Messages: Meaning, Importance, Objectives

A message is a discrete unit of communication intended by the source for consumption by some recipient or group of recipients. A message may be delivered by various means, including courier, telegraphy, carrier pigeon and electronic bus. A message can be the content of a broadcast. An interactive exchange of messages forms a conversation.

One example of a message is a press release, which may vary from a brief report or statement released by a public agency to commercial publicity material.

Corporate messaging comprises the core message of a company and all of the methods used to get that message into the minds of consumers and stockholders. Companies use corporate messaging hand in hand with public relations to develop and maintain company branding. Without a central corporate message, investors and consumers might wonder what the goals and motivation of the company are. Small businesses use the same corporate messaging techniques to solidify their position in their market and inform the community in which they operate.

Importance

Shows transparency to employees

Employees are savvier these days. They expect more out of their employers and have greater access to learn about a potential employer. Think about online reviews from other employees, chat groups about companies, and friends touting one company over another on social media. So with all these external factors, it’s important that companies create transparency through corporate communications.

Builds strong internal teams

When you work eight or more hours a day with people, you want good co-workers. The importance of corporate communication in day to day operations is paramount. For example, you have a large product rollout and some team members are holding up the process and missing deadlines. The CEO wants to know why your team is behind and now the entire team is held accountable. Or a manager receives new direction on a project and forgets to tell the team what the new goal is. So, the team members miss the mark on achieving the new goal. These, examples of lack of corporate communication led to frustrated employees. And in return, you either start having “checked out” employees who no longer want to perform or worse high employee turnover which leads to bad company reviews. And this can affect getting great talent to join your organization in the future.

Keeps messaging consistent to customers

If you work for a larger company, you may have a corporate communications department for external audiences like customers and stakeholders and maybe an internal communications department for employee communications. Or if you have a smaller company where one person is dealing with all communications, different messaging may be created for external and internal audiences.

The importance of corporate communication is to keep messaging consistent to not only your employees but your external audiences. If you forget to communicate with your customers in the same fashion as your employees, your company brand and mission gets lost. Customers don’t know what you stand for or why they should choose you over one of your competitors.

Objectives

Internal Audience

Maintaining effective communication within your own company is important in avoiding confusion that can affect morale and productivity. Your internal communication objective should be to develop a network that gets important information to staff members accurately and efficiently. The managerial staff needs procedures in place that release information only after it has been confirmed to avoid conflicting internal messages.

Consistency

A business communication plan creates consistency in the message that is important to maintaining the company’s public image. All correspondence that goes out to the media outlets will contain the same message, and the internal audience of employees and managerial staff will also understand the information the company is releasing.

Presentation

Corporate public relations is a precise process. The message that is released by the company is reviewed by managers, executives and the legal team to make sure the company is properly represented. An important objective of business communication is determining who will release the information, how it will be presented and when it should be revealed.

Media Outlets

Your marketing department does a comprehensive analysis of each media outlet and determines which outlets reach particular target markets. Releasing information to all media outlets will get your message out to the public, but you can use the media analysis to create targeted messages that will reach your intended audience and make a greater impact. For example, if you are releasing a new video game, then your marketing department will tell you that certain video game magazines tend to reach your target audience better than other forms of media.

Speech of introduction of a Speaker

Reason

  • It shows respect for the speaker
  • It settles the audience down and gets them focused on the stage.
  • Alternatively, it can hype the audience up and get them excited about what they are going to experience
  • It gives a chance for the Production crew to correct the sound levels, lights and be ready with any audio/visual cues.
  • It lets the audience know who this person is before they start, in case there is no printed program.
  • It can link the content or the message of the speaker to the theme of the event.
  • It can emphasise why this message is important to the group and why they should listen
  • It can show why this person is qualified to speak about the topic and share their insights
  • It can allow the speaker to get straight into the meat of their presentation.

The introducer’s job is to:

  • Remind the audience why the topic is important to them
  • Establish the speaker’s qualifications to speak on the topic
  • Get the presentation off on a high note by establishing an up-beat tone
  • Make the speaker feel especially welcome

Technical Speech & Non-Technical Presentation

Technical Speech

A technical speech is a speech given by an expert to an audience of experts. It’s not expected that members of the general public will attend or understand the speech. The speaker can assume a general understanding of basic ideas in the audience, and does not need to explain basic concepts.

A technical speech is one which provides information or presents an idea to a specialized group. For example, describing the design and/or function of a “data warehouse” to other Information Technology folks.

Technical presentations serve engineering, scientific and high-tech purposes, describing advances in technology, problem resolution, product design and project status. In general, technical presentations serve one of two purposes:

(1) To inform (e.g., knowledge transfer, classroom instruction)

(2) To persuade (e.g., convincing others to adopt a design approach or accept the results of an evaluation process).

Technical presentation is meaning less most of the time when non-technical presentation is not there because when we are informing to the people about anything but sometimes, they don’t understand because of Symantec barrier but if there is one video or slides which shows about the topic weather it is in the form of written or in animation video it will clearly understand to the other person.

