BUSINESS COMMUNICATION

Course Instructor
Dr.
BONGAJUM S.N
General Objectives
- Provide students with detailed knowledge on business communication
- Acquire practical and oral skills
- Acquire skills in report writing
- Acquire/use communication skills in different business situations.
Syllabi
UNIT I: Effective communication in Business
Characteristics-process -importance of communication in business -
different kinds of communication -features of communication.
UNIT II: Process of preparing effective business message
Planning –Steps- Organisation Plan
UNIT III. Effective communication principle
-Styles: completeness, clarity, consciousness, correctness, concreteness
-Gesture: consideration, Manners: Courtesy, presentation and follow-up
UNIT IV. Business letters
-Direct request, inquiries, claims and request for adjustment
-Request regarding routine business or public causes, invitation, orders,
reservation, favourable replies, unsolicited favourable messages, request
sales
- Evaluating your achievement, market research, making preliminary career
decisions resume, job application letter.

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UNIT I: EFFECTIVE COMMUNICATION IN BUSINESS
Communication is relevant not only to human beings, but also to other
living beings. It is the most important link that connects all living organisms.
Communication takes place not only among people, but also between people
and animals and among animals. The dog owner, the horse rider, the
ringmaster in the circus and the fortune-teller communicate with their
animals and birds.

It is the ability of mankind to communicate across barriers and beyond

boundaries that has ushered the progress of mankind. It is the ability of
fostering speedy and effective communication around the world that has
shrunk the world and made ‘globalization’ a reality. Communication has
had a vital role to play in ensuring that people belonging to a particular
country or a cultural or linguistic group interact with and relate to people
belonging to other countries or cultural and linguistic groups.

Communication adds meaning to human life. It helps build relationships and

fosters love and understanding. It enriches our knowledge of the universe
and makes living worthwhile. Imagine life without various tools of
communication—newspapers, books, letters, television and mobile telephone
—and the expanse and significance of communication becomes crystal clear.
Understanding the power of communication is imperative for the success of
any human endeavour.

I.1 Meaning of Communication

The word communication, which as discussed has its origin in the Latin word
‘communis’, evokes many images in one’s mind. It could be a process, a
network, a technique or a form of entertainment. It could be personal or
business- related communication, and as we have seen, it has developed its
modes, channels, instruments and gadgets over the years.

The word ‘communication’ in the singular form is different from the plural,
‘communications’. When we attempt to define communication, we are

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looking at a dynamic and evolving subject. It is no surprise, therefore, that
communication, over the years, has seen numerous dimensions.

The following definitions bring out different facets of communication and

together facilitate an understanding of the expanse of the concept.

1. Communication is a process of sending, receiving and interpreting

messages. (Kimberley Hicks). This definition in very simple words says
that communication is a process whereby people exchange messages.
2. Communication is the broad field of human interchange of facts and
opinions (Redfield).This definition emphasizes the fact that
communication has to do with
Inter-change or exchange of facts and opinions or social or commercial
intercourse, as we have already seen.

3. Communication encompasses all forms of expression which serves the

purpose of mutual understanding (Revesz). This definition highlights the
all-encompassing nature of communication and the fact that it has a
purpose to achieve.

4. Communication is the transmission of ideas, emotions and skills through

the use of symbols and graphs. It is the act or process of transformation
that is usually called communication (Berelso and Steiner). In this
definition, the emphasis is on the wide range of messages conveyed, the
variety of channels used and the process of transformation.
5. Communication is the process by which we understand others and in turn
endeavour to be understood by them. It is dynamic, constantly changing
and shifting in response to the total situation (Anderson). This statement
clearly brings out the fact that communication is essentially a dynamic
process.
6. Communication is the process that links discontinuous parts of the world to
one another (Ruesch). Here, the focus is on the fact that communication
has global reach.

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7. Communication is the means by which power is exerted (Schacter).This
brings out the dominant role played by communication in empowering
people in their individual and organizational endeavours.
8. Communication maintains and animates life, it creates a common pool of
ideas, strengthens the feelings of togetherness through exchange of
messages and translates thought into action (UNESCO, Many Voices
One World). This definition underlines what communication strives to
achieve, especially through information sharing, relationship building and
action orientation.

Business Communication is the process of passing information and

understanding from one person to another. It is the process of imparting
ideas and making oneself understood by others. Communication may be
defined as interchange of thought or information to bring about mutual
understanding and confidence.

Communication is an exchanging information process between two or more

people. Several techniques are in use to set up exchanges depending on the
context. The purpose of business communication, as the name suggests, is to
facilitate exchanges between employees and managers of a company on one
hand and facilitate exchange between the company and external world on
the other hand.

Each of these definitions thus rightly highlights the important facets or key
thoughts concerning communication. It is seen as an interchange, an
expression, a transmission, a dynamic process, a connecting link, a means to
power and a force that maintains and animates life.
Communication is both an art and a science. It may be an inborn quality or a
talent as it is when we say ‘the gift of the gab’. On the other hand, it is a
discipline amenable to systematic study and mastery. It has an element of
creativity, as well as an element of precision. It calls for mastering of skills as
well as techniques.

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I.2 Purpose of Communication

Since business organizations are multi-disciplinary in nature, communication

encompasses wide areas and is inter-disciplinary in approach. Large
organizations are described as networks of interdependent relationships. The
objectives, activities and inter-relationships of a business organization
necessitate communication to sub-serve its many diverse objectives. Let us
discuss the objectives of business communication.

-Inform - Relate and Connect-Educate –Promote -Train - Entertain-

Motivate -Facilitate Decision Making -Integrate -Help Networking

Inform
The first and foremost objective of any communication is to inform. In today’s
world, information is power. Communication brings power through
information. The dissemination of information covers a wide range of areas,
both internal and external. People within the organization have to be kept
informed about the organizational goals, objectives, procedures, processes,
systems, plans, priorities and strategies. Equally important is the objective of
ensuring effective external communication—with customers, prospects,
competitors, suppliers and the public, about products, services, plans,
happenings, events and achievements. The information needs within the
organization take on different nomenclatures—market- related information,
product-related information, client-related information, employee
information, executive information and management information.

Educate
Another objective of communication in an organization is to educate, i.e., to
disseminate knowledge and develop skills and attitudes among the people
working in the organization. There is also a need to familiarize them with the
systems, procedures and processes. This process of education may extend to
customers as well. This may be done through product literature, publicity,
presentations and demonstrations.

Train
Communication is an integral component of any training program. Business
organizations need to train people to achieve proficiency in specific skills.
They have to provide working knowledge and attitudinal inputs through

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training programs to employees at various hierarchical levels. Training
sessions involve teaching, instruction, demonstration, practice and
discussion. The process of communication is integral to each of these.

Motivate
People in any business organization have to be motivated to pursue goals
and achieve higher levels of performance. High levels of morale and
motivation are a must to ensure high levels of productivity and efficiency on
a sustainable basis.
Communication provides the means to keep the motivation levels high. Talks,
lectures, films, meetings, workshops and non-verbal messages are among
the means used to motivate people.
Integrate
Large business organizations have different business units, departments and
territorial divisions. Each of them pursues different goals, sub-goals and
target sections.

Communication provides the means for an integrated approach in pursuing

organizational goals. Effective communication is a must to ensure that people
working in different functional and geographical areas are integrated into
well-knit teams that eschew working at cross purposes and continue to
achieve organizational goals as envisaged. Communication binds together
people working for a common objective and helps team building.
Communication is of particular relevance in conflict resolution.

Relate and connect

Good business relationships are a must for the continued success of any
business organization. It is communication that provides the means for
building and nurturing mutually beneficial relationships. These relationships
are both internal and external.

They may be among and/or between employees, supervisory staff, top

management, customers, suppliers, other players, press and other media. As
part of the larger community, progressive organizations make it a point to
relate themselves with the community at large. It demonstrates that they are
a sharing and caring organization. All this is achieved through well-organized
communication strategies.

Promote

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Promotional efforts are a must for any organization to fully achieve its
objectives. One of the Ps of marketing (the others being Product, Price and
Placement), promotion relates to various activities such as advertising,
publicity, public relations and communication, which aim at customer
information, customer education, customer communication and customer
retention. In the marketing concept, the customer is said to move from stage
to stage till the transaction is completed. They move progressively from the
state of awareness of the need for a product to the knowledge of the product
and thereafter to a state of product preference. The needs of the customers
develop into effective demand for products, resulting in the purchase of the
product or availing of the service. Promotional aspects of the service are
particularly relevant in a service industry like banking or insurance, where
the product, i.e., the service, cannot be readily ‘seen’. Financial service
providers essentially sell benefits. For this, they have to organize effective
promotional measures, which seek to inform, educate, persuade and
actualize the clients/markets. Communication constitutes the basic plank on
which promotional strategies are built.

Entertain

Every business is not necessarily a serious business. Even serious businesses

are not ‘serious’ all the time. Whatever may be the nature of business, there
is a time for entertainment. Communication facilitates entertainment. It
facilitates social bonding and brings in lighter moments that help in releasing
tension, fostering camaraderie and getting rid of negative feelings. Humour,
when used effectively, can play a vital role in fostering positive behaviour in
business organizations. In the entertainment industry, communication has a
much bigger role to play. Communication can serve to achieve the objective
of purposeful entertainment.

