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MODULE 1
Business Communication: Nature, Importance, Process and Other Details
Nature of Communication:
Communication occurs wherever life exists.
The transmission of any meaningful message is communication. It is as natural a phenomenon as
existence itself. Whether we recognize it or not, we have no option but to communicate.
Then we here stands for all things living. A baby cries to convey its hunger. A dog barks to warn his master
of an intruder. Corporate organizations which, after all, consist of the human element, use information-
based systems like Management Information System (MIS), Decision Support System (DSS) and Strategic
Information System (SIS) to run businesses successfully.
This is what communication is all about. Communication is an integral part of human existence.
Communication contributes enormously to the success or failure of every human activity. Communication is
essentially the ability of one person to make contact with another and to make himself understood.
Since man is a social animal, it is vital that he express his feelings and emotions, receive and exchange
information. It is here that communication comes into play.
ADVERTISEMENTS:
In case of organizations, it becomes even more important as people working in different departments have
to achieve common objectives. The working of inter-personal relationships is possible only through
communication.
Apart from binding its various components internally, communication is what links an organisation with the
external world. Thus, communication is regarded as the foundation of a successful organisation. No group
can exist without communication.
Communication has a significant impact on the ultimate potency of an organisation. It is only through
communication that ideas, information, attitudes or emotions get conveyed from one person to another.
At the individual level also, effective communication skills are responsible for success. According to a
survey of America’s most successful managers by a leading American magazine, Fortune, excellent
communication skill was one of the prime determinants of success.
Defining Communication:
The word communication has been derived from the Latin word communis, which means to share or to
participate.
Thus, communication stands for sharing or transmission of information, an idea, an opinion, an emotion, a
fact or an attitude. It includes both, the act of communicating as well as the message to be communicated.
Attempts have been made by different authors to define communication. A few are enumerated below:
“Communication means to share in, to give to another or the interchange of – thoughts, opinions or
information.” Webster
“Communication is an exchange of facts, ideas, opinions, or emotions by two or more persons.” W. H.
Newman and C. F. Summer Jr.
ADVERTISEMENTS:
“Communication in its simplest form is conveying of information from one person to another.” Hudson
“Communication is the process of passing information and understanding from one person to another.”
Keith Davis
“Communication is a continuing and thinking process dealing with the transmission and interchange with
understanding of ideas, facts and courses of action.” George R. Terry
“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 transformation that is usually called
communication. ” Berelso and Steiner
Thus communication is the process of passing information and understanding from one person to
another with three sides to it:
(i) Transmission of subject-matter or message
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(ii) Involvement of two parties to complete the process of communication

(iii) The person to whom the message is transmitted understands it in the same sense in which the sender
of message wants him to understand it
According to Harold D. Lass well, a convenient way to describe an act of communication is to
answer the following questions:
Who
Says What
In Which Channel
To Whom
With What Effect?

Characteristics of Communication:
“Communication maintains and animates life. It creates a common pool of ideas, strengthens the feeling of
togetherness through exchange of messages and translates thought into action.” UNESCO – Many Voices
One World.
(i) Interchange of information:
The basic characteristic of human communication is that it aims at exchanging information. It is a two-way
process. The exchange can be between two or more persons. It may be at the individual or the
organizational level.
(ii) Continuous process:
Communication is a continuous process. It is not static. It is constantly subject to change and is dynamic.
The people with whom communication is held, its content and nature, and the situation in which
communication is held – all keep changing.
(iii) Mutual understanding:
The main purpose of communication is to bring about mutual understanding. The receiver should receive
and understand the message in the manner that the sender intended him to.
(iv) Response or reaction:
Communication always leads to some response or reaction. A message becomes communication only
when the receiving party understands and acknowledges it, and also reacts and responds to it.
(v) Universal function:
Communication is a universal function, which covers all levels of authority.
(vi) Social activity:
Communication is a social activity, too. The components of a society are into a relationship of sharing, be it
information, feelings or emotions.
The same holds true for business communication. It involves the effort of people to get in touch with one
another and to make them understood. The process by which people attempt to share meaning and relate
to one another is, thus, a social activity.
Purposes of Communication:
Communication is meant:
i. To inform
ii. To reassure
iii. To teach
iv. To deliver news, whether good or bad
v. To understand
vi. To explain

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vii. To persuade
viii. To transact
ix. To organize
x. To control
xi. To co-ordinate
xii. To direct…
Among other things
Importance of Communication:
The importance of communication to an organisation cannot be overemphasized. It is critical to the-success
of any organisation and has a very significant impact on the ultimate effectiveness of the whole
organisation. Communication is a means by which behaviour is modified, change is effected, information is
made productive and goals are achieved.
Business communication can be internal when it is directed to persons within the organisation such as
superiors, co-workers or subordinates. Business communication can be external when directed to
customers, suppliers, government, public, etc.

Effective internal communication works towards establishing and disseminating of the goals of an
enterprise, evolving plans for their achievement, organizing human and other resources in an efficient way.
It helps in selecting, developing and appraising members of the organisation, in motivating and
encouraging people to put in their best, and in controlling their performance.
Growth in the size and multiple locations of organizations require keeping in touch with employees spread
over different states of a country or over different countries. Sending directions and getting feedback from
them would be possible only through effective communication.
Rapid technological advancements deeply affect not only the methods of work but also the composition of
groups. In such a situation, proper communication between superiors and subordinates becomes very
necessary.
External communication relates an organisation to the environment outside. No enterprise can thrive in a
vacuum. It has to be aware of the needs of the customers, the availability of suppliers, regulations of the
government and the concerns of a community.
Only through effective communication can an organisation become an open system interacting with its
environment.
Thus communication:
(i) Binds people together.
(ii) Improves the morale in an organization.
(iii) Helps in proper planning and co-ordination.
(iv) Forms the basis for decision-making.
(v) Helps in the efficient running of an organisation.
(vi) Helps in achieving increased productivity at lower costs.
(vii) Builds up mutual trust and confidence.
Factors Contributing to the Importance of Communication:
The importance of communication cannot be denied nor should it be underestimated in this era of
globalization dominated by modern management education. With the passage of time, society has also
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become increasingly complex and businesses more global. All these factors have added to the importance
of communication.
Let us have an overview of the factors that have contributed to this growing importance of
communication:
(i) Big size of organizations:
Modern organizations are gigantic as compared to those of yesteryears. Moreover, they are in a continuous
process of expansion. Communication is the only link among the large number of people in the set-up.
(ii) Growing importance of human relations:
Modern management has brought in the concept of human resource management. Its importance cannot
be ignored. The style of working has changed considerably over the years. It is no longer a management-
decides-and-workers- follow kind of working pattern.
Participative management has become the watchword. Men will not cooperate unless they are treated
humanely. This has only increased the importance of communication in business organizations.
(iii) Public relations:
Just like human beings, organizations cannot function in isolation. Every organisation has certain social
responsibilities. It also has to interact with different segments of society. The responsibilities are towards
customers, shareholders, suppliers, traders, trade unions, media, government and the people in general.
(iv) Advances in behavioural sciences:
Modern management lays great stress on the theories of behavioural sciences like sociology, psychology,
philosophy, spiritualism and transactional analysis. Their growing importance can be judged by the
tremendous surge in the sale of books on these subjects.
The essence of all the writings is that we change the way of looking at human nature. Improvement in
communication skills can do this effectively.
(v) Technological advances:
Today’s computer age affects not only the methods of working, but also the composition of groups.
Communication is the only way to meet the challenge and to strengthen the relationship between superiors
and subordinates. Teleconferencing has become a key link for immediate decision-making and feedback in
large business organizations.
(vi) Growth of trade unions:
The last century has seen a tremendous increase in the size of the unions of workers. These unions
occupy a very important place in an organizational set-up. Hence, mutual understanding between the
management and the unions is very important. Communication, therefore, has a vital role to play.
(vii) Consumerism (increase in the demand for consumer goods):
Communication has become an inevitable cycle since the growth of consumerism. In this era of the global
marketplace, the competition is really tough, and companies are under constant pressure to attract clientele
and to perform. The effort to persuade customers to buy a product is virtually never-ending. This has led to
a tremendous growth in communication.
From pamphlets, brochures and advertisements in the print and the electronic media, to workshops,
demonstrations, contests and attractive schemes, consumerism has spawned a whole new way of
communication.
(viii) Distance education:
The advent of the Open University system has led to an increase in communication. In many countries, a
large segment of population is receiving distance education. In India, IGNOU (Indira Gandhi National Open
University is an example.)
Process of Communication:
The process of communication involves seven major elements -sender, message, encoding, channel,
receiver, decoding and feedback.

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Sender:
The sender is the person who transmits a message. He is the communicator. He is the one who gets the
entire process of communication started. He wants to get his opinions, ideas, facts, thoughts or information
across to the receiver. He is, therefore, also said to be the transmitter of a message.
Message:
A message is the actual information that has to be conveyed. Communication is unthinkable without a
message. A message triggers a response from the receiver. Messages can broadly be divided into verbal
and non-verbal. The message must be clear, complete, unambiguous and courteous.
Encoding:
The seeds of communication are sown the moment the sender thinks of transmitting a certain message.
These thoughts have to be converted into suitable words, pictures, charts or symbols so that they can be
delivered to the receiver.
This process of converting thoughts into suitable words, charts, symbols or any other form in which they
can be understood by the receiver is called encoding. The choice of the method of communication is made
here – will the message be verbal or non-verbal?
Channel:
How does one communicate? This is what a channel deals with. Communication is achieved through a
channel. The channel can be a letter, an email, a fax, a telephone or memos, reports, bulletins, posters and
manuals.
The choice depends on the relationship between the sender and the receiver as well as on the message
that has to be communicated. Other factors that tend to influence the choice of a channel include the
gravity of the message, the number of receivers, the costs involved and the amount of information.
Receiver:
The person who receives the message, decodes it and understands it or attaches some meaning to it is the
receiver.
The receiver has to perform three functions:
(i) Reception of the message:
This is the stage when a message sent by the sender is sensorial taken in by the receiver.
(ii) Decoding the message:
After receiving the message, the receiver has to attach some meaning to it.
(iii) Understanding the message:
He then has to interpret it in the same way and in the same sense as the sender meant it.
Feedback:
The return of communication from the receiver to the sender is known as feedback. It is the response,
reaction or reply to the communication. It is always directed towards the sender. This completes the cycle
of communication. Thus, in feedback, the receiver sends his reply or response to the sender, indicating that
he has
understood
the
message
received. In
face-to-face
communicat
ion.

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Barriers to Communication:
If the sender’s message does not reach the receiver as it is meant to, then there must be some barrier or
hindrance. What can it be? And how to avoid such barriers?
Good organizers of communication need to anticipate the barriers and remove them. The barriers range
from a poor microphone to an emotional attitude that rejects the message before it is received (e.g. a child
unwilling to heed to reason unless its demand is fulfilled first).
For convenience of analysis, we may classify the barriers into five types:
I. Mechanical barriers
II. Physical barriers
III. Psychological barriers
IV. Semantic and language barriers
V. Status barriers
i. Mechanical barriers: Faulty mechanism:
A communication may not reach properly if the mechanism that carries it breaks down. To take an extreme
case, if the computer typing has been done in devnagari, and while taking the printout the computer is in
the Roman mode, not a single letter would be understood.
Similarly, if the mirror image of a letter is sent by some mechanical fault, it will be hard to decipher.
Some possible mechanical failures are:
(a) A weak microphone or poor sound spread (acoustics) of the meeting place
(b) Defective telephone lines
(c) Electricity/computer breakdown
(d) Poor printing quality or paper spread of ink, overlap of colours
(e) Atmospherics on radio or TV, especially in a cloudy weather
ii. Physical barriers: noise, space, time:
Sometimes background noise, whether in a face-to-face meeting or at either end of the telephone, reduces
the audibility of the spoken word. Also, if the listener is too far from the speaker, he may not be able to hear
him, in which case distance is the barrier. Similarly, the time taken for the message to reach its destination
can become a barrier, e.g. a telegram delivered too late.
iii. Psychological barriers:
These are numerous and require greater effort to overcome:
(a) A person of weak hearing or eyesight cannot always receive the communication in full.
(b) The age of the listener puts its own limitations on his ability to receive messages. One may be too
young or too old to understand certain things.
(c) A person’s educational level governs his understanding. Some background knowledge is required to
understand certain messages.
(d) Where they understand faster boys are more outdoors oriented while girls tend to take a major interest
in housework. A boy who is told to do a “girl’s” job may put up a psychological barrier.
(e) A wandering mind cannot fully gather the inputs given to it. While roving is a natural tendency of the
mind and the attention span of a listener is limited, there may be other causes of inattention too. These may
be visual or audio distractions – gaudy pictures or songs in the neighborhood.
(f) Ideological loyalties may form a barrier to communication. One may have a political party membership, a
philosophical principle (like hedonism, i.e. devotion to sensory enjoyment), and a religious affiliation that
has already bound the way one thinks. Such a person may not be receptive to the ideas counter to his
ideology.
(g) Loyalty to a brand or an organisation is also a barrier. One who is loyal to a certain brand may not be
receptive to a rival product’s add. One may not be receptive to the praises of an organisation other than
one’s own, a team other than one’s countries, and so on.

