Chapter: 5

Business writing and its skills

Meaning of Written Communication:

There are different forms of communication in business such as: verbal, nonverbal and written. Each of these communication
forms is significant. However, written communication has great significance in today’s business world. Simply, written
communication refers to the communication doing by means of written symbols (either printed or handwritten). Written
communication usually requires more thought and effort. Writing must be concise, informative and easy to read as both an informative
and instructional tool.

Effective written communication is essential for preparing worthy promotional materials for business development. Speech
came before writing. But writing is more unique and formal than speech. Effective writing involves careful choice of words, their
organization in correct order in sentences formation as well as cohesive composition of sentences. Also, writing is more valid and
reliable than speech it causes delay and takes time as feedback is not immediate.

Mechanics/Techniques of Writing:
1) The basic principle of adaptation
2) Care in word choice
3) Emphasis on short sentences
4) Care in paragraph design

1) The basic principle of adaptation:

a) The filter as the basis for adaptation:
The meanings we give to the symbols we receive are determined by our mind’s filters (knowledge, experience, emotions). No
two have the same knowledge of words and no two give the same meanings to all. Therefore, good communication or writing should
adapt to the receiver’s filter. It means that we must use symbols and concepts that have similar meanings for us and to others.

b) The technique of adapting:

Adapting takes hard work. In adapting, we should begin by visualizing our receiver. We should make a mental picture of
who they are, how much they know about our subject, what their educational levels are and how they think. Then, keeping our
receiver’s image in mind, we should select the symbols/words/sentence that will communicate to them.

For example: If we write a memorandum to a group of poorly educated workers, we need to write in simple words and
concepts so that receivers will understand it.

2) Care in word choice:

 Selecting words the reader will understand (simplification)
a. Many write at too difficult level
b. Writer knows the subject better than the reader
c. Results of research support simplification

 Use familiar words

 Use unfamiliar words intelligently
Familiar Words Unfamiliar Words
Try Endeavor
Find out Ascertain
End Terminate

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  Select strong words
Strong Words Dull Words
Tycoon Eminently successful businessperson
Bear Market Generally declining market

 Use concrete words

Concrete Words Abstract Words
A 53% loss A significant loss
100% attendance record Good attendance record

 Favor active voice

 In active voice, the subject does the action.
 In passive voice, it receives action
Active Voice
We reported the results in our July 9 letter
The investigators believe the new process is
superior
Passive Voice
The results were reported in our July 9 letter
The new process in believed to be superior by
the investigators

 Avoid overuse of camouflaged verbs

 Here, we take the verb describing the action in the sentence and change it into a noun
 Thus, actions words have to be added to form a sentence
Clear verb form Camouflaged verb
The staff amortized the account Amortization of the account was effected by the staff
The staff eliminated the surplus Elimination of the surplus was effected by the staff

 Use gender-neutral words

 Avoid using masculine pronouns for both sexes (he, his)
 Use words like them, they, their
 Substitute neutral expressions, such as use he/she
Gender Neutral Sexiest
Chairperson Chairman
Personnel/Workers Manpower
Police Officer Policeman

 Choose the short over the long word

 Long words create confusion and increase difficulty while comprehending
Long Words Short Words
The decision was predicated on the
The decision was based on the belief
assumption that an abundance of
that there would be more money.
monetary funds was forthcoming.

 Use technical words with caution

 Jargons are useful only when you are communicating with people in your own field
 Excessive use of jargons complicate the messages
 E.g. Write “stroke” instead of “Cerebral vascular accident”

3) Emphasis on short sentences:

Choosing the right words and making a clear sentence is essential step in writing. But this sentence should make clear
meaning in our reader’s mind. Length is the most important quality in sentence. Long sentences are hard to read and understand. And
it is more complex when there is an excess of information in a single long sentence. Therefore, in writing, we have to write sentences
in short for better readability and understandability. Normally, short sentence covers 16-18 words for middle readers.

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 4) Care in paragraph design:
In writing, we do not communicate by words and sentences alone; paragraph also plays a major role. Paragraphing involves
logical thinking.

