Business Communication Unit 1

Unit 1 Basic Principles of Communication

Structure:
1.1 Introduction
Objectives
1.2 Communication - Meaning
1.3 Communication Process
1.4 Barriers to Communication
1.5 Classification of Communication
1.6 Importance of Communication in the Workplace
1.7 Summary
1.8 Glossary
1.9 Terminal Questions
1.10 Answers
1.11 Case Study

1.1 Introduction
Communication is an important component for success in our personal and
professional lives. It is the key to building favourable relationships. It is a
part of ‘soft skills’, as opposed to domain or technical knowledge, which is a
part of ‘hard skills.’ A formal study of business communication is important,
since the average business executive today spends a good part of his time
on the job communicating in some form or the other. In this unit, we will
discuss how communication involves certain key elements, no matter in
what context it takes place. We will also examine some of the general
problems that come in the way of smooth communication and ways of
overcoming these problems.

Telecommuting is a work arrangement in which employees work from a

remote location usually their homes and communicate with their company
using electronic means. It is flourishing both in Australia and other
countries. Telecommuting may significantly decrease interpersonal
communication requirements and is therefore affecting effective
communication.
Meyers, N., & Hearn, G. of the Queensland University of Technology
conducted a survey on about 39 telecommuters working for 12 different
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Australian organisations. The participants were working in the following

different categories:
 Administrators
 Computer system designers
 Journalists
 Legislative drafters
 Managerial consultants
 Project workers
 Public relations consultants/executives
 Sales-marketing personnel
 Solicitors
About 46% of the participants of the survey were female telecommuters.
Meetings were considered an important formal office communication.
Meetings were conducted based on the following three situations:
 Complexity of task and required feedback
 Management predictions for contacting their telecommuters
 Need for currency of information
Thus the meetings were expected to happen zero times or weekly.
The satisfaction levels of telecommuters varied across the three
situations. For example, the sales-marketing telecommuters, met with
their superiors weekly, to share what they were doing and set goals for
the week.
About 18% of the participants found meetings either difficult to attend or a
disturbance to their work-at home schedule.
Also, the lack of communication on the meeting schedules made few
telecommuters miss the meetings.
Daily telephone or other forms of contact was the main means of
communication for nearly 30% of telecommuters. Daily communication
through channels like e-mail, telephone was viewed as the important way
of communication for sales-marketing telecommuters. Once the
communication patterns were established, the telecommuters began to
use two-way communication.

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Other participants of the survey pointed out that co-workers were

reluctant to call them at home. Consequently, they sometimes did not
receive critical information on time. Some participants pointed out that
they did receive memos even though they were absent. Memos were
considered an important part of formal communication and could be
related to another interview theme: timeliness of communication.
Timeliness of communication is more important for telecommuters since
they lack proximity and quick referral to co-workers as well as other
information.
(Source:
http://www.teleworkaustralia.net.au/doclibrary/public/Research/AJCArticle
MeyersHearnTelecommuting.pdf)

This unit answers questions like:

What is the meaning of communication?
What are the elements involved in communication?
How can we overcome the barriers to communication?
What are the different categories of communication?
Why is communication important in an organisation?
Objectives:
After studying this unit, you should be able to:
 describe the characteristics of communication
 describe the key elements in the communication process
 identify the barriers to communication and suggest ways to overcome
these barriers
 recognise how good communication contributes to managerial success

1.2 Communication – Meaning

Communication in simple terms is a transfer of information between people,
resulting in common understanding between them.
Communication has been defined differently by different writers and
behavioural theorists.
Some popular definitions are as follows:
 According to Newman and Summer, ““Communication is an exchange of
facts, ideas, opinions or emotions by two or more persons”.
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 According to Allen Louis, “It is the sum of all the things one person does
when he wants to create an understanding in the mind of another”.
 Bellows, Gilson and Odirone define communication as “A communion by
words, letters, symbols or messages, and as a way that one
organisation member shares meaning with the other”.
 Hoben defines communication as “The verbal interchange of thoughts or
ideas”.
 In the words of Anderson, “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”.
 According to Berelson and Steiner, “Communication is the transmission
of information, ideas, emotions, skills, etc. by the use of symbols, words,
pictures, figures, graphs, etc”.
 In the words of Fotheringham, “Communication is a process involving
the selection, production and transmission of signs in such a way as to
help a receiver perceive a meaning similar to that in the mind of the
communicator”.
From all these definitions, it is clear that communication has the following
characteristics:
 It is unavoidable – It is impossible not to communicate, since we
communicate unintentionally all the time, even without the use of words.
Our body language, the way we dress, the importance we give to
arriving on time, our behaviour and the physical environment in which
we work, all convey certain messages to others.
 It is a two-way exchange of information – Communication is sharing
of information between two or more persons, with continuous feedback.
 It is a process – Each message is part of a process and does not occur
in isolation. This means that the meaning attached to a message
depends on what has happened before and on the present context. For
example, your boss’ response to your request for a promotion will
depend on your past relationship with him, as well as his mood at that
particular moment.

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 It involves a sender and a receiver of information – Any

communication starts with a sender of a message and requires a
receiver to attach some meaning to that message.
 It could be verbal or non-verbal – Communication could be through
the use of words in spoken or written form, or through the use of body
language such as gestures and facial expressions.
 It is successful when the receiver interprets the meaning in the
same way as that intended by the sender – The receiver may not
always attach the same meaning to a message as the sender. When the
message is wrongly interpreted, the communication is a failure. This
may be due to several reasons, which we will examine later in this unit.
 It is a dynamic process – Communication involves sharing of thoughts
and experiences in a meaningful manner while assimilating, processing,
and responding to the person one is talking with. The mode and manner
of communication may vary according to the situation.
 It enables understanding – Communication enables people to
understand the necessity for change, the reasons for performing certain
things, the method of implementing processes, and the importance of
their actions.
Self Assessment Questions
1. Communication is sharing of information between two or more persons,
with continuous ______________.
2. The receiver may not always attach the same meaning to a message
as the ___________.
3. Communication can occur in isolation. (True/False)

1.3 Communication Process

Let us now look at communication as a process and discuss its key
elements.
Irrespective of the setting in which communication takes place or the
number of people that are involved, all communication consists of certain
key elements. The communication model shown in figure 1.1 illustrates each
of these elements.

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Figure 1.1 depicts the elements in the communication model.

Fig. 1.1: Communication Model

The elements involved in communication are:

 Sender or encoder – This is the person who transmits a message. For
example, a manager writing a letter to a consultant after a meeting or a
sales manager making a presentation to the sales team. Here the
manager is the sender
 Receiver or decoder – The person who notices and decodes, or
attaches some meaning to a message. Decoding may not always be
accurate and a wrong meaning may be attached to a message. For
example, a friendly joke might be taken as an offence, or feedback given
to a subordinate by a superior might be taken in the wrong sense.
 Message – This is any signal that triggers the response of a receiver.
Messages may be intentional (as in the example of the sales
presentation by a manager to the sales team) or unintentional (non-
verbal signals such as yawns that convey the message of boredom).
 Channel – This refers to the medium or the method used to deliver the
message. As a business executive, you will often have a choice of
channels. For example, you could communicate with a customer through
a letter, email or telephone.
 Feedback – Most communication is two-way. Receivers generally
respond to messages. For example, students may ask questions during
a lecture session and an employer may tell an employee that he has to
think about his proposal. This response to a sender’s message is called
feedback. This kind of feedback is oral. Sometimes feedback can also
be given in a written form. For example, a manager can send a written
response to a customer’s letter of complaint. At other times, feedback
could be non-verbal, as in smiles and nods of appreciation during a talk
or presentation. Even failure to respond could be considered as
feedback, since it may indicate a lack of interest or indifference to the

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sender’s message. Due to the element of feedback, people are

simultaneously senders and receivers of information in face-to-face
communication.
 Context – This refers to the setting in which the communication takes
place and could sometimes determine the success or failure of the
communication. Context can be classified as follows:
o Physical context – This refers to the physical surroundings. For
example, a work or social environment, in which the communication
takes place. Asking your boss for a promotion might be received
differently, depending on whether the communication takes place in
your office, your boss’ office, at a company party or over lunch at a
restaurant.
o Social context – This refers to the relationship between the sender
and the receiver. Taking the same example, asking for a promotion
is likely to be received differently, depending on how well you get
along with your boss and whether you are personal friends or not.
o Chronological context – This refers to time related factors that
could influence the communication. For example, is your request
made first thing in the morning or at the fag end of the day? Is it
made during or after work hours? Is it made at a time when the
company is going through problems such as a strike in the factory, or
major losses?
o Cultural context – This refers to the similarity of backgrounds
between the sender and the receiver, such as age, language,
nationality, religion and gender. These factors could influence the
communication favourably or unfavourably.
Each of these key elements contributes to the success of the
communication. In other words, communication can go wrong if any of the
following elements go wrong:
 The wrong person sends the message. For example, a junior accountant
in a company writing a letter to a bank, asking for a loan for a project
worth several crore, is not likely to get the bank’s approval.
 The message is unclear or badly worded. There may also be too many
messages, leading to confusion and information overload.

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 The wrong channel of communication is chosen. Placing an ad for a

liquor product in a religious magazine for example, is not likely to be
received favourably.
 The message is wrongly interpreted, i.e., the receiver attaches the
wrong meaning to the message.
 The feedback is not adequate to ensure understanding.
 Physical, physiological or psychological noise distorts the message.
 The communication takes place in the wrong physical, social,
chronological or cultural context.
This brings us to the next topic, namely the barriers or obstacles to effective
communication.

Activity 1:
Select any situation at your home, workplace or school/college in which
you were involved. Prepare a brief summary of the communication
process, using the various elements of communication discussed in this
unit.
(Refer section 1.3 for detailed guidelines.)

Additional Reference:
McLean, S. (2010). Business Communication for Success. MA: Allyn &
Bacon.

Self Assessment Questions

4. Encoder is the person who transmits a message. (True/False)
5. A channel is any signal that triggers the response of a receiver.
(True/False)
6. You feel that your professor does not have anything new to say and
you do not listen to him. This is an example of physiological noise
leading to communication failure. (True/False)
7. Your boss gives you a good performance review at a time when the
company is making profits. This is an example of chronological context
influencing the communication. (True/False)

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8. Which of the following is a psychological noise?

a) Lack of interest
b) Poor acoustics
c) Information overload
d) Fatigue

1.4 Barriers to Communication

Communication fails when the message received is not identical to the
message that is sent. Several factors could interfere with the exchange of
messages.
‘Noise’ refers to all these factors that disrupt the communication and can be
classified under the following types:
 Physical noise – Distracting sounds, poor acoustics, or just information
overload could interfere with the listening process.
 Physiological noise – Hearing or other disabilities, fatigue, or physical
illness could come in the way of both speaking and listening.
 Psychological noise – Sometimes emotions within the sender or
receiver such as preoccupations, hostility, fear or lack of interest could
interfere the speaking or listening process.
There are many other barriers to communication, an understanding and
analysis of which are needed before coming up with ways to eliminate or
minimise them.
Figure 1.2 depicts the barriers to communication.

Fig. 1.2: Barriers to Communication

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As shown in figure 1.2, the barriers to communication may be classified as

follows:
 Environmental barriers – An environmental barrier is the same as
physical noise, which could be in the form of distracting sounds, an
overcrowded room, poor facilities and acoustics, all of which may hinder
the ability to listen to and understand the message.
 Individual barriers – A major barrier to interpersonal communication is
a tendency to judge, evaluate, approve, or disapprove the views of
another person. This happens particularly in situations where we have
strong feelings about something. In such cases, we tend to block out the
communication and form our own viewpoints.
 Organisational barriers – In organisations that are too hierarchical, that
is, where there are multiple ‘layers’, messages may have to pass
through many levels before they finally reach the receiver. Each level
may add to, modify or completely change the message, so much so that
it becomes distorted by the time it reaches the intended receiver. In
other words, there is likely to be loss of meaning and the message may
not reach the receiver in the same way as it was intended by the sender.
The following example illustrates an organisational barrier to
communication. By the time the message is passed down from the Chief to
the lower level executives, it is distorted completely, to the extent that the
original message is interpreted differently by each level in the organisation.
The Chief of the Space Centre gets to know about the possibility of seeing
Halley’s Comet and decides that the entire organisation should witness this
spectacle. He sends the following memo to the Director.

Tomorrow evening, at 20:00 hours, we will be able to see Halley’s Comet

in the sky through the naked eye. Since this is not an everyday event,
everyone at the Centre should assemble outside in their best clothes to
watch it. If it rains, we will not be able to see it very well, in which case
everyone should assemble in the Canteen.
To Director By order of the Chief

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The Director then sends the following memo to various Executive Directors:

By order of the Chief, we will be able to see ‘Halley’s Comet’ at 20:00

hrs, tomorrow evening. If it is raining, we shall not be able to see it very
well on site, in our best clothes. In that case, the disappearance of the
Comet will be followed through in the Canteen. This is something which
we cannot see happening every day.
Director
To
Executive Directors

The Executive Director sends out memos to the Heads of Departments as

follows:

By order of the Chief, we shall follow through, in our best clothes, the
disappearance of the Comet in the Canteen at 20:00 hrs, tomorrow
evening. The Chief will tell us whether it is going to rain. This is
something which we cannot see happening everyday.
Executive Director
To
Heads of Departments

The Heads of Departments send the following message to their Managers:

If it is raining in the Canteen tomorrow evening, which is something we

cannot see happening everyday, our Chief in his best clothes will
disappear at 20:00 hrs.
Head of Department
To
All Managers
Finally, each Manager sends the following notice to their Executives -

Tomorrow evening, at 20:00 hrs. our Chief will disappear. It is a pity that
we cannot see this happening every day.

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Another type of organisational barrier is a ‘departmental barrier’. This means

that each department in an organisation functions in isolation and there is no
co-ordination or communication between them.
 Channel barriers – In the earlier section, it was pointed out that
communication can fail due to any of the different elements going wrong.
Wrong choice of channel is one of the main barriers to communication.
Using a wrong medium of advertising, or conveying a message orally
when a written letter would be more appropriate, are examples. The
written channel is more appropriate when the communication is more
formal or for keeping things on record, while emotional messages such
as feelings about co-workers are better conveyed orally.
 Linguistic and cultural barriers – When the sender of the message
uses a language that the receiver does not understand, the
communication will not succeed. Either the sender may be using a
different or foreign language, or the language used may be too highly
technical for the receiver to understand
Linguistic barriers may also occur in cross-cultural advertising and distort
communication, when translating campaigns or slogans literally from
one language to another. For example, Pepsi’s slogan “Come Alive with
Pepsi”, when translated into Chinese, read “Pepsi brings your ancestors
back from the grave!”. Many accidents have happened in air because
the pilot, who is of foreign origin, has not followed properly the directions
given by the Air Traffic Controller who speaks Indianised English.
Cultural differences refer to differences in values and perceptions, which
may affect the interpretation of the message by the receiver. For
example, a joke about women may be taken in the wrong sense if the
receiver belongs to a culture in which women are highly respected.
 Semantic barriers – The word ‘semantics’ refers to the meaning of
words and the way in which they are used. For example, different words
may have different meanings in different cultures. Failure to take this
into consideration could lead to serious blunders.
Example – Saying ‘The new product launch went like a bomb’ in British
English would mean that the new product launch was a success.

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On the other hand, saying ‘The product launch bombed’ in American

English would mean that the new product was a disaster.
 Non-verbal barriers – This refers to the non-verbal communication that
goes with a particular message. Non-verbal communication includes
tone of voice, body language such as gestures and facial expressions,
etc. We will be discussing this in detail in unit 2. If the tone of voice and
body language are negative, the communication will fail, however
positive the spoken and written message.
For example, if you happen to meet a long lost friend and say “I am
delighted to meet you”, but in a sad tone of voice, the exact opposite
message will be conveyed!
Therefore, it is important to avoid giving conflicting signals, through the
use of non-verbal communication.
Overcoming the barriers to communication
Certain steps can be taken, both at the organisational level, as well as at the
individual level, to effectively deal with the barriers to communication, in
order to try to minimise them, if not eliminate them entirely.
Organisational action
Employees of an organisation accomplish workplace communication
through several communication channels. One of the commonly cited
problems in organisations is the poor workplace communication. Hence
organisations need to take few steps to ensure effective communication.
Some of the steps which an organisation can take to overcome the barriers
to effective communication are as follows:
 Encourage feedback – Organisations should try to improve the
communication system by getting feedback for the messages already
sent. Feedback can tell the managers whether the message has
reached the receiver in the intended way or not.
 Create a climate of openness – A climate of trust and openness can
go a long way in removing organisational barriers to communication. All
subordinates or junior employees should be allowed to air their opinions
and differences without fear of being penalised.
 Use multiple channels of communication – Organisations should
encourage the use of multiple channels of communication, in order to
make sure that messages reach the intended receivers without fail. This
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means using a combination of both oral and written channels, as well as

formal (official) and informal (unofficial) channels of communication. The
types of channels will be discussed in detail later, in unit 2.
Individual action
An individual can take certain actions to overcome the communication
barriers. These actions will help to improve interpersonal relationships with
others both in one’s personal and business life. Some of the actions that an
individual can take are:
 Active listening – This means listening to the meaning of the speaker’s
words, rather than listening without hearing, or ‘passive listening’.
Passive listening is a barrier to communication, whereas real
communication takes place when we listen actively, with understanding.
Listening is a skill which can be developed through proper training.
 Careful wording of messages – Messages should be worded clearly
and without ambiguity, to make sure that the message that is received is
the same as the message that is sent.
 Selection of appropriate channels – Individuals should be competent
enough to choose the right communication channel, depending on the
situation. Channels of communication and the criteria for selection of
channels will be discussed in detail in unit 2
 Avoidance of technical language – The language used in
communication must be as clear as possible. Usage of unnecessary
technical terms can lead to misunderstandings. Hence, an individual has
to use technical words only when necessary.
 Right feedback – Feedback is an important communication skill. The
correct feedback can elicit the correct action. The feedback given must
be a proper combination of criticism and information sharing.
Self Assessment Questions
9. Match the following:
Set A
A. Overcrowded room
B. Words with different meanings in different cultures
C. Tone of voice
D. Wrong medium of advertising

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Set B
1) Non-verbal barrier
2) Channel barrier
3) Environmental barrier
4) Semantic barrier
10. The barrier that may also occur in cross-cultural advertising and distort
the communication is ______________________.
11. The ____________________ means listening to the meaning of the
speaker’s words, rather than listening without hearing .

1.5 Classification of Communication

Experts categorise communication into different types based on the
following factors:
 Number of people involved in the communication
 Physical proximity of the communicators
 Immediacy of the communication
 The context of the communication
The various types of communication are:
 Interpersonal communication
 Intrapersonal communication
 Group communication
 Mass communication
Let us now discuss the features of these classes of communication.
Interpersonal communication
Interpersonal communication usually involves direct face-to-face contact
between the sender and the receiver. It can be both in a verbal and non-
verbal form. Feedback is an important concept of interpersonal
communication. We can classify interpersonal communication, based on the
number of people involved as:
 Dyadic communication – This involves two people.
 Group communication – This involves three or more persons. The
communication takes place usually for problem solving or decision
making.
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 Public communication – This involves a large number of people. The

communication takes place usually for information sharing and
persuasion.
Mediated interpersonal communication makes use of technology for sending
and receiving messages. For example, two business colleagues
communicate using a telephone or e-mail. By using mediated
communication we can communicate over large distances or in different
time spans. Mediated communication can be formal or informal in nature.
Intrapersonal communication
Intrapersonal communication is self-communication. This is the most basic
form of communication. It occurs for clarifying ideas or for analysing a
situation. It involves the following activities:
 Internal discourse – This involves analysis, concentration and
contemplation.
 Vocal communication – This involves talking aloud to oneself and is
done for clarifying or rehearsing messages.
 Written communication – This involves making entries in journals or
diaries.
We can thus use intrapersonal communication to process data, to encode
data before sending a message, and to decode data when we receive
messages.
Group communication
Group communication usually takes place between three to twenty
individuals. The basic resource of any group is its members. Hence,
communication is very important for a group to achieve its goals. Group
communication can be achieved in any of the following forms:
 Verbal
 Non-verbal
 Written
 Electronic
The factors that affect group communication are:
 The nature of the task
 The personalities and abilities of the group members
 Environmental factors
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Communication is very essential for creating and sustaining groups.

Generally groups need a facilitator to ensure that the group achieves its
goals. The facilitator establishes rules and guidelines for communication
within the group. Facilitators can provide feedback to the group members
and make suggestions to remedy problems in group communication.
The advances in electronic and digital technology have influenced the way
in which groups function in contemporary organisations. The group
communication processes result in a group outcome like a decision or a
plan.
Mass communication
Mass communication is the communication that employs some form of
media like the television, radio or the Internet to communicate to a very
large audience.
The characteristics that distinguish mass communication are:
 Source – The source is generally a person or a group (like a news
editor or a reporter) operating in an organisational setting. The message
communicated is the result of the work of many persons (such as
writers, directors, editors, graphic designers).
 Message – The messages conveyed are complex and elaborate. For
example, a magazine article, a television programme or a billboard
advertisement.
 Channel – The channel employed involves more than one technology.
For example, radio makes use of microphones, transmitters, tape
machines and receivers.
 Audience – The audience are self-elected people who tune in to the
radio programme or who read a magazine. Mass audiences are from a
diverse background and have dissimilar socio-political characteristics.
They are spread over a large geographical area.
 Feedback – As the message flow is usually one-way, the feedback is
minimal and delayed.
 Noise – The noise can be caused due to semantic, mechanical or
environmental reasons.
Businesses employ mass communication to send out a company-wide
message, messages to other companies or the general public. Memos and

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e-mails are used to send company-wide mass messages. Mass

communication messages are sent to other companies to persuade them to
the use the company’s products or services. Mass communication
messages are sent to the general public to inform them of the company’s
policies or goals and for marketing purposes.

Additional Reference:
Jain, R. (2009). Business Communication. New Delhi: V.K.India
Enterprises.

Self Assessment Questions

12. ______________ is an important concept of interpersonal
communication.
13. Group communication usually takes place between twenty to thirty
individuals. (True/False)
14. As the message flow is usually one-way in mass communication, the
feedback is minimal and delayed. (True/False)

1.6 Importance of Communication in the Workplace

Communication is the nerve centre of business today. As you go up the
corporate ladder, you will find that communication skills are required, more
than technical skills. Communication research has revealed that among the
factors most important for managerial success, communication skills rank
above technical skills. According to the survey conducted by National
Commission on writing, American businesses spend $3.1 billion per year to
provide training for people on writing skills-a type of communication.1
Several surveys conducted among people who have been successful in
their professions have indicated that communication skills are more vital to
job success than subjects taken in college.
Communication is also required all the more in this age of information and
technology. Without communication and human skills, technology will
overwhelm an organisation. Communication helps to make sense of
technology and to manage all this information. For example, communication
is required to explain a new computer program or software. While

1 http://www.quintcareers.com/writing_skills_on_job.html

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computers can perform routine tasks, jobs like responding to customers’

needs require a high degree of communication skills.
Effective communication serves the following specific purposes in an
organisation:
 Greater awareness of organisational goals and teamwork – When
there is open communication between superiors, co-workers and
subordinates, there is smooth flow of information regarding the goals of
the organisation. Coordination between the different departments in
particular, leads to greater motivation to work together towards
achieving a common organisational goal, rather than working in
isolation.
 Better employer-employee relationships – By listening to employees,
showing empathy and giving them the freedom to express their opinions
without fear of being repressed, a manager can create a climate of
openness that leads to better work relationships. Employees will then
feel more comfortable in approaching their superiors and discussing any
matter with them.
 Problem solving – Effective communication can help resolve conflicts
between co-workers, work related and performance related problems.
Face–to-face communication is especially suited for achieving this task,
since it is one to one and highly personalised in nature.
 Improved performance – Effective communication by managers at the
time of appraising the performance of their employees can point out
areas for improvement. A constructive review of performance, through
which a manager gives positive feedback and counsels the employee,
instead of criticising him for poor performance, can motivate the
employee to perform better.
 Stronger link between managers and the external environment –
Apart from internal communication within the organisation, effective
communication by managers with external audiences such as
customers, government, bankers, media and suppliers leads to a better
rapport with them. A manager will be able to understand the needs of his
customers, be aware of the presence of quality suppliers of material, of
government regulations and of the expectations of the community at
large, only through proper communication.

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Communication has assumed even greater importance today, since the new
model of business is based on teamwork, rather than on individual action.
Teamwork requires greater coordination and communication.

Common mistakes made in communication:

 Spelling
 Punctuation
 Grammar
For example, if Meena sends the following e-mail to Sheela:
Thanks Sheela, I have received your massage. Let us have the meeting
next weak.
Sheela, on receiving the message, will get a wrong impression about
Meena. Hence it is always better to check the spelling, grammar and
punctuations in a message.

Self Assessment Question

15. Communication has assumed even greater importance today, since the
new model of business is based on ____________, rather than on
____________ action.
16. The _____________ communication is especially suitable for resolving
conflicts between co-workers, work related and performance related
problems.
17. Effective communication by managers during employee appraisal
period can point out areas for improvement. (True/False)

1.7 Summary
Let us recapitulate the important concepts discussed in this unit:
 Although there is no single and correct definition of communication,
most communication theorists and writers on the subject agree that
communication has the following characteristics:
o It is a non-stop process like breathing, since we communicate all the
time in some form or another.
o Communication is not only through the spoken and written word. A
large part of it is also non-verbal.
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o Communication usually involves a two-way exchange of information,

where the receiver provides some feedback in some form or the
other.
o Communication may be said to be accurate when the intended
message is understood in the same way by the receiver.
 Irrespective of the number of people involved, communication always
includes the following key elements:
o A sender who transmits a message
o A receiver who decodes or attaches meaning to a message
o A channel or medium through which the message is sent
o Feedback given by the receiver to the sender
o Noise that can disrupt the communication at any time
o The context in which the communication takes place
 Communication is not always successful and can go wrong if any of the
key elements go wrong.
 There are a number of barriers or obstacles to smooth communication.
These may be categorised as follows:
o External or physical barriers
o Individual barriers
o Organisational barriers
o Linguistic or cultural barriers
o Semantic barriers
o Channel barriers
o Non-verbal barriers
 The various types of communication are:
o Interpersonal communication – Interpersonal communication usually
involves direct face-to-face contact between the sender and the
receiver.
o Intrapersonal communication – Intrapersonal communication is self-
communication.
o Group communication – Group communication usually takes place
between three to twenty individuals.

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o Mass communication – Mass communication is the communication

that employs some form of media like the television, radio or the
Internet to communicate to a very large audience.
 Effective organisational communication can enhance performance in the
workplace.
 Communication contributes to success in the workplace as it provides:
o Better employer-employee relationships
o Problem- solving
o Improved performance
o Stronger link between managers and the external environment

1.8 Glossary
Decoder: A device or a person undoing the encoding to retrieve the original
message.
Encoder: A device or a person which converts the message into some
chunks of messages known only to it.
Linguistics: The scientific study of the structure and semantics of a
language.
Semantics: The study of meanings, changes in meanings, and the
principles that govern the relationship between sentences or words and their
meanings
Telecommuting: A work arrangement in which an employee works from
home for a business and communicates through the use of a personal
computer equipped with modem and communications software.

1.9 Terminal Questions

1. Explain briefly the characteristics of communication.
2. Describe a situation you experienced where the communication was a
failure. Analyse the problem by identifying the element of the
communication process that contributed to the failure. For example,
wrong sender, wrong channel, etc.
3. List out some barriers that stand in the way of your own communication.
4. What are the ways in which an organisation can overcome the barriers
to communication?
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5. Distinguish between interpersonal and intrapersonal communication.

6. What are the advantages of effective communication in an organisation?

1.10 Answers

Self Assessment Questions

1. Feedback
2. Sender
3. False. Each message is part of a process and does not occur in
isolation.
4. True
5. False. A channel is the medium or the method used to deliver the
message.
6. False. The given example is of Psychological noise.
7. True
8. a. Lack of interest
9. A – 3, B – 4, C – 1, D – 2
10. Linguistic barrier
11. Active listening
12. Feedback
13. False. Group communication usually takes place between three to
twenty individuals.
14. True
15. Teamwork, Individual
16. Face-to-face
17. True
Terminal Questions
1. The characteristics of communication are:
 It is unavoidable
 It is a two-way exchange of information
 It is a process
 It involves a sender and a receiver of information
 It could be verbal or non-verbal
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 It is successful when the receiver interprets the meaning in the same

way as that intended by the sender
For more details, refer section 1.2.
2. A communication may go wrong, if any of the following key elements of
communication such as sender or encoder, receiver or decoder,
message, channel, feedback, noise, and context goes wrong. For more
details, refer section 1.3.
3. There are a number of barriers or obstacles to smooth communication.
These may be classified as follows:
 External or physical barriers
 Individual barriers
 Organisational barriers
 Linguistic or cultural barriers
 Semantic barriers
 Channel barriers
 Non-verbal barriers
For more details, refer section 1.4.
4. Some of the measures which an organisation can take to overcome the
barriers to communication are as follows:
 Encourage feedback
 Create a climate of openness
 Use multiple channels of communication
For more details, refer section 1.4.
5. Interpersonal communication usually involves direct face-to-face contact
between the sender and the receiver. Intrapersonal communication is
self-communication. For more details, refer section 1.5.
6. Effective communication in an organisation offers the following benefits:
 Better employer-employee relationships
 Problem- solving
 Improved performance
 Stronger link between managers and the external environment
For more details, refer section 1.6.
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1.11 Case Study

Nomura Group's Global communication

Introduction
Nomura Group is one of the largest financial service organisations in
Japan. It comprises a group of companies that includes Nomura
Securities Co. Ltd, Nomura Asset Management Co. Ltd, and Joinvest
Securities Co. Ltd. It also has overseas subsidiaries in the U.S, Europe
and Asia.

Issue
Earlier, Nomura group used laptops as a main tool for communication. As
the laptops were not easy to carry and they also required complicated
configuration, Nomura was looking for a secure and convenient mobile
solution that would free them from these stresses.
Nomura group required a global communication environment which
allowed employees to access their enterprise network from anywhere in
the world and work as if they were in office.

Solution
In October 2006, Nomura Securities started investigating the usage of
BlackBerry solution to solve their issues. In February 2007, it introduced
about 50 BlackBerry smartphones, mainly in Nomura Securities Co., Ltd.
In May 2007, it introduced the BlackBerry 8707h smartphone in full scale.
The Information System departments at Nomura Holdings Inc. and
Nomura Securities Co., Ltd. worked jointly to deploy and maintain the
BlackBerry Enterprise Server, which controls the BlackBerry
smartphones.
Reasons for selecting BlackBerry Solution
The convenience and high security of the solution made Nomura group to
opt for BlackBerry smartphones.
The overseas subsidiaries of the Nomura Group had already benefited by
the usage of BlackBerry smartphones. The introduction of BlackBerry
solution facilitated the daily communication in the business.

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The BlackBerry solution is widely used in the financial world and the
Nomura group appreciated the convenience and high security of the
BlackBerry solution.
The key functions of BlackBerry that appealed to Nomura were message
encryption and uniform device management . The BlackBerry Enterprise
Server default functions allowed Nomura to adhere to the existing
security policy.
Results
Nomura group enhanced their internal device management systems for
introducing BlackBerry 8707h smartphone. It set up a user support desk
and a network for wireless distribution of applications. It was able to
distribute the Bloomberg application to convey important financial
information to their securities business. Employees were able to get real-
time news updates throughout the business day. The BlackBerry solution
allowed employees to check emails, view attachments, and manage their
schedule.
Discussion Questions:
1. What were the issues faced by the Nomura group in their business
communication?
(Hint: Refer Issues section of the caselet)
2. Why did the Nomura group opt for a BlackBerry solution?
(Hint: Refer Reasons for selecting BlackBerry Solution section of
the caselet)
(Source:
http://us.BlackBerry.com/newsroom/success/Nomura_ENG_BCS.pdf)

References:
 Emmitt, S., & Gorse, C. (2003). Construction Communication. U.K.:
Blackwell Publishing.
 Frey, L. R. (1999). The Handbook of Group Communication Theory and
Research. U.S. A: Sage Publications.

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E-References:
 http://us.BlackBerry.com/newsroom/success/Nomura_ENG_BCS.pdf –
Retrieved on November 21, 2011.
 http://www.teleworkaustralia.net.au/doclibrary/public/Research/AJC
ArticleMeyersHearnTelecommuting.pdf – Retrieved on November 21,
2011.
 http://www.quintcareers.com/writing_skills_on_job.html – Retrieved on
November 21, 2011.
 http://faculty.buffalostate.edu/smithrd/UAE%20Communication/Unit4.pdf
– Retrieved on January 4, 2012.
 http://www.effectivepresentationskills.com/infobank/communicationskills.
html – Retrieved on January 4, 2012.
 http://faculty.buffalostate.edu/smithrd/UAE%20Communication/Unit7.pdf
– Retrieved on January 6, 2012.

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Business Communication Unit 2

Unit 2 Types and Channels of Communication

Structure:
2.1 Introduction
Objectives
2.2 Types of Communication
Usage of verbal communication
Characteristics of non-verbal communication
2.3 Classification of Non-verbal Communication
2.4 Classification of Communication Channels
Selecting the appropriate channel
Comparison of oral and written communication channels
2.5 Summary
2.6 Glossary
2.7 Terminal Questions
2.8 Answers
2.9 Case Study

2.1 Introduction
In the introductory unit, we discussed the communication process in detail
and examined each of the elements of communication. The channel or
medium of communication was mentioned as one of the key elements. It
was pointed out that selection of a wrong channel can lead to
communication failure. In fact there is a saying that ‘the medium is the
message’. This means that the choice of a channel itself can speak
volumes, without a written or spoken message. For example, advertising a
product in an exclusive magazine conveys the message that the product is
of high quality. This unit will focus entirely on channels of communication.
The relative advantages and disadvantages of the different types of
channels will be explained and guidelines will be offered on how to choose
the right channel in a particular business situation.

A study conducted by an internal analysis of the small business

workplace on ten small businesses located in Melbourne showed that
organisational communication is very important for the success of small
businesses. The study was conducted through semi-structured interviews
and questionnaires.

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Table 2.1 shows the results of the study. This result showed that all
participants of small businesses used informal, formal, and active
communication both internally and externally to develop a positive
environment in the small business workplace:
Table 2.1: Internal and External Communication
Communication % Internal % External %
type: Internal comm. comm.
Channels channels

Informal 80 Phone 40% Phone 50%

meetings (mobile) (mobile)
Formal meetings 20 Email/memos 20% Email 50%
After-hours 70 Face-to-Face 100% Face-to- 80%
discussion face
Networking
Social 50 Phone 20% Education 30%
gatherings conferencing

Informal meetings were held more than the formal meetings. Many of the
small business owners communicated with staff after the meeting hours
and during social gatherings. Communication with external environment
showed a similar figure. However half of the owners used email, face-to-
face meetings. These figures show the importance of internal/external
communication.
(Source: http://www.cric.com.au/seaanz/resources/18BurnettMcMurray.pdf)

This unit provides answers to questions like:

What are the different types of business communication?
What are the different channels that can be used in various situations by a
business communicator?
Objectives:
After studying this unit, you should be able to:
 distinguish clearly between the different types of communication
 list the advantages and limitations of each type of communication
channels
 categorise the different channels of communication

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 select which channel to use in different situations, as a business

communicator

2.2 Types of Communication

Broadly, communication may be divided into two types, they are:
 Verbal communication
 Non-verbal communication
Let us briefly discuss these two types of communication.
 Verbal communication – This type of communication occurs with the
help of words. It provides the opportunity for personal contact and two-
way flow of information. A large part of our communication, whether at
work or outside, is verbal in nature. Verbal communication may be
divided into two types. They are:
o Oral communication – This type of communication may be defined
as a process in which a speaker interacts verbally with one or more
listeners, in order to influence the latter’s behaviour in some way or
the other. Oral communication in a business context can take the
form of meetings, presentations, one-to-one meetings, performance
reviews, etc.

Example – In a business context, a manager doing the performance

appraisal with an employee or a sales manager making the sales plan
presentation to the sales team. In the first example, the manager may
point out areas for improvement and in the second case, the sales
manager may explain how to achieve new sales targets.
o Written communication – This type of communication is the
correspondence made in writing. It can be handwritten, printed or
typed. For example, a manager writing a letter of apology in
response to a customer’s complaint regarding poor service. Written
communication at the workplace can take several forms such as
letters, memos, circulars, notices, reports and email. We will
examine some of these in more detail in Unit 9 and Unit 10.
 Non-verbal communication – This type of communication may be
defined as communication without words. It refers to any way of
conveying meanings without the use of verbal language. The game of

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’dumb charades’ is a perfect example. Non-verbal communication is

generally unintentional, unlike verbal communication. All of us tend to
communicate silently and unknowingly send signals and messages by what
we do, apart from what we say. Gestures, facial expressions, posture and
the way we dress, are all part of non-verbal communication.
Non-verbal communication can have a greater impact than verbal
communication, since ‘how you say something’ is sometimes more
important than ’what you say’. Although non-verbal communication can
affect both our personal and business relationships, it is particularly
important in the workplace. Let us consider the following scenario to
understand this:
Your boss has asked you to make a presentation on your suggestions for
improving the organisation. You take him at his word and come prepared
with an elaborate presentation and a list of ideas. However, as you make
your presentation, he yawns repeatedly, sits back casually, looks out of the
window, clenches his jaw muscles and begins to frown. At the end of your
presentation, he rises abruptly from his chair, says ‘thank you for your ideas’
in an angry voice and gives you a curt handshake
In the given scenario, the boss, through his non-verbal behaviour, conveys a
message beyond the spoken words that he does not really want to listen to
your suggestions.
Therefore, while the spoken or written words may be perfect, the non-verbal
aspects could convey the exact opposite meaning. We will discuss the
different aspects of non-verbal communication in more detail, in sub-section
2.2.2.
2.2.1 Usage of verbal communication
We communicate most of our ideas to others through verbal messages,
i.e., through spoken or written messages. However, verbal messages have
some drawbacks such as the message may not be properly worded, or the
message may be misunderstood, or interpreted differently from its intended
meaning.
For example, even a simple statement like ‘let’s discuss this matter
tomorrow’ might be interpreted by one person as ‘let’s meet tomorrow’ and
by another as ‘let’s discuss this over the phone’.

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Miscommunication through verbal messages could be avoided by following

a few simple guidelines. The guidelines are as follows:
 Avoid words with multiple meanings
 Ensure clarity through highly specific statements
 Avoid overuse of jargons
 Avoid biased language and offensive words
Let us now discuss these guidelines in detail.
Avoid words with multiple meanings
Words sometimes tend to have different meanings in different cultures.
Therefore, when communicating in a cross-cultural context, it is particularly
important to avoid literal translation of words, since they might have a
negative meaning in another culture.

Example – The advertising campaign for Electrolux vacuum cleaners

with the slogan ‘Nothing sucks like an Electrolux’ was introduced without
any changes in the American market. However, the product failed since
the word ‘sucks’ which is American slang, has a negative connotation
which means ‘bad’.
Even simple words used in the same cultural context could have multiple
meanings and be interpreted differently.

Example – If I ask you ’What kind of shape are you in?’, you might
understand it to mean what kind of financial position you are in, whereas
the intended meaning might have been ‘What kind of mental or physical
state are you in?’
Therefore, when communicating verbally, it is important to use words that
are precise, unambiguous and have a single accepted meaning.
Ensure clarity through highly specific statements
Instead of describing an object or idea in general terms or in abstract
language, use highly specific language to avoid a variety of interpretations.

Example – If you are calling the IT support staff in your organisation to fix
a problem with your computer, instead of saying ‘My computer doesn’t
work’, it is better to state in more precise terms that ‘I get a message
saying that my computer is not responding’.

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Avoid overuse of jargons

Jargon refers to technical terms or specialised vocabulary. Every profession
has its own jargon which only experts in that field can understand. For
example, IT experts use terms like ’computer architecture’ which the
layperson may not understand. The use of jargon depends on the audience
with whom you are communicating. A certain amount of jargon may be
permissible when writing a technical report but should be avoided when
communicating with a general audience, since the terms may not be
understood. Most importantly, never use jargon just to impress your
audience.
Avoid biased language and offensive words
Biased language is language that makes use of expressions that humiliate
or exclude people on the basis of their age, gender, race, ethnicity, social
class, or specific mental or physical characteristics. Language has the
power to arouse negative feelings, if it is not used with care. This can
happen when the words used seem to be objective, but actually contain an
intentional or unintentional bias.

Example – Referring to a co-worker as ‘wishy-washy’ if he/she is not

quick in making a decision, could lead to misunderstanding and conflict.
Similarly, certain words may have a ‘sexist’ connotation and be taken in
an offensive way. For example, referring to a lady receptionist as ‘that
female’.

2.2.2 Characteristics of non-verbal communication

We have defined non-verbal communication in the beginning of section 2.2.
Let us now discuss some of its characteristics, which distinguish it from
verbal communication. The characteristics of non-verbal communication are
as follows:
 Non-verbal communication cannot be avoided
 Non-verbal communication is powerful
 Non-verbal communication is ambiguous
 Non-verbal communication cannot express all messages
 Non-verbal communication varies across cultures
Let us now discuss more about these characteristics.

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Non-verbal communication cannot be avoided

While one can avoid verbal communication by refusing to speak or write, it
is not possible to do the same with non-verbal communication. That is
because non-verbal communication is not always intentional, unlike verbal
messages, as pointed out earlier. Sometimes, silence itself may convey a lot
of meaning.

Example – A speaker making a presentation may find that the audience

is not very interactive. Instead, he notices people yawning during his
presentation. At the end of the session, when he asks for some feedback,
there is total silence.

From this example we can say that the audience is bored with the session.
The silence indicates that they have not listened to the session and that the
feedback is negative.
Non-verbal communication is powerful
Non-verbal communication helps us to form first impressions and make
judgements of others. First impressions generally tend to be lasting
impressions.
Let us say you go for a job interview fifteen minutes late and dressed in
informal attire. When asked some questions, you avoid eye contact. This
immediately reflects on your attitude and the impression formed of you is
that of a person who takes things casually, is insecure and lacks knowledge.
Non-verbal communication is ambiguous
While precise words can be used in verbal communication to ensure that the
message is clearly understood, non-verbal communication is not always
clear and easy to understand.
For example, sitting back in a relaxed posture may be a signal of boredom
or fatigue. Similarly, avoiding eye contact with your audience could mean
that either you are nervous or guilty of something.
Therefore it is not possible to accurately understand the messages
conveyed by non-verbal behaviour.
Non-verbal communication cannot express all messages
Non-verbal behaviour can only express a person’s feelings, attitudes, level
of interest, likes or dislikes for something. Certain messages about ideas or
concepts can only be expressed through the spoken or written word.
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Consider the following example to understand this.

A sales manager wanting to report that sales for the current year has
exceeded targets, can only do so through a written report or oral
presentation. If he is making an oral presentation, his non-verbal
behaviour can only indicate how pleased he is about the increase in
sales.
Non-verbal communication varies across cultures
While certain types of non-verbal behaviour are universal, others may be
different in different cultures.

Examples – There are different rules regarding the appropriateness of

the handshake in oriental and western cultures. Generally, in oriental
cultures like India, any form of physical contact is not common and is
interpreted as being intimate, while it is an accepted thing in western
countries.
Similarly, a nod of the head means yes in some cultures and no in other
cultures.
Bowing to your superior is considered a mark of respect in Japan, but is
considered unacceptable in the U.S.A.
Arabic cultures use prolonged eye-contact to show their interest. But, in
countries of Latin America, this is avoided.
Business people stand close together while talking in Latin American
countries. But, western countries find such closeness uncomfortable.
In this age of business communication across cultures, it is important for you
to understand these differences, especially when doing business overseas.
Failure to do this could lead to costly blunders.

Self Assessment Questions

1. Two broad areas of communication are and
communication.
2. When communicating in a cross-cultural context, it is particularly
important to avoid of words

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3. Verbal communication is more likely to go wrong in a cross-cultural

context. (True/False)
4. Non-verbal communication can be avoided by refusing to speak or
write. (True/False)

2.3 Classification of Non-verbal Communication

We have discussed how non-verbal communication plays an important role
in business communication. Given its importance, an understanding of the
different types of non-verbal communication is essential.
Non-verbal communication can employ audio and video signals to
communicate messages. The ringing of a telephone, blaring of a siren are
examples of audio signals. A blaring siren in a factory can indicate to
workers that their shift has come to an end. By using audio signals, we can
communicate to a vast number of people scattered over a large area. Visual
signals include posters, charts, graphs and drawings. Visual signals grab
the attention of the people. They can be used to overcome linguistic
barriers.
There is a common misconception that non-verbal communication is
synonymous with body language and includes only body language. The fact
is that it is a vast area which has been widely researched and includes
several aspects. The table 2.2 lists the different types of non-verbal
communication, with the corresponding communication terminology.
Table 2.2: Types of Non-verbal Communication
Description Communication Terminology
Body language Kinesics
Touching Haptics
Personal space and distance Proxemics
Use of time Chronemics
Tone of voice Paralanguage
Physical environment Physical context

Let us discuss each of the aspects of non-verbal communication listed in

table 2.1.Kinesics
Kinesics is the most often studied and important area of non-verbal
communication and refers to body movements of any kind. Different body
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movements can express inner states of emotion. The different body

movements are:
 Facial expressions – Facial expressions can convey feelings of
surprise, happiness, anger and sadness. If you meet a long lost friend
and say “I am very happy to meet you again”, but with a sad facial
expression, it conveys the exact opposite meaning.
 Eye movements – The eye movements such as wide open pupils
express feelings of surprise, excitement or even fear. The importance of
eye contact with one’s audience was pointed out earlier. Direct eye
contact is an indication of intensity and interest, while lack of it can
convey feelings of nervousness and guilt. As prolonged eye contact can
intimidate people, it is not a good idea to stare at people. Different
cultures perceive eye contact differently. In Asia, Latin America and
Africa people avoid direct eye contact to show respect. Arabs use
prolonged eye contact to measure trustworthiness.
 Gestures – The gestures such as movement of the hands while giving a
lecture or presentation indicates a high level of involvement in what you
are saying. On the other hand, shuffling of the feet is a sign of
nervousness and speaking with one’s hands in one’s pockets is
considered to be casual or even rude.
 Head movements – The head movements like nodding the head can
convey interest, appreciation, agreement or understanding.
 Posture – Posture, refers to carriage or attitude. Our posture can
indicate our feelings. In formal settings such as job interviews or
classroom settings, it is essential that you maintain an erect posture to
convey that you are attentive, since slouching or a relaxed posture
conveys a casual attitude. Similarly, crossing your arms and legs can
convey that you are defensive and rigid. Uncrossing your arms and legs
can indicate that you are willing to listen.
 Physical appearance – Our outward appearance, including the way we
dress and the jewellery and make-up that we wear can convey an
impression of formality or informality. Going to a job interview dressed in
blue jeans or not sticking to a stipulated dress code at the workplace can
convey that you are a rebel, non-conformist or a very casual person.

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Therefore, it is important to take care of your appearance, so that you

convey the right meaning to others.
Haptics
Haptics refers to communication through touch. We can use touch to
communicate affection, assurance, familiarity, comfort, sympathy and other
emotions. Touching can also be interpreted as an assault. Hence, we must
use touch as a communication tool carefully. Touching is used for the
following purposes:
 Working – Professionals such as doctors, dentists, hair dressers and
airport security staff need to touch people in the normal course of their
work.
 Greeting – Contact through touch is part of the greeting ritual. We often
use handshakes to greet people. Retaining contact for a greater duration
of time can convey feelings of friendship or domination. In some
cultures, people also embrace or rub noses to greet people.
 Establishing friendships – A friendly pat or a comforting touch can
help in establishing amicable relationships.
 Guiding – A touch on the back, shoulder or arm can help to guide
people in the correct direction.
 Managing interactions – Touching is used to manage interactions. We
can gently touch the shoulder or arm to gain the attention of a person.
The importance given to touch varies with culture. Asian cultures forbid
displays of affection. Hence, touching is not encouraged in such cultures.
Cultures, like Germany and England, that have rigid status structures and
stress emotional restraint give lesser importance to touching when
compared to the countries in Middle East and Latin America.
Proxemics
Proxemics is derived from the word ‘proximity’ or closeness and is the
communication term for personal space and distance. The space and
distance which we choose to keep from people is also part of non-verbal
communication. Each of us has our own inner and outer circles, which differ
for different people. The different types of spaces are as follows:
 Intimate space – Our inner most circle is an ‘intimate space’, into which
we generally admit only select people such as family and close friends.

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 Personal space – A ‘personal space’ might include other friends and

colleagues or co-workers. The intimate and personal spaces involve
communication of an informal nature.
 Social and public space – The ’social and public space’ includes
official or workplace relationships, where the communication is of a more
formal nature.
In a business context, it is more relevant to understand the concept of the
following spaces:
 Fixed space – Fixed space means that the physical features of the work
environment such as furniture, room size and seating arrangement are
permanent. This conveys an impression of formality.
 Semi-fixed space – Semi-fixed space means that certain elements of
the environment can be changed. For example, changing the seating
arrangement conveys an impression of informality.
Sometimes, use of space at the workplace can determine leadership
positions. For example, seating at the head of the table conveys leadership
or authority. A round table meeting, however, conveys the idea of equality,
since no one can be seated at the head of the table. All points of a circle are
the same. That is why when heads of state meet (as in UN Security Council
meetings), it is always a round table discussion, since all heads are equal.
Space should therefore be used carefully in a work environment, so as to
convey the right impressions.
Chronemics
Chronemics refers to the study of usage of time. This includes our attitudes
towards punctuality and willingness to wait. It also deals with the manner in
which we structure our time and interactions. Perception of importance of
time varies between individuals and cultures.
For example, in most western cultures punctuality is considered to be
important. Arriving late for a business meeting is inexcusable. In other
cultures, it is more relaxed and time is not given that much importance.
We convey messages to others through the time we spend on a work
related activity or by the importance that we give to time. Arriving early at
work or for a job interview shows interest, involvement and seriousness.
Spending time with employees and giving them suggestions on how to

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improve their performance shows interest and involvement in their career

growth.
Paralanguage
Para means ‘like’ or ‘similar to’, therefore paralanguage means ‘like
language’. Of all the forms of non-verbal communication, paralanguage is
closest to verbal communication. It refers to the tone of voice with which
something is said. In other words, it is ‘how’ something is said, and not
‘what’ is said. The tone of voice includes the pitch (high or low pitch), the
pace (slow or fast) the emphasis on words and the volume (soft or loud) and
can convey different moods and emotions.
For example, the statement, “I practice good business communication.” can
be understood in different ways, depending on the emphasis on certain
words. When more emphasis is given to ‘I’ while saying “I practise good
business communication.” means that the speaker alone practises it above
anyone else. On the other hand, placing more emphasis on ‘practise good
business communication’ could be interpreted to mean that the speaker
communicates particularly well in a business context, rather than in a
general context.
The important point to keep in mind regarding tone of voice is to avoid
mixed signals - that is, making sure that what you say is consistent with how
you say it.
Physical context
Physical context refers to the physical environment or surroundings within
which we communicate. This includes the following aspects:
 Colour and layout – Colours are known for their symbolic meaning and
have associations with different feelings. For example, colours like black
and grey are associated with death, mourning and negative feelings.
Yellow and green are associated with more positive feelings. Of course,
these can also vary across cultures. The point to remember is that you
can make the right impressions with use of the right colours Layout in a
work environment refers to the size of an office, or the arrangement of
furniture.
 Design – Design refers to the type of chairs, desks or carpeting. All
these can convey status, formality or informality.

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 Space management – Space management refers to the arrangement of

work spaces of people who regularly work together. It can influence
employee interactions and enable effective communication. It includes
the size and sequence of offices, the length and width of hallways, the
arrangement of the meeting rooms, etc.
 Location – The location in which we communicate influences the
manner and nature of communication. Communication done from a
podium to a vast audience needs to be loud. The same form of
communication cannot be done in a meeting room. The actual location
of the office space communicates status. An office located in the
business district of a city conveys greater success in the business when
compared to one located in the suburbs.
 Distance – The physical distance between the people communicating
influences the nature of communication. Virtual offices or communicating
with long-distance partners requires different forms of communication
like telephone messages, video-conferencing, e-mail etc.
We have discussed how the types of non-verbal communication outnumber
the types of verbal communication. Non-verbal communication is an
important supplement to verbal communication and can enhance verbal
communication, if used in a positive way. The sender should use the right
non-verbal cues to convey a positive message, while the receiver should
learn to look for unintended messages conveyed by non-verbal
communication.

Additional Reference:
Bhatia, R. C. (2009) Business Communication. 2nd ed. New Delhi: Ane
Books Pvt. Ltd.

Activity 1:
Observe a person with whom you work or interact regularly and note
down the messages (both positive and negative) that he/she conveys
through his/her nonverbal behaviour in terms of a) Tone of voice
b) Dress c) Body language and d) Use of personal space and distance.
(Refer section 2.3 for detailed guidelines.)

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Self Assessment Questions

1. 5.Match the following sets: Formatted: Normal, Left, Indent: Left: 1.43 cm, No
bullets or numbering
Set A
A. Nodding the head
B. Time language
C. A boss visiting an employee’s office for discussion
D. An executive chair and a carpeted room
E. Speaking loudly
Set B
1) Paralanguage
2) Kinesics
3) Arriving late for a meeting
4) Personal space and distance
5) Physical context
2. 6.Use of space at the workplace can determine Formatted: Normal, Left, Indent: Left: 1.43 cm, No
positions. bullets or numbering

3. 7.Colours are known for their symbolic meaning and have associations
with different .
4. 8.Yellow and green are associated with negative feelings. (True/False)

2.4 Classification of Communication Channels

We have discussed the two broad types of communication – verbal and
non-verbal, in detail. We will now examine the choice of channels for
different business situations.
As a business communicator, within oral and written communication, you
will have a choice of a variety of channels through which to deliver your
message. Oral communication could take place through a face-to-face
meeting, telephone or teleconferencing. Written communication could take
the form of letters, reports, memos or email. A basic understanding of the
nature of the different channels is required, so as to be able to choose the
right channel in a given situation.

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Based on three criteria such as whether the communication is oral, written

or non-verbal, the level of feedback, and the personal nature of the
communication the communication channels could be classified into the
following three types:
 Two-way, face-to-face channels
 Two way, but not face-to-face channels
 One-way, not face-to-face channels
Let us now discuss these channels of communication.
Two-way, face-to-face channels
In this type of communication channel, the communication is oral and non-
verbal, immediate feedback is possible and the communication is of a highly
personalised nature.
This type of communication channel could take the form of one-to-one
meetings (a superior doing a performance appraisal with an employee),
meetings involving small groups of people (board meetings), large
gatherings (a speaker making a presentation to a large audience) or video
conferences.
Video conferencing requires special rooms equipped with cameras and
television screens. Through this, people can see and interact with each
other in real-time even if they are located far apart. It also enables
participants to share files like spreadsheets and presentations.
Organisations use video conferencing to conduct interviews and meetings.
The advantages of using this type of communication channel are:
 Non-verbal communication such as gestures, facial expressions and
tone of voice can be used to make the communication more effective.
 Immediate feedback is possible in the form of questions, clarifications or
suggestions.
 The personal quality of the communication is enhanced. This is
especially true of one-to-one meetings, where problems and conflicts
can be easily resolved.
The disadvantages of this type of communication channel are:
 Difficulty in getting people together and arranging face-to-face meetings.

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 Personal meetings are also expensive and time-consuming, especially

when people are separated by distances.
Two way, but not face-to-face channels
With the advent of new technologies, communication can now be two way,
without being face to face, when distance makes such meetings impractical.
Teleconferencing, telephone and email communication are all examples of
this type of channel.
In this type, the communication is purely oral, since non-verbal cues cannot
be used to enhance the communication, in the absence of face-to-face
contact. Immediate feedback is however, possible, as with the face-to-face
channel, since the receiver can react immediately to the sender’s telephone
or email message. The communication which happens through this type of
communication channel is of an impersonal nature, due to lack of face-to-
face contact.
Teleconferencing is almost as good as face-to-face communication, since it
enables two parties in different locations to speak to each other. Today,
many large Indian organisations make use of this technology. While
teleconferencing has the advantage of saving time and costs involved in
travel, it cannot replace face-to-face meetings completely. Some types of
interaction such as brainstorming, negotiation, persuasion and problem
solving can be conducted better through face-to-face meetings.
Telephone communication has the advantage of being able to contact
people who would be impossible to reach in person. It is also relatively
inexpensive, compared to face-to-face communication. The disadvantage is
that it is hard to hold the listener’s attention for too long.
Email is another two-way, but not face-to-face channel that allows senders
and receivers to send and respond to one another’s messages almost
instantaneously. Within an office, email is used as an alternative to
telephone communication and personal meetings. Email has the advantage
of low cost, speed and the ability to send messages to several people
anywhere in the world. The disadvantages are its impersonal nature and the
lack of confidentiality, since the messages can be stored or passed on to
others.

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One-way, not face-to-face channels

All forms of written communication mentioned earlier – letters, reports,
memos, notices, etc., may be classified under this type of channel. Written
communication is largely one-way communication, since there is usually no
instantaneous feedback between the sender and the receiver. It is also
purely verbal, since non-verbal communication is not possible, in the
absence of face-to-face contact. It lacks the personal quality of face-to-face
communication, although it could be personalised to an extent in some
forms such as letters.
For example, a sales letter addressed to a customer could be made highly
personal, by addressing the customer by name and customising a product
to his needs.

2.4.1 Selecting the appropriate channel

Let us now discuss the appropriateness of each of the channels of business
communication for different business situations. Although there is no hard
and fast rule, the following guidelines would be useful when selecting a
channel for a particular situation:
 When trying to solve problems or improve relationships, oral face-to-face
communication is generally the most effective form of communication.
This is because of the personal nature of face-to-face communication,
which makes it more suitable than the other channels of communication.
 When there is a need for visual support in explaining an idea, oral face-
to-face communication is the most appropriate channel. For example,
highlighting the unique features of a product may require actual product
demonstration through face-to-face contact. Explaining a concept may
require showing photographs or diagrams through a slide presentation,
which is best done face-to-face.
 For making immediate contact, oral face-to-face communication is
required. For example, if you want to have the funds in an account
released now, you would have to meet a bank manager personally.
Putting your request in a letter or through a telephone call may not be of
much help.
 When you want to command a high degree of control over the receiver,
oral face-to-face communication works best. This is because, as a

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speaker, you will have greater command over a listener’s attention than
if you write a letter or a report, which may not be read at all.
 When there is need for immediate feedback, oral communication, either
face-to-face, or non face-to-face, such as telephone, teleconferencing or
email, may be equally appropriate.
Apart from these, the following criteria would justify the need for a one-way,
non face-to-face, i.e., written channel:
 When you want the tone of the communication to be formal, written
communication is more appropriate than oral communication. For
example, communication with the government regarding compliance
with tax matters, or with the bank regarding funds for expansion should
always be of a highly formal nature, through written letters or reports.
 When you want to explain complicated ideas that require a lot of study
and thought by the receiver, written communication is best. For
example, explaining the features of a machine is best done through a
technical report giving details and technical specifications.
 When you want to convey a large amount of information, written
communication is most suitable. It would be difficult to convey this
through a lengthy oral presentation, since the speaker would be unable
to command a captive audience for too long. The same is true of
telephone communication, which should be kept brief. On the other
hand, it is possible to include a number of details in a written report that
the receiver can read and re-read, at leisure.
 The written channel is also more appropriate when you wish to keep a
permanent record of happenings. For example, the minutes of a
business meeting should always be recorded in writing. Written
appointment letters should be given to new employees at the time of
joining an organisation.

2.4.2 Comparison of oral and written communication channels

It is evident that oral and written channels both have their relative
advantages and disadvantages. This is summarised in the table 2.3, which
rates each of these channels as ‘high’ or ‘low’ on different dimensions.

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Table 2.3: Advantages and Disadvantages of Oral and Written Channels

Written
Oral
Characteristic/Dimension Communicatio
Communication
n
Interactivity High Low
Level of Feedback High Low
Formal Nature Low High
Personal Nature High Low
Permanent Nature Low High
Cost High Low
Control over Receiver High Low
Effectiveness for Complex Messages Low High
Effectiveness for Detailed Messages Low High

Communication channels should be selected with care, keeping in mind the

requirement of the situation at hand, as well the inherent advantages and
disadvantages of each channel. In some cases, it may be necessary to use
a combination of channels, in order to make sure that the message reaches
the sender. For example, providing a written research report along with a
presentation on findings of a study, or making a follow-up phone call after
sending an email message is bound to have more impact and to ensure that
the message is well understood.
Self Assessment Questions
1. 9.Identify the communication channel where the communication is oral Formatted: Normal, Left, Indent: Left: 1.43 cm, No
and non-verbal. bullets or numbering
a) Two-way, face-to-face channels
b) Two way, but not face-to-face channels
c) One-way, not face-to-face channels
d) Multiple, but not face-to-face channels
2. 10. enables two parties in different locations Formatted: Normal, Left, Indent: Left: 1.43 cm, No
to see and speak to each other. bullets or numbering

3. 11.When the tone of the communication is to be formal,

communication is more appropriate than oral communication.