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(h) Emotional states of a person can act as barriers. If someone is in a fit of anger, he /she may not listen to
reason. They may also find it difficult to communicate soberly with a person who has not contributed to his
anger. There is a spillover effect – the emotion generated by one transaction spilling over into an unrelated
transaction.
(i) One’s prejudices act as a hindrance to reason. A prejudice is a judgment formed without proper
information. One may have a racial prejudice, a caste prejudice and so on. This is the opposite of an open
mind. A liberal education is meant to remove irrational notions which stay on as prejudices.
(j) Personality limitations, too, put a barrier. These are similar to ideological barriers, as some personalities
are naturally attracted to certain ideologies. However, personality variations are far too numerous.
One’s aspirations, viewpoints, analyses make one open or closed to certain messages. One bent on getting
into a job for livelihood may not listen to the advantages of entrepreneurship.
(k) Fixed images about other people stand as barriers to see them in a new role. A comedian coming in as
a hero of a film may not be acceptable to an audience which sees him typed in comedy roles.
(l) Poor retention power is a barrier. If one fails to take timely notes when instructions are given, hoping to
remember them all, one has perhaps given away a part of the communication.
iv. Semantic and language barriers:
Semantics is the study of how words convey meanings. What happens if the speaker/writer means one
thing and the listener/reader takes it in another meaning?
An advertiser offered to sell a “big, bad dog”. While the word “bad” is meant to convey its attacking power to
guard a house, some readers may take it otherwise. The context changes the meaning of the word.
One has to ask, is the word conveyed in its proper context? Words are indeed so tricky to use that one can
hardly ever convey the same thing to all receivers in given words.
The words generate different meanings in different minds, according to their previous associations and
language levels. Literary texts, created by master writers and read by expert critics, are continually open to
reinterpretations. Some of this conflict with one another.
Yet in business life, dealing with matter-of-fact situations, semantic barriers arise from the inability to read
the receiver’s mind. If the sender knows the receiver’s level of understanding, fine.
If not, there is a barrier. A good communicator takes the trouble of removing all ambiguity and wrong
coloring of words. As a receiver, he tries to read the words and between the lines.
Semantic barriers arise when:
(a) The sender’s experience with words differs from the receiver’s.
(b) Words from one environment are taken out and put into an environment where they don’t fit.
(c) Opinions are given as facts. “XYZ bike is the most reliable.”
(d) An abstract word is used (in order to be more general and safer) when a concrete word is required. One
may want to say that students of a particular college are rowdy, but in order to avoid naming names, one
may abstract and generalize, and put the blame on college students as a whole. Similarly, some young
men may be impatient, but one might say “Youth is impatient.”
(e) Complex phrases and long constructions are used. Also, when idioms are meant to be understood in
the idiomatic sense but are taken in the literal sense. E.g., dot you i s and cross your t s. This may even
generate unintended humour.
As for language barriers (other than semantic barriers), we all experience how different regional groups,
sometimes due to their previous language habits, distort English vowels.
Thus, “He is good at batting” may be changed to “He is good at betting”. Lack of proper language skills may
lead to wrong choice of words, or of words with wrong associative values.
One hears people saying, “My boss’s behaviour is good,” whereas the proper thing to say way would be,
“My boss’s treatment of his juniors is good.” But the rudeness may be unintended. Homonyms (words with
the same sound) cause difficulty in understanding: there and there, ones and once.
Speakers with different accents find it hard to understand each other. The American accent is insufficiently
understood in India while Americans may have a hard time making sense of Indianised English.
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Inadequate vocabulary in a new language is a handicap to communication. Hence the praises of word
power. Short of words, one may straightaway use a native language word in a foreign language: “Today I
met an aamdaar “. What the speaker means is an MLA, but the listener may try to associate the word with
a mango and get nowhere.
Symbols (non-verbal) create the same problems as languages. The swastik is revered by Hindus but the
reverse swastik was a Nazi symbol.
Poor organisation of one’s speech and a harsh voice may also act as barriers. In writing, long paragraphs
are out of fashion. They are hard to read. Clusters of big words put a barricade to speed reading.
v. Status barriers:
This again is a kind of psychological barrier, where the higher or lower social status of the other party
disables one from expressing one’s meaning fully. A modest farmer, asked to express his problems to a
high-ranking official or politician, may feel nervous or ill at ease.
Status symbols (e.g. luxury of the surroundings) may halt communication. A candidate from a modest
background may be awestruck to see the glitz and glamour of a multinational company where he has to
appear for an interview.
Cultural barriers are a special case of collective psychological barriers. A culture brings its own habits,
modes of dressing, greeting, eating, food preferences etc. Most people have an element of xenophobia
(fear or aversion of foreigners).
Time magazine once commented sharply on American businessmen’s need to allow for differences
between American culture and Oriental culture. Only then would they be able to do business with eastern
countries.
This advice can, in fact, be universalized. Media power which the English speaking countries enjoy tends to
give them a false sense of universal acceptability of their culture. In Indian business, it is a grassroots
reality that Indian words and Indianisms are freely used. Exposed to native speakers of English, Indian
businessmen are often at a loss.
Resistance to the written word exists as a barrier. The written word demands a commitment. People prefer
to listen (if possible in their regional language) and act. Letters remain unreplied while personal visits or
telephone calls server the purpose.
How to remove communication barriers:
Resistance to the written word exists as a barrier. The written word demands a commitment. People prefer
to listen (if possible in their regional language) and act. Letters remain unreplied while personal visits or
telephone calls serve the purpose.
A proper understanding of the nature of barriers helps us to arrive at a solution. All the same, good
communicators have to form a new set of general habits and recognize the potential barriers in order to put
their meaning across.
(i) Good listening:
“Listening as a Tool of Communication.” In brief, deep and comprehensive listening helps to overcome
barriers. One has to listen to the words as well as the tone. An overworked employee may say, “I’ll do it”
with just a little touch of despair. The boss needs to show understanding.
One may develop a better listening capacity by systematically testing oneself on listening comprehension.
TOEFL (Test of English as a Foreign Language) is meant to find out, among other things, how well one
listens.
(ii) Practice in simplifying and clarifying one’s message:
Writers are known to rewrite their text several times to achieve clarity, precision and beauty. Hence regular
writing is advisable. The art of writing, says an expert, is the art of rewriting.
(iii) Obtain feedback, analyze it and respond:
Advertisements are often tested for their pulling power. A slight rearrangement of words or font or layout
can make an ad more appealing.
(iv) Repetition:
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Repetition of a message through multiple channels helps to remove barriers which may exist at the first
appearance of an idea. Thus one removes the resistance to the new.
(v) Ambience:
Find the receiver in a receptive mood and ambience. If the audience is, for instance, given more
comfortable chairs, it may digest a speech better.
(vi) Actions speak louder than words:
If the communicator’s sincerity is shown through his actions, people go out to listen to him.
(vii) Cross-cultural get-togethers:
A systematic effort to bring together people of different cultures goes to increase receptivity. Also, respect
for their cultural icons makes the message welcome.
(viii) Informality is useful:
If the rank and file in an organisation are in awe of the superior (due to his position, education, dress,
quality of visitors, excellence in speech, etc.) such a manager may step out of his cabin and go out to the
juniors.
Politicians are always doing it during election campaigns – coming out into the street and going door to
door. Multinationals also send out door to door salespersons to reduce the distance created by celebrity
endorsement (backing by a famous person) of their products.
Principles of Effective Communication:
What you say may be important, but how you say it is even more important.
This is a major theme of this book. “Business Letter Writing” where the eight C’s of effective letter writing
are discussed: correctness, completeness, clarity, conciseness, courtesy, consideration, concreteness, and
convincing power.
However, talking of communication in general, we may state that following are the requirements of
an effective give-and-take of ideas and feelings:
1. Simplicity:
In practical life, most communication has to be simple, direct and without ornamentation. You have to keep
in mind the receiver’s level of understanding and his mind- frame when he receives the message.
Pressed for time, he would prefer a simple statement to a complicated one. To simplify, one may use
tabulation, graphics, charts, etc. keeping the words to the minimum.
2. Face to face communication:
It is generally to the sender’s advantage to get face to face with the receiver. This helps to get an
immediate feedback and respond to it. Hence interactive media save time and give instant results.
When a salesman is talking across the counter, when a spokesman is addressing a news conference, the
message acts two-way hence face-to-face communication may be used wherever possible to the optimum
advantage.
3. Use of feedback:
The sender or originator of a message should prepare himself to receive the feedback. Then he knows
what reaction the message is producing in the target audience.
If a new product is launched, surveys may be conducted to know how people feel about it. If an ad is
issued, you have to test whether it is working the desired way. Is the message clear? Is it reaching the right
audience in the right manner? The quality of reception? This is to be assessed and considered in further
planning.
4. Listening with understanding:
When you are at the other end of the communication, you have a responsibility as a listener and receiver of
messages. You have to be attentive and make an effort to concentrate. To grasp the message fully, you
have to attune yourself to it. You have to keep an open mind and receive the message without criticizing it,
approving it or disapproving it until you have heard it folly.

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Good listening requires patience and self- discipline. Good listeners help the speaker to become a better
communicator. Devoted and sympathetic listening draws the best out of the speaker. That is why listening
is called an art.
Also, while listening you have to make mental (or written) notes of the message. Then, at the end of the
listening session, you can have a ready summary of what the speaker said.
5. An environment conducive to communication:
An environment of trust needs to be created for effective communication to take place. Trust is created by
communicating one’s sincere interest in the receiver. The one who is managing the environment has to
frame the right policies and take appropriate steps to achieve this.
The management must understand what is creating “noise” or barrier to communication. It has to take steps
to remove the barriers. For example, the audience may not be properly introduced to the credentials of the
speaker. Or at the time of receiving a message the receiver may be closed or hostile to the sender. It is
necessary to set the stage for the communication.
6. Non-verbal communication:
Your gestures and posture must be in harmony with the spoken message. You have to learn the technique
of expressing yourself well through body language. The speaker should reflect a positive attitude. You
should receive the non-verbal communication, too.
7. Use of the “You” factor:
The communicator should minimize the use of I, me and mine, and maximize the use of you and yours.
This has to be in spirit as well as words.
8. Awareness of the audience’s bias:
The communicator should be aware of the audience’s pre-conceived ideas and should try to set the record
straight. Talking in a mixed gathering, he has to be especially careful that he does not generalize or
stereotype individuals or groups.
If, for example, some smokers are present in a gathering, he has to exercise care in making remarks about
smoking. The same for a group of mixed nationalities.
9. Overcoming differences of language:
The same word may convey different meanings to different people because of their varied linguistic
backgrounds.
For example, the proper English usage for writing an exam is “to take an exam.” But under the influence of
Hindi, one tends to say that the examinee is “giving an exam.” In such cases, it is better to say, “Appearing
for an exam.” Also, pronunciation of words has to be acceptable to the audience.
The text as well as the context of the message should be understood. The use of unconventional and
technical words should be cautious, and sometimes they need to be explained.
The same goes for short forms which are too numerous these days, with new ones coming into circulation
every day. The best practice is to go over the essence of the message and make sure that it is understood.
Benefits of Effective communication:

Communication Theories and Models:

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A theory of any phenomenon seeks to explain how it works. It is a set of statements and general laws
relating to it. In the case of communication, we have a number of theories mainly presented as models for
an easier understanding.
From the ancient Greek philosopher Aristotle to twentieth century scientists, many have proposed models
of communication. Ancient India also has its own outlook about it.
There are four major assumptions relating to communication:
(i) Communication is a process which has no beginning or ending – it begins and ends arbitrarily (at
random).
(ii) Communication is of the nature of a transaction with many causes and many effects on different people.
Some of these are unintended.
(iii) Communication has numerous dimensions. Its sources, audiences, attitudes, tones and influences are
multiple. The messages affect both the sender and the receiver.
(iv) Communication serves numerous purposes for different parties that directly or indirectly participate in it.
Each party has its own interest angle.
A Survey of Theories/Models of Communication:
To begin with, Aristotle in his Rhetoric (which means the art of speaking and writing for persuasion) says
that rhetoric is made up of the speaker, the speech and the audience. This forms the base of modern
theoreticians.
1. Lasswell model of communication:
Lasswell, an American political scientist, seeks to describe communication by asking –
Who
Says what
In which channel
To whom
With what effect?

