BUSINESS COMMUNICATION

UNIT I BUSINESS COMMUNICATION
UNIT STRUCTURE
1:0 Introduction
1:1 Meaning
1:2 Objectives of communication
1:3 Communication Process
1:4 Channels or Types of Communication.
1:5 Barriers to Communication
1:6 Essentials of Effective Business letter
1:7 The Layout and Design of a Business Letter
1:8 Kinds of Business Letters
SELF- ASSESSMENT QUESTIONS: I
1:9 Summary
Unit Questions
Recommendations for further readings
Answers of Self-Assessment Questions

UNIT - I
BUSINESS COMMUNICATION
1:0 INTRODUCTION
The word “Communication” is derived from the Latin
word “communico” which means “To share”. It is the act of
sharing or imparting a share of anything. In its vital sense, it
means a sharing of ideas and feelings in a mood of mutual
understanding. It is a two-way process in which a speaker
must have a listener to share the experience.
Communication is the tool with which we exercise
influence on others, bring about changes in the attitudes and
views of our associates, motivate them and establish and
maintain relations with them. Without communication there
would not be any interaction between persons. Hence, there
cannot be a Government or society without
communication.
The ability of communication depends upon the
advancement of the society he lives. Among human beings,
the more civilized and advance groups have higher communication
ability than the less advanced groups. It is
found that about 75% of the effective hours of a man is being
spent on communication i.e., speaking, writing, listening, reading
etc.
1:1 Meaning
Communication is the act of influencing and inducing
others to interpret an idea in the manner intended by the
speaker or writer. Communication is an exchange of facts,
ideas, opinions or emotions by two or more persons. It is the
process by which information is transmitted between
individuals and/or organisations so that an understanding
response results. We shall now see some of the important
definitions given by eminent authorities on the subject.
Definition
Definition of W.H.Newman and C.F.Summer Jr
“Communication is a exchange of facts, ideas, opinions or
emotions by two or more persons”.
Definition of Fred G.Meyer.
According to Fred G.Meyer, “Communication is the
intercourse by words, letters or messages, intercourse of
thoughts or opinions. It is the act of making one’s ideas and
opinions known to others.
1:2 Objectives of communication
Communication is a process through which different
persons are connected to each other in such a manner to
achieve a common objective. Without communication, group
activity is impossible. It helps the members to co-ordinate
with each other, exchange their ideas and thereby to make
progress.
1. Information:
One of the important objectives of communication is
passing or receiving information about a particular fact or
circumstance. Every organisation whether a small or large, a
complex or a simple require information which is required to
be communicated. Top-level management personnel require
complete, accurate and precise information to plan and
organise. Employees become very efficient and responsible
if they know well about the various aspects of an
enterprise. It can be done either through spoken or written
language or by using any other system of signs. Information
required for daily work can be given orally. If large groups
have to be informed, a meeting may be called.
Information that are required for the organisation are
normally obtained from the sources like old files, personal
observation, Radio, TV, Cinema, Newspapers, Periodicals,
Pamphlets, Government publications, Chambers of
Commerce, meetings, seminars and conferences, personal
interviews with people, questionnaire and trade fairs and
exhibitions.
2. Advice:
Advice is also a kind of information. It means opinion
given as to the action to be taken. Advice is normally given to
a person either to influence his opinion or his behaviour. It
may prove helpful, but it may also lead to disaster. So to make
advice effective, while offering advice, the adviser should keep
the following points in mind:
1. Advice should be related to aspecific piece of
work.
2. It should meet the needs of the recipient.
3. It should not make the recipient to feel inferior.
4. The adviser should make the recipient to feel that
he is being advised for his own betterment.
3. Order:
Order is an authoritative communication. Orders are
absolutely necessary for any organisation irrespective of its
nature and size. It a directive to somebody, normally a
subordinate, to do something, to alter the course of something
he has already done, or not to do something. An order to be
effective-
1. Should be clear and complete,
2. Should be given in a friendly manner,
3. Its execution should be possible.
4. Suggestion:
The term suggestion means proposing something for
acceptance or rejection. Communication is used to convey
suggestion or ideas. This is being constantly done in all human
groups. Someone or the other is making suggestions and other
react to them . This happens in any social group like a family,
office, factory, State, Nation etc. Effective communication
promotes the acceptance and trial of good suggestions.