Facilitates decision making

Decision making constitutes an important function for any business

organization. Well thought out decisions, quickly taken, lead to better results.
Such decision making is spread across all the functional areas—personnel,
marketing, accounts, production and maintenance. Day in and day out,
people in organizations keep taking decisions at various hierarchical levels.
People at higher levels in the organization command respect depending upon
their decision-making abilities.

Any such decision making, however, depends on the availability of adequate

and timely inputs. It calls for facts, figures, analysis, deliberation,

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clarification, confirmation and evaluation. Communication—both oral and
written—facilitates decision making in any business organization.

Helps networking

Today’s business world is highly networked. Networking means a closely

connected group of people. People need to connect with each other, not only
within their organizations, but among themselves as well. Progressive
organizations are inter-connected organizations and lay much stress on
networking. They invest in networking systems where a number of computers
and other devices are connected together so that the equipment and
information can be shared.

Networking facilitates easy flow of ideas, thoughts, policies and decisions. At

their individual level too, people need to network themselves so as to
exchange ideas and information. Networking at the individual level means
connecting with and being in touch with other people who may be useful,
both personally and professionally. Any such networking takes place through
the medium of communication.

I.3 Importance of communication in Business

The importance of business communication in today’s inter-linked global

economy is widely appreciated. Effective communication is at the heart of
any business. Businesses deal with people and communication serves as a
vital link in connecting people. Business organizations that underestimate the
crucial role of communication do so at their peril. It is also well recognized
that every communication is not necessarily effective. In real-life business
situations, there are everyday instances of communication failure. The
messages delivered are not what are intended. The messages understood
are not what are conveyed. Messages often get distorted, diluted or
misunderstood. Every organization, therefore, not only needs to recognize
the importance of communication, but also should put in place adequate
efforts and proper systems to make communication, both internal and
external, effective and result oriented. Successful business communication is
not automatic or mere happenstance. It needs time, effort and constant
attention across all organizations to ensure that communication becomes
effective.

Communication is an essential function of enterprise. Whether written or oral,

it is the conduit through which an enterprise speaks to its customers.
(Harvard Business Essentials).

Some of the importance of business communication in businesses include:

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  Increase the morale of the employees

Better communication increases the participation of the employees in

the management. It helps to build better relations between the employees
and management. It also helps management to get new ideas and ground
problems of the organisations.

 Improves proper management

Effective communication process helps to perform in better managerial

functions such as planning, directing, controlling and organizing that
cannot be conducted without proper communication channel.

 Better staffing

Communication helps to understand the leadership qualities of the

employees. It also helps the management in the proper functioning of
staffing functions like selection, socialization, transfer, and promotion
thereby helps in placing the right man at the right job and place.

 Improve Public Relations

Effective communication with the external groups such as shareholders,

customers, suppliers, trade unions, press and government is very important
for a modern business. It can build a good public image of the business.

 Mutual trust

Better mutual trust between employees and management is very crucial for
effective functioning of the organization. When there is better and effective
communication it reduces misunderstanding and develop better trust.

 Improves managerial performance

Communication system plays an effective role in flexible operations of the

business and it is all possible only when there is an effective and smooth
communication system. It helps to remove grievances and improves mutual
understanding of the employees.

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1.4 Process of Communication

Communication is a process that involves certain distinct steps. In its simpler

form, it relates to stimulus and response. The stimulus arises from the
communicator and the receiver responds. Communication is not complete till
the message conveyed by the sender is properly understood by the receiver.
Any communication process should necessarily have three elements—sender,
receiver and the message.

Every communication has a distinct purpose, which determines the message.

The stimulus emanates from the sender, and the receiver comes up with the
response. The objective in any business communication, as we have seen
earlier, is to elicit the desired response. To be understood, however, is a
necessary but not a sufficient condition in the organizational context. When
the understanding results in the intended action, the objective of the
communication is achieved.

Communication is a dynamic process involving a series of actions and

reactions with a view to achieving a goal. How does it work? Think that you
are in conversation with your friend. You are a sender or communicator,
formulate (encode) an idea or message as best as you can, and pass on the
message to your friend, who to the best of his ability receives or acts on the
message (decode). He responds by formulating his own message and
communicates to you (feedback). If you think your message is understood
or well received by your friend, then you go ahead with the next idea that
you have in mind and the conversation goes on and on. Communication is,
therefore, a two way process, that is, the ability to receive is as important
as the ability to send. For successful communication, feedback is crucial
because it tells how your message is being interpreted. It can make or break
the communication process.

The six elements of communication process are sender, message,

encoding, channel, receiver, and decoding.

In the above diagram of elements of the communication process, the

communicator is the encoder, the message is symbol (verbal or non-verbal),
the channel is one of the transmission medium, the receiver is the decoder,
feedback is the response to the message, and noise is any interruption that
breaks down the communication.

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These, in fact, are the essential elements or ingredients, which facilitate the
communication process. Each element plays an important role in making the
communication effective:

Communicator (sender or encoder) is the one who initiates the

communication process. He may be an editor, a reporter, a filmmaker, a
teacher, a writer, a speaker, a leader or anybody who takes the initiative to
start a dialogue. Before one speaks or writes, the message is conceptualized
first and then encoded. An effective communication depends on the
communication skill, knowledge level, and attitude of the communicator
and how he desires to affect his receiver. An ability to think, to organize
thoughts quickly and express himself effectively are some of the attributes of
a good communicator. Somebody who uses appropriate words, sentences,
tone, etc. may be called a good communicator. He does not fumble, does
not look for words and all that he says is accompanied by appropriate
gestures and delivered at an acceptable pace. Another element, which is
mentioned here, is knowledge level. We must be able to find out the
knowledge level of the persons on a particular topic before we start the
dialogue. Also, a person must never look down upon the people with whom
he communicates. He must never think that the receivers are inferior to him.
The attitudes of a person should be mature and the minimum respect due to
the other person must be extended to him.

Encoding is the formulation of messages in the communicator’s mind, that

is, the communicator not only translates his purpose (ideas, thoughts or
information) into a message but also decides on the medium to communicate
his planned message. He must choose the media (speaking, writing,
signaling or gesturing) that the receiver can comprehend well. For
instance, an illiterate receiver will fail to understand a written message, but
can understand it well if told orally. A message is what a communicator
actually produces for transmission using spoken or written words,
photographs, paintings, films, posters, etc. a great deal of skill and effort is
required to formulate a message, the meaning of which should be
understandable to the receiver. Actually the purpose of communication is to
influence the receiver and get favorable responses so that appropriate
decisions can be taken. The success of communication, therefore, depends
on what we say and how we say it. A message can enhance or distort
effective communication. For instance, in an interview your intention is to
impress interviewer, but if you give answers whose meaning is not clear, the
interviewer may perceive that you are incompetent for the job.

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A channel is the vehicle through which a message is carried from the
communicator to the receiver. The channels of communication are many-
written, spoken, verbal, non-verbal, mass media like TV, radio,
newspapers, books, etc. choosing the appropriate channel, one most
suitable for the message as well as the receiver, is a complicated task.
Success and failure of communication depends on the selection of the right
channel. For example, if you have prepared a campaign on ‘National
Integration’ what media would you choose to reach the intended audience?
And even after selecting the media you have to decide if it is feasible cost
wise, taking into account the number of people and the kind of people who
will be exposed to your message, and certain other factors. Actually your
intention or desire would be to reach out to the maximum number of people
but for efficient communication your attempt should be to minimize time and
cost in the total information exchange effort.

The receiver, at the other end of the communication, is the recipient of the
message and must possess the same orientation as the communicator. If the
receiver does not have the ability to listen, to read, to think, he will not be
able to receive and decode the messages in the manner the communicator
want him to. For effective communication, the receiver is the most important
link in the communication process.

Decoding is the interpretation of the message by the receiver. Actually, the

receiver looks for the meaning in the message, which is common to both the
receiver and the communicator.

Feedback is the response or acknowledgement of receiver to the

communicator’s message. The exchange is possible only if the receiver
responds. Even through fluttering eyelids, raising an eyebrow, making a face,
organizing a point and asking for explanation, the message is shaped and
reshaped by the communicator and the receiver until the meaning becomes
clear. In this way both participants in communication interact and constantly
exchange roles. In face-to-face communication the receiver responds
naturally, directly and immediately. This provides the communicator an
opportunity to improve and make his communication effective. Feedback,
thus, provides an opportunity to evaluate what is right or wrong about a
particular communication. It helps to regulate the conversation among two or
more individuals and also stimulates and reinforces an idea that is desired to
be communicated.

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Noise is an interruption that can creep in at any point of the communication
process and make it ineffective. Environment is one major cause that
interferes with message reception: like noises from the roadside, constant
chattering of individuals outside the communication act, blaring loudspeaker,
faulty transmission, etc. noise can occur in other forms also; poor
handwriting, heavy accent or soft speech, communication in a poorly lit
room, etc. in fact, these are barriers to effective communication. For smooth
and effective communication, it is necessary to eliminate or reduce noise as
far as possible.

