Chapter 6

Business correspondence
INTRODUCTION
Correspondence in simple words means written communication done with the
help of letters. In this chapter we are going to study about the essential parts
of letters, types of letter, layouts of letter. We will also study the concept of
intra and inter departmental communication and various written documents
available through which this communication can be done. Lastly we will be
studying the concept of management information system.
 THEORY SECTION
Introductory points
1) A business letter is usually a letter from one business entity to another,
or between such organizations and their customers or clients and other
related parties.
2) The overall style of letter depends on the purpose of the letters and
relationship between the parties concerned.
3) A business letter is sometimes useful because it produces a permanent
written record, and may be taken more seriously by the recipient than
other forms of communication.

The essentials of a good business letter

1) Letterhead
• A letterhead is the printed stationery, which carries the essential
information about the company or the organisation.
• A letterhead generally carries a company logo, tagline, the name and
address of the registered office, corporate office of the company, Corporate
Identity Number (CIN) and its contact numbers and website and e-mail
addresses of the company.
• Sometime the letter head carries the addresses of the various offices of
the company like in case of bank, the letter head of branch office caries the
branch office address and contact details. Example -

Explanation - Corporate Identification Number or Corporate

Identity Number (CIN) is a 21 digit alpha-numeric number given
to all companies registered in India.

For example CIN of Reliance Industries Limited is

L17110MH1973PLC019786
 Letter head gives basic information about a company. It makes it

2) Reference Number
• A reference number helps us in retrieving the letter at a later stage.
• It is for an organisation to decide what the contents of a reference
number should be.

3) Date
• The date must be written in full without abbreviating the name of
the month.
• For example, 1.6.2019 may preferably be written as 1 June, 2019.
• This removes the possibility of any misunderstanding

4) Special Markings
• A few spaces below the date, one may show special markings such
as Confidential, Air Mail, through Registered Post/Courier/Speed Post
etc.
• When the contents of a letter are confidential, then care should be
taken to super scribe the envelope also with the same marking.

Explanation – special markings are of two types – one is related

to the mode of letter which includes registered post , courier,
speed post or air mail (air mail means when the letter is
delivered via air transport)

Other is related to confidentiality. If a letter is confidential the

mark should also be made on the envelope so that no one else
other than the authorised person has an access to the letter.

5) Inside Address
 • The complete name and address of the recipient is written below
the special markings.
• It must be ensured that the inside name and address is exactly the
same as that used on the envelope.

6) Attention Line
• If the letter is addressed to a company or one of its departments
but the sender wishes it to be dealt with by a particular individual
• Then an attention line may be inserted either above or below the
inside address.

Attention line

Explanation – attention line is used when we want someone

particular to deal with it.
 7) Salutation
• The choice of a salutation depends on the extent of formality one
wishes to observe.
• The following list shows different salutations in descending order of
formality:
Sir
Dear Sir/Madam
Dear Mr./Ms X

The use of “Respected Sir” should also be avoided, as the word respected, not
being an adjective, is grammatically unacceptable.

8) Subject Heading
• It is useful to provide a subject heading in longer letters. This helps
the reader find out in the first instance what the contents of the
letter are.
• Subject headings may be written in initial capitals with rest in lower
case and underscored or in capitals as shown:
Sub: Erection Work of Bikaner Project (or)
Sub: ERECTION WORK OF BIKANER PROJECT
The usual place for a subject heading is either above or below the
salutation.
9) Main Body
• The main body of letter may be divided into three parts.
• Most business letters begin with a brief introduction, which states
the purpose of the letter.
• This is followed by a longer middle section, which presents relevant
facts in a logical and coherent manner. This section may be divided
into several paragraphs, each dealing with a separate point and
written coherently.
• The conclusion is a polite rounding off. It may mention the
feedback required.

10) Complimentary Close –

It is a polite way of ending a letter.
The complimentary close should match the salutation in terms of
formality or lack of it.
The following table may be helpful

A common error is to use an apostrophe in Yours (Your’s). Care must

be taken to avoid it. “Truly” and “sincerely” are often misspelt.
It should be remembered that truly does not have an ‘e’ in it while
“sincerely” retains both the ‘e’s.

