B.B.A.

Second Year
Paper No.5

BUSINESS COMMUNICATION

BHARATHIAR UNIVERSITY
SCHOOL OF DISTANCE EDUCATION
COIMBATORE – 641 046.
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 CONTENT

Lesson Page No.

UNIT – I
Lesson-1 Essentials and Importance of Business 7
Communication
Lesson-2 Media of Communication 16
Lesson-3 Types of Communication 26
Lesson-4 Barriers to Communication 39
UNIT – II
Lesson-5 Letters of Enquiry 53
Lesson-6 Orders and Executions 60
Lesson-7 Complaints and Adjustments 65
Lesson-8 Trade Enquiries and Bank References 74
UNIT – III
Lesson-9 Role of Company Secretary and his Duties 85
Lesson-10 Correspondence of Company Secretary with 88
Shareholders and Directors
Lesson-11 Agenda, Minutes Preparation 92
UNIT – IV
Lesson-12 Communication Thro’ Letters Essentials, 99
Importance and Contents
Lesson-13 Layout 105
Lesson-14 Reports 121
Lesson-15 Application for Appointment 140
UNIT – V
Lesson-16 Communication Media, Merits of various devices, 157
E-mail, Internet, Intercom, Telecom, Telex,
Telephones and Fax

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 (Syllabus)

BUSINESS COMMUNICATION Papver – V

UNIT – I
Essential and importance of business communication – Methods of
communication – types of Barriers.

UNIT – II
Letters of enquiry, orders, complaints and adjustments, trade enquiries and
references.

UNIT – III
Correspondence of company Secretary with shareholders and directors – agenda
– Minutes – Preparation.

UNIT – IV
Communication through letters : Essentials – Importance Contents – Reports by
individuals – committees – annual report application for appointment –
Reference and appointment orders.

UNIT – V
Communications media – merits of various devices – E-mail, internet, Intercom,
Telegram, Telex and Telephones – Fax

Recommended Books
Business Communication – Rajendra Pal
Business Communication – Pattern Chetti

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UNIT - I

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 LESSON-1
ESSENTIALS AND IMPORTANCE OF BUSINESS
COMMUNICATION

LEARNING OBJECTIVES
After completing this lesson, you must be able to :

• Define Communication
• Discuss the importance of business communication
• List out the essentials of good communication
• Explain the communication process, communication skills and barriers to
communication.

CONTENTS

1.1. Introduction
1.2. The Process of Communication / The Communication Cycle:
1.2.1. Communication Cycle :
1.3. Importance of Communication:
1.3.1. Importance of communication to individuals:
1.3.2. Importance of Communication to Business:
1.4. Objectives of Communication:
1.4.1. Information
1.4.2. Advice
1.4.3. Counseling
1.4.4. Order
1.4.5. Instruction
1.4.6. Suggestion
1.4.7. Persuasion
1.4.7.1. Steps in Persuasion
Summary
Check your progress
Review Questions

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1.1 INTRODUCTION

Communication is a skill acquired by an individual to exchange messages, facts,

ideas, opinions and even express emotions. This skill is acquired either without
any conscious effort, or by conscious effort through education. Communication
is the process by which information is transmitted between individuals and/ or
organizations so that an understanding response results. Communication
transmits information not only about tangible facts and determinable ideas and
opinions but also about emotions.

Communication is a tool with which we exercise our influence on others, bring

out changes in our and others’ attitudes, motivate the people around us and
establish maximum relation ship with them. Communication makes a major
part of our active life and social activity. This social activity is pursued verbally
through speech, reading, and writing or non verbally through body language.

1.2 THE PROCESS OF COMMUNICATION / THE COMMUNICATION CYCLE:

Every bit of message communicates undergoes a certain process involving more

than one person. Nobody communicates to a vacuum. Communication is
considered effective if it receives the desired result, response or reaction. All
communication are related to some context. In any context, a communication
loop exists to enable successful communication.

• At one end of the loop is the sender of a message or information. He

receives a stimulus to send a message across. This stimulus may be may be
external or internal. He converts the message into a code. This process is
called encoding. The sender is called encoder.

• He chooses the appropriate verbal or non verbal code and puts the message
into that code.

• The encoder transmits the coded message through an appropriate medium.

The sender or the encoder chooses the appropriate medium based on
several factors such as the receiver, the message, its urgency or otherwise.
He may choose a non verbal signal, body language, speech, writing, or any
other available medium to transmit the encoded message.

• The message gets transmitted to the receiver.

• The receiver decodes the message and perceives it. Unless the receiver is
aware of the code is adept in using the medium, he cannot decode it.
Misinterpretation may arise even if there is interference in the medium.

• The receiver’s response or reaction is the feed back that the sender gets.
The feed back may be a signal or an action.

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 Sender ( Encoder)
Attitude, Experience, Perception
Encoder chooses medium - encodes

1.2.1. Communication Cycle : The transmission of the sender’s ideas to the

receiver and the receiver’s feedback or reaction to the sender constitute the
communication cycle. The main steps of this cycle are as follows.

• Input - the information or ideas the sender wants to give the

receiver.
• Channel - letter, fax, phone call, electronic mail, etc.
• Message - the actual message that is sent.
• Output - the information the receiver gets.
• Feed back - the receiver’s response ( or non response) to the message.
• Brain drain - the possibility of misunderstanding at any step.

1.3 IMPORTANCE OF COMMUNICATION

Communication is vital not only for the success and growth of any business, but
also for the smooth and efficient running of any enterprise.

1.3.1. Importance of communication to individuals:

Expression of oneself: Communication is very important to an individual and it

through communication process that one can convey opinions, thoughts,
feelings etc. This helps in expressing oneself and making other person
understand one’s point of view.

Satisfaction of human needs: Communication helps man to satisfy his emotional

needs of security, belongingness, recognition, etc. It is through communication
that man expresses himself and feels relieved of emotional stress. In the absence
of communication man becomes passive, inactive, static and sometimes
neurotic.

Building human relations: Communication helps in bridging the gaps in

understanding, resulting in better human relations. Two way communications
promotes openness, trust, cooperation and harmony among different
individuals.

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Career advancement: The ability to effectively communicate helps man to
perform to the best of his abilities. Communication skills like writing, speech,
listening, etc. play a dominant role in one’s success in his chosen profession.

1.3.2. Importance of Communication to Business:

Efficient working of the business: Communication is essential and vital for
successful and smooth running of any enterprise. Communication creates a
healthy and conducive environment. Organisational goals and policies are
conveyed to the employees and various resources necessary for their
accomplishment are coordinated through effective communication.
Communication failures- Costly: Communication failures often prove costly for
an organisation. It directly results in stoppage of work and loss of man hours
and indirectly creates ill will and low employee morale.
Basis of managerial functions: Communication precedes and permeates through
every managerial function. Communication enables the management to
discharge various functions like,

a) Anticipation- the most important function of the management is to anticipate

the future of their products and prospects in the light of social, economic and
political environment.

b) Innovations- In the era of rapid technological advancement and accelerating

rate of obsolescence, organisations has to continuously learn and innovate, for
which they have to acquire and disseminate knowledge. This is made possible
through a process of effective communication.

c) Planning- Framing of various plans, policies, programmes, and procedures

require effective communication among employees and executives.

d) Organising - Organisation is concerned with deciding the necessary activities

of business, dividing it into various departments, and delegating authorities to
perform them. For every activity of the organisation, communication is needed.

e) Leading, Directing, and Motivating- The process of leading, directing and

motivating requires communication. As a leader, the manager has to influence
the behaviour of his subordinates. This is made possible only through effective
communication.

f) Controlling – Communication facilitates in controlling and channelising of

various activities of the individuals, departments. In this process, the actual
performance is to be compared with the expected and corrective actions are
taken if there is any deviation.

g) Building Human Relations: As Good working conditions and environment

are important for health industrial relations, so also effective communication
among the employer and the employee. Through effective communication the

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management can covey its expectations to the employees and the employees can
convey their suggestions and grievances to the management. Thus the two way
communication promotes cooperation and understanding among the employer
and the employee.

h) Total Quality Management : In a total quality organisation with cross

functional teams, until consensus is reached between the executives and
employees about how to go in for achieving quality, there will be a great deal of
wasted efforts or no effort at all, thus effective communication is essential to
bring about a coordinated and harmonious functioning of the organisation.

i) Zero- defect marketing and quality services : Present day market aims at
zero defect marketing and emphases quality services to the customers. To
provide zero defect product and quality service, requires proper and healthy
communication of the company with its customers.

j) Job satisfaction and job enrichment : Bad communication results in illusion

and misunderstanding among employees and executives. As a result behaviour
becomes defensive leading to low morale, low job satisfaction and ultimately in
low productivity. Effective communication overcomes this and contributes to
greater cooperation among the employer and employee, enhancing the employee
morale and job satisfaction.

k) Maintenance of good relations with external agencies : Effective

communication is essential for maintaining good relations with external agencies
such as customers, creditors, trade unions, research institutions, governmental
agencies, distributors, etc.

1.4 OBJECTIVES OF COMMUNICATION

The following are some of the most important objectives of communication:

1.4.1. Information :

Passing on information about a particular fact or circumstance is one of the

most important objectives of communication. This can either be done orally or
through written form. In formation can be external, internal or for planning.
External information mainly consists of information about the company’s
products, about the availability of credit, availability of raw materials, about
government rules and regulations, about media and bout the developments in
the fields of technology, science or business strategies.

Internal information mainly consists of information about job assignments and

the procedures governing them, information on status and decision making
powers and about general information on the policies and activities of the
organisation.

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Sources of information - information can be got through different sources like
old files and records, observation, mass media, library research, chamber of
commerce and other business and industrial associations and organisation;
both governmental and non governmental, electronic communication media.

1.4.2. Advice :

Advice is subjective since it involves personal opinions. Advice is given either to

influence or modify ones behaviour. Commercial activities have become
extremely complex . Every activity needs specialized handling. However
competent a person may be, he cannot have specialized knowledge of all
functional aspects of management, thus in order to run the business effectively
he might require expert advice. Advice flows horizontally or down words. Expert
advice from outside flows horizontally while advice from the superior to the
subordinates flows down words. Effective advice is both man-oriented and work
oriented. It does not make a worker feel inferior. It is given in the interest of the
worker. It promotes understanding. It can become a two way channel of
communication.

1.4.3. Counseling :

Counseling is similar to advice, but it is objective and impersonal. The counselor

possesses skill and knowledge on some specific subject and offers his counsel
without any prejudice. Business houses have their own counselors, who offer
their employees counseling on domestic or personal problems.

1.4.4. Order :

Order is an authoritative communication. It is a directive to the subordinates, to

do or modify their acts, or not to do something. Downward flow of information is
dominated by orders. Orders can be written and oral, general and specific
orders, procedural and operational, mandatory and discretionary.

The characteristics of an effective order are that

™ It should be clear and complete so that the person who receives it knows
exactly what, how and when to do.
™ Its execution should be possible
™ It should be given in a friendly way so that it is not resented and is not
carried reluctantly.

1.4.5. Instruction :

Instruction is a particular type of order in which the subordinate is not only

ordered to do the job but is also given the guidance to do it.

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1.4.6. Suggestion :

Suggestions are mild and subtle form of communication. It flows horizontally or

vertically upwards. Progressive business houses make provisions for suggestion
boxes, placed at convenient places in the office or factory. Employees are
encouraged to drop their suggestions. Employees offering good suggestions
which may benefit the organisations are rewarded.

1.4.7. Persuasion :

Persuasion is an effort to influence the attitudes, feelings, or beliefs of others, or

to influence actions based on those attitudes, feelings or beliefs. Incompetent
workers and disgruntled workers have to be persuaded to do their workers.
Human nature is nor amenable to coercion or repression. Application of force
may result in resentment and indignation. Persuasion is better than
compulsion. Persuasion has to be indirect and suggestive.

1.4.7.1. Steps in Persuasion :

a) Analysing the situation : The communicator has to analyse the situation to

find out the need for persuasion. He has to study the psychology the people to
be persuaded in order to plan a suitable strategy.

b) Preparing the receiver : people resent being persuaded to change their views
or behaviour. The receiver has to be prepared by putting them in a pleasant
frame of mind. He may be complemented on some his achievements, an appeal
may be made to his adaptability and open-mindedness. It is necessary that the
communicator discusses the whole issue from the receiver’s point of view.

c) Delivering the message : The message should be delivered stage by stage,

beginning with parts of the message which are easily acceptable and delaying
the unpleasant parts as much as possible.

d) Promoting action : Promoting action is the logical out come of the first three
steps. If the first steps are done carefully, the receiver can be persuaded to adopt
the desired course of action.

e) Education : Education is a very conscious process of communication. It

involves both teaching and learning. It extends over a considerable period of
time. The main purpose of education is to widen knowledge and to improve
skills.

i) Levels of education : Education for the management: Managers are required

to update their knowledge keeping pace with the changes and developments.
This is made possible through education. Education can take place through
books, lecturers, seminars, case studies, etc. Junior managers have to be
educated to assume responsibilities when taking up higher positions.

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ii) Education for employees: Employees are also to be educated to update
their knowledge. When the organisation introduces modern methods or
technologies, the employees must be equipped to adapt to these changes
through education. This type of education is called as reorientation. This can be
done through lecturers, demonstrations, bulletins, and house organs.

iii) Education for the public : Public needs knowledge on new products,
relative merits of the various brands already existing, availability of substitutes,
complementary and supplementary products. This information are given
through advertisement, sponsored features etc.

iv) Warning : Tardiness, negligence, defiance, tampering with records,

mishandling of equipments, lack of regularity and punctuality, spreading, giving
misleading information, etc. calls for a reprimand or a warning. Warning is a
forceful means of communication demanding immediate action. To be effective it
should be used sparingly and discreetly.

Points to be noted while giving warnings :

• Some warnings are general in nature, not aimed at any particular person (
no smoking ). Such warnings are usually given n the form of notices.
• Some warnings are given to particular persons. They involve disciplinary
actions in the form of reprimands.
• Reprimands should not be administered to a person in the presence of
others. It would make the person humiliated. The worker should be
summoned in the privacy of the supervisor’s and dispassionately talked to.
He should be given an opportunity to explain himself.
• It is also useful to investigate the causes of the worker’s undesirable
behaviour.
• The aim of giving warning should be the betterment of the organisation. It
is important to be judicious in the choice of words used in administering
warnings and reprimands.

v) Raising Morale: It is the sum of several qualities like courage, fortitude,

resolution and confidence. High morale and efficient performance go hand in
hand.

Creation of high morale leads to:-

1. The worker getting works suited to his physical and intellectual caliber. He
is free to do his work as he likes it. He is encouraged to give suggestions.
2. The work environment is congenial. The superiors are efficient and
constructive in their attitudes.
3. Promotional opportunities are available to the workers.
4. Genuine grievances of the workers are promptly removed.

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vi) Motivation : Motivation and behaviour are closely related to each other. In
order and persuasion the communicator has an upper hand. But in motivation
he keeps himself in the background. He does not order his subordinates to do
the work; instead he motivates them to do the work. Monetary incentives are
perhaps the most effective form of motivation. Other factors like job satisfaction,
prestige, recognition, etc. can motivate the workers. Motivation as a form of
communication can be effective if:
1) Workers are invited to give suggestions and participates in the decision
making process.
2) Clear achievement goals are to be set before the workers, so that they know
their task and would work hard to achieve their goals.
3) Apart from the satisfaction of their basic needs like food, clothing and
shelter, all human being yearn for security, safety, achievement, healthy
social relations etc. The management should take efforts to provide all
these by creating a congenial work environment.

SUMMARY

Communication is an acquired skill for the individual and a business

organization. Each individual’s mind set gives him a communication profile.
Communication is important for the business to promote understanding, to
motivate employees and to build up an image for the organization.
Communication Process involves an encoder, a code, a medium, transmission, a
decoder and a feed back. Effective communication depends on these factors.

CHECK YOUR PROGRESS

Comment on the following.

1. Ideal communication is the two way process.

.........................................................................................................................
.........................................................................................................................

2. Technological advancement has contributed to the growth of

communication.
.........................................................................................................................
.........................................................................................................................

REVIEW QUESTIONS

1. Explain briefly the process of communication.

2. List some tips for effective communication.
3. Discuss the role of feedback in the communication process.

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 LESSON-2
MEDIA OF COMMUNICATION

LEARNING OBJECTIVES

After completing this lesson, you must be able to :

• Explain the types of oral communication.
• List out the forms of body language.
• Outline the essentials for listening.
• Categorize the types of written communication.

CONTENTS

2.1. Media of Communication:

2.1.1. Verbal Communication: Written, Oral
2.1.1.1. Oral Communication
2.1.1.2. Pre-requisites of Oral Communication
2.1.1.3. Tips for giving oral instruction :
2.1.1.4. Merits of Oral communication:
2.1.1.5. Demerits of Oral Communication:
2.2. Written Communication:
2.2.1. Pre-requisites of Written Communication:-
2.2.2. Merits of Written Communication:
2.2.3. Demerits of written communication:
2.2.4. Face to face communication:
2.2.4.1. Merits of face to face communication:
2.2.4.2. Demerits of face to face communication:
2.3. Visual Communication:
2.3.1. Facial expressions and gestures:
2.3.2. Audio-Visual communication:
2.3.3. Computer based communication:
2.3.4. Teleconferencing (video conferencing) :
2.3.5. Voice mail:
2.3.5.1. Guidelines for effective use of voice mail:
2.3.6. Facsimile (FAX):
2.3.7. Electronic Mail (E-mail) :

Summary
Check your progress
Review Questions

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2.1 MEDIA OF COMMUNICATION

For effective communication the choice of the media of communication should

be selected carefully. Media in this context means the methods adopted by the
communicator to convey his message to the receiver. The choice of the media
depends on many factors like the urgency of the message, availability of time,
the cost and the intellectual and emotional level of the receiver.

Diagram :
Media of
Communication

Verbal Non-Verbal

Oral Written Sign Language Body Language

Visual Signs Audio Signs

2.1.1 Verbal Communication: Written, Oral:

Any communication using words is verbal communication. Words denote as well

as connote meanings. All formal communication is usually in words.

2.1.1.1. Oral Communication: Communication through the spoken word is

known as oral communication. Of the working time spent in verbal
communication, 9% is in writing, 16% is in reading, 30% in speaking and 45%
in listening. In oral communication, the choice of the words must be made
carefully so that what they connote has the precise meaning. The sender of the
message is the speaker, while the receiver of the message is the listener. Oral
communication includes face-to-face conversation, conservation over the
telephone, radio broadcast, interviews, group discussions, meetings, conferences
and seminars, announcements over the public system, speeches, etc.

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Important factors to be considered for effective oral communication are:-
• The speaker
• How effective he is in his delivery
• What he speaks- the content
• Whom he speaks to- the receiver, his intellectual and emotional level.
• Feed back- this ensures that the communication is effective and that the
message has been conveyed.

2.1.1.2 Pre-requisites of Oral Communication:-

a) Clear and proper pronunciation of the words: Oral messages are often
misunderstood because does not speak distinctly. In ability to use the jaws
freely, to speak with a limber tongue and limber lips, and to speak slowly often
makes for poor oral transmission.

b) Brevity: Oral communication mostly tends to suffers from over-

communication. If a speaker keeps on talking for long, his message will get lost
in a sea of verbosity and distraction. It is important to keep the message as brief
as possible without appearing abrupt and discourteous.

c) Precision: Precision can make oral communication effective. Communicating

to the point and in a round about way cold result in the message being conveyed
properly and effectively.

d) Conviction: A person communicating orally must have conviction in what he

says. Lack of conviction causes lack of confidence, resulting in the
communicator not able to convey what he wants and impress the receiver.
Conviction comes from sincerity of approach and careful thinking and proper
planning.

e) Logical sequence: A speaker with clarity of thought to his message, will be

able to arrange the ideas contained in it in their logical sequence. Jumbled ideas
lead to confusion.

f) Appropriate choice of words: Words have different meaning for different

people and context. It is important to be careful in the choice of words. The
speaker should not always presume that the listener understands the meaning
of the message in the same way as he understands. In oral communication it is
very important to use terms which are familiar to the listener rather than the
terms that are familiar to the speaker.

g) Natural voice: Some speakers deliberately cultivate an affected style under

the impression that they sound more sophisticated. Nothing impresses a person
than being natural in our delivery. The most effective speech is that which is
correct and at the same time natural and unaffected. The speaker has to
cultivate a natural and pleasing voice and speak correctly and distinctly.

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h) Finding the right register: People belonging to different social, cultural and
educational background use different kinds of language. The level of
understanding of educated people is much different from that of a less or people
with no formal education. An efficient communicator senses the distinction of
this type and adjusts his speech according to the needs and level of
understanding of the listener. This is finding the right register. An efficient
communicator tunes in to the listener’s wavelength by adjusting his vocabulary,
speed of delivery and accent.

2.1.1.3. Tips for giving oral instruction :

• Communicator should not assume that the listener has prior knowledge
about the subject.
• Proper time has to be selected for giving instruction. It has to be assured
that the listener is receptive and not in a hurry, and the communicator has
enough time to explain the details.
• Instructions has to be organised so that they make sense to the listener.
Communicator has to ask for himself whether the listener is able to
understand exactly what he has been asked to do.
• Simple, clear, concise and accurate language should be used.
• Irrelevant or unimportant details are not to be given. The listeners mind
should not be loaded with unrelated information.
• The listener must be given opportunities for asking questions in order to
clarify any doubts that he may have. This ensures that the listener has
understood the point made by the communicator.
• Complicated instruction must be repeated. This will ensure that the listener
has understood the message.
• It is desirable to follow up detailed oral instruction in writing.

2.1.1.4. Merits of Oral communication:

• Saves time and money: No money need to be spent for producing oral
communication, since in involves only spoken words. Oral communication
is there fore economical. There is hardly any delay from the time the sender
sends the message and the receiver receives it.
• Immediate feedback: The feedback in most of the oral communication is
immediate. The words are received as soon as they are spoken, the receiver
can thus give his reaction immediately. The communicator can gauge the
mood and the response of the listener.
• Saves paper work: Paper work is minimal since communication is in the
form of spoken words.

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• An effective tool for exhortation: Speech is a more powerful means of
persuasion and control. Executives often prefer to transmit message orally.
• Builds a healthy climate: A friendly atmosphere is created when
communication is oral. The informal plane on which oral communication
carried out helps to promote friendly relation between the speaker and the
listener. Communication can be modified immediately on the basis of the
feedback and response from the listener.
• Communicating to groups and during emergencies: Oral communication
is extremely useful while communicating with groups at assemblies,
meetings etc. Oral communication is the quickest tool during an
emergency. It is the best method of communication when an immediate and
quick response is critical.

2.1.1.5. Demerits of Oral Communication:

• Greater chance of misunderstanding: Unless it is recorded, oral

communication cannot be referred again. There are, therefore greater
chances of a message being misunderstood or misinterpreted.

• Bad speaker: Only an individual who can satisfy all the requisites of
effective oral communication can produce good results. More often than
not, a bad speaker may send the wrong message. When speaking, one
communicates through articulation, voice modulation and body language. A
message may be misunderstood if there is a disharmony among these
components.

• Ineffective for lengthy communication: Oral communication is not

suitable for lengthy communication. Because of human limitations, there
is every possibility that something important will be missed out.

• Lower retention rate: Oral communication suffers from the drawback of a

low retention rate. A listener may absorb only some part of an oral message
since the attention span differs from person to person. People have the
tendency to forget oral message.

• No legal validity: Oral communication lacks proof of record. There is no

permanent record or proof of what has been said. There is a possibility that
the person who has given a oral message or instruction may deny it later,
the same may be the case in case of the receiver also. Hence, oral
communication has very little value from the legal point of view.

• Difficult to fix responsibility: Since a message is transmitted orally, it is

difficult to fix the responsibility. The parties may try to shift the
responsibility on one another especially if it is adverse to either of them.

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2.2. Written Communication:

A message constitutes written communication when it is put in black and white.

It is a formal type of communication. The sender of the message constitutes the
writer. Written communication is usually considered binding on business
organisation and is often used as evidence. Technological advancement has
enlarged the gamut of written communication through email etc. Written
communication includes letters, circulars, memos, telegrams, reports, minutes,
forms and questionnaires, manuals, email, etc. Everything that has to be written
and transmitted in the written form falls in the area of written communication.

Important factors to be considered for effective written communication

are:-

- The writer
- The content of the message.
- The language used for communication.
- The purpose of the communication.
- The style adopted- formal or informal.
- The receiver- his intellectual and emotional level.

2.2.1. Pre-requisites of Written Communication:-

- How much to be put in writing- length of the message.
- What to be left out- irrelevant and unnecessary details have to be avoided,
so that there is no miscommunication or misunderstanding on the part of
the receiver.
- When to stop.
- When to convey.
- To whom to convey- the receiver, his intellectual and emotional level.
- The means used for conveying the message.

2.2.2. Merits of Written Communication:

1. Precise and accurate: Written communication is generally prepared with

great care and precision. The very prospect of writing makes a person
conscious. One has to be very serious and organised while communicating
in writing, because written communication is open to verification and its
authenticity can be challenged. The communicator has to be accurate and
factual.
2. Easily verified: The receiver can go over the message again and again. He
can read and re read it until it is properly understood. There is less chance
of missing out any important part of it.

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3. Permanent record: Written communication constitutes a permanent
record. It can prove very useful for any future reference. Old orders, and
decisions can serve as precedents for fresh decisions. It can be used for
formulating new policies and for fixing current target.
4. Has legal validity: Written communications are accepted as legal
documents. It is used as evidence.
5. Facilitates assignment of responsibilities: Well preserved written
communications are useful in assigning responsibilities. It is easy to make
the receiver accountable and committed to his work.
6. Wider accessibility: Developments in the media of communication has
enhanced the accessibility of information with ease and speed.

2.2.3. Demerits of written communication:

1. Slower method of communication: Written communication can be time
consuming, since it may take a longer time to reach the receiver. However
the l development in the information technology with the advent of internet
and electronic communication media has helped to over come this
difficulty.
2. Further delay if clarifications are required.: Written communication
hampers quick clarifications. The receiver may write back for clarification
and wait for a reply, making the process tedious and time consuming.
3. Possibility of ambiguity or lack of comprehensibility: It is quite possible
that the receiver is not able to comprehend the exact meaning of a written
message. The clarity of the written message largely depends on the skill, or
lack of it, in the sender.
4. Costly in terms of money and man hours: Corresponding through letters
is not only costly but also time consuming and involves several persons.
5. No flexibility: The written word is not subject to instant change after
communication. Therefore, conveying an after thought may prove very
lengthy, and, at times even impossible.
6. Literacy essential: It goes without saying that in written communication,
both the sender and the receiver should be literate. Literacy also means
literacy in the language of the message.

2.2.4. Face to face communication:

At the first thought, face to face communication, appear to be identical with oral
communication. However it is possible to bring out certain differences between
oral and face to face communication. Telephonic conversation is oral, but not
face to face. In most of the situations, however, all face to face communications
are oral also.

22
2.2.4.1. Merits of face to face communication:

i. Facial expressions and gestures help to communicate better: In oral

communication the message is reinforced with the help of the tone, pitch,
and intensity of the speaker’s voice. Face to face communication enjoys yet
another advantage, the message being communicated also gets the
assistance of facial expressions and gestures.
ii. Particularly suitable for discussions: Face to face communication is
suitable for discussions, for there is immediate feedback from the total
personality of the listener including the vibrations being emitted by it and
not just in terms of words which may often be hollow and meaningless. A
twist of the lips, a frown on the forehead, a contraction of the facial
muscles point out that the message is not welcome; change the tone and
make yourself sound and look more considerate and sympathetic. These
adjustments are possible only in face to face communication.

2.2.4.2. Demerits of face to face communication:

i. Difficult to practice in large sized organisations: Face to face
communication is extremely difficult to practice in modern large sized
organisations, particularly if the various units and departments are
situated at different places.
ii. Not effective in large gatherings: It is very difficult to get a message across
to large gathering. Even though the speaker is addressing the audience face
to face, the vital personal touch is missing.
iii. Ineffective if the listener is not attentive: A limitation which face to face
communication shares with oral communication is that its effectiveness
largely depends on the attentiveness of the listener.

2.3 VISUAL COMMUNICATION:

Facial expressions and gestures, printed pictures, posters, slides, film strips,
etc. fall under this category. Mime is an old art in which ideas and emotions are
communicated through facial expressions and gestures. Visual communication
suitable only to communicate elementary and simple ideas. It can be effective if
used in combination with other media.

2.3.1 Facial expressions and gestures:

Written communication is expressed in terms of words alone, oral
communication involves verbal as well as non verbal elements. The non verbal
element includes the pitch and tone of the voice as well as facial expressions and
gestures, commonly termed as body language. Nervousness, anger, fear, scorn,
determination, horror, sympathy, pity, lack of understanding, resentment, can
be better expressed through body language than through words. Successful
communicators make very effective use of facial expressions and gestures.

23
2.3.2. Audio- visual communication:

Audio visual communication that makes use of telecast, short films, video tapes,
is a powerful medium of communication. It is a combination of light and sound.
Information transmitted through audio-visual means is retained much longer
than through other means. Audio-visual communication is found to be suitable
for mass publicity, mass propaganda, and mass education.

Large business houses frequently make use of this technique to educate their
workers and to popularize their products. In order to make an effective use of
this technique, it is necessary to make the film and slides attractive and
interesting. The narration should be clear, precise, lucid and easy to
understand.

2.3.3. Computer based communication:

Computer technology has given a new dimension to communication. The
barriers of time and space are slowly getting faded away. Faxes, Voice mail, E-
mail, cellular phones, telephone answering machines, video conferencing, are
some of the computer based media of communication.

2.3.4. Teleconferencing (video conferencing) :

It is a substitute for face to face communication, mostly used when two or more
persons are situated at far of places. Teleconferencing eliminates the
unnecessary travel by executives and ensures long distance communication. In
the present era of globilisation people or companies operating in different
countries, can be linked together in “global office” through teleconferencing.
However it is technologically and economically unaffordable for small
organisations as it requires elaborate studios at each location with heavy
expenditure.

2.3.5. Voice mail:

This system allows the sender to leave the message with the receiver who will
pick it up later on. With this, the sender can feel confident that the receiver will
receive the message by listening to voice. This system saves money and time
when one way information is to be conveyed.

2.3.5.1. Guidelines for effective use of voice mail:

• the name of the person for whom the message is directed must be given.
• Senders name and identity and phone number must be given.
• Sender has to organise the message in advance.
• The message must be kept short.
• message must be spoken slowly and clearly.

24
2.3.6. Facsimile (FAX):

A facsimile or fax machine is one of the most useful media for transmission of
written, especially visual materials such as diagrams, copies, etc. Fax machines
are connected with telephone both at the transmitting and receiving end. In fax
a document is fed in the transmitting end which is converted into electrical
signals. These signals are transmitted through telephone lines to another fax
machine which reconverts these signals into printed out hand copies. The
receiving fax machine sends a message confirming the receipt of the entire
message.