Characteristics

  • The use of statistics: this may not be compulsory, depending on the subject matter. Nevertheless, if the report is based on some research findings, there will always be need to present the data in tables and graphs. This will help the audience to easily grasp what is being discussed. Here, it should be noted that statistics should not be used for the sake of impressing the audience; rather, it should be used for the sake of simplifying the information being presented. The use of statistics in technical speech will be discussed in details subsequently.
  • There is opportunity for questions or contributions: this is one of the few types of speeches that allow the audience to ask questions from the presenter after the presentation. Because it involves sharing professional knowledge, there is also an opportunity for fellow professionals or senior colleagues to make contributions. During the Annual General Meetings (AGM) of corporations, the President of the organisation makes a presentation on the activities of the company for the past one year. The accountant also presents the financial details of the report. Copies of the reports are given to the stakeholders because these presentations are technical in nature. After listening to the speeches and carefully studying the documents, the listeners are encouraged to seek for clarification in any area that such is desired.
  • The use of technical aids: though it may seem obvious, it is still important to mention that the “technical” in the name of the speech does not only refer to the complexity of the idea being discussed; it also refers to the technical assistance needed for conveying the message. Because of the nature of the speech, there is usually the need to substantiate the abstract idea being discussed. Hence, technical aids such as handouts and multi-media presentations are needed for easy dissemination of the information. The handouts are usually distributed to the audience so that they can follow the presentation and also make meaningful contribution.
  • Research based: one of the major characteristics of a technical speech is that it is research based. This is not just about the background information you gather so as to enrich your speech; the speech itself is a scientific (so to speak) report. You must have conducted an inquiry in your field and you wish to share the findings with your peers. You may be given the task of assessing the performance of your company’s products in the market. Or, you may be asked to create a new brand for the Nigerian market.

Non-Technical Presentation

Speech of Vote of Thanks, Occasional Speech, Theme Speech

Vote of Thanks

A vote of thanks speech is a well-authorized speech where the speaker offers a vote of thanks to the organizer, host, and other participants. No event can be successful without people who dedicate their resources and time to make sure everything is faultless. Like any other crucial meetings organized in schools and colleges, a vote of thanks speech is also vital for association meeting in college. It’s helpful to publicly let everyone know the roles and responsibilities and express your gratitude.

A good vote of thanks speech for association meeting should include:

  • Thanks to all the people who helped me either directly or indirectly, to make the meeting successful.
  • Thanks to all the participants for attending the meeting, and more.

Keep the following points in mind while giving a vote of thanks speech:

  • Your first sentence should let the participants know you are thanking them.
  • In 1 to 2 sentences, tell the audience why you have been asked to give a vote of thanks speech.
  • Start your speech by showing gratitude to your honorable guest, host, and audience.
  • Try to keep each thank-you brief, but honest and warm.
  • By sure to remark any work that benefitted your college and then add in it your thank speech.
  • You can add your belief that the concerned group of people and your college hold good ties in the future.
  • Show the speakers that you were actively listening to their words. Add some reference what they said, and that stuck with you.
  • At the end of the vote of thanks speech, talk about what makes your college special.
  • Thank the head for the opportunity of giving thanks speech on behalf of their college.

Occasional Speech

A speech of introduction introduces the main speaker at an event and inspires the audience to listen to that speaker. Any speech of introduction needs to be brief. After all, the person making the introduction should not be the focus of attention. The introductory speech usually has three components:

(a) Provide a brief backdrop or background of the main speaker

(b) Introduce the speaker’s topic.

(c) An invitation from the audience to warmly welcome the speaker.

Commemorative speeches and tributes are speeches that pay special accolades to an occasion, extraordinary person, event, idea, or monument. The purpose or scope of this speech is to reflect the emotions felt by the audience as well as underscore the reasons for the speaking event. Delivering a tribute and commemorative speech involves careful attention to language. These speeches are intended to inspire the audience, and the use of the richness of language should serve to evoke the appropriate emotions within the audience as well as the honored persons.

Tributes and commemorative speeches have certain characteristics. First, they are short and eloquent (Letteri, 1997). In most cases, this speech should be one to five minutes long, which means the words should be chosen carefully and efficiently for impact. Second, these speeches are written to anticipate the emotional needs of the audience. There is a difference between the need to be festive and the need to grieve, and the speech should contain language that conveys the appropriate feelings. Rather than focus on a great deal of information about the person, event, or thing being honored, the speech should make reference to the emotions of the audience and respect those emotions; whether directly or indirectly. When the speaking occasion is honoring a person, the speech’s content should contain a balance between the professional and personal accomplishments of the honoree. While the speech should emphasize the person’s professional work, his or her personal activities.

Theme Speech

E-Meeting

An e-meeting is a meeting between at least two people who can see each other but are not in the same place. An e-meeting is a web-based meeting or conference format that allows people to see and hear each other. They can hear each other through VoIP. VoIP stands for Voice Over Internet Protocol. Participants talk in real time and may even make presentations with visual aids such as charts and graphs.