Components of a good paragraph:

a) Giving the paragraph unity
b) Keeping the paragraph short
c) Putting topic sentences to good use
d) Omitting unnecessary detail
e) Making the paragraph move forward

Meaning of Report:
Simply, a document containing information organized in a narrative, graphic or tubular form is called report. Reports are
written accounts that objectively communicate information about some aspect of the business. A business report is an orderly,
objective, communication or factual information that serves some business purpose.
 Orderly: Different from casual exchange of information
 Objective: Unbiased approach to facts presented
 Communication: Exchange of information
 Factual information: Events, records and various forms of data
Report is a self-explanatory statement of fact relating to a specific subject and serves the purpose of providing information
for decision making and follow up actions. It is a systematic presentation of ascertained facts about a specific events/subject. Report is
a complete and compact written document giving updated information about a specific problem.

Characteristics of Report:
1) Systematic presentation of facts
2) Prepared in writing
3) Provides information and guidance
4) Self explanatory document
5) Acts as a tool of internal communication
6) Acts as permanent record
7) Time consuming and costly activity

Process of Report Writing:

1) Determining the report purpose
2) Gathering the needed information
3) Applying the findings to the problem
4) Organizing the report information
5) Interpreting information

1) Determining the report purpose:

Work on a report begins with a need or a problem. In business, our superiors need information for a business purpose and
they may assign us to prepare a report on that case. After we have been assigned the task of writing a report, our first step is to
establish the problem clearly in mind.

a) The preliminary investigation:

After getting a problem in mind, first we should gather all the information we need to understand the problem. The required
information may be collected from company files, talking over the problem with experts, searching though printed sources and
through net etc.

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 b) Clear statement of problem:
Once we understand the problem, then we have to state it clearly, preferably in writing. The problem statement normally
takes one of three forms: Infinitive Phrase, Question Statement & Declarative Statement. To illustrate each, we use the problem of
determining why sales at a certain store have declined.
i) Infinitive Phrase: To determine the cause of decreasing sales at store X.
ii) Question Statement: What are the causes of decreasing sales at store X?
iii) Declaration Statement: Store X sales is decreasing and management wants to know why.

c) Determination of factors:
After stating the problem, we should determine the factors of the problem. The factors may be sub-topics of the main topic,
hypothesis or bases of comparison. For example: Why have sales declined at store X?
i) Sub-topics:
 Production Plant & Equipment
 Sales promotion Product Development
 Financial status Personnel
ii) Hypothesis:
 Competitor’s activities have caused the decline.
 Changes in the local economy have caused the decline.
 Raw material deficiencies have caused the decline.
iii) Bases of comparison:
 Availability of labor in store X to other store.
 Nearness to market of store X to other store.
 Transportation facilities in store X to other store.

d) Need for sub-breakdown:

Sometimes the factors we have selected may have factors of its own i.e. they may be broken down.
For example: Labor may be categorized into skilled, semi-skilled and unskilled
Transportation may be categorized into water, rail, truck and air

2) Gathering the needed information:

With the problem clearly in mind, our next step is to gather the information we need. We may need to use a variety of
techniques to gather the information required to meet the objective. How we get the information depends on the nature of our problem.
For most business problems, our search will likely involve gathering information from company sources. We may also need to get
information by talking to other employees. May be we can get what we need from records or reports. In some cases, we may need to
conduct some form of primary research such as a survey or experiment. So, finally we can say that primary and secondary sources
can be used.

3) Applying the findings to the problem:

With our search completed, we will get a mass of information on the subject. But not all the information may be necessary.
So, the next step is to select the information we need from what we have gathered. In other words, we must interpret the facts, if the
information helps answers a need –we keep it, if not then –discard it. Thus, we must go through what we have collected, applying each
item of information to the problems needs.

4) Organizing the report information:

Once we have determined what information we will use in the report, we are ready to give this information the order in which
it will appear. It means we have to organize the information serially.
a) Preliminary steps in determining order:
We need to arrange the information for better understanding. Arrangement of information depends upon their nature such as
library research needs grouping; survey needs further analysis through entering into commuters. Then apply it to the problem.