2.3.7. Electronic Mail (E-mail) :

E-mail is another instantaneous medium of communication. It transmits the

written message via computers connected on network. For access to network
area, a computer, a telephone, a modem with software are required to function
on E-mail. If the network is connected with internet, it provides the added
advantage of global communication. E-mail is becoming popular not only
because of being cost effective and instantaneous means of communication, but
also because of the present shift to E-culture.

SUMMARY

Effective communication requires good planning. Audio and visual signs can
substitute verbal messages in limited situation. Body language is also important
in oral communication. It enhances communication level. Listening is
important to effective communication.

CHECK YOUR PROGRESS

1. Give some examples for Visual Communication for Marketing a

Consumer Product.
............................................................................................................................
............................................................................................................................

2. Give two examples of Oral instruction to a worker.

............................................................................................................................
............................................................................................................................

REVIEW QUESTIONS
1. Explain the significance of Written Communication. How can written
communication be made more effective ?
2. What are the different forms of Oral Communication. How can oral
communication be made more effective ?

25
 LESSON-3
TYPES OF COMMUNICATION

LEARNING OBJECTIVES
After completing this lesson, you must be able to,
• List out the channels of communication
• Discuss the types of external communication
• Catagorize the forms of internal communication

CONTENTS

3.1 Types of Communication:

3.1.1. Communication Network
3.1.2. Formal Communication:
3.1.2.1. Advantages of Formal communication:
3.1.2.2. Disadvantages of Formal communication:
3.1.2.3. Types of Formal Communication:
3.2. Downward Communication:
3.2.1. Objectives of Downward Communication:
3.2.2. Media of Downward Communication:
3.2.3. Benefits of Downward Communication :
3.2.4. Limitations of Downward Communication :
3.2.5. Pre-requisites of Effective Downward Communication:
3.3. Upward Communication:
3.3.1. Methods of Upward Communication:
3.3.2. Merits of Upward Communication:
3.3.3. Demerits of Upward Communication:
3.3.4. Pre-requisites of effective Upward Communication:
3.4. Horizontal or Lateral Communication:
3.4.1. Importance of Horizontal Communication:
3.4.2. Methods of Horizontal Communication:
3.4.3. Pre-requisites of Horizontal Communication:
3.4.4. Problems of Horizontal Communication :
3.5. Informal Communication :
3.5.1. Merits of Informal Communication:
3.5.2. Demerits of informal communication:
3.5.3. How to use Grapevine effectively :
3.5.4. Types of Informal Communication or Grapevine:
3.5.5. Types of Grapevine Chain : (Diagram)
Summary
Check Your Progress
Review Questions

26
 3.1 TYPES OF COMMUNICATION

3.1.1. Communication Network :

Communication in organizations require a system to channalise the flow of
information through certain media. The system or pattern used is called
network. The network works along the hierarchical relationships. Thus the
communication network is the regular pattern, system or structure, designed or
builds up along hierarchical or person to person relationship through which
information flows in an organization. A communication network has the
following features:
1. There is regularity in its pattern or structure.
2. It is either designed(in case of formal communication) or is incidentally
build up out of friendly relationships (in case of informal communication)
3. It refers to the person to person relationship, either hierarchical or
anarchical along which information flows.
4. Communication network can be-

Diagram : Kinds / Types of Communication Employed in Business

Organizations.

Kinds / Types of Communication Employed in

Business Organizations

External Internal
Communication Communication
(Within the
Business
Organization)

Govt. Agencies Customers Clients, Public, etc.,

Formal Informal
Channels Channels

Upward Downward Horizontal Diagonal Grapevine

27
3.1.2 Formal Communication:

Formal communication flows along prescribed channels designed by

management to channalise the flow of communication along formal
organizational structure. This communication flow is deliberately created along
officially recognized positions to ensure smooth, orderly, accurate and timely
flow of information. Formal communication may move vertically or horizontally.
Vertical communication can flow downward (from superior to subordinate) or
upward (from subordinate to superiors). Horizontal communication flows
between employees of equal or comparable status.

3.1.2.1 Advantages of Formal communication:

i. It passes through line and authority and consequently ensures the maintenance of
authority as well as accountability of the executive in charge.
ii. It helps to develop intimate relations between immediate boss and his
subordinates.
iii. It ensures authenticity and genuineness of the message communicated
because of the responsibility of the person involved
iv. It keeps uniformity in the dissemination of information.

3.1.2.2 Disadvantages of Formal communication:

i. It increases the workload of various managers as all communications are to

be transmitted through them.
ii. It widens the communication gap between top executives and employees at
lower level.
As a result it may adversely affect their relationships.
iii. It may dilute the accuracy of the message when filtering and colouring
taking place at the middle level.
iv. It encourages the tendencies of red tapism, delay tactics and suppressing of
information by superiors causing unnecessary harassment to the
subordinate.

3.1.2.3 Types of Formal Communication:

Formal communication may be Downward, Upward or Horizontal.

3.2 DOWNWARD COMMUNICATION:

Downward communication flows from top to bottom of the organizational

hierarchy and carries message from higher authority to lower. Downward
communication is suitable for an organisation in which the line of authority
runs distinctly downwards, with each rank clearly below another, to which it is
directly related.

28
3.2.1. Objectives of Downward Communication:

• To give specific directives about the job being entrusted to a subordinate.

• To explain organizational policies, programmes, and procedures.
• To apprise the subordinates of their performance.
• To give the subordinates information about the rationale of their job so that
they understand their job in relation with the organizational goals.

3.2.2 Media of Downward Communication:

Downward communication can be oral and written. Important directives to

initiate actions may be communicated through letters; policies and procedures
may be announced through circulars, house organs, manuals, bulletins, etc.
However downward communication is dominated by oral means.

3.2.3 Benefits of Downward Communication :

• It helps to explain to the subordinates the organizational plans, policies,

programmes, and procedures, work methodology and other necessary
information for performing the job.
• It helps in conveying to the subordinates the expectation of the
management from them.
• It acts as a means to control the activities of the subordinates with active
feedback.
• It provides motivation to the workers to excel their performance.

3.2.4 Limitations of Downward Communication :

i. Under and over communication: Downward communication is usually

affected by either under-communication or over communication. The
superiors may act in a presumptuous manner; they may communicate the
decisions but withhold relevant background information
ii. about how those decision were arrived. Under communication may
sometimes involve incomplete instructions leading to unsatisfactory
performance.
iii. Delays: Delays occur in transmission of message because of long line of
authority involved. Moreover excessive time consumed in transmitting the
message results in loss of its significance.
iv. Distortion: In long lines of communication, information is not only lost but
even distorted. Exaggeration, understatement, unconscious twist to facts is
part of human nature. Whenever a piece of information passes on from one
individual to another, it loses a little of its authenticity.
v. Built in resistance: Downward communication has too much of
authoritarianism. The subordinates do not get any opportunity of
participating in the decision making process.

29
3.2.5 Pre-requisites of Effective Downward Communication:

i. Well informed: The top, middle, and lower level managers should be well
informed about the overall objectives, activities, and achievements of their
organisation, so that they will be able to transmit information to their
subordinates in a effective manner.
ii. Positive communication climate: Effective communication would be
possible only if a positive communication climate is set up, where in the
superior is willing and ready to pass on information and the subordinate is
willing and ready to accept and act upon it.
iii. Prevention of over concentration: Over concentration of authority at the
higher levels for issuing orders and instructions should be avoided. There
should be sufficient delegation of authority at middle and lower level
management; this would result in avoidance of delay in issuing necessary
orders and instructions. Further the line of communication should be
shortened to avoid possibility of distortion and dilution.
iv. Proper communication plan: The managers must plan in advance the
amount, time and content of message to be communicated. This will ensure
that there is neither communication gap, nor over or under
communication.
v. Proper channelisation: The information should pass through the
hierarchical structure of the organisation. It should not by-pass, as it will
create behavioural problems in the organisation.

3.3. UPWARD COMMUNICATION

Upward is the flow of message from subordinates superiors. Up ward

communication takes place in the form of feedback of information asked by
superior to subordinates and voluntary communication from subordinates
conveying his suggestions, complaints, opinions and innovative ideas.

3.3.1 Methods of Upward Communication:

i. Open door policy: In open door policy, employees are allowed to visit the
superior’s office and discuss with them without any reservations. This
policy would be effective if the executives and employees work by
considering other party’s needs and convenience.
ii. Complaints and Suggestion boxes: Suggestion boxes are placed at
convenient places at the factory and office and the employees are
encouraged to drop their suggestions complaints or opinion in the box.
iii. Periodical meetings: Periodical staff or group meetings are held to invite
suggestions, opinions or other ideas from the subordinates.

30
iv. Informal gathering: Informal gatherings in the form of social get-
togethers are arranged by the organisation or by individual departments.
This provides an opportunities for the employees to share their ideas,
opinions and feelings with their superiors.
v. Direct correspondence: Superiors may sometimes correspond with their
subordinates directly or the employees may write to their subordinates,
seeking certain clarification or advice.
vi. Reports: Employees may be required to submit reports about the
progress of their work at regular intervals.

3.3.2 Merits of Upward Communication:

i. Creates insight into behavioural problems: Upward communication

provides the management the advantage of greater insight and
penetration into the behavioural problems of their employees. The
management can know the attitudes, opinion, and feelings of their
employees regarding organizational matters. Accordingly they can mould
and motivate them better.
ii. Creates confidence and trust: Upward communication creates mutual
confidence and trust among executives and employees. By conveying their
feelings, complaints, grievances, etc to their superiors the subordinates
can feel relieved of their pent up negative emotions or attitudes.
iii. Enhances learning and excellence: As the employees come forward and
convey new and innovative ideas to the management they get a feeling of
high esteem and motivation if they are listened and rewarded properly.

3.3.3 Demerits of Upward Communication:

i. Concealment: It is evident in certain cases that the immediate superiors

may actively conceal the problems and grievances of their employees from
the top management fearing loss of their power and position.
ii. Delays and distortion: Usually in upward communication delays and
distortion takes place, especially when line of communication are long.
iii. By passing: Sometimes it happens that the workers bypass their
immediate superior which may result in resentment. This proves harmful in
two ways. The superiors who have been by passed feel slighted, while the
high-ups get suspicious of the workers intensions. The relation between the
employee and the immediate superior get strained and work suffers.
iv. Poor listening: Poor listening skill of the superiors discourages the
subordinates to come up with innovative ideas. Further the superiors with
poor listening skills cannot understand the problems of subordinates.

31
3.3.4 Pre-requisites of effective Upward Communication:

i. Healthy atmosphere: A healthy and congenial atmosphere for

communication should be created and maintained. Behavioural problems
among executives and employees might spoil the communication flow.
ii. Reward for constructive suggestions: Constructive suggestions by the
employees should always be rewarded so that they would take the initiative
to give innovative ideas.
iii. Effective listening: The superiors should always listen to the subordinates
both emotionally and intellectually. This would give a feeling in the minds
of the subordinates that the management is genuinely concerned with their
problems and grievances.
iv. Formal system for suggestions: There should be some formal system to
handle the suggestions of the employees.
v. Shorter lines of communication: The lines of communication should be kept
as short as possible to avoid the delays and distortions in the message
being communicated. Distortion by editing can be avoided if the lines of
communication are kept as short as possible.
vi. Proper analysis of communication: All upward communication should be
properly analysed. Genuine grievances deserve to be immediately resolved.
Suggestions for improvement, if found feasible, should be taken up for
implementation and employees responsible for them should be suitably
rewarded.

3.4 HORIZONTAL OR LATERAL COMMUNICATION:

Communication between departments or people at the same hierarchical level of

an organisation may be termed as horizontal communication.

3.4.1 Importance of Horizontal Communication:

ƒ For promoting understanding and coordination among various
departments.
ƒ Solving problems which involve the efforts of various specialists.
ƒ Resolving conflicts among various personnel.
ƒ Exchanging information among various employees of the department.
ƒ Promoting social relations among employees of the organisation.

32
3.4.2 Methods of Horizontal Communication:
ƒ Horizontal communication is effectively carried on through oral means.
Face-to face exchanges of views or brief conversation over the telephone is
very convenient for horizontal communication.
ƒ Periodical meetings among the departmental heads
ƒ Letters, memorandums, short memos and reports are some of the written
forms used in horizontal communication.

3.4.3 Pre-requisites of Horizontal Communication:

Horizontal communication helps to coordinate the activities of different
departments and strengthens the relationship among employees. The following
pre-requisites are essential for effective horizontal communication.

i. Meeting of different departmental heads and employees should be

conducted periodically.
ii. There should be a networking of the employees and heads of various
departments through the electronic media for a smooth flow of
communication.

3.4.4 Problems of Horizontal Communication :

i. Rivalry among employees: Sometimes the employees at the same level
may feel threatened and insecure in the environment of competition
among themselves. As a result they do not communicate freely.
ii. Specialisation: The various specialists employed in the organisation have
their own language related with their field which is incommunicable to
non specialists. This naturally creates problems in the free flow of lateral
communication.
iii. Physical barriers: Physical barriers like noise in the channels and
distance among the employees or departments are obvious barriers in the
lateral communication.
iv. Lack of motivation: Lack of motivation among employees to work and
cooperate with other employees may be one of the major drawbacks of
horizontal communication.

3.5 INFORMAL COMMUNICATION

Informal communication takes place outside the formally prescribed and

planned network or channel. Unlike formal communication which is deliberately
created or documented; informal communication is spontaneous off the records
and beyond organizational hierarchy. It has not set rules and regulations and no
particular direction. It is also called as grapevine. Certain organisations
encourage informal communication along with formal communication so that
effective communication may take place.

33
3.5.1 Merits of Informal Communication:
i. Safety valve: Apprehensions experienced by employees on matters like
promotions and retrenchments become an obsession with them. An
informal talk about them may not alleviate their fears, but it certainly
provides them emotional relief. Thus grapevine communication acts as a
kind of safety valve for the pent-up emotions of the subordinates.
ii. Speedy and spontaneous: Compared with formal communication
network communication flows at faster rate in a spontaneous way.
Through this certain formal messages can be confirmed, expanded and
expedited.
iii. Organisational solidarity and cohesion: The existence of the grapevine
proves that the workers are interested in their associates. The very fact
that they talk among themselves helps to promote organisational
solidarity and cohesion. Properly used the grapevine may even raise the
morale of the workers.
iv. Multidirectional: Informal communication is multidirectional; as a
result, it can flow in any direction and degree, with no constraint.
Because of these advantages there is easy and economical access of
communication to large number of employees in the organisation.
v. Social relations: Informal communication strengthens the social
dimensions of the organisation as it provides a platform for employees’
social gatherings not only in organisation but also outside.
vi. Catharsis: Informal communication is cathartic as it enables the
employees to discharge their negative emotions and feel relieved through
talking and meeting each other.
vii. Supplement to other channels: All information cannot be transmitted to
the employees through the official channels. There are certain matters
which are difficult to communicate through formal channels, like feeling
of employees towards executives either general or particular with regard
to certain decisions. Cutting feedback through informal channels
management can think over their policies and procedures.

3.5.2. Demerits of informal communication:

i. Misleading: The grapevine communication is usually incomplete. It

usually happens that informal communication carries half truth, rumors,
false and fabricated stories, etc. Because of lack of their accuracy and
authenticity they misinform employees or executives or even mislead
them.
ii. Distortion: The chances of distortion of message of message are very high
as every person hearing the message tries to add, subtract, mould or
colour the message according to his understanding and whims and
wishes. As a result the original communication gets distorted and looses
its importance.

34
iii. Disastrous for organisations: Rumours, distorted messages, gossips etc.
create misunderstandings among employees and adversely affect their
relations. A rumour might have spread and caused serious damage before
the management becomes aware of it and can take any rectifying steps.
iv. No responsibility: In formal communication the employees or executives
giving misinformation or misleading facts can be made responsible, but in
case of informal communication no one could be held responsible as it is
difficult to know the origination of the message.

3.5.3. How to use Grapevine effectively :

i. The management should follow the open communication policy to prevent

the spreading of rumours.
ii. If there is any false rumour, management should immediately clarify or at
times contradict it through written notice or circulars.
iii. Workers should be encouraged to participate in decision making process.
With this rumours can be effectively encountered.
iv. Staff meetings or departmental meetings can be convened at regular
intervals for spreading messages. It should be ensured that these
meetings are effective and that the message gets spread properly.
v. To spread information among employees, management can contact active
members of the various groups who should be informed accurately and
adequately.
vi. Informal communication helps in conveying the reactions and response of
employees; therefore it should be used to feel the pulse of the employees
in specific situations, especially in case of certain sensitive issues.

3.5.4 Types of Informal Communication or Grapevine:

There are four types of informal communications:

™ Single strand
™ Probability
™ Gossip
™ Cluster.

35
3.5.5. Types of Grapevine Chain : (Diagram)

C
E B

D
D
F
C
E B B

B Gossip
C C

D D

Single Strand Cluster

B C
H
D
G I
F
E
J
Probability

(Transmission of information along the grapevine)

a) Single strand : The single strand chain involves the passing of information
through a long line of persons to the ultimate recipient. A tells B, who tells C,
who tells D, and so on, till the information has reached most of the person
concerned.

b) Probability : The probability chain is a random process in which A transmits

the information to others in accordance with the laws of probability and then
these others tell still others in a similar manner.

c) Gossip : In the gossip chain, A actively seeks and tells everyone. This chain is
just like the wheel where A is at the centre and the information passes along the
spokes of the wheel to others stationed on the rim.

d) Cluster : In the cluster chain, A tells selected persons who may in turn relay
the information to others selected individuals. Most of the informal
communication follows this chain.

36
e) Consensus : Consensus involves consultation. The chief executive or the
members of the top management play a very significant role in enabling all the
members to arrive at a consensus. The consensus process operates in this
manner that, first the chief executive takes up the problem and critically
analyses it to understand its exact nature. If necessary, he collects additional
facts and information that might have a bearing on it. Then he tries to explore
various ways and means to solve it. Then the process of consultation begins. He
contacts the members individually or invites them to a meeting. The problem is
spelled out. The views of the members are carefully listened to. In the light of
this discussion the solution most likely to be accepted is put forward and a kind
of decision is arrived at. The whole process depends on the chief executives role
in the sense that whether he will allow the discussion just to fritter away into
trivialities and sidetrack the main issue or will he gives it a positive direction and
help the members to arrive at a consensus.

Merits of consensus :

i. Since the decisions are taken after consultation among various members,
they find it easy to accept them. The consensus process is often used in
settling issues between the management and the trade unions.
ii. Consensus helps in projecting an image of unity and harmony in the
organisation. The employees develop confidence in their superiors and their
morale is considerably boosted.
iii. Unnecessary and undesirable conflicts and splits are avoided.

Demerits of consensus :

i. One of the most important disadvantages of the consensus process is that

sometimes a member is forced to subscribe to a view he does not hold. If
dissents are all the time being stifled in the name of consensus, discontent
keeps on simmering below the surface and may at some time erupt.
ii. Very often the process of consensus becomes an accommodation of
interests.
iii. If decisions are taken through consensus after holding consultation s
among the subordinates, the latter may get a feeling that their superiors
are incapable of taking independent decisions.

SUMMARY

Channels of communication are classified as External and Internal

communication. External classified as Outward and Inward communication.
Internal is classified into Formal and Informal. Formal is further classified to
vertical and horizontal. Vertical classified to Downward and Upward
communication. Horizontal classified to Written, Oral and Grapevine
communication.

37
CHECK YOUR PROGRESS

1. Grapevine is a credible and reliable channel of communication.

Comment.
............................................................................................................................
............................................................................................................................

2. List out any two advantages and disadvantages of Upward and

Downward Communication.
............................................................................................................................
............................................................................................................................

REVIEW QUESTIONS

1. Distinguish between Downward and Upward Communication networks.

2. Make a comparative study of Horizontal and Diagonal Communication.

38
 LESSON-4
BARRIERS TO COMMUNICATION

LEARNING OBJECTIVES
After completing this lesson, you must be able to,
• Understand the barriers to communication
• Major barriers to communication – Wrong choice of medium, physical,
semantic barriers, different comprehension of reality and socio-
psychological barriers.

CONTENTS
4.1. Introduction
4.2. Physical Barriers
4.3. Barriers Caused by Wrong Choice of Medium
4.4. Semantic Barriers
4.4.1. Interpretation of words.
4.4.2. Bypassed instructions.
4.4.3. Denotations and Connotations.
4.5. Cultural Barriers
4.6. Socio Psychological Barriers
4.6.1. Attitudes and Opinions.
4.6.2. Emotions.
4.6.3. Closed Mind.
4.6.4. Status – consciousness.
4.6.5. The source of communication.
4.6.6. Inattentiveness.
4.6.7. Faculty Transmission.
4.6.8. Poor retention.
4.6.9. Unsolicited Communication.
4.7. Different Comprehension of Reality
4.7.1. Abstracting.
4.7.2. Slanting.
4.7.3. Inferring.

Summary
Check Your Progress
Review Questions

39
4.1 INTRODUCTION

Communication, in the process of transmitting information. If the information,

as it is present in the mind of the transmitter, is transferred unchanged into the
mind of the receiver, we say that a perfect act of communication has taken
place. If we recall how many times we have had an experience of
miscommunication (sometimes causing embrassing misunderstanding), we shall
realise that there does not exist any such thing as may be described as perfect
communication.

Miscommunication can originate at three levels : at the level of the transmitter,

of the medium, or of the receiver. In technical parlance, anything that obstructs
free flow of communication is called ‘noise’. Or we may refer to it simply as a
‘barrier’ to communication. In the present chapter we shall try to understand
some of the major barriers and ways to overcome them.

Communication is effective if it flows freely in a communication loop between the

sender(s) and receiver(s). Free flow means uninterrupted transmission of the
information / the message through an appropriate medium, correct
comprehension of the message by the receiver and a relevant and appropriate
feedback from him. Misunderstanding, irrelevant response and undesirable
reactions are the consequences of a failed communication exercise. Failure of
effective communication of a failed communication exercise. Failure of effective
communication results in loss of valuable time, resource, material and even life.
You know that in an authoritarian set up, be it state or a business or even a
family, communication in unidirectional and is so fragile that it would snap
anytime leading to irreparable damage. Though these may be indirect results of
communication failure, an effective channel of communication could have
reduced the damage. When we say that some one has as open mind, we mean
that he is transparent and receptive which in turn means that he is flexible and
not rigid. All these characteristics are related to the mental make-up and
communication style of the individual. Barriers to communication range from
the simple distracting noises to the most complex psychological factors. These
barriers may cause a simple communication gap or a total failure of
communication. A communication gap can be bridged but retrieval of a
situation, damaged by miscommunication would be rather difficult.

40
 Barriers to Communication

Physical / Barriers caused Semantic Cultural Psychological / Barriers caused

Environmental by wrong choice Barriers Barriers Attitudinal by varying
Barriers of Medium Barriers perception of
reality
(Caused by) (Caused by)
(Caused by)
(Caused by)
(Caused by)
Varied Diversity Varied
Connotative of Cultures Connotative Levels of
Meanings Meanings Understanding
and
Comprehension

Time Place Space Climate Noise Choice of

Medium

4.2 PHYSICAL BARRIERS

1. Noise :

Noise is quite often a barrier to communication. In factories, oral

communication is rendered difficult by the loud noise of machines. Electronic
noise like blaring often interferes in communication by telephone or loudspeaker
system. The word ‘noise’ is also used to refer to all kinds of physical interference
like illegible handwriting, smudged copies of duplicated typescript, poor
telephone connections, etc.,

2. Time and Distance :

Time and distance also act as barriers to the smooth flow of communication.
The use of telephone along with computer technology has made communication
very fast and has, to a large extent, overcome the space barrier. However,
sometimes mechanical breakdowns render these facilities ineffective. In such
cases, the distance between the transmitter and the receiver becomes a mighty
barrier. Some factories run in shifts. There is a kind of communication gap
between persons working in different shifts. Faulty seating arrangement in the
room can also become a barrier to effective communication, for whichever seats
the employees may be occupying, they definitely want an eye contact with one
another.

41
3. Space :

Space plays an important role in an oral communication situation. It can act as

a barrier to communication or act as an aid promoting good communication.
Experts classify an oral communication situation on the basis of the distance
maintained between sender and receiver as Intimate, Personal, Official and
Public.

4. Intimate :

If the distance between the two, the encoder (sender) and decoder (receiver) is
less than a foot and half (18 inches), the situation is labelled intimate. The
mother coddling the baby, the father and the son, or husband and wife in a
familial / private situation communicate at an intimate level of space.

5. Personal :

Friends and peer groups who are in a process of communication maintain a

distance of about two to three feet which is personal.

6. Official :

In official situation, the space should be at least four to five feet depending on
the message or information.

7. Public :

Then distance between the speaker (the encoder) and the listeners (decoder, in
this context an audience) should be over ten feet, in a public situation. Any
reduction of this minimum space parameters will lead to awkward and
embarrassing situations.

8. Place :

The place of the location where a communication process takes place can
degenerate into a barrier to effective communication. A simple comparison of
the surroundings in a Government / Municipal Office and the ambience
provided in a multinational company will show how place and surroundings play
an important role in effective communication. Inconvenient place, rickety
furniture, poor lighting, inadequacy of space are all factors that make people
irritable / impatient and annoyed. Friction and conflict erupt easily in such
places which will mar the transaction of any business, leave alone business
communication. Even though it is part of office management, its impact on the
communication process as a barrier is inevitable. Good ambience and suitably
lighted and ventilated places promote effective communication.

42
9. Climate :

“The talks were held in a cordial atmosphere and in a proper climate” say the
newspapers. Though the word climate refers to the human relations prevailing
there, it is no exaggeration to say that the actual room temperature helps people
to keep their heads cool ! Unfavourable climate can act as a barrier to
communication leading to wrong perception or decision.

4.3 BARRIERS CAUSED BY WRONG CHOICE OF MEDIUM

In one of the earlier chapters, we have discussed the various media of

communication available to us – oral, written, visual, audio-visual, computer-
based, etc., All these media have their relative merits and limitations. While a
properly chosen medium can add to the effectiveness of communication, an
unsuitable medium may act as a barrier to it. Let us consider the following
situations.
• An employee wants to express his regrets to his supervisor over his
misconduct. In this case, written explanation alone may prove to be
ineffective. Face-to-face communication will probably be the best. Let him
speak very little, but let him look remorseful; his supervisor will be satisfied
and the whole matter will be amicably settled.
• A manager wants to compliment an employee for a distinguished
performance. Shall be send a peon with a memo ? Don’t we know how
memos are usually resented ? The manger should choose a medium that
transmits his compliments with a personal touch.

4.4 SEMANTIC BARRIERS

4.4.1. Interpretation of words. Most of the communication is carried on

through words, whether spoken or written. But words are capable of
communicating a variety of meanings. It is quite possible that the receiver of a
message does not assign the same meaning to a word as the transmitter had
intended. This may lead to miscommunication.

What is the meaning of the word ‘value’ ? What do we exactly mean when we
say, “Radium is a valuable metal” ? Do we refer to its utility or its price ? Or both
? Peter Little in Communication in Business asks us to consider the following six
sentences.
(i) What is the value of this ring ?
(ii) What is the value of learning about communication ?
(iii) I value my good name.
(iv) I got good value for my money.
(v) There is something wrong with the tone values in all his paintaings.
(vi) A crochet has twice the value of the quaver.

43
There is no need to refer to Economics and economic interpretations to
understand that in these six sentences, the word ‘value’ has a series of
meanings, or more accurately, a series of areas of meaning. It is only from the
context that we can determine which area of meaning is to be assigned to a
particular word. But on account of different social, economic, cultural and
educational backgrounds, people interpret even the contexts differently. The
result is miscommunication.

4.4.2. Bypassed instructions. By passing is said to have occurred, if the

sender and the receiver of the message attribute different meanings to the same
word or use different words for the same meaning. Murphy and Pack have given
a classic example of how bypassed instructions can play havoc with the
communication process.

4.4.3. Denotations and Connotations. Words have two types of meanings:

denotative and connotative.

The literal meaning of a word is called its denotative meaning. It just informs
and names objects without indicating any positive or negative qualities. Words
like ‘table’, ‘book’, ‘accounts’, ‘meeting’ are denotative.

In contrast, connotative meanings arouse qualitative judgements and personal

reactions. ‘Honest’, ‘Competent’, ‘Cheap’, ‘Sincere’, etc., are connotative words.

Some of these words like ‘honest’, ‘noble’, ‘sincere’ have favourable connotations
: others like ‘cowardly’, ‘slow’, ‘incompetent’ have unfavourable connotations.
But there also exist a large number of troublesome words that have favourable
connotations in certain contexts and unfavourable connotations in others. One
such word is ‘cheap’. Look at the following two sentences.

They gave us cheap stuff.

At this shop, they sell things cheap.

In the first sentence ‘cheap’ refers to quality and has an unfavourable

connotation, in the second one it refers to price and is used favourably. ‘Fat
cheque’, ‘free enterprise’, ‘huge profits’ are capable of being interpreted
differently. It is because of the connotative meanings of the words that
sometimes remarks originally intended as a compliment are interpreted as an
insult by the receiver.

To avoid problems arising out of bypassed instructions and connotative

meanings of words, the following factors should be constantly kept in mind.

• We should prefer words which are familiar to the receiver in the

interpretation we wish to give them.

44
• If we want the receiver to give an unfamiliar meaning to a familiar word
within the context of our message, we should make it amply clear the first
time we use it.
• If we feel that a word being used by us is likely to be unfamiliar to the
receiver, we should make its meaning clear the first time we use it.
• Whenever possible, we should choose words with positive rather than
negative connotations.

4.5 CULTURAL BARRIERS

In the context of globalization and free trade, business communication has to

cut across different cultural identities. These invariably cause cultural barriers
that have to be overcome. The relaxed and leisurely pace of the Easteners, the
formal and official style of the Britishers, the casual and matter-of fact nature of
the Americans, the thorough nature of the Germans and the extreme courtesy
and politeness of expression of the French are all cultural features. It is easy for
an American to give his opinion even to his boss whereas decisions and opinions
are seldom expressed in the presence of elders and seniors in the East. To
overcome any cultural barrier to effective communication one has to possess an
understanding of the culture of the receiver(s) / decoder. Even in body language
there are variations. If a Filipino smiles, they say he is angry. The loop formed
by the tip of the thumb and index finger is a signal of agreement in North
America but an obscenity in the Southern States.

4.6 SOCIO PSYCHOLOGICAL BARRIERS

4.6.1. Attitudes and Opinions. Personal attitudes and opinions often act as
barriers to effective communication. If an information agrees with our opinions
and attitudes, we tend to receive it favourably. It fits comfortably in the filter of
our mind. But if an information disagrees with our views or tends to run
contrary to our accepted beliefs, we do not react favourably. If a change in the
policy of an organization proves advantageous to an employee, he welcomes it as
good; if it affects him adversely, he rejects it as the whim of the Director.