11) Signatory –
After leaving four to five spaces for the signature, the name of the
sender may be written in capitals within brackets followed by the
designation as shown below:
(AMBUJ CHANDNA)
Regional Sales Manager

12) Enclosures/Copies Circulated –

List of enclosures or details of those to whom copies of the letter are
being circulated may be given below the designation of the sender.

13) Annexure
If we wish to annex some documents with the letter, then
information about these may be listed at the end.

Please find an example of the letter below

Letter head- name of company
Logo
Address
Contact no
Website , CIN , email

Reference number- 12345

Date –11 march 2021

Attention line – Mr. Yatharth (finance department head)

Subject: Require special budget to be made for COVID 19 essentials

Dear Sir,

______Introductory
para___________________________________________________________________
______________________________________________________________________
________________________________________________________________

________________ middle section with all details

______________________________________________________________________
______________________________________________________________________
______________________________________________________________________

_____________________conclusion ___________ also ask for desired feedback

______________________________________________________________________
______________________________________________________________________
___

Yours sincerely,

Signature
Prachi Seksaria
(company secretary)

Enclosure: mr.bean
Mr. shinchan

Annexures: _________

Explanation – all parts need not be included in every letter , it

depends on the purpose of the letter and the relationship
between the sender and recipient.

Concept 3 Types of Business Letter

Business Letters are basically of two types:

1. Formal Business Letter– Formal business letters are the typical or standard
business letters meant for legal or official correspondence.
These include letters regarding business deals, order, claim, dispute settlement,
agreements, information request, sales report and other official matters.

2. Informal Business Letter– Informal Business Letter is used for casual

correspondence but doesn’t necessarily has to have a casual tone of language.
These letters include memorandums, appraisals, interview, thanks, reference
letters, cover letter, customer complaint letters, e-mails and others which are less
important or regular.
 Concept 4 – layouts of letter

Layouts of letters are of two types-Blocked and Semi Blocked.

Given below are examples of the two types of layout:

(I) Blocked Format - In the blocked format of letter layout, the date of the letter,
all references, subject, salutation, the paragraphs in the body of the letter,
conclusion and signature, all commence at the left margin as is shown in the
specimen below. Another point to note is that in this format no commas are
used after inside address, salutation or complimentary close.
(II)Semi-Blocked Format - This style is often termed as modified block style letter. In
the semi-blocked format of a layout of a letter the date of the letter, complementary
close and signature are aligned to the right of the letter. The subject or reference is
centrally aligned. The paragraphs of the body of the letter all commence with a slight
indent and commas are used in the inside address (however a common practice now
is to omit the use of comma in the inside address), salutation and complimentary
close.
 Concept 5 – Essentials of a good business letter

The following points are considered as essentials of a good business letter and before
writing any letter, these points should be observed by the draftsman.

1) Completeness The letter must be complete in itself. It should contain all the
information required by the addressee. Incomplete letters do not produce the
desired effect on the mind of the reader.

2) Clarity The writer must be clear about what he wants to convey and then he
should try to express it in simple and straight forward language. Clear writing and
clear thinking should go hand in hand. Before writing, the writer should plan the
message to be conveyed in order to avoid vagueness.
3) Simplicity Business letter should be in a plain and simple style, clear and easily
understood.

4) Accuracy A business letter should not have any false or misleading statement.
There should be no mistakes which usually creep in a letter due to negligence.
Mistakes, however small, should be avoided, as they cause much inconvenience
and trouble.

5) Brevity In a business letter unnecessary words and superfluous matter should be

avoided. As brevity in letter is the soul of a commercial correspondence, the writer
must see that every sentence he has written in impregnated with an appropriate
meaning.

6) Sincerity Whether a person is writing a personal letter or a business letter, he

needs to write it with sincerity. In other words, he must be himself and not an
imitation of somebody else.

7) Courtesy Courtesy means that the general tone of the letter should be mild and
there should be consideration for the feelings of others. Curt and rude letters have
got no place in the business world.

8) Style- The words used in a business letter and the way in which they are used
express the writer’s personality and give the letter what is called its style. It is
determined by the background, training, experience of a person and the way he
thinks. If one writes with naturalness and ease, the letter so produced will reflect
the personality of the writer. It is correctly said, therefore, that Style is the man.
 Concept 6 Business Message

1) Businesses messages include messages from the Chairman of the Company to

the shareholder, employees or related to sales and purchases, products, and
services, confirmation or cancellation of orders, invoices, company
announcements and notifications, employee related news such as promotions,
awards, increments, bonus, appraisals, resignation and termination.

