Managerial Communication

Unit 1
Barriers of Communication:-
Introduction: Communication is one of our basic needs. We require to communicate with
many people for personal and professional purpose. But while communicating we may face
many hurdles or problems. Sometimes the message is not passed properly or gets lost. There
are chances of misunderstanding between the sender or the receiver. Sometimes language
used in the communication is not understood properly. This results into Communication
breakdown or communication failure. There are many reasons behind the problems in the
communication process. Let’s study the Communication Barriers in detail.
Definition of the Barrier to Communication: ‘Any obstacle or problem in the process of
Communication which hinders/obstructs the process of Communication is called Barrier.’
Types of Barriers: We face many barriers while communicating. These barriers can create
obstacles in the communication process. These barriers are classified into the following types.
1. Physical Barriers: Many barriers arise in the surroundings or our environment. These
barriers create problems or confusion in communication.
• Noise: Traffic Noise or noise of machines in factory creates disturbances in
communication. Noise pollution is biggest contributor or environment pollution in
India.
• Time and Distance: Physical distances between people can create major problems in
communication. Time zones around the world are not same. Due to differences in
timings between countries we have to adjust with the time difference of that country.
• Defects in Communication Systems: Many times the instruments or machines used
in communication such as Telephones, Fax or Computer can develop problems. The
network of Internet can fail or the Mike or Microphone used in the programmes can
create loud noise. Due to excess rains or natural calamity it becomes difficult to use
the instruments properly. The failure of Electronic power also results into
communication loss or messages are not sent properly.
• Wrong Selection of Medium: Medium means the objects used in communication
eg. Emails, Mobile Phones or Telephones etc. The correct medium is necessary. The
improper use of some machines such as Emails can delay the messages.
• High Temperature and Humidity: Excess Temperature or heat or cold Temperature
create difficulties in communication Many times human physical defects such as
stammering, bad hearing, failure of communication channels and bad handwriting
also create misunderstanding in learning the message.
2. Language Barriers: Barriers arising due to differences in languages, words meaning or
pronunciation can create confusion among the people. Linguistic means related to the
language. Semantic means the meaning of the words. Following are some of the
examples of language barriers.
 • Different Languages or lack of Common Language can create obstacles in
Communication. A person who does not understand the native language or even
foreign language cannot communicate well. This becomes very difficult situation.
• Multiplicity of words: words can have different meanings. Word power is gift to
human beings but at the same times multiple meaning or spellings of the words can
create the problems in communication.
• Words with similar pronunciation but different meaning [Homophones]also create
problems in communication. E.g. Except-accept, fair-fare, council-
counsel,principalprinciple[etc].
• Jargon words[Technical words]used by professionals such as Engineers/Doctors or
any other professionals. Many times, jargon words are used unintentionally. But
common people or those who do not understand the meaning of these words face
problems.
• By-passed Instructions: Means many times short cuts are used while passing the
messages. Eg. A Manager ordered the newly appointed secretary to go and burn the
C.D. She literally burned it. He meant to copy the C.D.
3. Psychological Barriers: Psyche means mind. Psychological barriers arise in the minds.
Human mind it very complex thing to understand. We face many times some conflicts
due to situations or surrounding events. So these barriers are bound to arise. But the
real problem is that people do not accept that these barriers exists in their minds. Due
to status, old age and ego problems many times psychological barriers are created.
These are difficult to overcome. Because people do not accept that they face barriers
or they lack proper understanding to face the world. The following are situations or
examples of psychological barriers.
• Ego: `I’ Attitude means I am great feeling can create barrier in mind. Ego
barriers create conflict in human relations.
• Status: Status creates barriers in the employees. Higher or lower status creates
obstacles in thinking or mixing with people. People keep distance while
communicating due to status barriers.
• Perceptions: The way we look at the world or attitude determines our
Communication strategy. Wrong or negative perceptions can create difficulty
in communication . People who have negative perceptions or think negatively
look at everything or event negatively.
• Poor Retention: ability to retain the message or remember is important. But if
it is poor then communication becomes difficult.
• Interest and Attitudes: Interests and Attitudes of people determines
communication strategy. Lack of interest or wrong attitude can lead improper
communication.
• Day-Dreaming: Many students have habits of dreaming or thinking about
something else when some lecture is going on or talk is going on. This
obstructs the communication and messages are not reached properly.
4.Socio-Cultural Barriers: Culture is way of life, values or principles .Cultural
differences between people can create barriers . Different religious practices are
 followed around the world. Due to many time differences in the culture can create
misunderstanding in communication. Due to globalization and liberalized policies
in business, people around the world are travelling and working in multinational
corporates or companies. This led to mixing or intermingling between people But
due to differences in language, religious practices, dressing styles, food habits
many times people get confused and are not able to understand each other
properly. This led to communication failure. The following are examples or socio-
cultural barriers.
• Concept of Time : The time is not perceived similarly across the cultures.
In Western culture Time is important. In Asian culture Time is taken
leisurely. The concept of punctuality differs in cultures.
• Assumptions about social strata or caste system. Caste system is observed
in India. But in every culture some kind or differences in the society in the
form of religion, community differences or sects or class division is
observed. We should not always assume someone superior or inferior
because of caste or class system.
• Etiquettes and Mannerisms: In every society or cultures different types of
mannerisms are observed. This includes rule of behaviours or how to
follow certain code of conduct. Different forms of address and salutation
or different methods of dressing [formal or informal wearing] are
observed. This can be confusing sometimes.
• Food preparation method or serving methods are not the same. There are
certain expected norms of eating food in meeting .These are called dining
etiquettes.
• Body Language [Non Verbal Behaviour] methods around the world are
not same. There can be misunderstandings because of this.
• Proximity [Concept of Space] differs from culture to culture. In some
culture close distance between people is not approved. In some culture
close distance is accepted.
• Value system is not same across the cultures. Values or good behaviour or