4.6.2. Emotions. Emotional states of mind play an important role in the act of
communication. If the sender is perplexed, worried, excited, afraid, nervous, his
thinking will be blurred and he will not be able to organize his message properly.
The state of his mind is sure to be reflected in his message. It is a matter of
common observation that people caught in a moment of fury succeed only in
violent gesticulation. If they try to speak, they falter and keep on repeating the
same words. In the same way, the emotions of the receiver also affect the
communication process. If he is angry, he will note take the message in proper
light.

45
4.6.3. Closed Mind. A person with a closed mind is very difficult to
communicate with. He is a man with deeply ingrained prejudices. And he is not
prepared to reconsider his opinions. He is the kind of man who will say, “Look,
my mind is made up. I know what I know. And I do not want to know anything
else. So just don’t bother me”. You approach such a man with a new proposal
to improve his business and he will immediately retort, “Look here gentlemen, do
you presume that you know my business better than I know ? I have been in
this line for the last twenty years. What can you teach me ?” Such a person is
not open to conviction and persuasion. And in all likelihood, he has not learnt
anything in the twenty years he has been in business.

If closed minded people can be encouraged to state their reasons for rejecting a
message or a proposal, they may reveal deep-rooted prejudices, opinions and
emotions. Perhaps, one can make an attempt to counteract those prejudices,
opinions, etc., But if they react only with anger and give a sharp rebuff to
anyone who tries to argue with them, they preclude all possibility of
communication.

4.6.4. Status – consciousness. Status consciousness exists in every

organization and is one of the major barriers to effective communication.
Subordinates are afraid of communicating upward any unpleasant information.
They are either too conscious of their inferior status or too afraid of being
snubbed. Status-conscious superiors think that consulting their juniors would
be compromising their dignity.

Status – consciousness proves to be a very serious barrier to face-to-face

communication. The subordinate feels jittery and nervous, fidgets about where
he is standing, falters in his speech and fails in communicating what exactly he
wanted to say. The officer, on the other hand, reveals impatience and starts
giving comments or advice before he has fully heard his subordinate.
Consequently, there is a total failure of communication; the subordinate returns
to his seat dissatisfied and simmering inside, while the officer resumes his work
with the feeling that his employees have no consideration for the value of his
time and keep on pestering him for nothing.

Such communication failures can be averted if the managers and other persons
in authority rise above the consciousness of their status and encourage their
employees to talk freely.

4.6.5. The source of communication. If the receiver has a suspicion about or

prejudice against the source of communication, there is likely to be a barrier to
communication. People often tend to react more according to their attitude to
the source of facts than to the facts themselves. Think of an executive in the
habit of finding fault with his employees. If once in a while he begins with a
compliment, the employees immediately become suspicious and start attributing
motives to the compliment. If a statement emanates from the grapevine, the
manager will not give credence to it, but the same statement coming from a
trusted supervisor will immediately be believed.

46
4.6.6. Inattentiveness. People often become inattentive while receiving a
message, in particular, if the message contains a new idea. The adult human
mind usually resists change, for change makes things uncertain. It also
threatens security and stability. So the moment a new idea is presented to
them, they unconsciously become inattentive.

4.6.7. Faculty Transmission. A message is never communicated from one

person to another in its entirely. This is true in particular of oral messages. If a
decision has been taken by the Board of Directors, it must be in the form of a
lengthy resolution. This resolution cannot be passed on to the factory workers
in the same form. It has to be ‘translated’ in simple language so that they may
easily understand it. But translation can never be perfect. In the process of
interpretation, simplification and translation, a part of the message gets lost or
distorted. A scientific study of the communication process has revealed that
successive transmissions of the same message are decreasingly accurate. In
oral communications, something in the order of 30 percent of the information is
lost in each transmission.

4.6.8. Poor retention. Poor retention of communication also acts as a barrier.

Studies show that employees retain only about 50 percent of the information
communicated to them. The rest is lost. Thus if information is communicated
through three or four stages, very little reaches the destination, and of that very
little also only a fraction is likely to be retained. Poor retention may lead to
imperfect responses, which may further hamper the communication process.

4.6.9. Unsolicited Communication. Unsolicited communication has to face

stronger barriers than solicited communication. If I seek advice, it should be
presumed that I will listen to it. But if sales letter comes to me unsolicited, it is
not very sure that I will pay much attention to it.

4.7 DIFFERENT COMPREHENSION OF REALITY

The reality of an object, an event, or a person is different to different people.

Reality is not a fixed concept; it is complex, infinite and continually changing.
Besides, each human being has limited sensory perceptions and a unique
mental filter. No two persons perceive reality in identical manners. On account
of different abstractions, inferences, and evaluations, they comprehend reality in
a different way. This may sometimes lead to miscommunication.

4.7.1. Abstracting. Abstracting may be defined as the process of focusing

attention on some details and omitting others. In numerous cases, abstracting
is both necessary and desirable, for it may save us valuable time, space and
money.

But abstracting poses a grave barrier to communication, for details which look
pertinent to one reporter may look insignificant or trivial to another. We do not
make allowances for these differences, and misunderstandings arise. Very often,

47
we yield to the ‘allness’ fallacy. We believe that whatever we know or say about
an object or event is all that is worth knowing or saying about it. And
unfortunately the less we know, the more sure we feel that we know it all. We
can overcome this barrier if we constantly keep in mind that an abstract can
never be the whole story.

(i) While abstracting, we should try to make our abstract as fairly

representative of the whole situation as possible.
(ii) We should realize that others can pick different ideas and facts from the
same situation and we should be mentally prepared to consider what they
have to say about it.

4.7.2. Slanting. ‘Slanting’ is giving a particular bias or slant to the reality. In a

way, slanting is similar to allness. In allness, we know only a part and are
ignorant of the rest, but we think that we know the whole. In slanting, we are
aware of the existence of other aspects, but we deliberately select a few and
make them representative of the whole. Unfortunately, the aspects that we
select are usually unfavourable. If a man is accustomed to heavy drinking, we
dub him as a drunkard and tend to forget that he might also be a good friend, a
loyal employee and a kind-hearted man. If one executive of a firm is held guilty
of fraud, we begin to suspect every other executive and the image of the firm is
spoiled. The overcome this barrier, we should try to be objective in our
observations and assessments and we should try to avoid the mistake of judging
the whole by what might be only a fraction of it.

4.7.3. Inferring. What we directly see, hear, feel, taste, smell or can
immediately verify and confirm constitutes a fact. But the statements that go
beyond facts and the conclusions based on facts are called inferences.

In business fields also, it is essential to make such inferences. Marketing

specialists, advertisers, architects, engineers, designers, are all required to draw
inferences. Being experts in their own fields, their inferences are even accepted
as legal evidence. But when non-experts draw inferences without trying to verify
facts, they get into communication trouble.

SUMMARY

The barriers to communication and the ways and means of overcoming them to
achieve effective communication are highlighted in this lesson. Barriers to
communication result in undesirable reaction and unfavourable response. The
communication exercise fails because the feedback is absent or falls short of
expectation. Barriers to communication are caused by environmental, physical,
semantic, attitudinal and varying perception of reality.

48
CHECK YOUR PROGRESS

1. List out any three types of semantic barriers.

............................................................................................................................
............................................................................................................................

2. List out any three socio-psychological barriers.

............................................................................................................................
............................................................................................................................

REVIEW QUESTIONS

1. What are the advantages of maintaining effective communication in a

business organization ?
2. How can space act as a barrier to communication ?

49
50
UNIT – II

51
52
 LESSON-5
LETTERS OF ENQUIRY

LEARNING OBJECTIVES

After reading this lesson, you must be able to,

• Outline the types of enquiries
• Discuss the features of an enquiry letter
• Explain offers and quotations.

CONTENTS
5.0. INTRODUCTION
5.1. Types of Enquiry
5.1.1. Features of Enquiry Letter
5.2. Quotations
5.2.1. Offer without engagement
5.2.2. Order and Quotation – A Comparison
5.3. Various Offers
5.3.1. Firm Offer
5.3.2. Offer without engagement
5.4. Terms used in Quotations
5.5. Specimen Letters

Summary
Check Your Progress
Review Questions

5.0 INTRODUCTION

An enquiry letter is neither a contract nor does it entail any contractual

obligation between the two. It is actually a preliminary exercise that may lead to
a contract. Traders send enquiry letters (1) when they want to buy a new kind of
goods which they have not been buying or, (2) when they want to renew a
contract under revised terms or, (3) when they want to discover new sources of
supply. If a trader or a buyer wishes to make the best bargain, he has to begin
his exercise with an enquiry letter.

53
5.1 TYPES OF ENQUIRY

Unsolicited Enquiry :
An unsolicited enquiry letter is written by a potential buyer interested in the best
bargain. He does it at his own initiative and convenience. He writes to firms
that sell the kind of product he requires or provides the kind of service he needs,
trying to elicit information on price / costs, quality, availability and other terms
of sale. An unsolicited enquiry, since it is at the writer’s initiative has to be
written in such a way that it gets the required response. The letter should have
the quality of completeness and clarity.

Solicited Enquiry :
A solicited enquiry is in response to an advertisement / sales letter of a seller.
Already the buyer has some information on the product or service. He requires
further details. It is not as lengthy as an unsolicited enquiry.

5.1.1 Features of Enquiry Letter :

An enquiry letter should clearly state what the information required is. If the
buyer has a particular article or service in mind, he should spell it out clearly.
The letter should have clarity. It should also be complete. All details regarding
the product, its quality, price, the quantity that can be supplied, the mode of
dispatch its cost etc., should be enquired into. The technical features that will
satisfy his requirement may not be familiar to the writer. Then the buyer should
clearly state the service that he expects from product and request the recipient
to suggest alternatives that will provide the required service. He should indicate
at the beginning itself that it is just an enquiry. An enquiry letter should be
drafted carefully so that is not misunderstood.

A letter of enquiry should be

• Straight forward, compact and courteous;

• Positive and confident in tone;
• Brief and to the point, yet clear, complete and correct.

Points to be remembered while writing a letter of enquiry

a) Give a detailed account of the exact type of product / service required.

b) Probable quantity required and the time-frame for the supply of the product
/ service.
c) Terms on credit, discounts, transit, packaging etc., should be enquired
into.

54
Replies :

Enquiries must be replied to promptly. Even when the seller does not stock the
goods asked for or even if he cannot agree to the terms mentioned in the letter, a
prompt reply, thanking the inquirer, must be sent. A prompt reply suggests that
the seller is fully conversant with business etiquette and has a genuine respect
for the buyer and his interest. Replies usually contain prices, quotations and
other terms of sales, such as discount, credit, delivery, etc., Price lists and
quotations may be sent separately or may be enclosed with the letter; in both
cases the letter of reply ought to contain a reference about them.

Replies to regular customers should clearly, correctly and accurately convey all
the information sought by them. They should be polite and direct and should
express gratitude for the enquiry made. Replies to ‘first’ enquiries (from new
prospects) are different from ‘routine’ replies. They must be drafted in such a
way that the enquiry may soon turn into a rewarding order.
In other words, they must contain ‘selling points’. Such ‘selling points’ will also
have to be included in letters written to promote the sales of products already
being marketed or to introduce a new product.

Guidelines for Drafting a Letter of Enquiry :

i) State clearly and briefly what you wish to buy and whether you want
general information, a price list, a catalogue or a quotation.
ii) If there is a limit upto which you can pay the price, do NOT mention that in
the letter, otherwise the seller may be inclined to hike the price to that
limit.
iii) Most suppliers state their terms of payment and delivery, so this need not
be asked for unless you want a special mode.

Some useful closing lines are,

• Your early reply will be appreciated.

• In your reply please include the delivery details.
• Please inform how soon you can supply the goods as we require them for
our immediate needs.
• If your goods find acceptance with our customers, we can place regular and
large orders with you.

5.2 QUOTATIONS :

An offer is general and voluntary. It is like an sales letter sent to all prospective
customers including existing customers. A quotation is a specific offer for sale.
It is made in response to an enquiry from a particular person or business house.
A quotation includes details about the prices of the specific goods desired, terms
of payment, conditions of delivery, etc.,

55
5.2.1 Offer without engagement
It is an offer in which the seller is not bound by the price and conditions stated
by him. He reserves the right to negotiate further before he finally accepts the
order.

While making offers, the seller must touch the following points :
• The quality of goods,
• The unit of weight or measure,
• Terms of payment, whether cash or credit,
• The mode and place of delivery (whether ex-warehouse, f.o.b., etc.,),
• The mode of transportation (whether by post, courier, train, steamer, etc.,)
• The time of delivery.
Offers must be made attractive.

5.2.2 Order and Quotation – A Comparison :

Order Quotation

An order quotes the price A quotation quotes the price.

An order is made voluntarily to A quotation is made in response to an
potential buyer. enquiry.
A quotation is sent to specific persons or
An order is sent to all prospects.
parties.
An order is followed by an
Quotation is followed by selection.
acceptance or rejection.
An order with acceptance becomes
Quotation is an invitation to a contract.
a contract.

5.3 VARIOUS OFFERS

There are two kinds of offers. They are (1) Firm Offer and (2) Offer without
engagement.

5.3.1 Firm Offer :

A firm offer stipulates a time frame for the buyer to accept the offer and make
the purchase. The offer is invalid beyond the time it stipulates. You have heard
of ‘festival offers’, ‘summer offers’ etc., Once the seller has made an offer, he
cannot raise the price within that period. The seller should keep to the offered
price not withstanding market conditions. It is unethical to revise an offer price
before the expiry of the stipulated time.

56
5.3.2 Offer without engagement :
An offer that is not firm, is an offer without guarantee of sales at the stated
price. The trader reserves the right to negotiate a new price. The trader can also
put additional or new conditions for sale and such an offer is called an offer
without engagement.

5.4 TERMS USED IN QUOTATIONS :

Term Meaning / Implication

Price of the goods at the warehouse of the seller, further
Ex-Warehouse
transport by buyer.

This price includes the cost of the goods and the charges of
At station
transporting them to the station named.

Price of the goods at the seller’s warehouse / factory. It

may be or may not include the cost of packing. The
Loco
quotation should specify whether packing charges are
included or not.
The charges of loading the goods into wagons are to be
Free on Rail
paid by the seller and are included in the quotation. ‘At
(F.O.R.)
Station’ price does not include loading charges.
Carriage Forward
Transport charges to be borne by the buyer.
(Carr. fwd).
Carriage Paid The cost of delivering the goods at the buyer’s address or
(Carr. pd). the nearest station to be borne by the seller.
Payment must be made within two or three days of the
Prompt Cash
arrival of the goods.
Cash with Order Cash should accompany the order, or the order will not be
(C.W.O.) executed.
Cash on Deliver Payment must be made when the goods are delivered to
(C.O.D.) the buyer.
A discount of 3 percent will be allowed on the price quoted
3 percent, 7 days
if the payment is made within 7 days of the Invoice.
Errors and Omissions Excepted – usually printed at the
left hand bottom of an invoice. The implication is that the
E. & O.E.
seller has the right of making corrections of errors or
omissions, if any.
A note prepared in prescribed form by the consignor or
Forwarding Note goods giving the particulars of goods consigned and the
name and address of the consignee.

57
5.5 SPECIMEN LETTERS

Example 1 : Ask a firm of furniture dealers to send their price list and
catalogue.

MODERN FURNISHERS
43 Ravivar Peth, Belgaum
25th July, 20..

Messrs. J.K.S. & Co.,

1st Cross, Vidyanagar,
Hubli.

Dear Sirs,

Kindly send us your latest illustrated catalogue and price list of ‘Home
Furniture’.

Yours faithfully,
R. Ramesh
Proprietor

Example 2 : Reply to the above Enquiry.

J.K.S. & COMPANY

Steel Furniture Manufacturers
1st Cross, Vidyanagar, Hubli

July 28, 20..

The Proprietor
Modern Furnishers
Belgaum

Dear Sir,

Thank you for your enquiry of July 25. We are glad to enclose the illustrated
catalogue and price list of ‘Home Furniture’.

Our Furniture is made of high-gauge steel sheets and pipes and is designed to
suit the ‘Luxury class’ customers.

Our normal Trade discount is 15%, and 5% extra for bulk orders exceeding Rs.
60,000.

58
The catalogue and price list will describe our products to you to your entire
satisfaction. However, if you need further details or assistance in meeting your
customers’ special requirements, you should feel free to write to us.

Yours faithfully,
for J.K.S. & Co.,
J.K. Shyam,
Partner.

Encls. : 1. Catalogue
2. Price List

SUMMARY

Enquiry is a preliminary letter that may lead to a contract. It can be a solicited,

unsolicited or a letter asking for a favour. The different types of reply letter are
dispatch of brochures and price list, offer for sale, send quotation or reply with a
complimentary slip.

CHECK YOUR PROGRESS

1. Answer the following questions in about four lines each :

a) What do you mean by solicited and unsolicited enquiries ?

.................................................................................................................
.................................................................................................................
b) Explain the following terms : FOR, FOB.
.................................................................................................................
.................................................................................................................
c) Mention any four important points that should be included in a quotation.
.................................................................................................................
.................................................................................................................

REVIEW QUESTIONS

1. When does a trader write an enquiry letter ?

2. What are the important features of an enquiry letter ?

59
 LESSON-6
ORDERS AND EXECUTIONS

LEARNING OBJECTIVES

After reading this unit, you must be able to,

• Explain the purpose of order form.
• Provide hints for drafting order letter.
• Draft letters of order, execution and cancellation letters.

CONTENTS
6.1. Orders
6.1.1. Form of Order
6.1.2. Essential elements in a business order
6.1.3. Hints for drafting an ‘Order’
6.2. Acceptance and Execution
6.2.1. Execution of Orders
6.3. Defective Order
6.4. Delay in Execution
6.5. Rejection of an Order
6.6. Specimen Letter of Rejection of an Order

Summary
Check Your Progress
Review Questions

6.1. ORDERS

For a buyer, making enquiries is the first stage. It enables him to get
information necessary to place his order. On the part of the seller, his reply to
the enquiry is the stage from where he expects and endeavours to obtain orders
from prospective buyers. The quotations are the ‘offer’ made by the seller and
the orders by the buyers are the ‘acceptance’ of the offer. This acceptance,
which is in the form of an order, is the ‘thread’ which establishes a legal relation
between the seller and the buyer. The order must be brief but clear, complete
and accurate so that it may be correctly understood and promptly executed.

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Orders are offers to buy goods or service from a seller. It is the acceptance of an
offer by a seller or the quotation of a seller. The preliminary details of the sale
have already been gone through resulting in the order from the buyer. The first
legally binding document between the buyer and the seller is the order. Once
the order is placed in response to a quotation or a firm offer, the seller proceeds
to execute the order. The order is a commitment on the part of the buyer to pay
for the sale once it is executed.

6.1.1 Form of Order :

Practically, all firms use ‘order form’ or ‘order blanks’ to place orders. These are
standardized order forms printed with columns for necessary information. The
advantage of this standardized form is that it contains all the instructions
necessary to be given to the seller and no important point gets omitted while
ordering, unless the buyer leaves out something from the description of the
goods he wants. These order forms are very common for repeat orders,
particularly in case of large firms, as well as for regular or routine orders.
However, each order form, in all cases, is accompanied with a covering letter
which may also make a mention of any special information that is not given in
the printed, pre-prepared order form.
Order form includes all relevant informations about time allowed for execution of the
order, about packing, insurance and transportation and about terms of payment.

6.1.2. Essential elements in a business order :

1. Open the letter with the good news of the order.
2. Thank the seller for the quotation sent.
3. State the number / date of the offer / quotation.
4. If it is a repeat order, thank the seller for the earlier sales.
5. (a) Specify the date by which you want the execution.
(b) Give details – number, name of the goods ordered with specific
description.
(c) Be clear on quantity ordered.
(d) Mention the negotiated / quoted price.
(e) Give forwarding, packaging directions.
(f) Provide all details on the mode of payment.
(g) Give an appropriate closure.
The order should have an opening that conveys the business message exactly.
An order becomes easy for execution if it is given a number and date and also as
a reference. It is advisable to prepare an order in duplicate so that the duplicate
copy can be filed by the buyer.
The seller should find out whether the order is,
a) authentic, signed by the authorized signatory, etc.,
b) clear on price and technical specification.
c) clear on payment terms and time frame for it.
d) clear on delivery terms.

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6.1.3 Hints for drafting an ‘Order’ :
1. Thank the seller for his quotations especially when special terms have been
offered; or
add a note of appreciation in the case of a repeat order.
2. Give specifications of the goods :
a) exact trade name, catalogue number, size, colour, style, design, quality, etc.,
b) price and discount ;
c) quantity desired for each item ;
d) alternative goods, if acceptable.
3. Give shipment or forwarding directions : goods to be sent by parcel post,
goods or
passenger train, truck or ship.
4. Give special instructions, if any, for packing, marking, insurance, etc.,
5. State the manner of payment :
a) debit to account
b) cash sent with order (C.W.O);
c) cash to be paid on delivery (C.O.D);
d) invoice to be sent by post or through a bank ;
e) bill to be drawn by the seller.
6. Close with what you wish to emphasise :
a) quality
b) prompt execution
c) discount
d) time factor, etc.,

6.2. ACCEPTANCE AND EXECUTION :

The letter of acceptance from the seller completes the contract. It is a binding
contract between the seller and the buyer. Unless there is an order and an
acceptance in reply, there is no contract. Both the buyer and seller have to
discharge their obligations according Indian Contract Act. The buyer cannot
withdraw or cancel the order after the letter of acceptance is issued by the seller.
If he attempts to withdraw or cancel the order after acceptance, it becomes a
breach of contract.

6.2.1. Execution of Orders :

The receipt of every order must be promptly acknowledged either by a ready-
printed cost post card or by a special letter. Every order is an opportunity for
the seller to build a profitable relationship with the customer. So the
acknowledgement of an order must express the seller’s pleasure and gratitude,
must appreciate the customer’s interest in the goods must be a medium of
mentioning the favourable aspects of the goods, terms and services.

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The acknowledgement of an order is a legal acceptance of all the points
mentioned in the order. Hence the order must be read carefully before accepting
and acknowledging it.

6.3 DEFECTIVE ORDER :

Sometimes sellers receive orders with incomplete information. Such orders, if

executed, may not fully meet the customer’s requirements. Hence, it is always a
good policy to write back to the customer asking for exact specifications before
executing the order. And to enable the customers to furnish to exact
specifications, sellers should enclose or send separately the necessary catalogue
and price list. Telling the customer that since his order is defective, it cannot be
executed or not acknowledging such orders will certainly annoy the customer
and lose the sales opportunity that every order has. Tact, suggestions and the
tone of being helpful are the most important qualities of such letters.

6.4 DELAY IN EXECUTION :

In some cases the seller may find it difficult to execute the order promptly or
within the period specified by the buyer. Delay in shipping the goods may be
caused by many factors like goods being out of stock, production being held up
on account of the scarcity of raw materials, machinery breakdown, strike or
lock-out, heavy orders on hand, shifting the premises, the customers asking for
credit or more favourable or special terms, etc., In all these cases it is desirable
to write to the buyers informing them of the circumstances in which the delay in
the execution of their order has become inevitable. They should be informed
about the probable time within which the goods can be despatched. Courtesy
also demands that the seller assures his customer that he is not being unduly
inconvenienced. It is also advisable to state what is being done to speed up the delivery.

6.5 REJECTION OF AN ORDER :

All orders cannot be accepted and executed. The rejection of an order may be
necessitated by extraneous factors or internal problems. It may be even due to
the buyer misquoting price or terms deliberately or by oversight. A rejection
letter is a bad-news letter for the buyer. The seller should build a buffer to
maintain goodwill. The seller can suggest alternatives to the ordered goods if
they are not available, alternative sources of supply or ask for a clarification and
resubmission of a defection order. Courtesy and politeness should be the
watch-words while drafting a rejection letter.
A specimen of a rejection letter in response to an order is given below.
Reason : Non availability of goods.

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6.6 SPECIMEN LETTER OF REJECTION OF AN ORDER :

AQUA FAUCETS LTD.

1237 Gurudwara Lane II
CHANDIGARH 160 055.

Your Ref.: Order No. 221 dated 18 July 2003

Our Ref : MAK / NIL / 27 25 July 2003

M/s. Gey Hardwares,

23 Chamiers Road,
Ootacamund 643 002.

Gentlemen :

We very much regret that we are unable to accept your order for taps and
faucets of your specifications. Taps and faucets of such dimensions are no more
manufactured or marketed. Moreover, such large quantities you require may
not be available even in second-hand markets. If it is not out of place, we
suggest that you advise your buyer, the hotelier to get the entire plumbing
redone with technically advanced taps and faucets which we are marketing now.

Yours faithfully,

Fateh Singh
Marketing Manager

SUMMARY

The purpose of order form has been explained in this unit. The hints for
drafting an order letter have been discussed. A few specimen letters are given
for your reference.

CHECK YOUR PROGRESS

1. You are the manager of a college. Make an order to a stationery

dealer for the stationery requirements of your college.
................................................................................................................
................................................................................................................

REVIEW QUESTIONS

1. What are the essential features of a business order ?

2. You have sent an order for account-books, but the firm has failed to supply
them within the specified time. Draft a letter for cancelling the order.

64
 LESSON-7
COMPLAINTS AND ADJUSTMENTS

LEARNING OBJECTIVES

After reading this lesson, you must be able to,

• Discuss the causes for complaints.
• Draft complaint, adjustment letters.

CONTENTS
7.1. Complaints and Suggestions
7.1.1. Sources and Cause of Complaint
7.2. Nature and Causes of Claims
7.3. Specimen Complaints
7.4. Hints for Drafting Complaints
7.5. How to write a letter of claims
7.6. Guidelines for writing complaints (Claims)
7.7. Various causes for complaints on the part of customers
7.8. Adjustment
7.8.1. Adjustment Policy
7.8.2. Hints for drafting replies
7.8.3. Guidelines for Writing Adjustment Letters
7.9. Letters – Specimen
7.9.1. Alternative Reply to Specimen Complaint No. (Rejecting the
Complaint)
Summary
Check Your Progress
Review Questions

65
7.1 COMPLAINTS AND SUGGESTIONS

“As long as men are men and machines are machines, and not infallible, there
are bound to be imperfections and mistakes”. From the time the order is
received till the goods reach the customer, many persons are involved, and there
is every possibility of inadvertent mistakes being committed by someone. This
may inconvenience the customer and even cause him financial loss. He has,
therefore, every reason to complain to the seller.

When a customer, individual or a concern is dissatisfied with a product, service

or policy he becomes unhappy. His reactions are immediate and strong. He
reacts in a fit of anger. If he is really interested in solving the problem, he
should adopt a temperate approach (showing self-control).

Sometimes the goods/services that you buy are delayed or not upto the mark
and you have to lodge a complaint with the seller so as to get an adjustment (i.e.
redressal of complaint).

A complaint letter is to be written as the receiver would like to receive it. It

should not be an angry or emotional outburst. Hence, it is to be written calmly,
with the assumption that the complaint is going to be corrected. It is written
tactfully, with due consideration for the feelings of the receiving party. You must
also bear in mind the possibility that the party which receives the complaint
letter may be different from the one responsible for the complaint.

Thus, we need to avoid expressions like –

I regret to report that ....
We’re quite surprised to find that ....
It appears that enough care was not taken...
We should also be open to the possibility that the complaint may not be genuine
but the result of some misunderstanding on the complainant’s part.

7.1.1 Sources and Cause of Complaint :

• Incomplete or defective order,
• Wrong directions to the despatch section,
• Mistake by the accounts section in preparing the invoice.
• Despatch section carelessly despatches (a) goods of wrong quality, size,
brand, pattern, colour, etc., (b) defective pieces,
• The article supplied may have some inherent manufacturing defect not
detected at the time of inspection,
• Defective packing that might lead to the damage of goods in transit,
• Abnormal delay in sending the consignment, etc.,

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It is often supposed that the making of complaints requires no special care, but
this supposition is very far from the truth. If a wrong is to be righted, making a
complaint requires tact, carefulness and the art of convincing. Clarity,
courteousness and an inoffensive style of writing are extremely important in a
letter of complaint. The complaint should be made politely but family without
showing any signs of anger.

7.2 NATURE AND CAUSES OF CLAIMS :

Any business transaction involves a seller and a buyer. The buyer requires
quality goods or good service and the seller needs adequate financial
compensation. It is a mutually beneficial contract. So a dissatisfied customer
makes a claim. The scope for claims in business stands recognized today. That
is why some business establishments keep a “complaints book” for customers to
use in case of need. But the word complaint has acquired bad connotations.
So, some business houses have named the book a ”suggestion book”). A ‘claims
letter’ is also considered to be a complaint letter. Often, claims and complaints
are used interchangeably in business. But claims letters have a specific
objective. They ask for replacement, adjustment, refund or even compensation.
Complaint letters sometimes stop just with a complaint, whereas a claims letter
asks for an adjustment.

7.3 SPECIMEN COMPLAINTS :

Dear Sir / Madam

Subject : Wrong Goods Supplied.

On 3rd March 2006 I ordered one dozen triple edge shavers of your company
under my order no. A – 113. On opening the parcel it was found that I had
received double edge shavers. They will not serve my purpose, hence I have to
ask for a replacement or refund.

Please advise how the goods may be sent back to you and a replacement obtained.

Yours faithfully.

7.4 HINTS FOR DRAFTING COMPLAINTS

• Make a clear statement of the mistake in a calm, courteous and matter-of-

fact style.
• The claim should be specific. Clearly identify whether the fault lay with the
goods supplied or service rendered. A reference to the order or quotation or
date and time of arrival of goods, etc., is also necessary.

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• Explain the nature and extent of inconvenience or damage caused in terms
of money, sales, service or goodwill.
• State the steps necessary to rectify the situation.
• Appeal to the supplier’s sense of fair play and pride. Make a courteous but
firm request that the matter should be attended to promptly. Be definite
about what you are asking for. (If the error is persistently repeated or if the
earlier appeals have gone unheeded, it may be necessary to give a threat of
legal action).

7.5 HOW TO WRITE A LETTER OF CLAIMS :

• A letter of claim should not be written in a fit of anger.

• It is a persuasive letter and should be drafted in such a way that it
convinces the receiver.
• It should be courteous and tactful.
• The letter should not be judgemental. Do not rush to hasty conclusions.
• The complaint letter should attract the attention of the receiver at the
opening.
• The complaint letter should give the precise details viz-a-viz the complaint.
The defect / discrepancy should be pointed out.
• It should give / suggest a method of easy action.
• A complaint should be timely. Timely complaints receive better attention
than unduly delayed ones.