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2.5 Summary
Let us recapitulate the important concepts discussed in this unit:
 Communication can be divided into two broad areas – verbal and non-
verbal communication.
 Verbal communication comprises oral and written communication, which
in turn can take many forms in a business context.
 Gestures, facial expressions, posture and the way we dress, are all part
of non-verbal communication.
 Although non-verbal communication can affect both our personal and
business relationships, it is important in the workplace.
 Oral communication could take place through presentations, meetings or
one-to-one meetings, while written communication could be in the form
of letters, reports, memos, notices, circulars or email.
 Verbal communication has the disadvantage of being inaccurate or
misunderstood, unless the message is carefully worded. Therefore,
certain guidelines should be followed when communicating through the
oral or written word. It is important to avoid jargons and words that may
have multiple meanings and use language that is highly specific,
unbiased and inoffensive.
 Non-verbal communication refers to communication without words and
plays an important role in business communication.
 Non-verbal communication includes more than just body language.
Kinesics, proxemics or personal space and distance, chronemics,
paralanguage or tone of voice and physical context are some of the
other aspects of non-verbal communication.
 The communication channels may be classified into three types, they
are:
o Two way face-to-face
o Two way non face-to-face
o One way non face-to-face
 If the tone of the communication is to be formal, written communication
is more appropriate than oral communication.

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 Written communication is more appropriate to explain complicated ideas

that require a lot of study and thought by the receiver and to convey a
large amount of information.
 While selecting communication channels, importance should be given to
the requirement of the situation at hand, and the inherent advantages
and disadvantages of each channel.

2.6 Glossary
Active communication: An effective means of communication in which
there is congruence between verbal and non-verbal communication and in
which feelings are expressed accurately.
Memo: A short message or record used for internal communication in a
business.
Performance reviews: The process of measuring and analysing the work
of an employee.

2.7 Terminal Questions

1. Explain the different types of verbal communication.
2. Write the advantages of verbal over non-verbal communication.
3. Describe a situation that you experienced where communication went
wrong because the non-verbal behaviour sent conflicting signals. Which
aspect of non-verbal communication was responsible for the
communication failure? How would you rectify this?
4. What is paralanguage? Explain.
5. Name the communication channel to which teleconferencing, Email, and
telephone belongs to. Explain teleconferencing.

2.8 Answers

Self Assessment Questions

1. 1.Oral, Written Verbal, Non-verbal Formatted: Normal, Indent: Left: 1.43 cm, No bullets
2. 2.Literal translation or numbering

3. 3.True
4. 4.False. Verbal communication can be avoided by refusing to speak or
write.
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Business Communication Unit 2

5. A - 2, B -3), C - 4), D – 5), E - 1)

6. Leadership
7. Feelings
8. False. Yellow and green are associated with positive feelings.
9. a) Two-way, face-to-face channels
10. Teleconferencing
11. Written
Terminal Questions
1. There are two types of verbal communication, they are:
 Oral communication
 Written communication
For more details, refer section 2.2.
2. Precise words can be used in verbal communication to ensure that the
message is clearly understood. But, non-verbal communication is not
always clear and easy to understand. For more details, refer sub-
section 2.2.2.
3. Non-verbal behaviour can only express a person’s feelings, attitudes,
level of interest, likes or dislikes for something. For more details, refer
sub-section 2.2.2.
4. Para means ‘like’ or ‘similar to’, therefore paralanguage means ‘like
language’. For more details, refer section 2.3.
5. Teleconferencing, Email, and telephone belong to 'two way, but not
face-to-face channels'. For more details, refer section 2.4.

2.9 Case Study

Improving Dells’ Corporate Communication

Many of Dell's participants consider Dell as very good example of how a
company should manage its functionalities and communicate with its
participants. Corporate communication must be closely related to a
company's overall vision and strategy.
Issue
Dell has to align its identity with its image and become independent of
technology. If a company depends more on technology, along with

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bridging the gap between image and identity, it needs to be attentive to

technology changes.
Michael Dell, the founder of Dell computers initiated a primary work
environment which depends on e-mail. E-mail can be an effective
communication type across time zones. E-mail also helps managers and
employees communicate effectively and thereby increase the
productivity.
However, Dell's increasing dependence on technology based
communication may negatively impact the relational development. If
Dell's management does not improve the ways of communication existing
in the company, the company may not grow in a changing corporate
environment.
Solution
To improve its communications, Dell's upper management can work more
effectively with the departments which communicate with marketing
constituencies and create a stronger corporate mission.
The publicity of any product depends on how a marketing department
communicates with customers and deals with customers' activities.
Increased e-mail dependence can cause information overload for
employees. As e-mail is an informal channel of communication, it isolates
employees and prevents them from interacting with others. This issue
can be solved by adopting face-to-face communications through
meetings, team building activities, and company outings.
Dell should communicate closely with the entities that deal with marketing
and involve face-to-face communications within the company. Increased
internal and external communication can help Dell to align its image with
identity and help to improve relationships to become a successful
company in the changing corporate environment.
Discussion Questions:
1. What is Dell’s issue regarding communication?
(Hint: Refer ‘Issue’ section of the case study)
2. What are advantage and disadvantage of communication through E-
mail?
(Hint: Refer ‘Issue’ and ‘Solution’ sections of the case study)
(Source: http://www.slideshare.net/HMueller11/dell-case-study)

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Reference:
 Gamble, T. K. & Gamble, M. (2010). Communication Works. 9th ed. New
Delhi: Tata McGraw-Hill.
E- References:
 http://www.cric.com.au/seaanz/resources/18BurnettMcMurray.pdf –
Retrieved on November 15, 2011.
 http://www.slideshare.net/HMueller11/dell-case-study – Retrieved on
November 15, 2011.
 http://changingminds.org/explanations/behaviors/body_language/haptic_
touch.htm – Retrieved on January 9, 2012.
 http://communicationtheory.org/non-verbal-communication/ – Retrieved
on January 9, 2012.

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Business Communication Unit 3

Unit 3 The Nature of Business Communication

Structure:
3.1 Introduction
Objectives
3.2 Types of Business Communication
Internal business communication
External business communication
3.3 Communication Network in Organisations
Formal communication network
Informal communication network
3.4 Summary
3.5 Glossary
3.6 Terminal Questions
3.7 Answers
3.8 Case Study

3.1 Introduction
In the previous unit, we discussed the channels of communication, the
relative advantages and disadvantages of the different types of channels of
communication. We also learnt the guidelines to choose the right channel in
a particular business situation. In this unit, we will discuss the specifics of
business communication and what it involves. We will discuss how a
manager has to maintain communication linkages with different entities,
both within and outside the work environment. We will also, explain some of
the appropriate channels for communication with different audiences.
Finally, we will examine how communication flows within an organisation,
both through official and unofficial channels.

UNISON is the largest trade union in U.K. Internal communication occurs

between the employees of the organisation. External communication
occurs between the employees of the company and external
stakeholders.
UNISON makes use of the following types of internal communication:
 Workshops to get people involved
 Project groups to address issues and assist in making a policy come
into action.

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 An in-house magazine called InsideOut which is distributed to all the

staff members
The in-house magazine focuses on the challenges and issues for staff.
These include details of the new headquarters of UNISON, facts on same
pay issues for UNISON members and other details within the
organisation.
Internal communications can occur through e-mail, posters, staff-
meetings, and documents.
As UNISON has about 1,300 local branches, external communications
are also an important part of the organisation. With such a huge number
of local branches, it may need to convey issues to receivers and other
participants. UNISON uses its website as one of the means of
communication with the outside world. It also uses leaflets, booklets, and
other information for the following purposes:
 To handle issues such as collective bargaining, health management,
etc.
 To provide legal advice.
(Source: http://www.thetimes100.co.uk/case-study--using-effective-
communications--38-253-2.php)

Objectives:
After studying this unit, you should be able to:
 explain the different types of communication in an organisation
 list the different “‘stakeholders”’ with whom an organisation has to
communicate internally and externally.
 explain the primary reasons for communication with each stakeholder.
 select the most effective channel for communication with each
stakeholder.
 describe how information flows within an organisation
 discuss the advantages and limitations of formal and informal
communication networks

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3.2 Types of Business Communication

Business communication is diverse and involves both ‘internal stakeholders’
within the organisation, as well as ‘external stakeholders’ outside the
organisation. A manager has to constantly communicate with and maintain
good relations with each of these stakeholders or public. This will enable the
organisation to achieve its overall goals and project a favourable image.
The figure 3.1 depicts the wheel of business communication.
The Wheel of Business
Communication
Bankers Media Superiors

Peers

Society

Subordinates
Management

Government

Shareholders
Intermediaries
Employees/
Customers
Suppliers Unions

Fig. 3.1: Wheel of Business Communication

The wheel of business communication reinforces what we discussed in the

very first unit – communication is like breathing, it never stops and is a
constant process. Managers have to stay in continuous touch with their
internal stakeholders like their superiors, peers, subordinates, shareholders,
employees and unions. At the same time managers have to communicate
with external stakeholders such as customers, intermediaries (distributors
and retailers), suppliers of materials and components, government, bankers,
society at large and the media. Effective business communication therefore
involves both internal as well as external communication. We will now look
at some of the reasons for communication with internal and external
stakeholders, as well as the appropriate channels to be used in each case.
3.2.1 Internal business communication
Internal business communication is the exchange of information within a
company. As illustrated in the figure 3.1, internal business communication
involves interaction with the following stakeholders:
 Superiors
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Business Communication Unit 3

 Peers
 Subordinates
 Employees/Unions
 Shareholders
Let us now discuss the communication involved with these internal
stakeholders.
Superiors
Every organisation has a formal reporting system. Superiors are the higher
ups in the organisation to whom you report. The frequency of interaction
with them will vary, depending on your position and responsibilities, as well
as their need for information. As a salesperson, you may have to submit
daily or weekly reports of sales progress. As a marketing manager, you may
be required to make periodic presentations on marketing strategy for new
product launches to the Vice President, Marketing. Occasionally, you may
also approach your superiors to communicate your feelings about your job,
unsolved problems with co-workers and your suggestions for improvement
of the organisation.
Communication with superiors could be through written channels, such as
reports, or through oral face-to-face channels, such as presentations and
one-to-one meetings. When trying to solve problems or improve
relationships, oral face-to-face channels are most effective, as explained in
the previous unit.
Peers
Peers are your co-workers, or people at the same level within an
organisation. For example, a marketing manager and an HR manager are
peers, since they work at the same level within different departments.
Communication between peers is essential for functional coordination. An
Advertising Manager for example, will need to communicate with the
Finance Manager regarding approval of the advertising budget for a new
product launch. Information sharing is another reason for communication
between peers.
The Advertising Manager and the Sales Manager in the Marketing
Department may need to communicate regarding the special features of a
product to be highlighted in an advertising campaign. Regular

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communication between co-workers in different departments is also

essential to ensure that they work together as a team to achieve the
common goals of the organisation.
The most appropriate channel of communication between peers is the oral
face-to-face channel, since it helps to build good rapport and improves work
relationships.
Subordinates
Subordinates are people in the organisation who work below you or report
directly to you. For example, as the Marketing Manager, you may have
Assistant Managers reporting to you, who in turn may have Marketing
Executives reporting to them. The most common reason for communication
with subordinates is to convey organisational procedures, policies, targets
and goals. Other reasons include performance appraisal and feedback,
reward and recognition aspects and disciplinary issues.
Appropriate channels of communication with subordinates may be both oral
and written, depending on the situation. Communicating about
organisational procedures is best done through written communication. But,
performance appraisal and feedback should be done through an oral one-to-
one meeting and discussion.
Employees/Unions
Employees/unions can be quite powerful. Therefore communication with
them is essential. The reasons for communication include welfare aspects,
disciplinary aspects and terms of employment. All these should be clearly
spelt out and kept on record. Hence written channels such as written
contracts are the most appropriate channels.
Shareholders
Shareholders are very important internal stakeholders, since they are the
owners of the company. Therefore, it is essential to be completely
transparent with shareholders and to keep them informed of all
developments in the company. It is essential to communicate with
shareholders to keeping them informed about the following:
 company’s progress on different fronts
 Development programmes
 New projects undertaken by the company

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 New capital issues

 Any major problems faced by the company
 The steps being taken to tackle the major problems
This is part of public relations, through which the company projects a
positive image of itself in the eyes of shareholders.
The appropriate channels of communication with shareholders include oral
and written channels. Communication with the shareholder is done through:
 Meetings
 Conferences
 Letters
 Brochures
 Advertisements
Before we move on to external business communication, let us sum up our
discussion on internal communication. The table 3.1 highlights the
appropriate channel(s) to be used and the primary objective of
communication with each of the internal publics.
Table 3.1: Selecting Appropriate Channel and Primary Objective of
Communication
Stakeholder Channel Overall objective
Written reports Awareness of progress
Superiors Presentations Suggestions and feedback
Meetings Problem solving
Coordination
Peers Face-to-face meetings Teamwork
Information sharing
Written communication Compliance with instructions and
Subordinates Face-to-face meetings policies. Review of work progress
Feedback
Employees/ Written communication Employee satisfaction and welfare
Unions
Shareholders Meetings Building trust and confidence
Advertisements
Brochures

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Self Assessment Questions

1. Communication between peers is essential for _______________
coordination. (Pick the right option)
a) Functional
b) Organisational
c) Managerial
d) Statistical
2. Shareholders are very important internal stakeholders, since they are
the ______________ of the company.
a) Managers
b) Owners
c) Directors
d) Union members
3. In Employee/Unions communication, _____________ contracts are the
most appropriate channels.
4. The appropriate channels of communication with shareholders include
__________ and _____________ channels.

3.2.2 External business communication

Before we discuss the reasons for communication with external
stakeholders, it is important that you understand the overall importance of
external business communication. External business communication is
essential to:
 Market successfully
 Build a favourable corporate image
 Increase shareholder value
 Overcome a crisis
 Enhance credit rating
Let us now examine the reasons which make external business
communication essential.

Market successfully
For successful marketing, organisations need to inform and create
awareness among consumers about their existing and new products. This is
largely done through advertising, which is a form of mass communication.
This is very much a part of external business communication.
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Build a favourable corporate image

Today, organisations need to focus on projecting themselves as responsible
corporate and social citizens. This is known as corporate social
responsibility. For example, they need to communicate the fact that they are
involved in social development or in environmental protection. This involves
being in touch with various external stakeholders, especially consumers,
media and the society at large.
Increase shareholder value
When Icustomers have a positive image of the company, the company’s
share value will increase and the shareholders’ wealth increases, thereby
enhancing shareholder value. Shareholder confidence in the company also
drives shareholder value. When shareholder value increases, they will
participate in the company’s expansion and growth.
Overcome a crisis
Sometimes when a company is facing a crisis, a public relations campaign
may be needed to:
 Manage the situation
 Put things in a proper perspective
 Restore the image of the company in the eyes of consumers, the media
and society
Public relations require effective communication with various external
stakeholders.
For example, a few years ago, Reliance was prosecuted by the government
for irregularities in the stock market. Shareholders lost confidence in the
company. Reliance then mounted a counter campaign against the
government, where they told the truth, gave the facts and figures and denied
the allegations made against them. This helped them to regain lost
confidence and salvage their image.
Similarly, when Coke and Pepsi were accused of pesticides in their soft
drinks, they had to undertake a massive public relations exercise to set right
their image in the eyes of the public.
Enhance credit rating
An organisation’s credit rating will also go up if it maintains good external
communication. This way its borrowing ability will increase. The organisation
can also raise more money for expansion and growth.
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Having emphasised the importance of external business communication, let

us now go into the reasons for communicating with external stakeholders
and the channels used to communicate with them, just as we did with
internal communication.
The wheel of business communication, shown in figure 3.1, illustrates that
external business communication involves interaction with the following
stakeholders:
 Consumers
 Intermediaries
 Suppliers
 Government
 Society
 Bankers
 Media
Let us briefly discuss the business communication done with these
stakeholders.
Consumers
Organisations need to communicate with consumers to provide information
about:
 Their products and services
 Special promotional offers
 New product developments
Organisations also need to redress consumer complaints, so as to maintain
consumer preference and confidence in their brands.
The written channel is the most appropriate medium for communicating with
consumers. This could take the form of letters, or mass media advertising.
Intermediaries
Intermediaries refer to the trade – distributors, wholesalers, retailers,
franchisees, etc. It is necessary to communicate with them to provide
information about:
 Product availability
 Special offers
 Incentives
 Allowances

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 Contractual aspects
 Order processing
 Delivery aspects
 Merchandising or the visual display of products
Keeping intermediaries aware and informed and motivating them to meet
targets through competitions, prizes and incentives is extremely important
for the success of any product.
The appropriate channels of communication with intermediaries could be
both oral and written channels. Some examples of written channels are:
 Written contracts
 Advertisements announcing special offers and incentives
 Dealer newsletters inviting dealers to share their experiences
Some examples of oral channels are:
 Periodic review meetings
 Continuous communication through sales staff.
Suppliers
These are suppliers of raw material, components, power, water or other
utilities. Communication with suppliers is essential to give technical
specifications, ensure quality and timely delivery. Today, due to
‘outsourcing’ or relying on outside sources for raw materials and
components, there is need for more sophisticated and direct communication
and a more continuous, on-going relationship with suppliers. The Internet
now plays an important role in communication with suppliers in ‘Business to
Business’ (B2B) communication.
Many organisations today enter into a partnership with their suppliers,
whereby there is total involvement on both sides. For example, a company
engineer might train the shop floor technical staff of a supplier of automotive
components, in order to improve the quality of the components. The supplier
may suggest a change in the company’s specification process.
Direct, one-to-one communication is required with suppliers to ensure
transparency and clarity, with respect to specifications. The oral face-to-face
channel is most appropriate, although the online channel is being
increasingly used in supplier communication.

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Government
Communicating with the government is particularly important in the Indian
context and is a part of public relations. Many Indian companies even
appoint a PR officer for maintaining good relations with the government. The
reasons for communicating with the government include compliance with tax
matters and legal aspects, seeking clearances for new activities such as
joint ventures, borrowing from overseas banks, foreign exchange
requirements, etc.
Communication with the government could take place through both oral and
written channels. Periodic meetings may be held with regard to statutory
compliances such as licensing. However, most of the time, written
communication through formal letters is more appropriate. This is because
clearances for various activities have to be sought in writing.
Society
As pointed out earlier, organisations need to communicate with the
community at large to project themselves as responsible corporate citizens.
‘Corporate social responsibility’ as it is called, is top priority with many
organisations today. Some of the ways in which companies are participating
in social development are:
 Supporting women’s education
 Building hospitals for the disabled
 Building schools for children
 Encouraging family planning
 Ensuring that they do not pollute the environment
Organisations communicate these measures to the society.
The channels of communication with society could be oral and direct – for
example, talking to elders in a village or locality, about family planning or
schools for children. Mass media advertising in the form of ‘public service
advertising’ could also be used to spread these social service messages
For example, United Breweries ran a public service campaign with the
caption ‘Drinking and driving don’t mix’, to spread the message of avoiding
drunken driving.
There is a large element of public relations in communication with society.

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Bankers
Like shareholders, organisations need to communicate with bankers both in
good times and bad times. The reasons for communicating with bankers are
the same as those for shareholders. In addition, advance notice needs to be
given to bankers regarding any dislocation in repayment schedules and
justification has to be provided for any additional fund needs. The overall
purpose is to build rapport with the bank, so as to increase borrowing ability.
Communication with bankers could take place through oral channels – for
example, periodic meetings with the Finance Manager of the company to
keep them informed of stock build up trends, or future trends that could
affect working capital needs. Special meetings may also be held to keep
them posted about expansion, contraction and diversification plans,
lockouts, strikes and anything else that may affect cash flow.
In addition to oral channels, periodic written reports need to be submitted to
the bank on overall business conditions. Transparency is needed in dealings
with the bank and failure to keep them informed could lead to the company’s
collapse.
For example, the Enron Company did not communicate with their
shareholders and bankers about the difficult times that they were going
through. This ultimately led to the company’s ruin.
Media
Today, the media are becoming more powerful and investigative. They are
intruding into people’s personal lives. If wrongly informed, the media can
destroy an institution. Therefore, the primary reason for an organisation to
communicate with the media is to maintain good relations. If the company
projects a favourable image to the media, the media in turn will carry a
positive story about the company for free. This is known as ‘publicity’ and is
part of public relations.
For example, a press release in a newspaper may highlight some of the
achievements or awards won by the company. This type of publicity is highly
credible and can have a powerful influence on public opinion.
Communication with the media takes place through both oral channels such
as press conferences, as well as written channels such as letters and news
releases.

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As we did with internal business communication, let us sum up our

discussion on external business communication as shown in the table 3.2.
Table 3.2: External Business Communication

Stakeholder Channel Overall Objective

Advertisements Awareness
Consumers Letters Information
Persuasion
Written Contracts
Intermediaries Newsletters Awareness
Advertisements Information
Review Meetings Motivation
Suppliers Direct Oral Communication On-going Relationship
Online Communication Partnership
Government Periodic Meetings Government Cooperation
Formal Letters
Society Direct Oral Communication Corporate Social
Advertisements Responsibility
Bankers Periodic and Special Meetings Good Rapport
Written Reports More borrowing ability
Media News conferences Good Relations
News Releases

Activity 1:
Describe the nature of your current job or a job that you would like to take
up in future. List the primary stakeholders that you have to communicate
with and the reasons for communication with each stakeholder.
(Refer section 3.2 for detailed guidelines.)

Self Assessment Questions

5. Match the following:
Set A
A. Mass communication
B. Corporate Social Responsibility
C. Crisis PR

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D. Distributors
E. Internet
F. Statutory compliance
G. Transparency
H. Credit rating
I. Publicity
J. Persuasion

Set B
1) Government
2) Advertising
3) Suppliers
4) Social development
5) Bankers
6) Borrowing ability
7) Media
8) Consumers
9) Motivation
10) Restoring company image
6. Transparency is needed in dealings with the bank and failure to keep
them informed could lead to the company’s collapse. (True/False)
7. To give technical specifications and to ensure quality and timely
delivery, communication with society is essential. (True/False)

3.3 Communication Network in Organisations

A communication network refers to how information flows within the
organisation. Information within an organisation generally flows through a
system, rather than being a free flow. In the words of Adler, ‘Communication
networks are regular patterns of person-to-person relationships through
which information flows in an organisation.’ This means that the flow of
information is managed, regulated and structured.
Communication networks may be formal or informal. We will deal with each
of these in some detail.
3.3.1 Formal communication network
A formal communication network is one which is created by management
and described with the help of an organisational chart. An organisational
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chart specifies the hierarchy and the reporting system in the organisation.
Therefore, in a formal network, information is passed on only through official
channels such as memos, bulletins and intranet (email within the
organisation).
Figure 3.2 depicts a sample organisation chart.

Fig. 3.2: A Sample Organisational Chart

In the organisation chart of figure 3.2, the Chief Executive reports to the
Board of Directors, the Managing Director reports to the Chief Executive.
The Finance Manager, Travel Manager and the Marketing Manager report
to the Managing Director. The supervisors of each department report to their
respective managers and the employees of the department report to their
supervisors. The organisational chart implies that information can flow in
any of two directions – vertically (upward or downward) and horizontally.
Let us now discuss the different flows of communication in an organisation.
Upward communication
Upward communication may be defined as information that flows from
subordinates to superiors. In figure 3.2, the arrows 1 and 2 indicate some
upward communication. Arrow 1 indicates the upward communication from
the Finance Manager to the Managing Director. Arrow 2 indicates the
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upward communication from the employees of the Finance Department to

their Supervisor. Some of the reasons for upward communication include:
 Discussing work related problems
 Giving suggestions for improvement
 Sharing feelings about the job and co-workers
This type of communication has both benefits and disadvantages. The
benefits are as follows:
 Problem-solving is one of the biggest benefits of this type of
communication. Once a subordinate has brought a problem to his
superior’s notice, chances are that the problem will not recur, since the
subordinates learn from their superior how to tackle it the next time.
Thus, the subordinates’ ability to solve new problems and therefore their
managerial ability, improves.
 Valuable ideas and suggestions may sometimes come from lower level
employees. Therefore, organisations should encourage this kind of
communication.
 Employees learn to accept the decisions of management and thereby
work as a team.
The biggest problem associated with this type of communication is that it
may lead to ‘handing down’ of decisions by superiors. When subordinates
frequently seek the superior’s guidance, the latter may adopt an
authoritarian approach and merely give instructions, disregarding the
subordinate’s opinion completely.
Downward communication
Downward communication may be defined as information that flows from
superiors to subordinates. In figure 3.2, the arrows 3 and 4 indicate some
downward communication. Arrow 3 indicates the downward communication
from the Managing Director to the Travel Manager. Arrow 4 indicates the
downward communication from the Supervisor of the Travel Department to
the employees. The most common reasons for downward communication
are:
 For giving job instructions
 Explaining company rules, policies and procedures
 Giving feedback regarding job performance

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A number of studies have indicated that regular downward communication

in the form of feedback given to employees is the most important factor
affecting job satisfaction. Therefore, organisations today are trying to
encourage more of this type of communication.
There are both benefits and disadvantages associated with this type of
communication. The benefits are as follows:
 Downward communication that provides regular feedback will be
beneficial if the feedback or review of performance is constructive. A
constructive review is one where a manager ‘counsels’ an employee, or
advises him/her on how to improve performance. On the other hand, a
destructive review can destroy employee morale and confidence.
 Regular downward communication also creates a climate of
transparency or openness, where information is passed on through
official channels, rather than through rumours.
 Downward communication boosts employee morale, since it indicates
that management is involved in their progress.
The problems with this type of communication are the danger of doing
destructive reviews, as mentioned, and that of ‘message overload.’ This
means that superiors may sometimes burden their subordinates with too
many instructions, leading to confusion.
Horizontal communication
Horizontal communication is also known as ‘lateral’ communication. It may
be defined as communication that takes place between co-workers in the
same department, or in different departments, with different areas of
responsibility. For example, Sales Managers and Advertising Managers in
the Marketing department, or Marketing Managers and Finance Managers.
In figure 3.2, the arrows 5 and 6 indicate some lateral communication. Arrow
5 indicates the lateral communication from the Marketing Manager to the
Travel Manager. Arrow 6 indicates the lateral communication from the
employees of the Marketing Department to the employees of the Travel
Department.
The reasons for this type of communication are for coordination of tasks,
sharing of information regarding goals of the organisation, resolving
interpersonal or work related problems and building rapport.

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The biggest potential benefit of horizontal communication is the sense of

teamwork that is created. Regular communication of this type ensures that
all co-workers work together towards achieving a common goal in the
overall interest of the organisation.
The biggest potential problem is that conflicts such as ego clashes are
bound to arise, when co-workers at the same level communicate on a
regular basis.
In spite of these problems, horizontal or lateral communication has become
more important in today’s business scenario than upward or downward
Multi-layer Organizational Pyramid
communication. This is because the ‘organisational pyramid’ indicating the
different hierarchies or levels in an organisation has flattened. This is
illustrated by the figures 3.3 (a) and 3.3 (b).
The figure 3.3 (a) depicts the multi-layer organisational pyramid.

General Manager

Manager Manager

Asst Manager Asst Manager Asst Manager Asst Manager

Executive Executive Executive Executive

Compressed Organizational Pyramid

Executive Executive Executive Executive

Fig. 3.3 (a): Multi-layer Organisational Pyramid

The figure 3.3 (b) depicts the multi-layer organisational pyramid.

General Manager

Manager Manager Manager Manager Manager Manager

Fig. 3.3 (b): Compressed Organisational Pyramid

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The figure 3.3 (a) illustrates the previous organisational pyramid which was
a ‘multi-layer’ pyramid. In this type of pyramid, vertical, i.e., upward and
downward communication still plays an important role. This is still the case
in many traditionally run organisations today.
However, this has been replaced by a ‘compressed’ or flattened pyramid
where the hierarchy has diminished, as shown in the figure 3.3 (b). Thanks
to technology and computers which help in faster decision making, a
manager today has a larger span of control. He or she can supervise and
control more number of people than before. This in turn has led to greater
‘empowerment’, which means that even lower level employees are now
being given decision making authority. Therefore, in the absence of several
layers, there is greater lateral communication than before.

3.3.2 Informal communication network

Another name for informal networks is the ‘grapevine’. In this type of
network, information does not flow in a particular direction, as we have seen
with formal networks. The information is also not passed on through official
channels such as memos, notices or bulletin boards. The information need
not be circulated within the organisation, but could be passed on outside the
work environment, wherever co-workers or colleagues meet socially. Thus,
informal networks are based more on friendship, shared personal or career
interests.
For example, co-workers may meet outside the work environment at a
company picnic, party or a car pool and discuss areas of common interest
that may or may not be work related. Information may then be passed on to
each other about happenings in the company, such as layoffs, the
company’s plans for acquisitions etc. Such communication is free from any
formalities.
This type of informal network is not just for idle rumours and may be useful
in many ways. First of all, it sometimes fills in the ‘transparency gaps’ left by
formal networks. Such gaps usually occur during times of crisis such as
strikes or layoffs. The strikes and layoffs may not be officially announced.
Secondly, it may help to confirm important information, such as the fact that
the company is going in for a major acquisition. Thirdly, the grapevine can
be used for a constructive purpose by the organisation.
For example, the government could get the press to publish news in the
local paper that there is going to be a petrol price hike soon, just to test the
reactions of the general public. If the reaction is negative, then the news

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may be withdrawn on the basis that it is just a rumour. Similarly,

organisations could deliberately plant proposals in the minds of their
employees, just to test their reactions.
Given that informal communication networks have their advantages, they
should not be suppressed as rumours. On the contrary, competent
managers should accept the informal network. At the same time, they
should make efforts to counter false rumours and to ensure transparency
through the formal network. This means making all types of information -
both positive and negative, available to everyone in the organisation through
official channels.
The advantages of the grapevine communication are:
 Information spreads through the grapevine rapidly as it bypasses the
formal communication channels.
 The management can use the grapevine to quickly communicate
information informally.
 Managers and employees can use the grapevine to verify the accuracy
of the information that they receive.
 It is inexpensive.
 It gives employees a channel to express their anxieties and opinions
without any fear.
Managers must ensure that they do not use the grapevine to threaten
employees.
To conclude, it should be remembered that both formal and informal
networks should be cultivated and allowed to co-exist, so that information of
all types flow freely to all levels in the organisation.

Common mistakes made in communication:

Double negatives
A double negative occurs when two negatives are used in the same
sentence such that they cancel each other and imply a positive
meaning. Double negatives are considered to be grammatical mistakes.
For example, “You cannot be trusted with the job as you do not have no
experience”. This implies that “You cannot be trusted with the job as you
have experience”. This does not make any sense. You should instead
say, “You cannot be trusted with the job as you do not have any
experience.”

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Activity 2:
Correct the double negatives in the following sentences
1. I couldn't hardly understand what she said.
2. This attitude will not get you nowhere.
3. The new financial initiatives may not last hardly a month.
(Identify the two negatives in the sentences)

Self Assessment Questions

8. __________________ communication may be defined as information
that flows from subordinates to superiors.
9. An organisational chart specifies the _____________ and the
___________ system in the organisation.
10. The biggest problem associated with upward communication is that it
may lead to ‘handing down’ of decisions by _____________.
11. An advantage of regular downward communication is ____________.
12. Formal communication networks are based more on friendship, shared
personal or career interests. (True/False)
13. Regular downward communication in the form of feedback given to
employees is the most important factor affecting job satisfaction.
(True/False)

3.4 Summary
Let us recapitulate the important concepts discussed in this unit:
 A manager has to stay in constant touch with the stakeholders, both
inside and outside the organisation. Therefore there are two aspects to
business communication – internal and external communication.
 The internal stakeholders include superiors, peers, subordinates,
shareholders, employees and their unions.
 The external stakeholders include consumers, intermediaries, suppliers,
government, society, bankers and the media.
 Communication with superiors is primarily for reporting progress,
providing feedback or solving work related problems.
 Peers need to communicate for coordination and information sharing.

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 Communication with subordinates is mainly to review progress and give

instructions.
 Among the internal publics, shareholders are particularly important. The
main reasons for communicating with them are to keep them informed
about all developments in the company and to win their confidence.
 Communication with external publics such as government, society and
the media involves a large element of public relations, or projecting a
favourable image of the company.
 Today, organisations are focusing on corporate social responsibility by
participating in social development.
 Since the media are becoming more powerful, it is essential to maintain
good relations with them.
 Communication with the government and bankers should be of a more
formal nature. It should be largely through written channels.
 Supplier communication is becoming more sophisticated through online
(B2B) channels. Consumers and intermediaries also need to be
informed about the company’s products.
 There are two types of networks – formal and informal.
 A formal network is determined by an organisational chart and hierarchy.
 In formal networks, information can flow in two directions – vertically
(upward or downward) and horizontally.
 The main advantage of upward communication is that valuable
suggestions could be given by subordinates to superiors. The
disadvantage is that the opinions of subordinates could be disregarded.
 Downward communication has the advantage of constant feedback
being given to subordinates and a climate of openness being created.
The drawback is that feedback may not always be constructive.
 The biggest advantage of horizontal communication is teamwork and
coordination.
 An informal network or grapevine refers to information flow through non-
official channels outside the work environment. It is based on friendship
between co-workers.
 The informal networks may fill in the gaps left by the formal network, or
help to confirm important news regarding the organisation.

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3.5 Glossary
Authoritarian: Encouraging or favouring strict obedience to authority.
Ego clashes: Arguments or disagreements between conceited people
having the same character or status.
Leaflet: A text or picture message on a sheet of paper. There is no standard
size, shape, or format for a leaflet.
Marketing strategy: A long-term course of action that that is designed to
utilise an organisation’s resources optimally to provide superior customer
services.
Outsourcing: The process of transferring tasks and services, which were
previously performed internally, to the external vendors.
Stakeholder: A person or institution who can influence the organisational
policies or who is affected by the policies of an organisation.

3.6 Terminal Questions

1. In your opinion, who are the most important internal and external
stakeholders that a manager needs to communicate with? Why does a
manager need to communicate with these stakeholders?
2. Explain why ‘public relations' is an important part of external business
communication.
3. What are the relative advantages and disadvantages of horizontal
communication in organisations?
4. “Informal communication network is not just for idle rumours and may be
useful in many ways.” Justify.

3.7 Answers

Self Assessment Questions

1. Functional
2. b) Owners
3. Written
4. Oral, Written
5. A - 2 , B - 4, C - 10, D - 9, E – 3, F - 1, G - 5, H - 6, I - 7, J – 8
6. True

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7. False. To give technical specifications and to ensure quality and timely

delivery, communication with suppliers is essential. (True/False)
8. Upward
9. Hierarchy, Reporting
10. Superiors
11. Transparency/openness
12. False. Informal communication networks are based more on friendship,
shared personal or career interests.
13. True

Terminal Questions
1. Superiors, peers, subordinates, employees/unions, and shareholders are
the most important internal stakeholders that a manager needs to
communicate with. For more details, refer section 3.2.
2. Organisations need to communicate with the community at large to
project themselves as responsible corporate citizens. For more details,
refer sub-section 3.2.2.
3. The biggest potential benefit of horizontal communication is the sense of
teamwork that is created. The biggest potential problem is that conflicts
such as ego clashes are bound to arise. For more details, refer sub-
section 3.3.1.
4. Informal communication network sometimes fills in the ‘transparency
gaps’ left by formal networks. For more details, refer sub-section 3.3. 2.

3.8 Case Study

Strategic Internal Communication at UBS Wealth Management

UBS is one of the leading global wealth managers and largest global
asset managers. The wealth management business of UBS desired to
strengthen client relationships by communicating a new brand promise:
'you and us'.
A company ‘Workwise Communication’ helped UBS Wealth Management
to develop their internal communications department to facilitate a
centralised, world-wide communication network. UBS wanted to develop
a more strategic function transforming from being 'order takers' to
‘business partners’.

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Training program approach

The internal communication development programme had a three stage
approach. The three different stages were:
1. Pre-work
2. Two day development workshop
3. Telephone coaching
In the first stage, the participants were provided with appropriate best
practice case studies and asked to consider three queries based on the
case studies. The weekly conducted conference call allowed the
participants to discuss their responses and learning. In the second stage,
the participants were asked take part in a two day development
workshop. In the third stage, the participants who wished to take new and
challenging projects were provided telephone coaching. Workwise
Communication also worked with the participants to develop an internal
communication toolkit.
Internal communication team's new organisational structure
The participants initiated action plans and assigned projects to
strengthen the learning process at workplace. The participants were
more confident in their new roles. The initial review of the new
organisational structure showed that the individual coaching helped the
participants in introducing new initiatives. A relationship manager helped
senior communication team members who needed to manage one or two
functional areas.
Supporting a leadership visibility programme
Workwise Communication established a senior leadership visibility
programme for the senior team that conducted more meetings and
travelled to other locations. The communications teams helped the
leaders by providing required materials for events like town hall meetings.
The relationship manager supported face-to-face and one-to-few
communications with streamlined internal messaging instead of mass
communication.
Discussion Questions:
1. Explain the three stages of internal communication program.
(Hint: Refer Training program approach of the case study)
2. What are the review results of the new organisational structure?
(Hint: Refer Internal communication team's new organisational
structure of the case study)
(Source: http://www.workwisecommunication.com/docs/CS1.pdf)

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Reference:
 Kushal, S. J., & Ahuja, S. (2009). Business Communication. New Delhi:
V. K. (India) Enterprises.

E-References:
 http://www.thetimes100.co.uk/case-study--using-effective-
communications--38-253-2.php – Retrieved on November 15, 2011.
 http://www.workwisecommunication.com/docs/CS1.pdf – Retrieved on
November 15, 2011.

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Business Communication Unit 4

Unit 4 The Importance of Listening in the Workplace

Structure:
4.1 Introduction
Objectives
4.2 Listening - Overview
4.3 Barriers to Listening
4.4 Strategies for Effective Listening
4.5 Listening in a Business Context
Listening to customers
Listening to employees
Listening during job interviews
4.6 Effective Questioning
4.7 Summary
4.8 Glossary
4.9 Terminal Questions
4.10 Answers
4.11 Case Study

4.1 Introduction
In the previous unit, we discussed the channels of communication, the
relative advantages and disadvantages of the different types of channels
and guidelines on how to choose the right channel in a particular business
situation. In this unit, we will discuss the importance of listening in the
workplace. We will examine the barriers to listening and discuss methods to
be adopted for better listening in the workplace.
Listening is the most important of all the aspects of communication. In fact,
listening precedes communication. It occurs more frequently on the job than
even speaking, reading or writing. The new model of business, based on
teamwork, requires more effective listening skills than before for greater
coordination.

A survey conducted on about 400 project managers showed that nearly

80% of the manager's time is spent in face-to-face interpersonal
communication with employees. The survey was conducted through
interviews and questionnaire. It was found that although the content of

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the oral message is important, the way in which the message is

conveyed and its credibility is the key to the impact of the message on
the receiver.
Another survey conducted on more than 300 members of the academy of
Certified Administrative Managers identified 20 important managerial
skills which the managers consider for 20:80 rule. Among the 20 skills,
the participants rated four as 'super critical', seven as 'highly critical' and
nine as 'critical'. The four 'super critical' skills are:
 Active listening
 Providing clear effective instructions
 Managing individual's responsibility
 Identifying the actual problem
The interesting factor of these skills is that all the skills are co-related with
communication and listening is given much importance in all these skills.
(Source: http://www.accel-team.com/communications/busComms_02.html)

This unit provides answers to questions like:

What is the difference between ‘hearing’ and ‘listening’?
What are the barriers to effective listening?
What are different ways to overcome the barriers of effective listening?
What is the importance of listening in a business context?
Objectives:
After studying this unit, you should be able to:
 distinguish clearly between ‘hearing’ and ‘listening’
 categorise the main barriers to effective listening
 improve your listening skills by adopting specific strategies
 recognise the importance of listening in the workplace
 ask the right questions while listening

4.2 Listening – Overview

Listening is hard work and is more than just sitting passively and absorbing
a speaker’s words. According to Lundsteen, “Listening is a highly complex
process by which spoken language is converted to meaning in the mind”.

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Listening has been identified by Stephen Covey as one of the ‘seven habits
of highly effective people’, in his book with the same title. This definition
implies that listening is a skill which can be cultivated and developed, just
like speaking, reading or writing. Listening involves the following four steps:
 Hearing – In this step, you need to pay attention to ensure that you hear
the message clearly.
 Interpreting – In this step, you try to analyse the speaker’s words based
on your experience, attitude, knowledge and background. You also give
meaning to the words based on the gestures and expressions of the
speaker.
 Evaluating – In this step, you evaluate the information received and
make decisions accordingly.
 Responding – In this step, you let the speaker know whether you have
understood the message and respond to it.
Listening is often thought to be synonymous with hearing. The difference is
that while hearing is a passive process, listening is active. It means being
alert to and understanding the meaning behind the speaker’s words. While
listening, one is engaged in processing the information, reconstructing the
information and also giving meaning to the information.
This brings us to a discussion on the different types of listening.
Types of listening
There are seven types of listening. Figure 4.1 depicts the seven types of
listening.

Fig. 4.1: Types of Listening

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Let us now briefly discuss each of the types of listening shown in figure 4.1.
Discriminative listening
This is the most basic type of listening, whereby the difference between the
sounds is identified. Unless the differences between the sounds are
identified, the meaning expressed by such differences cannot be grasped.
Once we learn to distinguish between sounds in our own language, we are
able to do the same in other languages. One reason why people belonging
to one country find it difficult to speak the language of another country is that
they find the sounds similar and cannot understand the subtle differences.
Comprehension listening
Once we have learnt to discriminate between the different sounds, the next
step is to try to comprehend the meaning of these sounds. To do this, we
require a dictionary of words, along with the rules of grammar and syntax.
Apart from the verbal communication, we also need to understand the
meaning conveyed by the speaker’s non-verbal behaviour. This can be
achieved by closely observing various aspects of the speaker’s body
language and tone of voice.
Evaluative listening
This type of listening involves making judgements about what the speaker is
saying.
We listen critically and try to assess what is being said as good, bad, worthy
or unworthy.
We generally resort to this kind of listening when the other person is trying
to persuade us, change our behaviour or convictions. The tendency then is
to question what the speaker is trying to say.
Appreciative listening
This type of listening could be in the form of paying selective attention to
certain kinds of information which might be relevant to us, or which helps to
meet our needs and goals. The tendency is to appreciate such information
better. Appreciative listening is also used when listening to good music,
poetry or a powerful speech.

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Empathetic listening
In this type of listening, we try to put ourselves in the other person’s place
and understand the moods, beliefs, goals and feelings behind the speaker’s
words. It requires excellent discrimination and paying attention to the
nuances of emotional signals. It also requires a high degree of sensitivity
and tactful probing on the part of the listener.
Empathetic listening is most often needed at the workplace, when dealing
with customer complaints, employee feedback and problems. A manager
doing a performance appraisal with an employee, for example, should listen
to the employee’s point of view and understand the real reasons for lack of
performance.
Therapeutic listening
In this type of listening, the listener goes beyond merely empathising with
the speaker and tries to help the speaker to change or develop in some
way. In other words, the listener plays the role of a therapist, by diagnosing
the problem at hand and offering a remedy or solution. This type of listening
is common in social situations, where family and personal problems are
resolved through counselling.
It is also important in job situations, where managers try to solve the
problems of employees. Taking the same example of a manager doing a
performance appraisal, the manager should not only understand the
employee’s problems, but should also ‘counsel’ the employee by suggesting
what measures the employee could take to improve his/her performance in
future.
Dialogic listening
As the name suggests, this type of listening involves listening and learning
through dialogue. This implies that listening is a two-way, rather than a one-
way process. It involves interchange of ideas and information between the
speaker and the listener. This type of listening is active listening, whereby
the listener continuously seeks clarifications, gives feedback and engages in
conversation with the speaker. Another name for this is ‘relational’ listening,
since a relationship is established through the exchange of ideas.

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Self Assessment Questions

1. Which of the following types of listening could be in the form of paying
selective attention to certain kinds of information which might be
relevant to us, or which helps to meet our needs and goals?
a) Evaluative listening
b) Appreciative listening
c) Empathetic listening
d) Therapeutic listening
2. The meaning conveyed by a speaker’s ______________ behaviour
can be analysed by closely observing different aspects of the speaker’s
body language and tone of voice.
3. The type of listening that is used when listening to good music, poetry
or a powerful speech is ________________________.

4.3 Barriers to Listening

As pointed out earlier, listening is not easy and there are a number of
obstacles that stand in the way of effective listening, both within and outside
the workplace. These barriers may be categorised as follows:
 Physiological barriers
 Physical barriers
 Attitudinal barriers
 Wrong assumptions
 Cultural barriers
 Gender barriers
 Lack of training
 Bad listening habits
Let us now briefly discuss these barriers.
Physiological barriers
This was discussed earlier under the barriers to communication. Some
people may have genuine hearing problems or deficiencies that prevent
them from listening properly. Once detected, they can generally be treated.
Other people may have difficulty in processing information, or memory
related problems which make them poor listeners. Another physiological
barrier is rapid thought. Listeners have the ability to process information at

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the rate of approximately 500 words per minute, whereas speakers talk at
around 125 words per minute1. Since listeners are left with a lot of spare
time, their attention may not be focused on what the speaker is saying, but
may wander elsewhere.
Physical barriers
These refer to distractions in the environment such as the sound of an air
conditioner, cigarette smoke, or an overheated room, which interfere with
the listening process. They could also be in the form of information overload.
For example, if you are in a meeting with your manager and the phone rings
and your mobile beeps at the same time to let you know that you have a
message; it is very hard to listen carefully to what is being said.
Attitudinal barriers
Pre-occupation with personal or work related problems can make it difficult
to focus one’s attention completely on what a speaker is saying, even if
what is being said is of prime importance. Another common attitudinal
barrier is egocentrism, or the belief that you are more knowledgeable than
the speaker and that you have nothing new to learn from the speaker’s
ideas. People with this kind of closed minded attitude make very poor
listeners.
Wrong assumptions
The success of communication depends on both the sender and the
receiver, as we have seen in an earlier unit. It is wrong to assume that
communication is the sole responsibility of the sender or the speaker and
listeners have no role to play. Such an assumption can be a big barrier to
listening. For example, a brilliant speech or presentation, however well
delivered, is wasted if the receiver is not listening at the other end. Listeners
have as much responsibility as speakers to make the communication
successful, by paying attention, seeking clarifications and giving feedback.
Another wrong assumption is to think that listening is a passive activity, in
which a listener merely absorbs the thoughts of the speaker. On the
contrary, real listening or active listening is hard work – it requires you to ask
questions sometimes, agree or disagree with the speaker, give feedback,
etc.

1 http://assignmentstoday.com/?p=144
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Yet another barrier of this type is to assume that speakers are more
powerful than listeners. Speakers are seen as being in command of things,
whereas listeners are seen to be weak and lacking authority. According to
communication experts however, the reverse is true. Listeners are as
important and as powerful as speakers. In fact David J. Schwartz, writer and
management professor, emphasises the importance of listening in his book
‘The Magic of Thinking Big’ by saying “Big people monopolise the listening.
Small people monopolise the talking.”
Cultural barriers
Accents can be barriers to listening, since they interfere with the ability to
understand the meaning of words that are pronounced differently. The
problem of different accents arises not only between cultures, but also within
a culture. For example, in a country like India where there is enormous
cultural diversity, accents may differ even between different regions and
states.
Another type of cultural barrier is differing cultural values. The importance
attached to listening and speaking differs in western and oriental cultures.
Generally, Orientals regard listening and silence as almost a virtue, whereas
Westerners attach greater importance to speaking. Therefore, this would
interfere with the listening process, when two people from these two
different cultures communicate.
Gender barriers
Communication research has shown that gender can be a barrier to
listening. Studies have revealed that men and women listen very differently
and for different purposes2. Women are more likely to listen for the emotions
behind a speaker’s words, while men listen more for the facts and the
content.
Example – A salesperson giving a demonstration of a new type of office
equipment may be asked by two colleagues if the equipment will work
without any problems and respond by saying ‘Sure.’ A male user may take
the salesperson’s answer at face value, whereas a female user may detect
some hesitation in the salesperson’s voice. This is because the male user
listens for the content of the message, whereas the female user listens for
the tone of the message.
2 http://assignmentstoday.com/?p=144
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Lack of training
Listening is not an inborn skill. People are not born good listeners. They
have to develop the art of listening through practice and training. Lack of
training in listening skills is an important barrier to listening, especially in the
Indian context.
Lee Iacocca, former Chairman of the Chrysler Corporation in the US, was
one of the first to recognise the need for organised training programs in
listening skills. Today, many organisations both in India and abroad
incorporate listening skills in their training programs.
Bad listening habits
Most people are very average listeners who have developed poor listening
habits that are hard to shed and that act as barriers to listening. For
example, some people have the habit of ‘faking’ attention or trying to look
like a listener, in order to impress the speaker and to assure the speaker
that they are paying attention. Others may tend to listen to each and every
fact. This may result in them not understanding the main point. Yet another
habit is to avoid difficult listening and to tune off deliberately, if the subject is
too technical or difficult to understand. Sometimes, the subject itself may be
dismissed as uninteresting, because the listener does not want to listen.
A research conducted many years ago found that the organisational level
comprehension rating of 100% of listening at the board level is reduced to
20% at the workers level3. Poor listening can distort the original message.
Self Assessment Questions
4. Match the following:
Set A
A) Bad listening habit
B) Listening for emotion
C) Physical barrier
D) Attitudinal barrier
Set B
1) Egocentrism
2) Information overload
3) Tune off deliberately
3 Sehgal, M. K., & Khetrapal, V. Business Communication. p161.
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4) Listener speaker gap

5) Physiological barrier
5. Speakers talk at around 500 words per minute. (True/False)
6. Egocentrism is an attitudinal barrier. (True/False)

4.4 Strategies for Effective Listening

Although a number of barriers stand in the way of effective listening, these
can be overcome through conscious efforts, training and practice. Some of
the suggested methods to overcome barriers of effective listening are as
follows:
 Create a conducive environment
 Select face-to-face channels
 Be open-minded and avoid distractions
 Use non-verbal cues to indicate active listening
 Use verbal communication to indicate active listening
 Listen first before responding
 Use the speaker-listener gap constructively
 Do not be judgemental
Let us discuss each of these briefly.
Create a conducive environment
To an extent, you can try to control the environment in which communication
takes place, so that listening can take place without any distractions. The
physical barriers to listening can be overcome by:
 Ensuring a proper sound system and acoustics so that the speaker is
audible.
 Avoiding places with high levels of activity, loud noises from the outside
environment and poor air conditioning systems.
 Shutting off mobile phones and telephones.
Select face-to-face channels
Listening is less accurate in the absence of face-to-face communication. For
example, listening to and understanding ideas correctly over the telephone
is much harder than through a face-to-face meeting. Take the case of calling
a restaurant and placing orders over the telephone for home delivery of a

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meal. The chances are that your orders may not be understood correctly.
Therefore, as far as possible, arrange face-to-face contact to ensure more
accurate listening.
Be open-minded and avoid distractions
Listening is an exhausting activity which requires the right attitude and
mindset. You have to focus your attention completely on what the speaker is
saying, without letting your mind wander. This kind of concentration can be
developed through various techniques and through constant practice. In
addition, it is also important to rid yourself of the notion that you have
nothing new to learn from the other person. Even if it is a subject about
which you may be knowledgeable, the speaker may offer a different
perspective or point of view. Therefore, it is important to listen actively.
Use non-verbal cues to indicate active listening
It is important to communicate to the speaker that you are listening actively
to what he/she is saying. This can be done even without verbal
communication. All the different aspects of non-verbal communication
discussed earlier should be used for maximum effect. For example,
maintaining steady eye contact with the speaker, sitting up with an erect
posture, nodding now and then to show appreciation and understanding and
appropriate facial expressions are some of the ways in which your non-
verbal communication can indicate that you are involved in what the speaker
is saying.
Use verbal communication to indicate active listening
While non-verbal behaviour by itself can communicate that you are an active
listener, it is also important to engage in verbal communication with the
speaker. Silence is often interpreted as lack of understanding or attention. In
order to convey that you have understood the speaker’s message you need
to:
 seek clarifications.
 give feedback and suggestions.
 paraphrase in your own words what the speaker has said.
Listen first before responding
Always let yourself finish listening before you begin to speak. Avoid the
tendency to formulate your own response, even before you have listened
completely to the speaker’s words. If you are too busy thinking about what
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to say next, you may miss the main point that the speaker is trying to make.
This also gives the speaker the impression that you are pre-occupied or
rude.
Use the speaker-listener gap constructively
It was pointed out earlier that listeners have the ability to absorb information
faster than the speakers’ rate of speech. This spare time available to
listeners is often misused by letting the mind wander and is one of the
physiological barriers to listening.
One way of overcoming this barrier is to try to use this spare time to note
down what the speaker has said, review what has been said so far and
anticipate what the speaker may say next. Thinking ahead of the speaker
and trying to guess where his/her talk is leading is a good strategy for
effective listening. This is not easy, but can be learnt through proper
training.
Focus on the verbal and non-verbal message
Listening involves not only hearing and understanding the meaning behind
the words, but also being alert to the non-verbal behaviour of the speaker.
The importance of non-verbal cues has been emphasised throughout this
SLM. It is important to watch for any positive or negative messages that may
be conveyed through the speaker’s tone of voice, facial expressions,
gestures and outward appearance.
Focus on the content, rather than the delivery
In order to grasp the true meaning of what the speaker is saying, it is
important to concentrate on the content of the message, rather than on how
the message is delivered. For example, looking at the power point slides
during a speaker’s presentation may distract your attention from the main
point that the speaker is trying to convey. Similarly, being over critical of the
speaker’s accent or mannerisms may make you miss the essence of the
message.
Ask questions of yourself and make notes
In order to engage in active listening, you also need to ask certain questions
to yourself while listening. For example, “What is the key idea that the
speaker is trying to convey?”, “How does this fit in with I already know on
the subject?” or “How is this presentation organised?” are some possible
questions that you could jot down along with the answers.
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Do not be judgemental
Judgemental listening can destroy empathy. You can listen non-
judgementally by the following measures:
 Adopt a non-confrontational approach – This will make the other
person feel secure and open up.
 Identify common interests – Common interests help in bonding with
the speaker and create an atmosphere of trust.
 Avoid leading questions – Leading questions can be confrontational
and create frustration and anger.
 Avoid minimising the problem – When you minimise a problem, you
appear to be judgemental.
The table 4.1 sums up some of the characteristics of good listeners, based
on studies carried out on perceptions of listening behaviour.
Table 4.1: Characteristics of Good Listeners

 Considers all evidence before jumping to a conclusion.

 Takes notes when listening, in order to recall information or
understand a difficult idea.
 Concentrates on what the speaker is saying and not on unrelated
thoughts.
 Is willing to consider the opinions of others.
 Listens openly when others disagree with him.
 Encourages others to express their ideas, instead of occupying centre
stage.
 Is able to grasp the main idea from others’ comments.
 Is curious about other people and their ideas.
 Does not interrupt others, or change the topic to suit his/her purpose.
 Makes the speaker feel comfortable while talking.
 Remembers important ideas given by others, even when he is busy.
 Does not pretend to understand, when he is confused.
 Recognises that people may change over time and have something
new to offer.
 Tries to find solutions to others’ problems.
 Knows when to speak and when to listen.

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Activity 1:
Request a professor or a friend to give you a session on career
counselling. Assess your own listening skills by questioning the speaker
and paraphrasing (i.e., restating what the speaker says in your own
words) what the speaker says during the session.
(Refer section 4.4 for detailed guidelines)

Self Assessment Questions

7. The ______________ is often interpreted as lack of understanding or
attention.
8. Listening is not only hearing and understanding the meaning of the
words, but also being alert to the _________ behaviour of the speaker.
9. A good listener always occupies the centre stage. (True/False)

4.5 Listening in a Business Context

Effective listening is one of the essential qualities of a successful manager.
Studies conducted on the skills considered most crucial for managerial
ability have indicated that ‘active listening’ is rated as the most important.
According to the University of Missouri, in business, people spend about
70%-80% of time in some form of communication4. Another study conducted
on about 800 people working in hospitals, universities, businesses, the
military and government agencies found that virtually all of the people
believed that their communication is as or more effective than their
colleagues5. In other studies where business people were asked to describe
the communication skills that they considered most important and that they
wished they had been taught in college, listening figured on top of the list.
Listening is therefore crucial in a business environment. It can boost quality,
profits and productivity, whereas poor listening has the exact opposite
effect. Listening mistakes can lead to costly errors such as retyping of
important documents, rescheduling of important meetings etc.
Good listening skills can help you locate job openings, fare well in job
interviews and be selected for the job. Once you are on the job, listening

4 http://smallbusiness.chron.com/effective-listening-business-communication-3170.html
5 http://www.wright.edu/~scott.williams/skills/listening.htm
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becomes even more important. As a manager, you will have to listen to

superiors, subordinates, customers and other stakeholders. Listening has
been found to be particularly important in certain professions and industries.
The service industry, which is a fast growing industry both in India and
abroad, is one such example. In the insurance industry, it has been found
that good listening has led to career advancement. In the banking sector,
good listening skills have been found to distinguish a good bank manager
from a bad one. In the healthcare industry, listening to patients has been
useful in gathering more accurate information about them. According to a
Judi Brownwell a professor at Cornell, one of the top universities in the U.S.,
“Good service, in many respects, is good listening. In order to thrive in
highly competitive, rapidly changing environments, service employees must
learn to listen well.”6
Tom Peters, business consultant and co-author of the book “In Search of
Excellence”, emphasises the importance of listening to customers. He says
“Find out what the customers really care about and then act. Listening–
that’s the key.” Let us discuss the importance of listening to customers.
4.5.1 Listening to customers
Organisations today are beginning to recognise the importance of being
customer oriented. Customer orientation means identifying and then
satisfying customer needs, which in turn involves listening to what the
customer really wants. When measuring customer satisfaction, it is also
important to listen to and respond to customer complaints.
This is because a dissatisfied customer can create negative word-of-mouth
publicity for your product and company. Therefore, it is important to satisfy
and retain your existing customers, so that they remain loyal to your
company.
We will discuss some approaches for handling customer complaints and
listening to customers. The different approaches are as follows:
 Believe the customer – There is a saying that “The customer is the
king.” Therefore it is important to take the customers at their word, even
though they may not be telling the truth, rather than doubt what they are

6Adler, R. B. (2009). Communicating at Work: Principles and Practices for Business and the
Professions. U. S. A: McGraw-Hill, p71.
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saying. Even if the customers’ complaint may not be justified, it is

important to make an attempt to solve their problem.
 Listen actively – Make your customers feel that you are showing
empathy, or putting yourself in their place. When a customer starts to
complain, it is important to hear out the complaint completely, before
responding or offering a solution. Sometimes a customer may be rude,
angry and frustrated, but he/she needs to be handled tactfully. Once
he/she has vented his/her feelings, it would be a good strategy to repeat
the problem in an objective manner, to show that you have heard and
understood clearly. Consider the following example of how a sales
assistant in a medical shop deals with an angry customer: “What you are
saying is that you entered the shop, asked for and paid for 20 headache
pills. When you got home, you discovered that you had been given only
10, is that correct?” This is the best way to show the customer that you
have listened to and registered the complaint.
 Apologise – Even if the customer and not the company are at fault, it is
always a good idea to apologise to your complaining customer. From the
customer’s perspective, he/she is right and therefore expects an
apology. A sincere apology will go a long way in calming down an angry
customer. A general statement of apology such as “We are sorry for the
inconvenience caused to you” will be sufficient in such a situation. A
written letter of apology would also be effective in regaining the
customer’s trust and confidence in the company.
 Satisfy – There is a saying that “A satisfied customer is the best
advertisement for your product.” This is because such a customer will
spread positive word-of-mouth publicity about your product to others.
Therefore, it is important to identify your most valuable customers, listen
to them and make efforts to retain them, by offering them special
privileges from time to time.
 Thank – Even if the customer has launched a complaint, it is important
to thank the customer for bringing it to your attention, so that a solution
can be found. A customer complaint should be looked at in a positive
way - as an opportunity to solve a problem that did not exist earlier. In
the absence of the complaint, you may not have been aware of the
problem in the first place and this could have damaged the reputation of
the organisation.

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4.5.2 Listening to employees

In the earlier unit on organisational communication, we discussed the
importance of upward communication through which subordinates give
feedback and suggestions to their superiors. This type of communication
should be encouraged and not suppressed, since valuable suggestions may
sometimes come from employees. Superiors need to be open to the
suggestions and complaints of employees. This is an indication that they are
listening to their employees. Listening also means inviting suggestions and
personal opinions of employees through regular downward communication.
Another situation where listening to employees is of prime importance is
during a performance appraisal. This is also part of downward
communication. A manager doing a performance review of a subordinate
should take care not to do a destructive review, where the subordinate is
criticised for poor performance. On the other hand, a constructive review,
through which a manager hears out the employee’s problems and reasons
for lack of performance, is an indication of listening to the employee. In this
case, he/she listens with empathy and understanding, what we defined
earlier as ‘empathetic listening’. In such a situation, the manager should also
practice ‘therapeutic listening’, whereby the manager counsels the
employee on how to improve performance.
4.5.3 Listening during job interviews
Listening is also a skill that is needed by both job interviewers and
interviewees, in order to make the interview a success. Ideally, listening
should take up half the interviewing time, although this rarely happens in
reality, since one person or the other fails to listen for some reason or the
other. We have discussed the barriers to listening in detail.
The relative importance of listening may vary, depending on the type of
interview. In an employment interview where the purpose is to assess how
well an applicant will perform on the job through discussion, listening will be
equally important for both the interviewer and the interviewee. On the other
hand, in an ‘exit’ interview, where the purpose is to gather feedback from the
employee regarding the reasons for leaving the organisation, the interviewer
may have to do more of the listening.

