BUSINESS CORRESPONDANCE

SUBJECT CODE – 19BM204

UNIT-I ESSENTIALS OF EFFECTIVE BUSINESS LETTERS (20Hrs)

Business Correspondence – Need – Functions – Kinds of Business Letters – Essentials of
an Effective Business Letter - Layout.

UNIT-II BUSINESS LETTERS AND PERSONNEL CORRESPONDENCE (18 Hrs.)

Business enquiries and replies - Credit and status enquiries – Placing and fulfilling orders -
Complaints and adjustments - Collection letters - Secular letters - Sales letters. Application for
employment - References - Testimonials - Letters of appointment -Confirmation - Promotion
- Retrenchment and resignation.

UNIT-III BANK, INSURANCE, AGENCY AND SECRETARIAL CORRESPONDENCE

(17 Hrs.)
Bank Correspondence – Insurance Correspondence – Agency Correspondence –
Correspondence with Shareholders, Directors.

UNIT-IV OFFICE CORRESPONDENCE (18 Hrs.)

Reports Writing – Agenda, Minutes of Meeting – Memorandum – Office Order – Circular–
Notes.

UNIT-V MODERN FOR0.MS OF COMMUNICATION (17 Hrs.)

Fax – Email – Video Conferencing – Internet – Websites and their use in Business.
 UNIT I
INTRODUCTION
In our day to-day life we exchange our ideas, thoughts and other information with our
friends, relatives and other people. Sometimes we directly talk to them and some times we also
write letters to them. In letters we express our feelings in a few words, we may ask for any
information or we may write about a complaint in connection with our problems. Similarly
businessmen also exchange ideas, information by writing letters. They communicate business
information to customers, suppliers and others and at the same time receive a variety of letters
from them. In this lesson let us know about different types of letters used in the process of
business transactions.

MEANING: Business correspondence means the exchange of information in a written

format for the process of business activities. Business correspondence can take place between
organizations, within organizations or between the customers and the organization. The
correspondence refers to the written communication between persons. Hence oral
communication or face to face communication is not a 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.

NEED FOR BUSINESS CORRESPONDENCE:

Now-a-days business operations are not restricted to any locality, state or nation. Today
production takes place in one area but consumption takes place everywhere. Since the
businessmen as well as customers live in far off places they don’t have sufficient time to contact
each other personally. Thus, there arises the need for writing letters. In the past the situation
was not so. Business letters were not essential in olden days. But now the importance of letters
has increased because of vast expansion of business, increase in demand as well as supply of
goods. Let us learn about the importance of business letters.
1 Help in maintaining proper relationship: Now-a-days business activities are not
confined to any one area or locality. The businessmen as well as customers are scattered
throughout the country. Thus, there is a need to maintain proper relationship among them
by using appropriate means of communication. Here business letters play an important role.
The customers can write letters to the businessman seeking information about products and
businessmen also supply various information to customers. This helps them to carry on
business on national and international basis.
2 Serves as evidence: We cannot expect a trader to memoires all facts and figures in a
conversation that normally takes place among businessmen. Through letters, he can keep a
record of all facts. Thus, letters can serve as evidence in case of dispute between two parties.
3 Create and maintain goodwill: Sometimes business letters are written to create and
enhance goodwill. Businessmen at times send letters to enquire about complaints and
suggestions of their customers. They also send letters to inform the customers about the
availability of a new product, clearance sale etc. All this results in cordial relations with the
customers, which enhances the goodwill of the business.
4 Inexpensive and convenient: Though there are other modes of communication like
telephone, telex, fax, etc. but business information can be provided and obtained
economically and conveniently through letters.
5 Formal communication: It refers to interchange of information officially. The flow of
communication is controlled and is a deliberate effort. This makes it possible for the
information to reach the desired place without any hindrance, at a little cost and in a proper
way.
6 Help in expansion of business: Business requires information regarding competing
products, prevailing prices, promotion, market activities, etc. If the trader has to run from
place to place to get information, he will end up doing nothing. It will simply result in loss
of time. But through business letters, he can make all enquiries about the products and the
markets. He can also receive orders from different countries and, thus enhance sales.
7 Independent of interpersonal skills: Interpersonal skills are the qualities and behaviours
a person uses to interact with others properly. In the business domain, the term refers to an
employee's ability to work well with others while performing their job. Interpersonal
skills range from communication and listening to attitude and deportment.

FUNCTIONS OF BUSINESS CORRESPONDENCE / 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 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.
Business people have to communicate with the suppliers, debtors, creditors, customers
and with other concerned parties to exchange information. Business letters are basically used
to communicate with the above parties.
 According to Ricks and Gow, “The primary purposes of business letters are to inform,
instruct, request, inquire, remit, order, advice, correct and to question”.
1. Get Attention and Make Sales: Despite the trend to conduct business electronically, the
traditional sales letters remain an important tool of modern business. Most business letters
are actually sales letters since their intended purpose is to promote the sale of either goods
or services to the recipients. There are five main objectives of sales letters:
 To attract the recipient's attention.
 To establish a friendly relationship with the recipient.
 To appeal to the recipient's purchasing motives.
 To persuade the recipient to take action.
 To provide the recipient with the opportunity to take action.
2. Promotional Functions / Promote the Business and Influence Action: The goal of any
public-relations endeavor is to influence a targeted audience’s beliefs, attitudes or actions.
Such is the case with a public-relations letter. The PR letter's main objective is to
influence positively an audience's impression of the company or organization. Some
examples of public-relations letters are those that strive to accomplish the following
goals:
 Promote a new business.
 Invite customers to open charge accounts.
 Thank customers for their business.
 Welcome potential customers to the community.
 Announce a special sale or service.
 Offer incentives to use the services of the company.
3. Requests and Responses: The most routine business letters either make a request or
respond to one. Examples of request letters include reserving a meeting room, requesting
a price quote, asking for billing statements, and setting up appointments. Nevertheless,
these routine letters are not to be treated routinely. Therefore, you should follow certain
guidelines when either submitting a request or responding to one:
 Provide complete information.
 Never make unreasonable requests.
 Be accurate and precise.
 Never be discourteous.
4. Claims and Adjustments: Customers sometimes complain about faulty service or
products. When such occasions arise, businesses must respond by negotiating with
customers in order to make an adjustment. Additionally, businesses also write claim
letters, such as when a supplier fails to send the right product or does not ship it at all.
However, whether responding to or submitting a claim or an adjustment, you should keep
the following rules in mind:
 Make certain that you have all the facts.
 Be accurate and complete when describing the claim.
 Avoid being accusatory, threatening or demanding.
 Be courteous.
 Suggest a reasonable solution that will agreeable to all concerned parties.
5. Hospitality and Social Communications: Congratulating business workers on special
occasions is a common courtesy and tradition. Employers should also send letters of
condolence when an associate suffers a loss or tragedy, respond promptly to formal
 invitations, recognize retirements and express gratitude for gifts, hospitality or special
treatment. Not acknowledging such circumstances portrays the company in a bad light.
6. Informational Functions: Business letters provide valuable data about earlier policies,
transaction and all other activities of the organization. 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.
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. Goodwill Functions: Business letters promote goodwill among parties transacting
business. They build a good rapport between parties in a business transaction.
9. Convey Information: The basic purpose of any business letter is to convey information
regarding business activities. Information can be transmitted through business letter to
customers, suppliers, debtors, government authorities, financial institutions, bank and
insurance companies and to any other parties related with the business.
10. Conclude Transaction: This is one of the specific purposes of business letter. To conclude
in completed transactions business letters are frequently used.
11. Creation of Demand: Business letters especially circular letters used to create demand for
new products. Circular letters can communicate many people in the same time.
12. Creation of Goodwill: In this electronic era messages can be sent within few seconds
through electronic media but a well decorated business letter has its own importance in
creation positive image of the company.
13. Expansion of Business: Through goodwill messages and through circular letters existing
market can be expanded.
14. Establishment of Relationship: Another important purpose of business letter is, it helps
to establish mutual relationship with the customers, suppliers and with the other interested
parties.
15. Evidence: Business letters are also used to maintain documentary evidence. Letters can be
preserved for future reference.
16. To Inquire: A business concern not only sends messages but also receive information from
the outside. To run the business any firm need different types of information from outside.
Through business letters firms can inquire regarding necessary matters.
17. Placing Order: It is very common purpose for using business letter. Both trading and
manufacturing concerns need to place orders for finished goods or raw materials to run the
business.
18. Problem Solving: In the course of business, disputes and misunderstanding may arise.
Business letters play vital role in solving such misunderstandings.

BUSINESS LETTERS: These are letters from business houses to their customers or other
business houses or to statutory bodies; they are also from individuals to business houses. The
aim of these letter is to increase one`s business prospects, and hence tact and persuasive power
is used in writing them. Business letters are the life-breath of business. Despite the availability
of telephone, conventional mail is still very popular. It also increases the reach of a business
house. A commercial business letter is a letter written in formal language, usually used in
business organizations. It grabs the reader’s attention, provides information, makes a
recommendation, asks for attention, supports your position, explains benefits, etc.
Kinds / Types of letters:
1. Personal letters: These being letters to friends and family, express emotions or give news
in an informal manner. They are often handwritten and have little restriction of style and
format.
2. Social letters: These are in the form of invitations (to a wedding, a dinner, etc) and follow
a certain format, sometimes with ample use of the imagination. Death notices are also sent
in a standardized format.
3. Official letters: They originate from government offices, corporations, etc and move
within the narrow restrictions of law. Hence they sound very formal. A distinct and limited
vocabulary is used in such letters.
4. Business letters: These are letters from business houses to their customers or other
business houses or to statutory bodies; they are also from individuals to business houses.
The purpose is to increase one’s business prospects. The various kinds of business letters
are as follows:
a) Enquiries and reply letter: A letter of enquiry is written to secure information about
goods or services that you may require. In this, you state your purpose and ask for the price
list, quotation, sample, etc. It is a letter from prospective buyer to a seller. And answer to
the enquiry should be given that answer is only known as reply letter.
b) Quotations, estimates and tender notices: A quotation is an offer to sell goods at a given
price and upon the stated conditions. That enables the prospective buyer to know where the
seller stands in the deal. Estimate is the approximate value which may be happen to the
product.
c) Orders and letters informing of their fulfillment: A letter of order is a legally binding
contract; hence it has to be written with proper caution. If an order is sent over the
telephone, it is desirable to confirm it in writing. An order must be promptly acknowledged,
especially if the fulfillment is going to take some time. It must be in writing letter or sending
a printed acknowledgement card.
d) Circular letters: When the same information is needed to pass to many people’s which is
not possible for him to say one by one then the circular is issued. While the body of the
letter remains the same. In each letter it can be mentioned the name of the recipient his
address and use of appropriate salutations.
e) Letters requesting payments: Reminding the customers about their credit for the product
and giving information about the amount this letter is requesting payment letters.
f) Sales letters: A sales letter is a type of personalized advertising right into the customer's
house. Unlike general media such as newspapers and public posters, it is sent to some select
prospective customers whose list is prepared on the basis of their higher potential as
customers. The purpose of a sales letter is to make the reader feel the need for an item and
make him buy it.
g) Complaints (claims) and replies (adjustments): Complaint letter is the letter written by
the buyer to the seller when the goods or services are getting delayed or not up to the mark
to get an adjustment or corrected. An adjustment letter is written in response to a complaint.
It explains how the complaint will be remedied. The first step towards solving a complaint
is to investigate the causes of the complaint and to assess your responsibility in the matter.
Thereafter you may either grant an adjustment or refuse it.
h) Goodwill letters: Greeting, Thanks, Congratulation etc... These kinds of letter are send
by the firm or by any kinds of industry to create a name of the company these kinds of
 i) letter may increase the reputation of that particular institution.
j) Agency Letter: An agent is one who is appointed to act for another. The person who
appoints the agent is known as the principal. The agreement between them is known as the
agency agreement. The person appointed on behalf of the other person in the company to
uphold the duties & carry out the work.
k) Collection Letter: Collection letter means it is a letter written by the seller to the customer
to recover or collect the dues for the goods and services given on credit. It customer has
not paid in time it necessary to remind the customer to make the payment.
l) Credit and status enquiries: The letter that is written for obtaining information about a
business enterprise is termed as business status inquiry letter. The purpose of writing
this letter is to obtain information relation to: Financial capability or credit worthiness. .
m) Import-Export letters: Import export business is another aspect of general trade. The
only difference is that the trading is between an indigenous concern and a foreign company.
Normally, these letters have to be written with an understanding of the working of the
working company and the cultural environment of the people who are responsible for that
foreign company. In fact, export business also involves communication at different levels,
with licensing authorities, transporters, customers, authorities and others.
n) Correspondence with banks: Correspondence with banks is essential for organizations.
Banks also are business houses and they have to correspond with clients and customers.
Banks whether private or Public, Local or foreign, have to face stiff competition from
others. Computerized accounts, Automatic Teller Machine, Credit and Debit cards have
enlarged the scope of business. Banking correspondence is of a special nature because it
deals with finance. Letters have to be carefully written to protect the interest of the bank as
well as its clientele.
o) Correspondence with insurance companies: The basic risk covered is financial. It is a
contract between an insurer and an insured. In it, the insurer agrees to pay or compensate
for the loss. In return to which the insured pay premium for a fixed period of time. Any
written information regarding it is insurance correspondence.
p) Job-related letters: A routine offer letter contains the position, department, start date,
reporting relationship and job duties, salary and description of benefits. Many employers
provide an offer of employment that is contingent upon the candidate passing a
background check, and that would be stated in the offer letter.
q) Internal communication: It is the transmission of information between organizational
members or parts of the organization. It takes place across all levels and organizational
units of an organization.
r) Correspondence with public authorities
s)Miscellaneous letters: These include letters to the editor, open letters to famous persons,
letters by non-government organizations, etc.

IMPORTANCE OR ADVANTAGES OF BUSINESS LETTERS

Letter is as an indispensable tool of communication in business. Business letters are used to
sell the products, make inquiry about customers or prices of goods, seek information and
advice, maintain good public relation, increase goodwill and perform a variety of other business
functions. With the continuous growth of commerce and industry, usefulness and importance
of business letter are also increasing gradually. Some points highlighting the benefits or
importance of business letter are discussed below:
1. Drafting at convenience: A letter can be composed at leisure and over a period of time,
revised and edited before presentation. It can be read by the recipient at his leisure, and he
can make his own markings on the message received.
2. Reaches far and wide: Within town or out of it, within the country or abroad, a letter
reaches the target with much convenience. Through letters, a businessman can reach
thousands of persons at thousands of places.
3. Exchanging business information: Letters are the most economic and convenient means
of exchanging information. With the help of letters, executives can easily exchange
information with customers, suppliers, investors, government offices; regulatory
authorities etc.
4. Establishing business relationship: Business letter play important role in establishing
and maintaining relationship with various parties. Business letters reduce the distance
between a business and its customers, suppliers, creditors and other public groups.
5. Creation of markets: Circular letter a form of business letter, helps to create new markets
for goods and services. This letter contains information about utility, features and
usefulness of the products and induces the customer to buy the products.
6. Create and Maintain Goodwill: It helps in creating and maintaining goodwill between a
business and a customer. Any letter to enquire, complaint, suggestion or feedbacks helps a
company to grow and maintain goodwill.
7. Substitute to personal visit: Introduction of letters in business world relieves the business
executives’ form visiting their clients, suppliers, creditors and other public groups by
traveling a long distance. For this reason, commercial letters are called alternative
technique to personal visit.
8. Solidifies a business bond: A decent letter helps to establish a business relationship which
can be developed further with future deals. Sales letters can go in large numbers and do
wonders for the sellers.
9. Helps to expand business: Apart from the convenience of reaching remote places, letters
enable the writer to explore new prospects in new territories.
10. Saving cost and time: Business letters relieve the busy executives from visiting
personally their clients and other concerned parties. Therefore, valuable time and costs
can be saved.
11. Maintaining secrecy: Business letters also help to maintain secrecy of information. Non
one other than the sender and receiver can know the message contained in the letter.
12. Increasing goodwill: Business letters, like inquiry letter, circular letter, order
acknowledgement letter, adjustment grant letter etc help to increase good will of a business
with the customers.
13. Formal agreement: Business letter acts as formal agreement between buyer and seller.
For example an order letter contains name of items, price, and quantity, time of delivery
and mode of payment. All these are regarded as the conditions of agreement between buyer
and seller.
14. Settlement of transaction: Commercial letters have paramount importance in setting
business transaction. For example, by writing claim letter, buyer can raise his claims to
the seller by writing collection letters; seller can collect dues from the customers.
15. Use as reference: Information exchanged through letters can be preserved permanently
and used as reference when need arise. Therefore, making business decisions becomes
easier.
16. Legal acceptance: Business letter is an acceptable document in the eye of law. It can be
stored and produced as a documentary proof and for clarifying matters in the event of a
dispute.
17. Assistance in local and international trade: Bothe local and foreign trade essentially
requires the help of various business letters. Through letters, businessperson make inquiry
about products and prices place orders for goods collect the dues make and settle claims
etc.
18. Saves money in communication: Personal conferences and meetings are expensive to
arrange. Letters are cost effective. Phases frequently required can be saved and used again
and again.
19. Convenient for giving unpleasant news: A letter can explain the full situation of the
‘no’, which helps to cool tempers. A letter also gives the recipient the time to think before
reacting, which is a major courtesy.
From the above discussion, it can be concluded that successful operation of business
activities establishing, maintaining and developing business relationship and finally achieving
business goal all require help of business letters. In a sense, conducting business is impossible
without business letters.

