1 DraI communIcatIon may be defIned as a process whereby a speaker Interacts verbaIIy wIth one

or more IIsteners, In order to Influence the latter's behavIor In some way or the other.
ExampIe - n a busIness context, a manager doIng a performance appraIsal wIth an employee, or a sales
manager makIng a sales plan presentatIon to hIs sales team. n the fIrst example, the manager may poInt
out areas for Improvement and In the second case, the sales manager may be explaInIng how to achIeve
new sales targets.
Dral communIcatIon In a busIness context can take the form of meetIngs, presentatIons, onetoone
meetIngs, performance revIews and so on.
Dral communIcatIon was also classIfIed Into oral facetoface communIcatIon (meetIngs and
presentatIons) and oral non facetoface communIcatIon (teleconferencIng, telephone and voIce
maIl).WhIle facetoface meetIngs are more effectIve than non facetoface communIcatIon In most ways,
they are expensIve and ImpractIcal sometImes, due to the dIstance factor. Thanks to advances In
technology, meetIngs today can stIll take place wIthout beIng facetoface, through teleconferencIng.
TeleconferencIng allows partIcIpants at dIstant locatIons to speak and sometImes to see each other. Apart
from the hIgh cost and the dIffIculty In settIng It up, teleconferencIng has the same advantages as oral
facetoface communIcatIon.
ExampIe - Several retaIlers lIke Walmart, the world's largest retaIler, make use of teleconferencIng to
keep theIr US headquarters In touch wIth theIr store managers worldwIde. Some headhunters also make
use of the facIlIty to conduct prelImInary IntervIews and shortlIst candIdates based In other countrIes,
before InvItIng them for a facetoface IntervIew.
|any multInatIonal corporatIons and large ndIan organIzatIons also use thIs facIlIty extensIvely.
n spIte of Its advantages, teleconferencIng wIll not replace facetoface meetIngs completely, sInce It Is
unsuItable for certaIn types of communIcatIon that Involve braInstormIng, negotIatIons, persuasIon and
problem solvIng.
Telephone communIcatIon, another form of non facetoface communIcatIon, has the bIggest advantage
of beIng able to contact a receIver who would be ImpossIble to reach In person. Today, mobIle phones
have made It even easIer to contact people who are on the move. Telephone communIcatIon also has a
personal qualIty and permIts the use of some nonverbal cues such as tone of voIce, to enhance the
communIcatIon.
7oIce maIl Is a type of telephone communIcatIon and Is sImIlar to an answerIng machIne. Although It Is
generally InferIor to speakIng In person to the other party, It has some advantages. When you leave a
recorded message, you can make your poInt felt and save tIme that mIght be wasted In exchangIng
pleasantrIes. nvItatIons can also be declIned wIthout havIng to gIve an explanatIon or reason, or havIng
the other person talk back. Thus, there Is greater control over how the message Is composed and
delIvered. 8esIdes, voIce maIl also makes It possIble to keep a permanent record of the communIcatIon,
unlIke other types of oral communIcatIon. n spIte of these advantages however, voIce maIl has not
caught on In ndIa.





BeneIits
Oral communication in business provides a variety oI beneIits. First, oral communication is
accompanied by nonverbal signiIiers, which provides context that can enhance understanding in the
communication process. Posture, Iacial expressions, and habitual movements may provide clues as to an
individuals Ieelings about the ideas being discussed. Even in telephone conversations, pitch, rate,
volume and tone oI the respective speakers can help in understanding sentiments.