Subordinates normally give suggestions. This is because, they
are the one’s who are actually involved in the work and have
a better understanding of the shortcomings and can make
useful suggestions for improvements. That is why, in big
concerns suggestions are collected at regular intervals by
means of a suggestion box. Such suggestions are known as
upward communication.
5. Persuasion:
Including, compelling or promoting a person to act
mostly in a positive way is known as persuasion. Persuasion
is an important objective of communication. Management
try to persuade their workers to put in their best effort; sellers
persuade their customers to buy etc. It takes place through
some kind of communication. Persuasion is more easily done
by a person who-enjoys respect and confidence of those
whom he wishes to persuade. However, if persuasion is to be
effective, they must not be conscious of being persuaded.
6. Education:
Education involves imparting instruction, character
building, enriching mental faculties, giving training to human
beings etc. It aims at widening the knowledge and
improving skills. It is carried on at various levels of
management namely, top level, employees’ level and at the
level of outside public. Employees are trained essentially by
communication. All education takes place by means of
communication.
7. Warning:
Warning is a forceful means of communication. It may
be given orally or in writing. Very often, we come across
notices like “No smoking”, “Beware of dogs’, ‘Danger’ etc.
These are some warnings or cautions. In offices and factories,
higher officials give warnings to their subordinates, by
issue of memos.
8. Motivation:
Inspiring the interest in their job in the minds of the
employees in known as motivation. If the people are
adequately motivated, they will have high morale and this will
be low if the level of motivation is low. Low morale is the
basic cause for indiscipline. Motivation determines the
behaviour of a person to a greater extent. In motivation,
employees are motivated in such a manner to work willingly
and eagerly. A motivated worker does not need much
supervision.
9. Counseling:
Counseling is done by a man of greater skill or
knowledge on some specific subject and he offers his counsel
without any personal interest. Companies, which are interested
in their employees’ welfare, have centres to counsel their
employees. It is very much similar to giving advice. However,
there are some differences between the two also. They arei)
Counseling is objective and impersonal,
whereas advice is personal touch.
ii) Counsel is almost professional, whereas
advice is not so, and
iii). Counsel is eagerly sought, whereas advice
is very often unwelcome.
10. Morale Boosting:
Morale is the term usually applied to armed forces
during war time and to sports and athletic teams. It refers to
team spirit and co-operation of people for a common purpose.
Its importance has been realised by the management only
recently. The management feels that if the morale is high,
production would be higher and on the other hand if it were
low, the production would also be low. It is already stated
that motivation and morale are inter-connected and dependant
on each other. If the workers are highly motivated, morale is
also said to be high. On the other hand, if the degree of
motivation is low, the morale is also said to be low.
11. Appreciation:
Praising of initiative, good effort and work by
employees is known as appreciation. It is very useful for
creating a good attitude. It may be conveyed orally or in
writing. If given publicity, it will have better effect.
1:3 COMMUNICATION PROCESS
Communication is a process whereby one person or one
group conveys some information to another person or to
another social group. Communication is a social process for
exchanging information and establishing understanding
between two or more parties. Conceptually, communication
is seen as a two-way process by which people communicate
with one another. The sender, who creates a message designed
to elicit a specific response from the receiver, initiates
communication. The receiver interprets the message according
to his own understanding and sends a message back to the
sender. If the purpose of the sender and the response of the
receiver are inconsistent, the communication process will fail,
and the sender may wish to initiate the process again with
some modifications to the message. Thus, the nature of
communication is considered as a continuous, inter-personal
process.
As shown in the following figure, the sender of the
communication starts with and idea to be shared with the
receiver. Using a set of encoding skills, the sender translates
the idea into a transmittable message. Employing encoding
skills, the receiver converts the idea into a feedback message
to the sender. The sender now uses decoding skills to translate
the feedback and compares that with the original idea. The
sender determines whether the message was properly received
and understood. Often, understanding is not achieved and the
sender must try again. The communication process often
breaks down because the process is replete with barriers to
communication.
