MB 0039

Business Communication
Contents
Unit 1
Basic Principles of Communication 1
Unit 2
Types and Channels of Communication 17
Unit 3
The Nature of Business Communication 35
Unit 4
The Importance of Listening in the Workplace 53
Unit 5
Guidelines for Written Business Communication 70
Unit 6
Developing Oral Business Communication Skills 90
Unit 7
Reading Skills for Effective Business Communication 109
Unit 8
Internal Business Communication – Guidelines for
Meetings 124
Unit 9
Internal Business Communication – Writing Memos,
Circulars and Notices 140
Edition : Spring 2010

th
BKID – B1128 7 Jan. 2010
Unit 10
Internal Business Communication – Electronic Media
and Shareholder Communication 154
Unit 11
External Business Communication – Writing Business
Letters 168
Unit 12
Other Forms of External Business Communication 186
Unit 13
Internal and External Business Communication –
Writing Business Reports 202
Unit 14
Employment Communication – Resumes and
Cover Letters 222
Unit 15
Employment Communication – Group Discussions and
Interviews 242
Bibliography 259
Dean
Directorate of Distance Education
Sikkim Manipal University

Board of Studies
Chairman Mr. Pankaj Khanna
HOD Management & Commerce Director
SMU – DDE HR, Fidelity Mutual Fund
Additional Registrar Mr. Shankar Jagannathan
SMU – DDE Former Group Treasurer
Wipro Technologies Limited
Controller of Examination Mr. Abraham Mathew
SMU – DDE Chief Financial Officer
Infosys BPO, Bangalore
Dr. T. V. Narasimha Rao Ms. Sadhna Dash
Adjunct Faculty & Advisor Ex-Senior Manager, HR
SMU – DDE Microsoft India Corporation (Pvt.) Ltd.
Prof. K. V. Varambally
Director
Manipal Institute of Management
Manipal

Content Preparation Content Editing and Modification

Vimala Parthasarathy Dr. Shivram Krishnan
Assistant Professor HOD Management & Commerce,
SMU – DDE SMU – DDE

Edition : Spring 2010

This book is a distance education module comprising of collection of learning

material for our students.
All rights reserved. No part of this work may be reproduced in any form by any
means without permission in writing from Sikkim Manipal University of Health,
Medical and Technological Sciences, Gangtok, Sikkim.
Printed and Published on behalf of Sikkim Manipal University of Health, Medical and
Technological Sciences, Gangtok, Sikkim by Mr. Rajkumar Mascreen, GM, Manipal
Universal Learning Pvt. Ltd., Manipal – 576 104. Printed at Manipal Press Limited,
Manipal.
 SUBJECT INTRODUCTION
The subject “Business Communication” aims to equip the student of
management with the principles, guidelines and tools needed to
communicate effectively for on-the-job success. It emphasizes the
importance of communication skills as one of the essential qualities of a
good manager. It focuses on the different aspects of communication and the
numerous stakeholders with whom one has to communicate in a business
setting.

This courseware comprises 15 units:

Unit 1: Basic Principles of Communication

This introductory unit will examine communication in a general sense. Some
basic definitions and characteristics of communication will be explained. A
model of the communication process, including the key elements of
communication, will be described in detail. Some of the barriers or obstacles
that come in the way of successful communication will also be highlighted.

Unit 2: Types and Channels of Communication

This unit will focus exclusively on channels, which are an important element
in the communication process. The characteristics of the two broad types of
communication, namely, verbal and non-verbal communication, will be
described. Channels of communication will be classified, based on various
criteria and their relative advantages and disadvantages explained. Some
guidelines for selecting the appropriate channel in a given business situation
will also be offered.

Unit 3: The Nature of Business Communication

In this unit, we will deal with communication in a business setting. We will
look at both the internal and external stakeholders of an organization, the
primary reasons for communication with each stakeholder and the
appropriate channels of communication. We will then try to understand how
information flows within the organization, through both formal and informal
communication networks. The importance of transparency through the
formal network and the constructive use of “grapevine”, or the informal
network, will also be emphasized.

Unit 4: The Importance of Listening in the Workplace

Since listening is the most important aspect of communication, it will be
examined separately in this unit. We will distinguish between “passive” and
“active” listening and the different types of listening, especially those that are
important in a business environment. Similar to communication barriers, the
various barriers to listening will be discussed, along with strategies to
overcome these barriers. The different aspects of listening in a business
context, such as listening to customers and employees, will also be
highlighted.

Unit 5: Guidelines for Written Business Communication

This unit will first offer some general guidelines for improving writing skills,
such as tips on writing style, use of active and passive voice and correct use
of spelling and punctuation. Some common mistakes made in English will
also be pointed out. The principles of writing business correspondence,
such as letters and reports, will be briefly explained. These include writing
with the appropriate tone, using techniques of emphasis and subordination
and writing at an appropriate level of readability.

Unit 6: Developing Oral Business Communication Skills

This unit focuses on oral presentation skills, as an important part of oral
communication in the workplace. While presentations may be of different
types, the steps involved in planning and organizing them are the same.
This step-by-step approach, right from defining the purpose of the
presentation to doing an audience analysis, developing the key idea and
outline and delivering the presentation, is explained in detail. The use of
visual aids to make presentations more effective, including the different
types of aids and the guidelines for using them, are also described.

Unit 7: Reading Skills for Effective Business Communication

Apart from listening, writing and speaking, business executives also need to
develop good reading skills for job success. This unit will deal with reading
in a business context, including the purposes of reading and the different
types of reading that are required. Skimming, scanning, extensive and
intensive reading are some of the different types of reading that are often
needed on the job. A special technique of reading that could be applied to
make reading more meaningful, is also explained in detail.

Unit 8: Internal Business Communication – Guidelines for Meetings

In this unit, we will deal exclusively with meetings as a channel of
communication within the organization. Since meetings are often
unproductive, we will examine them from the viewpoint of the chairperson,
as well as the participant and offer guidelines for making them more
effective. The types of meetings and the procedures to be followed before,
during and after the meeting will be described. Common mistakes that tend
to be made with regard to meetings will be highlighted.

Unit 9: Internal Business Communication – Writing Memos, Circulars

and Notices
Written communication within the organization takes the form of memos,
circulars and notices. Memos are condensed reports and follow the
principles of précis writing. We will examine these principles, along with the
appropriate format for writing memos. We will also discuss the purpose of
circulars and notices, with some guidelines on how to write them. Samples
of each are also included to facilitate understanding.

Unit 10: Internal Business Communication – Electronic Media and

Shareholder Communication
This unit will focus on the electronic media used to communicate within an
organization, namely, the “intranet” and email. Since the intranet is widely
used by different types of organizations, we will examine its characteristics,
relative advantages and disadvantages. The principles of email
communication, along with the proper etiquette for using email, will be
explained in detail. The unit will also briefly touch upon communication with
shareholders, who are important internal stakeholders. The reasons for
communication and the appropriate channels of communication will be
highlighted.
Unit 11: External Business Communication – Writing Business Letters
This unit deals with communication with external stakeholders, such as
customers, suppliers and the government, through the written medium of
letters. Business letters differ from general letters in terms of language, tone
and format. The different messages conveyed by business letters, such as
routine, bad news and persuasive messages will be explained, along with
suitable examples. The two main formats for business letter writing, namely
the direct and indirect formats, will also be explained in detail.

Unit 12: Other Forms of External Business Communication

Apart from letters, communication with external stakeholders such as the
media and consumers takes other forms. We will first discuss
communication with the media through news releases that highlight an
organization’s achievements. The appropriate format for a press release will
be described. This unit will also deal with communicating about the
organization through advertising. Corporate advertising, its objectives and
different forms, will be described in detail. Product advertising and its format
will also be explained.

Unit 13: Internal and External Business Communication – Writing

Business Reports
This unit deals in great length with reports as a means of communication
with both internal and external audiences. Reports are varied and provide
information that helps in decision making. The characteristics of business
reports, the different types of reports, their purposes and the different report
formats will be described. Since reports must be planned and written with
care, a step-by-step approach to organizing and presenting reports will also
be explained. Some guidelines for writing the report, including a few
techniques of reader conviction and writing style, will be offered

Unit 14: Employment Communication – Resumes and Cover Letters

This unit deals with the communication required for the job application
process, namely writing resumes and cover letters. The different resume
formats, the components to be included and other guidelines such as length,
appearance and language to be used, are explained in detail, along with
suitable examples. The cover letter, which goes with the resume, is equally
important in creating a good first impression. This unit also explains the
different types of cover letters and the appropriate format for each type.
Other letters regarding employment are also described briefly.

Unit 15: Employment Communication – Group Discussions and

Interviews
This final unit deals with the next stage in the job application process,
namely group discussions and interviews, which are used to evaluate job
applicants. The meaning and purpose of group discussions and the
procedure for conducting and participating in them are explained in detail.
The different types of GD’s and the specific skills required to succeed in
them are also highlighted. The last part of the unit discusses job interviews,
from both the applicant’s and the interviewer’s perspective. The preparation
required before the interview, conduct during the interview and follow up to
be done are described.
Business Communication Unit 1

Unit 1 Basic Principles of Communication

Structure:
1.1 Introduction
Objectives
1.2 Understanding Communication
1.3 The Communication Process
1.4 Barriers to Communication
1.5 The Importance of Communication in the Workplace
1.6 Summary
1.7 Terminal Questions
1.8 Answers

1.1 Introduction
Communication is a non-stop process and is a vital ingredient for success,
both within and outside the workplace. 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 see 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.
Objectives
After studying this unit, you will be able to:
 Explain the general purpose of communication
 Describe the key elements in the communication process
 Identify the barriers to communication and suggest ways to overcome
these barriers
 Recognize how good communication contributes to managerial
success

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1.2 Understanding Communication

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
behavioral theorists.
Some popular definitions are –
 According to Newman and summer, “Communication is an
exchange of facts, ideas, opinions or emotions by two or more
persons.”
 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
organization 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 endeavor 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.” It is the act
or process of transmission that is usually called communication.”
 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 the above definitions, it is clear that communication has the following
characteristics –
 It is Unavoidable – It is impossible to not communicate, since we
communicate unintentionally all the time, even without the use of

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words. Our body language, the way we dress, the importance we give
to arriving on time, our behavior 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’s response to your request for a promotion will
depend on your past relationship with him, as well as his mood at that
particular moment.
 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 does 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.

Self Assessment Question

Fill in the blanks
1. For communication to take place, there must be a _________________
and a ________________ .
2. Our dress code is an example of __________________ communication.
3. Communication is accurate when the _____________ that is sent is the
same as the ________________ that is attached to it.
4. Communication can take place using ____________, _____________
or ________________ .
5. Communication may best be described as a _____________ .

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Let us now look at communication as a process and discuss its key

elements.

1.3 The Communication Process

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 below illustrates each of
these elements.
Model of Communication
NOISE

SENDER/ RECEIVER/
MESSAGES
ENCODER DECODER
Channel(s) Channel(s)

(SENDS &
(RECEIVES
RECEIVES)
& SENDS)
NOISE

Sender or Encoder – This is the person who transmits a message. For

example, a manager is writing a letter of apology to a customer regarding a
defective product, or a sales manager making a presentation to his sales
team.
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 offense, 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
given above) or unintentional (non-verbal signals such as yawns that convey
the message of boredom).

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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, through 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 could also be written, as
when you respond to a customer’s letter of complaint, for example. 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
sender’s message. Due to the element of feedback, people are
simultaneously senders and receivers of information in face-to-face
communication.
Noise – 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 could 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 with
the speaking or listening process.
Context – This refers to the setting in which the communication takes
place and could sometimes determine the success or failure of the
communication. Context could be classified as follows-
Physical context 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

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whether the communication takes place in your office, your boss’s office, at
a company party or over lunch at a restaurant.
Social context 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.
Chronological context 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?
Cultural context 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 favorably or
unfavorably.
Each of the elements discussed above contributes to the success of the
communication. In other words, communication can go wrong if any of the
following elements go wrong –
1. 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 crores, is not likely to get the bank’s approval.
2. The message is unclear or badly worded. Or there are too many
messages, leading to confusion and information overload.
3. 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 favorably!
4. The message is wrongly interpreted, i.e., the receiver attaches the
wrong meaning to the message.
5. The feedback is not adequate to ensure understanding.
6. Physical, physiological or psychological noise distorts the message.
7. 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.

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Activity
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
sub unit.

Self Assessment Question

Are the following statements true or false?
6. Communication is mostly through words.
7. The communication message is the same as the meaning of the
message.
8. Communication is a dynamic process.
9. One reason for failure of communication is wrong interpretation of the
message.
10. The success of communication depends only on the sender of the
message.
11. Immediate feedback is possible in the case of face-to-face
communication.
12. You feel that your professor does not have anything new to say and do
not listen to him. This is an example of physiological noise leading to
communication failure.
13. 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.

1.4 Barriers to Communication

In the earlier section on the communication process, “noise” was mentioned
as one of the elements of communication. Noise is essentially a barrier to
communication and we distinguished between “physical” noise,
“physiological” noise and “psychological” noise.
There are many other barriers to communication, an understanding and
analysis of which are needed before coming up with ways to eliminate or
minimize them. These barriers may be classified as follows –

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1. Environmental Barriers – This 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.
2. Individual Barriers – A major barrier to interpersonal communication is a
tendency to judge, evaluate, approve or disapprove of 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.
3. Organizational Barriers – In organizations 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 organizational barrier to
communication. By the time the message is passed down from the Chief to
the lower level Executives, it is distorted completely, so much so that the
original message is interpreted differently by each level in the
organization –
The Chief of the Space Center gets to know about the possibility of seeing
Halley’s Comet and decides that the entire organization should witness this
spectacle. He sends a 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 Center 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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of the Chief
Business Communication Unit 1

The Director then sends the following memo to various Executive

Directors
Formatted: Font color: Black
By order of the Chief, we will be able to see “Halley’s Comet” at 20:00 hrs, Formatted: Font color: Black
tomorrow evening. If it is raining, we shall not be able to see it very well on
Formatted: Font color: Black
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 –
Formatted: Font color: Black
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. Formatted: Font color: Black
The Chief will tell us whether it is going to rain. This is something which we Formatted: Font color: Black
cannot see happening everyday.

Executive Director
To
Heads of Departments

The Heads of Departments send this 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 -

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

Another type of organizational barrier is a departmental barrier. This

means that each department in an organization functions in isolation
and there is no co-ordination or communication between them.

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4. 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.
5. 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
the 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!”
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 where women are highly respected.
6. 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.
On the other hand, saying “The product launch bombed” in American
English would mean that the new product was a disaster.
7. 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 great length in a later unit. If the tone of voice and
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Business Communication Unit 1

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.
1.4.1 Overcoming the Barriers to Communication
Certain steps can be taken, both at the organizational level, as well as at the
individual level, to effectively deal with the barriers to communication, in
order to try to minimize them, if not eliminate them entirely –
Organizational Action
1. Encourage Feedback – Organizations should try to improve the
communication system by getting feedback from the messages already
sent. Feedback can tell the managers whether the message has
reached the receiver in the intended way or not.
2. Create a Climate of Openness – A climate of trust and openness can
go a long way in removing organizational barriers to communication. All
subordinates or junior employees should be allowed to air their opinions
and differences without fear of being penalized.
3. Use Multiple Channels of Communication – Organizations should
encourage the use of multiple channels of communication, in order to
make sure that messages reach the intended receivers without fail. This
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 a separate unit.
Individual Action
1. 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.

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2. 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.
3. 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 a later chapter.

Self Assessment Question

14. Match the following
i. Environmental barrier a. Psychological noise
ii. Individual barrier b. Physical noise
iii. Understanding customers’ problems c. Organizational barrier
iv. Suppressing the views of d. Active listening
junior employees
v. Speaking with a foreign accent e. Written communication
channel
vi. Messages with multiple meanings f. Eye movements
vii. Non-verbal communication g. Cultural barrier
viii. Letter addressing customer complaints h. Semantic barrier

1.5 The Importance of Communication in the Workplace

Communication is the nerve center 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. 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 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.

Communication is also required all the more in this age of information and
technology. Without communication and human skills, technology will

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overwhelm an organization. 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
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
organization –
 Greater Awareness of Organizational 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 organization. Coordination between the different
departments in particular, leads to greater motivation to work together
towards achieving a common organizational 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 personalized 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 criticizing 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 organization, 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

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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.

Self Assessment Question

Are the following questions true or false?
15. Listening is not a part of communication skills.
16. Communication is needed only between superiors and subordinates.
17. External communication is as important as internal communication.
18. Team skills do not require the ability to communicate effectively.
19. A destructive review of performance can lower employee morale.

1.6 Summary
In this unit, we have looked more at communication in general, its nature
and principles. Although there is no single and correct definition of
communication, most communication theorists and writers on the subject
agree that communication has certain characteristics
 It is a non-stop process like breathing, since we communicate all the
time in some form or another.
 Communication is not only through the spoken and written word. A large
part of it is also non verbal. Body language is a part of non-verbal
communication.
 For communication to take place, there must be a sender and receiver
of a message.
 Communication usually involves a two-way exchange of information,
where the receiver provides some feedback in some form or the other.
 Communication may be said to be accurate when the intended message
is understood in the same way by the receiver.
This unit also described the communication process in detail. Irrespective of
the number of people involved, communication always includes some key
elements – a sender who transmits a message, a receiver who decodes or
attaches meaning to a message, a channel or medium through which the
message is sent, feedback given by the receiver to the sender, noise that
can disrupt the communication at any time and the context in which the
communication takes place.

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Communication is not always successful and can go wrong if any of the

above elements go wrong. There are a number of barriers or obstacles to
smooth communication. These may be categorized as follows-
 External or physical barriers, such as distracting sounds
 Individual barriers, such as ego problems
 Organizational barriers, such as lack of coordination between
departments
 Linguistic or cultural barriers, such as use of a foreign language
 Semantic barriers, such as multiple meanings of words
 Channel barriers, such as use of a wrong medium
 Non-verbal barriers, such as conflicting signals
This unit also dealt briefly with organizational communication and how
effective communication can enhance performance in the workplace. As one
goes up the corporate ladder, communication skills are more important for
success than technical skills. Communication contributes to success in the
workplace, in the following ways –
 It leads to better information flow and teamwork
 It creates a climate of openness and trust
 It strengthens employer-employee relationships
 It helps to resolve conflicts
 It improves morale and enhances performance
 It links managers with the external environment of the organization

1.7 Terminal Questions

1. Describe a situation you experienced where the communication was a
failure. Analyze the problem by identifying the element of the
communication process that contributed to the failure – e.g. wrong
sender, wrong channel, etc.
2. List out some barriers that stand in the way of your own
communication. What are some ways in which you could overcome
these barriers?
3. In your opinion, what is the most important way in which effective
communication contributes to managerial success?

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1.8 Answers

Answers to Self Assessment Questions

1. Sender; receiver
2. Non-verbal
3. Message; meaning
4. Words; symbols; pictures
5. Process
6. False
7. False
8. True
9. True
10. False
11. True
12. False
13. True
14. i) b ii) a iii) d iv) c v) g vi) h vii) f viii) e
15. False
16. False
17. True
18. False
19. True

Answers to Terminal Questions

1. Refer 1.3
2. Refer 1.4
3. Refer 1.5

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Unit 2 Types and Channels of Communication

Structure:
2.1 Introduction
Objectives
2.2 Types of Communication
2.3 Classification of Communication Channels
2.4 Summary
2.5 Terminal Questions
2.6 Answers

2.1 Introduction

In the introductory unit, we looked at 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. Given their importance, 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.

Objectives
After studying this unit, you will be able to :
 Distinguish clearly between the different types of communication
 List the advantages and limitations of each type of communication
 Categorize the different channels of communication
 Select which channel to use in different situations, as a business
communicator

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2.2 Types of Communication

Broadly, communication may be divided into two areas – verbal and non-
verbal communication.
Verbal communication, or communication through words, 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 in turn, may be divided into two areas – oral and
written communication.
Oral communication may be defined as a process whereby a speaker
interacts verbally with one or more listeners, in order to influence the
latter’s behavior in some way or the other.
Example – In a business context, a manager doing a performance appraisal
with an employee, or a sales manager making a sales plan presentation to
his sales team. In the first example, the manager may point out areas for
improvement and in the second case, the sales manager may be explaining
how to achieve new sales targets.
Oral communication in a business context can take the form of meetings,
presentations, one-to-one meetings, performance reviews and so on.
Written communication is a process whereby a writer interacts verbally
with a receiver, in order to influence the latter’s behavior.
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 later chapters.
Non-verbal communication, on the other hand may be defined as
communication without words. It refers to any way of conveying meanings
without the use of verbal language. The game of “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.

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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.
Consider the following example –

Your boss has asked you to make a presentation on your suggestions for
improving the organization. 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 above example, the boss, through his non-verbal behavior, conveys a
message beyond the spoken word – which he does not really want to hear
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, later in this
unit.
2.2.1 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 – 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”.
Miscommunication through verbal messages could be avoided by following
a few simple guidelines –
 Avoid Words with Multiple Meanings: Words sometimes tend to have
different meanings in different cultures. Therefore, when communicating

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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
shape 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 organization 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.”
 Avoid overuse of Jargon: Jargon refers to technical terms or
specialized 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 for example, but should be avoided when
communicating with a general audience, since the terms may not be
understood. Above all, never use jargon just to impress your audience.
 Avoid Biased Language and Offensive Words : Language has the
power to arouse negative feelings, if it is not used with care. This can

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happen when the words used seem to be objective, but actually contain
an intentional or unintentional bias.
For example, referring to a co-worker as “wishy washy” if he 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.”

Self Assessment Question

Are the following statements true or false?
1. Two broad areas of communication are oral and written communication.
2. What you say is more important than how you say it.
3. Verbal communication is more likely to go wrong in a cross-cultural context.
4. Jargon refers to words with multiple meanings
2.2.2 Non-verbal Communication
We have defined non-verbal communication earlier in this unit. Let us now
take a look at some of its characteristics, which distinguish it from verbal
communication.
* 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.
The message conveyed in the above example is 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 judgments of others. First
impressions generally tend to be lasting impressions.