The term e-meeting stands for ‘electronic meeting.’ We also call it an online meeting or virtual meeting. A virtual meeting, however, may also refer to a meeting with an artificial intelligence or fictitious character.

An electronic meeting system (EMS) is a type of computer software that facilitates creative problem solving and decision-making of groups within or across organizations. The term was coined by Alan R. Dennis et al. in 1988. The term is synonymous with group support systems (GSS) and essentially synonymous with group decision support systems (GDSS). Electronic meeting systems form a class of applications for computer supported cooperative work.

Mainly through (optional) anonymization and parallelization of input, electronic meeting systems overcome many deleterious and inhibitive features of group work.

Similar to a web conference, a host invites the participants to an electronic meeting via email. After logging into the session, meeting attendees participate primarily through their keyboards, typing responses to questions and prompts from the meeting host.

Electronic meeting systems have been designed to enhance group effectiveness, efficiency and satisfaction. Face-to-face groups can suffer from a number of process losses including:

  • Domination of the conversation by one or more members
  • Individuals withholding comments for fear of criticism or negative evaluation
  • Members failing to participate because they perceive that their input is not required
  • Pressure to conform with senior members of the group

Consequently, the advantages of EMS supported meetings vs traditional face-to-face meetings and workshops are:

  • Increased openness and less personal prejudice through anonymity
  • Any-place (online) capability which avoids travel time and cost
  • Increased participant availability (any place, any time).
  • Increased interactivity and participation by parallelization
  • More sophisticated analysis by voting and analysis in real time
  • Less effort in preparation by using meeting templates
  • Repeatable meeting and workshop process through meeting templates
  • Automatic, comprehensive, neutral documentation

Importance

Recorded meetings. There’s something inherently repetitive about the old boardroom meeting. It’s like, “Didn’t we just discuss that last week? Why are we talking about it again?” Fortunately, online meetings right that wrong by providing the easy option to record each conference, thereby ensuring that any potential overlap from week to week can be mitigated via a simple review of the last recorded meeting.

Time saved. When a company decides to conduct a physical meeting, time needs to be spent booking a conference room, planning for the event itself, and then waiting on the inevitable late-comers who will delay the start of the meeting. But online meetings eliminate these time-wasting moments by offering easy-to-use Web conferencing that workers can access from the comfort of their desk. This remote access also allows people who aren’t physically in the office to participate in meetings, as business.com points out.

Forward thinking. With the broad availability of cloud solutions, organizations are increasingly occupying the virtual realm. For this reason, the adoption of online meetings is only in keeping with a wider business move toward a virtual infrastructure.

Overall productivity boosts. For businesses that have work-from-home policies, the availability of online meetings promises significant productivity increases, as web-meetings points out. That’s because workers who are doing their job from home won’t have to drive into the office on meeting days, which means that the time they save driving is time that can go toward boosting enterprise productivity.

Meeting Opening and Closing Meetings

Opening

Small Talk

Whether you are holding the meeting or attending the meeting it is polite to make small talk while you wait for the meeting to start. You should discuss things unrelated to the meeting, such as weather, family, or weekend plans.

Objectives

Some people who hold meetings prefer to pass around copies of the agenda, and others will post a large copy on a wall, or use an overhead projector. No matter which format is used, attendees should be able to follow the agenda as the meeting progresses. Before beginning the first main item on the agenda, the speaker should provide a brief verbal outline the objectives.

Draft opening remarks for a business meeting. Decide on a meeting format before you begin to plan any opening statements. Business and board meetings should have more formal opening remarks to acknowledge the attending members. Keep opening words short for more casual meetings, especially when the attendees have an allotted time to introduce themselves.

State the purpose of the meeting clearly. Make sure that all of the meeting’s attendees understand what you will be discussing. It will be much harder for people to focus if you don’t establish a clear goal or purpose. Let them know what to expect after you ‘ve greeted them.

  • In a business setting, you can state say something like: “The purpose of this meeting is to figure out a way to trim this quarter’s budget.”
  • For more casual settings, you might stay, “Let’s share our thoughts and experiences on this issue.”

Follow an agenda to avoid any confusion. Review what the meeting will cover before jumping into any new conversations. Different topics can lead to different discussions, which can quickly spiral off topic if you aren’t following a planned agenda. Having an agenda helps to keep the meeting on track and on topic, and gives attendees a way to monitor how long the meeting goes.

Clearly state if a certain part of the agenda only applies to one person. To avoid any confusion in the meeting, establish who is in charge of which task. For example, say, “John will be handling all of the budget paperwork. Talk to him if you have any questions.”

Closing

To ensure you close your meeting effectively, apply these four tips:

  1. Add the meeting’s closure to the agenda

If you are presiding the meeting, make sure the closure appears on the agenda and highlight it as important. Allot the final 5 minutes of the meeting this process, taking note that it needs to be done within the meeting timeframe.

  1. Quickly run through the outcomes

As the speaker, try to acknowledge whether the desired outcomes have been achieved. Make sure that you get commitment from the tasks and that each task is assigned to a participant with a target date of accomplishment.

  1. Encourage everyone to communicate

Initiate interaction by asking open-ended questions like “Is there anything you want to add before we conclude the meeting?”