According to Lasswell, communication has three jobs to do:

(i) Observe the surroundings
(ii) Make meaning out of it
(iii) Transmit culture from one generation to another.
2. David Berlo’s SMCR or SMCRF model:
This popular model primarily takes four elements, namely (i) Sources (ii) Messages (iii) Channels and (iv)
Receivers. A fifth element was later added – feedback.
I. As for the source, we need to be aware how much the source knows, his attitude, his communicative skill
and his cultural context.
II. The message is made up of words, pictures, etc. The source uses the individual elements and joins them
to form his meaning.
III. The channel can be any of the senses- seeing, hearing, touching, smelling, tasting. Multiple channels
can be used in communication.
IV. The receiver, too, is characterized by his/her knowledge, attitude, receiving skills and culture. In the
event of a major variance between source and receiver, communication may fail.
Berlo says that communication is ongoing and dynamic. A piece of communication is a bucket with many
bits from many sources – and this bucket is dumped on the receiver. This is also called his bucket theory.

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3. Shannon and Weaver model:

Their theory, presented as a model, has five key components in ideal communication:
(i) An information source, creating a message
(ii) A transmitter, converting the message into a signal which can be sent
(iii) A channel, which can carry the signal to the receiver
(iv) The receiver, who reads the signal and takes it to the end-user
(v) The destination, the final user of the message
This theory adds the sixth, unintended component of noise, present in actual situations, causing
interference in the reception of the message.

In this theory, noise is stated as the main problem in communication. Noise is of three types (see
also “Barriers to Communication”):
(i) Technical problems (e.g. weak antenna of TV)
(ii) Semantic barriers (“wish him” taken as “poison him” under the influence of Hindi)
(iii) Problem of effectiveness (an ad jingle in a dull tune)
To this theory, Kirk and Talbot make a supplement, stating three kinds of noise (for which they use the
word distortion).
(i) Stretch distortion:
In this, information is systematically changed.
(ii) Fog distortion:
In this, a message is partly lost due to surrounding interferences (e.g. air- conditioners humming)
(iii) Mirage distortion:
In this, a word or a signal that is not there is received.
The Shannon and Weaver model was used in India’s planning of communication. It was considered that
encoding and decoding are the vital acts and need the most attention.
4. Osgood and Shramm circular model:
In their model, communication is taken as an eminently two-way process, with both parties sending and
receiving by turns, interactively.

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5. Carey’s model – communication as a ritual:

James Carey, an American anthropologist, gave this model. A ritual is a custom, a traditional practice. This
model rejects the theory that communication is a means of social control. Instead, it states that media like
TV recall and re-enact myths, values and meanings of life.
Communication is seen simply as creating shared beliefs, representing the beliefs and celebrating them.
6. Paulo Freire’s theory – communication as dialogue:
This model rejects Aristotle’s model which sees communication as a transmission of a message. Instead, it
takes communication as a means to liberation, participation in collective life and creation of awareness (of
rights etc.).
7. Marxism-based model – communication as a power-relationship:
In this theory, the focus is on the fact that communication is, at times, an exercise of the power one has
over others (individuals or groups). This theory asks us to consider the inequality among classes, castes,
economic and social groups. Communication is a reflection of the power-relation in a family, a factory, or
between senders and receivers of mass communications.
8. Indian communication theory:
Indian sage Bharat Muni has written on Indian poetics, and calls sadharanikaran the key process in
communication. This term is close to the Latin word communis from which comes the word communication.
Bharat Muni says that right communication is between sahridayas (i.e. those whose hearts are attuned to
each other’s). To be sahridayas, the sender and receiver have to have a common culture, common learning
and be adapted to each other.
Bharat Muni’s rasa theory states that the human mind has nine permanent moods (sthayee bhavas) and
these can be aroused to create nine rasas – i.e. types of aesthetic delight. The rasas include bhayanaka
rasa (fierce mood), hasya rasa (jocular mood), Karun rasa (compassionate mood) etc.
The message, by producing the desired mood (rasa) in the audience, achieves sadharanikaran (unity of
spirit).
This theory emphasizes the receiver’s mental conditioning by which he/she can be in tune with the
message. Sadharanikaran does not mean to persuade the other party, but stresses the joy of sharing.
In the Indian tradition, communication is a mental search for meaning whose aim is self- knowledge,
freedom and reaching the Truth. While Indian model focuses on the interpretation by the receiver, Western
models stress expression.
A theory of communication derived from Buddhism stresses the impermanence, the changing nature of
communication in the fluid world.
9. Islamic theory – communication for building brotherhood:
According to the Islamic theory, umma or community is the main thing in communication as against
Western models which deal mainly with the individual receiver. The Islamic theory considers

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communication as a tool of building relationships in a community. We remember the opposition in the

Muslim countries to Salman Rushdie’s heretic novel.
We note that Rushdie is a product of Western education and is patronized by the Western press, and his
approach is seen as unpalatable to Muslim communities.
Audience Analysis?
To send out a meaningful communication, the sender needs to know the audience or audiences he dealing
with. Otherwise one lands with a situation where one has spoken but not told.
If it is a buyers’ market, with a choice of products to the consumer, the need to know the audience is even
more urgent.
Modern management researchers have identified five types of audiences:
(i) Primary audience:
This is the audience that will decide the fate of your communication – to act on it or not to act on it. The
housewife who selects the washing soap is the primary audience to soap ads.
(ii) Secondary audience:
These are the people who comment on the message and implement the decision once it is taken. The
husband who buys the soap from the market is the secondary audience.
(iii) Initial audience:
This is the person or persons who are the first to receive the message and then pass it on to someone else
to deal with. The general manager may be the one to receive and address a complaint to the sales
manager. He is, then, the initial audience.
(iv) “Gatekeeper” audience:
These are the people who have the power to stop the message before it reaches the addressee. The
secretary to chairman is a gatekeeper audience.
(v) “Watch dog” audience:
This includes all alert bystanders who see a message conveyed and, if necessary, react favorably or
otherwise. Woman activists, as a watch dog audience, may object to some posters.

No one can see that the communication must pass through the filter or screen, reach where it is meant to,
convey the correct sense, be acted upon, and withstand the scrutiny of the alert.
The importance of audience analysis: If you have been sending messages for a large number of people,
then you probably know that “many men, many minds”.
Some like an emotional appeal, some an intellectual or scientific. That is why advertisement of a food
product says: “Taste may be the reason, vitamins the excuse – or vice versa.” This is a clever device to
attract all kind of consumers.
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Knowing your audience:

To know an audience is to know what motivates the members of it. In Shakespeare’s play Julius Caesar,
Antony has to speak to the Romans after Caesar’s murder. The Romans at that time dislike the dead king.
Antony has to gain sympathy for Caesar and create antipathy for the killers.
He starts by befriending the listeners. He then makes an ironical remark about how people forget the good
in others (here Caesar), and partially praises the murderers! He does not want to shock the listeners.
He then shows how good a friend Caesar was to Antony… and eventually shows how generous Caesar
was to the citizens of Rome. Antony manages to reverse the mob opinion against the murderers and gets
the Romans to hunt for them.
This is a masterpiece of persuasive communication based on common human psychology. A businessman
may manipulate minds much the same way. He starts with an appeal to the values which the audience likes
even if he has to create new values.
The audience may like the virtue of economy (limited spending), yet the businessman may play on human
psychology to sell luxury goods that simplify life and make it comfortable. He appeals to a value (comfort)
which is often deeper than the value of saving money.
Two-wheeler makers compete with each other by emphasizing different values in their target audience: the
riding joy, the speed and acceleration, the fuel efficiency, the prestige of owning the number one product,
and so on. The audience mood changes from one to the other as it receives different messages.
So, after the businessman has made a study of what moves the audience, he adapts his message to it.
Audience analysis guides you to:
(i) Protecting the receiver’s ego
(ii) Blending logic and emotion with suitable images of each
(iii) A choice of appealing arguments, facts and figures
(iv) Underlining the positive in your message.
You may organize the message this way:
(i) Be direct except to give bad news (e.g. declining dividends).
(ii) Outline the message.
(iii) Use headings and subheadings as you go.
As for the style of the message:
(i) Make the language easy at every level – words, sentences, quotes.
(ii) Avoid being defensive or rude.
(iii) Remove negativity.
(iv) Use the languages with which the audience is at ease – conversational and familiar.
Advice on visuals:
(i) Use charts, models, photos etc.
(ii) Get the visuals designed by graphic experts.
(iii) Use appealing colour combinations.
In the case of a mixed audience, it is best to give priority to:
(i) Those that will decide to act or not to act on the message, (ii) The ones who will screen it. A film is made
to suit the common taste of the public and the censor board.
Self-Development and Communication:
While one develops oneself as a person, one also becomes a better communicator (listener/
speaker/writer/reader); and when one tries to become a better communicator, it helps in an all-round
growth of one’s personality.
As such, to understand the relationship between self-development and communication is at the very heart
of our subject-matter in this book. Business communication is not an end in itself but a means to achieving
professional and personal fulfillment.

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Dimensions of self-development:
For the sake of a better understanding, we can look upon the human personality as made up of the
physical, the intellectual, the emotional and the spiritual side.
Physical betterment means staying healthy and strong by regulating one’s food habits, exercise schedule,
rest and recreation. It also requires adequate Medicare.
Intellectual betterment includes acquiring a good memory and imagination and knowledge of the world with
which one is concerned: one’s specialisation (economics/ management/ physics/ teaching etc.), driving,
civic laws, general knowledge, use of gadgetry, etc.
Emotional betterment aims at staying cheerful and sociable by maintaining good relationships. It requires
positive thinking. A good emotional life is the key to overall progress; hence career drivers need to note
this.
Spiritual betterment basically means cultivating detachment and an unruffled temper in the ups and downs
of life. Prayer, meditation, religious books and discourses help in this, and so does contemplation of the
meaning of life.
How self-development helps in better communication?
A balanced and well-adjusted person has a good chance of becoming an effective communicator:
(i) Such a person listens well and notes the hidden meanings too.
(ii) His/her body language – a conscious and unconscious instrument of communication – supports his/her
other messages.
(iii) He/she takes a profound interest in all aspects of life and helps others with their self- development.
(iv) His/her group behaviour is pleasant and teamwork productive.
(v) He/she can generate useful ideas from a calm mind.
(vi) His/her holistic perspective on life helps in the quality growth of an organisation and makes him/her a
natural leader in course of time.
(vii) To such a person people open their hearts in trust and offer cooperation.
Good communication as an aid to self-development:
A conscious effort to evolve one’s communicative personality results in the person’s overall uplift. Just
consider the essentials of good writing: clarity, conciseness, courtesy etc., and the necessaries of effective
listening: genuine interest in others, concentration, an open mind etc.
As one improves one’s communicative skills, one has to overhaul one’s entire personality. After all good
communication comes from the centre of a person.
Communicative excellence builds up a sound personality in so many ways:
It begins with good listening. This helps to build sympathetic understanding of others. One comes out of
oneself and gets liked by others.
When one acquires a good speaking ability, one’s confidence goes up and one learns to speak rationally as
well as persuasively. One develops an insight into human psychology and eventually masterly
understanding of human nature.
(i) Better selections for reading and a good reading speed help the individual to commune with great minds,
skip the irrelevant and acquire an idea bank of his own. “Reading makes a full man.”
(ii) Good writing requires, above all, exactness. We know great ancient thought from the well- written books
of the past. By cultivating good writing habits, one develops a wise personality. In Sanskrit kavi means both
a poet and a wise man.
In this way, self-evolution as a communicator leads to a cultivated mind and spirit, and roundness of
personality.
Tips on self – development:
A thinking person always evaluates his place in the world and tries to make it better and better.
Here is how:
1. Self-review:

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Every day and from time to time, he reviews his speech and actions and tries to find out where he has gone
wrong or fallen short. Self-review helps him to overcome his weak areas.
2. Good management of time:
He manages his time well, beginning with his hours of waking up and going to bed. He plans his work and
works his plan. This planning is for a day, a week, a month, a year and the distant future. His estimates
become realistic and efficiency sharpens.
3. Developing a calm mind:
“A sound mind in a sound body.” A man on the path of self- improvement tries to acquire a health which
would enable him to meditate. Swami Vivekananda says that the way to the meditation hall is through the
football field. That is, first physical health, power, teamwork – and then meditation.
4. Communing with great minds:
He chooses his books and discourses optimally – just the right combination to develop all four aspects of
personality something on health-building and removal of diseases; something about the various arts and
skills useful in life; great creative literature; and spiritual texts – if possible of all religions.
5. Building up courage:
A self-improvement fan tries to overcome his fears, whatever they may be, by meeting situations head-on
in a planned manner. He also has the initiative to take up good causes. He is proactive – originator of
actions.
6. Humility and gratitude:
Newton pronounced that even with his unequalled place as a physicist, he had just a pebble on the shores
of knowledge. Life is short, art is long. This teaches humility. Further, a self-improver learns to be thankful
to all who have made him what he is. A wise person is known to thank even his opponent where this is due.
SWOT Analysis:
In modem management studies, SWOT is a useful buzzword – an analysis of one’s Strengths,
Weaknesses, Opportunities and Threats. A SWOT analysis is required in the regular course of a person’s
or a company’s life, and especially at the start of an enterprise.
For this, one can overview the past and consider others’ opinions, too. One has to be one’s own final judge
and follow the gut feeling. SWOT analysis helps to know one’s standing and choose the correct areas for
development and growth.

Importance or Significance of Communication in Modern Business

Communication is one of the most important facilitators of modern business. In its broadest sense, the
importance of modern business is to effect change, to influence, action toward the welfare of the
organization. It is essential in business, govt., military organizations, hospitals, schools, committees’
homes; anywhere people deal with one another. The importance of communication in modern business
may be stated follows:

* Basis of effective leadership: Communication transmits the leader’s idea and opinions to the followers.
Think about political leaders who lead and guide the people for the betterment of the society or to fulfill any
specific purpose.
* Basis for the movement of ideas and information: It helps to move ideas and information from one
person to another person. It can develop a chain of understanding through two-way communication. If there
exists no communication media, technique or process then there would be no sharing of any idea or
information.
* Provision for data for decision making: it helps the manager to obtain data for decision making, to
assist in searching problem, and to know what action are needed. Therefore, communication acts like a
storehouse where data, idea or information are available to deal with.

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* Smooth and efficient functioning: It helps in all managerial function, such as planning, organizing,
directing, motivating and controlling. It server as a fuel to managerial operation and function. Therefore, it
makes a chain between past, present and future and helps for effective performance.
* Delegation of authority and responsibility: It helps in decentralization of authority and delegation of
responsibility to right person. Through downward communication, superior delegates authority and
responsibility to the subordinates. Proper assignment of job and division labor calls for better output.
* Increase in managerial competence: It helps to improve managerial competence and efficiency.
Manager use various techniques or tools to command or control over resources. Continues tracking is
possible in terms of communication.

* Minimization of cost and time: Efficient communication attempts to minimize time and cost in case of
exchange of information. If any message is required to be communicated to thousands of people then we
have to think about Newspaper, Television, or Radio which are strong media for communicating any
message around the globe.

* Basis information: It acts as a basis of information to each department and helps the employees to
perform their respective jobs. So, any action to be taken requires a basisand communication between
organization or within organization provides such basis.

* Fulfillment of Organizational objectives: It fulfills the organizational objectives by co-operation and co-
ordination among the managerial and working staffs.

* Efficient Human Resources Management: Human resources are recruited, trained and motivated
through effective communication. Recruitment involves circular by the organization towards general people.
Then interested candidates apply and on the basis of their merit, they are recruited by the respective
organization and transformation according to their skillness. The whole activities involve verbal or non-
verbal communication.

* Creation of Employee motivation and moral: Managers provide incentives to motivate their
subordinates and maintain strong invisible chain. Motivation is based on situation and therefore what
should be the way of motivation required judgement by the superior. The perfect motivation towards right
person involves effective communication.

* Establishment of public Relation: The management can create cordial relations with govt. customers,
creditors, shareholders, regulatory bodies, trade unions and the society as a whole. It ensures sound
relation

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Key principles of business communication

Every form of communication requires interacting with another person or group of people – your
audience.
It helps to imagine communication as an exchange of messages between a sender and a receiver through
a medium or channel of communication. It begins a cycle of communication which is illustrated in the image
above.
A message is encoded by the sender through sounds, written words, images, video, spoken language or
body language, for example gestures, facial expressions and tone of voice. The message then reaches the
receiver – the audience – who decodes it and may decide to respond.
This transmission of messages is not always straightforward, however. While the receiver hears or sees the
message, a series of problems acting as ‘noise’, may limit their ability to understand or assimilate it. These
problems include the way the message is expressed, issues with the technology used, the receiver’s
inability to process the message and a lack of common ground (e.g. cultural factors such as values, beliefs
and language) between sender and receiver. In some cases, when a common background isn’t shared, the
people involved need to work hard to build a mutual understanding and, therefore, exchange several
messages or use a range of different media.
The following key principles of business communication will help you to get a message across to your
receiver. They are:
Understand your audience
It is important to understand and be aware of your audience. They are the people you talk and write to. You
should tailor the content and the mode of communication to suit their features. These include their interests
and beliefs, background, roles and personalities. Assuming that they will share your views and your
background knowledge may lead to misunderstandings; therefore it is important to prepare thoroughly
before communicating with people you have just met and who may be from a different context. This will
help you to not only achieve your present goal, but also to build or enhance your business relationships.
Strive for clarity
To be effective, your message must be clear. However, what is clear to you (the sender) may not be to the
receiver, due to your different backgrounds. This is why following a standard way to write a report, organise
a meeting or give a presentation, for example, can facilitate communication. Following standard
grammatical rules and terminology also helps to produce a message that is clear to your audience.
Understand the context of your communication
When communicating for business purposes, you need to be aware of the culture of your organisation and
that of each department or external organisation with which you communicate. Being mindful of the broader
multicultural context of your audience is essential too. Without this understanding, you will not be able to
establish common ground and understand each other.
Have a clear purpose in mind
The main reason to communicate in a business context is to achieve a specific purpose. Whether you want
to simply inform your audience or go about persuading them, make sure you know what you want them to
understand and do. Think also of the relationship you have with your audience and how you want this to
develop as a result of your communications. In some cases, building a good long-term relationship with a
colleague or business partner may be your main objective. Whatever your purpose, if it is clear to you,
you’ll have a better chance of making it clear to them.
Select the most appropriate medium
Communication can take place through a range of media such as meetings, emails, phone calls and
reports. For this to be effective, you need to select media that is appropriate to your purpose and your
context.
In the following steps, you will look at these principles in detail and learn how they can help you become an
effective business communicator

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Note on Means of Communication

Means of communication is known as the tools and technology which facilitate for exchanging information,
ideas and opinions between people and organizations of different places. The office uses a suitable means
of communication to pass a particular message. According to the availability and suitability of the means of
communication, the right means of communication is selected. Some of the examples of means of
communication are Telephone, telegram, fax, e- mail, the internet, and telex etc. The means of
communication under different modes are as follows:

Oral Communication
Oral communication is the process of exchanging ideas and information by word of mouth. It verbally
transmitted the ideas and information from one individual or group to another. The following are some of
the important means of oral communication:
1. Telephone
The telephone is the popular, modern and quickest means of oral communication which exchanges
information between two persons or offices with the help of wire connection.But now the message
can also be sent through the telephone in any part of the globe without any wire communication
system because of the satellite transmission system. The telephones calls are divided into two
board classes and that is short distance calls and long distance calls. The telephones call which is
made within the country is called STD (Subscriber trunk dialing) and the telephones call which is
made outside the country is called ISD (International subscriber dialing). Nepal Telecom Company
Ltd. is a company which is fully owned by the government. It was established in Nepal, in1970 B.S.
for distributing telephone lines. It distributes mobile phones to its customers. The government has
also allowed the private sector to distribute telephone lines and mobile phones. The telephone is
an important means of communication for all business, government offices, social institutions and
individuals.

2. Radio and Television

Radio and television are the mass means of communication which is quickest means in relaying
the message in wider geographical areas of the country.. Radio Nepal and Nepal television are the
enterprises owned by the government which is established in Nepal in 2007 and 2042 B.S.
respectively to provide mass communication service in the country. FM radio and television
stations are being established and operated in the private sector as well. The radio and television
help to advertise different products which help to increase sales volume.

3. Others
As per the requirement of the office to transfer information from one place to another place, there
are some other oral means of communication like loudspeaker, dictaphone and messenger etc.

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Written Communication
The communication which is performed through various written documents is called written communication.
It is word based that takes place in a written form. The important means of written communication are as
following:
1. Telegram
Telegram is a wireless system of communication which transmit a message to the distant place
without wire connection system. It is helpful to send an urgent and short message. According to the
length of the message and its urgency, the cost of the telegram is calculated. It is used for the
place where there is no telephone. The device used to send a message is called telegraph. The
message sent through telegraph inside the country is called telegram and outside the country is
called cablegram.

2. Fax
It is one of the popular electronic systems of the communication device by which text and graphics
from source can be transmitted and received in the same format from one place to another place. It
helps to send lengthy messages to a distant place comparatively at a lower cost.

3. Electronic mail (e- mail)

An e-mail is a text message sent to the computer with the help of telephone and an internet service
provider. There are also those companies like hotmail.com, yahoo.com, gmail.com and
rediffmail.com that provide free mail- box to its clients. E- Mail is the cheapest and the fastest
means of communication which is not always safe. Your email can be stolen or deleted by the
person you never know. here is the example of an email id info@kullabs.com, this is the email
address created by kullabs smart school. Hence, we can send a message to kullabs smart school
using this email address.

4. Internet
The Internet is a better means of communication which has become a global market. Many people
have transactions of millions of dollars every day. E- Commerce is only possible through the
internet. The Internet is the latest advanced technological that promote trade and industry, banking
education health, insurance and so on. It has changed the lifestyle of the people. It provides an
additional employment opportunity.

5. Letter
A letter is a written or printed communication on certain subject or problem. It exchanges ideas,
information, order, instruction, direction and guidelines from one department or office to another
department or office in written from. Every administrative work can be carried out smoothly and

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effectively through a letter.

6. Telex
Telex is an international system of telegraphy with printed messages transmitted and received by
teleprinters using the public telecommunications network. The message sent through telex can be
displayed in television monitor or in other display devices. It helps to write a message, send news,
transmitted time schedule of trains and displays airplane schedule. Telex is the cheapest and
fastest means of communication through a telephone line.

7. Postal service
The postal service is the cheapest, easiest, popular, convenient and reliable in spite of other
means of communication. It is the process of carrying and transferring letters, documents, parcels
and money from people and organizations of one place to other different places. It is one of the
oldest means of communication.
Symbolic communication
The way of exchanging information by using different symbols carrying definite meaning which is quite
familiar to all is called symbolic communication. The red, yellow and green traffic light of cross- roads,
period bell used by educational institutions, call bell used by executives of an office, the facial expression of
fear, anger, emotion, sorry , surprises reflected by human being, gestures, signs, and symbols are some of
the examples of symbolic communication.