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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 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 behavior.
* Non-verbal Communication Cannot Express All Messages – Non-
verbal behavior can only express a person’s feelings, attitudes, level of
interest, liking or dislike for something. Certain messages about ideas or
concepts can only be expressed through the spoken or written word.
Consider the following example-
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 behavior
can only indicate how pleased he is about the increase in sales.
*Non-verbal Communication Varies Across Cultures – While certain
types of non-verbal behavior 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.
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.
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Classification of Non-verbal Communication

We have seen 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. 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
below lists the different types of non-verbal communication, with the
corresponding communication terminology-
Types of Non-verbal Communication
Description Communication Terminology
Body Language Kinesics
Personal Space and Distance Proxemics
Meaning Attached to Time Time Language
Tone of Voice Paralanguage
Physical Environment Physical Context
Let us now look at each of the above aspects of non-verbal communication
in detail-
1. Kinesics – This is the most often studied and important area of non-
verbal communication and refers to body movements of any kind.
Different body movements can express inner states of emotion.
Facial Expressions can convey feelings of surprise, happiness, anger
and sadness. If you meet a long lost friend and say “ I’m very happy to
meet you again”, but with a sad facial expression, it conveys the exact
opposite meaning.
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.
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.
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Head Movements like nodding the head can convey interest,

appreciation, agreement or understanding.
Body Shape and Posture – Body shape is not within one’s control but
can be stereotyped to convey certain meanings. For example, someone
who is strong and muscular is generally thought to be athletic, as
opposed to a person who is short and fat!
Posture on the other hand is within our control. 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.
Physical Appearance – Our outward appearance, including the way we
dress and the jewelry 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.
Therefore, it is important to take care of your appearance, so that you
convey the right meaning to others.
2. 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.
Our inner most circle is an “intimate space”, into which we generally admit
only select people such as family and close friends. Next comes a
“personal space” which might include other friends and colleagues or
coworkers. These two spaces involve communication of an informal nature.
Most of us also have a “social and public” space, which 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
“fixed space” and “semi-fixed” space.
Fixed space means that the physical features of the work environment
such as furniture, room size and seating arrangement are permanent.

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This conveys an impression of formality. On the other hand, semi-fixed

space means that certain elements of the environment can be changed
– for example, the seating arrangement could be changed and this
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.
3. Time Language – This refers to the meaning or importance attached
to time and varies between different people. One person may value time
more than another. Similarly, time language also varies across cultures.
In most western cultures for example, 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 an employee and giving him suggestions on how to improve his
performance shows interest and involvement in his career growth.
4. 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, as mentioned earlier in this unit.
Example: The statement “I practice good business communication” can be
understood in different ways, depending on the emphasis on certain words.

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Saying “I practice good business communication” means that I alone

practice it above anyone else. On the other hand, saying “I practice good
business communication” could be interpreted to mean that you
communicate 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.
5. Physical Context – This refers to the physical environment or
surroundings within which we communicate and includes two
aspects – 1) color and layout and 2) design.
Colors are known for their symbolic meaning and have associations with
different feelings. For example, colors 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 colors.
Layout in a work environment refers to the size of an office, or the
arrangement of furniture. Design refers to the type of chairs, desks or
carpeting. All these can convey status, formality or informality.
We have seen 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.

Activity
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 behavior in terms of – a) Tone of voice
b) Dress c) Body language and d) Use of personal space and distance.

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Self Assessment Question

5. Match the following –
i. Nodding the head a. Paralanguage
ii. Time language b. Kinesics
iii. A boss visiting an employee’s office c. Arriving late for a meeting
for discussion
iv. An executive chair and a d. Personal space and distance
carpeted room
v. Speaking loudly e. Physical context

2.3 Classification of Communication Channels

So far we have been discussing the two broad areas of communication –
verbal and non-verbal, in detail. We will now go into the specifics of 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. As mentioned earlier, 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.
Communication channels could be classified based on three criteria –
1) whether the communication is oral, written or non-verbal, 2) the level of
feedback and 3) the personal nature of the communication.
1. Two-way, face-to-face channels – Here the communication is oral
and non-verbal, immediate feedback is possible and the
communication is of a highly personalized nature.
This type of 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) or large gatherings (a
speaker making a presentation to a large audience). The advantage of
using this channel is that non-verbal communication such as gestures,
facial expressions and tone of voice can be used to make the
communication more effective. A second advantage is that immediate
feedback is possible in the form of questions, clarifications or

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suggestions. Yet another advantage is the personal quality of the

communication. This is especially true of one-to-one meetings, where
problems and conflicts can be easily resolved.
The disadvantage of this type of channel is the difficulty in getting people
together and arranging face-to-face meetings. Personal meetings are
also expensive and time-consuming, especially when people are
separated by distances.
2. 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 case, 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. This type of communication 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 see ( if there is video-
conferencing facility) and speak to each other. Today, many large Indian
organizations 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 and is called the
“intranet.” Email has the advantage of low cost, speed and the ability to
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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.
3. 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 personalized 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 customizing a
product to his needs.
2.3.1 Selecting the Appropriate Channel
Let us now discuss the appropriateness of each of these channels 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.
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 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
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.
On the other hand, 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 organization.

2.3.2 Comparison of Oral and Written Channels

It is evident that oral and written channels both have their relative advantages

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and disadvantages. This is summed up in the table below, which rates each
of these channels as “high” or “low” on different dimensions –

Oral Written
Characteristic/Dimension
Communication Communication
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 Question

Fill in the blanks
6. A job interview between an employer and a prospective employee is an
example of a ___________ _____________ communication channel.
7. In a one-way non face-to-face channel, the communication is ________
and __________________ in nature.
8. When you want the receiver to pay attention to your message,
________ communication is better than ___________ communication.
9. When using a lot of jargon, ____________________ communication is
more suitable than ___________________ communication.

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2.4 Summary
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.
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 words that may have multiple
meanings, avoid jargon 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. It is
unintentional and if used with care, can convey positive messages and thus
enhance verbal communication. It is a vast area that includes more than just
body language or “kinesics.” “Proxemics” or personal space and distance,
time language, “paralanguage” or tone of voice and physical context are
some of the other aspects of non-verbal communication.
Within the two broad types of communication, there are a variety of
communication channels open to a business communicator. A proper
understanding of these channels is essential, so that the appropriate one
may be used in a given situation. Channels may be classified into three
types – two way face-to-face, two way non face-to-face and one way non
face-to-face, depending on whether the communication is oral, written or
non-verbal, whether immediate feedback is possible and whether it is
personal or impersonal in nature.
Some of the criteria for selection of a channel include –
 The aim of resolving conflicts or improving work relationships
 The need for visual support while communicating
 The urgency of the situation
 The need for quick feedback
 The complexity and volume of information
 The formal or informal nature of the communication

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 The permanent nature of the communication

 The requirement for keeping things on record
Oral and written channels have their inherent advantages and
disadvantages in any given situation. However, some situations may
demand the use of both types of channels for maximum effect.

2.5 Terminal Questions

1. What are some of the advantages of verbal over non-verbal
communication?
2. Describe a situation that you experienced where communication went
wrong because the non-verbal behavior sent conflicting signals. Which
aspect of non-verbal communication was responsible for the
communication failure? How would you rectify this?
3. Which channel of communication would be appropriate in the following
situations?
Justify your answer.
a) Notifying employees of a fire in the building
b) Announcing to employees that Independence Day is a paid holiday
c) Criticizing an employee for poor performance

2.6 Answers

Answers to Self Assessment Questions

1. F
2. F
3. T
4. F
5. i) b, ii) c, iii) d, iv) e, v) a
6. Two-way; face-to-face
7. Verbal/written; impersonal
8. Oral; written
9. Written; oral

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Answers to Terminal Questions

1. Refer 2.2, 2.2.1 and 2.2.2

2. Refer 2.2.2
3. Refer 2.3.1

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Unit 3 The Nature of Business Communication

Structure:
3.1 Introduction
Objectives
3.2 Types of Business Communication
3.3 Communication Network in Organizations
3.4 Summary
3.5 Terminal Questions
3.6 Answers

3.1 Introduction
Our discussion so far has been focused more on the general nature of
communication. In this unit we will go into the specifics of business
communication and what it involves. We will see how a manager has to
maintain communication linkages with different entities, both within and
outside the work environment. In continuation with what we discussed in the
last unit, some of the appropriate channels for communication with different
audiences will be explained. Finally, we will examine how communication
flows within an organization, both through official and unofficial channels.

Objectives
After studying this unit, you will be able to:
 List the different “stakeholders” of an organization, or the public’s with
whom a manager has to communicate.
 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 organization
 Discuss the advantages and limitations of formal and informal
communication networks

3.2 Types of Business Communication

Business communication is diverse and involves both “internal stakeholders”
within the organization, as well as “external stakeholders” outside the

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organization. A manager has to constantly communicate with and maintain

good relations with each of these stakeholders or publics, so as to achieve
the overall goals of the organization and to project a favorable image. The
figure below illustrates the “wheel of business communication”-

The Wheel of Business

Communication
Bankers Media Superiors

Peers

Society

Subordinates
Management

Government

Shareholders
Intermediaries
Employees/
Customers
Suppliers Unions

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. A manager has to stay in continuous touch with his
internal stakeholders on the one hand – superiors, peers, subordinates,
shareholders, employees and their unions; at the same time, he has 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
As illustrated in the diagram, this involves interaction with the following –
Superiors – Every organization has a formal reporting system. Superiors
are the higher ups in the organization to whom you report. The
frequency of interaction with them will vary, depending on your position and

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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 organization.
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 organization. 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
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 organization.
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 – These are people in the organization 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 reasons for
communication with subordinates are on disciplinary matters, such as

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organizational procedures and policies. Other reasons include performance

appraisal and feedback, reward and recognition aspects, subject to good
performance.
Appropriate channels of communication with subordinates may be both oral
and written, depending on the situation. Communicating about
organizational procedures is best done through written communication; on
the other hand, 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 both
positive and negative developments regarding the company. The reasons
for communication with shareholders include keeping them informed about
the Company’s progress on different fronts, development programs and new
projects undertaken by the company and new capital issues. At the same
time, any major problems faced by the company and the steps being taken
to tackle these problems should also be communicated. 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 – shareholder meetings and conferences, letters,
brochures and advertisements.
Before we move on to external business communication, let us sum up our
discussion on internal communication. The table given below highlights the
appropriate channel(s) to be used and the primary objective of
communication with each of the internal publics.

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Overall
Stakeholder Channel Objective
Written Reports Awareness of progress
Superiors Presentations Suggestions & feedback
Meetings Problem solving
Coordination
Peers Face-to-face meetings Teamwork
Information sharing
Written Communication Compliance with instructions
Subordinates Face-to-face meetings & policiesReview of work
progress
Feedback
Employees/Unions Written Communication Employee satisfaction &
welfare
Shareholders Meetings Advertisements Building trust and confidence
Brochures

Self Assessment Questions

Are the following questions true or false?
1. Peers are co-workers who work only in different departments of an
organization.
2. Criticizing an employee may be done in public.
3. A policy of openness is essential for good public relations.
4. Suggestions should only be given by superiors to subordinates.
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 for the following reasons
 For Successful Marketing – Organizations 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.
 To build a Favorable Corporate Image – Today, organizations need to
focus on projecting themselves as responsible corporate and social

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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.
 To Increase Shareholder Value – If customers have a positive image
of the company, the company’s share price will go up and 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.
 To 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 and restore the image of the company in
the eyes of consumers, the media and society at large. Public relations
require effective communication with various external stakeholders.

Examples – 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.
* To Enhance Credit Rating – An organization’s credit rating will also go up
if it maintains good external communication. This way its borrowing ability
will increase and more money can be raised for expansion and growth.
Having emphasized 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.

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The wheel of business communication illustrates that external business

communication involves interaction with the following stakeholders –
Consumers – Organizations need to communicate with consumers to
provide information about their products and services, special promotional
offers and new product developments. They 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 – This refers to the trade – distributors, wholesalers,
retailers, franchisees, etc. It is necessary to communicate with them to
provide information about product availability, special offers, incentives and
allowances, contractual aspects, order processing, delivery aspects and
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. Written contracts, advertisements
announcing special offers and incentives and dealer newsletters inviting
dealers to share their experiences, are examples of written channels.
Periodic review meetings and continuous communication through sales staff
are examples of oral channels.
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,
through “Business to Business” (B2B) communication.
Many organizations 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

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components, in order to improve the quality of the components. The supplier

on his side, 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.
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 and so on.
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, organizations 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 organizations today. Supporting women’s education, building
hospitals for the disabled, schools for children, family planning and non-
pollution of the environment are some of the ways in which companies are
participating in social development and then communicating this to 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
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, organizations 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.
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
and are intruding into people’s personal lives. If wrongly informed, the media
can destroy an institution. Therefore, the primary reason for an organization
to communicate with the media is to maintain good relations. If the company
projects a favorable 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 in the form of the matrix
given below-

Stakeholder Channel Overall Objective

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

Activity
Describe the nature of your current job or a job that you would like to
take up in future. List out the primary stakeholders that you have to
communicate with and the reasons for communication with each
stakeholder.

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Self Assessment Questions

5. Match the following
i) Mass communication a. Government
ii) Corporate Social Responsibility b. Advertising
iii) Crisis PR c. Suppliers
iv) Distributors d. Social development
v) Internet e. Bankers
vi) Statutory compliance f. Borrowing ability
vii) Transparency g. Media
viii) Credit rating h. Consumers
ix) Publicity i. Motivation
x) Persuasion j. Restoring company image

3.3 Communication Network in Organizations

A communication network refers to how information flows within the
organization. Information within an organization 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 organization.”
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 organizational chart. An organizational chart specifies the hierarchy
and the reporting system in the organization. Therefore, in a formal network,
information is passed on only through official channels such as memos,
bulletins and intranet (email within the organization).
The organizational chart implies that information can flow in any of three
directions – vertically, i.e., upward or downward, and horizontally.
1. Upward Communication – This may be defined as information that
flows from subordinates to superiors. Some of the reasons for
upward communication include discussing work related problems, giving
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suggestions for improvement and sharing feelings about the job and co-
workers.
This type of communication has both benefits and disadvantages. One
of the biggest benefits is problem-solving. Once a subordinate has
brought a problem to his superior’s notice, chances are that the problem
will not recur, since the subordinate learns from his superior how to
tackle it the next time. Thus, his ability to solve new problems and
therefore his managerial ability, improves. Another benefit that could
arise from upward communication is that valuable ideas and
suggestions may sometimes come from lower level employees.
Therefore organizations should encourage this kind of communication.
A third benefit is that 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.
2. Downward Communication – This may be defined as information
that flows from superiors to subordinates. The most common
reasons for downward communication are for giving job instructions,
explaining company rules, policies and procedures and giving feedback
regarding job performance. 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 organizations today are trying to encourage more of this type
of communication.
There are both benefits and disadvantages associated with this type of
communication. 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 on how to improve his performance. On
the other hand, a destructive review can destroy employee morale and
confidence. Regular downward communication also creates a climate of

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transparency or openness, where information is passed on through

official channels, rather than through rumors.
Thirdly, 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 many sometimes burden their subordinates with
too many instructions, leading to confusion.
3. Horizontal Communication – This type of 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.
The reasons for this type of communication are for coordination of tasks,
sharing of information regarding goals of the organization, resolving
interpersonal or work related problems and building rapport.
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 organization. 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
communication. This is because the “organizational pyramid” indicating
the different hierarchies or levels in an organization has flattened. This
is illustrated by the diagrams given below.

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Multi-layer Organizational Pyramid

General Manager

Manager Manager

Asst Manager Asst Manager Asst Manager Asst Manager

Executive Executive Executive Executive

Executive Executive Executive Executive

Compressed Organizational Pyramid

General Manager

Manager Manager Manager Manager Manager Manager

The first diagram illustrates the previous organizational 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 organizations today.
However, this has been replaced by a “compressed” or flattened pyramid
where the hierarchy has diminished, as shown in the second diagram.
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.

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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 organization, 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.
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 and so on.
This type of informal network is not just for idle rumors 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 organization.
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
may be withdrawn on the basis that it is just a rumor. Similarly,
organizations 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 rumors. On the contrary, competent managers
should accept the informal network. At the same time, they should make
efforts to counter false rumors and to ensure transparency through the
formal network. This means making all types of information - both positive
and negative, available to everyone in the organization through official
channels.

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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 flows freely to all levels in the organization.

Self Assessment Question

Fill in the blanks
6. A formal communication network is characterized by ___________
______________.
7. The most valuable ideas and suggestions often come from
_______________ communication.
8. An advantage of regular downward communication is _____________.
9. In a multi-layer organization, _________________ communication is
more important than __________________ communication.
10. While ________________ should be suppressed, _______________
networks should be accepted.

3.4 Summary
While the first two units dealt with communication in general, this unit has
focused entirely on the nature of organizational communication. A manager
has to stay in constant touch with several publics or stakeholders, both
inside and outside the organization. Therefore there are two aspects to
business communication – internal and external communication. The
internal publics include superiors, peers, subordinates, shareholders,
employees and their unions. The external publics include consumers,
intermediaries, suppliers, government, society, bankers and the media.
Some of the most common reasons for communication with each of these
publics were explained, along with the appropriate channels of
communication to be used. Communication with superiors is primarily for
reporting progress, providing feedback or solving work related problems.
Peers need to communicate for coordination and information sharing.
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 positive and negative developments regarding the company
and to win their confidence.

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Communication with external publics such as government, society and the

media involves a large element of public relations, or projecting a favorable
image of the company. Today, organizations 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 and 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.
This unit also dealt with communication networks, or the system through
which information flows within the organization. There are two types of
networks – formal and informal.
A formal network is determined by an organizational chart and hierarchy.
Here information flows only through official channels and can flow in three
directions – upward, 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. Horizontal or lateral communication has assumed more
importance today, due to the organizational hierarchy becoming flatter.
While its main benefit is teamwork and coordination, it may lead to conflicts
between co-workers.
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 network is not just for rumors and has
several benefits. It may fill in the gaps left by the formal network, or help to
confirm important news regarding the organization. It could also be used
constructively to test the reactions of employees on a particular issue.
Therefore the informal network should not be suppressed by managers.

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3.5 Terminal Questions

1. In your opinion, who are the most important internal and external
stakeholders that a manager needs to communicate with and why?
2. Explain why Public Relations is an important part of external business
communication.
3. What are the relative advantages and disadvantages of formal and
informal communication networks?

3.6 Answers
Answers to Self Assessment Question
1. F
2. F
3. T
4. F
5. i) b, ii) d, iii) j, iv) i, v) c, vi) a, vii) e, viii) f, ix) g, x) h
6. Official channels;
7. Upward;
8. Transparency/openness
9. Vertical; horizontal/lateral
10. Rumors; informal

Answers to Terminal Questions

1. Refer 3.2.1, 3.2.2
2. Refer 3.2.2
3. Refer 3.3, 3.3.1, 3.3.2

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Unit 4 The Importance of Listening

in the Workplace
Structure:
4.1 Introduction
Objectives
4.2 What is listening?
4.3 Barriers to Listening
4.4 Strategies for Effective Listening
4.5 Listening in a Business Context
4.6 Summary
4.7 Terminal Questions
4.8 Answers

4.1 Introduction
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. Given its importance, in this unit we will try to understand the
true meaning of listening, examine some obstacles to listening and discuss
methods to be adopted for better listening in the workplace.
Objectives
After studying this unit, you will be able to:
 Distinguish clearly between “hearing” and “listening”
 Categorize the main barriers to effective listening
 Assess your own listening skills by adopting specific strategies
 Recognize the importance of listening in the workplace

4.2 What is listening?

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”. Listening has been identified by Stephen Covey as one of the

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“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 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 of the different types of listening.
4.2.1 Types of Listening
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.
2. 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. In order 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 nonverbal behavior. This can be
achieved by closely observing various aspects of the speaker’s body
language and tone of voice.
3. Evaluative Listening
This kind of listening involves making judgments about what the speaker
is saying.
We listen critically and try to assess what is being said as good, bad, worthy
or unworthy.

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We generally resort to this kind of listening when the other person is trying
to persuade us, change our behavior or convictions. The tendency then is to
question what the speaker is trying to say.
4. Appreciative Listening
This kind 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.
5. 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.
6. Therapeutic Listening
In this type of listening, the listener goes beyond merely empathizing with
the speaker and tries to help him to change or develop in some way. In
other words, he 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 counseling.
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” him, by suggesting what
measures he could take to improve his performance in future.

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7. 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.

Self Assessment Question

Are the following statements true or false?
1. Some people are born listeners.
2. Comprehension listening is the most basic type of listening
3. Listening to a salesperson’s presentation is an example of evaluative
listening?
4. Responding to customer complaints is an example of dialogic listening?
5. Solving employees’ problems often involves both empathetic and
therapeutic listening.

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 categorized as follows –
1. 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 the rate of approximately 500 words per minute,
whereas speakers talk at around 125 words per minute. 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.

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2. 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.
3. 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 his ideas. People with this kind of closed minded attitude make very
poor listeners.
4. 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 that 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 speaking
sometimes to ask questions, agree or disagree with the speaker, give
feedback, etc.
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, emphasizes the importance of listening by saying
“Big people monopolize the listening. Small people monopolize the talking.”

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5. 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.
6. 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 purposes. 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
his answer at face value, whereas a female user may detect some
hesitation in his 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.
7. 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 recognize the need for organized training programs in
listening skills. Today, many organizations both in India and abroad
incorporate listening skills in their training programs.
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8. 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 him that they
are paying attention. Others may tend to listen to each and every fact and,
as a result, miss out on 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.

Self Assessment Question

6. Match the following –
i) Listener–speaker gap a. Cultural barrier
ii) Listening for emotions b. Physiological barrier
iii) Ego problems c. Gender barrier
iv) Switching from one TV channel to another d. Attitudinal barrier
v) Speaking in a different language e. Bad listening habit

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 are discussed in detail below –
1. 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. 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, are some of the ways
in which you can overcome some of the physical barriers to listening.
2. 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 are 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 meal. The chances

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are that your orders may not be understood correctly. Therefore, as far as
possible, arrange face-to-face contact to ensure more accurate listening.
3. 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.
4. Use Non-verbal Cues to Indicate Active Listening – It is important to
communicate to the speaker that you are listening actively to what he 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.
5. Use Verbal Communication to Indicate Active Listening – While non-
verbal behavior 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. You need
to seek clarifications, give feedback and suggestions, or just paraphrase in
your own words what the speaker has said, in order to convey that you have
understood his message.
6. 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 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.

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7. Use the Speaker-listener Gap constructively – It was pointed out

earlier that listeners have the ability to absorb information faster than
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 he may say next. Thinking ahead of the speaker and trying
to guess where his talk is leading is a good strategy for effective listening.
This is not easy, but can be learnt through proper training.
8. 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 behavior of the speaker. The importance of
non-verbal cues has been emphasized throughout this book. 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.
9. 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 he is trying
to convey. Similarly, being over critical of the speaker’s accent or
mannerisms may make you miss the essence of the message.
10. 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 organized?”, are some possible questions that you could
jot down along with the answers.
The table on the next page sums up some of the characteristics of good
listeners, based on studies carried out on perceptions of listening behavior –

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A Good Listener
1. Considers all evidence before jumping to a conclusion
2. Takes notes when listening, in order to recall information or
understand a difficult idea.
3. Concentrates on what the speaker is saying and not on unrelated
thoughts
4. Is willing to consider the opinions of others
5. Listens openly when others disagree with him
6. Encourages others to express their ideas, instead of occupying
center stage
7. Is able to grasp the main idea from others’ comments
8. Is curious about other people and their ideas
9. Does not interrupt others, or change the topic to suit his purpose
10. Makes the speaker feel comfortable while talking
11. Remembers important ideas given by others, even when he is busy
12. Does not pretend to understand, when he is confused
13. Recognizes that people may change over time and have something
new to offer
14. Tries to find solutions to others’ problems
15. Knows when to speak and when to listen

Activity
Request a professor or a friend to give you a session on career
counseling. Assess your own listening skills by questioning the
speaker and paraphrasing (i.e., restating what the speaker says in
your own words) what he/she says during the session.

