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LESSON NOTES
Executive Business Communication
Subject Code:
3ZA
Year:
II
Semester:
III
Unit:
I

Syllabus
1. Business Communication: Meaning
2. Objectives
3. Media
4. Barriers
5. Importance of Effective Business Communication
6. Modern Communication Methods
7. Business Letters: Need
8. Functions
9. Kinds
10. Essentials of Effective Business Letters - Layout.

BUSINESS COMMUNICATION

INTRODUCTION

Communication is a skill to exchange messages, facts, ideas, opinions, and to

express emotions. The word “Communication” is derived from the Latin word “Communico”
which means “To Share”. It is the act of sharing or imparting a share of anything.

MEANING AND DEFINITION OF COMMUNICATION.

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Communication is the process by which information is transmitted between

individuals and / or organizations, so that an understanding response results.
Communication is an exchange of facts, ideas, opinions, or emotions by two or more
persons.

DEFINITION :

According to peter little, “communication is the process by which information is

transmitted between individuals and/or organizations so that an understanding response
results.”

NEED / IMPORTANCE FOR COMMUNICATION

1. Technological improvements:-
We must persuade employees to accept new technology. Regular training of
staff becomes necessary to improve their knowledge and to provide them the skills
needed to apply new technology.
2. Human relations:-
Effective communication between management and employee can be
developed by, Participation of employees in the decision making process and other means
of communication
3. Increase in size:
A large business firm has factories or offices in different parts of the world.
The head office of the company must always be in close touch with branch offices. An
efficient system of communication is required for this purpose.
4. Growing specialization:
Sound communication is essential for ensuring mutual co-operation and
understanding between different departments. Otherwise the organization cannot function
smoothly.
5. Cut-throat competition:-
Liberalization and globalization have resulted in severe competition between
public sector, private sector and foreign banks. Persuasive communication in the form of
advertisements, personal contacts and publicity becomes essential to survive in the race of
competition.
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6. Public Relations:-
Society expects more and more from managers. Business has to keep
Government, distributors, suppliers, investors and other sections of society well informed
about its contribution to the society.
7. Trade union movement:-
Management must consult union leaders on several matters. Regular
exchange of information and ideas between managers and union helps to maintain good
relations between them.

8. Personal asset:
Communication skill is essential for success in every job. Manager is
required to give speeches, write documents and conduct interviews. Teachers, advocates,
journalists, receptionists need high degree of communication skill.

OBJECTIVES OF COMMUNICATION

Communication can be used for any or more of the following objectives:

Information
One of the most important objectives of communication is passing or receiving
information about a particular fact or circumstance. It can be done through spoken or written
language.
Manager needs complete, accurate and precise information to plan and organize.
Employees need it to translate planning into reality.
External Information
It is the information about its products, credit, raw material, government rules
and regulations, advertising media, latest developments in the field of science and
technology.
Internal information
 Information on job assignments and precedence governing them;
 Information on status and decision making powers;
 General information on the policies and activities of the organization.
Advice
Advice involves personal opinions, is likely to be subjective. Advice is given to him
either to influence his opinion or his behavior.
Business man may not have special knowledge of all branches like finance, tax,
publicity, engineering, public relations etc. If he wants to run his business successfully, he
has to seek expert advice frequently.
Counselling
Counselling is very similar to giving advice. Counsel is objective and impersonal.
Companies which are concerned with employee’s welfare have counseling centres for their
employees.
Services of specialists are engaged for the purpose and employees receive free
medical advice, legal advice and guidance. Counseling can be successful if there is a two way
communication.
Order
Order is an authoritative communication. It is a directive to somebody, normally a
subordinate, to do something to alter the course of something he has already done, or not to
do something.
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Persuasion
Inducing, compelling or providing a person to act mostly in a positive way is known
as persuasion. Persuasion is an important objective of communication.
Management tries to persuade their workers to put in their best effort; sellers persuade
their customers to buy etc. It takes place through some kind of communication.
Education And Training
Education means imparting instruction, character building, enriching mental faculties,
giving training to human beings etc. Communication is vital in education.

Motivation
Inspiring the interest in their job in the minds of the employees is known as
motivation. If the people are motivated, they will have high morale and this will be low if the
level of motivation is low. Motivation determines the behavior of a person.
Suggestion
Suggestions coming from employees are upward communication. The employees
involved in the work have a better understanding of the short comings and can make useful
suggestions which are collected at regular intervals by means of a suggestion or ideas.
Subordinates normally give suggestions for improvement.
Warning
Warning is a forceful means of communication. It may be given orally or in writing.
Very often, we come across notices like “No Smoking” “Beware of dogs”, “Danger” etc.
There are some warnings or cautions in office and factories, higher officials give warnings to
their subordinates, by issuing memos.
Morale Boosting
Morale refers to team spirit and co-operation of people for a common purpose. The
management feels that if the morale is high, production would be higher and on the other
hand if it is low, the production would be low.
Appreciation
Praising of initiative, good effort and work by employees is known as appreciation. It
is very useful for creating a good attitude. It may be conveyed orally or in writing. If given
publicly it will have better effect.

