, tasks, due dates, and recurring tasks. I recommend
Asana or Trello, but you can also use a paper planner like the Erin Condren
LifePlanner (pictured above).

When to Plan?

I like to plan my month the week before it starts. This gives me time to get prepared
so I’m not doing it all on the first of the month. That being said, you can still plan the rest of
your month now no matter how much time you have left in the month.
Learning outcome 7 Prepare annual development action plan.

Monthly Planning Process

1. Review Goals

Before I start planning out my month, I review the yearly goals I’ve set for myself. You
can read this post here about how I set and plan out my goals. Reviewing my goals helps me
remember what I should be focused on so that I’m planning tasks that align with my bigger
priorities.

2. Calendar Overview

I’ll take a look at my Google Calendar for the month and see what I have going on.
This reminds me of appointments, events, and dates I need to plan around that I’d probably
forget otherwise. I’ll also use this time to look through emails and messages to see if I have
any other appointments to plan for.

3. Content Planning

I usually plan my blog content out on a quarterly basis and then split my months into
certain themes. When I’m planning my month, I’ll review what my monthly theme is and the
content I have planned. I’ll then outline each blog post and rearrange my blog and newsletter
topics into an order that makes sense.

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4. Project Planning

I have a running list of projects that I want to work on, such as program creation,
website updates, and promotions. I’ll take a look at the list and figure out which projects I
want to work on this month or need to continue working on. Once I’ve decided on those, I’ll
break the projects down into smaller steps in Asana and set due dates for each task. That
way, I know what to work on for each week of the month.

5. Weekly Outlines

If I want to get SUPER on top of my game (I’ll be honest, I don’t always do this), I’ll make
an outline in my notebook for each week. In my outline, I’ll include my top three priorities for
each week so that I know exactly what to focus on. Of course these things can change, but
you can never be too prepared, right?

 Most of us have incredibly busy lives that can be hard to manage. When planning for
your next month, try to follow these eight tips to help you become more productive.

Most of us have busy schedules and because of this, we’re always looking for ways to
become more productive. Some of us rely on our phone calendars while others use a planner
to record everything. Being more productive not only makes your life more efficient, but it can
reduce stress and allow you to accomplish more of your goals. When trying to plan for your
next month, have a consistent routine and follow these eight life-changing tips to help you
become more productive.

1. Write things down

According to Forbes, whether you use a desk calendar or your phone, recording your
responsibilities and appointments can help you see everything in one place and think about
what your priorities are. If you’re too busy in the morning to get anything done, try
rescheduling some meetings for the afternoon and tackle important computer work or emails
first thing in the morning when you have more focus.

2. Color code

Using one color for work, one for school or volunteer activities, and one for your
personal life can help you keep track of what is happening in your day-to-day. It also makes
it easier to know, at a glance, which activities are taking up the most time and where you
need to cut down.

3. Prioritize what matters most

One common tip is to tackle your most important to-do first. Emergencies at work or
home will always be popping up, and unless something is life-threatening, you’ll never get
ahead if you’re always responding to what is easiest to finish. When trying to knock items of
your to-do list, remember that multitasking isn’t always best: focusing on one project at a time
yields better results.

4. Be accountable to someone

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Just like it works better to work out with a partner, according to Brainworks, having
someone be your accountability partner with your schedule can help keep you on track.
Check in with a friend occasionally to discuss what can be improved.

5. Plan for flexibility

This may sound counterintuitive, but events and deadlines will always pop up
unexpectedly and you need to be prepared. Make sure to keep some free time in your
calendar each week to deal with new things that may present themselves.

6. Have a dedicated place to work at home

According to House Method, not having a proper workspace can affect your
productivity and undermine your ability to focus on your work. Make sure the room and space
you’re in has enough natural light and is free of distractions.

7. Take time for self-care

An important part of every schedule is making time for yourself. Schedule time for
exercise, meal planning, shopping for healthy food, and other relaxing activities you enjoy.
You’re not too busy for this—every person needs time to decompress. It will help, not hurt,
your productivity to take breaks.

8. Give yourself grace

No one is perfect, and no one can be perfectly productive all the time. If you fall off the
wagon with your schedule and need to take an evening to binge watch television, take it.
Don’t beat yourself up or give up completely just because you need a break.

Learning outcome 7. Prepare annual development action plan

How do you prepare an annual action plan?

Here's how to write an action plan explained in 6 easy steps.

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Step 1: Define your end goal.
Step 2: List down the steps to be followed.
Step 3: Prioritize tasks and add deadlines.
Step 4: Set Milestones.
Step 5: Identify the resources needed.
Step 6: Visualize your action plan.
Step 7: Monitor, evaluate and update.

Action Plan

Planning on turning your vision into reality? And what’s your best way to avoid
challenges and problems during this journey? A solid action plan.

6 steps explaining how to write an action plan. Once you familiarize yourself with them,
go ahead and use the editable templates below to start planning right away.