1.5 Methods of communication

Communication takes place through various methods and channels. The

three main methods of communication are oral or verbal communication,
written communication and the non-verbal communication. Oral
communication takes place by way of talks, conversation, dialogue, speech,
discussion and meetings.

Written communication is carried out through letters, circulars, memos,

reports, brochures and books. Non-verbal communication takes place
through body language. Language constitutes the vehicle on which both oral
and written communication travel. Apart from these three main methods of
communication, there are others like the visual, audio-visual and electronic.
Silence is also accepted as a method of communication. Each of these
methods has its own merits, demerits, channels and aids.

Fig.1: Methods and Channels of Communication

 Oral Communication

Oral communication refers to the spoken word. It takes the form of sounds
and words. Starting out as a struggle by the early man, oral communication

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has had a long journey. It has developed across different regions, cultures,
countries and continents. The development of numerous languages across
the world has empowered oral communication.

Oral communication plays a vital role in everyday life, both for individuals
and organizations. It is, indeed, the most commonly used method of
communication both at the social level and at the organizational level.
Everyone makes copious use of oral communication in their transactions and
interactions. For the individual, talking and speaking provide a very
dependable means of communication within the family and in social groups.
Oral communication is also extensively and gainfully used within
organizations and business entities as well.

Oral communication is also referred to as verbal communication. It

takes place between individuals with the help of words. Oral communication
takes place in many ways—casual and serious, formal and informal,
structured and unstructured. Oral communication encompasses conversation,
monologue, dialogue, talk, speech and chat. Some of these are pre-
meditated and some are not. Formal speeches are pre-planned and well
structured, whereas informal ones are unstructured and often loosely
worded. Below are some merits and demerits of oral communication

MERITS DEMERITS
1. It can be readily used 1. It is not very effective when the
2. It is instantaneous target group is spread out.
2. It is constrained by language,
3. It can be persuasive
accent and vocabulary.
4. It is cost effective 3. It is also constrained by noise and
5. It facilitates effective exchange. other physical barriers.
4. It is not normally recorded or
6. It works very well in small groups
documented.
7. It can be supplemented by non- 5. It does not permit repeated
verbal messages reference person-to-person
6. It cannot be erased
7. It is often dependent on memory

 Written Communication

Written communication is another powerful method of communication.

History is replete with instances where a piece of writing was involved in
events of great significance—in love, war, peace, unions and betrayals. The

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power of writing is eloquently expressed in the saying ‘the pen is mightier
than the sword’. The author of this book is also communicating with the
readers through this piece of writing.

After experimenting with writing on sand, stone and leaves, man invented
paper, pen, books and printing. Newspapers and journals developed as the
media of mass communication.

Written communication has come to acquire great significance in the lives of

individuals as well as business organizations. It reaches across vast
geographic areas and targets readers around the world. The reach of written
communication is limited to the literate world. However, with the literary
levels steadily rising across the world, written communication can accomplish
much more today than it could in the past. Writing skills and word-power of
the communicator come into play in making the written communication
forceful and effective.

Written communication is, more often than not, well structured. The words
are carefully chosen to suit the message and the context. Be it a letter, a
circular, a memo, a brochure or a report, the subject matter is carefully
presented keeping in view the receptivity of the reader. This is how it ought
to be. Progressive organizations make conscious efforts to ensure that people
across the organization acquire well-developed writing skills. It is possible
and necessary to collect all relevant facts and figures beforehand so that the
communication is properly structured.

Written communication, unlike oral communication, can be erased. The

words can be substituted and thoughts can be rearranged before the letter or
the piece of writing is finalized and dispatched. In business organizations,
people often prepare drafts and revise them till a satisfactory final version
emerges, especially when sensitive and important messages are to be
conveyed. Moreover, if circumstances so warrant, the letter or circular or
report can be stopped in transit at any time before it is read by the target.

Merits and Demerits of Written Communication

MERITS DEMERITS
1. It has an extremely wide reach. 1. It takes time to reach its target.
2. It creates a record and is easily 2. It is less interactive.
documented.
3. It can be erased and rewritten. 3. It depends on word power.
4. It is amenable to a high level of 4. It takes more time to get feedback.
planning and structuring.
5. It facilitates repeated reference. 5. It depends on the messenger and the mode

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 of transmission.
6. It depends less on memory since 6. It is constrained by language, handwriting and
efficiency
facts and figures can be mobilized of the tools used.
before hand.

 Non-Verbal Communication

The third method of communication relates to non-verbal communication,

which is neither oral nor written. While oral communication thrives on
listening and the written communication thrives on reading, the non-verbal
communication thrives on observation. Non-verbal communication may take
any of the following forms— body language, gestures, postures, appearance,
personal space, codes, signs and signals, facial expressions, timings,
examples and personal behaviour.

Non-verbal communication may be conscious or unconscious, deliberate or

unintended. It may substitute verbal communication or supplement it. There
may also be occasions when the non-verbal communication may be out of
line with or even contradict oral communication. When used with full
awareness, body language can create the desired impact. At the same time,
unintended body movements and expressions may confuse the listener. Non-
verbal communication is extremely relevant during meetings and interactions
of a direct or face-to-face nature.

The greatest merit of non-verbal communication is that it has a universal

appeal. Unlike both oral and written communication, which depend on a
particular language, non-verbal communication can reach across to people of
different regions, irrespective of the language they speak. Mother Teresa’s
language of love and compassion is just one example. In the organizational
context, however, non- verbal language can be used effectively as an
adjunct to verbal communication.

 Visual Communication

Visual communication is effected through pictures, graphs and charts, as well

as through signs, signals and symbols. They may be used either
independently or as an adjunct to the other methods of communication. It is
also useful in reaching out to an illiterate target group. It can be used in
addressing groups of people who do not understand the language of the
communicator. As the saying goes, ‘A picture is worth more than a thousand

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words’. Pictures, graphs, charts and diagrams often convey the intended
message quite effectively.

 Audio-Visual Communication

This is an extremely sophisticated method of communication. It involves

demonstrations and presentations through various audio-visual aids. Audio-
visual communication is an effective blend of both verbal and visual
communication.

Such communications are, generally speaking, very effective and carry high
retention

value. Audio-visual communications are highly skill oriented. They are

preplanned, developed with care and are often delivered at formal and
structured sessions.

This method of communication is particularly useful in fostering learning and

in classroom sessions. Audio-visual communication is gainfully used in
training colleges as also in seminars and workshops. The use of multimedia
presentations is gaining popularity in the business world. Advertisements on
television channels are another example of audio-visual communication.

Signs (gesture), Signals and Symbols

Signs, signals and symbols have come to acquire considerable significance in

the world of communication. Having evolved over a long period of time, they
date back to biblical times and mythological periods. Well before language
evolved, pre-historic man had learnt to communicate with the help of signs
and signals.

A sign is a mark traced on a surface or an object with a view to indicate a

particular meaning. It may be a piece of paper, wood or metal that has
writing or a picture on it and which gives out information, instruction or
warning. It may also be a gesture, a movement or a sound to convey
something specific. Let us look at some examples of sign language:

1. Priests and elders convey their blessings by placing their hands on the
heads of people bowing to them. (sign of blessing)

2. A player raises two of his fingers in a V sign after a game. (sign of victory)

3. A teacher puts her finger on her lips in a nursery class. (sign that says,
‘keep silent’)

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4. Disciples and youngsters touch the feet of teachers and elders. (sign of
reverence)

Such signs are sometimes group specific and are accepted as a matter of
convention. A sign may also relate to a written mark conventionally used to
convey specific meaning. Such signs may be general, as in the case of road
and traffic signs or subject-specific signs, specific to a profession or body of
knowledge. In mathematics, there are numerous signs specific to arithmetic,
algebra and geometry also in science and medicine.

 Silence

Silence is also a method of communication. It refers to a state of

wordlessness or verbal abstinence. It may express anger or atonement. Self-
inflicted silence conveys a powerful message. Silence may also convey a
form of punishment.

The word ‘excommunication’ refers to a state of deliberate cutting off of

communication. There are indeed occasions when by keeping quiet one can
‘say’ a lot. Silence can also be either deliberate or unintentional. Unexpected
silence sometimes results in awkward situations. In personal communication
as well as business communication, silence has a definite role to play. In
dealing with an irritated customer, an employee would be well advised to
observe silence and listen to the customer before reacting. Even the legal
system takes appreciation of silence as a method of communication.

1.6 Types of communication

Apart from the different methods and channels of communication, one can
also look at various types of communication. Communication can be
categorized into different types depending upon the level at which it takes
place, the direction it takes or by its very nature. Some of the commonly
referred to types of communication are:

1. Personal and business communication

2. Internal and external communication

3. Upward and downward communication

4. Formal and informal communication

5. Lateral communication

6. Interactive communication

7. Mass communication
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8. Global communication

9. Supportive communication

10. Social communication

11. Grapevine

 Personal Communication

Personal communication concerns communication that takes place between

any two individuals, be it in a family, group, community or even an
organization. It takes place in an individual capacity and is characterized by
informality. There is an element of privacy in all such communications. It
can take the form of personal letters, personal telephone calls,
conversations, one-to-one meetings or e-Mail messages. It is private in nature
and there is nothing official about it. Private and confidential conversation
between two individuals is also referred to as tete-a-tete.