ELEMENTS OF COMMUNICATION
1. Sender (or) communicator:
Sender is a person who sends a message. He may be a writer, speaker or actor.
2. Receiver (or) communicator:
Receiver is a person who receives a message. The receiver may be a reader, listener or
observer.
3. Message:
Message is the subject matter of communication. It is in the form of a verbal or non
verbal language. Verbal language means spoken or written words or numbers. Non verbal
language can take the form of facial or body gestures or expressions.

4. Channels of communication:
Channel is the media by which the message is flown from the communicator to the
communicatee. It acts as a connecting link between them.
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5. Feedback:
The last stage in the communication process is feedback; the receiver makes it known
to the sender that he understood the message. Feedback is the response, reaction or reply
made by the communicatee.

TYPES / CHANNELS OF COMMUNICATION

Types of communication can be classified into:

On the basis of organizational structure.

1. Formal communication
2. Informal communication.

1. FORMAL COMMUNICATION:-
In a Formal communication system, matters with regard to who should communicate,
what, when and how to be communicated and whom to be communicated are all clearly
defined.
Formal communication takes place by formal channels of the organizational structure
established by the management.
Merits of a Formal communication
 It is useful for reaching out easily to the branches and offices of an organization
spread far and wide.
 Allows flow of information in an orderly and authentic manner
 Satisfies the people in managerial positions and helps them in controlling the
subordinates. It enables managers consolidate the organization.

Demerits of a Formal Communication

 Slow and rigid and time consuming.
 Free flow of information is no there as messages having to pass through the
prescribed routes.
 Expensive as the message is generally in writing.
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Forms of formal Communication

Downward communication:-
Communication is said to be downward when it moves from the top to the bottom.
Downward channels are used for passing managerial decisions, plans, policies and
programmes to subordinates down the line for their understanding and implementation.
Downward communications are used by the superiors to convey their orders, instructions and
directions to their subordinates.

Upward communication:-
Communication is said to be upward when it flows from the subordinates to the top
management.
Upward communication is used by subordinates for transmitting information, ideas,
views and requests to their superiors on matters relating to their jobs, responsibilities,
suggestions, progress of work and response, grievances and problems of subordinates to their
superiors.
Upward communication may be oral or written.
It also enables the management to know the extent to which the subordinates
understand the policies and programmes of the organization.
Horizontal communication:-
Communication is horizontal when it flows between individuals at the same
operational level (i.e) between two departmental heads.
The purpose of the horizontal communication is to enable managers and others of the
same rank to interact on important matters, to exchange information and co-ordinate their
activities without referring all matters to the top level management.

2. INFORMAL COMMUNICATION (OR) GRAPEVINE COMMUNICATION:-

It is based on the informal relationship among the members of the organization.
Usually it will be in oral and may be conveyed by a simple gesture, glance, nod or smile.
The informal relationship that supplements the formal organizational relationship is referred
to as the “grapevine”. Deals on the matters of task related and non-task related.

Merits of the Informal (or) Grapevine communication:-

 Speedy transmission:- transmits information very fast and secretly..
 Useful feedback:- Manager can obtain useful feedback much faster than the formal
channels.
 Satisfaction:- Makes employees closer to each other and creates in them sense of
belonging. It strengthens their team spirit.
 Support to formal channels:- It serves as a supplementary channel of
communication. Grapevine can be used to transmit information which is unsuitable
for the formal channels.
Demerits of the Informal (or) Grapevine Communication:-
 Misunderstanding:- Grapevine often carries incomplete information and may create
misunderstanding.
 Incredible:- Information spreads through the word of mouth it can not always be
taken seriously.
 Damage to the organization:- Gossip and rumour are part of grapevine it may distort
the true picture.
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MEDIA USED FOR COMMUNICATION:-

1. ORAL COMMUNICATION:-
Oral communication refers to face to face communication.
The sender and receiver of the message are in direct contact.
If the listener does not understand the message, he can ask for a clarification or raise
questions and get the answers and it is the cheapest method of communication.

Merits of oral Communication.

1. It is economical
2. It is more flexible and combined with gesture and expressions.
3. It is more effective as there is direct contact between the communicator and
communicatee.
4. It leads to better understanding because doubts are clarified.
5. It is faster and saves time.
Demerits of oral Communication.:-
1. It is not suitable where the message is long and complicated and when the
audience is large.
2. It does not provide any record for future reference.
3. It is time consuming and costly.
4. It can be irritating and wasteful when the persons involved are poor in
communication skills.
Forms of oral communication:-

Face to Face Communication:-

In a face to face communication, communication take place face to face between two
individuals or among a small group of persons. Ex: Meeting, Interview etc.