Oral communication implies communication through mouth. t includes individuals conversing with each other, be it direct
conversation or telephonic conversation. Speeches, presentations, discussions are all forms of oral communication. Oral
communication is generally recommended when the communication matter is of temporary kind or where a direct interaction is
required. Face to face communication (meetings, lectures, conferences, interviews, etc.) is significant so as to build a rapport
and trust.
Advantages of Oral Communication
O There is high level of understanding and transparency in oral communication as it is interpersonal.
O There is no element of rigidity in oral communication. There is flexibility for allowing changes in the decisions previously taken.
O The feedback is spontaneous in case of oral communication. Thus, decisions can be made quickly without any delay.
O Oral communication is not only time saving, but it also saves upon money and efforts.
O Oral communication is best in case of problem resolution. The conflicts, disputes and many issues/differences can be put to an e
talking them over.
O Oral communication is an essential for teamwork and group energy.
O Oral communication promotes a receptive and encouraging morale among organizational employees.
O Oral communication can be best used to transfer private and confidential information/matter.
isadvantages/Limitations of Oral Communication
O Relying only on oral communication may not be sufficient as business communication is formal and very organized.
O Oral communication is less authentic than written communication as they are informal and not as organized as written
communication.
O Oral communication is time-saving as far as daily interactions are concerned, but in case of meetings, long speeches
consume lot of time and are unproductive at times.
O Oral communications are not easy to maintain and thus they are unsteady.
O There may be misunderstandings as the information is not complete and may lack essentials.
O t requires attentiveness and great receptivity on part of the receivers/audience.
O Oral communication (such as speeches) is not frequently used as legal records except in investigation work.

ommunIcatIon Network In DrganIzatIons

A communIcatIon network refers to how InformatIon fIows wIthIn the organIzatIon. nformatIon wIthIn
an organIzatIon generally flows through a system, rather than beIng a free flow. n the words of Adler,
"CommunIcatIon networks are regular patterns of persontoperson relatIonshIps through whIch
InformatIon flows In an organIzatIon."
ThIs means that the flow of InformatIon Is managed, regulated. and structured.
CommunIcatIon networks may be formal or Informal. We wIll deal wIth each of these In some detaIl.
3.3.1 FormaI ommunIcatIon Network - A formal communIcatIon network Is one whIch Is created by
management and descrIbed wIth the heIp of an organIzatIonaI chart. An organIzatIonal chart specIfIes
the hIerarchy and the reportIng system In the organIzatIon. Therefore, In a formal network, InformatIon Is
passed on only through offIcIal channels such as memos, bulletIns and Intranet (emaIl wIthIn the
organIzatIon).
The organIzatIonal chart ImplIes that InformatIon can flow In any of three dIrectIons - vertIcally, I.e.,
upward or downward, and horIzontally.
1. Upward ommunIcatIon - ThIs may be defIned as InformatIon that fIows from subordInates to
superIors. Some of the reasons for upward communIcatIon Include dIscussIng work related problems,
gIvIng suggestIons for Improvement and sharIng feelIngs about the job and coworkers.
ThIs type of communIcatIon has both benefIts and dIsadvantages. Dne of the bIggest benefIts Is problem
solvIng. Dnce a subordInate has brought a problem to hIs superIor's notIce, chances are that the problem
wIll not recur, sInce the subordInate learns from hIs superIor how to tackle It the next tIme. Thus, hIs
abIlIty to solve new problems and therefore hIs managerIal abIlIty, Improves. Another benefIt that could
arIse from upward communIcatIon Is that valuable Ideas and suggestIons may sometImes come from lower
level employees. Therefore organIzatIons should encourage thIs kInd of communIcatIon.
A thIrd benefIt Is that employees learn to accept the decIsIons of management and thereby work as a
team.
The bIggest problem assocIated wIth thIs type of communIcatIon Is that It may lead to "handIng down" of
decIsIons by superIors. When subordInates frequently seek the superIor's guIdance, the latter may adopt
an authorItarIan approach and merely gIve InstructIons, dIsregardIng the subordInate's opInIon
completely.
2. 0ownward ommunIcatIon - ThIs may be defIned as InformatIon that fIows from superIors to
subordInates. The most common reasons for downward communIcatIon are for gIvIng job InstructIons,
explaInIng company rules, polIcIes and procedures and gIvIng feedback regardIng job performance. A
number of studIes have IndIcated that regular downward communIcatIon In the form of feedback gIven to
employees Is the most Important factor affectIng job satIsfactIon. Therefore organIzatIons today are
tryIng to encourage more of thIs type of communIcatIon.
There are both benefIts and dIsadvantages assocIated wIth thIs type of communIcatIon. 0ownward
communIcatIon that provIdes regular feedback wIll be benefIcIal If the feedback or revIew of performance
Is constructIve. A constructIve revIew Is one where a manager "counsels" an employee, or advIses hIm on
how to Improve hIs performance. Dn the other hand, a destructIve revIew can destroy employee morale
and confIdence. Fegular downward communIcatIon also creates a clImate of transparency or openness,
where InformatIon Is passed on through offIcIal channels, rather than through rumors.
ThIrdly, downward communIcatIon boosts employee morale, sInce It IndIcates that management Is
Involved In theIr progress.
The problems wIth thIs type of communIcatIon are the danger of doIng destructIve revIews, as mentIoned,
and that of "message overload." ThIs means that superIors many sometImes burden theIr subordInates
wIth too many InstructIons, leadIng to confusIon.
3. HorIzontaI ommunIcatIon - ThIs type of communIcatIon Is also known as "IateraI" communIcatIon. t
may be defIned as communIcatIon that takes pIace between co-workers In the same department, or In
dIfferent departments, wIth dIfferent areas of responsIbIlIty. For example, Sales |anagers and
AdvertIsIng |anagers In the |arketIng department, or |arketIng |anagers and FInance |anagers.
The reasons for thIs type of communIcatIon are for coordInatIon of tasks, sharIng of InformatIon regardIng
goals of the organIzatIon, resolvIng Interpersonal or work related problems and buIldIng rapport.
The bIggest potentIal benefIt of horIzontal communIcatIon Is the sense of teamwork that Is created.
Fegular communIcatIon of thIs type ensures that all coworkers work together towards achIevIng a
common goal In the overall Interest of the organIzatIon. The bIggest potentIal problem Is that conflIcts
such as ego clashes are bound to arIse, when coworkers at the same level communIcate on a regular
basIs.
n spIte of these problems, horIzontal or lateral communIcatIon has become more Important In today's
busIness scenarIo than upward or downward communIcatIon. ThIs Is because the "organIzatIonaI
pyramId" IndIcatIng the dIfferent hIerarchIes or IeveIs In an organIzatIon has flattened. ThIs Is
Illustrated by the dIagrams gIven below.