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 b) A written outline:
An outline is a plan for writing the report. It helps readers to understand the issues that will be addressed in the report. It
forms the table of contents and headings of the report.

c) Patterns of report organization:

Three possible outline patterns exist.
i) Indirect or Logical: Indirect or Logical arrangement is used when we need to build support for our main idea or we
want to avoid coming across as arrogant.
ii) Direct: Direct arrangement is used when an audience is receptive or at least open minded. Subject matter is
presented in a deductive way.
iii) Chronological order: Findings are presented in the order in which they happened.

d) System of outline symbols:

Outline symbols are needed for showing the importance of each part. The conventional symbol system marks the levels of an
outline. The numerical or decimal type uses Arabic to designate sections.

e) Introductory and Concluding part:

i) Report Introduction
ii) Report Body
iii) Report Closing

f) Topic or talking Headings:

i) Topic Headings: Topic headings give only the subject of discussion.
ii) Talking Headings: Talking headings identify the subject and tell what is being said about it.

5) Interpreting information:
Of course, interpretation begins when we state the problem, collect data and organize it. Interpretation is mental activity that
improves with experience and knowledge. We will study five interpretation fundamentals:
a) Human frailties and interpretation error:
Interpretation is affected by the mind’s limitations. Knowing these frailties, we can condition ourselves to guard against
them.
i) Desire for the spectacular: In order to make things interesting we tend to exaggerate the meaning of facts.
ii) Belief that conclusions are essential: Not every report question has an answer. Absolute finality and certainty are
not needed in all cases.
iii) Acceptance of lack of evidence as proof to the contrary: We believe that when an interpretation cannot be
proven, its opposite must be true. Lack of proof does not prove the opposite. Always remember that, facts should
support every conclusion. No facts –No conclusions.

b) Fallacious interpretation procedures:

Fallacy is an error in thinking. Fallacious thinking basically occurs from following causes:
i) Bias in interpretation: Bias results from viewpoints the analyst developed before interpreting facts in a report.
These preconceived ideas may stem from personal, professional or cultural experiences. Eliminate conscious and
unconscious bias in interpretation. Conscious bias is unethical and unconscious bias is superficial.
ii) Comparison of incomparable data: Valid comparisons should be included. Compare only those facts that are
logical.
iii) Cause-Effect confusion: Cause-Effect relationship among sets of data does not always exist. To establish cause-
effect pattern, interpretation need to be examined on three criteria:
 Data should be related
 Existence of evidence that the effect occurred in time after the proposed cause
 Existence of evidence ruling out other factors that may have caused the relationship among the sets of data
iv) Unreliable and Unrepresentative data: Wrong data collection leads to wrong interpretation. Reliable and
representative data should be used.
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  Reliable data: Facts collected with sound methods and by competent researchers; concerned with sample size
(quantity).
 Representative data: Sample of facts matches the whole from which the facts were drawn (quality of data).
v) Neglect of important factors: Solving complex problems require analysis of all possible factors. If we miss or
neglect the important factor then it may give incomplete analysis.

c) Attitudes and Practices conducive to sound interpreting:

Good interpreting requires clear thinking. Clear thinking follows rules of logic. It requires common sense and is aided by
experience and knowledge. We can clarify our thinking with following attitudes and practices:
i) Cultivating a critical point of view: Criticize our work as much as we support it.
ii) Maintaining a judicial attitude: We have to work as a judge –without bias, emotion and such. Achieve objectivity.
iii) Consulting with others: We have to talk over report problems and interpretation with others especially with critics.
iv) Testing interpretations: Deliberately test our interpretations in two ways:
 Apply the test of reason: Is each interpretation logical based on our knowledge or experience?
 Apply the negative test: Make an opposite interpretation and build a case for it.

d) Statistical aids to interpretation:

In most cases, the information we gather is quantitative i.e. expressed in numbers. Statistical techniques provide many
methods for analyzing quantitative data. For this, descriptive statistics such as measures of central tendency, dispersion and probability
helps in interpretation.

e) Interpreting for the reader:

After we have interpreted the data we have gathered, we must put our interpretations into words and symbols so that readers
would easily understand it. To interpret for the readers, we must adapt to the reader’s knowledge, viewpoints and emotions.