7.6 GUIDELINES FOR WRITING COMPLAINTS : (CLAIMS)

An effective complaint letter is well grounded in facts and is worded firmly but
courteously. Here are some tips for writing it :
(i) Write a complaint letter immediately. If time is lost, the party at the other
end may have difficulty in investigating.
(ii) Do not assume that the supplier was to blame. The true cause of the
complaint may be elsewhere.
(iii) Make a thorough enquiry and investigation at your end and make sure you
have a valid ground for complaint. Also, when writing to the supplier, give
all necessary details like date, invoice no., item or items, and the exact
nature of complaint.
(iv) Ask for a specific remedy or adjustment to solve the complaint.
(v) Avoid being rude or sarcastic.
(vi) Address the complaint to the department designated for the purpose, e.g.
Customer Relations Department.

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7.7 VARIOUS CAUSES FOR COMPLAINTS ON THE PART OF CUSTOMERS

Some of the major causes for complaints in ordinary business are,

(i) Wrong goods have been supplied.
(ii) The service received is not up to the mark or as agreed.
(iii) The quality of goods is not satisfactory.
(iv) The goods are received in a damaged condition.
(v) Higher prices are charged.
(vi) There is a delay in supply.

7.8 ADJUSTMENT

A customer, whether he has a real or an imagined cause of complaint, is at least

entitled to an explanation. Every complaint received by a trader is an
opportunity to make a friend as well as an opportunity to save a customer. If
the trader wishes to keep his customer’s business, it is important for him to
answer complaints as specifically and as promptly as possible. Promptness does
not call for a hasty decision without going into the details of the matter. But if
investigation about the complaint is expected to take time, the customer
deserves an immediate acknowledgement informing him that his claim is under
due consideration.

7.8.1 Adjustment Policy

The customer is always right because no one complains unless there is reason to
complain. If this policy is followed, all claims are granted. Such a policy is not
considered to be healthy, for it encourages unscrupulous customers to make
false complaints.

Fair claim, fair adjustment so that only genuine claims are granted.

Buyer beware ! “Caveat emptor” is a policy that does not entertain any claims. It
is considered to be a most unbusinesslike policy and no firm can adopt it unless
it wants to run itself.
Every complaint is unique, depending upon the merit of the issue and the
temperament of the parties involved.

7.8.2 Hints for drafting replies :

• Acknowledge the letter and thank the customer for pointing out to you
something that needs improvement.

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a) The customer is right
• When the customer is right, admit the fault at once, frankly, without
making excuses or giving unconvincing explanations. Your explanation will
only reduce the impact of your frank acceptance.
• Regret the mistake sincerely and say you will try it does not recur. Don’t
apologise profusely. Don’t create fuss over it. Allow it to be forgotten.
• Don’t start giving unnecessary details of how the mistake occurred. The
customer looks for three things : (1) You regret the mistake (2) You make
amends wherever possible. (3) You promise to take steps that the mistake is
not repeated. So let your explanation be very brief.
• If you are setting things right – making corrections or adjustments – don’t
give the feeling as if you were obliging the customer. You are doing it
because it is the only right thing to do. An air of condescension belittles or
humiliates the customer and he resents it.
b) The customer is at fault
• Even if you are convinced at heart that the customer is unfair,
unreasonable or discourteous, don’t react violently. Say that perhaps he is
right, he may think so. Then gradually make him look at the situation from
your angle.
• If the customer can be accommodated, do it gracefully. If not, tell him
politely why he cannot be accommodated. Your letter must be couched in a
courteous language. It must be an ambassador of goodwill.
c) The carrier is at fault
• Express your thanks to the customer for bringing to your notice the delay
or damage in transit; show your sympathy for the inconvenience caused.
• State what adjustment you have made – asking the carrier to deliver goods quickly,
sending replacements, offering reduction in prices for the damages, etc.,
• Tell the customer how the damaged goods, if any, are to be dealt with,
whether they are to be left with the carrier, to be kept by the customer for
inspection by your representative, or forwarded to you at your cost, etc.,
• Assure the customer that steps will be taken to present the repetition of
such mistakes in future.
d) Some other party is at fault
• Tell the customer politely that investigations at your end reveal the mistake
occurred elsewhere. Ask him to get in touch with the postal authorities, or the
bank at his end, or any other agency involved. If it is your responsibility to contact
that agency, do it promptly and inform the customer.
• Try to be helpful. Tell him you are prepared to do all that you can. This will
earn you the customer’s goodwill.

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e) General
• Avoid the use of such words or phrases as might suggest that you doubt
the customer’s integrity or truthfulness.
• Never say you do not believe the mistake occurred. Mistakes do occur. But
if you start pretending surprise over it, it implies that you doubt the
customer.
• Irrespective of who is responsible for the mistake, or bad service, send a
prompt reply to the customer’s letter. It will give him the feeling that you
care. If you need time to investigate, acknowledge his letter, tell him that
you are on the job and will get in touch with him again. If possible, tell him
how soon he may expect your actual reply.
• If you are writing as Manager, never pass on the buck to some junior
member of your staff. It is the junior members the customer is going to
deal with in routine affairs. If you belittle some member in the eyes of the
customer, he or she will feel handicapped in future.
• Don’t take shelter behind such words as ‘It is the policy of our firm not
to.....’ The customer will not be satisfied. Politely, but briefly, explain to
him the reason for not accepting his plea.

7.8.3 Guidelines for Writing Adjustment Letters

From the supplier’s point of view, to solve the complaint, the following rules may
be kept in mind.

(i) A customer is satisfied when the seller takes the stand that the customer is
always right. Whether this is true or not, it is good to start an enquiry into
the complaint assuming that he is right.
(ii) Acknowledge the complaint promptly. State that it is being investigated.
Ask for details that may be necessary to check out the facts, including
documentary evidence.
(iii) If the complaint is not valid, point this out without causing offence to the
party. Appeal to his sense of reason.
(iv) If you notice an error on your part, acknowledge it and set the correction in
motion. Inform the customer of this, with due apologies. This will placate
the receiver’s feelings.
(v) Explain the circumstances in which things went wrong, and state the
company policy in such cases. This will define your role in solving the
complaint.
(vi) Thank the customer for bringing the error to your notice.

In letters granting adjustment, mention what adjustment you are going to give
and whether it is partial or full. Conclude the letter with words of goodwill and
assure the customer that you will be careful that such a thing will not recur.

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In letters refusing an adjustment, you need more tact. This is done with an
indirect approach. Before you convey your refusal to grant an adjustment,
create an atmosphere of goodwill. Explain why an adjustment is not admissible.
Say this in firm and clear words. Seek a continued good business relationship.

7.9 LETTERS – SPECIMEN

1. Reply to Specimen Complaint No. 1

Dear Mr. Aloney

We are sorry to learn from your letter that a mistake has occurred in
despatching goods to you. Our despatch section is under heavy pressure due to
an unprecedented demand for our goods. All the same, we request you to get in
touch with M/s. Krishna Medical Stores, Favvara Chowk, Indore and obtain
your replacement locally. For the inconvenience to you, please accept an extra
shaver as a gift.

We thank you for bringing this to our notice and assure you of our closer
attention to your orders in the future.

Yours sincerely

2. Reply to Specimen Complaint No. 2

Dear Sir,

Thanks for your letter dated 20th June informing us about the imperfection in
the design of our rings. We have since tested these rings and agree that some if
not all have a problem in manufacturing.

We would like to add, though, that this is quite an exceptional circumstance

that has arisen in a newly opened section. Fortunately, now the staff and
machinery in all our sections are ready to deliver the same reputed quality that
we are justly known for.

We are sending you a replacement and a compensation for the postal expenses
for returning the earlier goods.

We trust these goods will satisfy you and your customers fully and, in fact,
positively delight them. We assure you of our best attention at all times.

Yours faithfully,

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7.9.1. Alternative Reply to Specimen Complaint No. (Rejecting the
Complaint)

Dear Sir / Madam,

We have at hand your letter dated 20th June expressing dissatisfaction with our
VIRTUE rings. We have since tested of the rings and find that the craftsmanship
is perfect. As for the two rings that you have specially pointed out, we have to
inform that they appear to have been tampered with, hence the problem you
have stated.

In the circumstances, you will surely agree that there is no reason to reject the
consignment altogether. In view of our longstanding relationship, we have
repaired the two rings that had developed a fault and are sending you all your
rings by courier at our cost.

Please rest assured about the time-honoured quality of VIRTUE rings.

Yours faithfully,

SUMMARY

The reasons and causes for making complaint are discussed briefly, we have
also learnt how to draft complaint letter.

CHECK YOUR PROGRESS

a) Mention any four factors that can give rise to complaints.

...................................................................................................................
...................................................................................................................
b) Mention four important points that should be kept in mind while
drafting a complaint letter.
....................................................................................................................
...................................................................................................................

REVIEW QUESTIONS
1. Answer the following question in four lines.
a) What factors should the supplier keep in mind while replying to a
letter of complaint in which the customer is at fault ?
2. Draft a suitable reply to a customer who has complained about the poor
service of the typewriters supplied by you.

73
 LESSON-8
TRADE ENQUIRIES AND BANK REFERENCES

LEARNING OBJECTIVES

After reading this lesson, you must be able to Understand on

• Trade and bank references
• Making status references
• Replying to status enquiries
• Granting credit
• Refusing credit
• Bank references

CONTENTS
8.1 Introduction
8.2 Trade enquiries and Bank References
8.2.1Trade references
8.2.2Bank reference
8.2.2.1Importance
8.2.2.2Hints for drafting letters for trade and bank references
8.3 Making Status Enquires
8.3.1 Hints for drafting status enquiries
8.3.2 Replying to status enquiries
8.3.2.1 Favorable reply
8.3.2.2 Hints for drafting favorable replies to status enquiries
8.3.2.3Rather unfavourable reply
8.3.2.3Rather unfavourable reply
8.3.2.4Hints for drafting rather unfavourable replies to status enquiries
8.3.2.5 Unfavorable reply

Summary
Check Your Progress
Review Questions

74
8.1 INTRODUCTION

Trade depends on sound business policies to succeed in the severely competitive

business environment. The policies of a business organisation relate to several
ethical factors. No business can afford to adopt the policy of being neither a
lender nor a borrower. Unless a seller adopts a sound credit policy, his business
prospects will get strait-jacketed. By a 'Sound credit policy' we mean the
capacity of the seller to extend credit and realize the same on a previously
agreed upon time schedule. Credit ensures smooth and uninterrupted trading
and its proper realisation prevents the business from getting crippled by bad
debts. A businessman gives credit to his agents, dealers, stockists and retailers
for a reasonable period and gets repaid in accordance with the agreement. But
the preliminary exercise will be to verify whether the firm or individual seeking
credit, is credit worthy. This has to be done by trade / status enquiries with
people already having trade relationship with the concerned party. This method
of screening a potential customer has been in practice from early days when
business became an organised activity.

Usually a the seller (manufacturer / wholesaler or / stockist or / distributor) is

approached by a potential customer to be an agent or retailer provided he is
given credit. This is the first letter of enquiry of about the availability of credit.
The seller asks the party to provide trade / bank references. The potential party
provides the required trade references called referees or references. They are
other business houses with whom he has had business dealings. Then the seller
enquires discreetly with the references about the credibility and the credit-
worthiness of the buyer. Discretion and confidentiality are the watch-words in this entire
exercise. The sanction or granting of a credit depends on the favourable information
given by the references. This correspondence between the seller the buyer and the
references in called Trade / Status enquiries and replies.

The Credit Department must get the following essential information about the
customer:
a) His character, which indicates industry, honesty, reputation for fairness and
justice, reliability, trustworthiness, moral conduct, the practice of making
prompt payments, etc.
b) His capacity, which includes business acumen, judgment, experience and
resourcefulness.
c) His capital including the tangible assets, their market value, the reserves,
and the ratio between assets and liabilities.
d) The condition of the customer's business in particular and the external
conditions of the business on the whole, which certainly affect individual
business.

The above factors (the four C's) are considered to be the foundation or criterion
of a sound credit policy.

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Relevant information about the four C's can be obtained from the following
sources:

(i) Internal sources:

™ The size and value of the past orders placed by the customer, if he is a
regular cash customer;
™ The salesmen's report about the customer.

(ii) From the customer:

™ Personal interview with the customer;
™ Financial statements of the customer submitted by him.
(iii) External sources:
™ Trade references given by the customer;
™ Bank references submitted by him;
™ Information from Trade Associations, Chambers of Commerce,
Enquiry Agencies, General Mercantile Agencies, etc.

8.2 TRADE ENQUIRIES AND BANK REFERENCES

8.2.1 Trade references

Trade references are the names of the business firms that can submit a report
on a customer's creditworthiness. Whenever a customer requests for supply of
goods on credit, the trader has to obtain necessary information about the four
C's of the applicant. For this purpose, the trader asks the applicant to name a
few businessmen of his acquaintance to whom he may 'refer' the matter. These
businessmen are called referees or references)

8.2.2 Bank reference

Bank reference is the name of the credit-applicant's banker who can supply all
necessary information about him to the trader. While asking for references, the
trader should be extremely polite so that he may not hurt the feelings of the
party. His letter must make it clear that he is seeking this information as a
matter of general policy and not because of any doubt about the credit standing
of the customer.

8.2.2.1 Importance
Since it is in the mutual interest of both the trader and the customer, the latter
should feel free in giving information necessary to establish his credit in the
business. The credit references asked for should be furnished in as simple and
polite a manner as possible, even if the customer thinks them unnecessary.
There should be no room for feeling insulted because the trader requires the
information to establish the customer's credit only as a matter of routine.

76
8.2.2.2 Hints for drafting letters for trade and bank references
1. Express your pleasure at the request for credit and thank the party for the order.
2. Explain why you need the information.
3. Make a request for specific information: trade references, bank references,
financial statements or personal interview, etc.
4. Assure that the information will be kept confidential.
5. Write something to build up goodwill; tell the customer that it will be in his
own interest to send promptly the required information, complete in all
details, for it will enable you immediately to open his account and dispatch
the goods to him.

Examples : A customer wishes to have his order executed by a trader on credit.

Since the customer is new to the trader, he wants to get credit references from
the former. Draft the letter :
a. for the trader asking the customer to furnish references, and
b. for the customer giving references.

HMV Radio Corporation

Gandhi Road
Banglore
11th September, 20
Messrs. Roy & Co
Coimbatore
Dears Sirs
It is a pleasure to receive your order of 7th September for HMV Radio and
Transistor sets.
We shall gladly open an account for you as soon as you furnish us with three
trade reference along with your bank reference so that we cold complete the
formalities necessary to establish your firm’s credit. Our request does not imply
any misgivings on your credit standing. Getting trade and bank references is a
general policy matter and we request all our new customer to send us this
information before we open an account in their name.
Will you please write to us by return mail so that there is no delay in your shipment? We
will record your order as soon as we get the necessary information.
We are pleased to have the opportunity of adding your name to our list of credit
accounts and hope the opening of this account will be the beginning of a long
and happy association with you.
Yours faithfully

For HMV Radio Corporation

Miss K.Lalitha
Credit Manager

77
b) Replay to the above letter.
ROY AND COMPANY
Radio and Watch Dealers
Coimbatore
15th September, 20
The Credit Manager
Latha Radio Corporation
Banaglore – 5

Dear Madam
Thank you for your courtesy in agreeing to open our account in your books. As
required by you, we are giving below three reference with whom we have had an
open account for the past five years.

1. Jaya Trading Co.,

K.G. Road, Chennai

2. R.Maganath Trading Co.,

BR Puram, Coimbatore

3. Bharat Watch Co.,

61/5, Sir P.R. Road,
Chennai

Our Bankers are syndicate Bank, Bank Road, Chennai

Should you require any additional information, pleasure write to use. However,
since we wish to add the sets to our stocks for the Deepavali season, please
complete your credit check as quickly as possible.
Yours faithfully,

8.3 MAKING STATUS ENQUIRES

After receiving references, the trader should now take them up and request the
references to provide necessary information about the credit status of the
customer.
While writing a status enquiry letter, it must be remembered that the whole
matter is confidential and that those who provide the trader with this
information are doing a favour to him. Therefore the letters should be polite and
appreciative and he should assure the references that all information being
furnished by them will be treated as strictly confidential. The enquiry should be
both general and particular. In other words, the credit standing of the customer
in general and the advisability of extending credit for a particular amount and a
specified period, in particular, should be enquired. Since vague enquiries can
produce only vague information, the trader should be very precise in his
enquiries. It is always desirable to enclose a stamped envelope for the reply

78
8.3.1 Hints for drafting status enquiries
1. Give the name of the person or firm about whom you are enquiring.
2. Indicate that you have been asked to refer to the addressee.
3. Mention the amount of credit asked for and the period for which it is to be
extended.
4. Make a request for credit information about the maximum amount and
period that can be granted, the financial position of the customer, the
promptness with which he settles the accounts, etc.
5. Assure that any information given will be treated as confidential.
6. Express your willingness to render similar service to the referee if he ever
needs it.
7. Enclose a self-addressed envelope.

8.3.2 Replying to status enquiries

It is a recognised custom among traders to regard it as a duty to answer status

enquiries. That every trader requires, one day or the other, the same information
from others is perhaps the main reason why every businessman replies promptly
to such status enquiries.

The reply should be frank and specific and as helpful to the enquirer as possible.
It is not necessary to give any instructions or suggestions to the enquirer about
what to do with the credit-customer's application. The writer should just furnish
the information asked for and leave it to the enquirer to decide for himself.
Replies are often so worded that no express or implied responsibility is assumed
by the writer. Further, the writer should make it clear that the information
supplied will be treated as most confidential.

It is a good policy not to write the name of the person or firm about whom either
partly unfavourable or fully unfavourable information is being supplied nor to
mention any specific amount or period. Care should also be taken to see that
nothing is said to harm the credit of the applicant or to put the enquirer into
trouble with poor risks.
Replies to status enquiries may be:
(i) Favourable;
(ii) Rather unfavourable; and
(iii) Unfavourable.

8.3.2.1 Favourable reply

Writing favourable replies is not difficult. All that is to be done is to express
satisfaction with the credit standing of the customer in question and with the
promptness he shows in the settlement of accounts. Too highly appreciative
words may, however, amount to biased or interested statements, which should
be avoided.

79
8.3.2.2 Hints for drafting favourable replies to status enquiries
1. State how long you have been in trading relation with the credit applicant.
2. Give the nature of the account and the amount of credit.
3. Mention the financial position and business prospects of the applicant.
4. Say whether you recommend the credit asked for.
5. Tell the party that the information given is without any personal
responsibility and should be treated as confidential.

8.3.2.3 Rather unfavourable reply

Writing rather unfavourable replies requires some tact. Caution must be

exercised in making statements about the financial stan< ling of the credit
applicant in question. The facts about the amount and period of credit granted
and the experience in collection of dues should be mentioned without giving any
general comment. The present position of the applicant may be mentioned only if
there is certainty about it.

8.3.2.4 Hints for drafting rather unfavourable replies to status enquiries

1. Referring to the enquiry, tell how long you have been acquainted with the
applicant.
2. Mention the amount and period of credit granted.
3. On the basis of your experience in collecting the dues, state whether the
customer
(a) is a sure but slow payer;
(b) makes large purchases but is a troublesome payer;
(c) has a sound business but likes to delay payments; or
(d) is very honest but not very capable.
4. Whenever necessary, mention the applicant's business failures,
ipttfoliteness, indifference to his creditors, weak financial position or his
present creditworthiness
5. Don't fail to mention the good qualities of the applicant, such as his strong
business morality, his ability to face difficulties, etc.
6. Give your opinion about the extent of credit only if the applicant deserves it.
7. Mention that the advice is free from any responsibility and that it should be
treated in confidence.

8.3.2.5 Unfavorable reply

Any unfavorable reply requires care in drafting. Mere expression of regret at
being unable to furnish the necessary information is not recognised as a good
policy. A better method is to state in simple but definite terms the writer's
personal experience with the credit applicant.

80
The plan for drafting an unfavorable reply is the same as for a rather
unfavorable reply. Care should be taken to see that no sign of embarrassment is
exhibited and also that the letter is not treated as an opportunity to blow up the
party referred to on account of the writer's unsatisfactory relations with the
credit applicant.

Summary

It’s a fact that credit increases sales; it involves risk, particularly of bad debts
and delayed payments. A sound credit policy, careful selection of credit
customers and prompt collection are essential to successful function of credit
system. This lesson highlights the correspondence which business
organizations has to have with its customers.

Check your progress

1. prepare a checklist of information about your credit customers

------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------

2. Draft a status enquiry letter

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------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------
------------------------------------------------------------------------------------------

Review Questions

1. What is trade reference

2. What is mean by status enquiry

81
82
UNIT - III

83
84
 CORRESPONDENCE OF COMPANY SECRETARY

LESSON-9
ROLE OF COMPANY SECRETARY AND HIS DUTIES

LEARNING OBJECTIVES

After reading this unit, you must be able to,

• List out the functions of Company Secretary
• Know the Classifications of Correspondence
• Roles and Responsibilities of Company Secretary and his duties

CONTENTS
9.1. Role of Company Secretary and his duties
9.2. Classification of Correspondence
9.3. Responsibilities of a Company Secretary
9.4. Hints for Drafting
9.5. Style of Company Secretary’s Correspondence

Summary
Check Your Progress
Review Questions

9.1 ROLE OF COMPANY SECRETARY AND HIS DUTIES

The secretary of a company occupies an important position in the administrative

work. He has come to be recognized as the principal officer of the company.

• He acts as a vital link between the Company, Board of Directors,

shareholders and the Government and other regulating agencies.
• He is fully associated with the formulation of long-range and short-term
corporate policies and programmes.
• He is involved in the important task of raising funds through public issues,
private placement, public deposits, etc.,
• He looks after secretarial functions, such as filing various company returns
with Registrar of Companies and other authorities, registration of transfer
and transmission of shares, correspondence with shareholders, etc.,

85
A public limited company has the members of public subscribe and buy its
shares. This is done on the basis of the prospectus issued by the company. A
company thus incorporated becomes an artificial person created by law with a
perpetual succession and a common seal which is the signature of the company.
Such an incorporated company must have a company secretary who is a key
executive figure involved in general administration and day-to-day
administration. Company secretaries reach that position by their qualification,
or being an associate member of the Institute of company secretaries and
experience. The job is a highly responsible one with a high level of commitment,
motivation, integrity and confidentiality as requirements.

9.2 CLASSIFICATION OF CORRESPONDENCE

Secretarial Correspondence can be classified into the following categories.

1. Correspondence with Directors ;
2. Correspondence with Shareholders ;
3. Correspondence with Others

A company secretary has to correspond with the public, shareholders, banks

directors, registrar of companies and also the SEBI (Securities Exchange Board
of India) and Company Law Board. He has to prepare notices for meetings,
design agenda for them, edit and issue the prospectus and correspond with the
staff of the company. He has to conform to statutes and contracts. The
secretary should be impartial in his communications. He should be business-
like in his dealings without mincing words.

9.3 RESPONSIBILITIES OF A COMPANY SECRETARY

• The company secretary corresponds with the registrar of companies, other

government agencies like the SEBI and merchant banks in the interests of
the company and its shareholders.
• He files all returns of the company and fulfills statutory obligations.
• He will associate himself in planning, raising capital, takeovers / mergers,
issue of shares / debentures, etc.,
• He is incharge of routine correspondence with directors and shareholders
on meetings, dividends transfer of shares, etc.,
• He has to prepare reports and send them to the appropriate recipients.

86
9.4 HINTS FOR DRAFTING

Being subordinate to the directors, a secretary has to be very tactful and

courteous to them while communicating with them. Sometimes, a director may
be new to his assignment and may not be fully conversant with the nature of the
work or may not be in possession of all the relevant information. The first
person he will then think of getting in touch with will be the secretary. But even
in such a situation, the secretary will have to show due deference to the director.
A secretary just cannot afford to assume airs.

9.5 STYLE OF COMPANY SECRETARY’S CORRESPONDENCE

The letters of the company secretary should be business like because they relate
to business. The secretary should avoid unnecessary embellishment of the
letter. But at the same time, the letters should not be prosaic. The letters
should provide complete information in clear terms. Clarity and completeness
should be the guiding criteria for a company secretary’s letter.

SUMMARY
The functions of company secretary have been briefly explained in this lesson
and also know the duties and responsibilities and classification of
correspondence of Company Secretary.

CHECK YOUR PROGRESS

1. List out any two duties of Company Secretary.

.................................................................................................................

.................................................................................................................

REVIEW QUESTIONS

1. What are normally the duties of a Company Secretary ?

2. Explain the Classification of Correspondence.

87
 LESSON-10
CORRESPONDENCE OF COMPANY SECRETARY WITH
SHAREHOLDERS AND DIRECTORS

LEARNING OBJECTIVES
After reading this lesson, you must able to,
• Able to know the importance of communicating with the shareholders and
directors.
• Hints for drafting letters to shareholders and directors

CONTENTS
10.1. Correspondence with Shareholders
10.1.1. Hints for Drafting :
10.2. Correspondence with Others
10.3. Correspondence with Directors
10.3.1. Hints for Drafting

Summary
Check Your Progress
Review Questions

10.1 CORRESPONDENCE WITH SHAREHOLDERS

Most of the correspondence with the shareholders takes the form of circular
letters being sent to them: the notice of a meeting, agenda, reports of general
meetings, Directors’ Report, letters offering shares, making calls on shares,
sending dividend warrants, etc., Personalized letters will have to be written in
reply to certain specific requests or demands from shareholders.

10.1.1 Hints for Drafting :

• Since the shareholders are the constituents of a company and deserve
respect, the Secretary should be courteous, polite and submissive and
should never make any show of authority.
• The Secretary’s attitude should be considerate and helpful as far as possible.
• If a shareholder asks for some information of a confidential nature, the
secretary should handle the situation tactfully so that neither the interest
of a Company is imperilled nor the shareholder antagonized.

88
Example : A shareholder asks about the progress of the Company in
future with a view to increasing his shareholding.

Dear Sir,

A good dividend record in the last five years and a high price in the share market
for your Company’s shares have impressed me very much and I wish to increase
my present shareholding in the company. I shall be obliged if you kindly let me
know whether the company is contemplating the issue of any Right shares or
Bonus shares for the expansion of its activities or whether there is any
possibility of increase in the dividend rate this year.

Your advice in the matter will facilitate me greatly.

Yours faithfully.

10.2 CORRESPONDENCE WITH OTHERS

This includes correspondence with the Registrar of Companies, auditors,

bankers, Government officials and the public. The secretary is expected to use
tact and politeness and has to be brief and to the point in writing to such people.
Particularly, while corresponding with the Registrar and the Government
departments, he must take a proper selection of words so that he does not cause
any legal complications for the Company.

Example. A letters requesting the Auditors to take up the audit work.

Dear Sirs,

I am directed by the Chairman to request you to please take up an interim Audit

of our Branches at Mumbai, Delhi and Calcutta, for the half year ending 31st
March, 20.. The negotiations for the merger of these three branches with the
ABC Industries (P) Ltd., and the formation of a new public company have been
completed and the rate of exchange and the valuation of assets are urgent jobs
to be completed now. Hence you are requested to complete the audit work early.
In any case, your report and Audited Accounts and the Balance Sheet should be
submitted to the Board before the end of the first week of July for their
consideration at the Board Meeting during the Second Week of July.

The Managers of different branches have already been asked to keep their books
ready for auditing. Please inform us when you start the audit work.

Yours truly,

89
10.3 CORRESPONDENCE WITH DIRECTORS

Sending notices of Board meetings and the reports of the proceedings of such
meetings, sending periodical reports of the proceedings of such meeting and
periodical reports of the working of the Company are the routine course of the
Secretarial section. The secretary corresponds with the directors on special
occasions, for some information or request for a matter to be taken up for
discussion in a Board Meeting, or when the Chairman wishes to communicate
with the directors in connection with the Board Meetings, etc.,

10.3.1. Hints for Drafting

Being subordinate to the directors, a secretary has to be very tactful and

courteous to them while communicating with them. Sometimes, a director may
be new to his assignment and may not be fully conversant with the nature of the
work or may not be in possession of all the relevant information. The first
person he will then think of getting in touch with will be the secretary. But even
in such a situation, the secretary will have to show due deference to the director.
A secretary just cannot afford to assume airs.

Example : A letter from the Company Secretary to the Director who could
not attend a Board Meeting.

ABC INDUSTRIES LTD.,

Regd. Office : 17, Main Road,
Gandhi Park, Bangalore.

18th March 2008

Ms. Gayathri,
Director,
4th Cross, Surya Nagar,
Bangalore.
Dear Madam,

I am enclosing a brief extract of the minutes of the Board Meeting on 10th March
2008. You will be getting the detailed minutes soon. Most of the decisions
taken relate to the modernization of the plant and office. There was consensus
on all matters and the resolutions adopted were unanimous. Pending matters
have been deferred to the board meeting to be held on 15th April 2008.

Yours faithfully,

Rajan Sharma
Secretary

90
SUMMARY

The secretary as a chief executive officer should convey the decisions and
directives to the employees, shareholders, directors, customers and others. He
should also convey the problems communicated by others to the Board. He acts
as a connecting link between the persons and the company.

CHECK YOUR PROGRESS

1. Write the hints you would follow in drafting a letter to the Director
of your company.
.................................................................................................................
.................................................................................................................

2. Write the hints you would follow in drafting a letter to one of the
Shreaholder of your company.
.................................................................................................................
.................................................................................................................

REVIEW QUESTIONS

1. As a secretary of a limited company give one of your directors a short

account of the proceedings of a meeting for which he was absent.

2. A shareholder seeks your advice as he wished to buy some more shares of

the Company. As the Secretary of the Company, write a suitable reply.

91
 LESSON-11
AGENDA, MINUTES PREPARATION

LEARNING OBJECTIVES
After reading this lesson, you must be able to,
• List out the types of company meetings.
• Discuss the contents of minutes of meeting.

CONTENTS
11.1. Agenda
10.1.1. Contents in Agenda
11.2. Minutes
11.2.1. Preparations
11.2.2. Specimen – Minutes

Summary
Check Your Progress
Review Questions

11.1 AGENDA

The agenda of a meeting is virtually the road-map of a meeting. It predetermines

the lines on which the meeting will be conducted. Agenda means ‘things to be
done’. But in a meeting, it indicates the issues to be discussed, information to
be passed on, problems to be sorted out and resolutions to be adopted. Agenda
is usually circulated along with the notice. In some extraordinary situations,
agenda is given at the meeting to the members. An agenda circulated earlier
enables members to come prepared. It ensures transparency in functioning. It
does not spring a surprise or shock the members.

11.1.1 Contents in Agenda

Business meetings within an organization have a clear purpose. The meetings

in a business concern address various issues related to three main concerns of
business. They are value, policy and facts.