Mechanical Devices for oral communication:-

(a) Telephones:-It is used for oral communication with persons both inside and
outside the organization.
(b) Signal:- (call, Bell, Buzzer, Coloured bulbs) Signals are cheap and simple devices
for calling a person. The signal only indicates that a particular person is wanted
and the actual communication takes place only when the person arrives.
(c) Speaking Tubes:- Speaking tubes though for the most part displaced by the
telephone, means of internal communication with less cost.
(d) Intercom system:- This system has been invented by the Indian Telephone
Industries, Bangalore, provides quick verbal communication. In an organization,
various individuals can be equipped with the speaking-talking unit.
(e) Electric paging system: Another method of internal communication. In big
organization like departmental stores, super bazaars, Insurance companies and
manufacturing plants, the executives some times go around from one department
to another. When some urgent matter arises it is very difficult to find out or
search out the executive by telephone device.
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2. Written communication:-
Written communication is very wide in its scope and covers entire paper work relating
to all kinds of transactions, agreement, proposals etc.
The main work of any office is written communication. This helps in conveying
messages to the external world. It may be sent by different kinds of postal services or by hand
delivery.
Merits of written communication:-
1. Can be kept as a legal record.
2. Can be retained for purpose of future reference.
3. Formulated more carefully then oral communication.
4. Can save money and time.
5. Used for all practical purpose in every organization.

Demerits of written communication:-

a. Complicated or difficult matters cannot be handled through written communication.
b. Confidential matters cannot be in writing.
c. Instructions to be subordinate can be best given orally than in writing
d. The reaction of the receiver can be best assessed only in a face to face communication.
e. For Expressing the feelings

Forms of written communication are as follow:

 Telex:- Telex is a telegraphic device. It has the facility to type out message
simultaneously on the sender’s machine and the receiver’s machine. Telex connections
are obtained through the post office. Each subscriber has a number for getting
connections. The machine is fitted with a roll of paper, and message is typed out
continuously.
 Reports:- A report may be defined as an orderly and objective presentation of
information.
Assists in decision-making and problem solving. For example status reports, minutes of
meetings.
 Memo:- A memo is an informal message between members of a company and
generally relates to daily work. It may used for giving information, instructions, or
reminder
 Telegram:- A telegram is used for external communication and for contacting traveling
salesman, branches or workers in another town. It is used when urgent action is require.
 Notice:- A notice is required when many people within the company have to be
informed. It is the best method of mass communication within a company.
Notice boards have to be placed at proper location, kept up-to-date and attractively laid
out. The drafting of the notice is even more important.
Notices need simple wording and a direct style so that they may be easily understood.
The message should be short, and contain only the information meant for everyone.
 E-Mail:- (Electronic Mail) E-mail is a message transmitted electronically over a
computer network.
For the purpose of such an electronic transmission of a message, cable, telephone lines or
satellites should connect the computer.
The receiver’s computer receives the message in a fraction of a minute and stores the same.
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3. Non-Verbal Communication:-
All the communication that occurs in between the people in an organization may not
be spoken, heard written or read. Some may be non-verbal i.e. unwritten and unspoken. The
most important aspect in communication is “to hear what isn’t being said”. Eg. Smiling while
greeting your colleague.

Forms of Non-verbal communication:-

Space and Territory:-
Different types of communication occur at different distances. Competent
communication determines their own personal space needs and those of others.
Body movement:-
(1) Facial expression – successful communicators use facial expression as a very effective
media of communication. The most expressive part of human body is face – especially eyes.
(2) Gestures- Gesture is a motion of the body or limbs. It is an action intended to express the
idea of feeling or to enforce an argument. Gesture includes hand and upper body movement.
And
(3) Body stance –It includes posture of standing, placement of arms and legs, distribution of
weight etc. by seeing the standing position of a person, one can understand whether he is
interested in the talk or feel bore etc.
Physical Appearance:-
Physical appearance of a person is important for creating a good impression. This is
because attractive people tend to be seen as more intelligent and more likeable.
Voice qualities:-
No one speaks in single tone i.e in an unvaried pitch of the voice. Voice qualities
include volume, speed, pitch, tone, and accent. They carry both intentional as well as
unintentional messages. Based on the pitch of the voice, the circumstance when it was
conveyed etc., same sentence might carry different meanings.

4. Audio-Visual Communication:- Audio-visual communication is the combination of sight

and sound. It makes use of short films, slides, videotapes, telecasts etc. Examples are small
advertisement films, or documentary films related to social issues etc. screened just before
the main picture.
It is most suitable for mass publicity, propaganda and mass education and lasts longer in the
minds of listener.

Some of the other types of communication are :

1.According to Area of Operation

2. According to Relationship

3. According to Direction

4. According to Means.
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1. According to Area of Operation:

(i) Internal Communication:
‘Internal Communication’ is a process of communication made within the
organisation between the superiors and subordinates or between peer persons or between two
or more groups. It may be formal or informal, oral or written. It may flow upward, downward
or horizontal as per requirement.