ethical principles guide in our life. But the method of this value system is
not same around the world.
Unit 2:-
Introduction
In an organization, information flows forward, backwards and sideways. This information
flow is referred to as communication. Communication channels refer to the way this
information flows within the organization and with other organizations.
In this web known as communication, a manager becomes a link. Decisions and directions
flow upwards or downwards or sideways depending on the position of the manager in the
communication web.
For example, reports from lower level manager will flow upwards. A good manager has to
inspire, steer and organize his employees efficiently, and for all this, the tools in his
possession are spoken and written words. For the flow of information and for a manager to
handle his employees, it is important for an effectual communication channel to be in place.
Importance of a Communication Channel
A breakdown in the communication channel leads to an inefficient flow of information.
Employees are unaware of what the company expects of them. They are uninformed of what
is going on in the company.
This will cause them to become suspicious of motives and any changes in the company. Also
without effective communication, employees become department minded rather than
company minded, and this affects their decision making and productivity in the workplace.
Eventually, this harms the overall organizational objectives as well. Hence, in order for an
organization to be run effectively, a good manager should be able to communicate to his/her
employees what is expected of them, make sure they are fully aware of company policies and
any upcoming changes.
Therefore, an effective communication channel should be implemented by managers to
optimize worker productivity to ensure the smooth running of the organization.
Types of Communication Channels
The number of communication channels available to a manager has increased over the last 20
odd years. Video conferencing, mobile technology, electronic bulletin boards and fax
machines are some of the new possibilities. As organizations grow in size, managers cannot
rely on face-to-face communication alone to get their message across. A challenge the
managers face today is to determine what type of communication channel should they opt for
in order to carryout effective communication. In order to make a manager's task easier, the
types of communication channels are grouped into three main groups: formal, informal and
unofficial.
Formal Communication Channels
A formal communication channel transmits information such as the goals, policies and
procedures of an organization. Messages in this type of communication channel follow a
chain of command. This means information flows from a manager to his subordinates and
they in turn pass on the information to the next level of staff.
An example of a formal communication channel is a company's newsletter, which gives
employees as well as the clients a clear idea of a company's goals and vision. It also includes
the transfer of information with regard to memoranda, reports, directions, and scheduled
meetings in the chain of command.
A business plan, customer satisfaction survey, annual reports, employer's manual, review
meetings are all formal communication channels.
Informal Communication Channels
Within a formal working environment, there always exists an informal communication
network. The strict hierarchical web of communication cannot function efficiently on its own
and hence there exists a communication channel outside of this web. While this type of
communication channel may disrupt the chain of command, a good manager needs to find the
fine balance between the formal and informal communication channel.
An example of an informal communication channel is lunchtime at the organization's
cafeteria/canteen. Here, in a relaxed atmosphere, discussions among employees are
encouraged. Also managers walking around, adopting a hands-on approach to handling
employee queries is an example of an informal communication channel.
Quality circles, team work, different training programs are outside of the chain of command
and so, fall under the category of informal communication channels.
Unofficial Communication Channels
Good managers will recognize the fact that sometimes communication that takes place within
an organization is interpersonal. While minutes of a meeting may be a topic of discussion
among employees, sports, politics and TV shows also share the floor.
The unofficial communication channel in an organization is the organization's 'grapevine.' It
is through the grapevine that rumours circulate. Also those engaging in 'grapevine'
discussions often form groups, which translate into friendships outside of the organization.
While the grapevine may have positive implications, more often than not information
circulating in the grapevine is exaggerated and may cause unnecessary alarm to employees. A
good manager should be privy to information circulating in this unofficial communication
channel and should take positive measures to prevent the flow of false information.
An example of an unofficial communication channel is social gatherings among employees.
Five major forms of communication:
INTRAPERSONAL: Anytime you communicate with yourself, it is considered this type. It
can be a mental conversation with yourself, like congratulating yourself on a job well-done,
trying to decide what to wear to school in the morning, or thinking that you wished you had
studied more for a test that the teacher is handing out to you. It can also be things like to-do
lists, journals, assignment notebooks, reminders on calendars, etc.
INTERPERSONAL: This is communication between two people—just two people. It can
be like a conversation with your best friend, a text you send your mom, a meeting with you
and a teacher, etc.
SMALL GROUP: This is communication in a team or a group, where everyone has to
actively work with each other. Everyone is participating! Some examples would be: a family
conversing at dinner, hanging out with your friends, a class discussion, a football huddle, etc.
PUBLIC: This is best described as like giving a speech. BUT, don’t get confused. Just
because something happens IN PUBLIC does not mean it is public communication. This is
one person or a small group communicating, often in a one-way direction, to a LARGE
audience in one room. This would be things like giving a speech to the class, the cheerleaders
directing the student body in a cheer at a pep rally, actors presenting the One Act Play to an
audience, a pastor giving a sermon, a campaign speech at a rally, a concert at the Civic
Center, etc.
MASS: This is communication that is directed toward a very large audience who are not
always in the same room or are not always receiving the message at the same time. This
 would be things like the morning announcements, everyone watching a TV show, looking up
something on the internet, reading a book/newspaper/magazine. We all hear the
announcements in our separate rooms at AHS. I can read a book or magazine or look at a
website right now and then you can go home and read it later. Same with a TV show or a
movie. The idea is that the message reaches a MASS number of people in different places
and different times. And it CAN be electronic but it does not have to be. The way to tell if
something is mass communication is to think about how many people can get the message
and when and where they are. BUT BE CAREFUL—Talking on the phone with your friend
is electronic BUT NOT MASS because it is just you and your friend. Posting on Facebook
would be mass. See the difference?
Business Communication and its types