1:4 CHANNELS OR TYPES OF COMMUNICATION.
Types of communication can be discussed under the
following two broad heads.
1. On the basis of organisational structure:
1. Formal Communication, and
2. Informal Communication.
2. On the basis of media used:
1. Written Communication, and
2. Oral Communication
1. Organisational Structure
On the basis of organisational structure,
communication can be further classified into two namely,
1. Formal Communication, and
2. Informal Communication
We shall now describe them briefly.
1. Formal Communication:
Formal communication takes place via formal channels
of the organisational structure established by the management.
These channels are deliberately created for regulating the
communication flow and to link various parts of the
organisation. They are helpful for performing functions like
planning, decision-making, co-ordination and control. In a
formal communication system, matters with regard to who
should communicate, what, when and how to be
communicated and to whom to be communicated are all clearly
defined. The formal organisation chart describes the formal
lines of authority, power, responsibility and accountability
of organisational members. All these relationships involve
communication. Formal communications are in writing. There
are three forms of formal communication namely
1. Downward,
2. Upward, and
3. Horizontal.
1. Downward Communication:
Communication is said to be downward when it moves
from the top to the bottom. Downward channels are used for
passing on managerial decisions, plans, policies and
programmes to subordinates down the line for their
understanding and implementation. Downward
communications are used by the superiors to convey their
orders, instructions and directions to their subordinates.
In the words of D.Katz and R.L.Kahn, the purpose of
downward communication are to-
1. Give job instructions.
2. Create an understanding of the work and
its relations with other tasks.
3. Inform about procedures.
4. I n f o r m s u b o r d i n a t e s a b o u t t h e i r
performance.
5. I n d o c t r i n a t e t h e w o r k e r s t o
organisational goals.
However, downward communication suffers from
certain drawbacks. They are..
1. It develops an authoritative atmosphere
that might be detrimental to morale.
2. As information passes through the
various levels of hierarchy, it might be
distorted, misinterpreted etc.,
2. Upward Communication:
Communication is said to be upward when it flows from
the subordinates to the top management. Upward
communication is used by subordinates for transmitting
information, ideas, views and requests to their superiors on
matters relating to their jobs, responsibilities etc.,. Upward
communications are also used to convey views, suggestions,
grievances and problems of subordinates to their superiors.
It enables the subordinates to communicate to the superiors
the progress of the work and response to the work assigned to
them. Upward communication may be oral or written. It also
enables the management to know he extent to which the subordinates
understand the policies and programmes of the organisation.
3. Horizontal Communication:
Communication is horizontal when it flows between
individuals at the same operational level i.e.,. between two
departmental heads. The purpose of the horizontal
communication is to enable managers and others of the same
rank to interact on important matters, to exchange information
and co-ordinate their activities without referring all
matters to the top level management
2. Informal Communication
Informal Communication is free from all the formalities
of formal communication. It is based on the informal
relationship among the members of the organisation. Informal
communication is usually oral and may be conveyed by a
simple gesture, glance, nod or smile. The informal relationship
that supplements the formal organisational relationship is
referred to as the ‘grapevine’. According to H.Koontz and
O’Donnel,
“the grapevine, of course, thrives on information not
openly available to the entire group, whether because it is
regarded as confidential, or because formal lines of communication
are inadequate to disperse it, or because it is of
the kind that would never be formally disclosed”.
Informal communications are made by members of the
organisation to transfer information both on the matters of
task related and non-task related. These communications are
free from any trappings of authority and status differentials.
Informal communications often serve as supplement to formal
communications. Managers and others may sometimes pass
on information informally which they would not like to
transfer formally for strategic and practical reasons.
II. Media Used:
On the basis of media used, communication can be
classified into four namely
1. Oral communication
2. Written Communication
3. Non-verbal Communication and
4. Audio-Visual Communication
1. Oral Communication
Oral communication refers to face to face
communication. It offers interchange of ideas at the personnel
level. There can be questions and answers . The sender and
receiver of the message are in direct contact. If the listener does
not understand the message, he can ask for a clarification or
raise questions and get the answers. If matters are to be conveyed
within an organisation, oral communication is considered as the
best as well as the cheapest method of communication.
Especially, it is of vital importance in handling difficult or
complicated situations.