ADVERTISEMENTS:

The oral means of internal communication are face-to-face discussion, verbal instruction,
message, telephone, intercom, meeting, conference or seminar, speech, etc. The written
methods include notice, circular, memo, report, chart or graph, bulletin, e-mail, fax, etc.

(ii) External Communication:

A business organisation needs to communicate with the external agencies like
customers, suppliers, investors, other business houses, banks, insurance companies,
government offices, etc. Such communication may be called ‘External Communication’ as its
area of operation is with the people outside the organisation.

International business organisations need to communicate with foreign individuals,

government agencies/organisations, etc. Oral external communication is made through face-
to-face discussion, meeting, conference, seminar, telephone, speech, etc. The written process
includes notice, letter, telegram, report, e-mail, advertisement, fax, press release, etc.
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2. According to Relationship:
(i) Formal Communication:
‘Formal Communication’ is the transmission of information or direction in formal
organisation structure. Formal communication maintains superior-subordinate relationship.
When a manager directs his deputy manager to carry out some task, it is an instance of formal
communication. Formal communication directs the employees in a definite manner to know
what the managers intend them to do and is generally codified and expressed in writing in
manuals, handbooks, bulletins, annual reports, etc. So, it is rigid and thus lacks the quality of
flexibility.

(ii) Informal Communication:

‘Informal Communication’ is the communication between the members of a group or
more than one group—not on the basis of formal relationships in the organisational structure
but on the basis of informal relations and understanding among the people at the same or
different levels. It is referred to as the ‘grapevine’ which indicates informal means of
circulating information or gossip. It does not follow any structural route or process. It moves
towards any direction. It is direct, spontaneous, flexible, unplanned, and fast-flowing.

3. According to Direction:
(i) Vertical Communication:
Upward and downward flows of communication constitute ‘Vertical
Communication’. In such type of communication message or information is transmitted from
the higher authority to the subordinates, and vice versa.
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(a) Downward Communication:

Downward communication means the flow of information or understanding from the
persons occupying higher positions to those at lower levels. It usually passes through written
orders, reports and manuals and is the most common feature of all business organisations. In
the organisation, people at lower levels have a high degree of fear and respect towards such
communication which leads to high degree of its acceptance.

(b) Upward Communication:

Communication is said to be upward when it moves from the subordinates to the
superior managers. Submission of reports and suggestions, opinions and attitudes, complaints
and grievances belong to this category. ‘Upward Communication’ is less common because it
is less favoured by the top managers due to its troublesome and perplexing nature.

ADVERTISEMENTS:

(ii) Horizontal Communication:

‘Horizontal or Sideways Communication’ takes place between two subordinates or
managers at the same level and under the same superior. It is specially important in large or
decentralized organisations. Staff people help to transmit information among the positions
and units at the same level.

(iii) Diagonal Communication:

Communication among the executives or employees of different departments is called
‘Diagonal Communication.’ No definite direction is followed—upward, downward and
horizontal communication takes place in it. Both oral and written means of communication
are used. It is mainly informal. A good relation between the subordinates and superiors is
built up. It is very useful in solving the problems and avoiding conflict, but the chances of
spreading rumors are high.
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ADVERTISEMENTS:

4. According to Means:
(i) Verbal Communication:
‘Verbal or Oral Communication’ implies the transmission of orders, messages or
suggestions through spoken words. It may be face-to-face or through a speaking instrument
like telephone.

Verbal communication may pass directly between one person and another or group or
indirectly through meetings and conferences. Whatever tool is used, it saves much time and
permits personal contact. This fosters a friendly and co-operative spirit, ensures quick
understanding and proper explanation, encourages questions and answers, and stimulates
interest.

(ii) Written Communication:

A ‘Written Communication’ means the sending of message, order or instruction in
writing through a letter, circular, manual, report, telegram, office memo, bulletin, etc. It is a
formal method of communication and is suitable for long distance communication and
repetitive standing orders. It creates the records of evidence and future reference, and can be
sent to many persons at a time.
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(iii) Gestural Communication:

Communication can be made through movement of body, facial expression, smile,
modulation of voice, sign, handshake, rubbing of hands, eye- to-eye contact, style of walking,
etc. As communication is made through bodily gestures it is called ‘Gestural
Communication.’

It should be kept in mind that, though the methods of communication are different, no one
method can be used exclusively. So, different methods may be used in combination to suit the
purpose of the communication.

BARRIERS OF COMMUNICATION

1. Semantic or Language Barriers:-

Language serves as the basis for the communication. Sender should select the words
and construct the sentences carefully otherwise leads to faulty communication.