Self Assessment Question

Fill in the blanks
7. Paying more attention to the way a speaker is dressed, is an example
of focusing on _______________ rather than ________________.
8. A good listener tries to understand the meaning behind
__________________and ______________________ messages.
9. ____________ are known to be physiologically quicker than
_______________.
10. Active listening can be demonstrated verbally through _____________
and ________________.
11. A good listener is ________________ and _____________________.

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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. 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 and so on.
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
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
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.”
Tom Peters, business consultant and co-author of the book “In Search of
Excellence”, emphasizes the importance of listening to your customers. He
says “Find out what the customers really care about and then act. Listening–
that’s the key.” Let us discuss why it is so essential to listen to customers.
4.5.1 Listening to Customers
Organizations today are beginning to recognize 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.
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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 –
1. Believe the Customer – There is a saying that “The customer is the
king.” Therefore it is important to take the customer for his word, even
though he may not be telling the truth, rather than doubt what he is saying.
Even if the customer’s complaint may not be justified, it is important to make
an attempt to solve his problem.
2. Listen Actively – Make your customer feel that you are showing
empathy, or putting yourself in his or her 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 and 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.
3. Apologize – Even if the customer and not the company are at fault, it is
always a good idea to apologize 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.
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4. 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.
5. Thank – Even if the customer has launched a complaint, it is important to
thank him/her 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 organization.
4.5.2 Listening to Employees
In the earlier unit on organizational 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
criticized 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 he/she 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

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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 these barriers 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 his reasons for leaving the organization, the
interviewer may have to do more of the listening.

Self Assessment Question

Are the following statements true or false?
12. Listening skills are equally important in all types of industries.
13. Customers should be made to apologize for making wrong complaints
14. Listening actively to a customer should be indicated through verbal
communication.
15. Listening to employees, or inviting their suggestions involves only
downward communication.
16. The type of listening during a job interview is mostly evaluative
listening.

4.6 Summary
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 is a tiring activity since it means understanding the
meaning behind the speaker’s words and requires concentration. This is
known as “active” listening, as opposed to “passive” listening, which is
simply hearing the sound of the words.
There are different types of listening, each of which is appropriate for
different situations. They are –
 Discriminative listening
 Comprehension listening
 Evaluative listening
 Appreciative listening

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 Empathetic listening
 Therapeutic listening
 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 –
 Physiological barriers, such as hearing problems
 Physical barriers, such as distracting sounds
 Attitudinal barriers, such as not being open to others’ ideas
 Wrong assumptions, such as the perception that successful
communication is the sender’s or speaker’s responsibility
 Cultural barriers, such as different accents
 Gender barriers, such as different listening styles of men and women
 Lack of training in listening skills
 Poor listening habits, such as pretending to listen
Some of these barriers can be overcome by consciously adopting a few
strategies such as the following-
 Creating the right environment
 Communicating face to face
 Being open minded
 Using non-verbal cues to indicate listening
 Using verbal communication to indicate listening
 Listening fully before speaking
 Using the listener-speaker gap constructively
 Paying attention to verbal and non-verbal messages
 Paying attention to content, rather than delivery
 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.
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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.
In addition to the above, listening is a skill that is required by interviewers
and interviewees during job interviews, for gathering meaningful information.

4.7 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. How would you overcome this barrier?
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?

4.8 Answers

Answers to Self Assessment Questions

1. F
2. F
3. T
4. F
5. T
6. i) b, ii) c, iii) d, iv) e, v) a
7. Delivery; content
8. Verbal; non-verbal
9. Listeners; speakers
10. Clarifications/questions; feedback/suggestions
11. Curious; open-minded/attentive
12. F
13. F
14. T
15. F
16. T
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Answers to Terminal Questions

1. Refer 4.2
2. Refer 4.3 and 4.4
3. Refer 4.4

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Unit 5 Guidelines for Written

Business Communication
Structure:
5.1 Introduction
Objectives
5.2 General Principles of Writing
5.3 Principles of Business Writing
5.4 Summary
5.5 Terminal Questions
5.6 Answers

5.1 Introduction
This unit will focus on how to improve your written communication in general
and will also provide some introductory guidelines for effective business
writing. Errors in grammar, spelling, punctuation and typing can be harmful,
since they can lead to misunderstanding of a message and make the
receiver lose confidence in the sender. Therefore it is important to strive for
perfection in writing, in order to ensure that your message is received
accurately. 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 do‟s and don‟ts of business
writing will be highlighted, which will lay the foundation for more detailed
units on writing business letters and reports, later in this book.
Objectives
After studying this unit, you will be able to –
 Evaluate your writing style
 Identify common errors in English usage
 Recognize the appropriate use of active and passive voice, grammar
and punctuation
 Distinguish between general and business writing
 Compose a piece of business communication confidently

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5.2 General Principles of Writing

Written messages must be made as readable as possible, by making them
uncomplicated and easy for even the average person to understand.
Readability in turn is largely determined by the length of words, sentences
and paragraphs. A common mistake made by writers, especially Indian
writers, is to try and 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 by first looking at some tips on
writing style, followed by some specific rules regarding English language
usage, spelling and punctuation.
5.2.1 Tips on Writing Style
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 colorful language and mistakes in various part-of-
speech categories.
1. 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 either not get the message at all, get the wrong
message by guessing the meaning incorrectly, or wonder whether the
sender intentionally selected a complicated word for making an impression.
Therefore, it is better to rely on plain, simple words, such as the ones shown
in the left column, rather than in the right column below, even though they
mean the same thing –
About = Approximately
Do = Accomplish
Improve = Ameliorate
Show = Demonstrate
Change = Modify
Ask = Interrogate

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This is because short, 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.
2. 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 and not the lay person might understand. 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 reports
of a highly technical nature, where the reader is in a position to understand
these terms.
Slang refers to casual words that are not accepted and recognized in a
Standard English dictionary. 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 colorful comparisons
which evoke visual images.
Examples –
1. He is rock solid in his support.
2. We provide an umbrella of insurance products 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.
3. 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 part-of-speech
categories-
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 visualized and
“concrete nouns” or nouns that can be visualized. A message will be

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understood more clearly if concrete nouns are used as subjects in a

sentence, rather than abstract nouns.
Example
Cancellation of the contract will be done in March. (use of abstract noun as
subject)
The contract will be cancelled in March. (use of concrete noun as subject)
In the above 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 visualized, it also emphasizes the main idea in the
sentence.
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. Consider the following
example –
You need to consult your professor on that subject, but he has to be a
specialist in the area of Finance.
In the above 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 use of the pronoun completely
Example – You need to consult your professor on that subject, but a
specialist in the area of Finance is required.
2. Repeat the noun
Example – You need to consult your professor on that subject, but the
professor has to be a specialist in the area of Finance.

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3. Use a plural noun

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
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
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 emphasizing a positive
idea or message and to avoid the second person when presenting a
negative idea.
The following example illustrates this –
You made a good presentation.
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. On the other hand, the second sentence contains a negative
idea and emphasizes 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 examples illustrate the misuse 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)
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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 –
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.
Consider the following examples –
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 above 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 –
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.
Examples
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.

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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
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 –
Examples –
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 Question

Are the following statements true or false?
1. It is better to use the word “cognizant”, rather than “aware.”
2. The expression “Her voice was silky smooth” is an example of a
metaphor.
3. Abstract nouns should be used as the subject in a sentence.
4. The sentence “Each of the following employees are being promoted” is
grammatically correct.
5. Positive ideas may be expressed by using the second person pronoun.
5.2.2 Active vs. Passive Voice
We discussed the correct use of verbs in the previous section. 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.
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Examples –
John wrote the report. (Active voice).
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 example, the subject, i.e., the report,
is emphasized more than the doer of the action, giving a less clear picture to
the receiver.
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 -
 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 emphasize what has been done, rather
than who has done something. 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 an Unpleasant or Negative Idea has to be Subordinated –
Generally, negative thoughts should be de-emphasized and not
highlighted. The passive voice comes in useful in such cases, as
illustrated in the example below –
The corrections in the report have not been carried out. (Passive voice)
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.
5.2.3 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. Here are a few examples –

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British American
Humour Humor
Colour Color
Analyse Analyze
Organisation Organization
Programme Program
Centre Center
Cheque Check
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. Consider the following examples –
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 these words –
Examples
1. “Compliment” means to praise someone, whereas “complement”
means to go with ( e;g; your jewelry 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, as well as in
business writing. The main categories of punctuation and their uses are
highlighted below –

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1. Apostrophe
To form the possessive singular – e.g., “the Company‟s profits.”
 To form the possessive plural of words ending in “s” – e.g., “the dealers‟
margins.”
 In expressions that indicate ownership – e.g., “last year‟s records.”
2. Parentheses or Brackets
To separate a phrase from the main section of a sentence, when it is not
related to it grammatically – e.g., “The Indian team tried their best (God
knows it) but lost in the finals.”
3. Colon
* To suggest that a list will follow a statement in sentence form – e.g. ,”For
three reasons, we have decided to expand our market : 1) 2) 3).”
4. Comma
 To separate words in a series – e.g., “The main punctuation categories
are the full stop, the comma, the colon, the semi colon and the
apostrophe.”
 To separate two adjectives that modify the same noun – e.g., “The MBA
exam is a long, difficult, objective type exam.”
5. Dash
* To separate the words in a sentence which are not necessary for its
structure – e.g.,
“His answer – the correct answer – was supported by examples drawn from
his own experience.”
6. Full stop or Period
At the end of a sentence
 After abbreviations – e.g, Dr., No., Jr.
7. Quotation Marks
 To enclose what is stated by others, verbatim – e.g., The manager said “
I will review your progress every month.”
 To enclose titles of magazine and newspaper articles – e.g., “ Progress
in Stem Cell Research.”

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8. Semicolon
 It is 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.
Example – “We would like the material to be delivered in the morning hours,
but before 5 pm will also be convenient.”
“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.”
5.2.4 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.
1. Redundancies – These refer to phrases which contain repetitive or
unnecessary words to express the same meaning. This is a common
Indian tendency 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 highlighted words 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.
Here are a few more examples –
True facts
Past history
Exactly identical
Personal opinion
Other alternative
A redundancy does not serve any purpose and is a mistake since it wastes
words.

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2. Cliches – These 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 for “finally”. The cliché “thanking you in advance” is
presumptuous, since it assumes that the reader will do whatever has been
asked of him. It seems to say that instead of thanking him 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.
3. Frequently Misused Words
Certain words which sound similar or are spelt slightly differently tend to be
used in the wrong context. Some examples are given below –
1. All together and altogether – “All together” means “ in one group”,
whereas “altogether” means “ completely.”
Example – The answer is altogether wrong.
The students were all together.
2. Already and all ready – “Already” means “at a previous time”, whereas
“all ready” means “everything is ready”.
Example – He had already left when I called.
The computers are all ready to be used.

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3. Eminent and Imminent – “Eminent” means “well known”, “imminent”

means “about to happen.”
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.”
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.”
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 Question

6. Match the following
i) Passive voice a) Labor
ii) American spelling b) Full complete
iii) Quotation marks c) Raise and rise
iv) Redundancy d) Enclose title of an article
v) Frequently misused words e) Negative ideas

5.3 Principles of Business Writing

Having dealt with writing in general, we will now go briefly into 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 some detail.
5.3.1 Tone
We discussed tone of voice or “paralanguage”, in an earlier section on non-
verbal communication. It was pointed out 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.

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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.
Example
You failed to meet the sales target.
The above statement has a negative tone, since it emphasizes what could
not be achieved. The same idea could be expressed in a more positive tone,
by emphasizing what could have been done instead.
Example
With a little extra effort, you could have achieved the target.
The 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.
Consider the following 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.
Example
I am sure you will agree that our Company has the best reputation for
quality and service.
Instead, something like “We shall try to live up to our reputation for quality
and service.” would be more appropriate.
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 –

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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
organization 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.
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, the following titles should be used –
“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 also
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 tries to make certain elements stand out and others to
get little attention, so too with the business writer. An important principle of

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business writing is to emphasize 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
emphasized, while unpleasant and insignificant thoughts are subordinated
or de-emphasized.
Several techniques for emphasis may be used by the business writer –
 Place the idea in the first paragraph or in the last paragraph, in order to
get attention.
 Put the word that you wish to emphasize first or last in the sentence.
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 emphasize the doer of the action and the passive
voice to emphasize the receiver of the action.
Example – John made the presentation. (Active)
The presentation was made by John. (Passive).
 Use words such as “primary”, “major” and “significant” to lay emphasis.
Example – Cost is a significant factor to be taken into consideration.
 Use repetition.
Example – The Tata Nano is an inexpensive car. Inexpensive to purchase
and Inexpensive to maintain.
 Number the ideas, so as to rank them in the order of importance
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 emphasize key ideas.
Example – The Reva electric car is 25% LESS POLLUTING than other
cars.
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.”

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This means explaining the benefits to the reader, understanding his situation
and answering his unspoken question “How is it relevant to me?”
Example – Instead of saying, “Our bank will be open 24 hours”, say “You
will be able to avail of round-the-clock banking service.”
5.3.3 Write at an Appropriate Level of Readability
A 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.
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 (e.g. “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
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?

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Self Assessment Question

Fill in the Blanks
7. The tone of business writing should not be ________ and _________.
8. Using the passive voice is a technique of _____________________.
9. Saying “Our products are synonymous with quality and affordability” is
an example of ____________ _________________.
10. Readability is determined by ______________ ________________.
11. Saying “Manpower” instead of “Human Resources” is an example of
______________________ ______________________.

5.4 Summary
This unit explained some important guidelines for written communication in
general and for business writing in particular.
Regarding general writing, some tips on how to improve writing style
through the choice of appropriate words were offered, such as –
 Choosing short, uncomplicated words
 Using parts of speech correctly
 Avoiding jargon, slang and colorful language
The appropriateness of the active and passive voice for different situations
was also highlighted. The active voice draws attention to the doer of the
action, while the passive voice draws more attention to the receiver of the
action and is used in some types of business writing, such as reports.
Regarding spelling, some common errors tend to be made in the following
areas –
 Confusion between British and American spellings
 Confusion between the spelling of the noun and verb form of certain
words
 Mistakes in spelling of similar sounding words that have different
meanings
The main categories of punctuation and their uses were also explained in
some detail.

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Some common mistakes made with regard to English language usage were
pointed out, such as –
 Redundancies, or use of unnecessary words
 Cliches, or worn out and overused phrases
 Frequent misuse of similar sounding words
Business writing differs from general writing in terms of being more formal in
tone. Some rules of good business writing include –
 Making the tone positive, courteous, confident, sincere and non-
discriminatory, through the proper choice of words.
 Knowing which ideas to emphasize and which ones to downplay. Some
techniques for doing this include placing ideas at the beginning or at the
end, using active and passive voice, using emphatic words, repetition of
words, use of visual elements and numbering of ideas.
 Stressing the “you attitude”, or benefits to the reader
 Writing at an appropriate level of readability. A formula for calculating
the readability of a piece of writing, the “Fog Index”, was also explained.

5.5 Terminal Questions

1. 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?
2. What are some of the consequences of spelling and punctuation errors,
redundancies, clichés and misuse of words?
3. How does general writing differ from business writing, in terms of
language, style and tone?

5.6 Answers

Answers to Self Assessment Questions

1. F
2. T
3. F
4. F
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5. T
6. i) e, ii) a, iii) d, iv) b, v) c
7. Negative/insincere/discourteous/exaggerated / discriminatory
8. Subordination/de-emphasis
9. “My attitude”
10. Sentence length/word length
11. Sexist language/discriminatory tone

Answers to Terminal Questions

1. Refer 5.2.1
2. Refer 5.2.3 and 5.2.4
3. Refer 5.2 and 5.3

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Unit 6 Developing Oral Business

Communication Skills

Structure:
6.1 Introduction
Objectives
6.2 Advantages of Oral Communication
6.3 Oral Business Presentations
6.4 Summary
6.5 Terminal Questions
6.6 Answers

6.1 Introduction
Irrespective of your field or the type of job that you choose to take up,
developing good oral communication skills is a must. 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 organization. Your oral
communication skills often reveal your personality. Speaking effectively also
gives you great visibility and confidence and can contribute to your career
success.
As you go up the corporate ladder, presentation speaking skills become
more important than technical skills. Your ability to organize your ideas,
present them and sell them to others is what determines your success.
Surveys have revealed that business executives spend a good deal of time
making presentations of different types. Whatever the nature of the
presentation, it requires planning, developing a structure and strategy and
using supports, to make it effective. This unit provides some detailed
guidelines for enhancing the effectiveness of business presentations.

Objectives
After studying this unit, you will be able to –
 Explain the advantages of oral communication skills in a business
context
 Classify oral communication into different categories

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 Recognize the need for preparation of oral presentations

 Use a step-by-step approach for making presentations
 Select visual and other presentation aids for maximum effect

6.2 Advantages of Oral Communication

To recap briefly what was discussed in Unit 2, oral communication has
some advantages compared to written communication. These include its
personal quality, high interactivity, possibility of making immediate contact,
instantaneous feedback and control over the receiver’s attention.
Oral communication was also classified into oral face-to-face
communication (meetings and presentations) and oral non face-to-face
communication (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.
Example – Several retailers like Walmart, the world’s largest retailer, make
use of teleconferencing to keep their US headquarters in touch with their
store managers worldwide. Some headhunters 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 organizations 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

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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.
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 Question

Are the following statements true or false?
1. Conflicts between co-workers can be resolved through teleconferencing.
2. Asking for a few days of leave from work may be done through voice
mail.
3. Telephone communication has the advantage of providing immediate
feedback.

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 will not be
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

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types of presentations and the audiences to whom they are addressed are
mentioned in the table below –

Type/Purpose of Example Audience

Presentation
Briefing and Information New online leave Employees
application procedure
Orientation Orientation on Distance Employees
Education Terminology
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 Bankers
by the company
Policy Proposal New mobile 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 above indicates that oral presentations can range from simple to
more complex ones, each with a different purpose. Whatever the nature of
the presentation however, the same steps in planning and preparation are to
be followed. In this section, we shall discuss 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

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to achieve through the presentation should 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 the table above, 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.
 To Persuade – A presentation that aims to persuade would try to
change the attitude or behavior of the audience. It usually involves
selling either a product, or an idea. In the above table, 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 the table above, presentations
marking special occasions such as the company anniversary, may
merely focus on making people feel good about them.
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 –
1. Whom do I want to influence?
2. What do I want them to do at the end of the presentation?
3. How do I want them to do it?
4. When?
5. Where?

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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 above statement of purpose 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 should be quantified, so that it is
measurable.
Presentation goals should also 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 should not expect them to become experts at the end
of the session.
2. Development of the Key Idea
The key idea of a presentation is a statement that expresses the main
message to be conveyed to your audience. It is different from a
statement of purpose, in that the purpose is generally meant for yourself as
the presenter, while the key idea is mentioned to the audience at the
beginning of the presentation.
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 should 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

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would be able to understand. If not, you may have to make the

presentation more simple, 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 humor thrown
in, to a more formal style. Others may like the presentation to be made
at a slower pace. It should be remembered however, that humor should
be used with care, so that it is relevant and does not offend the
audience. Analyzing all this in advance would help in determining how
the presentation should be delivered.
 Demographic Characteristics of the Audience – The gender, age,
cultural background and economic status of the audience also needs to
be studied in advance, so that the presentation may be tailored to
appeal to that particular audience.
Example – A financial planner 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 and so on. With a smaller group, the presentation could
be made less formal, the time for questions and answers less and the
visuals smaller, than for a larger group.
 The 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 will be required.
 The 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

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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 analyzing 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 should
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..
5. Analysis of the Circumstances
This includes taking into consideration any limitations of infrastructure, time
and context that might affect your presentation in any way. For example, if
you will be speaking in a small room where the lighting and the acoustics
are insufficient, you may have to overcome these limitations by altering the
seating arrangement, using brighter visuals and speaking loudly. If the
presentation is to be made after lunch, it may have to be made more
attention getting, so that the audience is kept 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 has been done, you will need to develop an
outline of your presentation. Irrespective of the nature and purpose of the
presentation, a standard format is generally followed, including the
following –
 Introduction – This should include an “attention getter” to get the
audience involved and interested in the presentation topic. Several
techniques may be used to command attention, which will be discussed
later. The key idea, or main message which was discussed earlier, will
also be conveyed to the audience during the introduction.

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 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
should have as much “punch” as the attention getter in the introduction.
7. Collection of Information and Material
Once the outline of the presentation has been developed, you will need to
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 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.
8. Organization of the Body
The body of the presentation should always be prepared before the
introduction. Organizing the body consists in identifying the key points that
will support your main idea and then selecting an organizational 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 may be –
1. It has greater cleaning power than other brands.
2. It is more affordable
3. It is easier to use than other brands.
Once the main points have been determined, sub points can be developed
to expand on each of these.
The next step is to choose an organizational plan to present these main and
sub points.
Example – In the case of a sales presentation such as the above, a
“problem-solution” pattern or plan may be followed, where the customer is

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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 should be
planned with care. It should 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 should be developed, using
techniques such as humor, dramatic questions, an interesting story, a
quotation or a startling statement.
Example – Do you know that the number of road accidents last year
touched the 100,000 mark?
Once audience attention has been captured, the main idea should be stated
clearly, followed by a preview of the entire presentation, so that people know
what to expect.
10. Planning the Conclusion
The conclusion of a presentation should be shorter than the introduction and
occupy only 5 per cent of the entire presentation. Generally, every
conclusion should 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 should 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.
Example – Now that you have seen what our vacuum cleaner can do, walk
into our store today to place your order and avail of an early bird discount!
11. Selection of a Delivery Style
Once your presentation has been adequately prepared in terms of content,
you also need to ensure that it will be delivered effectively, by selecting an
appropriate style of delivery.

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Five different delivery styles are available to speakers –

 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 should 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, but 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.
 Memorizing the Presentation – This is the least appealing style of
delivery, since it comes across as unnatural and monotonous to the
audience. A speaker who memorizes and delivers a presentation word
for word will also be at a disadvantage if he forgets a part of the speech,
since he or she will be unable to speak naturally.
 Reading from Written Notes – This consists in 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 consists in 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
speaker can elaborate on these ideas in his 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.