Value issues examine whether something is desirable or not. They examine the
value of a thing or a person. For example, a company may have to decide on
providing subsidized / free lunch to its employees. It has to decide whether it is
worth the while to provide free / subsidized lunch to all its employees. A
company may have to find out whether there is any value in opening a new
branch.

92
Policy related issues raise the question whether something should be done or
not. Questions such as, what should be done to improve sales, how much
should a company spend on a entertainment, are examined.

Fact related questions examine whether something is true or not. The news
about a slump or boom in the market are fact related questions that have to be
analyzed in a meeting.

The minutes of the previous meeting are read. If members raise points on it,
they are discussed and then the minutes get approved. In new statutory,
official, business meetings, the exercise of minutes approval, etc., do not have a
place. There are chairperson makes his opening statement.

In modern times, business meeting agenda is prepared in a question format.

The question format enables the participants give answers unambiguously. The
traditional format only lists topics on the agenda whereas the modern format
gives the agenda in a question format.

11.2 MINUTES

The secretary records them which is called the minutes of the meeting. What
transpires in a statutory meeting should be recorded for future use and
reference. The official record of a meeting is called minutes. It is a legal
document. It has the date time and venue of the meeting, the name of the
chairperson and members present. The minutes is always in reported speech, in
third person and is a condensed version. Minutes is basically a true reflection of
the proceedings.

11.2.1 Preparations

Notice and agenda are pre-requisites for a meeting. Minutes records the
outcome of a meeting. But more important than these official requirements is
the conduct of a meeting. The success of a meeting depends on a non-
authoritarian free and fair exchange of views and decisions reached without a
division and by consensus.

Such decisions are easy to implement. The chairperson should conduct the
meeting without imposing his views. The proceedings should be disciplined and
orderly. There should be no cross-talk, under tones, subtle and sly remarks. All
these are possible if members are co-operative and the chairperson is fair and
firm.

The members should familiarize themselves with the agenda before the meeting.
They should not be flipping through pages at the meeting to locate a specific
item on the agenda. All members are not alike. Experts have classified
participants in a meeting on the basis of their attitude, behaviour and
participation as ‘problem participants’.

93
11.2.2 Specimen – Minutes :

Minutes of the 50th Annual General Meeting of XY Engineering Ltd., held at the
registered office conference hall, Chennai at 10.a.m. on 09th August 2008,
Saturday.

S.No. Particulars Details of Minutes

The secretary read the notice
1. Notice of the Meeting
convening the meeting.
The company’s auditors ABC & Co.,
2. Auditors Report
read the auditor report.
With the consent of directors, both
Directors report and
3. the reports were circulated and
accounts
taken as read.
The chairman addressed the meeting
and gave details of the present
4. Chairman’s address
position and prosperity of the
company.
After discussion the chairman
5. Dividend approved 20% dividend to be
distributed on 10th July 2005.
Every one unanimously accepted to
6. Company’s Auditors
reappoint ABC & Co., as the auditor.
Mr. Raja and Mr. Senthil as the
7. Election of Director director, it was accepted and he was
elected as a director.
The enhancement of remuneration of
8. Remuneration auditor was put to motion and fixed
at Rs. 15,000.00
The meeting concluded with vote of
thanks by a shareholder.
9. Vote of Thanks
Signature of Chairman.
R. Nandakumar

94
SUMMARY

Constantly business organization conduct meetings like executive meetings,

shareholders, meetings and committee meetings. The basic objectives of
meetings are to achieve the goal of organizations. Meetings may be statutory
meetings, and annual general meetings, extra ordinary general meetings, board
of directors meeting and creditors meeting.

CHECK YOUR PROGRESS

1. List out the contents of the minutes of meeting.

.................................................................................................................

.................................................................................................................

2. List out the information contained in an Agenda.

.................................................................................................................

.................................................................................................................

REVIEW QUESTIONS

1. What is Agenda ? and Prepare a Specimen Agenda for a board meeting.

2. What is Minutes ? Prepare the minutes of the AGM of your company.

95
96
UNIT - IV

97
98
 COMMUNICATION THROUGH LETTERS

LESSON-12
COMMUNICATION THRO’ LETTERS
ESSENTIALS, IMPORTANCE AND CONTENTS

LEARNING OBJECTIVES
After reading this lesson, you must be able to understand,

• The importance of an effective business letter

• How to write an effective business letter
• Essentials of a business letter
• Important contents of a business letter

CONTENTS
12.1. Essential / Requisition of an Effective Business Letter :
12.2. How to Write an Effective Business Letter
12.2.1. The 7 C’s for Effective Business Communication

Summary
Check Your Progress
Review Questions

12.1 ESSENTIAL / REQUISITION OF AN EFFECTIVE BUSINESS LETTER :

The importance of a good business letter cannot be over emphasized. In fact, it

is the backbone of a successful business house. “A good letter can pacify an
angry customer as much as a bad one can anger a friendly one. It may sell a
new product or spoil the sales of an established one, collect debts without
hurting the customer’s feelings or lose both the money and the customer, refuse
a request yet win respect or grant the request yet incur ill will.

12.2 HOW TO WRITE AN EFFECTIVE BUSINESS LETTER

We should write naturally, as we would have talked to the reader about the
subject matter of the letter if we had the opportunity to talk to him in person.
We can do several things to ensure that our letter is the best we can write. The
best thing to test the appropriateness and effectiveness of our letter is to put
ourselves in the position of the recipient of the letter and think how we would

99
react to our own letter. Would it irritate or annoy us ? Is it the kind of letter we
would like to receive ? Would it make us do what the letter proposes ? We
should read the letter aloud, or have someone else to read it to us. Our ears will
catch flaws that our eyes may have missed.

Business letters are not much different from personal letters. But since a
business letter is written to achieve a definite purpose and often gives rise to
legal obligations, we have to be more accurate, clear, correct, precise, courteous
and reasonable in our approach.

12.2.1 The 7 C’s for Effective Business Communication

Guidelines for
Effective Business Communication

Clarity Completeness Conciseness Consideration Correctness Concreteness Courtesy

(The ‘You’ Accuracy
Attitude)
a) Clarity / Clearness :

A clear mind is reflected in writings that have clarity. Unless your thoughts and
ideas are clear, your writing tends to be muddled (Untidy). Then, you have to
begin by clearing your thoughts and deliberately making a choice of the words
and expressions that you are going to use. You should choose words and
expressions that are known to the reader. Though in other context people say
“familiarity breeds contempt” in the context of communication, a familiar word
conveys the meaning more effectively. Unfamiliar words and words not in vogue
sound pretentious, though high sounding.

All facts, figures, statements, quotations, etc., must be accurately mentioned. It

is a good practice to verify them before including them in your letter. If you are
replying to an enquiry, make sure that you have touched all the points. If it is a
message, it should be absolutely clear and unambiguous so that it accomplishes
the purpose for which it is being sent.

Clarity is also achieved by the use of short sentences. Long runs on sentences
do not reveal learning but only cause confusion. Each sentence must be
coherent and the words should be arranged in the correct order. Every sentence
or even paragraph should carry only one central idea. Sentences should
emphasize the main idea. In short, clear writing means use of familiar words or
expressions, and avoidance of jargons and unknown acronyms. It also means
sentences and paragraphs of optimum length, having unity, coherence and
emphasis.

100
b) Completeness :

A business communication has to be complete. Incomplete letters keep the

receiver guessing, or making wrong choices, or taking wrong decisions. The
letters should have the quality of completeness. A complete message will bring
the expected result or desired response from the receiver.

Completeness provides a communication with all information, answers all

questions that may be asked or may not be asked and saves time and resource
to a great extent.

Completeness prevents the need for further communication, amending,

elaborating and expounding (explaining) the first one and thus saves time and
resource.

Examine the following pairs of sentences where the second is an improvement

over the first one is being complete :

1. I did not receive any response for the complaint I lodged :

I made a complaint to the Branch Manager on June 23, 2003 on the

inordinate delay at the each counter. Can I get a response ?

2. I want a room booked in your hotel for three days in the first week of the
month of July :

I will be arriving on July 3rd morning by Pandian Express. I want a single room
accommodation for three days from 3rd morning. I want a room with attached
toilet, runjnign hot water facility and telephone (if available). Kindly do the
booking in my name.

c) Conciseness / Brevity :

A concise letter avoids verbiage that is use of unnecessary words. It avoids

tautology which means repetition of the same idea in different words. It also
avoids PLEANASM the use of more words than necessary. Superficiality would
be eliminated. All irrelevant matter and words are eliminated. Compare these
two sentences.

“We were not able to send the goods in time due to the fact that the truckers
were on strike”.

“We were unable to send the goods in time because of the truckers’ strike”.

The second sentence by elimination of unnecessary words has become concise.

101
Examine the following pairs of sentences. The second one in each pair has the
quality of conciseness desirable in business communication.

1. We are enclosing a pre-paid postal envelope with a response sheet to

indicate a convenient date by you to appear for an interview for the post of
Project Manager in our Company for which position you have applied and
this is in response to your application.

In response to your application, we request you to intimate the convenient date

for an interview with us. A prepaid envelope is enclosed.

2. We would be thankful if you could despatch to our mailing address 75

pieces of your new aqua filters on receipt of this mail order with enclosed
draft. Please send at the above address 75 new aqua filters. The draft
enclosed will cover the cost and transit charges.

Don’t load your letters with irrelevant details and unncessary ifs and buts. The
more concise your letter, the more effective it will be, for it will be clear. But is a
letter, don’t make it a telegraphic message.

d) Consideration / “You – attitude”

Consideration is another important feature essential for business

communication. In business, cordial relationships have to be maintained
overcoming obstacles that are indicidentally or deliberately caused.
Understanding the other person, his views and mental attitude is important to
make your communication have the quality of consideration. In an oral
communication situation, at a face-to-face meeting, one is expected to cultivate
an empathizing response. Enquiring, advising responses are not good to
promote cordiality. This factor of empathy needs to be incorporated in written
communication also. When you empathize with someone, you are adopting a
“You-attitude”. When you adopt this “You-attitude”, you are able to appreciate
the other person’s situation and modify your communication style with
consideration. Look at this oral communication situation.

An empathizing response leads to better understanding and acts as a step

forward in problem solving. The same “You-attitude” should be incorporated in
written communication. It gives the letter a pleasant and positive overtone.

e) Correctness / Accuracy
Business letters should have the quality of correctness. Correctness is related to
grammar as well as the communication level. A business letter is less formal
than a scholarly writing. But it should not degenerate to a sub-standard slang
level. Business communication will have the quality of correctness if
unnecessary formality and jargon are avoided. Of course, the sentences should
be grammatically correct.

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1. We invite all employees to participate in the annual get together :
All employees are requested to join in the annual get together.

2. The Management made attempts to ascertain the views of the employees.

The Management tried to find out the workers’ views.

3. The police interrogated the neighbours.

The police enquired / questioned the neighbours.

The second alternative in each pair is less formal but more suitable for business
communication. The data given in a business communication should be verified
for its correctness. English language offers scope for the choice of the right word
because of its rich vocabulary. The right word be the one that carries the
precise meaning, be informal in character and suits the level of communication.

f) Concreteness

A letter, particularly a business letter should not be vague and general. Every
business letter has an objective. The objective cannot be realized by vagueness
in writing. In English and many other languages, words carry connotative and
denotative meanings. Connotations keep growing constantly and one has to
choose words appropriately. Commercialese (Business Jargon) that was in use
till a little time ago is noted for its vagueness. In modern days, such expressions
have been given up for more concrete forms. These are the expressions familiar
in old times which have degenerated into cliches, conveying no denotative
meaning and so are vague. The following are some of them.
1. I shall be obliged if you can kindly....
2. An order form is enclosed for your convenience.
3. We acknowledge the receipt of....

Concreteness lies not only in cutting deadwood but also replacing them with more
effective and precise words. Do not say the following because they are vague.

A sentence becomes concrete if it is in the active voice. You should say “our
team won the match”, rather than “The match was won by our team”. Do not
say “We expect daily reports” but say “You should send daily reports”. In rare
cases, where you do not want to sound authoritarian you may use the passive
voice. That is why you say, “Smoking is prohibited” instead of saying who
prohibited it. Occasionally, to achieve concreteness you can use idioms /
phrases to project a vivid image.

g) Courtesy

In business, no one can afford to be impolite or discourteous. Discourteous

people will be elbowed out of business. We often confuse “business like” as
though it means a curt approach. A business-like person is an efficient person.
Efficiency involves genuine and sincere courtesy. A business letter should have

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tact, sincerity and politeness. It is not the mechanical use of “Thank you”,
“Please” etc., that show courtesy. It should reflect an inner feeling tactfully
without embarrassing the recipient. A business letter should have the proper
salutation and apt closing. Do not hesitate to compliment or congratulate the
receiver if he deserves it. Compare the two sentences in each pair and see how
the second sentence is more courteous than the first one.

1. Your attitude is inexcusable.

We hope you will review the situation / issue.
2. We are amazed at your inability to assess the market trends.
We request you to reassess the market trends.

Courtesy also means avoiding gender bias in writing. “Man” for a long time
meant men as well as Women. Women resent the gender bias in words like
man-power, man-made, best-man for the job. There is an increasing use of the
word chairperson for chairman. Instead of saying, “Each customer is expected
to pay his bill”, say ‘all customers should pay their bills”. Some women resent
the use of Mrs / Miss which are indicative of marital status thus showing gender
bias. They prefer Ms. to the others.

SUMMARY

We have listed out the essential of an effective letter. Business letters can be
categorized on the basis of the style, relationship and content. The functions of
business letters is outlined. The layout refers to the arrangement of different
elements of a business letter.

CHECK YOUR PROGRESS

1. List out the essentials of a business letter.

.................................................................................................................

.................................................................................................................

2. List out the functions of a business letter.

................................................................................................................

................................................................................................................

REVIEW QUESTIONS

1. Explain the mechanical structure of a letter.

2. Explain the kinds of business letter.

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 LESSON-13
LAYOUT

LEARNING OBJECTIVES

After reading this lesson, you must be able to understand,

• Physical appearance of a letter
• Mechanical structure or parts of a letter

CONTENTS

13.1. Layout
13.1.1. Physical Appearance
13.1.2. Stationery
13.1.3. Typing
13.1.4. Margins, blank space at the top and bottom
13.1.5. The use of Continuation Sheets
13.1.6. Folding of the typed letter
13.2. Mechanical Structure or Parts of a Letter
13.2.1. The usual parts of a business letter
13.3. Body of the Letter
13.3.1. Subject and Reference :
13.3.2. Opening Paragraph :
13.3.3. Main Paragraph :
13.3.4. Closing Paragraph :
13.3.5. Complimentary Close
13.3.6. Signature
13.3.7. Reference Initials
13.3.8. Enclosures
13.3.9. Copy Distribution
13.3.10. Postscript
Summary
Check Your Progress
Review Questions

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13.1 LAYOUT

13.1.1. Physical Appearance

As in the case of any other article, the appearance of a letter is as important as

its contents. The letter takes the place of a salesman and represents the firm
sending it. Like a salesman, the letter should create a good impression on the
mind of the reader. A letter bearing an unpleasant appearance fails to catch the
reader’s eye even if it contains an attractive proposition. “A letter is looked at
before it is read, and the first impression which it makes on the (reader’s) eye is
often an important factor which influences the reader’s opinion of the sender of
the letter”, “ What a good approach is to personal salesmanship, a good
appearance is to written salesmanship” (the letter).

13.1.2 Stationery

a) Paper. Letters should normally be typed on good bond paper. Bond paper
has a fine texture; it is sturdy enough to stand piercing through with a rod for
filing purposes; erasing does not make it smudgy; and it is quite durable.
Letters typed on bond paper look graceful. Ink marks also do not leave any
unshapely blotches.

b) Size. Standard sheets measuring 11” x 8.5” are preferred these days.

The size has found wide acceptance because it is reasonably large and its
dimensions are quite proportionate. It fits in standard office file drawers. Bigger
sizes would be awkward to handle; smaller sizes would look cheap and
niggardly.

c) Letterhead. The first page of a letter should be typed on a letterhead.

Modern letterheads usually occupy about two inches at the top of the page. The
following information is neatly printed or embossed on the letterhead.

1. The full name of the firm or individual

2. Address
3. Pincode
4. Telephone Number
5. Fax Number
6. E-mail Address
7. WWW URL

(WWW URL is the address of the home page of the organization / institution /
individual on the Internet).

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In certain cases, cable address, nature of the business, and name of the
department or branch office sending the message can also be indicated. There
was a time when the names of officers and directors, trademarks or symbols,
slogans and some appropriate pictures were considered an integral part of a
letterhead. But it is no longer thought desirable to crowd the first page of the
letter with so many distracting details. While no rigid rules can be laid down
about what information is to be included in the letter head, it should be ensured
that the letter head is aesthetically pleasing.

13.1.3. Typing

Handwritten letters are now out of fashion. Most business letters are now typed
on electronic typewriters or composed on word processors. In fact, even word
processing machines are being replaced by more flexible micro computers with
word processing capabilities. These machines often several advantages :
• The letter can be repeatedly edited till the writer is fully satisfied with his draft.
• Visuals like graphs, tables, bar charts, etc., can be incorporated in the letter.
• Typing errors can be completely removed before final computer printouts
are taken.
• The executives can type the letter themselves, leaving the secretary free to
attend to other important office work.
• Making copies to be sent to other people or for one’s own future reference is quite
easy. The copies are as clear, bright and impressive as the original letter.

13.1.4 Margins, blank space at the top and bottom

There are no rigid rules about side-spacing and the space to be left at the top
and bottom. Let the length of the letter determine these. The general rule is :
the typed part should look balanced with the blank part. In long letters, typing
at single space is quite in order, but if the letter is short, double space will look
more pleasing. Double space between the paragraphs always looks good.

13.1.5 The use of Continuation Sheets

Sometimes a letter requires more than one page for typing. For the first page of
the letter, a regular letterhead sheet is used. For the second and subsequent
pages, continuation sheets are used. But the continuation sheets must be of the
same quality and colour paper as the letterhead. Otherwise, you may give the
impression that you believe only in a brave front and are rather sloppy inside.

It is customary to indicate the name of the addressee, page number and the date
on the new page. This information should be given leaving a 1-inch margin at
the top and there should be at least two blank spaces between this line and the
body of the letter. A letter should never be typed so that the only material
appearing on the second page is the complimentary close, signature, reference
initials and enclosure notation.

107
13.1.6. Folding of the typed letter

While folding the letter, one should take into consideration the size of the paper,
the size of the envelope and the number of enclosures. These days, letters are
often sent in window-envelopes. These are specially prepared envelopes with the
space meant for writing address carrying transparent tissue paper. The letter is
folded in such a way that the inside addresses falls just below the tissue paper.
This simple device saves the labour of typing addresses on the envelopes. If
window-envelope is used, the letter must be folded in such a way that the
address is fully and clearly visible.

13.2 MECHANICAL STRUCTURE OR PARTS OF A LETTER

The mechanical structure of a letter constitutes the different parts of a letter

that should have their customary place on it. The arrangement of the different
parts of a business letter is fixed by custom and makes a world of difference in
the impression it conveys. A letter being sent in an inappropriate form is as bad
as a salesman calling on a client in slacks and tennis shoes. Unless the
business letter follows the accepted form correctly, the person receiving it may
very well discredit the standing of the company that has sent it out.

Traditional forms of business are continued with letters. Even while using
sophisticated high-tech instruments for communication, one has to use his /
her communication skills effectively. The percentage of the population you can
reach through electronic mail is still small. Though the mail can be transferred
electronically, its layout and content will continue to remain largely unchanged
at least for some more time. The receiver of the mail, either through post or the
computer will form an impression about the sender from the letter that he has
received, its content, tone and layout.

13.2.1 The usual parts of a business letter

1. Heading
2. Inside Address
3. Salutation
4. Body of the Letter
5. Complimentary Close
6. Signature
7. Reference Initials
8. Enclosures

a) Heading
Also called ‘head address’ or ‘letterhead’, the heading contains information
relating to the name of the firm and its address. It is usual to provide the
following information in the heading:

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• The firm’s name
• The firm’s address
• The nature of the firm’s business
• Symbols and trade marks
• Telephone Number
• Telex Number
• Fax Number
• E-mail Address
• WWW URL
• The date
• Reference

b) The name of the firm and address.

The name of the firm and its address are usually given at the top centre or right
side of the paper. While writing the address, if the house number or the street
number is being mentioned, no comma need be put after it : If the name of the
firm indicates the nature of its business, it is not necessary to mention the nature of
business separately. But if the firm is carrying on some business not implied in its
name, it may be considered desirable to add it just below the name :

Examples :
Different Models of Letterhead

3” – 2”

Logo TVS Motor Limited,

P.B. No. 1234,
Bangalore Main Road,
Hosur, Tamil Nadu.

Letterhead Modelj 1. Right-hand corner (used in modified block form)

109
 Logo
TVS Motor Limited,
P.B. No. 1234,
Bangalore Main Road,
Hosur, Tamil Nadu.

Letterhead Modelj 2. Centre of the Page (used in modified block

form)

c) Date Line :

Putting the date on every letter is very important. It enables quick reference in
future and helps in prompt action and orderly filing. The date consists of day,
month and year. It is written below the address or the heading, leaving some
space for a better look. The date is typed either starting close from the left
margin or ending close to the right margin, depending on the style adopted.
Various styles are discussed later in this chapter.

The date may be written in any of the following ways :

23rd July 20.. or 23 July 20.. or July 23, 20..

While writing the date, do not use abbreviations for months and do not cut short
the year as ’02 or 03’.

Avoid the following styles of writing the date :

23-9-20.. 23, Sept, 20..

September 23rd, 20.. Sept. 23, 20..

When the address of the firm and the date are written to the right, they are
written in one of the following ways.

23 Anna Street, Chennai.

July 23, 20..
or
23 Anna Street, Chennai
July 23, 20..
(Close to the right margin)

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d) Mailing Notation

Such words as “Registered” or “Under Postal Certificate” may be typed either on

the second line below the date or below the last notation whatever the last
notation is. The first placing is preferable.

e) Reference

The Reference. The reference is printed either below the date line (if the date is
written close to the left margin) or on the same line in which the date is written
near the right margin. In both cases, the reference is written close to the left
margin. The reference serves to identify both the department and its section
from which the letter is being sent or the particular file in which the
correspondence is to be found. The purpose of the reference is to enable replies
to be linked with the previous correspondence and also to send replies to these
letters to the proper official or department. Stating the ‘reference’ helps quick
and easy future references. Therefore, addressees are requested to quote this
reference in their replies. The usual forms of giving the references are ;

1. Reference No...............
2. Ref. No.................
3. In reply please quote ....................
4. Please quote in future correspondence .................
(Close to the left margin)

f) Inside Address

The inside address contains the name and address of the firm or the individual
to whom the letter is written. This makes a record on the copy which serves to
identify the letter for filing purposes. It also helps the outward clerk to write the
same address on the cover. It should be written below the Reference line,
leaving some space. Also, it should start from the left margin and may be
written either in the indented (step) form or in the block form.

Outside Address: Inside Address ;

Kauvery Paper Boards Limited, Kauvery Paper Boards Limited,

Trichy Road, Trichy Road,
Ramanathapuram, Ramanathapuram,
Coimbatore – 45. Coimbatore – 45.

However, it is advisable to have the inside address on the letterhead and the
address on the cover both in full. For, if the inside address is full, the despatch
clerk will not commit mistakes.

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g) Mode of Address

(i) Addressing Individuals :

1. ‘Mr’ or ‘Shri’ is used for men, both married and unmarried.

2. ‘Miss’ is used for an unmarried woman.
3. ‘Mrs’ or ‘Shrimati’ is used for a married woman.
4. ‘Ms’ can be used both for a married and an unmarried woman. Most
women now prefer the use of ‘Ms’.
5. ‘Messrs’. (Messieurs) is used as the plural for ‘Mr’.
6. ‘Mmes’ (Mesdames) is used as the plural for ‘Mrs’.

(ii) Addressing a Limited Company :

In the following examples a particular officer is being addressed, therefore

Messrs. is not prefixed to the name of the company.

The Advertising Manager The Secretary

A.B. Mothelal & Sons Ltd., Nestle India Limited.

h) Use of ‘For the attention of’.

This phrase is used when the writer of a letter addressed to an organization

wishes to direct it to a particular person or official. It is written below the inside
address but above the salutation, and is underlined :

Pioneer Mills Ltd.,

Pioneer Nagar,
Kancheepuram.

For the attention of Mr. P.R. Gandhi,

Dear Sirs
or

The Secretary
Vicks Laboratories (India) Ltd.,
Worli, Mumbai.

Attention of the Sales Manager

Dear Sirs

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i) Salutation

The salutation is the complimentary greeting with which the writer opens his
letter. It is the written equivalent of the conversational ‘Hello’. It should be
written below the inside address (or ‘Attention of....’, if any), leaving some space
and should start flush with the left-side margin. It may or may not end with a
comma depending upon the style adopted.

For ordinary business purposes, ‘Dear Sir’ (or ‘Dear Madam’ for both single and
married women) is used for addressing one person and ‘Dear Sirs’ (or
‘Mesdames’) for addressing two or more persons, i.e., a firm or an association.

Salutations commonly used are :

Sir These are rather formal and are used in official

Madam correspondence. Not proper for use in business.

(Government Officials, Judges, Ambassadors, Editors of Newspapers should be

addressed as Sir or Madam).

Dear Sir
Dear Sirs These are very commonly used in business
Dear Madam correspondence.
Dear Mesdames /
Ladies / Gentlemen

(A business firm consisting of ladies should be addressed as Dear Mesdames,

Companies, Cooperatives, Corporations, Associations, Clubs, Committees,
Boards, Commissions should be addressed as Dear Sirs. An official of a
chamber of commerce should be addressed as Dear Sir).

Dear Mr. Anand

My dear Mr. Anand These salutations are used when there is a
close
Dear Anand relation between the correspondents.
My dear Anand

If a letter is addressed to a head of a department, or the head of an organization,

whose name is not known, then the salutation Dear Sir or Madam or Dear Sir /
Madam should be used.

Note that (a) when the address is in singular, the salutation should also be in
singular, and when the address is in plural, the salutation should also be in
plural; and (b) when ‘dear’ is written after ‘My’, ‘d’ is not in capital.

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13.3 BODY OF THE LETTER

Body is the content of the letter carrying message, information, enquiry in it. It
is generally typed in single space with double space to mark paragraph division.
The spacing between lines can be determined based on the length of the letter.
If the letter runs to more than one page, type the recipient’s name, page number
and date on each page.

A business letter is always written with a purpose. The purpose should be kept
in the mind from the first to the last. Not a single sentence that deviates from or
obscures the purpose should find a place in the business letter. Plan your letter
as a speaker plans his speech or an author plans his book. The body of the
letter should be in simple sentences that have unity and coherence. Do not
jumble ideas or pack them in long sentences or paragraphs.

It is that part of the letter which contains the message or the information to be
communicated and is, of course, the most important part. The body consists of
the following.
(a) Subject and Reference
(b) Opening Paragraph
(c) Main Paragraph
(d) Closing Paragraph

13.3.1 Subject and Reference :

A brief, one-line mention of the major theme of the letter right in the beginning
adds to its clarity. In case of lengthy communications, it is almost
indispensable. It is usually written below the salutation, beginning from the
place from where the first line of each paragraph starts, or it is placed in the
middle of the line. Reference is useful to the correspondents at both ends for
back reference, filing, sending replies, etc., Sometimes the term “Regarding” is
also used in place of “Subject”.

Reference, in the body of the letter, is the reference number of the letter in reply
to which this letter is being written. ‘Reference’, here, may also be used to
mention the Ref. No (s) of the previous letter (s) already sent by the writer to the
same addressee.

The usual forms of mentioning the subject and reference are :

Dear Sir
Sub : Overdraft facilities for ...............
Ref : Your Letter No. JK / B / 10-03
dated 13th June 2003.

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Dear Sir
Re : Payment of Bill ................................
Ref : Our Letter No. VBD /105 / 03-04
Or

Dear Sir
Sub : Extension of Credt .................
or (Re:)

Dear Sir
Ref : Your order dated 10th August ..............

Thus, either only ‘Sub:’ or ‘Re:’ is used, or ‘Sub: and Ref:’ or ‘Re: and Ref:’ are
used. Never use ‘Sub: and Re:’ Sometimes, the matter is directly written without
prefixing any of these terms but it is definitely advisable to use the terms ‘Sub:’
and ‘Ref:’.

13.3.2 Opening Paragraph :

There is an old German proverb that ‘a good beginning is half the battle (won)’.
This applies doubly when it comes to writing successful business letters. It is
here that the reader’s attention should be attracted and he should be made to
‘go ahead’ with interest and concentration. If the letter fails here, it has failed
totally to achieve its purpose.

The letter should open with the expression of pleasure, gratitude, or

acknowledgement, or with a reference to the ‘action’ you have taken in response
to the reader’s previous letter, if any. Don’t forget the ‘YOU’ approach.

Stereotyped or rubber-stamp openings should be avoided. Don’t begin with

such sentences as :

• Acknowledging your letter dated....

• Yours of 12th November to hand....
• We are in receipt of your letter dated 12th November and have noted its
contents....
• We have noted the contents of your letter dated 12th November.....
• In response to your kind favour, we beg to say....
Better opening would be :
• Thank you very much for your order dated .....
• We have received your letter dated....
In brief, the opening paragraph should arrest the interest of the reader and
make him go through the whole letter with inquisitiveness and anticipation.

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13.3.3 Main Paragraph :

This paragraph contains the subject-matter of the letter. It should be brief and
to the point, but care should be taken to see that no relevant details are omitted
from it. It should be written in unambiguous, sincere, simple and correct words.
The writer should make himself absolutely clear about what he wants to say. If
the main message is not written correctly, accurately and fully, no amount of
interest created by the opening paragraph will be helpful in achieving the
purpose of the letter.

13.3.4 Closing Paragraph :

Like a perfect day every letter must come to a close. The “letter ending must
motivate the action” that the writer wants from his reader. “It must be natural
and logical ; must be final and complete”. It “must be gentle but firm, friendly
but forceful”. (J.P. Riebel). It should stress the ‘YOU’ point of view and, wherever
possible, should use different forms of ‘thank you’. Closing with an important
statement, a question, an offer or a request is also suitable.

The entire body of the letter should reflect a positive approach and a friendly
attitude and it must contain definite sales appeal.

13.3.5 Complimentary Close

The complimentary close or subscription is merely a polite way of ending a letter.

As the use of Dear Sir, etc., is conventional, so is the use of Yours faithfully,
Yours truly, and similar expressions. Just as the salutation is the written
equivalent of “Good Morning” or “Hello”, so the complimentary close is the
written equivalent of “Good-bye”. Salutation and complimentary close should
correspond to each other. The usual forms are given below.