Merits of Oral Communication
Merits of oral communication are as follows:
1. It is economical when compared to written
communication.
2. It is more flexible and can be effectively
combined with gesture and other expressions.
3. It is more effective on account of direct
contact between the communicator and
communicatee.
4. It leads to better understanding because
response to the message can be obtained on
the spot, and doubts, clarifications etc. Can
also be removed quickly.
5. It is faster and saves time.
Demerits of Oral Communication
Oral communication has certain demerits. They are:
1. It is not suitable in cases where the message
is long and complicated, when the audience
is large and when there is no need for
interaction.
2. It does not provide any record for future
reference.
3. It is time consuming and costly.
4. It cannot be used as a communication media
where people scattered over a wide area.
5. It can be irritating and wasteful when the
persons involved are poor in talking skills.
2. Written Communication
Written communication, on the other hand, is very wide
in its scope and covers entire paper work relating to all kinds of
transactions, agreements, proposals etc,. Infact, the main work
of any office is written communication. Written communication
though has a place inside the organisation, it is of paramount
importance in conveying messages to the external world. Though
modern devices such as telephone etc. have lessened the
dependence on writing, it still serves as the main channel for all
the business transactions. This is because, a written communication
can carry assurance of transactions, confirm the dealing
and form a reliable record for future reference. Besides, it is
the cheapest method of contacting the external world. Hence,
it saves money as well as time. Moreover, people place more
reliance in pen than in the tongue.
Merits of Written Communication:
There are certain obvious advantages in written
communication.
1. Letters or written communications can be kept
as a legal record.
2. They can be retained for purpose of future
reference.
3. They are formulated more carefully than oral
communication.
4. They can save money and time.
5. The written communication is used for all
practical purposes in every organisation.
Limitations of Written Communication:
A written communication, though has many points to its
credit, is not an unmixed blessing. It too has certain definite
limitations. It is not suitable under all circumstances. The
following are the situations in which a written communication
is unsuitable.
1. Complicated Matters:
Complicated or difficult matters cannot be handled
through written communication.
2. Confidential Matters :
Confidential matters cannot be reduced to writing
3. Instructions and Clarifications:
Instructions to a subordinate cab be best given orally
than in writhing. If the subordinate seeks any clarification,
he can get it at once.
4. Assessing the Reaction:
The reaction of the receiver can be best assessed only in a
face to face communication.
5. For Expressing the Feelings:
When two persons are talking, many matters can be said
expressly. But many matters are left unsaid or said by
implication i.e. understood. This is impossible through a written
communication.
3. Non-verbal Communication
All the communication that occurs in between the people
in an organisation may not be spoken, heard, written or read. In
other words, all the communication is not verbal. Some may be
non-verbal i. e. unwritten and unspoken. The most 5 important
aspect in communication is “to hear what is n’t being said”.
Sometimes , the non-verbal message also helps in carrying a
verbal message. E.g. smiling while greeting your colleague.
Mostly, non-verbal messages are spontaneous. However, it does
not mean that they are less important. Then on-verbal communication
includes the pitch and tone of the voices, body
movement, physical appearance, time, touch, space and territory.
The common types of non-verbal communication in business
are detailed as shown below.
1.Body Movement:
Body movement as a media of communication can be
discussed under three heads namely,
(i) Facial expression,
(ii) Gestures, and
(iii) Body stance.
i) Facial Expression:
Successful communicators use facial expression as a very
effective media of communication. The most expressive part of
human body is face-especially eyes. Eye contact and eye
movements tell a lot about a person. Hence, normally receiver
of oral communication give much attention to facial expression
while receiving the message. This is because it will give a lot
of information about the inner feelings of the communicatee,
which can’t be understood otherwise. However, if a subordinate
committed a serious mistake , executive may show anger on his
face. If this is the case the subordinates may feel very bad and
act indifferently. So most of the executives now -a - days learnt
to scold the subordinate with a feeling of concern for him. This
type of approach motivates the subordinates to improve their
work performance.
ii) Gestures:
Gesture is a motion of the body or limbs. It is an action
intended to express the idea of feeling or to enforce an argument.