Note on Correspondence

Correspondence is the means of written communication. It is the process of receiving and sending official
information between individuals and organizations of different places for achieving a definite objective. It
might also be in the form of a report, circular, telegram and electronic mails. The following is a definition of
correspondence:
"Correspondence can be defined as a means of communication in writing on subjects of mutual interest
either within the organization or with an outsider. " -S.P Arora
According to this definition, we say that correspondence is the process of exchanging written information
between individuals and organizations of different places for carrying out different official activities.
Need and Importance of Correspondence
The following are the main importance and needs of correspondence:
1. Exchanges information
Correspondence exchanges the information for all individuals, business organizations, government
offices, and social organization. It is the safest, cheapest, most convenient and popular means of
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exchanging information.

2. Enhances goodwill
Correspondance helps to enhance the goodwill of the organization as when there is effective letter
writing creates a positive impression upon the customers. This helps to develop positive attitude
and impression about the activities and product.

3. Determines responsibility
Correspondence is a written document which is signed by the writer which makes the receiver
responsible for doing the job in accordance with the letter.

4. Provides evidence
Correspondence can be useful for settling disputes and misunderstanding as it is a written record
which can be produced as an evidence for transactions performed and contact done.

5. Makes communication reliable

Correspondence is an authentic means of communication which formalize all the activities of an
organization is the most reliable means of communication. It is the most reliable means of
communication.

6. Provides written records

The correspondence provides written records for all the activities of an organization, the
transaction performed, decisions taken, contact and agreement did which can be useful for future
references.

7. Maintains public relation

Correspondence maintains and develops a warm relationship with customers, suppliers, financial
institutions and governmental bodies. It develops a positive attitude and promotes sales.
Types of Communication
People communicate with each other in a number of ways that depend upon the message and its context in
which it is being sent. Choice of communication channel and your style of communicating also affects
communication. So, there are variety of types of communication.
Types of communication based on the communication channels used are:
1. Verbal Communication
2. Nonverbal Communication
1. Verbal Communication
Verbal communication refers to the the form of communication in which message is transmitted verbally;
communication is done by word of mouth and a piece of writing. Objective of every communication is to
have people understand what we are trying to convey. In verbal communication remember the acronym
KISS(keep it short and simple).
When we talk to others, we assume that others understand what we are saying because we know what we
are saying. But this is not the case. usually people bring their own attitude, perception, emotions and
thoughts about the topic and hence creates barrier in delivering the right meaning.
So in order to deliver the right message, you must put yourself on the other side of the table and think from
your receiver’s point of view. Would he understand the message? how it would sound on the other side of
the table?
Verbal Communication is further divided into:
 Oral Communication
 Written Communication
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Oral Communication
In oral communication, Spoken words are used. It includes face-to-face conversations, speech, telephonic
conversation, video, radio, television, voice over internet. In oral communication, communication is
influence by pitch, volume, speed and clarity of speaking.
Advantages of Oral communication are:
It brings quick feedback.
In a face-to-face conversation, by reading facial expression and body language one can guess whether
he/she should trust what’s being said or not.
Disadvantage of oral communication
In face-to-face discussion, user is unable to deeply think about what he is delivering, so this can be counted
as a
Written Communication
In written communication, written signs or symbols are used to communicate. A written message may be
printed or hand written. In written communication message can be transmitted via email, letter, report,
memo etc. Message, in written communication, is influenced by the vocabulary & grammar used, writing
style, precision and clarity of the language used.
Written Communication is most common form of communication being used in business. So, it is
considered core among business skills.
Memos, reports, bulletins, job descriptions, employee manuals, and electronic mail are the types of written
communication used for internal communication. For communicating with external environment in writing,
electronic mail, Internet Web sites, letters, proposals, telegrams, faxes, postcards, contracts,
advertisements, brochures, and news releases are used.
Advantages of written communication includes:
Messages can be edited and revised many time before it is actually sent.
Written communication provide record for every message sent and can be saved for later study.
A written message enables receiver to fully understand it and send appropriate feedback.
Disadvantages of written communication includes:
Unlike oral communication, Written communication doesn’t bring instant feedback.
It take more time in composing a written message as compared to word-of-mouth. and number of people
struggles for writing ability.
2. Nonverbal Communication
Nonverbal communication is the sending or receiving of wordless messages. We can say that
communication other than oral and written, such as gesture, body language, posture, tone of
voice or facial expressions, is called nonverbal communication. Nonverbal communication is all about
the body language of speaker.
Nonverbal communication helps receiver in interpreting the message received. Often, nonverbal signals
reflects the situation more accurately than verbal messages. Sometimes nonverbal response
contradicts verbal communication and hence affect the effectiveness of message.
Nonverbal communication have the following three elements:
Appearance
Speaker: clothing, hairstyle, neatness, use of cosmetics
Surrounding: room size, lighting, decorations, furnishings
Body Language
facial expressions, gestures, postures
Sounds
Voice Tone, Volume, Speech rate
Types of Communication Based on Purpose and Style
Based on style and purpose, there are two main categories of communication and they both bears their
own characteristics. Communication types based on style and purpose are:
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1. Formal Communication
2. Informal Communication
1. Formal Communication
In formal communication, certain rules, conventions and principles are followed while communicating
message. Formal communication occurs in formal and official style. Usually professional settings,
corporate meetings, conferences undergoes in formal pattern.
In formal communication, use of slang and foul language is avoided and correct pronunciation is
required. Authority lines are needed to be followed in formal communication.
2. Informal Communication
Informal communication is done using channels that are in contrast with formal communication channels.
It’s just a casual talk. It is established for societal affiliations of members in an organization and face-to-face
discussions. It happens among friends and family. In informal communication use of slang words, foul
language is not restricted. Usually. informal communication is done orally and using gestures.
Informal communication, Unlike formal communication, doesn’t follow authority lines. In an
organization, it helps in finding out staff grievances as people express more when talking
informally. Informal communication helps in building relationships.

Types of Business Communication

There are two types of business communication in an organization:
 Internal Communication
 External Communication
1. Internal Communication
Communication within an organization is called “Internal Communication”. It includes all communication
within an organization. It may be informal, formal function, or department providing communication in
various forms to employees.
Effective internal communication is a vital mean of addressing organizational concerns. Good
communication may help to increase job satisfaction, safety, productivity, and profits and decrease
grievances and turnover.
Under Internal Business Communication types, there come:
 Upward Communication
Upward communication is the flow of information from subordinates to superiors, or from
employees to management. Without upward communication, management works in a
vacuum, not knowing if the messages have been received properly, or if other problems
exist in the organization. By definition, communication is a two-way affair. Yet for effective
two-way organizational communication to occur, it must begin from the bottom.
Upward Communication is a mean for the staff to:
 Exchange information
 Offer ideas
 Express enthusiasm
 Achieve job satisfaction
 Provide feedback
 Downward Communication
Information flowing from the top of the organizational management hierarchy and telling
people in the organization what is important (mission) and what is valued (policies).
Downward communication generally provides information – which allows a subordinate to
do something. For example, instructions on how to complete a task. Downward
communication comes after upward communications have been successfully established.
This type of communication is needed in an organization to:
 Transmit vital information
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 Give instructions
 Encourage 2-way discussion
 Announce decisions
 Seek cooperation
 Provide motivation
 Boost morale
 Increase efficiency
 Obtain feedback
Both Downward & Upward Communications are collectively called “Vertical Communication”
 Horizontal/Literal communication
Horizontal communication normally involves coordinating information, and allows people
with the same or similar rank in an organization to cooperate or collaborate.
Communication among employees at the same level is crucial for the accomplishment of
the assigned work.
Horizontal Communication is essential for:
 Solving problems
 Accomplishing tasks
 Improving teamwork
 Building goodwill
 Boosting efficiency
2. External Communication
Communication with people outside the company is called “external communication”. Supervisors
communicate with sources outside the organization, such as vendors and customers.
It leads to better:
 Sales volume
 Public credibility
 Operational efficiency
 Company profits
It should improve:
 Overall performance
 Public goodwill
 Corporate image
Ultimately, it helps to achieve:
 Organizational goals
 Customer satisfaction
Components of Communication
We know that communication is a process of transmitting and receiving messages (verbal and non-
verbal). Communication is a dialogue not a monologue. So, a communication is said to be effective only if
it brings the desired response from the receiver.
Communication consists of six components or elements.
Components of Communication
1. Context
2. Sender/Encoder
3. Message
4. Medium
5. Receiver/Decoder
6. Feedback
Context
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Every message (Oral or written), begins with context. Context is a very broad field that consists
different aspects. One aspect is country, culture and organization. Every organization, culture and country
communicate information in their own way.
Another aspect of context is external stimulus. The sources of external stimulus includes; meeting, letter,
memo, telephone call, fax, note, email and even a casual conversation. This external stimuli motivates you
to respond and this response may be oral or written.
Internal stimuli is another aspect of communication. Internal Stimuli includes; You opinion, attitude, likes,
dis-likes, emotions, experience, education and confidence. These all have multifaceted influence on the
way you communicate you ideas.
A sender can communicate his ideas effectively by considering all aspects of context mentioned above.
Sender/Encoder
Encoder is the person who sends message. In oral communication the encoder is speaker, and in
written communication writer is the encoder. An encoder uses combination of symbols, words, graphs and
pictures understandable by the receiver, to best convey his message in order to achieve his desired
response.
Message
Message is the information that is exchanged between sender and receiver. The first task is to decide
what you want to communicate and what would be the content of your message; what are the main points
of your message and what other information to include. The central idea of the message must be clear.
While writing the message, encoder should keep in mind all aspects of context and the receiver (How he
will interpret the message).
Messages can be intentional and unintentional.
Medium
Medium is the channel through which encoder will communicate his message. How the message
gets there. Your medium to send a message, may be print, electronic, or sound. Medium may be a person
as postman. The choice of medium totally depends on the nature of you message and contextual factors
discussed above. Choice of medium is also influence by the relationship between the sender and receiver.
The oral medium, to convey your message, is effective when your message is urgent, personal or when
immediate feedback is desired. While, when your message is ling, technical and needs to be documented,
then written medium should be preferred that is formal in nature. These guidelines may change while
communicating internationally where complex situations are dealt orally and communicated in writing later
on.
Receiver/Decoder
The person to whom the message is being sent is called ‘receiver’/’decoder’. Receiver may be a listener or
a reader depending on the choice of medium by sender to transmit the message.Receiver is also
influenced by the context, internal and external stimuli.
Receiver is the person who interprets the message, so higher the chances are of mis-communication
because of receivers perception, opinion, attitude and personality. There will be minor deviation in
transmitting the exact idea only if your receiver is educated and have communication skills.
Feedback
Response or reaction of the receiver, to a message, is called ‘feedback’. Feedback may be written or oral
message, an action or simply, silence may also be a feedback to a message.
Feedback is the most important component of communication in business. Communication is said to
be effective only when it receives some feedback. Feedback, actually, completes the loop of
communication.

What is audio visual communication?

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In a very simple definition, AV communication is the use of a medium which combines audio and visual
content with the purpose of transmitting a certain information to the audience.
All sorts of videos (movies, YouTube videos, etc…) transmit a certain message, no matter how relevant,
big/small, good/bad it is, you receive some kind of information through them.
And that’s a beautiful and exciting part of communication! Combining sound with image gives you such a
range of messages you can transmit! Just imagine how it would feel if you were seeing that Titanic scene
where Jack holds Rose on the prow of the ship, and throughout, clown music was playing! All of the power
and emotional charge the scene had would be destroyed, and a whole new message would be transmitted
to the audience!
Audiovisual communication is a beautiful and super fertile field of investigation and testing. Through it you
can convey just about all kinds of messages, since it is the one of the most complete areas of
communication!

Types of Business Letters

Types of Business Letters
Business letters can be written for almost any reason one can think of. There are letters that you, as an
individual, originate and write to a company. There are many letters exchanged between businesses on a
daily basis.
The business letter stands as a very good hard copy for businesses. Much work is done digitally these
days, but the old-fashioned proper business letter cannot be replaced. It shows a personal touch and it
provides the hard evidence of the document that has been written.
Digital copies of documents can be exchanged over cyberspace; however, in the end, even those digital
copies will be printed for later use. So, if you can learn how to prepare a proper business letter, you will be
a much valued employee.