ESSENTIALS OR QUALITIES OF A GOOD BUSINESS LETTER:

1) Clarity: Clear thinking and simple expression are the two important virtues of effective
writing. A good letter should show its idea directly and clearly. Each sentence should be as
simple as possible. The reader should have no difficulty in understanding what the writer
means to say. When the reader gets the same meaning from the-message as what the sender
intended, it is a good letter.
2) Conciseness: Transmission of maximum information by using minimum words should be
the aim of letter-writing. Unnecessary details and roundabout expressions should be avoided.
People are busy and they receive a number of letters daily. Unless one says quickly what one
wishes to say, he will not be able to get the attention of the reader and focus it on the message.
Therefore, a letter should be simple and brief.
Long Short
They do not have money. They have no money.
It is a company which is very wealthy. It is a wealthy company.
3) Completeness: The letter should contain all the essential points a reader is expected to
know. For example, a sales letter should include the description of the goods, price, quality,
how and where to buy, the date of delivery, discounts etc. If it gives only partial information,
it is not a complete letter.
4) Correctness: The correctness demands no error at all in grammar, idiom, spelling, and
punctuation. Besides, the information given in the letter must be accurate; otherwise it will
shake the confidence of the reader. The message should not be transmitted unless the sender
is sure of its correctness.
5) Courtesy: Courtesy means politeness. It always pays to be courteous in business. It softens
the sting of an unpleasant piece of information, creates goodwill and produces a favourable
response. Goodwill is a great asset for an organization and courtesy in correspondence is one
of the most natural and economical means of building it.
 Plain More courteous
We have received your letter … Thanks for your letter…
Your letter is deliberately wrong… To set the record correct, we may submit that
6) Cheerfulness: There should be no negative approach in a letter. It must begin with a
positive and optimistic note. The approach should be friendly and convincing.
7) Promptness: Promptness in replying a letter is absolutely necessary. The general practice
is to reply a letter the same day it is received. When it is known that a reply to a letter requires
time it is necessary to acknowledge the letter received and intimate the probable time required
sending full reply.
8) Appropriateness: Appropriateness refers to writing or replying letters keeping in mind the
relation and psychology of the reader as well as the need of the occasion. The tone, style and
language should be changed according to the occasion.
9) The ‘You’ attitude: In business letters, the reader’s interest must be emphasised and not
the sender s interest. To make letters effective, avoid words such as T and “we’ and use as
many as ‘you’ as possible. The ‘you attitude’ can be used effectively in all kinds of business
letters.
We attitude You attitude
We are happy to inform … You will be happy to know…
We shall send the free copy if we Your free copy will be sent to you if you
receive… reply…
10) Concreteness: A business letter has to avoid approximate statements when exact ones can
be given or are expected. For eg., a complaint letter can replace the phase ‘loss on a large
scale’ by the phase ‘loss of a 1000 man-hours’.
11) Convincing power: Every letter sells an idea and is, to that extent, a kind of sales letter.
To get appropriate action is the aim of the letter, for which all the skills of a good sales letter
are to be applied. One has to state the benefit to the receiver and the reason why, and do so in
appealing language.
12) Integral: The purpose of business communication is to create understanding, bring about
cooperation and initiate constructive action. Therefore, all communication should be in
conformity with the general objectives of the organization

STRUCTURE OR PARTS OF THE BUSINESS LETTER:

1 Heading: Many business organizations use printed letter head for business
correspondence. The letterhead contains the name, the address, the line of business,
telegraphic address, telephone numbers, telex numbers, e-mail address etc.
2 Date: The date should be indicated in the upper right hand corner of the letter sheet. It is
generally written two or three spaces below the last line of the letterhead.
There are two methods of indicating the date:
a In the order of day, month and year — 10 July 1999.
b In the order of month, day and year — July 10, 1999. Both methods are acceptable.
It is advisable to write the names of the month in full.
3 Reference number: Every letter sent by a firm should carry a reference number just as
vehicles carry a registration number. It identifies the letter for reference and for purposes of
law. It may include the file code, department name in the form of initials and an outward mail
 number. However, it should be short and handy.
4 Inside address (receiver’s): The inside address consists of the names and address of the
person or firm to whom the letter is written. It is generally written two spaces above the
attention line and two spaces below the level of date. If there is no attention line it is given
above the salutation in the left margin. The full address, i.e., the name of the person, firm,
street, road etc. should be written as indicated in the source you got the address from. The
details should not be abbreviated.
While addressing a firm, ‘Messers’ is used before the name. If the firm bears personal title,
messers should be used. If the letter is addressed to an officer by name write Mr. or Shri before
the name. If the officer is an unmarried woman add Miss and if married Mrs. or Smt. before
her name. For eg.,
(i) Mr. G.R. Guru (ii) The US Embassy
Personnel Manager Shantipath,
Zonal office, Kingsway, New Delhi 110021.
Nagpur.
5 Attention line: When a letter is addressed to a company so that it should reach a particular
office by name or a particular department, then attention line is typed below the inside
address. This line is generally underlined.
Attn: Mr.A.C.Joshi, Servicing Engineer
For the attention of Mr. K.Sanjay
Attention line, however, need not be a part of every letter.
6 Salutation: Salutation means greetings. It shows the respect or affection or politeness
which you introduce in a letter. The choice of salutation depends upon the personal
relationship between the writer and the reader. It is placed two spaces below attention line
or two spaces below the inside address. Some of the common salutations are: Dear Sir (if
the addressee is a male), Dear Madam (if the addressee is a woman, married or single),
Dear Sirs (if the addressee is a firm whose name is prefixed with M/s or Messrs), Dear
customer / Subscriber / Editor, Ladies and Gentleman, Your Excellency, Your
Highness and so on. The salutation comes two spaces below the inside address.
7 Subject line: This line (optional) is used for indicating the theme of the letter. The purpose
of subject line is to let the reader know immediately what the message is about. By seeing
this the reader can understand at a glance what the letter is about. The usual practice is to
type this line in a double space between the salutation and the first line of the body.
Dear Sirs,
Sub.: Payment of Bill.
8 Reference: In a reply to an earlier letter reference numbers, date etc. may be mentioned
below the subject. Subject and reference must be separate and must stand out clearly to get
the attention of the reader.
Sub: Your letter no. G-185 dated January 2015 about filing tax returns
9 Body of the letter: The body is the most important part of a letter. The purpose of this part
is to convey the message and to produce a suitable response in the reader. It is, therefore,
important to organise and arrange the material very carefully.
Generally, the body consists of the following:
(i) Opening paragraph: The opening paragraph should be written in such a way that it
attracts the attention of the reader and makes him go through the letter.
 (ii) Main paragraph: The main paragraph contains the subject matter. It should cover all
the relevant points which the writer wants to convey. It should be written in simple, clear
and unambiguous terms.
(iii) Closing paragraph: The closing paragraph should indicate the expectations, intentions
and wishes of the sender.
10 Complimentary or Formal close: This is equivalent to ‘Good bye’ in conversation, and
is followed by the signature of the writer. The formal close depends on the relationship
with the addressee. Do not close a formal letter with ‘With regards’ or ‘With warm regards’.
Do not end the letter with Thanking you.
Complimentary close Remarks
This is used in official correspondence with superiors
Yours faithfully,
and with government departments. Write
Yours truly,
‘Respectfully’ if the addressee outranks you.
Yours faithfully, This is standard complementary close in business
Yours truly, correspondence.
Yours sincerely, It is less formal. It is used when the writer is familiar
Sincerely yours, with the correspondent.
(Yours) cordially, This is used in formal business letters. One can drop
(Yours) sincerely, ‘Yours’ if one desires.
11 Signature block: The formal close is followed by the signature and name and / or
designation of the letter writer. Some of the signature blocks have this appearance:
a. A sole trader may sign letter as Yours faithfully
S.J. Patel
Proprietor
b. In case of a partnership firm, any one of the partners may sign either by writing in ink
the name of the firm or putting his signature below the typed name of the firm.
Yours faithfully
for KEVIN & CO
S.J. Neeraj
Partner
Per Pro signatures: Per pro or p.p. is the abbreviated form of per procurationem, a Latin
phase meaning ‘as an agent for’ or ‘on behalf of’. A firm may authorize a reliable employee
to sign letters on its behalf. This authority is delegated by the execution of a legal instrument
known as power of attorney. While signing letters, such employee will put per pro, or pp,
before the name of the firm: Per pro KEVIN & CO. c. In
case of a company, important officers such as the managing director, the manager, the
secretary, etc, may have the authority to sign letters on behalf of the company.
12 Enclosure notation: A letter may enclose a document with the abbreviation Enc., indicate
that a brochure, draft, cheque, money order, or other document accompanies the letter. It
starts at the left-hand margin. This is already mentioned in the letter with a phase like ‘we
enclose a price list as desired by you’. This again mentioned below the signature block. If
more than one item accompanies a letter, the notation should indicate how many there are.
13 Copy notation: Sometimes, a copy of the letter is sent to another person or official. Copy
to: All departments
Copy : Sales supervisor
cc: Record Section (‘cc’ stands for carbon copy)
14 Identification marks: Some person other than the signatory of a letter – the typist or junior
officer – who is co-responsible for the letter puts his initials on the letter in the typed form.
15 Post script or PS: Sometimes useful information arrives after the letter is typed, or an
afterthought occurs. This is typed at the bottom of the letter, or is handwritten, n as few
words as possible. Some letter writers deliberately plan a post script to give additional force
to their letter. P.S: The offer is valid only up to 31 st December 2015.
16 Miscellaneous: There may be occasions to write some more notations such as ‘By Speed
Post’, ‘Confidential’ or ‘Urgent’, and this is written in the open space to the right above the
inside address.

TYPES OF BUSINESS LETTER LAYOUT:

A business letter is to be prepared in a particular manner, arranging each part in a

particular place on the letter head. Arrangement of these parts while typing as per a plan is
called a layout. Hat he need not waste time in locating every part containing information. The
purpose is to ensure that each part is visible clearly to the reader, so in the modern
correspondence, three types of arrangements of the parts of business letters are practiced. They
are:
1. Full block (or blocked): When a line of any part is written blocking the space next to the
margin, it is called full bock method. In a full block style, every line begins at the left
margin. The straight and vertical alignment of the features of a letter gives the format a neat
appearance. It is the easiest and the quickest to set up in a machine. In this style, all
punctuation marks get eliminated (except full stop). It is a time saving method originated
in America. Hence it is also known as American style.
This is an important form of layout more commonly used in the United States. The
essential features of this form of layout can be summarized as follows:
1. Under this method, the different parts of the letter and even the paragraphs of the body
of the letter begin from the left hand margin.
2. Only essential punctuation marks are typed. No comma is put after every line of the
inside address, salutation and complementary close.
3. The date line also starts at the left hand margin. However, some people prefer to place
the date in its usual position on the right handside as in the case of fully indented letter
style. They claim that this method helps to give the letter a more balanced appearance
and also facilitates reference to the file.

Sketch showing Full block method of layout of a business letter

Telephone: --------------------------
Mobile No: --------------------------
1. Name of Sender
(Details of Business)
Address
--------------------------
--------------------------
2. Ref No: 3.Date----------------------
4. Inside Address
--------------------------
--------------------------
 5. Sub: --------------------------
6. Salutation --------------------------
7. Introductory Para ---------------------------------------------------------------------
---------------------------------------------------------------------
Main Body -------------------------------------------------------------------------
----------------------------------------------------------------------------
Closing Para -------------------------------------------------------------------------
----------------------------------------------------------------------------
8. Complimentary close
Sd/-
(Name)
9. Designation
For: --------------------------
10. Encl: 1.------------------------
2 ------------------------
11. Copy to: 1.------------------------
2 ------------------------

SAMPLE LETTER
LAYOUT DESIGN OF FULLY BLOCKED FORM

PRASANNA PUBLISHERS & DISTRIBUTORS

EDUCATIONAL PUBLISHERS

Phone : 044 – 2858 1754 Old No. 20, Krishnappa Street,

Email: prasanapublishers@gmail.com Chepauk, Chennai – 600 005.
19th January 2015
Prof. S. Kishore
Jain College
Chennai.
Dear Professor Kishore

We are very glad to inform you that we are sending a copy of our recent publication Business
Correspondence for your reference and recommendation. The book is written in simple
language and suits the new syllabus of the Madras University. The book runs nearly 430 pages.
The price of each volume is Rs. 160/-.

A specimen copy of the book is sent to you by a separate parcel.

Please favour us with your valuable orders.

Yours sincerely
For PRASANNA PUBLISHERS & DISTRIBUTORS
SP Meyyappan
Proprietor.
2. Full Indent or Modified block: In modified block style, each of the lines following the
first line of inside address, subject, enclosures, etc., are typed in different margins, where
some of the parts are moved to the right, and some punctuation marks are added to the
inside address, salutation and complimentary close. In this format, the date line and the
closing lines are deeply indented so that the end of each line is nearly at the margin. This
modifies the block form by making the letter less crowded on one side. This is also known
as Hanging style. This method consumes a lot of time for preparing a letter, and is also
shabby to look at. Hence this method has been out of practice for a long time.
This is the traditional form of layout and is very popular in England as well as in our
country. The special features of this method are as follows:
1. Under this method, the inside address, opening salutation, body of the letter etc. are all
indented five space from the previous lines.
2. 1 ½” Margins are generally given on both sides and the date is so placed that the last
figures serves as a guide for the fight hand margin.
3. Every line of address has a comma at the end and the last line ends with a full stop.
4. The first line of each paragraph begins away from the margin or indented.
5. The complimentary close begins at the centre of the typing line.

Sketch showing Modified block method of layout of a business letter

Telephone: ----------------- Telegram::------------------------
Post Box No: -------------- Telex: -----------------------------
1. Name of Sender
(Details of Business)
Address
--------------------------
--------------------------
2. Ref No: 3.Date----------------------
4. Inside Address
--------------------------
--------------------------
Ref -------------------- (Receiver’s reference) --------------------------------
5. Sub: --------------------------
6. Salutation --------------------------
7. Introductory Para ---------------------------------------------------------------------
---------------------------------------------------------------------
Main Body -------------------------------------------------------------------------
-------------------------------------------------------------------------
Closing Para -----------------------------------------------------------------------
-------------------------------------------------------------------------
8. Complimentary close
Sd/-
(Name)
9. Designation
For: ------------------------
10. Encl: 1.------------------------
2 ------------------------
 11. Copy to: 1.------------------------
2 ------------------------

SAMPLE LETTER
CLASSIIC ENGINEERING WORKS

Telephone : 044 – 2475 44 27, 425, Poonamalle High

Road,
Telegram : CLAS Arumbakkam,
E-mail :azhagu@gmail.com Chennai – 600 106.

G.S.S. / R.K. 4th March 2015

Mr. C. AbilashSekar,
Trading Company,
45, Bazaar Street,
Coimbatore – 641 001.

Dear Mr. Abilash,

I am writing to you personally just to say that now very much I appreciate the warm
welcome you extended to our Managing Director to Mr. Sukkal when he visited your town last
week.

The help and advice you gave him and the introduction you arranged for him have
resulted in a number of very valuable business contracts and I should like you to know how
very grateful I am for all you have done to make them possible.

I realize the value of time of a busy executive like you and this makes me all the more
appreciative of the time you so generously gave to Mr. Sukkal.

Yours sincerely,
For CLASSIC ENGINEERING WORKS,
RM. ARUNACHALAM.
General Manager.

3. Semi-block Method (mixed style): In this style, apart from the punctuation marks above,
the signature block is moved to the centre. At some additional work to the typist, this makes
the letter more balanced and graceful.
Sketch showing Semi- block method of layout of a business letter
Telephone: ----------------- Telegram::------------------------
Post Box No: -------------- Telex: -----------------------------
1. Name of Sender
(Details of Business)
Address
--------------------------
--------------------------
 2. Ref No: 3.Date----------------------
4. Inside Address
--------------------------
--------------------------
Ref -------------------- (Receiver’s reference) --------------------------------
5. Sub: --------------------------
6. Salutation --------------------------
7. Introductory Para ---------------------------------------------------------------------
---------------------------------------------------------------------
Main Body -------------------------------------------------------------------------
---------------------------------------------------------------------------
Closing Para -------------------------------------------------------------------------
----------------------------------------------------------------------------
8. Complimentary close
Sd/-
(Name)
9.Designation
For: ------------
10. Encl: 1.------------------------
2 ------------------------
11. Copy to: 1.------------------------
2 ------------------------
 UNIT II
BUSINESS LETTERS AND PERSONNEL CORRESPONDENCE
I. ENQUIRIES:
The first step of a commercial transaction is to make enquiries. Enquiries are the most
common type of business communication. They are very important because an enquiry, if
properly made, would bring valuable business information.

Meaning: A letter of enquiry is an information seeking letter. Enquiry letter is a letter written
by a potential customer who desires to buy goods and services offered by another organization,
seeking information on various matters such as availability of goods, prices of certain goods,
quality, trade terms, delivery mode, etc. There are two types of enquiry letters viz, Solicited
and Unsolicited letter of enquiry.

Solicited letter of enquiry: When a letter of enquiry is sent in response to an advertisement

inviting the reader to correspond with more particulars, it is called a Solicited letter of enquiry

Unsolicited letter of enquiry: Where a buyer takes initiative to ask for information, it is called
an unsolicited letter of enquiry.
Purpose of an enquiry letter:
• To know the availability of certain goods of specified quality.
• To know the current price of goods.
• To ensure purchase of goods from the cheapest source of supply as letters of enquiry are
addressed to a number of dealers.
• To tap new sources of supply.
• To know the details of allowed financing-credit.
• To ask for sample.
Important aspects of or guideline for drafting an enquiry letter:
The following general tips should be remembered while writing a letter of enquiry:
1) The purpose of enquiry must be clearly stated.
2) The quality and quantity of goods required should be mentioned very clearly, besides
requirements as to packing, etc. must be given in full.
3) Order size may also be indicated. The supplier is likely to quote a lower rate in case of bulk
buying.
4) If any special form of packing or mode of delivery is desired, it must be clearly mentioned.
5) The probable time required for delivery, terms of payment, discount allowable, etc, must
be ascertained.
6) If samples or patterns are desired before ordering for supplies, it must be ascertained.
7) To facilitate proper handling and checking, the list of items, if any, may be given in a
tabulated form with proper identification/specification with product name/brand, etc.
8) Letter of enquiry should indicate whether one would like to purchase for cash or credit
and any other terms of payment. In such a letter, credit references may also be given,
especially in case the intention is to have credit and when it is the first transaction.
9) Letters of enquiry should be brief, specific and clear. Sentences should not be long, but
should be simple.
SAMPLE: SOLICITED ENQUIRY LETTER
Tamil Nadu Electrical (Pvt) Ltd.

(Leading retailers of all electrical goods)

25, Church Road,
Ernakulam,
Kerala – 682 001

15th March 2011

Ref: NEP/253/11

All India Electrical Pvt. Ltd.

Brown House,
123, Million Road,
Calcutta – 5.

Dear Sir,

Sub : Celling fans agency

Ref : Your advertisement in newspapers.

We have read your advertisement in The Hindu, dated 10-03-11 for stockiest of your
Fast Tracker brand of fans.

We are an old and established firm in the city of Kerala. We deal in a wide range of
electrical goods among other things. We are willing to take up dealership for your celling fans
and would appreciate it, if you would kindly send us your terms and conditions of awarding
dealership. We can furnish you with satisfactory bank and other references.

Thanking you,

Yours faithfully,
R. Radha
Manager,
For Tamil Nadu Electrical (Pvt) Ltd.
SAMPLE: UNSOLICITED ENQUIRY LETTER

A dealer in sunglasses drafts a letter asking for a catalogue.