Gesture includes hand and upper body movements. They
provide a lot of important information to face- to - face
conversations. They are used to reinforce your verbal message.
iii) Body stance:
Body stance is another form of non-other communication.
It includes posture of standing, placement of arms and legs,
distribution of weight etc. By seeing the standing position of a
person, one can understand whether he is interested in the talk
or feel very bore etc. For example, leaning slightly towards the
communicator would be taken as a sign of interest and
involvement in the talk, whereas leaning back might be taken as
a sign of boredom.
2. Physical Appearance:
Physical appearance of a person is important for creating
a good impression. This is because attractive people tend to be
seen as more intelligent and more likeable than unattractive
people are. So they can earn more. One can not change all of
his physical features. Some are changeable and others not.
However, understanding the importance of physical appearance
can help any body to emphasise their strong points.
One’s clothing, Jewellery, furnishings at home and office
provide information about their value, taste, status, age etc.
Hence, we should give due weightage to these aspects also to
get a good appearance.
3. Voice Qualities:
No one speaks in single tone i.e. in an unvaried pitch of
the voice. Voice qualities include volume, speed, pitch, tone,
and accent. They carry both intentional as well as unintentional
messages.
Based on the pitch of the voice, the circumstance when it
was conveyed etc., same sentence might carry different meanings.
For e. g. while answering the question who was late? Say you
were late, the emphasis is given to the word “you” i.e. the
answer here is you for the question who was late? Whereas while
responding to the other person’s denial of being late say you
were late, emphasis is given to “were”. However ,while stressing
how late the person was, say you were late emphasis is given
to the word “late”.
4. Space and Territory:
Different types of communication occur at different
distances. Competent communicators determine their own
personal space needs and those of others. They make the
necessary adjustments to facilitate achieving his objective while
communicating with people who prefer more or less space.
Edward T. Hall in his work, “The Hidden Dimension” has
stated that the psychologists have identified four zones within
which people interact.
i) Intimate Zone:
Intimate zone extends from physical contact to about 18
inches where all your body movements occur. This is the area
in which you move throughout the day. It is an area normally
reserved for close, intimate interactions. Business associates
typically enter this space infrequently and only briefly perhaps
to shake hands or pat someone on the back
ii) Personal Zone:
This Zone, extending from 18 inches to about 4 feet, is
where conversation with close friends and colleagues takes place.
Unlike inter action in the intimate zone, normal talking is the
frequent in the personal zone. Some, but not a great deal of,
business interaction occurs here. For example, business launches
typically occur in this zone.
.
iii) Social Zone:
Social zone extends from 4 feet to 12 feet. This is the
zone where most business exchanges occur. Informal business
conferences and staff meetings occur within this space.
iv) Public Zone :
The public zone extends from 12 feet to as far as the eye
can see and the ear can hear. This is the most formal zone, and
the least significant interactions occur here. Because of the great
distance, communication in the public zone is often one way, as
from a speaker to a large audience.
4. Audio- visual communication
Audio-visual communication uses the methods that
are seen and heard. It makes use of short films, slides, video
tapes, telecasts etc. Examples are small advertisement films, or
documentary films related to social issues etc. Screened just
before the main picture.
Audio-visual communication combines both sight and
sound to attract the attention of the communicatee. If it is of
only visual communication, people may just casually look at it
and forget afterwards. But if audio is also combined with visual
aids, the message conveyed will be retained much longer than
through other media. It is most suitable for mass publicity, propaganda
and mass education.
1:5 BARRIERS TO COMMUNICATION
Communications fail due to various reasons.
Sometimes, subordinates may not be receptive. Sometimes,
the superiors lack in their expression. Besides, some other
barriers may also come into operation. The various barriers to
communication can be discussed as below.
1. Perception:
An individual’s view of reality is known as perception.
Two individuals do not see things exactly alike. People differ
greatly in the way they perceive things and events. Even a single
individual has different perceptual styles depending on time and
circumstances.
Hodgetts say that, “the sender’s meaning and the
receiver’s interaction are not always identical, but it is not
necessary that they be so”. This is the basic barrier to
communication.