 Internal Communication

Internal communication takes place within the organization or group—among

people

within, among different groups of employees and between employers and

employees. It could be oral or written, visual or audio-visual, formal or
informal and upward or downward. Internal communication serves to inform,
instruct, educate, develop, motivate, persuade, entertain, direct, control and
caution people in the organization. When a personal letter is written at an
official address, beside writing the name of the addressee, the envelope is
superscribed ‘private’ or ‘confidential’ to convey the nature of
communication. Knowledge, skills, goal orientation, sharing of corporate
concerns, review and monitoring, performance appraisal, counselling and
training are among the issues that internal communication addresses.

Internal communication aims to put all the necessary actions to promote

group cohesion and set up communication to work better together. The Web
for example has enabled many companies to develop this aspect of
communication. A connected company communicates a lot, and it can thus
convey a positive image for potential customers or build loyalty. With
successful internal communication, employees and managers feel more
"close," which would allow them to understand better and meet each party's
expectations.

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  Newsletter
 Employee
 Email
 Mail Table
 Staff meeting
 Staff evaluation

 External Communication

Unlike internal communication, external communication flows outward. It

addresses people outside the organization, like the prospective customers,
competitors, public, press, media and the government. External
communication can take place in various ways and through different
channels. Letters, notices, brochures, demonstrations, telephone calls,
business meetings, press releases, press conferences, audio-visual
presentations, publicity films, product launch events and advertisements are
all examples of external communication. It is important to note that the
external agency or person targeted through such communication quite often
forms an image or impression based on such communication and it is,
therefore, very necessary that adequate care is taken in making it clear,
intelligible and appealing.

External communication aims at external service providers (suppliers,

partners, potential investors, etc.), consumers (customers and prospects),
etc.

Its purpose is to transmit information to members outside the

company. It gives the positioning of the company in many areas. It’s pricing
positioning, for example, geographic area of intervention, the values it
defends, etc. This external communication also allows the company to be
heard from time to time on isolated events. In this case, small and large
structures must take care of their external communication and prepare a
communication plan to develop their image, reputation, and the development
of their activities.

 Catalog
 Email
 Business letters
 Press Releases
 Press conferences
 Assistance service
 Publicity
 Online content

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  Commercials
 Social media presence
 Brochures
 Plenary assemblies
 Meetings

 Upward Communication

Large organizations have different hierarchical levels or tiers. Banks, finance

companies, insurance businesses, railways and such other people-oriented
organizations have typically a three-tier or a four-tier structure. The process of
communication to be complete and effective should encompass all these levels and
tiers. Upward communication is one which moves upward, i.e., from the bottom to
top levels in the hierarchy.

Any communication that moves from employees to supervisors, supervisors to

managers, managers to executives and regional manager to general manager may
be categorized as upward communication. Similarly, communication from branches
to regional offices, regional offices to zonal offices, zonal offices to the head office is
referred to as upward communication. Employee suggestions, market reports,
performance reports, feedback on new products and requests for facilities or
instructions are all examples of upward communication in the organizational
context.

 Downward Communication

Downward communication moves from top to the bottom, i.e., from the CEO
downwards. It travels through senior executives to junior-level functionaries,
from the controlling office to the branch, from the head of the division to the
head of the unit. Corporate goals, business priorities, motivational letters,
work-related instructions, newsletters, letters from the CEO/General
Manager’s desk are all typical examples of downward communication.

There may be some communication which would move both upward and
downward. A typical example of this is performance budgeting, which is a
two- way process. It is a top-to-bottom as well as bottom-to-top exercise.

 Formal Communication

To ensure communication on an ongoing basis, organizations develop formal

systems. Staff meetings, union-management meetings, branch managers’
conferences, periodical sales review meetings and customer meets are
examples of forums that facilitate formal communication. Formal
communication generally follows a well-defined hierarchical pattern and
periodicity. Memos, circulars, instructions, guidelines, clarifications,

21
agreements and reports are some of the channels that facilitate the flow of
formal communication in business organizations.

 Informal Communication

This type of communication takes place in an unstructured manner and

outside the formal fora. There is an element of spontaneity in this
communication. Informal communication works well in smaller, loosely knit
organizations. It is used more often in situations where there are no rigid
hierarchical tiers. While formal structure of communication is a must in large
organizations, it is the informality that helps sustain goal orientation in small
well-knit units. Informal communication takes place through chats,
conversations and informal talks and the like.

 Lateral Communication

Lateral communication generally takes place in an organization and is neither

upward nor downward. It proceeds in a horizontal manner and takes place
among equals and at peer level.

It may also be described as peer-level communication. Any communication

that takes place, orally or in writing, from one branch head to the other, from
one division head to the other, from one group head to the other, may be
described as lateral communication. An important point worth noting in any
such lateral communication is that there is not much difference in terms of
the hierarchical levels or positions of the sender and the receiver.

 Interactive Communication

Interactive communication is essentially a two-way process. It takes place

through meetings, conferences, teleconferencing, multimedia presentations,
group discussions and other such active two-way exchanges. Interactive
communication is most appropriate when the message or subject is to be
presented at length, e.g., in practical sessions, case study discussions and
strategy formulation. When many speakers are involved, there may be a
need for a moderator who will facilitate effective flow of communication from
different speakers.

 Mass Communication

Mass communication is distinctive in view of its scale. Essentially, it

addresses a large mass of people. Public speaking, newspapers, magazines
and journals, radio, television and dotcoms are channels of mass
communication. Mass communication has developed into a specialized area
of study. Each of these areas or channels calls for distinct skills. By its very
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nature, mass communication addresses a vast, well spread-out and
heterogeneous group of people and, as such, special efforts will have to be
made to sustain their interest and achieve the desired response. At the
government level too, there is often a separate ministry or department of
mass communication to deal with this functional area. Main branches of
study relating to mass communication are public relations, advertising and
publicity, journalism and digital media.

 Global Communication

Global communication relates to communication that takes place beyond the

national boundaries. Businesses operating in today’s world are characterized
by their global nature. Most businesses operate beyond the local or even
national boundaries and are influenced by global trends.

 Supportive Communication

Supportive communication is a form of communication in which people are

encouraged to speak freely and come out with their feelings and concerns.
This happens when managers take time to listen, do not interrupt or pass
judgments, make efforts to understand, and do not criticize and snub the
other party. This type of communication calls for abundant patience and
empathy, or the ability to understand the other person’s feelings and
experiences on the part of the manager or superior. Any person will freely
share his or her inner feelings and concerns only when he or she feels that
the listener is empathetic and interested. The supportive communicator has
to create an environment where a person will feel encouraged to speak up
without restraint.

 Social Communication

As members of society, people everywhere will have to interact with others

on a regular basis. Social communication takes place when people meet each
other outside business and workplace situations. Social skills refer to the
ability to talk easily to other people and do things in a group. Social
communication often takes place at an informal and friendly level.
Nevertheless, when business people meet at social events to exchange
pleasantries, or meet for lunch or dinner, there are some social etiquettes
which have to be taken note of.

 Grapevine Communication

Grapevine is a kind of informal communication that prevails in organizations

and businesses. The source of such communication may not be clear. It

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spreads by way of gossip and rumours. It travels through informal networks
and quite often travels faster than the formal messages. Sometimes, it gets
more powerful and becomes more receptive than the formal communication.
The prevalence of this type of communication in an organization has to be
recognized and accepted. A skilled communicator can derive benefits from
such a communication as well. It may not always be possible to control the
grapevine, but, nevertheless, an able communicator knows how to influence
it. Like any other type of communication, this one too has its merits and
demerits.

 Commercial communication

Communication is commercial when it aims to increase customers, promote a

product, and enhance the brand image.

 Institutional communication

A communication is institutional when it allows expressing the identity of the

company. The organization then speaks about itself, its identity, its values,
and its culture.

I-7 Characteristics of business communication

1. Practical in nature

Effective communication deals with the real and genuine aspect of

information which clearly explains requirements of the customers. It
completely removes any impractical and unnecessary information to avoid
any wastage of time.

2. Factual in nature

The message related to business basically consists of some factual data

which depicts the full information relating to business. Critical information
like date, time and place should be clearly shown in the message meant
for business.

3. Precise and easy language

The message for communication should be written in an easy and precise

language. There should be the use of pictures, diagrams, and charts for easy

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clarification of the information. It helps to understand the message of the
sender effectively.

4. Two Way Traffic

Communication is a two – way traffic. The process of communication is not

completed until the message has been understood by the receiver.
Understanding is an essential part of communication, but it does not imply
agreement.