Salutation Suitable Closure Remarks

Dear Sir Yours faithfully

Dear Sirs Standard Closure for Business
Dear Madam (Avoid : Your very Letters.
Mesdames, Ladies faithfully)

Dear Sir
Less formal and used by
Dear Sirs Yours truly
correspondents on intimate terms
Dear Madam
with each other.
Mesdames

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 Dear Sir
Expresses more feeling than
My dear sir
Yours very truly ‘Yours truly’
Dear Madam
My Dear Madam

Sir
Yours respectfully, Appropriate while addressing
Gentlemen
(Avoid : Yours superiors in official
Madam
obediently) correspondence
Mesdames

Dear Mr. Anand

My Dear Mr. Anand Yours Sincerely,
reflects very informal relations
Dear Gokul Yours very sincerely,
My Dear Gokul

Important points to be noted here are :

(1) Only the first letter of the closure is capitalized.

(2) At the end of the closure there may or may not be a comma depending on
the style adopted.
(3) Participle endings like,
Thanking you,
Yours faithfully
Or
Hoping to hear from you soon,
Yours sincerely

are wrong, because they are incomplete sentences. Such endings should be
either avoided or should contain suitable verbs.

Thanking you once again,

I am (or We are),
Yours faithfully
Awaiting an early reply,
I am (or We are)
Yours truly

In fact, it is advisable to avoid such endings altogether, since they are rather old-
fashioned. The complimentary close is written below the last paragraph of the
body of the letter, either at the left side or at the right side of the letter,
depending on the style of the letter.

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13.3.6 Signature
Signature is the assent of the writer to the subject-matter of the letter and is a
practical necessity. It is usually hand-written and contains the writer’s name,
status, department, firm, etc., Signature is put just below the complimentary
close. It should be, as far as possible, legible. If not, the name of the signatory
should be written legibly, in parentheses below the signature.

The following are a few forms :

Business Concern How to Sign

1. A Sole Trader
Trading under his own name. Yours faithfully
Trading under the assumed
name of the firm Gujaralsons, Yours faithfully for Gujralsons
If the owner is a lady, (Miss) Rukmani Menon
Proprietor
2. A Firm
A.P. Iyer & Co., Yours faithfully,
for A.P. Iyer & Co.,
Partner.
Per. Pro. or P.Pro. or P.P.
(Latin Origin – per procurationem Yours faithfully,
= As an agent for) A.P. Iyer & Co.,
(Per. Pro. suggests legal authority)
If a subordinate signs
some routine letter Yours faithfully
A.P. Iyer & Co.,
for S.P. Dhandapani

3. A Limited Company
M.D., / Director / Secretary for Mahadevan & Co., Ltd.,
Managing Director

Per. Pro. Mahadevan & Co.,

Director
for Shower & Shower Ltd.,
Secretary
Signature indicating the
responsibility of the Company Yours faithfully,
Singer India Ltd.,
Sales Manager
Signature indicating
individual responsibility Yours faithfully
A.K. Gangoli
Accounts Officer

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13.3.7 Reference Initials
It is now customary to put the initials of the person dictating the letter and of
the person typing it towards the end of the letter near the left hand margin.
These initials are helpful in fixing the responsibility for typing and dictating the
letter. The initials are put in any one of the following ways.

• ABC A A C ABC : AAC

• ABC / AAC ABC-aac

(ABC are the initials of the person who has dictated the letter and AAC of the
one who has typed it).

13.3.8 Enclosures

Sometimes a letter carries along with it some other papers, such as price list,
catalogue, prospectus, order, invoice, railway or lorry receipt, bill, cash memo, or
cheque, draft etc., In such cases a mention should be made of these enclosures
in the letter after the signature, and at the left side margin, as below.
Encls : Four, Or

Encls. : (1) ........................

(2) .........................
(3) .........................
This helps the outward clerk to ascertain whether the enclosures, as mentioned
in the letter, are attached or not. To the inward clerk it tells that he should also
be careful in taking out the contents of the envelope so as to ensure that all
enclosures have been removed from the envelope before it is thrown away.

13.3.9 Copy Distribution

Sometimes copies of a letter have to be sent to some people other than the
addressee also. In such cases, the names of these persons should be types just below
the reference initials or the enclosure notation, if any, in the following manner :
C. Mr. Rajaraghavan
Copies to Mr. Prasanna Dev and Miss. Ramya Anderson

The names of the persons should be arranged either in order of importance or

alphabetically. If we do not want the addressee to know that some other persons
are also getting a copy of the letter, the names of the recipients can be typed on
the copy only.

13.3.10 Postscript

Postscript (Latin Postscriptum) or P.S. is something written after the letter is

closed. Writing a postscript indicates that the writer had forgotten to include
something important in the body of the letter or he had not planned his letter
properly. From the viewpoint of a good business letter, it is a bad practice to
write a postscript and it should preferably be avoided.

119
However, since postscript stands out prominently, it can be helpful to emphasize
a point already made in the letter or to add a brief personal message unrelated
to the letter. The following brief messages under ‘P.S. can be quite effective :
1. Production has been suspended. Kindly despatch supplies immediately.
2. Please remember this special low-price offer is valid till 31st March.
3. My heartiest felicitations on your assuming the independent charge of the
department.

SUMMARY
Business letters can be categorized on the basis of the style, relationship and
content. The functions of business letters is outlined. The layout refers to the
arrangement of different elements of a business letter.

CHECK YOUR PROGRESS

1. Give an example of salutation and corresponding complimentary
close for a business letter.
....................................................................................................................
...................................................................................................................

2. Give any three forms of letter styles.

.................................................................................................................
.................................................................................................................

REVIEW QUESTIONS
1. Write in detail in the different parts of Business Letter.

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 LESSON-14
REPORTS

LEARNING OBJECTIVES

After reading this lesson, you must able to understand,

• The contents of the report

• Reports by Individual
• Reports by Committee

CONTENTS

14.1. Reports
14.1.1. Why are reports necessary for good management ?
14.1.2. The important of a report as a tool in the management process
14.2. Kinds of Reports
14.2.1. Reports classified on the basis of length
14.2.2. Short Reports classified on the basis of format
14.2.3. What is an effective report ?
14.2.4. Guidelines to be followed to make a report effective
14.2.5. Types of Reports based on content and Periodicity
14.2.5.1. Routine Reports
14.2.5.2. Annual Reports
14.2.6. Classification of Reports based on Content (Subject)
14.2.6.1. Informational Reports
14.2.6.2. Analytic Reports
14.2.6.3. Technical Reports
14.2.6.4. Project Reports :
14.3. Reports – Specimens :
14.3.1. Introduction :
14.3.2. Reports by Individuals
14.3.3. Report
14.3.4. Reports by Committees
14.3.5. Annual Reports – Director’s Reports

Summary
Check Your Progress
Review Questions

121
14.1 REPORTS

Business, all over the world, is an organized and complex activity. What started
as a simple barter system between individuals or groups very long ago, is now a
multi-national affair. Naturally, business for its organization depends on a large
number of functionaries connected with finance, production, research,
distribution, marketing and management, who have to interact at various levels
to keep business going on at an even keel leave alone expansion or growth.
Such interactions are not limited to selling-strategies or problem solving logistics
alone. Business has to undertake a survey of the market, study the preferences
of the consumers and explore new markets. All these activities need to be
consolidated and communicated to the concerned people. It is here that reports
play a crucial role. Reports are important to the management process. They provide the
necessary feedback to the management on the policies and business strategies. Hence,
a report is an effective instrument that makes a full feedback possible.

There are innumerable kinds of reports, long or short, formal or informal,

informational or analytic, descriptive or technical that are prepared day in and
day out and sent to the appropriate authorities requiring them. Governments
depend on reports from experts on various issues to adopt new policies and
enact new laws related to the governance of a state. In business and industry, a
report is an effective tool for good management.

14.1.1. Why are reports necessary for good management ?

1. Reports provide adequate and accurate information that enable

managements to take the right decisions.
2. Reports help in processing the available information easily because the
available information is presented in a logical sequence prioritizing the
most important ones. This helps the management take a sharp focus on
vital issues.
3. Reports play an advisory role. They persuade the readers to take the correct
decisions. They also provide a plan of action that can be easily executed.

14.1.2. The important of a report as a tool in the management process

A report is a detailed document prepared by experts who have the required
knowledge to study and analyze an issue. They collect the required information,
gather data, analyse them and come out with recommendations to the
authorities who require them. So, a report is an important tool leading to
decision making. But is not the only tool. Decisions are taken and executed
based on several other factors as well. There are a number of reports which
have been shelved without any action being taken on them and have been
gathering dust in the shelves. An authority gives a specific issue to be
addressed by a committee or an individual. This area of investigation or
information precisely defined is called “The terms of reference”. The report
should confine itself to the terms of reference.

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14.2 KINDS OF REPORTS

Reports can be classified on the basis of its length, or content :

14.2.1. Reports classified on the basis of length

a) Short Reports :

A short report usually addresses one issue or a single problem. They use less
detailed introductions, less number of visuals and carry less appendices. As a
result they are short in length. A short report may communicate an information
or analyze an issue. They are usually concise and accurate. Short reports that
are informational should be neutral and unbiased. Short reports that are
analytical should be persuasive.

Examples of Short Reports : A foreman’s report to the production manager, a

headmaster’s report on absenteeism to the educational officer or a bank
manager’s report to the head office on loans and deposits.

b) Long Reports :

A long report as the title implies is a report of sufficient length covering the
various aspects of an issue. They are marked by a greater depth of discussion
or detailed analyses than a short report. The preparation of a long report is
demanding and requires collection of data from a wide area and a variety of
resources. A long report has visuals and documents attached to it. They have
several appendices.

Classification of Reports Based on Length

Long Reports Short Reports

Ex : Reports of high Ex : Business Reports
level committees.
Judicial Commissions.
Based on Format

Memorandum Format, Letter Format Report,

Report on a conference, Report on Production,
a tele-conference, Sales & Marketing to
Report of a Telephone Call. Executive Authorities.
Reports on other
organizations.

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 Classification of Reports Based on Periodicity

Routine Reports, Annual Report

Progress Reports, Report of Annual
Sales Reports. General Body Meeting.

Classification of Reports Based on Content

Informational Analytic Technical Project

Report Report Report Report

Examples of long reports : The report of the Weapons Inspection Committee

on Iraq submitted to the U.N, the report of a Parliamentary sub-committee on
Women’s Reservation Bill, and a report on some riot by a judicial commission.

14.2.2. Short Reports classified on the basis of format

Short reports can also be classified on the basis of their format. Usually short
reports have three sections, the introduction, the body and the conclusion. All
these sections are abridged to suit the format.

a) Memorandum Reports
Memorandum reports are useful tools in inter-organizational communication.
The simple format is to provide the following.

To : The recipient Date :

From : The Sender

Sub : .....................................................................

The report does not have demarcations like introduction, body and conclusion.

14.2.3. What is an effective report ?

A report, like the other forms of business communication should be effective. An

effective report serves the purpose for which it is written. Such an effective
report that serves the purpose and strives to achieve its objectives may be called
a good report. A good report reflects the efficient working of the committee or
the individual who prepared it. A good report is one which is read and is
readable. It should be professionally eliminating all superfluities. A good report
should provide accurate information in a language that is marked by clarity.

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14.2.4. Guidelines to be followed to make a report effective
1. Objectivity : The report should conform to the objectives enunciated
(stated) in the terms of reference.
2. Focus : The report should always focus on the main issue without rambling
or straying.
3. Precise and Concise : The report should be precise and concise. The
language should be clear and free from jargon.
4. Completeness : The report should be complete and conclusive. An
incomplete and inconclusive report will leave the question open for further
exercise which will be a waste of resources of time, money and energy.
5. Clarity : The report should state its findings and recommendations
unambiguously leaving no room for doubts.
6. Time Factor : The report should be prepared and submitted on the schedule
decided for it. Unnecessary and avoidable delays defeat the purpose.
7. Unbiased Reporting : The report should be free from prejudices, bias and
partisan approach. It should be neutral in tone and language.

14.2.5. Types of Reports based on content and Periodicity

As seen already, reports can be classified based on their length as short of long
reports or based on their format as memorandum report or letter type report.
Only short reports can be adopted to the memorandum format or letter format.
All reports can also be classified on the basis of their content or their periodicity.
Based on Periodicity

14.2.5.1. Routine Reports

Routine reports are usually submitted on a fixed schedule. Usually they are
made on prepared forms. Progress reports, appraisal reports are examples of
routine reports. A progress report, reports the progress of a particular exercise /
project periodically. An appraisal report is the appraisal of an employee. In
modern days, companies and even universities demand a
self-appraisal report on standardized format.

14.2.5.2. Annual Reports

Limited companies submit annual reports to the shareholders. These reports

are on the company’s performance, goals fixed, successes, failings, Profit and
Loss, dividends and other details about the company. Voluntary organizations
like registered associations also present the annual reports to the general body.
They are usually informational in nature.

14.2.6. Classification of Reports based on Content (Subject)

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14.2.6.1. Informational Reports
Informational Reports provide information that is required. The committee or
the individual collects the information, classifies and presents them in the
reports. They do not give any recommendations. They are usually brief and to
the point.
Examples : A conference report, a report on a training programme.

14.2.6.2. Analytic Reports

An analytic report is the most complex of all reports. It is the result of an
analysis of the information collected. Analytic reports are the result of detailed
investigation. The report makes recommendations and offers suggestions.
These reports are important tools in the process of decision making.
Examples : Reports on the marketing of a new product. A report on the
strategies for a publishing company or the report of an education commission.

14.2.6.3. Technical Reports

Technical Reports contain information on technical subjects meant for people
working in that area of technology. They contain a lot of technical information
and analysis with diagrams, graphs and illustrations. The language employed
will be related to the technical area, understandable completely only to people
connected with it.
Example : A report on the success rate of laser surgery, a report of the law
commission.

14.2.6.4. Project Reports :

A project report is prepared and submitted by the person who has completed a
project. Usually, it is on the completion of the project that the report is finalized,
consolidated and submitted. A project report can be narrative, informative or
analytic. A project report can be in any area like economics, sociology, politics
or sciences or business.

Example : Project reports submitted by research scholars and project reports

submitted by computer professionals.

14.3. REPORTS – SPECIMENS

14.3.1. Introduction :

The managers, secretaries, accountants, chief executives and experts in certain

fields are often required to submit reports on important issues like decline in
sales, the suitability of some premises, the reorganization of office, the chances
of diversification, promotion of exports, the desirability of setting up a new
branch, etc.,

126
Some of these reports do call for technical knowledge and acquaintance with
business subtleties and intricacies. Low output of a plant, for example, needs
technical expertise. But most of the problems are usually general. Apply your
general knowledge and concentrate on the proper arrangement and organization
of the material at your command. Sometimes, imagination can be of greater
help than actual knowledge.

14.3.2. Reports by Individuals

Example 1. Report of a Manager on the suitability of some premises. (An

analytical report in the letter form).

Comments. Large business houses, banks, insurance companies and often

required to set up new branches. When business expands, the accommodation
already occupied appears to be inadequate and new premises have to be
searched for. Industrial houses have also to look out for new sites for their
diversification activities. In such cases it is usual to depute an executive, who
goes about inspecting various sites or buildings, offices, shops or godowns
available and submits a report on their suitability. While drafting such a report,
the following points should be taken care of :

(a) Refer to the resolution or order authorising you to submit this report.
(b) A brief reference may be made to the growing requirements of the company,
bank or factory because of which it has been felt desirable to look for new
premises.
(c) Consider the suitability of a few premises available.
(d) Suggest the best one among them. Refer to its advantages: suitable
location, modern construction, spacious rooms, the possibility of having
good showcases, good storing capacity, the availability of other facilities,
etc.,
(e) Mention some of the drawbacks and disadvantages. It may be situated in a
very congested area with a lot of noise around or some other important
facilities may not be available. Explain how these drawbacks can be
overcome or how its advantages overweigh the disadvantages. Make your
report look impartial lest it should give the impression that you are
personally interested that it is acquired by the Company.
(f) Clearly specify the terms on which this building can be rented or
purchased.
(g) Give your recommendations in clear terms, without either looking over-
enthusiastic or over-cautious. Remember that reports should always look
factual and disinterested.

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14.3.3. REPORT :

THE CORPORATION BANK

Bazaar Street, Hanumanth Nagar

December 12, 20..

The General Manager

The Corporation Bank,
New Delhi.

Dear Sir,

Sub : Report on suitable premises for shifting the Hanumanth Nagar of

the Corporation Bank.

In accordance with your instructions, I have visited our Hanumanth Nagar

branch and carefully studied the business transactions being carried out there.
I do find that Mr. A.R. Micheal, our Branch Manager, is quite justified in desiring
a shift to better premises.

• Space Shortage in the present premises

This branch of our Bank was opened at Hanumanth Nagar in 1965 when
Hanumanth Nagar was a small town with a population of about fifty thousand.
Ever since, it has fast developed into an industrial city. Hanumanth Nagar
Fertilizers, a public sector undertaking, and a unit of the New Delhi Laboratories
Limited have started functioning here. With these factories as the nucleus, a
whole industrial complex has come into existence. The population of the town
has now gone up to three lakh.

The business of this branch has been steadily growing. It is a fact that it is one
of the most profitably running branches of the Corporation Bank. But though
the present premises of the Bank are ideally situated, they are being found
highly inadequate. Every inch of the space available here has been pushed into
service, with the result that the whole atmosphere appears to the congested.
During the peak business hours, the Bank presents an unnerving sight. Such
an atmosphere can be hardly considered conducive to efficient business
transactions. Besides, with such discouraging looks, the Bank can neither
attract nor cope with any new customers. Mr. A.R. Micheal is right in his
observation that if we continue to function here, our further progress will
definitely be jeopardised.

• Proposed alternative site

Since it is undesirable to move to a distant place, I have concentrated all my

efforts on finding out some building suitable for our growing requirements in
this very locality. The Bazaar Street is one of the biggest shopping complexes of

128
Hanumanth Nagar and it is not easy to find any suitable building here. But
fortunately, a building just in our neighbourhood, double the size of the one we
are now occupying and spacious enough to meet our requirements, is falling
vacant next month. Its biggest advantage is its close proximity to our present
premises, so that if we shift there, none of our customers will be inconvenienced.

It is a double-storey building with a large hall nearly 20 metre x 12 metre and

two rooms 5 metre x 4 metre each on the ground floor and identical
accommodation on the first floor. The large hall on the ground floor can provide
enough space to set up all the counters needed. One of the rooms can be
converted into the Branch Manager’s office while the other can be converted into
the strong room. The loans and advances section can be accommodated on the
first floor. A part of the hall on the first floor can be chanted into a room for
lockers. The other two rooms can be used for keeping records and storing
stationery. Of course, we shall have to bear ourselves the cost of building the
strong room and the safe deposit vault as well as of effecting any other changes
we deem suitable.

• Preliminary negotiations, rentals

I have already had preliminary negotiations with Mr. Gopal, owner of the
building. He is also a valued customer of ours. It appears that he should be
willing to rent out the building to us at a monthly rent of Rs. 15,000. It will
initially be leased out to us for a period of five years. I have verified that the
building is tree from all encumbrances.

• Recommendations

The rent of this building appears to be a little on the higher side, but in view of
its strategic location, I have no hesitation in recommending that this building
should immediately be rented.

Estimates for the proposed alterations are enclosed. A letter of consent from Mr.
Gopal offering the building on rental basis for a period of five years will be
obtained and sent to you after we receive your approval to this change.

Yours faithfully,

S.P. Shanmugam
Development Manager

14.3.4. Reports by Committees

Example. Report of a sub-committee of directors on declining sales with

suggestions to promote them.

129
• Comments :
(a) It is a formal report and has to be carefully prepared since the future policy
of the Company will largely depend on it.
(b) Refer to the resolution of the Board of Directors according to which the
sub-committee has been appointed.
(c) Make a mention of the work done – scrutiny of the sales reports and other
important files, personal interviews with important customers, detailed
study of the market.
(d) Enlist the causes responsible for the decline in sales in a systematic
manner. Devote a separate paragraph to every cause – general depression
in the market, competition of the rival enterprises, decline in the quality of
the goods of the Company, lack of proper sales organization, inefficient
publicity, etc.,
(e) Now give your recommendations, again in a systematic manner.
(f) If desirable, a covering letter can be written.

• Letter of Transmittal

FAIR COSMETICS LIMITED

20 Park Estate, Mumbai

August 20, 20..

The Directors
Fair Cosmetics Limited
Mumbai

Gentlemen

Sub : Report on the declining sales of our cosmetics

We have carefully examined the various causes of steep decline in the sales of
our cosmetics as desired by you in the resolution passed at the Board meeting
held on July 10, 20.. A brief report of our investigations and recommendations is
being sent herewith. We hope that a quick action will be taken on these
recommendations so that any further decline is arrested.

Yours faithfully,

A.R. Dev Singh

Chairman

R.O. Chandran Singh

Secretary

Encl. : Report on the declining sales of our cosmetics.

130
• Report of the Sub-committee of the Directors of Fair Cosmetics
Limited on the declining sales of cosmetics.

• Terms of Reference

The members of the Sub-committee were appointed in accordance with the

following resolutions adopted by the Board of Directors in the Board meeting
held on July 10, 20..
ƒ That a Sub-Committee be appointed to study the causes of the declining
sales of the cosmetics produced by the Company and to make
recommendations for the promotion of sales.
ƒ That the Sub-Committee may consist of Shri. A.R. Dev Singh, Chairman
and
R.O. Chandran Singh, Secretary.

• Work Done

1. The Sub-Committee scrutinized the sales reports for different quarters of

20.. and compared them with the sales reports for the previous two years.
2. The Sub-Committee made a careful study of the cosmetics market in order
to ascertain whether there had been a general slump in the market or the
decline hd been peculiar to our Company alone.
3. The Sub-Committee interviewed the wholesale dealers stocking the
cosmetics of our Company as well as the retailers and large number of
actual consumers.
4. The Sub-Committee circulated a questionnnaire among nearly one
thousand actual users of the Company’s products to ascertain their views.
5. The Sub-Committee had the cold cream, the compact, the hair cream, the
talcum powder, the shampoos, the lip sticks and nail enamels carefully
analyzed by some chemists of repute in order to ascertain their quality.

• Findings
¾ The Sub-Committee found that there had been a steep decline in the
Company’s sales during the year 20.., that this trend roughly started
during November 20.. and continues till today. This declining trend is
amply illustrated by the adjoining figure. It is evident that in a brief span
of two years, our sales have come down to nearly 50 per cent.
¾ The questionnaire reveals that the consumers are not satisfied with the
quality of our products. Some of them have clearly stated that there has
been a deterioration of quality. Our Lustre-creme shampoo leaves the hair
dry and rough. The ladies using Cosmopolitan compact report that after a
little while it starts looking caky or masky. The antiseptic talcum powder
does not act as an effective deodarant. The chemists’ reports also point to
the unsatisfactory quality of our cosmetics.

131
¾ Our publicity also leaves much to be desired. We are still following the old
modes of publicity like sending long wordy insertions in the dailies. Our
Publicity Department has not cared to exploit the more effective electronic
media. Our insertions also are not attractive. They are explanatory but
traditional and hold no appeal to the consumer psychology.
¾ During the last two years, Gayway Cosmetics and Beauty Aids, two
renowned companies with foreign tie-ups, and the most modern technology
at their command, have entered the market in a big way. They offer 12 per
cent discount to their dealers against the 10 percent discount offered by us.
Besides, they offer handsome incentives to dealers achieving a specified
sale target in a given quarter. This motivates the dealers to push the sales
of their products. Both these concerns have undertaken door-to-door
publicity and sale of their products. You might have seen the Beauty Aids
publicity campaign. Their advertisements on the Star TV., handled by
Lintas people, are really innovative. No wonder they have captured popular
imagination.
¾ Chemical analysis of our cosmetics has proved that our products are not
fully suited to our climatic conditions. India being a tropical country, the
cosmetics should be able to resist excessive heat and coldness. Ours do
not.

• Recommendations

9 The first thing to be done is, obviously, to take care of the quality of our
products. It appears that we shall have to appoint better qualified chemists
and subject our cosmetics to strict quality control.
9 We should give a new look to our products and build a massive publicity
campaign to boost their sales.
9 We should revise the terms of sale on the basis of market information
relating to credit and discount rates.
9 We should also undertake door-to-door publicity and sales and offer
attractive gifts and bonus coupons.
9 We should make a review of the sales promotion schemes every three
months during the next year.

A copy of the questionnaire circulated among the customers and the chemists’
report on the quality of our products are enclosed for your reference.

A.R. Dev Singh

Chairman

R.O. Chandran Singh

Secretary
Mumbai
August 20, 20.

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14.4. DIRECTORS' REPORT TO THE SHAREHOLDERS

The Directors are pleased to present the Ninth Annual Report and the audited
accounts for the year ended 31st December, 2003.

The process of amalgamation of the erstwhile TVS Electronics Limited with the
company has been successfully completed and equity shares have been issued
to the shareholders and the shares have been listed in the eight premier stock
exchanges of India.

14.4.1 Financial Results

The financial results of the company for the year ended 31.12.2003 include the
effects of the merger scheme executed. The appointed date for the purpose of the
amalgamation was 9th December, 2002 and hence the financial implications of
only the 23 days of the operations of erstwhile TVS Electronics Limited was
included in the annual results for the year ended 31st December, 2002.

The full year transactions of the erstwhile TVS Electronics Limited are now
reflected in the performance of the company in the current year.

In order to provide meaningful comparison, the combined financial result3 of the

erstwhile TVS Electronics Limited prior to amalgamation and the Company put
together and that of the Company alone have been provided for the year 2002, in
the table given below:(Rupees in Crores)

Performance of
erstwhile
Company TVS Electronics Company
performance Ltd. performance
Particulars for the year and the company far the year
ended put ended
31.12.2003 together for the 31.12.2002
Year
ended 31.12.2002
Sales and other income 265.5 221.71 23.70
Profit before interest &
depreciation 15.15 16.44 2.23
Interest 5.08 9.43 0.58
Depreciation 5.21 4.08 0.69
Profit before tax 4.86 2.93 0.96
Provision for tax
- Current tax 1.04 0.43 0.30
- Deferred tax 0.15 0.31 0.04
Profit after tax 3.67 2.19 0.62
Balance brought forward
from previous year 2.89 0.19
Transfer to deferred tax

133
liability on initial adoption - (0.03)
Balance transferred from
transferor companies on
amalgamation 3.60
Tax relating to earlier years -
Total available for (0.02)
appropriation 4.38
- Proposed dividend 6.54 1.32
- Tax on dividend 1.32 0.17
- Transfer to general 0.17
reserve
Surplus in Profit and - -
loss account 5.05 2.89

Dividend
The Directors are Phased to recommend a dividend of Rs. 0.75 per share for I
the financial year ended 31st December, 2003. The dividend if approved by the
shareholders would absorb RS: 132.55 lakhs and the proposed dividend will be
paid to all those shareholders whose names appear in the Register of Members
of shares held in electronic form and as on 16th June, 2004 in respect of shares
held in physical form.

Review of Operations
The turnover of the company in 2003 was at Rs. 266 crores as against the
comparable turnover of Rs. 222 crores in 2002 of the erstwhile TVS Electronics
Limited arid the company put together; a growth of 20%. The Indian personal
computer market registered a healthy growth of more than 30% in 2003, with
the growth coming from smaller cities and towns. This resulted in the dot matrix
printer market growing at 30% in 2003 after two successive years of negative
growth rate.;

The Company’s a tow groups products & Solutions (P&S) and Electronic
manufacturing Services (EMS)

The Products & Solutions business group is the market leader in dot matrix
printers with a market share of around 40%. This business group delivered a
turnover of Rs. 214 crores (81% of the total turnover against Rs. 16$ crores last
year.

The highlights for the year 2003 for the P& S business was 30 % growth in the
sale of dot matric printers and doubling of the sale of retail computer system to
the banking segment for their merchant acquisition programe. “TVS Sprint” a
retail automation product bringing the power of IT to the ‘retail trader’ has
established itself well in the grocery segment in Tamil Nadu. “TVS Proton”, the
worlds’ quickest bill printer, has been well received. The company retained its
leadership position in the mechanical keyboards business.

134
The EMS business, excluding the inter segment revenue, has contributed Rs. 47
crores to the turnover (18% of turnover) against Rs. 57 crores last year. The
drop in turnover was because of lower off take by external customers due to
their phasing out certain products. The business has invested in new products
in its power segment inline interactive UPS and online UPS. Exports at Rs 34
crore were at same level as last year. The drive for new customer acquisitions
during the year is expected to deliver growth in future.

Future Outlook
The demand for the personal computer is expected to pick-up in 2004 as result of
strong buoyancy in the economy and Government purchases, and this will impact
the growth of the printer and peripheral businesses positively “TVS Proton" is well
positioned to increase the company's market share in the printer business and also
lend support to our export thrust aided with its contemporary styling, features and
price position. The launching of a range of UPS and supplies products will deliver
additional contribution to the top line. Efforts are also on to enhance the
distribution and service network to significantly improve market penetration.
The company strategically continues its investments in new product
introduction and development through its A&D efforts.

The EMS business group presents a strong growth opportunity with global
players looking for partners for contract manufacturing; The division has
acquired significant orders on ODM exports and contract manufacturing.
Investments on building skill, competence and infrastructure are underway to
enable this business group to emerge as a strong player in this business.

Finance
The business has generated a net cash of Rs. 5.86 crores during the year, as a
result of improved business performance and effective treasury management.

Deposits
The company held Rs. 43.92 lakhs as public deposits as on 31st December,
2003, out of which, deposits aggregating to Rs. 5.17 lakhs have matured but
remain unclaimed as on that date. The company has stopped accepting fresh
deposits and renewals.

Directors
Directors of the Company, Mr. Venu Srinivasan and Mr. T K Balaji retire by
rotation at the ensuing annual general meeting and being eligible, offer
themselves for re-appointment. Necessary resolutions for their re-appointment
are being placed before the members for approval.

Mr. R Vijayaraghavan was appointed an Alternate Director to Mr. S R Vijayakar

by the directors on 10th March, 2004.

135
Subsidiary Companies
The company does not have any subsidiary as on 31st December, 2003 and
hence the need to attach the audited statements of accounts relating to the
subsidiary companies as required under Section 212 does not arise.
Auditors

M/s Sundaram & Srinivasan, Chartered Accountants, Chennai, the auditors of

the Company retire at the ensuing Annual General Meeting and are eligible for
re-appointment.

Employee Stock Option Scheme

The members of the erstwhile TVS Electronics Limited at the annual general
meeting held on 9th August, 2000 approved the formulation of the Employee
Stock Option Scheme (ESOP) for the eligible employees of the company and its
directors and also to the eligible employees of the holding / subsidiary
companies of the company. Pursuant to this, as approved by the Compensation
Committee, the erstwhile TVS Electronics Limited had issued 2,11,000 Employee
Stock option, to its eligible employees at a price of Rs. 70/-per share for the
financial year 2003 Out of this 9,000 options granted to an employee lapsed on
account of hi resignation before vesting of the options.