2. Semantic or Language Barriers:
Language serves as the basis for the communication. It is
the medium through which views are conveyed. Sender should
select the words and construct the sentences carefully. Words
that are used to convey messages have several meanings. The
sender selects the words as per his own frame of reference and
which he thinks will convey the meaning he proposes to
communicate. On the other hand, the receiver reads or listens to
the message and interprets it within his own frame of reference.
As people vary in their experience, knowledge of the language
etc., there is a possibility of semantic distortions. Thus, semantic
difficulties come in the way of clear understanding.
3. Perfunctory Attention:
If receiver pays very little attention to the message,
communication in the sense of transfer of information and
understanding will fail. When the employee is pre-occupied with
a number of problems, sender faces such problem. In this case,
employee should be made to keep away his problems and listen
to the message. If this is not done, he cannot proceed the
communication further.
4. Status:
One of the basic barriers to communication arises due to
status relationship that exits in every organisation. The superior
subordinate relationships in the organisational structure inhabit
free movement of information and understanding, exchange of
ideas, views etc.. Generally those who receive communication
judge the sender and naturally sender’s status has its own weight.
For e.g., any communication received from the management is
viewed as troublesome by trade unions; any message from
workers will be discounted by management etc.
5. Resistance to Change:
Generally, people resist changes. Resistance to changes
will be strong when the proposed change is great. Managers
should take all possible steps to overcome such resistance to
change. One method of overcoming resistance is explaining
the subordinates as to how they will be benefited by such changes.
6. Organisational Structure:
Effective communication depends greatly sound
organisational structure. If the organisational policies, rules and
procedures are not clear, smooth flow of communication cannot
be ensured. If the organisational structure has several layers of
management, it may result in delay and distortion in
communication. Lack of facilities that ensures effective
communication is another barrier that comes in the way of clear
understanding.
7. Premature Evaluation:
Premature evaluation refers to a tendency of forming a
judgement before listening to the message fully. Premature
evaluation misrepresents the message. Thus, it acts as a barrier
to effective communication.
8. Emotional Attitude:
Emotional attitude of the parties involved in the exchange
of information is another barrier to effective communication.
When an individual is emotional, he may not be able to know
the frame of mind of other person.
9. Failure to communicate:
Failure to communicate is a pervasive barrier to
communication. The communicator may be lazy or it may be
assumed that everything is known to all. Sometimes, failure to
communicate may also arise from an intention to embarrass the
receiver or from complexes like superiority, inferiority or due
to status difference, Communication also has no impact on those
who are not willing to listen / read the message.
10. Other Barriers:
Other barriers include faulty translation, badly expressed
messages, loss by transmission, lack of attention, unclarified
assumption, inadequate adjustment period and communication
distrust.
1:6 ESSENTIALS OF EFFECTIVE BUSINESS LETTER
All type of business letter must confirm to certain well
recognised principles and should possess certain essential
qualities. Business letters devoid of universally accepted
requisites will prove ineffective.
The essential of a business letter can be analysed under
the following heads.
(i) The structure of a business letter.
The structure of a business letter refers to the proper
arrangement of the various parts or the different elements of
a business letter. To give the letter the right look and to ensure
clarity and convenience, the letter should consist of the following
components.
1. The Heading.
2. The Date.
3. The Inside Address.
4. The Salutation.
5. The Body of the letter.
6. The complimentary Close.
7. The Signature.
Each of these part has a definite place and position in
all business letters.
1. The Heading
Almost all business firms use printed letterheads for their
correspondence. Generally, the name and the address are
printed on the top of the letterhead but it frequently gives
other particulars such as the description of business, the telephone
number, the telegraphic address, the telex number, Fax
number, E-mail address etc. The letterhead of the large concern
may give the addresses of its branches and that of a branch
may give the address of its head office. To give a balanced
appearance to the letter, nearly one fifth of the total space
should normally be used for the heading .

2. The date
This gives the date of the month and the year. It appears
on the right hand side of the letterhead about five spaces below
the heading. Some letterheads contain a printed line
indicating where the date should be typed. In England, the
usual method of indicating the date is to state it in original
numbers such as Ist March 2000. In U.S.A., it is usual to state
the numbers of month before the date in cardinal numbers
e.g. March 1, 2000. Some people omit the comma after the
date and the full stop after the year, but it is generally
considered correct to use them.