The questions can take a general or specific approach. The essence of this tip is to make every participant feel connected. It implies that you value their opinion and that will surely boost their confidence.

  1. Take note of the key takeaways

Insightful ideas come up when the speaker encourages everyone to participate. Make sure that these key takeaways are captured and noted. Also, do not forget to share them in the meeting notes for future meetings and recommendations.

Without an effective closure process, participants may end up confused and frustrated because they are not able to say what is on their minds. This may cause negative effects to the participants and ultimately, to the outcome of the agenda.

Social etiquettes

Etiquette is the set of conventional rules of personal behaviour in polite society, usually in the form of an ethical code that delineates the expected and accepted social behaviours that accord with the conventions and norms observed by a society, a social class, or a social group.

Social etiquette is exactly how it sounds, it refers to the behavior you resort to in social situations interactions with your family, friends, coworkers or strangers. We’re expected to follow social norms in order to coexist and live in harmony.

Social etiquette influences how others perceive and treat you. It can help you create lasting impressions that establish trust and reliance. Practicing good social manners not only help you build lifelong relationships; it also helps you create fruitful opportunities.

Social manners are in three categories:

(i) Manners of hygiene

(ii) Manners of courtesy

(iii) Manners of cultural norm

Each category accounts for an aspect of the functional role that manners play in a society. The categories of manners are based upon the social outcome of behaviour, rather than upon the personal motivation of the behaviour. As a means of social management, the rules of etiquette encompass most aspects of human social interaction; thus, a rule of etiquette reflects an underlying ethical code, and can reflect a person’s fashion and social status.

(i) Hygiene Manners: The manners that concern avoiding the transmission of disease, and usually are taught by the parent to the child by way of parental discipline, positive behavioural enforcement of body-fluid continence (toilet training), and the avoidance of and removal of disease vectors that risk the health of children. To that effect, society expects that, by adulthood, the manners for personal hygiene have become a second-nature behaviour, the violations of which shall provoke physical and moral disgust.

(ii) Courtesy Manners: The manners of self-control and good-faith behaviour, by which a person gives priority to the interests of another person, and priority to the interests of a socio-cultural group, in order to be a trusted member of that group. Courtesy manners maximize the benefits of group-living, by regulating the nature of social interactions; however, the performance of courtesy manners occasionally interferes with the avoidance of communicable disease. Generally, parents teach courtesy manners in the same way they teach hygiene manners, but the child also learns manners directly (by observing the behaviour of other people in their social interactions) and by imagined social interactions (through the executive functions of the brain). A child usually learns courtesy manners at an older age than when he or she was toilet trained (taught hygiene manners), because learning the manners of courtesy requires that the child be self-aware and conscious of social position, which then facilitate understanding that violations (accidental or deliberate) of social courtesy will provoke peer disapproval within the social group.

(iii) Cultural Norm Manners: The manners of culture and society by which a person establishes his and her identity and membership in a given socio-cultural group. In observing and abiding the manners of cultural norm, a person demarcates socio-cultural identity and establishes social boundaries, which then identify whom to trust and whom to distrust as “the other”, who is not the self. Cultural norm manners are learnt through the enculturation with and the routinisation of “the familiar”, and through social exposure to the “cultural otherness” of people identified as foreign to the group. Transgressions and flouting of the manners of cultural norm usually result in the social alienation of the transgressor. The nature of culture-norm manners allows a high level of between-group variability, but the manners usually are common to the people who identify with the given socio-cultural group.

Types:

Virtual Meeting Etiquette

Work from home has become the new normal for most businesses today and virtual meetings have become a part of daily work routine. Here are a few tips to help you maintain proper social etiquette during online meetings:

  • Dress for success! Wearing appropriate attire can help you feel confident. It also shows that you pay attention to details and it’ll impress your audience.
  • Mute your microphone when you’re not speaking. It ensures that there’s no echo and you don’t disrupt the flow of meetings.
  • It may be tempting to check your phone but try to stay present and active. Participate in discussions and show anyone who’s speaking that you’re respectfully listening to them.

Social Media Etiquette

Social etiquette also extends to social media and online communication. Here are some ways to ensure proper conduct on social media platforms:

  • If someone doesn’t accept your friendship or follow requests, leave them be. If it’s important to connect with someone, message them and state your purpose.
  • Avoid posting insensitive content on your social media handles. If you make a mistake, own up and apologize.
  • Always get consent if you want to share someone else’s information, photos or content. Before tagging someone in a post or photograph, check if they’re comfortable with it.

Face-To-Face Etiquette

Face-to-face interactions aren’t always easy. Here are a few etiquette practices to follow when you meet someone:

  • Use your full name to introduce yourself and greet the other person. You can simply use ‘hello, nice to meet you’ to break the ice. A smile and a firm handshake make it easier to build rapport.
  • Pay attention to your body language so that you don’t come off as rude or unprofessional. Good posture, eye contact and a confident attitude can make a huge difference.
  • One of the most important aspects of social etiquette is paying attention to people. Never interrupt anyone mid-sentence and always listen respectfully.