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Self Assessment Question

4. Match the following
i) General purpose statement a. Demographics
ii) Quantified goal b. To persuade
iii) Audience size, age and gender c. Specific purpose statement
iv) Use of humor d. Speaking from notes
v) Trigger words e. Opening and closing
statements
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 should be used only where relevant and not just for the
sake of it, since they may distract the attention of the audience from the
speaker’s main message.
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 it is shown in actual use.
 Photographs – Photographs are true to life and are an effective way of
illustrating products and a variety of other images. 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

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area of specialization of an MBA program. 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. The relative advantages and disadvantages of each of
these media and some guidelines for use of these media will be discussed.
1. Flip Chart – This 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
have the advantages of being easy to prepare, use, carry and set up.
However, they are unsuited for making a presentation to a large audience.
They are also clumsy and can become worn out after repeated use.
2. Transparencies – These 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 reuse them.
The disadvantage of using transparencies is that they are unwieldy and
require an overhead projector that may not always function. The speaker
also has to position him or herself in such a way that the projector does not
block anyone’s view.
Some do’s and don’ts of using transparencies for a presentation are –
 Switch off the overhead projector when you are not showing
transparencies.
 Use a piece of paper to cover the parts of the transparency that you
have not yet discussed. Reveal the information on the transparency as

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and when you discuss that point, so that the audience does not get
ahead of you.
 Use a pointer to refer to the information on the transparency as you
speak.
 Face the audience and point to the transparency on the glass top of the
projector, instead of turning your back and pointing to the screen.
3. Power Point Slides – This is an effective visual aid, since it lends 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. Power point slides are easy to store,
since they are less unwieldy than flip charts and transparencies. It is also
possible to transfer photographs, logos and other visuals directly on to the
slide.
The disadvantage of power point 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, power
point slides should be prepared carefully and used judiciously.
The table below lists some do’s and don’ts of preparing and using power
point slides for presentations -
Checkpoints for Using Power Point Slides
1. Do not make the layout of the PPT slides too cluttered or crowded.
2. Do not prepare too many or too few slides. Around 12 slides should
be 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. 7 words per sentence and 7 lines per slide is a general
rule of thumb.
5. Make the slides look sober and dignified, not over-decorated.
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.
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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.

4. Handouts – These 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 study them during the
presentation, instead of listening to you speaking. This can be avoided by
telling them to study it later, or by distributing them at the end of the session.
5. Computerized Displays – These 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 advance preparation. However, it is suitable only for
small audiences, due to its small size. One way of overcoming this and
using it to make a presentation to a large audience, is to use an LCD
projector to project the images on to a big screen.
6. Videotapes – These are audio-visual aids that exploit the attention
getting properties of television for maximum impact. Using videotapes to
support 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
should not be used for the sake of entertainment. Attention should also be
paid to producing them carefully, to make sure that the quality is of a high
standard.

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No matter which type of visual aid you choose to support your presentation,
some basic rules need to be followed when using them –

1. 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.

2. Match your Visuals with the Level of the Audience – Your visual aids
should be made more or less sophisticated, depending on your
audience. For example, if you are making a presentation to top
management, the graphics should be extremely polished. For less
formal presentations, simple graphics created on your own computer or
laptop should be sufficient.

3. Make the Visuals Clear and Large enough – Avoid creating visuals
that are so small that that they have to be described. It is better to use
no visual support, than to use visuals that cannot be seen.

4. Make the Visuals Simple – When creating visuals, avoid making them
too intricate and detailed, so that the audience can understand them
without difficulty.

5. Avoid Too Much Text with Visuals – Visuals should have short
captions, using only key words and simple typefaces, so that attention is
drawn to the visual alone.

6. 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.

7. 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 saying now.

8. Remove Visuals After Use – Similarly, 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.

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9. 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.
10. Rehearse Setting Up Visuals – Practice using the visuals before the
presentation, so that you are familiar with the sequence, when to show
and remove them, without any confusion.

Activity
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?

Self Assessment Question

Fill in the blanks
5. Two types of visual aids that can make presentations more credible are
_______________ and ______________ ____________________.
6. _________________ are better suited for large audiences than
____________________.
7. Power point slides should not be ____________________ and
_______________________.
8. In general, visuals should be prepared to match the
__________________.
9. Two types of media for presenting visual aids to a small audience are
_______________ and ____________________ .

6.4 Summary
The main advantages of oral communication are its high interactivity,
personal quality, possibility of making quick contact, immediate feedback
and command over the listener’s attention. Oral communication may be
classified into face-to-face (meetings and presentations) and non face-to-
face (teleconferencing, telephone and voice mail) communication. While
face-to-face communication is superior in most ways, it is also time
consuming and expensive, when people are separated by distance.

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Teleconferencing is a good substitute for face-to-face communication and

has the same advantages, except that it is unsuitable for certain types of
communication. Telephone communication makes it possible to contact
people who would otherwise be impossible to reach. Voicemail makes it
possible to keep a permanent record of the communication and to control
the content of a message.
Oral business presentations are needed when written communication alone
cannot do the job, such as persuading audiences and getting approval for
ideas. Oral presentations are of different types and may have different
purposes. They may be made to both internal and external audiences.
Irrespective of its nature and purpose, the steps involved in preparing a
presentation are the same and include the following –
 Defining the general and specific purpose
 Developing the key idea, or main message
 Analyzing the audience – their areas of expertise, preferred style of
presentation, demographic characteristics, knowledge levels and
attitudes
 Analyzing your knowledge and attitude as a speaker
 Analyzing the limitations of infrastructure, time and context
 Preparing a presentation outline
 Collecting information
 Organizing the body, introduction and conclusion
 Selecting a style of delivery
Presentations should try to use visual aids wherever relevant, since visuals
are more attention getting, persuasive and memorable. Several types of
visual aids may be used in presentations, such as product demonstrations,
photographs, diagrams, lists and tables, pie charts and graphs. These aids
may also be presented through a variety of media, including flip charts,
transparencies, power point slides, handouts, computerized displays and
videotapes.
Each of the above media has its advantages as well as its limitations and
should be used depending on the nature of the presentation and the
characteristics of the audience. The guidelines for using these aids should
be carefully followed, so as to achieve maximum impact. In general, visual

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aids should be used only when they are relevant. Attention should be paid to
the design, to ensure that visuals are kept simple, yet sophisticated enough,
depending on the audience. The presentation should be rehearsed to make
sure that visuals are displayed at the right time.

6.5 Terminal Questions

1. Select a company of your choice in a sector that you would like to work
in. Imagine that you have to make a brief presentation on this company
to business school students. Develop – a) A general and specific
statement of purpose b) The key idea c) Your style of delivery.
2. Taking the same example above, list out the types of visuals and media
for presentation of these visuals that you will select. Why would these
visuals and visual aids be most appropriate?
3. Prepare an outline of a presentation, encouraging prospective students
to enroll in the SMU MBA program.

6.6 Answers

Answers to Self Assessment Questions

1. F
2. F
3. T
4. i) b, ii) c, iii) a, iv) e, v) d
5. Photographs, product demonstrations
6. Transparencies, flip charts
7. Cluttered/overcrowded, over-decorated
8. Audience
9. Flip charts, computerized displays

Answers to Terminal Questions

1. Refer 6.3.1
2. Refer 6.3.2
3. Refer 6.3.1

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Unit 7 Reading Skills for Effective Business

Communication

Structure:
7.1 Introduction
Objectives
7.2 What is reading?
7.3 Types of reading
7.4 SQ3R Technique of Reading
7.5 Summary
7.6 Terminal Questions
7.7 Answers

7.1 Introduction
Apart from listening, written and oral skills, business executives also need to
equip themselves with reading skills, in order to succeed in the workplace.
These skills are very different from what you require as a student of
management. 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 articles for their busy
superiors. Unless you familiarize yourself with the different techniques of
reading, you will not be successful. This unit deals with the different
purposes and types of reading and some special techniques that should be
applied, in order to extract the most out of reading.

Objectives
After studying this unit, you will be able to:
 Explain how active reading enhances comprehension and retention.
 Describe the text that is read and relate it to other texts
 Select different types of reading for different purposes
 Use scanning to read passages for specific information

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7.2 What is Reading?

The following are a few definitions/descriptions regarding the process of
reading.
 “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.
Understanding 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 three levels-
i) Pure, literal response to the familiar words on the page – there is no in-
depth understanding.
ii) Recognition of the writer’s meaning. In other words, we read and
recognize the intention of the author in writing the given text.
iii) Personal experience, which helps you to understand the given matter.
All these three levels could be described thus: 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.

ENCODER/WRITER MESSAGE DECODER/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

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The above items are read either for knowledge, personal interest, pleasure,
or to gather information. For you as students, the purpose of reading is
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 associated with 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.
You may also need to do something concrete in the near future after
you have read whatever it is you are reading. This is known as action
reading. Professional reading is done when you need to continue
learning and studying, so that you develop your own thinking and
skills. However, you should 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
an “active” process. A reader can understand a text only when he/she
actively uses his/her 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 and the appropriate method of reading
 Knowledge of the world (experience/background knowledge)

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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.
Self Assessment Question
Are the following statements true or false?
1. We cannot understand the intention of the author while reading any
given text.
2. A book is read only for the pleasure of reading it.
3. The intention of reading a medical report is to gain information.
4. Reading is an encoding process of communication.

7.3 Types of Reading

As mentioned earlier, we read in different ways, depending on the purpose
for which we are reading a text. Let us look at a few types of reading.
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 on Investment
Management, or to write a paper on Computer Graphics. 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
(This is a short piece of writing on the cover of a book that reviews and
promotes the book). 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.”

Activity 1 (An exercise in skimming)

Match the following business publications with the extracts given below.
1. A text book on modern management
2. A travel guide for businessmen
3. A company’s monthly newsletter
4. A computer software manual
5. A company’s annual report
6. A leading business daily

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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
insummerand 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 color
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.
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.

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7.3.2 Scanning
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 following exercise, 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, regularly arrives at work wearing jeans, trainers
and a colorful 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.”
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 till 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

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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.
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?
(Taken from: Milne John Morrison. Business Language Practice.)

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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 should not be given
less priority, because it is extensive reading. It is enjoyable, as well as
informative. Here, we practice 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 based.
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
(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.)

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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. When you read a book as a resource material for
research, you read it intensively because the overall understanding is not
the objective or purpose of our reading. When you read an article in order
to write a review on it, you read it intensively. We use all the skills of
reading when we do intensive reading.

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.
Every bright star is a sun, like our own sun. This means that stars are
huge balls of glowing gases. They are so hot, that if a piece of steel was
placed there, it would disappear in a cloud of gas! In many of the stars,
the gases are very thin. This is because the particles or atoms of matter
in the gas are far apart.
But stars do have matter in them. We know for example, that the sun
contains more than sixty of the chemical elements present in the earth.
Among the elements in the sun are hydrogen, helium, iron, calcium and
magnesium.

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In cooler stars, the matter may be more nearly liquid, somewhat like the
boiling iron in a blast furnace. In some very old and cold stars, the matter
may be so closely packed that a cubic inch of it would weigh a ton. Such
stars are called “dead” or “dark” stars.
Astronomers can find out all this by using instruments called
"spectroscopes". The spectroscope studies the light a star gives, and
from this we can learn what kinds of matter it contains and how hot it is.
The different colors of the stars-- white, blue, yellow, or red - show us
what chemical elements are present in them. Different temperatures of
stars also cause differences in the light they give, in their “spectrum”. In
this way, the temperature of a star can be determined.

Glossary
Elements - Simple substances
Blast furnace - A steel container, where iron is separated from iron ore, by
the action of heat and air blown through at great pressure.

Activity 6
Now write a paragraph on "What is a star made of?", using only the main
ideas you have identified.

7.3.5 Loud and Silent Reading

Most of our day-to-day reading is done silently. When we read an article or
an 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.

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7.4 SQ3R Technique of Reading

This technique of reading was developed by Robinson in his book "Effective
Study" (1970). SQ3R stands for the initial letters of the five steps in
studying a text-
Survey S
Question Q
Read R
Recall R
Review R
Let us briefly go through these steps in the given order.
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 organized. A survey of the index or
bibliography tells you immediately whether the book contains what you
need.
Let us take an example. Choose the appropriate reference by a quick
survey:
Here is a bibliography (list of books) on POLIMERIZATION. 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 abcdef
Bibliography
(a) Billmeyer, F.W. 1962. A Text Book of Polymer Science
New York: John Wiley and Sons
(b) A condensed Chemical Dictionary
(c) International Encyclopaedia of Sciences

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(d) Encyclopaedia Britannica

(e) Stille, J. K. 1962. Introduction to Polymer Chemistry: New York: John
Wiley and Sons. Wassermann, Leonard G., 1974
(f) Chemistry: Basic Concepts and Contemporary Applications California:
Wadsworth Publ Co. Inc.
(Adapted from ELT Documents, 1980)
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 lead to gaining 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
should just focus on the main points/ideas and supporting details.
4. Recall: The fourth stage in reading comprehension is recalling. Reading
is not an isolated activity. Every reading exercise increases your
background knowledge. You should be able to connect the information
gained with the already existing background knowledge. Recalling
whatever you have read will enable you to connect and relate the content
with the previous and future learning of the subject. This leads us to the
next stage in reading i.e., review.
5. Review: Reviewing is nothing but 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

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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 should 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 practice these stages consciously in your reading and research and
you will find this to be a highly rewarding experience.

7.5 Summary
Reading is essentially a process of decoding messages, with a view to
understanding a written text. It has various purposes, such as reading for
personal interest, pleasure or for gaining information. A single text is not
written for any one purpose, but could meet any purpose, depending on
individual needs.
Reading in the real sense is an active, rather than a passive process. Active
reading means reading to grasp the meaning. It is a skill which has to be
developed and practiced.
Based on the purpose for which we are reading, there are five different
types of reading –
1. Skimming – Quickly glancing over a text to get a general idea of the
content
2. Scanning – Careful reading to find out specific details
3. Extensive reading – Rapid reading to get an overall understanding of the
matter
4. Intensive reading – Reading slowly with concentration to get specific
details
5. Silent or loud reading – This depends on whether we are reading to
ourselves or reading to others.
An innovative reading technique, known as the “SQ3R” technique, consists
in reading a piece of written material in five different stages-
 Survey, or glancing through a text to get the main idea
 Question, or asking yourself if the text is relevant to your needs
 Reading the text several times with a critical approach

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 Recall, or connecting what you read with your previous knowledge on

the subject
 Review, or cross checking whether the first four stages have been
followed correctly

7.6 Terminal Questions

1. Read the TV program guides given in a daily newspaper and then
answer the following questions –
a. Programs of how many channels have been printed?
b. How many channels offer programs in regional languages?
c. What are the different types of programs that each channel
specializes in?
d. Which music channel has a wider variety of programs?
2. Write a short note on the SQ3R technique of reading.
3. Explain how you will practice skimming and scanning in everyday
reading activities, using suitable examples.

7.7 Answers
Answers to Self Assessment Questions
1. False
2. False
3. True
4. False
Answers to Terminal Questions
1. Refer 7.3.2
2. Refer 7.3.5
3. Refer 7.3.1 and 7.3.2
Answers to Activities
1. 1-c, 2-a, 3-e, 4-d, 5-f, 6-b
2. 1. They now allow employees to wear more informal clothes
2. The change was introduced gradually.
3. Dirty or untidy clothes are not allowed. Some employees still have
to dress more formally.

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4. Mr. Rodriguez found that most American companies allowed some

degree of informal dress.
5. No, they don’t.
6. He arrived at work to find some shirts on his desk.
3. 1-c 2-a 3-c 4-a 5-b 6-c
4. The moon's gravity pulls the earth's oceans towards it, as it moves
round 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)
5. Every bright star is a sun, like our own sun. This means that stars are
huge balls of glowing gases. They are so hot, that if a piece of steel
was placed there, it would disappear in a cloud of gas! In many of the
stars, the gases are very thin. This is because the particles or atoms
of matter in the gas are far apart.
But stars do have matter in them. We know, for example, that the sun
contains more than sixty of the chemical elements present in the earth.
Among the elements in the sun are hydrogen, helium, iron, calcium
and magnesium.
In cooler stars, the matter may be more nearly liquid, somewhat like
the boiling iron in a blast furnace. In some very old and cold stars, the
matter may be so closely packed that a cubic inch of it would weigh a
ton. Such stars are called “dead” or “dark” stars.
Astronomers can find out all this by using instruments called
"spectroscopes". The spectroscope studies the light a star gives, and
from this we can learn what kinds of matter it contains and how hot it
is.
The different colors of the stars – white, blue, yellow, or red - show us
what chemical elements are present in them. Different temperatures
of stars also cause differences in the light they give, in their 'spectrum'.
In this way, the temperature of a star can be determined.

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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
8.5 After the Meeting
8.6 Common Mistakes made at Meetings
8.7 Summary
8.8 Terminal Questions
8.9 Answers

8.1 Introduction
Studies have indicated that business executives spend about half their time
on the job attending meetings of some type or the other. We often find that
someone we are trying to contact is busy in a meeting. Irrespective of the
size of the organization or the job designation, business meetings are a part
and parcel of the everyday work routine. While meetings are common, they
are not always productive and efficiently conducted. Therefore 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. Some common mistakes made during meetings, along with some
guidelines for correcting them will also be explained.
Objectives
After studying this unit, you will be able to –
 Distinguish between the different types of meetings
 Prepare effectively for meetings
 Evaluate your own conduct and active participation in meetings
 Explain how to chair meetings
 List the common errors made in meetings

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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.” This definition implies that meetings are not aimless discussions,
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 may be opening a new branch or a 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.
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 organizations, these types of meetings may be called regularly
for the main purpose of exchanging information on a topic of relevance
to the organization. Such meetings may take place between co-workers, or
may also involve top management.
Examples –
1. 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.

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2. A weekly meeting of top executives may be held to discuss the activities

of the company’s international divisions.
3. The members of the 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, since it involves taking some
kind of action, making major decisions or changing the existing
policies and procedures. Therefore, all interests and departments of the
organization are represented at such meetings. They also tend to be time
consuming.
Example – The marketing strategy of the company may need to be revised,
since sales are on the decline. Or, a new product is to be launched and a
meeting may be called to discuss the launch strategy.
Since 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 however, a basic question
to be asked is whether to hold a meeting at all. The answers to the following
questions would help 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 the meeting. First of all, the type and number of participants should
be decided. A problem solving meeting should include representatives from
all departments, since the decision would otherwise be incomplete.
Shareholders, who are the owners of the company, should also be included.

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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. In the words of Adler and Elmhorst, “A meeting without an agenda
is like a ship at sea without a destination or compass: no one aboard knows
where it is or where it is headed.” An agenda is prepared by the Chairperson
of the meeting, or the person who calls the meeting.
Apart from a list of topics, a comprehensive agenda should also
include the following –
1. The Time, Venue and Duration of the Meeting – The starting time and
length of the meeting needs to be indicated, so that participants know how
much to prepare and can plan their other activities and meetings
accordingly.
2. A List of Participants – It is important to let all members know who will
be attending the meeting, so that they know whom to expect.
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. A Clear List of Items and Goals – These should 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 should be stated so that they sound
specific, result-oriented and realistic.
Example – Pat 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

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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.
A sample format for a comprehensive agenda is shown below –

AGENDA

DATE : March 5th, 2008

TO : (Names of all meeting participants)
FROM : (Name of Chairperson)
SUBJECT : Planning for the inauguration of new Manipal Office
TIME : Monday, March 10th, from 9.30 to 11 am.
PLACE : Fourth floor Conference Room.
BACKGROUND: The inauguration of the new Manipal Universal
Learning Office, will take place on March 15th, as previously
scheduled. Completion of the following tasks will keep us on target
and ensure that the new office becomes functional.
We will discuss the following items:
1. Office Equipment Needs – (Name of person responsible for
making a presentation and initiating discussion).
2. Office Decoration – (Name of person responsible for making a
presentation and initiating discussion).
3. Advertising and Publicity – (Name of person responsible for
preparing advertisements and press releases).

Self Assessment Question

Are the following statements true or false?
1. Only problem solving meetings need to be planned in advance

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2. An agenda is prepared by the participants of the meeting.

3. An agenda provides an outline of how the meeting will run.
4. A progress meeting is the most challenging type of meeting.
5. A problem solving meeting is the most frequently held type of meeting.

8.4 During the Meeting

The task of conducting and moderating the meeting rests with the
chairperson. He or she must be well versed with the procedures for opening
the meeting, encouraging balanced participation, and solving problems
creatively, concluding the meeting and managing time efficiently. We shall
discuss each of these procedures in detail.
1. Opening the Meeting – The manner in which the meeting is opened is
important, since a good opening will ensure that the rest of the meeting will
proceed smoothly. There are different ways of opening a meeting.
Generally, it is best 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 a time budget.
Example – 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.
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, so that they do not “hijack” the
meeting. There are several techniques to encourage participation –
 Encourage Participation in the Reverse Order of Seniority – This
means getting the junior members to speak or air their opinions first. If
the senior people speak first, they may feel suppressed or be afraid to
disagree with their superiors.
 Nominal Group Technique – In this method, the meeting participants
are encouraged to work and contribute their ideas independently. It
consists of five different stages –

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i) Each participant is asked to put down his or her ideas on paper.

These are then collected by the chairperson or a 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 group 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. Since 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.
Example – Can anyone explain the reason for the sales decline?
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.
Example – What is your opinion on this issue, Pat?
Direct questions should be used tactfully, since they 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.
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Example – 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 own opinion and influence the group.
3. Managing Time – There is no prescribed length for a meeting. The
duration of a meeting will depend on the type and purpose of the meeting.
Generally, problem-solving meetings will take longer than other routine
meetings. In any case, the chairperson should set a time budget 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 of 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
 Summarizing and Moving On – When an item on the agenda has been
fully discussed but the discussion rambles on, the chairperson can
quickly summarize the ideas, acknowledge the contributions and
mention the next item to be discussed.
Example – I think we have generated a sufficient number of excellent,
creative ideas for the advertising campaign. Maybe we should 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 this case, the chairperson should be firm but
polite, 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.

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6. Summing Up – This means summing up the different points of view, the

decisions and the actions to be taken. This should be done by the
chairperson, identifying the role of each person on each item of the agenda,
along with a specified deadline.
Example – Chris 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, since it will influence the follow-up action taken on
decisions made during the meeting. The chairperson should know when and
how to conclude the meeting.
The meeting should normally be concluded at the scheduled closing time,
unless important issues still remain to be discussed and members are
willing to extend the meeting. Sometimes 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 summarize 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
remembered is to retain the goodwill of the participants, by thanking them
for their contributions. Members who have made significant contributions
should be acknowledged individually.
Example – I must thank all of you for coming up with so many wonderful
ideas for making this inauguration a success. A special thanks to Chris for
negotiating and getting a good deal on the office equipment. And to Pat for
the excellent design of the new office floor plan.
8. Keeping “Minutes” of the Meeting – Since meetings are called to take
important decisions concerning the organization, it is important to maintain a
permanent written record of the proceedings, which can be referred to at
a later stage, or 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.