Raj Opticals
 1, Junction Road,
Thirunelveli – 627 756
30th July 2010
M/S Ansar Ali & Sons,
Chakla Street,
Mumbai – 400 056
Dear Sir,
As we intend to purchase large stocks of your sunglasses, please send us your latest
catalogue and price list.
Should your prices and terms suit us, we will soon place an order on cash basis.
Yours faithfully,
P. Jayapandian
Proprietor
Example: Enquiry for marketing the goods in a particular area
Patel Computers Private Ltd.
10th Floor, Patel Chambers, Ellisbridge, Ahmedabad - 380 009
Tel.: 2120018 Fax: 2120211
Vision Computers Ltd.
53, New Market, Indore (M.P.)
2nd June, 2012
Dear Sir
We have seen your new model of Personal Computer (PC) at the Information
Technology Exhibition in Pragati Maidan, New Delhi and are very much interested in this
model. We would like to market the PC in Gujarat if you are prepared to give us the exclusive
dealership for the entire State. As you know, we are the leading computer suppliers in Gujarat
with branches in almost all the main towns. If this suggestion interests you, we shall be glad to
know what prices and terms you can allow us. Please send your latest catalogue.
Thanking you
Yours faithfully
Sd/-
Harish Patel
Managing Director

II. REPLIES:
Routine requests for only a catalogue or a price-list may not need a covering letter. It
may be sufficient to send the requested material with compliments. However, enquiries from
big business houses deserve more attention. When requests are made for credit, then the seller
must clarify the position. It is uncommon to grant credit at the time of a first transaction. But
rejecting the offer outright is also undesirable. Instead, the seller may make a counter-offer in
the form of, say, a higher than usual cash discount.
A reply to an enquiry must take care of the following:
i A reference to the date and no. of the letter of enquiry.
ii Thanks to the party for interest in the receiver.
iii Courteous tone.
iv All relevant information about goods, prices, discount etc.
v Whether the catalogue/price list is enclosed or is being sent separately.
vi Assurance of best service to the sender of enquiry.

Example 1:
Dear Sir,
We thank you for your letter showing interest in marketing our garments. We are
enclosing the catalogue and the price-list requested by you. This price-list will remain valid till
the end of the year. You will appreciate the fact that we have not done any business before.
Therefore it will not be possible for us to extend credit initially but we can offer you a higher
than usual cash discount. We look forward to hearing from you soon.
Yours faithfully,
XYZ
Example 2:
Dear Sir,
We thank you for your enquiry about Washer-dryers and are confident that our model
XL-60 will meet your needs. This machine has the capacity of 60 Kgs. and carries an on-site
warranty against manufacturing defects for a period of two years. Its current price is
Rs. 1, 25,000 excluding taxes. We may add that the prices are due for revision in three months’
time.
We are enclosing our detailed brochure and trust you will find all the information you
need for placing an order. We look forward to your response.
Yours faithfully,
XYZ

III. QUOTATIONS:

MEANING: A quotation is a specific offer for sale. It is sent in response to an inquiry from a
particular person or business house. Thus it is a reply message to an inquiry from a potential
buyer. A quotation includes details about the prices of specific goods selected, terms of
payment and conditions of delivery while writing such a letter, the seller should clearly state
everything as inquired by the buyer. The letter must be written to the point with conciseness
and complete tone. A seller must have the intention to create goodwill through such letter which
will establish a business relationship.
Contents of Quotations:
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.
6. Time, mode and place of delivery.
7. Details of duties, octroi, etc., payable.
8. Details of packing, labeling, insurance, etc.
9. Net price payable.
10. E and O.E. (errors and omissions expected)

Guideline for drafting a quotation letter:

a Thank the enquiry for his interest.

b Give details of price, discounts and terms of payment.
c Indicate whether the price includes packing, insurance, freight etc. or they are to be
charged for separately.
d State the date of delivery.
e Give the date up to which the quotation is valid.
f Solicit business by expressing the hope for an order.
Sample: Quotation Letter

Help line communication

2nd line road, Bijoy Nagar, Dhaka-1100

1st August, 04

Sales Manager
Tele-Communication Ltd.
25, Gulshan, Dhaka-1212

Ref: An inquiry for price of Mobile sets

Dear Sir,

Would you kindly give us detailed information about the “Nokia 2100” mobile sets recently
advertised by you in the “Daily Star.” we are impressed by the description of the respective
mobile set as advertised by you and expected to purchase if terms and conditions are found to
be suitable. Our annual requirement of such set is around twenty-five thousand (25,000)
pieces.

As we handle a lot of mobile sets each year, we hope and trust you will quote the most
favorable prices and terms.

Yours faithfully

M. A. Karim
Purchase Manager,
Helpline Communication
IV. Credit or status enquiry:
Meaning: Status enquiry means before granting credit to customer/buyer, the seller should
know purchaser financial position & credit work things. If a firm receives on order to be
executed on credit basis it must supply the goods only after confirming the soundness of the
parties, such enquiry is called as status enquiry. It is an enquiry made by the seller to know the
credit worthiness or the financial soundness of a prospective buyer.
Guidelines to be remembered to write the status enquiry:
g A reference of the buyer is men timed in the letter.
h A clear idea is to be given as to why the letter is written.
i The question should concerning the credit worthiest of the buys
j Assurances are necessary to safeguard the privacy of dealing.
k When chances arise are must be ready to return the favorer.

Example: Status Enquiry Letter

Planet Ltd.
25, Gulshan, Dhaka-1212

1st July, 14

Manager,
Credit operation
Mc-Hill Communication
20, Motijheel, Dhaka-1000.
 Confidential
 Ref: Request for Credit Information
Dear Sir,
The firm named below wishes to develop business with us and has given your name as a
credit reference:
Oxford Ltd.
Radio Link Connector
26, Dilkusha, Dhaka-1000

Any information you may furnish us will be treated as strictly confidential.

We shall appreciate an early reply and assure you of our willingness to cooperate at any time.
A stamped and addressed. Â envelope is enclosed for your convenience.
Yours faithfully,
A.R. Khan
Administrative Manager Planet Ltd.

V. PLACING ORDER:

MEANING: A letter of order is a legally binding contract; hence it has to be written with
proper caution. If an order is sent over the telephone, it is desirable to confirm it in writing.
The order represents a commitment on the part of the buyer to pay for the product once it
is executed. An order letter should contain description of goods (quality, brand, grade, size,
colour, etc), quantity, packing, mode of carriage, time and place of delivery.

Guidelines for placing an order or Order can be placed in letter form by clearly stating
the following:

 Reference to the seller’s letter number, date.

 Catalogue number. / Price quoted therein.
 Specification of goods, quantity required.
 Price per unit and total amount involved in the transaction.
 Shipment / forwarding directions, clearly mentioning whether certain goods are to be sent
by parcel post ,passenger train, truck, lorry or ship.
 Instructions regarding packing, insurance.
 The manner of payment agreed upon / Clarify the mode of payment
 Time limit, discount, quality.
 The time period of delivery to be clarified.
 State the address where to be delivery of goods.
 Polite closing inviting a confirmation of acceptance..

LAYOUT OF PLACING ORDER:

HIMALAYA STORES

16, Inner circle, Connaught

Date: 24/11/2017
Place: New Delhi.

The Sales Manager

Unique Biotique products
16, Andheri (west)
Mumbai

Dear Sir,

Thank you for catalogue and price list. We are glad to place our first order with you
for the following items.

S.No Product No. Product Name Quantity Cost each (Rs) Total (Rs)
1 1047 Anti-wrinkle 500 pcs 100 50,000
2 6032 Moisturizer 500 pcs 75 37,500
3 4253 Almond cold cream 500 pcs 85 42,500

Since we require the above items to replenish our exhausted stock, we request you
to kindly dispatch them by passenger train, carriage forward to new Delhi shall arrange for
taking of the goods at our end.

The R/R and the invoice, at 7% discount may please be sent through oriental
bank Ltd.New Delhi
Yours faithfully

(S.Pal)

V. Fulfillment of order:

MEANING: An order must be promptly acknowledged, especially if the fulfillment is going

to take some time. It must be in writing letter or sending a printed acknowledgement card.

An order must be promptly acknowledged in either of the following ways

➢ By writing a special letter of acknowledgement the acknowledgement of an order has
the following aims
➢ building up goodwill by expressing gratitude for the customer’s interest in the seller
➢ legal acceptance of all the points mentioned in the order
➢ reference to the date of receipt of the order
➢ statement of when the order will be fulfilled and when it will be delivered
➢ Statement of desire to be further service to the customer

Guidelines for responding to an order:

• Thanking the customer and building goodwill.
• Legal acceptance of the terms of the order.
• Reference to the date of receipt of the order.
• Stating when the order will be fulfilled and the likely date of delivery.
• Putting in a clause about getting further business and continued support from the
customer.
SAMPLE LETTER:
UNIQUE BIOTIQUE PRODUCTS

16, andheri (west) Mumbai

Date : 29 /11/2018
Himalaya stores
16, inner circle
Connaught place, New Delhi

Dear sir,
Thank you very much for you order letter no…… of NOV 2018.

we are arranging to send the goods ordered by you within fifteen days by Passenger
train .we are sure you will be well satisfied with the goods .at this price they represent the best
value for your money. beside these, we manufacture and supply a vast range of herbal and
natural health –care items .we are enclosing herewith our latest catalogue for ,we are sure ,you
will certainly be interested in ordering a large quantity of them .

We look forward to a mutually satisfactory and cordial working relationship.

Yours faithfully

Satyam
 UNIQUE BIOTIQUE PRODUCTS

16, andheri (west) Mumbai

date-29 /11/2018
Himalaya stores
16, inner circle
Connaught place, New Delhi

Dear sir,

We are pleased to inform you that your order of 24/11/2010 has been promptly
fulfilled.the cosmetic items ordered by you have been dispatched and you should be getting
them in about ten days from today.

If you wish to have any further information please contact us at once . we shall be
really happy to serve you in whatever way we can.

Yours faithfully

Satyam

VI. COMPLAINTS
Meaning: A complaint letters is a letter which brings the attention of the supplier to the
dissatisfaction suffered by customers. The complaint letter is much like the adjustment letter
except no wrong doing as taken place. Instead, this letter is just to let the reader know that an
error as been found and needs to be corrected as soon as possible. Once again, this letter is a
legal document letting the reader know that something is being done to correct the problem.
IMPORTANCE OF COMPLAINTS:

1 A check on the quality of service and products: Customer complaints open the eyes of
the supplier to the efficiency of his own staff. Complaint and claims offer a good check
on the quality of service or merchandise. Continuous monitoring of complaint letters act
as a control mechanism for their products and services. It is always better to discover a
fault than to let it continue unsuspected.
2 A potential threat turned into an opportunity for growth: Nothing is more detrimental
to good public and business relations than a discontented or dissatisfied customer. If he
writes directly to the company and thereby gets his complaints adjusted, the company is
converting a potential threat into an opportunity for growth. A potential liability becomes
a sales booster because the complainant will spread the word to all his friends and
acquaintances that even a trivial complaint is well-attended by the particular company
which views its customer as its key player.
3 Careful choice of words – an essential ingredient: To stimulate the correct type of
reaction, a careful choice of words is of fundamental importance. An angry outburst will
not solve the problem but will only worsen the situation.
➢ Avoid accusation: It should not give the impression that at the first opportunity,
complaint is leveled against the company.
➢ Avoid being vague and pinpoint the specific complaint: So that the recheck is easily
facilitated.
 ➢ Indicate the consequential loss: The claim letter should also state the inconvenience
or loss resulted from the error.
➢ Suggest the remedial measure: Adjustment or compensation that is desired must also
be indicated.
➢ When soft words do not succeed: When milder methods have failed to prevent
recurrence of grievances, the complaint letter should be severely worded. But no
account should it be drafted impolitely or rudely.
4 In case of imaginary grievance: The error pointed out may be the result of
misinterpretation or misunderstanding on the part of the complainant. In such a case, the
use of strong abusive epithets will apply to the writer himself. In view of what has been
mentioned above it is clear that while the complaint must be voiced in clear terms for
getting the grievance addressed, it should not impair business relations.

REASONS FOR COMPLAINT LETTERS:

There are various occasions that give rise to letters of complaints. Though every effort
should be made to reduce the percentage of errors, occasions may arise when complaints are
lodged by customers. The reasons for complaints can be:
 Delay in execution of order.
 Supply of inferior quality goods or goods not corresponding to samples.
 Supply of goods not ordered for or shortage of supplied goods.
 Goods may arrive in a damaged condition.
 Goods being delivered at the wrong place.
 Incivility (discourtesy) of staff when the customer visits the office.
 Misunderstanding over discounts, credit terms, etc.
 Letters written to bring these errors to the attention of the firm responsible are called claim
letters.
HINTS ON WRITING LETTERS OF COMPLAINTS:
Letters implied in angry tones defeat the very purpose for which they are written. They
should be drafted in such a way that grievances are redressed. The following hints are worth
noting:
➢ The claim letter should avoid anger, irony and allegation.
➢ It should be fair and tolerant, courtesy, rather than angry outbursts, stimulates favorable
action.
➢ Complaints should be based on facts alone vague accusations must be avoided.
➢ It should contain an explanation of what or where the problem is. It should also give
complete information, date, order number, invoice number, size, colour, etc, which may
make a recheck easier.
➢ It should pinpoint the inconvenience or loss that has resulted from the error.
➢ The complainant’s exact requirement should be stated clearly. It should appeal to the
reader’s sense of fair play and honesty.
➢ However, when milder methods have failed to get complaints adjusted, a claim letter can
be worded firmly. In no case should it be drafted impolitely.

GUIDELINES FOR WRITING COMPLAINT:

• Write a complaint letter immediately. If time is lost, the party at the other end may
have difficulty in investigating.
• Do not assume that the supplier was to blame. The true cause of the complaint may be
elsewhere.
• Make a thorough enquiry and investigation at your end and make sure you have a
valid ground for complaint.
 • Ask for a specific remedy or adjustment to solve the complaint.
• Avoid being rude or sarcastic.
• Address the complaint to the development designated for the purpose.
• If you don`t receive the responds at the first complaint, than you can take a harder
approach.
GUIDELINES FOR DRAFTING REPLIES TO COMPLAINTS

While planning a reply to a complaint, the supplier should:

• Promptly acknowledge the letter and thank the customer for writing it,
• Express regret for the inconvenience caused to the customer,
• Admit the fault if something has actually gone wrong,
• Assure the customer of his sincere efforts to make amends,
• Specially what action he is going to take, and
• Close with offer of better service in future.

LAYOUT OF COMPLAINT LETTER:

Sample 1

Drivers Co.
3489 Greene Ave.
Olympia, WA 98502

June 17, 2017

Richard Brown, President

Document Makers
Salem, MA 34588

Dear Mr. Brown:

As someone who has worked with your company for over 3 years, we were very disappointed
to see the documents you produced for our latest Drivers Co. publicity campaign.
As our written agreement stipulated, we expected full-color leaflets with fancy explanatory
texts, but instead, we found that black and white photos had been included in the prepared
leaflets.
I think you will agree that a communication problem exists.
We would like you to send out a photographer to provide us with the promised color
coverage or provide us with a refund.

Yours truly,
Thomas R. Smith,
Director

Sample 2

Soni Publication,
Indore (M.P.)
Date 25/11/2010
SR & Co.
Bhopal (M.P.)
Subject : Letter for apologizing

Dear Sir,

Please accept our apologies for this lapse on our part, We always check all the books before
packing and despatching them. It is really unfortunate that his time you received three defective
sets.

Today itself we are replacing them at our cost. We may also assure you that in future we will
be more careful in fulfilling your orders.

We are really sorry for the inconvenience caused to you.

Yours faithfully,
Shiv Kumar
Soni Publication

VII. ADJUSTMENT LETTERS:

MEANING: An adjustment letter is written in response to a complaint. It explains how the

complaint will be remedied. The first step towards solving a complaint is to investigate the
causes of the complaint and to assess your responsibility in the matter. Thereafter you may
either grant an adjustment or refuse it.

GUIDELINES FOR WRITING ADJUSTMENT LETTER:

➢ A customer is satisfied when the seller takes the stand that the customer is always right.
➢ Acknowledge the complaint promptly. State that it is being investigated.
➢ If the complaint is not valid, point this out without causing offence to the party. Appeal to
his sense of reason.
➢ If you notice an error on your part, acknowledge it and set the correction in motion.
➢ Explain the circumstances in which things went wrong, and state the company policy in
such cases.
➢ Do not name the person who is responsible for the wrong. It is your internal matter.
➢ Thank the customer for bringing the error to your notice.

Example: Adjustment Letter:

Document Makers
2398 Red Street
Salem, MA 34588
March 10, 2001

Thomas R. Smith
Drivers Co.
3489 Greene Ave.
Olympia, WA 98502

Dear Mr. Smith:

I was very disappointed to read your letter in June 17 dealing with the issue of incorrectly
produced publicity leaflets. As someone who values your business, I have already begun to
find a solution to resolve this problem.
My top photographer will call you to arrange an appointment at your earliest possible
convenience to re-take photos in full colour. Also, we will deduct another 15 percent of the
bill for the misunderstanding. Thank you for your patience.

Sincerely,
Richard Brown
President

VIII. COLLECTION LETTER:

MEANING: Collection letter means it is a letter written by the seller to the customer to
recover or collect the dues for the goods and services given on credit. It customer has not paid
in time it necessary to remind the customer to make the payment.

GUIDELINES FOR WRITING COLLECTION LETTER:

1 Tact and Restrain: To someone that he has failed to meet his financial commitment is a
sensitive matter. Hence you have to use a language of tact and restraint. Moreover you have
to provide for two circumstances that the payment is already sent\received but not within
your knowledge or that the goods/services are unsatisfactory.
2 Polite Tons: A good businessman has his future business angle in mind and uses polite
language in a collection letter. He avoids hurting the reader. Even if it is last collection letter
threatening legal action, goods business requires that you be polite and use words like “with
regret”.
3 Show Understanding of the Customer’s Problems: If customer is caught up in a difficult
financial situation himself, has no ready money and has been unable to realize cash out of
your goods he may have good reasons for not paying or not being able to pay.
4 Progressive Steps in Writing a Series of Collection Letters: It may happen that one
collection call is not enough to get your dues.

Example: Collection Letter:

Light and music store,

(house of musical instruments)
Dhanmondi plaza, Dhanmondi
7th October 2016
Manager music corner,
2, new market,
Dhaka-1417
Sub: Account remains unpaid
Dear Sir,
Our account books show balance of Tk 7000 in your account which has now been due for three
(3) weeks. We sent you a remainder last week. But perhaps it may be escaped your notice. We
would like to draw your attention once again to your unsettled account.
It’s quite likely that your business engagements are so pressing that they don’t leave you time
to Attend to many things. It is possible that you may overlook this remainder too. Please pick
up Your check book right now and issue a check of Tk,7000 in our favour and send it in the
attached Postage free envelope. We look forward to receiving your remittance.
Yours truly,
Adithya,
Collection manager,
Light and music stores.

X. SALES LETTERS
MEANING: A letter written with the immediate objective of inducing sales of merchandise
or service is called a sales letter. Though any business letter like reply to an enquiry, trade
circular, etc, may ultimately result in a sale, only those letters which have their immediate
objective as sales of goods or services are called sales letter. When it is drafted for circulation
among a large number of people, it becomes a sale circular.

PURPOSE OF A SALES LETTER:

Business people use sales letters for the following purposes –
 To make direct sale.
 To test the reaction of the prospects to new products.
 To know the queries and doubts of the prospects.
 To promote an image for a new product.
 To strengthen dealer’s sales efforts and to attract new dealers.