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Self Assessment Questions

10. In the insurance industry, it has been found that good listening has led
to ___________ advancement.
11. A satisfied customer is the best ________________ for any company's
product.
12. Customer orientation means identifying customer feedbacks on
different products and then satisfying their needs. (Tue/False)
13. Performance appraisal is one the situations where listening to
employees is of prime importance. (True/False)

4.6 Effective Questioning

Effective Questioning facilitates effective listening. Asking the right
questions enables us to understand the subject better. Effective questioning
can help in uncovering needs and analysing problems. It can also help you
in negotiating.
The different forms of questions that help in effective questioning are:
 Open questions
 Closed questions
 Probing questions
 Leading questions
 Hypothetical questions
Let us now discuss these types of questions in greater detail.
Open questions
Open questions help in obtaining detailed answers. They discourage ‘yes’ or
‘no’ kind of answers. These questions help you to gather a lot of information.
They usually begin with any of the following:
 What
 Why
 When
 Where
 Who
 How

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Some examples of open ended questions are:

 What are your areas of responsibilities?
 What are your plans for the coming month?
 Why do you think you are a good candidate for this position?
 How will you integrate Process A with Process B?
Open questions have the following advantages:
 They help a person to open up.
 They are a powerful negotiating tool.
 They help in obtaining additional information.
 They make you a better communicator.
Open questions have the following disadvantages:
 The answers obtained are not very specific or reliable.
 The answers cannot be used exclusively.
Closed questions
Closed questions are those questions that can be answered in one or two
words. They yield quick but incomplete information. They are often used in
surveys as they limit the respondent’s answers. Closed ended questions
usually begin with one of the following verbs:
 Are
 Did
 Will
 Won’t
 Didn’t
 Aren’t
Some examples of closed questions are:
 Are you evaluating different suppliers?
 Can you deliver the product by the end of the month?
 Will you accept an annual salary of Rs 4,50,000?
Closed questions have the following advantages:
 They can be easily analysed.
 They are more specific.
 They take less time to answer.
 They help in obtaining definite answers.
 They narrow the focus of the conversation.
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Closed questions have the following disadvantages:

 As they result in very short answers, they are not very reliable.
 Many questions are required to obtain the complete information.
Closed questions are usually asked at the end of the negotiation or
conversation.
Probing questions
Probing questions are follow-up questions that seek additional information.
You can use probing questions to elicit more information and explore an
issue in greater detail. These questions help in filling the gaps identified by
the initial questions. You can use probing questions to understand the
needs of your prospects. They help to reduce misunderstandings. You can
use the word ‘exactly’ to probe further. Some examples of probing questions
are:
 When exactly will you submit the report?
 You say that you cannot complete the project by the end of the month.
Why is that?
 What did you best like about this training programme?
Probing questions have the following advantages:
 They help you to obtain clarification and understand an issue thoroughly.
 They help you to obtain information from people who do not want to
reveal it completely.
Leading questions
A leading question is a question that implies an answer. You can use a
leading question to indicate an answer and make the other person agree
with you.
The disadvantage of leading questions is that it discourages the
respondents from thinking on their own. Leading questions can be implicit or
explicit, verbal or non-verbal. Some examples of leading questions are:
 I assume you liked the presentation?
 How great was the service provided by our customer service
department?
 We can offer a discount of 5 percent if you purchase more than 1000
units. I am sure this is O.K. with you?

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You can use leading questions to:

 get the answer you desire.
 close a sale.
Leading questions must be used with care. If you use it for your own self-
interests you may appear to be dishonest and manipulative.
Hypothetical questions
Hypothetical questions describe a fictitious situation and seek your response
to it. You can use hypothetical question to gauge a response and to
determine the position of your negotiating partner. Interviewers can use
hypothetical questions to identify key competencies.
Some examples of hypothetical questions are:
 If you had a conflict with your manager, how would you resolve it?
 Imagine you are approaching a deadline, but the work is only 70 percent
complete. What would you do?
 Assume that I am giving you two more weeks to complete the order. Can
you assure me that you can deliver quality products?
Hypothetical questions have the following advantages:
 They help you to explore possibilities.
 They help you in making a choice when you have many options to solve
a problem.
 They help you in testing your suppositions and hunches.
Self Assessment Questions
14. Match the following:
Set A
A) Did you sign this agreement?
B) Describe a situation in which you think you did not follow the
company’s standard procedure.
C) Is that all? Have you omitted any other detail?
D) Assume that the sales of XYZ soap is falling. What would you do to
revive sales?
Set B
1) Open question
2) Closed question
3) Hypothetical question
4) Probing question
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15. Leading questions describe a fictitious situation and seek your response
to it. (True/False)

4.7 Summary
Let us recapitulate the important concepts discussed in this unit:
 Listening is the most important of all the aspects of communication.
 More time is spent on the job in listening, rather than in speaking,
reading or writing.
 Real listening or active listening is a tiring activity since it means
understanding the meaning behind the speaker’s words and requires
concentration.
 There are different types of listening, each of which is appropriate for
different situations. They are:
o Discriminative listening
o Comprehension listening
o Evaluative listening
o Appreciative listening
o Empathetic listening
o Therapeutic listening
o Dialogic listening
 Empathetic listening and therapeutic listening are most often required in
a business context, when communicating with customers and
employees.
 Listening is not as easy as it seems, since a number of obstacles stand
in the way of effective listening. They may be classified as follows:
o Physiological barriers, such as hearing problems.
o Physical barriers, such as distracting sounds.
o Attitudinal barriers, such as not being open to others’ ideas.
o Wrong assumptions, such as the perception that successful
communication is the sender’s or speaker’s responsibility.
o Cultural barriers, such as different accents.
o Gender barriers, such as different listening styles of men and
women.
o Lack of training in listening skills.
o Poor listening habits, such as pretending to listen.

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 Some of these barriers can be overcome by consciously adopting a few

strategies such as the following:
o Creating the right environment
o Communicating face-to-face
o Being open minded
o Using non-verbal cues to indicate listening
o Using verbal communication to indicate listening
o Listening fully before speaking
o Using the listener-speaker gap constructively
o Paying attention to verbal and non-verbal messages
o Paying attention to content, rather than delivery
o Taking notes
 Listening has been found to be a vital skill for job success and is one of
the essential qualities of a good manager.
 Service industries such as insurance, banking and healthcare in
particular, require good listening skills.
 Managers need to listen actively to their customers and employees.
 Customer orientation means identifying and satisfying customer needs.
It also involves responding to customer complaints, in order to ensure
that the customer is not dissatisfied. This requires listening with empathy
and understanding.
 Listening to employees involves inviting their inputs and suggestions by
encouraging upward communication.
 It is also important to listen to employees’ problems during a
performance review and to suggest ways of overcoming these problems
to improve performance.
 Listening is a skill that is required by interviewers and interviewees
during job interviews, for gathering meaningful information.
 Effective Questioning facilitates effective listening. The different forms of
questions that help in effective questioning are:
o Open questions
o Closed questions
o Probing questions
o Leading questions
o Hypothetical questions

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4.8 Glossary
80:20 Rule: It is also called as Pareto Rule it states that for many
phenomenon 80% of consequences results from 20% of the causes.
Egocentrism: The state or quality of being self-centred.
Empathise: To share or experience the feelings of others.
Hypothetical: Based on a surmise.
Paraphrasing: Restating a text using different words that convey the same
meaning.
Performance appraisal: It is a process which involves reviewing and
discussing an employee's performance of assigned tasks and
responsibilities. The review is done depending on results performance of the
employee in his/her job, not on the physical characteristics.

4.9 Terminal Questions

1. As a student of management, which types of listening would you need to
practice most often? Justify your answer.
2. Describe any situation in your experience where the communication
failed because the listening was faulty. Identify the barrier to listening in
this situation.
3. How would you rate your own listening skills on a scale from 1 to 5, with
1 being ‘excellent’ and 5 being ‘poor’? Which are your strong and weak
areas? How would you overcome your weaknesses?
4. Explain some of the approaches for handling customer complaints and
listening to customers.
5. Differentiate between open and closed questions using examples.

4.10 Answers

Self Assessment Questions

1. b) Appreciative listening
2. Non-verbal
3. Appreciative listening
4. A - 3, B - 4, C - 2, D - 1

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5. False. Speakers talk at around 125 words per minute.

6. True
7. Silence
8. Non-verbal
9. False. A good listener always encourages others to express their ideas,
instead of occupying centre stage.
10. Career
11. Advertisement
12. False. Customer orientation means identifying and then satisfying
customer needs.
13. True
14. A - 2, B - 1, C - 4, D - 3
15. False. Hypothetical questions describe a fictitious situation and seek
your response to it.
Terminal Questions
1. The different types of listening that a management student may need to
practice are as follows:
 Discriminative listening
 Comprehension listening
 Dialogic listening
For more details, refer section 4.2.
2. The barriers to effective listening may be categorised as follows:
 Physiological barriers
 Physical barriers
 Attitudinal barriers
 Wrong assumptions
 Cultural barriers
 Gender barriers
 Lack of training
 Bad listening habits
For more details, refer section 4.3.
3. There some qualities which characterise a good listener. Some of the
qualities are:
 Considers all evidence before jumping to a conclusion.

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 Takes notes when listening, in order to recall information or

understand a difficult idea.
For more details, refer section 4.4.
4. Some of the approaches for handling customer complaints and
listening to customers are as follows:
 Believe the customer
 Listen actively
 Apologise
 Satisfy
 Thank
For more details, refer sub-section 4.5.1.
5. Open questions help in obtaining detailed answers. Closed questions
can be answered in one or two words. For more details, refer section
4.6.

4.11 Case Study

Improving the Listening Skills of Managers at Procter & Gamble

Introduction
The managers of Procter & Gamble (P&G) are highly trained professionals.
They work under heavy time pressures and tight deadlines. As a result of
this, the managers were not listening effectively to customers and co-
workers.
LEAD group
To improve the listening skills of the employees and managers, the
Research and Development (R&D) department conducted a programme
for middle managers and technical leaders. A group ‘Leaders Effect A
Difference (LEAD)’ was formed to attend that programme. The objective of
the LEAD group was to increase innovation and build lasting relationships
to increase long-term networking.
The participants of the LEAD group could obtain the following benefits:
 Recognise the complexities of work issues.
 Accept the senior management expectation.
 Recognise the importance of helping others to solve their work issues.
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The programme for a LEAD group begins with a 45 minute introduction to

LEAD process and is followed by building in-depth listening skills. Listening
is the main point of coaching; hence it plays a critical role in developing
coaching.
The lead group was structured into groups of six persons. Participants
were asked to play the role of helper and observer. Each member of the
group was assigned the role of seeker for one of the six LEAD sessions.
The seeker was assigned the role of practicing the skills of helping others
on work issues. The helper was assigned the role of practicing listening
and training skills with the aim of assisting the seeker to think, feel, and
plan.
Outcome of the LEAD group
Over time, the LEAD group programme was effective in motivating listening
skills of managers.
The LEAD group approach met the business need for improved coaching
by managers and was successful in establishing communication with
broader network of employees.
Discussion Questions:
1. Give the reason which made the managers ineffective listeners?
(Hint: Refer ‘Introduction’ of the case study)
2. What are the benefits of LEAD group program to the participants?
(Hint: Refer ‘Lead group’ of the case study)
(Source:
http://www.corpu.com/site_media/case_study/Learning_to_Listen_CS_04.pdf )

References:
 Adler, R. B. (2009). Communicating at Work: Principles and Practices for
Business and the Professions. U. S. A: McGraw-Hill.
 Warner, C., & Buchman, J. (2004). Media Selling: Broadcast, Cable,
Print and Interactive, 3rd ed. Iowa: Iowa State Press.
 How to be a Top-Class Negotiator. Select Knowledge.

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E-References:
 http://assignmentstoday.com/?p=144 – Retrieved on November 17,
2011.
 http://smallbusiness.chron.com/effective-listening-business-
communication-3170.html – Retrieved on November 17, 2011.
 http://www.wright.edu/~scott.williams/skills/listening.htm – Retrieved on
November 17, 2011.
 http://fno.org/nov97/toolkit2.html – Retrieved on January 10, 2012.
 http://writing.colostate.edu/guides/research/survey/com4a2a.cfm –
Retrieved on January 10, 2012.
 http://www.bly.com/Pages/documents/CEPARTLISTEN1.htm –
Retrieved on January 10, 2012.
 http://www.eruptingmind.com/how-to-use-questions-in-conversations/ –
Retrieved on January 10, 2012.
 http://www.mindtools.com/pages/article/newTMC_88.htm – Retrieved on
January 10, 2012.

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Unit 5 Guidelines for Written Business Communication

Structure:
5.1 Introduction
Objectives
5.2 General Principles of Writing
Writing methodology
Tips on writing style
Active vs. passive voice
Spelling and punctuation
Common errors in English
5.3 Principles of Business Writing
Tone
Emphasis and subordination
Write at an appropriate level of readability
5.4 Summary
5.5 Glossary
5.6 Terminal Questions
5.7 Answers
5.8 Case Study

5.1 Introduction
In the previous unit, we discussed the meaning of listening, some obstacles
to listening and methods that can be adopted for better listening in the
workplace. Writing skills are equally crucial and critical similar to listening
skills in business communication. Errors in grammar, spelling, punctuation
and typing can affect the business communication significantly. Any
inconsistency in writing the message might lead to misunderstanding or
miscommunication. Therefore, in business communication, clarity and
concreteness of the message is very vital. You might lose your customer if
you fail to communicate the information correctly and completely. At the
same time, you must remember that general writing is very different from
business writing in terms of tone, language and degree of formality of the
communication. Some of the dos and don’ts of business writing will be
highlighted in this unit. This will lay the foundation for writing business letters
and reports which will be discussed in the later units.

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We cannot say that all business communications are positive. Some

experts have noticed that technology advancements have made the
communication simpler and more efficient. This has gradually reduced the
formal writing skills of business people. Marty Blalock, in his article 'Why
Good Communication is Good Business' has pointed out that ineffective
communication is expensive. According to the National Commission on
Writing, American businesses spend about $3.1 billion a year to train their
employees on writing.
Blalock has also pointed out that the Commission supports the
requirement of effective business communication skills in employers.
About two-thirds of jobs in large American companies are based on
writing duties. Many American companies have involved 'assessment of
writing skills of job seekers' as part of their hiring process.
(Source: http://www.ehow.com/list_7440247_trends-business-
communication- today.html#ixzz1dl0YlibM)

This unit helps you to answer the following questions:

What are the general principles of writing?
What are the stages of writing?
In this unit, we will learn how to improve written communication in general.
We will also discuss some guidelines for effective business writing.
Objectives:
After studying this unit, you should be able to:
 evaluate your writing style
 identify common errors in English usage
 recognise the appropriate use of active and passive voice, grammar and
punctuation
 distinguish between general and business writing
 compose a piece of business communication confidently

5.2 General Principles of Writing

Written messages must be made as readable as possible. We need to make
them uncomplicated and easy so that even an average person can
understand their meaning. Readability in turn is largely determined by the

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length of words, sentences and paragraphs. A common mistake made by

writers, especially Indian writers, is to try to impress the reader by using
flowery language and an oratory style of writing. Two broad principles of
writing are ”Write to express, not to impress” and “Keep it short and sweet.”
A good writer is one who follows these principles and asks himself/herself
even before framing a sentence “What am I trying to say? What words will
express it?”
Let us try to understand these principles first by discussing the different
stages of writing. We will then become familiar with some tips on writing
style, followed by some specific rules regarding English language usage,
spelling and punctuation.
5.2.1 Writing methodology
Writing methodology comprises of three stages:
 Prewriting
 Writing
 Reviewing
Figure 5.1 depicts the three stages of writing.

Fig. 5.1: Stages of Writing Methodology

(Source: Reproduced from Guffey, M. E., and Loewy, D. (2011). Business
Communication: Process and Product, 7th ed. USA: South-Western Cengage
Learning)

Let us now discuss them in brief.

Prewriting
Prewriting is a structured thinking process that helps you to explore and
understand what you have to write. The techniques of prewriting help you to
determine the approach to choose and plan to implement it. Usually, a
prewriting plan enables you to explore a topic from different perspectives. It
also helps you to discover new and original ideas for writing the topic. In the

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pre-writing stage, you analyse your audience to determine your audience

requirements, anticipate the audience knowledge and design the strategy
that can be adopted to communicate. For example, what language you have
to use to convey the message to the audience, whether it will be formal or
conversational?
Writing
After knowing the audience and developing strategies you can research the
topic and gather essential data. Once you gather the required data, you can
organise your content i.e., decide the flow, group similar facts, identify the
important facts to be mentioned, etc. Later, you begin to compose or write
i.e., construct sentences and paragraphs. First you write a draft. While
drafting, you write the information that you have researched in your own
words. You build sentences and paragraphs even though they are not 100
percent perfect. You read what you have written and check whether what
you have written is what you mean. You then get the document reviewed by
others and ask for suggestions to improve the content.
Reviewing
In this stage, you revise, proofread and evaluate the message. You check
whether the sentences are complete and if your content is correct. You
check for spelling, capitalisation, punctuation, grammar and parallelism. You
will check for clarity of the content written and ensure that no errors are
present in the content. Figure 5.2 depicts the inverted pyramid of review
steps.

Fig. 5.2: Review Steps

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The four steps shown in the figure 5.2 can help you to make your review
process effective. The four steps can be explained as follows:
1. Review for strategy – Review whether the document adheres to the
design strategy. For example, whether objectives are accomplished,
main idea is conveyed first or last, the technicalities’ are defined as per
target audience requirements, language style used is as per audience
requirement, credibility is established, logical flow, etc.
2. Review for macro issues – Review the document as a whole before
reviewing sentence by sentence. For example, document design,
connection between sections and subsection, effectiveness of
paragraphs or sections etc.
3. Review for micro issues – Review the sentences and words for
example, check for wordiness, long sentences, complex and incomplete
sentences, clarity of sentences, etc.
4. Review for correctness – Review for correctness of the content with
respect to grammar and punctuation for example, parts of speech,
parallelism, incorrect use of comma, etc.

Additional Reference:
Sorenson, S. (2010). Student Writing Handbook, 5th ed. NJ: Wiley.

Self Assessment Questions

1. _______________ is a structured thinking process that helps you to
explore and understand what you have to write.
2. You check for wordiness, long sentences, complex and incomplete
sentences when you review for macro issues. (True/False)
5.2.2 Tips on writing style
You can improve your writing style by choosing the right words for
conveying the meaning. Some of the common problems include the use of
complicated words, the use of jargon, slang and colourful language and
mistakes in using the parts-of-speech.
Simple vs. complex words
As far as possible, the sender should select words that are within the
receiver’s vocabulary. If the words used are outside the vocabulary of the
receiver, the latter may not get the message at all, or get the wrong

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message by guessing the meaning incorrectly, or wonder whether the

sender intentionally selected a complicated word for making an impression.
Therefore, it is important to consider the educational level and the
knowledge of the reader.
Hence, it is better to rely on plain, simple words, such as the ones shown in
the first column, rather than in the second column of table 5.1, even though
they mean the same thing.
Table 5.1: Some Simple Word Equivalents for Complex Words

Simple word equivalent Complex word

About Approximately
Do Accomplish
Improve Ameliorate
Show Demonstrate
Change Modify
Ask Interrogate

This is because short and simple words convey ideas more effectively and
require less time and space. They also invite the sender to concentrate on
ideas, rather than calling attention to the words themselves.
Jargon, slang and metaphors
‘Jargon’ refers to technical terms that belong to a particular subject area or
discipline. For example, medical jargon would include terms that only
medical practitioners can understand. These terms cannot be understood by
the common man. Some of the terms in the medical jargon are, ’agonal’
meaning a major negative change in a patient’s condition, FX for fracture
and IM for intramuscular. Such terms are to be avoided in general writing,
since they would be out of context. The only instance where jargon can be
used and might be essential is in highly technical reports, where the reader
is in a position to understand these terms. For example, computer jargons
such as browser, bus, cache, chip, cookie, CPU, crash, database, dot pitch,
download, driver and file can be used only while writing reports related to
computer technology.
‘Slang’ refers to casual words that are not accepted and recognised in a
standard English dictionary. For example, ’ace’ means very good, ’action’
means excitement, ’blown away’ means greatly impressed, ’flip out’ means

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lose control and ’glitch’ means defect. While they could be used in a limited
way in general or informal writing, they are to be avoided in business writing,
which needs to be formal in nature.
A ‘metaphor’ is a figure of speech and refers to colourful comparisons which
evoke visual images. For example, consider the following sentences:
1. He is ‘rock solid’ in his support.
2. We provide an ‘umbrella of insurance’ product for your security.
While such comparisons may be used in informal writing or in the language
of advertising, they are to be avoided in business communication which has
to be objective and formal.
Parts of speech
In the same way that use of big, complicated words may result in receipt of
the wrong message, use of small words in the wrong way grammatically
could have the same result. Such problems exist in all parts-of-speech
categories. Some of the parts of speech which we will be discussing in this
unit are:
 Nouns
 Pronouns
 Verbs
 Adjectives
 Adverbs
Let us now briefly discuss each of these parts of speech.
Nouns
Just as the main actor in a film is the most important character, the subject
in a sentence is the most important noun. There are two categories of nouns
– ‘abstract nouns’ or nouns that cannot be visualised and ‘concrete nouns’
or nouns that can be visualised. A message will be understood more clearly
if concrete nouns are used as subjects in a sentence, rather than abstract
nouns. For example, consider the following two sentences:
1. ‘Cancellation’ of the contract will be done in March. (Use of abstract
noun as subject)
2. The ‘contract’ will be cancelled in March. (Use of concrete noun as
subject)

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In this example, the second sentence, using ‘contract’ as the subject, is

likely to be understood more clearly by the receiver. Not only is ‘contract’
something which can be visualised, it also emphasises the main idea in the
sentence.
Let us consider another example.
That ‘decision’ can be made only by the supervisor. (Abstract noun as
subject)
Only the ‘supervisor’ can make that decision. (Concrete noun as subject)
Pronouns
Sometimes, using the masculine form of a pronoun might be taken in an
offensive way by the receiver, especially if the receiver happens to be a
woman. Even if the receiver is not a woman, the use of a masculine
pronoun may convey the impression of being sexist. For example, consider
the following sentence: “You need to consult your professor on that subject,
but he has to be a specialist in the area of Finance”. In this sentence, the
use of the masculine pronoun ‘he’ conveys the unintentional message that
professors can only be men and not women, which could be taken as an
offense. Such offensive pronouns can be avoided in the following ways:
1. Avoid the usage of pronouns completely
For example, “you need to consult your professor on that subject, but a
specialist in the area of Finance is required.”
2. Repeat the noun
For example, “you need to consult your professor on that subject, but
the professor has to be a specialist in the area of Finance.”
3. Use a plural noun
For example, “you need to consult some of your professors on that
subject, but they have to be specialists in the area of Finance.”
(The use of ‘they’ avoids implying that professors can be only men).
4. Use pronouns from both genders
For example, you need to consult your professor on that subject, but he
or she has to be a specialist in the area of Finance.
Another principle regarding use of pronouns is to avoid excessive use of the
first person pronoun ‘I’, since this gives the impression that one is always

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talking about oneself. Never sound too pleased with yourself or boast of
your own achievements. This is especially true of business writing, where it
is important to be objective, rather than subjective.
The second person pronoun ‘you’ also needs to be used with care. A rule of
thumb is to use the second person pronoun when emphasising a positive
idea or message and to avoid the second person when presenting a
negative idea.
The following two sentences illustrate the usage of second person pronoun:
1. ‘You’ made a good presentation.
2. ‘You’ made a number of mistakes in the report.
The first sentence contains a positive idea. Therefore, the second person
pronoun should be used, since it gives credit to the person who made the
presentation. But, the second sentence contains a negative idea and
emphasises that ‘you’ are responsible. This should be avoided by framing
the sentence differently, such as “The report contained a number of
mistakes.”
Verbs
Since verbs are action words and action is an essential part of a sentence,
correct use of verbs is important. Senders of messages must use verbs that
agree in number with the subjects of the sentence.
The following sentences illustrate the misuse and the correct use of verbs in
sentences:
1. Only one of the students ‘are’ present. (Wrong usage)
Only one of the students ‘is’ present. (Right usage)
2. Each of the following reports ‘have’ been modified. (Wrong usage)
Each of the following reports ‘has’ been modified. (Right usage)
Note that the singular form of the verb and not the plural should be used in
both the above sentences, to agree with the subject, which is in singular
form (‘Only one’ and ‘Each’).
Verbs must also agree in person. The most common errors are made in
agreement with the third person and the second person. For example, the
following two sentences illustrate the usage of verbs in agreement with
person:

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1. He ‘don’t’ like to work late. (Wrong)

He ‘doesn’t’ like to work late. (Correct)
2. You ‘was’ informed that the exams begin next week. (Wrong)
You ‘were’ informed that the exams begin next week. (Correct)
Thirdly, since verbs indicate the time of action – past, present or future, they
should be used in the correct tenses. The tenses should also be used
consistently.
The following sentences illustrate the misuse of tenses:
1. He ‘listens’ to the presentation and ‘gave’ his feedback.
2. The manager ‘spoke’ to the customer, but ‘does not respond’ to his
complaint.
In both the sentences, it is not clear whether the event is past or present,
since the tenses are not used uniformly. It is better to use two present tense
verbs or two past tense verbs, but not one of each in the same sentence.
Thus the sentences 1 and 2 can be written as follows:
1. He ‘listens’ to the presentation and ‘gives’ his feedback.
2. The manager ‘spoke’ to the customer but ‘did not respond’ to his
complaint.
Adjectives
Adjectives give information about or describe nouns. Although they play a
less important role in a sentence compared to verbs and nouns, they must
be used with care. A common tendency is to use very strong adjectives, too
many adjectives, or superlatives.
The following sentences illustrate the misuse of adjectives:
1. Sales this year have been absolutely ‘incredible’.
2. That is the most ‘wonderful’, ‘powerful’ and ‘moving’ speech that I have
heard in a long time.
3. Ours is the ‘best’ product in the market today.
In the first sentence, if a sales report is being written or presented, it would
be better to give details about sales figures, rather than describe sales as
‘incredible’. In the second sentence, a single adjective could have been
used in place of three adjectives, which are too many. The third example is

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a claim that needs to be defined (i.e., best in what way?), or supported with
adequate proof.
Adverbs
In the same way that adjectives describe nouns, adverbs describe or modify
verbs, adjectives or other adverbs. Therefore, the same principles apply
when using adverbs – i.e., avoid use of adverbs that are too strong, or are
superlatives. For example, consider the following sentences:
1. Sales have been ‘fantastically’ high this year.
The adverb ‘fantastically’ describes the adjective ‘high’ and is too strong
to be credible.
2. This secretary types the ‘fastest’.
Here, the adverb ‘fastest’ describes the verb ‘types’ and is a superlative,
which is to be avoided, unless it can be defined or supported with proof.

Self Assessment Questions

3. The expression “Her voice was silky smooth” is an example of a
metaphor. (True/False)
4. It is better to use the word 'interrogate' rather than 'ask'. (True/False)
5. A message will be understood more clearly if ____________ nouns are
used as subjects in a sentence.
5.2.3 Active vs. passive voice
In the previous sub-section we studied the correct usage of verbs. Verbs
may also be classified as ‘active verbs’ and ‘passive verbs.’ Using the
‘active voice’ means that the subject is the doer of the action and that the
verb is active. On the other hand, a sentence in ‘passive voice’ means that
the subject is the receiver of the action and that the verb is passive. For
example consider the following sentences:
1. John ‘wrote’ the report. (Active voice)
2. The report ‘was written’ by John. (Passive voice)
Note that in the first sentence, the use of the active voice draws attention to
the doer of the action namely ‘John’. This gives a sharper picture to the
receiver of the message. In the second sentence, the subject, i.e., the
‘report’, is emphasised more than the doer of the action, giving a less clear
picture to the receiver.

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In most cases, the active voice is preferable to the passive, since it conveys
ideas more vividly. However, there are instances when use of the passive
voice is more appropriate. They are as follows:
 When the doer of the action has to be subordinated, rather than
highlighted – For example, this is the case when writing research
reports. It is more important to emphasise what has been done, rather
than who has done it. Therefore, it would be better to say “A
questionnaire was prepared and interviews were conducted among a
small sample.” rather than saying “I prepared a questionnaire and
conducted interviews among a small sample” This makes the report
more objective, rather than subjective.
 When a unpleasant or negative idea has to be subordinated –
Generally, negative thoughts should be de-emphasised and not
highlighted. The passive voice is useful in such cases, as illustrated in
the following sentences:
o The corrections in the report have not been carried out. (Passive
voice)
o You have not carried out the corrections in the report. (Active voice)
The first sentence downplays a negative idea – the fact that the changes in
the report have not been included and is therefore less annoying to the
receiver than the second. Expressing the same idea in active voice may
seem like pointing fingers at the doer of the action and is likely to upset
human relations.
5.2.4 Spelling and punctuation
The important point to remember with regard to spelling is the difference
between British English and American English. Certain words are spelt
differently in British and American English. Table 5.2 illustrates some of
these differences.
Table 5.2: Some Differences in Spellings between British and
American English
British American
Humour Humor
Colour Color
Analyse Analyze
Organisation Organization
Programme Program
Centre Center
Cheque Check

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Generally British spellings should be used, unless you are addressing an

American audience. In any case, either British or American spellings should
be uniformly used and not mixed together, in order to ensure greater
readability.
Another common mistake made with spellings is to confuse the noun form
with the verb form. Table 5.3 shows the differences in spellings of the noun
and verb form of some words.
Table 5.3: Differences in Spellings of Noun and Verb Form
Noun Verb
Licence License
Advice Advise
Practice Practise

Some words may sound the same but have different meanings when spelt
differently. Some words may include a single vowel that makes them sound
different and have very different meanings. It is important not to get
confused with the spellings of such words.
For example,
1. ‘Compliment’ means to praise someone, whereas ‘complement’ means
to go with (for example, “your jewellery complements your outfit”).
2. ‘Stationery’ refers to paper, pencils, etc., whereas ‘stationary’ means ‘still
or not moving’.
Punctuation
Correct use of punctuation is important in both general writing and business
writing. Let us now discuss the main categories of punctuation and their
uses.
Apostrophe
Apostrophe is used to form the possessive singular form of words. For
example, ‘the Company’s profits’.
 It is used to form the possessive plural of words ending in ‘s’. For
example, ‘the dealers’ margin’.
 It is used in expressions that indicate ownership. For example, ‘last
year’s record’.

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Parentheses or Brackets
Parentheses or brackets can be used to separate a phrase from the main
section of a sentence, when it is not related to it grammatically. For
example, “The Indian team tried their best (God knows it) but lost in the
finals.”
Colon
Colon is used to suggest that a list will follow a statement in sentence form.
For example, ”For three reasons, we have decided to expand our market: 1)
2) 3).”
Comma
Comma is used for the following purposes:
 To separate words in a series. For example, “The main punctuation
categories are the full stop, the comma, the colon, the semi colon and
the apostrophe.”
 To separate two adjectives that modifies the same noun. For example,
“The MBA exam is a long, difficult and objective type exam.”
Dash
Dash is used to separate the words in a sentence which are not necessary
for its structure. For example,
“His answer – the correct answer – was supported by examples drawn from
his own experience.”
Full stop or period
Full stop or period is used:
 at the end of a sentence.
 after abbreviations. For example, Dr., No., Jr., etc.
Quotation marks
Quotation marks are used for the following purposes:
 To enclose what is stated by others, verbatim. For example, the
manager said, “I will review your progress every month.”
 To enclose titles of magazine and newspaper articles. For example,
“Progress in Stem Cell Research.”

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Semicolon
Semicolon is used to express a pause that is longer than that expressed by
a comma and is used to separate clauses of a compound sentence when
they have a comma.
For example, “We would like the material to be delivered in the morning
hours, but before 5 pm will also be convenient.” (Without using semicolon)
“We would like the material to be delivered in the morning hours; but if this is
not possible for you, before 5 pm will also be convenient.” (Using semicolon)
5.2.5 Common errors in English
‘Indian English’ tends to be prone to some common mistakes which should
be avoided, in order to make the communication clear and easily
understood by the receiver. Some of these mistakes include ‘redundancies’,
‘clichés’ and ‘frequently misused words’. We will discuss each of these
briefly.
Redundancies
Redundancies refer to phrases which contain repetitive or unnecessary
words to express the same meaning. This is a common mistake that occurs
across the world and must be avoided.
Consider the following sentences:
1. In the first class, the professor taught the ‘basic fundamentals’ of
Marketing.
2. I have to ‘return back’ home before midnight.
The phrases ‘basic fundamentals’ and ‘return back’ are redundancies. In the
first sentence, ‘basic’ is an unnecessary word, since fundamentals
themselves are basic; in the second sentence, it is sufficient to say ‘return
home’ and ‘back’ is an unnecessary word.
A few more examples are:
 True facts
 Past history
 Exactly identical
 Personal opinion
 Other alternative

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A redundancy does not serve any purpose and is a mistake since it wastes
words.
Clichés
Clichés are phrases that are overused and should be avoided, since they
make reading monotonous. They should be substituted with more original
expressions.
Some commonly used clichés are:
1. ‘Last but not least’, I would like to thank all the students for attending this
session.
2. ‘Thanking you in advance’, I remain ….
3. Looking forward to meeting and discussing this with you ‘at an early
date’.
4. ‘No problem’.
In the first sentence, ‘last but not least’, which is a worn expression, could
be substituted by ‘finally’. The cliché ‘thanking you in advance’ is
presumptuous, since it assumes that the reader will do whatever has been
asked. It seems to say that instead of thanking later, you will save time by
expressing your thanks now. Therefore, it is better to say ‘I shall appreciate
your (action)’ or ‘If you will (action), I shall be grateful.’ In the third example,
the expression ‘at an early date’ is too vague and should be substituted with
‘soon’ or with a specific date. The fourth example ‘No problem’ is a cliché
used commonly by Indians. Although it denies that there is a problem, the
problem exists. You might have said for example, that you did not have
enough cash to pay for something, in response to which the shopkeeper
may have said ‘No problem, we accept credit cards’. Therefore this
expression is avoidable.

Frequently misused words

Certain words which sound similar or are spelt slightly different, tend to
be used in the wrong context. Some examples are as follows:
1. ‘All together’ and ‘altogether’ – ‘All together’ means ‘in one group’,
whereas ‘altogether’ means ‘completely’.
For example,
The answer is ‘altogether’ wrong.

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The students were ‘all together’.

2. ‘Already’ and ‘all ready’ – ‘Already’ means ‘at a previous time’,
whereas ‘all ready’ means ‘everything is ready’.
For example,
He had ‘already’ left when I called.
The computers are ‘all ready’ to be used.
3. ‘Eminent’ and ‘imminent’ – ‘Eminent’ means ‘well known’, ‘imminent’
means ‘about to happen’.
For example,
An ‘eminent’ lawyer will handle the matter.
A midterm election is ‘imminent’.
4. ‘Lose’ and ‘loose’ – ‘Lose’ means ‘to fail to keep carefully’, ‘loose’
means ‘not tight’.
For example,
Don’t ‘lose’ the money.
The shirt is too ‘loose’ for him.
5. ‘Principal’ and ‘principle’ – ‘Principal’ means ‘main or primary’,
‘principle’ means ‘rule.’
For example
The ‘principal’ reason for leaving early is the peak hour
traffic. One of the subjects studied in the first semester of MBA is
‘Principles’ of Management.

Self Assessment Questions

6. Match the following sets:
Set A
A) Semicolon
B) Colon
C) Quotation marks
D) Apostrophe

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Set B
1) Suggest that a list will follow a statement in sentence form.
2) Used to separate clauses of a compound sentence
3) Used to form the possessive plural of words
4) Used to enclose title of an article
7. A redundancy does not serve any purpose and is a mistake since it
wastes words. (True/False)
8. The phrase 'Thanking you in advance’ is an example for redundancy.
(True/False)

5.3 Principles of Business Writing

Having dealt with writing in general, we will now discuss the specifics of
business writing. As pointed out earlier, the language, style and tone of
business writing is very different from general writing. Therefore, we will
examine these aspects in detail.
5.3.1 Tone
We discussed tone of voice or ‘paralanguage’, in Unit 2. You learnt that the
spoken words, however perfect, can convey a negative message, if the tone
of voice is not consistent with what is said. Tone is equally important in
conveying written messages, particularly business related messages.
In written communication, tone refers to the way a statement sounds, which
in turn, depends on the choice of words. A sentence or statement may be
grammatically perfect, but may convey a negative message, if the choice of
words is wrong.
For example, “You failed to meet the sales target”.
This statement has a negative tone, since it emphasises what could not be
achieved. The same idea could be expressed in a more positive tone, by
emphasising what could have been done instead.
For example, “With a little extra effort, you could have achieved the target”.
This example shows that even a negative idea can be expressed in positive
language through the use of appropriate words.
The tone of business communication should also be confident. You should
avoid language that makes you sound unsure of yourself.

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For example, “I hope you will agree that my qualifications match your job
profile”.
Beginning the sentence with ‘I hope’ creates the impression that you lack
confidence in yourself. It might be better to say “On reviewing my bio-data,
you will find that my qualifications match your job needs in the following
respects…”
While it is important to be self assured, avoid sounding over confident and
pompous.
For example, “I am sure you will agree that our Company has the best
reputation for quality and service”.
Instead, you can write the same as “We shall try to live up to our reputation
for quality and service.”
Another aspect of tone is to sound courteous and sincere. This builds
goodwill and good relations and increases the likelihood of a message
achieving its objectives. Avoid statements such as the following:
You sent your complaint to the wrong department. You should have sent it
to the shipping department.
This sounds very discourteous and rude when responding to a customer
complaint. Instead, it might be better to say “We have sent your complaint to
the concerned department, which will be contacting you shortly.”
Sincerity also means avoiding exaggeration and flattery, especially when
communicating with customers. Consider the following examples:
1. We are more interested in your satisfaction, than in making profits.
2. You are such a valued customer that we shall go to any lengths to earn
your satisfaction.
The first sentence sounds insincere, since the main objective of any
organisation is to make profits. The second sentence is exaggerated and
unduly flatters the customer. It should be toned down by saying something
such as “We value your goodwill and will make quick efforts to ensure your
satisfaction.”
Finally, the tone of business writing should be non-discriminatory. This
means that the language that is used should not be offensive, irrespective of
gender, religion or race.

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One way of ensuring this is to avoid ‘sexist language’ by using neutral job
titles, or titles that do not imply that a job is held only by a man.
For example,
‘Chairperson’, instead of ‘Chairman.’
‘Salesperson’, instead of ‘Salesman.’
If the reader’s gender is not known, use a non-sexist salutation such as
‘Dear Customer, Investor, or Advertiser’, instead of ‘Dear Sir or Madam.’
Personal titles and salutations such as ‘Dr.’, ‘Professor’, etc., should be
used wherever appropriate.
5.3.2 Emphasis and subordination
A business writer can be compared to an artist or a musician. Just like an
artist or a musician, a business writer too tries to make certain elements
stand out and others to get little attention. An important principle of business
writing is to emphasise important ideas and to downplay unimportant ideas,
so as to make the reader understand what you consider to be significant.
Generally, pleasant and important thoughts are emphasised, while
unpleasant and insignificant thoughts are subordinated or de-emphasised.
The techniques that a business writer can use for emphasis are:
 Place the idea in the first paragraph or in the last paragraph, in order to
get attention.
 Put the word that you wish to emphasise first or last in the sentence.
For example, ‘Success’ comes through sincere efforts. ‘Failure’ will result
without them.
Or, the event was a ‘success’. Without your efforts, it would have been a
‘failure’.
 Use the active voice to emphasise the doer of the action and the passive
voice to emphasise the receiver of the action.
For example, ‘John’ made the presentation. (Active)
‘The presentation’ was made by John. (Passive)
 Use words such as ‘primary’, ‘major’ and ‘significant’ to lay emphasis.
For example, “Cost is a ‘significant’ factor to be taken into
consideration.”

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 Use repetition.
For example, “The Tata Nano is an ‘inexpensive’ car. It is ‘inexpensive’
to purchase and ‘inexpensive’ to maintain.”
 Number the ideas, so as to rank them in the order of importance.
For example, The main reasons for his poor performance are – 1) Lack
of training 2) Lack of team skills and 3) Lack of motivation.
 Use visual elements such as bold type, capital letters, bigger font size
and underlined words to emphasise key ideas.
For example, “The Reva electric car is ‘25% LESS POLLUTING’ than
other cars”.
 Use compare and contrast to convey the similarities and differences.
For example, “Although oranges and apples grow in trees, oranges are
citric fruits”.
 Use parallelism, where a noun is listed with other nouns, an -ing form
with other -ing forms, etc.
For example,
Sentence 1: Tom plays the piano.
Sentence 2: Tom plays the violin.
Parallelism: Tom plays the piano and the violin.
Another point to be remembered regarding emphasis in business writing is
to stress what is known as the ‘you attitude’, rather than the ‘me attitude.’
This means explaining the benefits to the reader, understanding his situation
and answering his unspoken question ‘How is it relevant to me?’
For example, instead of saying, ‘Our bank will be open 24 hours’, say ‘You
will be able to avail round-the-clock banking service.
5.3.3 Write at an appropriate level of readability
The third very important rule of business writing is to tailor your writing to
your audience and to make it simple enough for even a layperson to read
and understand.
As pointed out in an earlier section, readability is determined by the length
of words and sentences. Robert Gunning developed what is known as the
‘Fog Index’ or a readability formula to measure the readability of a piece of
writing. According to this formula, the appropriate reading level in business
writing should be between 8 and 11.
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Calculation of the Fog Index involves the following steps:

1. Select a written passage of approximately 100 words.
2. Calculate the average length of a sentence by dividing the total number
of words in the passage by the number of sentences.
3. Find the number of difficult words. A word may be defined as difficult if it
contains three or more syllables (example, ‘communication’). Determine
the number of difficult words per hundred, by dividing the total number of
words in the passage into the number of difficult words, then by
multiplying this figure by 100.
4. Add the number of difficult words per hundred and the average sentence
length.
5. Multiply the figure obtained in step 4 by 0.4, to calculate the reading
grade level for which the passage was written, or the Fog Index.
Ideally, the Fog Index should be between 8 and 11 for most business
writing, indicating that a reader between the eighth grade and the eleventh
grade should be able to understand it without difficulty.

Activity 1:
Select an article from any business publication and measure its
readability by calculating the Fog Index. Is the level of readability
appropriate for the audience?
(Refer sub-section 5.3.3 for detailed guidelines)

Common parallelism mistakes made:

1. We often forget to complete the second construction.
For example, “Sheela likes to run and swim”. The correct sentence is
“Sheela likes to run and to swim”.
2. We do not maintain consistency in the pronouns and verbs used.
For example, “Raju wanted a cookie, but the last one was eaten by
Ram”. The correct sentence is “Raju wanted a cookie, but Ram ate
the last one”.

Self Assessment Questions

9. Using the passive voice is a technique of _____________________.

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10. Readability is determined by ______________ ________________.

11. According to 'Fog Index' formula, the appropriate reading level in
business writing should be between eight and eleven. (True/False)

5.4 Summary
Let us recapitulate the important concepts discussed in this unit:
 The three stages of writing methodology, prewriting, writing and review
must be followed to make written communication more effective.
 It is a good practise to choose proper words to make the writing more
effective.
 You have to avoid the use of complicated words, use of jargon, slang
and colourful language while writing.
 You must be very careful while using the parts of speech - nouns,
pronouns, adjectives, verbs, adjectives and adverbs as incorrect usage
can lead to misunderstanding.
 Proper and correct use of active voice, passive voice, spellings and
punctuations help to minimise the ambiguity and confusion during
written communication. They also increase the effectiveness in
communication.
 Right use of tone, emphasis and subordination adds value to the
communication and increase the clarity.
 Tailor your writing to ensure that you communicate to your audience
using minimum, simple and effective words.

5.5 Glossary
Concise: Expressing much in a few words or brief and compacted.
Courteous: Exhibiting courtesy and politeness.
Parallelism: Similarity of construction or meaning of clauses placed side by
side.
Phrase: Two or more words in sequence that form a syntactic unit that is
less than a complete sentence.
Presumptuous: Going beyond what is right or proper.

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5.6 Terminal Questions

1. Explain briefly the four steps of the review process.
2. Select any piece of general writing from a newspaper or magazine, of
approximately 250 words in length. Evaluate it by determining the
number of simple and complicated words, the correct usage of parts of
speech and the use of jargon, slang and metaphors. Is it well or badly
written, in your opinion?
3. What are some of the consequences of spelling and punctuation errors,
redundancies, clichés and misuse of words?
4. How does general writing differ from business writing, in terms of
language, style and tone?

5.7 Answers

Self Assessment Questions

1. Prewriting
2. False. You check for wordiness, long sentences, complex and
incomplete sentences when you review for micro issues.
3. True
4. False. As it is better to rely on plain and simple words, it is better to use
the word 'ask' rather than 'interrogate'.
5. Concrete
6. A - 2, B - 1, C -4, D - 3
7. True
8. False. The phrase 'Thanking you in advance’ is an example for clichés.
9. Subordination/de-emphasis
10. Sentence length/word length
11. True

Terminal Questions
1. The four steps of the review process are: review for strategy, review for
macro issues, review for micro issues and review for correctness. For
more details, refer sub-section 5.2.1.
2. Writing style can be vastly improved through the choice of words. Some
of the common problems of word choice include use of complicated
words, use of jargon, slang and colourful language and mistakes in
various parts-of-speech categories. For more details refer sub-section
5.2.2.

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3. The important point to be remembered with regard to spelling is the

difference between British English and American English. Some words
are spelt differently in British and American English. For more details
refer sub-sections 5.2.4 and 5.2.5.
4. Business writing must focus on important ideas and downplay
unimportant ideas, to make the reader understand what you consider to
be significant. For more details refer sections 5.2 and 5.3.

5.8 Case Study

FOCs Written Communication Programme

The Foreign and Commonwealth Office (FCO) initiated a programme,
Professional Skills for Government (PSG) to develop professional skills for
its civil service employees. This aimed to motivate the employees and
foster long term goals of improvement by imparting skill in the employees
to carry out their work effectively.
Objectives of the Programme
FCO identified effective written communication as the most important skill
that all employees had to master depending on their grade and
responsibilities. The main objectives of the communication skill
enhancement programme were to:
 Review and adopt key principles of effective writing.
 Add value to written communication skills of each employee.
 Minimise the time spent on redrafting documents.
Challenges
Some of the most important challenges to achieve the objectives were:
 To gain the interest and attention of the employees at all levels.
 To ensure that all the current guidelines of FCO for drafting and writing
are incorporated into the programme.
 To adopt follow-on coaching sessions to each employee’s personal
objectives.
Solutions
To meet the objectives and overcome the challenges the following
strategies were adopted in the training programmes:

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 Two programmes ‘Effective Writing’ and ‘Writing with Impact’ were

planned and carried out. These programmes were developed
considering employees at different levels.
 In order to develop specific skills, two follow-up individual coaching
sessions are offered to each employee. The employees work closely
with the trainer and they use authentic business documents to ensure
that the required skill are targeted appropriately during the training.
Result
The employees showed great interest and regularly attended the
programme. Employees' confidence and accuracy in written
communication increased. This has decreased the repeated redrafting of
documents and improved efficiency.
Discussion Questions:
1. What are the written communication programme objectives of FCO?
(Hint: Refer to section ‘Objectives of the Programme’ in the Case
Study)
2. How did FCO’s written communication programme overcome the
challenges to meet the objectives?
(Hint: Refer to section ‘Solution’ in the Case Study)
(Source:
http://www.communicaid.com/pdf/casestudies/Communication%20Skills%20
-%20FCO%20Case%20Study.pdf)

References:
 Guffey, M.E., & Loewy, D. (2011). Business communication: Process
and product, 7th ed. USA: South-Western Cengage Learning.
 Munter, M. (2011). Guide to Managerial Communication, 8th ed. India:
Dorling Kindersley (India) Pvt. Ltd.
E-References:
 http://www.umuc.edu/writingcenter/onlineguide/chapter2-02.cfm –
Retrieved on January 10, 2012.
 http://lewis.cpsb.org/faculty_pages/stacey.blanchard/THE%20FIVE%20
STEPS%20OF%20THE%20WRITING%20PROCESS.htm – Retrieved
on January 11, 2012.
 http://www.communicaid.com/pdf/casestudies/Communication%20Skills
%20-%20FCO%20Case%20Study.pdf - Retrieved on January 12, 2012.
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Business Communication Unit 6

Unit 6 Developing Oral Business

Communication Skills

Structure:
6.1 Introduction
Objectives
6.2 Types of Oral Communication
6.3 Oral Business Presentations
Steps in making oral presentations
Using visual aids to support presentations
6.4 Summary
6.5 Glossary
6.6 Terminal Questions
6.7 Answers
6.8 Case Study

6.1 Introduction
In the previous unit, you learnt the general principle of writing and principles
of business writing. Irrespective of your field or the type of job that you
choose to take up, you must develop good oral communication skills along
with written skills. Oral communication is an important part of
communication, whether it is in the form of a speech or proposal, both within
and outside the organisation. Oral skills are needed for making effective
presentations, participating in and conducting meetings, dealing with
customers and interacting on a day-to-day basis with your superiors, peers
and subordinates within the organisation. Your oral communication skills
often reveal your personality. Speaking effectively also gives you great
visibility and confidence and can contribute to your career success.

Kerka, S. in his book Job related basic skills (1990) writes, "The
importance of workplace literacy has been underscored by the link
between basic skills and productivity." Oral communication, listening,
group effectiveness, interpersonal skills, negotiation and teamwork are
identified among six job related basic skills sought by employers.

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Maes, J. D., Weldy, T. G. & Icenogle, M. L. in their report A Managerial

Perspective: Oral Communication Competency is Most Important for
Business Students in the Workplace. Journal of Business
Communication, 34, p67-80. states that "Results of two studies show that
oral communication is the most important competency for college
graduates entering the workforce." Their report identifies the oral skills
most important for entry level graduates as: following instructions,
listening, conversing, and giving feedback. In the first study, 354
managers identified and ranked the competencies and characteristics
they consider when hiring college graduates for entry level positions.
Findings revealed that the top three competencies are oral
communication, problem solving, and self-motivation. Based on the first
study, the second study revealed that the most important functions
graduates perform are associated with oral communication competency
such as handling customer complaints and meeting skills.
(Source: MORREALE, S.P., OSBORN, M.M., PEARSON, J.C. (2000). Why
Communication is Important: A Rationale for the Centrality of the Study of
Communication. Journal of the Association for Communication
Administration, 15, 16)

This unit helps you to answer the following questions:

What are steps of effective oral communication?
What is the use of visual aids in presentation?
In this unit you will learn the advantages of oral communication in business
environment. You will also learn the art of developing presentations.

Objectives:
After studying this unit, you should be able to:
 explain the two types of oral communication skills
 list the types of presentation and its target audience
 list the steps for developing oral presentation
 select visual and other presentation aids for maximum effect

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6.2 Types of Oral Communication

In Unit 2, we learnt that oral communication has some advantages
compared to written communication. The advantages include personal
quality, high interactivity, possibility of making immediate contact and
obtaining instantaneous feedback and control over the receiver’s attention.
Oral communication is classified into two types, oral face-to-face
communication (for example, meetings and presentations) and oral non
face-to-face communication (for example, teleconferencing, telephone and
voice mail). While face-to-face meetings are more effective than non face-
to-face communication in most ways, they are expensive and impractical
sometimes, due to the distance factor. Thanks to advances in technology,
meetings today can still take place without being face-to-face, through
teleconferencing. Teleconferencing allows participants at distant locations to
speak and sometimes to see each other. Apart from the high cost and the
difficulty in setting it up, teleconferencing has the same advantages as oral
face-to-face communication.
For example, Wal-Mart, the world’s largest retailer, makes use of
teleconferencing to keep its US headquarters in touch with the store
managers worldwide. Some head-hunters also make use of the facility to
conduct preliminary interviews and shortlist candidates based in other
countries, before inviting them for a face-to-face interview.
Many multi-national corporations and large Indian organisations also use
this facility extensively.
In spite of its advantages, teleconferencing will not replace face-to-face
meetings completely, since it is unsuitable for certain types of
communication that involve brainstorming, negotiations, persuasion and
problem solving.
Telephone communication, another form of non face-to-face
communication, has the biggest advantage of being able to contact a
receiver who would be impossible to reach in person. Today, mobile phones
have made it even easier to contact people who are on the move.
Telephone communication also has a personal quality and permits the use
of some non-verbal cues such as tone of voice, to enhance the
communication.

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Voice mail is a type of telephone communication and is similar to an

answering machine. Although it is generally inferior to speaking in person to
the other party, it has some advantages. When you leave a recorded
message, you can make your point felt and save time that might be wasted
in exchanging pleasantries. Invitations can also be declined without having
to give an explanation or reason or having the other person talk back. Thus,
there is greater control over how the message is composed and delivered.
Besides, voice mail also makes it possible to keep a permanent record of
the communication, unlike other types of oral communication. In spite of
these advantages however, voice mail has not caught on in India.
Self Assessment Questions
1. Conflicts between co-workers can be resolved through teleconferencing.
(True/False)
2. __________________ will not replace face-to-face meetings completely.
3. Telephone communication has the advantage of providing immediate
feedback. (True/False)

6.3 Oral Business Presentations

Oral business presentations are a powerful way of presenting your ideas to
others and are usually called for when a written memo or report is not
sufficient to do the job. A written report tends to be less persuasive and may
also be set aside without being read, whereas an oral presentation
commands attention and fetches immediate feedback. Besides, approval for
important ideas is rarely given without a face-to-face explanation.
Presentations may be made to both internal audiences – superiors, peers
and subordinates, as well as to external audiences – consumers,
intermediaries, bankers, suppliers etc. Presentations may also be of
different types, each with a different purpose. Some of the most common
types of presentations and the audiences to whom they are addressed are
mentioned in table 6.1.

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Table 6.1: Types of Presentation and Target Audience

Type/Purpose of Example Audience

Presentation
Briefing and Information New online leave application Employees
procedure

Orientation Orientation to new joinees Employees

Training How to operate a new Employees
software
Reporting Research Consumer satisfaction Superiors
Findings survey
Reporting Progress Report of weekly sales Superiors
Highlighting Company’s Reporting awards won by Media
Achievements the Company
TV and Radio Interviews Describing company’s Society at large
to describe Company position on environmental
Viewpoints issues
Introduction Overview of the company New employees
Product Presentation Highlighting features of a Consumers,
new product intermediaries
Project Proposal New project undertaken by Bankers
the company
Policy Proposal New mobile phone expense Superiors
reimbursement policy
Marking Special Presentation at company Internal and external
Occasions anniversary celebrations audiences

6.3.1 Steps in making oral presentations

The table 6.1 indicates that oral presentations can range from simple to
more complex ones, each with a different purpose. Irrespective of the nature
of the presentation, the steps shown in figure 6.1 can be followed for
planning and preparing an oral presentation.
Figure 6.1 depicts the steps for creating an effective oral presentation.

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Fig. 6.1: Steps for Creating Oral Presentation

Let us now study each of these steps in detail.

1. Definition of the purpose of the presentation
Before preparing for the presentation, it is important to be clear on the goal
of the presentation. A ’statement of purpose’, expressing what you want to
achieve through the presentation must be framed, so that it becomes easy
to measure whether the goal has been accomplished or not.
The purpose of the presentation may be stated in broad or general terms or
in more specific terms. A ‘general statement of purpose’ could be expressed
in terms of one of the following:
 To inform – A presentation that seeks to inform would merely create
awareness about developments and progress on specific fronts or try to
spread knowledge about something new. In table 6.1, the first eight
types of presentations are aimed at informing different audiences about
something or the other – new procedures, new terminology, new
software, findings of a study, sales progress, company achievements,
viewpoints and background.

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 To persuade – A presentation that aims to persuade would try to

change the attitude or behaviour of the audience. It usually involves
selling either a product or an idea. In table 6.1, the product presentation,
project proposal and policy proposal, are all persuasive presentations.
The product presentation seeks to persuade consumers to try a new
product, the project proposal tries to persuade bankers to provide funds
for a new project and the policy proposal tries to persuade top
management to adopt a new policy of reimbursing mobile expenses.
 To entertain – A presentation with this purpose is meant to make the
audience relax and have a good time. In table 6.1, presentations
marking special occasions such as the company anniversary, may
merely focus on making people feel good about themselves.
Although it is useful to define the general purpose of a presentation, it is
more important to frame a ‘specific statement of purpose’, which clearly
spells out the answers to the following questions:
 Whom do I want to influence?
 What do I want them to do at the end of the presentation?
 How do I want them to do it?
 When do I want them to do it?
 Where do I want them to do it?
For example, “I want 50% of my prospective customers to be convinced
enough to walk in to the store and try out the new product on a trial basis,
within the next one week.”
The statement of purpose in the previous example describes the reaction
that you are seeking from your audience and also describes the goal in
measurable terms. The number of customers who walk into the store and
sample the product during the one week period would indicate whether the
goal has been achieved or not. As far as possible, the goal must be
quantified, so that it is measurable.
Presentation goals must be realistic, keeping in mind the limitations of time,
the topic of the presentation and the nature of the audience. For example, a
presentation that aims to train employees on the use of complicated
software must not expect them to become experts at the end of the session.

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2. Development of the key idea

The ‘key idea’ of a presentation is a statement that expresses the main
message to be conveyed to the audience. It is different from a statement of
purpose, which is generally meant for the presenter. The key idea is for the
audience and it is stated at the beginning of the presentation.
For example, if the purpose is to persuade a prospective customer to try out
your company’s brand of vacuum cleaner, the key idea or message may be
to explain how your brand is superior to other brands, feature for feature.
Once the key idea is clearly stated, it becomes easy to develop the rest of
the presentation.
3. Audience analysis
Making a good presentation alone is not enough. It also has to be tailored to
your listeners in such a way that they understand and appreciate it. The
following ‘information’ must be ‘gathered about your audience’, even before
you begin preparing for the presentation:
 Job designations and areas of expertise – You need to find out
whether the audience comprises of specialists in a particular area such
as information technology or generalists. If they are specialists, your
presentation could include technical aspects and jargon, which they
would be able to understand. If not, you may have to make the
presentation simpler or explain some of the terms elaborately.
 Preferred style of presentation – It would also be relevant to know the
personal preferences of your audience, with regard to the style of
presentation that they are most comfortable with. Some people may
prefer a more informal or conversational style with some humour than a
more formal style. Others may like the presentation to be made at a
slower pace or they may prefer the presentation to be formal. However,
you have to remember that humour must be used with care, so that it is
relevant and does not offend the audience. Analysing all this in advance
would help in determining how the presentation must be delivered.
 Demographic characteristics of the audience – The gender, age,
cultural background and economic status of the audience also need to
be studied in advance, so that the presentation may be tailored to
appeal to that particular audience. For example, a financial planner

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addressing an audience comprising of senior citizens, is likely to suggest

investment options that would be different from those that might be
suggested for a younger audience.
 Size of the audience – The size of the audience would determine your
presentation style, the time set aside for questions and answers, the
size of visuals, etc. With a smaller group, the presentation could be
made less formal, the time for questions and answers could be reduced
and the visuals could be made smaller, than for a larger group.
 Level of knowledge on the subject – You need to know how familiar
your audience is with the subject of the presentation. If the audience
comprises of experts in that particular area, basic explanations may not
be needed. On the other hand, if the level of familiarity is not so high, a
lot of background information and explanation is required.
 Attitude of the audience – The attitude of your listeners, both towards
you as a speaker and towards the topic of the presentation, needs to be
studied in advance. If the audience is prejudiced towards you for some
reason, you may have to alter your style of presentation considerably. If
the presentation happens to be on a sensitive topic, you may have to
proceed very tactfully. This is especially true of presentations that aim to
persuade.
4. Analysis of yourself as a speaker
Apart from analysing your audience, you also need to do a self-analysis to
determine your own purpose of making the presentation, your level of
knowledge on the subject and your feelings about the subject. As explained
earlier, a clear statement of the specific purpose of the presentation must be
developed. If you have a choice of subject, it is always better to speak on a
subject on which you are an authority. If the choice is not given to you and
you are less knowledgeable, then it is important to research the subject
thoroughly, so that you are in a position to anticipate and answer any
questions. Finally, you need to assess your feelings about the subject and
make sure that you are convinced enough to be able to persuade others as
well. This is similar to a salesperson being convinced about a product to be
sold.

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5. Analysis of the circumstances

This includes taking into consideration any limitations of infrastructure, time
and context that might affect your presentation. For example, if you will be
speaking in a small room where the lighting and acoustics are insufficient,
you may have to overcome the limitations by altering the seating
arrangement, using brighter visuals and speaking loudly. If the presentation
is to be made after lunch, you can include many attention grabbers in the
presentation, to keep the audience alert. If you are making a presentation as
part of a team, your style of presentation has to be consistent with that of
your team members.
6. Preparation of outline
Once the initial groundwork is done, you must develop an outline of your
presentation. Irrespective of the nature and purpose of the presentation, a
standard format is generally followed. This includes the following:
 Introduction – This must include an ’attention getter’ to get the
audience involved and interested in the presentation. Several
techniques may be used to command attention, which will be discussed
later. The key idea or main message must be conveyed to the audience
during the introduction.
 Body or main section – This is where the main points will be presented
and elaborated upon. It is best to limit the number of main points to five,
so as not to overload the listeners with too much information.
 Conclusion – A brief summary of the presentation, along with
concluding remarks would be included in this section. The conclusion
must have as much ’punch’ as the attention getter in the introduction.
7. Collection of information and material
Once the outline of the presentation is developed, you can start gathering
the relevant material. This is a time consuming process and requires a fair
amount of research. The information can generally be gathered from
existing sources such as company resource or data, magazines,
newspapers and the Internet. Sometimes, you may need to do original
research in the form of a survey to gather fresh data. For example, if you are
making a presentation on a new product, you may have to conduct a survey
to find out how consumers feel about that product concept and also about
similar, competing products.