2. Perception:-

An individual’s view of reality is known as perception. People differ greatly in the

way they perceive things and events. Even a single individual has different perceptual styles
depending on time and circumstances.
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3. Perfunctory Attention:-

If receiver pays very little or no attention to the message, communication and

understanding will fail. Employee should be keep away his problem and listen to the
message.

4. Resistance to change:-
Generally, people resist changes. Resistance to change will be strong when the
proposed change is great. One method of overcoming resistance is explaining the
subordinates as to how they will be benefited by such changes.

5. Status:-
Arises due to status difference that exists in every organization and there is no free
flow of communication. For example any communication received from the management is
viewed as troublesome by trade unions; any message from workers will be discounted by
management etc.

6. Organizational Structure:-
If the organizational structure has several layers of management, it may result in delay
and distortion in communication, and message may be altered at every layers of management.

7. Premature Evaluation:-
Refers to a tendency of forming a judgment before listening to the messages fully.
Premature evaluation misrepresents the message and acts as a barrier to effective
communication.

8. Failure to communicate:-
Failure arises due to laziness, embarrassment, status difference and assuming that it is
known to everybody.

9. Emotional attitude:-
Emotional attitude of the parties involved in the exchange of information is another
barrier to effective communication. When an individual is emotional, he may not able to
know the frame of mind of other person.

10. Distance and time:

Distance between the sender and the receiver of the message is more and is not clear
than communication fails. Delayed messages which is not sent in time creates confusion and
misunderstanding.
11. Lack of common knowledge:
Common knowledge is essential to communicate. Many people use words
which is not easily understandable by others as to impress others, due to this clear
communication is not possible.
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GUIDELINES TO OVERCOME BARRIERS OF COMMUNICATION:

1. Principle of clarity:-
Communication should have clarity and should be clear and easily understandable by
the receiver of communication. The superior has to do a lot of follow up work and should
have feed back.

2. Using simple language:-

The language used in communication should be simple and easy to understand the
message fully. The language used should match the level of understanding of the receiver.

3. Orientation of employees:-
Employees should be oriented in such a manner to understand the goals, plans, rules,
policies, procedures, authority relations and operations of the organization. This will avoid
misunderstanding and conflicts.

4. Sound organizational structure:-

The organizational structure should be sound and simple with few layers of
management. The organizational policies, rules and procedures must be stated in clear terms.
So that free flow of communication can be ensured. Status differences should be minimized
superiors should have personal contacts with the subordinates. All these things will make the
communication effective.

5. Informal communication channels:-

In addition to the use of formal communication channels, managers should use
informal communication channels to make communication effective. Use of informal
organization enables the superiors to convey the message quickly and transmitting
supplementary information.

6. Cross – wise Communication:-

Cross-wise communication at all levels is needed to speed up and improve the
understanding of communication. It is essential in all levels of management. Top level
management should encourage cross-wise communication.

7. Communication channels:-
Communication channels should be short and straight forward so that delays and
distortions of information can be reduced.

8. Feedback:-
Feedback is receiver’s response and is important feature of communication. It can be
ensured through a two way communication system viz., upward and downwards.

9. Flexibility of communication system:-

The communication system should be flexible to absorb additional loads of
information, to adapt with the changed organizational requirements and to use new
techniques of information transmission etc.,
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10. Perceptive listening:-

Effective communication can be made possible only if the receiver has the skill of
patient and perceptive listening. So the superiors have to develop the habit of patient
listening.

The importance of effective business communication in an organization:

1. Communication promotes motivation by informing and clarifying the employees

about the task to be done, the manner they are performing the task, and how to
improve their performance if it is not up to the mark.
2. Communication is a source of information to the organizational members for
decision-making process as it helps identifying and assessing alternative course of
actions.
3. Communication also plays a crucial role in altering individual’s attitudes, i.e., a
well informed individual will have better attitude than a less-informed individual.
Organizational magazines, journals, meetings and various other forms of oral and
written communication help in moulding employee’s attitudes.
4. Communication also helps in socializing. In todays life the only presence of another
individual fosters communication. It is also said that one cannot survive without
communication.
5. As discussed earlier, communication also assists in controlling process. It helps
controlling organizational member’s behaviour in various ways. There are various
levels of hierarchy and certain principles and guidelines that employees must follow
in an organization. They must comply with organizational policies, perform their job
role efficiently and communicate any work problem and grievance to their superiors.
Thus, communication helps in controlling function of management.
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MODERN BUSINESS COMMUNICATION METHODS

1. Dedicated Support Hashtags on Social Channels
If you receive a high volume of social media communication from fans and
customers, offering suggested hashtags is a great way to sort messages for response. If you
have a recurring support question, ask users to flag it with a specific hashtag.
2. Auto Call Back Option During Long Hold Times
People absolutely despise waiting on hold on the phone, and it’s easy to make sure
they never have to at your business. Automated callback features allow customers to hang up
the phone and go about their days instead of wandering around all day with a phone on their
ear listening to infuriating music on a loop.