Business Communication is any communication used to promote a product, service, or

organization – with the objective of making sale. In business communication, message is
conveyed through various channels of communication including internet, print (publications),
radio, television, outdoor, and word of mouth.

In business, communication is considered core among business, interpersonal skills and

etiquette.

Types of Business Communication

There are two types of business communication in an organization:

1. Internal Communication
2. External Communication

1. Internal Communication

Communication within an organization is called “Internal Communication”. It includes all

communication within an organization. It may be informal, formal function, or department
providing communication in various forms to employees.

Effective internal communication is a vital mean of addressing organizational concerns. Good

communication may help to increase job satisfaction, safety, productivity, and profits and
decrease grievances and turnover.

Under Internal Business Communication types, there come:

§ Upward Communication
Upward communication is the flow of information from subordinates to superiors, or from
employees to management. Without upward communication, management works in a
vacuum, not knowing if the messages have been received properly, or if other problems exist
in the organization. By definition, communication is a two-way affair. Yet for effective two-
way organizational communication to occur, it must begin from the bottom.
 Upward Communication is a mean for the staff to:

§ Exchange information
§ Offer ideas
§ Express enthusiasm
§ Achieve job satisfaction
§ Provide feedback

Downward Communication
Information flowing from the top of the organizational management hierarchy and telling people
in the organization what is important (mission) and what is valued (policies). Downward
communication generally provides information – which allows a subordinate to do something.
For example, instructions on how to complete a task. Downward communication comes after
upward communications have been successfully established.

This type of communication is needed in an organization to:

§ Transmit vital information

§ Give instructions
§ Encourage 2-way discussion
§ Announce decisions
§ Seek cooperation
§ Provide motivation
§ Boost morale
§ Increase efficiency
§ Obtain feedback

Both Downward & Upward Communications are collectively called “Vertical

Communication”

Horizontal/Literal communication
Horizontal communication normally involves coordinating information, and allows people with
the same or similar rank in an organization to cooperate or collaborate. Communication among
employees at the same level is crucial for the accomplishment of the assigned work.

Horizontal Communication is essential for:

§ Solving problems
§ Accomplishing tasks
§ Improving teamwork
§ Building goodwill
§ Boosting efficiency

2. External Communication

Communication with people outside the company is called “external communication”.

Supervisors communicate with sources outside the organization, such as vendors and
customers.
 It leads to better:

§ Sales volume
§ Public credibility
§ Operational efficiency
§ Company profits

It should improve:

§ Overall performance
§ Public goodwill
§ Corporate image

Ultimately, it helps to achieve:

§ Organizational goals
§ Customer satisfaction

7Cs of Effective Communication

The ability to communicate effectively with others is considered a good quality of successful
people. So in order to compose an effective oral speech or written message, you just need to
understand psychology of your clients, your organization, and the community . The 7 C’s of
effective communication combined with principles would help you to attain your goal, follow
certain principles.
Communication skills are important that plays in professional life from understanding your
client to make a perfect problem solving approach. Different studies showed that it is an
important skill that helps to generate more leads.
1. Clarity
• Clarity is the soul of a message. It means the accurate transfer of ideas from the sender’s
side to the receiver. Every message should be conveyed in a clear manner. Clarity comes
through clear thinking. A good message shows the idea directly and clearly.
• A writer should not start the message unless he knows how (use of language) and what
(central idea) he wants to say. A message written in the simple and ordinary language is
always natural and appreciable.
• To achieve clarity, keep in mind the following points: – Use common and simple language.
– Construct effective sentences and short paragraphs. – Use concrete words instead of
abstract words. – Avoid unnecessary information.
2. Correctness
• Language experts say that writing is art but difficult. There is no shortcut to being a good
writer. It is learned through consistent practice and constant struggle. The message being
communicated must be correct. Correctness refers to correct grammar, punctuation, and
spelling. Though mistakes are never intentional yet they spoil the image.
• To achieve correctness, follow these guidelines: – Check the accuracy of facts and figures.–
Check mistakes in punctuation, grammar, and capitalization. – Check misspelled words. –
Use the right level of language.
3. Conciseness
• The beauty of diction lies in its conciseness. Conciseness means brief and complete. Be as
brief as possible. But it must not be so brief as to be discourteous.
• Conciseness is a pre-requisite to effective messages. A concise message saves time and
expense for both sender and receiver.
• To achieve conciseness, observe the following suggestions: – Remove the wordy
expressions. – Include only relevant material. – Avoid unnecessary repetition.
4. Courtesy
• Courtesy is the most important quality of the messenger. “Everyone gains where courtesy
reigns” is an old but wise saying. Courtesy means politeness. It is an attitude that shows
respect for others. It helps in building goodwill.
• It is not enough to use polite expressions like” thank you”, ”kindly”, “we appreciate”,
“please” etc but the whole letter must have a courteous tone.
• To achieve courtesy, keep in mind the following points: – Be sincere. – Use expressions
that show respect. – Be thoughtful and appreciative of the receiver’s point of view. – Avoid
humor. – Avoid discriminatory language i.e., race, color, gender, creed etc.
5. Concreteness
• Communicating concretely means being specific, meaningful and clear. Vague and general
messages result in no response. It helps the receiver to understand the exact idea. Concrete
use of available facts and figures adds to the authenticity of the message.
• To achieve concreteness, consider the following ways: – Use clear and image building
words. – Use specific facts and figures. – Use active voice than passive voice
6. Consideration
• Consideration is to put you in the place of the receiver. It means preparing every message
with the message receiver in mind. This mode of consideration is called “you attitude”.
• When you are truly considerate, you try to show sincere regard for his interests and benefits.
To be considerate, the following points should be kept in mind:
– See your material from your reader’s point of view.
– Focus on “you” instead of” we” e.g.,
– Be sure about the benefits of the receiver.
– Consider the needs and problems of the receiver.
- Use positive and optimistic
7. Completeness
• A message should be complete to bring the desired result. A complete message contains all
the facts required by the receiver. The receiver’s reaction to an incomplete message is often
unfavourable. An incomplete message shows negligence and carelessness of the writer.
• For completeness follow these guidelines: – Remember the five W’s (what, when, where,
why, who) and how. – Provide all the necessary information. – Answer all the questions
asked. – Include additional information, if desired.
IMPORTANCE AND ESSENTIALS OF BUSINESS REPORTS
Reports have an important place in the functioning of organizations. Reports are basic
management tools used in decision making. With the help of effective reports an organization
can improve its goodwill and public relations. The importance of business report can be
summarised as follows:
1) Conveyor of information: Reports serve as conveyors of information throughout the
organization. It is by means of reports that the management is able to establish channels of
communication through which ideas, opinions, suggestions, orders and commands flow in
various directions. Timely flow of information helps an organization to take decisions
promptly. Reports also provide necessary information to the shareholders, investors,
customers, creditors and the general public as regards to the affairs of an organization.
2) Help management to review and evaluate office operations: Reports help management to
review and evaluate all office operations continuously. They help in planning for future
operations in a purposive way. Reports help in coordinating the activities of different
departments. They also help managers to monitor and control the affairs of the firm in an
effective manner.
3) A tool for measuring performance: Reports are useful tools for measuring departmental
performance. The operational data from various departments are presented in a meaningful
form. This helps management to assess the performance of each and every department.
4) Reports help in making desirable changes: Changes in business environment pose a threat
and challenge to business firms. Reports are prepared to analyse the factors responsible for
the changes. This helps in bringing desirable changes in business policies.
5) Reports help in measuring the effectiveness of the organisation: Reports are prepared to
measure the effectiveness of departmental operations, employees and the management. This
is also helpful in measuring the overall effectiveness of the organization.
FEATURES OF REPORT
There are some common features which need to be understood clearly by all those interested
in using "reports" as effective communication devices. These are outlined below:
1) Accuracy: Information presented in reports should be accurate. Inaccurate information
may often land the managers in trouble. As far as possible, the report must be based on
accurate information. For example, in the case of the project report given in the previous
section, if the teams give inaccurate information about the place or availability of the
infrastructural facilities, the company may face much problem in future.
2) Simplicity: A report should be simple. This would help in arriving at decisions quickly and
easily. If the facts are presented in complex manner, the managers may not reach the correct
decision.
3) Completeness: The report should be complete in all respects. There should be no room for
ambiguity. For example in the above case, if report about any of the required information is
missing, managers will not be able to take a final decision.
4) Brevity: Executives do not find sufficient time to read lengthy reports. Therefore, the
reports should briefly reflect the essential point.
5) Appearance: The arrangement, organisation, format, layout and make-up of a report should
be pleasing and as far as possible, eye-catching.
6) Readability: Reports must be easy to read. They must avoid technical language as far as
possible. The writer must present the facts through elegant and grammatically correct
English.
7) Reliability: Reports should be reliable, and should not create an erroneous impression in
the minds of readers either due to oversight or neglect.
8) Economy: Report writing should not be a costly exercise. The most economical methods
and standard quality must be employed, while conveying the matter.
9) Timeliness: To be useful and purposive, reports should reach the readers well in time. Any
delay in submission of reports makes the preparation of reports a futile exercise.
10) Logical content: The content of the report must be presented in a logical manner. The
facts must be reported in an unbiased manner. Distinctive points must bear self explanatory
headings and sub-headings.

Format of a Business Report

A formal business report normally contains the following elements −

• Title Section − includes the Table of Contents and definitions of terms used.
Optional details like the writer’s name and date prepared on may be mentioned.
• Summary − an overview of all relevant information on major points, conclusions,
and recommendations. It’s a good practice to write this at the end to include all the
last minute modifications.
• Introduction − specifies the reason the report was written and the problem it
addresses; generally it is the first page of the report.
• Body − the main section of the report; it includes industry jargon. Information is
arranged in sections, in decreasing order of importance.
• Conclusion − this, along with Summary, is the most read section of the report, hence
the language should be simple and specific.
• Recommendations − actions to be followed in an increasing order of priority.
 • Appendices − technical details and industry facts to support your conclusions.