The practice of writing the date as 1-3-2008 or 1/3/2008
should be avoided because it would give rise to errors,
particularly in foreign correspondence. For example, in U.S.A.
1/3/2008 would been January 3rd, 2008 while in England and
in other Common Wealth Countries it would mean as 1st
March 2008.
3. The Inside Address
This gives the name and full address of the person, firm
or company to whom the letter is written. It is one of the
essential ingredients of the physical make up of the business
letter. It is generally typed two lines below the date line and
above the salutation on the left-hand margin of the letterhead.
Importance of Inside Address
The typing of inside address is highly useful in many
ways. They are:
1. This will provide the despatch clerk all the
particulars that are necessary for writing
the address on the envelope.
2. If window type envelops are used, the inside
address is a must.
3. Since it is also imprinted on the office copy
of the letter, it will be easy to identify the
number and the nature of the letters sent out
to specified parties.
4. The Salutation
The salutation is the similar to greeting like ‘good
morning”, “good day”, “good afternoon” etc. used by us in
social life. It is written about three spaces below the inside
address.
The form of salutation depends on the personal relation
between the writer and the address as well as upon the letter’s
rank or position.
The following are the usual forms used in business letters.
Sir, Dear Sir, Dear Sirs, Gentlemen, Dear Mr. Raveen,
Madam, Mesdames etc.
5. The Body of The Letter
This is the most important part of the letter. The ultimate
object of a business letter is to convey a message. The body
of the letter contains the principal message to be conveyed to
the other party. Hence the other parts, though necessary, are
only subordinates to the body of the letter. It is no exaggeration
to say that the whole of this book deals with the writing of the
body of different types of letters. Therefore, the writer should
take utmost care to set out the matter clearly. The matter
should be properly arranged and presented in a logical manner.
In this connection, Mr.L.Gartside suggests the
following points which the reader should always bear in his
mind.
1. Write simply, clearly, politely, grammatically
and to the point.
2. Paragraph correctly confining each
paragraph to one topic.
3. Avoid stereo typed phrases and commercials.
6. The Complementary Close or Subscription
The complementary close is merely a courteous leave
taking. In other words, it is merely a polite way of ending a
letter. It is like the salutation, conventional in form and
meaning. A letter without a close or an appropriate close is
vulgar and ineffective.
The complementary close is written three spaces below
the last line of the body of the letter and just above the
signature.
7. The signature
The signature follows immediately after the
complementary close. It is usually written in black ink.
Facsimiles can be used only in case of circular letters.
Since the letter binds the signatory, the signature has
assumed great importance. A person may sign in different
letters in different capacities. Therefore, the signatory
should clearly indicate the capacity in which he signs. For
instance, if the person signs in his individual capacity, his
signature does not bid the firm.
If he signs as a representative of the firm, he is not
personally liable. Therefore, care should be taken while
signing the letter.
1:7 THE LAY-OUT AND DESIGN OF A BUSINESS
LETTER
The overall arrangement and appearance of the different
parts of a letter is called its lay-out. It refers to the
arrangement of the various parts of a finished letter and to the
neatness and spacing of the written matter.
With the advent of computers in almost all offices, the
computer itself does the job of a suitable format and alignment
proportionate to the matter therein were the conventional layout
refers to-
(i) Arrangement of a letter proper on paper.
The arrangement of the typed area on the sheet of paper
should look good. As a rule, the body of the letter is expected
to start two spaces below the salutation and end two spaces
above complimentary close. The body should be aligned on
the right hand side with the first line of the inside address of
the person to whom the letter is written.
(ii) Margins.
The right hand and left hand margins should be of nearly
equal width, even though the former may be a little wider
than the latter. The margin should not be less than an inch
wide, in any case. However, an inch and a half is generally
preferred. The margins on the sides should be about 2/3rd as
wide as those at the top and the bottom in order to see that the
letter looks well spaced.
(iii) Spacing.
It is better to use single spacing between the lines, with
double spacing between the paragraphs. However, if the letter
is short, double-spacing may be used throughout, with the
first line of each paragraph indented to indicate the necessary
divisions.