3. Live Chat on Website

Pop-up chat boxes on your website are the perfect tool for marketing complex
products and services. Consumers visit your website because they want quick information
about prices and features, but complex services are hard to capture in a static webpage. That’s
why cell service providers, for example, all rely on live chat.
4. Live Video Call Option
Video chat is a great opportunity to build relationships with your customers because it
offers a sense of what communication experts call “immediacy.” It’s easy to tune our a radio
ad or a phone call because your eyes are picking up information unrelated to the sound you’re
hearing.
5. Opt-In Text Messaging Notifications
Over-texting customers, like sending spam email, is a good way to get people mad at
you. Used sparingly, however, texts can be a great way to break big news to your customer
base. Have a limited supply of an exciting new product? That’s the perfect situation for a
mass text to your biggest fans. They’ll appreciate hearing the scoop first, and they won’t feel
like you’re abusing their phone number.
6. Mobile-Friendly Account Access/Management
Since more than half of all Americans now carry smartphones, mobile apps can be a
great way to reach your customers. Push notifications allow you to get important messages
out and keep your customers engaged and informed. The trick is that the app has to offer
some real value or no one will download it.
7. 24-Hour Customer/Tech Support
Giving your customers a 24-hour number they can call to reach an actual human being
is a huge value differentiator in today’s market. It shows an extreme dedication to customer
service for a shockingly low cost. You don’t need to have a salesperson or a tech support
worker on call at AM to make this work.
8. Post-Sale Follow-Up Emails
Even if you’re selling gumballs at two cents a piece, technology has made it cost
effective to follow up with customers after every single sale. The follow-up doesn’t have to
be much. The goal is just to show the customer that you care and open an avenue for future
dialog. For big ticket items like cars or appliances, a personal phone call is best.
9. Social Media Personality
Virtually every company in the world now understands the importance of a social
media presence, but few take advantage of the huge opportunity platforms like Twitter and
Facebook present. These platforms aren’t the place for sanitized corporate language and
official legal language — they’re a place to express your company’s personality.
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10. Hand Written Greeting Cards

The greeting card might be one of the oldest business-to-customer communication
techniques, but it’s also one of the best. With bills and bank statements all moving through
online channels, a handwritten note in the mail stands out more than ever. Christmas and
birthday cards are easy to send. They take only a moment to sign and seal, but they make a
lasting impact on customers. If you want them to remember your name, signing it to a card is
the way to go.

NEED AND FUNCTIONS OF BUSINESS LETTER

Meaning of Business Letter :

The term correspondence refers to written communication between individuals or
groups on matters of common interest. The expression, “Business Correspondence” refers to
the written communication between two businessmen connected with their business.
Need or Importance of Business Correspondence :
As L.Gartside puts it, there are four main reasons for writing business letters. They
are as follows :
1. To provide a convenient and inexpensive means of communication, without personal
contact.
2. To seek or give information
3. To furnish evidence of transactions entered into and
4. To provide a record for future reference.

FUNCTIONS OF BUSINESS CORRESPONDENCE :

Reference function :
 Letter is valid records for ready reference in the routine of administration.
 They are highly useful in all business transactions.
 Business is a continuous process, and administrative polices have to be shaped not
only according to the current trends and past experience.
 Reference to previous correspondence becomes necessary.

Legal function:
Letters containing offers and undertakings should be legally binding. In case of any
dispute, the business letters concerned with that transaction could be produced as evidence
Sales function :
Promotion of sales is considered as the primary function of business correspondence.
Letters can play the role of salesmen in creating, maintaining and expanding the market for
goods and service. In fact, every business letter is a sales letter.
Goodwill function :
Goodwill is essentially a concept of friendliness with the community of customers.
Polite tone in business letter creates goodwill and reputation to the firm.
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STRUCTURE OF A BUSINESS LETTER

The structure of a business letter refers to the proper arrangement of the various parts
or the different elements of a business letter. In order to ensure clarity and convenience, a
business letter should consist of the following parts:-

1. The Heading: (Letter-head)

Every business house should have note paper with printed letter-head,
giving the name of the firm, address, telephone number, telegraphic address, reference
number, names of branches if any, the nature of the business carried on ( unless the name
itself is indicative of the nature of the business) etc.
To give a balanced appearance to the letter, nearly one fifth of the total
space should normally be used for the heading.
2. The Date:
It gives the day, the month and the year. It is very necessary to mention the
date in all letters because:

a). to identify a particular letter referred to in subsequent correspondence.

b). It proves useful when a legal action is made
3. The inside address:
. The inside address consists of the name and address of the person or firm, to whom
the letter is written. This is written just above the greeting or salutation (left side).
Methods of writing inside address: The inside address may be written either in blocked form
or indented form with open or closed punctuations.
4. Attention Line:
When a letter addressed to a firm or company should reach a particular officer by
name or designation or particular department, then an attention line is typed on the letter
below the inside address, mentioning details.
5. Salutation:
Salutation is also known as greeting. It is the term of politeness, respect or affection, with
which you introduce a letter. It is written about three spaces below the inside address.
The form of salutation depends on the personal relation between the writer and the addressee
as well as upon the letter rank or position.
6. Subject -Reference:
In some letters, the subject, namely the main theme of the letter is written just below
the salutation, before starting the body of the letter. By seeing this, the reader can understand
at a glance, what the letter is about.