2) These messages are very crucial for the business be it in the form of an
advertisement in print or in electronic mode or in the form of the any other
internal or external communication.

3) Good business messages are essential to keep the business relationships in

good health too.

The ‘You’ attitude in Business Writing

1) The ‘you attitude’ is writing style that emphasizes readers rather than the
writer.
2) To write business letter the writer should not focus or put our self in the
place of receivers. However the desires, problems, circumstances, emotions
and probable reactions of the recipient are to be taken into consideration.
3) Business letter must be written form ‘you viewpoint’ instead of ‘I or we
viewpoint’.
4) For example
We attitude – we will deliver product today
You attitude –the vehicle has left the warehouse your ordered will be
delivered today.

5) Thus it can be stated that by adopting you viewpoint following benefits can
be enjoyed:
• Creation of friendly atmosphere
• Motivation the reader
• Establishment of mutual trust
• Can create favourable outcome even in a bad-news situation
• Accomplishment of the goal of the letter
• Enhance goodwill of the firm
To summarise, it can be said that the ‘you attitude’ is not only important but
also essential for effective letter writing and business messages.

Concept 7 – Types Of Messages

1) Positive Messages (good news)

• Positive messages include messages where the audience is expected to
react in a neutral to positive manner.
• These messages might be items such as congratulations, confirmations,
directions, simple credit requests, or credit approvals.
• Following messages are considered as positive communication when:
The receiver likes or expects this news (product shipped on time)
The receiver needs little education or background to understand the
news (travel arrangement for the conference)
The receiver considers the message routine, even if not completely
positive (parking lot closed for three days for new striping)

Example –

Dear Mr. Nobita

With reference to our interview that took place on 1st may

2020, I feel happy to appoint you as the House manager
(finance) as per your choice.

I expect you to be joining from 10th may 2020 . thank you

and looking forward to meeting you soon,

Yours sincerely

doreamon
2) Negative Messages (bad news)
• Negative messages include messages where the audience is expected
to react in a negative manner.
• Negative messages consist of bad news.
• In these messages, the sender’s goal is to convey the bad news in a
manner that preserves the business relationship.
• These messages might be items such as refusal to provide a refund,
cancellation of an event, inability to support an event and more.
• Following messages are considered as negative communication when:
The receiver may be displeased (cost for repair is to be borne by receiver,
not the company)
The receiver needs a little persuasion (new log-on --- procedure takes
longer but is more secure)

Example –

Dear Mr. Nobita

This is in reference to the interview we had last week. We

are looking for someone who is a go getter and can work for
late hours. We are sorry to inform you that we may not be
able to accommodate you at this point of time. On behalf of
organisation I thank you for your interest, time and efforts.

Yours sincerely

doreamon
3) Persuasive Messages
• In this type of message, the audience is expected to need
encouragement in order to act as the sender desires.
• In some cases, the receiver is more like a positive audience; for
example, when you’re asking for a recommendation letter or when
you’re inviting someone to attend an after-hours work function.
• In other cases, the receiver is more like a negative audience; for
example, when you’re requesting additional payment as a result of a
shared error or when you’re providing an extension to an impending due
date.
• Following messages are considered as persuasive communication
when:
The receiver may be reluctant (please speak to the new employee group)
The receiver is being asked a favor (please write recommendation letter)
The receiver may be invited to something somewhat outside regular
duties (please supervise a new book club that will meet on campus after
work)

Example –

Dear nobita,

We were wanting to arrange a seminar of yours on this

weekend on self improvement. Please let us know if you are
available.

Thank you

doreamon
Concept 7 Business Report
1) The word ‘Report’ is derived from the Latin “reportare” which means to
carry back (re=back+ portare = to carry).

2) A report, therefore, is a description of an event carried back to some who

was not present on the scene.

3) The report is a message to management.

4) It travels from an employee to a supervisor, from a supervisor to an

executive, or from the executive to the management.

5) Simply stated, a business report conveys information to assist in decision

making..

6) Some reports might present the actual solution to solve a business

problem; other reports might record historical information that will be useful
to assist in future decision-making.