UNIT 3:
Meaning and purpose of Agenda
Agenda means things to be done. It is usually sent along with the notice of the meeting. It is a
plan of action to be followed and entails list of topics to be discussed in a meeting.
Sometimes the agenda items are prepared after the circulation of the notice in order to include
the member’s opinion. If the subject matter of the business meeting is secret, the meeting
agenda may not be circulated. Some definitions of agenda are as follows:

According to Rajendra pal and Korlahalli, “Agenda is document that outlines the contents
of a forth coming meeting.”

In retrospect, the agenda is the version of the meeting plan shared with meeting attendees. It
can be in reference to a new scheduled board meeting or continuation of previous meeting to
address unfinished business. A meeting agenda may be considered a list of items to discuss, a
sequence of planned activities, or both. The simplest agendas are formatted as a short bulleted
list.

More complicated agendas may include detailed topic descriptions, including the expected
outcomes for each item and reference material, such as reports and proposals for inclusive
review prior to the meeting. Formal agendas foster innovation and ensures effective use of
public resources across domestic and international community to improve the
agenda management process. It also include timing and presenter information for each
agenda item.

So, agenda is an issue or item of business prepared by the secretary and which are to be
discussed or transacted in a forthcoming meeting which could be a municipal meeting, annual
meeting, etc. depending on the type of business.

Features of Agenda
The features of agenda can be stated as follows:

• Generally, agenda and agenda items are sent along with the notice of the meeting.
• It is written at the end but before or after the signature of the convener of the meeting
• It is arranged according to the importance of the end, for example, a meeting for social
development will follow crucial steps based on development priorities.
• Controversial topics should be written at the end.
• The topics are determined by the board secretary with consulting the higher authority
(board chairs) or the convener of the meeting.
• It is written in brief but explicit manner.
Importance or Necessities of agenda
Agenda is the explicit topics to be discussed in a meeting the members. Meeting participants
cannot ignore the importance of an agenda. The necessity or importance’s of an agenda are as
follows:

• As it is circulated in advance, the members of the committee or meeting can take

preparation to discuss the items of business accurately.
• It helps to take an urgent action and decision.
• Since it has a set of order, it helps the chairperson to conduct the meeting smoothly.
• It can ensure covering all the items of business that will be discussed in a meeting.
• It helps to control the unnecessary talking in the meeting.
• It helps to write the minutes and resolution of the meeting for follow-up and review
processes.
• As it is served earlier, the members of the meeting can exchange their thought and ideas
informally before holding the meeting.

Circular letter
Circular letter is one of the oldest types of letters. This kind of letter originated in ancient
time when people felt the necessity of circulating any message to a large number of people at
a time in the same way.

Generally, the letter that is used to circulate any special message to a huge member of
audiences at the same time is known as circular letter. It is one of the cost-effective means of
circulating information or introducing new products to mass people. However, circular letters
are not only used in business, but also in social, political and personal affairs.

Prof. W. J. Weston said, “A circular letter is one which is meant to be read by a number of
correspondents. It is of the nature of an advertisement and is usually a business
announcement or an attempt to advance business.”

circular letter is a kind of written announcement that is distributed to a large number of

people to convey any commercial or non-commercial message at minimum time, costs and
efforts. Drafting circular letter is purely an art. It should be drafted in such a way that can
attract readers’ attention and can serve its purpose.

Importance or advantages of circular letter

Circular letter circulates information relating to a company, its products and services etc. to a
large number of people at a time. It plays an important role in the growth and development of
business. Its importance is briefly discussed below:

1. Easy method of conveying information: Circular letter is the most easy, simple and
effective way to convey any information to a huge number of people.
2. Achieving economy: Circular letter can be used for wide publicity of products. As a
result, organizations can save cost of sending letters to different parties separately and
can gain economy.
 3. Saving time: Circular letter transmits information to a large number of people at a
time. It does not require reaching each individual separately. Thus, it saves time.
4. Less effort: Circulating information to each individual separately is a time consuming
and laborious job. Circular letter helps to overcome this problem. Through circular
letter, we can communicate with large number of people at a minimum effort.
5. Creating market: Through circular letter, a company can inform potential customers
about its products and services. In this way, new market can be created.
6. Increasing consumer’s confidence: Convincing and attractive circular letter can
easily touch the reader’s heart and thus helps to enhance consumer’s confidence on
the company’s products.
7. Creating public consciousness: In circular letter, information like price, quality,
utility, place of availability, etc. are mentioned in detail that makes people more
conscious about the product.

Office Memo

Memorandum is popularly known as “memo”. The literal meaning of the word

memorandum is a note to assist the memory. Memos are the written internal
communication means for exchanging information relating to day-to-day functions within
the organizations.

According to Lesikar and pettit, “Memorandum is a form of letters written inside the
business”.

According to Stewart and Clark, “Memos are used to communicate with other
employees, regardless of where the employees may be located in the same organization.”

According to S. Taylor, “Memo is a written communication form one person to another (or a
group of people) within the same organization.”
So, memorandum or memos are internal short notes or letters in which information is
exchanged among business owners, superiors and subordinates or across the executive
departments of employees in the organizational structure.
Memos have been around since ancient times. They were first introduced during Roman
Empire. In modern era, they became more popular due to their usefulness. Today, there are
many types of memos available such as formal memos, informal memos, internal memos,
external memos etc.