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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 for minutes for formal meetings is
shown below –

Format for Minutes

MEETING DATE _____________ TIME _________ PLACE ______________

PURPOSE _________________________ CHAIR _____________________

PRESENT _____________________________________________________

ABSENT ______________________________________________________

ITEM NO. SUMMARY ACTION

BY WHEN WHO

MINUTED BY _________________ COPIED TO _______________________

NEXT MEETING DATE ___________ TIME _______ PLACE _____________

So far, we have looked at how meetings should be conducted from a

chairperson’s perspective. We will now look at how participants of a meeting
should conduct themselves. There is a meeting “etiquette”, or code of
conduct that needs to be followed by participants.
1. 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.

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2. Do not say something for the sake of it – Participation in a meeting

does not mean just saying something, whether it is relevant or not.
3. Contribute to add value – Adding value may be done by expressing a
new idea, through constructive disagreement (e.g., “why not do it this way
instead?”), by endorsing another person’s opinion (e.g., “ I agree with you”)
or by seeking clarification ( e.g., “ Can you explain that again?”).
4. Give credit where it is due – It is good meeting etiquette to appreciate
someone else’s idea, if you think it is good.
5. 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.
6. Do not interrupt – If you wish to say something, always signal this by
raising your hand politely at a suitable juncture.
7. 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.
8. 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.

Activity
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?

Self Assessment Question

6. Match the following
i) Nominal Group Technique a. Mini - meeting
ii) Convergence b. Outline of meeting
iii) Minutes c. Unbiased
iv) Meeting etiquette d. Permanent record
v) Opening the meeting e. Different viewpoints

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8.5 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 – Very few meetings is 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 a fresh agenda. 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 responsibilities and deadlines for completion
of tasks. Therefore, it is important to monitor their progress every now and
then, after the meeting is over, 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 finish
any pending work before the next meeting.

8.6 Common Mistakes made at Meetings

Since meetings are prone to so much inefficiency, 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.
1. Lack of Structure – Meetings should 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.

2. No Goals or Agenda – It was pointed out earlier that a meeting

without an agenda lacks direction.

3. No Pre-meeting Orientation – This is the job of the chairperson.

Members must be briefed on how to prepare for the meeting.

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4. Inadequate Preparation – This is a mistake made by members who

attend the meeting without preparation.
5. Not Focusing on the Subject – This is a common mistake made by
participants who discuss matters that are not relevant to the meeting.
6. Meetings that are too long – The chairperson must try to avoid this,
by ensuring adherence to the time limit.
7. Disorganized Meetings – Again, this is the chairperson’s
responsibility to see that the meeting is well organized.
8. Inconclusive Meetings – The chairperson must hear out all the points
of view and then arrive at a decision.
9. Ineffective Leadership – This is the fault of the chairperson, if or she
he fails to give direction to the meeting..
10. Time Wasted – Participants may engage in unrelated discussions and
the Chairperson may be inefficient at managing time.
11. Dominating the Discussion – A few members may speak all the
time, while others remain silent.
12. No 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.

Self Assessment Question

Fill in the Blanks
7. After the meeting, follow-up must be done by the _______ and the
___________
8. A meeting without an agenda and convergence is a meeting that lacks
________
9. A meeting where there are unrelated discussions is one which lacks
_________
10. Meetings are efficiently conducted when they are _______and
___________
11. Meetings are ineffective when ___________________ are not made.

8.7 Summary
Business executives spend a good deal of time on the job attending different
types of meetings. Meetings fall into four broad categories –

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 Task oriented meetings

 Information sharing meetings
 Progress meetings
 Problem-solving meetings
Meetings need to be planned in advance and involve a lot of groundwork.
The most important task to be accomplished before the meeting is to
prepare a comprehensive agenda, or a list of topics to be covered. Ideally,
an agenda should also include the time, duration, location, list of participants
and the specific goals of the meeting. Participants should also be briefed on
how to come prepared for the meeting.
Conducting a meeting is essentially the responsibility of the chairperson.
This includes the following steps-
 Opening the meeting by repeating the agenda and goals, giving
background information and outlining how the meeting will run.
 Encouraging participation of all the members through techniques such
as participation in reverse order of seniority, nominal group technique,
members taking turns, overhead and direct questions.
 Managing time
 Keeping the meeting focused
 Ensuring convergence
 Summing up
 Concluding the meeting by indicating the time limit, summarizing
decisions and actions and acknowledging contributions
 Keeping minutes of the meeting
Participants of a meeting need to follow a code of conduct or meeting
etiquette, which includes the following-
 Be brief and to the point
 Do not dominate
 Speak to add value
 Appreciate others’ ideas
 Keep an open mind
 Avoid interrupting
 Avoid mini-meetings

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After the meeting, a lot of groundwork is needed, such as preparation for

future meetings, monitoring the activities of members and ensuring that
deadlines are met.
Most meetings are prone to common errors such as the following-
 Lack of structure
 Lack of an agenda
 No pre-meeting orientation and preparation
 Starting late and exceeding the time limit
 Lack of focus
 Lack of organization
 No conclusion
 Individuals dominating discussions
 No proper follow up
 Poor leadership
 Too many interruptions

8.8 Terminal Questions

1. Imagine that Sikkim Manipal University is considering restructuring its
MBA program. You have been selected to chair a committee to
represent the students’ viewpoints. Decide who the committee members
will be and prepare an agenda for the first meeting of the committee.
2. List out the five most important factors, in your opinion, that contribute to
the success of a meeting.
3. Explain the purpose of keeping minutes of a meeting. What goes into
the contents of minutes of a meeting?

8.9 Answers

Answers Self Assessment Questions

1. F
2. F
3. T
4. F
5. F
6. i) c, ii) e, iii) d, iv) a, v) b

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7. Chairperson; participants/members
8. Structure
9. Focus
10. Organized/conclusive/structured/focused
11. Decisions

Answers to Terminal Questions

1. Refer 8. 3
2. Refer 8.3, 8.4, 8.6
3. Refer 8.3

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Unit 9 Internal Business Communication –

Writing Memos, Circulars and Notices

Structure:
9.1 Introduction
Objectives
9.2 What is a Memo?
9.3 Circulars and Notices
9.4 Summary
9.5 Terminal Questions
9.6 Answers

9.1 Introduction
In the previous unit, we dealt with an important form of oral communication
within the organization, namely, meetings. Written communication within the
organization is equally important, especially when things have to be kept on
permanent record, information has to be announced and instructions have
to be given to subordinates by superiors. In this unit, we will discuss some of
the written communication media, including memos, circulars and notices,
which are used to communicate with employees within an organization. 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.

Objectives
After studying this unit, you will be able to –
 Recognize the need for written communication within the organization
 Describe the functions of memos
 Explain the purpose of circulars and notices
 Prepare memos, circulars and notices.

9.2 What is a Memo?

The word “memo” is a short form for “memorandum”, which is derived from
the Latin word which means “a thing which must be remembered.” It is also
referred to as an “inter office memorandum”, since it is used primarily as

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a tool for communicating within the organization. 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 Precis Writing
As mentioned, précis writing is regularly done by many 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 –
1. Condensation – This means that the précis should be a brief, shortened
version of the original article. In general, the précis should be one fourth
the length of the original.
2. Comprehension – While it is important to reduce the article to one
fourth its size, the article should not lose its meaning in the process of
doing this. It should be as easy to understand the condensed article as it
is to understand the original article.
3. Coverage – In the process of condensing the article, all the main points
or ideas in the original article should be retained and adequately
covered, so that the shortened article comes across as complete.
Precis 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 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,
since it does not reflect the original.

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A writer needs to look for the following, in order to fulfil the three C’s
of précis writing –
 Main Theme – What is the article about? This is usually indicated in the
caption itself, e.g., “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, since 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 bold are the key words.
Once a précis has been written, it may be written in a memo format, as in
the example given below –
SAMPLE PRECIS IN MEMO FORMAT

TO : The VP Marketing
FROM : Marketing Executive
th
DATE : March 10 , 2008
SUBJECT : The Changing Face of Customer Relationship Management

As discussed during our last meeting, I have summarized a recent article on the
current status of CRM, for your review.
CRM – Mega-trend, Trend or Fad?
In 2000, CRM was the buzzword in marketing circles. It was predicted to be a
revolutionary technology that would have a lasting impact on business in the
long run.
However, as CRM software vendors’ revenue growth slowed down, the
forecasts became less optimistic. This gave rise to doubts as to whether CRM
was just a passing phenomenon.

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Changing User Patterns

In 2002, CRM seemed to gather momentum again, as companies reported
significant improvements as a direct result of using the technique. However,
CRM users no longer adopted it without questioning and without specific goals.
The company’s senior management had to be convinced about the long-term
benefits. CRM was implemented only after an in-depth cost-benefit analysis.
Shifting Vendors’ Focus
From the CRM vendors’ viewpoint, there was a shift in emphasis from the
technological aspects to the functional aspects when approaching users. This
meant that CRM developers were more concerned with identifying the specific
problems of top managers in different functional areas and with offering
customized solutions. CRM solutions were also tailor-made for different
industries. Besides, the tools were also specialized to suit specific processes.
What the Future Holds
CRM is expected to pick up further in the years to come. It will continue to
evolve, both from a user’s and a vendor’s viewpoint. While users will become
more discerning in their approach, only those vendors who can cater to a cross-
section of requirements will dominate. Ultimately, it will be the survival of the
fittest.

In the above précis, the main theme is contained in the subject line “The
Changing Face of 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”,
“customized solutions” and “survival of the fittest.”
Note that the précis is written in a one-page memo format. This brings us to
the next section on the components and format of a memo.

Activity
Select an article from any business publication and prepare a précis of
the article by reducing it to one fourth its size. Send the précis to your
professor in a one page memo format.

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Self Assessment Question

Are the following statements true or false?
1. A memo is used only for upward communication.
2. One of the three “C’s” of précis writing is “Components.”
3. Unlike a regular report, the memo is brief and informal.
9.2.2 Components and Format of a Memo
As shown in the example above, a memo is a brief, one page or maximum
two page report, and includes the following components –
1. Header – This compact block of information which appears at the top of
the memo includes the “To, From, Date and Subject” headings, which is
similar to the title page of a longer, more formal report.
The “To” heading should mention the name of the receiver or the primary
target audience. In the above example, this is the Marketing VP. The “From”
heading should include the name of the sender or writer of the memo
(Marketing Executive). The “Subject” line should include the specific
purpose of the memo (the title of the précis in the above example). This
helps the writer in the development of the message and lets the reader
know what the memo is all about.
2. Body – This is the text of the memo which contains the details and major
topics. Unlike as in letters, the memo need not have a formal salutation
(Dear …). 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 above. This is because a memo
is purely for internal use in the organization.
3. Close/Action – Unlike formal letters, memos need not include a formal
close (e.g. Sincerely…) and a signature line. However, unless the purpose
of the memo is just to inform, there should be a clear call for action. For
example, “I request you to review my proposal and to grant approval.”
4. c.c. – This is an abbreviation for “Carbon Copy”. Sometimes a copy of the
memo may go to another person(s). This is indicated by c.c., followed by the
name(s) of the person(s).

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A memo may follow one of two types of formats, depending on its nature
and purpose – a) The direct organizational plan or deductive organization
and b) The indirect organizational plan or inductive organization.
a) Direct Organizational Plan – This format is used when a memo is
purely informational, as in the example shown above. Since the purpose
is only to convey information, the purpose is mentioned right at the
outset and all the details are presented right away. It is also used
sometimes 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 will make the
request right at the beginning and then list out the reasons.
An example of a persuasive memo that is written following the direct
organizational plan or deductive organization is shown on the page –
TO : The Marketing Manager
FROM : The Sales Manager
DATE : March 10th, 2008
SUBJECT : Increase in the number of salespersons

Based on my experience and knowledge of territory X, for which I am responsible, I

feel that an increase in the sales force will yield a positive growth rate. Therefore, I
would like to recommend that we increase the number of salespersons from 10 to 15,
so as to reach more number of prospective customers.

I have done an in-depth analysis of the current market situation in territory X.

Although several new entrants and our existing competitors have done well, we
continue to enjoy a good reputation in the market. Although the current rate of growth
is disappointing, the future market potential is enormous, pointing towards a positive
growth.

Strengthening the sales force will be advantageous for the following reasons –
 Increases the reach of the company to the customers
 Increases the frequency of calls made
 Gives us an edge over the competition

In view of the above long-term benefits to the company, I request you to consider my
proposal and to grant approval.

In the above example, the sales manager is confident that his request for
strengthening the sales force will be granted, since it has obvious benefits.
Therefore, the request is made right at the outset, followed by the reasons.
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b) Indirect Organizational Plan or Inductive Organization – 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 will 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 given on the page –

TO : The VP Marketing
FROM : The Advertising Manager
DATE : March 11th, 2008
SUBJECT : Review of advertising campaign
An analysis of our latest sales reports has revealed that territory X, for
which I am responsible, is a highly profitable one. This territory has been
contributing to the bulk of our company’s sales over the last one year.
The annual advertising budget for our products being sold in territory X is
currently Rs. 50 lakhs.
Although our advertising has been satisfactory, it needs to be reviewed
for the following reasons –
 More frequent advertising is needed to improve awareness levels of
our products, which are still new to the market.
 Advertising is an investment and needs to be sustained over a long
term, in order to build our brand.
 Building a positive brand image through advertising can help build
long term brand loyalty.
 Fast moving consumer goods such as ours require a higher
percentage of sales spent on advertising, during the introductory
stage.
 We need to spend an amount on advertising that is comparable to
our closest competitor in the region.
In view of the long-term benefits of advertising, I would like to
recommend doubling our advertising budget in territory X to Rs. 1 crore a
year. I request you to consider my proposal and to grant approval.

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Note that in the above memo, the writer delays his request or proposal to
the end and justifies the need for a bigger advertising budget first, by listing
out the reasons. Since he is suggesting that the budget be doubled, he is
not sure if the request will be granted. That is why the indirect organizational
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
9.2.3 Language and Writing Style of a Memo
Since 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 to 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 should 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 an earlier unit, the importance of using
simple English was emphasized.Use short, uncomplicated words and
avoids trying to impress by using unnecessary jargon and technical
terms.
 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 him to accept your request or recommendation, you
must say so 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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Self Assessment Question

4. Match the Following
i) Passive voice a. Main message
ii) Direct organizational plan b. Reasons first
iii) Persuasive memo c. Regular reports
iv) Indirect organizational plan d. Informational memo
v) Subject Line e. Call for action

9.3 Circulars and Notices

Like memos, circulars and notices are also written forms of communication
within the organization. The difference between a circular and a notice is
that circulars are announcements that are distributed to small or
selective groups of people within the organization, whereas notices are
meant for a larger group of people.
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 organization.
Example – A list of declared holidays for a calendar year is a notice, since
the information is relevant to all employees.
A notice is therefore a legal document that has to be put up on an official
notice or bulletin board.
Let us examine another example of a circular and a 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 organizing the Fest. You may not want
all the students to be involved initially, since it may take a lot of time 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 and so on. For this purpose, you may send a

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circular only to the student committee members, requesting them to attend

the meeting.
During the meeting, the date and venue may be finalized and various
smaller committees may be formed, such as a reception committee, stage
committee and so on. 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.
A sample circular and notice are given below –
TO : All Departmental Heads

CIRCULAR

Safety Aspects in Science Laboratories

The purpose of this circular is to emphasize the importance of safety in
research laboratories. All laboratory supervisors are responsible for the
safety of research scientists in their charge. It is their duty to draw their
attention to any safety hazard that pertains to a particular activity. In this
context, supervisors should be familiar with relevant guidelines on
laboratory safety and they should be careful at all times to observe
standard safety procedures, when practical activities are being
conducted in the laboratory.
Please bring this circular to the notice of the supervisors concerned and
to the notice of the representatives as appropriate, for transmission to
individual research scientists.
General Manager – HR
March 11th, 2008

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.

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MANIPAL UNIVERSAL LEARNING March 11th, 2008

Manipal Towers, Bangalore REF: ADM/N/44-99

NOTICE
Sub: Manipal Family Day Celebrations

This is to inform all employees of MUL that a Manipal Family Day

celebration will be held at Manipal County on Friday March 14th,
between 10 am and 7 pm. A pick-up and drop back facility is being
organized for all employees and their family members. In view of the
celebrations, this will be a holiday. Instead, Saturday, March 15th will be
a working day to compensate for this holiday. All are encouraged to
attend and make the event a success.
SENIOR MANAGER, HR

The above notice is meant for all employees of the organization. It has a
reference number, date and a subject, similar to a memo. The notice covers
two different issues related to one subject. Employees are first informed that
a holiday has been declared to celebrate Manipal Family Day. Then the
same notice mentions a different working day to compensate for this
holiday.
Sometimes, under special circumstances, notices may also be sent to
individual employees. 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 (e.g., 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 should also be brief and to the point. The tone should

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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 Question

Fill in the Blanks

5. A _________________________ is a type of legal document.
6. A common purpose of notices and circulars is to __________________,
rather than ____________________________.
7. A ____________ _______________ notice is an example of a notice
sent to individual employees.

9.4 Summary
This unit deals with the different written media used in internal business
communication, namely, memos, circulars and notices. A memo, which is a
short form for “memorandum”, is also referred to as an “inter office memo”,
since its purpose is to communicate to peers, superiors and subordinates
within the organization. A memo is a condensed form of a report and can be
used to pass on information, give instructions and make decisions. Writing
a memo is similar to précis writing, or condensing an article to one fourth its
length.
The principles of précis writing also apply to memo writing. These principles
are referred to as the three “C’s”, namely -
 Condensation or reduction of the original article.
 Comprehension or retention of the essence of the original article
 Coverage or inclusion of all the main ideas.
A précis may be written in a memo format. Business executives often
summarize business articles and send them in memo format to their
superiors, to help them to keep up with their business reading.
A memo should be a maximum of two pages in length and include the
following standard components –
 Header with “To, From, Date and Subject” lines
 Body with main points
 A call for action, in the case of a persuasive memo.

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Memos are generally of two types – informational memos and persuasive

memos. A memo may be written in one of two formats – 1) Direct
organizational plan or deductive organization and 2) Indirect organizational
plan or inductive organization.
A memo whose main purpose is to inform, is written following the direct
organizational plan. Sometimes, a persuasive memo is also written in this
format, when the writer is confident that his request will be granted. On the
other hand, a persuasive memo where the writer feels that his request may
not be accepted easily, should be written following the indirect
organizational plan. In this case, the reasons or justification for the request
are stated first, followed by the actual request.
Circulars are sent to small or selective groups within the organization. They
are written in the same way as memos and must be brief and to the point.
Notices are displayed on official notice boards and are meant for larger
groups, usually all employees of the organization. Occasionally, notices may
be sent to individual employees in the form of “Show Cause Notices”, asking
for an explanation for misconduct and mentioning the action that could be
taken.

9.5 Terminal Questions

1. What are the essential differences between memos, circulars and
notices, in terms of purpose, audience, format and writing style?
2. As a management trainee, you have conducted an employee
satisfaction survey. Write a persuasive memo to your boss, requesting
him/her to accept your suggestions based on the findings of the survey.
3. Prepare a brief notice to be put up on official notice boards, informing
employees of your organization about a newly introduced, official bus
service.

9.6 Answers
Answers to Self Assessment Questions
1. F
2. F
3. T

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4. i) c, ii) d, iii) e, iv) b, v) a

5. Notice
6. Inform; persuade
7. Show cause

Answers to Terminal Questions

1. Refer 9.2., 9.3
2. Refer 9.2.2
3. Refer 9.3

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Unit 10 Internal Business Communication –

Electronic Media and Shareholder Communication
Structure:
10.1 Introduction
Objectives
10.2 What is an Intranet?
10.3 Communicating through Email
10.4 Communication with Shareholders
10.5 Summary
10.6 Terminal Questions
10.7 Answers

10.1 Introduction
In the previous unit, we discussed communication with employees through
written channels, including memos, circulars and notices. Today, the advent
of computers and the internet has enabled much quicker communication
with employees and speedier decision making. Even small companies have
access to email and the “intranet”, which have made memos, circulars and
notices almost outdated. In this unit, these two electronic media for internal
business communication will be discussed, including their advantages and
disadvantages and the principles of communication.
Apart from employees, shareholders are also important internal
stakeholders, as mentioned in one of the earlier units. Part of this unit will
focus on the reasons for communication with shareholders and the media
used to communicate with them

Objectives
After studying this unit, you will be able to –
 Explain the meaning and purpose of an “intranet”
 List out the advantages and problems in using an “intranet”
 Use email more effectively
 Describe the principles of electronic communication
 Recognize why shareholders are important stakeholders

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10.2 What is an Intranet?

An intranet is similar to a website, except that it is an internal network that
is exclusive to a particular organization. This means that only employees
of the organization will have access to 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 organizations 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 organizations, the intranet is particularly suited for “virtual”
companies that have only an online presence, as well as companies with
frequently traveling employees and off-site workers, since 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 was discussed in one of the earlier units. Although grapevine
can be useful, it also leads to rumors, in the absence of information
passed on through the formal communication network. When employees
are misinformed, they become dissatisfied and de-motivated. Using the
intranet as an official channel to post information for all employees to
see discourages gossip and avoids creating a transparency gap.
 Facilitates pre-meeting discussion – The intranet may be used to
discuss and debate ideas prior to a meeting, so that valuable meeting
time is spent focusing only on relevant ideas.
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

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the current year. Instead of each salesperson making a lengthy presentation

during a meeting and then getting his 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 HR related
information, without having to interact with the HR manager.
 Is superior to email – Sending some types of information through email
can sometimes create confusion and information overload. Let us take
the above example of the sales team making a presentation on how to
increase sales. If five salespersons each have three different ways in
which they could increase sales and start emailing multiple versions of
their Power Point presentations for the VP to review, it could lead to
disastrous results. Instead, they could work on a shared file, by using
the intranet. A central location could be created for the most recent file.
While the intranet saves valuable time and money, it is not without its down
side. Before an intranet can be 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 disadvantages are –
 Getting started – Building an 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 it has been set up,
someone has to be responsible for maintaining and updating the
information on a continuous basis. In small organizations, it may be
sufficient to appoint one person to do this. In larger organizations with
multiple departments, it may be necessary to appoint several persons to
maintain and update information for the different departments.

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This becomes a complex and expensive task.