5. Pre-planned target

The communication process of business must contain certain pre-decided

objectives and full efforts should be made in order to achieve them. The pre-
decided objectives pushes the sender during communication to achieve the
goals.

6. Persuasive in nature

The communication process has a persuasive effect. It forces an employee to

perform his or her duties in order to achieve the pre-decided goals.

UNIT II: PROCESS OF PREPARING EFFECTIVE BUSINESS MESSAGE

 Planning steps:

Preparing Effective Business Messages, while preparing an effective written

or oral message, one needs to plan, organize, draft, revise, edit and
proofread. Equally important is the adherence to the communication
principles, namely, the seven C qualities of communication. Even with the
most advanced forms of technology, preparation of written and oral
messages is an essential requisite. Now with companies going global and
international, there is more emphasis on thoughtful preparation of messages.
FIVE PLANNING STEPS. To communicate effectively, the following steps must
be considered carefully before writing messages:

To communicate effectively, the following steps must be considered

carefully before writing messages, FIVE PLANNING STEPS;

1. Identify your purpose;

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2. Analyze your audience;

3. Select your ideas;

4. Collect data to support your ideas;

5. Organize your message.

1. Identify Your Purpose

The objective of your message is the most important consideration.

Identify the specific purpose for constituting your message. Whether it is
merely informational, or, whether it is persuasive, or are you trying to
negotiate, or explaining the reason for something that you are unable to
provide. All messages have an underlying ‘relational’ purpose that is
twofold – the reason for the message itself, and to create goodwill

2. Analyze Your Audience

It is very important to adapt your messages to the receivers’ views,

mental filters, needs, interests’, attitudes and even their culture.
Understand the nuances of preparing messages and take care of even
with the salutation of the letter, paying proper attention to the proper
placement of first and last names and even the correct titles.

-Try to understand if the person is a member of a group, committee, or

a colleague, or a superior, or a subordinate, a woman or a man.

- Also consider if your readers or listeners are informed or uninformed on

the subject and their possible reaction, positive/negative/interest/
disinterest.

3. Select Your Ideas

The next step is to choose the ideas for your message. The ideas you
include depends on the type of message you are sending, the situation
and the cultural context.

26
If you are answering a letter, jot down the main points to discuss.
Suppose you are sending an unsolicited or complex message, then list
down your ideas as they come to you and then select the best ideas for
your receiver.

4. Collect Your Data

After having decided what you wish to include, determine if you require
specific facts, figures, quotation or other forms of evidence to support your
message.
Always check your data for correctness such as names, dates, rates,
addresses and statistics for precision.

5. Organize Your Message

Before you write your first draft, outline your message. The order of the
presentation of your message is as important as the ideas themselves.

Disorganized, rambling messages seem careless, confusing and

unimportant. You must vary your approaches according to differing
cultures. For example, a direct style is preferred by U.S. businesspeople
and Europeans while an indirect style is effective in South America,
Asian countries and Middle-East.
 BASIC ORGANIZATIONAL PLANS
The choice of organizational plans depends on several factors: How you
expect the readers/listeners to react to your message, How much the
reader/listener is aware about the topic/situation, What is the cultural
convention of the reader/listener.
FOUR BASIC ORGANIZATIONAL PLANS
Direct-Request Plan, Good-News Plan, Bad-News Plan, Persuasive Request
Plan.
APPROACHES IN ORGANIZATIONAL PLANS
There are two approaches in the organizational plans, namely: Direct or
Deductive Approach Indirect or Inductive Approach.

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 Direct-Request Plan & Good-News Plan use the Direct or Deductive
approach. •Bad-News Plan & Persuasive-Request Plan use the Indirect or
Inductive Approach. DIRECT OR DEDUCTIVE APPROACH .The direct approach
can be used when your audience will have a favourable or neutral reaction to
your message. So,
You can begin with the main idea or best news. After the opening, include all
necessary explanatory details in one or several paragraphs and end with an
appropriate, friendly closing. .Use the direct-request plan when the main
purpose of the message is to make a request that requires less persuasion.
This can be used to grant requests, announce favourable or neutral
information, and exchange routine information.

INDIRECT OR INDUCTIVE APPROACH .The indirect or inductive approach can

be used when your readers/listeners may react negatively to your message.
In such cases, do not present the main idea in the first paragraph. •Instead,
consider beginning with a buffer, a relevant pleasant, neutral, or receiver-
benefit statement, then give an explanation before you introduce your idea.
This pleasant and neutral opening is called ‘The Porch’.

 BEGINNINGS AND ENDINGS

Opening Paragraphs: The opening of a message determines the
readability of the complete message.

Some suggestions for effective openings are as follows:

1. Select openings appropriate for message purpose and reader

a)-Main idea or good-news subject first when the reader will consider the
information favourable or neutral.
b)-Buffer first if the news is not favourable
C)-Attention getting statements first when the news is a persuasive
request.

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2. Make theopening considerate, courteous, concise, and clear.
3. Check for completeness

CLOSING

1-End on a positive courteous thought

2-Keep last paragraph precise and concise

UNIT III. EFFECTIVE COMMUNICATION PRINCIPLE

Whenever you talk about communication, the first thing that comes in our
mind is the principles of communication or the 7cs of communication. With
these principles, we come to know how to make communication effective. So
that it could be easy to understand for the targeted group of people.
Communication must be effective because in business, individuals have to
communicate with their workers, with customers, with buyers and sellers and
so on.

Therefore it is necessary to make communication effective that help the

receivers to understand the message. Actually in the sense and with the
meanings in which it was conveyed. The principles of communication tell
us the meaning and style of the message. Thus, before making
communication to every individual, keep these principles or 7cs of
communication in your mind.

7CS of Communication

 Completeness
 Conciseness
 Consideration
 Concreteness
 Clarity
 Courtesy
 Correctness

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 1-Completeness

Completeness refers to the fact that the information sent by the sender
should be complete in every aspect. So that it will result in an effective
communication. The sender should analyze the receiver’s mind and send him
that message according to his intellectual level. Firstly, the sender should
send the message by considering all the facts and figures and should convey
all the relevant information. Moreover if he fails to do so he should answer
every question of the receiver by providing extra details. Let’s quote a simple
example here. Suppose if you are working with a company and you are
dealing with the engineering area.

One of your customers ask about the A.C mechanism. You are supposed
to provide him extra details to make him satisfy this will result in effective
communication. If you failed to provide the relevant information in a short
period of time. Then it means the business communication between you
and your customer has failed, and he might shift to some other company.

Example:

“You haven’t completed the task that I set you,” is a message full of
ambiguity. Instead, make sure you include all relevant facts:

“The data analysis for client ABC that I asked for on March 5 should have
been completed by today. Will you have it finished this afternoon?”

2-Conciseness

Conciseness means providing accurate information in a short period of

time. As we know that businessmen always have short time either he is a
sender or a receiver. So conciseness saves the time of both of them. To
achieve conciseness in the business, every individual has to avoid repetition
of words during communication. He should not use lengthy explanations
as it takes a long time. Also summarizes the communication with relevant
information. Besides, not consuming more time, this principle of

30
communication helps to save money too. Remember that the basic aim of a
business is to provide to the point information.

In fact without using jumbo and repetitive words that takes time. For
example, if your customer asks you to provide the details of your clients. You
should provide him with the list of the names of the clients. Providing
business and personal details are useless and just a waste of time. Always
use abbreviations like I.T, W.H.O, to save the time too.

 Eliminate unnecessary words

 Use action verbs
 Remove repetition

Example:

“As a matter of fact, during the month of June, all employees must ensure
that they wear appropriate clothing to ensure they stay cool while the air-
conditioning is being repaired.”

Becomes: “Indeed, during June, employees must wear appropriate clothing

to stay cool while the air-conditioning is repaired.”

3-Consideration

From a business perspective, consideration means to consider the

receiver’s nature while compiling a message by keeping himself in the
receiver’s place. Effective communication is the one, when the sender
considers the mental level, education and background of the receiver
before sending the message. Senders should make a mental picture of the
receiver’s emotions and problems before sending him a message. He should
make sure that he has maintained the self-respect of the receiver and his
words should not harm him. A sender should Use “you” instead of using I or
We. Moreover senders should manifest interest in the target audience.
Although senders must emphasize positive words in order to produce positive
responses. They should always write the message in such a way that shows
the benefit of the targeted audience.

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Example:

Imagine that you are unable to pay a promised bonus. How do you
communicate this?

“We are unable to pay bonuses now. The business is awaiting payment from
a major client. Once this payment is received, we can consider paying
contractual bonuses as soon as is practicable.”

This could be better conveyed as follows:

“Unfortunately, we are not presently in the position to pay your bonus.

However, as soon as our major client has settled their account, we will pay
any bonuses owed to you. We’re sorry about this delay, but are sure you
understand our need for positive cash flow and the long-term benefits this
will deliver to you.”

4-Concreteness

Concreteness refers to be specific rather than to be general. General

messages lead to misunderstandings that affect both the sender and the
receiver. It is recommended that while communicating with the client, facts
and figures should be used instead of general discussions. While
communication, the words that build images should be preferred. For
example, while writing a general message the sender will write “he is an
intelligent boy and got first position in class” this is so confusing. But if the
sender writes “Ahmed got 78% marks in A – Level.” This one is not only
specific, but also builds a good perception in the reader’s mind. In written
communication, you should proofread before sending.