7. Body or substance:
This is the exact communication. It usually begins under the end of the salutation. A
blank margin should always be kept on the left- hand side of each page. The body of the letter
contains the principal message to be conveyed to the other party. Other parts are only
subordinates to the body of the letter.
The writer should take utmost care to set the matter clearly. Write simply, clearly, politely,
grammatically and to the point. Paragraphs may be opening, main and closing.
8. Complimentary close:
This is the phrase of courtesy, respect or endearment written in a separate line at the
foot of the letter, on the right hand side above the signature. Some of the common forms of
 21

complimentary close are “Yours faithfully”, “Yours truly”, “Yours respectively”, “Your
sincerely”, etc.

9. Signature:
After completing the letter, writer must put his signature below the complimentary
close and more to the right. The signature must be in ink. It is distinguishing mark and must
be in his handwriting.

10. Enclosures:
If anything is to be attached to a letter, it is usual to indicate the fact at the bottom
(left) of the letter.Cheques, drafts or document, if sent may be shown in the enclosure
reference. It draws the attention of the despatching section and the reader. Enclosure
reference is made at left- hand side parallel to the signature.

KINDS OF BUSINESS LETTERS

1. Letters of inquiry seeking information about the required grades and replies.
2. Offers and acceptance.
3. Orders and their execution.
4. Credit and status enquiry.
5. Claims and adjustments.
6. Collection letters & Circular letters.
7. Sales letters.
8. Banking correspondence & Insurance correspondence.
9. Export and import correspondence.
10. Agency correspondence & Transport Correspondence.
11. Secretarial Correspondence.
12. Correspondence with the government.
13. Public relations letters.

LAY-OUT AND DESIGN OF A BUSINESS LETTER

The over-all arrangement and appearance of the different parts of a letter is called its
lay-out.
It refers to the arrangement of the various parts of a finished letter, neatness and
spacing of the written matter.

There are seven letter styles followed by the business firms. Two major forms are
known as 1. Indented Form and 2. Blocked form.

1) Fully indented form of layout:

This is the traditional form of layout and is very popular in England as well as in
our country. Under this method, the inside address, opening salutation, body of the letter etc
are all indented five space form the previous lines.
1. 1 ½ “Margins are generally given on both side and the date is so placed that the last
figure saves as a guide for the right hand margin.
2. Every line of address has a comma at the end &the last line end with a full stop.
3. The first line of each paragraph begins away from the margin or indented.
The complimentary close begins at the centre of the typing line.
 22

2) Fully Blocked form of layout:

This is another important form of layout more commonly used in the United States.
Under this method, the different parts of the letter and even the paragraph of the body of the
letter begin from the left-hand margin. Only essential punctuation marks are typed. No
comma is put after every line of the inside address salutation and complementary close.
The date line is stated at the left-hand margin.

3) Semi indented form of layout:

This is another method of layout, more or less similar to the traditional indented form
with few modifications. The inside address is typed in block form with comma at the end
of each line.
1. The body of the letter and each paragraph are indented in the same way like indented
form of layout.
2. The complementary close and the signature are typed at the centre of the typing line.
3. As regards the Punctuation mark, colour is put after the salutation in countries like
U.S.A.
4) Modified block form of layout:
This style is similar to the fully blocked form of layout differing only in the positioning
of the date, the subject heading and the complementary close.
1. The date line is typed from the centre of the typing line and the terminal figure
ends at the right hand margin.
2. The inside address is typed in block form without comma.
3. The body of the letter and each paragraph are also typed in full block form.
4. The attention line or subject heading is centered over the body of the letter.
5. The complimentary close and the signature are placed at the centre of the typing
line.
5) Hanging Paragraph form of layout-
This form of layout is a most unusual one. In this form, the first line of each paragraph of
the body of the letter begins at the left hand margin and all the other line are indented three to
five spaces away form the margin.
1. The date is given in its normal position on the right hand side. Some times it is also
centered.
2. The inside address should be in block form with Punctuations.
The complementary close and signature are centered.

6) NOMA Simplified form of layout-

The NOMA form of letter style in of recent origin. The national office management
association of America recommends it for business letter.
1. The salutation and complementary close are omitted.
2. The inside address, date line and all typing lines begins at the left hand margin.
3. The Subject heading or the attention line is given in capitals with at least three
spaces below the inside address.
4. The writer’s name and designation are also typed in capitals both on the same line.
7) Semi Blocked form of layout:
This type of layout is a combination of the block and indented form of layout.
1. The inside address is written in block form and the punctuation marks are omitted.
 23

2. The body of the letter, however, is typed in the indicated form. First line of every
paragraph is indented with 5 spaces.
3. The complementary close and the signature comes at the right hand corner below the
body of the letter.