ADVANTAGES OF A SALES LETTER:

 It serves as a cheaper medium of advertisement.
 Sales advertisements are not mixed with advertisement of other sponsors.
 It s a personal appeal and hence it carries weight.
 Even distant places can be accessed through sales letters.
 Since it is sent to a lot of customers the impact can be measured immediately.

STRUCTURE OF A SALES LETTER:

A sales letter aims at introducing the right reaction n the recipient hence its structure is
designed to achieve this objective by closely following the four stages of selling process. In
short, the AIDA formula needs to be observed. AIDA means Attention, Interest, Desire and
Action. Sales letter needs to be written in pursuance of the formula.

1.Attracting the reader’s attention: The opening paragraph must be cleverly drafted so as to
get sufficient attention of the reader. If it fails to arouse curiosity, the whole sales letter fails.
▪ The routine opening like ‘we have pleasure in informing you’ must be totally avoided.
▪ If it can appeal to the reader’s self-interest, it can start with a question. For eg., Are you
satisfied with the amount of money you save? Have you seen any cheap watch that is good?
▪ A courteous command is another technique used to arouse attention.
▪ A split beginning is another device used to attract maximum attention. For eg, we can’t
make all the T.V. sets, so we just make the best of them.
▪ A statement of significant factor a quotation from an eminent authority will also focus on
attention.
▪ Anecdotes (true story) are also frequently used as attention arousing device..
2. Creating an interest in the product or service: This depends upon the type of prospect
to whom the letter is addressed and also on the understanding of human desires and
feelings. For eg., if a sales letter is sent to a dealer, it should emphasis on profits, if it is
written to the general public, it will concentrate on benefits.
It is stated that there are 25 reasons why people spend money. It is to make money, to
save money, to enjoy comforts, to enjoy good health, to be popular, to attract the opposite
sex, to protect their family, to satisfy their appetite, to emulate others, to take advantage
 of an opportunity, etc. By appealing to one or more of these reasons, a sales letter can
create the necessary desire for the product or service in the reader.
3. Convincing the reader by winning his confidence, thereby triggering / firing his
desire: The third part the letter should show facts to prove that the claims made for the
product are true.
 Expert testimony: Options of qualified experts in the field constitute a second sales
argument. Opinions of satisfied customers are also given.
 Facts: Details regarding the number of sales effected within a specified period, actual
cost of operation, number of satisfied customers, etc., give factual support to the claims
made for the product.
 The use of logic: A sample offer of the product, giving guarantee cards, etc., may
appeal to the reader’s reasoning.
4. Motivating action: The concluding paragraph of the sales letter should not only stimulate
action on the part of the reader but should also show how we would benefit by it. Business
reply paid envelopes must be enclosed. The reader should be stimulated to act and to act
quickly.

SALES CIRCULARS
The difference between a sales letter and a sales circular is subtle (small but important).
A sales circular is drafted with a large number of people in mind. It may still address them with
a singular salutation such as Customer, Subscriber, Investor or Client. This is done to create
the illusion that it has been drafted with the recipient in mind. Every copy of sales circular may
even carry a different name and address by using the Mail- Merge facility. It would still be a
circular because the same message is being circulated to all the people.

XI. CIRCULAR LETTER:

MEANING: Circular letter means when the same information is to be sent to a number of
people the circular letter are used. While the body of the letter remains the same. In each letter
it can be mentioned the name of the recipient his address and use of appropriate salutations.
GUIDELINES FOR DRAFTING A CIRCULAR LETTER:

• It should be to the point.

• The main idea behind the circular letter on which you desire action should be presented in
an appealing manner.
• Making the circular letter read as if it is written personally is another trick for success. It
can be made more effective by using the name, e.g. Dear Mr. Chopra.
• Add force by using the ‘you’ attitude. You can avoid terms like our customers, all
• Customers, our clients, everyone, etc. by rephrasing sentences.
OCCASIONS FOR WRITING CIRCULAR LETTER:

• Expansion of existing business as when starting a new line of activity

• Establishment of a new branch or reorganization of department within a company
• Introduction of a new product or services
• Change of address, phone number, etc.
• Retirement /appointment of a partner or new appointment to major posts like general
manager, managing directors, etc.
• Seasonal discounts or schemes for add-on
• Conversion of a partnership firm into a limited company
• Revision of prices
• Delay in supply.
Example: Circular Letter

For opening of new branch

Dear Sir,
We take great pleasure to announce that on 1st January, 2014. We are opening a new branch
of readymade clothes at 14, Anna Nagar, Chennai. Mr. Sunil Kumar our manager will be the
in charge of this new branch.
We welcome to visit our branch
With thanks,
Yours faithfully,
Shiva

XII. APPLICATION FOR EMPLOYMENT:

MEANING: A job application is a letters send by the applicant to the employer the offer to
sell his services. The letter should contain the details which should get the appreciation of
the employer. There are two types of applications;

i) Solicited Application: Based on the advertisement from the company for the job.
ii) Unsolicited Application: Application for the job by advertising that I know the vacancy.

GUIDELINES FOR WRITING THE APPLICATION LETTER:

• Make it neat and attractive.

• Addressing to the correct authority.
• If you are responding to an advertisement give required details.
• Keep the letter short.
• Do not presume that you will get the job.
• Make sure that you have all the necessary qualification for the job.
• Ask for an interview.
• Enclose all related documents and records.
• If there is an application fees.
• Some don’ts:
➢ Don’t beg for a job
➢ Don’t exaggerate
➢ Don’t write on both side of paper.
➢ Don’t blame your existing employers.
➢ Don’t ask for a job on account of financial need but on merits.

Example: Application Letter:

55, Ashok nagar
Lawspet
Puducherry
30 may 2016

The Advertiser,
Box No:122
The Indian Express
Anna Salai,
Chennai
Dear Sir,
After reading your advertisement in the Indian Express I would like to apply for the position
of store person with your company.
I have been employed with a major company for several years as retail assistant, and have some
stock control experience. My background with a large chemical company has also given me
experience in handling hazardous material, and I am aware this would be an aspect of the store
person position.
Enclosed are my application form as well as a copy of CV and several references.
I look forward in meeting you and talking about how I can contribute to your company.
Yours sincerely,
Len Morrison.

WRITING OF CV (CURRICULUM VITAE):

MEANING: Curriculum Vitae is summary of course of life or individual and it summary of

course of life or individual and it is a autobiography in a nutshell format.

A CV (short for the Latin phrase curriculum vitae, which means “course of life”) is a detailed
document highlighting your professional and academic history. CVs typically include
information like work experience, achievements and awards, scholarships or grants you’ve
earned, coursework, research projects and publications of your work.
HOW TO WRITE A CV

Most CVs include the following information:

• Contact information
• Academic history
• Professional experience
• Qualifications and skills
• Awards and honors
• Publications
• Professional associations
• Grants and fellowships
• Licenses and certificates
• Volunteer work
• Personal information (Optional)
• Hobbies and interests (Optional)

GUIDELINES FOR PREPARING C.V:

• Do your research.
• Use action verbs.
• Write clear and concise sentences.
• Restrict your use of articles to a minimum.
• Never use I or other pronouns to identify yourself.
• Use professional language.
• Use area specific terminology.
• Tailor your qualification to the job.
• Screen out any unnecessary or irrelevant information’s.
• Be positive & as specific as possible.
CV EXAMPLE TEMPLATE
1. Contact information
• Full name
• Address (including city, state and zip code)
• Phone number
• Email address
2. Academic history (in reverse-chronological order)
• Post-doctoral program
• Graduate school
• Undergraduate school
• High school
3. Professional experience
• Organization or institution
• Job title/position
• Dates employed
• Details about duties, experience and achievements
4. Qualifications and skills
• Hard skills
• Soft skills
• Accreditations and certifications
5. Awards and honors
• Award name
• Year awarded
• Organization that gave award
• Award details (how often the award is given, how many people receive the award, etc.)
6. Publications and presentations
• Publication citation (including authors, date, summary, volume, page, DOI number)
• Presentation details (including title, date and place of presentation)
7. Professional associations and affiliations
• Name of organization
• Geographic location or chapter
• Dates of active membership

REFERENCES: It is a report by a respectable person on a candidate’s character and

capabilities useful to prospective employees in deciding the candidate’s appointment.

LAYOUT OF REFERENCE LETTER:

Thomas Smith,
Drivers Co.
3489 Greene Ave.
Olympia, WA 98502.
Dear Sir,
I would like to recommend Sharon Doe as a candidate for a position with your organization. In
her position as Staff Assistant, Sharon was employed in our office from 2013-2016. Sharon did
an excellent job in this position and was an asset to our organization during her tenure with the
office. She has excellent written and verbal communication skills, is extremely organized, can
work independently, and is able to follow through to ensure that the job gets done.
During her tenure with our company, Sharon was responsible for supervising the department
office assistants. These assistants, under Sharon's management, were responsible for many of
the office's basic administrative and clerical functions. Sharon effectively scheduled and
managed several assistants to maintain efficient office operations. She developed a training
program for these assistants that led them to become well versed in office operations in half
the time they used to. Sharon was always willing to offer her assistance and had an excellent
rapport with the many constituents served by our office including clients, employers, and other
professional organizations. Her ability to effectively communicate with all these people via
email, on the phone, and in person made her such an asset to our office. She would add value
to any company and I recommend her for any endeavour she chooses to pursue. Please let me
know if you have any other questions.

Yours truly,
Jane Smith.

TESTIMONIAL: A Testimonial letter about a person’s abilities and qualities. It is usually

addressed “To whom it may be concern” and it is given in the hands of the candidate.

LAYOUT OF TESTIMONIAL:
Varun.K
108, flower bazaar road,
Chennai-600 006
Dear Varun,
When someone takes the time to recount a positive experience, it speaks volumes. And so I
would like to request a small favor – a testimonial that will give others a sense of the experience
and service I offer. Whether it’s a recommendation for a restaurant, a vacation spot or a doctor,
I have always felt that the testimonial is a powerful indicator of excellence. Feel free to either
e-mail me at (email address) or use the enclosed self-addressed, stamped envelope to share
your thoughts on your experience with my company.
I sincerely appreciate your help and look forward to serving your needs for years to come.
Warmest regards,
Vihaan.U
(MANAGER)

APPOINTMENT
Initial intimation of appointment may be given through a brief provisional letter. But
the final document must be drafted carefully as the employment is governed by the terms stated
in it. It should stand the test of law. The terms and conditions should be explicitly mentioned
and offer of appointment made subject to their acceptance by the candidate. A worker may seek
reinstatement in a Labour Court if the employer acts against the terms of appointment. The
executives, who are governed by a “Master-Servant” relationship, can only seek damages in
the event of a mala fide dismissal. The provisional letter of appointment intends to prepare the
candidate for the detailed letter that follows.

ACKNOWLEDGEMENT:

While drafting the letter of acknowledgement of order, you should –

 Convey your thanks for the order placed;
 Refer to the number and date of the order; and
 Specify (although it is a repetition) the key points like the description and the quantity of
the goods ordered, terms and conditions relating to delivery and payment, etc.
 Word the letter tactfully and with due courtesy.
End the letter by soliciting further orders. Make a reference to the total number of
invoices enclosed to avoid the possibility of being mislaid or improperly field rendering quick
reference very difficult.
 You need not confirm the order, if the order is executed at once. Where the order cannot
be executed owing to some problem or defect --
 The lack of correct and clear information relating to the terms of delivery and payment;
 Modification of the terms of offer;
 Exhaustion of stocks;
 Offering substitutes; and
 Extension of time of delivery, etc.
You should point out such problem or defect in the letter of acknowledgement the order when
--
 The requirement is fulfilled;
 The defect is corrected; or
 The problem is solved.

LAYOUT FOR APPOINTMENT LETTER:

Sundaram chemicals ltd.
Regd. office:12, Sansad Marg, New Delhi-110 001
Phone: 534212.
th
24 March, 2012

Ref ./call/23

Mr. Amit

23, B.V.Nagar, New Delhi-110 089

Sub: Letter intimating appointment as Trainee-Law:

Dear Amith,

With reference to the interview you had with us on 12.4.2012,

we are pleased to offer you appointment as “Management Trainee-Law” in our company.
You will on an intensive training for two years in our law department. During the period of
training you will be paid a consideration salary of Rs.6000/- per month during the first year
and Rs.18000/- per month during the second year. On satisfactory completion of the two years
‘training, you would be called upon to take up independent responsibilities in the law
department. If, at any time during the period of training your conduct is found unsatisfactory,
your services are liable to be terminated forthwith. During the course of the training period, if
u desire to leave the services of the company, you shall be liable to indemnify the company by
paying the lump sum compensation of Rs. 50000/-only. After the satisfactory completion of
two years of training period, you will be placed in the cadre of Dy. Manager in the scale of
30000-200-40000-250-50000. You will be entitled to House rent allowance, Medical Claim
Subsidy, Level Travel Concession, and other benefits as per the service rules, only on
confirmation in the post. You are requested to confirm your willingness to the above terms of
appointment on or before May 20, 2012. You are expected to join the training by july 1,2017.
Thanking you,
Yours faithfully,
P.A. Desai
(P.A.Desai)
Personnel manager
CONFIRMATION:
When someone lands a job with your company, use our Employment Confirmation
Letter to outline the duties and details of the position. Written confirmation is an important
step when hiring an employee. With the details spelled out on paper from the beginning,
you'll set a foundation for a positive and productive employee-employer relationship.

LAYOUT FOR CONFIRMATION:

17 February 2017,

Varun.K

108, flower bazaar road,

Coimbatore-641 001,

Dear Varun,

We are pleased to confirm your employment by our firm in the capacity of Sales manager.
You will report directly to our general manager, commencing with your start of employment
on 19 February 2017.Your salary shall be 20000Rs per month.For the first year vacation shall
be prorated, so you will be entitled to 10 days vacation for this year.If u agree that this letter
reflects your understanding, please sign the enclosed copy return same for our files. We look
forward to your joining the company.

Yours very truly,

Shakthi.K
(Manager)

PROMOTION
“Promotion is advancement of an employee to a better job- better in terms of greater
responsibility, more prestige or status, greater skills and especially increased rate of pay or
salary.”Promotion is the reassignment of a higher level job to an internal employee with
delegation of responsibilities and authority required to perform that higher job and normally
with higher pay. Thus, the main conditions of promotion are:-
1. Reassignment of higher level job to an employee than what he is presently performing.
2. The employee will naturally be delegated with greater responsibility and authority than
what he has had earlier.
3. Promotion normally accompanies higher pay.

Purpose of promotion:
Organizations promote the employee with a view to achieve the following purposes:-
➢ To utilize the employee’s skills, knowledge at the appropriate level in the organizational
hierarchy resulting in organizational effectiveness and employee satisfaction.
➢ To develop competent spirit and inculcate the zeal in the employees to acquired the skills,
knowledge etc. required by higher level jobs.
➢ To develop competent internal source of employees ready to take up jobs at higher level
in the changing environment.
➢ To promote employee’s self development and make them await their turn of promotions.
It reduces labour turnover.
➢ To promote a feeling of content with the existing conditions of the company and a sense
of belongingness.
 ➢ To promote interest in training, development programmers and in team development areas.
➢ To build loyalty and to boost morale.
➢ To reward committed and loyal employees.
➢ To get rid of the problems created by the leader of workers’ unions by promoting them to
the officer’ levels where they are less effective in creating problems.

Basis of promotion: Merit, Seniority and Seniority-cum-merit

1. Merit as a basis of promotion: Merit is taken to denote an individual employee’s skills,
knowledge, ability, efficiency and aptitude as measured from educational, training and
past employment record. The merits of merit system of promotion are:
i The resources of higher order of an employee can be better utilized at a higher level. It
result in maximum utilization of human resources in an organization
ii Competent employees are motivated to exert all their resources and contribute them to the
organizational efficiency and effectiveness
iii It works as golden hand-cuffs regarding employee turnover,
iv Further it continuously encourages the employees to acquire new skill, knowledge etc. for
all-round development.
Despite these advantages the merit systems suffer from some demerit. They are:
i Measurement or judging of merit is highly difficult.
ii Many people, particularly trade union leaders, distrust the management’s integrity in
judging merit.
iii The techniques of merit measurement are subjective.
iv Merit denotes mostly the past achievement, efficiency but not the future success. Hence,
the purpose of promotion may not be served if merit is taken as sole criteria for promotion.
2. Seniority as a basis of promotion: Seniority refers to relative length of service in the same
job and in the same organization. The logic behind considering the seniority as a basis of
promotion is that there is a positive correlation between the length of service in the same
job and the amount of knowledge and the level of skill acquired by an employee in an
organization. This system is also based on the custom that the first in should be given first
chance in all benefit and privileges.
Advantages of seniority as a basis of promotion are:
i It is relatively easy to measure the length of service and judge the seniority.
ii There would be full support of the trade unions to this system.
iii Every party trust the management’s action as there is no scope for favoritism and
discrimination and judgment.
iv It gives a sense of certainty of getting promotion to every employee and of their turn of
promotion.
v Senior employees will have a sense of satisfaction to this system as the older employees
are respected and their inefficiency cannot be pointed out.
vi It minimizes the scope for grievances and conflicts regarding promotion.
vii This system seems to reserve the purpose in the sense that employees may learn more
with increase in the length of service.
In spite of these merits, this system also suffers from certain limitations. They are:
i The assumption that the employees learn more relatively with length of service is not
valid as this assumption has reverse effect. In other words employees learn up to a certain
age and beyond that stage the learning ability of the cognitive process diminishes.
ii It denominates the young and more competent employees and results in employee
turnover particularly among the dynamic force.
iii It kills the zeal and interest to develop as everybody will be promoted with or without
improvement.
 iv Organizational effectiveness may be diminishes through the deceleration of the human
resource effectiveness as the human resource consists of mostly undynamic and old
blood.
3. Judging the seniority though it seems to be in the theoretical sense. it is highly difficult in
practice as the problems like job seniority, company seniority, zonal/regional seniority,
service in different organizations, experience as apprentice trainee, trainee, researcher,
length of service not only by days but hours and minutes will crop up.
4. Seniority-cum-merit: Management mostly prefers merit as the basis of promotion as they
are interested in enriching its human resources. But trade union favour seniority as the sole
basis for promotion with a view to satisfy the interests of majority of their members.
Hence a combination of both seniority and merit can be considered as the basis for
promotion satisfying the management for organizational effectiveness and employees and
trade union for respecting the length of service. A balance between seniority and merit
should be struck and a new basis is to be developed.
There are several ways in striking the balance between these two bases.viz:-
1. Minimum length of service and merit: Under this method all those employees who
complete the minimum service, say five years, are made eligible for promotion and then
merit is taken as the sole criteria for selecting the employee for promotion from the eligible
candidates. Most of the commercial bank in India has been following this method for
promoting the employees from clerk’s position to officer’s position.
2. Measurements of seniority and merit through a common factor.
3. Minimum merit and seniority: In contrast to the earlier methods, minimum score of merit
which is necessary for the acceptable performance on the future job is determined and all
the candidates who secure minimum score are declared as eligible candidates. Candidates
are selected for promotion based on their seniority only from the eligible candidates.
Benefits of promotion:
i Promotion places the employees in a position where an employee’s skills and knowledge
can be better utilized.
ii It creates and increases the interest of the other employees in the company as they believe
that they will also get their turn.
iii It creates among employees a feeling of content with the existing conditions of work and
employment.
iv It increases interest in acquiring higher qualifications, in training and in self development
with a view to meet the requirement of promotion
v Promotion improves employee morale and job satisfaction.
vi Ultimately it improves organizational health.
Problems with promotion:
Though promotions benefit the employee and the organization, it creates certain problems.
i Disappointment of some employees: Some employees who are not promoted will be
disappointed when their colleagues with similar qualifications and experience are
promoted either due to favoritisms or due to lack of systematic promotion policy.
Employee may develop negative attitude and reduce their contributions to the organization
and prevent organizational and individual advancement.
ii Some employee refuse promotion: There is a general tendency that employee accept
promotion. But there are several incidents where employees refuse promotions. These
include promotion together with transfer to an upward place, promotion that level where
the employee feels that he will be quite incompetent to carry out the job, delegation of
unwanted responsibilities, and when trade union leader feel that promotion causes damage
to their position in trade union.
iii The other problems associated with the promotion are: some superiors will not relieve
their subordinates who are promoted because of their indispensability in the present job
and inequality in promotion in different departments, regions and categories of jobs.
LAYOUT FOR PROMOTION:

March 2, 2012

Harish.R
23, B.N.C. Road,
Chennai – 600 025
March 20, 2012
Sub: JOB PROMOTION CONGRATULATORY LETTER

Dear Mr.Harish,

We are pleased and honoured to inform you with respect that you have been promoted as the
junior accounts officer to senior accounts officer in the organization. I congratulate you on
behalf of the company for the achievement of yours. As your post rows in the company your
responsibility towards your work will also increase. You have achieved this promotion within
the span of one year with your hard work and dedication towards your work. We expect the
same behaviour in future even though you got a promotion. Your salary structure and details
about the compensation everything will be mentioned in the official promotion letter which
will be given to you very soon. If u find any queries and difficulties related to this matter you
can contact the human resource department on the intranet of the companies ’websites. And
once again very congratulations and all the best for the future.