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8. Organisation of the body

The body of the presentation must always be prepared before the
introduction. Organising the body consists in identifying the key points that
support your main idea and then selecting an organisational plan to develop
these key points.
Let us take our earlier example of a sales presentation on a vacuum cleaner
to prospective customers, where the key idea is to highlight that it is superior
to competing brands. The main points in this case can be:
 It has greater cleaning power than other brands.
 It is more affordable.
 It is easier to use than other brands.
Once the main points are determined, sub points can be developed to
expand on each of these.
The next step is to choose an organisational plan to present these main and
sub points.
For example, in the case of a sales presentation a ’problem-solution’ pattern
or plan may be followed, where the customer is confronted with a problem
and the product is offered as a solution to the problem.
9. Planning the introduction
Since the introduction is where you make the first impression, it must be
planned with care. It must take up between 10 and 15 percent of your total
speaking time. At the outset, you need to try and establish your credibility,
by showing that you are qualified to speak on the subject of the
presentation. An attention getting opener must be developed, using
techniques such as humour, dramatic questions, an interesting story, a
quotation or a startling statement.
For example, do you know that the number of road accidents last year
touched the 100,000 mark?
Once audience attention is captured, the main idea must be stated clearly,
followed by a preview of the entire presentation, so that people know what
to expect.

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10. Planning the conclusion

The conclusion of a presentation must be shorter than the introduction and
occupy only 5 percent of the entire presentation. You must never introduce
a new topic in the conclusion. Generally, every conclusion must have a
review and a closing statement.
The review is essentially a reinforcement of the key idea and a summary of
the main points. The main points can be enumerated, as in the outline of the
presentation. The closing statement must be as strong as your opening
statement, so that your audience will remember the presentation. Therefore,
the same techniques used to capture audience attention may also be used
to prepare a good closing statement. In the case of persuasive
presentations, the closing statement can include a call for immediate action.
For example: Now that you have seen what our vacuum cleaner can do,
walk into our store today to place your order and avail an early bird discount!
11. Selection of a delivery style
Once your presentation is adequately prepared in terms of content, you also
need to ensure that it will be delivered effectively, by selecting an
appropriate style of delivery. Figure 6.2 depicts the five different delivery
styles available to speakers.

Fig. 6.2: Presentation Delivery Styles

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 Speaking impromptu – In this case, the speaker is called upon to say a

few words without any warning or advance notice. Since there is little or
no time given for preparation, it is suited for only expert speakers.
Impromptu speeches must be brief, simple and direct, compared to
prepared speeches.
 Speaking extemporaneously – This is different from speaking
impromptu. While impromptu speeches are delivered on the spot and
not rehearsed, an extemporaneous speech is prepared and rehearsed in
advance. However, the speech is delivered naturally, without the support
of notes or other aids. This is the delivery style used by experienced
professionals, who have sufficient knowledge of the subject to be able to
speak without relying on notes.
 Memorising the presentation – This is the least appealing style of
delivery, as it comes across as unnatural and monotonous to the
audience. Speakers who memorise and deliver presentations word for
word will also be at a disadvantage if they forget a part of the speech, as
they will be unable to speak naturally.
 Reading from written notes – This involves reading the entire
presentation from notes. It is a method used by government or business
officials and may be appropriate when the material to be presented is
highly technical or complex. However, it has some limitations. First, it
gives the impression that the speech is very long and heavy. Secondly,
it prevents the presenter from making eye contact with the audience.
 Speaking from notes – This is generally the most effective style of
delivery. It involves jotting down the main ideas in point form on index
cards and then referring to these cards merely as a trigger while
speaking. If the main ideas are put down briefly on the cards, the
speakers can elaborate on these ideas in their own words and speak for
any length of time. The presentation is likely to be more effective, since
it comes across as natural and permits eye contact with the audience.
Along with these elements the speaker must also ensure to maintain good
voice quality during oral communication, as it creates a stage for healthy
communication. As a speaker you must ensure that you are audible to the
listeners. Therefore, you must adjust the pitch and loudness of your voice
accordingly.

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Self Assessment Questions

4. Match the following
Set A
A) General purpose statement
B) Quantified goal
C) Audience size, age and gender
D) Use of humour
E) Trigger for speaking
Set B
1) Demographics
2) To persuade
3) Specific purpose statement
4) Speaking from notes
5) Opening and closing statements
5. Where will you elaborate the main points in a presentation?
a) Introduction
b) Body
c) Conclusion
d) Outline
6. Speaking a few words without any warning or advance notice is called
speaking extemporaneously. (True/False)
6.3.2 Using visual aids to support presentations
The use of visual aids enhances the effectiveness of a presentation and
involves the audience more than a pure oral presentation. As the saying
goes, “A picture is worth a thousand words”. Several studies have indicated
that presentations made with visual support have been more successful in
persuading audiences than presentations without visuals. Visuals have also
been found to make the information in presentations more memorable. In
addition, graphics help speakers to illustrate ideas and to answer questions.
However, visual aids must be used only where it is relevant and not just for
the sake of using it. Since, they may distract the attention of the audience
from the speaker’s main message.

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A speaker has a wide variety of visual aids to choose from. Some of the
commonly used types of visual aids are:
 Product demonstrations – Since “seeing believes”, a sales
presentation can be more effective and convince a prospective customer
to try a product, if the product is shown in actual use.
 Photographs – Photographs are true to life and are an effective way of
illustrating products. They are highly credible and can be used as proof
to support facts.
 Diagrams – These are two dimensional drawings which can convey
information about size, shape and structure – for example, floor plans.
 Lists and tables – These are an effective way of highlighting facts and
figures and of making comparisons – for example, comparing last year’s
profits with this year’s profits.
 Pie charts and graphs – Pie charts help to illustrate percentages of a
single item – for example, the percentage of the total students in each
area of specialisation of an MBA programme. Graphs are good for
illustrating trends or growth in sales and profits over time.
Once the type of visual aid has been decided, the medium for presenting the
visual aid needs to be selected. Again, a variety of media are available to
the presenter. They are:
 Flip chart
 Transparencies
 PowerPoint slides
 Handouts
 Computerised displays
 Videotapes
Let us now discuss the relative advantages and disadvantages of each of
these media and some guidelines for using them.
Flip chart
Flip chart consists of a large pad of thick chart paper attached to an easel,
where different pictures are shown on separate charts one at a time, by
turning the pages. At the end of the presentation, the charts can be flipped
over to recap the session, hence the name ’flip chart’. Flip charts are
commonly used during sales presentations and business meetings. They
are easy to prepare, use, carry and set up. However, they are not suited for

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making a presentation to a large audience. They are also clumsy and can
become worn out after repeated use. Figure 6.3 depicts a flip chart.

Fig. 6.3: A Flip Chart

Transparencies
Transparencies are clear sheets used with an overhead projector to project
an image on the screen. It is possible to transfer text or visuals from other
sources on to a transparency by using a copy machine. It is also possible to
write directly on the transparency with special marker pens, during the
presentation.
Transparencies have a number of advantages. Unlike flip charts, they are
better suited for large audiences. Unlike other visual aids, they are also
easier and quicker to produce, since you can copy visuals from other
sources, instead of creating them from scratch. You can also write on them
as you speak and later erase what you have written and re-use them.
The disadvantage of using transparencies is that they are unmanageable
and require an overhead projector. The speakers also have to position
themselves in such a way that the projector does not block anyone’s view.
Figure 6.4 depicts a transparency sheet.

Fig. 6.4: Transparency Sheet

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PowerPoint slides
PowerPoint slides are an effective visual aid as they lend a touch of
sophistication and professionalism to the presentation. It is ideal for
presentations where technical pictures and elaborate diagrams are needed
to illustrate ideas to the audience. PowerPoint slides are easy to store, since
they are less cumbersome than flip charts and transparencies. It is also
possible to transfer photographs, logos and other visuals directly on to the
slide.
The use of laptop computer and presentation software such as Microsoft
PowerPoint has made creation of presentation very easy. You can easily
add screen, produce dramatic visuals, animation and simulations to your
presentation. Computer based visuals created using PowerPoint has
become a standard for most technical, educational and business
presentations. It can be used effectives for large and small audience to
convey simple as well as complex information.
The disadvantage of PowerPoint is that it tends to be overused for the sake
of technology, ’gimmickry’ and special effects. This tends to distract the
attention of the audience from what the speaker is saying. Therefore,
PowerPoint slides must be prepared carefully and used judiciously.
Figure 6.5 depicts a PowerPoint slide on Microsoft PowerPoint Presentation
Window.

Fig. 6.5: Microsoft Office PowerPoint Slide

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The table 6.2 lists some dos and don’ts of preparing and using PowerPoint
slides for presentations.
Table 6.2: Checkpoints for Using Power Point Slides

1. Do not make the layout of the PowerPoint slides too cluttered or

crowded.
2. Do not prepare too many or too few slides. Around 12 slides are
sufficient for a one hour presentation.
3. Plan to spend about 2 – 3 minutes talking on each slide, excluding
the title and outline of the presentation.
4. Pay attention to the font size, number of words and number of lines
on a slide. Seven words per sentence and Seven lines per slide is a
general rule of thumb.
5. Make the slides look sober and dignified and do not make the
background too flashy.
6. Ensure that the style and format used in the slides are consistent.
7. Make the text on the slide crisp, avoiding unnecessary articles and
prepositions.
Choose key words and phrases, instead of long sentences.
8. Add value to what is on the slide, by explaining key points. Avoid
reading directly from the slide.
9. Balance the time spent on each slide. Do not spend too much time
on some slides and rush through the rest.
10. Coordinate your explanation with the slide numbers.
11. Focus on the main points mentioned in the slides. Avoid needless
frills and trivialities.

Additional References:
 http://www.presentationmagazine.com/powerpoint.htm
 http://www.lifehack.org/articles/technology/10-tips-for-more-effective-
powerpoint-presentations.html
 http://www.microsoft.com/atwork/skills/presentations.aspx

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Handouts
Handouts are printed details on the topic of the presentation that are
distributed to the audience. They have the advantage of providing a
permanent record of your ideas. They also provide extra information which
you may not be able to cover during your oral presentation. For example, if
you are making a presentation on a new product, the technical features of
the product, along with some illustrations, could be included in the handout
for the audience to study later. Handouts can also reduce the need for the
listeners to take notes during your presentation. This way, their attention will
be completely focused on what you are saying.
One problem with handouts is that the audience may read them during your
presentation, instead of listening to your presentation. You can avoid this by
asking them to read the handouts later or by distributing the handouts at the
end of the session.
Figure 6.6 depicts sample handouts.

Fig. 6.6: Handouts

Computerised displays
Computerised displays are images stored on your own computer screen or
laptop, which can be shown to the audience to illustrate your ideas. This is
an inexpensive and convenient type of visual aid and requires little effort or

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advance preparation. However, it is suitable only for small audiences, due to

its small size. You can use a computerised display to make a presentation
to a large audience by using a Liquid Crystal Display (LCD) projector to
project the images onto a big screen. Figure 6.7 depicts a computerised
display using a LCD.

Fig. 6.7: Computerised Display

CDs and DVDs

Initially, videotapes were used as audio-visual aids to exploit the attention
grabbing properties of television for maximum impact. Compact Discs (CDs)
and Digitally Versatile Discs (DVDs) are used instead of videotapes now-a-
days for the same. Using CDs and DVDs for a presentation can add value
when you wish to illustrate action – for example, to show a sportsperson in
action, a product demonstration in a TV commercial or a speaker’s gestures.
However, like other visual aids, they must not be used for the sake of
entertainment. Attention must also be paid to produce them carefully, to
make sure that the quality is of a high standard.
Figure 6.8 depicts CDs and videotape.

Fig. 6.8: CDs and Videotape

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No matter what type of visual aid you choose to support your presentation,
some basic rules need to be followed when using them. They are:
 Use visual aids only if they add value – Make sure that you have a
reason to use a visual, rather than using it for its own sake. If your ideas
are better explained through words, avoid the visual, since this will only
distract the attention of the audience.
 Match your visuals with the level of the audience – Your visual aid’s
level of sophistication must depend on your audience. For example, if
you are making a presentation to top management, the graphics must
be extremely polished. For less formal presentations, simple graphics
created on your own computer or laptop may be sufficient.
 Make the visuals clear and large enough – Avoid creating visuals that
are so small that they have to be described. It is better to use no visual
support, than to use visuals that cannot be seen.
 Make the visuals simple – When creating visuals, avoid making them
too complicated and detailed, so that the audience can understand them
without difficulty.
 Avoid too much text with visuals – Visuals must have short captions,
using only key words and simple typefaces, so that attention is drawn to
the visual alone.
 Give each visual a title and number – For the sake of easy
identification, make sure that each visual is given an appropriate caption
and is numbered.
 Show a visual only when you discuss it – Revealing a visual before
you are ready to describe it will only distract the attention of the
audience from what you are presently saying.
 Remove visuals after use – Similarly, blank out, erase or turn off
visuals soon after you have explained them, so that the audience can
focus on what you are saying next.
 Check if visuals will work beforehand – Remember to check all the
facilities in the presentation room before the session, to ensure that the
visuals can be shown without any problem.
 Rehearse setting up visuals – Practise using the visuals before the
presentation, so that you are familiar with the sequence, when to show
and remove them, without any confusion.

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Activity 1:
Attend any presentation of your choice where the speaker uses visual
support. Evaluate its effectiveness, based on what was discussed in this
unit. What feedback and suggestions would you give the speaker,
regarding the use of visual aids?
(Refer section 6.3 for detailed guidelines.)

Additional Reference:
Guffey, M. E., Loewy, D. (2010). Essentials of Business Communication,
pp 333-370. USA: South-Western Cengage Learning.

Don’ts in a Business Presentation

 Don’t read word by word from your script. You will sound like a robot
and miss the all-important eye contact with the audience. Instead use
stiff cue cards with key words and starter sentences.
 Don’t talk too fast and try to reduce a 45-minute presentation into a
30-minute presentation by speaking quickly.
 Never use acronyms without spelling them out and explaining what
they mean.
 Don’t use complete sentences on your presentation slides. You must
orally present the information and the slides must only support it.
 Don’t use hard-to-read fonts or garish backgrounds that obscure the
text.
 Don’t use cute or unusual photos that are not illustrating exactly what
you are talking about. It distracts the audience and they might miss
what you are saying.
 Don’t waste your audience’s time by presenting the history and
structure of your organisation in business presentation. Do it only if it
is essential for the audience to understand your presentation.
 Don’t hide behind the computer or speaker stand. Make sure that the
audience can see you and maintain eye contact with them.

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Self Assessment Questions

7. Visuals make the information in presentations more memorable.
(True/False)
8. ____________________ are clear sheets used with an overhead
projector to project an image on the screen. (Pick the right option)
a) Transparencies
b) Flip charts
c) Power Points
d) Handouts
9. Name the audio-visual aids that exploit the attention getting properties
of television for maximum impact.
10. It is a good practice to blank out, erase, or turn off visuals soon after
you have explained them, so that the audience can focus attention on
what you are saying next. (True/False)

6.4 Summary
Let us recapitulate the important concepts discussed in this unit:
 There are two types of oral communication: oral face-to-face
communication and oral non-face-to-face communication.
 Oral presentation is a powerful way of conveying information and ideas
in business communication.
 The type of presentation is chosen based on the purpose of the
presentation and audience.
 The steps to develop an effective presentation are as follows:
o Definition of the purpose of the presentation
o Development of the key idea
o Audience analysis
o Analysis of yourself as a speaker
o Analysis of the circumstances
o Preparation of outline
o Collection of information and material
o Organisation of the body
o Planning the introduction
o Planning the conclusion
o Selection of a delivery style

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 The use of visual aids such as product demonstrations, photographs,

diagrams, lists and tables, and pie charts and graphs increases the
effectiveness of the presentation.
 A wide variety of media such as flip chart, transparencies, Power Point,
handouts, computerised displays and videotapes are used by the
speakers for presentation.

6.5 Glossary
Compact Disc (CD): An optical disc used to store digital data.
Digital Versatile Disc (DVD): A small plastic disc used for the storage of
digital data. It has very high storage memory compared to CDs.
Easel: An upright frame for displaying or supporting something, such as an
artist's canvas.
Impromptu: Totally unprepared.
Liquid Crystal Display (LCD) projector: It is a type of video projector for
displaying video, images or computer data on a screen or other flat surface.
Overhead Projector: It is a machine that displays images onto a screen
with a light and mirror system.
Teleconference: It is a telephone or video meeting between participants in
two or more locations.
Typefaces: It is the artistic representation or interpretation of characters or
symbols.

6.6 Terminal Questions

1. Name the two categories of oral communication. Explain them.
2. List any five types of presentations with examples and their target
audience.
3. What information will you gather during audience analysis? Explain.
4. Explain the different delivery styles that speakers can select for their
presentation.
5. What are the various visual aids that speakers can use in their
presentation?

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6.7 Answers

Self Assessment Questions

1. False. Conflicts between co-workers cannot be resolved through
teleconferencing.
2. Teleconferencing
3. True
4. A – 2, B - 3, C – 1, D – 5, E – 4
5. b) Body
6. False. The speaker is called upon to say a few words without any
warning or advance notice is called speaking impromptu.
7. True
8. Transparencies
9. Videotapes
10. True

Terminal Questions
1. Oral communication is categorised into two types based on the type of
interaction. They are oral face-to-face communication and oral non face-
to-face communication. For more details, refer section 6.2.
2. Presentations may be of different types and purposes depending on the
type of audience. Presentations can be made for orientation, for briefing
or for training. For more details, refer table 6.1 in section 6.3.
3. During audience analysis some of the information you gather before you
begin your presentation are:
 Job designations and areas of expertise
 Preferred style of presentation
 Demographic characteristics of the audience
 Size of the audience
For more details, refer sub-section 6.3.1.
4. The different delivery styles that a speaker can adopt are as follows:
 Speaking impromptu
 Speaking extemporaneously
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 Memorising the presentation

 Reading from written notes
 Speaking from notes
For more details, refer sub-section 6.3.1.
5. Speakers can make use of visual aids such as product demonstrations,
photographs, diagrams, lists and tables, and pie charts and graphs in
their presentation. For more details, refer sub-section 6.3.2.

6.8 Case Study

PCA Training Approach for PCT

Issue
Powerful Communication Associates (PCA) were approached by Jane
Mackie, Head of Training and OD, Commissioning to conduct
communication skill development courses for the Executive team of the
Commissioning Arm of the PCT in St. Margaret’s Hospital.
The executives of the hospital were highly dedicated and experienced
professionals who were extremely good at their work. The challenge for
PCA was to enhance the skills of the executives and prepare them to
handle wide range of demanding and stressful communication situations
for example, communicating with the public, with patients, the media, at
conferences, at meetings etc.
Approach
PCA explored in detail the individual roles and professional challenges of
the executives. PCA also looked for the possible future demands that can
arise for which the executives had to be prepared. After much thought
and discussion, PCA devised a course to suit the needs of PCT.
PCA was very much aware of the fact that audience usually judge a
speaker by the manner and style of his/her speech. The training sessions
developed was a practical one that focused on the physical, emotional
and intellectual demands of speaking in public. The training also
emphasised the need for a speaker to come prepared before the speech.
During the training relevant exercises for posture, breathing, vocal tone,

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clarity and delivery style were demonstrated and exercised to enhance

the effectiveness of communication. The main aim of the training was to
bring a balance between the speaker’s style of presentation and
substance of the speech.
Result
The training proved to be very effective. The communication standard of
the hospital staff who participated in the training programme had
increased and they sounded highly professional. Each individual, by
themselves, had found a style and approach which suited them to
communicate effectively with the public, with patients and the media. This
made them to communicate more confidently and effectively.
Discussion Questions:
1. Why did Jane Mackie approach PCA?
(Hint: Refer to the section Issue in the Case Study)
2. Explain how PCA met the requirements of PCT.
(Hint: Refer to the section Approach in the Case Study)

(Source: http://www.powerful-communication.com/case-study-nhs-west-essex-
pct.htm)

References:
 Guffey, M.E., & Rhodes, K. (2009). Business Communication: Process
and Product. USA: Nelson Education Ltd.
 Roy, S. (2008). Mastering the Art of Business Communication. New
Delhi: Sterling Publishers Pvt. Ltd.

E-References:

 http://www.powerful-communication.com/case-study-nhs-west-essex-
pct.htm – Retrieved on February 02, 2012.
 http://www.ljlseminars.com/flipchrt.htm – Retrieved on February 03,
2012.

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Business Communication Unit 7

Unit 7 Reading Skills for

Effective Business Communication
Structure:
7.1 Introduction
Objectives
7.2 Reading – Overview
Purposes of reading
Reading as a skill
7.3 Types of Reading
Skimming
Scanning
Extensive reading
Intensive reading
Loud and silent reading
7.4 SQ3R Technique of Reading
7.5 Summary
7.6 Glossary
7.7 Terminal Questions
7.8 Answers
7.9 Case Study

7.1 Introduction
In the previous unit, we studied the advantages of oral communication. We
also became familiar with the steps to follow for creating an effective
presentation and the significance of using visual aids in presentation. Oral
communication plays a significantly important role in business
communication along with listening and written skills. At the same time,
business executives also need to equip themselves with reading skills, in
order to succeed in the workplace. The types of reading that you will have to
do at the workplace will be varied – sometimes you may have to do
extensive reading of professional books, magazines and journals; at other
times you may be required to study research reports in an intensive manner.
Often, business executives are also asked to scan newspapers and
magazines to collect information, or to read and condense business related

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articles for their busy superiors. Unless you familiarize yourself with the
different techniques of reading, you will not be successful.

Sticht, in 1975 found that a significant amount of time is spent in schools

on teaching how to read and interpret novels, short stories, dramas and
poetry. However, very less attention is given to teaching technical
reading skills needed in the workplace. The report released in 1991 by
Secretary's Commission on Achieving Necessary Skills (SCANS)
mentioned that reading of technical material as a basic skill is needed by
all workers. Reading at workplace usually comprises of the ability to
understand and interpret various documents such as diagrams,
directories, correspondence, manuals, records, charts, graphs, tables
and specifications.
Based on the research of Ross and Salzman, in 1987, Schmidt reported
that the reading materials for enhancing technical reading skills must be
developed using office documents. About 121 documents were collected
from ten businesses and were analysed for reading level. The average
reading grade levels for the documents ranged from 11.3 for those
collected from a bank to 13.4 for those collected from a university
continuing education centre office. Other businesses that provided
documents and their average reading grade levels included 11.4 for a
space industry manufacturer, 11.8 for a town administration office, 12.0
for a hospital, 12.0 for an insurance company, 12.1 for a chemical
industry manufacturer, 12.8 for a railroad, 13.1 for a country
administration office and 13.1 for a school division office. Thus, the
reading grade level of typical office documents is considerably higher
than general interest reading materials. Further, most reading done by
adults is technical and job-related reading. It is not the type of reading
emphasised in schools.
(Source: http://www.enotes.com/business-finance-encyclopedia/reading-
skills-business)

This unit helps to answer the following questions:

What are the types of reading?
Is there a special technique for reading?

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In this unit, we will study the significance of reading. We will also learn the
different types of reading and the significance of SQ3R technique.
Objectives:
After studying this unit, you should be able to:
 define reading
 explain the purpose of reading
 select different types of reading for different purposes
 describe the steps of SQ3R reading technique

7.2 Reading – Overview

Reading has been defined variously as follows:
 “Reading is thinking under the stimulus of the printed page” (Webster,
1982:30)
 “Reading is a psycho-linguistic guessing game” (Webster, 1982:19)
 “Reading comprehension means understanding a written text. Under-
standing a written text is extracting the required information from it as
efficiently as possible”. (Francoise Grellet 1991:3)
The above definitions/descriptions suggest that when we read any piece of
text, we understand the given text at the below three levels:
1. Pure, literal response to the familiar words on the page – In this level,
there is no in-depth understanding.
2. Recognition of the writer’s meaning - In this level, we read and
recognise the intention of the author in writing the given text.
3. Personal experience, - In this level, we relate our understanding to our
personal experiences.
Therefore, when you read, you read the lines, read between the lines and
also read beyond the lines. So reading is nothing but a decoding process.
Figure 7.1 depicts the decoding process.

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Fig. 7.1: Decoding Process

As shown in figure 7.1, a typical decoding or reading process involves a

message that is written (encoded) by a writer in a particular language. The
message written by the writer is read (decoded) by the reader.
7.2.1 Purposes of reading
We read many things in our day-to-day lives. Some of them include:
 Newspapers and magazines
 Advertisements, leaflets and pamphlets
 Textbooks, novels and short-stories
 Letters
 Email
 Recipes, puzzles, menus
 Articles, reports, legal documents
 Dictionaries, telephone directories
 Cartoons, comic strips
 Time-tables, maps, statistical graphs and diagrams
The above items are read either for knowledge, personal interest, pleasure
or to gather information. For you, as students, the purpose of reading is
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either for interest, pleasure or to acquire information and knowledge.

Reading for interest or pleasure is usually fulfilled through reading fiction,
while reading to learn is achieved by reading informative articles. Reading
for information may be both internal and external. When you read for
necessary background information about what is going on within the
company where you work or within your group, it is called ‘reading for
internal information’. Reading for information about what is going on in your
field, but outside your own company, is called ‘reading for external
information’.
Professional reading’ is done when you need to continue learning and
studying, so that you develop your own thinking and skills. However, you
must bear in mind that a text is not written strictly for any one purpose. For
instance, a biography or an autobiography may be read by one person for
personal interest, to understand the life story of an individual. The same
book may also be read by a research scholar, for research purposes.
People’s interest in reading is so varied that any text could meet any
purpose.
7.2.2 Reading as a skill
Similar to listening, reading for many of us, is a ’passive’ process, where we
sit down, relax and run our eyes through the words on the page. However,
meaningful reading or reading with understanding is considered as an
’active’ process. Readers can understand a text only when they actively use
their mental faculties. Therefore, to read efficiently, one has to have:
 Knowledge of the writing system of the language.
 Knowledge of the grammar and vocabulary of the language.
 Ability to interpret.
 A reason for reading.
 An appropriate method of reading.
 Knowledge of the world (experience/background knowledge).
When all these requirements are used efficiently while reading,
understanding will be effective and meaningful. Thus, reading is a skill,
which has to be acquired through constant experimentation.

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Additional Reference:
Guffey M. E. (2007). Essentials of Business Communication, 7th ed.
USA: Thomson South-Western.

Self Assessment Questions

1. Meaningful reading or reading with understanding is considered as
_______________________. (Pick the right option)
a) An active process
b) A positive strategy
c) A positive process
d) An active strategy
2. Reading for interest or pleasure is usually fulfilled through reading
________________, while reading to learn is associated with
_____________________.
3. Reading for information about what is going on in your field, but outside
your own company, is called reading for internal information.
(True/False)
4. Reading is a skill, which has to be acquired through constant
________________________.

7.3 Types of Reading

As discussed earlier, we read in different ways, depending on the purpose
for which we are reading a text. Let us discuss some of the different types
of reading. Figure 7.2 depicts the different types of reading which we will
discuss in the following sub-sections.

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Fig. 7.2: Reading Types

7.3.1 Skimming
Let us say that you are a student of management and as suggested by your
professor, you need to buy a reference text book for writing a paper on
Investment Management or Quality Management. You go to a book store
and see a rack full of books, with the same title, but different authors. You
do not have time to read the pages before deciding on buying the book.
Therefore, you quickly go through the contents, title page and the blurb. By
now, you have decided to buy one book. This type of reading that you do in
the book store is known as ’skimming’. Thus, skimming may be defined as
“looking over a text/book quickly, in order to get a general or superficial idea
of the content”. Skimming is usually done to grasp main ideas and to review
the material by skipping the details.

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Activity 1:
An exercise on skimming
Match the following business publications with the extracts given below.
 A text book on modern management.
 A travel guide for businessmen.
 A company’s monthly newsletter.
 A computer software manual.
 A company’s annual report.
 A leading business daily.
a) One of the most popular hill stations in India, Munnar is situated at
the confluence of three mountain streams - Mudrapuzha, Nallathanni
and Kundala. Located at 1600 mts. above sea level, it has an area of
26.2 sq. km., with a temperature of 15.2º-25º C in summer and 0º -
10º C during winter. The best time to visit Munnar is from September
to May.
b) Tokyo stocks drifted downwards on Tuesday, amid light trading, with
the Nikkei 225 losing 0.41 per cent to 17.760.91, as investors waited
for fresh data from Japan and the US at the end of the week.
c) To be an effective manager in today’s competitive world, you must
keep up-to-date with the latest developments in technology.
Technology is changing rapidly and the pace of innovation is
accelerating. New technologies are being developed all the time and
this puts even more pressure on managers.
d) The line, rectangle and oval tools are in Flash function, as you would
expect from using other graphic programs.
i. Click the Oval tool.
ii. Drag the work area to the right. Don’t worry about the colour or
fill.
iii. Click the white triangle at the right when you are ready to
continue.
e) We are pleased to announce the appointment of Shashank Bhat as
our new Director of Human Resources. Shashank began his career
at Nimbus, after leaving University. He has been working at the Head
Office since last year. Shashank is married and has one daughter.

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f) Towards the end of the year, we saw a slight improvement in our

market share in the United States. A more optimistic economic
situation there helped our sales to grow by just under 15% in the
second half of the year. This was partly due to some very strong
competition from other firms.

7.3.2 Scanning
Scanning is a kind of reading where the reading is done for very specific
purpose. For example, as you read a text, editorial or an article, you may
suddenly come across a word that is not familiar to you. Naturally, you
would like to know the meaning of the word, for your own benefit. So you get
the dictionary and carefully find the word. You see the spelling,
pronunciation, meaning and also the various uses of the same word (if any).
This type of careful reading to find out the specific, clear details is known as
’scanning’. In this case, you do not just run your eyes across the page, but
look into the information for specific details. Let us go through the exercise
in Activity 2, to be familiar with what scanning is all about.

Activity 2:
An exercise in scanning
Read the article and answer the questions that follow:
Simon Harris, a senior executive in the London branch of the computer
firm Samex Systems. He regularly arrives at work wearing jeans, running
shoes and a colourful pullover. His secretary, Martine, is seen dressed in
a bright yellow T-shirt and designer jeans. Samex Systems recently
decided to allow its 1,500 employees to leave their pin-stripe suits and
smart frocks in the wardrobe and to wear casual clothes to work.
Samex’s Human Resource Director, Norma Leaman is responsible for
introducing the new policy. “I travel quite a lot to the USA. Many of the
companies I visit there no longer have strict dress codes. In fact, many
employees wear practically what they like.”
Norma decided to introduce casual dress as an experiment in the
company. “We started off by allowing people to dress in a more relaxed
way once a week. Then we extended it to two days a week. Now, most
employees can wear more relaxed dress when they like.”

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There are, of course, still some rules. Dirty or untidy clothes are not
allowed. Male employees are told not to wear earrings at work. And for
some people, there is still a dress code. Sales staff do not go out on visits
wearing jeans. Overseas visitors – especially if they come from the Far
East – are not welcomed by executives in Bermuda shorts and beach
shirts.
The fashion for casual dress at work started on the west coast of the
United States. American hi-tech companies found that younger
employees were happier with a less formal style. “In the Information
Technology industry, the division between office and home is not very
important,” says consultant Luis Rodriguez. “Many people work at home
wearing the clothes they feel most relaxed in. When they are in the office,
they just don’t see the need to dress very formally.” Rodriguez has
carried out a survey on dress among 700 US companies. “We found that
about 70% of companies allowed employees to wear casual clothes on
some occasions.” There are a number of explanations for the more
relaxed modern style, according to Rodriguez. “Companies with a higher
proportion of women employees tend to be more relaxed about dress
codes.”
It is also significant that there are many younger people in positions of
power. “You now find senior managers in their early thirties or even
younger. They just don’t want to dress like their grandfather did.”
Even the most traditional companies have been caught up in the new
fashion. Take MFD Securities, a City of London investment firm. For
many years, executives had to wear white shirts, dark suits and ties.
Now they are allowed to wear more casual jackets and trousers. Jeans,
however, are not allowed. “Our customers are getting younger and
younger,” says MFD spokesperson Jan Martin. “Often they are happier
dealing with someone of their own age and background. And that means
dressing in a more informal way.”
However, not all companies are following the trend. A junior executive in
a Paris bank recently arrived at work to find four brand new white shirts
on his desk. This was his company’s way of saying that blue and yellow
striped shirts were not acceptable.

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Answer the following questions:

1. How have Samex changed their dress policy recently?
2. How was the change introduced?
3. What rules still exist in Samex?
4. What were the results of the Rodriguez survey?
5. Do all City companies have a strict dress code?
6. What experience did a French executive recently have?
(Source: Milne, J.M. (1994). Business Language Practice. Deutschland:
Hueber)

7.3.3 Extensive reading

As we have already mentioned, our way of reading is influenced by the
purpose of our reading. Most of us have the habit of reading especially
when we are free or have a lot of leisure time. We might get hold of a novel,
a comic strip or a magazine. When we read for the pure pleasure of reading,
it is known as “extensive” reading. However, it must not be given less
priority, because it is extensive reading. It is enjoyable, as well as
informative. Here, we practise rapid reading to get a global/overall
understanding of the matter.

Activity 3:
Read the passage given below and try to insert words in the blanks. The
words that you choose should be contextual.
In a successful negotiation, no one should feel that they have lost. You
should reach a win- __1___ solution. After one side makes a proposal,
the other should make a 2___ -offer. If both sides make 3_ you can
work towards a compromise. By making a goodwill ___4___ you may get
something from the other side. It is this __5__ -trading that moves the
negotiations along. If you are not prepared to make a 6_ -off, there is a
chance that the talks will break down.”
1. a) lose b) draw c) win
2. a) counter b) condition c) consensus
3. a) priorities b) objectives c) concessions
4. a) gesture b) mannerism c) etiquette
5. a) bull b) horse c) bear
6. a) business b) work c) trade

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(Note: Now see the possible answers and try to check whether you have
selected the appropriate words. This exercise proves that you can
understand the overall meaning of the passage, even if some words are
missing.)

7.3.4 Intensive reading

When we read shorter texts like a research paper for getting specific details
or information, we read slowly with a lot of concentration. This is known as
intensive reading. Intensive reading includes reading accurately to extract
specific information. You can use intensive reading to understand each
word, number or fact. For example, you do intensive reading when reading a
bookkeeping report, an insurance claim, a contract etc.

Activity 4:
Read the following paragraph. At the end of each sentence, you will find
the letters M (main idea) and S (supporting detail). Identify in each case,
whether it is M or S and tick the correct letter.
The moon's gravity pulls the earth's oceans towards it, as it moves
around the earth. (M/S). Then it lets them go again. (M/S) These
movements of the oceans are the tides. (M/S) The sun also affects the
tides. (M/S) At the seaside, you can see that sometimes the sea covers
the beach completely. (M/S) These are called high tides. (M/S) At other
times, the water goes back, leaving the shore uncovered. (M/S) These
are called low tides (M/S) Most seaside places have two high tides and
two low tides every day. (M/S)

Activity 5:
Read the following passage and underline the main ideas.
Generally, Knowledge Management (KM) represents the organisational
processes that aim for synchronous coalition of data. It also aims at
information processing capacity of information technologies and the
ingenious capacity of human beings.
In simpler terms, KM strives to make the most out of the knowledge that
is available to an organisation, generating understanding, incrementing
awareness and knowledge in the process.

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KM is an evolving discipline. Knowledge transfer (an aspect of KM) has

always existed in one form or another. It has been done formally through
apprenticeship, the maintenance of corporate libraries, professional
training and mentoring programs. Since the late twentieth century, it is
being done technologically through knowledge bases, expert systems
and other knowledge repositories.
KM programmes claim to consciously evaluate and manage the process
of accumulation, creation and application of knowledge which is also
referred to by some as ‘intellectual capital’. KM has therefore attempted
to bring under one rubric, various strands of thought and practice relating
to intellectual capital in the economy, the idea of the learning
organisation, various enabling organisational practices and various
enabling technologies.
KM may be viewed from different perspectives. Techno-centric view
focuses on technologies, ideally those that enhance knowledge sharing
and growth, frequently any technology that does fancy stuff with
information. Theoretical view concentrates on the underlying concepts of
knowledge and truth. People view engages on bringing people together
and helping them exchange knowledge. Process view endeavours on the
processes of knowledge creation, transmission, transformation and
others.
KM programmes are typically tied to specific organisational objectives.
The KM programmes are also intended to lead to the achievement of
specific targeted results such as improved performance, competitive
advantage or higher levels of innovation.
Organisations must undertake KM programmes. In doing so, they would
gain competitive advantage that comes with improved or faster learning
and new knowledge creation. KM programmes may lead to greater
innovation, better customer experiences, consistency in good practices
and knowledge access across a global organisation, as well as many
other benefits.
(Source: http://knowledge-management.bestmanagementarticles.com)

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Activity 6:
Write a paragraph on "The Significance of Knowledge Management",
using only the main ideas you have identified in Activity 5.

7.3.5 Loud and silent reading

Most of our day-to-day reading is done silently. When we read an article or
advertisement, we are engaged in the process of deriving meaning from the
passage. Actually when we read aloud, our concentration is divided
between reading and speaking. This makes reading difficult and may cause
problems in understanding the matter. However, there are situations when
we may have to read things aloud when others do not have access to
them – for example, notices and circulars. We need to read the instructions
aloud to students or employees, so that there is no confusion later. Apart
from these extraordinary situations, most of the time the natural way of
reading is silent reading, which is ideal and helps comprehension.

Additional Reference:
Marshall C. C. (2009). Reading and Writing the Electronic Book. USA:
Morgan & Claypool Publishers.

Self Assessment Questions

5. What is defined as “looking over a text/book quickly, in order to get a
general or superficial idea of the content"? (Pick the right option)
a) Scanning
b) Extensive reading
c) Skimming
d) Intensive reading
6. Scanning is a kind of reading where the reading is done for very
specific purpose. (True/False)
7. In which type of reading do we practise rapid reading to get a
global/overall understanding of the matter?
8. Natural way of reading is ___________________, which is ideal and
helps comprehension.

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7.4 SQ3R Technique of Reading

SQ3R technique of reading was developed by Robinson in his book
"Effective Study" (1970). SQ3R stands for the initial letters of the five steps
shown in the table 7.1.
Table 7.1: Steps of SQ3R
Steps Expansion Abbreviation
Step 1 Survey S
Step 2 Question Q
Step 3 Read R
Step 4 Recall R
Step 5 Review R

Let us briefly go through these steps in the given order mentioned in

table 7.1.
1. Survey – Survey refers to a quick glance through the title page, preface
and chapter headings of a text. By surveying, you will be able to gauge the
main ideas of the text. Besides, the author’s name, date, place of publication
and title page can give you an idea of the general subject area. The table of
contents, preface or foreword in a book would give you an idea of the
themes and how they are organised. A survey of the index or bibliography
tells you immediately whether the book contains what you need.

For example, choose the appropriate reference by a quick survey:

Here is a bibliography (list of books) on Total Quality Management.
Decide which of the publications in the list are likely to give you: (encircle
the appropriate letter)
A brief introduction to the subject abcdef
Current developments in the field abcdef
Historical study of the subject abcdef
Various opinions by experts on the subject a b c d e f
Bibliography
a) Winston, B.E. (1997). Total Quality Management. Regent University.
b) International Encyclopaedia of Business and Management.
c) Encyclopaedia Britannica.

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d) Creech, B. (1995).The Five Pillars of TQM: How to Make Total

Quality Management Work for You. New York: Truman Talley
Books/Plume.
e) Kume, H. (2009). Management by Quality, 2nd Ed. Madras:
Productivity and Quality Publishing Pvt. Ltd.
f) Journal: Total Quality Management & Business Excellence. London:
Taylor and Francis Group.

2. Question – The second step in the SQ3R technique of reading is

’question’. A survey of the text will surely raise a few questions in your mind
regarding the text. Some of the questions could be:
 Is the book useful or relevant to my study?
 Does it provide some guidelines/information on the subject at hand?
However, as you go through the individual chapters, you might have specific
questions regarding the topic. This will surely help you to gain some insights
into the text, topic and the author's comments. You will be surprised to see
how your questions are answered in the process of reading and
understanding the text. Therefore, don't treat reading as an automatic
process. It has to be conscious and deliberate, with a definite purpose,
where you interact with the topic and the author.
3. Reading – After surveying and questioning, you begin the actual reading.
You need to develop a critical approach to reading anything for that matter.
Read the text over and over again, each time with a different question and a
different purpose in mind. "I read it once and understand everything" kind of
attitude is nothing but a myth. Hence, while reading for the first time, you
must just focus on the main points or ideas and supporting details. Make a
note of the important points that you have read.
4. Recall – Recalling or reciting follows reading level. In this level, the
reader recalls or recites the content after reading some portion of text. This
is done by checking and amending notes. This is done because every
reading exercise increases your background knowledge and you must be
able to connect the information gained with the existing knowledge. Thus,
recalling whatever you have read enables you to connect and relate the
content with the previous and future learning of the subject. You can recite
aloud, silently or by writing down the key points that sums up the major

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points. It is a good practise to put across the points in your own words when
you recall.
5. Review – Reviewing is the process of checking whether we have
followed the earlier stages promptly and efficiently. Have we surveyed the
book, article or magazine properly? Have we asked the appropriate
questions relating to the content? Have we read it critically and have we
recalled the most significant details or information required for our study?
These are questions that must be asked in the final stage of reading.
Review will sharpen your critical ability, enable you to form your own
opinions on the topic and express them to others.
Try to practise these stages consciously in your reading and research and
you will find this to be a highly rewarding experience.

Self Assessment Questions

9. A survey of the _____________ or ___________________ tells you
immediately whether the book contains what you need.
10. While reading for the first time, you must just focus on the main points
or ideas and supporting details. (True/False)
11. What will sharpen your critical ability, enable you to form your own
opinions on the topic and express them to others? (Pick the right
option)
a) Reading
b) Recall
c) Survey
d) Review

7.5 Summary
Let us recapitulate the important concepts discussed in this unit:
 Reading is defined as "thinking under the stimulus of the printed page”
or "psycho-linguistic guessing game”.
 Reading can happen for obtaining both internal and external information.
 When you need to continue learning and studying, so that you develop
your own thinking and skills, you read professionally.

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 Reading can be classified into following types:

o Skimming
o Scanning
o Extensive reading
o Intensive reading
o Loud and silent reading
 Robinson developed SQ3R technique and published it in his book
"Effective Study".
 The following are the five steps of SQ3R technique:
1. Survey
2. Question
3. Read
4. Recall
5. Review

7.6 Glossary
Apprenticeship: A system of training a new generation of practitioners of a
skill.
Bibliography: The history, identification or description of writings or
publications.
Blurb: A short piece of writing on the cover of a book that reviews and
promotes the book.
Gauge: A measurement (as of linear dimension) according to some
standard or system.
Rubric: An assessment tool for communicating expectations of quality.

7.7 Terminal Questions

1. Define reading.
2. Explain the purpose of reading.
3. Explain skimming and scanning.
4. What are extensive and intensive readings?
5. Explain the five steps of SQ3R techniques of reading.

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7.8 Answers

Self Assessment Questions

1. An active process
2. Fiction, Informative articles
3. False. Reading for information about what is going on in your field, but
outside your own company, is called reading for external information.
4. Experimentation
5. Skimming
6. True
7. Extensive reading
8. Silent reading
9. Index, Bibliography
10. True
11. Review
Terminal Questions
1. Webster defines reading as "thinking under stimulus of printed page"
and Francoise Grellet defines reading as "understanding a written text.
Understanding a written text is extracting the required information from
it as efficiently as possible". For more details, refer section 7.2.
2. Usually one reads either for interest, pleasure or to acquire information
and knowledge. Information can be obtained from various sources such
as newspaper, letters, e-mails, articles etc. The purpose of reading
depends on the kind of information and requirement. For more details,
refer sub-section 7.2.1.
3. When you read to grasp main ideas and to review the material it is
called skimming. Scanning is a kind of reading where you read for very
specific purpose or to know specific information. For more details, refer
sub-sections 7.3.1 and 7.3.2.
4. Extensive reading happens when the reader reads for the pure
pleasure of reading, but intensive reading happens when the reader
seeks specific details or information. For more details, refer sub-
sections 7.3.3 and 7.3.4.
5. SQ3R techniques of reading was developed by Robinson. The five
steps of SQ3R techniques of reading are: survey, question, read, recall
and review. For more details, refer section 7.4.
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7.9 Case Study

Study on Thai IT Managers

Department of English, Faculty of Humanities, University of the Thai
Chamber of Commerce, Bangkok, Thailand conducted a study on business
communication skills. They examined 257 Thai IT managers. The study
analysed the perspectives of the managers on the importance of English
business communication skill types. The study was also aimed at finding
whether the training that they attended was in compliance with the
requirements.
Study findings
According to the study results the Thai IT managers considered reading as
the most important skill, followed by listening, speaking and writing
respectively. This is due to a reason that they have to read a large amount
of material such as websites, news, professional articles, proposals and
manuals, in order to update themselves about the current information and
knowledge in the IT field. They also had to inform updates in technology to
clients to help them enhance their function.
However, these findings were not in compliance with other similar studies
like Lee and Hatesolh's study, as this study ranked listening as the most
important skill followed by speaking, reading and writing respectively.
The study also found that the top five reading types of Thai IT managers
are e-mail, manuals, IT articles, instructions and letters. Reading and
writing e-mails were ranked as the most important activities performed by
managers.

Conclusion
The findings of the study proved the fact that managers are trained
primarily to improve listening and speaking skills as it is considered as the
most important communication in the workplace. Significantly, very less
training is provided for improving writing and reading as employers think
writing and reading are higher-level skills that require more time to improve
and have higher training costs. The study stresses that a change is
required in the attitude of the IT industry towards reading and writing skills.

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Discussion Questions:
1. What were the findings of the study?
(Hint: Refer to section Study Findings in the Case Study)
2. What are the final conclusions of the study?
(Hint: Refer to section Conclusion in the Case Study)
(Source: Pradubpongse, S. Essential English Business Communication
Skills: A Study of Thai IT Managers. Bangkok: University of the Thai
Chamber of Commerce)

References:
 Milne, J.M. (1994). Business Language Practice. Deutschland: Hueber.
 Pradubpongse, S. Essential English Business Communication Skills: A
Study of Thai IT Managers. Bangkok: University of the Thai Chamber of
Commerce.
 Robinson, F. P. (1970). Effective Study. U.S. A: Harper & Row.
E-References:
 http://knowledge-management.bestmanagementarticles.com/
– Retrieved on 16 Jan 2012.
 http://www.enotes.com/business-finance-encyclopedia/reading-skills-
business – Retrieved on 16 Jan 2012.

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Unit 8 Internal Business Communication

Guidelines for Meetings

Structure:
8.1 Introduction
Objectives
8.2 Types of Meetings
8.3 Before the Meeting
8.4 During the Meeting
Meeting etiquette
After the meeting
8.5 Summary
8.6 Glossary
8.7 Terminal Questions
8.8 Answers
8.9 Case Study

8.1 Introduction
In the previous unit we learnt what is reading and its types. We also studied
the SQ3R technique of reading. Communication skills such as reading,
writing and listening play a key role in business meetings. Irrespective of the
size of the organisation or the job designation, business meetings are a part
and parcel of the everyday work routine. It is important to understand how to
plan, conduct and participate in meetings, so that they produce good results.
In this unit, we will examine meetings both from the perspective of the
participant, as well as from that of the person chairing the meeting.

Forbes Insights survey revealed that 58% of respondents said they were
travelling for business less today, than they were at the beginning of the
recession in January 2008, with more than a third (34%) indicating that
they were travelling much less frequently.
At the same time, companies have turned to technology to provide an
alternative to face-to-face meetings. Lower costs and greater reliability
have made teleconferences, video-conferences and web-conferences
more pervasive options for meetings. It’s no wonder, then, that 59% of

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executives said their use of technology-driven meetings had increased

during the recession.
Still, executives expressed an overwhelming preference for face-to-face
meetings. More than eight out of ten said that they like in-person contact
more than virtual. Those that prefer face-to-face meetings cited how they
build stronger, more meaningful relationships (85%), the ability to “read”
another person (77%), and greater social interaction (75%). Those who
favoured virtual meetings took more of a bottom-line approach, and were
of an opinion that virtual meetings saved them time (92%) and money
(88%), or offered greater location flexibility (76%). “The art of negotiation
takes the kind of nuance that is only present in an in-person meeting,”
noted Dan L’Ecuyer, vice president of sales and marketing at CSP
Technologies, a developer of packaging solutions. “I don’t think you can
really get at strategies without face-to-face time.” Figure 8.1 depicts the
survey report conducted by Forbes.

Fig. 8.1: Forbes Survey Report

As shown in figure 8.1, 40% of executives prefer face-to face or in-person

meeting, 6% preferred an even balance between in-person and
technology-enabled meetings and 54% prefer technology-enabled
meetings.
(Source: http://www.buenavistapalace.com/pdfs/FacetoFace_Forbes.pdf)

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This unit helps you to answer the following questions:

What are the different types of meetings?
What is the role of a chairperson during a meeting?
In this unit you will learn the various types of meeting and how meetings are
conducted. You will also learn the importance of follow-up after meeting and
the etiquette that one has to follow during a meeting.
Objectives:
After studying this unit, you should be able to:
 list the different types of meetings
 prepare effectively for meetings
 explain the responsibilities of a chairperson
 realise the etiquette to follow in a meeting
 describe the steps to follow up participants’ progress

8.2 Types of Meetings

According to Deborah Tannen, “A meeting is any focused conversation that
has a specific agenda, especially but not only if it has been set up in
advance.”1 This definition implies that meetings are not aimless discussions,
but they require careful planning and revolve around a specific topic that is
decided in advance. Therefore, while meetings may be more or less formal
in the way they are conducted, they need to be planned, irrespective of the
nature of the meeting.
At the outset, let us discuss the different categories of business meetings:
1. Task oriented meetings
As the name suggests, this type of meeting is a special meeting that is
called to discuss and make arrangements for a specific event.
For example, the company is opening a new branch or new factory, which
will be inaugurated by a minister on a specific date. All the key people
involved may be asked to attend the meeting, to discuss the arrangements
that are being made for the inauguration. Specific tasks are assigned to
each of the participants of the meeting.

1 http://businessnbasics.com/page/9/
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2. Progress meetings
These are periodic meetings that are called to review the progress being
made on a particular front.
For example, weekly meetings may be held to review sales progress or if a
new project has been initiated, periodic meetings may be held to review the
progress of different stages of the project.
3. Information sharing meetings
In some organisations these types of meetings may be called regularly for
the main purpose of exchanging information on a topic of relevance to the
organisation. Such meetings may take place among co-workers or may also
involve top management.
For example:
 The Managing Director of a company may call his senior managers to
share information about the company’s joint ventures, overseas
collaborations or plans for acquisition.
 A weekly meeting of top executives may be held to discuss the activities
of the company’s international divisions.
 The members of the Research and Development (R & D) department
may meet regularly to compare notes on the results of their research
efforts.
4. Problem solving or decision making meetings
This type of meeting is the most challenging, as it involves taking some kind
of action, making major decisions or changing the existing policies and
procedures. Therefore, all interests and departments of the organisation are
represented at such meetings. They also tend to be time consuming.
For example, the marketing strategy of the company may need to be
revised, as sales are on the decline or a new product is to be launched and
a meeting may be called to discuss the launch strategy.
As problem solving meetings are the most complicated type of meetings, the
guidelines offered in this unit are more relevant to these meetings.

8.3 Before the Meeting

As pointed out earlier, meetings need to be planned in advance, so that they
are successful. Before any planning can be done a basic question to be

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asked is whether to hold a meeting at all. Finding answers to the following

questions would help you to decide whether a meeting is necessary in the
first place:
 Can the matter be decided or discussed over the telephone?
 Can the matter be expressed in writing, in the form of a memo or an
email message?
 Are key people available to attend the meeting and are they prepared?
 Is the time allotted for the meeting sufficient?
If the answers to the first two questions are yes and the answers to the other
two questions are no, there is no purpose in calling a meeting.
Once the need for a meeting has been determined, the next step is to start
planning for the meeting. First of all, the meeting type and number of
participants must be decided. For example, a problem solving meeting must
include representatives from all departments, as the decision would
otherwise be incomplete. Shareholders, who are the owners of the
company, must also be included. In terms of numbers, the size of the group
could be anywhere between seven and eleven members. An exception to
this is an information sharing meeting, where the numbers could be larger,
so that a maximum number of people benefit from the information.
The second and most important step in planning a meeting is to indicate the
‘purpose’ or ‘agenda’ of the meeting to the participants in advance. An
agenda is essentially “a list of topics that will be discussed during a
meeting”. “An agenda is an ordered sequence of items to be discussed in a
formal meeting. The objectives of an agenda include to familiarise
participants with the topics to be discussed and issues to be raised, indicate
what prior knowledge would be expected from the participants and indicate
what outcome the participants may expect from the meeting.” 2
Agenda for a meeting is prepared by the chairperson of the meeting or the
person who calls the meeting. Apart from a list of topics, a comprehensive
agenda must also include the following:
1. Time, venue and duration of the meeting – The starting time and the
length of the meeting need to be indicated, so that participants know

2 http://www.businessdictionary.com/definition/agenda.html
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how much to prepare for the meeting and can plan their other activities
accordingly.
2. List of participants – It is important to let all members know who will be
attending the meeting, so that they know who all is attending the
meeting.
3. Background information – This could be in the form of new
information, repetition of facts as a reminder or a brief explanation of the
importance of the meeting.
4. Clear list of items and goals – These must be included in order to
ensure that the meeting has an outcome. Participants need to have a
clear idea of their role in the meeting. Goals must be stated so that they
sound specific, result-oriented and realistic.
For example, if Sam is participating in the meeting mention in the
agenda that “Sam will explain the advantages and disadvantages of
switching to a new supplier, so that we can take a final decision on this”.
A goal stated like this helps participants to prepare adequately for the
meeting. Goals may be set by the person who calls the meeting or in
consultation with the participants.
5. Advance preparation by participants – A good agenda tells
participants how to come prepared for the meeting for example, by
reading an article, bringing important documents, collecting facts or
jotting down their ideas on a particular issue. In case certain members
have to prepare in a specific way, this can be mentioned on their
individual copy of the agenda.
In general, the items to be discussed are listed in the descending order
of priority in the agenda i.e., from the most important to the least
important item. Sometimes, the simple issues may be listed first and
then the more complicated issues. Figure 8.2 depicts a sample format
for comprehensive agenda.

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Fig. 8.2: Comprehensive Agenda Sample

(Source: Adapted from http://www.iapa.ca/pdf/JHSC MEETING AGENDA
FORM.pdf)

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Additional Reference:
Doyle, M., & Straus, D. (1993). How to Make Meetings Work!: The New
Interaction Method. USA: Berkley Books.

Self Assessment Questions

1. A special meeting that is called to discuss and make arrangements for
a specific event is known as ___________________________. (Pick
the right option)
a) Information sharing meetings
b) Task oriented meetings
c) Decision making meetings
d) Progress meetings
2. Information sharing meetings may take place among co-workers or
may also involve top management. (True/False)
3. A basic question to be asked before planning any meeting is where to
hold the meeting. (True/False)
4. Once the need for a meeting has been determined, the next step is to
____________________ for the meeting.
5. The items to be discussed are listed in the ____________________
order of priority in the agenda. (Pick the right option)
a) Ascending
b) Alphabetical
c) Descending
d) Chronological

8.4 During the Meeting

The task of conducting and moderating the meeting rests with the
chairperson. Figure 8.3 depicts the various responsibilities of a chairperson
that he/she has to manage efficiently, while he/she conducts a meeting.

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Fig. 8.3: Chairperson’s Responsibilities

We shall discuss each of these procedures in detail.

1. Opening the meeting – The manner in which the meeting is opened is
important, as a good opening will ensure that the rest of the meeting
proceeds smoothly. Generally, when you open a meeting it is a best practice
to sum up what has been stated in the agenda - including the goals,
background information and expectations of the participants. It is also a
good idea to provide an outline of how the meeting will proceed, as well as
schedule of the meeting.
For example, chairperson opens the meeting by addressing the participants
saying, “we will begin the meeting with a ten minute presentation by Pat on
new office equipment, followed by a fifteen minute presentation by Chris on
office decoration. The last twenty minutes will be reserved for brainstorming
among the group for creative ideas for the advertising campaign.”

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2. Encouraging balanced participation – It is also the responsibility of the

chairperson to encourage silent members to contribute to the meeting and
to moderate the dominant members. This is to ensure that everyone gets
equal opportunity to express their ideas in the meeting. There are several
techniques to encourage participation, they are as follows:
 Encourage participation in the reverse order of seniority – This
means getting the junior members to speak or voice their opinions first.
This is because, if the seniors speak first, the juniors may feel
suppressed or be afraid to disagree with their seniors.
 Nominal group technique – In this method, the meeting participants
are encouraged to work and contribute their ideas independently. It
consists of five different stages, they are:
i) Each participant is asked to put down his or her ideas on paper.
These are then collected by the chairperson or discussion leader.
ii) All the ideas are then written down on a chalkboard, so that
everyone can view all the ideas, without knowing who has
contributed a particular idea. This makes the method unbiased.
iii) All the ideas are then discussed openly by all participants. The
purpose here is to understand the ideas and not to judge them.
iv) The ideas are then rank ordered by all participants, from the best to
the least promising idea.
v) The ideas that are ranked highest by a majority of the participants
are then discussed critically and a decision is made collectively on
the best idea.
The above method is more suitable for decision making meetings involving
important issues. As the process is anonymous, there is less room for
conflict and more freedom to air one’s ideas.
 Encourage participation in turns – In this method the chairperson
goes around in turns, to make sure that each member contributes to the
meeting. This is a good way to break the initial silence and start off a
meeting.
 Use ‘overhead questions’ – These are questions that are addressed to
the entire group and which may be answered by anyone in the group.
For example, the chairperson asks all the participants, “can anyone explain
the reason for the sales decline?”

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This method is good, as long as all members participate equally.

 Use ‘direct questions’ – These are questions that are addressed to
individual members. The idea is to get quiet members to speak out.
For example, the chairperson asks Sam, “What is your opinion on this
issue, Sam?”
Direct questions must be used tactfully, as these questions tend to
create a “classroom atmosphere”, which may be resented by the
meeting participants.
 Use ‘relay questions’ – This is similar to an overhead question. When a
member asks the chairperson a question, the chairperson refers it to the
entire group, to encourage participation.
For example, the chairperson tells the participants, “Pat has a
suggestion. What do you think of it?”
This type of question is particularly useful when the chairperson does
not want to give his or her own opinion and influence the group.
3. Managing time – Usually, there is no prescribed duration for a meeting.
The duration of a meeting depends on the type and purpose of the meeting.
Generally, problem-solving meetings will take longer than other routine
meetings. In any case, the chairperson must set a time limit for the meeting,
depending on the agenda and ensure adherence to the time limit.
4. Keeping the meeting focused – Often, a lot of time is wasted during
meetings by going off track and by discussing topics that are irrelevant. In
such situations, it is the responsibility of the chairperson or the person
moderating the discussion to make sure that the discussion remains
focused on the topics mentioned in the agenda. Some of the techniques that
could be used to do this are:
 Reminding members about the time constraints – When members
dwell on a topic for too long or engage in irrelevant discussions, the
chairperson must intervene to remind members that time is running out
and request them to proceed to the next item.
 Summarising and moving on – Even though an item on the agenda
has been fully discussed, the discussion rambles on, the chairperson
must quickly summarise the ideas, acknowledge the contributions and
mention the next item to be discussed.

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For example, the chairperson addresses the participants saying, “I think we

have generated a sufficient number of excellent, creative ideas for the
advertising campaign. Maybe we must move on to discuss the media plan.”
 Postponing discussion of irrelevant ideas – Sometimes, participants
may waste time by coming up with ideas that are not relevant to the
topic being discussed. In such case, the chairperson must be firm but
polite in postponing it by appreciating the idea and promising to discuss
it after the meeting.
5. Ensuring ‘convergence’ – Convergence means hearing the points of
view of all the members and then arriving at a decision. It is again the
responsibility of the chairperson to bring the meeting to a point where an
opinion emerges on each item of the agenda.
6. Summing up – This means summing up the different points of view,
decisions and actions to be taken. This must be done by the chairperson.
The chairperson has to identify the role of each person in achieving each
item of the agenda, along with a deadline mentioned.
For example, chairperson informs Chris that he/she will take the
responsibility of contacting the media and sending material for
advertisements and press releases by March 13th.
7. Concluding the meeting – The way a meeting is concluded is as
important as the opening, as it will influence the follow-up action taken on
decisions made during the meeting. The chairperson must know when and
how to conclude the meeting.
The meeting must normally be concluded at the scheduled closing time,
unless important issues still remain to be discussed and members are
willing to extend the meeting. Sometime meetings may be concluded before
the closing time, when key decision makers are not present or when
important information such as cost figures are not available.
There are different ways of concluding a meeting. One way is to signal and
indicate how much time is remaining, so that the group can wrap up the
discussions. Another way is to summarise what has been discussed and
decided and to mention the follow-up action to be taken. The role and
responsibility of each member can also be mentioned, so that everyone is
clear about what is to be done after the meeting. An important point to be

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remembered is to retain the goodwill of the participants, by thanking them

for their contributions. Members who have made significant contributions
must be acknowledged individually.
For example, the chairperson addresses the meeting saying, “I must thank
all of you for coming up with so many wonderful ideas for making this
meeting a success. A special thanks to Chris for negotiating and getting a
good deal on the office equipment and to Sam for the excellent design of the
new office floor plan.”
8. Keeping ‘minutes’ of the meeting – As meetings are called to take
important decisions concerning the organisation, it is important to maintain a
permanent written record of the proceedings, which can be referred to at a
later stage or can serve as a guide for action. Such a record is known as
‘minutes’ of the meeting and may be done in an informal or formal manner,
depending on the type of meeting.
In the case of routine meetings, minutes are written in an informal manner,
in the form of a broad summary of the proceedings. On the other hand,
minutes for more formal meetings such as board and shareholder meetings
are written in a specific format, recording the names and views of the
different participants. The minutes may be recorded by any one of the
meeting participants. A sample format of minutes for formal meetings is
shown in table 8.1.
Table 8.1: Sample Format of Minutes for Meeting

Minutes for Meeting

Jackson & Bros Pvt. Ltd.
BOARD MEETING – 18 June 2010
Meeting was called to order at 7:00 p.m. at the management office
meeting room. Quorum was established.
Attendees Present:
 Bob Leader, President
 Jim Writer, Secretary
 Connie Candue, Vice President
 Betsy Spender, Treasurer
 Association Attorney, Lazega & Johanson LLC
 Riley Reliable, Association Manager

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Absent:
Norton Noshow, member, excused
Approval of Minutes:
 Motion – To approve Minutes from June 1st Board meeting
 Vote – Unanimous approval
 Resolved – The minutes of the January 9, 2005 meeting are
approved as corrected and entered into the Association records.
Reports:
 Treasurer's report given by Betsy Spender.
 Management report given by Riley Reliable. Written reports presented
and maintained in Association’s records.
 Collections report given by attorney Lazega & Johanson attorney.