Techniques of Eliciting Response, Probing Questions, Observation

Eliciting Response

An elicitation technique is any of a number of data collection techniques used in anthropology, cognitive science, counseling, education, knowledge engineering, linguistics, management, philosophy, psychology, or other fields to gather knowledge or information from people. Recent work in behavioral economics has purported that elicitation techniques can be used to control subject misconceptions and mitigate errors from generally accepted experimental design practices. Elicitation, in which knowledge is sought directly from human beings, is usually distinguished from indirect methods such as gathering information from written sources.

A person who interacts with human subjects in order to elicit information from them may be called an elicitor, an analyst, experimenter, or knowledge engineer, depending on the field of study.

Elicitation techniques include interviews, observation of either naturally occurring behavior (including as part of participant observation) or behavior in a laboratory setting, or the analysis of assigned tasks.

List of elicitation techniques

  • Interviews
  • Existing System
  • Project Scope
  • Brain Storming
  • Focus Groups
  • Exploratory Prototypes
  • User Task Analysis
  • Observation
  • Surveys
  • Questionnaire
  • Story Board

Probing Questions

These questions are useful for gaining clarification and encouraging others to tell you more information about a subject. Probing questions are usually a series of questions that dig deeper and provide a fuller picture. For example: ‘when do you need the finished project, and is it ok if I email it to you?’

Asking probing questions is another strategy for finding out more detail. Sometimes it’s as simple as asking your respondent for an example, to help you understand a statement that they have made. At other times, you need additional information for clarification, “When do you need this report by, and do you want to see a draft before I give you my final version?” Or to investigate whether there is proof for what has been said, “How do you know that the new database can’t be used by the sales force?”

Useful for: seeing the bigger picture, encouraging a reluctant speaker to tell you more information, and avoiding misunderstandings.

Observation

In marketing and the social sciences, observational research (or field research) is a social research technique that involves the direct observation of phenomena in their natural setting. This differentiates it from experimental research in which a quasi-artificial environment is created to control for spurious factors, and where at least one of the variables is manipulated as part of the experilovement.

Data collection methods

Generally, there are three methods used to collect data in observational research:

Covert observational research: The researchers do not identify themselves. Either they mix in with the subjects undetected, or they observe from a distance. The advantages of this approach are:

(1) It is not necessary to get the subjects’ cooperation.

(2) The subjects’ behaviour will not be contaminated by the presence of the researcher. Some researchers have ethical misgivings with the deceit involved in this approach.

Overt observational research: The researchers identify themselves as researchers and explain the purpose of their observations. The problem with this approach is subjects may modify their behaviour when they know they are being watched. They portray their “ideal self” rather than their true self in what is called the Hawthorne Effect. The advantage that the overt approach has over the covert approach is that there is no deception.

Participant Observation: The researcher participates in what they are observing so as to get a finer appreciation of the phenomena.

The Cross-Cultural Dimensions of Business Communication

Cross-cultural communication occurs when a person from one culture sends a message to a person from another culture. Cross-cultural miscommunication occurs when the person from the second culture does not receive the sender’s intended message. The greater the differences between the sender’s and the receiver’s cultures, the greater the chance for cross-cultural miscommunication.

Cross-cultural communication has become strategically important to companies due to the growth of global business, technology and the Internet. Understanding cross-cultural communication is important for any company that has a diverse workforce or plans on conducting global business. This type of communication involves an understanding of how people from different cultures speak, communicate and perceive the world around them.

Cross-cultural communication in an organization deals with understanding different business customs, beliefs and communication strategies. Language differences, high-context vs. low-context cultures, nonverbal differences, and power distance are major factors that can affect cross-cultural communication.

Geography

In a time of international corporations and foreign outsourcing, business teams are spanning continents. Employees in the Americas may find themselves working closely with people in India, Japan and France all at once. Finding common ways of working together can be challenging especially when communication is primarily through email and occasional video conferences. Companies that elect to outsource and operate international offices have to consider guidelines, protocols and significant education on communication and working together. Otherwise, employees can easily find themselves struggling to work together, and productivity suffers.

Considerations

When conducting business internationally, entrepreneurs learn that cultures have different expectations and protocols when it comes to meetings and interpersonal discussions. Cultures such as those of Japan and China have strong power distance values, and much of the speaking and interaction is done by the most senior member of a group. In fact, it may be inappropriate for someone lower in your organization to speak to a leader in theirs. Middle Eastern and Southeast Asian cultures consider socialization and getting to know one another a very important part of in-person meetings. Therefore, the American standard of “getting down to business” may hit a wall with cultures that consider building trust between parties essential to the business process.

Misconceptions

Phrases and ideas don’t always translate. Numerous companies have found that selling their products in foreign markets has meant changing slogans and branding strategies to meet the tastes of a new target demographic. For example, in many third-world countries, fast-food restaurants are actually expensive to the local population. The low-cost and good value strategies often used in the United States have to be changed to present fast food as a premium product. In another example, products that may be sold with sexually themed or suggestive marketing in North America and European countries may have to be revamped for sales in Middle Eastern and Asian countries where such messages are offensive.