Example:

An example would be poor communication of underperformance during a

one-to-one. You might say, “Your sales numbers are on the low side. They
need to be improved to at least the team’s average.”

Give your employee concrete direction with evidence and an active voice:

“Your sales conversion rate is below 50%. You must improve this to the team
average of 65% or higher.”

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5-Clarity

Clarity means to be clear in the goal rather than chasing too many goals
at a specific time. In business communication the messages sent should be
clear with exact wordings that are short, to avoid misunderstandings.
For effective communication, easy to understand words should be used. Easy
wordings help in understanding the ideas and thinking of the sender. While
communicating the sender should be clear of the purpose of communicating.
If not so then the receiver will not understand his message. Receivers are not
capable of assuming what the sender wants to say. Therefore it is necessary
to make easy and precise messages.

Example:

Instead of saying, “We have considered the consequences of the existing

policy on the hiring strategies we employ with our human resources
department and updated them accordingly,” say, “We have updated our
hiring policy”

6-Courtesy

It means not only knowing the receiver’s ideas and thoughts, but also to
know his feelings. It means that the sender is sending the message by
respecting the feelings of the receiver. Therefore, the sender should be
polite and caring while writing a message. Courteous messages strengthen
relations. Senders should use the words that show respect and care for the
audience. He can frequently use “thank you” and “please” to show respect
for the feelings of receiver.

Example:

“I don’t appreciate how your team ignores requests for collaboration from my
team. The work we do is equally as important as your work. Could you make
certain that your team collaborates more readily from now on?”

33
Such a message is unlikely to encourage a negative response. Instead, a
more effective approach would be:

“I understand that your team is extremely busy and receives many requests
to collaborate on project work. However, my team is working a highly urgent
project with enormous mutual benefits. I would greatly appreciate if you
could ask your team to collaborate more effectively with mine to move this
project forward faster. If there is any help that we can provide to make this
happen, please let me know.”

7-Correctness

In business, correctness means the correct use of grammar,

punctuation and language during communication. The message should be
written in the right language with accurate figures and facts. The type of
language used in business is often informal i.e. the words that are used
during conversation are short. Although while in written message always
abbreviations are used. Thus the last 7cs of communication have utmost
importance.

Business associates communicate all day. The better they communicate

(either verbally or nonverbally) the better the reliability they will have with
their clients. Awareness to these 7CS of communication will make every
businessman the best communicator. Moreover the best use of these
principles ensure good communication.

Example:

“You may enter the building during opening hours but must show relevant
I.D.”

Immediately, the recipient of this information has two questions:

 “What are the opening hours, and what ID is considered relevant?

34
Correctness in this communication is conveyed by saying, “You may enter
the building during the opening hours of 9am to 5pm daily, but must show
your employee identity card.”

UNIT IV. BUSINESS LETTERS

INTRODUCTION
Written communication is so much a part of everyday business that one
cannot think of a business without related correspondence. Think of any
organization or institution—bank, electric company, hotel, college or library
dealing with people and there is obviously some written correspondence. It
may be handwritten, typewritten or printed. In the olden days, there were
people who were specially assigned the job of taking care of correspondence,
even in small businesses. Such persons were popularly referred to as
‘writers.’
Business letters, it should be noted, are a prominent part of written
communication in business. Before discussing business letters as such, we
need be clear about the advantages of written communication. Written
communication has certain clear advantages as detailed below:
1. Written communication has an extremely wide reach, co-terminus with the
literate world.
2. Written communication can be well organized to convey the precise
message.
3. Written communication, generally speaking, can be prepared at the time
when the communicator is best prepared to do so.
4. Written communication, unlike oral communication, can be effective as a
stand-alone medium.
5. Written communication can be targeted to reach specific
individuals/sections.
6. Written communication can be composed in a language that the receiver
can read and understand.
7. Written communication can carry the much desired personal touch.
8. Written communication can be erased, revised and re-written.
9. Written communication, when stored, can be exactly reproduced or
repeated.
10. Written communication, organized properly, can be cost effective.

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11. Written communication, very importantly, creates records and reference
sources.
12. Written communication, when presented in an appealing manner can
create the right impression.
The advantages of written communication far outweigh its limitations and
this method of communication is extensively used in the business world.
Business letters are extremely popular because they have all these
advantages which a written correspondence enjoys.
4.1 Business letter and its importance

Business letters, to be good and effective, must contain certain essentials. In

other words, business letters should conform to certain minimum standards
of letter writing. One can look at these essentials from different angles—
language, content, context, length, structure, layout, taste, tone, impact and
purpose orientation. Any letter is amenable to description in terms of these
characteristics or features. To qualify, the letter should measure up as good
when viewed from any of these considerations. It may or may not encompass
all these features. Nevertheless, a good letter writer should have a clear
understanding of all the characteristics that make the letter effective. In
order to be clear about what is a good letter, it is also very necessary to know
what a bad letter is. While a good letter can be good on many counts, a bad
letter may have one undesirable feature which can mar the beauty of the
entire letter.

A bad letter stands out like a sore thumb for any of its deficiencies, which
might be any of the following:

1. Lack of clarity, 2. Poor use of words and expressions, 3. Incorrect spelling

and grammatical errors, 4. Too short or very lengthy, 5. Too many ideas
crowded into one letter, 6. Not accurate or factually incorrect, 7. Fails to
convey the main purpose, 8. Not to the reader’s wavelength, 9. Too much
jargon and technical words, 10. Lacking in aesthetic sense, 11. Language
used not familiar to the reader, 12. Lengthy paragraphs, 13. Offensive in
nature, 14. Absence of personal touch, 15. Lacking in courtesy, 16. Creates
ill-will, 17. Written out of context, 18. Absence of relevant information, 19.
Use of poor-quality paper and ink, 20. Wrong address and 21. Absence of
address.

36
 Business is all about creating goodwill, favourable impressions, attracting
attention, creating interest, wooing customers, reaching prospects and
building relationships.

4.2 Difference between Personal and Business Letters

Business letter refers to formal written letter through which business-related

issuesand information are exchanged with the suppliers, customers, banks,
insurancecompanies and other external parties of the organization.

On the other hand, personal letter is written for exchanging personal or

family affairs with family members, relatives, friends, lovers, teachers,
students etc. are known as personal letter. There are following differences
between business letter and personal letter:

1. Nature: Business letter or commercial letter is impersonal and universal

in nature. Personal letter is fully personal in nature.

2. Purpose: The purpose of business letter is exchange of various business-

related issues and information. Personal letter is exchanged for personal or
family related affairs and information.

3. Scope: The scope of business letter is wide and contains various types of
business information. The scope of personal letter is limited and contains
only personal information.

4. Structure: Business letter follows the officially recognized structure.

Personal letter does not follow any recognized structure.

5. Formality: Business letter maintains formal rules and procedure. Personal

letter is informal.

6. Size: Generally, business letter is concise in size and avoids irrelevant

matter. Personal letter may be concise or large in size.

7. Types: Business letter can be categorized differently. Personal letter

generally cannot be categorized.

8. Salutation: The salutation of business letter salutation is sir, dear sir,

dear Mr. x etc. The salutation of personal letter is Dear friends, my dear x,
dear x etc.

37
9. Language: The language of business letter should be easy and simple.
The language of personal letter may be easy, poetic, emotional etc.

10. Copy: Copy of business letter is preserved. Copy of personal letter may
not be preserved.

11. Method: Business letter uses direct and persuasive method. Personal
letter uses only direct method.

4.3 Structure and format of business letters

A letter has many parts—outside, inside, top, bottom, middle, left, right,
first page, second page, enclosures and annexure. Each one of these parts
has a certain significance and carries a definite place in the context of letter
writing. All these external and internal features concerning a business letter
carry a time-tested position and significance. All the same, when we refer to
a position or placement, we are not necessarily referring to a very rigid
position for all times. Over a period of time, business writers have brought in
flexibility and improvisations resulting in certain choice of positioning as well.
Thus, notwithstanding the various types and places relevant to a business
letter, it is possible to have different styles in writing a business letter.

4.3.1 Parts of a business letter which makes up its structure and

format.

Letterhead

The letterhead announces the name of the business. It often suggests

what the business is about— whether it is a bank, an insurance company, a
transport agency, a trading firm, a building contractor or an estate agent.
While some businesses choose to mention their name as well as their line of
business in their letterhead, others confine only to the name. Quite often the
constitution of the business is also stated—public limited, private limited or
government undertaking. Along with the name and line of business, some
relevant particulars such as date of establishment, location of head office or
registered office, telephone number, fax number and e-mail address are also
furnished on the top of the letterhead. The letterhead also carries
prominently the logo of the business.

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Reference Line

Business letters have reference details which help in clearly tracing the letter
to its source and context. When the business is large, in terms of functions
and customers covered, it becomes necessary to compartmentalize the
activities into different regions and functions. A separate file can be
maintained for each customer.