Types of Reports:
1) Short forms of reports
a) Short Reports
b) Letter Reports
c) Memorandum Reports
2) Special forms of reports
a) Staff Reports
b) Audit Reports
c) Technical Reports

1) Short forms of reports:

a) Short Reports:
The short report consists of title page and report text. Hence, it has moderate formality. It may be organized in either the
direct or indirect order though direct order is more popular. It begins with a quick summary followed by introduction, findings,
analysis and finally conclusion & recommendation if necessary. The mechanics of constructing the short report are much the same as
those for the longer, more formal types. Like any other report, it uses graphic aids, appendix and bibliography depending upon needs.

b) Letter Reports:
A letter report is a report written in a letter form. It is generally sent to people outside the company and it is sent by mail. It
covers short problems and it can be presented in three or four pages. Letter reports are written in a personal style using I, You and We.
Letter reports may be both in either direct or indirect order. Letter report ends on a goodwill note.
i) Direct order: Summary –Conclusion –Recommendation with appropriate introductory words.
ii) Indirect order: Introduction, Logical presentation and analysis of information gathered and conclusion and
recommendation.

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 c) Memorandum Reports:
Memorandum reports are widely used as internal written messages written by one person in an organization to another person
in the same organization. It is mostly written informally unless written to higher authority. Some reports have captions (headings) and
graphic aids. As the memorandum reports usually concern routine, day to day problems, it needs little or no introductory information.

2) Special forms of reports:

a) Staff Reports:
One of the most widely used reports in business internally is the staff report. It is well adapted to business problem solving. It
follows a fixed organizational plan that leads to a conclusion. Staff report has these parts:
 Identifying information
 Summary
 Problem (Objective)
 Facts
 Discussion
 Conclusions
 Recommendations

b) Audit Reports:
There are short forms and long forms audit reports exist. Short form audit report has a standard organizational format.
Actually, it is a statement verifying an accountant’s inspection of a firm’s financial records. On the other hand, long form audit report
can vary.

c) Technical Reports:
Technical report is same as the conventional formal report but it differs primarily in subject matter. Its prefatory parts are
similar to those in traditional formal reports. It follows:
 Title page
 Letter of transmittal
 Table of contents and illustrations
Instead of executive summary of traditional formal report, it may present summary information in prefatory part. Moreover, it
also presents introduction in prefatory part. And report text part may be:
 Introduction
 Methodology
 Facts
 Discussion
 Conclusions
 Recommendations

Qualities of Good Report Writing:

1) Adaptation
2) Objectivity
3) Time viewpoint
4) Transition
5) Interest

1) Adaptation:
Different people have different communication abilities. This difference in communication ability is the major barrier to
successful report communication. For written communication to be successful, we have to use those words that have similar meanings
to both for us and our reader. Therefore, adaptation requires hard work, discipline and deliberate effort.

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 2) Objectivity:
The main objective of the report writing is to show truth or reality to the readers. And getting this is difficult enough without our
own opinions, biases and attitudes. Our report writing is likely to be biased because of our mental filters. However, we should try to
keep out all biases by seeking truth. Objectivity can be achieved through:
 Eliminating prejudice and emotion
 Fairly reviewing and interpreting the information
 Approaching the problem with open mind
 Looking at all sides of each question

3) Time viewpoint:
It is important to maintain a proper time viewpoint in the report. It means we have to keep a consistent time viewpoint throughout
the report. There are two choices of time viewpoint i.e. past and present. Both viewpoints can produce a good report but we have to
select one and maintain the consistency in using it. If we adapt a past time viewpoint, we should treat all findings as well as the
research and the writing as past. If we adapt a present time viewpoint, all the information is assumed to be current at the time of
writing.