7) Either way, information is being “reported” that will be useful in making

decision.

Thus the term report can be defined as an orderly and objective presentation
of information that helps in decision-making and problem solving. Note the
different parts of this definition:

1. The report must be well-ordered so the reader can easily find information.

2. It must be objective because the reader will use the report to make decision
that affect the organization.

3. It must present information-facts and data. Where subjective information

are required, as in drawing conclusions and making recommendations they
must be presented ethically and be based on the information contained in the
report.

4. It must aid in decision making and problem solving. There is a practical,

“need to-know” dimension about business reports that differentiates them
from academic or scientific reports.
5 A business report can be defined as an evaluation or assessment or review
of a particular event, issue, period or set of circumstances which is related to
a business.

Explanation- (just for your understanding)

Compliance report – this report gives us information if the

Writing effective business report
1) A business report should not be written in essay format and it should be
in an abridged style that allows the reader to navigate the report quickly
and to identify key elements.
2) It uses appropriate headings and subheadings and, if necessary, bullet
points, diagrams and tables.
3) The main function of a business report is to communicate relevant
information quickly, clearly, and efficiently.
4) Business reports can range from brief one-or-two-page reports, to
reports of a hundred pages or more with several chapters and, quite
possibly, a number of appendices.
5) A lengthy report would include a table of contents and possibly an
index.

Parts of effective business report

1) The Executive Summary acts like the Abstract of a regular essay. It

will briefly state the purpose of the report, it will briefly describe the
 methodology used to investigate the issue and it will list the key
points and findings that are found in the report.

2) The Body gives details of the evaluation process. It will describe your
methodology and identify particular issues that impacted on your
evaluation. It might also allude to, or give a brief preview of your
findings. Relevant tables and/or diagrams will appear in the Body.

3) In the Key Findings/Recommendations section you will identify and

discuss/describe your key findings and make your recommendations.

4) Your Conclusion will neatly sum up your findings, and in doing so will
ensure that these relate back to the original question or issue that
has given rise to the report.
Concept 8 Inter and Intra- Departmental
Communication

There are various documents used in inter departmental

communication, they are:
1. Memorandum
• the word at best means a note or record for future use.
• It is a useful mode of internal communication.
• A memorandum (memorandums or memoranda in plural) plays a
convenient and flexible role.
• While much of inter and intra-office communication is being done
over the phone, memorandums are preferred when one needs to
convey information in writing.
•Memos are also issued in the cases of disciplinary actions to be
taken against employees and replies thereto.
These include memos relating to show-cause notice, charge sheet
etc.,

A few specimens of Memos are given below:

 Example –

If Mr Bean talks over phone with his senior asking 3 days

leave and the senior grants the permission so in order to
keep a record the senior can issue a memorandum to Mr.
bean.

*
Remember – memos play flexible role and can be issued to
convey any information to the employees.
2. Office Circulars
• Office circulars are for disseminating information to a large number
of employees within the organisation.
• Since it is an internal communication, therefore it has traditionally
been brief and business-like formal and devoid of salutation.
A few specimens of office circulars are given below:
 3. Office Orders
• Office Orders have a format similar to that of memorandums. What makes
them different is the purpose and tone employed.
• They generally deal with matters affecting rights and privileges of employees.
• They carry a number since they remain in force till revoked and are filed for
future reference.
• In addition, they carry a bold, underlined heading to help us identify them.
Copies are sent to concerned people: A specimen office order is given below:
4. Office Notes
• Office Notes are exchange between two different departments.
Companies follow a particular format for ‘notes’ of this type.
• The actual layout of the ‘Note’ may differ from company to
company. It is a matter of style and individual preference.

A few formats are given below:

Explanation –
Office circular – when information is shared to all employees
Office order – deal with matters affecting rights and privileges of
employees
Office notes – communication between one department to
another
Memorandums – flexible role, notes used for future reference.

Inter departmental communication means when two

departments or employees of two different employees
communicate with eachother (for eg – finance and sales)
Intra departmental communication means when employees
belonging to same department communicate with each other.
Points to Remember

1) A memo is different from a letter, both in format and in its effect on the
addressee.
Conceptto 9note
It is important Management
that a memo doesInformation System
not have a salutation and
complimentary close. But the subject is clearly written and underlined.
2) Memos are used commonly for issuing instructions to the staff, change in
the policy inviting suggestion, giving information, making requests etc.
3) Whatever be the subject matter, the language of the memo should be
polite and courteous.