Reference details usually consist of abbreviations, letters and numbers. They

may also carry the initials of the person drafting the letter or maintaining the
file. The reference line helps both ways. On the one hand it helps the letter
writer or anyone else within the organization to know the exact context in
which the letters were written, and makes it easy to relate it to the specific
context on receipt of the reply. On the other hand, it also helps the receiver
of the letter to make out the exact source and context of the letter and helps
the receiver to respond.

Date Line

The date line follows or stays close to the reference line and clearly mentions
the date, month, and the year of the letter. The date is mentioned in many
ways—22.05.2017 or 22 May 2017 or May 22, 2017. The most appropriate
way of stating the date would be the second one, i.e., 22 May 2017 for its
lack of ambiguity.

Inside Address

Inside address refers to the addressee or the person to whom the letter is
addressed. It may be an individual, a functionary, a group or an institution.
The letter may be addressed by name or by designation. The inside address
need not give the full postal address which has to be necessarily furnished
outside. It is generally restricted to the name and/or the designation, the
department and the office, since this position is well recognized. The word
‘to’ may be avoided for greater elegance.

Salutation

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Salutation is a must for every letter. It relates the letter to the reader. It can
takemany forms such as ‘Dear Sir’ or ‘Dear Madam’ or ‘Dear Mr so and so’ or
‘Dear Shri so and so’ or ‘Dear Mrs so and so’ as the case may be.

When the letter is addressed to an organization or a group, the salutation is

in the plural form, i.e., Dear Sirs. When the status of the person is high and
additional respect is intended to be conveyed, ‘Dear’ is omitted and the
salutation is Sir or Madam.

Subject Line

After the salutation, the next part of the letter is the subject. The subject
of the message is stated clearly and boldly at the centre of the letter. This
helps to draw and focus the attention of the reader on the specific subject or
topic or area which the letter covers. The subject should be stated clearly yet
briefly, i.e., in a few words. Often the receiver of the letter looks at the
subject and decides as to how important or urgent its contents are for him. A
skilled letter writer learns to state the subject in a manner that attracts
attention. The subject should fairly reflect the essence of the letter.

Message

The message is the body of the letter which comprises the opening line and
the message to be conveyed. The message is organized into appropriate
paragraphs in order to convey thoughts sequentially. The paragraphs are so
designed as to cover related thoughts and facts. The opening line usually
starts with an acknowledgement or introduction. It may draw reference to
earlier correspondence, if any. The opening line or the introductory
paragraphs endeavor to put the message in perspective. In the next
paragraph or paragraphs, as the case may be, the message of the relevant
communication is dealt with.

Closing Line

The closing line paragraph is very important for the letter. It should sum
up the message and emphasize the action intended. Good writers take pains
to make the closing line as effective as possible.

The complimentary closing line comes after the message and before the
signature. It is ‘Yours faithfully’ or ‘Yours sincerely’ or ‘Faithfully yours’ or
‘Sincerely yours’ as the case may be. When the salutation is ‘Dear Sir’ or

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‘Dear Madam’, the closing line is ‘Yours faithfully’, and when the salutation is
‘Dear Shri’ or ‘Dear Mrs’, the closing line is ‘Yours sincerely’. It is also
common to see the closing line ending with plain ‘Cordially’ or ‘Sincerely’,
omitting Yours. The business writer should choose the style appropriate to
the context.

4.3.2 Good Business Letters—A Checklist

Good Business Letters have to have good appeal, appropriate content, proper
style, clear impact and keen review and editing.

APPEAL: Is the letter appealing? – quality paper, good font, proper margins
and alignment and short paragraphs.

CONTENT: Is the content appropriate, adequate and clear?

STYLE: Is the message simple, direct and concise?

IMPACT: Is the letter audience-focused and timely? Does it achieve the

writer’s objective? Does it create goodwill?

EDITING: Have we ensured that there are no grammatical, punctuation and

spelling mistakes? Is the letter well organized and the matter logically
presented?

LANGUAGE: Is the language reader-friendly? Have we used simple, familiar

and precise words and phrases?

4.3.3 Guidelines for writing effective business letters

Following are some guidelines for writing business letters:

(i) business letters, as all other types of correspondence, should follow the
structure of a beginning, a middle and an end.

(ii) the first paragraph would be the introduction and should state the reason
for the correspondence.

(iii) the middle should add detail to the information in the introduction.

(iv)the ending is the conclusion and should state clearly what action one
hopes or expects the recipient to take.

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(v) words should be effectively used so as to appeal to the level and
sensibilities of the recipient.

(vi) keep to the point.

(vii) be brief without being curt.

4.4 TYPES OF BUSINESS LETTERS

Businesses are of numerous types. They may be big or small, old or new,
local or national, public or private, proprietary or partnership, monopolistic or
competitive and manufacturing or service units. Nevertheless, big and large,
all these businesses have certain common concerns and approaches within
any given business environment. They deal with people internally as well as
externally. They have their stakeholders in owners, employees, customers
and the community. Businesses are also organized into various functional
areas such as personnel, marketing, sales, purchase, accounts,
administration and secretarial. Some of the types of business letters include
collection letters, sales letters, agency letters, banking letters, insurance
letters, letters of enquiry and so on. These letters are discussed in detail in
the subsequent paragraphs.

1-Collection and Recovery letters

Collection and recovery letters are plain speaking and sometimes sternly
worded. The letter writer should know which approach would be appropriate
under each circumstance. Some organizations follow the practice of sending
a reminder even before the due date. Obviously, such letters should be very
polite and make for a pleasant reading. Similarly, even after the due date,
the first set of letters will have to be polite and warmly worded. It is a
common practice to send a simple pre- printed reminder using a well-worded

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format, duly filling up the name, address and due date. It is possible that the
addressee has forgotten or overlooked to make the payment or has been out
of station or any such genuine reason. Under no circumstance should such a
person be embarrassed or undermined. While collection of dues is important,
as far as possible it should be done with due sensitivity and without hurting
the feelings of the person from whom the amount is due. The letter writer
should discriminate between a wilful or intentional and an unintentional
defaulter. The letter writer should also discriminate between the first time
defaulter and a habitual or hardened defaulter. The customer is important
and the business will have to deal with them in future too, as long as the
relationship is worthwhile. The letter should not hurt the feelings of the
addressee and result in a severing of the business relationship, unless such
an extreme situation is warranted.

2-Sales Letter

A good sales letter highlights what is of interest to the addressee and

prompts them to seek more details and respond positively. Pleasing layout
and appealing language, along with relevant facts and figures, are a must.
Unlike the letters emanating from the purchase department, the letters sent
out by the marketing department can be highly creative and innovative. They
bring out the product differential. They focus on the unique selling
proposition (USP). While avoiding an overdose of superlatives and tall claims,
the sales letter should focus on the strength of the company and the merits
of the offer. The business letter writer should have a good understanding of
the essential features of product marketing or services marketing, as the
case may be, and use them to his advantage while drafting sales letters. Any
product has its tangible and measurable features. If the sales letter concerns
a product, it is desirable that the product-related features such as price,
strength, colour, weight, ease of operation, after-sales service and varied
qualitative and quantitative dimensions are appropriately highlighted.

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Similarly, if the sales letter concerns a service which is essentially intangible,
the service-related features such as courtesy, promptness, employee
attitude, physical facilities, customer identification/recognition, speed, clarity,
communicative and interpersonal skills, as relevant, are to be highlighted.

3-Agency letters

Agency correspondence is the correspondence between the principal and the

agent. The application for an agency, the appointment of an agency, its
tenure and renewal, facilities provided by the agent, the support he receives
from the principal, etc., form the subject matter of agency correspondence.

4-Banking letters

Banks and financial institutions are an integral part of the world of business.
Given their primacy, it is inconceivable for any business organization to do
business without a bank account or a banking transaction. In other words,
every organization, whatever be its structure, has to have bank dealings. Be
it a partnership or proprietorship, private limited company or a public limited
company, a government department or a society or trust, it has to have
banking-related transactions in the course of its business. The nature and
variety of dealings, of course, depend upon the activities and expanse of
business. It is against this backdrop that banking-related correspondence
assumes significance.

Generally speaking, some common services provided by banks include

thefollowing:

1. Deposit facilities
2. Credit facilities
3. Remittances and payments
4. Export, import and foreign exchange facilities

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5. Investment banking and wealth management
6. Ancillary services

5-ORDERS, OFFERS, QUOTATIONS AND TENDERS

In any organization, orders, offers and quotations are correspondences that

are carried out every single day. In quotations, specifications or details which
must be unambiguously mentioned should cover the following:

1. Number or quantity: Given the economies of scale, the cost would vary
depending upon the quantity or volume of work order. Moreover, some
businesses may not evince interest if the quantity or size of the job is small
or uneconomical. The letter calling for quotations or inviting tenders should
therefore clearly state the size of the order or quantity of supply.