Advantages of office memo

We know memorandum serves various purposes. it is a common means of business
communication within the organization. The main advantages of memos are discussed below:

1. Time-saving: We can see that many organizations use printed memo. As it is usually
printed, it takes a reasonable time to draft it.
2. Less formality: No formality is necessary in drafting a memo, usually include address,
salutation and complimentary, closing is omitted in it.
3. Maintains good relationship: It can help to maintain a good relationship among the boss
and subordinates because the bossing attitude is absent here.
4. Low cost: The cost of communication through a memo is less than those of others. The
cost factor of drafting memo formats are cheaper and cost-effective.
5. References: Memo is a written document. So, it can be used for future references. It
ensures careful consideration of the subject matter and gives a detailed and concise report.
6. Inform the decisions and actions: The main objective of memo is to inform the
decisions and actions. For this purpose, it should be written by a higher authority.
Example of this is paying careful attention to the attorney notes.
7. Request the decisions and actions: The objective of memo is to request the decisions
and actions. For this objective, it may be drafted by the sub-ordinate. Giving attention to
agent notes will give good info on the objectives of independent agencies.
8. Provide information: Another important objective of the memo is to provide
information form one level to another within the business. Movement of messages from
the agency counsel to agents is an example of this objective.
9. Remind someone of action: Memo is also written to remind someone of action if
required. It serves as additional guidance for reference purposes about past events.
10. Others: Issuing orders and instructions, providing responses, providing suggestions,
presenting informal report, solving problems, providing expense report, and providing
additional resources.

Disadvantages of office memo

There are few limitations or Disadvantages of memos, they are:

1. Limited application: It is not a widely used means of communication. Memorandum is

mainly used in business firms. It maintains communication only among the employees of
the same firm regardless of distance.
2. Time-consuming: It takes time to be sent to a distant branch or office.
3. Expensive: As usually a memo is a pre-printed form, it is expensive than other means.
Sometimes huge printed memos remain unused.
4. Lack of formality: It provides only informal communication. The memorandum format
does not support high level of formality.
5. Lack of explanation: Memo is written in short form. So the meaning of it may not be
clear to the reader.
6. Less important to the reader: As it is an informal means of communication, it can be
less important to the reader. This report type only cont
7. Not suitable for illiterate people: Office memo is one kind of written communication.
So, illiterate people are not able to read and understand it.

Guidelines for writing effective memos or drafting memos

The memo planning guidance is essential for writing an effective and detailed memorandum.
Absence of guidance makes the final document less presentable and can negate its usage.
Here are the planning guidance for writing effective memos:

• Summarize the conclusions in the introductory thesis paragraph

 • State the basis for conclusion in the introductory paragraph
• Begin each subsequent paragraph with a thesis statement
• Support the thesis statement in the body of the paragraph
• Be concise
• Know the audience
• Avoid jargon
• Stay objective
• Use active verbs
• Anticipate counterarguments
• Provide “road signs” as needed
• Cite the sources
• Number the pages
• End with a concluding paragraph

Sales Letter

Although the primary aim of sales letters or offers is publicity yet it is the most important
written form of business communication. It reaches out to a large number of people interested
in a particular product or service and turns them into buyers. Even if people are not interested
in the product, them the aim of this letter is to make them interested in it. Starting with the
assumption that the receiver may resist the offer, the sales letter has to be persuasive or
powerful enough to make recipient act. They are unsolicited letters, mostly written by
professional writers. The effectiveness of such letters depends on the writer’s ability to use
language suited to his purpose that is above all to influence the recipient – his thinking, taste
and behavior. This is the aim of persuasion. Sales letters are, therefore, persuasive or indirect
approach letters.

Sales letters are the best way for approaching to the prospective buyers indirectly. These
letters are an easy and effective way of securing business. No other type of letter influences
so many people or brings as big a return in terms of money as this letter.

Importance (Objectives) of Sales Letters

Sales letters are part of the publicity – cum – advertisement campaign for a product or
service. When compared to TV, Cinema, newspaper, magazines, handbills, direct marketing
and window displays which are the other forms of publicity and advertisements, sales letters
have the following advantages:

• Personal touch: Sales letter can add a personal touch to advertising which is not possible
in other forms of publicity and advertising. It also keeps the customers constantly in touch
with the company and its products and services.
• Direct communication: It can be sent directly to prospective customers.
• No competition: The messages in the sales letters do not have to compete with other
advertisements unlike TV and newspaper advertisements where ads of various
competitors are shown.
• Goodwill: It creates and maintain goodwill among the customer by offering quality
products and services.
• Convenience: Unlike TV and Cinema advertisements sales letters can be set aside and
read later at leisure.
• Cheaper: It is less costly as compared to other forms of advertisement.
• Easy assessment of effect: As they are sent to a definite number of persons who are
classified into demographic groups based on age, income, profession etc. their effect can
be accurately measured.
• Quick: Unlike sales representatives, sales letters get quick, direct access to the target
person.
• Wider Area: Sales letters that are posted can reach remote areas which are not possible
in case of modern means of advertising and promotion. It widens the market for existing
products without much cost.
• Mail order business: It is the main source of securing orders for a mail order business.
• Customer education: it educates the customer in selecting the right type of goods and
services.
• Reminder: Repeated appearance of a sales letter has the effect of a reminder. It helps
the customer to remember the product or the service of a firm whenever he is in need of
it.
• It functions as a Salesman: A sales letter educates persuade and convinced the customer
to buy a particular product or service wherever a salesman cannot visit the customers.