Concept 9 Management Information System

The MIS Concepts

1) Executives in an organization provide leadership and direction for planning,
organizing, staffing, supervising, and controlling business activities.
2) Each of these business activities involves decision making process. For making
decisions, executives need the information.
3) The required information is to be provided by information specialist or by data
processing department.
4) Depending on the hierarchy the information need differs, accordingly different
types of information systems are required.
5) To achieve this goal, different types of information systems are devised by the
organizations.
 For example – suppose you go to a medical shop , you ask the
shopkeeper for a medicine and the shop keeper searches in his
computer system if that medicine is available or not . if it is
available he will give you otherwise he will deny. This computer
system is nothing but MIS. It gives information required to
manage.

In the same scenario if there was no MIS, the chemist would

have to search the whole store and this will lead to delay and he
might lose his customers.

Major postulates of Management Information Systems are:

1. Information form of a MIS is periodic, exception and based on demands.
2. Information formats are pre-specified and fixed.
3. Information is provided by extraction and manipulation of operational data.
4. It provides information about the performance of the organization.
5. It supports the intelligence and implementation stages of decision making.
6. It supports structured decisions for operational and tactical planning and control.

Purpose of MIS
A well-defined MIS provides information to all levels of management for the following
purpose:

– To report the organization performance to tax authorities, shareholders, regulatory

authorities and other stakeholders such as suppliers and customers etc.
– To prepare future plans for short and long term basis.
– To exercise day-to-day control on various operations in the different functional areas
in the organization
– To allocate different type of resources to different functional areas.
– To allow management by exception.
– To develop database of business partners and to devise procedures to deal with
them.
– To develop the training tools for the new recruits in the organization at all levels.
Elements of MIS

MIS is a system that helps management in the process of decision making. The three
elements of MIS are Management, Information and System. It is necessary to
understand these three components:

Management
• The term “Management” as defined by Marry Follett is “The art of getting things
done through people”
• It is a process of conceiving and converting certain worthwhile ideas into results by
getting things done through people by offering them monetary and other
inducement in return for their contributions.

Information
• when raw data is processed to facilitate in decision making it is known as
information.
• In MIS, it is obtained by processing data in to a form meaningful to the users.
System
• A physical system is a set of components that operate together to achieve a
common objective or multiple objectives.
• MIS can be thought of as a system (set of hardware, software, manpower,
procedures, etc) to provide timely and accurate information to the management
users in an organisation.

Structure of Management Information

The levels of management consist of top, middle, and first line management
(supervisory).
The activities in the organizations are of three types:
– Strategic planning,
– Tactical and
– Operational
. The activities and information needs of three levels of management are illustrated in
the following.

1. Top level (Strategic level) Management and their information requirements

• Top management is defined as a set of management positions, which are
concerned with the overall tasks of designing directing and managing the
organization in an integrated manner.
• They are responsible for interacting with representatives of the external
environment, such as financial institutions, political figures, and important clients
of the organization.
• The structure of top level normally consists of Chairman and members of the
Board of Directors, Chief Executive Officer and the heads of the major
departments of the company.
• Top management’s main responsibility is in the direction of determining the
overall goals and objectives of the business.
• Top management needs the information on the trends in the external
environment (economic, technological, political and social) and on the functioning
of the internal organizational sub- system.
• Apart from historical information, top management requires on-going or current
information also which is generated through forecasts of the future.
 • Thus, mostly the information utilized by top management is futuristic and
external in nature.

2. Middle level (Tactical level) and their Information Needs

• Middle level management is defined as a group of management positions, which
tend to overlap the top and supervisory management levels in the hierarchy.
• Middle management positions consist of heads of functional departments and
chiefs of technical staff and service units. Middle management, therefore, includes
such people as the Manager of Sales, the Manager of Purchasing, Finance Manager,
and the Manager of Personnel etc.
• Middle management may be viewed as “administrative” management. Middle
management is concerned with the task of formulating policies and procedures for
the guidance of supervisory management.
• The nature of information required at the middle management level is less
diverse and complex.