The fIrst dIagram Illustrates the prevIous organIzatIonal pyramId whIch was a "muItI-Iayer" pyramId. n
thIs type of pyramId, vertIcal, I.e., upward and downward communIcatIon stIll plays an Important role.
ThIs Is stIll the case In many tradItIonally run organIzatIons today.
However, thIs has been replaced by a "compressed" or fIattened pyramId where the hIerarchy has
dImInIshed, as shown In the second dIagram. Thanks to technology and computers whIch help In faster
decIsIon makIng, a manager today has a larger span of control. He or she can supervIse and control more
number of people than before. ThIs In turn has led to greater "empowerment", whIch means that even
lower level employees are now beIng gIven decIsIon makIng authorIty. Therefore, In the absence of
several layers, there Is greater lateral communIcatIon than before.
3.3.2 InformaI ommunIcatIon Network - Another name for Informal networks Is the "grapevIne". n
thIs type of network, InformatIon does not flow In a partIcular dIrectIon, as we have seen wIth formal
networks. The InformatIon Is also not passed on through offIcIaI channeIs such as memos, notIces or
bulletIn boards. The InformatIon need not be cIrculated wIthIn the organIzatIon, but could be passed on
outsIde the work envIronment, wherever coworkers or colleagues meet socIally. Thus, Informal networks
are based more on frIendshIp, shared personal or career Interests.
ExampIe - Coworkers may meet outsIde the work envIronment at a company pIcnIc, party or a car pool
and dIscuss areas of common Interest that may or may not be work related. nformatIon may then be
passed on to each other about happenIngs In the company, such as layoffs, the company's plans for
acquIsItIons and so on.
ThIs type of Informal network Is not just for Idle rumors and may be useful In many ways. FIrst of all, It
sometImes fIlls In the "transparency gaps"left by formal networks. Such gaps usually occur durIng tImes
of crIsIs such as strIkes or layoffs. The strIkes and layoffs may not be offIcIally announced. Secondly, It
may help to confIrm Important InformatIon, such as the fact that the company Is goIng In for a major
acquIsItIon. ThIrdly, the grapevIne can be used for a constructIve purpose by the organIzatIon.
ExampIe - The government could get the press to publIsh news In the local paper that there Is goIng to be
a petrol prIce hIke soon, just to test the reactIons of the general publIc. f the reactIon Is negatIve, then
the news may be wIthdrawn on the basIs that It Is just a rumor. SImIlarly, organIzatIons could delIberately
plant proposals In the mInds of theIr employees, just to test theIr reactIons.
CIven that Informal communIcatIon networks have theIr advantages, they should not be suppressed as
rumors. Dn the contrary, competent managers should accept the Informal network. At the same tIme,
they should make efforts to counter false rumors and to ensure transparency through the formal network.
ThIs means makIng all types of InformatIon both posItIve and negatIve, avaIlable to everyone In the
organIzatIon through offIcIal channels.
To conclude, It should be remembered that both formal and Informal networks should be cultIvated and
allowed to coexIst, so that InformatIon of all types flows freely to all levels In the organIzatIon.