Yours sincerely,
Ms. Aisha Mehta,
Human resource manager,
J and K chartered accountants.

RETRENCHMENT: 'Retrenchment' is defined as an activity to legally terminate any

employment contract with the employee by offering a compensation package. 'Retrenchment'
to mean a discharge of surplus labour.
LAYOUT FOR RETRENCHMENT:
December 2, 2012
Mr. John Smith
Sansad Marg,
New Delhi-110 001
Sub: Retrenchment from the Service.
Dear Sir,
You have been a valuable employee to this organization since long. Your service has been up
to the level of our expectations. In spite of that we are sorry to inform you that your service in
this organization is no longer required since our volume of works has reduced remarkably. In
consideration of your instant unemployment, the management has been pleased to grant 3
(three) month’s salary as compensation. Thanks for being a dedicated, sincere, and dutiful
employee during your tenure of service with our organization. We hope that you will be able
to secure a suitable position in any reputed organization with such a resourceful background.
Yours faithfully,
B.K. Kohli.

RESIGNATION: It is an act of resigning from a job or office. A letter of resignation is written

to announce the author's intent to leave a position currently held, such as an office, employment
or commission. ... It should normally be delivered in advance to the appropriate supervisor or
superior, and contain such information as the intended last day at work.

LAYOUT FOR RESIGNATION:

Harish,
28, B.N.C. Road,
Chennai – 600 027

March 20, 2015

A.S. Senthil,
Sundaram chemicals ltd.
Regd. office: 12, Sansad Marg, New Delhi-110 001
Phone: 534212.

RE: Resignation

Dear A.S. Senthil,

Please accept this letter of resignation from the position of manager effective two weeks from
today. My last day at Sundaram chemicals ltd. will be March 25th 2015.
I have accepted a position with another company that will further my growth and development
in my career. I have enjoyed working at Sundaram chemicals ltd and will miss my colleagues.
However, this new position will challenge my growth and further my career.
During the next five days, I am willing to help you in any way to make the transition as smooth
as possible. This includes assisting in recruiting and training my replacement. Please let me
know if there is anything specific that you would like me to do.
Again, it has been a pleasure working as a part of your company.

Sincerely,
Harish.
 UNIT III (FUNCTIONS)

1.Collection of Deposits: The main aim of such banks is to accept deposits

from the customers. Bank orders interest on the deposits and deposits
made by public are safely kept in. banks. This helps a development of
savings habit in the public.
Facilitate payments: Payments can be made through cheques offered by
banks which is a very safe mode in order to make payments. Cheques help
in avoiding the trouble of counting the cash and one doesn’t have to carry
large amounts of cash with view to make payments.
Collection of Cheques etc: On behalf of the customers of the bank; banks
even collect the amount of cheques, drafts, bills of exchange etc.
Safety of valuables: Safe deposit lockers are provided by banks where one
can keep the valuables like jewellery, ornaments, documents etc safely.
Provide loans and advances: Loans and credit facilities are also provided by
commercial banks. They provide instant credit by allowing overdraft
facilities. Businessmen can easily deal with strangers because of banks, as
payment is guaranteed. Letters ‘of credit are also issued by banks.
2.Discounting of Bills: It means advancing of loan against a promise that
loan will be paid in future. Money is Tended by banks through discounting
bills. The reason that loans are self liquidating, this method of lending is
very popular.
Remittance of Money: Banks help in remitting money to some other place.
ATM facility is provided by banks now-a-days 24 hours ATM service is also
provided by certain banks and with this service, one can withdraw money at
any time by just providing one’s personal identity number.
Provide credit information: Information regarding credit worthiness of the
customers is provided by banks. Businessman can ask his banker about
the financial position of the other businessman with whom he may be
dealing for the first time.

UNIT III
BANK, INSURANCE, AGENCY AND SECRETARIALCORRESPONDENCE
BANK CORRESPONDENCE
Banking requires letter writing for the following services: Stop payment, Overdraft limits,
Term loan and Status Enquiries.
Functions of a Modern Banker:
A modern banker has to perform several functions. They are as follows:
1. To receive deposits and grant loans and advances.
2. To discount bills of exchange.
3. To provide safe deposit vault facilities for their customers.
4. To pursue references regarding the financial standing of others.
5. To issue letter of credit, bank drafts, traveler’s cheques etc.
6. To act as agents to buy shares and stock for the customers.
Meaning of Banking Letter:
In performing these services, the banker has to correspond with a number of persons. The
reputation of a banker is judged not only by the efficiency of his services but also by the
appearance of the passbook and his correspondence. That is why tactful, courteous and precise
letters go a long way in building up a banker’s name.
Elements of a Good Banking Correspondence: The essential elements of a good banking
correspondence are secrecy, style, tact, courtesy and clearness.
➢ Secrecy: Bankers deal only with money matters and secrecy in money matters is the first
thing that a client expects from his banker. Expect in cases of enquiry from fellow banker,
a client’s account and its details are treated as absolutely secret and are never revealed to
any other person. Absolute secrecy about the state of a customer’s account is the basic
guarantee in bank dealings. Even when an enquiry is made by another bank, the reply
should be very brief and to the point. The customer’s credit should not be injured in any
way.
➢ Style (Brevity and Conciseness): Good style in bank letters is brevity and conciseness
because the customers are businessmen and they have no time to waste on superfluous
reading. The banker should not be too impersonal or formal in his letters.
➢ Tact and Courtesy: Tact and courtesy are of paramount importance in banking letters.
It is very easy to level allegations against a customer and thereby to lose his account.
Courtesy is particularly very important while writing about overdrawn accounts and
while asking for additional security. Similarly when a request for overdraft is to be
refused, the language should be diplomatic so that the customer takes no offence.
➢ Clarity: Clarity in bank letters must be considered as a basic necessity. The matter
should be clear and precise and there should be no ambiguity. However clearness should
never be sacrificed for the sake of brevity. All unnecessary details should be avoided. If
opinions are expressed, they should not be loose opinions or mere surmises; opinions lead
to decisions and hence they must be backed by actual facts.
 ➢ Besides, the bank letters should also posses all the essential qualities of a business letter.
“The You Attitude” must be present in all the letters.

Characteristics of bank correspondence addressed to customers:

Though there are formatted letters used by bank with respect to routine matters.
Occasions often arise when letters have to be addressed with a personal touch. Great care
should be exercised while drafting such letters. They should possess the following
characteristics:
1 Courtesy: Courtesy is the most important characteristic that should never be lost sight of
by a banker. Just because a customer approaches a bank for a loan or other facilities, the
banker should not assume superiority.
2 Tact: Even when the customer is wrong and writes irritating letters, the banker should
not reply in the same manner. Letters contradicting the presumptions of the customers
must be drafted with utmost tact so that while attempting to convince the customers, no
offence to their sentiments is caused.
3 Conviction and building custom: Letters rejecting loan applicants of other favours
should make the stand of the bank clear, so that the applicants will continue to be its
customers.
4 Not to divulge secrets: The letters should not reveal secrets or any vital information
about other customers.
5 To be intelligible to all: The letter should be free from the use of banking jargons. They
should be intelligible to persons of ordinary education.
6 Correct information: Bank letters should not be vague, nor should they contain incorrect
figures.
7 Brevity: Bank correspondence should be brief.

Types of bank correspondence:

1 Formatted letters: In order to ensure uniformity in the format, banks supply pre-printed
letters like account opening forms, loan application form and credit reports. In other
Words, standardized forms are supplied by the banks to the customer. Since it is pre-
formatted, it requires no elaborate discussion and illustration.
2 Individual letters: It represents letters written by individuals on different occasions.
Individual letter refers to each letter which is individually written in each case depending
on the subject concerned and sent to others. Therefore, they are not standardized letters
like formatted letters. This type of letter requires a lot of tact. Individual letters can be
again classified into three kinds namely,
A. Letters between the bankers and their clients.
B. Letters from one bank to another.
C. Letters between the head office and the branch office.
A. Letter between the Banker and the Customers: These comprise of
i Letters from banker to customers: The most important and crucial part of banker’s
correspondence consists in communication with the customers. They include answering
inquiries by customers, complying with the standing instructions of the customers,
handling complaints of the customers regarding dishonor of their cheques, wrong
statement of accounts, debits of bank charges etc.., there are also other occasions when
correspondence is conducted with the customers. and
ii Letters from the customers to the banker: These mainly consist of requests for
opening accounts, enquiries about the interest rates, status enquiries, application for
loans and overdrafts, standing instructions regarding making payment etc..,
B. Letters between bankers: These relate to status enquiries, negotiations of bill exchange,
clearance of cheques etc. Here technical terms normally used in the banking business can
be freely used but should not be used in letters to the customers.
C. Letters between Head office and Branch offices: These consist of Letters from Head
office to the Branch office, and Branch office to the Head office.
1 Letters from Head office to Branch office: these include letters from the Head office to
the Branch, which deal with matters of administration, and convey the decisions and policy
of the head office to its net work of branches. The Head office should serve as a model for
the branches to follow both as regard to its mode of administration and its methods of
correspondence. Therefore, the letters from the Head office to the Branch should serve as
a model in all those qualities such as accuracy, clearness, courtesy etc., They should be
drafted carefully and precisely.
2 Letters from the Branch office to the Head office: Letters from branches to the head
office generally consist of:
i Various monthly, quarterly, half-yearly or annual reports submitted by the branch
manager. These are only factual reports and generally form letters.
ii Reports from branch managers giving suggestions for further development of business
in the branch.
iii Letters recommending appointment of staff, promotion and transfer.
iv Letters containing the date of advances granted to the customers.
v Letters which explains some unconventional decisions.

II. INSURANCE CORRESPONDENCE:

Insurance Correspondence requires letter writing for policy renewal, null(no value) and void
policies and reporting loss. Insurance is a device by which losses suffered by “the affected” are
shared by those ‘not affected’ or ‘yet to be affected’. Correspondence involved in fire, life and
Marine Insurance relates to:
1. Enquiry about various policies.
2. Reply to Enquiries.
3. Reminders for non-payment of premium.
4. Revival of ‘Lapsed policies’.
5. Informing loss due to fire, death or marine causes.
6. Clarification letters from the Insurance Companies.
7. Replies to clarification.
8. Setting / Refusing claims.
Meaning: Insurance is a contract between two parties by which one of them, called the insurer
agrees to indemnity the other, called the insured or assured against a loss which may be caused
by the happening of a certain event. The contract is embodied in a document known as the
policy. The insurer undertakes to indemnity the insured for a consideration in the form of
money called the premium. The contingency insured against is called the “risk”.
Basic Principles of Insurance:
1 Utmost Good Faith: Insurance is a contract based on utmost good faith. It is a contract
of Uberrimafide. It implies that the parties should exchange information accurately on all
aspects relating to the risks to be covered. Failure to disclose any material fact shall render
the contract null and void. Therefore, if it is found that any information is deliberately
suppressed or purposely manipulated then the protection of insurance will not be available
to the insured.
2 Indemnity: Indemnity means security against damage or loss. In a contract of insurance
(other than life assurance), the insurer undertakes to indemnity or compensate the insured
for losses occurring due to the risk covered. The occurrence of the event is also contingent.
If the risk doesn’t occur, the insurer need not pay anything to the insured. The principle of
 indemnity is applicable to fire and marine insurance contracts and not to life insurance.
Under life assurance, the entire amount of the policy is repayable to the assured on the
maturity of the policy or his nominees of assignor in case of his earlier death.
3 Insurance Interest: It is also necessary that the insured must have an insurable interest in
the subject matter of the insurance. Without such interest, the contract is null and void.
Insurable interest means monetary interest in the subject matter of the insurance. For
example, in respect of goods or property, insurable interest means that the insured must
be put to loss if the goods are lost in transit or destroyed by fire etc. Similarly in case of
life insurance, the individuals has unlimited financial interest in his own life. Husband and
wife have insurable interest in each other’s life. A partner has an insurable interest on the
life of other fellow partners.

LIFE INSURANCE
Meaning: Life insurance is more appropriately called as life assurance. It is a contract whereby
the insurer, in consideration of a periodical payment known as premium, undertakes to pay the
insured a certain amount of money to him reaching a certain age or his assignees or nominees
in the event of his death whichever is earlier.
Kinds of Life polices: There are numerous variations in life policies in India, depending on
the purpose, premium amount and the nature of risk coverage and participation in the
different objectives of the policy. There are several types of life insurance policies and of
them Endowment policy, Whole time life policy, and Joint life policy are the most popular.
1 Endowment policy: Under this type of policy, the sum assured is to be paid to the assured
after the completion of a time period (reaching a specified age) or to the nominee of the
assured, if the dies before the time period The premiums on such policies are to be paid
until the assured reaches the specified age or until his death if it occurs earlier. The rate of
premium on this policy is however, higher than whole time policies. In spite of this
demerit, this type of policy is more popular because it is a combination of the elements of
savings, investment and risk bearing.
2 Whole Life Policy: Under this type of policy, the insured sum becomes due for payment
to the beneficiary (nominee) only after the death of the assured. The premiums on such a
policy may be spread over one’s whole life or they may be made payable for a fixed
number of years. In both the cases, the policy does not mature until the death of the
assured. Therefore, the benefit of the policy is available only to the nominee or legal heirs
of the assured after his death, whereas under endowment policy the assured himself
may get the amount if he reaches the specified age.
3 Joint Life Policy: A policy covering more than one life is called Joint Life Assurance
Policy. The assured amount becomes payable on the death of any of the insured under the
policy. It is payable to the survivors. A joint life policy is usually taken on the lives of
husband and wife. The partners of a firm may also take out a joint life policy on their lives.
The surviving partners usually receive the assured sum and they can use it to pay off the
share of the deceased partners in the capital of the partnership firm without affecting the
financial position of the firm.
4 Group Policy: There are other types of policies issued by the L.I.C. and cover a group-
students in a college or workers in a factory. The students are requested to refer to the
prospectus and the relevant leaflets released by the L.I.C. for details regarding those
policies.
5 There are policies for married women, Girls etc..,
6 Term Policy with Growth: They combine savings, lump sum payment and insurance
coverage also.
7 With bonus / without bonus: A share in the profits is given in the case of ‘with bonus’
policy.
Procedure to Take Out a Life Policy:
To take out a life policy, the following procedure should be followed.
1. The person intending to get his life assured should get a proposal from the Corporation or
its agent on request and submit the form to the corporation after duly filled in.
2. The important question in a proposal form is the age. The person intending to get his life
assured should submit evidence in support of his age.
3. After receiving the proposal form dully filled in, the Corporation will arrange for medical
checkup by a doctor approved by it.
4. After studying all the papers and the medical certificate, the Corporation will decide
whether or not to accept the proposal.
5. If the proposal is accepted, the Corporation will inform the person i.e., the assured to pay
the first premium.
6. After the first premium is paid, the Corporation will proceed to issue the policy. The
assurance, however, commences with the acceptance of the first premium itself by the
corporation.

Technical terms used in life assurance

 Premium: Premium refers to the cash or amount payable by the assured. The rate of
premium depends on the amount of the policy, period etc. The premium is payable
quarterly, half-yearly or annually or even monthly depending on the convenience of the
assured.
 Surrender value of the policy: The surrender value of a policy is the amount that the
insurance corporation will pay in cash to the assured if he surrenders his policy to it and
gives up his claim.
 Nomination: The assured has a legal right to designate any persons to receive the effects
of the policy in the event of his death. Such person who is nominated to receive payment
is called “Nominee”.
 Assignment: The assured may assign the policy to anyone by endorsement on the policy
or by executing a separate assignment deed. The assured, however, should give a notice
to the Corporation in the case of assignment.

Claim: A claim may be made either on the death of the policy holder or on the maturity of
the policy.
 Loan against Life policy: The policy holder can also obtain a loan against the life policy.
He can either get a loan from a bank or form the Life Insurance Corporation itself. The
loan amount shall be 75 per cent of the surrender value of the policy.