3. Supervisory level (Operational level) Management and their Information Needs

• Supervisory management is defined as a team of management positions at the
base of the hierarchy.
• It consists of section officers, office managers and superintendents, foreman
and supervisors who are directly responsible for instructing and supervising the
efforts of rank and file, clerical and “blue-collar” employees and workers.
• Supervisory management is also called “operation management”
• At the supervisory level, managers are responsible for routine, day-today
decision and activities of the organization, which do not require much judgement
and discretion.
•. Supervisory management mostly needs internal information on operational
aspects of the functioning of activity units. There is little element of complexity of
uncertainty involved in the information.

Refer the chart given below for more clarity

 Note : in this topic you need to remember the names of the levels , who is
included in each level and what kind of information is needed.

Information required

Complex and external

Less complex and internal

Less diverse and internal

Characteristics of MIS Characteristics

Some of the main characteristics of MIS are listed as under.

1) Comprehensiveness:
• Management Information System is comprehensive in nature.
• It caters to the need of large variety of people in different hierarchy as routine
information requirement exist practically at all levels.
• Therefore reporting system in the form of MIS is most sought after information
system in any organization.
 2) Co-ordinated :
Management information system is centrally co-ordinated to ensure that
information is passed back and forth among the sub-systems as needed and to
ensure that information system operates efficiently.

3) Sub-systems :
A MIS is composed of sub-systems or quasi separate component system that is
the part of the overall - unified system.

4) Integration: A MIS is rationally integrated, so as to become more meaningful.

• Sub-systems are integrated so that the activities of each are inter-related with
those of the others. This integration is accomplished primarily by passing data
between these systems.

5) Transformation of Data into Information –

A MIS transforms data into information in variety of ways.
• When data is processed and is useful to a particular manager for a particular
purpose, it becomes information.

6) Enhance Productivity :
A MIS enhances productivity in several ways.
It enables routine tasks such as document preparation to be carried out more
efficiently, it provides higher levels of service to external organizations and
individuals, it supplies the organization with early warnings about internal problems
and external threats, it gives early notice of opportunities.

7) Conforms to Managers’ Styles Characteristics –

A management information system is developed in recognition of the unique
managerial styles and behavioural patterns of the personnel who will use it, as well
as the contributions made by managers.
 8) Relevant Information: A MIS should provide only relevant information.
Determining what information is relevant may be difficult in situations in
which analyses vary for different managers or according to particular
circumstances, such as in the case of special problems.

9) Uses Established Quality Criteria: A management information system must be

designed to the required tolerance for timeliness, relevance, and accuracy of
information. These tolerances vary from task to task and from level to level within
an organization.
10) Feedback : A management information system should provide feedback about
its own efficiency and effectiveness. The reporting of computer malfunctions and
transactions processing error rates is a simple example of this feedback.
11) Flexibility: It must be designed to be easily modified if, for example, different
information is needed because the environment changes or if the organization
undertakes new activities (such as introducing new products) which require new
modes of processing. The information system should be capable of being easily
expanded the accommodate growth or new types of processing activities and also
easily contracted.
12) Modularity - The MIS should be composed of many modules or sub-systems
rather than be designed as one and only one for a few large systems. This means
that at all different levels different MIS is made and all of them together form
enterprise wide MIS.
13) Selective Sharing of Data: Two or more managers often need to utilize the same
information; the system should have features, which allow ready access to
information by multiple managers. An advanced feature that promotes this sharing
is data bases. On the other hand, it is often important to reserve certain information
for the exclusive use of only selected managers.
14) Computerized : It is possible to have a MIS without using a computer. But its
use increases the effectiveness of the System.
Basic Requirement of MIS
The basic requirements of a computer based MIS are listed as below :
1. Hardware : It refers to the physical computer equipment and associated
devices. The hardware must provide five basic functions, i.e., input of data
entry, output, secondary storage for data and programmes, central processor
(Computation, Control, and primary storage) and communication.

2. Software : It is a broad term; it means the instructions or programs that direct

the operation of the hardware. The software requirement if of two types:
System Software and Application Software.

3. Database : The database contains all data utilized by the application software.
An included set of stored data which is often referred to as file. The physical
existence of the stored data is known as database.
4. Procedures : Formal operating procedures are physical components because
they exist in a physical from such as a manual or instruction booklet. Basically,
three major types of procedure are required: – User Instructions (for users of
the application to record data, employ a terminal to enter or retrieve data, or
use the result) – Instructions for preparation of input by data preparation
personnel – Operating instructions for computer operations personnel.