Business:
 Motion – Hire Pool R Us to resurface pool for $26,000.
 Vote – Motion Disapproved - One in Favour, two opposed, one
abstaining.
 Motion – Have Riley Reliable contact Lazega & Johanson to amend
the association to restrict leasing in the community.
 Vote – Motion Approved Unanimously.
 Resolved – That the Association contact Lazega & Johanson to
amend the association to restrict leasing in the community.
 Motion – Accept Lovely Landscaping Company's written proposal
(maintained in the Association's records) to maintain the Association’s
common property, subject to the Association attorney's review of the
contract.
 Vote – Motion approved - three in favour, one opposed. Discussion of
recognition that Lovely Landscaping was the highest bidder, but the
consensus is that a good history with Lovely Landscaping justifies
renewing the contract.
 Resolved – That the Association accepts Lovely Landscaping written
proposal to maintain the Association’s common property, subject to
the Association attorney's review of contract.
Meeting adjourned at 8:30 p.m
(Source: Adapted from http://www.condoandhoalaw.com/
Documents/Sample%20Meeting%20Minutes.pdf)

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8.4.1 Meeting etiquette

So far, we have learnt how meetings must be conducted from a
chairperson’s perspective. We will now look at how participants of a meeting
must conduct themselves during a meeting. There is a meeting ‘etiquette’ or
code of conduct that needs to be followed by participants. They are:
 Be brief and to the point – It is important to focus on the topic
mentioned in the agenda and to remember that there is a time limit for
the meeting. Do not dominate a meeting by speaking more than what is
necessary and do not engage in irrelevant discussions.
 Do not say something for the sake of it – Participation in a meeting
does not mean just saying something, you must know whether what you
are saying is relevant or not.
 Contribute to add value – Adding value may be done by expressing a
new idea, through constructive disagreement for example, “why not do it
this way instead?”, by endorsing another person’s opinion for example,
“I agree with you” or by seeking clarification for example, “Can you
explain that again?”.
 Give credit where it is due – It is good meeting etiquette to appreciate
someone else’s idea, if you think it is good.
 Keep an open mind to facilitate convergence – Don’t impose your
own ideas on others. Give others a chance to express their ideas, so
that different viewpoints emerge on a single issue.
 Do not interrupt – If you wish to say something always signal this by
raising your hand politely at a suitable juncture.
 Always address the chairperson – Avoid “bi-lateral talks” and “mini
meetings” or discussions with other participants, as well as speaking in
another language. Address your questions to the chairperson.
 Use tools and technology with care – As mentioned earlier, meetings
today can be non-face-to-face, thanks to technological advances. When
using facilities such as internal messaging, teleconferencing and video-
conferencing remember to be brief and to avoid using the tool for its own
sake.

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8.4.2 After the meeting

A meeting that proceeds smoothly will still not be successful, unless proper
follow-up measures are taken to ensure that the goals are fully
accomplished. Follow-up may involve the following steps:
1. Plan for the next meeting – Usually, very few meetings are conclusive
and cover all the items in the agenda completely. It is the chairperson’s
responsibility to make a note of the items that have not been discussed and
to schedule the next meeting, along with fresh agendas. All participants
must be informed that a follow-up meeting is being planned.
2. Check progress on follow-up actions – Members of the meeting may
have been assigned different tasks and deadlines for completing them.
Therefore, it is important to monitor their progress every now and then, after
the meeting is over. This is to ensure that the deadlines are met.
3. Do your own groundwork – Apart from monitoring the progress of
meeting participants, it is also important that you as the chairperson finishes
any pending work before the next meeting.

Common mistakes made at meetings

Since meetings are prone to so many inconsistencies, it would be relevant
to round off this unit with a list of common mistakes to avoid, both from a
chairperson’s as well as a participant’s perspective.
 Lack of structure – Meetings must be structured in terms of an
agenda being sent to participants in advance, the discussion being
initiated by a specific person and the chairperson ensuring that
different points of view emerge. A loosely structured meeting will not
be successful.
 Lack of goals or agenda – It was pointed out earlier that a meeting
without an agenda lacks direction.
 Lack of pre-meeting orientation – This is the job of the chairperson.
Members must be briefed on how to prepare for the meeting before
the meeting itself.
 Inadequate preparation – This is a mistake made by participants. As
they fail to prepare for the meeting and attend the meeting without
preparation.

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 Not focusing on the subject – This is a common mistake made by

participants who discuss matters that are not relevant to the meeting.
 Long meetings – The chairperson must try to avoid this, by ensuring
adherence to the time limit.
 Disorganised meetings – Again, this is the chairperson’s
responsibility to see that the meeting is well organised.
 Inconclusive meetings – The chairperson must hear out all the
points of view and then arrive at a decision.
 Ineffective leadership – This is the fault of the chairperson, if the
chairperson fails to give direction to the meeting, then the meeting will
turn out to be ineffective.
 Time wasted – Participants may engage in unrelated discussions and
the chairperson may be inefficient at managing time.
 Dominate the discussion – A few members may speak all the time,
while others remain silent. This happens when few participants
dominate others during the meeting.
 Lack of follow-up action – The meeting may proceed satisfactorily,
but nothing is done after the meeting either by the chairperson or the
participants, to ensure that the meeting goals are accomplished. This
indicates the lack of follow-up by chairperson and also by the
participants.

Activity 1:
Talk to a few people working in an area of your interest to find out the
importance attached to meetings at their workplace. Try to get answers to
the following questions:
a) How often are meetings held?
b) What is the duration of the meetings?
c) What kinds of topics are covered during the meetings?
d) Are the meetings effective?
(Refer section 8.4 for detailed guidelines.)

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Additional Reference:
Henkel, S.L. (2007). Successful Meetings: How to Plan, Prepare, and
Execute Top-notch Business Meetings. Florida: Atlantic Publishing
Company.

Self Assessment Questions

6. While opening the meeting it is a good idea to provide an outline of how
the meeting must proceed, as well as the timeline. (True/False)
7. If the chairperson refers the question to the entire group, to encourage
participation then the question is known as? (Pick the right option)
a) Direct question
a) Relay question
b) Overhead question
c) Reminder question
8. Members who have made significant contributions during the meeting
must be ___________________________________.
9. It is always a good practice to address the chairperson and avoid
___________________ and ________________________.
10. It is important for the chairperson to monitor the progress of the
meeting participants before the next meeting to ensure that the
deadlines are met. (True/False)

8.5 Summary
Let us recapitulate the important concepts discussed in this unit:
 Meetings are carefully planned conversations that have a specific
agenda.
 Business meetings can be classified as:
o Task oriented meetings
o Information sharing meetings
o Progress meetings
o Problem solving or decision making meetings
 One has to decide whether it is necessary to have a meeting and then
start planning for it.

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 It is very important to inform the agenda of the meeting to the

participants before the meeting.
 A comprehensive agenda must include:
o Time, venue and duration of the meeting
o List of participants
o Background information
o Clear list of items and goals
o Advance preparation by participants
 During the meeting the chairperson must open the meeting, encourage
balanced participation, manage time, keep the meeting focused, ensure
convergence, conclude the meeting and keep 'minutes' of the meeting.
 The steps involved in meeting follow-up are:
o Plan for the next meeting
o Check progress on follow-up actions
o Do your own groundwork

8.6 Glossary
Bi-lateral talks: Talk between two parties or people.
Juncture: Point in time when a critical decision must be made.
Rambles: To stroll about freely with no particular direction.

8.7 Terminal Questions

1. Explain the different types of meetings.
2. What topics are you going to include in your comprehensive agenda?
3. Write a note on the responsibilities of chairperson during a meeting.
4. List the meeting etiquette that you have to follow when you participate
in a meeting.
5. Explain the steps to follow-up a meeting.

8.8 Answers

Self Assessment Questions

1. b) Task oriented meetings
2. True

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3. False. A basic question to be asked before planning any meeting is

whether to hold a meeting at all.
4. Start planning
5. c) Descending
6. True
7. b) Relay question
8. Acknowledged individually
9. Bi-lateral talks, mini meetings
10. False. It is important to monitor their progress of the meeting
participants every now and then, after the meeting is over to ensure
that the deadlines are met.
Terminal Questions
1. Business meetings can be classified as task oriented meetings,
information sharing meetings, progress meetings and decision making
meetings. For more details, refer section 8.2.
2. Meeting agenda helps the participants to come prepared for the
meeting. Some of the important topics that a meeting agenda includes
are time, venue and duration of the meeting, list of participants,
background information, clear list of items and goals, and advance
preparation by participants. For more details, refer section 8.3.
3. The chairperson role is very crucial during a meeting. He must be well
versed in opening the meeting, encouraging balanced participation,
managing time, keeping the meeting focused, ensuring convergence,
concluding the meeting and keeping 'minutes' of the meeting. For more
details, refer section 8.4.
4. Participants of a meeting must follow certain codes of conduct when
they attend a meeting. It includes being brief and to the point when they
speak, add value to the meeting, give credit and so on. For more details,
refer sub-section 8.4.1.
5. It is very important to take follow-up measures after the meeting to make
sure that the goals of the meeting are accomplished. Follow-up involves
the following steps, plan for the next meeting, check progress on follow-
up actions and do your own groundwork. For more details, refer sub-
section 8.4.2.

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8.9 Case Study

Use of Technology to Enhance Meeting Efficiency

CoreObjects is a leader in Distributed Cooperative Software
Development. The company partner to companies interested in building
world-class software. The company provides expertise in process and
software development which is necessary to promote commercially
deployable software to market.
Issue
The company's Senior Vice President of Delivery, Patrick Ravenel needed
a reliable way to capture meeting decisions in real-time. He says, “One
issue that comes up in a consulting company is that meetings with clients
often have decisions made that have real dollar implications. If these
aren’t captured, annotated, and distributed in a professional way, they
often cause account management and billing realisation problems due to
changes in scope that were agreed upon but not recorded.”
He not only wants to capture decisions taken during meetings, but would
also want to improve the efficiency and professionalism of meetings that
happen with customers. He also said, “Another issue was that there was
too much variation in how our staff held meetings internally and with
customers. Some did a great job of remembering to put together an
agenda, describe decisions made, and send out e-mails of action items.
Others were found to be lacking in their follow-up, and this reflected
poorly on us".
Solution
Ravenel started to use a software tool "MeetingSense" to capture the
minutes. Ravenel was impressed with the use of the tool to capture the
minutes as it provided high flexibility and reliability. Many customers were
also impressed as he could quickly distribute the minutes of the meeting
with the participants of the meeting and the minutes looked very
professional.
Ravenel's staff after using the tool was very impressed by its ability to
record meeting decisions and track actions items during the meeting
efficiently and effectively. Ravenel estimates that if the tool reduces time

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spent on meeting-related tasks by 25%, the savings for each power user
in the company amounts to about 5,000 US Dollars annually, each.
Benefits
The use of software tool for keeping the meeting minutes helped
CoreObjects to:
 save 5,000 US dollars annually.
 increase company's credibility with customer.
 increase meeting’s productivity.
 faster the deal closing process.
 improve accountability within the organisation.
Discussion Questions:
1. What was the issue faced by the Senior Vice President at
CoreObjects?
(Hint: Refer to section "Issue" in the Case Study)
2. Did the tool help Senior Vice President to overcome the issue he
faced?
(Hint: Refer to section "Solution" in the Case Study)
(Source: http://www.meetingsense.com/aboutus/press-
center/cocasestudy.aspx)

Reference:
 Means, T. L. (2010). Business Communication. U. S. A.: Cengage
Learning.
E-References:
 http://www.buenavistapalace.com/pdfs/FacetoFace_Forbes.pdf
– Retrieved on January 17, 2012.
 http://www.businessdictionary.com/definition/agenda.html
– Retrieved on January 17, 2012.\
 http://businessnbasics.com/page/9/ – Retrieved on January 17, 2012.
 http://www.condoandhoalaw.com/Documents/Sample%20Meeting%20M
inutes.pdf – Retrieved on January 18, 2012.
 http://www.iapa.ca/pdf/JHSC MEETING AGENDA FORM.pdf –
Retrieved on January 18, 2012.

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Unit 9 Internal Business Communication – Writing

Memos, Circulars and Notices
Structure:
9.1 Introduction
Objectives
9.2 Memo
Principles of précis writing
Components and format of a memo
Language and writing style of a memo
9.3 Circulars and Notices
9.4 Summary
9.5 Glossary
9.6 Terminal Questions
9.7 Answers
9.8 Case Study

9.1 Introduction
In the previous unit, we learnt the various types of meeting. We learnt the
responsibilities of a chairperson during a meeting and how to prepare before
meeting. We also learnt the significance of and steps for follow-up after a
meeting. Some of the important points or issues discussed in the meeting
have to be conveyed to others in the organisation who were not a part of the
meeting. Such formal communication can happen with the help of memos,
circulars and notices. In this unit, we will discuss some of the written
communication media, including memos, circulars and notices. We shall
define the specific purpose of each of these media and offer guidelines for
writing them, along with the appropriate formats to be used.

Your project manager Mr. Russell Peter wants you to inform the staff
members to attend an orientation session to be held in conference room
on Tuesday, at 11 a.m. To convey your message you just have to write a
small note and circulate it to the members formally. As the
communication happens within the organisation and you are requesting
the members to attend a meeting you need not use a formal language. At
the same time, the information is not sensitive or confidential. So, you

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need not worry about the security aspect while communicating the
message. As you are circulating the information on behalf of your project
manager you need not have a salutation and complimentary closing. How
are you going to communicate the information to all the members in a
formal way keeping all these points in mind? Are you going to use a
memo, notice or circular to communicate and why do you choose it? You
can find answers to these questions only if you know what a memo,
notice and circular are.
This unit helps you to answer the following questions:
What is a memo?
What is a notice and circular?
How are they used in business communication?
In this unit we will study the importance of written communication and define
memo. We will learn the structure of a memo. We will also discuss the use
of circulars and notices for business communication.
Objectives:
After studying this unit, you should be able to:
 describe the structure of a memo
 explain the purpose of circulars and notices
 prepare memos, circulars and notices

9.2 Memo
As studied in unit 5, in an organisation a large amount of information is
communicated via the written medium. Written communications include
memos, notices, circulars, organisation periodicals, etc communicated via
e-mails, bulletin boards, etc.
Written communication is preferred over other forms of communication as it
provides a tangible and verifiable record of the information that was
exchanged. The record can be stored for an indefinite period and hence, in-
case of any concern on the communicated message, it is physically
available for verification. This is very useful for communication that involves
complex and lengthy information. For example, the company's marketing
plan for a new product contains a number of tasks spread out over several

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months and numbers of stakeholders are associated with it. Writing it down
helps to communicate the plan effectively to all and it will be readily
available for reference over the entire life span of the product.
Written communication can be used for both informal to formal
communication. As it can be easily duplicated, many individuals in the
organisation can receive the message simultaneously making it highly
flexible. The errors made in written communication can be easily identified.
Hence, individuals who prepare it take extra care. Thus, written
communications are likely to be well thought out, logical and clear.
Memo is one of the most important forms of written communication in an
organisation. Memos can be used for formal and informal communication.
The word ’memo’ is a short form for ‘memorandum’, which is derived from
the Latin word ‘memorandus’ which means “a thing which must be
remembered”. It is also referred to as an “inter office memorandum”, since it
is used primarily as a tool for communicating within the organisation. The
memo is essentially a condensed or a brief report that can be used to
convey information and decisions or to make short requests to co-workers,
superiors and subordinates. It is relatively informal in style, compared to
letters and long reports and is unpretentious and concise.
It is important for the business executive to know how to write condensed
reports or memos. Often, business executives may also be asked to
condense business articles for their superiors. This is essentially the same
as ’précis writing’, where an article is condensed to one fourth its size,
without losing the essence or meaning. The condensed article could then be
put in memo format and sent to the superior.
Given its importance, we shall briefly discuss how to write a ’précis’.
9.2.1 Principles of précis writing
As mentioned, précis writing is regularly done by assistants of top
executives, to help them in keeping up with their business reading. There
are three main principles of précis writing, which may be referred to as the
three C’s of précis writing. They are:
 Condensation – This means that the précis must be a brief, shortened
version of the original article. In general, the précis must be one fourth
the length of the original article.

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 Comprehension – While it is important to reduce the article to one fourth

its size, the article must not lose its meaning in the process. It must be as
easy to understand the condensed article as it is to understand the
original article.
 Coverage – In the process of condensing the article, all the main points
or ideas in the original article must be retained and adequately covered,
so that the shortened article comes across as complete.
Précis writing requires a lot of skill and is not just about chopping sentences
and words to reduce the length alone. All the three “C’s” are equally
important for a précis writing to be meaningful and readable. A perfectly
condensed article is of no value, if it cannot be understood. Similarly, an
article which is perfectly understood, but which omits some key ideas is not
of much use, as it does not reflect the original.
A writer needs to look for the following, in order to fulfil the three C’s of
précis writing:
 Main theme – This tells what the article is about. This is usually indicated
in the caption itself for example, “The Future of the Indian Auto Industry.”
If not, it is important to read the article fully and grasp the main theme.
 Components – These are the main ideas or the ideas used to support
the main theme. For example, the fact that “the growth of light
commercial vehicles is a trend which is likely to continue in the future,”
may be considered as one of the components or main ideas, as it will
have a bearing on the future of the auto industry.
 Elements – These are the key words that are used to express the main
ideas. For example, the number of light commercial vehicles has
‘increased fourfold’ in ‘urban’ and ‘suburban areas this year, compared to
the last year’. The words in single quotes are the key words.
Once a précis has been written, it may be written in a memo format. Figure
9.1 depicts a sample précis in a memo format.

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Fig. 9.1: Précis in a Memo Format

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In the précis shown in figure 9.1, the main theme is contained in the subject
line “Changing Face of Customer Relationship Management (CRM).” The
components or the main ideas are expressed by the different paragraphs,
each with a subhead. Some of the key words that are used to express these
ideas are “revolutionary technology”, “long-term benefits”, “in-depth cost-
benefit analysis”, “functional aspects”, “customised solutions” and “survival
of the fittest.”

Activity 1:
Select an article from any business publication and prepare a précis of the
article by reducing it to one fourth its size.
(Refer sub-section 9.2.1 for detailed guidelines.)

Self Assessment Questions

1. Written communication is preferred over other forms of communication
as it provides a ________________ and ________________ record of
the information that was exchanged.
2. ________________________ means that the précis must be a brief,
shortened version of the original article.
3. Which among the following indicates what an article is about? (Pick the
right option)
a) Main theme
b) Components
c) Elements
d) Subject

9.2.2 Components and format of a memo

As shown in the figure 9.1, a memo is a brief, one page or maximum two
page report. Figure 9.2 depicts a memo in full block format.

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Fig. 9.2: Full Block Format of Memo

Many companies have their own printed format in which the message is
written and sent. The format is similar to a letter as shown in figure 9.2.
Let us now study the components that form the structure or format of a
memo. Figure 9.3 depicts the components that form the structure of a
memo.

Fig. 9.3: Structure of a Memo

1. Header – This is a compact block of information which appears at the top

of the memo that includes the ’To’, ‘From’, ‘Date’ and ‘Subject’ headings,
which is similar to the title page of a longer and more formal report.
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The “To” heading must mention the name of the receiver or the primary
target audience for example, in the memo shown in the figure 9.1 the ‘to’ is
the Marketing Vice President (VP). The ‘From’ heading must include the
name of the sender or writer of the memo (Marketing Executive). The
‘Subject’ line must include the specific purpose of the memo (the title of the
précis memo shown in figure 9.1). This helps the writer in the development
of the message and lets the reader know what the memo is all about. Date
is the day when the memo is drafted or circulated.
2. Body – This is the text of the memo which contains the details and major
topics. Unlike letters, the memo need not have a formal salutation such as,
‘Hi’, ‘Respected’, ‘Dear’, etc. Unlike a formal report which has to be
completely objective, personal pronouns such as “I” and “you” are
acceptable in a memo, as in the opening sentence of the memo shown in
figure 9.3. This is because a memo is purely for internal use of an
organisation.
3. Close/action – Usually, unlike formal letters, memos did not have a
formal close for example, ‘Sincerely’ and a signature line. However, now-a-
days many organisations close their memos with letters like ‘Sincerely’,
followed by the hand written signature and name of the person circulating
the memo. But, it is up to the organisation standards which define the memo
structure. Therefore, it is very important to know standard template of the
organisation to know the organisation standard.
If the purpose of the memo is not just to communicate the message, then
there must be a clear call for action. The action indicates what the audience
has to do for example, “I request you to review my proposal and to grant
approval.”
4. Courtesy copy – This is widely known as ‘cc’ and earlier stood for
carbon copy. Sometimes a copy of the memo may go to another person(s).
This is indicated by cc., followed by the name(s) of the person(s) to whom
the memo is being sent. As shown in figure 9.1 and 9.2.
Memo format
A memo may follow one of two types of formats, depending on its nature
and purpose:
 Direct organisational plan or deductive organisation

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 Indirect organisational plan or inductive organisation

Let us discuss them in brief.
Direct organisational plan
This format is used when a memo is purely informational, as in figure 9.4.
As the purpose is only to convey information, it is mentioned right at the
outset and all the details are presented right away. This style of presentation
is also used when the purpose of the memo is to persuade. This is
appropriate when you are sure that your proposal or request will be
accepted without any resistance. In this case, the writer can make the
request right at the beginning and then list out the reasons.
Figure 9.4 depicts an example of a persuasive memo that is written
following the direct organisational plan or deductive organisation.

Fig. 9.4: Persuasive Memo

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In the memo shown in figure 9.4, the sales manager is confident that his
request for strengthening the sales force will be granted, as it has obvious
benefits. Therefore, the request is made right at the outset, followed by the
reasons.
Indirect organisational plan or inductive organisation
This type of memo format is appropriate when the purpose of the memo is
to persuade, but when the writer feels that the reader might object to the
request or the proposal. Therefore, the writer may try to convince the reader
by presenting the reasons first and then make the request or
recommendation right at the end. An example of a memo written using this
format is as depicted in figure 9.5.

Fig. 9.5: Indirect Organisational Plan Memo

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In the memo shown in figure 9.5, the writer mentions his request or proposal
at the end and justifies the need for a bigger advertising budget first, by
listing out the reasons. As the writer is suggesting that the budget be
doubled, but the writer is not sure if the request will be granted. That is why
the indirect organisational plan is used instead of the direct plan. Unlike the
direct plan, the subject line does not reveal the real purpose of the memo,
which is a request for doubling the budget in the memo shown in the figure
9.5.
9.2.3 Language and writing style of a memo
As a memo is a short, informal report, the following points have to be
remembered regarding the language and style that is used:
 Be concise – It is important to be brief and focus on the point, so that the
memo does not exceed two pages in length. Make the sentences and
paragraphs short, limit each paragraph to five lines or less and use bullet
points wherever possible. If you are giving reasons, number them or put
them in separate paragraphs with double line spacing. Otherwise use
single line spacing between lines.
 Use active not passive voice – As mentioned earlier, use of personal
pronouns and active voice is permitted in a memo, unlike a formal report
where the passive voice must be used for the sake of objectivity. In other
words, it is appropriate to say for example that “Based on ‘my’
experience, ‘I’ feel that the budget is not adequate.”
 Use simple language – In earlier units, the importance of using simple
English was emphasised. It is a good practice to use short and simple
words. At the same time avoid trying to impress the reader by using
unnecessary jargon.
 Avoid giving too many reasons – Although, it is important to provide a
justification when you make a request or try to persuade someone to do
something, do not overdo it. In general, a reader can only absorb a
maximum of six or seven reasons at once. Therefore, do not overstate
your reasons.
 Close with a call for action – Do not leave the reader hanging. If you
wish to persuade the reader to accept your request or recommendation,
you must say it clearly using action words and indicating a time frame or
limit. For example, “I would like to discuss this in person with you and get
your approval before the end of this week.”

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Therefore, while writing business memos it is important to have clarity in

writing, use short and simple words, use positive language, keep
paragraphs unified and coherent, have one idea in one paragraph and use
right tone.

Common mistakes while using memos

Sometimes people misuse or overuse memos. Even if we are great
writers, some information doesn’t require an official form of
communication. Often, when writing a memo we have a hard time
differentiating our major points from our minor points. Common mistakes
include:
 Forgetting to proofread your memo. Sometimes, you find errors or
ways to simplify your message by reading it after you are done writing.
 Using an inappropriate tone in your correspondence. Emotions have a
huge impact on the tone of your writing. Hold on to the memo before
hitting the send button because you might need to change something
you haven’t yet noticed.
 Being afraid of using a passive voice. Sometimes it is better to use
passive voice for political reasons. Creative writers have a difficult time
doing this, but it is appropriate for memos. (Only during exceptional
cases)
(Source: http://stacienaczelnik.hubpages.com/hub/How-to-write-a-Memo)

Additional Reference:
Sehgal, M.K, & Khetarpal, V. (2011). Business Communication. New
Delhi: Excel Books.

Self Assessment Questions

4. The “To” heading of a memo mentions the name of the ____________.
5. If the purpose of the memo is not just to inform there must be a clear
call for action. (True/False)
6. Which among the following is a type of memo format? (Pick the right
option)
a) Inductive organisation
b) Incremental organisation
c) Deductive organisation
d) Decremental organisation
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7. The use of ___________________ and _______________________ is

permitted in a memo.

9.3 Circulars and Notices

Like memos, circulars and notices are also written forms of communication
within the organisation. The basic difference between a circular and notice is
that circulars are announcements that are distributed to small or selective
groups of people within the organisation, whereas notices are meant for a
larger group of people. Another way to differentiate a circular and notice is
that circular are circulated to respective individuals, whereas notices are put
up on notice boards.
For example, if a manager wants to call a meeting of heads of departments,
he will pass around a circular only to the heads, requesting them to attend
that meeting.
On the other hand, notices generally contain information or announcements
that are meant for all the employees of an organisation.
For example, a list of declared holidays for a calendar year is a notice, as
the information is relevant to all employees.
The common purposes of using a notice in business communication are to:
 Invite for a meeting
 Inform a new rule/regulation to be initiated or formulated
 Inform about an event to be held
 Inform the deadline for submitting any paperwork
A notice is therefore a legal document that has to be put up on an official
notice or bulletin board.

Let us examine the following example to get a clear distinction between

circular and notice.
Imagine that you are the President of the Student Committee in a
management college and wish to hold a meeting to plan for the Annual
Management Fest of the college. You will have to send some information
to those whom you want to involve in organising the Fest. You may not
want all the students to be involved initially, as it may take a lot of time

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and there may be too many suggestions. Instead, you may choose to
invite only the committee members to discuss details such as the date,
venue, duration, how to get sponsors, etc. For this purpose, you may
send a circular (as shown in figure 9.6) only to the student committee
members, requesting them to attend the meeting.
During the meeting, the date and venue are finalised and various smaller
committees may be formed, such as a reception committee and stage
committee. You may also decide to get each student to contribute a
nominal amount for the Fest. In order to announce these details and to
ask for student contributions, you may then put up a notice on the official
college notice board, which all students can see and respond to. The
notice can include the following details (as shown in figure 9.7):
 Purpose of the notice
 Date and time of the event
 Venue
 Names and details of special invitees
Figure 9.6 depicts a sample circular.

Fig. 9.6: Circular for Committee Meeting

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Note that a circular, like a memo is brief and to the point. It has a caption
that indicates the message to be conveyed, like a memo, there is no formal
salutation or close as shown in figure 9.6.
Figure 9.7 depicts a sample notice for the fest.

Fig. 9.7: Notice for Management Fest

The notice depicted in figure 9.7 is meant for all students of the college. It
has a reference number, date and a subject, similar to a memo. The
signature, name and designation of the issuer of the notice appear at the
bottom on the left hand side. The notice covers three different issues related
to one subject. Students are first informed that special dignitaries Mr. Roy
and Dr. Arun Patil who will preside the fest. Secondly, it informs the topics
on which the dignitaries will talk during the fest. It also mentions that lunch

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and evening snacks will be served to all. Another important difference

between a notice and circular is that notice is displayed at one place,
whereas a circular is widely circulated among the members concerned. In
many occasions a signature of the reader is taken to ensure that the
information has been transmitted.
Sometimes, under special circumstances, notices may also be sent to an
individual or employee of an organisation. An example of this type of notice
is the ’Show Cause Notice’, which is sent when an employee is found to be
guilty of major misconduct. The notice mentions the allegations against the
employee and asks for a written explanation within a specified time, failing
which the action that would be taken against him/her for example, being
suspended from the job is stated.
Notices are read by a large number of people and can also be used as
evidence in court cases. Therefore, care must be taken when writing them.
They have to be worded very precisely and clearly, to make sure that there
is no ambiguity. They must also be brief and to the point. The tone must be
firm, but not offensive and arrogant. Depending on the type of notice, the
duration of display of a notice is specified under various legal provisions.
Self Assessment Questions
8. _________________ is an announcement that is distributed to small or
selective groups of people within the organisation.
9. _______________________ mentions the allegations against the
employee and asks for a written explanation within a specified time.
10. Depending on the type of notice, the duration of display of a notice is
specified under various legal provisions. (True/False)

9.4 Summary
Let us recapitulate the important points discussed in this unit:
 Compared to other forms of communication, written communication is
preferred as it provides tangible and verifiable record of the information
that was exchanged.
 Memo writing is similar to précis writing where, detailed information is
presented in a concrete form to the audience especially to top executives
of an organisation.

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 A memo comprises the following components:

o Header
o Body
o Close/Action
o Courtesy copy
 Depending on the nature and purpose, a memo can be classified as:
o Direct organisational plan
o Indirect organisational plan
 Language and writing style of a memo is very circular and you have to be
concise in your writing, use active voice, use simple language, avoid
giving too many reasons and close with a call for action.
 A circular is an announcement that is sent to a selective group of people,
but notice is an announcement that is sent to everyone concerned.
 Show cause notice is a special kind of notice that is sent to individuals or
group demanding for an explanation on an issue.

9.5 Glossary
Customer Relationship Management: A widely implemented strategy for
managing a company's interactions with customers, clients and sales
prospects.
Fest: A gathering or occasion characterised by a specified activity.
Jargon: The specialised or technical language of a trade, profession or
similar group.
Salutation: A polite expression of greeting or goodwill.

9.6 Terminal Questions

1. What is a memo?
2. Write a note on précis writing.
3. Explain the structure of a memo.
4. When you write a memo what language and writing style will you follow,
explain.
5. Explain a circular and notice using an example.

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9.7 Answers

Self Assessment Questions

1. Tangible, verifiable
2. Condensation
3. Main theme
4. Receiver
5. True
6. Deductive organisation
7. Personal pronouns, active voice
8. Circular
9. Show cause notice
10. True
Terminal Questions
1. A memo is an abbreviation of memorandum. It is one of the primary
tool for communication within the organisation. For more details, refer
section 9.2.
2. In many organisations précis writing is done by assistants to present
detailed information in concrete form. Précis writing is guided by the
principles of three C's. For more details, refer sub-section 9.2.1.
3. A memo can be divided into different components. They are header,
body, close and courtesy copy. For more details, refer sub-section
9.2.2.
4. When you write a memo you have to make sure that you write it in a
concise form, use active voice, use simple language and avoid giving
too many reasons. For more details, refer sub-section 9.2.3.
5. Circular is an announcement that is distributed to selective group of
people and notice is also an announcement, but it is distributed to
everyone concerned. For more details, refer section 9.3.

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9.8 Case Study

A Memo to Employees of News Corporation from Chairman and

CEO Rupert Murdoch
Dear Colleagues,
I am proud to announce that News Corporation has reached its first major
sustainability milestone: we have become carbon neutral across all of our
global operations and we are the first company of our kind to do so.
We made a bold commitment in 2007 to embed the values of energy
efficiency and environmental sustainability into all of our businesses – for
the benefit of our communities and our bottom line.
But achieving net zero carbon emissions was never our only goal. Less
than four years ago, I invited all of our employees, business partners and
audiences to join us in this exciting initiative – and your response has
been extraordinary. Today, I'm pleased to share some of our successes
across the Company, as well as our long-term commitment to
environmental sustainability.
Together, despite some of the toughest markets our industry has ever
seen, we have saved millions of dollars by improving the energy
efficiency of our day-to-day operations. Our efficiency projects pay for
themselves in less than two years, on an average and span from simple
solutions like lighting retrofits and automatic PC shut-down to systemic
changes like installing telepresence and videoconferencing technology to
reduce the need for air travel. The Company's global data centre
consolidation strategy alone will save approximately $20M per year and
reduce data centre emissions by almost 15% when completed later in
2011.
Our support of clean energy – through on-site projects, renewable energy
certificates and carbon credits – spans the globe, from Los Angeles to
India. Our UK businesses now procure 100% of their electricity from
renewable sources. Dow Jones is close to completing a 4.1MW solar
power system on its campus in New Jersey, which will be the largest
solar installation of its kind in the United States; at peak, it will provide
50% of the site's electricity needs.
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We have provided leadership in our industry, across our supply chain and
among the global business community. Fox Entertainment developed
robust carbon footprinting standards and tools for film, television, sports
and event production, as well as a sustainable vendor guide. The
standards we set helped lead to a new industry-wide consortium and the
online, open-source Green Production Guide. Our initiative has even
prompted major suppliers, like paper manufacturer Norske Skog, to set
their own ambitious environmental targets. We have collaborated with
business partners who were already leading the way, including our DVD
supply chain initiative with Wal-mart, which pioneered an eco-case that
reduced emissions from raw materials alone by 13% and has become the
industry standard. Most recently, we became founding members of the
UK-India Business Leaders Climate Group.
Most important, throughout this endeavour we have continued to do what
we do best: engage our audiences around the world with the most
compelling content. Twentieth Century Fox's Ice Age franchise and the
most successful film of all time, Avatar, prove that passionate
environmental messages can be fodder for both blockbusters and real-
world action, like the million trees planted in 2010 through the Avatar
Home Tree initiative. National Geographic Channel offers scientifically
rigorous programmes, like Preserve Our Planet and Great Migrations,
that are also visually stunning. The Times of London built on its long
history of outstanding science coverage to launch Eureka, a monthly
magazine supplement dedicated to science, innovation and the
environment. News Limited recently launched the public face of its
award-winning employee-facing One Degree initiative. And The Wall
Street Journal's fourth annual ECO:nomics conference, the leading forum
for conversations at the intersection of business and the environment,
kicks off tomorrow.
News Corp.'s leadership in this area has been recognised by key
independent parties, recently earning top marks in the Carbon Disclosure
Project's leadership indices and winning big in the Environmental Media
Association's 20th annual awards, with top honours going to Avatar and
Bones.
We are well on our way to becoming the innovative, regenerative

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business we want to be. In the long term, we aim to grow our business
without growing our carbon footprint, to power our operations with clean
electricity, to minimise solid waste to landfill from our production
operations and to continue to engage our audiences on sustainability
issues through partnerships and content of the highest calibre.
To help us realise this vision, I ask only that you apply the same creative
thinking to sustainability that you already do to your jobs every day.
Congratulations and thank you for putting us on the right path. We have
come a long way and we have much to do together.
Sincerely,

Rupert Murdoch
Discussion Questions:
1. What is the memo about?
(Hint: The CEO is congratulating the company’s employees as the
company has been recognised as a carbon neutral company)
2. Do you think the memo is written keeping in mind the standard
guidelines for writing a memo? Explain.
(Hint: Refer to sub sections 9.2.2 and 9.2.3)
(Source: http://gei.newscorp.com/letter.html)

Reference:
 Kaul, A. (2006). Effective Business Communication. New Delhi: Prentice-
Hall of India Private Limited.
E-References:

 http://stacienaczelnik.hubpages.com/hub/How-to-write-a-Memo
– Retrieved on January 18, 2012.
 http://gei.newscorp.com/letter.html – Retrieved on January 19, 2012.

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Business Communication Unit 10

Unit 10 Internal Business Communication – Electronic

Media and Shareholder Communication

Structure:
10.1 Introduction
Objectives
10.2 Intranet
Advantages and disadvantages of intranet
10.3 Communicating through e-mail
Principles of e-mail communication
e-mail etiquette
10.4 Communication through Instant Messaging
Three step process for successful IM
10.5 Communication with Shareholders
10.6 Summary
10.7 Glossary
10.8 Terminal Questions
10.9 Answers
10.10 Case Study

10.1 Introduction
In the previous unit, we studied communication within the organisation through
written channels, including memos, circulars and notices. Computers, the
Internet and the intranet have revolutionised the way communication takes
place in organisations. Memos, circulars and notices can be sent to employees
within the organisation using electronic mail or e-mail. In this unit, we will learn
the significance of intranet and e-mails in business communication.

Some interesting facts about e-mail usage

 On an average, a business user receives 25 e-mail messages per
day and this is increasing by 10% per year.
 On an average, a business user spends 2.6 hours per day reading
and responding to e-mail.
 About 38% of employees have sent an e-mail without the required
attachment.

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 It takes 77 minutes a week for an employee to manage his/her

mailbox, doing tasks such as cleaning out old messages and filing old
messages or attachments.
 It takes 27 minutes for a user to delete or archive enough messages
in order to be able to use the e-mail system again after hitting a
’quota limit’.
 It takes 8.2 minutes for a user to find an e-mail that is older than two
weeks.
 About 60% of business correspondence has grammar or spelling
errors.
 About 60% of an organisation's intellectual property is in the e-mail
system.
 The typical user stores more than one-half of his/her critical business
information within the confines of the e-mail system.
 About 38% of US and UK companies monitor and read e-mails
written by employees.
(Source: http://justinhartman.com/2008/03/03/interesting-email-facts/)

This unit provides answers to the following questions:

What is an intranet?
What are the etiquette one has to follow while writing an e-mail?
In this unit, we will learn the significance of intranet and e-mail in business
communication. You will also learn the importance of Instant Messaging in
business communication and communicating to stakeholders.
Objectives:
After studying this unit, you should be able to:
 explain the meaning and purpose of the intranet
 list the advantages and disadvantages of the intranet
 describe the principles of e-mail communication
 describe the etiquette for e-mail communication
 identify the importance of Instant Messaging in business communication
 recognise why communicating to shareholders is very important

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10.2 Intranet
An intranet is a communication network that operates on an internal network
that is exclusive to a particular organisation. This means that only the
employees of an organisation have the authority to access it. This is as
opposed to an ’extranet’, which is also an internal or private website, but where
access privileges are also extended to external stakeholders of the company,
such as customers, suppliers, partners and others.
Although the intranet is better suited for large organisations where distributing
information is an enormous task, a number of smaller companies today are
also using this form of internal communication.
Simply defined, the intranet is a tool for distributing and sharing information of
different types within the company. For example, weekly reports, goals, human
resources related information such as employee benefits and declared
holidays, interactive forms, vacation requests, supply orders, company policies
and even memos and notices can be posted on the intranet.
Apart from large organisations, the intranet is particularly suited for ’virtual’
companies that have only an online presence, as well as companies with
frequently travelling employees and off-site workers, as communicating with
such employees becomes a challenge.
10.2.1 Advantages and disadvantages of intranet
Like any other tool, the intranet has its advantages and limitations. Some of the
primary advantages are:
 Discourages grapevine – Grapevine or the informal communication
network, although useful, leads to rumours. When employees are
misinformed, they become dissatisfied and de-motivated. Using the
intranet as an official channel to post information for all employees to
discourages gossip and avoids creating a transparency gap.
 Facilitates pre-meeting discussion – The intranet can be used to
discuss and debate ideas prior to a meeting, so that valuable meeting
time is spent focusing only on relevant ideas.
For example, suppose a sales team of five members are required to
make a presentation to the Vice President - Sales, on how to increase
sales during the current year. Instead of each salesperson making a

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lengthy presentation during a meeting and then getting ideas reviewed

and approved, a ’discussion board’ can be created using the intranet, a
few days before the meeting. The salespersons could post their ideas on
the discussion board for the VP to review in advance, so that only the
most promising ideas are discussed during the meeting. This way, the
salespersons can come into the meeting more focused.
 Saves time – The intranet is paperless communication and is therefore
a big time saver. A lot of unnecessary time wasted on filling out forms,
leave requests, supply orders, etc., can be saved by doing this through
the intranet.
Employees can get information on official holidays and other Human
Resource (HR) related information, without having to interact with the
HR manager.
 Is superior to e-mail – Sending some types of information through
e-mail can sometimes create confusion and information overload. For
example, consider that five salespersons want to meet and give a
presentation to the Vice President – Sales, on how to increase sales. If
each one of them has three different ways in which they could increase
sales and start e-mailing multiple versions of their Power Point
presentations to the Vice President for review, it could lead to disastrous
results. Instead, they could work on a shared file, by using the intranet.
The intranet allows you to create a central location where you could
save your most recent file.
While the intranet saves valuable time and money, it has some disadvantages.
Before an intranet is set up, a lot of groundwork needs to be done. You need to
determine what you want it to do and how employees will use it. Some of the
important disadvantages of an intranet are:
 Getting started – Building the intranet to your specifications can be
expensive. A consultant may have to be hired to give it the desired look
and feel and to make sure that it is user friendly and simple enough for
all employees to use.
 Developing and maintaining content – Once the intranet has been set
up, someone has to be responsible for maintaining and updating the
information on a continuous basis. In small organisations, it may be

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sufficient to appoint one person to do this. In larger organisations with

multiple departments, it may be necessary to appoint several persons to
maintain and update information for the different departments. This
becomes a complex and expensive task.
 Training employees – Once the intranet has been set up, employees
have to be familiarised and trained on how to use the intranet. This
involves investment in time and money.
 Convincing ‘old economy’ employees – Some employees may not be
technology or computer savvy and may be reluctant to use the intranet
to access information. Therefore, they may have to be convinced about
the benefits of using the new technology.
The following case study illustrates how an intranet must be designed and used
as an effective communication tool.

Rand Library Intranet

The Rand Library is part of a non-profit research institution based in
Santa Monica, California, USA. It helps to improve policy and decision
making of federal, state and local governments through research and
analysis.
The RAND library intranet has been designed with the objective of being
an interactive tool that helps library staff and clients communicate
regularly with each other. Another objective is to constantly update the
information available to its customers. This does not require an IT
specialist and can be done by any library staff member.
Their intranet communication strategy includes three components: an
updated home page, an e-mail alert service and several e-mail links. The
home page contains the library logo and a menu, which are standard
components, while the body of the page is changed at least once a week.
The home page includes internet sites that may be of value to their
research staff, as well as announcements regarding library news, new
services and policy changes.
The e-mail alert service includes e-mail distribution lists for topics such as
Health Care, Science and Technology. Once a person signs up for the
e-mail alert service for one of these topics, the person receives regular
e-mails pertaining to these topics.

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Multiple e-mail links are used to make the communication two-way. This
means that the clients can login to the intranet site and make requests for
books, research articles, etc. They can also click on a “Contact a
Librarian” link that brings up the name, job title and photograph of each of
the reference librarians.

Additional Reference:
Thompson, S. (2002). Communicate in the Workplace. Australia: Max
Johnson.

Self Assessment Questions

1. An intranet is similar to a __________________, except that it operates
on an internal network that is exclusive to a particular organisation.
2. The intranet can be used to discuss and debate ideas prior to a meeting.
(True/False)
3. Identify the advantage of the intranet. (Pick the right option)
a) Building the intranet
b) Maintaining content
c) Superior to e-mail
d) Encourages grapevine
4. In large organisations, it may be sufficient to appoint one person to
maintain the intranet. (True/False)

10.3 Communicating through e-mail

Although e-mail is a tool for external communication, it is also regularly used
within an organisation, in place of telephone and face-to-face communication.
This is because e-mail is instantaneous and allows you to send messages that
others can pick up at their convenience. Besides, e-mail also makes it possible
to send messages to people anywhere in the world and to people who are
otherwise impossible to reach.
While the other forms of written communication are highly formal in nature,
e-mail is more informal and spontaneous. It is therefore easier to write an
e-mail message than it is to write a business letter or a report, where greater

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attention has to be paid to the language, style and tone. As e-mail is quick,
easy to use and spontaneous, it can also help to improve personal relationships
in the workplace.
Two of the most primary types of business communication e-mails are as
follows:
 Business-to-Customer (B to C) e-mails – If the business
communications or a transaction happens over e-mail, directly between
the company and consumers it is called B to C e-mails. Usually
companies that sell products directly to consumers can be referred to as
B to C companies. These companies (like online retailers) communicate
with their customers via e-mails. .
 Business-to-Business (B to B) e-mails – This type of e-mail
communication happens between two businesses for example, when the
manufacturer sells the product to a wholesaler. Let us now study the
principles that you need to follow while communicating over e-mail.
10.3.1 Principles of e-mail communication
The principles of communicating through e-mail are a little different from the
principles of written communication, as e-mail is more informal in nature. Figure
10.1 depicts the principles of e-mail communication.

Fig. 10.1: e-mail Communication Principles

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Let us now discuss the principles shown in figure 10.1 in detail.

 Watch the content – e-mail messages are not always confidential and
one can never be sure who will read them. The minute an e-mail
message is sent, multiple copies are created on your own Personal
Computer (PC) and server. At the same time, a copy is also created on
the recipient’s PC and server. There is no way of ensuring that the
message will not be forwarded to others. Sometimes, e-mail messages
can even be used as proof in court. Once a message is sent, a
permanent record is created. Therefore, it is always wise to avoid writing
anything negative or offensive in e-mails.
It is particularly important to watch the content of official. e-mail
messages sent using an employer’s equipment. As the employer has a
right to read the message and is legally responsible for its content, it
must be carefully worded.
 Pay attention to the tone – The very nature of e-mail communication
can make the message sound negative, abrupt and rude. For one thing,
e-mail lacks the personal quality of face-to-face communication, where
body language and other non-verbal cues may be used to make the
communication more positive. Secondly, e-mail messages are brief, use
short words and sentences and lack salutations. Brief messages may be
interpreted as being rude and unfriendly. Therefore, you must pay close
attention to the tone of the message and ensure that you sound friendly
and courteous. Avoid using humour and sarcasm which might be
misunderstood or sending messages when you are angry or annoyed.
 Include a specific subject line – Your e-mail message must always
include a subject line that clearly mentions the topic of the e-mail. As
business executives receive several e-mails a day, this would help them
to decide which messages are most important to them. They may also
have an idea of what the message contains.
 Place important information first – As business executives do not
have time to read lengthy e-mail messages, it is a good idea to put all
the important information that you want to convey in the first three lines
of the message. Whether you are seeking a clarification, making a
request or giving instructions, it is best to mention this right at the outset,
so that it is noticed.

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 Explain attachments in the body of the e-mail – Attachments take

time to download and must be sent along with an explanation in the
body of the e-mail, as to what they are all about. This makes it easier for
the recipient of the message to decide whether they must be opened or
not. Otherwise it can lead to unnecessary waste of time.
 Use the “to” and “cc” button carefully – The “to” box must be used
only to send messages to people who are responsible for doing
something. The “cc” button is used when sending multiple copies of the
same e-mail message to other recipients, who need to be kept informed
on a specific issue. This must be used with care, making sure that the
message is sent only to the right persons. It is important to respect
privacy, as not everyone likes having their e-mail address displayed to
others. Besides, sending a long list of e-mail addresses can interfere
with the reading of the main message.
 Pay attention to brevity, emphasis and white space – The look,
appearance and language used in the e-mail message can influence the
readability of the message. Some techniques for enhancing readability
of e-mail messages include short paragraphs (six lines maximum),
spacing between paragraphs, use of bullet points and numbers for lists,
use of paragraph captions, highlighting main points in bold type and use
of white space.
 Use the “WIFM” rule – WIFM stands for “What’s in it for me?” and
means that the benefits of your message to the reader must be
emphasised. This involves the use of the second person pronoun, ’you’,
rather than the first person pronouns ’I’ or ’me’. It is important to
stressing on the ’you’ attitude rather than the ’me’ attitude.
 Tidy up your mail box – e-mail traffic can lead to your inbox becoming
cluttered, with more messages than you can handle. It then becomes
difficult to retrieve important messages when you need them. It is
therefore a good idea to clean up your mailbox regularly, by deleting
unimportant messages. The important messages that you want to refer
later must be put into separate topic folders. Every now and then, any
outdated messages in the topic folders must also be deleted.
 Proofread your e-mail message – Just as it is important to proofread
business reports, letters and memos, e-mail messages must also be

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checked for spelling and grammar mistakes, so as to avoid any

embarrassment.
 Set aside time to check e-mail – e-mail must not become a substitute
for face-to-face interaction at the workplace or use valuable time that
could be spent on other important jobs. It is a good idea to determine a
certain time during the work day when you can check and respond to
e-mail messages.
10.3.2 e-mail etiquette
Similar to meeting etiquette which we discussed in unit 8, there are etiquette for
writing e-mail messages, which must be strictly followed. They are:
 Mind your P’s and Q’s – These refer to the three ’magic’ words,
’Please’, ’Thank You’ and ’Sorry’. They are all the more important in
e-mail messages, which have to be extra polite and friendly.
 Avoid ‘shouting’ – Shouting in an e-mail message refers to use of all
capital letters in the text. If only capital letters are used, it makes it
difficult to read a message and is therefore considered to be rude, like
shouting.
 Avoid symbols and acronyms – Symbolic messages using
punctuation marks, known as ‘emoticons’ for example, ,  etc., must
be avoided, especially in business related e-mail messages. Similarly,
abbreviations like BTW for by the way must be avoided as they sound
over casual and may not be understood by everyone.
 Use friendly salutations and sign-offs – Although these are not strictly
required in e-mail communication as in business letters, a salutation
such as “Dear John” and a sign-off such as “Warm Regards”, helps to
make the tone friendly and personal.
 Respond promptly – In the case of business related e-mails, it is
important to respond promptly, especially when communicating with
superiors. Even if you are hard pressed for time, are out of town or out
of the office, you can set an automatic e-mail response to your received
messages, which will mention that you will be responding in detail on a
specific date.
 Avoid personal messages at work – Do not make use of office facility
to send personal e-mail messages. As confidentiality of the message is
not guaranteed, it may lead to embarrassment later.

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 Avoid sending ’junk mail’ – Do not send irrelevant messages or

messages that are not work related to people at work. If you overload
people with this kind of mail, they will not pay attention to the really
important messages.
e-mail must be used constructively and judiciously, to meet your goals at the
workplace and to enhance your performance.

Some Do’s of e-mail

Use e-mail when:
1. you wish to be a part of a network where you can share information and
receive information from others.
2. you want to contact important people quickly and save time spent in
meetings.
3. you want to send information to a large number of people located across
the globe.
4. you want to establish a professional image. Your language and writing
style on electronic media can say a lot about you, just like your dress and
outward appearance. Watch your spelling, grammar and usage of
English.
5. you want to cut through hierarchy and speed up team projects.

Activity 1:
List three different situations at the workplace when e-mail
communication would be more appropriate for conveying a message,
compared to oral and written channels, explaining why.
(Refer section 10.3 for detailed guidelines.)

Self Assessment Questions

5. e-mail is more __________________and _______________________.
(Pick the right option)
a) Informal, spontaneous
b) Elaborate, spontaneous
c) Informal, elaborate
d) Formal, elaborate

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6. The very nature of e-mail communication can make the message sound
negative, abrupt and rude. (True/False)
7. __________________________ take time to download and must be
sent along with an explanation in the body of the e-mail.
8. ________________ make it difficult to read a message and is therefore
considered to be rude.

10.4 Communication through Instant Messaging

e-mail is one of the primary medium for business communication. However,
some drawbacks of e-mail such as viruses, spam and extensive overuse are
forcing organisations to explore alternatives. Instant Messaging (IM) is one
such alternative that organisations prefer over e-mail.
Instant Messaging (IM) is a technology initially designed for having one-to-one
personal chat at workplaces. Over the years, many executives, including senior
executives in an organisation prefer text-based IM over phone calls and e-mails
to communicate with other executives, employees and customers within and
outside the organisation. This is because of the immediacy and streamlined
efficiency in communicating real-time information within the organisation that IM
offers.
Instant messaging can happen over the intranet and Internet, but within an
organisation IM happens over intranet. In many large and small business
organisations, IM is extensively used as an important communication tool as it
provides enhanced collaboration and increased opportunities for saving time
and cost. IM offers a range of capabilities for business communication that
includes basic chat, remote display of documents, video capabilities, controlling
other computers from remote location, automated news feed from websites,
etc. In spite of its simplicity, efficiency and reliability it cannot be used to
communicate sensitive and confidential information due to lack of security and
susceptibility to a virus attack.
10.4.1 Three step process for successful IM
Instant messages are often written and sent within a matter of few seconds.
You can follow the steps depicted in Figure 10.2 to write instant messages for
business communication more effectively.

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Fig. 10.2: Steps for IM

As shown in figure 10.2, the three steps for successful IM are:

 Plan – Think every instant message exchange as a conversation and
take a moment to plan the overall conversation. Make sure you read the
message before you sent. If you are requesting something, ensure that
you are requesting exactly what you need in the most effective way
possible. If a request is being made to you, ensure that you are able to
meet the demand as per the requirement before you respond. It is a
good practice to communicate the information in a coherent and
complete way using minimum number of individual messages.
 Write – A formal writing style is more appropriate for business IM. You
must generally avoid short forms such as, 'Thanx' for 'Thanks', 'Plz' for
'Please', 'HTH' for 'hope that helps', etc. It is always good practice to
maintain good etiquette and a professional tone while communicating
business messages using IM especially with customers, stakeholders
and other audience who are not part of the organisation.
 Complete – To complete the instant message you have to send it.
Before you send it, select a basic font setting. For example, text style
'Arial' or 'Times New Roman', font size 11 or 12 and font colour 'Black'.
You must also spend some time to revise and proofread the message to
ensure that there are no missing or misspelled words and the message
is clear and complete. Then just click the ‘Send’ button to deliver the
message.
There are many IM tools available for communication over the intranet and
Internet. For example, 'IP Messenger' is a popular tool for IM over the intranet.
'Skype', 'ALO Instant Messenger', 'Yahoo Messenger', etc are examples of IM
over the Internet.

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Dos and Don’ts for IM Users

1. Do: Adopt a user policy for instant messaging. If you are an owner, your
employees need to know whether you view IM as an appropriate vehicle to
communicate with, say, customers or business partners. Any policy must
contain at least general guidelines for its use.
2. Don’t: Do not use IM to communicate confidential or sensitive information. If
your company is in the business of providing professional advice regarding
stocks, finances, medicine or law, it is advisable not to use IM. IM is better
suited to send quick information about project status, meeting times or a
person's whereabouts.
3. Do: Organise your contact lists to separate business contacts from family and
friends. Contact lists, also known as ’buddy lists’ contain your menu of
potential recipients for instant messages. Keep your business contacts
separate from family and friends. Make sure your employees do the same.
Eliminate even the remote possibility that a social contact could be included in
a business chat with a partner or customer – or vice versa.
4. Don’t: Do not allow excessive personal messaging at work. Although you can
make personal phone calls at work, send personal e-mails and allow your
employees to do the same, it is better to keep it to a minimum. Ensure that
personal chats are done during breaks or the lunch hour – or that the chats
generate new customers or revenue to the business.
5. Do: Be aware that instant messages can be saved. You may think IM is great
because you can let your guard down, make bold statements, chastise a
boss, employee or co-worker and have it all wiped away from the record when
you are done. What you aren't realising is that one of the parties to your
conversation can copy and paste the entire chat onto a Notepad or Word
document. Some IM services allow you to archive entire messages. Hence,
always be careful what you say, just as you would in an e-mail.
6. Don’t: Compromise your company's liability or your own reputation.
Statements you make in IM about other people, your company or other
companies probably aren't going to land you in court. But they could damage
your reputation or your company's credibility. Again, be careful about what
you say.
(Source: http://www.microsoft.com/business/en-us/resources/technology/
communications/10-tips-for-using-instant-messaging-for-business.aspx?
fbid=PAfflGY1jda)

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10.5 Communication with Shareholders

Shareholders are important internal stakeholders of an organisation and they
are the owners of the company. As the capital required to run large
organisations is huge, a group of proprietors and partners cannot fund all the
capital required. Therefore, capital to run an organisation is raised from the
public or private organisations or both and they become the stakeholders or
investors of the organisation. As organisations grow, shareholding is widely
scattered. Therefore, it is essential to retain the shareholders’ confidence in the
company’s management, through effective communication with them on a
regular basis.
There are two situations where shareholder communication is extremely vital:
 If the company is doing well and wants to expand its scope of operations
or diversify into unrelated areas. In this case, good shareholder relations
can help to raise the required capital and minimise borrowing from
banks and financial institutions.
 If the company is going through a crisis or difficult times, more
communication with shareholders is needed. Take the example of Coke
and Pepsi during the pesticide controversy. In such a situation, the
company must be open with its shareholders and explain the problem
clearly, including the steps being taken to overcome the crisis.
Crisis communication is an important, but often overlooked area of shareholder
communication. Lack of communication during a crisis encourages the
grapevine among shareholders and leads to false rumours. For example,
rumours may spread that the company is going to close down. On the other
hand, if you tell the truth, chances are that your shareholders will stand by you.
The appropriate media for communication with shareholders include both oral
and written channels. Periodic mailers must be sent to all shareholders, giving
a fair and truthful representation of the company’s results and progress on
various fronts. In areas where there is an aggregation or concentration of
shareholders, shareholder meetings and conferences must be held, making
presentations on the company’s progress. When the company is going through
a crisis, shareholders must be taken on project site and factory visits, to show
them the measures that are being taken to solve the problem.

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The overall guiding factor in communicating with shareholders must be that

they are the owners of the company.
Two examples are given below of two companies, Cognizant and Reliance that
are well known for effective shareholder communication.

Cognizant’s Communication with Shareholders

Cognizant is a leading provider of IT services, based in New Jersey,
USA. They have won national acclaim in the US financial media for being
one of the most shareholder friendly companies in the US.
In a survey where respondents were asked to rate various companies on
criteria such as financial performance, communication with shareholders,
investor relations and quality of corporate governance, Cognizant was
ranked the highest.
Shareholder friendly companies were described by respondents as those
that are known for their policy of openness and high quality of
communication with their shareholders.

Reliance’s Communication with Shareholders

In India, one out of every four investors is a shareholder of Reliance.
The company has set up a firm of Chartered Accountants as Internal
Security Auditors, to audit the transactions and communication with
shareholders.
The Board of Directors of the company has also appointed a
Shareholders’/Investors’ Grievance Committee, for examining and
responding to shareholders’ complaints with regard to transfer of shares,
non-receipt of balance sheet, declared dividends, etc. The Committee also
makes recommendations on how to improve the overall quality of investor
services.
Figure 10.3 depicts a sample letter written by Reliance to its shareholders.

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Fig. 10.3: A Sample Shareholder Letter

(Source: Adapted fromhttp://www.futureventures.in/letter-to-shareholders.htm)

Self Assessment Questions

9. Instant Messaging is a technology initially designed for having
_________________________ at workplaces. (Pick the right option)
a) One-to-many public chat
b) One-to-one public chat
c) One-to-one personal chat
d) One-to-many personal chat
10. Appropriate writing style for business IM is _____________________.
11. A good shareholder relation can help to raise the required
_______________ and ________________ borrowing from banks and
financial institutions.
12. Periodic mailers must be sent to all shareholders, giving a fair and
truthful representation of the company’s results and progress on
various fronts. (True/False)

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10.6 Summary
Let us recapitulate the important points discussed in this unit:
 Intranet is a business communication tool exclusively used for an
organisation's internal communication.
 Intranet helps organisation to discourage grapevine, facilitate pre-
meeting discussion and is considered superior to e-mail.
 Internet is very expensive to build, and demands regular maintenance.
 e-mails are widely used in business communication instead of face-to-
face communication.
 We have to follow the following principles to improve the efficiency of the
e-mails that we sent:
o Watch the content
o Pay attention to the tone
o Include a specific subject line
o Place important information first
o Explain attachments in the body of the e-mail
o Use the "to" and "cc" button carefully
o Pay attention to brevity, emphasis and white space
o Use the "WIFM" rule
o Tidy up your mail box
o Proofread your e-mail message
o Set aside time to check e-mail
 The following are the etiquette to be followed while using email for
business communication:
o Mind your P's and Q's
o Avoid using all caps
o Avoid symbols and acronyms
o Use friendly salutations and sign-offs
o Respond promptly
o Avoid personal messages at work
o Avoid sending 'junk mail'

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 Instant Messaging which was initially designed for having one-to-one

personal chat at workplaces, but now-a-days it is used for business
communication.
 One has to plan, write and then send instant messages in order to
ensure that the message is formal, clear and concise.
 Shareholders are the owners of the company as they provide the
necessary capital for running the company.
 It is very important to communicate correctly, regularly and truthfully the
status of the company and issues associated to the company to the
respective stakeholders.