2. Quality or specifications: Modern businesses attach considerable

significance to the qualitative aspects of any job. Suppliers who do not
conform to prevalent acceptable standards are often rejected. In view
thereof, it is imperative that the qualitative dimensions such as strength,
thickness, purity, colour, texture, age, weight and accuracy are clearly
stated. This will also ensure that those who are not in a position to meet the
required standards or quality levels do not respond.

3. Delivery time: The third dimension of significance while calling for

orders, tenders and quotations is time. The time taken for delivering the
supplies or executing the order has to be covered. For many businesses, time
is money. Time overruns of a project under implementation translate into
cost overruns and, therefore, execution or delivery time needs to be
specifically stated.

4. Additional unit: While calling for quotations, quite often, apart from
mentioning the fixed number or quantity, quotes are also sought for every
additional unit. For example, if it is an order for printing a booklet, the
quotation called for will be, say, for thirty-two pages, and also plus or minus
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every four pages so that calling for fresh quotations, in case there is a small
variation in the order size, is avoided.

5. Competitive offer: Calling for quotations, tenders or orders presupposes

a competitive scenario and the intention is to get the most competitive offer.
It is therefore essential that quotations or orders are sought in such a way
that evaluation of alternative quotes is facilitated.

6. Response time: Orders and tenders relate to the purchase of material,

execution of a job and completion of a process, which are undertaken as per
a time schedule. It is necessary to specify a date and even time within which
the response is to be made. When the quotations and tenders called for
relate to high-value jobs, business organizations, especially government and
public sector units, follow an open and transparent system for opening the
tenders. Any such procedure, wherever applicable, has to be stated while
inviting tenders. In such cases, in order to ensure confidentiality and fair
play, the quotations or tenders ought to be made in sealed covers.

 Tenders

A tender is an offer or a proposition made for acceptance, such as an offer of

a bid for a contract. A tender is something that is offered in return for a
specific payment, subject to well laid down terms and conditions. Tenders are
invited by large organizations, especially governments and undertakings, for
supply of items, construction of buildings, roads, maintenance activities and
other such relatively high-value works. Tenders are invited to ensure
competitive offers and transparent decision making. Since substantial
monetary payments are associated with the process of inviting tenders and
awarding contracts, every care has to be taken to ensure clarity, openness
and fair play. Inadvertent omission of key/relevant details could lead to

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avoidable confusion, complaints and legal action. Important points that need
to be covered in a tender are as follows:

1. Name of the organization and address.

2. Tender number and date.

3. Captions such as (a) Tender notice; (b) Tender notification; (c) Notice
inviting tenders; (d) Sealed tenders invited

4. Who can apply—sealed tenders are invited from; (a) Class I civil
contractors; (b) Established contractors having customs house agency
license; (c) Manufacturers or their authorized agents, etc.

5. Experience/requirement

(a) With experience in completing similar work, (b) Satisfying the eligibility
criteria mentioned below, (c) Who have supplied the tendered items
successfully to other govern organizations, etc.

6. Brief description of work or items/material to be supplied

7. Contract period and/or delivery schedule

8. Earnest money deposit

9. Contact address or authority: (a) For further details please contact/write

to; (b) Tender documents can be obtained from

10. Date of issue of blank tender forms

11. Cost of tender document—mode of payment

12. Last date for receipt of sealed tenders—time

13. Time and date of tender opening

14. Other relevant details such as: (a) Amount of tender; (b) Average
turnover (annual) for the last 3 years; (c) Technical bids and commercial bids
and (d) Website.

 Letter of Enquiry
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Letters of enquiry cover various types of enquiry made by a wide cross
section of clientele and prospective customers regarding the availability of
various products, services and other related aspects of the business. Most
such enquiries nowadays do take place orally and telephonically and the
volume of correspondence has decreased as compared with the past. Modern
and computerized organizations in metropolitan centres, in particular,
provide tele-contact facility, self-help terminals, kiosks and websites which
obviate the need for written correspondence.

Nevertheless, business units would be receiving letters of enquiry conveying

availability and details of products and services, location of branches and
offices, rates and charges relating to products and services, and contact
persons and numbers. Letters of enquiry may be from not only individuals,
but also from various organizations, institutions, corporate entities and even
government bodies. By its very nature, not much complexity is involved in
such types of correspondence. What is necessary is prompt action. There
should be a commitment at the branch office level to respond promptly to
such enquiries.

Apart from promptness, it is also necessary to ensure that not only is the
required information provided, but also as a matter of concern for the
enquirer, all related information is also made available. Although the letter
itself may be precise and formal, appropriate rate charts, brochures, reports,
lists and tables should be enclosed. Such gestures and prompt responses not
only help in business development, but also in creating a favourable
impression on the minds of those seeking information. The person making
the enquiry is happy that the organization is prompt and keen on doing
business. In a competitive environment, it is often the prompt response
which can make a difference in gaining or retaining customers.

 Orders and Quotations/ Trade References

Orders are placed by business organizations for purchases to be made by

them. It may be for purchase of a commodity, rendering of service,
installation and maintenance or any such activity. Orders are to be specific
and clear. An order is a direct request. An order is not an ‘order’ or a
command. Hence, the statements need to be courteous and yet clear-cut.
Specific areas to be covered while placing an order are as given below:

1. Order Request: The following statements are generally used:

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‘Please send us the following items’

‘We are pleased to place an order with you for the supply of’

2. Description: The order should clearly state the type of items or material,
make or capacity, number of items or quantity and related details
unambiguously.

3. Rate: The rate at which the order is being placed should be clear and
should relate to units or quantities referred to on the quotations as far as
possible. Mention clearly specific details such as rate per piece, rate per
metric ton, rate per 1,000 ml and rate per box of 10 pieces, whatever is
relevant. Mention whether any tax or packaging charges would need to be
paid or whether the rate/amount is all-inclusive.

4. Packaging Specifications: Mention the specifications relating to

packaging, especially considering the breakage, transport and other such
relevant factors.

5. Delivery Schedule: Clearly mention when, where and in which lots the
items ordered are to be delivered. This is especially significant when there
are penalties for delayed delivery. Further, the delivery may not be at one
place and instead may be at different centres/offices. For example, an
organization that is placing orders for calendars or diaries may place a
centralized order but may instruct that the delivery be made to various
offices/branches.

6. Mode of Payment: While placing the order, mention the mode of

payment and terms, if any. Payments are normally done by demand drafts or
cheques payable at specific centres/branches. If payments are in instalments,
such details should be clearly stated.

7. Validity: Any purchaser would like to have the items or goods within a
specific time period, especially when the goods are perishable or seasonal.
The period for which the order is valid has to be stated for ensuring clarity.

 Trade Reference Letter

In an organization, trade reference letters are vital and are employed to

convey official messages. They are primarily written by a person to his
acquaintance suggesting a company that provides a decent business

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opportunity. The organization being recommended is usually one that has
previously conducted business with the referrer over a period of time and
one that matches the profile required by the business. A trade reference
letter briefly encompasses how the writer is acquainted with the organization
being recommended, as well further details about its policies and how was
his/her experience with the organization as a whole. The letter should also
mention why the writer suggests that the reader consider the organization
over other firms.

Status Enquiries- Confirmation

The words enquiry and inquiry mean almost the same and are used
interchangeably. Enquiry relates to the act or process of seeking information.
In everyday correspondence, people in business have to deal with numerous
letters of enquiry. When people need information about products, services,
terms and conditions, margins and discounts, opening and closing, and a
host of such relevant details from banks, insurance companies, traders,
suppliers, transporters and the like, letters have to be sent or calls made. It
could be a traditional letter or an e-mail. Similarly, organizations which
receive such letters of enquiry have to respond by providing the information
sought swiftly and courteously. Two such common types of enquiries in the
world of business are credit and status enquiries. Drafting of such enquiry
letters is indeed quite simple and such letters are considered to be routine
letters.

The main objective in writing such letters is to seek information. The letter
should necessarily be polite and specific about the details sought. Come
straight to the point and state what you want to know. If you want a quick
response, say something nice about the organization or the product. In other
words, make sure your letter of enquiry ends on a note of goodwill. Here are
some examples of credit enquiries:

- ‘Please let me know if you have credited our account for the supplies we
made vide our Bill No. 86/2017 dated October 10, 2017.’

- ‘We shall be thankful to know from you if the maturity proceeds of our fixed
deposit receipt for 50,000 that matured on 6 April 2018 have been credited
to our current account.’

Here are some examples of status enquiries:

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-‘Will you please let us know if the cheque drawn on Canara Bank, Model
Town, Bhopal dated 16 March 2018 for 25,000 sent for collection has been
realized and credited to our savings account no. 3625 with your branch.’

-‘Please let us know if you have dispatched 20 boxes of mangoes to our

regional office in Douala as per our order dated 15 January 2018.’

While we have given above examples of traditional letters of enquiry, it is

worth noting that with internet and mobile banking, e-mail and telephone
communication the need for writing such routine letters has come down
significantly. Letters of enquiry, however, would be relevant when the details
sought are numerous and when a record (document) needs to be created for
having sent an enquiry. With most organizations today having their own
websites giving all relevant details, the need for such routine letters is much
less and arises only when detailed information is sought.

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