 Training employees – Once it has been set up, employees have to be
familiarized 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 case study given below will illustrate how an intranet should be
designed and used as an effective communication tool –

THE RAND LIBRARY INTRANET

The Rand Library is part of a non-profit research institution based in
Santa Monica, California, USA, that is involved in helping 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 email alert service and several email 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 email alert service includes email distribution lists for topics such as
Health Care, Science and Technology. Once someone has signed up
for the email alert service for one of these topics, they receive regular
email pertaining to these topics.
Multiple email links are used to make the communication two way. This
means that the clients can come to the intranet site and make requests
for books, research articles and so on. 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.

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Self Assessment Question

Are the following statements true or false?

1. The intranet is part of an informal communication network.
2. The intranet can be customized to meet the needs of smaller companies.
3. The intranet encourages grapevine.
4. The intranet can make meetings more focused.
5. The intranet involves high investment in maintenance and training.

10.3 Communicating through e-mail

Although e-mail is a tool for external communication, it is also regularly used
within an organization, in place of telephone and face-to-face contact. 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
attention has to be paid to the language, style and tone. Since e-mail is
quick, easy to use and spontaneous, it can also help to improve personal
relationships in the workplace.

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, since e-mail is more informal in nature.
We shall discuss these in some 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 PC and server and 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.

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It is particularly important to watch the content of official e-mail messages

sent using an employer’s equipment. Since 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 have to be brief,
using short words, sentences and lack of 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 humor and sarcasm which might be misunderstood,
or sending messages when you are angry or annoyed.
* Include a specific subject line – Your e-mail message should always
include a subject line that clearly mentions the topic of the e-mail. Since
business executives receive several e-mails a day, this would help them to
decide which messages are most important to them. They will also have an
idea of what the message contains.
* Place important information first – Since 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.
* Explain attachments in the body of the e-mail – Attachments take time
to download and should be sent along with an explanation in the body of the
e-mail, as to what they are all about. This will make it easier for the recipient
of the message to decide whether they should be opened or not. Otherwise
it will lead to unnecessary waste of time.
* Use the “to” and “cc” button carefully – The “to” box should 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

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issue. This should be used with care, making sure that the message is sent
only to the right persons. It is important to respect privacy, since 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 should be
emphasized. This involves use of the second person pronoun, “you”, rather
than the first person pronouns “I” or “me”. Stressing on the “you” attitude
rather than the “me” attitude was discussed in an earlier unit.

* 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 to later should be
put into separate topic folders. Every now and then, any outdated messages
in the topic folders should also be deleted.

* Proofread your e-mail message – Just as it is important to proofread

business reports, letters and memos, e-mail messages should also be
checked for spelling and grammar mistakes, so as to avoid any
embarrassment.

* Set aside time to check e-mail – E-mail should not become a substitute
for face-to-face interaction at the workplace, or cut into valuable time spent
on other important jobs. It is a good idea to determine a time during the work
day when you check and respond to e-mail messages.

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10.3.2 E-mail Etiquette

Similar to meeting etiquette which we discussed in an earlier unit, there is
an etiquette for writing e-mail messages, which should be strictly followed –
1. 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.
2. Avoid “shouting” – Shouting in an e-mail message refers to use of all
capital letters in the text. All caps make it difficult to read a message
and are therefore considered to be rude, like shouting.
3. Avoid symbols and acronyms – Symbolic messages using
punctuation marks, known as “emoticons” ( for example, : ) for a
smiley face!) should be avoided, especially in business related e-mail
messages. Similarly, abbreviations such as BTW ( by the way) should
be avoided since they sound over casual and may not be understood by
everyone.
4. 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.
5. 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.
6. Avoid personal messages at work – Do not make use of the office
facility to send personal e-mail messages. Since confidentiality of the
message is not guaranteed, it may lead to embarrassment later.
7. 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.

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E-mail should be used constructively and judiciously, to meet your goals at

the workplace and to enhance your performance on the job.
Here are a few career tips that can help you to take advantage of e-mail –

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
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.

Self Assessment Question

6. Match the following

i) “WIFM” principle a. Acronym
ii) “P’s and Q”’s b. Reader benefits
iii) Shouting c. Bullet points and white space
iv) Readability d. All capital letters
v) FYI e. Etiquette

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10.4 Communication with Shareholders

Shareholders are important internal stakeholders of an organization, since
they are the owners of the company. Since the capital required is huge,
there are no proprietors and partners any more. As organizations 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 when shareholder communication is extremely vital –
1. If a 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 minimize borrowing from
banks and financial institutions.
2. If a 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 should 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 rumors.
For example, rumors 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 should 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 should be held, making presentations on the company’s
progress. When the company is going through a crisis, shareholders should
be taken on project site and factory visits, to show them the measures that
are being taken to solve the problem.
The overall guiding factor in communicating with shareholders should be
that they are the owners of the company.

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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.

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Self Assessment Question

Fill in the blanks

7. _________________ and _________________ channels are used to
communicate with shareholders.
8. Project site and factory visits are part of _____________ communication
with shareholders.
9. Effective communication with shareholders means being ____________
with them.

10.5 Summary
This unit dealt with two more aspects of internal business communication –
communication through electronic media and shareholder communication.
The electronic media include the “intranet” and e-mail, which is part of the
intranet. The intranet is a website exclusive to the company, which permits
employees within an organization to exchange information in digital form. It
is ideally suited for large organizations, organizations that have a purely
online presence, traveling employees and off-site workers. All types of
information, including reports, company goals, policies and HR related
announcements may be posted on the intranet.
The primary advantages of the intranet are –
 Facilitates discussion of preliminary ideas, prior to meetings
 Enables constant flow of information through an official network and
discourages rumors
 Saves time and paper
 Is better than email, when multiple versions of a document have to be
sent
Some of the disadvantages of the intranet are –
 Is expensive to get started
 Needs to be maintained and continuously updated
 Requires investing in employee training and convincing old economy
employees to use it

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When communicating through e-mail, the following guidelines should be

kept in mind -
 Avoid saying anything negative or confidential
 Make the tone friendly
 Include a specific subject line
 State important information first
 Describe the attachments
 Pay attention to use of “to”and “cc”
 Make the email brief and easy to read
 Stress reader benefits
 Keep your mailbox tidy
 Allot time for checking and answering email
Email etiquette involves the following –
 Remember to be polite
 Avoid “shouting”
 Avoid use of symbols and acronyms
 Include friendly salutations and sign-offs
 Respond promptly
 Respect privacy
Shareholder communication is important, since they are the virtual owners
of the company. It is important to communicate openly with them, both in
good times and bad. Good relations with shareholders can help to raise
capital for new projects and to retain their confidence, even when the
company is going through a crisis. The media used to communicate with
shareholders include mailers, meetings, conferences and site/factory visits.

10.6 Terminal Questions

1. Talk to a business executive in a company and sector of your choice, to
find out how the intranet is being used to communicate internally. What
type of information is exchanged through the intranet?
2. As a salesperson, write an e-mail message to your Sales Manager,
requesting that a meeting be scheduled to present your ideas on how to
improve sales for the coming year.

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3. Go through business magazines and daily newspapers and select a

situation when a company was facing a crisis (e.g., Coke and Pepsi
pesticide controversy). How did the company communicate with its
shareholders and other stakeholders to overcome the crisis? Was the
communication effective?

10.7 Answers

Answers to Self Assessment Questions

1. F
2. T
3. F
4. T
5. T
6. i) b, ii) e, iii)d, iv) c, v) a
7. Oral; written
8. crisis
9. open/truthful

Answers to Terminal Questions

1. Refer 10.2, 10.2.1
2. Refer 10.3,10.3.1, 10.3.2
3. Refer 10.4

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Unit 11 External Business Communication –

Writing Business Letters
Structure:
11.1 Introduction
Objectives
11.2 Principles of Business Letter Writing
11.3 Types of Business Letters
11.4 Format for Business Letters
11.5 Summary
11.6 Terminal Questions
11.7 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.
Some general guidelines for writing business letters, the appropriate formats
and the different types of business letters, will be explained in detail.
Objectives
After studying this unit, you will be able to –
 Differentiate between business letters and personal letters
 Categorize business letters into different types
 Use the proper format and tone, when writing business letters
 Develop good business writing skills

11.2 Principles of Business Letter Writing

Business letters are used primarily to communicate with external
stakeholders such as consumers, intermediaries, government and bankers.

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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-
* Consideration and Courtesy – It is very important to retain the goodwill
of customers and other external publics. 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 apologize 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. 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 an earlier unit. 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 of 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 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,
avoiding the use of jargon or 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 by saying “I received your letter.”
The letter should include a single main idea and paragraphs should be used
to elaborate on sub ideas.

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* 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.
A business letter should include the following standard components –
1. Date in the upper right hand corner
2. The “To” address above the salutation in the upper left hand corner.
3. The Salutation – When addressing a firm, “Messr” 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 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 Investor.”
4. Sometimes, an “Attention Line” may be included below the salutation,
in order to ensure prompt action. For example, “Attention : John Smith,
HR Manager”.
5. A “Subject Line” indicates the purpose of the letter and is placed
between the salutation and the first line of the letter.
6. The “Body” of the letter includes an explanation of the main idea(s).
7. The “Close” is the ending of the letter and should be polite and friendly,
so as to retain goodwill. A standard close for a business letter is “ Yours
faithfully or sincerely.”
8. 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, below the signature line, as “Encl : 2”, meaning two
enclosures.

Self Assessment Question

Are the following statements true or false?
1. The language of business letters is similar to the language of
advertising.
2. Every business letter should have a salutation, a body and a close.
3. The tone of a business letter is more important than the format.

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11.3 Types of Business Letters

Business letters may be used to communicate 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 may be
categorized into three broad types –
1. Routine messages
2. Bad news messages
3. Persuasive messages
We shall 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 –
1. Routine Requests and Replies – A routine request is a letter from a
customer, asking for information on the company’s products, or for
product catalogs 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 organizations will 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.
A sample routine reply letter in response to a customer request, is
shown below –
March 27th, 2008
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.

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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 specific answers to
each of your questions –
1. 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.
2. The HP 340 is battery operated and comes with a back-up battery,
so that it may be used while traveling. It has a back-up of 5 – 6
hours, depending on the uses of the printer.
3. The HP 340 has a 15-inch cartridge and is compact and easy to
carry while traveling.
4. 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
The above letter 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.
2. 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

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service. It is more than just a letter of complaint and may be written by an

individual or an organization.
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 organization will normally comply with the request for remedial
action. For example, if you order a product from a catalog 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.
A sample routine claim letter regarding a defective product, is shown
below –
March 28th, 2008
The Customer Service Representative
Color View Graphics
14, Airport Rd.,
Bangalore – 560 001
Dear Customer Service Representative,
Subject : Inferior quality of color slides
The poor quality of the color 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 colors overlap and the type is not
clear. The slides do not meet the high quality standards promised in your
recent color advertisement in Business Today.

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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 22nd, 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.
Sincerely,
Walter Thompson, Marketing Manager
Enclosure : 1
In the above letter, the buyer can reasonably expect the seller of the
defective product to make an adjustment by canceling the charges, since
the quality of the slides is clearly inferior to what was promised.
3. 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.
4. Other Routine Letters – Routine letters may also be addressed to
external audiences 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 will be sent to the supplier, placing the order for
the required material.
“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.

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Letters requesting purchase of goods on a credit basis, letters granting

credit and collection letters addressed to customers, are some other
common types of routine letters.
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 organization,
such as losses and lay offs. When conveying bad news, the letter should be
written tactfully and worded in a positive manner.
A sample bad news letter refusing a customer claim is shown below –

March 28th, 2008

Mr. John Smith, 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

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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
Enclosure 1

In the above letter, the bad news, namely, the refusal to grant a refund to
the passenger for not boarding the flight is conveyed indirectly. 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
a customer, persuading him 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 consumer
through different mental stages in a particular sequence – first getting
his attention, creating interest by highlighting unique features of the product,
inducing desire by convincing him that the product is better than others and
then motivating him to try the product. Sales letters are used to sell
industrial products such as machinery, consumer durable products and
other high-value items.
A sample sales letter written in the above format is given below –

SAMPLE SALES LETTER FOR A HOME SECURITY SYSTEM

March 27th, 2008
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?

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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 glass
breaking, will trigger the alarm. The alarm is also loud enough to alert the
neighborhood 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 ten 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 above letter, 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

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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 Question

4. Match the following –
i) Adjustment a) Rejecting a business proposal
ii) Order letter b) Persuasive message
iii) Bad news letter c) Routine letters
iv) AIDA format d) Supplier
v) Credit and collection letters e) Replacement of defective product

11.4 Format for Business Letters

Unlike general letters, business letters should be written following a specific
plan or format. Two alternative types of formats may be used, depending on
the type of message that is conveyed – 1) The Direct Organizational Plan,
or the Deductive Pattern and 2) The Indirect Organizational Plan or the
Inductive Pattern. We will discuss each of these in detail, with an example
of each.
11.4.1 Direct Organizational Plan
This 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

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 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 below are written using the
direct organizational 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 to 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 check 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 above letter, 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.
Given below is a routine adjustment letter, granting a request for exchange
of defective shirts, also written in the direct organizational format.

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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
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 catalog in a few days
and look forward to your future orders.
Sincerely,
Customer Service Representative

In the above letter, the main idea – granting the customer’s claim for
exchange of shirts that have changed color, 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 Organizational Plan
This 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 minimize the disappointment of the reader. Since the bad
news should be de-emphasized, 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.

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3. State the bad news, or the main idea, in positive or neutral language.
Avoid apologizing 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 is shown below –

Mr. John Stanley

ABC Distributors
# 11, Queen’s Rd.,
Bangalore – 560 046 March 31st, 2008
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, 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
Enclosures

Note that the above letter begins with a “buffer” statement in the opening
paragraph, giving credit to the distributor for having contributed to the

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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 compensate
for this bad news, the distributorship of a new range of products is offered,
along with some product samples.
The indirect organizational 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.
A sample sales letter was shown earlier in this unit for a home burglar alarm
system. This was written in the AIDA format that was explained in detail.
The AIDA format is essentially an indirect organizational plan. It tries to
capture the reader’s attention first, then creates interest in and desire for the
product, before asking for purchase of the product.

Activity
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.

Self Assessment Question

Fill in the Blanks
5. A letter expressing a goodwill message should follow the ___________
organizational plan.
6. Granting a request for a refund at the beginning of a letter means
presenting the ______________ ________________ first.
7. A ________________ is an opening statement in a bad news letter.

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8. In a persuasive letter, the indirect plan is called the _____________

____________.
9. In an indirect plan, they ________________ are presented first.

11.5 Summary
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 –
 Courtesy and Consideration
 Directness and Conciseness
 Clarity and Precision
 Appearance and Format
The components of a business letter include –
1. Date
2. “To” address
3. Salutation
4. Attention line
5. Subject line
6. Body
7. Close
8. Enclosures
The messages conveyed through business letters may be divided into three
broad categories – 1) Routine messages 2) Bad news messages and
3) 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 –
 Routine requests for product information and routine replies
 Routine claim and adjustment letters
 Goodwill letters
 Letters inviting quotations from suppliers
 Letters placing orders with suppliers
 Credit and collection letters

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Business letters are written in either of two formats – 1) The Direct

Organizational Plan and 2) The Indirect Organizational Plan.
The direct organizational plan consists in presenting the main idea first,
followed by explanations and reasons and then a friendly closing. All routine
letters follow this type of format. The advantage of this format is that it gets
reader attention, encourages him/her to read the rest of the letter, saves
time and has a logical flow. The indirect organizational plan is used for
conveying bad news messages and persuasive messages such as sales
letters. It consists in presenting the reasons and explanations first, then the
main idea, followed by a friendly closing. The logic behind using this format
in a bad news letter is to minimize 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
organizational plan. In this case, a format known as 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 Terminal Questions

1. 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.
2. Reply to a request from a trading company, asking for distributorship
and information on your company’s range of beauty/cosmetic products.
3. 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.

11.7 Answers

Answers to Self Assessment Questions

1. F
2. T
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3. F
4. i) e, ii) d. iii) a , iv) b, v) c
5. Direct
6. Main idea
7. Buffer
8. AIDA format
9. Reasons / explanations

Answers to Terminal Questions

1. Refer 11.3.2, 11.4.2
2. Refer 11.3.1, 11.4.1
3. Refer 11.3.3, 11.4.2

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Unit 12 Other Forms of External

Business Communication
Structure
12.1 Introduction
Objectives
12.2 Communication with Media through News Releases
12.3 Communication about the Organization through Advertising
12.4 Summary
12.5 Terminal Questions
12.6 Answers

12.1 Introduction
In the last unit, we dealt with an important form of communication with
external stakeholders, namely, business letters. Among the external
stakeholders, consumers and the media are particularly important. In one of
the introductory units, the importance of retaining consumer goodwill,
building preference for the company’s product and projecting a positive
image of the company was emphasized. In this unit, we will discuss two
channels through which organizations communicate with the media and
consumers, in order to achieve these objectives – 1) News releases, which
are a form of publicity and 2)Mass media advertising. While a news release
can be used to highlight something unique about the organization to the
media and to the public at large, advertising can build a favorable image
about the company and its products.
Objectives
After studying this unit, you will be able to:
 Recognize the importance of effective communication with consumers,
the media and society at large
 Define the purpose of news releases and advertisements
 Prepare news releases and advertisements
 Explain the importance of projecting a positive company image

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12.2 Communication with Media through News Releases

A press release is a news story that is carried free by a newspaper,
highlighting the achievements of an organization on a specific front.
Today, it is better known as a “news release”, since 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 favorable image of the
organization among its various publics, both internal and external.
A news release tends to be more credible than advertising, which is a paid
form of communication. While advertisements may be misleading and
deceptive sometimes, news releases or publicity have great impact on
public opinion, since they are accepted by the particular medium which
carries them. 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 will carry the story for the
benefit of the public at large. Examples of 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 and so on.
Since 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 should be made appealing to television producers and to
magazine and newspaper editors.
A press release should include the following components –
1. A dramatic opening sentence or paragraph – The first sentence or
paragraph should highlight the new development as something unique, as a
first time achievement, or as a Unique Selling Proposition (USP). A USP
is an unique feature specific to a particular company, which the
competition does not have and which sets you apart.
For example, the opening sentence or paragraph could start by saying “For
the first time in history ….”, talk about an innovative new technology

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introduced by the company, the company’s development in a backward

area, or the fact that a new entity has been created ( e.g., Tata Corus).
2. Answers to key questions – The press or news release should provide
key information that answers questions such as “where?” ( i.e., location),
“when?” (timing), “why?” (reason or justification) and “how?” (strategy). This
information should be provided right at the beginning.
Example – If a new factory is being opened, where is it located?
If a new product is being launched, when is it being launched and why is
the timing ideal?
If the company is planning a new project, how will they raise money to fund
the project?
3. Benefits to the community – The press release should also explain
whether the new development will have a positive or an adverse impact on
certain sections of the community.
Examples – If the company is participating in social development and
building hospitals for the elderly, senior citizens are likely to benefit the most
from this activity.
On the other hand, when Tata acquired land in Singur for their Rs.one lakh
car, it had benefits for consumers, but an adverse impact on the farming
community, leading to farmers’ protests against the acquisition of land.
4. Company credentials – The press release should emphasize 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 should be highlighted, as evidence
of the company’s ability in that area.
Apart from writing the release in the above format, some specific guidelines
for writing a press release should be followed-
 If the matter should be released immediately, write “For immediate
release” on top of the press release.
 When writing captions, the first letters of all the words in the caption
should be all capital letters. The caption should be attention getting and
framed in one sentence.

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 The first paragraph of the press release should state the name of the
city, state, month, day and year.
 The body of the press release should elaborate on the information
contained in the introductory paragraph, answering the questions
“where”, “when”, “why” and “how.” The body should include more than
one paragraph and the concluding paragraph should summarize the key
points of the release.
 The release should also be made visually appealing, with proper use of
spacing between paragraphs, appropriate font size, type face, etc. The
text should be formatted attractively and the length should not exceed
two double-spaced pages, or approximately 400 words. It should also be
proof read for typos, spelling and punctuation mistakes.

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12.2.2 Sample Press Release

 IMMEDIATE
FOR spelling andRELEASE
punctuation mistakes.

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 specializes 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.
“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 specializes in 1) Greeting cards for all occasions and festivals;
2) Music audio cassettes and CD’s 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 jewelry 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.
####

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The press release shown above includes the following important

components –
 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 article.

Activity
Identify any new development in an organization of your choice
and prepare a news/press release on the same, following the
guidelines discussed in this unit.

Self Assessment Question

Are the following statements true or false?
1. A press release is a paid form of communication.
2. Maintaining good media relations is important for getting a press or
news release accepted.
3. The purpose of a press release is to sell a company’s products.

12.3 Communication about the Organization through

Advertising
Advertisements in the mass media such as magazines, newspapers and
television are used by organizations to communicate with prospective
customers, both about the organization, as well as its products. Advertising
may therefore be categorized into two broad types – corporate advertising
and product advertising.
Corporate advertising may be defined as advertising that sells the
organization to its various publics. In this case, the organization is the
product. Corporate advertising is more a public relations activity than a form
of advertising, since it has no commercial purpose. Its aim is merely to
inform and to build a positive image of the organization.

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Product advertising on the other hand, aims to persuade prospective

customers to buy the organization’s products or services. Its ultimate
purpose is to sell the organization’s products.
We will discuss each of these two types of advertising briefly.
12.3.1 Corporate Advertising
While the overall objective of corporate advertising is to project a positive
image of the organization as a whole, some of the specific objectives
include the following –
* To create positive attitudes towards the organization – Sometimes,
consumers may have negative perceptions towards an organization, based
on the belief that the organization is not a responsible corporate citizen. For
example, they may believe that that the organization 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 organization, by correcting these beliefs.
Example – There was a negative perception among consumers that Nike
was using child labor in some of its factories, to manufacture sports shoes.
Corporate advertising helped to overcome these perceptions.
* To project the personality, culture and values of an organization –
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, as India’s leading industrial groups. Even countries may
use this form of advertising to achieve similar objectives.
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. We discussed crisis
communication earlier, in the context of shareholder communication, citing
the example of Coke and Pepsi, during the pesticide controversy.
Example – During the pesticide controversy, Coke released ads featuring
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.

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* To make an organization better understood – Sometimes organizations

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.
Examples – The United Breweries 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 organization as socially responsible – This refers to
corporate advertising for a social cause, that highlights the company’s role
in social development. The objective is to communicate the company’s
corporate social responsibility.
Example – The UB Group ran an advertisement with the message “Drinking
and driving don’t mix.”
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. Some of the most
important ones include –
1. Corporate Identity Advertising – This type of corporate advertising is
done purely to communicate the organization’s corporate identity, such
as its name, logo (e.g. the Nike “swoosh”), trademark or brand name and
slogan. When the organization’s identity changes, this is communicated
through corporate advertising.
Example – The American fast food outlet, “Kentucky Fried Chicken”,
changed its name to “KFC”, to remove the association with fried, greasy
chicken. This name change was communicated through corporate identity
advertising.
2. Institutional Advertising – This type of corporate advertising is aimed at
special publics such as the media, suppliers and dealers, to correct
communication problems with them.