What are the types of business letters possible?

What are the types of business letters possible?
 Sales Letter
 Complaint Letter
 Order Letter
 Inquiry Letter
 Letter of Recommendation
 Cover Letter
 Letter of Resignation
 Letter of Congratulations
 Letter (note) of Thanks
All of these letters will follow a basic letter writing template.

Sales Letter

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This letter is one of the common types of business letters. This sales letter has one purpose - to generate
sales –
 To have the reader look upon the opportunity with something special
 To have the reader look upon the opportunity as something he cannot miss.
 So, he will follow up and complete the sale.

At least, the reader will (a) follow up and (b) contact the writer to pursue the possibility of following through
on the sale.

Complaint Letter
The complaint letter is one of the more common types of business letters. It can be fun to write the
complaint letter if the situation is not a very serious one. The template is a very easy one.
Always write for the reader and consider the reader.

Order Letter
Order Letter
With an order letter, it is important that you follow the basic letter template as follows:
 A short opening that tells the purpose of the letter
 Details in the middle paragraph(s)
 A short closing that begins with a direct request for action and ends with a goodwill comment that
highlights the benefits to the reader
Make the important information jump from the page. You can achieve that goal with a proper and easy-to-
read format that is simple and clear. Proofread to ensure that you have all the details included and that
they are all accurate!

Inquiry Letter

The inquiry letter is one of the more common types of business letters.
This letter follows the same basic letter template as follows:
 A short opening that tells the purpose of the letter
 Details in the middle paragraph(s)
 A short closing that begins with a direct request for action and ends with a goodwill comment that
highlights the benefits to the reader
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Begin with the short opening that tells the purpose of the letter. Clearly focus the reader if there are dates
involved. Leave the details out of the opening so that you can keep the opening short. Lead into the main
body of the document.
If you have a number of questions, include them all in a short bulleted-list format. Keep the list to about 6
points maximum for easy reading. Keep the points as short as possible. Ensure that all points in the list
are the same grammatical structure.
Close with the short closing paragraph that follows the guidelines above.
Here is a sample of what the main body may contain:

What to note about the above:

 The short opening tells the purpose. Because you're asking a "favour" of the reader, it's a good
idea to add a sincere compliment - and that compliment is included.
 The bulleted-point list provides the questions you would like answered. A short statement
introduces the list.
 The closing is short and begins with a definite request for action. It ends with a short goodwill
statement that again highlights benefits to the reader.

Recommendation Letter
Letter of Recommendation
When you are asked to recommend a friend or a colleague for a job, you have to keep in mind two things –
first, the reader – as always – and second, your friend or colleague.

What will be the goals of each individual?

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Follow the basic letter template as follows:

 A short opening that tells the purpose of the letter
 Details in the middle paragraph(s)
 A short closing that begins with a direct request for action and ends with a goodwill comment that
highlights the benefits to the reader
This letter may not be the most common of the types of business letters, but it is certainly found frequently.

Cover Letter

Cover Letter
The cover letter is one of the most common types of business letters. The cover letter is simply a letter,
generally of one page in length, that accompanies another document.
The purpose is to introduce the “other document” to the reader and perhaps to tell a little about that “other
document.”

What other documents might you send to someone that would require a cover letter? Any of these would
be a chance to demonstrate an excellent business letter format.
Follow the basic letter template as follows:
 A short opening that tells the purpose of the letter
 Details in the middle paragraph(s)
 A short closing that begins with a direct request for action and ends with a goodwill comment that
highlights the benefits to the reader

Resignation Letter
Letter of Resignation
The resignation letter is perhaps one of the more common types of business letters. This type of letter
could be something that you’ve wanted to write for a long time, particularly if you have not enjoyed your
job.

You have to consider the consequences of everything you do. If you are leaving the job and hope to
maintain a friendly and happy relationship with your employer, you must consider your words carefully.
Follow the basic letter template as follows:
 A short opening that tells the purpose of the letter
 Details in the middle paragraph(s)
 A short closing that begins with a direct request for action and ends with a goodwill comment that
highlights the benefits to the reader

Congratulatory Letter

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Letter of Congratulations
The congratulatory letter is a fun one to write because you are happy when you write it. You are truly
happy for the recipient – for the achievement or the success earned.
Try to show that enthusiasm and that happiness in your well-chosen words for the congratulatory letter.
Follow the basic letter template as follows:
 A short opening that tells the purpose of the letter
 Details in the middle paragraph(s)
 A short closing that begins with a direct request for action and ends with a goodwill comment that
highlights the benefits to the reader

Thank You Letter (note)

Letter of Thanks
Thank you notes. Writing thank you notes is something we all have to do. Many of us should do it more
often! And if you've never written a thank you note, then there is no better time than the present to start!
The more often you do it, the more highly others will think of you.
It's always such a lovely thing to receive a thank you note in the mail.
Follow the basic letter template as follows:
 A short opening that tells the purpose of the letter
 Details in the middle paragraph(s)
 A short closing that begins with a direct request for action and ends with a goodwill comment that
highlights the benefits to the reader

Need for a Business Letter

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In business, letter writing is a major thrust area of communication. The modern goal of nations for a
free global trade and the need to cut across national, linguistic and cultural barriers to promote
trade have made the letter an important business tool.
A business letter serves certain important functions :
1. A business letter acts as a representative of the organization. It is an inexpensive substitute for a
personal visit. i
2. It seeks to provide information on subjects connected with business.
3. A business letter provides valuable evidence for a transaction and thus serves a legal purpose.
4. A business letter becomes a reference material to future transactions between organizations and
individuals.
5. A business letter promotes and sustains goodwill.
6. A business letter motivates all the people involved in a business to a higher and better level of
performance.
7. A business letter enlarges and enhances the business. We can elaborate each of the functions
thus.
Every organization has to continuously promote and expand its business. All information on its
product and service gets updated through a business letter sent to customers and clients. It is a
micro-level substitute even for advertisements. Agents and retailers in turn pass on the information
to clientele spread over a large area. It promotes goodwill. New business contacts are forged and
the already existing ones get reinforced. Goodwill promotes the image of an organization and gives
scope for fair, ethical business values. Letters sent from an organization and received by it when
classified and filed serve the purpose of reference. Precedents are available to guide future actions
from files of outgoing and incoming letters. It has great archival value in helping to draw a graph of
the growth or a slump in trade and business. Business letters have legal validity. In times of dispute
and doubt they can provide substantial evidence to solve them. Many issues can be sorted out if
mutual positions taken by transacting organizations are available through letters written by them.

Business Letter-Principles,Nature,Functions,Essential Qualities,Elements of Structure,Forms of

Layout,Style of Presentation

Business Letter
It is a letter written in formal language,use when writing from on e-business organization to
another,or for correspondence between such organizations and their customers,clients and other
external parties.

They are used for different purposes like placing orders,making inquiries,making credit
request,requesting claims and adjustment,to apologize for wrong or simply to convey goodwill
etc. Style of letter depends on the relationship between the parties concerned.

Principles of Letter Writing/Business Letter

The art of business writing is the need of twenty first century.Every business message should be
clear and understandable.Message to person outside the company can have a far reaching effect on
its reputation and ultimate success.A right letter creates desire for a product or service,helps in
profitable sale,encourages collections,motivates performance and in general creates
goodwill.Correct use of grammer and fluent expression clarify the business writing.A good business
must have the following:

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1.Clarity

2. Correctness

3. Conciseness

4. Courtesy

5. Consideration

6. Completeness

7. Concreteness

8. Coherence

9. Creation of good impression

1. Clarity

Clarity demands that the business message should be correct, concise, complete, concrete and with
consideration. A correct message written in simple and ordinary language is always natural and
appreciable.Clarity of thought and expression creates interest and attracts the reader’s attention.

2. Correctness

While writing a business letter, the principle of correctness should be followed. The writer must
ensure correctness in his tone, format and information that he provides in the letter. The facts
mentioned must be true and correct. Grammatical structures and spellings should be
correct.Sometimes an incorrect letter irritates the reader and they react negatively.Incorrect written
letter causes not only internal and external problems but also some sort of legal difficulties for the
business organization.

3. Conciseness

Use only necessary details and short sentences. Be direct and avoid long redundant
expressions.Try to keep it short and simple.The ideal length of a business report or a business letter
depends upon the name and nature of message.But conciseness should not be achieved at the cost
of accuracy and clarity.

4. Courtesy

Be courteous and polite. Avoid making negative statements and an accusatory tone accusing the
recipient. eg. Instead of writing, “You did not send the cheque”, use “The cheque wasn’t enclosed.”
Even if you are writing a complaint letter, your tone must be polite and courteous at all times.It also
promotes respect,builds confidence and increases mutual trust.No amount of money can promote
goodwill as courtesy can.

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5. Consideration

Its important to visualize your reader’s circumstances, problems, emotions, their desires etc. and
indicate that you understand these by using your words with care. If you are writing a sales letter,
show the recipient how the product would be beneficial for them. When you write with consideration,
you generate goodwill.The more consideration the writer gives to the reader,the greater is the
chance of positive response.

6. Completeness

In order to achieve conciseness do not loose completeness.In incomplete message,its objective and
purpose cannot get the attention of the reader because it does not give necessary
information.Therefore the writet should not leave any vital information unattended.

7. Concreteness

The business writing should be specific, definite, unambiguous and vivid rather than vague &
general.A good business letter always provides concrete information (specific information).

Eg. Instead of saying,”I expect the consignment/order to reach me at the earliest”, use “I expect the
order to be delivered to me by the 21st of March 2016.
8. Coherence

A good business letter must be coherent.This means that every sentence must be related to
previous one.Similarly the paragraph of the letter should be related to each other.Coherence always
helps the reader to understand your point of view.If a letter is not coherent,its sentences will be
jumbled and jumpy.So writer should join the sentence with suitable conjunctions.

9.Creation of good impression

The first thing that make an impression is “the appearance”.This is the case with the business letter
also.It is its external appearance which impresses the reader.The writer of a business letter must
always use a high quality white paper.He must never use a paper of low quality like newsprint.This
will not give it a good appearance.The body of the letter must be written carefully with proper
margins on left and write side.The letter should be written neatly so it will make a good impression
on reader.

Nature of Business Letter

Of all forms of written communication, letters are the most common, the most frequent, and the most
personal means of communication. A letter is a written message sent to an individual or a group of people
.It may either be a business letter or a social letter.
Business letter
Is used to transact business.Its tone and style should be formal and business like.
Social Letter
Is a friendly letter intended to convey personal messages to the people close to the writer.
Functions of Letter
Business letters secure, promote and maintain business without complications, Business letters serve us a
reference for the future. Every organization should have to classify its outgoing mail and incoming mail and
file them classified on the basis of their subject matter in a chronological sequence. Business letters serve
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to maintain the correct information of the organization in the perception of the receiver. Business letters
establish and maintain contacts over a wide area truly enlarging the scope and extent of business.
Business letters can be used as legal documents in disputes. All business letters promote goodwill and
enhance the prestige and the image of the organization.
Some of the useful functions these letters perform are:
1. Keeping records and maintaining references.
Letter is the record of what was committed to a supplier or customer or information sent to a government
department.If any time there is need to check back what the other agency had agreed to do it is available
on record and reference can be made to that particular letter.Business letters provide valuable data about
earlier policies, transactions and all other activities of the organisation. Modern business cannot depend on
memory as in olden days. Letters are ready references if they are available. New policies can be evolved
by studying the earlier ones. It is not only essential to maintain good correspondence but also more
essential to make them be available in the files.
2. An Authoritative Proof
A business letter also serves the purpose of evidence. A written commitment binds the concerned parties to
obey to the text of writing. A letter signed by a responsible person acts as an authoritative proof of what is
said in it. It can even be treated as a valid document that can be produced as evidence in a court of law if
any dispute arises.
3.Maintain contacts where physical contact is not possible
It is very difficult to send business representatives to all the places. But a letter can be sent any place at
any distance. Sometimes executives, professionals, politicians, etc. are difficult to be approached
personally. But a letter can find easy access to anybody. Thus a business letter helps to widen the area of
business operations and also the access to a large number of people.
4. Exchange Business Information
The prime objective of a business letter is to exchange business related information between the parties
involved. Most of the time business people send letters to their counter-parties containing various business
information.
5. Building and Maintaining Business Relation
Business letters help to build and maintain business relation among various parties like manufacturers,
distributors, intermediaries, support services and consumers.
6. Maintaining good public relations
The companies often want to stay in touch organisations and people even if they do not have direct
business dealings with them.This generate awareness and goodwill for their products and services.Heads
of the organisations communicate with such people and with eminent people and respected organisations
through formal letters.
7. Legal Functions
Business letters can provide evidence in legal disputes, if any, that occur in a transaction. They are useful
as legal documents in quotations and offers.
8. Making a Lasting Impression:
In case of oral communication, the impact of any message is felt mainly during the time of hearing. And as
soon as the next oral communication takes place, the effect of the previous one is reduced. But a letter
makes a lasting impression on the readers’ mind as it stays with them and works effectively every time it is
read.
Essential Qualities of a Good Business Letter
We may classify the qualities of a good business letter as:
1. Inner Qualities; and
2. Outer Qualities