(iv) Forms of Indentions.
We come across four ways in which letters are typed
and indented. (a) Block or straight edged form; (b) Indented
or stepped-inform; (c) Semi-blocked or combination form; (d)
Hanging indention form. Of these the first three are more
popular than the last.
(a) Block or Straight-Edged Form
It is the most popular form used at present. Indention
is avoided. The introductory address, salutation and body
paragraphs are aligned right from between the paragraphs
which are indented.
This is the most symmetic form. It saves time for the
typist as there is no need to shift the carriage of the typewriter
too often.
(b) Semi-Block or Combination Form
This form of lay-out is combination of the Block and
Indented forms. The heading and the inside address are in
Block form while the initial line of each paragraph of the text
is indented five to ten spaces. This enables to identify clearly
the separated paragraphs of the letter.
Both these forms are usually accompanied by open
punctuation, i.e., no terminal marks punctuate the lines of the
heading and those of the inside address.
(c) Indented or Stepped-in Form
Here the lines of the inside address and the opening
line of each paragraph begin a few spaces away from the
margin. The lines of the inside address are indented five
spaces to the right of the first letter of the preceding line above.
Close punctuation is adopted in this form. There is a mark of
punctuation for each line of the inside address.
The full-stops are marked at the end of the last line of the
letter-head and the inside address. The intervening lines of
both are followed by commas.
(d) Hanging Indention Form
In this form the inside address and the salutation are
typed in BlockForm. The first-line of each paragraph in the
body of the letter commences right at the left-hand margin
but the subsequent lines are indented five or more spaces.
Single spacing is used between the lines with double spacing
between the paragraphs. This form is not much used.
However, it is favoured in sales letters to draw the attention
of the customers. It is suitable for letters of a very informal
character that can stand novelty.
1:8 KINDS OF BUSINESS LETTERS
In every business concern, Letters have to be
drafted and sent to the customers on various occasions.
Therefore, business letters depending on the occasion in which
they are sent can be classified as under;
1. Letters of inquiry seeking information about the
required grades and replies.
2. Offers and acceptance.
3. Orders and their execution
4. Credit and status enquiry
5. Claims and adjustments.
6. Collection letters.
7. Circular letters.
8. Sales letters.
9. Banking correspondence
10. Insurance correspondence
11. Export and import correspondence
12. Agency correspondence
13. Transport correspondence
14. Secretarial correspondence
15. Correspondence with the Government
16. Public relations letters.
The above classification is purely a matter of convenience.
The techniques of drafting these letters will be
discussed in subsequent chapters.
SELF- ASSESSMENT QUESTIONS
Answer the following questions
1. Communication is an exchange of __________ by two
or more persons.
2 Face - to - face Communication becomes more effective
if accompanied with appropriate body language.
True / False
3. Match the following
1.Written communication - a. accurate
2. Oral communication - b. Permanent record
3. Information must be - c. Immediate feed back
1:9 SUMMARY
Communication is a process whereby one person or one
group conveys some information to another person or to
another social group. Formal communication takes place via
formal channels of the organisational structure established
by the management. Informal Communication is free from all
the formalities of formal communication. Communications fail
due to various reasons is called barriers to communication. The
essential of a business letter is to be analyses throughly in the
end portion of this chpater.
UNIT QUESTIONS
1. Define communication.
2. What are the objectives of communication?
3. What are the process of Business Communication?
4. Name the various methods of business communication.
5. What are the advantages and disadvantages of oral,
written communication?
6. State the main barriers to communication.
7. Is communication essential to business?
8. List out the kinds of business letters.
9. Explain the layout of good Business letter.
10. Explain the various essential of a good business letter.
RECOMMENDATION FOR FURTHER READINGS
1. Business communication - M.S. Ramesh,
CC.Palkan shethi,
Madhumati,
2. Business communication
& Customer Relations - Dr. C. B. Gupta
3. Business communication - Kathiresan & P.R. Radha
4. Essentials of Business
communication - Rajendra pal,
J.S.Korcahalli
ANSWERS OF SELF- ASSESSMENTS QUESTIONS:
1. Facts, ideas, opinions, or emotions.
2. True
3. 1-b, 2-c, 3-a