FIRE INSURANCE
Meaning: Fire insurance is a contract, under which the insurer, in return for the premium paid
by the insured undertakes to pay or make good the loss suffered by the insured due to fire or
lighting during a specified period and up to the amount specified in the contract. It may be paid
in the form of cash or replacement, or repair of the property damaged by fire. Indemnity is the
main mark of this insurance. The contract is embodied in a document called the “Policy of
Insurance”.
Kinds of fire insurance
i Specific policy: Under this policy, the insurance company undertakes to pay or indemnity
the insured any loss or damage caused by fire to his property up to an amount insured
under the policy. The value of the property is not the criterion to ascertain the extent of
indemnity. Therefore, the property may be even under insured. The loss actually suffered
or the amount insured under the policy, whichever is less is payable to the insured.
Therefore, Loss will be paid only up to a specific amount.
ii Average policy: A fire policy in which the “Average Clause” is incorporated is called
average policy. In an average policy, the property should be insured to its full value.
Under insurance shall land the insured into trouble. According to the average clause, the
amount payable under the policy will be determined on the basis of the ratio between the
 sum assured and the value of the property concerned. Example: The value of the property
is Rs.60, 000 but it is insured for only Rs.40, 000. In case the loss is for Rs.120,000, the
insurance company will pay only 2/3rds of the loss i.e., Rs.8,000 only. This is because,
the property is not insured for its full value and is insured only for 2/3rd of its real value.
iii Floating policy: A floating policy is taken to cover the goods belonging to the same
person but stored at different places and in varied lots. Traders generally take out this
type of policy to cover risks in respect of goods lying in various places, docks, warehouses
etc. This policy always contains the average clause.
iv Valued policy: Under this policy, the insurance company undertakes to pay the insured
an agreed value for his goods in the event of their total loss, irrespective of the real value
of the property at the time of their loss. The value of compensation is pre-decided. For
example, if it is agreed by the insurance company that the value of the insured property
is Rs.20,000 irrespective of its intrinsic value and the property is destroyed by fire, the
insurance company will pay Rs.20,000 only i.e.., the agreed value.
v Unvalued Policy: The loss is assessed after the damage.
vi Comprehensive Policy: It is also called ‘All Risk Policy’; all the possible risks are
covered. Premium amount will be higher.
vii Loss or Profit Policy: Loss due to fire accident will be compensated (closure of factory
for 6 months).

Procedure for Taking out a Policy:

The procedure to be followed to take out a policy is given below:
1. The person, intending to take out a policy must get a proposal form from the agent of
the company and should send it after duly filled in.
2. If the risk is simple, the insurance company may straight away quote the premium and
on its acceptance issue a policy.
3. In other cases, the property to be insured is inspected by the representative of the
insurance company.
4. The representative, after inspection, should submit his report to the insurance company.
5. On receipt of the report, the insurance company will either accept the risk and fix the
premium of decline to accept the risk.
6. If the company accepts the risk, it will issue a cover note to the proposal. A cover note
is similar to the provisional certificate issued to the students by the University. It is an
undertaking issued by the company to cover the risk between the time of acceptance of
the proposal and the issue of the policy.
7. In course of time, the actual policy is prepared and issued to the insured.
Letters in fire insurance:
The correspondence in respect of fire insurance usually consists of the following letters
relating to:
1. A request for the insurance of a proposal submitted.
2. Letter from the insurance company enclosing a covering note.
3. Notice intimating changes in the address and reply.
4. Notice of damage by fire.
5. Settlement of the claim.
6. Letters admitting or refusing the claim.

MARINE INSURANCE
Meaning: Marine insurance is a contract where by the insurer or the underwriter agrees to
compensate the owner of a ship or cargo for a partial or total loss due to destruction at sea. It
is a contract of indemnity providing protection to ship or cargo against risks incidental to
marine voyage.
Peculiarities of marine insurance
1. A marine policy is valid for a specific period or voyage only.
2. A marine insurance policy is issued upon the following understanding that the ship is sea-
worthy, and it is going on a legally unobjectionable voyage.
There are certain areas of the sea that are so dangerous that the insurance companies refuse to
undertake the risk of insured goods passing through them. They are technically called as
warranties. An area may be declared as a warranty only during a specific season if it becomes
risky during that period only because of excessive ice or rain extremely stormy weather.
Kinds of Marine policies: The principal kinds of marine policies are the following:
1 Voyage policy: Under this policy, the property is insured for a particular voyage however
long or short be its duration. For example, Chennai to Penang. If the ship is changed and
the goods are sent further by another ship i.e.., another voyage, a new policy will be
required. This policy is issued for a fixed amount and not for a fixed period. Generally,
cargos which are exposed to the perils of the sea during transit are insured under this
policy.
2 Time policy: Under this type, the property is insured for specified periods of time say
three months of six months. The period generally does not exceed 12 months. If the goods
do not reach the destination within the period, the policy is to be renewed. Polices of this
kind are generally taken for the insurance of the ships by the ship owners.
3 Mixed policy: A mixed policy covers the clauses of both time and voyage policies. It is
issued on the understanding that the goods will be transported only from a certain place
to another fixed place and the voyage will be completed within a period specified in the
policy. Thus, it is a combination of both time and voyage policies. Mixed policies are
generally issued to ships operating on specified routes.
4 Floating policy: It is a policy where coverage is wide enough comprising shipments at
different intervals. There is only one policy issued for one year and it covers goods sent
in installments by different ships at different times. Whenever the goods are dispatched,
the insured has to declare the full value in a prescribed form describing the ship, and the
voyage of the goods transported by him. The declaration should be made on the specified
form issued by the insurance company. Every declaration filed by the insured will lead
to a deduction in the value of the policy. When the total amount of declaration becomes
equal to the face value of the policy, a new policy should be taken out. The premium is
generally collected in advance for the full amount. This policy is more suitable to regular
exporters.
5 Valued policy: This states the value of the goods, which is agreed by insured and the
insurer. This value need not necessarily be the actual value of the goods insured.
Therefore, there is no argument about what was the actual worth of the lost goods.
6 Unvalued policy: It is issued without determining the value of the goods insured.
Whenever a loss occurs, the value of the goods is assessed by the insurance company
with the help of experts.
7 Open policy: This is a kind of policy undertaking to insure a certain class or classes of
goods to be shipped to specified destinations during a period of time, usually twelve
months. It is similar to a floating policy but it shall not get exhausted as and when the
declarations are made. A separate certificate is issued in respect of each shipment and
premium is collected against each certificate.
8 Blanket Policy: Premium is paid for all the risks in the beginning itself. Depending on
actual loss, additional premium amount will be collected.
9 Fleet Policy: Covering a number of ships and voyages. It is useful to institutions with
regular business in exports and imports.

Important clauses used in marine insurance policies

 ➢ Free of all Average: This exempts the insurer from the liability of both particular and
the general averages.
➢ Free of Particular Average: It exempts the insurer from the liability for particular
average only.
➢ With Particular Average: It means that particular average is covered by the policy and
the underwriter is liable for it.
➢ With General Average: It means that the insurer who is paying a general average loss
agrees to be bound by the calculation.
Letters in marine insurance: Letter exchanged in marine insurance consist of the following:
1. Sending proposal for effecting insurance.
2. Enquiring about the rates of premium.
3. Advising declaration of shipment of goods.
4. Notifying claims in the event of loss.
5. Acceptance of the risk.
6. Issuance of certificate of declaration.
7. Settlement of claims etc.

III. CORRESPONDENCE WITH SHARE HOLDERS AND DIRECTORS

The term company secretary is derived from the Latin word ‘Secetarius’ meaning
confidential officer. There has been a growing appreciation for a company secretary in the
company’s administration, with the growth of the corporate sector.
Duties of a company secretary: It can be divided into two categories:
A. Statutory Duties: Specific duties under the Companies Act include:
➢ Signing copies of annual returns.
➢ Authenticating balance sheet and profit and loss account.
➢ Signing copies of balance sheet and profit and loss account.
➢ Signing statutory declaration at the time of incorporation.
➢ Verifying statutory declaration.
➢ Publishing the name of the company and outlining business place.
➢ Delivering return of allotment to the Registrar.
➢ Issuing share certificates and debentures.
➢ Registering charges with the Registrar of Joint Stock Companies.
➢ Maintaining statutory registers.
➢ Sending out copies of the audited balance sheet and profit and loss account.
B. General Duties: There are further subdivided into:
Duties to Director:
1. Dealing with correspondence requested by the directors.
2. Issuing notice and agenda for the Board meeting, Annual General meeting, etc..,
3. Acting as a liaison between the Board and the shareholders.
4. Ensuring submission of statutory returns.
5. Keeping calendars of due dates and checklist of meetings.

Duties to Shareholders:
1. Working on details all connected with issuing share certificate, prospectus, application
form, allotment letter, etc..,
2. Maintaining non-statutory books.
3. Arranging funds for interest payment.
4. Arranging for issuing dividend warrant.
5. Issuing notice/agenda for Annual General body Meeting and class meetings.
6. Attending meetings and maintaining the minutes of the meeting.
Duties to the Organization:
1. Communicating the instructions and orders of the Board to other heads.
 2. Coordinating the activities of other departments.
3. Assisting HR in recruitment and training.
Classification of Secretarial correspondence: Secretarial correspondence can be to a wide
range of people. They can be classified into three categories as follows:
Correspondence with the Directors: Occasions warranting correspondence with directors
are:
1. Sending notice of board meeting.
2. Giving reply to directors concerned on the instruction of the chairman.
3. Absence director seeking proceedings of a meeting.
4. Replying to the director who wants inclusion of a particular item in the agenda.
5. Replying to the director whose proposal is unacceptable and not in the interest of the
company.
Correspondence with the shareholders: Correspondence of secretary to the shareholders
relates to the following matters:
1. Reply to complaints from the shareholder on dividend.
2. Reply to shareholder’s complaint relating to non-receipt of notice of the meetings, share
certificate, transfer deed, etc..,
3. Convey change in the address of the company or schemes of reconstruction.
Correspondence with the Registrar and the Company Law Board:
Correspondence with the aforesaid authorities relates to:
1. Sending periodical statements and returns.
Points to remember while drafting secretarial correspondence:
The points that must be looked into by a secretary of a company while drafting a letter are:
To the Directors:
➢ The secretary should show politeness and courtesy in his letters.
➢ He must be very tactful especially when he has to write letters which are distasteful to
the directors.
➢ Even while pointing out their mistakes or carelessness, he should draft it in such a way
that he does not mean any offence to them.
➢ He should be impartial.
To the Shareholders:
➢ He should be helpful and friendly in his attitude.
➢ He may have to answer certain indiscreet request from the shareholders. For instance, a
shareholder may seek the opinion of the secretary regarding the likely rate of dividend,
why a higher rate of dividend has not been paid despite a large profit earned, or he may
claim special consideration to a tender submitted by him. In all these cases, the secretary
should politely refuse the requests.
➢ He should never divulge any confidential information favouring any particular
shareholder.
➢ He should not offend the sentiments of the shareholders by pointing out to their ignorance
in company affairs.
➢ He should never enter into any verbal duel or indulge in long arguments.
Precautions to be taken by the Secretary: The secretary in all his letters to the directors
should be very careful and observe the following precautions.
1. Maintain a polite and impartial attitude so as to influence the director to take the right
line.
2. Word them very carefully and tactfully without forgetting that he is their subordinates.
3. Avoid giving any offence to the directors.

IV. AGENCY CORRESPONDENCE

Meaning of Agent: An agent is one who is appointed to act for another. The person who
appoints the agent is known as the principal. The agreement between them is known as the
agency agreement.
Kinds of Agents: There are various types of mercantile agents. Most important of them are -
1 Commission Agent: A commission agent is a person employed by a principal either to
buy or sell goods on his behalf. He receives a commission at a specified rate. The
principal meets all the expenses connected with the purchase or sale of the goods.
2 Del credre Agent: His function is similar to that of a commission agent, but in addition,
he undertakes an additional liability of guaranteeing payment to the principal when he
sells the goods on credit. The principal, therefore, need not worry about bad debts. For
this additional service, he is entitled to an additional commission known as “Del credre
Commission”.
3 Factor: He is a general mercantile agent who had possession of the goods and sells them
in his own name without disclosing the name of the principal to the third party. He
receives payment from the buyer and issue receipts in his own name. In case of default,
he can sue or be sued.
4 Broker: He is a special mercantile agent. His duty is to bring the intending buyer and the
intending seller together. Thus, he acts only as an intermediary of between the two. He is
not given the actual physical possession of goods. He is not personally liable and hence
cannot be sued by third parties.
5 Auctioneer: He is a person employed by a principal to sell his goods or property publicly
i.e.., by asking the public to bid for it. For his services, he gets a commission.
6 Clearing and Forwarding Agents: A clearing agent is one who clears the goods for the
importer. The clearing agent assists the importer for a commission. A forwarding agent,
on the other hand, forwards goods to foreign countries for the exporter. These agents are
also employed in internal trade.
7 Underwriter: An underwriter is generally appointed for underwriting an issue of shares
and debentures. The underwriter undertakes that he would subscribe to the shares or
debentures to the extent underwritten by him, if the public do not subscribe for them. His
commission is called underwriting commission.
8 Warehouse Keeper: A warehouse keeper helps trade and commerce by storing goods in
his go down or warehouse. His function is to take care of the goods kept in his warehouse.
He issues receipt known as warehouse keeper’s receipt for the goods stored. He may even
undertake to sell the goods on behalf of his clients.

Applying for an agency:

While applying for an agency, the applicant should convince the principal that he could carry
out the agency work profitably. For this purpose, he should stress the following points in his
applicants:
1. If the application is made on his own initiative i.e. in the case of an unsolicited application
for an agency, the applicant should show that there is a good market for the manufacturer’s
goods in the region and that it can be exploited.
2. In case it is made in response to an advertisement, he should stress his ability to promote
the sale of his goods by pointing out.
➢ His experience in the line.
➢ His knowledge of the local market.
➢ His wide business connections and personal contracts.
➢ The special facilities he has life showroom, his sales force travelling and counter
salesman, possession of delivery vans, etc.,
3. He should also convince the principal that he is financially sound.
4. He can support these points by making references of firms of which he is the agent. He
should also furnish bank reference.
5. He should state the commission on which he is prepared to work.
6. He should also state as to how the accounts would be settled.
 7. The letter should end with optimism that a mutually beneficial connection will be
established.
Drafting an Agency Letter:
A letter offering an agency should contain the following points:
1. An expression of thanks for the offer of agency and acceptance.
2. The area of agency operation.
3. If the agent himself has offered certain terms, agreement with the terms of offer or
modification of certain terms.
4. In case the agent’s application seeks to know the terms and conditions, the offer letter
by the principal should specify all the terms and condition like
➢ Commission on sales effected.
➢ Del credere commission, if such a responsibility is entrusted.
➢ Period of agency.
➢ The share of advertising expenses to be borne by the principal.
➢ Settlement of accounts.
➢ Maintenance f Stock Registers.
5. An expression of hope that this will result in the development of a mutually profitable
trade relations.
Stages of Agency Correspondence:
1. Letter Offering the Agency:
The principal himself may offer agency to some other persons. This situation shall
occur only when the product of the manufacturer is not popular in that area or the agent is a
reputed businessman. Generally, the terms of such agency shall be liberal and the rate of
commission is also more. The writer should note the following points.
1. A reference to the potential market.
2. The merits of the article.
3. Special advantages offered such as regular advertisements, maintenance of showroom
etc…
4. Terms, Conditions and period.
5. An expression of hope that the connection would prove mutually benefits.
2. Letter Applying for an Agency:
Usually, the agent will apply for agency to the principal. Particularly in case of popular
goods, obtaining an agency is a difficult task. The intending person who wants to obtain the
agency should apply to the manufacturer. In such letters, he should specify his ability,
reputation, familiarity in the area etc… The following points are to be noted while drafting an
application for agency.
A. The Opening Paragraph: In the opening paragraph, the applicant should mention the
source from which he got the information. The application, therefore, may be based on
either an advertisement offering agency or information received from others oron the own
initiative of the applicant.
a Application with reference to an Advertisement:
i Make a reference to the said advertisement of the producer.
ii Offer your services and express your willingness to work as an agent.
b Application based on the Information from others:
i Specify the source from where you have received information about the desire of the
manufacturer to appoint an agent in your area.
ii Offer your services and express your willingness to work as an agent.
c Application on the own Initiative:
i Firstly introduce yourself as agent.
ii Explain the potential market for the product of the manufacturer in your area.
iii Specify your desire to take up the promotion of the sale of his products as an agent.
B. The Main Communication: In the main paragraph, the following points should be
highlighted.
 i How long you have been in the line of business and the reputation you have built up.
ii The business contracts established by you.
iii Your ability, experience and knowledge about the business trends, market conditions
etc.
iv Your arrangement for storage, distribution, advertisement, display, showrooms and
window displaying etc.
v The terms of agency applicable to you and means of settlement.
vi One or two references that you know better and furnish valuable information about
you.
C. The Concluding Paragraph: Conclude your letter with a hope of getting a favourable
reply from the producer.
3. Letter of the Manufacturer in Reply to the Application:
A reply from the manufacturer may be either the grant of the agency or refusal of the
agency. In all the cases, the following points should be noted.
i Acknowledge with thanks, the correspondent’s letter.
ii Appreciate his interest in your product and also his business standing.
iii Inform whether you are prepared to grant the agency applied. If not, inform politely that
you have already appointed or have no idea of appointing an agent at present. Also
express an assurance that his case will be considered if any agent is to be appointed in
future.
iv If the agency is granted, mention the terms of agency either in the form of accepting the
terms offered by the applicant or by giving your own terms.