Unit 4:

Group Discussion is an important tool in the selection process. It is mostly used for selecting
candidates for management posts. Here, the candidates are divided into small groups. Each
group contains six to eight candidates. Each group is given a topic for discussion. They are
also given a time limit for discussing this topic. The topic may be a general or current topic.
For e.g. "Leaders are born, not made". Each participant has to give his or her views about this
topic. The selectors observe the full discussion. After the time limit is over, the best candidate
from the group is selected. The same process is followed for other groups.

Group discussion is mostly unstructured. That is, every single step is not planned in advance.
Each candidate is not given a time limit for speaking. Similarly, the order of speaking, that is,
who will speak first and who will speak last is not fixed in advance. The candidates have to
decide how to conduct the group discussion. The selectors see how the group takes shape,
and who contributes most to it. They also judge the knowledge of each candidate, time
management, leadership quality, behaviour, etc.

Purposes/Objectives of Group Discussion:

Group discussion actually detail the area of approach to a problem or topic. A fruitful group
discussion should include the following objectives:

1. Suggestions: Advice and ideas, together with suggestions, they form the core heart of a
group discussion. It is through these tools that a meaningful and practically implementable
solution can be reached. Intermingling of these suggestions give rise to a new ones, creating a
space for best possible output.

2. Wide Approach: Group discussion helps to provide wide approach to any matter under
consideration, as it include members from a large number of different sections of a particular
business organisation. The beauty of entire process is in the area of span it can give to a
problem’s redressal.

3. Decision Making: Group discussion should be able to justify itself as a tool for rational
evaluation of a problem and thereon reach to a suitable decisions, based on erstwhile
suggestions made by the members. It also makes it easier for the leader to able to take even
the toughest of decision with an ease, because by group discussion he can know what is
supported by other members of the organisation.

4. Exchange of Ideas: Group discussion should also be able to tap the working of every
mind, engaged in the process, by the exchange of ideas put forth.

5. Productive Activity: Group discussion is always supposed to be a productive activity in a

business concern. It always a method which helps to procure the best possible decision for a
concern.

Advantages of Group discussions: A group discussion has the following advantages:

1. More Rational Decision: The Group can produce more rational decisions because of deep
understanding and application of many minds in comparison to a single mind.

2. More Means: The group can pull together better resources. The joint resources of the
group would be superior to the resources of an individual.

3. Division of Labour: The group decision may lead to division of labour. People
specializing in different fields will contribute their expertise separately to achieve a better
goal. In group discussions, the process of sharing of views helps to eliminate errors of
judgement.

4. Commitment: Group discussions results in commitment as it gives a feeling of

involvement and acceptance of the decision.

5. Increase in Knowledge: Group discussion increases the knowledge and understanding of

the participants. They exchange ideas, views, opinions and discuss the same at length. There
is practically no chance of ambiguity.

6. Solution for Complex Problems: Modern organisations face sufficiently complex

problems. Their solution calls for group discussion wherein persons with different abilities
express their valued opinions.

7. Encouragement of Democratic and Innovative Thinking: All members enjoy full

freedom and opportunity to express their opinion in group discussion. As a result of it,
development of democratic and innovative thinking get encouraged.

Limitations of Group Discussions: A group discussion also suffers from certain limitations:

1. Delay: Group discussion take time to be arranged and to take decisions.

2. Conflicts: The members whose views are not accepted may feel offended. Personal
conflicts and rivalry may obstruct proper and timely decision.
Guidelines of Group Discussion

• First and foremost, besides communicating ideas fluently and effectively, the
candidate must be able to listen attentively. It is also important to encourage
participation from all members.

• Remember to keep the discussion on the subject, or to bring it back to the subject.

• Do not take the discussion on a tangent by adding irrelevant points.

• Do not harp on small points thereby obscuring the critical issues. In this connection,
you will have to deal tactfully with irrelevant contributions.

• Similarly, you must remember to control the over-talkative members. Do not allow
one or two members to monopolize the discussion.

• It would be useful to develop your ability to make original points that steer the
group into discussing other angles to the topic.

• You must focus your efforts on consistently making points that will enhance the
quality of the discussion.

• Avoid personal arguments.

• Similarly, avoid sub-grouping tendencies. Candidates lacking self-confidence, tend

to converse with other members instead of addressing the group directly. It would be
useful to draw out group-members’ views and experiences which may be relevant and
helpful. Hence, get each member to voice a range of opinions all different from your
own. Help to activate the thinking process in the group. Also remember to check on
the group’s assimilation of the subject matter.

• For effective leadership in group discussions conclude each argument at the right
time and in the right manner. You should be able to review the highlights of the
discussions that the group arrives at during the discussion.

Unit 5
Meaning and importance of Etiquette
No matter where you go, people expect you to behave in a certain way in society. There
could be slight variations of customs and traditions that you have to respect. However,
majority of these expectations will be common. For example, smiling is a universally
recognized signal of an amiable person. On the other hand, frowning and being rude while
interacting is considered impolite.
In “Business Etiquette” we will discuss what etiquettes, the business / corporate world
expects from their employees and what you should do to meet their expectations. It helps in
building a good, positive network of business people.
Business Etiquette is a set of social, professional and cultural sensibilities that a person is
expected to possess in order to be considered a well-informed business-person with proper
business acumen. Business Etiquette focuses primarily on being polite in your interactions
with people and paying them respect while dealing with them, the way you would expect
them to.
This politeness and respect is not limited to meetings held in person only. In fact, these
levels of mutual respect and the polite way of addressing people and dealing with them is
extended to business emails, telephonic conversations and business letters too.
Business Etiquette serves as an important tool to bridge gaps and develop a fast network of
business-people who have a positive impression of your inter-personal skills and cultural
sensitivity.
However, it should be kept in mind that Business Etiquette varies from place to place. A set
of etiquettes that may be held in high regard in one country might not necessarily be
observed closely in another country, and in fact, could be viewed as strange or rude at times.