Effects

A diverse population means adapting sales and marketing communications to the various populations that make up the United States. Many companies recognize that varying demographics in different cities, regions and even neighborhoods mean having to come up with different communication approaches. As a result, you may notice billboards in Spanish in some neighborhoods or a national retail chain using more television advertising in one region and more print ads in another.

Impact

Misinterpretations: Expressions and thoughts don’t generally decipher. Various organizations have discovered that selling their items in remote markets has implied changing motto and marking procedures to meet the flavors of another objective statistic. For instance, in some underdeveloped nations, drive-through joints are really costly to the nearby populace. The minimal effort and great esteem procedures regularly utilized in the United States must be changed to exhibit inexpensive food as a top-notch item. In another model, items that may be sold with explicitly themed or suggestive promoting in North America and European nations may be patched up for deals in Middle Eastern and Asian nations where such messages are hostile.

Consideration: When leading business globally, business people discover that cultures have different desires and conventions with regard to gatherings and relational dialogues. Cultures, for example, those of Japan and China have solid power separate qualities, and a significant part of the talking and connection is finished by the most senior individual from a gathering. Indeed, it may be wrong for somebody lower in your organization to address a pioneer in theirs. Center Eastern and Southeast Asian cultures think about socialization and becoming more acquainted with each other a significant piece of face to face gatherings. Thus, the American standard of “getting serious” may reach a stopping point with cultures that consider building trust between gatherings basic to the business procedure.

Barriers to Effective Multicultural Communication

Obviously, not all cultures are similar. Some find the daily challenges of responding to another culture to be too stressful and overwhelming. If possible, such individuals will choose to return to their cultural origin; if they cannot do so, various kinds of maladaptive adjustments, or even mental illness, can occur. People misunderstand each other for a wide variety of reasons, and these misunderstandings can occur between people who are culturally similar as well as those who are different and for the communication to be effective it is important that message should be decoded with the perception of the encoder.

Reasons

  1. Formation of “US” and “THEM” Groups

The step in the development of stereotypes is the categorisation of people in to two groups: “us” (in-group) and “them” (out-group). This happens all the time, and we often don’t realise it. The groups are formed along a wide variety of diversity dimensions such as race/ethnicity, gender, age, nationality, religion, geographic location, family status, socioeconomic status, sexual orientation and physical characteristics.

  1. Preference for the In-group

The second step consists of the natural tendency to prefer the group of which one is a member (in-group). It makes sense that we would come to prefer the group that we are constantly a part of. These bonds are usually drawn based on geography and the community.

  1. Illusion of Out-group Homogeneity

The third step is where actual stereotyping takes place. Simply stated, we tend to perceive members of out-group to be more like one another than members of our in-group. This is probably because we have the opportunity to directly experience the diversity within the in-group while we have limited experience interacting with members of the out-group.

  1. Lack of Understanding: Another major barrier is the lack of understanding that is frequently present between people from different backgrounds and this barrier is very common among the cross-culture people. Because people may have differences in values, beliefs, methods of reasoning, communication styles, work styles, and personality types, communication difficulties will occur. In order to avoid this barrier, each party must have a clear and accurate understanding of the thoughts, feelings, ideas, values, styles, desires and goals of other person and many of us are not very effective at getting to understand the ways in which others may differ.
  2. Judgmental Attitudes: The third major barrier includes the judgmental attitudes of us have when it comes to interacting with people who are different. Because all the time we interact with other culture people; we set the standard of our culture and compare with it. Most of us would like to believe we are open minded and accepting. But in reality, a great many of us find discomfort with those who are different in terms of values, beliefs and behaviours. We may then evaluate them in a negative light. This is the essence of ethnocentrism, where we evaluate good and bad, right and wrong relative to how closely the values, behaviours and ideas of others mirror our own. We must suspend judgment about their ways, and try to get to understand them from their perspective.

High- vs. Low-Context Culture

The concept of high- and low-context culture relates to how an employee’s thoughts, opinions, feelings, and upbringing affect how they act within a given culture. North America and Western Europe are generally considered to have low-context cultures. This means that businesses in these places have direct, individualistic employees who tend to base decisions on facts. This type of businessperson wants specifics noted in contracts and may have issues with trust.

High-context cultures are the opposite in that trust is the most important part of business dealings. There are areas in the Middle East, Asia and Africa that can be considered high context. Organizations that have high-context cultures are collectivist and focus on interpersonal relationships. Individuals from high-context cultures might be interested in getting to know the person they are conducting business with in order to get a gut feeling on decision making. They may also be more concerned about business teams and group success rather than individual achievement.

Jack and Yamato ran into some difficulties during their business negotiations. Jack spoke quickly and profusely because he wanted to seal the deal as soon as possible. However, Yamato wanted to get to know Jack, and he felt that Jack spoke too much. Yamato also felt that Jack was only concerned with completing the deal for his own self-interest and was not concerned with the overall good of the company. Jack’s nonverbal cues did not help the negotiations either.