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3. Public Relations Advertising – This is the name given to corporate

advertising that aims to change the negative attitudes of the public
towards the company’s products.
Examples - The advertising done by Coke and Pepsi following the Cola
controversy and that done by Cadbury’s, which was found to have worms in
its chocolates, are examples of this type of corporate advertising.
4. Issue or “Advocacy” Advertising – This type of corporate advertising
projects a company’s viewpoint or stand on a controversial issue, such
as environmental pollution.
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 company’s range of
products. The idea is to generate sales for the weak or new product.
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,
since 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.
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.

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12.3.3 Guidelines for Effective Corporate Advertising

As compared to product advertising, corporate advertising still accounts only
for a small fraction of the total advertising budget in most organizations.
However, the benefits derived for 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. When
consumers and investors have a positive image of the company, their
confidence in the company increases. Consumers are more likely to try
products from a company that they regard highly, rather than from a
faceless or nameless company. Investors are more likely to buy shares from
a company of which they have a favorable image.
Given the benefits of corporate advertising, it must be prepared carefully
and made as attractive as possible. Some points to be kept in mind when
developing a corporate advertising campaign are –
* Adequate budget – Corporate advertising is expensive, since 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 advantages mentioned
above. 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, clearly highlighting the company’s objectives,
vision and nature of business. Product advertising on the other hand,
may sometimes have a softer focus, through the use of “emotional”
appeals.
* Creative and memorable ads – 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 ads

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must be evaluated for their effectiveness from time to time, so that the
message can be fine tuned if needed.

Self Assessment Question

4. Match the following –
i) Corporate advertising objective a. Display logo and message
ii) Event sponsorship b. Change of attitude
iii) Corporate social responsibility c. Company viewpoint
iv) Advocacy advertising d. Protect corporate reputation
v) Crisis communication e. Public Service Advertising
12.3.4 Product Advertising
Product advertising, as defined earlier, has a purely commercial purpose
and is a means through which an organization communicates with its
consumers, to persuade them to buy its 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, color 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 the elite.
Like corporate advertising, effective product advertising can also build
positive and lasting images over the long run.
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 creates a
very masculine and rugged image for the cigarette brand. Such was the
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.

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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 “Heinekin”, 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 is 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?”
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 should
achieve the following, in a particular sequence –
* Capture Attention – Since the average consumer is bombarded with
several ads at the same time, he or she will only pay attention to those ads
which stand out above the others. Therefore, attention-getting devices
should be used to make the consumer notice the add Asking a question to
arouse curiosity, having a bold headline, making a dramatic statement, or
mentioning startling facts, are some examples of attention-getting devices.
Example – An advertisement for a home burglar alarm mentions some
alarming statistics in the form of a dramatic question, right at the beginning –
“Are you aware that over 5% of Indian homes were burgled last year? How
can we protect ourselves?”
* Create Interest – Once the reader or viewer has noticed the ad, 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 your product alone
has and which offers a specific benefit to the consumer.
For example, the USP of “Clinic” Dandruff Control Shampoo is that it
contains an ingredient that moisturizes the scalp and prevents dandruff. Or,

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a car may include a safety device that other cars do not have. A USP
creates interest by linking the product features to the consumer benefits.
* Induce Desire – After creating basic interest in the product, a persuasive
ad should try to convince the consumer that the product is just right for
him/her. 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.
Example – Taking the above example of the home burglar alarm, the ad
might try to convince the consumer as follows –
“Are you worried that a smart burglar might disconnect the electricity? No
problem, because our alarm has built-in batteries that ensure that it
operates in spite of power failures.”
*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.
Example – “ Buy now, while stocks last” or “ Buy now, before special offer
ends.”
The ad should 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.
Examples – “Come test drive the Nano, to experience the sheer thrill of
driving the car, at any of our dealer outlets.”
Or, an ad for a famous brand of paint which says “Whenever you see color,
think of us.”
The format described above is also known as the “Hierarchy of Effects”,
model, since 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 liking it enough to try or buy it.

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Self Assessment Question

5. Product advertising can communicate effectively without words, through
choice of an appropriate ___________________.
6. Interest in a product can be built by developing a ______________
_______________________ _______________________.
7. Another name for the AIDA format is the ____________________.

12.4 Summary
External business communication also involves communication with
consumers, the media and the public at large, through advertising and news
releases.
A press release or a news release is a story that highlights new
developments in an organization and is carried free by the medium in which
it appears. It is a form of publicity, which is a part of public relations. Since
the medium accepts to carry it, it has a powerful impact on public opinion
and is highly credible.
Press or news releases must be made interesting, newsworthy, accurate
and complete. They should also be written in a specific format, which
includes the following components –
 An attention-getting opener, that highlights the development as
something unique
 Answers to key questions, such as “where, when, why and how.”
 The impact of the development on the community
 Company credentials
They should also be visually appealing and error free.
Unlike press or news releases, advertising is a paid form of communication
and is used to communicate both about the organization and its products to
consumers. There are two broad categories of advertising – corporate
advertising and product advertising. While corporate advertising sells the
organization to consumers and other publics, product advertising sells the
products and has a purely commercial purpose.

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The broad purpose of corporate advertising is to project a favorable image

of the organization and to maintain goodwill with various publics. Some of
the specific objectives are –
 To change negative attitudes towards the organization
 To project the culture, personality and values of the organization
 To safeguard the corporate reputation in times of crisis
 To make the organization more visible and better understood
 To project the organization as socially responsible
There are different types of corporate advertising, depending on the
objective to be achieved. Some of the main types are –
1. Corporate identity advertising
2. Institutional advertising
3. Public relations advertising
4. Issue or “advocacy” advertising
5. Public service advertising
6. Corporate umbrella advertising
7. Corporate sponsorship
Corporate advertising should be sustained over a long term, have specific,
measurable objectives and evaluated for effectiveness, from time to time.
Product advertising has the objective of persuading the consumer to buy, or
to try out a company’s product. In product advertising, the choice of an
appropriate medium is important, since the medium by itself can
communicate a message, without the use of words. Product advertising can
also be made highly effective and persuasive, through powerful visuals and
minimum words.
Product advertising generally follows a specific format, known as the “AIDA”
format, or the “hierarchy of effects” model. This includes the following
components –
 Capturing attention through an attention-getting device
 Creating interest through a “unique selling proposition”
 Inducing desire by convincing the consumer that the product is right for
him/her
 Motivating action through a “hard-sell” or a “soft-sell” close.

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12.5 Terminal Questions

1. What is the difference between Public Relations and Advertising? What
are its relative advantages and disadvantages?
2. Select a recent corporate advertisement from a newspaper or a
magazine. What is the specific purpose of the advertisement? What type
of corporate advertising is it?
3. Select a recent product advertisement from a newspaper, magazine or
television. Analyze the advertisement and explain how it captures
attention, creates interest, induces desire and motivates action.

12.6 Answers
Answers to Self Assessment Questions
1. F
2. T
3. F
4. i) b, ii) a, iii) e, iv) c, v) d
5. Medium/visual
6. Unique selling proposition
7. Hierarchy of effects

Answer to Terminal Questions

1. Refer 12.2, 12.3, 12.3.4
2. Refer 12.3.1, 12.3.2
3. Refer 12.3.4, 12.3.5

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Unit 13 Internal and External Business

Communication – Writing Business Reports

Structure:
13.1 Introduction
Objectives
13.2 What is a Report?
13.3 Types of Business Reports
13.4 Format for Business Reports
13.5 Steps in Report Preparation
13.6 Summary
13.7 Terminal Questions
13.8 Answers

13.1 Introduction
Business reports are used to communicate with both internal and external
stakeholders of an organization. Internally, management may need facts
such as sales projections, to determine the direction that business should
take. Externally, the government may need reports on compliance with
various regulations. Reports are therefore varied in nature, purpose and
format. They convey important information in an objective manner and either
present a solution to a business problem, or help in making major decisions.
Since the report is a key to business success, careful attention should be
paid to the organization, preparation and writing of the report. This unit will
explain the different characteristics, formats and types of business reports
and provide step-by-step guidelines for report preparation.

Objectives
After studying this unit, you will be able to –
 Explain the role of reports in business
 Categorize and interpret different types of reports
 Prepare an outline of a report
 Assess your skills in objective, non-personal writing

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13.2 What is a Report?

A business report may be defined as “an orderly and objective

presentation of information that helps in decision making and problem
solving.” 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, to recommendation of solutions. “Objective” means
that a report is written avoiding 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.
Example : “A survey was conducted with a sample size of 100
respondents”. (Passive voice) and not “I conducted a survey among a
sample size of 100 respondents” (active voice).
A report presents information or authentic facts and data. Subjective
judgments and recommendations should be based on data.
Finally, a business report, unlike a scientific or academic report, should aid
decision making and problem solving. For example, a report on the market
feasibility of a new product should help management to decide whether to
launch the new product or not.
A business report has certain unique characteristics –
*A report varies in purpose, length, format and complexity.
Purpose – The purpose of a business report may be to a) inform b) analyze
or c) persuade. A report that seeks to merely inform the reader is simple and
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
analyzing. Merely providing data may be meaningless, unless the data is
analyzed and interpreted. All research reports, such as market research
reports based on surveys, come under this category. The information

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gathered from a survey is analyzed 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.
Length, format and complexity – 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 a later section.
* 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 for the company’s conference room.
Suppose you have been asked to study the features of different brands of
OHP’s and come up with a recommendation. If you recommend a brand of
OHP based on its bulb life of 100 hours instead of 300 hours by mistake,
your recommendation itself may be incorrect.

13.3 Types of Business Reports

Reports may be classified based on several criteria, including their use
(progress reports 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.

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The most common types of business reports may be divided into the
following categories –
1. 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 –
a) Routine management reports – These are reports such as equipment
reports and sales updates and are prepared for internal audiences.
b) Compliance reports – These are submitted to external stakeholders,
such as the government, stating compliance with regulations such as
environmental norms.
c) Progress reports – These reports may be prepared for both internal
audiences such as top management and shareholders, 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.
2. 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.
3. Policies and Procedures – The purpose of these reports is solely to
inform. They are also prepared only for internal audiences. Examples
include reports on company policies and procedures, written by top
management and sent to all employees. This is part of downward
communication.
4. Situational reports – These are one-time, exceptional reports that are
prepared when a unique event occurs. For example, if sales of the company
has 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, analyze and persuade.

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Self Assessment Question

Are the following statements true or false?

1. A business report is a subjective presentation of information.
2. There is no single format for a business report.
3. The purpose of a proposal is to inform.
4. A compliance report is a one-time report.
5. The quality of a report is judged by its visual appeal.

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
reports will also be more informal than longer reports. Memos were
discussed in detail in an earlier unit.
As the complexity of the problem increases, additional pages may be
required .The writer of the report will then decide that the report is large
enough to be “dressed up” with a few extra parts. 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 may
be added, in order to assist the reader in understanding the report. The
report will then take on a different format
Consider the following two-page persuasive proposal, 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
would not require any of these items.

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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 writer’s 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.
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-
1. Enhance business productivity, by reducing errors in writing that
can cause communication problems, unnecessary delays, or even
wrong decisions.
2. 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.
3. Project a favorable image of the college, as an asset to the
business community in Bangalore.

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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
writers are being met by this service and whether further training should
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 (12 months @ Rs. 1000 pm)
Rs. 12000

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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 such as research reports will

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
the memo, which is at the informal end. We will discuss these assisting
items in some detail.
1. Preliminary Parts
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 below is
addressed to the person in an organization who authorized 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.

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Example
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,
should you wish to discuss the report in any way.
Sincerely,
Donald McDonald
Research Associate
b) Title Page – Since the title page creates the first impression on the
reader, it should be visually appealing. The title should be clear and as
descriptive of the study as possible.
This page should also mention the person who requested or authorized the
report, the person who prepared the report and the date on which the report
was submitted.
Example
“THE FEASIBILITY OF OPENING A BRANCH SAVINGS AND LOAN
OFFICE IN BANGALORE”
Prepared for:
Mr. William Johnson
Chairman
Western Savings and Loan Association
Mumbai
Prepared by:
Donald McDonald
Research Associate
Indian Market Research Organization
Bangalore April 1st, 2008

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c) The Contents Page – The purpose of having a contents page is to help

the reader locate information, when a report is several pages long. It
indicates how the report is organized. The contents should include the same
headings that are used in the body of the report. The headings should be
connected with the appropriate page numbers. If the report contains several
graphs, tables or figures, they should be listed separately on a separate
page, under a heading such as “ List of Tables and Figures.” The contents
page should be prepared from the outline, after writing the report.
d) The 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 should
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 should include sections such as -
a) Introduction – This includes the background and the purpose of the
study.
b) Problem Statement – A clear definition of the problem, or the
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, the methods used for collection of data, the
sample size, procedure and the questionnaire design, should be included in
this section.
d) Analysis, Findings and Conclusions – The data collected should be
analyzed and the findings presented and interpreted in a meaningful
manner. Inferences should be made based on the findings. The findings
could be presented in tabular, or in graphical form.
e) Recommendations – A report whose purpose is to persuade should
include suggested courses of action, or solutions to the defined problem,
based on the findings.

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3. Addenda/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 a listing of all sources of
information – books, journals, research papers and websites – that were
referred to for preparation of 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 which we may be accused
of plagiarism, or copying. Including a bibliography also reveals the depth of
the study.
Examples
1. Mark Ellis, Christine Johnson, “Teaching Business English”, Oxford
University Press: Oxford, 1994.
2. http://en.wikipedia.org/wiki/Nonverbal_communication
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. Examples of such items include cover letters for questionnaires,
the questionnaires themselves, maps, summaries of raw data, computerized
models and mathematical or statistical formulas. Each item in the appendix
section must be labeled as Appendix A, Appendix B, etc. and given a
suitable title.
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 an alphabetical
guide to the terms used in the main text of the report. It is generally not
a part of most business reports, although it may be needed in some
proposals, prospectuses and annual reports. It will include 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

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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.”
Business reports need not necessarily include all the items listed above. In
fact, it would be rare to find all these sections 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 sections to include.

Activity
Imagine that you are the Librarian of your college and that you have been
asked by the Principal to submit a proposal for reorganization of the
library. Write a report with your recommendations for making better use of
the space available and for computerizing the facilities.

Self Assessment Question

6. Match the following

i) Memo format a. Bibliography
ii) Preliminary part b. Technical specifications
iii) Problem definition c. Informal
iv) Appendix d. Body of report
v) Documentation e. Executive summary

13.5 Steps in Report Preparation

Since reports are a key to the success of any business, they should be
carefully planned, organized, written and presented. A lot of groundwork
should precede the actual writing of the report. We shall briefly discuss the
five main steps in report preparation –
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. We classified reports into four main types, based on the purpose,
the audience to whom they are addressed and the frequency of the report.

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Secondly, it must be remembered that most reports are required by

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 analyzed 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 single fundamental issue to be addressed in the
report and should be clearly determined, right at the outset.
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?”.
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 organization. Some of the questions to be asked about the
audience, or the reader of the report are –
 Is the audience internal or external to the organization?
 Who is the specific audience or reader? - for example, top management,
customers or the government? Reports written for the government and
for top management should be more formal than for other audiences.
 Is the audience known to you?

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 What is the level of knowledge 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 authorized, 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 interest.
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 adopt
a more conversational tone, while reports on company policies and
procedures addressed to subordinates would adopt an emphatic tone.
2. Selecting a Method to Solve the Problem – After defining the problem
and doing an audience analysis, a method has to be selected to collect 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, such as surveys that provide first hand information.
3. Gathering and Organizing Data – Once the method of gathering
information has been selected, the actual process of gathering the
information begins. Since this is time consuming and expensive, only
information that is relevant to the report and the study must be gathered.
The raw data should be evaluated for its usefulness and organized in a form
that is meaningful to understand. Tables, charts, graphs and summaries
should 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 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.
A 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 should
begin only after a satisfactory solution to the problem has been found. As

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pointed out earlier, 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 should
be followed –
 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.
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, should be set aside for
writing the report. Interruptions can make you lose your train of thought.
 Review and rewrite where necessary – Ideally, the report should be
reviewed a couple of times, to see if any improvement is needed. The
first review should be to see if any improvement in content is needed,
while the second review should check for any errors in writing style,
grammar, spelling and punctuation.
Reports should also be written in a convincing manner, so that the reader
accepts them as valid and reliable. Some suggested techniques of
conviction include the following –
 State 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.

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 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.
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 citations that are placed
numerically at the bottom of the page in the body of the report,
along with the direct references. This is one way of mentioning the
sources of information presented in the report. A bibliography, or list of
references, explained earlier, is another way of providing
documentation. This helps to convince the reader that the information is
based on reliable sources.
Business reports should be carefully worded, adopting certain techniques of
writing style –
 Use “concrete” nouns – Business reports should use concrete nouns,
rather than abstract nouns as the subject of sentences, since they are
easier to visualize.
Example – “Mr. Johnson authorized the study.”
Here, Mr. Johnson is a concrete noun and is easy to visualize.
Compare this with the sentence “Authorization for the study was
received by Mr. Johnson”. Here an abstract noun, “authorization”, is the
subject of the sentence and is harder to visualize. .
 Avoid pronouns referring to the writer or reader – The first person
pronoun “I” and the second person pronoun “you” should 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.
Example – “I conducted face-to-face interviews with fifty respondents.” This
draws more attention to the report writer and should be avoided. It is better
to emphasize the idea that “Face-to-face interviews were conducted among
fifty respondents”.

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 Use tenses correctly – If you are writing a research report and

reporting or summarizing some of the findings, the past tense is
preferable.
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 should be used.
Example – “The above figures clearly indicate the need for more
advertising to create awareness.”
 Use “transition” sentences - The report should be written so as to flow
in a logical sequence. A transition sentence summarizes one section
of the report and leads the reader smoothly into the next section.
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 should be
defined properly, explaining what the word means, rather than what the
word is about.
Example – “A dictionary is a book containing an alphabetical list of all words
in a particular language” is a more complete definition than –
“A dictionary has to do with words in a language.”

Self Assessment Question

Fill in the Blanks

7. Audience analysis helps to determine the ______________ and the
__________________ of the report.
8. The survey method is used to gather _________________ data for a
report.

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9. _______________ __________________ and __________________

are two ways of making a report more convincing.
10. The use of __________________ ______________________ is a
recommended technique of writing style in business reports.
11. It is better to emphasize the _________________ in a report rather
than the ________________.

13.6 Summary
Business reports are used to communicate with both internal and external
audiences. They are written in an orderly and objective manner and provide
information that assists in problem solving and decision making. Reports
vary in purpose, format, length and complexity. The quality of a report is
determined largely by the quality and accuracy of the data contained in the
report.
Reports may be categorized based on criteria such as the type of audience,
the frequency with which they are prepared, their purpose, use and length.
The most common types of reports fall under four broad categories –
1. Periodic reports
2. Proposals
3. Policies and Procedures
4. Situational reports
The format for a report is a function of the length of the report. Short, one-
page reports follow the memo format, while longer reports follow a
“manuscript” format. The longer the report, the more the number of
additional parts it will need, in order to assist the reader in understanding it
without any difficulty. The extra parts, or assisting items that a report may
possibly contain, include the following –
1. Preliminary parts – Letter of transmittal, title page, executive
summary and contents page.
2. Body of the report – Introduction, problem definition, methodology,
analysis, findings, conclusions and recommendations.
3. Addenda or Annexes – Bibliography or references, appendix, index
and glossary of terms.

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The steps in report preparation include –

 Planning the report, which includes determining the type of report,
defining the problem and doing an audience analysis?
 Selecting a method for collecting data
 Gathering and organizing data
 Arriving at an answer to the problem
 Writing the report
Regarding writing the report, certain procedures should be followed to make
sure that the report is of high quality - starting early, starting with easy
sections, setting aside uninterrupted time for writing, reviewing and rewriting
the report.
Some techniques for making the report more convincing to the reader
include –
 Providing opinions of experts
 Stating facts in an objective and unbiased manner
 Providing documentation in the form of references
The techniques of writing style to be followed when writing a report, include
the following
 Use of concrete vs. abstract nouns
 Avoidance of personal pronouns that emphasize the writer or reader
of the report
 Correct use of tenses
 Use of transition sentences
 Careful definition of key terms

13.7 Terminal Questions

1. What are the characteristics of business reports that distinguish them
from business letters?
2. Imagine that your factory is doing well and that you wish to participate in
the development of the local community, in the town where the factory is
located. You are willing to contribute part of the cost of building a
modern football stadium there and wish to request the government to
contribute the remaining cost.

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Answer the following questions – a) What type of report will you

prepare? b) What is the purpose? c) What report format will you use?
d) Who is the audience and what is the level of interest? e) Is the report
voluntary or authorized?
3. In your opinion, which is the most important step in report preparation?
Justify your answer.

13.8 Answers

Answers to Self Assessment Questions

1. F
2. T
3. F
4. F
5. F
6. i) c , ii) e, iii)d, iv) b, v) a
7. Tone/length; formality/complexity
8. Primary
9. Expert opinions; documentation/references/bibliography
10. Transition sentences/concrete nouns/correct tenses
11. Ideas; writer/reader

Answers to Terminal Questions

1. Refer 13.2
2. Refer 13.3, 13.4, and 13.5.
3. Refer 13.5

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Unit 14 Employment Communication –

Resumes and Cover Letters
Structure:
14.1 Introduction
Objectives
14.2 Writing a Resume
14.3 Writing Job Application Letters
14.4 Other Letters about Employment
14.5 Summary
14.6 Terminal Questions
14.7 Answers

14.1 Introduction
The job application process begins with writing resumes and application
letters. While a well drafted resume and application letter alone cannot get
you a job, they can certainly increase your chances of being included in the
“short list” of candidates to be considered. The way your resume and
application letter are worded and presented can create a favorable first
impression among prospective employers. They can provide an insight into
the type of person that you are. Needless to say, a lot of time and attention
should be given to preparing resumes and application letters, ensuring that
they are written in an appropriate format and reflect your strengths and
skills. This unit offers some useful guidelines for writing effective resumes,
application letters and other types of employment letters.