5. Operations Personnel: It includes personnel such as Computer operators,

system analysts, programmers, data preparation personnel.

Limitations of MIS Limitations

The main limitations of MIS are as follows:
1. The quality of the outputs of MIS is basically governed by the quality of inputs
and processes.
2. MIS is not a substitute for effective management .It means that it cannot
replace managerial judgement in making decisions in different functional areas. It
is merely an important tool in the hands of executives for decision making and
problem solving.
3. MIS may not have requisite flexibility to quickly update itself with the
changing needs of time, especially in the fast changing and complex environment.
4. MIS cannot provide tailor made information packages suitable for the purpose
of every type of decisions made by executives.
5. MIS takes into account mainly quantitative factors; thus it ignores non
quantitative factors like morale, attitudes of members of the organization, which
have an important bearing on decision- making process of executives.
6. MIS is less useful for making non-programmed decision-making. Such type of
decisions is not of routine type and thus they require information, which may not
be available from existing MIS to executives.
7. The effectiveness of MIS is reduced in the organization, where the culture is to
hold information and not share with others.
8. MIS effectiveness decreases due to frequent changes in top management
organizational structure and operational team.
 MULTIPLE CHOICE QUESTIONS

Q1) _____ means the instruction or program that directs the operation of the
hardware.
a) Database
b) Hardware
c) Software
d) Procedures
Q2) ______ is defined as the art of getting things done.
a) Management
b) Information
c) System
d) MIS

Q3) _____ message refers to a message where the audience is expected to react in
a neutral to positive manner.
a) Negative message
b) Positive message
c) Persuasive message
d) None of the above

Q4) The word ‘report’ is derived from _____ word ‘reportare’ which means to
____?
a) Greek , carry back
b) Latin , carry
c) Latin , carry back
d) Spanish , back

Q5) ____ is a printed stationery which carries the essential information about a
company or organisation.
a) Annexure
b) Letterhead
c) Main body
d) Inside address

Q6) the choice of salutation depends on ______

a) The purpose of letter
b) The extent of formality one needs to observe
c) Depends on the writer
d) None of the above

Q7) ______ helps the reader to find out what the contents of the letter are.
a) Attention line
b) Special markings
c) Reference number
d) Subject line

Q8) in the ____ part of main body we mention the feedback which we seek to
obtain.
a) Introduction part
b) Middle section
c) Conclusion
d) All of the above

Q9) _______ gives the details of those to whom the copies of letters are being
circulated.
a) Annexure
b) Enclosure
c) Special markings
d) Main body

Q10) in _____ format of letter the date , subject, salutation , paraghraph of the
body , conclusion and signature all commence at left margin.
a) Blocked format
b) Semi blocked
c) Modified blocked
d) All of the above
Q11) which of the following statement is not true:
a) Either blocked or semi blocked format can be used while drafting the letter.
b) One need not follow the same format throughout the letter
c) Overall style depends on purpose of letter and relationship between parties.
d) None of the above

Q12) in ____ type of message the audience is expected to need encouragement in

order to act as sender desires.
a) Positive
b) Negative
c) Persuasive
d) None of the above

13) the report is a message to _____

a) employees
b) employer
c) management
d) none of the above

Q14) _____ acts as an abstract and states the purpose of the report.
a) Executive summary
b) Body
c) Key findings
d) Conclusion

Q15) which of the following is included in the letter but not in memorandum.
a) date
b) salutation
c) reference number
d) body

Q16) Plural form of memorandum

(a) Memorandums
(b) Memoranda
(c) Both (a) and (b)
 (d) None of the above
Q17) _____ generally deals with matters affecting rights and privileges of
employees.
a) memorandum
b) office circular
c) office order
d) office note
Q18) the word confidential super scribed on the envelope is a____
a) salutation
b) special marking
c) attention line
d) subject

Q19) which of the following is not a limitation of MIS?

a) quality of output is depended on the quality of input
b) mis is a substitute for effective management
c) it takes into account only quantative data
d) cannot provide tailor made information