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1. Inner Qualities – The inner qualities of a good business letter refer to the quality of language, its
presentation, etc. These facilitate quick processing of the request and that leads to prompt action. Let us
discuss the various inner qualities of a good business letter.
(i) Simplicity – Simple and easy language should be used for writing business letters. Difficult words should
be strictly avoided, as one cannot expect the reader to refer to the dictionary every time while reading letter.
(ii) Clarity – The language should be clear, so that the receive will understand the Business Studies 158
message immediately, easily and correctly. Ambiguous language creates confusion. The letter will serve
the purpose if the receiver understands it in the same manner in which it is intended by the sender.
(iii) Accuracy – The statements written in the letter should be accurate to, the best of the sender’s
knowledge. Accuracy demands that there are no errors in the usage of language – in grammar, spellings,
punctuations etc. An accurate letter is always appreciated.
(iv) Completeness – A complete letter is one that provides all necessary information to the users. For
example, while sending an order we should mention the desirable features of the goods, i.e., their quality,
shape, colour, design, quantity, date of delivery, mode of transportation, etc.
(v) Relevance – The letter should contain only essential information. Irrelevant information should not be
mentioned while sending any business correspondence.
(vi) Courtesy – Courtesy wins the heart of the reader. In business letters, courtesy can be shown/expressed
by using words like please, thank you, etc.
(vii) Neatness – A neat letter is always impressive. A letter either handwritten or typed, should be neat and
attractive in appearance. Overwriting and cuttings should be avoided.
2. Outer Qualities – The outer qualities of a good business letter refers to the appearance of the letter. It
includes the quality of paper used, colour of the paper, size of the paper etc. Good quality paper gives a
favourable impression in the mind of the reader. It also helps in documenting the letters properly. Let us
discuss the various outer qualities of a good business letter.
(i) Quality of paper – The paper used should be in accordance with the economic status of the firm. Now-a-
days the cost of the paper is very high. Therefore, good paper should be used for original copy and
ordinary paper may be used for duplicate copy.
(ii) Colour of the Paper – It is better to use different colours for different types of letters, so that the receiver
will identify the letters quickly and prompt action can be taken.
(iii) Size of the paper – Standard size paper (A4) should be used while writing business letters. The size of
the paper should be in accordance with the envelopes available in the market.
(iv) Folding of letter- The letter should be folded properly and uniformly. Care should be taken to give
minimum folds to the letter so that it will fit the size of the envelope. If window envelope is used then folding
should be done in such a way that the address of the receiver is clearly visible through the transparent part
of the envelope.
(v) Envelope – The size and quality of the envelope also need special attention. The size of the letter
should fit the size of the letters. The business firms use different types of envelopes i.e., ordinary envelope,
window envelope, laminated envelope etc. In window envelope there is no need to write the address of the
receiver separately on the envelope. It is clearly visible through the transparent part on the face of the
envelope, which may be called as window. In laminated envelope a thin plastic sheet or cloth is pasted on
the inner side that gives extra protection to letters from being damaged during transit.
Elements of Structure of Business Letter/Layout of Business Letter
Business letter is one which appears well, is written well and communicated well. It includes several parts
and the parts are arranged in sequence to make it meaningful. Arranging various parts in proper sequence
in letter is called structure of business letter. The structure is heading, opening, body and closing.
The first impression a business letter makes on its reader often determines whether that letter will actually
be read, and it also may determine the reader’s reaction to the contents of the letter. Therefore, business
letter writers must, in addition to composing well-written sentences and paragraphs, be able to

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communicate their thoughts in efficient, appropriate letter form. A well-dressed executive projects a quality
image. A well-dressed letter also projects a quality image.
The following elements usually constitute the structure of a business letter:
1. Heading
2. Date
3. Reference
4. Inside address
5. Attention
6. Saluation
7. Subject
8. Body
9. Complimentary close
10. Signature
11. Identification marks
12. Enclosure
1. Heading
Heading covers the address of the sender and of the recipient.The address contains complete address
along with telephone number,fax,email,web-site below the name of the company.Logo if any is placed
suitably.Since companies have to write large number of letters,the letter heads are printed.The letter head
serves the purpose of providing the address and other details for correspondence as alo it act as an
advertisement.
2. Date
Date is generally written 2 spaces below the head address in the right hand corner. Some letterheads
contain a printed line indicating where the date should be typed,in others the typist chooses the right place
for it. The date,month and year should be indicated in the upper right corner as: 2 September,20016 or
September 2, 2016. Both methods are acceptable.Perhaps the first method is preferable.It proceeds in the
logical order of day,month and year.
3. Reference
It is written on the left side of the paper in the same line as the date.Reference number makes it easier to
file the letter at the right place and connect it with earlier correspondence for sending replies.Extreme care
should be taken to mention the reference numbers a exactly what was written in the correspondence of the
other ther party,no changes in punctuation,small or capital letters etc. should be made to avoid ambiguity.
4. Inside address
Complete address of the person or company to which the letter have to go,must be written carefully
containing all details so that the letter reaches the right person.It is normally written two spaces below the
date and two spaces above the salutation,sometimes this inside address may be used as outside address
also,as in the window envelope,so it is important that the address here is given correctly and completely.
5. Attention
An attention line allows you to send your message officially to an organization but to direct it to a specific
individual, officer, or department. However, if you know an individual’s complete name, it is always better to
use it as the first line of the inside address and avoid an attention line.
6. Salutation
The salutation in a letter is an essential ingredient.It is lie greeting a person when you meet him.It is placed
two spaces below the attention line or if there is no such line then two spces below the nside address.The
choice of salutation depends upon the personal relationship between the writer and the reader,and on the
form of inside address.If the recipient of the letter is a man or women,write Dear Sir or Dear Mam
respectively.If letter is addressed to a business firm and not a particular official,the greetings in Dear Sirs.
7. Subject

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Subjects are common in business letters.The purpose of the subject is to let the reader know immediately
what the letter is about.The word subject should be followed with a colon.For emphasis,capitalize or
underline the subject.
8. Body or Substance of the Letter.
It is the main part of the letter as it contains the writer wants the rader or receiver of the letter to get.Special
attention should be paid in organizing and arranging the contents so that the desired impact on the person
who is to take action.The body is written two spaces below the salutation or subject line as the case may.
9. The complementary close
It is a form of saying goodbye or a courteous way to take leave from the reader.It is a polite way of ending a
letter.It is typed two spaces below the last line of the body of the letter.The close must agree with the
salutation as shown below:
Yours faithfully
OR
Yours obediently
Or
Your respectfully
10. Signature
It is the signed name of the writer of the letter and is placed two spaces below the complementary
closure.The signatures are put just above the name and designation which are typed.The initials and
surname are typed and no “Mr” or “Miss” is used.The signature has lot of importance as it is the signatory
of the letter who is held responsible for the contents in the letter.
11. Identification Marks or Reference Initials
These marks are put in the left margin to identify the typist of the letter,one or two spaces below the
signature.For example,if the letter has been dictated by Mr. M.L .Kapoor and typed by Mrs.Geeta
Sharma,the identification marks may be put in either of the following ways:
M.L.K/GS
M.L.K:GS
12. Enclosure
The enclosures is the material that has been enclosed with the letter and is written on the left side below
the signature.It is marked either as “Enc.” Or “Encl”.
If however the documents attached are important they are specified as:
Encls: 1. Agreement dated 12 April,2001.
2.Cheque No. P4637 of 12 April,2001.

Forms of Layout
1.Stationary
For making a favourable initial impression it is necessary to choose good quality paper.The first page of a
business letter is typed on letterhead stationary,which shows company information printed at the
top.Subsequent pages of a business letter and all pages of a personal business letter are typed on good
quality plain paper.Most letters are typed on standard size stationary,81/2 by 11 inches.Generally white
paper is the standard colour for practically any type of business organization.Some firms use tinted paper
to suit their activity.
2. Margins
Margins in a letter give a neat appearance and add to its attractiveness.Generally leave an inch and a half
or two inches on the left hand and at the top (if there is no letterhead),one to one and a half inches on the
right and at the bottom.
3. Typing
Most business letters are typed.it saves time and gives tidy appearance to the letter.
4. Punctuation
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There are three recognized styles of punctuation for the parts of a letter-open punctuation,closed
punctuation and mixed punctuation.
i. Closed punctuation
In conventional punctuation the period follows the date line,the end line of inside address and the
signature,while all preceding lines in the inside address,salutation,complimentary close are set off by
commas.
For Example:
Date : 11 April,2007
Inside Address : Dr. M.L. Kapoor
Principal,
XYZ University,
Solan,
Himachal Pradesh
Salutation : Dear Sharma,
Complimentary Close: Yours Sincerely.
ii. Open Punctuation
As the name indicates,no punctuation marks are used in any part of the letter except in the body in which
the usual punctuation marks are omitted.
iii. Mixed Punctuation
In it a comma is used after the date line,street name(if any),the salutation,and a complimentary close and a
period follows the last line of the inside address.
Of all the three styles mixed punctuation style is most common.
Styles of Presentation
There are several styles which are used for writing business letters but certain forms are widely used in
today’s correspondence.
1. The Block Style
2. The Semi-Block Style
3. The Complete Block Style
4. The Indented Style
1. The Block Style
In this style of layout the date line, complementary signature,name of the writer,his designation etc.
everything is aligned with the right margin.All others like reference number,inside
address,salutation,enclosures are aligned with the left margin.It uses the open form of punctuation what is
to say no punctuation marks are necessary except in the body of the letter.
2. Semi-Block Style
This form is a compromise between the block form and indented.It employs the block form with open
punctuation.It differs from the block form only in the five to ten spaces or paragraphs.It combines the
advantages of the block form and indented form.The block form makes for fast typing and paragraphs
indention makes for ease in reading.The combination produces an attractive appearance that pleases
some business firms.
3. Full-Block Form/Complete Block style
Another variation of the block form is the complete or full block.In this form,all the parts of a letter begin
from the left margin.All lines of all the parts like date,salutation,subject etc. flush with the left margins.It is
easier to type since the typist does not have to adjust different margins for different parts of letter.This form
concentrates too much on the left margin and sometimes the margin appears to be crowded and
unbalanced.
4. Indented Form

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It is perhaps one of the oldest forms of a business letter.In this form,each new element is indented two to
four spaces.In this form generally closed punctuation is used.Naturally the indented form requires more
time for typing because of the layout.

Qualities of a Good Letter

A letter is written with a clear objective. The effectiveness of letter determines the achievement of such
objective. An effective letter develops a positive impression and encourages the receiver to do the jobs in
the writer wants. The effective letter is one which possesses following qualities:
 Clearness
The matter of the letter must be clear to the reader. The letter must have simple, short and sweet
words and sentence so that it will be clearly understood by the reader. If the word I not familiar then
the meaning is not clear. So, the letter must be clear and understanding.

 Correctness
The language used must be correct. The letter containing important information, messages should
be accurate with no spelling errors. There must be a proper use of grammar, figures and data.So,
the letter must be correct about facts and figures and statement to be a good letter.