Nonverbal Differences

Gestures and eye contact are two areas of nonverbal communication that are utilized differently across cultures. Companies must train employees in the correct way to handle nonverbal communication as to not offend other cultures. For example, American workers tend to wave their hand and use a finger to point when giving nonverbal direction. Extreme gesturing is considered rude in some cultures. While pointing may be considered appropriate in some contexts in the United States, Yamato would never use a finger to point towards another person because that gesture is considered rude in Japan. Instead, he might gesture with an open hand, with his palm facing up, toward the person.

Pre-Acquisition Profits, Post Acquisition Profits

Pre-acquisition profits refer to the profits earned by a subsidiary company before the date it is acquired by the holding company. These profits are considered capital profits because they are not earned under the ownership of the holding company. They usually arise from the period prior to acquisition, including undistributed reserves, retained earnings, and surplus existing at the acquisition date. In consolidation, pre-acquisition profits are not available for dividend distribution to shareholders of the holding company. Instead, they are transferred to the Capital Reserve or used to adjust the cost of investment. Their correct identification is crucial for accurate consolidation and fair presentation of financial statements.

Scope of Pre-Acquisition Profits:

  • Treatment as Capital Profits

Pre-acquisition profits are treated as capital profits because they are earned before the holding company acquires the subsidiary’s shares. These profits are not the result of the holding company’s efforts; rather, they belong to the period before control was obtained. In the consolidated balance sheet, they are not available for dividend distribution to the holding company’s shareholders. Instead, they are credited to the capital reserve or used to adjust the purchase consideration. This classification ensures correct separation between capital and revenue profits, maintaining transparency and compliance with accounting principles in group accounts.

  • Adjustment of Purchase Price

One of the main uses of pre-acquisition profits is to adjust the purchase price of the subsidiary. If the profits existed at the time of acquisition, the holding company effectively paid for them as part of the share price. Therefore, they are considered part of the capital value acquired. These profits can be deducted from goodwill or added to capital reserve in the consolidated balance sheet. This ensures that the purchase consideration reflects the fair value of net assets, preventing double-counting of earnings and ensuring the acquisition cost is correctly represented in the financial statements.

  • Creation of Capital Reserve

Pre-acquisition profits are often transferred to the capital reserve in the consolidated financial statements. This strengthens the company’s capital structure and improves the net worth of the group. Such reserves are not distributable as dividends because they represent capital gains rather than operational earnings. They can, however, be used for purposes allowed under company law, such as issuing bonus shares or writing off capital losses. This treatment safeguards shareholders’ funds and ensures that profits from pre-acquisition periods are utilized in a manner consistent with their nature as capital rather than revenue.

  • Goodwill Adjustment

When goodwill arises on consolidation, pre-acquisition profits may be used to reduce its amount. This is because the value of these profits was already factored into the price paid for the subsidiary. By adjusting goodwill with pre-acquisition profits, the financial statements present a more accurate picture of the investment’s value. This process reduces the risk of overstating intangible assets on the balance sheet. It also ensures that goodwill only reflects the true excess paid over the fair value of net assets, excluding profits that were already earned before the acquisition date.

  • Non-Distribution as Dividends

Pre-acquisition profits cannot be distributed as dividends to the holding company’s shareholders, as they are considered capital in nature. Distributing them would amount to returning part of the invested capital, which is not allowed under company law. Instead, these profits are retained in reserves or used for capital purposes. This restriction ensures the preservation of the company’s financial integrity and compliance with statutory requirements. By preventing the misuse of such profits, the holding company safeguards its long-term capital position while maintaining fairness in the distribution of actual revenue-based earnings to shareholders.

  • Use in Writing Off Capital Losses

Pre-acquisition profits can be used to write off capital losses such as preliminary expenses, share issue expenses, or discount on issue of shares or debentures. This application helps clean up the balance sheet and improve the group’s financial position. Since these profits are capital in nature, using them to offset capital losses aligns with proper accounting treatment. This use also prevents erosion of revenue profits, which can then be distributed as dividends or reinvested. The careful application of pre-acquisition profits in this manner supports prudent financial management and enhances investor confidence.

Accounting Treatment of Pre-Acquisition Profits:

Situation Journal Entry Explanation
1. When pre-acquisition profit is treated as Capital Reserve Profit & Loss A/c (Pre-acquisition) Dr.
  To Capital Reserve A/c
Pre-acquisition profits are capital in nature, credited to Capital Reserve in consolidated accounts.
2. When pre-acquisition profit is treated as Goodwill Reduction Goodwill A/c Dr.
  To Profit & Loss A/c (Pre-acquisition)
Used to reduce the amount of goodwill arising on consolidation.
3. When pre-acquisition loss exists and treated as Goodwill Addition Goodwill A/c Dr.
  To Profit & Loss A/c (Pre-acquisition)
Pre-acquisition losses are capital losses, added to goodwill in consolidation.
4. When pre-acquisition profit is distributed as dividend Bank A/c Dr.
  To Investment A/c
Dividend out of pre-acquisition profits is treated as return on investment, reducing the cost of investment.
5. When pre-acquisition loss is adjusted against Capital Reserve Capital Reserve A/c Dr.
  To Profit & Loss A/c (Pre-acquisition)
Losses before acquisition are written off from Capital Reserve.