What is an Action Plan

An action plan is a checklist for the steps or tasks you need to complete in order
to achieve the goals you have set.

It’s an essential part of the strategic planning process and helps with improving
teamwork planning. Not only in project management, but action plans can be used by
individuals to prepare a strategy to achieve their own personal goals as well.

Components of an action plan include

 A well-defined description of the goal to be achieved
 Tasks/ steps that need to be carried out to reach the goal
 People who will be in charge of carrying out each task
 When will these tasks be completed (deadlines and milestones)
 Resources needed to complete the tasks
 Measures to evaluate progress

What’s great about having everything listed down on one location is that it makes
it easier to track progress and effectively plan things out.

An action plan is not something set in stone. As your organization grows, and
surrounding circumstances change, you will have to revisit and make adjustments to
meet the latest needs.

Why You Need an Action Plan?

Sometimes businesses don’t spend much time on developing an action plan

before an initiative, which, in most cases, leads to failure. If you haven’t heard, “failing
to plan is planning to fail” said Benjamin Franklin supposedly once.
Planning helps you prepare for the obstacles ahead and keep you on track. And with
an effective action plan, you can boost your productivity and keep yourself focused.
Here are some benefits of an action plan you should know;

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 It gives you a clear direction. As an action plan highlights exactly what steps to
be taken and when they should be completed, you will know exactly what you
need to do.
 Having your goals written down and planned out in steps will give you a reason
to stay motivated and committed throughout the project.
 With an action plan, you can track your progress toward your goal.
 Since you are listing down all the steps you need to complete in your action
plan, it will help you prioritize your tasks based on effort and impact.
Improve the way you work with action plans. Stay organized and keep track of
all your projects and goals in one place with Creately.

Create an Action Plan

How to Write an Action Plan?

From the looks of it, creating an action plan seems fairly easy. But there are
several important steps you need to follow with caution in order to get the best out of
it. Here’s how to write an action plan explained in 6 easy steps.

Step 1: Define your end goal

If you are not clear about what you want to do and what you want to achieve,
you are setting yourself up for failure.

Planning a new initiative? Start by defining where you are and where you want
to be.
Solving a problem? Analyze the situation and explore possible solutions before
prioritizing them.

Then write down your goal. And before you move on to the next step, run your goal
through the SMART criteria. Or in other words, make sure that it is

 Specific – well-defined and clear

 Measurable – include measurable indicators to track progress
 Attainable – realistic and achievable within the resources, time, money,
experience, etc. you have
 Relevant – align with your other goals
 Timely – has a finishing date

Use this SMART goals worksheet to simplify this process. Share it with others
to get their input as well.

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And refer to our easy guide to the goal-setting process to learn more about
setting and planning your goals.

Step 2: List down the steps to be followed

The goal is clear. What exactly should you do to realize it?

Create a rough template to list down all the tasks to be performed, due dates
and people responsible.

It’s important that you make sure that the entire team is involved in this process
and has access to the document. This way everyone will be aware of their roles and
responsibilities in the project.

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Make sure that each task is clearly defined and is attainable. If you come across
larger and more complex tasks, break them down to smaller ones that are easier to
execute and manage.

Tips: Use a RACI Matrix template to clarify project roles and responsibilities, and plan
projects

Step 3: Prioritize tasks and add deadlines

It’s time to reorganize the list by prioritizing the tasks. Some steps, you may
need to prioritize as they can be blocking other sub-steps.

Add deadlines, and make sure that they are realistic. Consult with the person
responsible for carrying it out to understand his or her capacity before deciding on
deadlines.

Step 4: Set Milestones

Milestones can be considered mini goals leading up to the main goal at the end.
The advantage of adding milestones is that they give the team members to look
forward to something and help them stay motivated even though the final due date is
far away.

Start from the end goal and work your way back as you set milestones.
Remember not to keep too little or too much time in between the milestone you set.
It’s a best practice to space milestones two weeks apart.

Step 5: Identify the resources needed

Before you start your project, it’s crucial to ensure that you have all the
necessary resources at hand to complete the tasks. And if they are not currently
available, you need to first make a plan to acquire them.

This should also include your budget. You can assign a column of your action
plan to mark the cost of each task if there are any.

Step 6: Visualize your action plan

The point of this step is to create something that everyone can understand at a
glance and that can be shared with everyone.

Whether your action plan comes in the shape of a flowchart, Gantt chart,
or table, make sure that it clearly communicates the elements we have identified so
far – tasks, task owners, deadlines, resources, etc.

This document should be easily accessible to everyone and should be editable.

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Step 7: Monitor, evaluate and update

Allocate some time to evaluate the progress you’ve made with your team.
You can mark tasks that are completed as done on this final action plan, bringing
attention to how you’ve progressed toward the goal.

This will also bring out the tasks that are pending or delayed, in which case you
need to figure out why and find suitable solutions. And then update the action plan
accordingly.