10.7 Glossary
Grapevine: The informal transmission of information, gossip, or rumour from
person to person.
Human Resource: The department or support systems responsible for
personnel sourcing and hiring, applicant tracking, skills development and
tracking, benefits administration and compliance with associated government
regulations.
Savvy: Practical understanding or shrewdness.
Server: A computer that provides services used by other computers.
Spam: Flooding the Internet with many copies of the same message, in an
attempt to force the message on people who would not otherwise choose to
receive it. Most spam is commercial advertising, often for dubious products,
get-rich-quick schemes, or quasi-legal services.

10.8 Terminal Questions

1. What is an intranet?
2. What are the advantages and disadvantages of intranet?
3. Explain the principles that you need to follow while using emails for
business communication.
4. Write a note on Instant Messaging.
5. Which are the two situations wherein communication to the stakeholder
becomes vital?

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10.9 Answers

Self Assessment Questions

1. Website
2. True
3. c) Superior to email
4. False. In small organisations, it may be sufficient to appoint one person
to maintain intranet.
5. Informal, spontaneous
6. True
7. Attachments
8. All caps
9. c) One-to-one personal chat
10. Being more formal
11. Capital, minimise
12. True
Terminal Questions
1. It is an internal network that is exclusive to a particular organisation. It is
similar to a website and only the employees of the organisation are
authorised to access it. For more details, refer section 10.2.
2. Intranet discourages grapevine, facilitates pre-meeting discussion and
saves time. However, it is very expensive to setup the intranet and
operate it. For more details, refer sub-section 10.2.1.
3. While using emails for business communication watch the content, pay
attention to the tone, include a specific subject line, place important
information first, explain attachments in the body of the email, etc. For
more details, refer section 10.3.
4. Instant messaging is an alternate to reduce the emails for business
communication to certain extent. The three step process - plan, write
and complete can be used to successfully send instant message. For
more details, refer section 10.4.
5. You need to communicate frequently to the stakeholder about the status
of the organisation. However, when the company is doing well and when
it is going through some crisis the communication becomes vital. For
more details, refer section 10.5.
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10.10 Case Study

Broadridge International Shareholder Communications Programme

The Allianz Group is a leading global service provider in insurance, banking
and asset management. The company has achieved revenue of over 100
billion Euros in the year 2006. It serves more than 70 million customers
across 70 countries with a strong work force of 173,000. In Germany, Allianz
is a strong market leader in insurance sector.
The Allianz Group is also one of the world’s largest asset managers, with
third-party assets of 764 billion Euros under its management in the year end
2006. Also in 2006, Allianz SE - the parent company - became the first
company in the Dow Jones EURO STOXX 50 Index to adopt the legal form
of a Societas Europaea, a new legal structure for stock corporations.
Objectives:
In order to support its competitive strength and company values, Allianz
Group depends on number of factors. These include global diversification,
complexity reduction, a strong value-based management approach and its
employees. As a result of its success it has attracted lot of investors from
across the globe and the investors are the most important stakeholders of
Allianz. The Group's management gives high significance on sustaining
good relationships with their investors or stakeholders. Allianz uses
Broadridge International Shareholder Communications Programme to
successfully communicate with its large and diverse investor base in a more
direct and efficient manner. This has improved the Group's communication
with its international shareholders and helped to achieve highest standards
in corporate governance.
Outcomes
With the help of Broadridge communication programmes Allianz Group has
become more transparent among its stakeholders. “By working together with
Broadridge, Allianz is assured that any information intended for its non-
resident shareholders, whose custodian banks are linked to Broadridge’s
systems, is sent electronically on a real-time basis, thereby significantly
reducing our overall proxy costs”, said Dr. Elsbeth Pabst, Head of the Share
Register Service, Allianz SE. Allianz was able to receive a daily electronic

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report from Broadridge during the final ten days before the general meeting
deadline. This report indicated the number of shareholders who have been
informed of the impending general meeting, the custodial details of those
who have voted and where the votes are located on the return custodial
channel. Allianz is also provided with supplemental information including
exclusive statistics about the chain of intermediaries, the opportunity to verify
whether votes are received on time via the local custodians, as well as
additional data of use to the share registry.
Discussion Questions:
1. Why did Allianz use Broadridge International Shareholder
Communications Programme? Explain.
(Hint: Refer to section ‘Objectives’ in Case Study)
2. Did the use of Broadridge International Shareholder Communications
Programme help Allianz? Explain.
(Hint: Refer to section ‘Outcomes’ in Case Study)
(Source: http://www.broadridge.com/investor-
communications/international /Noblleed - Allianz Case Study.pdf )

Reference:
 Bovee, C.L., Thill, J.V., & Chaturvedi, M. (2009). Business
Communication Today. New Delhi: Dorling Kindersley (India) Pvt. Ltd.
E-References:
 http://www.microsoft.com/business/en-us/resources/technology/
communications/10-tips-for-using-instant-messaging-for-business.aspx?
fbid=PAfflGY1jda – Retrieved on January 19, 2012.
 http://www.broadridge.com/investor-communications/international/
Noblleed - Allianz Case Study.pdf - Retrieved on January 20, 2012.
 http://www.investopedia.com/terms/b/btob.asp#axzz1jykg1XMT –
Retrieved on January 20, 2012.
 http://www.rcom.co.in/Rcom/aboutus/ir/pdf/RCOM_CCM_Notice.pdf
– Retrieved on February 14, 2012.

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Business Communication Unit 11

Unit 11 External Business Communication – Writing

Business Letters

Structure:
11.1 Introduction
Objectives
11.2 Principles of Writing Business Letters
11.3 Types of Business Letters
Routine letters
Bad news letters
Persuasive letters
11.4 Format for Business Letters
Direct organisational plan
Indirect organisational plan
11.5 Summary
11.6 Glossary
11.7 Terminal Questions
11.8 Answers

11.1 Introduction
The last three units dealt with internal business communication, or
communication with internal stakeholders. The written channels for
communication with internal stakeholders – memos, circulars and notices
were discussed in detail. This unit will focus on communication with external
stakeholders through the written channel of business letters.
Business letters can be used to communicate different messages to a
variety of audiences. Business letters are also very different from personal
letters, in terms of the degree of formality, tone, style and format used.
Consider the following business scenario.

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Complaint and Response

ABC company ordered some office desks and chairs from XYZ company
for its new branch office. But when the order was delivered, ABC
company found that some of the chairs had not been shipped. So, the
purchasing manager of ABC company wrote the following letter to XYZ
company informing them of the mistake in the delivery. Table 11.1 shows
the complaint letter of the purchasing manager of ABC company.
Table 11.1: ABC Company’s Complaint Letter

21st October 2011

To,
The Sales Manager,
XYZ Company,
Bangalore – 560082.

Sir,
Ref: Our order no. BG/AB/1234 dated 15th September 2011 and your
letter dated 22nd September 2011.
We had ordered 35 desks and chairs from your company. You had
assured us in your letter dated 22nd September 2011 that we would
receive our consignment by 20th October. We received the
consignment on 19th October and found that only 35 desks and 25
chairs have been delivered.
We need to furnish the new office by 10th November. So, I request you
to send the missing chairs as soon as possible.
Yours sincerely,
A. Kapoor
When Mr. J. Kumar, the sales manager of the XYZ company received the
letter he conducted an inquiry. He sent an immediate reply to the
purchasing manager of ABC company apologising for the error and
assuring the quick delivery of the same. His response letter is shown in
table 11.2.

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Table 11.2: Response of XYZ Company

24th January 2012

To,
Mr A. Kapoor
Purchase Manager,
ABC Company,
Bangalore – 560040.
Dear Mr Kapoor,
We received your letter dated 21st October and are sorry that you did
not receive the complete consignment.
We have checked with our shipping department and according to our
records, your entire consignment has been sent. Some error has
occurred and we are checking with our transporting agent. We will
investigate the matter thoroughly and ensure that you receive the
missing chairs within a week.
Please accept my apologies.
Yours sincerely,
J. Kumar

This unit helps you to answer the following questions:

What are the different types of business letters?
What is the correct format for writing business letters?
This unit will explain some general guidelines for writing business letters, the
appropriate formats and the different types of business letters in detail.
Objectives:
After studying this unit, you should be able to:
 describe the principles of writing business letters
 categorise business letters into different types
 use the proper format and tone, when writing business letters
 develop good business writing skills

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11.2 Principles of Writing Business Letters

Business letters are used primarily to communicate with external
stakeholders such as consumers, intermediaries, government and bankers.
The principles of business letter writing are somewhat different from the
principles of writing general letters. Business letters are much more formal
than general letters. Before we go into the specifics of business letter
writing, let us look briefly at some of these principles.
The principles that govern writing business letters are:
 Consideration and courtesy – It is very important to retain the goodwill
of customers and other external public. A discourteous, rude letter can
make you lose business. Therefore, the business letter should be
extremely polite at all times and mindful of the “P”s and “Q”s, i.e., the
words “please, thank you and sorry.” Even if you happen to get a rude
letter from a customer, you must respond politely, in order to retain the
customer.
If the company has been at fault, it is important to apologise to the
customer for the mistake and for the inconvenience caused. The overall
tone should not be negative. For example, avoid saying “We cannot
grant your request.” Instead state it in a more tactful way, explaining the
reasons for not being able to grant the request. You can write, “As the
warranty period has expired, we are unable to grant your request of
servicing the product without any charges”. If you are sending a job
rejection letter to a candidate, it should be worded politely and in a
positive tone.
Consideration means that you should appeal to the reader’s interest.
The importance of stressing the “you attitude” rather than the “me
attitude” was dealt with in unit 5. This is similar to the language of
advertisements, which talk about the benefits of the product to the end
user.
For example, instead of saying “We will be open 24 hours”, say “You
can avail round-the-clock service.”
 Directness and conciseness – Business letters should be brief and to
the point, avoiding unnecessary details and round about expressions. A
typical Indian tendency is to be too wordy or ’verbose’, using

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redundancies and unnecessary words. Business letters should give

maximum information to the reader, using minimum words.
 Clarity and precision – Business letters should be clearly worded, and
avoid the use of jargon, technical terms and slang words. Concrete
words should be used, so that there is no ambiguity.
Example: Instead of saying “I received your communication”, it is better
to be more precise and say, “I received your letter.”
The letter should include a single main idea and paragraphs should be
used to elaborate on sub-ideas.
 Appearance – Apart from the content, the format, layout and overall
look of the letter should be equally appealing to the reader. Attention
should be paid to the quality of paper used. The margins should be
appropriate, including one inch on each side and one and a half inches
on top and at the bottom.
Figure 11.1 depicts a business letter and the standard components of it.

Fig. 11.1: Sample Business Letter

(Source: Adapted from http://www.nos.org/Secbuscour/cc14.pdf)

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Let us now discuss the components briefly.

 Heading – The heading of a business letter usually contains the name
and postal address of the business, E-mail address, Web-site address,
Telephone Number, FAX, etc. As shown in figure 11.1, the Heading
appears on top of the page. Usually organisations use letter head as the
heading which includes the company name and company logo as shown
in figure 11.1.
 Date – This must be located in the upper left hand corner.
 Reference number – This indicates the letter number, from which
department of the company the letter is being sent and the year. This
helps in future reference and it is given on the left hand corner after the
heading. Usually it is specific to the sender or organisation sending the
letter. For example, as shown in figure 11.1 we can write reference
number as AB/FADept./2003/27.
 ’To’ address – This includes the name and full address of the person or
the firm to whom the letter has to be sent. This is written on the left hand
side of the sheet below the reference number. Letters should be
addressed to the responsible head or the organisation as shown in the
figure 11.1.
 Subject line – It is a statement in brief that indicates the matter to which
the letter relates. It attracts the attention of the receiver immediately and
helps him to know quickly what the letter is about. For example, the
letter shown in figure 11.1 is a reply to letter and hence the reference
number and date of the letter for which the reply is being sent is
mentioned as the subject line. Subject line can come before attention
and after ‘To’ address or after salutation and before the body of the
letter.
 Attention line – Attention line usually is written above the salutation, but
sometimes, it may be included below the salutation, in order to ensure
prompt action. For example, “Attention: AB Kumar.
 Salutation – When addressing a firm, “Messrs” should be used before
the name of the firm. Since business letters are formal, the appropriate
salutation when addressing an individual is “Dear Mr/Ms, followed by the

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last name, rather than the first name, which is informal. If the gender of
the reader is not known, it is better to use a neutral salutation such as
“Dear customer” or “Dear investor”.
 Body of the letter – This includes an explanation of the main idea(s) of
the letter.
 Close – This is the ending of the letter and should be polite and friendly,
so as to retain goodwill. For example a standard close for a business
letter is “Yours faithfully” or “Yours sincerely” followed by the senders
signature, name and designation.
 Signature – It is written in ink, immediately below the complimentary
close. As far as possible, the signature should be legible. The name of
the writer should be typed immediately below the signature. The
designation is given below the typed name. Where no letterhead is in
use, the name of the company too could be included below the
designation of the writer as shown in figure 11.1.
 Enclosures – Sometimes, a business letter may include an enclosure
such as a pamphlet or a brochure, in which case this should be
indicated at the end of the letter by listing the name of the enclosures, as
shown in figure 11.1.
 Courtesy copy – This is required when copies of the letter are also sent
to persons apart from the addressee. It is denoted as C.C., as shown in
figure 11.1.
 Post script – This is required when the writer wants to add something,
which is not included in the body of the letter. It is expressed as P.S., as
shown in figure 11.1.
A well written business letter can serve as a powerful communication tool
and enhance the profitability of the business.
Self Assessment Questions
1. Business letters are used primarily to communicate with
_____________________________.
2. Every business letter should have a salutation, a body and a close.
(True/False)

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3. Sometimes, an ‘Attention Line’ may be included below the

__________________ in a business letter.

11.3 Types of Business Letters

Business letters may be used for a variety of purposes, including routine
correspondence, building good rapport, conveying pleasant or unpleasant
news and persuading customers to buy the company’s products. The types
of messages conveyed through business letters can be categorised into the
following three broad types:
 Routine messages or letters
 Bad news messages or letters
 Persuasive messages or letters
We shall now discuss these three categories in detail, including the
guidelines and appropriate format to be used in each case.
11.3.1 Routine letters
Routine letters are letters on routine matters pertaining to day-to-day
operations. Most of the business correspondence of the typical manager is
on routine matters. The most common types of routine letters are:
 Routine requests and replies
 Routine claim and adjustment letters
 Goodwill letters
 Other routine letters
Let us now discuss the features of these letters in more detail.
Routine requests and replies
A routine request is a letter from a customer, asking for information on the
company’s products, or for product catalogues and brochures. It is termed a
routine request, since the receiver of the letter is expected to do what is
asked in the letter, without having to be persuaded. In general, all
organisations respond to such requests spontaneously, since it is an
opportunity for them to promote their products. The response to such
requests is known as a routine reply.
Table 11.3 shows a sample routine reply letter in response to a customer
request.

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Table 11.3: A Sample Routine Reply Letter

October 27th 2011

Thomas Mathew
Purchasing Director
Home Security Products
6/1 Benson Cross Rd.,
Bangalore – 560 046.
Dear Mr. Mathew,
I am writing this in response to your request for information regarding our HP
340 portable printer, to be used by your marketing representatives with their
notebook computers when they travel.
I would like to inform you that the HP 340 is an advanced portable printer, which
incorporates the latest technology and is compatible with all types of notebook
computers. I would also like to provide the following specific answers to each of
your questions:
 The HP 340 is a laser printer, with a wide range of applications. It is quicker,
has more printout capability and consumes less ink cartridge than other laser
printers.
 The HP 340 is battery operated and comes with a back-up battery, so that it
may be used while travelling. It has a back-up of 5 – 6 hours, depending on
the uses of the printer.
 The HP 340 has a 15-inch cartridge and is compact and easy to carry while
travelling.
 The HP 340 comes with a three-year guarantee and all services will be free
of cost.
The product can be ordered either by calling our toll-free number 1-800-353-
7857, or online, through our website www.hewlettpackard.com. As an incentive
for purchase within the next one week, we are offering a 25% discount for our
first 500 customers.
I look forward to your order and would be happy to give you information
regarding our other products in future.
Sincerely,
Joe D’Silva,
Sales Manager,
Hewlett Packard Company,
Bannerghatta Rd.,
Bangalore – 560 028.

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The letter shown in table 11.3 is concise and to the point, providing answers
to each of the customer’s queries regarding the product. The last paragraph
provides details that make it easy for the customer to order the product,
along with a special incentive for early purchase. The close is positive and
tries to build a long-term relationship with the customer.
Routine claim and adjustment letters
A routine claim letter is written by a buyer or a customer to a seller,
requesting some type of action or adjustment, to correct a problem with the
seller’s product or service. It is more than just a letter of complaint and may
be written by an individual or an organisation.
The action sought in a claim letter may be replacement or repair of a
defective product, a full or partial refund, or just an apology for poor service
or unfair practices. A claim letter is considered as a routine letter, since the
seller or the organisation will normally comply with the request for remedial
action. For example, if you order a product from a catalogue that mentions a
particular price, but the seller charges you more, you can expect the seller
to respond to your request to make an adjustment in the price.
A routine adjustment letter is the seller’s response to a routine claim letter,
informing the buyer or customer about the action that has been taken. The
reason for the problem should also be explained in a detailed and
straightforward manner, along with the measures taken to prevent the
problem from recurring. The letter should sound credible, so that the
customer’s faith in the company and the product is restored.
Table 11.4 shows a sample routine claim letter regarding a defective
product.
Table 11.4: A Sample Routine Claim Letter

October 28th, 2011

The Customer Service Representative
Colour View Graphics
14, Airport Rd.,
Bangalore – 560 001.
Dear Customer Service Representative,
Subject : Inferior quality of colour slides

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The poor quality of the colour slides that you developed for me on March 20th
made them unsuitable for use in my marketing strategy presentation to my
marketing team last week. As a consequence, I had to use transparencies with
an overhead projector instead.
I have enclosed one of the dozen slides sent to me, as proof of the defective
quality. As you can see, the colours overlap and the type is not clear. The slides
do not meet the high quality standards promised in your recent colour
advertisement in Business Today.
Since I have already made the presentation for which I required these slides,
redeveloping them now would not solve the problem. Instead, I request you to
cancel the charge of Rs. 5000 in your invoice 3063 dated March 22 nd, which I
have not yet paid. I can return the remaining eleven slides to you, if required.
I am aware that mistakes like these happen sometimes, in spite of one’s best
efforts. I am confident that you will accept my request and correct this mistake
promptly.
Yours sincerely,
Walter Thompson,
Marketing Manager
Encl 1: Slide

In the letter shown in table 11.4, the buyer can reasonably expect the seller
of the defective product to make an adjustment by cancelling the charges,
since the quality of the slides is clearly inferior to what was promised.
Goodwill letters
These are routine letters that have no business objective, but are sent
purely for building good rapport with external stakeholders. Such letters may
express appreciation, sympathy or congratulations. Examples include letters
to express sympathy over a business setback, appreciation for winning an
award, gratitude for being on a panel of judges, or congratulations for
opening a new branch office.
Table 11.5 shows a sample appreciation letter for good performance.

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Table 11.5: A Sample Appreciation Letter

October 27th 2011

Mohan Kumar,
Team Lead,
Tech Software Pvt. Ltd.
6/1 Benson Cross Rd.,
Bangalore – 560 046.
Dear Mohan Kumar,
You have proven the sceptics wrong and accomplished what most said
was impossible.
There is no doubt that your recent achievements will be spoken of for
some time to come and that the admiration for your accomplishments is
felt by all of us within the industry as well as the general public.
Please accept my heartiest congratulations for your success.
Yours sincerely,
Joe D’Silva,
Project Manager,
Tech Software Pvt. Ltd.
6/1 Benson Cross Rd.,
Bangalore – 560 046.

Other routine letters

Routine letters can also be addressed to external audience other than
consumers. For example, letters inviting ’quotations’ may be sent to several
suppliers, asking for the prices of raw material or components. The idea is to
ensure getting the best price. Such letters should state the details of the
material required, the information needed regarding price, guarantee,
service, etc., provided by the supplier, and the time within which the material
is required. Once a quotation is accepted, an order letter is sent to the
supplier, placing the order for the required material.

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’Tenders’ are letters inviting a provider of a service, such as construction of

roads, to quote the rates for that particular service. They are usually sent for
work that is spread over a period of time.
Letters requesting purchase of goods on a credit basis, letters granting
credit and letters of collection addressed to customers are some other
common types of routine letters.
Table 11.6 shows a sample quotation invitation letter.
Table 11.6: A Sample Quotation Invitation Letter

10 February, 2010

Marketing manager,
XYZ Pvt. Ltd,
Twin towers, St Marcs Street
Bangalore – 560045
Dear Sir/Madam,
Sub: INVITATION TO QUOTE FOR EVALUATION OF THE NETWORK
TO PROMOTE LINGUISTIC DIVERSITY
You are invited by the Network to Promote Linguistic Diversity (referred
to as 'the ABCD') to submit a quotation for a firm price contract for the
Evaluation of the ABCD. The requirement is described more fully in the
attached specification.
Offer and Acceptance
Contractors are required to abide by their bids for 30 calendar days from
the date given for receipt of bids. Quotations shall be treated as
confidential. The ABCD reserves the right to accept such portion of the
bid as it may decide but does not bind itself to accept the lowest or any
bids.
Contract Period
The contract shall be carried out during April/May 2010 on a date suitable
to both parties (contractor and contractee). It is the intention of the ABCD
to present the report at its annual General Assembly meeting in June
2010.

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Form of Contract
Goods or services ordered by the ABCD as a result of the bid shall be in
accordance with the ABCD's conditions of contract. (Please note that the
ABCD is a subsidiary of the Welsh Language Board - the Terms and
Conditions are those of the aforementioned organisation.)
The Debriefing
Both successful and unsuccessful contractors who wish to have the
opportunity of debriefing should contact Ms. Heledd Daniel after award of
the contract (post@abcd.eu).
Yours sincerely,

Meirion Prys Jones

Chairman, ABCD
ABCD Pvt. Ltd.
5-7 Market Chambers, St Marcs Street
Bangalore 560045
Phone: 00 44 (0) 29 20 87 80 41
Fax: 00 44 (0) 29 20 87 80 01
Website: www.npld.eu

11.3.2 Bad news letters

A bad news letter conveys unpleasant news to customers or other external
stakeholders. Typical examples of this type of letter are rejection of
customer claims or requests for adjustments, job rejection letters to
prospective employees, letters giving news about sudden price increases,
products being discontinued or about problems faced by the organisation,
such as losses and lay-offs. When conveying bad news, the letter should be
written tactfully and worded in a positive manner.
Table 11.7 shows a sample bad news letter refusing a customer claim.

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Table 11.7: A Sample Bad News Letter

October 28th, 2011

Mr. John Smith,
The Dean
XYZ School of Business
Cunningham Rd.,
Bangalore – 560 034.
Dear Mr. Smith,
We make no money when our customers are forced to take long trips by
train, rather than by flying Kingfisher Airlines and when that happens, we
try to find out the reasons.
A review of the March 19th flight records of the cancelled Kingfisher
Airlines flight 1256 shows that it was scheduled to leave at 6 am and was
cancelled at 5.30 am, because of foggy weather. Passengers were asked
to remain in the boarding area and those who did were rebooked on flight
1257, which departed an hour later at 7 am. This flight arrived in
Bangalore just an hour later than the scheduled arrival of flight 1256.
Therefore, our ticket agent was correct in refusing to grant a refund on
tickets to you and other passengers who did not take the later flight.
You have mentioned in your claim letter that you are a frequent flyer of
Kingfisher Airlines. Although we cannot grant you a refund, I have asked
our Scheduling Department to add your name to our mailing list, for
receiving a free subscription to our in-flight magazine. A complimentary
copy of our current flight schedule is also enclosed. From now on, you
will know exactly when every Kingfisher Airlines flight arrives and departs
from Bangalore airport.
Sincerely,
Service Representative,
Kingfisher Airlines
Encl 1: Complimentary copy of current flight schedule

In the letter shown in table 11.7, the bad news, namely, the refusal to grant
a refund to the passenger for not boarding the flight is conveyed indirectly.

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The airline tries to compensate for the bad news, by offering a free
subscription to their magazine and a complimentary copy of their flight
schedule.
11.3.3 Persuasive letters
The most common type of persuasive letter is a sales letter addressed to
customers, persuading them to buy your company’s product. A sales letter
is similar to an advertisement and uses the same “AIDA” (Attention, Interest,
Desire and Action) format. This means taking the consumers through
different mental stages in a particular sequence – first getting their attention,
creating interest by highlighting unique features of the product, inducing
desire by convincing them that the product is better than others and then
motivating them to try the product. Sales letters are used to sell industrial
products such as machinery, consumer durable products and other high-
value items.
Table 11.8 shows a sample sales letter written in the persuasive format.
Table 11.8: A Sample Sales Letter for a Home Security System

October 27th, 2011

Dear Home Owner,
The saying goes that an Englishman’s home is his castle. Do you see
your home as an investment in real estate or as your castle? Is it a
means of getting tax exemptions, or a place where you can unwind and
relax after a stressful week at work?
Homes should be viewed as places where we feel safe and free from
outside intrusions.
Unfortunately, this is not the case, since recent statistics show that 10%
of households in Bangalore city were robbed last year. How can you
protect yourself?
Home Security Products offers a simple and dependable solution – the
SafeHome Burglar Alarm System, which can protect up to 2500 square
feet of your home. Just plug it in, adjust the sensitivity to the size of the
room and turn the key.
SafeHome’s microprocessor screens out normal sounds like dogs
barking, babies crying rain and traffic. Only hostile sounds such as the

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breaking of glass will trigger the alarm. The alarm is also loud enough to
alert the neighbourhood and to drive away the smartest burglars.
You may wonder what might happen if a clever burglar disconnects the
electricity to your home. You need not worry, since SafeHome has built-in
batteries that recharge automatically and ensure that it operates in spite
of power failures. The best thing about SafeHome is the ease of
installation. You simply have to mount it on a wall and plug it in.
Security now comes at a price that you can afford – just Rs. 999, along
with a one year warranty and a 10 day return policy, to ensure complete
satisfaction.
With SafeHome, burglaries will soon be a thing of the past. Ordering it is
easy – just call our toll-free number 1-800-222-3333 and use your credit
card. SafeHome will be home delivered to you within a couple of days.
Soon, your home will be a haven of peace.
Sincerely,
National Sales Manager
Home Security Products

Note that in the letter shown in table 11.8, a dramatic question is asked to
grab the attention of the reader, followed by startling figures – the fact that a
high percentage of homes have been robbed. Interest is then created by
mentioning the product’s Unique Selling Proposition (USP), or the features
and benefits that are unique to the product. The product is highlighted as
simple, dependable and easy to install. Desire is induced by overcoming
any doubts or objections that the reader may have, such as the product
functioning during a power failure. Finally, the reader is motivated to take
action, by making it easy for him/her to order the product, by calling toll free
and using a credit card. The product benefit is reinforced at the end of the
letter.

Self Assessment Questions

4. Which of the following letters inform the buyer or customer about the
action that has been taken?
a) Claim letters
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b) Adjustment letters
c) Goodwill letters
d) Persuasive letters
5. Letters giving news about sudden price increases are examples of bad
news letters. (True/False)
6. The most common type of persuasive letter is a _____________.

11.4 Format for Business Letters

Unlike general letters, business letters should be written following a specific
plan or format. The following two alternative types of formats may be used,
depending on the type of message that is conveyed:
 The direct organisational plan or the deductive pattern
 The indirect organisational plan or the inductive pattern
We will discuss each of these in detail, with an example of each.
11.4.1 Direct organisational plan
The direct organisational plan is followed for all routine letters and for
messages that convey good news. The pattern followed is:
1. Present the main idea first
2. Provide explanations, reasons, details and background information
3. End with a friendly closing
The advantages of following this plan are:
 The first sentence can be written with very little hesitation and there is a
logical flow to the letter, since the explanation or details follow the main
idea.
 Presenting the main idea first will attract the attention of the reader.
 If pleasant news is being conveyed to the reader, presenting it first puts
the reader in a good frame of mind. He/she will be more inclined to read
the rest of the letter.
 Once the reader gets the main idea, he/she can quickly scan through
the rest of the letter, thus saving time.
The routine claim and adjustment letters given in tables 11.9 and 11.10 are
written using the direct organisational plan.

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Table 11.9: A Sample Claim Letter Written Using the

Direct Organisational Plan

Dear Customer Service Representative,

I am writing this to request you to replace the music CD “Golden Tunes of
the Sixties”, which you had mailed me last week.
I was very impressed with your TV advertisement of the CD “Golden
Tunes of the Sixties”. Your statement “100% satisfaction guaranteed”
made me place an immediate order and send you a cheque for Rs. 1000.
This seems to be an outstanding CD with great music, but it arrived with
a visible scratch on one side, which distorts the music when it is played.
I am confident that you will live up to this guarantee. I am returning the
CD to you and would like another one in first class condition. In case you
do not have one in stock, I would like to request a refund.
Sincerely,
John Smith

Note that in the letter shown in table 11.9, the action or adjustment is
requested in the very first sentence. The second paragraph explains the
details supporting the request for action.
The closing is friendly, expressing confidence that the request will be
granted.
Table 11.10 shows a routine adjustment letter, granting a request for
exchange of defective shirts, also written in the direct organisational format.

Table 11.10: A Sample Adjustment Letter Written Using the Direct

Organisational Plan

Dear Customer,
In view of the fact that you are a regular customer, we are sending you
two new wash-and-wear shirts for free, to replace the two shirts that
turned grey, due to use of strong bleaches. Your account will not be
charged.
Compared to conventional shirts, our shirts stay whiter, remain more
wrinkle-free and last longer. However, they must be hand washed rather
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than machine washed with bleaches, in order to keep them white and to
maintain them in good condition. When you take the shirts to your
laundry, just ask them to follow the washing instructions on the label.
We will be sending you our annual clearance sale catalogue in a few
days and look forward to your future orders.
Sincerely,
Customer Service Representative

In the letter given in table 11.10, the main idea – granting the customer’s
claim for exchange of shirts that have changed colour, due to use of a
washing machine – is mentioned in the very first sentence, following the
direct plan. An explanation follows, giving the reasons for the spoiled shirts
and instructions for future care. The letter ends with a friendly closing.
11.4.2 Indirect organisational plan
The indirect organisational plan or format is followed for bad news letters
and for persuasive letters. When conveying unpleasant news, the letter
should be worded tactfully and try to minimise the disappointment of the
reader. Since the bad news should be de-emphasised, it is better to place
this at the end, rather than at the beginning of the letter. Therefore, the
indirect plan with the following pattern is recommended:
1. Begin the letter with a ’buffer’. This is a neutral or positive statement that
lessens the impact of the bad news. For example, if the bad news of a
price increase is being conveyed to a customer, begin with a statement
about the company’s philosophy of ’customer satisfaction.’
2. Present the facts, a background analysis and the reasons for the bad
news. Try to convince the reader that the decision is inevitable.
3. State the bad news, or the main idea, in positive or neutral language.
Avoid apologising to the reader.
4. Close in a friendly manner. Offer some kind of compensation, or special
incentive, to make up for the bad news and to retain the reader’s
goodwill.
An example of a bad news letter written in the indirect organisational plan is
shown in table 11.11.

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Table 11.11: A Sample Bad News Letter Written in the Indirect Organisational
Plan

October 30th 2011

Mr John Stanley
ABC Distributors
# 11, Queen’s Rd.,
Bangalore – 560 046.
Dear Mr. Stanley,
Distributors have always been the force behind our success. ABC
distributors, in particular, who have been our main distributors for over
three decades now, have contributed significantly towards our company’s
sales.
A review of our half yearly report, however, indicates that in South India,
we have experienced a significant decline in market share in the frozen
food segment. This is mainly because people are conservative in their
eating habits. They are becoming more health-conscious and are opting
for fresh products. Due to this increasing trend, we have decided to
phase out this line of products, for which you have been our main
distributors.
However, we have plans to launch several new products in the future.
We will be introducing a new range of ready-to-eat products for working
women very soon, for which we will be pleased to offer you the
distributorship. Enclosed are a few samples of our new range of products
for your consideration.
Looking forward to a positive response from you,
Sincerely,
Marketing Manager
Encl 1: Samples of our new products.
Note that the letter shown in table 11.11 begins with a ’buffer’ statement in
the opening paragraph, giving credit to the distributor for having contributed
to the company’s sales in the past. This lessens the impact of the bad news
that follows in the next paragraph, namely, dropping a product line
distributed by them. The background and the justification for the decision to
drop the product line are explained in the second paragraph. In order to

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compensate for this bad news, the distributorship of a new range of

products is offered, along with some product samples.
The indirect organisational plan or the inductive pattern is also used when
writing persuasive letters such as sales letters. In a sales letter, the main
idea is asking the customer to buy your company’s product. This cannot be
stated right away, since the reader first has to be convinced about the
benefits of the product, before he can be asked to buy or try it. Therefore, it
is necessary to delay the main idea, or asking for action, until you have
presented the reasons. In other words, the reasons will be presented first,
then the main idea, followed by a friendly closing.
The sample sales letter shown in table 11.8, for a home burglar alarm
system, was written in the AIDA format. The AIDA format is essentially an
indirect organisational plan. It tries to capture the reader’s attention first, and
then creates interest in and desire for the product, before asking for
purchase of the product.

Do’s and Don’ts of the Business Letter:

 Remember to use formal language and avoid any typographical
errors.
 Start the letter with a friendly opening.
 State your reason for writing a business letter.
 Always have an idea to whom you are writing.
 Specify necessary details like time, date, venue, etc.
 Be to the point and straight forward.
 Write the letter with a polite tone but avoid being overtly personal.
 Keep the letter short and concise and with specific details.
 Do not write long introductions and unnecessary statement.
 Check for grammatical errors and spelling mistakes.
 Avoid usage of slangs or messaging language as that does not
indicate professionalism.
 If possible the business letter should not be hand written and should
be typed as it looks more professional and the letters are visible.
 Close the letter by thanking the person for his/her time and
consideration.
(Source: http://www.letterwriting.co.in/dos-and-donts-of-the-business-
letter.html)

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Activity 1:
Imagine that you are the Marketing Manager of a consumer durables
company. You receive a letter from a lady customer, claiming that a frost
free refrigerator that she purchased from you is a defective one and
demanding an adjustment in the form of a replacement. Write a tactful
reply to her, explaining why an adjustment is not possible.
(Refer Table 11.3 for detailed guidelines.)

Additional Reference:
Roberts, J. (1998). Business Letter Writing: Your Questions and
Answers. Great Britain: Trotman and Company Limited.

Self Assessment Questions

7. A letter expressing a goodwill message should follow the ___________
organisational plan.
8. Letters following a direct organisation plan end with a friendly closing.
(True/False)
9. A ________________ is an opening statement in a bad news letter.
10. In a persuasive letter, the indirect plan is called the _____________
____________.
11. The direct organisational plan is used when writing persuasive letters
such as sales letters. (True/False)

11.5 Summary
Let us recapitulate the main points discussed in this unit:
 Just as memos, circulars and notices are used to communicate with
internal audiences, business letters are written channels that are used to
communicate with external audiences.
 Business letters are much more formal than general letters and should
be written keeping in mind the following principles:
o Courtesy and consideration
o Directness and conciseness
o Clarity and precision
o Appearance and format
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 The components of a business letter include:

o Date
o “To” address
o Salutation
o Attention line
o Subject line
o Body
o Close
o Enclosures
 The messages conveyed through business letters may be divided into
the following three broad categories:
o Routine messages
o Bad news messages
o Persuasive messages
 Most business letters are written to convey routine messages regarding
day-to-day operations. Such messages may be conveyed through the
following types of letters:
o Routine requests for product information and routine replies
o Routine claim and adjustment letters
o Goodwill letters
o Letters inviting quotations from suppliers
o Letters placing orders with suppliers
o Credit and letters of collection
 Business letters are written in either of the following two formats:
o The Direct Organisational Plan
o The Indirect Organisational Plan
 The direct organisational plan includes the following steps:
1. Present the main idea first
2. Give explanations and reasons
3. End with a friendly closing
 All routine letters follow the direct organisational plan. The advantage of
this format is that it gets reader’s attention, encourages him/her to read
the rest of the letter, saves time and has a logical flow.

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 The indirect organisational plan is used for conveying bad news

messages and persuasive messages such as sales letters. It includes
the following steps:
1. Present the reasons and explanations first.
2. Tell the main idea.
3. End with a friendly closing.
 The logic behind using the indirect organisational plan in a bad news
letter is to minimise the impact of the bad news, by delaying it till the end
of the letter. The bad news should be expressed in a positive manner
and some compensation offered to the reader, in order to make up for
the bad news.
 A persuasive letter such as a sales letter also follows the indirect
organisational plan. In this case, the AIDA format is used to first gain
attention and convinces the reader about the product’s benefits, before
asking for action or purchase of the product. The main idea, which is the
call for action is presented at the end.

11.6 Glossary
Letterhead: The heading at the top of a sheet of letter paper, usually
consisting of a name and an address.
Letter head: The heading at the top of a sheet of letter paper, usually
consisting of a company's name, logo and the address.
Letter of collection: A written notification of the pending amounts sent to
customers whose payment is due.
Stakeholders: A person, group or organisation that can directly or indirectly
affect or be affected by an organisation's actions, objectives and policies.

11.7 Terminal Questions

1. Explain the principles of letter writing.
2. Write a note on types of letter.
3. Write a letter to your customers, expressing the bad news that the price
of a particular product has been increased. Use the appropriate format
to present reasons and offer compensation.

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4. Reply to a request from a trading company, asking for distributorship

and information on your company’s range of beauty/cosmetic products.
5. Select a company of your choice. Write a sales letter in the AIDA format
to a prospective customer, persuading him/her to buy the company’s
product.

11.8 Answers

Self Assessment Questions

1. External stakeholders
2. True
3. Salutation
4. b) Adjustment letters
5. True
6. Sales letter
7. Direct
8. True
9. Buffer
10. AIDA format
11. False. The indirect organisational plan is used when writing persuasive
letters such as sales letters.
Terminal Questions
1. The important principle of letter writing are consideration and courtesy;
directness and conciseness; clarity and precision; and appearance. For
more details, refer section 11.2.
2. The various types of letters are routine requests and replies, routine
claim and adjustment letters, goodwill letters and other routine letters.
For more details refer section 11.3.
3. Begin with a ’buffer’ statement in the opening paragraph. Give the
background and the justification for the decision to increase the price in
the second paragraph. For more details, refer sub-sections 11.3.2,
11.4.2.
4. Begin the letter thanking the distributor for the interest shown. Briefly
describe the main principles of your company. Then list the features and
benefits of your products. Close the letter on a positive note to build a

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long-term relationship with the distributor. For more details, refer sub-
sections 11.3.1, 11.4.1.
5. First gain attention and convince the reader about the product’s benefits,
before asking for action or purchase of the product. For more details,
refer sub-sections 11.3.3, 11.4.2.

Reference:
 Guffey, M. E. (2010). Essentials of Business Communication. 8th ed.
USA. : South-Western Cengage Learning.

E-Reference:

 http://www.nos.org/Secbuscour/cc14.pdf – Retrieved on January 23,

2012.

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Business Communication Unit 12

Unit 12 Other Forms of

External Business Communication
Structure:
12.1 Introduction
Objectives
12.2 Communication with Media through News Releases
Format and guidelines for a press release
Sample press release
12.3 Communication about the Organisation through Advertising
Corporate advertising
Types of corporate advertising
Guidelines for effective corporate advertising
Product advertising
Format for product advertising
12.4 Summary
12.5 Glossary
12.6 Terminal Questions
12.7 Answers
12.8 Case Study

12.1 Introduction
In the previous unit, we studied the principles of writing business letters. We
also studied types and format of a business letter. Letters are basically used
for communicating with stakeholders, employees, customers, suppliers and
media. However, when the organisations have to communicate with masses
such as consumers, media, society, etc they use advertisements.

Pepe Jeans is the market leader in the international premium jeans wear
segment with the highest market share of 25 per cent. In an interview
Chetan Shah, Country Head, Pepe Jeans London was asked "How has
your advertising and communication complemented the brand Pepe
Jeans?"
He replied saying, "Pepe Jeans London has a global advertising
campaign in all the countries, wherever it has presence. It believes in
giving away a consistent brand message across the world wherein

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localisation of advertising campaigns distorts the brand identity. All Pepe

advertising campaigns portray the brand identity, represented by the
youth who speak of an attitude that says ‘I am what I am’. The visuals are
strong and captivating, creating a deep impact on the target audience.
Pepe Jeans London has signed Portuguese footballer Cristiano Ronaldo
who plays for Manchester United as the Pepe face for 2005. Ronaldo is
paired with supermodel Jessica Miller. Ronaldo is dubbed as the next
David Beckham. He is not only a sensational footballer, but also a youth
icon. He is fashionable and handsome, and has a great physique. He
carries a unique captivating style. Pepe Jeans saw an exciting
opportunity in him. We all know that Jessica is setting the European ramp
on fire. They perfectly gel well with Pepe’s characteristic young attitude.
The advertising campaign featuring Cristiano Ronaldo and Jessica Miller
rolled out globally including India from April 2005. Challenging,
provocative and visually stimulating visuals of Pepe’s advertisement
campaign highlight skylines on billboards, and are also seen in print
media across the country."
(Source: http://www.exchange4media.com/brandspeak/brandspeak.asp ?
brand_id=75)

This unit helps to answer the following questions:

What are the types of advertising?
How AIDA format is used in advertisement campaign?
In this unit, we will study the use of press release as a tool for business
communication. We will also study significance of corporate and product
advertisements in business communication.

Objectives:
After studying this unit, you should be able to:
 define press release
 list the elements of a press release
 identify the types of corporate advertising
 explain AIDA format

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12.2 Communication with Media through News Releases

Press releases are “brief, printed statements that outline the major facts of a
news story in journalistic style”1. Today, it is better known as a “news
release”, as the story may be carried by other media also, such as
television. A press or a news release is a form of “publicity”, which is part of
public relations. Public relations involve maintaining goodwill and projecting
a favourable image of the organisation among the public both internal for
example, employees, stakeholders, etc and external for example,
consumers, general public, competitors, etc.
A news release tends to be more credible than advertising, which is a paid
form of communication (refer section 12.3 for more about advertising). News
releases have great impact on public opinion, it is therefore important to
write news releases carefully, making them as interesting and as
newsworthy as possible.
The purpose of a news or press release is to announce new developments
in your company to the media, which in turn carries the story for the benefit
of the public at large. For example, new developments could be anything
ranging from new products and services, to new appointments and
promotions, new facilities, involvement in community projects, awards and
achievements, joint ventures, seminars, mergers, takeovers, etc. As the
news release communicates all this to the public at large, it must be
accurate, timely and complete.
12.2.1 Format and guidelines for a press release
A news release must be made appealing to television producers and to the
editors of magazine and newspaper.
The general format of a press release includes the following elements:
Dramatic opening sentence or paragraph
The first sentence or paragraph must highlight the new development as
something unique, as a first time achievement or as a Unique Selling
Proposition (USP). A USP is a unique feature specific to a particular
company that the competitors do not have and which sets you apart.

1 http://www.answers.com/topic/press-release
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For example, the opening sentence or paragraph could start by saying “For
the first time in history”. That is first talk about an innovative new technology
introduced by the company, the company’s development in a backward area
or the fact that a new entity has been created.
Answers to key questions
The press or news release must provide key information that answers
questions such as ‘Where?’ (i.e. location), ‘When?’ (i.e., timing), ’Why?’
(i.e., reason or justification) and ’How?’ (i.e., strategy). This information must
be provided right at the beginning.
For example, if a new factory is being opened, in the press release you can
mention details such as ‘where it is located’, ‘why it is being opened’ and
‘when it is opened’.
If a new product is being launched, ‘when is it being launched’ and ‘why is it
launched at the specified time’ and ‘how does the product perform
compared to other products in the market’.
Benefits to the community
The press release must also explain whether the new development will have
a positive or an adverse impact on certain sections of the community.
For examples, if the company is launching a car, it can mention the eco-
friendliness i.e. high mileage, less carbon emission, etc., of the car in its
press release.
Company credentials
The press release must emphasise the past credentials, reputation and
proven strengths of the company, so that it enhances credibility.
For example, the fact that the company has launched similar products or
embarked on similar projects in the past must be highlighted, as evidence of
the company’s ability in that area.
Some specific guidelines that you can follow while writing a press release
are as follows:
 If the matter must be released immediately, write “For immediate
release” on top of the press release.

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 When writing captions, the first letters of all the words in the caption
must be all capital letters. The caption must gain the reader’s attention.
Hence, it is a good practice to write it in one sentence.
 The first paragraph of the press release must state the name of the city,
state, month, day and year.
 The body of the press release must elaborate on the information
contained in the introductory paragraph, answering the questions
“where”, “when”, “why” and “how.” The body must include more than one
paragraph and the concluding paragraph must summarise the key points
of the release.
 The release must also be made visually appealing, with proper use of
spacing between paragraphs, appropriate font size, type face, etc. The
text must be formatted attractively and the length must not exceed two
double-spaced pages or approximately 400 words. It must also be proof
read for typos, spellings and punctuation mistakes.
12.2.2 Sample press release
Table 12.1 depicts a press release sample.
Table 12.1: Sample Press Release

FOR IMMEDIATE RELEASE

Contact : Patricia Wells Magic Moments (logo)
DY & R Public Relations Mumbai – 560 046
(080) 2521 2777 Extn. 309
NEWS RELEASE
MAGIC MOMENTS GIFT GALLERY
COMING TO BANGALORE
Mumbai, March 2008. A Mumbai based retail chain that specialises in
greeting cards, music, stationery and gift items, plans to enter
Karnataka this summer, with at least ten stores, a majority of them being
located in Bangalore city.
Mr. Stanley Pinto, owner and president of Magic Moments Gift Gallery,
announced this week that potential franchisees are looking at three sites
in the North Bangalore area. Two other stores are expected to open in
Mysore and Mangalore.

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“What we have done is to take four businesses that are traditionally found
in separate store settings and to combine them under one roof”, says
Pinto. He is of the opinion that the stores will attract heavy traffic, since
customers find one-stop shopping very convenient.
Magic Moments specialises in 1) Greeting cards for all occasions and
festivals; 2) Music audio cassettes and CDs of all types of music,
including Indian and Western classical, rock, pop and jazz; 3) Stationery,
including hand-made paper, wrapping paper, note books and note pads;
and 4) Gift items such as curios, wall hangings, costume jewellery and
scented candles.
Mr. Pinto, now 30, opened the first store in Mumbai at the age of 20. He
began franchising three years later. Today, Magic Moments has 25
stores and 100 more are under development, through master franchise
arrangements.
What makes these stores so successful? “Their unique range of
products, special ambience, high profit margins, low overheads and focus
on customer service have all contributed to the growth and popularity of
the chain”, according to Pinto.
“While some local stores may have a few similar products, no other
national chain can match us for the sheer breadth of merchandise and
quality of service”, claims Pinto. “The gift business is booming and we
have carved a niche for ourselves in this area that will be difficult to
challenge”, he says.

The press release shown in table 12.1 includes the following:

 Criticality of the release that is mentioned at the top of release i.e., ‘FOR
IMMEDIATE RELEASE’.
 Name and telephone number of the person who can answer questions,
on the top left corner.
 Date, venue and summary of the most important information in the
opening paragraph.
 An emphasis on reader benefits, namely ‘shopping under one roof’.
 Important information placed in the beginning of the press release’s
body.

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Activity 1:
Identify any new development in an organisation of your choice and
prepare a news/press release on the same, following the guidelines
discussed in this unit.
(Refer section 12.2 for detailed guidelines.)

Self Assessment Questions

1. A press release comprises brief, printed statements that outline the
________________ facts of a news story in ____________________
style. (Pick the right option)
a) Major, journalistic
b) Major, professional
c) Minute, journalistic
d) Minute, professional
2. The purpose of a news or press release is to announce new
developments in your company to the ____________________.
3. The press release must also explain whether the new development will
have a positive or an adverse impact on certain sections of the
community. (True/False)
4. The ___________________ of the press release must elaborate on the
information contained in the introductory paragraph.

12.3 Communication about the Organisation through

Advertising
Advertisements in the mass media such as magazines, newspapers and
television are used by organisations to communicate with prospective
customers, both about the organisation, as well as its products. As depicted
in figure 12.1, advertising may therefore be categorised into two broad
types.

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Fig. 12.1: Types of Advertising

Let us now discuss each of these two types of advertising briefly.

12.3.1 Corporate advertising
Corporate advertising can be defined as advertising that sells the
organisation to its various public. In this case, the organisation is the
product. Corporate advertising is more a public relations activity than a form
of advertising, as it has no immediate commercial purpose. Its aim is merely
to inform and build a positive image of the organisation in the society. While
the overall objective of corporate advertising is to project a positive image of
the organisation as a whole, some of the specific objectives are as follows:
 To create positive attitude towards the organisation – Sometimes,
consumers may have negative perceptions towards an organisation,
based on the belief that the organisation is not a responsible corporate
citizen. For example, public may believe that the organisation is
responsible for environmental pollution or destruction of forests and
other natural resources. In such a situation, corporate advertising aims
to create a more positive attitude towards the organisation, by correcting
these beliefs.
For example, there was a negative perception among consumers that
Nike was using child labour in some of its factories, to manufacture
sports shoes. Nike made use of corporate advertising to overcome these
perceptions.
 To project the personality, culture and values of an organisation –
As India’s leading industrial groups, the Tatas and the Birlas have been
the oldest and the most frequent users of corporate advertising, to
communicate about their entrepreneurial ability, culture and values.
Even countries may use this form of advertising to achieve similar

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objectives. For example, Dubai advertises to project an image of itself as

“a land of investment, sports and investment opportunities”.
 To safeguard corporate reputation – This form of corporate
advertising is done when the company is going through a crisis.
For example, during the pesticide controversy, Coke released
advertisements featuring Hindi film actor, Aamir Khan going to the Coke
factory and laboratory, along with the Managing Director, declaring that
Coke was safe to drink and free of pesticides. This helped to an extent
to restore their damaged reputation.
 To make an organisation better understood – Sometimes
organisations go in for this form of corporate advertising, in order to
make themselves more visible and to make consumers aware that they
have a presence in several areas.
For example, the United Breweries (UB) Group ran a corporate
advertisement to highlight the fact that UB was not only in breweries, but
also had interests in healthcare (hospitals) and education.
The ITC Group also advertises to highlight their presence in areas as
diverse as cigarettes, hotels and ready-to-eat foods.
 To project the organisation as socially responsible – This refers to
corporate advertising for a social cause, highlighting the company’s role
in social development. The objective is to communicate the company’s
corporate social responsibility.
For example, the UB Group ran an advertisement with the message
“Drinking and driving don’t mix”, to educate public that drinking alcohol
and driving is not safe.
12.3.2 Types of corporate advertising
Corporate advertising not only has different objectives, it has also become
wider in scope, going beyond its traditional role of image building. Today, it
encompasses many different types of advertising. Figure 12.2 depicts the
various types of corporate advertising.

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Fig. 12.2: Corporate Advertising Types

Let us now briefly discuss the types of corporate advertising depicted in

figure 12.2.
1. Corporate identity advertising – This type of corporate advertising is
done purely to communicate the organisation’s corporate identity such as its
name, logo for example, the Nike “swoosh”, trademark or brand name and
slogan. When the organisation’s identity changes, this is communicated
through corporate advertising.
For example, the American fast food outlet, “Kentucky Fried Chicken”,
changed its name to “KFC”. This name change was communicated through
corporate identity advertising.
2. Institutional advertising – This type of corporate advertising is aimed at
special public such as the media, suppliers and dealers, to correct
communication problems with them.
3. Public Relations (PR) advertising – This is the name given to corporate
advertising that aims to change the negative attitudes of the public towards
the company’s products.
For example, the advertising done by Coke and Pepsi following the
pesticide controversy and the advertising done by Cadbury’s, which was
found to have worms in its chocolates, to protect their reputation are
examples of this type of corporate advertising.
4. Issue or ‘advocacy’ advertising – This type of corporate advertising
projects a company’s viewpoint or stance on a controversial issue like
environmental pollution.

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For example, when the pollution issue started affecting motorcycle

companies, which were accused of emitting fumes from their vehicles, Hero
Honda ran an advertising campaign, where they highlighted the fact that
their vehicles were contributing to a pollution-free environment.
5. Public service advertising – This refers to corporate advertising to
promote a social cause, such as awareness of AIDS, family planning or
prevention of drunken driving.
6. Corporate umbrella advertising – This type of corporate advertising is
aimed at consumers and tries to link a new or weak product to more
established brands in the corporate ‘umbrella’ or with the company’s well
established range of products. The idea is to generate sales for the weak or
new product.
For example, Richardson Vicks, better known for its ’Vicks’ brand and
prescription drugs, clubbed its beauty products such as ’Oil of Olay’ with its
prescription drugs, in a single advertising campaign. This helped to create
awareness of the company’s entire range of products and generated sales
for ‘Oil of Olay’.
7. Corporate sponsorship – This is also a form of corporate advertising, as
a company pays to get itself linked with some sporting or other event, where
it gets to display its logo and corporate message. This creates a lot of
visibility for the company.
For examples, Pepsi sponsors World Cup Cricket and Kingfisher sponsors
the Derby or the horse racing event. Their names are now automatically
associated with these sporting events.
12.3.3 Guidelines for effective corporate advertising
As compared to product advertising, corporate advertising still accounts for
only a small fraction of the total advertising budget in most organisations.
However, the benefits derived by a company from corporate advertising are
enormous. Effective corporate advertising creates visibility, promotes better
understanding of the company, projects the company as a responsible
citizen and improves consumer attitudes towards its products. The
consumers’ and investors’ confidence on the company increases only when
they have a positive opinion about the company. This is because consumers
are more likely to try products from a company that they regard highly,

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rather than from a faceless or nameless company. Investors are more likely
to buy shares from a company of which they have a favourable image.
Given the benefits of corporate advertising, you have to prepare the
advertisements carefully and make it as attractive as possible. Some points
to be kept in mind when developing a corporate advertising campaign are:
 Adequate budget – Corporate advertising is expensive, as it has to be
done in a sustained manner. For example, Birla, India’s leading
industrial house has been doing corporate advertising since it first
started as a trading company. Corporate advertising is to be looked at
as a long-term investment, because of the social and economical
advantages a company can gain from it. Therefore, a substantial amount
needs to be set aside as the advertising budget.
 Specific messages – The message of a corporate advertisement needs
to have a hard focus and it must clearly highlight the company’s
objectives, vision and nature of business. However, product advertising
on the other hand, may sometimes have a softer focus, through the use
of “emotional” appeals.
 Creative and memorable advertisements – If corporate advertising is
to create a positive image of the company over a long term, a high
degree of creativity is needed, so that the advertisements are
remembered for a long time to come.
 Evaluation of effectiveness – It is important to establish clear-cut
objectives for corporate advertising such as image change or attitude
change. This makes it easier to measure whether these objectives have
been achieved or not, after the campaign has been run. Corporate
advertisements must be evaluated for their effectiveness from time to
time, so that the message can be fine tuned if needed.
Therefore, through corporate advertising an organisation can create a brand
value for its wide range of products through a single advertisement
campaign. This also helps to improve the publicity factor for the
organisation.

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Self Assessment Questions

5. Product advertising is more a public relations activity than a form of
advertising. (True/False)
6. _________________ is done purely to communicate the organisation’s
name and logo to public or consumers. (Pick the right option)
a) Institutional advertising
b) Advocacy advertising
c) Corporate identity advertising
d) Public Relations advertising
7. _______________________________ tries to link a new or weak
product with the company’s well established range of products.
8. Corporate advertising is ______________________, as it has to be
done in a _______________________ manner.
12.3.4 Product advertising
Product advertising aims to persuade prospective customers to buy the
organisation's products or services. Its ultimate purpose is to sell the
organisation's products.
In product advertising, the message must be persuasive enough to convince
people to buy the product or at least try it out once. Apart from the message,
the medium must also be chosen carefully. Sometimes, the medium itself ’is
the message’. This means that the medium by itself can convey certain
qualities about the product, without the need for a verbal message. Take the
simple example of a perfume that is advertised in a glossy, colour magazine
for high society women. The message conveyed, even without the use of
words, is that it is a premium quality product, meant for the sophisticated
and elite.
Like corporate advertising, effective product advertising can also build
positive and lasting images over the long run.
For example, one of the best examples of this is the advertisement for
“Marlboro” cigarettes, which features open spaces, an imaginary country
and a rugged cowboy, with the caption “Come to Marlboro Country.” The
medium of advertising for this campaign is the ’billboard’ or ’hoarding’, as it
is known in India. The visual of the cowboy and the open spaces create a
very masculine and rugged image for the cigarette brand. Such was the

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impact of this visual, that even non-smokers took to smoking after seeing
the advertisement. This campaign is several decades old, but has been
sustained over time, without any changes. It is displayed on billboards
across the world and transcends cultural and geographical boundaries.
Therefore, product advertising, if creative enough, has the power to
communicate and persuade without words or with minimum words and
visual impact. Consider the following examples:
 An advertisement for ’Heineken’, a famous brand of beer, features a
visual of the product with a single line caption that says “When you
make a great beer, you don’t have to make a great fuss.” The message
conveyed that the product speaks for itself and that words are not
required to describe its qualities.
 Another famous advertisement for ’Chivas Regal’, a whisky brand,
features a visual of broken pieces of the bottle, with liquid flowing and
with the message “Have you ever seen a grown-up man cry?”
 The Indian oil company, ONGC carries out its advertisement campaign
with the message, “Making Tomorrow Better”. This helps to convey the
vision of ONGC.
 One of India’s leading TV manufactures, Onida marketed its TV
products with a slogan “Neighbour’s envy, owner's pride”. This was used
effectively to gain customer’s attention.
 The leading milk and milk products manufacturer of India, Amul’s
advertisement slogan, “Amul, the taste of India” is one of the most
popular advertisement slogans in the country. The advertisement slogan
and campaign were able to create a unique and popular brand value for
Amul.
12.3.5 Format for product advertising
All product advertising contains a persuasive message that follows a
particular format, known as the ’AIDA’ format. AIDA stands for Attention,
Interest, Desire and Action. This means that persuasive messages must
achieve the following:
1. Capture attention – As the average consumers are bombarded with
several advertisements at the same time, they will only pay attention to
those advertisements which stand out above the others. Therefore,

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attention-getting techniques must be used to make the consumer notice the

advertisement. Asking a question to arouse curiosity, having a bold
headline, making a dramatic statement or mentioning startling facts, are
some examples of attention-getting techniques.
For example, an advertisement for a home burglar alarm mentions some
alarming statistics in the form of a dramatic question, right at the beginning.
It says, “Are you aware that over 5% of Indian homes were burgled last
year? How can we protect ourselves?”
2. Create interest – Once the reader or viewer has noticed the
advertisement, it is important to create some interest in the product, by
stressing the benefits to the consumer. One way of doing this is by selecting
and stating a Unique Selling Proposition (USP). This is a unique feature that
only your product has and which offers a specific benefit to the consumer.
For example, the USP of ‘Clinic’ a dandruff control shampoo is that it
contains an ingredient that moisturises the scalp and prevents dandruff. Or,
a car may include a safety device that other cars do not have. Thus, a USP
creates interest by linking the product features to the consumer benefits.
3. Induce desire – After creating basic interest in the product, a persuasive
advertisement must try to convince the consumer that the product is just
right for them. This is achieved by overcoming any objections or problems
that the consumer may have such as high price, difficulty in installation or
functioning of the product.
For example, the home burglar alarm advertisement might try to convince
the consumer by conveying the message, “Are you worried that a smart
burglar might disconnect the electricity? Don’t worry; our alarm has built-in
batteries that ensure that it operates in spite of power failures.”
4. Motivate action – This is the closing, where the consumer must be
asked to do something. There are two types of closing – “hard-sell” and
“soft-sell.” A ’hard-sell’ closing asks the consumer to act immediately, which
is usually in the form of buying the product.
For example, “Buy now, while stocks last” or “Buy now, before special offer
ends.”

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The advertisement must also encourage easy action, by providing an

address or a toll-free number to call and order the product.
A “soft-sell” closing is more of a subtle call for action. Its purpose is to build
loyalty to the brand and gently remind the consumer about the brand.
For examples, “Come test drive the Nano to experience the sheer thrill of
driving the car, at any of our dealer outlets.” Or an advertisement line of a
famous brand of paint says “Whenever you see colour, think of us”.
The AIDA format is also known as the “Hierarchy of Effects” model, as it
takes the consumer through different mental stages in a particular
sequence, ranging from unawareness of the product to learning more about
it and then motivating to try or buy it.
Self Assessment Questions
9. In product advertising, the ______________________ must be
persuasive enough to convince people to buy the product.
10. What aspect of AIDA format focuses on making an advertisement
stand out above the others’ advertisements?
a) Capture attention
b) Motivate action
c) Create interest
d) Induce desire
11. The AIDA format is also known as the _________________________
model.

12.4 Summary
Let us recapitulate the important points discussed in this unit:
 Press release can be defined as a "brief, printed statements that outline
the major facts of a news story in journalistic style".
 A press release format includes the following elements:
o Dramatic opening sentence or paragraph
o Answers to key questions
o Benefits to the community
o Company credentials
 Organisations communicate to the masses of public or customers with
the help of advertising using the mass media.

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 Advertising can be classified as corporate and product advertising.