4) Transition:
Transition literally means ‘a bridging across’. In the same way, transition means the process of changing from one subject concept
to another. They may be discussing a new topic at the beginning and relate this topic to prevailing ones. In general, transitions are
made by words or sentences. Whether to use a transition word or sentence in a particular place depends on the need for relating the
parts concerned. A short report might require only a few transitions whereas a long report requires much more transitional help. We
have to use them naturally not mechanically; it means use them only where needed.

5) Interest:
Good report writing should be interesting. If it is interesting, it helps to draw the reader’s attention towards the report. Actually,
the quality of interest is as important as the facts of the repot. Interesting writing results from careful word choice, rhythm,
concreteness –in short, all of the good writing techniques.

Circulars:
Circulars form part of intra-departmental communication. Informational messages are transmitted to the members of an
organization through circulars. The various components of circular are date, day, time & place of the meeting (if any) and purpose.
The tone of circular is always in the form of request instead of a command.
A circular is a very common method of conveying specific messages across widely spread out units or branches in any large
multi-branch organization. A circular is generally understood as a written communication addressed to a circle of persons and
customers.
Circular conveys information regarding any product, policy, change of address, opening or shifting of a branch, change of
representatives etc. Circulars must be targeted toward a specific group such as customers, employees, departments, public or interested
parties. Circulars can also be used as an advertising tool.
Main Head

To: ……... (To be circulated)

Reference No.: ……….
Circular No.: ……….
Date: ……….
Subject: ……….

Dear All,

………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………………………………………
………………………………………………………………………………………………………….

8 Yours Sincerely,
Notice:
Notice form part of intra-departmental communication. Informational messages are transmitted to the members of an
organization through Notice. The various components of Notice are date, day, time & place of the meeting (if any) and purpose. The
tone of Notice is always in the form of request instead of a command. Notice is generally displayed on a board and the same
information as in circular is circulated.
Notice are methods used to keep the workforce as a whole up-to-date with what is going on. They are impersonal methods of
communication i.e. the same communication is sent to all the workers.
Mahesh & Company
Industrial Area
Balaju, Kathmandu

Notice

Members of the sales department are requested to gather for an important meeting on Saturday, 1 st
April, 2013, to discuss about the launch of new product.

Mahesh Manandhar

Memorandum:
A Memo, Memorandum, is a document typically used for communication within a company. Memo is the short message sent
from one person to another in the same organization. In other words, memos are the letters exchanged by the employees in the daily
conduct of their work. Memos can be as formal as a business letter and used to present a report. However, the heading and overall tone
make a memo different from a business letter. Because we generally send memos to co-workers and colleagues, it is not required to
include a formal salutation or closing remark. It is important to have our audience and purpose clearly defined because this will help
us determine what information to include and how best to convey it. Memos cover details of events or developments such as branch
opening and shifting, staff related matters such as transfers & promotions and market –related developments etc.
Mahesh & Company
Industrial Area
Balaju, Kathmandu

Memorandum

To: ……...
From: ……...
Date: ……...
Subject: ……...

First Sentence: (Reason for the memo)

Second Sentence: (Any instructions or information)

Third Sentence: (What is required of the reader. For Example: confirmation, answers or feedback.)

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Types of Memos:
1) Direct Memos (Good news memos)
2) Indirect Memos (Bad news memos)

1) Direct Memos:
Most memorandums fit into this category. Employees are busy therefore message should be direct and clear. Direct memos
are also called as ‘good news memos’ because it flow good news to others.
Direct memos can be:
a) Routine enquires
b) Routine responses
c) Policy memos and directives

2) Indirect Memos:
Memos that convey negative news are called indirect memos. It should be handled tactfully. For example: Indirect memos
cover the information regarding the closing of a business or the possible loss of the business.

Agenda:
A formal list of things to be done in a specific order, especially a list of things to be discussed at a meeting is called agenda. It
is a predetermined program of the business to be transacted in the meeting. Agenda is prepared before the meeting takes place with a
view to avoiding omission of any important dealing in the meeting. It is a systematic record of the items of business in their proper
order of importance. In preparing agenda, the routine items are place first and then controversial matters are placed.