 Completeness
The letter must have all the information which a reader wants. Incomplete communication system
doesn’t provide the meaning of information ideas and other facts and incomplete organization and
its department. Hence, the letter must be complete so that it doesn't add confusion, waste time,
money and efforts.

 Conciseness
The letter must contain only necessary discussion it should not be more than what makes the
meaning of the letter clear to the reader. The letter must be short and sweet. Lengthy sentences
and repetitions must be avoided. Words must be carefully chosen. So, the letter must have the
quality of conciseness.

 Attractiveness
The appearance of the letter also determines the quality of the letter. The letter must be attractive.
The letter must have proper designs and should be computer typed and printed on letter pad with a
letter head. The letter must be folded properly and should be put in a right sized enveloped to
make it attractive.

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 Coherence
The letter must include the matters of the letter in a sequential manner. One information should be
followed by other information in a sequence and one paragraph should be supported by another
paragraph. So, the letter must be a coherence to be a good letter.

 Courtesy
A letter must show politeness, positive attitude and friendly behaviour towards the reader. A
courtesy letter helps to increase goodwill and creates a warm relationship. So, the letter must give
respect to the feeling of the reader.

 Creativeness
The effectiveness of a letter depends on to a great extent on its coherence or writer should not try
to copy the phrases, sentences, and style from others. Only creative and original writing helps in
impressing and convincing the receiver.

 Effectiveness
When all the above qualities are fulfilled then the letter is regarded as an effective letter. An
effective letter achieves the objective properly. The letter must be written in accordance with the
rule then it will be effective.

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MODULE 2

What is Inquiry Letter in Business Communication?

What is Inquiry Letter -Letter of inquiry is one of the most important types of business letters. When a
buyer wishes to get some information about the quantity, price, availability etc of goods to be bought or
about the terms of sale, payment etc he writes a letter of inquiry to the seller. Definition of inquiry letter,

Meaning of inquiry letter, Inquiry letter definition.

What is Inquiry Letter

According to Morris Philip and Others, “The letter that seeks information concerning the goods and
services from a business concern is called an inquiry letter.”
Quible and Others said, “Letter of inquiry is a type of business message that asks the recipient for
information or assistance.”
In the opinion of R. V. Lesikar and Others, “Letters that asks questions or information about anything is
called inquiry letter.” Business Communication
According to Gartside, “An inquiry letter asks information like catalogue, quotation, sample and cost of a
product form a seller in a concise and clear way.”

So, we can define the letter of inquiry as a letter sent to the seller from the prospective buyer asking
information about the price, quantity, availability etc of a product and the terms of sale, terms of payment,
service etc.
Objectives of Inquiry Letter in Business Communication
Every letter has some certain objectives or motives and inquiry letter is not an exception. It is written on
different occasions for different reason. Inquiry letter is written in order to carry out one of the following
objectives bellow-
 To get the price quotation of specific commodities
 To ask for catalog
 To know payment terms
 To know the past records of job applicant
 To know the credit worthiness of a firm or a person
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 To ask for folders

 To get recommendation from former employer
 To know the financial strength of a firm or a person
 To know the business reputation of a firm
 To know the transportation facility provided by the firm
 To obtain information about social status of a person or a firm
 To evaluate the performance of a person or a firm
 To learn about the quality of a product
 To know the availability of an item
 To make request for sample etc.
Types of Inquiries Letter in Business Communication
Inquiries may be of different types based on the objective, information sought and the initiatives taken.
There are generally four types of inquires letter-solicited inquiry, unsolicited inquiry, inquiry for some favor
and routine inquiry letter. These are discussed below-
 Solicited Inquiry: An inquiry made in response to the sellers advertisement and publicity is called
a solicited inquiry. Actually it is a response by the buyer to the advertisement or publicity of a seller.
 Unsolicited Inquiry: An inquiry made at the buyer’s own initiative is called unsolicited inquiry. This
type of inquiry is made when a buyer wants to know anything from the seller.
 Inquiry for some Favor: An inquiry made not about goods but some other information like special
price or favorable terms is called inquiry for some favor.
 Routine Inquiry: An inquiry made by an old or regular buyer in the usual course of action is called
routine inquiry. Most of the business inquires fall in this category.
So, we find that there are different types of inquires, whatever the type is the bottom line of success of an
inquiry depends upon how it is written.

Quotation - Meaning, Contents and Types of Quotations

What is Quotation? Meaning of Quotation ↓
A Quotation is a business offer made by a seller to an interested buyer to sell certain goods at specific
prices and on certain terms and conditions.
It is a reply by the seller to the prospective buyer. Hence, the quotation letter should be prepared carefully
by the seller. It should contain information on all points mentioned in the inquiry letter.
The seller should send the best possible quotation so that it induces the buyer to place an order because it
is the basis on which the interested buyer decides whether to buy or not.
The quotation must be clear, courteous and concise.

Contents of Quotation ↓

The quotation may contain the following points :-

1. Details about quality of goods offered for sale.
2. Details about quantity of goods offered for sale.
3. Type of quotation.
4. Sale price per unit of the commodity.
5. Term of payment like Cash or Credit, trade discount, cash discount and other allowances if any.
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6. Time, mode and place of delivery.

7. Details of duties, Octroi, etc., payable.
8. Details of packing, labelling, insurance, etc.
9. Net price payable.
10. E and O.E. (errors and omissions expected)

Kinds / Types of Quotations ↓

Following are the main kinds or types of quotations :-

1. Loco Price Quotation

Loco means 'On the spot'. Therefore, the loco price refers to the cost of goods at the factory or godown of
the seller. Once the goods are out of the sellers' factory or warehouse, all the expenses for carrying the
goods from the seller's warehouse to the buyer's place are to be borne by the buyer. This is the lowest
price quotation.

2. Station Price Quotation

Under this quotation, seller's responsibility is to send the goods to the nearest railway station from his
warehouse. It includes the cost of carriage of goods to the station. Since he delivers the goods upto the
station, he charges a little higher price. All further expenses on goods such as freight, insurance, etc. have
to be borne by the buyer.

3. Free On Rail (FOR) Price Quotation

Free On Rail (FOR) price quotation covers the expenses of carrying the goods to the railway station
nearest to seller plus the loading expenses, freight and unloading expenses are to be borne by the buyer.
FOR price quotation = Station price quotation + Loading Charges

4. Cost and Freight (C & F) Price Quotation

Cost and Freight (C & F) price quotation includes the cost of the goods and all the expenses like carriage to
the seller's nearest station, dock and loading charges and freight. Expenses like insurance, unloading and
cartage to the buyer's place are to be borne by the buyer.
C & F price quotation = FOR price quotation + Railway Freight.

5. Cost Insurance and Freight (CIF) Price Quotation

There is a risk involved in transporting goods and this risk is covered by insurance. Generally, the buyer
pays insurance charges but if CIF quotation is mentioned then the seller pays for the insurance charges
along with other previous mentioned prices. So, the price includes cost of the goods plus carriage upto
seller's nearest station, loading, freight and insurance charges.
CIF price quotation = C & F price quotation + Insurance.

6. Franco Price Quotation

Franco price quotation is the highest price quotation. Inspite of being the highest quotation, buyers prefer
this quotation because under this price, the goods are delivered to the buyers at their door-step. The buyer
is relieved from the tension of transporting goods from the seller's warehouse to his own warehouse.
Franco price quotation = All expenses upto the buyer's warehouse.

7. Free Alongside Ship (FAS) Price Quotation

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Free Alongside Ship (FAS) price quotation includes the cost of the goods and all the expenses to deliver
the goods at the dock nearest to the seller. The buyer has to bear the expenses of loading, insurance,
freight and the customs duty, etc., in addition to the cost of goods. Though this quotation is used in some
countries, it is not in use in India.
FAS price quotation = Loco price quotation + cost of carriage of goods upto the harbour nearest to the
seller.

8. Free On Board (FOB) Price Quotation

Free On Board (FOB) price quotation is similar to FOR in inland trade. This is normally used in foreign
trade. Under FOB quotation, the seller quotes a price which includes all the expenses incurred untill the
goods are actually delivered on board the ship at the port of shipment.
FOB price quotation = cost of goods + expenses upto goods on ship's board.

9. Cash With Order (CWO) Price Quotation

In Cash With Order (CWO) price quotation, the buyer has to send cash along with the order, otherwise, the
order may not be executed.

10. Cash On Delivery (COD) Price Quotation

In Cash On Delivery (COD) price quotation, the buyer has to pay cash after receiving the delivery of the
goods ordered by him.

Sales Correspondence

You have seen salesmen showing products launched by their company. They may also show you the new
offers by the company. Sometimes you receive some emails or letters regarding some offers and discounts
from some companies. You can easily notice all these during festive seasons. These types of letters or
notices come under the category of sales correspondence. A letter from an organization to a supplier
regarding the demand of the supply is an example of a sales letter. In this section, we are going to learn
more about sales letters.

Sales Correspondence
Sales Correspondence is a written communication between two parties with the motive of sales. A sales
letter is a form of sale correspondence. It is a letter that tries to sell a product. Sales letters are an effective
way to communicate with clients.
It may target a specific group to grab their attention. It is like a salesman discussing the purpose but in the
form of a letter. A sales letter can be general or particular in nature.
Objectives and Advantages of Sales Letter
Objectives of Sales Letter
 A sales letter aims at reaching the reader to purchase the product.
 Introduction and marketing of new products and services.
 To reach potential customers.
 Expansion of the market.
Advantages of Sales Letter
 A sales letter is less expensive.
 Reach a client where a salesman cannot.
 Reach a number of clients all at the same time.
 Ease of understanding and availability of full details.
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 More convenient, efficient, and comprehensive.

Elements and Format of Sales Letter
Elements of Sales Letter
Headline: Here the writer wants to grab the reader’s attention toward the main purpose of the letter.
Introduction: It is the introductory paragraph. Introduction in the sales letter provides the details of the
product or the service. It also provides the reader with the cost, quality, saving and other related
information.
Body: Here the writer builds his credibility. The writers provide with the worth of the product, its difference
from other similar products, a list of satisfied customers, terms of contract etc.
Call to Action: In this section, the writer asks for the reader’s response and can express the gratitude. It
also includes various details like warranty, discount etc.
Format of Sales Letter

Writing Tips for Writing Sales Letter

 Introduce the ideas in a way that compels the reader to take a positive action.
 Introduce yourself and the product well.
 Be clear in what you are offering.
 Choose your words as per the targeted audience.
 Always use a headline.
 Make the first sentence of each paragraph count.
 Use of font styles, font sizes, bullets, and numbering etc.

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 Use relevant statement showing the credibility of the product.

 Suitable closing sentences.
 Correct use of salutation.
 Proper and complete details of the product and availability.
 Always ask for attention, build interest, desire, and call of action.
 Have a simple and convincing tone.
 Avoid creating confusion and uncertainty.
 Avoid being clever and funny.
 Include your name, signature, and other contact details.
 Do not use fancy words or slangs.
 Always revise and edit the letter.
Types of Sales Letters
A sales letter has a specific purpose to meet. The various purposes can be the introduction of a new
product or service, availing new offers, selling incentive etc. Let us discuss some of them here.
Introductory
This type of letter is written to a customer or a consumer to introduce to the company or a product. It also
explains how readers will get benefit from the product or the service. It must grab people’s attention, build
their interest and call to action.
Product Update
As the name suggests, this type of letter is to describe the benefits of new products over older ones. Other
details like a limited period to purchase and discount can also be included.
Selling Incentive
It promotes existing products among current customers. This type of letter must build some excitement
among the reader to buy the product.
Thank You
A sender writes this letter to thank the customers to be a part of the business. It shows the value of the
customer. A brief mention is given on the availability of product for the customer.
Holiday Celebration
This letter gives a chance to offer a product as a gift for customers. It also shows the discounts and the
offers limited to the holiday celebration.
Invitation
It is an invitation to the customers for any celebration. This helps the customers to feel important.
Lost Customer
This type of letter is for the customers who have not been too active recently. It helps the organization to
bind with them and offers them good deals.
Solved Example for You
Problem: Which of the following should be kept in mind as a customer’s point of view while writing a sales
letter?
a. Points showing the inexpensiveness of the service.
b. Expiry of the deals.
c. Points showing the need.
d. Points showing the costliness of the service for show off.
Solution: All the above except point d.

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