Subsequently, in terms of the scheme of amalgamation of the erstwhile TVS

Electronics Limited with your company, which was«duly approved by the
members at the Court convened meeting held on 9th April, 2003, your company
had taken over the obligation of 2,11,000 ESOP options issued by the transferor
company, Each option entitles the holder thereof to apply for and be allotted one
equity share of the company of the nominal value of Rs. 10/- each on payment
of the exercise price during the exercise period.

The company's auditors M/s. Sundaram & Srinivasan, Chartered Accountants,

Chennai have certified that the scheme has been implemented in accordance
with the Securities and Exchange Board of India (Employee Stock Option
Scheme & Employee Stock Purchase Scheme) Guidelines, 1999 and the
resolution passed by the members at the aforesaid general meeting.

Details of the options granted during the year January to December, 2003, as
required under Clause 12 of the Securities and Exchange Board of India
(Employee Stock Option Scheme & Employee Stock Purchase Scheme)
Guidelines, 1999 are set out in Annexure "A" to the Directors' Report.

Personnel
As required by the provisions of Section 217(2A) of the Companies Act, 1956
read with Companies (Particulars of Employees) Rules, 1975 as amended, the
name and other particulars of the employees are set out in Annexure "B" to the
Directors' Report.

136
Awards and Recognitions
The company has won many awards and recognitions in 2003 and in the first
quarter of 2004.
This list amongst others includes the following:
1. MAIT award for business excellence (Level II) and for excellence in exports for
2002-2003 by Manufacturers' Association for Information Technology.
2. "Stunners Award" for excellence in product design for TVS Proton printer.
3. "Golden Rhino Award" from IT nation for the most reliable brand in Dot
Matrix printers and keyboards.
4. Ranked among the top 250 companies by Deloitte Touche Tohmatsu in their
Asia Pacific Technology FAST 500.
5. Ranked among top 3 IT brands in India by PC Quest magazine.

Report on Energy Conservation and R & D Activities

Information relating to energy conservation, foreign exchange earned and ;pent
and research and development activities undertaken by the Company in
accordance with the provisions of Section 217(l)(e) of the Companies Act, 1956
read with Companies (Disclosures of particulars in the report of Board of
Directors Rules, 1988 are given in Annexure "C" to the Directors' Report.

Directors Responsibility Statement

As required by Section 217(2AA) of the Companies Act, 1956; the directors'
responsibility statesmen*: is enclosed as Annexure "D*" to the Directors' Report.

Corporate Governance
Pursuant to clause 49 of the Listing Agreement with the Stock Exchanges where
the shares of the1 company are listefd,1 a management discussion a analysis
report and a corporate governance report are made part of this Annual; The
cdmpany's1 Audit Committee consists of Mrs. Srini Nageshwar, Mr. S.R>
vijayakar and Mr. h.lakshmanan, as its members, in compliance with the
provisions of Section 292A of the Companies Act, 1956 and the provisions of thej
listing agreement with Stock Exchanges.

The company has constituted an "Investors' Grievance Committee" to deal; with

complaints and grievances of the investors. The company has also constituted a
"Remuneration / Compensation Committee" consisting of four directors of which
Mr. R. R. Nair, Mr. Srini NageShwar, Mr. S. R. Vijayakar,; areihdependeni
directors and Mr. H. Lakshmanan, as its member. The members of thd
Remuneration Committee also act as the Compensation committee that
administers and superintends the stock option plan of the company.

A certificate from the auditors of the company regarding compliance of the

conditions of corporate governance as stipulated by clause 49 of the listing
agreement is attached to this report.

137
General
The Directors with to place on record their appreciation for the committed
service of employees of the Company for its success.

The Directors would also like t6 express their grateful appreciation for the
assistance and ''co-operation received from the customers, depositors, dealers
partners, bankers, financial institutions, business partners and its parent
company Sundaram – Clayton limited and" its holding company TVS
Investments Limited miring the year.
The Directors thank the shareholders for the continued confidence and trust
placed by their on the company

For and on behalf of the Board

CHENNAI VENU SRINIVASAN
April 26, 2004 Chairman

Summary
The Directors are to present the Ninth Annual Report of the Company i along
with audited accounts for the year ended 31st December, 2003. The erstwhile
TVS Electronics Limited has been amalgamated with the said company and its
shares have been listed in the eight premier stock exchanges of India. The
total' income of the company for the year grew by 16.49%, profit before tax
grew by 39.71% and profit after tax grew by 40.33%. We have recommended a
dividend of-7.5% for the current year. The company has recorded a growth of
20% in its; turnover compared to that of the year 2002. The company's
business group,' Products and Solutions, is the market leader in dot matrix
printers with a market. share of around 40%. Its second group, Electronic
Manufacturing Services, has; experienced a drop in turnover by 18% because
their customers are phasing out certain products. The company is looking for new
customer acquisitions, Increasing; demand for computers in future will increase
demand-for company's printer and. peripheral businesses. A net cash of Rs.5.86
crores was generated by the company during the year. The Company held public
deposits of K6. *43.92 lakhs at the end of the year. No fresh deposits were
accepted. MR. Venu Srinivasan and Mr. T.K.S Balaji retired by rotation and
offered themselves for reappointment as directors. Mr. R. Vijayaraghavan was
appointed as Alternate Director to Mr. S.R. Vijayakarj The Company had no
subsidiary. The company considered reappointment of M/s Sundaram &
Srinivasan as its auditors. The company had issued Employee Stock options to
its eligible employees of Rs. 10/- each, under the scheme approved by.
Securities and Exchange Board of India. Names and particulars of the
company's! employees are attached herewith. The company won MAIT. award for
business; excellence, 'Stunners Award' for excellence in product design, 'Golden
Rhino Award for its, printers and keyboards. Information regarding
company's energy conservation, foreign exchange earned and spent and
research and development activities and directors' responsibility statement are
attached herewith. The 'Audit Committee', 'Investors' Grievance Committee' and
'Remuneration/Compensation Committee' of the company operate in compliance

138
with provisions of the Companies Act. The company complied with the norms of
corporate governance. The directors thank the employees, customers,
depositors, dealer partners, bankers, financial institutions; business, its
parent company, its holding company and shareholders for making the
company successful.

SUMMARY

We have learnt how to draft report by individuals, committees and annual

reports. A good report should be true, brief and simple. It must clearly convey
the details.

CHECK YOUR PROGRESS

1. Give the contents of the reports by individuals.

.................................................................................................................

.................................................................................................................

2. Give the contents of reports by committee.

.................................................................................................................

.................................................................................................................

REVIEW QUESTIONS

1. Write a report to the management to install a clean water system as the

technical manager.
2. As a Company Secretary, write to the top level management the need for an
immediate advertisement campaign for the public issue.

139
 LESSON-15
APPLICATION FOR APPOINTMENT

LEARNING OBJECTIVES
After reading this lesson, you must understand,
• The forms and contents of an application letter
• Bio-data
• Application Blanks
• Specimen Application Letters

CONTENTS
15.1. Introduction
15.2. Important Aspects of a Job Application
15.2.1. The Opening Section
15.2.2. The Third Section
15.2.3. The Fourth Section
15.2.4. Remember the following while drafting a job application :
15.3. Form and Contents of an Application Letter
15.4. Bio data
15.5. Application Blanks
15.5.1. Specimen Application Letters
15.6. References
15.7. Testimonials
15.7.1. While writing testimonials the following points should be kept in
mind:
15.8. Letters of Appointment

Summary
Check Your Progress
Review Questions

15.1. INTRODUCTION

Application letters are written when someone needs a job. They are personal
letters incorporating a few features of a business letter. Since the applicant
seeks to sell his services, an application letter is a kind of sales letter and all the
guidelines useful in writing sales letters are applicable here. Only it is more
difficult for the writer to say something about himself than about some product.

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The first objective of an application letter is to obtain an interview. So the letter
must be distinguished enough to attract immediate attention and to arouse
interest. But it must not be too unusual, or it may appear eccentric. It must
convince the prospective employer that he can profit from the talents and
services that the writer offers.

The purpose of a letter of application is to help one sell oneself. The letter
should clearly state the job you want, tell what your abilities are and what you
have to offer the prospective employer. The letter should provide a good clear
picture of your qualification, your accomplishments, and your aims. It should
present you to the prospective employer in the best light.

At present, the job scenario has undergone a great change. Life long job security
is not available any longer. Secure jobs are fewer and fewer. Reengineering of
corporations and restructuring of entire companies have led to a situation where
people have to be constantly scouting for better jobs and career advancement by
shifting from one firm to another. The need for self assessment and evaluation
is very high today. A person seeking a job or seeking a change has to focus on
himself / herself.

15.2. IMPORTANT ASPECTS OF A JOB APPLICATION

A job application should have certain sections, each covering a certain aspect.

15.2.1. The Opening Section

This is the section in which the applicant gives his name and address as the
heading of any letter. The address should include E-mail, Fax, and Telephone
numbers, if available. In the opening section, the applicant should make a
statement of his objective or career goal. It should be stated in a single and
arresting sentence. It can detail the general or specific objective or goal.
The Second Section

The next section should give your profile viz-a-viz your qualification, and
educational accomplishments. While giving qualification, give names of
institutions attended and degrees / diplomas obtained. Mention any relevant
outstanding achievements as well. Decide whether you should include grades
obtained or not. If it is very low, it would be better to omit the details.

15.2.2. The Third Section

The third section is devoted to experience. Your experience relevant to the job
you are seeking will provide the employer a tool to assess your suitability to the
job. Put down the names of the organizations, positions occupied and the actual
work you did there. Do not be vague but be specific. Say what you achieved
there for the organization. Do not be very humble when you project your work
experience. Do not also exaggerate and brag.

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15.2.3. The Fourth Section
The fourth and last section of the resume is optional. If it is included, give
personal data here. Personal data relates to health, habits, physical skills,
service to and membership of voluntary organizations and even marital status.

15.2.4. Remember the following while drafting a job application :

Do’s and Dont’s for a Job Application :

1. Do not write in pencil.
2. Do not write on wrinkled, ruled, odd shaped and odd coloured stationery.
3. Do not use performed stationery.
4. Do not be general, vague and dull.
5. Watch your spelling and punctuation.
6. Do not misspell the name of the company or the prospective employer.
7. Neat type-written application should be preferred.
8. Do not ask for a job because you need it. Do not try to elicit sympathy.
9. Do not include irrelevant experiences, however interesting they are.
10. Do not compromise on self-esteem.
11. Do not use unfamiliar vague expressions.
12. Choose concrete expressions.
13. Limit your resume / application to one page.
14. Give an account of your previous experience / beginning with an active
verb, such as the following :
i. Analysed data to get a better focus.
ii. Designed a fuel saving mechanism.
iii. Investigated the cause for the fluctuations in the market.
iv. Improved after sales service.
v. Sold ten percent more than the projected target.

15.3. FORM AND CONTENTS OF AN APPLICATION LETTER

(a) The Writer’s Address and Date.

Generally, the writer’s address is written at the right-hand top corner of the
letter. The date invariably forms a part of the writer’s address. However, this
address can also be written at the left-hand top corner. In such a case, it is
good to say ‘From’ before beginning the address in the next line. This would
then require writing ‘To’ before writing the inside address. Also, in this case, the
date is written at the end of the letter, beginning with the left-hand margin and
on the same line where complimentary close is written.

(b) The Inside Address.

This depends upon whether the application is in response to an advertisement
or is an unsolicited application.

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(i) If it is in response to an advertisement : The advertisement may contain
the name (i.e., the position and not the personal name) of the officer to whom
the letter is to be addressed. In that case, the inside address will start with the
status-name of that officer :
The Personnel Manager
Hindustan Lever Ltd.,
Calcutta
Or

The Employment Officer

Pioneer Refineries Ltd.,
Goa

Or

The Manager
Gujarat Engineering
Mumbai

Sometimes the advertiser does not mention the name of the officer to whom the
application is to be addressed; nor is there any identification of the advertiser.
The advertisement simply contains a Box or Bag Number to which the
application is to be sent. In such a case, the inside address would be :

The Advertiser
Post Box No. 333,
Mumbai 110 006.

Or If the Post Office

Box or Bag Number is given.
The Advertiser
Post Bag No. 182,
Calcutta

Or

The Advertiser
Box No. 9911, If Box Number of the
The Hindu, Newspaper is given.
Mumbai.

(ii) If it is unsolicited : The letter should be addressed to the appropriate officer :

The Personnel Manager (The Employment Officer /
Guest, Keen, Williams The Manager, Etc.,)
Mumbai

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(c) The Salutation : In almost all types of application letters, “Dear Sir” is the
common salutation used.
(d) The Opening Paragraph : As in a sales letter, the opening paragraph
should attract the attention of the reader and arouse his interest to read the
letter further. Since the letter is not about a ‘product’, it is difficult to have an
objective point in the ‘opener’ of the letter. What is required is to give a brief
direct and summary-like statement. A few examples of good opening paragraphs
are given below.
1. I request your favourable consideration of my qualifications for the position
of ... with your firm advertised in The Hindu, dated....
2. Your advertisement in The Indian Express, dated... for the position of a
Senior Manager suits my qualifications and experience.
3. With my ten year’s experience as a Assistant Advertising Manager of TVS
Motor Ltd., I feel I am quite suitable for the Manager’s post that you
advertised in The Hindu dated....
4. Four years of my study and a full year’s practical training at the HP Ltd.,
Workshop have prepared me for the post advertised by you in The Indian
Express dated....-an Accounts Officer with specialization in Cost
Accounting. Next month I am receiving my Diploma Certificate from the
ICWA and my Training Certificate from HP Ltd., too.
5. If memory, speech and practical application are the sine qua non of a good
Legal Adviser, here is the proof that you find them all in me for the Legal
Advisor’s position in your Corporation.
i. A First-Class in L.L.B., and L.L.M.
ii. A Gold Medal in the Paper ‘Applied Laws’ at L.L.M.,
iii. Five Firsts at the College, University and State-Level Debating and
Extempore Speech Competitions.
6. Mr. Waman Ambekar of your Associate Concern at Hubli todl me of your
desire to open your new branch at Panjim. I feel that my education and
experience as Accountant in Sirur Agencies (P) Ltd., Hubli, would merit your
consideration of appointing me as the Branch-in-charge of your Audit firm.
(Note : The last opening is not quite usual. It also pre-supposes that the
writer has the permission of the named person to mention him).
There are also some conventional openings for these application letters :
7. With reference to your advertisement in The Free Press Journal of 4th
October, I wish to apply for the post of ................
8. In response to your advertisement .......... etc.,
9. Referring to your advertisement in ........ etc.,

(e) The Middle Paragraph. Once the opening paragraph has achieved its aim of
arresting the reader’s interest, further work is easy. The middle paragraph, or
the body of the letter, should now give the details of the important points
mentioned in the opening paragraph. It has to give basic information about the
applicant :

144
(i) Education, with grades, classes, ranks and scholarships obtained (If there
is nothing extraordinary about grades, classes, etc., golden silence would
probably be the best).
(ii) Physical or health details : Date of birth and age; height and weight; and
general health condition.
(iii) Marital Status.
(iv) Experience (with reason for leaving the job, if that reason is not going to
adversely affect the prospective employer’s consideration of the application).
(v) Languages Known : Specific hint about the knowledge of reading, writing
and speaking in each language to be given.
(vi) Nationality, wherever it is specifically asked for.
(vii) Testimonials: copies of testimonials to be attached to the letter; a note to
that effect should be made here.
(viii) Reference : It is always preferable to mention at least two persons names
and addresses to whom the prospective employer can refer the case for
obtaining information about the applicant’s industry, honesty, sincerity,
integrity of character, etc.,
(f) The concluding paragraph. The writer of an application letter seeks an
interview with the prospective employer. Having told how and why the
prospective employer would benefit by the writer’s qualifications and experience,
the concluding paragraph should now strongly suggest to the prospective
employer to ‘act’, i.e. grant an interview. It is here that many writers commit the
mistake of using words that would win them the ‘sympathy’ of the prospective
employer, e.g.,
ƒ Given an opportunity to serve in your esteemed concern, I assure you of my
best services to my superiors.
ƒ I request you to be kind enough to give me an opportunity to serve in your
reputed firm.
ƒ If appointed I shall always endeavour to satisfy my officers under whom I
would be required to work.
You should remember that jobs are not given in charity. The prospective
employer will grant you an interview only if he finds you suitable for the post
and not out of ‘sympathy’. So just be simple and direct in asking for an
interview. The following closings are quite effective.

• May I have a 15-minute interview in which to substantiate these

statements and to answer your further questions ?
• Although I have gone into considerable detail in this letter, there are
probably questions that you still want answered. May I come in for an
interview ? You may reach me at the address or telephone number given at
the top of my personal record sheet.
• I hope to hear from you soon.
• I look forward to an opportunity to be with you for an interview.

145
• May I look forward to an interview with you at your convenience ?
• I should greatly appreciate an opportunity to convince you that my services
would be a sound investment (Hume and Bayley).
• I hope that my qualifications will merit your consideration.

(g) Complimentary Close and Signature. The most commonly used

complimentary close is ‘Yours faithfully’. Avoid using such subscriptions as ‘I
have the honour to remain, Sir, Your most obedient servant’ or ‘ I beg to remain,
Sir, Your most obedient servant’ or ‘Your most obedient servant’, etc.,

Below the signature is generally written, in brackets, the name of the applicant.
In the case of a lady-applicant, her marital status is indicated by the use of the
term ‘Miss’ or ‘Mrs’ prefixed to the name.

(h) Enclosures. It is always a good policy to mention the number of nature of

the documents and other papers enclosed with the application letter.

15.4. BIO DATA

A recent trend in writing application letters is to write it in two parts: (i) the
application letter itself, containing an appeal to the prospective employer, and (ii)
the Bio-data or Personal Record Sheet, that gives a detailed information about
the personal qualities, education, experience, etc., of the applicant. This form is
generally preferred by those who have something worth telling about their
qualifications and experience, but those having just a normal or not-so-good a
record of education and experience prefer to write everything in the main
application itself.

15.5. APPLICATION BLANKS

Many of the Government or semi-government departments or under-takings

have their own prescribed application forms which contain varied questions to
be answered by the applicant. The completed application form itself becomes an
application – a standardized letter. Sometimes the advertiser gives the ‘form’ of
the application in the advertisement itself. The applicant will then have to
prepare their application letter strictly according to that form only.

15.5.1. SPECIMEN APPLICATION LETTERS

Example 1. Application for the job of a medical representative.

95/A, Nehru Street,

Bharathiar Nagar,
III Street,
Coimbatore.

146
05th August, 20..
The Advertiser
Box No. 83
The Hindu
Coimbatore.
Dear Sir,

I am a Science Graduate with PCB as my optional group. Your advertisement in

the Hindu for a Medical representative’s post suits my qualifications and
aptitude. Here are my details.

My High School and College Education has been completed in the City of
Chennai. I passed the S.S.C. Examination from National High School in 19.. in
the First Class. I graduated from Government College with Physics, Chemistry
and Biology as my major subjects at the Bachelor of Science Examination in
April 19.. I obtained a High Second Class grade, with 62% marks in the major
group of subjects.
During the entire 3 years of my college career. I have been on the Students
Union of the College in different capacities, as the Magazine Secretary and
Student Activities Secretary. While working in these capacities, I have had
ample opportunities to meet different people for obtaining advertisements for the
College Magazine and for organizing social activities for the students.

I am 21 years of age, unmarried, and am blessed with excellent physique. My

hobbies are travelling and reading. I can read, write and speak English, Marathi
(mother tongue), Kannada and Hindi, I have a fair knowledge of Konkani, too.

I have enclosed copies of testimonials from the Principals of National High

School and Government College, where I received my education.

I hope my qualifications will suit your requirements and I await an interview

soon.

Yours faithfully,

P.R. Raj Singh

Encls. : Five

Example : Application for the job of a Lecturer in Commerce

From

42, Ragava Nivas,

Ram Nagar,
Coimbatore.

15th July 20..

147
To
The President
Best Education Academy
Nandhapur (Andhra)

Dear Sir,

For a College to be newly established, a highly qualified and experienced

Principal is, no doubt, an asset. Equally important, I am sure you will agree, is
a lecturer who would take up the brunt of the teaching burden during the initial
period and would also assist the Principal in administrative matters. This is
what has prompted me to apply for the post of the Lecturer (SG) in Commerce in
your college advertised by you in the Indian Express dated 10th July 20..

The enclosed Bio-data gives you details about my academic achievements,

teaching experience and interest in extra-curricular activities. May I have a
personal interview at your convenience so that I can substantiate my statements
and answer any other questions you may like to ask ?

Yours faithfully,

P.P. Dev

BIO-DATA
1. PERSONAL DATA
• Name P.P. Dev
• Date of Birth 12th March 19..
• Age 32 Years
• Height 172 cm
• Weight 75 Kg
• Marital Status Unmarried
• Address 42, Ragava Nivas,
Ram Nagar,Coimbatore.
• Telephone No. 5782378

2. ACADEMIC QUALIFICATIONS

Year of Board / Percentage

Examination Division Subjects
Passing University of Marks
English,
Maths,
Board of
Science,
S.S.C., 19.. Secondary 82 I
Social
Education
Science,
Sanskrit

148
 Major :
Business
Organization,
Madras
B.Com., 19.. 72 I Advanced
University
Accounting
and
Economics
Madras
M.Com., 19.. 61 I
University

3. MERIT RECORD

(i) (a) B.Com., (Part I) – 3rd rank

(b) B.Com., (degree) – 1st rank
(c) M.Com., (degree) – 1st rank

(ii) (a) Merit Scholarship throughout the period......

(b) Rama Iyengar’s Charitable Trust Scholarship during ............
(c) The Government of India Open Merit Scholarship during .............
(iii) I received the ‘Dr. R.P. Rathnam’s Silver Jubilee Fund Award’ for the first
rank obtained at the M.Com., Exams.

4. EXTRA-CURRICULAR ACTIVITIES

(a) Member, College Planning Forum for two years, during....

(b) Best Speaker and debater of the college for two years, during .....
(c) Played hockey at the district level.

5. EXPERIENCE

(a) Working as a Lecturer in Commerce and Accountancy, College of

Commerce, Bheemanagar, since.....
(b) Since 19.. I have been incharge of the Sports Department and have
managed the College Sports and Athletics Teams participating the
Zonal, Inter-Zonal and University Sports Meets.

6. OTHER PARTICULARS

My Book Elements of Commercial Law published by Sultan Chand &

Sons, New Delhi is used as a text book in a number of colleges all over India.

7. REFERENCES

(i) Dr. Vidyashakar

Head of the Department of Commerce,
Karnataka University, Dharwar.

149
 (ii) Dr. Nandakumar,
Principal, Bheemnagar Commerce College,
Bheemanagar.
(iii) Mr. M.P. Vinod Bharatwaj,
Chartered Accountant,
Ram Nagar, Bheemanagar.
(P.P. Dev)

(Note : The application letter given above illustrates how bio-data is prepared.
Some other details may be omitted or included according to the specific needs of
the post applied for).

15.6. REFERENCES

A referee is a person who is ready to vouch for another. The test and the
interview conducted by the employer enable him to select the candidate/s
suitable for the work. But before the appointment order is sent it may be
necessary for him to obtain information about the selected candidate’s integrity,
honesty, ability for the post and any other facts which may be useful for the
purpose. Hence, the applicants are generally requested to name, in their
application, a person/s who is / are willing to be a reliable source of information
about them. Such references are usually the current employers or the head of
the institution where the candidate has pursued his / her studies or some other
responsible member of the society.

While writing to a referee, the following points should be kept in mind :

• The letter must be written in a polite language.
• The letter must seek specific information about the applicant.
• The letter should be marked ‘Confidential’.
• It is a good practice to enclose a pre-paid self-addressed envelope for the
convenience of the referee.
• The referee must be assured that the information supplied by him will be
treated as confidential.

Sometimes specially prepared form letters are sent to the referees. In such a
case it is ensured that the employers will get the information sought by them.
Such forms may be sent to the applicants who may get them filled in by the
referees and send them to the prospective employers.

When enquiries are received from the prospective employers, it is necessary for
the referees to reply. Withholding replies to such enquiries implies a negative
opinion. This may cost the applicant an employment opportunity.

If the referee is an employer of the applicant, he should give a chance to his

employee unless he is quite undeserving to find employment with someone else
who may offer better prospects. Where a ‘fine’ recommendation cannot be given,
words of ‘faint’ praise may be used in a ‘suggestive’ manner. For example,

150
(i) “His work was satisfactory enough”.
(ii) “His typing is almost satisfactory. (It suggests that the work was not quite
or highly satisfactory).
(iii) “Since Miss Renuka Hari has taken a refresher course in short hand, her
work should now show an improvement”.
(This is suggestive enough of Miss. Hari not-so-satisfactory work).

15.7. TESTIMONIALS

A testimonial is a certificate testifying the character and qualifications of the

person in whose favour it is used. We can also describe it as a letter of
recommendation from a reliable and respectable third party. Applicants usually
attach a couple of testimonials with their applications to impress the prospective
employers. A reference is related to a specific case but a testimonial can be
repetitively used with a number of applications.

15.7.1. While writing testimonials the following points should be kept in

mind:
• Since a testimonial is a certificate, and not a letter, it does not contain the
inside address, salutation or complimentary close.
• It is generally very brief and deals directly with the qualifications and
character of the person concerned.
• The testimonial mentions only the facts that the issuing person is expected
to know authoritatively.
• If issued by the Head of the Institution where the person studied, it may
mention his interest in sports and other extra –curricular activities apart
from his academic achievements.
• If issued by the ex-employer, a note about the efficiency, industriousness
and integrity of the person should also be made.

Example.

A testimonial by a person of high position.

A.P. NAIR
Quality Stores,
Mumbai.

2nd April 20..

This is to certify that I have known Shri. K.B. Santhosh for the last three years.
He is a brilliant scholar of capable of discharging any responsible assignment
with great competence. I vouchsafe his character and cool temperament. He is
fit to be absorbed as a high rank official.

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A.P. Nair
Honarary President
Chamber of Commerce and Industry, Mumbai.

Example. A testimonial by an Employer.

AKSHAYA TEXTILES (P) LTD.,

Regd. Office: Site No. 110, Industrial Estate,
Main Road, Erode.

2nd July 20..

TO WHOMSOEVER IT MAY CONCERN

Mr. K.B. Santhosh has been working with us for the last seven years. He is
familiar with all aspects of office work and has brought dignity and distinction to
every seat he has occupied. For the last three years he has been working as the
Accounts Officer of the Perundurai Branch.
Mr. K.B. Santhosh is a man of integrity, dynamism and commitment. He is sure
to prove an asset to any organization he joins.

During the course of the re-organization of our Company, we have had to wind
up the Perundurai Branch. Since we cannot provide him with a job compatible
with his qualifications and experience, very reluctantly we have agreed to part
company.
I wish him success in life.

Sriram Mandhya,
General Manager.

15.8. LETTERS OF APPOINTMENT

These days a letter of appointment is drafted in a very formal and official style.
It is generally brief and simply tells the salary that the employee will get and the
time when he is to report to duty. It can in fact be made more pleasing,
informative, polite and interesting. The following important points may be
covered in a letter of appointment.
• Convey the appointment with words of congratulations.
• If it is an important vacancy being filled in, tell the appointee what work is
expected of him.
• Give the date and time of reporting to duty and the name of the person to
report to.
• Mention whether the appointment is probationary / permanent or
temporary and the period of probation or the expiry date of the temporary
vacancy.

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• Mention the salary, allowances, perquisites and other benefits the
appointee is entitled to.
• Request the appointee to convey his acceptance.
• Express the hope that the appointee will have a pleasant association with
the firm.
Example. An Appointment Letter

JANSONS ENGINEERING
27, SIPCOT Industrial Estate, Chennai

15th October, 20..

Mr. Sethu Santhosh,

1231B, Balaji Enclave,
Mumbai.

Dear Mr. Sethu,

Subject : Appointment as Accounts Officer.

With reference to your application dated 30th September, 20.. and subsequent
interview on 12th October 20.., we are pleased to offer you the post of Accounts
Officer in our Head Office at 27, SIPCOT Industrial Estate, Chennai. Your basic
pay will be Rs............... in the pay scale of Rs. .................. You will also be
entitled to Dearness Allowance, House Rent Allownace, Conveyance Allowance
and Canteen Subsidy as per Company’s rules as applicable to the employees of
your category from time to time. At present, your Dearness Allowance will be
Rs. ...................., House Rent Allowances 30% of your basic pay and canteen
subsidy
Rs. .................. You are eligible to join the Company’s Provident Fund from the
date of appointment. The Company’s monthly subscription will be at the rate of
8 per cent of your basic pay and Dearness Allowance. Your subscription will be
at this or a higher rate.

Please inform your acceptance immediately and report for duty to Mr. R.P.
Ramasamy, Deputy General Manager, 27, SIPCOT Industrial Estate, Chennai on
or before 25th October 20.. 10:30 a.m.

We look forward to a happy association with you.

Very truly yours,

A.M. Santhosh Kumar

General Manager

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SUMMARY
An application letter is a letter which the applicant sells his service. The points
for drafting the application letter are discussed. The difference between resume
and bio-data is explained. Interview is a tool used by the employer to choose the
best candidate. An interview may be panel, standard or computer interview.
Testimonial is a certificate testifying the character and qualification of a person
and it can be repetitively used with a number of applications. Letter of
appointment is brief and tells when the selected candidate is to report to duty.

CHECK YOUR PROGRESS

1. Write down the points to be kept in mind while drafting an

application letter.
.................................................................................................................
.................................................................................................................

2. Write down the points to be kept in mind while drafting a reference

enquiry about the applicant.
.................................................................................................................
.................................................................................................................

REVIEW QUESTIONS
1. Draft and application to the post of a computer analysis in a multi-national
company.
2. As the Chief Executive of your company, write a testimonial for one of your
able and efficient employee.

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UNIT – V

155
156
 COMMUNICATIONS MEDIA

LESSON-16
COMMUNICATION MEDIA,
MERITS OF VARIOUS DEVICES, E-MAIL, INTERNET, INTERCOM,
TELECOM, TELEX, TELEPHONES AND FAX.

LEARNING OBJECTIVES

After completing this lesson, we must able to understand,

• Discuss the benefits of technological advancement to business
communication.
• Limitation of Business Communication
• Categorize the type of conference.
• Discuss the merit of Internet
• Explain the functions of Telnet, Website and E-mail.