Action Plan Templates

Business action plan

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An action plan is designed to guide your way to accomplishing your goals. It
turns your vision into actionable goals and steps. And it helps you stay focused and
motivated.

264
From an individual employee in an organization to larger departments can make
use of action plans to steer their way towards completing their goals.

Maybe you are about to create your very first action plan, or you are already a
pro in writing them. Either way, we’d like to hear your opinions on how to write an
action plan.

ACTIVITY

Essay: Give your own thought and opinion

1. Explain the role of a disbursement officer.

2. Explain the importance of business plan.
3. Explain the importance of action plan

Application: Create/Write an action plan

FINAL EXAMINATION WEEK

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Prepared by: Checked by:

SUZETTE L. SARNO IVONY G. TANTIADO

Instructor Program head

269
Attested by: Noted by:

270
SIBUGAY TECHNICAL INSTITUTE INCORPORATED
Lower Taway, Ipil, Zamboanga Sibugay
www.sibugaytech.edu.ph
Email Address: [email protected]
Telefax: (062)222 - 2469 , Mobil e No.: 09285033733

(COLLEGE)
CHED ACCREDITED COURSES

271
SIBUGAY TECHNICA L INSTITUTE INCORPORATED
Lower Taway, Ipil, Zamboanga Sibugay www.sibugaytech.edu.ph
Email Address: [email protected]
Telefax: (062)222-2469, Mobile No.: 09285033733

( COLLEGE ) STII TRAINING CENTER

CHED ACCREDITED COURSES

 AGRICULTURAL CROPS PRODUCTION NC II

 ANIMAL PRODUCTION (POUTRY CHICKEN) NC II
 ANIMAL PRODUCTION (RUMINANTS) NC II
 ANIMAL PRODUCTION (SWINE) NC II
 BARTENDING NC II
 BOOKKEEPING NC III
 BREAD & PASTRY PRODUCTION NC II
 CAREGIVING NC II
 DRIVING NC II
 ELECTRONIC PRODUCTS ASSEMBLY SERVICING NC II
 EVENTS MANAGEMENT SERVICES NC III
 FOOD AND BEVERAGE SERVICES NC II
 FRONT OFFICE SERVICES NC II
 HEAVY EQUIPMENT OPERATOR (HYDRAULIC EXCAVATOR) NC II
 HOUSEKEEPING NCII
 MOTORCYCLE/SMALL ENGINE SERVICING NC II
 ORGANIC AGRICULTURE PRODUCTION NC II
 PHARMACY SERVICES NC III
 RUBBER PRODUCTION NC II
 SHIELDED METAL ARC WELDING NC I
 SHIELDED METAL ARC WELDING NC II
 TRAINERS METHODOLOGY COURSE
 SHIELDED METAL ARC WELDING NC II
 AUTOMOTIVE SERVICING NC I
 AUTOMOTIVE SERVICING NC II
 HEALTH CARE SERVICES NC II
 HEAVY EQUIPMENT OPERATOR (BACKHOE LOADER) NC II
 MOTORCYCLE/SMALL ENGINE SERVICING NC II
 CAREGIVING NC II
 BARTENDING NC II

272
SIBUGAY TECHNICA L INSTITUTE INCORPORATED
Lower Taway, Ipil, Zamboanga Sibugay www.sibugaytech.edu.ph
Email Address: [email protected]
Telefax: (062)222-2469, Mobile No.: 09285033733

SENIOR HIGH SCHOOL

Voucher
INDUSTRIAL ARTS Program
 DRIVING NC II
 SHIELDED METAL ARC WELDING NC II
 AUTOMOTIVE SERVICING NC I
 AUTOMOTIVE SERVICING NC II
HOME ECONOMICS
 FRONT OFFICE SERVICES NC II
 HOUSEKEEPING NC II
 FOOD AND BEVERAGES SERVICES NC II
 BREAD AND PASTRY PRODUCTION NC II
INFORMATION AND COMMUNICATION TECHNOLOGY
 2D ANIMATION NC III
 COMPUTER SYSTEM SERVICING NC II
 ELECTRONIC PRODUCTS ASSEMBLY SERVICES NC II
AGRICULTURAL TECHNOLOGY STRAND
 ANIMAL PRODUCTION (POULTRY CHICKEN) NC II
 ANIMAL PRODUCTION (RUMINANTS) NC II
 ANIMAL PRODUCTION (SWINE) NC II
 RUBBER PRODUCTION NC II
 ORGANIC AGRICULTURAL PRODUCTION NC II
ACADEMIC TRACK
HUMANITIES AND SOCIAL SCIENCES
 FRONT OFFICE SERVICES NC II
 EVENTS MANAGEMENT NC III
ACCOUNTANCY BUSINESS AND MANAGEMENT
 BOOKKEEPING NC III
SCIENCE, TECHNOLOGY, ENGINEERING AND MATHEMATICS
 ELECTRONIC PRODUCTS ASSEMBLY SERVICING NC II

273