• Business etiquette is important because it creates a professional, mutually respectful

atmosphere and improves communication, which helps an office serve as a productive
place. People feel better about their jobs when they feel respected, and that translates
into better customer relationships as well.
• In business, the relationships you build are critical. Establishing good rapport is
significant if you want to progress your professional future. The way to build positive
relationships in the business world is by exercising good etiquette, specifically by
exhibiting top-notch communication skills.
• In the business world, people with good etiquette are rewarded for their professional
and polite skills. Those who exemplify good business etiquette are proving that they
respect their position, job, coworkers, and take their performance seriously. As such,
these individuals win promotions and get ahead in their careers.
• When you treat everybody with respect, you strengthen your interpersonal
relationships. People find it easier to trust you because you value their opinions and
empathize with them.

• Good business etiquette helps you feel more confident because you know what to say
and when. Customers and clients will likely feel more secure because you’re poised
and exhibit professionalism.

• You’re better equipped to avoid misunderstanding and conflict because you separate
your emotions from your arguments. You show emotional maturity and look at
situations objectively.

Ethics is a subject of social science that is related with moral principles and social values.
'Business Ethics' can be termed as a study of proper business policies and practices
regarding potentially controversial issues, such as corporate governance, insider trading,
bribery, discrimination, corporate social responsibility, and fiduciary responsibilities.
Businesses must abide by some basic principles. It should provide quality goods and
services at reasonable prices to their consumers. It must also avoid adulteration,
misleading advertisements, and other unfair malpractices.

A business must also perform other duties such as distributing fair wages, providing good
working conditions, not exploiting the workers, encouraging competition, etc.
 Business Ethics–Definition There are many definitions of business ethics, but the ones
given by Andrew Crane and Raymond C. Baumhart are considered the most appropriate
ones. According to Crane, "Business ethics is the study of business situations, activities,
and decisions where issues of right and wrong are addressed." Baumhart defines, "The
ethics of business is the ethics of responsibility. The business man must promise that he
will not harm knowingly."

There are eight major features of business ethics:

1. Code of Conduct: Business ethics is actually a form of codes of conduct. It lets us know
what to do and what not to do. Businesses must follow this code of conduct.

2. Based on Moral and Social Values: Business ethics is a subject that is based on moral and
social values. It offers some moral and social principles (rules) for conducting a business.

3. Protection to Social Groups: Business ethics protect various social groups including
consumers, employees, small businesspersons, government, shareholders, creditors, etc.

4. Offers a Basic Framework: Business ethics is the basic framework for doing business
properly. It constructs the social, cultural, legal, economic, and other limits in which a
business must operate.

5. Voluntary: Business ethics is meant to be voluntary. It should be self-practiced and must

not be enforced by law.

6. Requires Education & Guidance: Businessmen should get proper education and guidance
about business ethics. Trade Associations and Chambers of Commerce should be active
enough in this matter.

7. Relative Term: Business ethics is a relative term. It changes from one business to another
and from one country to another.

8. New Concept: Business ethics is a relatively newer concept. Developed countries have
more exposure to business ethics, while poor and developing countries are relatively
backward in applying the principles of business ethics.

Principles of Business Ethics The principles of business ethics are related to social groups
that comprise of consumers, employees, investors, and the local community. The
important rules or principles of business ethics are as follows:

• Avoid Exploitation of Consumers: Do not cheat and exploit consumer with measures
such as artificial price rise and adulteration.

• Avoid Profiteering: Unscrupulous business activities such as hoarding, blackmarketing,

selling banned or harmful goods to earn exorbitant profits must be avoided.

• Encourage Healthy Competition: A healthy competitive atmosphere that offers certain

benefits to the consumers must be encouraged.
• Ensure Accuracy: Accuracy in weighing, packaging and quality of supplying goods to
the consumers has to be followed.

• Pay Taxes Regularly: Taxes and other duties to the government must be honestly and
regularly paid.

• Get the Accounts Audited: Proper business records, accounts must be managed. All
authorized persons and authorities should have access to these details.

• Fair Treatment to Employees: Fair wages or salaries, facilities and incentives must be
provided to the employees.

• Keep the Investors Informed: The shareholders and investors must know about the
financial and other important decisions of the company.

• Avoid Injustice and Discrimination: Avoid all types of injustice and partiality to
employees. Discrimination based on gender, race, religion, language, nationality, etc.
should be avoided.

• No Bribe and Corruption: Do not give expensive gifts, commissions and payoffs to
people having influence.

• Discourage Secret Agreement: Making secret agreements with other business people to
influence production, distribution, pricing etc. are unethical. Intentions of Business: Use
permitted legal and sacred means to do business. Avoid Illegal, unscrupulous and evil
means.

Follow Woodrow Wilson's rules: There are four important principles of business ethics.
These four rules are as follows:

• Rule of publicity: According to this principle, the business must tell the people clearly,
what it tends to do.

• Rule of equivalent price: The customer should get proper value for their money. Below
standard, outdated and inferior goods should not be sold at high prices.

• Rule of conscience in business: The businesspersons must have conscience while doing
business, i.e. a morale sense of judging what is right and what is wrong.

• Rule of spirit of service: The business must give importance to the service motive.