CONTENTS

16.1. Introduction
16.2. Telephone
16.2.1. Advantages of the Telephone
16.2.2. Disadvantages of the Telephone
16.2.3. How to use the telephone effectively
16.2.4. Guidelines for answering the telephone
16.2.5. How to take down telephone messages
16.2.6. Specimen of Telephone Message Form
16.2.7. Specimen of Telephone Memo Form
16.2.8. Guidelines when making a call
16.3. Dictating Letters
16.3.1. Getting Ready to Dictate
16.4. Posters
16.4.1. How to make posters effective
16.5. Audio visual means of communication
16.5.1. How to make audio-visual communication effective

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16.6. Business Communication in a High tech environment
15.6.1. Factors Determining the use of Modern Means of
Communication
15.6.2. What does technology mean to business ?
15.6.3. Benefits of technological advancement to business
communication
15.6.4. Obstacles that hinder technological advancement
16.7. Telex
15.7.1. Advantages of the Telex Service
16.8. Facsimile (Fax)
16.9. Fax-on-Demand (FoD)
16.10. E-mail
15.10.1. Advantages of E-mail
16.11. Voice Mail
16.12. Internet
15.12.1. Advantages of Internet
16.13. Teleconferences
15.13.1. Advantages :
16.14. Voice Conference
16.15. Computer Conferences :
16.16. Telnet
16.17. Websites
15.17.1. Benefits of Websites to Business
16.18. Teleshopping
16.19. The Mobile (Cellular Phone)
15.19.1. Barriers caused by Electronic Communication
Summary
Check Your Progress
Review Questions

16.1. INTRODUCTION

In today’s fast moving, competitive business world, the telephone is one of the
most commonly used means of oral communication. It is used to place and take
orders, to exchange urgently needed information, to make appointments, to
establish valuable business contacts, and numerous other things. A prompt
telephone call to a customer can reveal your interest in him and create goodwill.
But the telephone service can sometimes prove a nuisance also. It is very
important to use it with discretion.

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16.2. TELEPHONE

16.2.1. Advantages of the Telephone

ƒ One of the most obvious advantages of the telephone is that it saves time.
If telephone service is efficient, it enables a person to have instantaneous
communication.
ƒ On the telephone, it is possible to get immediate feedback. The
communicator can make it sure that his communication has been well
understood and the communicatee can have his doubts clarified.
ƒ Although telephone communication is not as good as face-to-face
communication, yet it is possible to make it more effective through subtle
modulations of voice.
ƒ In certain cases, a telephone call can be more effective than a personal
visit. The telephone acts as a kind of ‘equalizer’ by minimising such
influences as stem from personal appearance or the appearance of the
offic.e The caller and the person called are put on some kind of equal
footing regardless of their relative position or rank.
ƒ These days, several kinds of telephone services including the trunk call
service, particular person call service, priority call service, intercom,
extension of telephone instrument service, etc., are available. These
services are extremely useful to the subscribers.

16.2.2. Disadvantages of the Telephone

ƒ One might get bogged down by what is called telephone tag. Instead of
getting through to the concerned person, one gets to his answering
machine or the secretary. And when he calls back, he too gets an
answering machine or a secretary. And this game continues. Sometimes
the whole experience can be extremely frustrating.
ƒ They cannot use facial expressions and gestures to establish rapport, to
achieve emphasis and to create mutual understanding.
ƒ Since telephone service, specially in India, is still far from satisfactory, a lot
of time is wasted when wrong numbers are contacted. Wrong numbers
involve wastage of money also, but above everything else, they put the
caller in a bad humour.
ƒ The receiver of the telephone message has only one chance to receive and
study the message. He cannot go over it again and again as he could do
with a letter.
ƒ On a telephone, it is not possible to ascertain the appropriateness of the
time of making a call. A visitor can always see the mood of the person he
comes to meet and make suitable adjustments in the message itself or the
delivery of the message. But the telephone caller does not enjoy this
advantage. His telephone call may catch a person when he is in a bad mood
or is busy and cannot properly attend.

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ƒ A telephone message does not provide a permanent record for legal
purposes, although to overcome this disadvantage, it is now becoming a
usual practice to tape important messages.

16.2.3. How to use the telephone effectively

• Speak politely, confidently, and in a positive and friendly tone. Make
frequent use of courteous phrases like ‘please’, ‘thank you’, ‘You’re
welcome’. Make your voice sound pleasant – Put a smile in your voice.
Whatever be the situation, courtesy is never out of place.
• Have a message pad, pen, telephone directory and an appointments book
near at hand.
• While talking, hold the mouthpiece once inch away from the lips and the
earpiece close to the ears.
• Avoid mumbling, running words together or talking through the nose or
teeth.
• Avoid cliches like ‘yep’, ‘yeah’, ‘ah!’ ‘I see’ etc.,
• Don’t shout into the telephone. Don’t speak too low. Try to be as natural as
possible. Try to speak as if the person you are calling is sitting next to you.
• In long distance calls, it is good to be loud, but shouting should be avoided
at all costs.
• In telephonic communication, time is the most vital factor. So do not waste
time in idle personal talk. But at the same time, do not sound abrupt also.
• Treat every call as an important call – because it is important to the person
calling you. Let the caller feel that he is being given your personal attention
and he is not being treated in just a routine manner.
• Handle inside calls with us much care as calls from outside Cordial
relations within the organization are as important as relations with the
outsiders.

16.2.4. Guidelines for answering the telephone

• Always be prepared to receive a call, to give and to receive information.
Have paper, and pen or pencil ready for recording notes of conversation and
details of requests. If you belong to the sales department, catalogue and
price list should be immediately available with you. If you are a
receptionist, you should be well familiar with the names and
responsibilities of the management personnel so that you can transfer
enquiries to them intelligently and accurately.
• When you pick up the receiver, you should first introduce the company, the
department, and even yourself, if desirable. You could say ‘Sehgal Papers,
Sales Department, Naveen Tyagi Speaking’ or ‘Avinash Chawla, from
Accounts Department, GKW’.

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• Say a pleasant ‘Good Morning’ or ‘Good Afternoon’. It does not take more
than a second but it adds a cordial note to the response.
• Make sure about the identity of the caller before giving any answer. In your
conversation, use the caller’s name frequently. Remember, you are talking
to the person at the other end and not to the telephone instrument.
• Listen carefully, without interrupting the caller.
• If a part of the message is not clear, politely ask the caller to repeat it. It
might save your company a lot of expenses later on.

16.2.5. How to take down telephone messages

• If an official telephone message form is available, it is better to use it.
• Take down the name and the telephone number of the caller.
• Note down the time of the call. Note down the time at which the caller can
be contacted.
• Record carefully any special instructions given by the caller.
• Last of all, do not forget to convey the message to the person for whom it is
meant. If you do not hope to meet him, place it where he can find it
promptly when he returns.

16.2.6. Specimen of Telephone Message Form

TELEPHONE MESSAGE

For ............................................................................................................................

Time ........................................................ Date ......................................................

Caller’s Name ..........................................................................................................

Telephone Number ..................................................................................................

Message ..................................................................................................................

..................................................................................................................................

..................................................................................................................................

Message taken by ....................................................................................................

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16.2.7. Specimen of Telephone Memo Form

To ............................................................................................................................

Date ........................................................ Time ......................................................

WHILE YOU WERE OUT

Mr. / Mrs. / Ms. ........................................................................................................

of ............................................................................................................................

Phone .....................................................................................................................

TELEPHONED PLEASE CALL

CALLED TO SEE YOU WILL CALL AGAIN
WANTS TO SEE YOU RETURNED YOUR CALL

Message ..................................................................................................................
..................................................................................................................................
..................................................................................................................................
..................................................................................................................................
..................................................................................................................................
.................................................................................................................................
..................................................................................................................................

..............................
Operator

16.2.8. Guidelines when making a call

• Prepare yourself mentally before you dial the number. Be clear about what
you are going to communicate. If necessary, jot down your points on a
piece of paper.
• Verify that you are dialing the correct number and dial it carefully.
• When somebody picks up the receiver at the other end, wait till he has
introduced himself. Make it sure that you have got the right person on the line.
• Make your identity clearly known to the person at the other end.
• Speak clarity and precisely.

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• If you hear from the other end words like ‘pardon’, ‘could you repeat that’, it
is an indication that you are not being clearly understood. Change the
pitch of your voice. Ask the other person if he is now able to hear you
clearly.
• Be sure that you have delivered all the details of the message and that your
message has been clearly and completely understood. Try to get feedback.
If you feel it desirable, you may ask the person at the other end to repeat
the significant part of the message.
• When the conversation is over, put the receiver back gently. It is quite
possible that the other person has still got it to his ear and if he hears a
loud bong, he will be annoyed or offended.

16.3. DICTATING LETTERS

The office dictation scene has considerably changed in recent years. Most
supervisors, managers and other officials prefer to compose their letters on a
word processor or dictate to a dictating machine. It gives them greater flexibility
and freedom to do their work. But in some offices, the old system of dictating to
one’s personal secretary might still be prevailing.

16.3.1. Getting Ready to Dictate

ƒ Fix a specific time for dictating. It is advisable to fix a specific time for
dictating each day and to complete all or almost all the day’s dictation at
that time.
ƒ Try to avoid interruptions. You need an uninterrupted span of time in
which to organize your thoughts and express them in good language. You
should try to minimise interruptions while you are dictating.
ƒ Make an outline of your reply. The outline may be scribbled in the
margin of the incoming letter or separately written on a pad paper.
ƒ Seek your secretary’s help. In some routine matters, you can easily seek
your secretary’s help. She should read the incoming mail and keep ready
all the information that you might be needing while dictating replies. She
can make some helpful notes on the mail. For example, if you are being
invited to attend a meeting or a conference, she can check whether you will
be free at the time of the conference and make a small note on the
invitation. For some of the routine letters, she can even prepare rough
drafts of the replies.

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16.4. POSTERS

Posters fall under visual communication. They are useful for the following
purposes.
1. In factories where most of the workers are illiterate, posters are used to
educate them in performing their job efficiently. With the help of posters,
they are taught how to operate machines and how to make for their safety.
2. On roads, posters are used to give road signs and traffic signals as well as
to suggest the bazards of irregular and rash driving.
3. Posters have become a very effective means of advertising. Small posters
with brief but effective story can often be seen inside banks, cinema halls,
etc., Large hoardings are displayed almost everywhere on the roadside.

16.4.1. How to make posters effective

• Since most of the posters whether displayed outdoors or indoors are seen
only for a fleeting moment, they must tell their story simply and quickly. In
a poster the burden of communication should be put mainly on the picture.
The copy should be reduced to a headline or a head and subhead at the
most. Some of the most effective posters have but one or two words of
copy.
• In poster advertising, the sales message should be repeated many times at
different locations so that the disadvantage of having just a momentary
glance at it is set off.
• The posters should be displayed in such a way that their lay-out in artistic
and appealing, and visibility adequate.
• Proper attention should be paid to the colour scheme of the posters.
Different colours have different effect on the mind. Blue and green are
soothing. Red and Orange are invigorating. Gray and Brown Project a
natural rhythm. The colour scheme should be chosen in accordance with
the message that is to be communicated.
We have reproduced above a poster that communicates its message quite
effectively.

16.5. AUDIO VISUAL MEANS OF COMMUNICATION

Audio-visual communication combines the auditory and the visual, that is, while
people are observing something on the television or cinema screen, they are also
hearing narrative or descriptive remarks so that what they see is adequately
supplemented and there is a more abiding impression on their mind. Although
of recent origin, the importance of this technique has been quickly realized and
it has gained popularity very fast.

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This technique is used both by the government and large organizations. The
government uses it to keep the people well informed of its programmes and
policies. It has been found specially useful for the propagation of the family
welfare programme. In villages, it is used to educate the farmers on the
techniques of improving agricultural production. Indeed, in a country like India
where a vast majority of population still consists of illiterate peasants, the
importance of suing the audio-visual technique for the education of farmers
cannot just be over-emphasized.

16.5.1. How to make audio-visual communication effective

1. Pictures, slides and films should be,

• Imaginatively produced; cartoon strips are usually found to be very
interesting.
• If the pictures are colourful, blending and harmonizing of colours should be
done with discretion;
• the lay-out should be attractive.

In fact, all the remarks that have been given with reference to posters are
applicable to films and slides also.
2. Description or narration should be brief but adequate. Description should
supplement the visual effect and not distract the vision. It should also not
be inadequate so as to leave the visual effect only partially produced.
3. The language used in description or narration should be precise, lucid and
easily understandable.
4. Films and slides should be shown to the people at a time which is suitable
for them.
5. While producing such films and slides, the educational and economic level
and the social and cultural background of the people for whom they are
meant should always be kept in view.

16.6. BUSINESS COMMUNICATION IN A HIGH TECH ENVIRONMENT

Modern business depends on two vital areas, management and communication.

Ineffective management and communication will lead to fall in morale, low
productivity, poor turnover and ultimately to financial disaster. Effective
communication takes place only if a message or information gets transmitted
from one individual (or group) to another and obtains the correct and anticipated
response from the receiver. Nowadays, communication is dpendent on high
technology, generally called Information Technology (IT). Information
Technology has grown immensely having great potential for speed and efficiency.

Instantaneous communication of a large volume of signals around the world has

become a reality. Soon we will be seeing “cashless banks and paperless offices”.

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Computer technology and telecommunication links via satellites are bringing
about revolutionary changes in the field of communication. The barriers of
space and time have totally collapsed. Not very long ago it took days to
communicate with someone through a letter but the new STD and ISD facilities
have made communication an instantaneous process. The world appears to
have contracted or been squeezed into a small room in which, given certain
facilities, it is possible to communicate with anyone in any part of the world.

16.6.1. Factors Determining the use of Modern Means of Communication

1. The end-user should have a knowledge of what technology can do to

business and employ them well.
2. A clear perception of the advantages and limitations of these modern media
of communication.
3. The hidden barriers inherent to these modern means of communication like
technophobia, psychological and sociological resistance.

The analogue telephone and the telegraph were the only means of oral
communication for quite sometime. The modern automated office has opened
up the possibility of several new and sophisticated forms of communication.
Microwave relay stations, mobile phones, fibre optics and space satellites have
added new dimensions to business communication. An engineer working in
Alaska can communicate with his boss in Japan easily and effortlessly. Today,
on the spot advice on shooting a problem can be provided by an expert without
being on the spot !

16.6.2. What does technology mean to business ?

Modern offices will have less man-power and more machine-power. The tables
containing files, in-box trays and out-box trays will be replaced by ‘digital desks’
with sophisticated electronic devices. Lengthy paper-based time-consuming
communication will be eliminated. Internet, e-mail and teleconferences will
become the order of the day. Errors in letters and documents can be corrected
by taking advantage of special editing programmes like the spell-check. The
dual advantage of the use of technology for business lies in the increase in speed
and reduction in costs. Storage becomes easy demanding less space.

16.6.3. Benefits of technological advancement to business communication

1. Speed of transmission of messages will increase.
2. Accuracy of the transmitted message will be at a higher level than the ones
in the traditional modes of communication.
3. Man-power resource will be saved thus saving resources of energy and
time.
4. Cost, particularly recurring costs like wages and wage increases will
undergo substantial reduction.

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5. Electronic communication provides for access to more vital and useful
information.
6. Market research gets enhanced by greater analysis of the enormous corpus
data.
7. Supply chain gets shortened by establishing a direct link between the
producer and customer.
8. Electronic communication ensures global presence of the producer and his
wares.

16.6.4. Obstacles that hinder technological advancement

1. Reluctance of managers to adapt to the new advancement.
2. Opposition on grounds of retrenchment from employees and their unions.
3. Reluctance to make heavy investment in an area that keeps changing at a
rapid pace making the earlier investment a waste.
4. Poor planning and improper rate of implementation of high tech modes.

16.7. TELEX

The telex is the name given to a tele printer whereby written messages can be
communicated from one place to another with the help of a machine. The tele
printer consists of two parts, (i) keyboard transmitter and (ii) receiver, for
transmitting the coded signals and printing the message. When a message is to
be sent, the typist presses a button, waits for the dial tone, dials the number
desired and if the number is contacted, types the message. The message as
typed in the originating office is typed on the small strip of paper at the
receiver’s end.

16.7.1. Advantages of the Telex Service

1. The telex service enables the transmission of written messages from one
subscriber to another by direct dialing.
2. The telex service combines in it the advantage of both telephoning and
writing a letter. It is much quicker than a letter and cheaper than the
trunk call service.
3. If the person for whom the message is meant is not present at the time of
the transmission of the message, he will get the message neatly typed on
the teleprinter when he returns. He can then reply to it later.
4. The telex service can be used for booking inland as well as overseas
telegrams by getting in touch with the “Central Telegraph Office”.
5. The telex service is extremely useful for large business houses, news
agencies, stock exchange dealers, etc., They can transmit and receive
messages at any time of the day and night.

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16.8. FACSIMILE (FAX)

Many organizations are now going in for facsimile (fax) transmission facilities.
The fax machine is very useful for transmitting visual material such as
diagrams, illustrations, photographs or copies of artwork visuals. All that we
need for it is the fax machine with a connected telephone. As the document to
be transmitted is fed through the machine, it is electronically scanned and
signals are transmitted to the receiving end, where an identical copy of the
document is reproduced on a blank sheet of paper by the receiving machine.

• Charts, graphs, other visuals cannot be sent through telex. But they can
be easily through fax. Faxing a document is like instantaneous
transmission of a photocopy of the document.
• If a document is generated on a computer, it can be sent directly using a
fax modem, bypassing the need to print the document first.
The fax machine has made it possible to send copies of important documents
including certificates, degrees, testimonials, agreements and contracts from one
place to another at the speed of a telephone call. That is why it is being used
almost universally now.

16.9. FAX-ON-DEMAND (FOD)

Fax-on-Demand or FoD is an automated FAX Retrieval System by which an

organization can receive requests for information and respond to those requests
automatically, 24 hours per day, 7 days per week, without ever touching the keyboard.

Organizations desiring of suing this mode of communication should have access

to satellite links. An organization can create a variety of documents like its
corporate profile, information about the products, the latest catalogue, etc.,
These documents lie stored in the computer with specific code numbers
assigned to them. A customer can automatically access any of these documents
via a satellite link. On using the code number of the document, he will get it
immediately faxed to him. If he is satisfied with the product quality and the
price communicated to him, kind if the organization has also kept an order form
ready in its computer, he can fax the order. And if he encloses his credit card
information along with the order, the organization can receive payment by Fax.
FOD is a quick mode of communication needing a high degree of sophistication
and ethics.

16.10. E-MAIL

E-mail (popular name for electronic mail) involves sending messages via
telecommunication links. If two computer terminals, however distant from each
other, are connected on network, it is possible to send messages from one to the
other. The message is typed on a computer screen at one end, and is conveyed
to the other end through electric impulses.

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If the computers have fax, telephone or telex facilities attached to them, E-mail can be
used even to transmit telephonic messages or to fax important documents.

One doesn’t have to be a computer expert to be able to use E-mail nor does one
need a separate telephone line for it. Modems are not very expensive either. It
has also been discovered that sending messages by E-mail is quite cost-efficient.

16.10.1. Advantages of E-mail

• It is quickest means of transmitting messages.
• Most modern E-mail systems allow messages to be delivered through these
telecom channels – and at significantly cheaper rates for long distance
communication.
• E – mail does not thrust itself upon the receiver.
• A phone call when you are in the midst of a serious discussion can be
highly disruptive. But an E-mail message does not disturb you.
• E-mail saves you from telephone tags. Since E-mail is asynchronous, it
does not depend upon the availability of the recipient. As long as people
keep checking their mail boxes regularly, the communication cycle
continues to work efficiently.
• If a communication is to be sent to someone on the other side of the world,
time zone differences can make personal communication on the telephone
extremely inconvenient. But you can send an E-mail message whenever
you like and the person at the other end can receive it the next morning
when he comes to work.
• E-mail messages can be sent to a large number of people simultaneously or
to only a selected few, depending upon the requirement.
• If both the persons are simultaneously sitting at the terminals,
clarifications can be sought and offered and additional information
conveyed immediately.
• E-mail messages are supposed to be highly confidential and secure. The
chances of tampering with the messages are much fewer than in the case of
messages conveyed through conventional modes. The use of codes can
make a message so secure that nobody except the person concerned can
decypher it.
• E-mail messages can be easily stored for future reference.

16.11. VOICE MAIL

Voice mail, strictly speaking, is a form of E-mail only. Here, a message, instead
of being communicated in a written form, is sent in the voice of the caller. Like
E-mail, it is very easy to use and is a convenient way of leaving short messages
for someone who is not immediately available.

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16.12. INTERNET

Internet is a large network of computers spanning the globe cutting across

geographical and other boundaries and also connecting any number of
computers. The internet helps in establishing communication with computer
users in other locations and in searching for information that may be in the file
of some computer, somewhere. A manufacturer can access information on the
cost of some raw material somewhere in a fare way place. Through the Internet,
you can find out whether a particular book is in print or not. A business house
can search for all kinds of information on the worldwide web, one can get
updated information on weather, stock market and bullion price. Internet
enables all other tele-communication processes through satellites. No can send
or receive an e-mail if he has no connectivity to an Internet Service Provider
(ISP).

There are several hundreds of pages of information on any topic under the Sun
in the internet. Copying information available in another computer is called
downloading. One can also down load information using a File Transfer Protocol.
All software called Freeware can be accessed free of cost. Some software can be
used against a small fee and they are called shareware. Using Internet, one can
take part in interactive chat session with people at other places.

With internet, one can send and receive e-mail, exchange messages in topic
specific news groups, upload and download files and search for any information
on the world wide web. To use the Internet, the first step would be to have an
account with an Internet Service Provider (ISP). With the Internet connection
established one can draw any feature that he wants to, using Internet explorer.

16.12.1. Advantages of Internet

1. Internet ensures speedy communication. It enhances the quality of

communication. Readily available formats can be chosen to send e-mail.
2. Internet enables business chat at one to one level, Quick consultations with
experts, computer conferences and Video Conferences.
3. E-mail communication can be authenticated with digital signatures and
global security by encryption.
4. Internet provides the market place for the customer and seller to meet
eventhough separated by distance.
5. Internet enhances the quality of negotiating business deals.
6. Internet provides after sales, service and promotes customer friendly
approaches.
7. Internet provides information on whether the market is up beat or sluggish
and about the competitor.

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8. Internet enables Business to Business and Business to Customer
communication.
9. Internet will transform business to E-Commerce, which is not very far off.
10. Internet enhances the quality of advertising and publishing.
11. By its transparency, Internet can become a powerful tool in promoting
ethics in business.

16.13. TELECONFERENCES

16.13.1. Advantages :

Teleconferences are one to one talk or many engaged in a conference eventhough

they are far away places. Businessmen today are able to communicate faster and
better, making use of technological advancement. Teleconference is one such
advancement proving to be a highly useful means of communication.

Individuals or groups in scattered locations can make use of the teleconferencing

facility. The telephone, the computer and a television / Net camera combined
can create a variety of teleconferencing networks. They are voice, video and
computer references.

16.14. VOICE CONFERENCE

Voice conference also called telnet enables five or six people at different locations
get on to a network and hold a conference using the conventional analogue
telephone. Voice conferencing, most used in share markets save time and
energy. Voice conferencing requires the reestablishment of the network every
time you want to resume a conference. Telephone companies can also provide
exclusive dedicated lines where 24 hour conferencing facility will be available.
But a dedicated line will be very expensive. Telephone conferencing networks
have the facility of storing and forwarding the message if the person is absent.

16.15. COMPUTER CONFERENCES

Computer conferencing is enabled by the Internet technology that enables

e-mail. Computer conferencing enables easy and quick transmission of
messages, pictures and photographs. It has the facility of store and forward.

A minimum satellite network consists of one uplink and one downlink. You can
also have one uplink with many downlinks as also many uplinks and many
downlinks.

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Teleconferences enable businesses to send and receive quality information with
great speed. These conferences in the long run save money and time.

1. Teleconferencing is cost effective. It does not require all people to assemble

at one place which will be expensive.
2. Teleconference is time-saving. Persons to be contacted or consulted can be
reached immediately.
3. Teleconferences are speedy ways of resolving problems then and there.
4. Teleconferences are highly productive because they ensure a free and
required exchange of views. The frequency of the conferences leads to
correct decisions, collective action and collective responsibility.
5. The hassle of travel for consultants and executives gets reduced to a great
extent.

The uplinks and downlinks are designed to video conferencing through

computers. Today video conferencing is very advanced. A computer with a
modern connected to a telephone, suitable mikes and speakers and a web
camera enable video conferencing. Different people scattered all over can
communicate directly. Video conferencing enables conferences see each other
while discussing. Direct responses and reactions are easily observed and heard.
The visual transmission can be one-way or two-way option. These days with
satellites, two way transmission is more advantageous. One cap opt for a slow
scan transmission or full motion transmission. In a slow scan transmission,
signals are transmitted as in a slide projector. In full motion, signals are
transmitted as in a movie. Computer conferencing enables a fast transmission
of graphics. In all these conferences, a “Store and forward” option is available.
The receiver can browse the message any time later if he is not available at the
time of the conference call. Computer conferences also called chats have one
disadvantage. The speed of the “Chat” or conference will be limited to be speed
of the slowest typist among the conferees. But even this can be overcome by
procedures of enhancement.

16.16. TELNET

Telnet is a means of connecting to various services on the Internet’, hosts and

clients. Host computers are where web pages reside where the users’ e-mail is
stored until it is received where chats are played. Telnet provides services like
chats, Internet relay chats multi user dungeons (MUD) (Providing online games).
But even telephones are connected by satellites today. Voice, Voice, computer
conferences are very much in use today after the advent of satellites. The
sources of the conference are limited to the satellite by uplinking and
downlinking. There can be one uplink and one downlink or one uplink with
several downlinks or even several uplinks and several downlinks.

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16.17. WEBSITES

Website is a location on the Internet. It is in reality a post office protocol

location with a clear identity. There are thousands of websites in the cyber
space. They are records put by individuals or organizations. A government or a
government department, a business organization, a voluntary organization, a
service organization or even an individual can put up website. All websites have
a special addressing scheme called URL. It is an acronym for universal resource
locator which tells a user where to locate a specific web HTML file. When an
individual puts up a personal website talking about himself, it is aptly called
vanity page. Any one can access a web page, provided he knows the URL or he
can surf the web pages. A business firm by putting up a website can showcase
its size, nature of business, the quality of its products, the competitive pricing
and even the ethical values by which it swears. A website gives an edge to the
business firm over the others that have not entered the electronic business
market. With millions of people surfing the Internet, a product captures the
mind of the potential buyer. The following are the benefits of websites to
business.

16.17.1. Benefits of Websites to Business

1. The product of a company and the company’s stature make an upward

movement at a global level.
2. Advertising becomes easy.
3. The information reaches the potential customer who is searching for the
product.
4. Orders can be secured immediately with effortless ease.
5. Teleshopping becomes convenient and easy.
6. Websites provide a certain desirable level of transparency to business.
7. Websites make a market research and market survey easy.
8. Websites have a greater and farther reach than sales personnel. They can
promote products with pictures, and user views.

One can produce a HTML page and create a Website for any number of people
with computer to see it. This process of creating a web page or even a web site
is called hosting. Hosting a page is simple and less expensive than hosting a
website. Based on one’s business needs and affordability a page on a site can be
created where you can advertise or make offers, discounts, give guarantees, etc.,
Yahoo.Com, Rediff.Com are websites that offer free space to host web pages.
Business houses should ensure the correctness of the information on a web
page. Incorrect websites or pages will cause.
(a) Considerable loss of potential sale.
(b) Brand Erosion due to Customer dissatisfaction.

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But websites can prove effective in online sales and services. Business
communication of products, sales, service, etc., should be appropriately
designed to suit a web page.

16.18. TELESHOPPING

One can buy what he desires through Teleshopping without going to the market.
Modern communication enabled by computers is revolutionizing sales and
service. Retailers are equipped with point of sale terminals and Back Office
Computer Systems. People who are elderly or disabled can manage without help
in their buying activities. In situations where employment makes more demands
on time, teleshopping provides the greatest advantage. Voice based telephone
interactions between the customer and supplier are also available today.
Businessmen who want to promote teleshopping should carefully follow certain
criteria.

1. The catalogue should always be an updated and one on price, quality and
availability.
2. It should have a suitable coherent multi-media format suitable for people
with handicaps.
3. The problem of payment and delivery of goods should be addressed
efficiently to avoid risks.

16.19. THE MOBILE (CELLULAR PHONE)

The Mobile phone appears to be the most outstanding invention in the area of
communication. There is a ‘Mobile Revolution’ taking place. The instrument
has become so common place that you come across signs such as ‘Don’t use
mobiles here’ or ‘Don’t drive talking on the mobile’ etc., A businessman by
carrying his mobile in his pocket is carrying his entire business and his office.
Cellular phones linked to respective micro-wave stations and satellites can
establish contacts globally. The whole concept and engineering is based on
digital systems Cell phones provide many value added services like transfer of
call, caller identity, camera to complement and the most inexpensive short
message servicing (SMS). The whole gamut of cell phone connection is the span
provided by Global System for Mobile Communication (GSM) and subscriber
identity module (SIM) of the individual and personal identity number (PIN). The
surest, most efficient and easily operable modern method of communication is
provided by the Mobile.

16.19.1. Barriers caused by Electronic Communication

The interaction between man and machines that has been brought about
technological advancement has become a special study called ergonomics.

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1. While office automation and electronic communication are opted for, a
careful study of the barriers caused by the interaction of man and machine
should be assessed realistically.
2. The fear of new technology is called ‘technophobia’. It has to be addressed
by familiarization sessions.
3. There is a danger of accepting a computer output as correct. This is like
assuming that a dictionary is the ultimate judge on language. Both
positions are conceptually wrong. A computer can commit errors. The
output is dependent on the input.
4. Computers can ensure the speed of communication. But the quality and
effectiveness are still the contribution of individuals. So all communication
requires planning and conform to the 7Cs to make them effective.

SUMMARY
Modern business depends more on new technology. Sophisticated machines are
used for quick delivery and to save man power. Some of the devices used are
Telephone, Intercom, Mobile, Dicta Phone, Fax and EPBX. Video conferencing
helps an individual or group to meet, face to face to interact. There are different
types of conferencing like person to person, group, broadcast and electronic
teleconferencing. Personal address system is used for making important
announcement. Television is a powerful media. The media can be selected
based on the type of audience, reliability, time and cost. Internet helps to have
world wide collection of networking by using a common software standard.
Several information’s are downloaded, can chat with different people, group
discussions held and enhance the business deal. Telnet correct various services
of internet. Website is a location in the internet. E-mail is used for sending
messages through telecommunication links.

CHECK YOUR PROGRESS

1. Write a note on STD, ISD and EPBX.

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2. Give three merits of E-mail.

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REVIEW QUESTIONS
1. As a EDP Manager, suggest a plan for implementation of a state of the art
communication system for your company.
2. Discuss how internet has enhanced the quality and speed of business
communication.

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