 Corporate advertising is more a public relations, as it has no commercial
purpose and its main aim is merely to inform and build a positive image
of the organisation in the society.
 The various types of corporate advertising are:
o Corporate identity advertising
o Institutional advertising
o Public Relations (PR) advertising
o Issue or ’advocacy’ advertising
o Public service advertising
o Corporate umbrella advertising
o Corporate sponsorship
 Product advertising is carried out to persuade prospective customers to
buy the products or services of an organisation.
 Organisations follow Attention, Interest, Desire and Action (AIDA) format
for advertising their products.
 According to AIDA format, the advertisement must grab the attention of
the consumer, later create interest in the customer for the product,
induce desire for the product in the customer and at the end must
motivate the customer to buy the product.
 Product advertising has the objective of persuading the consumer to buy
or to try out a company’s product.
 Product advertising can also be made highly effective and persuasive,
through powerful visuals and minimum words.
 Product advertising follows AIDA format, which includes the following:
1. Capturing attention through an attention-getting device.
2. Creating interest through a Unique Selling Proposition.
3. Inducing desire by convincing the consumer that the product is right
for him/her.
4. Motivating action to make the consumer buy the product.

12.5 Glossary
Credential: Testimonials showing that a person is entitled to credit, or has
right to exercise official power.

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Entrepreneurial: A business person willing to take risks in order to make a

profit.
Installation: The act of installing or giving possession of an office, rank or
order, with the usual rites or ceremonies.
Investors: An individual who commits money to investment products with
the expectation of financial return.

12.6 Terminal Questions

1. List the elements of press release general format.
2. Write a note on the specific objectives of corporate advertising.
3. Explain the different types of corporate advertising.
4. Write a note on product advertising.
5. Explain AIDA format for product advertising.

12.7 Answers

Self Assessment Questions

1. a) Major, journalistic
2. Media
3. True
4. Body
5. False. Corporate advertising is more a public relations activity than a
form of advertising.
6. c) Corporate identity advertising
7. Corporate umbrella advertising
8. Expensive, sustained
9. Message
10. a) Capture attention
11. Hierarchy of effects

Terminal Questions
1. The general format of a press release comprises a dramatic opening
sentence, answers to key questions, benefits to the community and
company credentials. For more details, refer sub-section 12.2.1.

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2. Corporate advertising aims at creating positive attitudes towards

organisation, projecting the personality, culture and values of an
organisation, safeguarding corporate reputation, etc. For more details,
refer sub-section 12.3.1.
3. The different types of corporate advertising are corporate identity
advertising, institutional advertising, Public Relations (PR) advertising,
advocacy advertising, public service advertising, corporate umbrella
advertising and corporate sponsorship. For more details, refer sub-
section 12.3.2.
4. Product advertising is carried out to gain the attention of the consumer
to sell the product. For more details, refer sub-section 12.3.4.
5. Attention, Interest, Desire and Action format is followed for creating a
persuasive message for a product advertisement. For more details, refer
sub-section 12.3.5.

12.8 Case Study

Amul’s Butter Advertisement Campaign

The Gujarat Cooperative Milk Marketing Federation (GCMMF) is one of
India's largest food products marketing organisation. It successfully
carried out the Amul butter campaign using billboards at strategic places
in cities and towns. The campaign started in the year 1967 by introducing
a cartoon character as its brand ambassador. The character was a
round-eyed, chubby-cheeked girl, dressed in a polka-dotted frock winking
her eye is one of the most popular advertisement characters of India.
Objective and challenge of the campaign
The Amul wanted to break its dull, boring image that it had built over the
years through a new advertisement campaign. In India, food was
something one couldn't afford to fool around with. It had been taken too
seriously, for too long. Sylvester daCunha who took over the
advertisement campaign for Amul, in 1966 decided to change it by
bringing some humour to Amul's milk products advertisement campaign.
Also the main focus of Amul’s advertisement campaign was to reach
consumers mainly housewives and at the same time to compete with
Polson's (Amul's competitor) mascot 'The Butter Girl'.

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The main challenge of the campaign was to bring excitement to Amul

butter advertisement with humour. At the same time campaign was also
supposed to ensure that it did not offend the Indian mass.
Approach
Round-eyed, chubby-cheeked Amul girl character, dressed in a polka-
dotted frock which was used posted on the billboards at major place in
the city streets was a huge hit. The tag line “Utterly Butterly Delicious
Amul” also added to the success of the advertisement campaign.
The use of humour was welcomed by the Indian consumers and the
advertisement campaign became a huge success. This campaign helped
Amul as one of the most established milk products companies of India.
During 1960s and 1970s Amul campaign reached new heights. The Amul
girl becomes a social observer. She has a comment on everything like
politics, sport, film, social awareness, etc. The message was conveyed
with humour. This had an everlasting impression on Indian consumers as
the advertisements were able to squeeze laughter from them.
Amul advertisement campaign from 1960s to 1990s is considered to be
the most successful advertisement campaign in India.
Amul advertisement campaigns have not changed much over the years.
The Amul girl is still used by Amul in its advertisements. Many characters
that Amul has brought like the Amul Baby are used even today effectively
in Amul’s advertisement campaigns. The Amul advertisements are one of
the longest running ads based on a theme, now vying for the Guinness
records for being the longest running ad campaign ever.
Conclusion
Even though the advertisement involved humour, it ensured that it did not
offend the sentiments of Indian consumers. The campaign was a huge
success and helped Amul to expand its business across India. The
campaign introduced the strategy of gaining the consumer attention by
using humour in advertisements first time ever in India. The use of
billboards for the advertisement campaign during 1967 in the city of
Bombay won the hearts of many consumers and enabled to establish
Amul butter in the city. Many Indians have grown with the advertisement

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campaign and cherish the memories that the campaign has given to
them.
The character also enhanced the brand value and image of Amul milk
product range. A direct result of campaign success is also reflected in the
sales as the sales of Amul butter increased for less than one million
rupees in 1967 to over five billion rupees in 2007.
The continuous innovation in the advertisement campaign and relating it
to the current issues helped Amul to stand out among its competitors.
Amul parlours are today present on campuses of Infosys, Wipro, IIM-A,
IIT-B, Temples, Metro rail and railway stations in Gujarat.
Discussion Questions:
1. What is the objective and challenge faced by Amul?
(Hint: Refer to section ‘Objective and challenges of the campaign’ in
the Case Study)
2. Do you think the advertisement campaign of Amul was a success?
Explain.
(Hint: Refer to section “Approach” and “Conclusion” in the Case
Study)
(Source: http://bmsproject.weebly.com/uploads/2/4/3/5/2435652/amul-
_marketing_assignment.pdf)

Reference:
 Guffey M. E. (2010). Essentials of Business Communication. 8th ed.
USA: South-Western Cengage Learning.
E-References:
 http://bmsproject.weebly.com/uploads/2/4/3/5/2435652/amul-
_marketing_assignment.pdf – Retrieved on February 7, 2012.
 http://www.answers.com/topic/press-release – Retrieved on February 8,
2012.

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Unit 13 Internal and External Business Communication

– Writing Business Reports
Structure:
13.1 Introduction
Objectives
13.2 Report
13.3 Types of Business Reports
13.4 Format for Business Reports
13.5 Steps in Report Preparation
13.6 Summary
13.7 Glossary
13.8 Terminal Questions
13.9 Answers
13.10 Case Study

13.1 Introduction
In the previous unit, we studied the use of press release as a tool for
business communication. We also learnt the two types of advertising –
corporate and product advertising used for business communication.
Another important form of business communication is business reports.
These are used to communicate with both internal and external
stakeholders of an organisation. In this unit we will learn types and format of
a business report.

Report on Employee Evaluation

For Donald Williams, this particular process has been uncharacteristically
difficult. He knows that a decision must be made. Despite the many hours
and tireless analysis put forth, a sound decision seems unobtainable.
Williams is the Human Resource (HR) Director for Direct Supply. For the
past couple of days, he has been reviewing the conduct and work
production of one of Direct Supply's recently hired employees. The
employee, Thomas Crawford, has completed his third month of
employment with Direct Supply, ending the mandatory ninety-day
evaluation period for all new employees. At the completion of this period,
a performance evaluation meeting is scheduled. At Direct Supply, the

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process of evaluating employee performance is the responsibility of the

Human Resource Director and the supervisor of the employee being
reviewed. The Human Resource Director reviews the employee's files
and discusses the files with the employee's supervisor.
The supervising manager is required to submit a progress and summary
report of a subordinate worker before a scheduled evaluation meeting
takes place. In the case of Crawford, as for any other employees working
in the sales division, the report consisted mostly of sales statistics,
expense reports and call sheets. The information obtained from this
report will be used to make evaluations of both the overall volume of
productive work credited to an employee and the progress made by the
employee during the initial probationary period.
In addition to the summary and progress report submitted by an
employee's supervisor, the HR Director may also request other bits of
information from various departments within the company. One such
report that is produced by the IT department is referred to as a
technology report. Included in this report is information about an
employee's access to the company's electronic services and information.
Information about system login times, session durations and file access is
maintained for each employee by the company's system software.
For Crawford, the progress and summary report filed by Barker was
outstanding. Much of the report focused on the Patterson Foods, which is
currently one of Direct Supply's largest accounts. Despite conducting
much of his business outside the office, Crawford does spend a portion of
each day working in the office. Tasks such as producing sales and
expense reports are produced using customised software.
(Source: http://www.cerias.purdue.edu/education/post_secondary_
education/past_offerings/curriculum_development/ethical_social_prof_iss
ues/case_study_ramaswamy3.php)

The following questions arise after reading the scenario:

What is a report?
What are the types of report?

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In this unit we will define what a business report is and its types. We will
also study the format of a business report and steps that you need to follow
for creating an effective report.
Objectives:
After studying this unit, you must be able to:
 define business report
 identify the different types of business reports
 explain the format of a business report
 list the steps for creating an effective report

13.2 Report
A business report may be defined as “an orderly and objective presentation
of information that helps in decision making and problem solving.”1 It may be
in oral or written form.
The key words in the above definition are ’orderly’, ‘objective’, ’information’,
’decision making’ and problem solving’. ’Orderly’ means that a report flows
in a logical sequence for example, from a definition of the problem, to
analysis and recommendation of solutions. ‘Objective’ means that a report is
written by avoiding the use of the first person, so as to avoid bias. The
passive voice is used rather than the active voice, so as to give less
importance to the doer of the action.
For example, “A survey was conducted with a sample size of 100
respondents” is passive voice and “I conducted a survey among a sample
size of 100 respondents” is active voice.
A report presents ‘information’ or ‘authentic facts’ and data. Subjective
judgments and recommendations must be based on data.
Finally, a business report, unlike a scientific or academic report, must aid
‘decision making’ and ‘problem solving’. For example, a report on the market
feasibility of a new product must help management to decide whether to
launch the new product or not.
A business report has certain unique characteristics, they are:

1Ober, S. (2004). Contemporary Business Communication, 5th ed, pp 332. New Delhi:
Dreamtech Press.
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A report varies in purpose, length, format and complexity

The purpose of a business report may be to inform, analyse or persuade. A
report that seeks to merely inform the reader is a simple report and it states
facts with no persuasive intent. An example of a report with this purpose is a
report on company policies and procedures. Other examples are sales
reports, monthly departmental reports and project reports showing progress
on projects.
Sometimes a report may have the twin purpose of informing as well as
analysing. Merely providing data may be meaningless, unless the data is
analysed and interpreted. All research reports like market research reports
based on surveys, come under this category. The information gathered from
a survey is analysed and then presented in a meaningful form.
A business report may also have the purpose of persuading or
recommending a course of action. A research report may also make some
suggestions, based on the data and the analysis of the data. A marketing
strategy report submitted to top management and proposals to the
government seeking funds for building a research facility or for some other
purpose are other examples of persuasive reports.
Business reports vary from simple one-page memo formats, to more
complex reports such as ’manuscript reports’, running to several pages.
Research reports are the most complex and the longest of all reports. The
purpose of the report determines the length, format and complexity. The
different formats will be discussed in detail in section 13.4.
Report quality is affected by quality and accuracy of the data - A report may
be perfectly written, but may still be of poor quality, if the data collected is
not accurate or if the process of data collection itself is faulty. For example,
a research report may be well written and presented, but the sample
selected for the survey may be too small or not representative enough of the
population.
Regarding accuracy of data, take the example of a report recommending
purchase of an overhead projector (OHP) for the company’s conference
room. Suppose you have been asked to study the features of different
brands of OHPs and come up with a recommendation. If you recommend a

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brand of OHP based on its bulb life of 100 hours instead of 300 hours by
mistake, your recommendation itself may be incorrect.
Thus, reports serve as a vital source of information for analysis and decision
making. Hence, it must be accurate and clear.

13.3 Types of Business Reports

Reports can be classified based on several criteria, including there use
(progress and financial reports), purpose (informational, analytical and
persuasive reports), frequency of preparation (annual, monthly, weekly and
hourly reports), length (short and long reports) and whether they are internal
to the business or are used outside the business.
The most common types of business reports may be divided into the
following categories:
 Periodic reports – These are reports that are prepared on a regular
basis, for both internal and external audiences. Their purpose is solely to
inform. Examples of this type of report are:
o Routine management reports – These are reports such as
equipment reports and sales updates. These reports are prepared
for internal audiences such as top management and shareholders.
o Compliance reports – These are submitted to external
stakeholders, such as the government, stating compliance with
regulations such as environmental norms.
o Progress reports – These reports may be prepared for both internal
audiences as well as for external audiences such as customers. A
project report stating progress on a long-term project is an example
of this type of report.
 Proposals – Unlike periodic reports, the purpose of a proposal is to
persuade. Proposals may be prepared for both internal and external
audiences. Examples of proposals include research proposals and
marketing strategy proposals to top management, proposals to the
government to grant funds for building a research facility and proposals
to consumers to buy a company’s products.
 Policies and procedures – The purpose of these reports is solely to
inform. They are also prepared only for internal audiences. Examples

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include reports on company policies and procedures, written by top

management and sent to all employees. This is part of downward
communication.
 Situational reports – These are one-time, exceptional reports that are
prepared when a unique event occurs. For example, if sales of the
company have shown a significant decline, a study may be carried out to
determine the reasons for declining sales and a report prepared on the
findings. Similarly, a market feasibility study may be carried out before
launch of a new product and a report prepared, based on the study. The
purpose of such reports is usually to inform, analyse and persuade.
You can choose the type of report based on your requirement, therefore it is
very important to analyse and understand the requirement before you
choose the report type.
Self Assessment Questions
1. A business report may also have the purpose of persuading or
recommending a course of action. (True/False)
2. A report may be perfectly written, but may still be of poor quality, if the
______________________ is not accurate.
3. Identify the type of a report that was submitted to government stating
that the company is following the environment regulations. (Pick the right
option)
a) Compliance reports
b) Routine management reports
c) Situational reports
d) Policies and procedures
4. The purpose of ________________ and __________________ reports
is solely to inform.

13.4 Format for Business Reports

The format for a business report will depend on the length of the report.
Length also determines the degree of language formality.
The simplest format for a report is the memo format, which is a one-page
report. For example, calling attention to a meeting or to a problem may
require only one page or less and could be written in a memo format. Such
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reports will also be more informal than longer reports. (Refer to Unit 9 for
more details on memos).
As the complexity of the problem increases, additional pages are required.
The writer of the report based on the length of the report decides the format
of the report with some extra parts such as title page, Table of Content,
appendix, etc. For example, a title page may be added to the report to
impress the reader or a letter addressed to the reader may be included to
indicate that the report is complete and is being sent. This is known as a
’letter of transmittal’.
Therefore, as the size of the report increases, a number of extra parts can
be added, in order to assist the reader in understanding the report. The
report will then take upon a different format.
Consider the two-page persuasive proposal as shown in table 13.1, written
in a ’manuscript’ format, which includes a caption, subheads and a
summary, to help the reader in understanding the report clearly. A one-page
memo report does not require any of these items.
Table 13.1: Proposal in Manuscript Format

SAMPLE PROPOSAL
THE BUSINESS WRITER’S HOTLINE
A Proposal submitted by Prof. Steve Martin
Silicon Valley College of Bangalore, Karnataka, to the Fulbright
Foundation
April 3, 2008
All business writers have queries about writing style from time to time.
The Business Communication faculty at Silicon Valley College of
Bangalore often receives calls from business writers, asking questions
about the tone, writing style and format of business letters and reports.
Although a couple of business writers’ hotlines exist nationwide, none is
available in the city of Bangalore.
Thus, the Business Communication Faculty of Silicon Valley College
requests that a grant for Rs. 1.5 lakhs be awarded, for the purpose of
setting up and operating a Business Writer’s Hotline for one year. This
will benefit business executives in Bangalore city and the students,
faculty and staff of Silicon Valley College.

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Benefits of the Project

The project will fund the establishment and functioning of a Business
Writer’s Hotline, in which senior professors of Business Communication
of Silicon Valley College will answer telephone queries, on the subject of
grammar, writing style and format. This service will be offered at no cost
to users and will be available five days a week, from Monday to Friday.
This hotline will:
 Enhance business productivity, by reducing errors in writing that can
cause communication problems, unnecessary delays or even wrong
decisions.
 Provide a useful service to business writers, including business
executives, college students and faculty, who presently have no other
way of clarifying their doubts and questions.
 Project a favourable image of the college, as an asset to the business
community in Bangalore.
Procedures
A Business Communication faculty member will be available to answer
any telephone enquiries, during working days, between 9 am and 6 pm.
Any calls received outside regular working hours will be recorded on an
answering machine and a telephone response provided, before the end
of the next working day.
A dedicated phone line will be installed for this purpose and incoming
calls will be forwarded to the faculty members, so that they can work on
other matters simultaneously.
Faculty members will only provide consultancy services and try to answer
any reasonable questions related to grammar, punctuation, spelling,
format, etc. They will not undertake any written work, edit anyone’s
writing or answer any questions that require in-depth research. Two
books will serve as the standard references – The Oxford English
Dictionary and The Economist Style Guide.
The hotline will begin operating on the first day of the academic calendar
year, after the grant has been awarded and will continue for one year. A
small advertisement announcing this service will appear in leading local
dailies, such as the Times of India and The Deccan Herald.
The extent to which the service is used and the types of questions asked
will be recorded. These records will show whether the needs of business

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writers are being met by this service and whether further training must be
given to business executives.
Budget
The budget recommended for the Business Writer’s Hotline for the first
year of operation is as follows:
Purchase of five copies each of the two
suggested reference books Rs. 5000
Purchase of one telephone answering machine Rs. 2000
Rental of one telephone line Rs. 12000
(12 months @ Rs. 1000 pm)
Long distance charges (12 months - estimated at
Rs. 2000 pm). Rs. 24000
Advertisements (12 months) Rs. 100000
Miscellaneous Rs. 7000
Total Rs. 150000
Note: The faculty members will not charge for their time.
Faculty Qualifications
All the faculty members of Silicon Valley College have doctoral degrees
in their field and an average of ten years’ teaching experience in
Business Communication and related areas. Therefore, they are well
equipped to answer the questions that are likely to come up.
Summary
The setting up of a Business Writer’s Hotline will improve the
communication skills and writing quality of business executives in
Bangalore. The costs indicated above are small, compared to the
benefits that will be derived from the service by business executives,
students, faculty of the college and the college itself.
Reports running to several hundreds of pages like research reports require
a greater number of assisting items. They will also be much more formal in
terms of language used and methods of presentation, compared to a memo,
which is informal. Figure 13.1 shows a business report’s assisting items and
the respective sub-items.

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Fig. 13.1: Assisting Items and Sub-items of a Report

Let us now discuss the assisting items in detail.

1. Preliminary parts – It comprises the letter of transmittal, title page,
content page and executive summary.
a) Letter of transmittal – This is a letter attached to the report when it
is sent to readers. It serves as a greeting and as an introduction to
the report.
For example, in a research report, the letter of transmittal shown in
table 13.2 is addressed to the person in an organisation who has to
authorise the study. The first sentence presents the report and
reminds the reader that it was requested. It makes a brief mention of
the methodology used in the study, the main findings and the
recommendations.
Table 13.2: Sample Letter of Transmittal
Dear Mr. Johnson,
Here is the report of the study you requested, on the feasibility of opening
a branch office in the city of Bangalore.
A study of the social and economic factors of the community, an analysis
of savings patterns and of the potential competition, indicates that an
additional savings and loan branch office could be accommodated in
Bangalore.
I hope this report will assist you in making a decision. Please let me
know, if you wish to discuss the report any way.
Sincerely,
Donald McDonald
Research Associate

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b) Title page – As the title page creates the first impression on the
reader, it must be visually appealing. The title must be clear and
descriptive.
This page must also mention the person who requested or authorised
the report, person who prepared the report and date on which the
report was submitted.
For example, the table 13.3 depicts a sample title page of a report.
The first row indicates the parts of the title page. The second row is
the actual title page.
Table 13.3: Sample Report Title Page

Title “THE FEASIBILITY OF OPENING A BRANCH

SAVINGS AND LOAN OFFICE IN BANGALORE”
Person who Prepared for:
requested Mr. William Johnson
Chairman
Western Savings and Loan Association
Mumbai
Person who Prepared by:
prepared Donald McDonald
Research Associate
Indian Market Research Organisation
Bangalore
Date of April 1st, 2008
submission
c) Table of Contents (TOC) page – The purpose of having a TOC or
contents page is to help the reader locate information, when a report
is several pages long. It indicates how the report is organised by
listing the headings of topics and subtopics along with the respective
page numbers. If the report contains several graphs, tables or figures,
they must be listed separately on a separate page, under a heading
such as “List of Tables and Figures”. The contents page must be
prepared from the outline, after writing the report.
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d) Executive summary or synopsis – This is included in long reports

to let the reader know what the report is all about, without having to
read the entire report. The summary is a condensed form or an
overview of the contents in the report. In a research report, the
executive summary must include the purpose of the study, a brief
statement of the problem, the research methodology, the main
findings, conclusions and recommendations. The executive summary
may be one to two pages in length.
2. Body of the report – This is the main text and is the heart of the report.
It must include sections such as:
a) Introduction – This includes the background and purpose of the
study.
b) Problem statement – A clear definition of the problem or
fundamental issue that needs to be resolved is needed.
c) Research methodology – A detailed explanation of the type of
research that needs to be carried out, methods used for data
collection, sample size, procedure and questionnaire design must be
included in this section.
d) Analysis, findings and conclusions – The data collected must be
analysed, later the findings must be presented and interpreted in a
meaningful manner. Inferences must be made based on the findings.
The findings could be presented in tabular or graphical form.
e) Recommendations – A report whose purpose is to persuade must
include suggested courses of action or solutions to the defined
problem, based on the findings.
3. Addenda or annexes – A report may also include a variety of items
after the body of the report. Some of the main items in this section
include:
a) Bibliography or references – This is listing of all sources of
information – books, journals, research papers and websites that
were referred to for preparing the report. The purpose of including
this section is to present documented evidence from people who are
considered authorities in their field, in support of our own statements.
It gives due credit to authors who were consulted, in the absence of

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which the author of the report can be accused of plagiarism or

copying. Including a bibliography also reveals the depth of the study.
The references can be cited in the following format:
For book references:
Ellis, M., & Johnson, C. (1994). “Teaching Business English”,
Oxford: Oxford University Press.
For websites or webpage:
http://en.wikipedia.org/wiki/Wikipedia - Retrieved on February 7th
2012.
b) Appendix – This is a section that includes material relevant to the
study, but is too technical or complicated to be included in the body
of the report. This is because it would hinder the reader’s ability to
grasp the message. Therefore, it is given in the addenda. For
example, cover letters for questionnaires, the questionnaires
themselves, maps, summaries of raw data, computerised models
and mathematical or statistical formulas. Each item in the appendix
section must be categorised and labelled as Appendix A, Appendix
B, etc., and a suitable title must be given for each appendix
category.
c) Index – This is incorporated in order to help the reader to easily
locate any topic or concept that is mentioned in the report. It is a list
of terms or keywords mentioned in the report, used especially as an
aid in searching for information. It is generally not a part of most
business reports, although it is used in some proposals,
prospectuses and annual reports. It includes a list of key terms in
alphabetical order, followed by all the page numbers on which the
key terms are used.
d) Glossary – This is an explanation of technical terms or jargon used
in the body of the report. This section is needed only when the report
is of a highly technical nature and the reader is a layperson, who is
not familiar with the technical terms used. If the reader is an expert in
that particular field, the glossary may be omitted. It may also be
omitted if the number of such terms is small, in which case, they may
be explained in the form of ’footnotes.’ Where, a footnote is a note

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placed at the bottom of a page of a book or manuscript that

comments on or cites a reference for a designated part of the text.
Business reports need not necessarily include all the items listed
above. In fact, it would be rare to find all these items in a single
report. They have been mentioned only to illustrate all the possible
parts that a business report could include. For example, the
preliminary parts and the addenda items only support the body of the
report. The purpose, type, length and formality of the report would
determine which of the items to include.
Table 13.4 shows the sample report.
Table 13.4: Sample Report

On the choice of a suitable site for a branch factory in

Madhya Pradesh
To
The Directors,
Pawan Glass Works,
New Delhi.
Terms of Reference
The sub-committee was appointed by Resolution No. 345 adopted at a
meeting of the board of Directors, held on 10th January, 2006. The sub-
committee, consisting of Mr. Ravi Prakash, convener, Mr. Rajiv Mehta
and Mr. Vijay Singhania, were authorised to choose a suitable site for a
branch factory for producing glassware in Madhya Pradesh.
Procedure
The sub-committee held three meetings on 13th, 29th January and 28th
February.
The members also met the Government and Municipal authorities to
enquire about permission, licenses, and water and power connections.
Findings
The sub-committee felt that Indore is the most suitable city for a
glasswork factory. The choice seems to be appropriate owing to the local
market as well as export facilities.

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Other conditions are:

 Raw materials: All the components for the manufacture of glass are
available in Indore glass factories. Specialised agents regularly
supply fine sand from the banks of the Narmada Rivers.
 Staff and workers: Supervisory staff and skilled and unskilled
labourers are available. It is a big trade centre. Dewas and Pithampur
are the areas where lots of industries are available. The salaries and
wages are higher than the other cities but the quality of work is of a
high standard. Highly qualified technicians and designers receive very
high salaries in Indore but the market will compensate for the
expense of such staff. If the existing staffs leave, replacement is
possible in quick time.
 Power and water: The Government authorities have agreed to give
electricity and water connections to supply the required quantities of
power and water. They agreed to give the connections within a
fortnight.
 Site: There are three suitable sites of 3, 5 and 6 acres at Rajvada,
Sanwere and Mahu respectively. All are available for a nine year
lease period.
Recommendations
The sub-committee recommends that:
 One of the sites is chosen in consultation with the Company’s
Architects. Technically, the site at Mahu is the best.
 Negotiations be started immediately to acquire the selected site. For
that, the services of brokers are to be taken.
 The Secretary be authorised to invite tenders for the construction of
the factory.
 The Secretary is further authorised to apply to the Government of
India for license to import the required machines.
 Manpower availability data from employment exchange is to be
obtained.
Date: 5th March, 2006. Mr. Ravi Prakash Mr. Vijay Singhania
Place: New Delhi.
Mr. Rajiv Mehta
(Source: Sehgal, M.K., & Khetarpal, V. (2011). Business Communication.
New Delhi: Excel Books)

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Activity 1:
Imagine that you are the Librarian of a college and that you have been
asked by the Principal to submit a proposal for reorganisation of the
library. Write a report with your recommendations for making better use
of the space available and for computerising the facilities.
(Refer section 13.4 for detailed guidelines.)

Self Assessment Questions

5. As the size of the report increases, a number of extra parts can be
removed, in order to assist the reader in understanding the report.
(True/False)
6. Which of the following sub-item belongs to the body of the report? (Pick
the right option)
a) Executive summary
b) Recommendations
c) Glossary
d) Content page
7. _____________________ includes the background and purpose of the
study.
8. Index is a list of terms or keywords mentioned in the report, used
especially as an aid in searching for information. (True/False)
9. Glossary section is needed only when the report is of a highly
__________________ nature and the reader is a ________________.

13.5 Steps in Report Preparation

Reports are a key to the success of any business, as they are used to
communicate information to top management, customers, shareholders,
etc., for decision making or persuasion. Therefore, they must be carefully
planned, organised, written and presented. A lot of groundwork must
precede the actual writing of the report. We shall briefly discuss the five
main steps in report preparation.

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Figure 13.2 depicts the steps for preparing a report.

Fig. 13.2: Report Preparation Steps

Let us not discuss the steps shown in figure 13.2 briefly.

1. Planning the report – The first question to be asked before gathering
information and writing the report, is regarding the type of report that is
required. (Refer to section 13.3 for types of report). Secondly, you must
remember that most reports are required to the management to solve a
problem or to make a decision. Therefore, the basis or starting point for a
report is a problem. Reports are written after a problem is analysed and a
solution to the problem is found. The problem may be of a day-to-day
nature, such as determining which brand of overhead projector to
recommend for purchase or the problem may be a negative one, such as
sales of the company showing a decline. In any case, the problem is the
fundamental issue to be addressed in the report and must be clearly
determined, right at the beginning.

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Once the problem has been defined, it must be broken up into sub issues or
sub problems, by asking the questions “what”, “why”, “when”, “where” and
“who”.
For example, suppose the purpose of a study is to survey clerical salaries in
public sector banks in Bangalore city, in order to determine whether salaries
in your bank are competitive and consistent. The problem may be broken up
as follows:
What? – A study of clerical salaries
Why? – To determine whether salaries in our firm are competitive and
consistent
When? – Current
Where? – Bangalore city
Who? – Clerical employees in public sector banks
Asking the above questions determines the exact scope of the study and
reduces the problem to a workable size.
The next step in planning the report is to do an “audience analysis”. We
have seen that reports may be addressed to internal or external audiences
of an organisation. Some of the questions to be asked about the audience
or the reader while doing the analysis are:
 Is the audience internal or external to the organisation?
 Who is the specific audience or reader? For example, top management,
customers or the government? Reports written for the government and
for top management must be more formal than for other audiences.
 Is the audience known to you?
 What is the knowledge level of the audience? Is the topic familiar to the
reader? If the report is of a technical nature and the reader is a
layperson, the technical terms may need detailed explanation.
 What is the level of interest of the reader? If the report has been
solicited or authorised, the reader’s level of interest will be high. On the
other hand, if the report is voluntary or unsolicited, it may have to sustain
reader’s interest.
 What purpose this report may serve the audience?

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Usually audiences can be classified into three types. Figure 13.3 depicts the
three types of audiences.

Fig. 13.3: Types of Audiences

Let us discuss them in brief.

 Primary audiences – They are readers to whom your report is
specifically directed to. For example, annual sales report is prepared for
top management.
 Secondary audience – They are readers beyond the primary audience,
but who may also read your report. For example, the annual sales report
that you prepared for top management may also be read by Project
Managers of other department of the organisation.
 Immediate audience – They are the readers to whom you submit your
document. These people are the first to read your document. For
example, the annual sales report that you prepare for top management
has to be approved by your sales managers. Therefore, your sales
managers will be your immediate audience.
The tone, length, complexity and degree of formality of the report will
depend largely on the reader’s characteristics. For example, reports
addressed to peers would adapt a more conversational tone, while reports
on company policies and procedures addressed to subordinates would
adopt an emphatic tone.
2. Selecting a method – After defining the problem and doing the audience
analysis, a method has to be selected to collect or gather the necessary
information to solve the problem. Broadly, information may be gathered
using secondary research methods such as books, magazines,
newspapers, internet and other available sources or through primary
research methods like surveys that provide first hand information.

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3. Gathering and organising data – Once the method of gathering

information has been selected, the actual process of gathering the
information begins. As this is time consuming and expensive, only
information that is relevant to the report and the study must be gathered.
The raw data must be evaluated for its usefulness and organised in a form
that is easy and meaningful to understand. Tables, charts, graphs and
summaries must be used to do this.
4. Arriving at a conclusion – Once the information has been checked for
its validity and reliability, it must be interpreted and conclusions must be
drawn. Correct interpretation of the data is needed for the success of the
report. Sound conclusions cannot be made if the interpretation of the data is
faulty. The common mistake made in the interpretation of data is the
tendency of the researcher to use subjective judgments, instead of objective
reasoning based on facts.
5. Writing the report – The actual process of writing the report must begin
only after a satisfactory solution to the problem is found. You have to
remember that a well written report that contains a bad answer is worse
than a badly written report that contains a good answer.
Once you are ready to begin writing, certain procedures for writing must be
followed, they are:
 Set a date for completion of the report and get started early – Begin
by first preparing an outline and writing an initial draft, which can be
refined later. As starting late is bound to affect the quality of the report.
 Start with an easy section – It is best to start writing those sections of
the report which you feel are easier than others. This will help you to get
into the rhythm of writing, which will be carried over to the more difficult
sections.
 Write quickly, with the intention of rewriting – It is better to put down
your thoughts on paper in the form of a rough draft and to get this done
quickly. Once this difficult part is over, it becomes easier to improve.
 Set aside uninterrupted writing time – A long block of uninterrupted
writing time such as three to four hours a day, must be set aside for
writing the report. Interruptions can make you lose your chain of thought.

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 Review and rewrite where necessary – Ideally, the report must be

reviewed a couple of times, to see if any improvement is needed. The
first review must be to see if any improvement in content is needed,
while the second review must check for any errors in writing style,
grammar, spelling and punctuation.
Reports must also be written in a convincing manner, so that the reader
accepts them as valid and reliable. Some suggested techniques to achieve
them are:
 State the facts in an objective manner – Avoid using superlatives and
emotional terms that introduce bias in the research or that suggest that
you are passing judgment. For example, avoid saying “There was an
‘incredible’ increase in sales, compared to the last year.” Instead, simply
state the amount or percentage of increase. This will be more
acceptable to the reader. For example, “There was an increase in sales
from 23% in last year to 56% this year.”
 Provide expert opinions – Although facts are more convincing than the
opinions of others, they may not always be available. In this case, the
opinions of a specialist in the field may be presented, highlighting the
background and experience of the expert. This can enhance the
credibility of the report.
For example, “This is the opinion of an eminent lawyer, who has over
three decades of experience in dealing with similar cases.”
 Use documentation – Footnotes are one way of mentioning the
sources of the information presented in the report. A bibliography or list
of references is another way of providing documentation. This helps to
convince the reader that the information is based on reliable sources.
Business reports must be carefully worded, adopting certain techniques
of writing style you can write an effective report and they are:
 Use ’concrete’ nouns – Business reports must use concrete nouns,
rather than abstract nouns as the subject of sentences, as they are
easier to visualise.
For example, “Mr. Johnson authorised the study.”
Here, Mr. Johnson is a concrete noun and is easy to visualise.

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Compare this with the sentence “Authorisation for the study was
received by Mr. Johnson”. Here an abstract noun, “authorisation”, is the
subject of the sentence and is harder to visualise.
 Avoid pronouns referring to the writer or reader – The first person
pronoun “I” and the second person pronoun “you” must be avoided in
business reports, as far as possible. The use of “I” risks placing more
emphasis on the writer of the report, rather than on the ideas.
For example, “I conducted face-to-face interviews with fifty respondents.”
This draws more attention to the report writer and must be avoided. It is
better to emphasise the idea by writing the same as, “Face-to-face
interviews were conducted among fifty respondents”.
 Use tenses correctly – If you are writing a research report and
reporting or summarising some of the findings, the past tense is
preferable.
For example, “Almost 80% of the respondents were not aware of the
new product.”
“Of the remaining 20%, five respondents were satisfied with the
product’s features.”
However, once the findings have been presented and you are drawing
conclusions, the present tense must be used.
For example, “Almost 80% of the respondents are not aware of the new
product.”
“Of the remaining 20%, five respondents are satisfied with the product’s
features.”
 Use ‘transition’ sentences – The report must be written so as to flow a
logical sequence. A transition sentence summarises one section of the
report and leads the reader smoothly into the next section.
For example, “While the costs of this new initiative are more than what
were anticipated, the benefits outweigh the costs, as listed below.”
This sentence leads the reader from a discussion on costs to a section
on benefits, as a result of a cost-benefit analysis.
 Define key terms carefully – Important terms and words must be
defined properly, explaining what the word means, rather than what the
word is about.

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For example, “A dictionary is a book containing an alphabetical list of all

words in a particular language” is a more complete definition. Instead we
can define it as “A dictionary has to do with words in a language.”
Reports must be free from grammatical and spelling errors as they might
lead to confusion. Therefore, it is very important to thoroughly review the
report after writing it.

Dos and don'ts

Some of the dos and don’ts of business report writing are,
 Use concise and direct writing – When it comes to preparing a
business report, don't beat around the bush. Don't use unnecessary,
excess language and keeping your documents concise and direct.
 Use standard language when possible – When you are preparing a
business report, you should use standard and even basic language
whenever possible.
 Don't over write – When it comes to business report writing, don't
repeat points that have already been mentioned. Don't mention any
unnecessary and irrelevant points in the report.
 Prepare an outline – Before actually beginning the task of writing a
business report, prepare a thorough and comprehensive outline. By
developing an overall and comprehensive outline, you will be better
able to make certain that you include all of the items that need to be
addressed in a particular business report.
 Take the time to revise – By taking the time to revise and re-draft,
you will be able to eliminate many of the business report writing
problems that commonly can occur and that have been discussed
previously in this article.

Additional Reference:
Bowden, J. (2004). Writing a Report: How to Prepare, Write and Present
Effective Reports. UK: How To Books Ltd.

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Self Assessment Questions

10. Reports are written after a problem is analysed and a solution to the
problem is found. (True/False)
11. _____________________________________ of the data is needed
for the success of the report.
12. Business reports must use __________________ nouns.
a) Concrete
b) Abstract
c) Proper
d) Common
13. A ______________________ sentence summarises one section of the
report and leads the reader smoothly into the next section.

13.6 Summary
Let us recapitulate the important points discussed in this unit:
 Business report is defined as an orderly and objective presentation of
information that helps in decision making and problem solving.
 A report varies in purpose, length, format and complexity and also the
quality of a report is affected by quality and accuracy of the data.
 The four types of reports are:
o Periodic reports
o Proposals
o Policies and procedures
o Situational reports
 Depending on the length of the report the format of a business report
varies. Usually report follows a memo format.
 A business report generally consists of the following items:
o Preliminary parts
o Body of the report
o Addenda or annexes

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 In order to create an effective report you can follow the following steps:
o Planning the report
o Selecting a method
o Gathering and organising data
o Arriving at a conclusion
o Writing the report

13.7 Glossary
Concrete noun: A noun (such as chicken or egg) that names a material or
tangible object or phenomenon-something recognisable through the senses.
Layperson: A person without professional or specialised knowledge in a
particular subject.
Solicited: To seek to obtain by persuasion, entreaty, or formal application.
Superlatives: The highest degree of comparison.

13.8 Terminal Questions

1. Write a note on the characteristics of a business report.
2. List the type of business reports. Explain.
3. Write a note on report format.
4. List the steps for preparing a report. Explain.
5. Explain the techniques that you can follow to write a report in a
convincing manner, so that the reader accepts them as valid and
reliable.

13.9 Answers

Self Assessment Questions

1. True
2. Data collected
3. Compliance reports
4. Policies and procedures
5. False. As the size of the report increases, a number of extra parts can
be added, in order to assist the reader in understanding the report.

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6. b) Recommendations
7. Introduction
8. True
9. Technical, layperson
10. True
11. Correct interpretation
12. Concrete
13. Transition
Terminal Questions
1. A report varies in purpose, length, format and complexity. Also, quality of
a report is affected by quality and accuracy of the data. For more details,
refer to section 13.2.
2. Business reports can be classified as periodic reports, policies and
procedures, proposals and situational reports. For more details, refer to
section 13.3.
3. Report format varies with the length of the report. As the length
increases the assisting items that are included in the report also
increases. These assisting items make it easy for the reader to
understand and read the report easily. For more details, refer to section
13.4.
4. The steps for preparing a report comprises planning the report, selecting
a method, gathering and organising data, arriving at a conclusion and
writing the report. For more details, refer to section 13.5.
5. In order to write a convincing report you have to state the facts in an
objective manner, provide expert opinions, use documentation. For more
details, refer to section 13.5.

13.10 Case Study

Research Report
The following research report was prepared in UniLab on staff attitude.
Executive Summary
The aim of this report was to investigate UniLab staff attitudes to
personal mobile phone use in staff and team meetings. A staff survey on

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attitudes towards the use of mobile phones in the staff / team meetings
was conducted. The results indicate that the majority of staff found that
the use of mobile phone is a major issue in staff meetings. The report
concludes that personal mobile phones are disruptive and should be
turned off in meetings. It is recommended that UniLab develops a
company policy banning the use of mobile phones except in exceptional
circumstances.
Introduction
There has been a massive increase in the use of personal mobile phones
over the past five years and there is every indication that this will
continue. According to Black (2002) by 2008 almost 100% of working
people in Australia will carry personal mobile phones. Black describes
this phenomenon as ‘serious in the extreme, potentially undermining the
foundations of communication in our society’ (2002, p 167). Currently at
UniLab 89% of staff has personal mobile phone.
Recently few of the staff have complained about the use of personal
mobile phones in meetings and asked what the official company policy is.
At present there is no official company policy regarding phone use. This
report examines the issue of mobile phone usage in staff meetings and
small team meetings. It does not seek to examine the use of mobile
phones in the workplace at other times, although some concerns were
raised.
For the purpose of this report a personal mobile phone is a personally
funded phone for private calls as opposed to an employer funded phone
that directly relates to carrying out a particular job.
Methods
This research was conducted by questionnaire and investigated UniLab
staff members’ attitudes to the use of mobile phones in staff / team
meetings. A total of 412 questionnaires were distributed with employees'
fortnightly pay slips (see Appendix 1). The questionnaire used Lekert
scales to assess social attitudes (see Smith 2002) to mobile phone usage
and provided open ended responses for additional comments. Survey
collection boxes were located in every branch for a four week period. No
personal information was collected; the survey was voluntary and
anonymous.

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Results
There was an 85% response rate to the questionnaire. A breakdown of
the responses is listed in Table 13.5. It can be clearly seen from the
results that mobile phones are considered to be disruptive and should be
turned off in meetings.
Table 13.5: Breakdown of the Responses

Personal mobile phone Strongly Agree % Disagree Strongly

usage in staff and agree % % disagree
team meetings is… %

Not a problem 5 7 65 23

An issue 40 45 10 5

Disruptive 80 10 7 3

Phones should be 6 16 56 22
permissible

Phones should be 85 10 3 2
turned off

Allowed in some 10 52 24 14
circumstances

The survey also allowed participants to identify any circumstances where

mobile phones should be allowed in meetings and also assessed staff
attitudes towards receiving personal phone calls in staff meetings in open
ended questions. These results showed that staff thought that in some
circumstances for example, medical emergencies, receiving personal
phone calls was acceptable, but generally receiving personal phone calls
was not necessary.
Discussion / Interpretation of Results
It can be seen from the results in Table 13.5 that personal mobile phone
use is considered to be a problem; however it was acknowledged that in
some situations it should be permissible. 80% of recipients considered
mobile phones to be highly disruptive and there was strong support for
phones being turned off in meetings (85%). Only 12% thought that mobile
phone usage in staff and team meetings was not a problem, whereas
85% felt it was an issue. The results are consistent throughout the

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survey. Many of the respondents (62%) felt that in exceptional

circumstances mobile phones should be allowed, for example, medical,
but there should be protocols regarding this.
These findings are consistent with other studies. According to Smith
(2005) many companies have identified mobile phones as disruptive and
have banned the use of mobile phones in meetings. Havir (2004) claims
that 29% of staff meeting time is wasted through unnecessary mobile
phone interruptions. This affects time management, productivity and
team focus.
Conclusion
The use of mobile phones in staff meetings is clearly disruptive and they
should be switched off. Most staff felt it is not necessary to receive
personal phone calls in staff meetings except under certain
circumstances, but permission should first be sought from the team
leader, manager or chair.
Recommendations
It is recommended that UniLab develops an official policy regarding the
use of mobile phones in staff meetings. The policy should recommend:
 mobile phones are banned in staff meetings.
 mobile phones may be used in exceptional circumstances but only
with the permission of the appropriate manager or chair.
Finally, the policy needs to apply to all staff in the company.
(Source: https://www.dlsweb.rmit.edu.au/lsu/content/2_assessmenttasks/
assess_tuts/reports_ll/report.pdf)

Discussion Questions:
1. What is the report about?
(Hint: Refer ‘Executive Summary’ in the Case Study)
2. Is the report structured well? Explain.
(Hint: Refer section 13.4)

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References:
 Ober, S. (2004). Contemporary Business Communication, 5th ed. New
Delhi: Dreamtech Press.
 Kumar, R. (2010). Basic Business Communication: Concepts,
Applications and Skills. New Delhi: Excel Books.

E-References:
 http://www.cerias.purdue.edu/education/post_secondary education/
past_offerings/curriculum_development/ethical_social_prof_issues/case
_study_ramaswamy3.php – Retrieved on January 24, 2012.
 http://bestentrepreneur.murdoch.edu.au/Guide_To_Report_Writing.pdf
– Retrieved on January 25, 2012.
 https://www.dlsweb.rmit.edu.au/lsu/content/2_assessmenttasks/assess_
tuts/reports_ll/report.pdf – Retrieved on January 27, 2012.

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Business Communication Unit 14

Unit 14 Employment Communication –

Resumes and Cover Letters

Structure:
14.1 Introduction
Objectives
14.2 Writing a Resume
Types of resumes
Components of resumes
Language and other guidelines for resumes
14.3 Writing Job Application Letters
14.4 Other Letters regarding Employment
14.5 Job Search Plan
14.6 Summary
14.7 Glossary
14.8 Terminal Questions
14.9 Answers
14.10 Case Study

14.1 Introduction
In the previous unit we studied what a report is and the types of report. We
also studied the format of and steps to prepare an effective report. As a
management student it is very important to know how to use reports
effectively at the workplace.
In order to get a job you need to approach an organisation. How do you
communicate to an organisation that you are interested to work with them?
You can do this by sending a resume along with your job application. In this
unit we will study how to write a resume.

Will Smith writes to his potential employer Mr. George Gilhooley of XYZ
Company seeking a job. For this he prepares a resume and sends it along
with a letter. The letter that he wrote is as follows,
Mr. George Gilhooley
XYZ Company
87 Delaware Road

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Hatfield, CA 08065
(909) 555-5555
george.gillhooley@email.com
Date: 23rd January 2011
Dear Mr. Gilhooley,
I am writing to apply for the programmer position advertised in the Times
Union. As requested, I am enclosing a completed job application, my
certificates, resume and three references.
The opportunity presented in this listing is very interesting and I believe
that my strong technical experience and education will make me a very
competitive candidate for this position. Some key strengths that I possess
for success in this position include:
 I have successfully designed, developed and supported live use
applications.
 I strive for continued excellence.
 I provide exceptional contributions to customer service for all
customers.
 With a BS degree in Computer Programming, I have a full
understanding of the full life cycle of a software development project. I
also have experience in learning and excelling at new technologies as
needed.
 Please see my resume for additional information on my experience.
 I can be reached anytime via email at Will.Smith@gmail.com or my cell
phone, 909-444-4444.
Thank you for your time and consideration. I look forward to speaking with
you about this opportunity.
Sincerely,
Will Smith
(Source: http://jobsearch.about.com/od/morejobletters/a/jobappletter.htm)

After reading the scenario the following questions arise:

What is the letter written by Will Smith to his employer called?
How to write this letter?
In this unit we will study how to write a resume and learn to prepare a job
application. We will also learn the other letters written by employees to the
employer or managers that are related to employment.

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Objectives:
After studying this unit, you should be able to:
 define resume
 list types of resume
 write a job application letter
 list other types of letters related to employment

14.2 Writing a Resume

A resume is a document that summarises your background, educational
qualifications, experience and interests. It may be sent not only to current
employers, but also to potential employers, who may hire you for a job that
has not been announced. From a prospective employer’s point of view, it
serves as a screening device, helping to select the most worthy candidates
for a particular position and to eliminate the others. From a job seeker’s
point of view, the resume conveys how you present your ideas, whether you
are organised and what your strengths are, apart from listing your
qualifications.
Although resumes and job application letter are sent together to the
potential employer, the letter is seen first. It is a good practice to write the
resume before the letter as the resume helps to identify the ideas that must
be highlighted in an application letter. Resumes, like application letters,
must focus on the needs of employers. For example, a person seeking a job
as a visualiser in an advertising agency must emphasise his creative skills
over other skills since the agency’s requirement is of a creative candidate.
14.2.1 Types of resumes
There are two approaches to write a resume. Your choice of the approach
depends on your experience and accomplishments.
1. Chronological resume – This type of resume lists your education and
experience in reverse order and describes your most recent job or
qualification first. This is the most commonly used approach and is generally
used when your education and work experience are clearly related to the job
that you are applying for. It is also appropriate for recent college graduates,
with little or no work experience.
An example of a chronological resume is shown in table 14.1.

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Table 14.1: Chronological Resume

Sally M.
1001 Ram Road Fort Collins, CO 80525
(970) 555–1234 sallysample@colostate.edu
Summary of Qualifications and Key Skills
 Three years experience in retail management, specialising in
purchasing and floor display design.
 Strong communication skills in a variety of professional settings.
 Enthusiastic dedication to excellent customer service.
Education
MA in Speech Communications (2000-2002)
Colorado State University, Fort Collins, CO
GPA 3.6/4.0
BA in Anthropology, December 1999 (1995-1999)
Arkansas State University, Jonesboro, AR
GPA 3.5/4.0
Dean’s List
Professional Experience
Assistant Office Manager (2001-2002)
Department of Speech Communications, Colorado State University, Fort
Collins, CO
Managed departmental supplies budget, oversaw office purchasing and
inventory, overhauled department-wide filing system, supervised part-
time staff.
Intern (1999)
Sharkey’s Community Grocery Corporate Headquarters, Washington, DC
Assisted company publicist with writing press releases, designing weekly
advertisements, and managing customer databases. Developed research
methods for determining customer preference for shopping hours.
Assistant Night Manager (1997-1999)
Sharkey’s Community Grocery, Jonesboro, AR
Purchased, stocked and maintained dairy and ice-cream sections,
oversaw point of purchase display construction, scheduled twenty part-
time employees.

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Skills
Computer Skills – Microsoft Word, Excel, Corel Draw, Paint Shop Pro,
QuickBooks, Oracle Small Business, basic HTML knowledge.
Special Skills – Thorough knowledge of MMORPG and single-player
gaming systems, thorough knowledge of Internet applications.
REFERENCES – Available on request.

A chronological ’Work history’ would follow the ’Experience’ section, listing

all jobs held in reverse chronological order, starting from the most recent
job. The ’Education’ section would come next, listing institutions, degrees
and dates.
2. Functional resume – This type of resume is appropriate when you have
held a number of jobs in different functional areas or when you are changing
your career completely.
For example, moving from Marketing job to a job related to Human
Resources (HR) or changing your career focus from an industry job to an
academic job.
In this case, the resume will be prepared in such a way that all jobs in a
particular area are grouped together.
A functional resume would be written as follows:

ELISE DIANE WELSH

5834 Newark Street, NW, Washington, DC 20008, 202-555-4836,
edw@american.edu
EDUCATION
American University, Washington, DC
MA, International Relations, May 2007
Comparative and Regional Studies: Africa
Middlebury College, Florence, Italy, and Middlebury, VT
MA, Italian Language and Literature, August 2001
Thesis: “Dall’ Africa all’Italia: Gli extracommunitari a Firenze (From Africa
to Italy: The Non-European Economic Community in Florence)”
University of Southern Colorado, Pueblo, CO
BS, Broad Area Social Science, May 1995
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SKILLS
Management
 Responded to daily inquiries about Nonviolence International
 Coordinated logistical and planning aspects of International Day,
including performances, floor planning, and student projects
 Recruited and coordinated 75 volunteers for Baltimore, Maryland,
Columbus Day Parade
 Facilitated “Rainbows” (for children experiencing a loss in the family)
 Projected Foreign Language Department budget of $30,000
 Organised university athletic banquet for 400 people
 Scheduled 35 guest speakers and 15 extracurricular events (field trips,
dances, fund raisers, etc.)
Programme Development
 Initiated contacts with Nigerians interested in nonviolent conflict
resolution workshops
 Contributed to writing 50-page grant proposal for Islam, Democracy,
and Nonviolence
 Attended peace and conflict resolution workshop for 55 Palestinian
Security Officers
 Formulated four-month programme of student projects (recipes,
traditional costumes, flags, reports, regalia, etc.) to educate students
and community about cultural diversity culminating in International Day
event attended by 600 people
 Modified high school classroom curriculum and activities
 Created interactive video-disc programme at LIBRA Authorware
conference sponsored by United States
Naval Academy
 Attended and assessed Computer Assisted Language Learning and
Instruction Consortium coordinated by United States Air Force
Academy
 Co-authored 80-page proposal for Interactive Video-Disc Laboratory
Languages and Travel
 Fluent Italian, intermediate French, basic Spanish skills

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 Lived in Italy and France and travelled to Canada, Hawaii, Germany,

Switzerland, and Ukraine Computers
 Proficient in MS Word, Excel, Access, PowerPoint, and Word Press
EMPLOYMENT HISTORY
Our Lady Queen of Peace School, Baltimore, MD
Social Studies, Science, and Spanish Teacher, August 2002–present
Nonviolence International, Washington, DC
Cooperative Education Intern, June–August 2006
Academy of Languages, Baltimore, MD
Italian Tutor, June 2005–August 2006
Pueblo County High School, Pueblo, CO
French, Italian, and Spanish Teacher, August 1997–August 1999

14.2.2 Components of resumes

Irrespective of the type of resume, all resumes must have the same basic
information or standard components. Figure 14.1 depicts the various
components of a resume.

Fig. 14.1: Resume Components

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Let us discuss each of these components in brief.

• Basic data – This includes the name, address, telephone number and
email id. The information provided must allow a prospective employer to
reach you easily. If you are still in college, it is better to provide both the
home and college address. If you are already employed, list either a
business phone number or a mobile number where you can be reached
during work hours.
• Career objective – An objective must be very specific, stating clearly the
position you are seeking and the area in which you want to work. The
objective statement must consist of two parts:
o Your general goal, mentioning some skills that you feel will qualify
you for the job.
o One or more specific areas in which you wish to work.
For example, the objective for an entry level position is written as, “An
entry-level position in public relations, with an opportunity to use my
skills in writing and researching. Special interests in publicity, radio
and television programming.”
• Education – Employers are interested in knowing about your academic
qualifications after high school. Educational qualifications must be listed
in reverse chronological order, starting with the most recent qualification
first. The degree earned, name of the institution and date of receiving the
degree must be mentioned.
For example, Master of Business Administration in Retail Operations,
Manipal University Jaipur, August 2008.
In addition, any theses written, special courses taken, ranks, awards and
scholarships earned may also be mentioned, if relevant.
• Experience – Like educational qualifications, work experience must be
listed in reverse chronological order. If your experience is limited, you
may also list part-time jobs, internships and voluntary work, under the
title ‘work experience’. More than job designations, employers are
interested in knowing what you can do. Therefore, a brief description of
each job and the duties performed by you must be included. Short
phrases may be used, instead of complete sentences. Technical
terminology may also be used to describe the work done by you.

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For example, Production Supervisor, Western University Media

Productions, 1996-97. Assisted in video tape productions, digital and
online videotape editing using studio and portable cameras.
 Skills/Other knowledge – In this section, capabilities such as languages
known, computer skills and special writing skills may be listed.
 Organisations and activities – Membership of student and professional
associations, clubs and committees, offices held, as well as extra-
curricular activities such as sports, music and photography, must be
listed in this section. This information gives prospective employers an
idea of your aptitudes, attitudes and personality.
 References – References could be obtained from anyone who is familiar
with either your academic or professional work, such as your professors
or immediate supervisor. Prior permission must always be sought before
listing anyone as a reference. Generally, it is sufficient to include the
statement ’References available on request’ in your resume and to
furnish the names only if you are asked to. Employers ask for references
only if they wish to do a background check on you. When listing
references, the name of the person, designation, institution and contact
details must be provided. For example, you can mention the reference as
follows:

Jane Dolan
Marketing Manager
123 Company,
# 345, Twin towers, MT Park,
Bangalore 560 073
Phone: 9989876576
Email: jd@gmail.com

14.2.3 Language and other guidelines for resumes

The general appearance of a resume is extremely important. It must project
a professional image of you to the organisation. A badly presented resume
with errors in spelling and grammar could cost you the job. That is why
many job seekers prefer to hire the services of a professional firm to prepare
their resumes.

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The following points must be kept in mind, regarding the appearance of a

resume:
 Print your resume on good quality paper
 Leave a lot of white space, so that the resume does not look cluttered
 Use a high quality printer or copy machine, for good reproduction
 Avoid using special types of paper and fancy typefaces for special effects
 Limit your resume to a maximum of two pages, since employers do not
have the time to go through lengthy resumes
Regarding the language and writing style, avoid being wordy or verbose and
use simple, brief statements. Your resume must convey your dynamic
personality and highlight your accomplishments. A list of ’action words’ that
must be used in writing resumes is given in table 14.2.
Table 14.2: Chronological Resume
Achieved Defined Helped Planned
Acted Delegated Identified Prepared
Adapted Demonstrated Informed Presented
Advised Described Inspected Produced
Allocated Designated Instructed Recommended
Analysed Determined Integrated Reorganised
Applied Developed Initiated Resolved
Appointed Directed Introduced Revised
Approved Distributed Investigated Reviewed
Arranged Drafted Involved Scheduled
Assessed Edited Launched Selected
Assigned Encouraged Located Started
Assisted Established Managed Studied
Classified Evaluated Marketed Suggested
Collected Examined Modified Supervised
Communicated Facilitated Monitored Supported
Compared Forecasted Motivated Surveyed
Compiled Formulated Negotiated Taught
Completed Gathered Observed Tested
Coordinated Generated Organised Trained
Conducted Guided Participated Translated
Created Handled Performed Updated

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Some don’ts of resume writing

 Do not include personal references on your resume. A potential
employer is interested in references only if he or she is seriously
considering hiring you. At that time, you may be asked to provide
reference information.
 Do not use odd-size paper or loud colours. 8 1/2 X 11-inch paper – in
white, buff or beige, is appropriate. Also, be sure to use a good quality
paper.
 Do not include your salary history or reasons for leaving previous jobs
in a resume. Also, do not mention sexual harassment issues, lawsuits,
workers' compensation claims, or say, "They fired me for no good
reason." In addition, leave out any discussion about hobbies, musical
instruments you play, sports you enjoy, your marital status (with the
number and gender of kids), age or race. This is a business marketing
document, so limit the information on it to business related issues.
 Do not include references to areas of your life that are not business
related or not related to your current career goals. Membership in
outside social organisations, military service, etc., has no place in a
resume, unless they somehow apply to your job objectives.
 Do not have any unreasonable expectations of what a resume can do.
You will be guilty of a grave error in judgment if you expect someone to
hire you because of your resume. Your resume is simply a piece of
paper. It comes with no guarantee of truthfulness, and it certainly
cannot close a deal. You may choose to believe that your record
speaks for itself, but the truth is: only you speak for yourself.
(Source: http://www.theresumebuilder.com/resume_tips.php)

Activity 1:
Imagine that you are applying for the post of lecturer in a Business
School. Write an objective statement in about 100 words for your resume.
(Refer sub-section 14.2.1 for detailed guidelines.)

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Self Assessment Questions

1. A _________________________ is a document that summarises your
background, educational qualifications, experience and interests.
2. ______________________ resume is appropriate when you are
changing your career completely. (Pick the right option)
a) Functional
b) Cross functional
c) Chronological
d) Professional
3. If your experience is limited, you may also list part-time jobs,
internships and voluntary work, under the title work experience.
(True/False)
4. The general ______________________ of a resume is extremely
important.

14.3 Writing Job Application Letters

A job application letter is also known as a ’cover’ letter, is a letter sent along
with the resume to emphasise or highlight the major points mentioned in the
resume. A letter of application usually provides employer the detailed
information on why you are qualified for the job that you are applying for.
The job application letter is prepared after you prepare the resume. A
resume by itself is incomplete, unless it is accompanied by a cover letter.
The cover letter, like the resume, must be well written and presented, as it
creates a first impression and can get you an interview.
Cover letters must be written similar to sales letters, using all the techniques
of persuasion. You have to sell yourself to a prospective employer, in the
same way that you sell a product to a prospective customer. Cover letters
can also be used to personalise your qualifications for a specific job.
Every job application or cover letter must include some standard
components. Figure 14.2 depicts the components of a job application.

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Fig. 14.2: Job Application Standard Components

Let us discuss them in brief.

1. Address and salutation – The letter must be addressed to a specific
individual and not to the organisation. The individual must be addressed
formally, by his/her last name.
For example, Dear Mr. Johnson/Ms. Johnson
If the name of the individual is not known, the person must be addressed by
the designation.
For example, “Dear HR Manager/ Sales Manager”.
2. Opening – The opening statement or paragraph must be straightforward
and brief, mentioning the purpose of the letter.
3. Body – Highlight your strongest qualifications in a couple of paragraphs,
explaining how they will benefit the employer, using words that are different
from those in the resume.