ESSENTIALS OF EFFECTIVE BUSINESS LETTER:

1. Letter Heading:
The name of the firm, its postal address, its telephone number and the Fax number
(and also the nature of its business) should be in the letter-head. Mostly it is printed.
In the heading, room is left forthe reference number and the date of the issue of the
letter which should be invariably quoted in the reply and in subsequent correspondence. The
name of the place and the date are written on the left top of the letter.

2.Name and Address of Addressee:

This should be types close to the left hand margin. The addressee’s name and address
should be given in the manner it is types on the envelope. It is better to avoid use of the word
‘Messrs’ for a limited company, unless it forms a part of the registered name of the firm.

3. Salutations:
This should come immediately beneath the recipient’s address, close to the left-hand
margin. ‘Sir’ should be used to all Government correspondence, and for very formal business
letters. However, ‘Dear Sir’ is the most widely used salutation in commercial
correspondence.

4. Introductory Paragraph:
In case the current letter is reply to a previous letter, the reference number should be
mentioned. In case of new correspondence, the brief introduction about the subject matter of
the letter should be written.

5. Body of the letter:

A business letter should be brief and precise. If it deals with one fact or item, one
paragraph should suffice.

6. Closing Paragraph:
It should be worded in a forceful and convincing style, because it is in this paragraph
that the whole argument is summed up. Ordinarily, the letters should end with a courteous
phrase expressing hope for a formal reply or assuring the addressee of the best of attention.

7.Subscription:

The salutation and subscription must always agree in style. You can not start a letter
formally and end it informally. The most popular subscription is business letters is ‘yours
faithfully’. The other subscription.
 24

HINTS FOR UNIT-I

NEED/IMPORTANCE FOR COMMUNICATION

1. Technological improvements
2. Human relations
3. Increase in size
4. Growing specialization
5. Cut-throat competition
6. Public Relations
7. Trade union movement
8. Personal asset

OBJECTIVES OF COMMUNICATION
1. Information
2. External Information
3. Internal information
4. Advice
5. Counselling
6. Order
7. Persuasion
8. Education And Training
9. Motivation
10. Suggestion
11. Warning
12. Morale Boosting
13. Appreciation

PRINCIPLES OF COMMUNICATION.
1. Clarity
2. Integrity
3. Uses of informal organization

ELEMENTS OF COMMUNICATION
1. Sender (or) communicator
2. Receiver (or) communicator
3. Message
4. Channels of communication
5. Feedback

TYPES / CHANNELS OF COMMUNICATION

1. Formal communication
a. Downward communication:-
b. Upward communication:-
c. Horizontal communication:-
2. Informal communication.
 25

MEDIA USED FOR COMMUNICATION:-

1. Oral communication
2. Written communication
3. Non-Verbal Communication
4. Audio-Visual Communication

BARRIERS OF COMMUNICATION

1. Semantic or Language Barriers

2. Perception
3. Perfunctory Attention
4. Resistance to change
5. Status
6. Organizational Structure
7. Premature Evaluation
8. Failure to communicate:
9. Emotional attitude
10. Distance and time
11. Lack of common knowledge
12. Distrust

GUIDELINES TO OVERCOME BARRIERS OF COMMUNICATION

1. Principle of clarity
2. Using simple language
3. Orientation of employees
4. Sound organizational structure
5. Informal communication channels
6. Cross – wise Communication
7. Communication channels
8. Feedback
9. Flexibility of communication system
10. Perceptive listening

MODERN BUSINESS COMMUNICATION METHODS

1. Dedicated Support Hashtags on Social Channels

2. Auto Call Back Option During Long Hold Times
3. Live Chat on Website
4. Live Video Call Option
5. Opt-In Text Messaging Notifications
6. Mobile-Friendly Account Access/Management
7. 24-Hour Customer/Tech Support
8. Post-Sale Follow-Up Emails
9. Social Media Personality
10. Hand Written Greeting Cards
 26

FUNCTIONS OF BUSINESS CORRESPONDENCE

1. Reference function
2. Legal function
3. Sales function
4. Goodwill function

KINDS OF BUSINESS LETTERS

a. Letters of inquiry seeking information about the required grades and replies.
b. Offers and acceptance.
c. Orders and their execution.
d. Credit and status enquiry.
e. Claims and adjustments.
f. Collection letters & Circular letters.
g. Sales letters.
h. Banking correspondence & Insurance correspondence.
i. Export and import correspondence.
j. Agency correspondence & Transport Correspondence.
k. Secretarial Correspondence.
l. Correspondence with the government.
m. Public relation
27