Minutes:
The official written record of decisions made at a meeting is called minute. They are crucial meeting documents without
which the group has no formal memory, especially for corporations for which they constitute the formal record. Minutes may be kept
by any individual in attendance at a meeting and are usually distributed to all members of the unit represented at the meeting. Minutes
start off with the name of the organization, the place and date of the meeting and the name of those persons present. Some minutes
include a summary of the discussion along with any decisions (expressed as resolutions). Other minutes are bare-bone and just contain
a record of the decisions.

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Business Correspondence:
Communication through exchange of letters is known as correspondence. We communicate our feelings, thoughts etc. to our
friends and relatives through letters that may be called personal correspondence. A Businessman also writes and receives letters in his
day to-day transactions, which may be called business correspondence. Business correspondence or business letter is a written
communication between two parties. Businessmen may write letters to supplier of goods and also receive letters from the suppliers.
Customers may write letters to businessmen seeking information about availability of goods, price, quality, sample etc. or place order
for purchase of goods. Thus, business letters may be defined as a media or means through which views are expressed and ideas or
information is communicated in writing in the process of business activities.

Types of letters:
1) Direct Letters (Inquiry Letters)
2) Response Letters
3) Persuasive Letters
4) Collection Letters
5) Sales Letters

1) Direct Letters:
Those letters written in direct order is called direct letters. It will save time for both us and our readers. It saves our time
because it is easier to write in the direct letter arrangement. In saves reader’s time because it presents the message concisely and
quickly. Direct letters are preferable for good news and neutral messages. Such messages concern the routine exchange of information
that business need. Such letters need little or no explanation or presentation to get action. Letters that ask for information are best
written in direct order.

Approaches toward writing direct letters:

a) A question beginning
b) Adequate explanation
c) Structured questions
d) Goodwill in the ending

2) Response Letters:
Response letters are the answers to the inquiry sent by others. In these letters, we have to tell what the readers want to know.
The news is good and we don’t what to delay it. Direct pattern is used for these kinds of letters.

Steps to be followed:
a) Identification of situation
b) Good-news beginning
c) Construction of answers
d) Handling negatives
e) Consideration of “extras”
f) Cordiality in the close

3) Persuasive Letters:
We need to use persuasion to overcome reader’s resistance. Persuasion involves changing reader’s mental filters i.e.
knowledge, viewpoints and emotions. Doing this job well, we will require our best in human evaluation, logical reasoning and
persuasive writing. Persuasive strategy follows the indirect order because we anticipate opposition. In other words, persuasive letters
might be unfavorable to readers, so we know that unfavorable messages are best handled indirectly. Persuasive letters require a slower
moving approach. It follows AIDA model:
Attention: Get the reader’s attention with a benefit that is of real interest or value.
Interest: Build the reader’s interest by further explaining benefits and appealing to his/her logic or emotions.
Desire: Build desire by providing additional supporting details and answering potential questions.
Action: Motivate the reader to take the next step by closing with a compelling call to action and providing a convenient
means for the reader to respond.

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 Steps to be followed:
a) Determination of persuasion
b) Attention in the opening contact
c) Presentation of the persuasion
d) Goodwill and action in the close

4) Collection Letters:
When our customers fail to pay their bills on time, we must try to collect it and for this we send our customers letters
mentioning this. So, the letters sent to collect past due accounts are called collection letters. For collection letters, we need to
understand the procedure of bill collection of a business.

There are three stages in collection:

a) Early stage effort (Reminder)
b) Middle stage effort (Persuasion)
c) Last resort effort (Threatening)

5) Sales Letters:
Sales letters use persuasive technique encouraging someone to participate in a commercial transaction. Most sales letters are
prepared by professionals. However, practicing to write sales letter will help us in writing other types of letters. Sales letters also
included brochures, leaflets etc.

Strategies for sales managers:

a) Need for preliminary knowledge
b) Determination of appeal
c) An approach to the subject
d) Some mechanical differences
e) The attention getting opening
f) Presentation of the sales material
g) Stress on the you view point
h) Completeness of the sale
i) Clarity and motion in the action
j) Urgency in the action
k) Recall of the appeal
l) Addition of a postscript

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