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4. Closing – Ask for the opportunity of a personal interview, showing

flexibility in time and location.
While the standard parts of the letter remain the same, the format may vary,
depending on the type of letter.
Types of job application letters
Job application letters may be classified into two broad categories:
1) Solicited application letters
2) Unsolicited application letters
Let us briefly discuss them.
1. Solicited application letter – It can be defined as a letter written to a
prospective employer, in response to an advertised job.
A solicited application letter is easier to write and is more direct and
straightforward than an unsolicited application letter. It is written following
the direct organisational plan or format, which we discussed in detail, in
unit 11 on business letter writing. The direct organisational plan consists in
presenting the main idea first, followed by reasons, an explanation and then
a friendly closing. A solicited letter would be written in the following pattern:
 Include a subject line, stating the purpose of the letter.
For example, include a subject line “Application for the position of
Management Trainee”.
 Mention right in the beginning that you are applying for a specific position
that is available, stating how you learned about the opening – for
example, through an advertisement, through friends or through head
hunters.
 State the reasons for applying for this particular position, i.e., why your
qualifications and experience make you suitable for the job.
 Close the letter cordially and ask for a personal interview at the
convenience of the employer.
An example of a solicited cover letter, written in the direct organisational
format, is shown in table 14.3:

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Table 14.3: Sample Solicited Cover Letter

The HR Manager
East West Infotainment
Bidadi Industrial Area
Bangalore 560 035
April 8, 2008
Dear HR Manager,
Sub : Application for the position of Management Trainee
In response to your advertisement in the Times of India Ascent, dated
April 5th, 2008, I am applying for the position of Management Trainee with
specialisation in Human Resources.
I believe that my qualification and experience match the needs of
the above position. I have recently completed my MBA from Manipal
University Jaipur via distance education, with specialisation in
Human Resources. My final MBA project was on ‘HR Recruiting
Policies’ in Ampersand Information Systems, Pvt. Ltd., Bangalore. In
addition, I have also worked on a part-time basis with an IT recruitment
firm in Bangalore, for approximately six months.
Please find enclosed resume, along with an executive summary of my
project report for your reference. Please consider this application and
provide me an opportunity to be a part of your esteemed organisation.
Thanking you,
Sincerely,
Praveen Kumar
Encl 1: Resume
Encl 2: Project report summary

A solicited cover letter, such as the one shown in table 14.3, must be
accompanied by a ’solicited’ resume, where the career objective is tailored
to the advertised position and the relevant experience if any, is highlighted
and follows the career objective.
2. Unsolicited job application letter – Sometimes job application letters
may also be sent to prospective employers who have not advertised for an

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immediate position. A candidate may have a list of preferred employers and

send job applications to them, in the hope of being contacted, as and when
positions become available. These are known as unsolicited application or
cover letters. This has certain advantages from the applicant’s point of view:
 By sending out a number of unsolicited letters to potential employers, the
job seeker increases the number of job available opportunities.
 There is less competition for the job seeker than there would be in the
case of solicited job application letters, which are sent in response to an
advertisement.
 If the letter is persuasive enough and meets a potential employer’s
requirements, it could even be successful in creating a job.
 It suggests initiative on the part of the job seeker.
The unsolicited job application letter also offers some advantages to
potential employers:
 It saves advertising costs for the organisation.
 It saves time, as having a ready file of resumes helps the Human
Resource (HR) department to shortlist and contact applicants
immediately, instead of advertising and waiting for responses. An
advertisement may also fetch hundreds of responses, all of which may
take time to screen and shortlist.
 It increases the likelihood of getting candidates with initiative and
foresight.
The unsolicited job application letter is not as direct as a solicited letter. This
is because it has to be much more persuasive and convince the prospective
employer to select you for a job that is not currently available. It is
essentially a sales letter and follows the fundamental steps of selling or the
’Attention, Interest, Desire, Action’ format, that was discussed in unit 11. The
AIDA format is one type of indirect organisational plan. Let us discuss this
format with regard to unsolicited letters.
1. Getting attention – Similar to a sales letter, an unsolicited cover letter
must get the attention of the prospective employer. There are different ways
of doing this.
One way is to show familiarity with the company is by writing,

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“I have researched IT companies and identified yours as one of the leaders

in the field of microprocessor design, using advanced technology.”
Another attention-getting technique is to highlight some of your outstanding
qualifications.
For example – “If you need an executive assistant who can type at a speed
of 100 words per minute, contact me.”
Referring to the source of job information could also serve as an attention
getter, especially if the source is highly regarded by the employer.
For example – When the Vice President, Marketing, of your company visited
our campus to give a lecture he mentioned that the company hires
management trainees with marketing specialisation, every year.
References to magazine and newspaper articles can also be used as
attention-getting devices.
For example – “I read in the latest issue of the Advertising and Marketing
magazine that your agency has won a prestigious new account and
understand that you may want to hire some client service executives to
service the account.”
2. Creating interest – This can be done by highlighting your strongest
qualifications and relating them to the needs of a specific position.
Prospective employers are most interested in your qualifications and
experience that are related to the job and expect you to point out that
relationship. This assures them that you understand what the job involves.
In order to create interest, the cover letter must avoid repeating facts from
the resume. Instead, it must interpret the facts.
For example – “From the business courses taken during my MBA program
and from three years’ experience as a collection agent, I have learnt how to
tackle a number of customer related problems such as legal, psychological
and sales promotional. These problems are similar to what a claims adjuster
would have to face – acting within the limits of the law and a code of ethics,
choosing the words that are most likely to influence a particular client and
constantly promoting the company’s products.”

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The above paragraph creates interest, by relating the qualifications and

experience to the needs of a specific position, namely, a claims adjuster.
Note that it does not repeat factual details which can be found in the
resume, such as the name of the college where the applicant studied MBA,
the specialisations taken or the firm where the applicant worked as a
collection agent. It conveys to the prospective employer that the applicant
knows what the job of a claims adjuster would involve.
3. Inducing desire – Similar to convincing consumers that a product is
relevant to their needs, the prospective employer must be convinced that
the applicant is the right person for the job at hand. This can be done by
providing concrete evidence and by stressing the benefits to the prospective
employer.
The technique for selling a product is to emphasise the prominent features
of a product, along with supporting evidence. Similarly, the job applicants
must identify their major strengths (such as a particular qualification or a
part of his/her job experience) and provide enough details about them to
sound convincing.
For example – My MBA final project work was with a leading international
bank. I have also completed a Post Graduate Diploma in Bank
Management, offered via distance education by a reputed institute. I am
currently pursuing a part-time course in the programming of the XXX
computer – the same model that your bank is now in the process of
installing.
4. Asking for action – The last paragraph of the letter must ask for action
on the part of the prospective employer. In a solicited letter, the desired
action is usually a request for a personal interview. However, in an
unsolicited letter, it can be a request to the prospective employer to indicate
whether there might be an opening for a specific position in the near future.
This is as per the indirect organisational plan, where the main idea (asking
for a suitable opening) is stated last.
The following points must be remembered when asking for action:
 Ask for the specific action politely, without making demands.
 Express gratitude, because you are seeking a favour.
 Emphasise your strengths again in the last paragraph.

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For example, “Please contact the references in my enclosed resume, for

their comments on my knowledge of accounting and my interpersonal skills.
I would be grateful if you could indicate whether there would be an opening
for an auditor in your esteemed organisation, in the near future.”
Self Assessment Questions
5. Cover letters can also be used to personalise your qualifications for a
specific job. (True/False)
6. The _______________________ must be straightforward and brief,
mentioning the purpose of the letter. (Pick the right option)
a) Opening statement
b) Address
c) Body
d) Closing
7. A _____________________________ letter is easier to write and is
more direct and straightforward than an unsolicited application letter.
8. __________________________ increases the likelihood of getting
candidates with initiative and foresight.
9. The initial paragraph of unsolicited job application letter must ask for
action on the part of the prospective employer. (True/False)

Additional Reading:
Sarada, M. (2004). The Complete Guide to Resume Writing. New Delhi:
Sterling Publishers Pvt. Ltd.

14.4 Other Letters regarding Employment

Apart from job application letters, business executives often have to write
other letters related to employment or to a job application. Figure 14.3
depicts some of these letters.

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Fig. 14.3: Other Letters Related to Employment

Let us briefly discuss these letters.

1. Recommendation letters
These are letters written to prospective employers about an applicant’s
suitability for a particular job. They may be worded positively or negatively. If
the letter recommends the applicant with enthusiasm, it is generally written
following the direct organisational plan or format, stating the main idea first.
In other words, the applicant is endorsed right in the beginning of the letter.
On the other hand, if the recommendation is negative, the indirect
organisational plan is followed, giving the reasons first and then stating that
the applicant is not suitable for the job.
The following points must be considered, when writing recommendation
letters:
 Fairness to applicants and prospective employers must be shown.
Helping an applicant to get a job for which he/she is not suitable is being
unfair to a prospective employer. Similarly, giving a negative
recommendation to a worthy applicant because of personal bias is not
being fair to the applicant.

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 Relevant information must be provided in the letter. This includes the

length of the applicant’s current employment, the nature of the job,
performance, his/her strengths and weaknesses and any other
information that would help to evaluate the applicant.
 Legal safeguards must also be included in the letter. For example, a
statement must be included that the information provided is confidential
or used only for professional purposes. Failure to state this could lead to
a lawsuit being filed against the writer.
Some employers use forms for getting information about job applicants,
instead of asking for recommendation letters. This helps them to get the
needed information faster, as filling out forms is easier than writing a letter.
Table 14.4 shows a sample recommendation letter.
Table 14.4: Recommendation Letter

Hi Mr Harry Jackson,
This letter is my personal recommendation for Cathy Douglas. Until just
recently, I have been Cathy's immediate supervisor for several years. I
found her to be consistently pleasant, tackling all assignments with
dedication and a smile.
Besides being a joy to work with, Cathy is a take-charge person who is
able to present creative ideas and communicate the benefits. She has
successfully developed several marketing plans for our company that
have resulted in increased revenue. During her tenure, we saw an
increase in profits that exceeded one million dollars. The new revenue
was a direct result of the plans implemented by Cathy.
Though she was an asset to our marketing efforts, Cathy was also
extraordinarily helpful in other areas of the company. In addition to writing
effective training modules for sales representatives, Cathy assumed a
leadership role in sales meetings, inspiring and motivating other
employees.
I highly recommend Cathy for employment. She is a team player and
would make a great asset to any organisation.
Sincerely,
Sharon Feeney Marketing Manager ABC Productions

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2. Job acceptance letters

These are similar to letters that convey good news and must be written
following the direct organisational plan. They must begin by accepting the
job right away, followed by any necessary details, such as documents to be
submitted and then a friendly closing, indicating that you are looking forward
to working with the employer. Table 14.5 shows a sample job acceptance
letter.
Table 14.5: Job Acceptance Letter

Dear Mr. Barnes,

As we discussed on the phone, I am very pleased to accept the position
of Marketing Manager with Smithfield Pottery. Thank you for the
opportunity. I am eager to make a positive contribution to the company
and to work with everyone on the Smithfield team.
As we discussed, my starting salary will be 10 lakhs per annum and
health and life insurance benefits will be provided after 90 days of
employment.
I look forward to starting employment on July 1, 2010. If there is any
additional information or paperwork you need prior to then, please let me
know.
Sincerely,
Jane Fieldstone

3. Job refusal letters

Prospective employers like to know as soon as possible, whether a job offer
has been accepted or not. When a job offer is rejected, they would like to
know the reasons why it has been declined. Therefore, a job refusal letter
must state the reasons first, although it must be tactfully worded, so as to
retain the goodwill of the employer for future purposes. The bad news or the
news that the job is being rejected must be stated towards the end, following
the indirect organisational plan. Table 14.6 shows a sample job refusal
letter.

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Table 14.6: Job Refusal Letter

Dear Mr. Harrison,

Yours was one of the most challenging job interviews that I attended in
my search for a tax accounting related job. I found your ideas on the
percentage-depletion problem particularly interesting.
As you yourself mentioned during our meeting, opportunities in your
organisation are good for those who are interested in costs. However, my
special area of interest and expertise is tax accounting.
Therefore, I have recently accepted a job with the 2M company, where my
responsibilities will lie solely in the area of tax accounting.
I thank you for your time and the opportunity given to me to explore career
prospects in your organisation.
Sincerely,
Sam

4. Thank you letters

These letters are appropriate after the applicant has attended a job
interview. As a matter of courtesy, they must be sent out, even if the
applicant does not stand a chance of getting the job. This retains the
prospective employer’s goodwill and increases the chances of being
considered for future jobs. If the applicant is being considered for the
present job, a thank you letter may be the deciding factor in his/her favour.
Thank you letters are relatively shorter than other employment letters.
Writing in too much detail de-emphasises the appreciation and gratitude that
they are meant to convey. Table 14.7 shows a sample ‘thank you’ letter.
Table 14.7: A Thank You Letter

Dear Mr. Harry Jackson

It was very enjoyable to speak with you about the assistant account
executive position at the Smith Agency. The job, as you presented it,
seems to be a very good match for my skills and interests. The creative
approach to account management that you described confirmed my
desire to work with you.

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In addition to my enthusiasm, I will bring to the position strong writing

skills, assertiveness and the ability to encourage others to work
cooperatively with the department. My artistic background will help me to
work with artists on staff and provide me with an understanding of the
visual aspects of our work.
I understand your need for administrative support. My detail orientation
and organisational skills will help to free you to deal with larger issues. I
neglected to mention during my interview that I had worked for two
summers as a temporary office worker. This experience helped me to
develop my secretarial and clerical skills.
I appreciate the time you took to interview me. I am very interested in
working for you and look forward to hearing from you about this position.
Sincerely,
Sam Daniels

Self Assessment Questions

10. ____________________________ letters are written to prospective
employers about an applicant’s suitability for a particular job. (Pick the
right option.)
a) Job acceptance
b) Recommendation
c) Job refusal
d) Thank you
11. Prospective employers like to know as soon as possible, whether a job
offer has been accepted or not. (True/False)
12. ___________________ letters are appropriate after the applicant has
attended a job interview.

14.5 Job Search Plan

It is essential to have an effective job search plan before you begin to look
for a new job. You can follow a traditional job search approach or a targeted
job search approach.

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Traditional job search approach

In a traditional job search approach, you apply for jobs in many
organisations that have job openings that are aligned with your career goals.
Organisations list job openings in newspapers, employment agencies and
the Web. Employment agencies can be government agencies or private
agencies. While submitting your resume at an employment agency, it is a
good practice to consider the agency personnel as your potential employer.
You can submit your resume and cover letters through online job portals like
http://www.monsterindia.com/ or http://www.naukri.com/. These job portals
list the jobs by industry, by functions and by location. You can also visit job
fairs and submit your resumes and cover letters. Job Fairs are events
arranged to enable fast track recruitment of employees.
Targeted job search approach
In a targeted job search approach, you seek employment in a particular
company. The company may not have any current job openings. You must
research the company and write a job letter that convinces the company that
your skills and abilities will be an asset to the company. In a targeted job
search, you can identify companies where you want to work through your
friends who may be employed in that company. You can also read business
magazines and identify companies that provide a good work environment.
The resume that you submit in company websites or job portals is called an
electronic resume. The content of an electronic resume is similar to a
traditional resume but differs in the manner of presentation. You can also
create an e-portfolio to present your talents, experience and achievements.
An e-portfolio includes the following:
 Technical skills
 Courses completed
 Workshops and seminars attended
 Awards received
 Volunteer work done
 Videos of presentations given
 Resume
You can also create a blog to provide details about your accomplishments to
your prospective employer.

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Self Assessment Questions

12. In a traditional job search approach, you seek employment in a
particular company. (True/False)
13. The resume that you submit in company websites or job portals is
called __________________________.

14.6 Summary
Let us recapitulate the important points studied in this unit:
 A document that summarises your background, educational
qualifications, experience and interests is known as a resume.
 Chronological and functional resumes are the two types of resumes.
 The important components of a resume are:
o Basic data
o Career objective
o Education
o Experience
o Skills/Other knowledge
o Organisations and activities
o References
 Job application letter or cover letter introduces or covers the major points
mentioned in the resume.
 The important components of a job application letter are:
o Address and salutation
o Opening
o Body
o Closing
 Job application letters are classified into two broad categories, namely,
solicited application letters and unsolicited application letters.
 The other letters used for communicating job related information are:
o Recommendation letters
o Job acceptance letters
o Job refusal letters
o Thank you letters
 It is essential to have an effective job search plan before you begin to
look for a new job.

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 The resume that you submit in company websites or job portals is called
an electronic resume.

14.7 Glossary
Chronological order: Arranged in order of time of occurrence.
Head hunters: A person whose profession is to find executives to fill open
positions in corporations; an executive personnel recruiter; also, a company
that performs a similar service.
Human Resources (HR): The department or support systems responsible
for personnel sourcing and hiring, applicant tracking, skills development and
tracking, benefits administration and compliance with associated
government regulations.

14.8 Terminal Questions

1. Explain the different types of resume.
2. What are the different components of a resume? Explain.
3. What is a cover letter? Explain its components.
4. Explain the different types of job application letters.
5. Write a note on the other letters related to employment or to a job
application.
6. Differentiate between a traditional job search approach and a targeted
job search approach.

14.9 Answers

Self Assessment Questions

1. Resume
2. Functional
3. True
4. Appearance
5. True
6. Opening statement

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7. Solicited application
8. Unsolicited job application letter
9. False. The last paragraph of unsolicited job application letter must ask
for action on the part of the prospective employer.
10. Recommendation
11. True
12. Thank you
13. False. In a targeted job search approach, you seek employment in a
particular company.
14. An electronic resume

Terminal Questions
1. Chronological resume and functional resume are the different types of
resume. For more details, refer sub-section 14.2.1.
2. Basic data, career objective, education, experience, skills etc are the
different components of a resume. For more details, refer sub-section
14.2.2.
3. A letter that contains the major or important points of a resume is called
a cover letter. Address and salutation, opening, body and closing are the
components of it. For more details, refer section 14.3.
4. Solicited application letters and unsolicited application letters are the two
different types of job application letters. For more details, refer sub-
section 14.3.1.
5. Usually in organisations letters such as recommendation letters, job
acceptance letters, job refusal letters and thank you letters are used for
communicating job related information. For more details, refer
section 14.4.
6. In a traditional job search approach, you apply for jobs in many
organisations that have job openings that are aligned with your career
goals. In a targeted job search approach, you seek employment in a
particular company. For more details, refer section 14.5.

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14.10 Case Study

Will Smith's Resume

Will Smith is a Ph.D. holder is neuroscience and is planning to apply for a
job and decides to prepare a resume.
Objective
Will Smith is planning to apply for the post of project manager and wants
to prepare a resume. He is an expert on the brain of the sea slug which
he studied while at school. At first glance, this knowledge of his may not
seem so important. But while studying slug brains, Smith developed a
sophisticated computer model to track the results of his experiments.
Smith had the computer skills to be a technical consultant. He also knew
that he had the personality to do well in the field because he had worked
for himself helping people purchase and set up home computers.
Smith realised that the most important part of his resume is the overview.
He plans to tell his potential employer most of what they want to know
about his technical capabilities in the first few lines of his resume. The rest
of the resume will show that he has the project management and people
skills to handle the job.
Writing the resume
The following are the important strategies Smith decides to implement
while creating his resume:
 He decides to use chronological format because his skills are clear and
well defined. As the overview establishes his concrete skills, the first
entry under the work experience is slightly out of the field.
 He describes his degree as 'Computational Neuroscience', to
emphasise the connection between his degree and the job.
 He states exactly what position he seeks and tries to convey as much
information as possible in the resume.
Will Smith, Ph.D.
Mayor Mansion,
1st Summer St.
Somerville, LS 02134
Phone: 555-1313
smith@gmail.com

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Overview
 9 years C/C++ development (Unix, Win95/NT, Mac OS)
 Ph.D. in computational neuroscience, strong quantitative
modelling and statistical skills
 Seeking project management position
Experience
Postdoctoral Fellow, Brandels University (1996-1998)
 Translated non-quantitative biological problems into quantitative
models.
 Developed C++ applications and user interfaces to test models.
 Designed computational models of active filters in neurons;
measures of salience in time-series.
Computer consultant, freelance (1996-1998)
 Helped nontechnical home users with system purchases and
troubleshooting.
 Web design and development (DHTML, CSS, JavaScript).
 System administration (Unix, Win95/NT): 20-machines campus
LAN.
Graduate student, Princeton University (1991-1996)
 Computer modelling of biophysical mechanism of learning.
 Analysis of feedback and gain control in biological neural network.
 Research on stochastic resonance, role of noise in neural nets.
Education
 Ph.D. computational neuroscience (neurobiology), Princeton
University. (1996).
 A.B. Neuroscience, philosophy, Bowdoin College. (1991)
Other Activities
 Cofounder and manager of college cafe, 1988-1991
 Interests: drawing, hiking, carpentry, poetry, juggling
Conclusion
In his job descriptions, Smith emphasises the analytical and technical
skills that will translate into consulting work, rather than the biological
knowledge involved. His freelance work was pretty informal, but it is good
to mention in the resume as it is a relevant experience to the job applied
for.

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Discussion Questions:
1. What is the main objective of Smith's resume?
(Hint: Refer to section 'Objective' in the Case Study)
2. Was Smith able to write an effective resume? Explain.
(Hint: Refer to sections 'Approach' and 'Conclusion' in case study)
(Source: Basalla, S.E., & Debelius, M. (2007). "So What are You Going to do
With That?": Finding Careers Outside Academia. London: The University of
Chicago Press )

Reference:
 Basalla S.E., & Debelius M. (2007). "So What are You Going to do With
That?": Finding Careers Outside Academia. London: The University of
Chicago Press.
 Fulton-Calkins P., & Stulz K. M. (2009). Procedures and Theory for
Administrative Professionals, 6E. U. S. A.: South-Western Cengage
Learning.
 Kennedy, J. L. Cover Letters for Dummies. 3rd ed. John Wiley & Sons.
 Sarmiento, K. (2009). The Complete Guide to Writing Effective Résumé
Cover letters: Step-by-Step Instructions. Florida: Atlantic Publishing
Group.

E-References:
 http://jobsearch.about.com/od/morejobletters/a/jobappletter.htm
– Retrieved on January 27, 2012.
 http://www.theresumebuilder.com/resume_tips.php – Retrieved on
January 27, 2012.
 http://jobsearch.about.com/od/resumes/a/resumecenter.htm – Retrieved
on March 26, 2012.
 http://www.career.cornell.edu/resumesAndCoverLetters/samples.html
– Retrieved on March 26, 2012.
 http://www.resumecoverletterexamples.com/ – Retrieved on March 26,
2012.

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Business Communication Unit 15

Unit 15 Employment Communication – Group

Discussions and Interviews
Structure:
15.1 Introduction
Objectives
15.2 Group Discussion
Skills required for a GD
Types of GDs
Strategies for GDs: dos and don’ts
15.3 Job Interviews
Interviewee’s perspective – before the job interview
During the job interview
After the job interview
The interviewer’s perspective
Chronology of the interview
15.4 Other Interviews
15.5 Summary
15.6 Glossary
15.7 Terminal Questions
15.8 Answers
15.9 Case Study

15.1 Introduction
In the previous unit we learnt how to write resumes and job application
letters. In this unit, we will discuss aspects of Group Discussion (GD) and
interviews both from the interviewer’s and the interviewee’s perspective.
Resumes and cover letters are used by prospective employers to screen
and shortlist candidates. The actual process of evaluation and selection is
done through group discussions and personal interviews. The new model of
business is based on the group, rather than the individual. Therefore, GDs
are useful in assessing the applicant’s ability to communicate effectively in a
group situation, rather than in isolation. Personal interviews assess the
applicant’s knowledge, skills and aptitudes. GDs and interviews require a
separate set of skills, as well as extensive preparation. This unit will focus

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on these exclusive skills and offer some guidelines for the preparation of
GD’s and job interviews.

Boston Consulting Group (BCG) is a global management consulting firm

and the world's leading advisor on business strategy.
The interview process of BCG is a dialogue which aims at getting to know
the candidates personally, learning more about their analytic capabilities,
and also introducing them to their people and work. BCG assesses
candidates’ ability of listening properly, communicating effectively, and
presenting themselves with tact, energy, and persuasiveness. Basically,
BCG looks for intellectual curiosity and creative thinking of candidates.
This group even encourages the candidates to work on live projects.
Interview processes may vary due to location. In BCG, there are two
rounds of case interviews, with three separate interviews in the first round
and two additional ones in the second. BCG divides interviews into the
following three parts:
 Personal background
 Consideration of a case study
 An opportunity for the applicant to ask questions
Table 15.1 shows some of the interview tips suggested by BCG.
Table 15.1: Dos and Don’ts of Interviews
Dos Don’ts
Listen to the interviewer and ask Rush into the analysis without
questions developing an understanding of the
problem
Structure the problem and develop a Panic if the answer is not apparent
framework
Think before speaking Defend your solution at all costs
Focus on high-impact issues Internalise your thought process
Generate a hypothesis and explore Stick to an artificial framework
options creatively
Demonstrate business judgement Circulate cases or use advance
knowledge
Make quick and accurate calculations ____________
Synthesise your thoughts and draw ______________
conclusions from your analysis

(Source: http://www.bcg.com/join_bcg/interview_prep/process/default.aspx)

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This unit helps you to answer the following questions:

What is a GD?
What are the skills required for GD?
What are the steps to make the interview successful?
This unit will explain some guidelines for the preparation of GDs and job
interviews.
Objectives:
After studying this unit, you should be able to:
 explain the meaning and purpose of group discussions
 demonstrate good group discussion skills
 list the types of group discussions
 assess interviewees’ conduct and performance in job interviews
 elucidate the processes involved in the job interviews

15.2 Group Discussion

“A GD is a methodology used by an organisation to gauge whether the
candidate has certain personality traits and/or skills that it desires in its
members. In this methodology, the group of candidates is given a topic or a
situation, given a few minutes to think about the same, and then asked to
discuss it among themselves for 15-20 minutes.1”In a GD, the members are
expected to arrive at a common consensus. During the discussion, it is
important that the intention of the members is to facilitate the exchange of
views. All the members of the group are required to participate and to listen
to the views of the other members. As a speaker, you should modify what
you say, based on the points that the other members of the group make,
while the discussion is in progress.
The purpose of GDs is to measure certain traits of the participants, which
are otherwise difficult to identify and take time to assess. It is common for
people who can communicate their ideas well and discuss effectively with
others, in a one-to-one situation, to become silent in a group situation. They

1. http://blog.karrox.com/acing-the-group-discussion-round-of-interview-group-discussion-interview-
tips/

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will not be able to present or discuss their ideas with the other members of
the group. A GD helps to identify people who have such group skills and
people who do not.
Today, it is very essential for job applicants to have group communication
skills. When you enter the real world, you do not work in isolation. Decision
making takes place after discussing relevant issues with others – be it
superiors, peers or subordinates. Very often, you will need to interact with
more than one person at the same time, which is very similar to a GD type
of situation.
A GD is coordinated by a person known as the ’moderator’. Sometimes,
there may be more than one moderator. The moderator is a neutral person,
either from the organisation conducting the GD, or a professional. The
moderator is normally an experienced person who has the ability to judge
the performance of every member of the group, even if it is a large one. The
moderator’s primary role is to evaluate the performance of every participant.
He/she is the one who announces the topic and keeps track of the time and
the way in which the GD progresses. Generally, the moderator does not
interfere during the GD. However, the moderator can intervene in the
following two situations:
 When the group discusses points that are not relevant to the given topic.
 When the discussion does not take place in an orderly manner.
 In the first case, the moderator may interfere to bring the discussion back
on track. In the second case, the moderator may stop the GD
temporarily, till order is restored. The moderator also has the right to ask
a participant, who is dominating the GD to stop talking. In other words,
the moderator is only a facilitator or an observer, who is present to help
the smooth functioning of the GD and to evaluate the participants during
the process.
 The GD is highly structured. The seating arrangement for a GD is
decided by the moderator. Generally, the participants are made to sit in a
circular or semi-circular fashion, a ’U’ shape, or in a rectangular
’boardroom’ seating arrangement. In most cases, the group size ranges
from 8 to 15 participants per group. However, it may also be larger,
depending on the organisation which is conducting the GD. The
participants are allotted specific seats in the GD.
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 The time that is normally allotted to a group for discussing the topic is 15
– 20 minutes. However, it is up to the moderator to terminate the
discussion much earlier, or to extend it by a few more minutes.
15.2.1 Skills required for a GD
There are certain specific parameters on which the participants of a GD are
evaluated by the moderator. Figure 15.1 depicts the specific parameters on
which the participants of GD are evaluated.

Fig. 15.1: Parameters of GD

Let us now discuss these parameters one by one.

Content
You will be tested for what you have to say about the topic. The moderator
will test how well-versed you are with the selected topic, the extent of your
knowledge and your general awareness. So content becomes an important
aspect of the evaluation process. It is very important for you to clearly
display your understanding of all the issues related to the topic.
In a GD, the group should gain from its interaction with you, because of
what you have to contribute. You should take every opportunity to exhibit
your knowledge of the topic in a GD. However, you should limit your ideas to
the topic under discussion and not go overboard, just to show that you are
well read.

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Communication skills
Communication skills refer to how you say something, which is as important
as what you say. The three aspects to communication are:
 Convey what you want to say correctly – Very often, the listener
interprets the message differently from what we intended to convey. This
suggests that we have not put across our ideas properly and correctly.
One of the skills required in a GD is to ensure that there are no such
gaps during communication and to convey the message clearly, so that it
is understood in the way in which it is intended.
 Listen to others – This is as important in a GD as speaking. A GD does
not mean that you have to master the skills of speaking alone. It is as
much about listening to others’ ideas, as about telling them your ideas.
You have to make sure that you focus your attention on what other group
members are saying, instead of concentrating only on speaking.
 Pay attention to language – Correct use of language is another
important aspect of communication. This does not mean using flowery
language just to impress. It means using words in the right context. A GD
should not be a forum to show off your language or vocabulary skills.
Simple English should be used, avoiding complex words and long winded
sentences.
Interpersonal skills
Interpersonal skills are the third parameter on which you are evaluated in a
GD. How each participant interacts with the other members of the group is
very important. Even in a real life situation in an organisation, all interaction
is among superiors, peers and subordinates. You should listen to and
understand the views expressed by the other group members, integrate
them with your ideas and help arrive at a consensus in the discussion.
There is also a certain etiquette, or code of conduct to be observed during a
GD. Shouting or interrupting to gain attention, or making rude remarks about
others’ contributions are to be avoided and will only disqualify your chances
of success.
Leadership skills
Participants with leadership skills will be easily noticed. Leadership means
showing direction to the group. It means displaying your knowledge,
communicating effectively and behaving maturely with your group members.

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What is required of you is an objective and balanced approach. You have to

keep in mind that you are not participating in the GD to make any policy
decisions, or to convince all your fellow group members that your point of
view is the only one that they should follow.
15.2.2 Types of GDs
Based on the topics that are given for GDs, they may be divided into the
following two broad categories:
 Topic-based GDs
 Case-based GDs
Let us now discuss more about these types.
Topic-based GD’s
In this type of GD, the moderator gives a topic to the candidates, or they
may be allowed a few minutes to select their own topic for discussion. By
the end of the discussion, the group should attempt to arrive at a conclusion
on the issue that is covered by the topic.
The topics that are chosen for a GD are generally of the following two types:
 Knowledge based topics
 Abstract topics
Let us now discuss these topics.
Knowledge-based topics
These topics require extensive knowledge to be able to contribute to the
GD. Take for example, the topic “The USA is more interested in the
petroleum of the Middle East, rather than in real peace there.” Unless you
know about the troops sent by the US during the Gulf War, the outcome of
the war and the views about other neighbouring countries, including India,
you will not be able to speak effectively on the topic. Knowledge-based
topics cover current economic issues and non-economic issues. Although
past issues are also given as GD topics, the focus is usually on topics of
current relevance. Some of the important categories of knowledge-based
topics are:
 Economic related topics – These may be related to domestic or
international issues and account for the majority of topics given for GDs.

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They require good content knowledge and familiarity with facts and
figures about the national and international economy. For example,
familiarity with critical economic indicators such as Gross Domestic
Product, the plan outlay, sectoral allocations from the budget, trade and
fiscal balances, export and import items and values, banking concepts
and interest rates, stock indices, etc., is needed.
 Social topics – Examples of such topics include, “Prostitution should be
legalised”, or “Religion is the opium of masses”. While social topics
generally have a greater national content base, some amount of content
may be region-specific. Therefore, when you are discussing social topics,
you should be clear about both the general nature of the topic, as well as
the specific manifestations of the social issue.
 Political topics – Such topics should be discussed in an objective
manner. You should not restrict your discussion to the problem that is
mentioned in the topic, but should also include connected topics. For
example, “What if the communists came to power?”, or “Plans to attract
foreign investments” are interdependent aspects that will have to be
studied and noted down, so that they are useful in a GD.
 Sports/film related topics – These are also common in a number of
GDs, since they are an integral part of Indian society. A general
awareness about sports and films is needed to be able to participate
effectively. Sports topics are usually selected from recently concluded
tournaments, such as World Cups and Olympics. They may be general in
nature, such as “Should companies announce holidays during
International Games?”, or specific to a particular game or sportsperson,
such as “Sachin Tendulkar’s cricket days are over…” The same is true
of film based topics. A number of films are now being used as case
studies in business schools.
 IT based – As Information Technology (IT) is a prominent sector, topics
based on this often feature among the list of topics for discussion. While
IT indicates technology, a discussion on IT based topics does not mean
that you need to have a thorough knowledge of programming or
computer hardware. However, a general awareness of topics such as e-
governance or networking would be needed.

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Abstract topics
These are topics which require common sense, more than content
knowledge. Topics such as “Black is black and white is white” and “A thing
of beauty is a joy forever” are examples of abstract topics. By nature, they
lend themselves to varied and widespread discussion. They can be best
discussed using appropriate examples.
Case-based GD
This type of GD is more structured and the direction of the discussion is
almost pre-determined by the identified problem. Unlike topic-based GDs,
these GDs essentially move towards a solution. They require less regulation
of the discussion by the moderator, since there is less scope for deviating
from the topic, compared to the topic-based GDs.
While discussing the case-based GDs, you will be required to assume the
role of the person in the case who needs to take a decision. In a topic-based
GD, you present your own views and opinions, without assuming the role of
anybody else.
A case usually has a problem, which requires a solution or decision to be
taken. Your approach in taking the decision and your interaction with the
other members of the group in the process of taking the decision will be
evaluated by the moderator. Sometimes, the moderator might ask you to
write a summary of the case discussion at the end.
15.2.3 Strategies for GDs: dos and don’ts
The most important thing a candidate must keep in mind while attending a
GD is that one has to be dressed in formal attire. A person’s attire and the
accessories carried by the person tell about the candidate’s individuality and
create an impression on the moderator. Besides the attire, there are many
dos and don’ts which a candidate must keep in mind while participating in
the GD. Table 15.2 depicts some dos and don’ts.
Table 15.2: Dos and Don’ts of GD
Dos Don’ts
 Keep interactions short and simple  Speak loudly
 Pursue principles of oral  Use negative sentences
communication
 Make even contributions  Adopt a casual approach

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 Conclude at regular intervals  Thrash hands

 Deliver your points slowly  Speak too fast
 Follow the principles of politeness  Let others dominate the group
discussion
 Validate your points with examples  Validate your examples with points

You must retain your individuality in a GD. You must not try to submerge
your individuality with that of the others. In order to showcase that you are a
leader, you have to portray your distinct personality.

Additional Reference:
Galanes, G. J., & Adams, K. (2010). Effective Group Discussion: Theory
and Practice. 12th ed. India: Tata McGraw-Hill.

Self Assessment Questions

1. A group discussion is coordinated by a person known as the
_____________.
2. Participants with leadership skills will be easily noticed. (True/False)
3. Topics which require common sense, more than content knowledge are
known as __________.
4. Identify the GD in which the direction of the discussion is almost pre-
determined by the identified problem. (Pick the right option)
a) Knowledge-based GD
b) Topic-based GD
c) Case-based GD
d) Abstract type GD
5. You must keep interactions short and simple in a GD. (True/False)

15.3 Job Interviews

The word ’interview’ is derived from Latin and French words meaning to ’see
between’ or ’see each other’. Interviews are conducted by organisations for
various reasons – for hiring employees, in the exit process – when an
employee is retiring, resigning or being fired, for employee performance
appraisals, etc.

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A job interview is the logical outcome of an effective resume and cover

letter, as well as good performance in a GD. It has the specific purpose of
determining how well the applicant will meet the job requirements and
perform on the job. It is structured, since the time, venue, duration, number
of participants and matters to be discussed are all determined in advance. It
is generally conducted in a formal manner, with the interviewer following a
pre-determined agenda, such as a list of questions to be asked.
The success of the job interview depends on the communication skills of the
participants, namely the interviewer(s) and the interviewee. Both the
interviewer and the interviewee should follow a step-by-step process, to
make the interview a success. Figure 15.2 depicts these steps.

Fig. 15.2: Steps for Successful Interview

Let us now discuss these steps in detail, from the point of view of both the
interviewee and the interviewer.
15.3.1 Interviewee’s perspective – before the job interview
As a job applicant, you will have to do some groundwork before the
interview, prepare to do well during the interview, assess your performance
and do some follow up after the interview.
Pre-interview planning is similar to preparing for a sales presentation. You
will have to sell yourself to the prospective employer, by highlighting your
unique strengths and by convincing the employer that you are the right
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person for the job. It also involves doing a thorough study of the
organisation for which you are attending the interview. Employers expect
applicants to gather information about the organisation in advance and do
not want to waste precious interview time providing such information.
Several sources are available for researching an organisation, including
business publications, financial newspapers, annual reports, company
websites and interviews with company employees. The information that a
job applicant needs to gather about a company includes the following:
 Name of the company
 Its status in the industry, in terms of market share, ranking, sales, assets
and number of employees
 Recent developments in the company
 Scope of the company – whether it is local, national or international
 Names of the top management
 Products and services offered
 Plans for future growth, such as expansion and diversification
In addition, you will need to gather job related information, such as the
following:
 Job title
 Required qualifications, knowledge and skills
 Job content
 The reporting structure – to whom would you report and who would
report to you
 Opportunities for training and development, for acquiring new skills
 Opportunities for career advancement
Preparation before the interview also involves doing a self-analysis, to
assess your own abilities, strengths, weaknesses, interests and
preferences. For example, are you a team player, or do you work better
alone? Would you prefer a travelling job or a desk job? Do you enjoy
interacting with people? You should list out the company and job
requirements in one column and your own qualifications and needs in
another column to see if there is a good fit. This will help you to prepare
better for the interview.

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Part of pre-interview preparation is to anticipate the kinds of questions that

might be asked by the interviewer and to prepare answers to these
questions. A list of commonly asked questions is provided in the sub-section
“Interviewer’s Perspective.”
Last, but most important, is planning your personal appearance and attire.
You need to find out if the company has a dress code and try to look and
dress as if you already work for that company.
15.3.2 During the job interview
Once you have gone through the preparation stage, you are ready to face
the actual interview. This is the most important stage of the job application
process, during which attention should be paid to the following aspects:
 Opening formalities – Since it is important to create a good first
impression, the way you greet and introduce yourself is important. Using
the name of the interviewer correctly, giving a firm handshake, waiting till
you are asked to be seated and sitting with an erect posture are common
courtesies that should be observed to project a good image.
 Non-verbal communication – This was discussed in detail in Unit 2. It
was emphasised that in face-to-face communication, non-verbal cues
can enhance communication and convey a positive message. Apart from
a firm handshake and erect posture, your non-verbal behaviour should
indicate that you are confident and attentive to what the interviewer is
saying. Direct eye contact, facial gestures and nodding to show that you
are listening are all important aspects of non-verbal communication that
should be observed during the interview.
 Group interviews – A group interview is one where a panel of
interviewers interview a single applicant. The group may comprise people
from different functional areas in the organisation, such as HR, Marketing
and Finance. When asked a question by one of the group members, it is
common courtesy to make eye contact with and address your responses
to all the interviewers.
 Two-way interview – Although the applicant’s task is primarily to listen
and the interviewer’s job is primarily to ask questions, it is in the hands of
the applicant to make the communication a two-way process. Apart from
answering questions, the interviewee should show interest in the job and
the company by asking relevant questions, wherever possible.
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 Honesty and humility – It is important to be honest and to avoid giving

vague answers or beating around the bush, if you do not know the
answer to a particular question. Employers appreciate honesty, rather
than over-smart answers. Humility is equally important. For example,
when asked about your weaknesses, do not state that you have no
weaknesses. Another point to remember is to avoid exaggeration. For
example, if you are being interviewed by a top executive of the company,
do not suggest that you can turn the company around.
 Positive answers – Do not speak ill of your previous employers. If asked
about your previous experiences, you may give honest feedback, but you
should do so tactfully. Your answers should always end on a positive
note.
 Salary discussion – Any discussion on salary should be initiated by the
interviewer and not by the interviewee, especially during the initial
interview. When asked about your salary expectations, you should
indicate a range, rather than a specific figure. Therefore, you should have
found out the general salary range for candidates with your qualifications
and experience, before the interview. Only then can you give a
reasonable response to the question. You also need to assess your own
experience, qualifications and whether you have other job offers, before
responding to a question on salary expectations.
 Closing the interview – How you close the interview is as important as
how you open it. Normally, the interviewer gives a signal when the
interview is over, either through body language, or by making a comment
on the next step for action. At this point, you must thank the interviewer,
give another firm handshake and say that you look forward to hearing
from the company soon. Sometimes, the interviewer may conclude by
inviting you to ask questions. In this case, you should only ask questions
that are relevant to the job or the organisation and avoid asking
questions related to your performance in the interview. It would be a
good idea to prepare a list of questions to ask and to reserve some of
these questions for the end of the interview.
15.3.3 After the job interview
This stage involves the third and fourth steps in the interviewing process –
evaluating the interview and taking appropriate action.

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From the applicant’s point of view, it is important to do a self-assessment of

performance during the interview. Even if the applicant is not expecting a
favourable outcome, it is important to send a thank-you letter to the
interviewer immediately, expressing gratitude for having been given the
opportunity of a face-to-face meeting. This will retain the goodwill of the
employer and increase any chances of being considered for future
openings. If the applicant has been given an indication of a favourable
outcome, the follow-up action should be even more prompt. Any documents
or certificates to be submitted should be sent without delay. If a second
interview has to be attended, it is important to start the preparation and
groundwork for this immediately.
15.3.4 The interviewer’s perspective
Just like the interviewee, the interviewer is equally responsible for the
success of the interview and needs to follow the four steps of the
interviewing process shown in figure 15.2.
Let us now discuss the steps followed by interviewer for conducting the
interview.
Preparation
This stage includes deciding the purpose of the interview (for example, a
preliminary interview or a final interview), the style of the interview (formal or
informal, structured or unstructured) and the physical set up (e.g., seating
arrangements). If the interview is to be a structured one for example, the
interviewer should make sure that all the questions are arranged in a proper
sequence and are adequate to get sufficient information from the applicant.
The interviewers also needs to assess and understand their own
communication and listening skills, personal prejudices, perceptions and
other barriers that may come in the way of effective communication.
Similarly, they should study the background, aspirations and values of the
interviewee in advance.
Meeting face-to-face
The interviewer should show flexibility and try to make the applicant feel at
ease during the interview. The interviewer should establish good rapport
with the applicant and ensure that that the communication is a two-way
process.

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 Most job interviews are structured and the interviewer goes through a list
of questions that have been pre-determined. Some commonly asked
interview questions are shown in table 15.3.
Table 15.3: Commonly Asked Interview Questions

 What are your long-term and short-term career goals? How are you
preparing to achieve them?
 What do you see yourself doing five years from now?
 What do you consider to be your main strengths and weaknesses?
 What motivates you to put forth your best effort?
 Why do you think you are suitable for this position?
 In what ways do you think you can contribute to our company?
 What are the qualities of a successful manager?
 What is your leadership style?
 What accomplishment has given you the greatest satisfaction? Why?
 Describe your most rewarding college experience.
 Describe any major problem that you faced and how you dealt with the
problem.
 How do you cope with pressure?
 What do you know about our company?
 What two or three things are most important to you in your job?
 How would you describe the ideal job?
 What academic subjects did you like best and least?
 What have you learnt from participation in extra-curricular activities?
 How would you describe yourself?

Evaluation
This stage arises at the end of the interview. The interviewer should assess
the interview, as well as the applicant’s performance, based on certain
parameters. The specific parameters and the method of assessment should
have been decided in advance.

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Action
Based on the evaluation of performance, the interviewer should decide
whether to ask the applicant to attend further interviews, or to make a
decision based on a single interview. The interviewer should also decide
how to communicate further with the interviewee – for example, by sending
an offer letter, a letter of rejection, or by calling for another interview.
The following guidelines help an interviewer to make the interview effective:
 Take brief notes during the interview, so that important points can be
referred to later, if required. There are two purposes of note-taking. First,
it helps to capture and remember the content of the interview and assess
interviewees' reactions precisely and second, it creates records to rebuild
the interview process or support an employment decision on the basis of
an interview.
 Use body language appropriately, to put the applicant at ease – for
example, a friendly tone, direct eye contact to indicate interest, a relaxed
body posture and nodding of the head to indicate acknowledgement, can
make the interview less stressful for the applicant.
 Organise questions in the right sequence – avoid asking the difficult
questions first, since they may make the applicant tense.
 Ask questions that allow the applicant to speak freely and open up a
discussion. Questions that may be answered with a “yes” or “no” do not
contribute much, whereas questions that ask “how”, “what” or “why”
(such as those mentioned in the table 15.3) will elicit elaborate answers
from the applicant.
15.3.5 Chronology of the interview
Most of the interviewers follow some common sequences to conduct an
interview. Table 15.4 shows the most common chronology followed by many
interviewers.
Table 15.4: Chronology of the Interview
Activity Time required
Introduction 2 to 5 minutes
Company information 5 to 10 minutes
Candidate assessment 10 to 30 minutes
Conclusion 3 to 5 minutes

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Introduction includes casual talk, facial gestures, smile, handshake, etc. The
interviewer can ask questions related to the company to check whether the
candidate is aware of the company. Candidate’s assessment is done on the
basis of qualifications, achievements and questions. In conclusion stage, the
interviewer suggests and determines when the interviewee can expect the
forthcoming response. The candidate can ask a few questions.

Activity 1:
Imagine that you are attending an interview in an organisation and that
you know an employee of the organisation. Prepare a list of questions
that you need to ask, the employee in order to get a complete idea of the
organisation.
(Refer section 15.3 for detailed guidelines.)

Additional References:
1. Allen, J. G. (2004) How to Turn an Interview Into a Job. New York:
Fireside.
2. Kennedy, J. L. (). Job Interviews for Dummies. 4th ed. NJ: John Wiley
& Sons.
Self Assessment Questions
6. Identify the stage that arises at the end of the interview. (Pick the right
option)
a) Evolution
b) Action
c) Preparation
d) Meeting face to face
7. Part of ___________________________ is to anticipate the kinds of
questions that might be asked by the interviewer.
8. Any discussion on salary should be initiated by the interviewee and not
by the interviewer. (True/False)
9. A ________________ is one where a panel of interviewers interview a
single applicant.
10. In _____________ stage, the interviewer suggests and determines
when the interviewee can expect the forthcoming response.

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15.4 Other Interviews

There are other kinds of interviews conducted in an organisation that play a
crucial role in the organisational growth and success. These interviews are:
 Appraisal interview
 Exit interview
 Grievances interview (grievances discussion)
 Role of employees during performance appraisal feedback session
Let us now discuss these interviews in detail.
Appraisal interview
An appraisal interview is one of the strategies for periodical assessment of
employees. Periodic assessment includes completion of self-assessment
forms and assessment by managers. The annual appraisal interview is the
best strategy for judging employees’ attitudes. A confidential face-to-face
conversation is an opportunity for both the employees and the managers to
discuss several issues. An appraisal interview involves more discussions
than question-answer sessions. The focus is mainly on the employee’s
career growth, weaknesses, areas which require improvement, areas which
need to be further strengthened, training requirements, job enhancement
and opportunities for promotion. The important points that must be kept in
mind to make the appraisal interview successful are:
 The managers must relieve the fears of the employees with their friendly
behaviour.
 The managers must initially talk about the positive aspects of the
employee’s performance and compliment the employee. This helps to
motivate the employee.
 The managers must point out the shortcomings of the employees in a
very calm and objective tone.
 The employees must be allowed to present their perspective of, the
issues and offer suggestions in a calm atmosphere. The managers must
try to understand the problems of the employees and offer help.
 The employees clearly understand the target that needs to be
accomplished.

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 The employees must also exhibit a positive attitude. They must try to
understand where exactly they have made mistakes. They need to
assure the managers that they will improve their performance in future.
Organisations need to ensure that the performance appraisal process
proceeds smoothly. As the performance appraisal interview is an important
part of employee assessment; it must be done with care. The manager and
the employee need to take the performance appraisal interview seriously as
the career of the employees depends on the ratings obtained.
Exit interview
An interview conducted by manager of a departing employee is termed as
an exit interview. A relatively neutral party, like a human resources’ staff
member, normally conducts an exit interview. This enables the employee to
be more candid and not worry about the consequences. Some organisations
employ a third party to conduct the interview process and provide feedback.
The idea behind conducting an exit interview is usually to collect data for
enhancing working conditions and retaining employees. Many things are
achieved in an exit interview. The organisation can derive the following
benefits from an exit interview:
 Discover the exact reason for the employee’s decision to quit. If there is
any misunderstanding or ill-feeling, there is always an opportunity to
clear it. Organisations must have a good relationship with past
employees to maintain their public image.
 Get feedback on employee’s attitudes and also get opinion of the
organisation’s policies. Employees who are quitting will have no fear and
are likely to express their opinion of the organisation’s employee
relations, public relations, sales policies, etc. quite freely.
The person conducting the exit interview does the following:
 Verifies all the details and information in the employee’s personal record
file to ensure that they are up-to-date.
 Gives the final pay cheque or information on when it will be ready and
how it will be handed over.
 Gives information about accrued benefits including earned leave or sick
leave that the employee has not used.

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 Gives information about group insurance, provident fund, or other

benefits and also how and when the dues will be paid.
 Ensures that all books, manuals, tools and equipments which were
issued to the employee have been returned.
An exit interview can be an added advantage to the organisation when it is
handled carefully and tactfully.
Grievances interview
An interview that allows the employees to bring a complaint to the
management team expressing their grievances with the functioning of the
organisation is referred to as grievances interview. At the initial stage, the
interview is less formal and most of the grievances are resolved at the time
of the interview. There are some difficulties that come in the way of
grievance interviews and they include:
 When employees appear before their superior, they may be unable to
express themselves completely and clearly because of the exalted status
of the latter.
 The other difficulty occurs when the interview turns into a test of strength
between the two parties. In such a case, both the employer and the
employee must try to create a climate of openness. This enables the
interview to provide an opportunity for counselling and resolving the
grievance.
The employer’s approach must be clinical or remedial rather than legalistic
or punitive.
Role of employees during performance appraisal feedback session
The purpose of a performance appraisal feedback session is to reward an
employee’s good attitudes and achievements and develop strategies for
improving their weaknesses. Performance appraisal feedback sessions can
be very stressful. As employees may be concerned about giving or receiving
critical information, it is necessary to carefully manage the feedback
session. On a regular basis, the employees must be provided positive
feedback immediately after an admirable behaviour and constructive
feedback immediately after a guilty behaviour.
Employees who informally receive feedback on a regular basis are not much
surprised by the annual formal performance appraisal results and will be
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better prepared to analyse the development issues. Performance appraisal

feedback sessions must be conducted in a neutral setting, like a conference
room. Conducting appraisal feedback sessions in the manager’s office,
mainly if the feedback is critical, creates an uncomfortable office
environment.
In many circumstances, it is sensible to schedule the feedback sessions at
definite intervals. The circumstances might include when an employee is
assigned new tasks, starts a new or extensive project or when it is
impossible to agree on definitive objectives, for example, when external
factors are unclear or uncertain.
Self Assessment Questions
6. An ____________ interview is one of the strategies of periodical
assessment of employees.
7. An interview conducted by manager of a departing employee is termed
as an exit interview. (True/False).
8. Performance appraisal feedback sessions must be conducted in a
neutral setting, like a ___________________.
15.5 Summary
Let us recapitulate the important concepts discussed in this unit:
 Employment communication also includes participating in and conducting
group discussions (GDs) and attending and conducting job interviews.
 GDs and job interviews are used to evaluate and select job applicants
who have been screened and short listed, based on their resumes and
cover letters.
 A GD is a discussion on a specific topic among a group of participants,
with the objective of arriving at a solution to a problem, or at a common
consensus.
 The purpose of a GD is to evaluate the group communication skills of a
job applicant, as opposed to his or her individual communication skills.
 A GD simulates the real-world situation, since working in an organisation
and taking decisions require interaction with others, rather than acting in
isolation.

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 The GD is coordinated by a ’moderator’ who is a neutral person from the

organisation conducting the interview.
 The moderator’s role is one of an observer and a facilitator, who ensures
the smooth conduct of a GD.
 The moderator must also evaluate the performance of all participants in
the group.
 Participants of a GD are generally evaluated based on the following
criteria:
o Content
o Communication
o Group behaviour
o Leadership skills
 GDs are of two different types –Topic based GDs and Case based GDs.
 Topic based GDs in turn may be knowledge based or abstract topics.
 Case based GDs are more difficult, since they require analytical,
decision-making and problem-solving skills.
 Before the interview, the interviewee has to do some groundwork,
including the following:
o Gather company and job related information
o Do a self-analysis
o Anticipate the questions that might be asked and prepare answers
o Plan his/her personal appearance
 During the interview, the interviewee must pay attention to the following
aspects:
o Opening and closing formalities
o Using body language correctly
o Making the interview a two-way process
o Addressing all interviewers in a group interview
o Handling salary discussion tactfully
o Showing honesty and humility
o Giving positive answers

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 After the interview, the interviewee must assess candidate’s performance

and take appropriate action such as sending thank you letters.
 A job interview is generally structured and requires both the interviewers
and the interviewees to follow the following four steps during interview
process:
o Preparation
o Meeting face to face
o Evaluation
o Action
 The interviewer must also prepare for the interview, by determining the
purpose, style, physical set up and the number and type of questions to
be asked.
 The success of the interview depends on both the interviewer and the
interviewee.
 An appraisal interview is one of the strategies for periodical assessment
of employees.
 An interview conducted by manager of a departing employee is termed
as an exit interview.
 An interview that allows the employees to bring a complaint to the
management team expressing their grievances with the functioning of the
organisation is referred to as grievances interview.

15.6 Glossary
Note-taking: Interviewer takes regular and detailed notes of interviewees’
behaviours and verbal responses during each interview.

15.7 Terminal Questions

1. What are the different types of GDs? Explain.
2. What are the skills required for a GD?
3. As a job applicant, how will you prepare for an interview?
4. “Interviewers follow certain steps during the interview process.” Explain.
5. What are the important points that must be kept in mind for the appraisal
interview to be successful?

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15.8 Answers

Self Assessment Questions

1. Moderator
2. True
3. Abstract topics
4. c) Case-based GD
5. True
6. a) Evolution
7. Pre-interview preparation
8. False. Any discussion on salary should be initiated by the interviewer
and not by the interviewee.
9. Group interview
10. Conclusion
11. Appraisal
12. True
13. Conference room
Terminal Questions
1. GDs are of two different types:
 Topic based GDs
 Case based GDs.
For more details, refer sub-section 15.2.2.
2. Candidates of a GD are evaluated based on the following criteria:
 Content
 Communication
 Group behaviour
 Leadership skills
For more details, refer sub-section 15.2.1.
3. As an interviewee, you will have to do some basic preparations before
the interview. You need to prepare to perform well during the interview,
assess your performance and do some follow up after the interview. For
more details, refer sub-section 15.3.1.
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4. Interviewers have to follow four steps during interview process. They

are:
 Preparation
 Meeting face to face
 Evaluation
 Action.
For more details, refer sub-section 15.3.4.
5. The important points that must be kept in mind for the appraisal
interview to be successful include:
 The managers must relieve the fears of the employees with his
friendly behaviour.
 The managers must point out the shortcomings of the employees in
a very calm and objective tone.
For more details, refer section 15.4.

15.9 Case Study

Ramco’s Group Discussion

Introduction
Ramco Software Private Limited conducted a Group Discussion (GD) to
select candidates. The candidates were divided into eight groups. The
panel of judges tested each group on the basis of the GD. The judges gave
topics of general interest to the groups and each group was supposed to
express their opinion on the given topic for about 20 minutes.
Method
The judges gave most of the topics from the current political or economic
scenario to determine if the candidates were aware of current affairs.
They wrote each topic on separate slips of paper and kept these slips in a
box.
The judges selected one group which had six candidates- Mr. A, Mr. B,
Mr. C, Mr. D, Mr. E and Mr. F.

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Group Discussion
The judges asked a candidate from the group to pick a slip. The topic in the
slip was "Multinationals: Bane or Boon". The judges gave one minute to
every candidate to think on the given topic and start the discussion. Mr. A
started the discussion.
Mr. A: This is a good topic. I am against multinationals. We have Coke and
Pepsi. Do we need them? We can manufacture our own soft drinks.
Multinationals destroy the local industry and sell non-essential products.
Mr B: I agree with you. What is the fun of having Coke and Pepsi? We
have our own Campa Cola.
Mr C: I think water is good enough.
Mr D: We are not here to discuss soft drinks. The topic given to us is a
much larger one. First, let us define multinational companies. They are
merely large companies which operate in a number of countries. There
could be some Indian multinationals also. So there is nothing wrong with
them. The point is whether they have a good or bad impact on the host
countries. We have to discuss their business practices and find out
whether they are desirable or not.
Mr E: That is a very good introduction to the topic. Multinational companies
do serve an important function. They bring new products and technologies
in countries which do not have them. And it is not just Coke and Pepsi.
They set up power plants and build roads and bridges, which really help in
the development of host countries.
Mr F: But are they all that good? We have seen that they destroy local
industry. In India, they just took over existing companies. They came in
areas of low technology. Moreover, we have to see why they come at all.
They come for earning profits and often remit more money abroad than
they bring in.
Mr A: I agree with you. I am against multinationals. We can produce
everything ourselves. We should be swadeshi in our approach. Why do we
need multinational companies?
Mr E: We may not need multinational companies but then it also means
that our companies should not do business abroad. Can we live in an

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isolated world? The fact is that we are moving towards becoming a global
village. The world is interconnected. Then we have also seen that foreign
companies bring in good business practices. Look at foreign banks. They
are so efficient and friendly that the nationalised banks look pathetic in
comparison. I think we can learn a lot from multinationals if we keep our
eyes and mind open.
Mr B: Take a look at McDonald's. They are providing quality meals at
affordable prices. One does not have to wait at their restaurants.
Mr C: How do you account for the fact that they take out more than they
put in and thus lead to impoverishing the country?
Mr D: The fact is that every poor country needs foreign investment. Poor
countries often lack resources of their own. That is why they have to invite
foreign companies in. There is nothing wrong in this because then products
like cars, air conditioners, etc. can be made in poor countries. Often
multinationals source products from different countries and this helps to
boost their export earnings.
Mr E: We have been talking about Coke and Pepsi. It is well known that
Pepsi is in the food business also and has helped farmers in Punjab by
setting up modern farms to grow potatoes and tomatoes. Modern practices
have helped the people in that area.
Mr A: I still feel that multinationals are harmful for the country.
Mr D: Well, there could be negative things associated with such
companies. They may not be very good in their practices. But can we do
without them? I think the best way is to invite them but also impose some
controls so that they follow the laws of the country and do not indulge in
unfair practices.
Mr E: I think laws are applicable to everyone. Very often officials in poor
countries take bribes. The fault lies not with the company which gives a
bribe but the person who actually demands one. Why blame the
companies for our own ills?
Mr A: What about the money they take out?
Mr D: We have had a good discussion and I think it is time to sum up.
Multinationals may have good points and some bad ones too, but

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competition is never harmful for anyone. We cannot live in a protected

economy any longer. We have been protected for many years and the
results are there for everyone to see. Rather than be closed about
multinationals, let us invite them in selected areas so that we get foreign
investment in areas which we are lacking. Laws can be strictly enforced to
ensure that companies operate within limits and do not start meddling in
political affairs.
Analysis
Mr. A started the discussion but points were not relevant. Later, he could
not give any point on multinationals. In the beginning itself he told that he
was against the given topic. It is one of the drawbacks of GD. One must
not begin either talking by for or against the topic. The first step of the
discussion is to introduce the topic without taking sides.
Mr. B and Mr. C were below average as they did not intervene much. They
also did not provide relevant points.
Arguments of D and E were better than others. Both Mr. D’s and Mr. E’s
points were relevant. It showed that they had good knowledge on the role
of multinationals. Mr. E approach was much better than any other
candidates as he intervened many times with relevant points.
Result
Judges chose two candidates from that particular group. In the panel Mr. E
was the first rank holder. Mr. D got the second rank.
Discussion Questions:
1. What was the method adopted by the judges to conduct the GD?
(Hint: Refer Method section of the case study)
2. Why were candidates D and E chosen?
(Hint: Refer Analysis section of the case study)
(Source: http://www.freshersworld.com/interview/gd_mock.htm)

References:
 Adler, R. B. & Marquardt, J. (1999). Communicating at Work: Principles
and Practices for the Business and the Professions. McGraw-Hill
College.

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 Collins, D. (2009). Essentials of Business Ethics: Creating an

Organisation of High Integrity and Superior Performance. New Jersey:
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 Himstreet, W. C. & Baty, W. M. (1987). Business Communications:
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 Kumar, R. (2010). Basic Business Communication: Concept, Applications
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 Lesikar, R. V. & Flatley, M. E. (2002). Basic Business Communication.
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 Milne, Morrison, J. (1994). Business Language Practice. England:
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 Ober & Scot. (2000). Contemporary Business Communication. India: All
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 Wiley, J. (2005). The Economist Style Guide. 9th ed. London: The
Economist.
E-References:
 http://www.infotoday.com - Retrieved on January 30, 2012.
 http://www.microsoft.com - Retrieved on January 30, 2012.
 http://www.bcg.com/join_bcg/interview_prep/process/default.aspx -
Retrieved on January 31, 2012.
 http://blog.karrox.com/acing-the-group-discussion-round-of-interview-
group-discussion-interview-tips/ - Retrieved on January 31, 2012.
 http://www.freshersworld.com/interview/gd_mock.htm - Retrieved on
January 31, 2012.
 http://media.leidenuniv.nl/legacy/Supervisors-guide.pdf - Retrieved on
March 26, 2012.
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