Types of Business Letters

Business letters may be used to communicate for a variety of purposes, including routine correspondence,
building good rapport, conveying pleasant or unpleasant news and persuading customers to buy the
company's products. The types of messages conveyed through business letters may be categorized into
three broad types
1. Routine messages
2. Bad news messages
3. Persuasive messages
We shall discuss these three categories in detail, including the guidelines and appropriate format to be used
in each case.
11.3.1 Routine Letters
Routine letters are Ietters on routine matters pertaining to day-to-day operations. Most of the business
correspondence of the typical manager is on routine matters. The most common types of routine letters are

1. Routine Requests and Replies A routine request is a Ietter from a customer, asking for
information on the company's products, or for product catalogs and brochures. t is termed a routine
request, since the receiver of the letter is expected to do what is asked in the letter, without having to be
persuaded. n general, all organizations will respond to such requests spontaneously, since it is an
opportunity for them to promote their products. The response to such requests is known as a routine reply.

A sample routine repIy letter in response to a customer request, is shown below

March 27
th
, 2008
Thomas Mathew
Purchasing Director
Home Security Products


6/1 Benson Cross Rd.
,
Bangalore 560 046
Dear Mr. Mathew,
am writing this in response to your request for information regarding our HP
340 portable printer, to be used by your marketing representatives with their
notebook computers when they travel.
would like to inform you that the HP 340 is an advanced portable printer,
which incorporates the latest technology and is compatible with all types of
notebook computers. would also like to provide specific answers to each of
your questions
1. The HP 340 is a laser printer, with a wide range of applications. t is
quicker, has more printout capability and consumes less ink cartridge
than other laser printers.
2. The HP 340 is battery operated and comes with a back-up battery, so
that it may be used while traveling. t has a back-up of 5 6 hours,
depending on the uses of the printer.
3. The HP 340 has a 15-inch cartridge and is compact and easy to carry
while traveling.
4. The HP 340 comes with a three-year guarantee and all services will be
free of cost.
The product can be ordered either by calling our toll-free number 1-800-353-
7857, or online, through our website www.hewlettpackard.com. As an
incentive for purchase within the next one week, we are offering a 25%
discount for our first 500 customers.
look forward to your order and would be happy to give you information
regarding our other products in future.
Sincerely,
Joe D 'Silva, Sales Manager,
Hewlett Packard Company,