Objectives
After studying this unit, you will be able to –
 Describe the job application process
 Prepare an effective personal resume
 Explain how application letters should be tailored to the needs of
prospective employers
 Create an overall favorable image of yourself to prospective employers

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14.2 Writing a Resume

A resume is a document that summarizes 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 organized and what your strengths are, apart from listing
your qualifications.
Although resumes and job application letters go together and the letter is
seen first, the resume should be written before the letter. The resume helps
to decide which ideas are to be highlighted in the application letter.
Resumes, like application letters, should focus on the needs of employers.
For example, a person seeking a job as a visualizer in an advertising
agency, should emphasize his creative skills over other skills.
14.2.1 Types of Resumes
There are two approaches to writing a resume. Which of these you choose
will depend on your experience and accomplishments.
1. Chronological Resume – This type of resume consists in listing your
education and experience in reverse order, mentioning 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.

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An example of a chronological resume is shown below

Susan Thomas
207, Summer Block
“The Residences”
57, Benson Cross Rd.,
Bangalore 560 046
Phone (080) - 23537133
Mobile – 98450 – 31352
Email – [email protected]
OBJECTIVE A middle to senior level position in the area of Client
Servicing, in an Advertising Agency.
EDUCATION M.S., Advertising & Marketing, the University of Texas at
Austin, Texas, USA, September 2005.
B.A., Mass Communication, Mount Carmel College, Bangalore, May 2001.
EXPERIENCE Account Supervisor, Ogilvy & Mather, Bangalore,
October 2005 – present. Independently handle the advertising
campaigns of prestigious FMCG
Clients, such as Hindustan Unilever. Supervise a team of client service
executives.
Client Service Executive, Sista Saatchi & Saatchi, Bangalore,
June 2002 - June 2003.
Assisted account supervisor in pre-launch advertising activities for a
number of new product launches.
Management Trainee, Hindustan Thompson Associates, Bangalore,
June 2001 – 2002.
Went through all-round training in the different departments of an
advertising agency, with emphasis on client servicing.
ACTIVITIES Member, Advertising Club, Bangalore, 2007 – present
& INTERESTS Member, Bangalore Management Association,
Bangalore, 2006 – present
Consulting Editor, Advertising & Marketing magazine, Bangalore, 2005 -
present
REFERENCES Available on request

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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.
Example – Moving from a Marketing job to a Human Resources related job,
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 will be grouped together.
A functional resume would be written as follows –
Career Objective
A position in Marketing Communication that would leverage both my
industry and academic experience.
Experience
Summary of Industry Experience (1994 – 2002)
Worked for over eight years in the advertising industry. Started my career as
a management trainee with a mid sized agency and was exposed to all
agency departments. Joined an in-house agency of a reputed organization
and worked with them for two years as account executive on a consumer
durable account. Moved on next to India’s third largest advertising agency,
where I independently handled the advertising campaigns of a leading fast
moving consumer goods client. After three years with them, I took up an
offer as Branch Manager of a smaller agency catering to IT clients, and
worked with them for a couple of years.
Summary of Academic Experience (2003 – present)
I shifted my career focus to academics in 2003 and was a visiting faculty in
Marketing at leading business schools in Bangalore. Worked as Editor for
an institute offering distance education programs in Marketing and
Advertising for a couple of years, before joining a business school that offers
an American MBA in India. As Marketing Director, I was responsible for
teaching Marketing related subjects, placement co-ordination and marketing
the program to prospective students. After a long five-year stint with them,
I recently joined Sikkim Manipal University, where I look after the
management programs offered through distance education.

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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.
14.2.2 Components of Resumes
Irrespective of the type of resume, all resumes will have the same basic
information or standard components –
1. Basic Data – This includes the name, address, telephone number and
email id. The information provided should allow a prospective employer to
reach you easily. If you are still in college, it is better to provide both a home
and a 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.
2. Career Objective – An objective should be very specific, stating clearly
the position you are seeking and the area in which you want to work. The
objective statement should consist of two parts – 1) Your general goal,
mentioning some skills that you feel will qualify you for the job and 2) One or
more specific areas in which you wish to work.
Example – 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.
3. Education – Employers are interested in knowing about your academic
qualifications after high school. Educational qualifications should be listed in
reverse chronological order, starting with the most recent qualification first.
The degree earned, the name of the institution, and the date of receiving the
degree should be mentioned.
Example – Master of Business Administration in Retail Operations, Sikkim
Manipal University, August 2008.
In addition, any theses written, special courses taken, ranks, awards and
scholarships earned may also be mentioned, if relevant.
4. Experience – Like educational qualifications, work experience should 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

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experience.” More than job designations, employees are interested in

knowing what you can do. Therefore, a brief description of each job and the
duties performed by you should be included. Short phrases may be used,
instead of complete sentences. Technical terminology may also be used to
describe the work done by you.
Example – Production Supervisor, Western University Media Productions,
1996-97
Assisted in videotape productions, digital and online videotape editing, using
studio and portable cameras.
5. Skills/Other Knowledge – In this section, capabilities such as languages
known, computer skills and special writing skills may be listed.
6. Organizations 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, should be listed.in this
section. This information gives prospective employers an idea of your
aptitudes, attitudes and personality.
7. 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 should 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 should be
provided.
14.2.3 Language and Other Guidelines for Resumes
The general appearance of a resume is extremely important. It should
project a professional image of yourself to the organization. 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.
The following points should 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
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 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 should also come across as
dynamic and highlight your accomplishments. A list of “action words” that
should be used in writing resumes, is given below-
Achieved Defined Helped
Planned
Acted Delegated Identified
Prepared
Adapted Demonstrated Informed
Presented
Advised Described Inspected
Produced
Allocated Designated Instructed
Recommended
Analyzed Determined Integrated
Reorganized
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

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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 Organized
Trained
Conducted Guided Participated
Translated
Created Handled Performed
Updated

Activity
Imagine that you are applying for admission to a Business School and
that you are required to submit a write up along with your application,
describing your objective in wanting to pursue an MBA. Write an
objective statement in about 300 words.

Self Assessment Question

Are the following statements true or false?

1. Resumes should be tailored to the needs of different employers.
2. In a chronological resume, only the most recent job is listed.
3. A functional resume is more applicable for experienced candidates.
4. The components included in a resume will depend on the type of
resume.
5. There is no prescribed length for a resume.

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14.3 Writing Job Application Letters

A job application letter is also known as a “cover” letter, since it
introduces or covers the major points mentioned in the resume. It is
prepared after the resume. A resume by itself is incomplete, unless it is
accompanied by a cover letter. The cover letter, like the resume, should be
well written and presented, since it creates a first impression and can get
you an interview.
Cover letters should be written much like 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 personalize your qualifications
for a specific job.
Every job application or cover letter should include the following standard
components –
1. Address and salutation – The letter should be addressed to a specific
individual and not to the organization. The individual should be addressed
formally, by his/her last name.
Example – Dear Mr. Johnson/Ms. Johnson
If the name of the individual is not known, he/she should be addressed by
his/her designation.
Example – Dear HR Manager/ Sales Manager.
2. Opening – The opening statement or paragraph should 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.
4. Closing – Ask for the opportunity of a personal interview, showing
flexibility in time and location.
While the standard parts of the letter will remain the same, the format may
vary, depending on the type of letter. We will discuss the types of cover
letters briefly.

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14.3.1 Types of Job Application Letters

Job application letters may be classified into two broad categories –
1) Solicited application letters and 2) Unsolicited application letters.
1. A solicited application letter may be defined as a letter written to a
prospective employer, in response to an advertised job. Sometimes job
application letters may also be sent to prospective employers who have
not advertised for an 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 a position becomes available. These are known as
unsolicited application or cover letters.
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 organizational plan or format, which we discussed in detail, in an
earlier unit on business letter writing. The direct organizational plan, to recap
what we discussed earlier, consists in presenting the main idea first,
followed by reasons and 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.
Example – 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 –
example, through an advertisement, through friends, or through
headhunters.
 State the reasons for applying for this particular position, i.e., why your
qualifications and experience make you suited for the job.
 Close in a cordial manner and ask for a personal interview at the
convenience of the employer.

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An example of a solicited cover letter, written in the direct organizational

format, is shown below –

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
I am writing this with respect to your advertisement in the Times of India
Ascent, dated April 5th, 2008, for the position of Management Trainee
with specialization in Human Resources.
I believe that my qualifications and experience will match the needs of
the above position. I have recently completed my MBA from Sikkim
Manipal University via distance education, with specialization in Human
Resources. My final MBA project was on “HR Recruiting Policies” in
Ampersand Information Systems, Bangalore. In addition, I have also
worked on a part-time basis with an IT recruitment firm in Bangalore, for
around six months.
I am enclosing my resume, along with an executive summary of my
project report, for your review. I request you to give me the opportunity of
an interview with you at your earliest convenience.
Thanking you,
Sincerely,
Enclosures (2)
A solicited cover letter, such as the one shown above, should 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.

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2. The unsolicited job application letter 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 opportunities available to
him/her.
 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 organization.
 It saves time, since having a ready file of resumes helps the 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 an earlier
unit. The AIDA format is one type of indirect organizational 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.

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Example – “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.
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.
Example – When you’re Vice President, Marketing visited our campus to
give a guest lecture last semester; he mentioned that you hired a few
management trainees with marketing specialization, every year.
References to magazine and newspaper articles can also be used as
attention-getting devices.
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 will assure them that you understand what the job involves.
In order to create interest, the cover letter should avoid repeating facts from
the resume. Instead, it should interpret the facts.
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 did his/her
MBA, the name of the courses taken, or the firm where he/she 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 a consumer that a product is
relevant to his/her 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 emphasize the prominent features
of a product, along with supporting evidence. Similarly, the job applicant
must choose his/her major strengths (such as a particular qualification or a
part of his/her job experience) and provide enough details about them to
sound convincing.
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 should 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 consists in getting 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 organizational plan, where the main idea (asking
for a suitable opening) is stated last.
The following points should be remembered when asking for action –
 Ask for the specific action politely, without making demands.
 Express gratitude, because you are seeking a favor.
 Emphasize your strengths again in the last paragraph.

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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 organization, in the near future.”
Self Assessment Question
6. Match the following –
i) Solicited application letter a. Providing evidence and benefits
ii) Less competition for applicant b. Relating qualifications with job
iii) Attention-getting opening c. Subject line
iv) Creating interest d. Unsolicited application letter
v) Convincing prospective employer e. Showing familiarity with employer

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. Some of these
will be discussed briefly.
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 organizational 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 organizational 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 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 should 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, since filling out forms is easier than writing a letter.
2. Job Acceptance Letters
These are similar to letters that convey good news and should be written
following the direct organizational plan. They should 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.
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
should state the reasons first, although it should 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, should be stated towards the end,
following the indirect organizational plan.

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Example
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
organization 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 organization.
Sincerely,

4. Thank You Letters

These letters are appropriate after the applicant has attended a job
interview. As a matter of courtesy, they should 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 favor.
Thank you letters are relatively shorter than other employment letters.
Writing in too much detail de-emphasizes the appreciation and gratitude that
they are meant to convey.

Self Assessment Question

Fill in the blanks
7. Letters of recommendation should contain ____________
___________ And _________________ __________________.
8. The indirect organizational plan is used to write ________ _____
letters and _________ _______________ letters.
9. A ___________ __________________ letter conveys good news.

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14.5 Summary
This unit dealt with two important aspects of employment communication –
resumes and job application letters, or cover letters.
The resume is basically a summary of one’s qualifications, experience,
interests and aptitudes. However, from a job applicant’s point of view, it also
projects an overall image and provides an insight into his/her personality. It
is used by prospective employers to screen and shortlist job applicants for
an interview.
The resume is written before the job application letter and determines the
ideas to be highlighted in the job application letter. It may also be tailored to
the needs of a specific position.
Resumes are of two types – 1) Chronological resumes and 2) Functional
resumes. Chronological resumes are appropriate when qualifications and
experience are directly related to the job for which one is applying. It lists the
qualifications and experience in reverse chronological order, i.e., starting
with the most recent job or qualification. Functional resumes are appropriate
when a person has had varied experience in different functional areas, or
has switched careers. In this case, all the related work experience is
grouped together.
All resumes should include the following standard components –
 Basic data
 A specific career objective
 Education
 Work experience
 Skills/Other knowledge
 Organizations and Activities
 References
The appearance and language used in a resume is as important as the
content of a resume.
Job application or cover letters are similar to sales letters, since their
purpose is to sell oneself to a prospective employer. Like resumes, they
may be tailored to the needs of a specific position. They should include the

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following standard components –

 Date and address
 Salutation
 Opening
 Body
 Closing
Cover letters are of two types – 1) Solicited letters and 2) Unsolicited letters.
Solicited cover letters are written in response to a position that is currently
available. It is written in a straightforward manner, following the direct
organizational plan. Unsolicited cover letters are written to potential
employers who do not currently have a specific job opening, but may
consider the applicant at a later date. They have to be highly persuasive and
are written following the AIDA format, or the indirect organizational plan.
Apart from job application letters, other letters regarding employment
include letters of recommendation, job acceptance and refusal letters and
thank you letters.

14.6 Terminal Questions

1. Prepare a resume in chronological format, summarizing your education,
experience and interests. Include all the standard resume parts.
2. Go through the appointment pages of a local daily newspaper and select
an advertisement for a position that you would like to apply for. Write a
solicited application letter, in response to this ad
3. Select an organization of your choice and write an unsolicited letter
addressed to the HR Manager, enquiring about a possible opening in
your area of interest or expertise.

14.7 Answers
Answers to Self Assessment Questions
1. T
2. F
3. T

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4. F
5. F
6. i) c, ii) d, iii) e, iv) b, v) a
7. Relevant information; legal safeguards
8. Job refusal; negative recommendation
9. Job acceptance

Answers to Terminal Questions

1. Refer14.2, 14.2.1, 14.2.2, 14.2.3
2. Refer 14.3, 14.3.1
3. Refer 14.3, 14.3.1

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Unit 15 Employment Communication –

Group Discussions and Interviews

Structure:
15.1 Introduction
Objectives
15.2 What is a Group Discussion?
15.3 Attending Job Interviews
15.4 Summary
15.5 Terminal Questions
15.6 Answers

15.1 Introduction
While 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 group discussions 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,
in a face-to-face, one-on-one situation. GD’s and interviews require a
separate set of skills, as well as extensive preparation. This unit will focus
on these exclusive skills and offer some guidelines for the preparation of
GD’s and job interviews.

Objectives
After studying this unit, you will be able to –
 Explain the meaning and purpose of group discussions
 Demonstrate good group discussion skills
 Rate your overall team skills
 Assess your conduct and performance in job interviews
 Discuss how to turn interviews into job offers

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15.2 What is a Group Discussion? (GD)

A group discussion is a forum where people discuss a topic, with the
common objective of finding a solution to a problem. 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 group discussions 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 will not be able to present or discuss their ideas with the
other members of the group. A group discussion 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 group discussion 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 organization conducting the GD, or a
professional. He 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. His primary role is to evaluate the performance of every participant.
He is the one who announces the topic and keeps track of the time and the
way in which the GD progresses. Generally, he does not interfere during
the GD. However, he may intervene in two situations –
i) When the group discusses points that are not relevant to the given topic.
ii) When the discussion does not take place in an orderly manner.

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In the first case, the moderator may interfere to bring the discussion back on
track. In the second case, he may stop the GD temporarily, till order settles
in. The moderator also has the right to ask a participant to stop talking,
when he dominates the GD. 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/
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 organization
which is conducting the GD. The participants are allotted specific seats in
the GD.
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 Group Discussion
There are certain specific parameters on which the participants of a GD are
evaluated by the moderator. They are:
1. Content
2. Communication
3. Group Behavior
4. Leadership skills
1. 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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2. Communication: This refers to how you say something, which is as

important as what you say. There are three aspects to communication –
i) 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.
ii) Listen – 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.
iii) 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.
3. Group Behavior: This is the third parameter on which you are
evaluated in a Group Discussion. How each participant interacts with
the other members of the group is very important. Even in a real life
situation in an organization, all interaction is between 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.
4. 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

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maturely with your group members. 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 Group Discussions
Based on the topics that are given for GDs, they may be divided into two
broad categories:
1. Topic-based GD’s
2. Case-based GD’s
1. 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 two types –
i) Knowledge based topics and ii) Abstract topics.
i) 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
neighboring countries, including India, you will not be able to speak
effectively on the topic. Knowledge-based topics cover current
economic issues, as well as 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 GD’s.
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.
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Social Topics: Examples of such topics include, “Prostitution should be

legalized”, 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 come in handy in a GD.
Sports/Film related topics: These are also common in a number of
GD’s, 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: IT being a prominent sector, topics based on information
technology 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.
ii) 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 for ever” are examples of abstract
topics. By nature, they lend themselves to varied and widespread
discussion. They can be best discussed using appropriate examples.

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2. 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 GD’s, these GD’s 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 GD’s.
While discussing the case-based GD’s, 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 to 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.

Self Assessment Question

Are the following statements true or false?
1. A GD is a free-wheeling discussion, with full freedom given to
participants to select topics of their choice.
2. A GD evaluates participants based on the solution offered to a problem
3. What you say in a GD is as important as how you say it.
4. Group communication skills include listening skills.
5. A case-based GD requires greater analytical skills than a topic-based GD.

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
organizations for various reasons – for hiring employees, in the exit process
– when an employee is retiring, resigning or being fired, for employee
performance appraisals and so on.
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
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perform on the job. It is structured, since the time, venue, duration, number
of participants and matter 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-
 Preparation
 Meeting face to face
 Evaluating the interview
 Taking action
We will discuss these steps in detail, from the point of view of both the
interviewee and the interviewer.
15.3.1 The 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
person for the job. It also involves doing a thorough study of the
organization for which you are interviewing. Employers expect applicants to
gather information about the organization in advance and do not want to
waste precious interview time providing such information.
Several sources are available for researching an organization, 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

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 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 traveling 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.
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 a later section,
under the “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.

Activity
Imagine that you are conducting an interview with an employee of a
company where you would like to work in future. Prepare a list of
questions that you need to ask, in order to get a complete idea of the
organization.

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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 an earlier
unit. It was emphasized 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
behavior 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 organization, 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 to
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.
 Honesty and humility – It is important to be honest and to avoid
bluffing 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

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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 organization 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.
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
favorable outcome, it is important to send a thank-you letter to the
interviewer immediately, expressing gratitude for having been given the

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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 favorable
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 in the
interviewing process.
1. 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 interviewer also needs to assess and understand his own
communication and listening skills, personal prejudices, perceptions and
other barriers that may come in the way of effective communication.
Similarly, he should study the background, aspirations and values of the
interviewee in advance.
2. Meeting face-to-face – The interviewer should show flexibility and try to
make the applicant feel at ease during the interview. He should establish
good rapport with the applicant and ensure that that the communication
is a two-way process.
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 the table below –

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COMMONLY ASKED INTERVIEW QUESTIONS

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

3. 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.
4. 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 him an offer letter, a letter of rejection, or by
calling him for another interview.

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The interviewer would do well to follow certain overall guidelines, to make

the interview effective –
 Take brief notes during the interview, so that important points can be
referred to later, if required.
 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.
 Organize 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 to 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 above table) will elicit elaborate
answers from the applicant.

Self Assessment Question

6. Match the following –
i) Pre-interview preparation a. Body language
ii) During the interview b. Thank you letter
iii) Commonly asked interview c. Opportunity for career
question advancement
iv) Action stage d. Strengths and weaknesses
v) Job related information e. Structuring the interview

15.4 Summary
Employment communication also includes participating in and conducting
group discussions and attending and conducting job interviews. Group
discussions 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 group discussion 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 group discussion is to evaluate the
group communication skills of a job applicant, as opposed to his/her

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individual communication skills. A group discussion simulates the real-world

situation, since working in an organization and taking decisions require
interaction with others, rather than acting in isolation.
The group discussion is coordinated by a “moderator”, who is a neutral
person from the organization conducting the interview. The moderator’s role
is one of an observer and a facilitator, who ensures the smooth conduct of a
GD. He/she may intervene at any point, if the discussion is not focused on
the topic.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-
1. Content
2. Communication
3. Group Behavior
4. Leadership Skills
GD’s are of two different types – 1) Topic based GD’s and 2) Case based
GD’s.
Topic based GD’s in turn may be a) knowledge based, such as economic,
political, social, sports/film based, or IT based topics, or b) abstract topics.
Case based GD’s are more difficult, since they require analytical, decision-
making and problem-solving skills.
A job interview is generally structured and requires both the interviewer and
the interviewee to follow four steps – preparation, meeting face to face,
evaluation and action. The success of the interview depends on both the
interviewer and the interviewee.
Before the interview, the interviewee has to do some groundwork, including
the following –
 Gather company and job related information
 Do a self analysis
 Anticipate the questions that might be asked and prepare answers
 Plan his/her personal appearance
During the interview, the interviewee must pay attention to the following
aspects –
 Opening and closing formalities
 Using body language correctly

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 Making the interview a two-way process

 Addressing all interviewers in a group interview
 Handling salary discussion tactfully
 Showing honesty and humility
 Giving positive answers
After the interview, the interviewee must assess his/her performance and
take appropriate action, such as sending thank you letters.
The interviewer on his part, must also prepare for the interview, by
determining the purpose, style, physical set up and the number and type of
questions to be asked. During the interview, he/she must follow certain
guidelines such as note taking, positive body language and proper
organization of questions, so as to put the applicant at ease.

15.5 Terminal Questions

1. Prepare a code of conduct for a GD, listing out the “do’s” and the “don’ts
for participants.
2. Select a position that you would like to apply for, in a company of your
choice. Describe how you would go about preparing for an interview for
this specific position.
3. Imagine that you are the HR Manager of the above company,
conducting this interview. Describe how you would prepare for the
interview in terms of purpose, style, physical set up and organization of
questions.

15.6 Answers

Answers to Self Assessment Question

1. F
2. F
3. T
4. T
5. T
6. i) e, ii) a, iii) d, iv) b, v) c

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Answers to Terminal Questions

1. Refer 15.2, 15.2.1, 15.2.2
2. Refer 15.3.1
3. Refer 15.3.4

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Bibliography
1. Adler, Ronald B. and Elmhorst, Jeanne Marquardt, Communicating at
Work : Principles and Practices for the Business and the Professions,
McGraw-Hill College, 1999.
2. Himstreet, W.C. and Baty, W.M., Business Communications: Principles
and Methods, Poor Man’s Books, 1987.
3. Lesikar, Raymond V. and Flatley, Marie E., Basic Business
Communication, Tata McGraw Hill Publishing, 2002
4. Ober, Scot, Contemporary Business Communication, All India
Publishers and Distributors, 2000
5. Rai, Urmila and Rai, S.M., Business Communication, Third Edition,
Himalaya Publishing House, 2002
6. The Economist Style Guide, 9th Edition, The Economist, London, 2005.
7. Milne, John Morrison, Business Language Practice, Language Teaching
Publication, Hove, 1994.
8. http://www.microsoft.com
9. http://www.infotoday.com

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