Post–Acquisition Profit

Post-acquisition profits are the profits earned by a subsidiary company after the date it is acquired by the holding company. These profits are treated as revenue profits since they arise during the period of ownership and control of the holding company. In consolidation, the holding company’s share of post-acquisition profits is added to the consolidated profit and loss account, while the balance belongs to the minority shareholders. These profits are available for dividend distribution to the shareholders of the holding company. Accurate segregation from pre-acquisition profits ensures correct reporting in consolidated financial statements.

Scope of Post-Acquisition Profits:

  • Inclusion in Consolidated Profits

Post-acquisition profits directly impact the consolidated profit and loss account of the holding company. The portion attributable to the holding company is combined with its own profits to show the total group earnings. This inclusion helps in evaluating the financial performance of the group after the acquisition. Since these profits are earned during the ownership period, they represent income available for shareholders and form the basis for dividend decisions. Proper treatment ensures compliance with accounting standards and presents a true picture of post-acquisition operational success in consolidated financial statements.

  • Attribution to Minority Interest

Post-acquisition profits are divided between the holding company and minority shareholders, based on their shareholding percentages. The portion belonging to minority interest is credited to the minority interest account in the consolidated balance sheet. This ensures fairness and transparency in reporting, as minority shareholders are entitled to their share of the profits earned after acquisition. Accurate allocation prevents overstatement or understatement of earnings attributable to either group. Such separation also facilitates clear disclosure in the consolidated accounts, maintaining the integrity of financial reporting and aligning with statutory requirements.

  • Impact on Dividend Policy

Post-acquisition profits influence the dividend policy of the holding company. Since they are considered revenue profits, they can be distributed as dividends to the shareholders of the holding company. This provides flexibility in rewarding investors based on the financial performance of the subsidiary after acquisition. However, before distribution, companies must ensure sufficient reserves and compliance with the Companies Act provisions. The decision to distribute or retain these profits depends on the company’s expansion plans, debt obligations, and liquidity needs, making post-acquisition profits a key factor in strategic financial planning.

  • Use in Performance Evaluation

Post-acquisition profits serve as a vital tool for assessing the profitability and operational efficiency of the subsidiary after it becomes part of the group. By comparing these profits with pre-acquisition results, management can evaluate the effectiveness of the acquisition strategy and integration efforts. This analysis helps identify areas for improvement, measure the subsidiary’s contribution to group performance, and make informed decisions on resource allocation. It also supports future investment and expansion strategies, ensuring that the acquisition delivers the expected returns. Accurate measurement of post-acquisition profits enhances the credibility of performance evaluations in consolidated financial statements.

  • Transfer to Reserves

A portion of post-acquisition profits may be transferred to general reserves, capital reserves, or other specific reserves of the holding company. Such transfers strengthen the company’s financial position and prepare it for future contingencies, expansions, or debt repayments. This process aligns with prudent financial management practices by ensuring that not all earnings are distributed as dividends. Reserves created from post-acquisition profits can also be used for reinvestment in the subsidiary’s operations, supporting growth and innovation. The treatment of such transfers must comply with accounting standards and company policies to maintain transparency in financial statements.

  • Effect on Consolidated Earnings Per Share (EPS)

Post-acquisition profits directly affect the consolidated earnings per share (EPS) of the holding company. Since these profits are added to the holding company’s income, they increase the total earnings attributable to the shareholders, thereby influencing the EPS calculation. A higher EPS can enhance investor confidence, potentially leading to increased market value of the company’s shares. Conversely, lower post-acquisition profits can reduce EPS, signaling weaker performance. Monitoring this impact helps management make strategic decisions regarding operational improvements, cost controls, and profit maximization in the subsidiary. Accurate reporting ensures fair presentation of the group’s financial performance.

Accounting Treatment of Post-Acquisition Profits:

Situation Journal Entry Explanation

1. When post-acquisition profits are credited to Consolidated P&L A/c

Profit & Loss A/c (Post-acquisition) Dr.

  To Consolidated Profit & Loss A/c

Post-acquisition profits belong to the holding company and minority shareholders in proportion to their shareholding.

2. Share of Minority Interest in post-acquisition profits

Profit & Loss A/c (Post-acquisition) Dr.

  To Minority Interest A/c

The minority’s share of post-acquisition profit is transferred to the Minority Interest account in the consolidated balance sheet.

3. Dividend paid out of post-acquisition profits

Consolidated Profit & Loss A/c Dr.

  To Bank A/c

Dividend declared from post-acquisition profits is recorded as a distribution to shareholders.

4. Transfer to General Reserve Consolidated Profit & Loss A/c Dr.

  To General Reserve A/c

Some portion of post-acquisition profits may be transferred to General Reserve as per company policy.
5. Retained earnings

Consolidated Profit & Loss A/c Dr.

  To Retained Earnings A/c

Remaining post-acquisition profit after allocations is retained for future use.

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