Bannerghatta Rd.
,
Bangalore 560 028
The above letter is concise and to the point, providing answers to each of the customer's queries regarding
the product. The last paragraph provides details that make it easy for the customer to order the product,
along with a special incentive for early purchase. The close is positive and tries to build a long-term
relationship with the customer.
2. Routine Claim and Adjustment Letters A routine cIaim Ietter is written by a buyer or a customer to a
seIIer, requesting some type of action or adjustment, to correct a probIem with the seIIer's product
or service. t is more than just a letter of complaint and may be written by an individual or an organization.
The action sought in a claim letter may be replacement or repair of a defective product, a full or partial
refund, or just an apology for poor service or unfair practices. A claim letter is considered as a routine letter,
since the seller or the organization will normally comply with the request for remedial action. For example, if
you order a product from a catalog that mentions a particular price, but the seller charges you more, you can
expect the seller to respond to your request to make an adjustment in the price.
A routine adjustment Ietter is the seIIer's response to a routine cIaim Ietter, informing the buyer or
customer about the action that has been taken. The reason for the problem should also be explained in a
detailed and straightforward manner, along with the measures taken to prevent the problem from recurring.
The letter should sound credible, so that the customer's faith in the company and the product is restored.
A sample routine claim letter regarding a defective product, is shown
below
March 28
th
, 2008
The Customer Service Representative
Color View Graphics
14,

Airport Rd.
,
Bangalore 560 001
Dear Customer Service Representative,
Subject Inferior quaIity of coIor sIides
The poor quality of the color slides that you developed for me on March
20
th
made them unsuitable for use in my marketing strategy presentation to
my marketing team last week. As a consequence, had to use
transparencies with an overhead projector instead.
have enclosed one of the dozen slides sent to me, as proof of the defective
quality. As you can see, the colors overlap and the type is not clear. The
slides do not meet the high quality standards promised in your recent color
advertisement in Business Today.
Since have already made the presentation for which required these slides,
redeveloping them now would not solve the problem. nstead, request you
to cancel the charge of Rs. 5000 in your invoice 3063 dated March 22
nd
,
which have not yet paid. can return the remaining eleven slides to you, if
required.
am aware that mistakes like these happen sometimes, in spite of one's best
efforts. am confident that you will accept my request and correct this
mistake promptly.
Sincerely,
Walter Thompson, Marketing Manager
Enclosure : 1
n the above letter, the buyer can reasonably expect the seller of the defective product to make an
adjustment by canceling the charges, since the quality of the slides is clearly inferior to what was promised.
3. Goodwill Letters These are routine Ietters that have no business objective, but are sent pureIy for
buiIding good rapport with external stakeholders. Such letters may express appreciation, sympathy or
congratulations. Examples include letters to express sympathy over a business setback, appreciation for
winning an award, gratitude for being on a panel of judges, or congratulations for opening a new branch
office.
4. Other Routine Letters Routine letters may also be addressed to external audiences other than
consumers. For example, letters invitingquotations" may be sent to several suppliers, asking for the
prices of raw materiaI or components. The idea is to ensure getting the best price. Such letters should
state the details of the material required, the information needed regarding price, guarantee, service, etc.
provided by the supplier and the time within which the material is required. Once a quotation is accepted,
an order Ietter will be sent to the supplier, pIacing the order for the required materiaI.
%enders are Ietters inviting a provider of a service, such as construction of roads, to quote the
rates for that particular service. They are usually sent for work that is spread over a period of time.
Letters requesting purchase of goods on a credit basis, letters granting credit and collection
letters addressed to customers, are some other common types of routine letters.
11.3.2 Bad News Letters
A bad news Ietter conveys unpIeasant news to customers or other external stakeholders. Typical
examples of this type of letter are rejection of customer claims or requests for adjustments, job rejection
letters to prospective employees, letters giving news about sudden price increases, products being
discontinued, or about problems faced by the organization, such as losses and lay offs. When conveying
bad news, the letter should be written tactfully and worded in a positive manner.
A sample bad news letter refusing a customer claim is shown below
March 28
th
, 2008
Mr. John Smith, Dean
XYZ School of Business