4. Other Letters from the Principal:

Besides, a few letters are also to be sent between the principal and the agent. The letters
written by the principal to the agent are the following.
i Letter asking for the reasons of low sales if the agent fails to reach the target sales.
ii A circular letter to his customers and other interested parties expressing the termination
of the agency with a request not to deal with him in future.
5. Other Letter from the Agent:
The letters written by the agent are the following:
i Letters suggesting improvements in the products if a complaint is received from the
customer.
ii Letters explaining the reasons for the poor sales if an explanation is sought for.
A circular letter to all the customers and interested parties about your appointment as
an agent for the manufacturer.
 UNIT IV
OFFICE CORRESPONDENCE
A report is a logical presentation of facts and happenings in an institution. Information
becomes necessary for reviewing and evaluating progress, for planning future course of action
and for taking various aspects of the organization.
Meaning of a Report:
A report may be defined as a formal description of what has happened. It contains a detailed,
logical and systematic description of a problem or situation, findings of an investigation,
recommendations or a problem or situation, findings of an investigation, recommendations or
action taken.
C.A. Brown offers a very simple definition: A report is “a communication from someone
who wants to use that information”.
Features of a report:
1. A report is a statement containing some information on something required by the
company.
2. It is an orderly presentation of facts on an activity, event or program me.
3. A report is an objective and unbiased presentation of facts. It is required to present the
truth irrespective of the consequences.
4. A report is written for a specific audience.
5. It contains conclusions drawn by the writer together with the procedure followed for
collection, analysis and interpretation of data.
6. A report includes recommendations.
7. A report is written for some specific purpose.
8. A report is submitted by a lower authority to a higher authority on request or by
established procedures on request or by established procedures.
Features of a Good Report: A good report must satisfy the following requirements:
1. Simplicity: A good report must be written in a simple and easy language. It must be
easy to understand.
2. Clarity: A good report should be logically arranged. The report should have a title and
divided into short paragraphs. Proper headings and sub-headings should be used to give
the report an appearance of continuity and concentration on the topic.
3. Accuracy: A good report should contain accurate and unbiased information. Only such
accurate reports help in apt decision-making.
4. Precision: conciseness and coherence are essential. There should be no ambiguity about
recommendations contained in a
5. report. Precision makes a report suitable for quick actions.
6. Completeness: A good report must be complete in all respects. It should specify the
purpose, fact, conclusions and recommendations. It should not lead to another report.
7. Relevance: The contents of a report must be relevant to the purpose. Irrelevant facts
make a report misleading. Deviation from the basic purpose will make it unreliable.
8. Cross-reference: Whenever necessary, cross referencing should be provided in a report.
Cross-referencing helps to read and use the report effectively. Ex: Tables of model wage
payment.
9. Objectivity: Recommendations made in a report must be impartial and free from
prejudice. There should be logically derived conclusions and not based on personal
whims and fancies.
10. Brevity: A good report should be brief but complete. It should include every significant
detail yet be brief. Ex: A report that can be prepared in 200pages should not have
300pages.
11. Reader-orientation: While preparing report, the person who is to read is presentation
of facts. Therefore, it should be designed to maintain the attention of the reader.
Preparing a Report: The process of preparing a report consists of the following stages:
Step 1: Collect the material
a) Collect all the relevant materials, notes, documents, etc
Step 2: Plan the report
a) Define the purpose of your report.
b) Determine its contents.
c) Arrange the information in a logical order.
d) Use suitable headings &sub-headings.
e) Decide where illustrations and diagrams can be useful.
Step 3: Draft the report
a) Write the introduction - the purpose, the heading and the summary.
b) Write the body of the report.
c) Write the conclusions and recommendations based on findings.
Step 4: Edit the report
a) Examine the draft and redraft wherever necessary.
b) Check your grammar, spelling, punctuations, etc.
c) Check your illustration, examples and references.
Step 5: Final Draft
Prepare the final draft to make it readable, understandable and useful for finding practical
solution to problems.
Style of reports: A report may be drafted in the following two styles:
1. Letter style Report: In this style, a report is written like a letter on the letter-head of the
company. It covers mainly one topic. It is used to make requests, pass necessary
information, suggest action, or bring some matter to the attention of superiors. It is
divided into paragraphs and signed at the end. Such a report is more lengthy and detailed
than a memorandum.
2. Schematic style report: A schematic report is one which can deal with a number of
related topics, which is usually requested by a senior management executive, and
prepared by another manager or executive under specific headings.
1. Terms of reference: Under this heading, there should be a clear statement of the
purpose of the report, who requested it and the scope of enquiry.
2. Action taken: This should give details on the methods of preparation for the task he
is reporting on; or how he went about gathering the material and data for his
investigations and study.
3. Findings: Details should appear under this heading of what was observed or
discovered and what information was gathered. All data relevant to the action or
enquiry should be exhausted.
4. Conclusions: Under this heading should appear the conclusions arrived at from the
evidence or observation. They will include the writer’s opinion and assessment of
the problem studied.
5. Recommendations: In the light of the facts that he has presented in the report, the
writer may make recommendations or solutions.
It is always advisable to make a rough draft before presenting it properly. The rough draft
can be edited, altered and finalized part by part till satisfied.

Types of reports:
1 Informational reports: These reports present facts about certain given activity in detail
without any note or suggestions. Whatever is gathered is reported without any thing by
way of either explanation or suggestion.
2 Analytical reports: These reports contain facts along with analytical (using careful
examination in order to understand or explain something) explanation offered by the
reporter himself or may be asked for by the one who is seeking the report. Such reports
 contain the narration of facts, collected data and information, classified and tabulated data
and also explanatory note followed by the conclusions arrived at or interpretations.
3 Research reports: These reports are based on some research work conducted by either an
individual or a group on a given problem. Such a report is the result of a research.
4 Statutory reports: These reports are to be presented according to the requirements of a
particular law or a rule or a custom now has become a rule. Eg., auditor’s report.
5 Non statutory reports: These reports are not in the nature of legal requirements or rules
wants. Therefore, they are to be prepared and submitted for – the administrative and other
conveniences, taking decisions in a matter, policy formulations, projecting the future, etc.
6 Routine reports: These reports are required to be prepared and submitted periodically on
matters required by the organization so as to help the management to take decisions in the
matters relating to the day to day affairs. The main objectives of routine reports are to let
the management know as to what is happening in the organization, what is its progress,
where the deviation is, what measures have been taken in solving problems and what to
do so that the organization may run smoothly and efficiently. They are brief and only give
the facts.
7 Special reports: These reports are specially required to be prepared and submitted on
matters of special nature. These reports not only contain facts but also suggestions
comments and explanations as well.
AGENDA
Meaning: Agenda is a document that outlines the contents of a forthcoming meeting. It is
usually sent along with the notice of the meeting. Agenda - A program listing items of business
to be transacted in a meeting.
Writing the agenda: The points in the agenda can be written:
1. In the form of nouns, for example,
• Appointment of sub-committee to look into losses….
• Proposal to open a show room at
• Membership drive.
• Building fund collection.
• Review of the month’s activities.
2. With an infinitive verb, for example,
• To appoint a sub-committee to look into losses…
• To consider a proposal to open a go down.
• To organize a membership drive.
• To collect funds.
• To review activities of the month.
MINUTES OF MEETING
Minutes are the official record of the proceedings of a meeting. All organizations,
whether commercial or social, attach great importance to maintaining a proper record of the
business transacted at their various meetings.
Meaning: The official record of proceedings of the meetings is known as ‘minutes’. Minutes
are the systematic record of when and where a meeting was held who chaired the meeting who
were present at the meeting, who were not present, what decisions were taken at the meeting,
resolutions passed, objections and so on.
Minutes are of two types:
1. Minutes of resolution: only the resolutions are recorded. No reference is made to
discussions or other details.
2. Minutes of narration: It is similar to a brief report. A brief account of discussion, who
moved, who seconded and the voting pattern is also recorded. They can be recorded in
‘Block’ form, one after the other or by way of continuous paragraphs.
MEMORANDUM
The term Memorandum (Memos) has often been misunderstood as a part of disciplinary
proceedings. Far from it, the word at best means a note or record for future use. It is a useful
mode of informal communication. A memorandum (memorandums or memoranda in plural)
plays a convenient and flexible role. While much of inter and infra-office communication is
being done over the phone, memorandums are preferred when one needs to convey information
in writing. A memorandum is widely known by its abbreviated form, memo. It serves as a
warning to the person to whom it is issued, inviting his attention to the acts of omission or
commission. It is used internally. It is a short statement of an instruction to be done or acted
upon.
A memorandum (known as ‘memo’ in short from) is by definition, “a written statement
that prepare specifically for a person or committee in order to give them information about a
particular matter”. It takes the form of “a short official note that you write to a person or to
several people, especially to people with whom you work”. Memos have the basic purpose of
internal communication to circulate notes, information, circulars, orders etc.
Elements of an Effective Memo: An effective memo:
• Grabs the reader's attention
• Provides information, makes a recommendation, or asks for action
• Supports your position or explains benefits to reader
• Mentions next steps and deadlines

Characteristics of Memorandum
aA short written communication sent to members within an organization.
bIt may be used for recording and confirming an oral agreement, to communicate policy
or procedure to one or many people and place information on record.
c It is written in a formal style.
d Used for routine day-to-day exchange of information.
e It has the organization’s name printed on the top.
f Helps in fixing accountabilities of the sender and the receiver.
g Provides the receiver time to think and act.
h It may be for the attention of a single person or all, in the form of a circular.
Types of Memos
There are four types of memos you might have to write, each with its own organizational
format: information, problem-solving, persuasion, and internal memo proposal.
1 Information Memo
• Used to deliver or request information or assistance
• First paragraph provides main idea
• Second paragraph expands on the details
• Third paragraph outlines the action required
2 Problem-solving Memo
• Suggests a specific action to improve a situation
• First paragraph states the problem
• Second paragraph analyzes the problem
• Third paragraph makes a recommendation
• When making a recommendation, include not only the positive details but also the
drawbacks and diffuse them yourself
3 Persuasion Memo
• Used to encourage the reader to undertake an action he or she doesn't have to take
• First paragraph begins with an agreeable point
• Second paragraph introduces the idea
• Third paragraph states benefits to the reader
 • Fourth paragraph outlines the action required
• Fifth paragraph ends with a call to action
4 Internal Memo Proposal
• Used to convey suggestions to senior management
• First paragraph states reason for writing
• Second paragraph outlines present situation and states writer's proposal
• Third paragraph describes advantage(s)
• Fourth paragraph mentions and diffuses disadvantage(s)
• Fifth paragraph ends with a call to action
Parts of Memo: All memos consist of two sections: the heading and the body. The heading
indicates who is writing to whom, when, and why. The heading should include the following
parts:
1. To
• lists the names of everyone who will receive the memo includes the first and last name
and titles or departments of the recipients for formal memos, memos to superiors, or if
everyone on the list does not know each other
• if all recipients know each other's names and positions, use just the first initial and last
name of each recipient list"
• at the end of the memo add the word "Distribution" and then list the names of the can
be listed alphabetically or by rank
• if it is not possible to fit all the names in the To: area, use the phrase "See distribution
people who will receive a copy of the memo
• arrange the names by rank, department or alphabetically
2. From
• lists the name of the writer(s) in the same way as the name(s) of the recipient(s)
• there is no complimentary close or signature line, but authors initial their names on the
• From: line
3. Date
• lists the month, date, and year the memo was written
• do not use abbreviations
• avoid using numbers for months and days

4. Re: or Subject
• indicates the main subject of the letter
• should be as specific and concise as possible
5. Cc or c
• lists those readers who should have a copy of the memo for their information or
• reference but are not expected to carry out the same action as the recipients listed in the
To: line
• "cc" can also be placed at the end of the memo below the distribution list (if used)
Differences between Memos and Letters:

Letters Memos

1. Letters are long Memos are short.

2. Letters have several parts. Used for internal communication.

 3. Mostly used for external Used for internal communication.
communication.
4. It has to conform to the rules of Though memos are formal, they do not
letter writing. follow the rules a letter has to observe.

OFFICE ORDER
Office order is a means of downward communication. It carries commands and
instructions which people working at lower levels are bound to accept. Orders are issued by
superiors to their subordinates. Office orders are used to communicate messages related to
posting, promotion, transfer, suspension, termination of services, granting\withdrawing certain
privileges, imposing certain restrictions, disciplinary proceedings, new guidelines, rules,
procedures, assignment, of work and so on.

The following points can help in drafting good office orders:

➢ Orders must be very precise. Without containing any unnecessary details.
➢ They should be written in very simple words so that all can easily understand them. The
objective should be to establish perfect clarity.
➢ Orders should be written in un-offensive but firm language.
➢ They should clearly specify for whom they are meant and what the receivers are expected
to do or not to do.
IX. CIRCULAR
Meaning: A circular is a letter addressed to a large number of customers conveying the same
message. For eg., opening a new branch. The letters are photocopied or printed, as multiple
copies are required.
Occasions when Circular letters are sent: The usual occasions when circulars are mentioned
below:
 When a new branch is opened.  When a new partner is added.
 When a new department is added.  When a partnership is converted into a
 When a new business is set up. joint-stock company.
 When new goods are introduced.  When a power of attorney is obtained.
 When business is moved to a new  When an agency is obtained.
premises.  When clearance sales are effected.
 When a partner retires from a firm or dies.

Characteristics of Circular letters:

1. All copies of circular letters convey the same information.
2. They are addressed to a large number of people.
3. They are generally photocopied, printed or lithographed.
4. They are not addressed personally to a recipient since the message to be conveyed is
common to all.
5. Such letters are usually not signed, since a very large number of them are sent.
6. They contain information which the customers need to know.
7. Since they are mass produced, inside addresses are entered at the time of mailing.
8. Since they are sent to different types of customers such as individuals, partnerships,
companies, etc, the salutation is general such as ‘Dear Customer’, ‘Dear manufacturer’.
9. They are pleasantly worded and in the nature of inspiring confidence.
Types of Circular letters:
1 Circular letters announcing the Establishment of a New Business: The primary object
 of a circular letter announcing the establishment of a new business is to wean the
customers away from their previous dealers. Therefore, the letters should be drafted so as
to win the confidence of the customers.
➢ The letter should convince that the firm has necessary experience in the particular line
of business.
➢ The price quoted should be competitive. Initial low price is likely to attract the
customers to make the first contact. The letter should also mention the facilities the
organization is offering to customers such as free delivery, special discount allowed
and the period it is offered, its central location, shopping conveniences, etc.
➢ The name and style of its business address.
➢ Date of commencement of business, nature of the business.
➢ Details about the proprietor or partners and their experience in the line.
➢ Capital at your disposal. The exact amount need not be mentioned.
➢ A request for a trial order which will convince the recipient of the circular about the
claim made in the circular.
➢ Such a letter should enclose an invitation to the inauguration ceremony.
2 Circular letters intimating the Opening of a Branch: Points which a circular letter
must contain which announcing the opening of a branch are stated below briefly:
➢ The complete address and location of the branch.
➢ The date from which the branch will be functioning.
➢ The name of the manager together with his specimen signature.
➢ The letter should recall with gratitude the patronage extended so long and with an
appeal to extend it.
➢ A brief mention of the conveniences offered to customers as a result of opening of
the branch.
➢ An invitation to the customers to visit the new showroom on the opening day
ceremony.
3 Circular letters announcing the Shifting of the Business to a New Premise: The points
given in the previous heading must be reproduced and the following ones must be
stressed:
➢ The letter should also state how the inconveniences exhibited in the old place have
been removed in the new premises.
➢ The benefit of central location, vastness of accommodation, shopping conveniences
provided, transport faculties available all must be stated.
4 Circular letters announcing Addition of a New Department:
➢ State how consumers can get all their requirements satisfied under one roof.
➢ It must be stressed how the persistent demand of numerous customers to have such
goods in their own shops has been fulfilled by the creation of the new department.
➢ The experience and efficiency of the person who heads the department.
➢ An assurance to provide a variety of standard goods at competitive prices.
➢ The usual invitation to the customers to visit the department.
5 Circular letters intimating the Death or Retirement of a Partner: Since a circular
letter announcing the death or retirement of a partner involves change in the constitution
of the firm necessitating depletion of financial resources, it must be drafted with a view
to retain the confidence of the customers.
➢ The letter should contain expression of regret at the loss of the retiring or deceased
partner.
➢ It should acknowledge the services rendered by such a partner.
➢ It should assure that this change does not result in the depletion of capital and that
the business would continue to be run on the same lines as before.
➢ If there is any change in the name of the firm, it should be pointed out.
➢ It should also state whether the vacancy will be filled in by a new partner.
➢ It should give the specimen signature of an incoming partner, if any.
 ➢ It should end with soliciting customers’ continued patronage.
6 Circular letters announcing the Conversion of a Partnership into a Private Limited
Company: A circular letter announcing the conversion of a partnership into a private
limited company must contain the following points:
➢ The letter must point out that the very conversion into a private company is an
evidence of its substantial growth.
➢ The continued expansion has made it necessary for mobilizing greater capital.
➢ The name and style under which it will function after conversion.
➢ The date from which it will start functioning as a private limited company.
➢ The letter should also stress that despite this change, it will continue to have its
personal relations with the customers and that customer satisfaction will be its main
motto.
➢ It should end with an appeal to continue their patronage.
7 Circular letters announcing the Obtaining of an Agency: A circular letter which
announces that an agency has been obtained must stress the following points:
➢ The area of agency operation.
➢ A reference to qualities of the product.
➢ A hope that orders would be more promptly executed.
➢ It should also refer to the wide publicity given through various media so as to make
the product a fast selling line.
➢ The competitive price advantage that the product enjoys.
➢ The benefit of brand image that the product carries with it.
➢ Such a circular letter can be accompanied by samples stating that the clam made in
the letter can be tested.
➢ If any special discount is offered at the time of introduction of the product in the
market, it should be stressed.
➢ The letter should conclude with a hope that the dealer would unhesitatingly co-
operate in pushing the sales of the product.
OFFICE CIRCULAR
Circular is a letter addressed to all officers, branches or departments of a company. The
purpose is to circulate information contained therein among persons intended. Office circulars
are used to send information of a general nature to employees in an organization.
They are widely used to intimate changes in working hours, to invite application from
employees for promotion test\interview, to inform changes in medical rules, ect. Office
circulars should be brief, precise and persuasive. The subject of the circular should be stated at
the top.
Features of office circular
• It is written in a simple language free from technical jargon, as it is intended for employees
across the organization.
• It is a letter addressed by the head office to all branches and departments.
• It is a medium to carry information over to a large number of people.
• Since management issues a number of circular has to carry a reference number which is
self-explanatory. For example, HR/07/2010/5. Means that the circular is from the HR
department, issued in the 7th month of 2010 and it is the fifth circular of the year.
OFFICE NOTE
It is very short memorandum. It is exchanged between persons who work on the same
task and need to exchange items of information frequently. Office notes are messages
exchanged between officers of equal rank or between departments of an organization.
Obviously, they come under horizontal communication. They are useful in ‘getting’ and
‘giving’ information and suggestions.
Characteristics of office Note
• The note should be concise and clear.
• Should convey the decision of the note-maker.
• Should be written in a courteous fashion.
• Lengthy information, if any, needs to be given in appendix.
• It should be signed by the note-maker with his/her designation and department for further
action.
• It must be clearly marked to the person/department concerned for further action.
 UNIT V
MODERN FORMS OF COMMUNICATION
THE FACSIMILE (Fax):
Facsimile telegraphy deals with the transmission of typewritten or handwritten message,
drawings, graphics, pictures or any matter which cannot be sent through telegraphs, telephone
or teleprinters. The fax machine operates by converting the variances of light reflected from
the image of the original matter into electrical impulses which can be reconverted onto the
image form on reception. Connections can be made over very long distance using the public
telephone networks or radio links. Fax is perhaps the fastest system presently available for
transmitting and receiving a standard letter size document.
A fax machine just blends into daily office life and it’s probably rare that one ever
considers how it was invented. The fax machine isn’t a child of the 1980s although this is when
it became a popular addition to offices worldwide. The first step towards the fax machines we
know today was made way back in 1843 when Scottish inventor Alexander Bain connected
two pens on two pendulums and joined them together with the wire. He was able to reproduce
writing on a surface, which conducted electricity. The fax machine had to go through quite a
lot of modifications after Bain’s initial idea.
The late 1800s and early 1900s saw a surge in the evolution of fax machine where it wasn’t
so much survival of the fittest but the survival and adaptation of the fittest ideas. Adaptation
could be a polite way of saying ‘ripping off’ as the ideas flowed form one inventor to the other
and over continents with inventors making the previous version more successful and racing to
patent their developments. Key inventors include Giovanni Caselli, an Italian who created the
Pantelegraph and sent a fax from Paris to Lyon in 1860, he was followed by an American
inventor Ernest Hummel who invented a close contender called the telediagraph in 1895.
Arthur Korn invented telephotograph in 1902 in Germany when the manually broke down still
photographs and transmitted them through electrical wires. Five years later he sent the first fax
from Mumbai to Berlin.
It was in France in 1925 that the prototype for the faxes we know today was invented
by Edouard Beeline. Beeline created the Belinograph, which used a light beam and a
photoelectric cell to convert the absence of light on an image into a series of electrical pulses.
This idea was championed by news paper corporations who used the technology to send
photographs to other offices.
These early faxes were difficult to use and expensive to buy and it took until 1966
for the Xerox company to develop the fax machine so it could be connected to a phone line and
be small enough to fit into any office. These developments continued as companies made each
new model of fax machine became what we know and use today.
Some might think the fax machine is coming to the end of its useful life and will be
replaced by e-mail. However, this isn’t the case as the fax machine is now an integral part of
office life. Fax machines still retain some advantages, particularly in the transmission of
sensitive material which, if sent over the Internet unencrypted, may be vunerable to
interception. In many corporate environments, standalone fax machines have been replace by
“fax servers” and other computerized systems capable of receiving and storing incoming faxes
electronically, and then routing them to users on paper or via an email (which may be secured).
Such systems have the advantage of reducing costs by eliminating unnecessary printouts and
reducing the number of inbound analog phone lines needed by an office.
This machine is useful for transmitting written matters in any form. Whether it is a
chart, diagram, photographs or illustrations, all can be transmitted.
A photo copier or Xerox machine copies, whatever is placed in the ‘copier’ zone. But in the
case of a Fax machine, the matter for copying is placed in the machine and this matter is copied
in an another Fax machine at the another end. Ex: sending a fax for facsimile from Chennai to
Bangalore or vice versa. Thus two fax machines, have to be inter connected to get a fax or
facsimile message.
 When Mr. Ramesh (in Chennai) uses his fax machine to send a fax to Mr. Chandrasekar
at Madurai, Mr. Ramesh places the matter to be faxed in his machine. After receiving
instructions and getting activated, the machine of Mr. Chandrasekar receives the fax n papers
placed in his machine. If Mr. Chandrasekar wants to send a fax to Mr. Ramesh, the process has
to be reversed. That is all.
In a Xerox machine we take copies of whatever we want in our presence. In a fax machine
others receive our copies sent to them. With the availability of colour fax machines, messages
can be seen as desired by us.