Q20) Writing a letter with "you-attitude" means writing –

(A) From the point of view of other persons not concerned
(B) From the point of view of the reader
(C) Using the word "you" repeatedly
(D) From the point of view of the writer

Q21) What do you write in the salutation is you don't know an exact name?
(A) Leave it blank
(B) Take you best guess
(C) Write Dear Person
(D) Write Dear Sir or Madam
Q22) A memorandum (Memo) is considered a brief form of written communication
for –
(A) Formal use
(B) External use
(C) Internal use
(D) Legal use

Q23)

(A) MEMORANDUM
(B) OFFICE CIRCULAR
(C) NOTICE
(D) LEGAL NOTICE

Q24) Office circulars are part of

(A) External communication
(B) Informal communication
(C) Internal communication
(D) None of above

Q25)
(A) Intra note
(B) Circular
(C) Public notice
(D) None of above

Q26)

(A) Office order

(B) Office circular
(C) Public notice
(D) Legal notice

Q27) Memorandums are preferred when one needs to convey information in

writing.
(A) True
(B) False
(C) Partly true
(D) None of above

Q28) Office Notes are exchange between two different companies.

(A) True
(B) False
(C) Partly true
(D) None of above
Q29) Various documents used for internal communications are –
(A) Memorandums, office circulars, office orders, office note, suggestions,
complaints and representations
(B) Reports, press releases, advertisement
(C) Presentation, email social media reports, blogs
(D) Notices, circulars etc.

Q30) A memo is similar to a letter both in format and in its effect on the addressee.
(A) True
(B) False
(C) Partly true
(D) None of above

Q31) Memos are used commonly for issuing instructions to the staff, change in the
policy inviting suggestion, giving information, making requests etc.
(A) True
(B) False
(C) Partly true
(D) None of above

Q32) Whatever be the subject matter, the language of the memo should be –
(A) Very strict & offensive
(B) Polite and courteous
(C) (A) or (B)
(D) None of above

Q33) Office orders are documents where –

(A) Information is passed on to external shareholders
(B) Information is passed on to employees
(C) Information is passed on to the media
(D) Confidential information is shared with employees
Q34. Memorandum, office circulars, office orders, office notes, suggestions,
complaints and representations are the various forms of -
(A) External communication
(B) Informal communication
(C) Inter-organizational communication
(D) Intra-organizational communication

Q35) As manager you are informing the recipient about his suspension. For this
purpose, will be drafted.
(A) Office order
(B) Office Circular
(C) Press Release
(D) Memorandum

ANSWER KEY

1 C 19 B
2 A 20 B
3 B 21 D
4 C 22 C
5 A 23 A
6 B 24 C
7 D 25 B
8 C 26 A
9 B 27 A
10 A 28 B
11 B 29 A
12 C 30 B
13 C 31 A
14 A 32 B
15 B 33 B
16 C 34 D
17 C 35 A
18 b
 LAST MOMENT REVISION
Style of letter depends on purpose of letter Types of letter-
and relationship between sender and
Formal – official purpose
recipient.
Informal - casual, day to day purpose
Essential parts

1) Letterhead – basic details of company Layouts – blocked and semi blocked

include name logo address contact
email CIN website Blocked – left aligned and no commas
2) Reference no – for future retrieval Semi / modified blocked – right aligned and
3) Date – write in full commas
4) Attention line – if you want specific
person to deal with letter
Business Report- message to management
5) Special marking – mode of letter and
confidentiality 4 parts – executive summary – purpose
6) Inside address – same as written on and summary
envelope
Main body – all the information including
7) Salutation – depends on extent of
methodology
formality
8) Subject line – what the letter is about Key findings- whatever important
9) Main body – in 3 part, introduction , informations are obtained , facts and
middle and conclusion. Mention figures
feedback in conclusion part.
Conclusion – solutions and round up
10) Complimentary close – depends on
salutation
11) Enclosure- to whom copy is circulated Business messages – 3 types
12) Annexure- supporting documents Positive – acts as a good news/ neutral
13) Signature – with designation
Negative – acts as a bad news

Memorandums – flexible role – issue for Persuasive – recipient needs motivation to

anything act as per sender’s desire

Office circular – msg to all employees

Office order - rights and privileges of

employees for eg transfer salary etc

Office notes – two dept exchange

When you feel like
stopping think why you
started.