Cunningham Rd.
,
Bangalore 560 034
Dear Mr. Smith,
We make no money when our customers are forced to take long trips by
train, rather than by flying Kingfisher Airlines and when that happens, we try
to find out the reasons.
A review of the March 19
th
flight records of the cancelled Kingfisher Airlines
flight 1256 shows that it was scheduled to leave at 6 am and was cancelled
at 5.30 am, because of foggy weather. Passengers were asked to remain in
the boarding area and those who did were rebooked on flight 1257, which
departed an hour later at 7 am. This flight arrived in Bangalore just an hour
later than the scheduled arrival of flight 1256. Therefore, our ticket agent was
correct in refusing to grant a refund on tickets to you and other passengers
who did not take the later flight.
You have mentioned in your claim letter that you are a frequent flyer of
Kingfisher Airlines. Although we cannot grant you a refund, have asked our
Scheduling
Department to add your name to our mailing list, for receiving a free
subscription to our in-flight magazine. A complimentary copy of our current
flight schedule is also enclosed. From now on, you will know exactly when
every Kingfisher Airlines flight arrives and departs from Bangalore airport.
Sincerely,
Service Representative, Kingfisher Airlines
Enclosure 1
n the above letter, the bad news, namely, the refusal to grant a refund to the passenger for not boarding the
flight is conveyed indirectly. The airline tries to compensate for the bad news, by offering a free subscription
to their magazine and a complimentary copy of their flight schedule.
11.3.3 Persuasive Letters
The most common type of persuasive Ietter is a saIes Ietter addressed to a customer, persuading him
to buy your company's product.A sales letter is similar to an advertisement and uses the same AIDA
(Attention, nterest, Desire and Action) format. This means taking the consumer through different mentaI
stages in a particuIar sequence - first getting his attention, creating interest by highlighting unique
features of the product, inducing desire by convincing him that the product is better than others and then
motivating him to try the product. Sales letters are used to sell industrial products such as machinery,
consumer durable products and other high-value items.
A sample sales letter written in the above format is given below
SAMPLE SALES LETTER FOR A HOME SECURTY SYSTEM
March 27
th
, 2008
Dear Home Owner,
The saying goes that an Englishman's home is his castle. Do you see your
home as an investment in real estate or as your castle? s it a means of
getting tax exemptions, or a place where you can unwind and relax after a
stressful week at work?
Homes should be viewed as places where we feel safe and free from outside
intrusions.
Unfortunately, this is not the case, since recent statistics show that 10% of
households in Bangalore city were robbed last year. How can you protect
yourself?
Home Security Products offers a simple and dependable solution the Safe
Home Burglar Alarm System, which can protect up to 2500 square feet of
your home. Just plug it in, adjust the sensitivity to the size of the room and
turn the key.
Safe Home's microprocessor screens out normal sounds like dogs barking,
babies crying rain and traffic. Only hostile sounds such as glass breaking,
will trigger the alarm. The alarm is also loud enough to alert the
neighborhood and to drive away the smartest burglars.
You may wonder what might happen if a clever burglar disconnects the
electricity to your home. You need not worry, since Safe Home has built-in
batteries that recharge automatically and ensure that it operates in spite of
power failures. The best thing about Safe Home is the ease of installation.
You simply have to mount it on a wall and plug it in.
Security now comes at a price that you can afford just Rs. 999, along with
a one year warranty and a ten day return policy, to ensure complete
satisfaction.
With Safe Home, burglaries will soon be a thing of the past. Ordering it is
easy just call our toll-free number 1-800-222-3333 and use your credit
card. Safe Home will be home delivered to you within a couple of days.
Soon, your home will be a haven of peace.
Sincerely,
National Sales Manager
Home Security Products
Note that in the above letter, a dramatic question is asked to grab the attention of the reader, followed by
startling figures the fact that a high percentage of homes have been robbed. nterest is then created by
mentioning the product's unique seIIing proposition (USP), or the features and benefits that are unique
to the product. The product is highlighted as simple, dependable and easy to install. Desire is induced by
overcoming any doubts or objections that the reader may have, such as the product functioning during a
power failure. Finally, the reader is motivated to take action, by making it easy for him/her to order the
product, by calling toll free and using a credit card. The product benefit is reinforced at the end of the letter