EMAIL
“Electronic mail” – or “e-mail,” as it is commonly called – is the process of sending or
receiving a computer file or message by computer modem over telephone wires to a pre-
selected “mail box” or “address” on another computer.
E-mail can also be sent automatically to a large number of electronic addresses via
mailing lists (through ‘mail- merge’ option). E-mail messages can range from the simplest
correspondence to business presentations, engineering blueprints, book chapters, or detailed
contracts. Graphics, files of artwork or photography, can be transmitted via this technology as
well, though text messages comprise the vast majority of e-mail transmissions. Today, e-mail
stands as a central component of business communication, both within businesses and between
business enterprises, because of the many advantages that it offers over regular mail in terms
of efficiency, speed, and 24-hour availability. These characteristics have made electronic mail
a truly ubiquitous presence across the globe.

Features of Email
1 Electronic: It is an electronic mode of message transmission as it is sent using HTML
(Hyper Text Markup Language) – the computer code used to create web pages
2 Cost-Effective: It is one of the cost-effective modes of fast communication. Today with
the advent of smart-phones, communicating through emails has become even more cost-
effective.
3 Packages: Packages like ‘Messenger’ and ‘Outlook’ help us compose new mails or
forward the received ones to one or all of the people whose email addresses are stored in
the ‘Address Box’. They allow us to change font, sizes and color of the text; highlight,
delete, store or save; align center or justify the text; italicize, bold, underline or even print
what we write or receive as email.
4 Interface: An interface between email program and word processing program allows us
to cut, copy, paste material from one place to the other.
5 Attachments: The ‘Attach’ option allows us to share documents, worksheets,
presentations, pictures and videos along with the mails.
6 Spam: Unsolicited or Junk mails can be filtered by using the ‘spam’ option which forbids
unwanted mails to enter your inbox. These unwanted mails may be advertisements, job
offers, competition forms etc which one does not want to receive frequently.
7 Signature: We can customize our signature as we want it to appear in the complimentary
closure of every email. Once you add your signature it automatically appears at the end of
every mail that you compose. One need not write the name, designation, contact no etc
again and again.
8 Search: The search option helps us to locate old email communications. This can be
achieved by typing the sender’s name in the search box and click the search button. It will
reflect all mails containing the name so typed.

Advantages of Email:
i. Managing Email is Easy: You can manage all your correspondence on screen and so can
your customers. Your proposal can be answered, revised, stored, and sent to others, all
without reams of paper involved.
 ii. Email is Fast: Mail is delivered instantly, from your office to anywhere in the world. No
other method of delivery can provide this service. Timely buying and selling decisions can
be made in a heartbeat.
iii. Email is Inexpensive: Compared to telephone calls, faxes, or overnight courier service,
Email is less expensive.
iv. Email is convenient: As one need not find an envelope, buy a stamp or look for a mail box
to send an e-mail. All can be done at home, any hour of the day.
v. Email helps to stay in touch: E-mail is great for contacting people who are perpetually on
the phone or out of office. It also makes it easier to deal with people in different time zones.
vi. Email helps in sending people files: An e-mail message could be sent along with
attachments like text documents, pictures, sound clips and program files.
vii. Email is Easy to Filter: The subject line on an Email makes it easy to prioritize messages.
The reader can identify critical correspondence quickly and deal with it immediately. Unlike
regular mail which needs to be opened and reviewed, or voice mail which requires you to
either listen to or scan all your messages for those that require immediate attention.
viii. Transmission is Secure and Reliable: The level of security in transmitting Email messages
is very high, and the industry continues to strive to develop even tighter security levels.
Email is private. Often telephone and fax messages are not. If the address information is
correct, rarely does an Email go astray. Fax machines can be out of order or out of paper
and this prevents an important message from being delivered in a timely manner.
ix. Email has been credited for increased efficiency, business readiness, and a host of other
advantages tied to increased productivity.

Disadvantages of Email:
i. Time Consuming: While writing an email takes less time that it takes to print a letter and
mail it off, the ease of sending an email also means the average person receives more
correspondence electronically than they would if all correspondence was by postal mail.
Sometimes the message is better communicated over the telephone or directly. Organizing
and reading through emails can also eat up a great deal of time and prove a hindrance on
worker productivity.
ii. Security: Sensitive information can be easily shared and distributed within a business
through email. It does not matter if the email is sent accidentally or deliberately, the harm
is the same. Moreover, when someone hands you a business letter, you are the only person
that receives that letter. An email can be intercepted by a hacker or go to an incorrect email
address and wind up in someone else’s inbox. Your sensitive information and messages are
very accessible to hackers and even unsuspecting recipients when you use email.
iii. Impersonal Communication: While email can be faster, the meaning of the message is
often lost in the text. It can make customers or employees forget there are people involved
in the transaction, which can affect customer service. Since email recipients cannot see
each other, the emails do not have any voice inflection or emotion that can help with proper
interpretation.
iv. Misunderstanding: Pronouns and popular jargon can lead to conflict in emails. In
addition, email is filled with abbreviations and short descriptions, which can often be
misunderstood and/or interpreted the wrong way.
v. Vulnerability (weakness / openness): It would take a manual effort on the part of someone
to access all of your important printed documents and destroy them. But all of your emails
and important information can be lost with a simple hard-drive crash. If you store your
email information on another server, then you could lose your data if that site goes down
or out of business.
vi. Email cannot be considered a confidential mode of communication.
vii. Email should not be considered as a replacement for direct, face-to-face communication.
viii. Email cannot be relied in case of emergency messages as the receiver may read it at their
own convenient time.
ix. Email depends on the internet connectivity which can get disturbed or disconnected due to
various reasons.

VIDEO CONFERENCING
A video-conference or video-teleconference (VTC) is a set of interactive
telecommunication technologies, which allow two or more locations to interact via two-way
video and audio transmissions simultaneously. It has also been called ‘visual collaboration’
and is a type of groupware.
Videoconferencing uses telecommunications of audio and video to bring people at
different sites together for a meeting. This can be as simple as a conversation between two
people in private offices (point-to-point) or involve several sites (multi-point) with more than
one person in large rooms at different sites. Besides the audio and visual transmission of
meeting activities, videoconferencing can be used to share documents, computer-displayed
information, and whiteboards.
The core technology used in a video teleconference (VTC) system is digital compression
of audio and video streams in real time. The hardware or software that performs compression
is called a codec (coder/decoder).
The components required for a VTC system include:
➢ Video input: Video camera or webcam
➢ Video output: Computer monitor, television or projector.
➢ Audio input: Microphones, CD/DVD player, cassette player, or any other source of
PreAmp audio outlet.
➢ Audio output: Usually loudspeakers associated with the display device or telephone.
➢ Data transfer: Analog or digital telephone network, LAN, or Internet.
Videoconferencing provides students with the opportunity to learn by participating in a
2-way communication platform. Furthermore, teachers and lectures from all over the world can
be brought to classes in remote or otherwise isolated places. Students from diverse
communities and backgrounds can come together to learn about one another. Students are able
to explore, communicate, analyze and share information and ideas with one another. Through
videoconferencing students can visit another part of the world to speak with others, visit a zoo,
a museum and so on, to learn. These “virtual field trips” can bring opportunities to children,
especially those in geographically isolated locations, or the economically disadvantaged. Small
schools can use this technology to pool resources and teach course which could not otherwise
be offered.
Video-conferencing is a very useful technology for telemedicine and telenursing
applications such as diagnosis, consulting, transmission of medical images, etc.., in real time
in countries where this is legal. Using VTC, patients may contract nurses and physicians in
emergency or routine situations, physicians and other paramedical professionals can discuss
cases across large distances. Rural areas can use this technology for diagnostic purposes, thus
saving lives and making more efficient use of health care money. Special peripherals such as
microscopes fitted with digital cameras, video endoscopes, medical ultrasound imaging
devices, otoscopes, etc.., can be used in conjunction with VTC equipment to transmit data about
a patient.
Videoconferencing can enable individuals in faraway places to have meetings on short
notice. Time and money that used to be spent in travelling can be used to have short meeting.
Videoconferencing is now being introduced to online networking websites, in order to help
businesses form profitable relationships quickly and efficiently without leaving their place of
work. This has been leveraged by banks to connect busy banking professionals with customer
in various locations using video banking technology.

MULTIPOINT VIDEOCONFERENCING
 Simultaneous videoconferencing among three or more remote points is possible by means
of a Multipoint Control Unit (MCU). Through MCU, we can arrange videoconferencing for
multiple parties at the same time:
Thus video conferencing can be extremely useful to:
1. Multinational companies.
2. International Institutions such as I.M.F, A.D.B, etc. and
3. International leaders.
They can ‘meet’ each other without travelling to distant places and solve their problems
comfortably and conveniently.
Advantages of modern forms of communication:
1. They can update their knowledge on any matter.
2. They can get used to the basic functions of computers.
3. Computer literacy can be an added advantage for studying and writing examinations.
4. They can learn to maintain information related to their friends, relatives and others in an
orderly and modern form.
5. Word processing can be very useful in sending neat and impressive letters.
6. Internet facility can be useful for admissions to others universities. It can also be used for
online job interviews.

INTERNET
Meaning: The Internet is a massive network of networks - a networking infrastructure. It
connects millions of computers together globally, forming a network in which any computer
can communicate with any other computer as long as they are both connected to the Internet.
Information that travels over the Internet does so via a variety of languages known as protocols.
Functioning of Internet:
➢ Each computer on the Internet has unique address.
➢ When data is transferred the computer uses Transmission Control Protocol (TCP) to divide
data into small packets.
➢ Internet Protocol (IP) shifts the packets across the Internet, by a convenient route and then
TCP reassembles the data.
➢ Any computer that can do TCP/IP can be connected to the Internet.
Connecting to the Internet: Four things are needed to connect to the internet, they are:
➢ A Computer: The simplest option is to use a Persona Computer running windows
operating system.
➢ A physical connection: A physical connection between the computer and the Internet is
essential and it is provided in the form of Internet cables, power lines and phone cables. A
specific device used for physical connection is the modern, which enables computers to
communicate with each other via a telephone line.
➢ An Internet Service Provider: ISPs make it possible for ordinary people to access the
internet form their bedrooms. The Service providers have computers permanently wired
up to the Internet and to a large number of moderns. Once an internet account is opened,
the personal modern establishes a connection with one of the ISP’s modern for Internet
access.
➢ Internet Software: Internet software programs are necessary to send and receive
information. It is provided by the service provider in the form of CDs.
Usefulness of the Internet:
➢ The Internet helps people to stay in touch. It is one of the easiest, fastest and cheapest ways
to keep in touch.
➢ The Internet helps people from different background to interact on a common platform.
The individuals who share similar interests can chat through the Internet from any part of
the world.
➢ Internet serves as a pool of information, any news from around the world could be viewed
through the Internet. One can look up phone numbers, directors, news, etc..,
➢ The Internet provides a lot of recreational activities like games, stories, movies, etc..,
➢ The Internet is accessible 24 hours a day throughout the year. It provides latest
information.
➢ The Internet helps in calculations, like currency conversion, tax returns, etc..,
➢ The Internet clarifies doubts and resolves arguments through useful websites and blogs.
➢ Internet is used to promote business. A visual picture of the business could be provided
through attractive websites.

WEBSITES AND THEIR USE IN BUSINESS.

Meaning: A website is a set of related web pages typically served from a single web domain.
A website is hosted on at least one web server, accessible via a network such as the Internet or
a private local area network through an Internet address known as a Uniform Resource
Locator (URL). It is also written as web site or simply site. All publicly accessible websites
collectively constitute the World Wide Web.
Types of websites: Websites can be divided into two broad categories - static and interactive.
Interactive sites are part of the Web 2.0 community of sites, and allow for interactivity
between the site owner and site visitors. Static sites serve or capture information but do not
allow engagement with the audience directly. Some web sites are informational or produced
by enthusiasts or for personal use or entertainment. Many web sites do aim to make money,
using one or more business models, including:
• Posting interesting content and selling contextual advertising either through direct sales or
through an advertising network.
• E-commerce - products or services are purchased directly through the web site
• Advertising products or services available at a brick and mortar business
• Freemium - basic content is available for free but premium content is paid

REASONS FOR WEBSITES IN BUSINESS

1. Your small business will gain credibility: Today, more and more consumers use the
internet to search for the products or services they need. Your small business will gain
credibility by having a website. Without one, potential customers will go to your
competitors that do.
2. A website saves you money: As a small business owner you probably think you can't
afford a professional website, but you can't afford not to. Compared with the cost of a
newspaper ad, when you consider the potential market you can reach with a website, it is
a very cost effective way to promote your business.
3. It will enable you to keep your customers informed: Think of your website as being
your online brochure or catalogue. It is much easier and quicker to update information
about your products and services on your website than in print material, making it an
effective way of letting your customers know about the arrival of new products, upcoming
events, special promotions, or any new services you now offer. Unlike print ads which
quickly become outdated, your website can provide current information and news.
4. It is always accessible: a website is available to both your regular and potential customers
24/7/365 providing them with the convenience of reviewing your products and services
when your store or office is closed.
5. A website makes it possible to target a wider market: Whether you provide products
or services, your website will provide an alternative location to sell them. As a retailer, a
website (e-commerce) is a great place to sell your products to a wider market; even
services can be made available globally.
6. It provides a medium on which to showcase your work: No matter what type of
business you’re in, a website is a great place to showcase your work. By including a
portfolio or image gallery, as well as testimonials about your work, you can demonstrate
what makes your business unique.
7. A website saves you time: Providing information to your customers takes time, whether
it’s on the phone, face-to-face, in a brochure, or in emails. With an online catalogue you
can provide lots of information about your products and services. Once your website is up
and running, it is available to your customers indefinitely, saving you time.
8. It improves customer service: May be you sell environmentally friendly products and
would like to share tips on how to recycle, or perhaps you are an accountant and want to
give your clients advice on how to simplify their bookkeeping practices.

Advantages of Websites for Business:

1 Reaching a Wider Audience: website is the potential for reaching a wider audience.
The internet is used by literally millions of people, all of them are looking for something
and some of them might be looking for you. Your business might be local, but you might
have the potential to sell your products or services to a wider market, whether it is people
in the next town, the nation as a whole or even the international market. So having a well
designed website will help encourage them to come and visit you or be able to find your
business in the first place.
2 Anyone, anywhere and anytime: An advantage of having a website is your business
information and details about your products and services can be accessed by anyone, no
matter where they are on the planet or what time of day it is. The internet is online 24
hours a day, 7 days a week. So even if your business is not open your website will be. If
you have a contact form or another way for people to be able to contact you – even if it
is as simple as your e-mail address on your website, then people can potentially get in
contact with you, whether you’re in front of a computer or not.
3 Easy Access to Business Information: With a website, customers can easily access
information about your business. They can see what products or services you sell, your
prices, your location and much more. Whatever you decide to tell them, they can find it
with a few clicks of a mouse.
4 Keeping it fresh: Once a website is designed, you can keep it up-to-date to be relevant
to your business and encourage more visitors (and potential sales). More and more people
are using a blog to promote their business. So using a blog to keep content fresh and
attract attention could mean a big difference to your business.
5 Publicity and Advertising: The costs of having a business website are actually quite
low. The ongoing costs are minimal, but the potential return on investment could be quite
significant. Think of your business website in terms of advertising for your business and
you will be more likely to see the value.
 6 Links from others and Viral Marketing: With a website and the current use of social
media and marketing, it is quite possible for a good idea, clever product or business
service to go “viral”. Viral marketing is a boom in recent years.
7 Securing Your Brand Online: Having a website for your business is not just an
advantage; it’s an essential way to protect your business brand online.
Disadvantages of Websites for Business
1. Unreliability of information: The information on your website might be unreliable if not
updated on a regular basis. We need to ensure that changes are made when necessary and
have a disclaimer with regards to the reliability of the information contained within.
2. Crashes and Uptime: A website that crashes is no good to anyone. This is a serious
disadvantage for a business. If your website is constantly crashing or unavailable then
people will not be able to find information about your business and you could miss out on
potential sales. An unreliable connection could also mean a plummet in a websites search
engine ranking. This is the reason why we need good Webhosting for Business.
3. Difficultly reaching the right people: Because of the nature of the internet and the
absolute number of businesses already on the World Wide Web, we may find it difficult
to reach the right target audience with your website. While Search Engine Essentials can
help improve your ranking and put your business on the right footing.
4. SPAM: We all hate spam. The internet equivalent of junk mail. This is one of the
disadvantages of a website which can cause some unhappiness. With a contact form or e-
mail address published on your website, you will soon find your inbox filling up with spam
e-mails unless you use Form Guard tool.
5. Bad Publicity: Having a website risks attracting bad publicity. If a customer is unhappy
with your service or products, then they may feel the need to vent their frustrations online
and reference your website in their review/comments. This could be potentially damaging,
hurting both your reputation and your search engine ranking. Providing the best
possible customer care and learning from your clients feedback is the best possible course
of action to fight this problem.