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GUFFEY & LOEWY

Business
Communication
Process & Product
9th Edition

Mary Ellen Guffey


Professor Emerita of Business
Los Angeles Pierce College

Dana Loewy
Business Communication Program
California State University, Fullerton

Australia • Brazil • Mexico • Singapore • United Kingdom • United States

Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
Business Communication: Process & © 2018, 2015 Cengage Learning®
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Business Communication:
Process & Product 9e
Dr. Mary Ellen Guffey Dr. Dana Loewy
Emerita Professor of Business Business Communication Program
Los Angeles Pierce College California State University, Fullerton
m.e.guffey@cox.net dloewy@fullerton.edu

Dear Business Communication Student:

The Ninth Edition of Business Communication: Process &


Product prepares you for a career in a complex mobile, social,
and global workplace. To help you successfully navigate this vast
networked environment, we have substantially revised our award-

Photographer: Barbara D’Allessandro


winning book. You will learn how social media networks and mobile
technology function in the workplace and how you can strengthen
your professional communication and critical thinking skills.
All of the features that have made this award-winning textbook
so successful for nearly three decades have been updated in this
edition. In addition to solid instruction in writing skills, which
employers continue to demand, the Ninth Edition brings you
numerous learning resources, a few of which are highlighted here:
Dana Loewy and Mary Ellen Guffey
▪ MindTap. This multimedia learning experience provides
chapter quizzes, downloadable documents to revise, flashcards, and unparalleled resources to achieve success
in the course.
▪ “How-To” videos. Helping you develop expert writing techniques, chapter how-to videos explain and
illustrate many Ninth Edition concepts and model documents including bad-news, claim, adjustment,
persuasive, and sales messages. These chapter-based videos build skills and develop confidence for both
face-to-face and remote learners.
▪ Integrated digital technologies. The professional use of social media networks and mobile technology
requires that you know best practices. This edition provides the latest advice to guide you in using these
digital technologies safely and effectively in the workplace. You’ll find best practices for texting, instant
messaging, blogging, collaborating with wikis, and networking with social media in business today.
▪ Latest trends in job searching. Chapter 15 presents the most current trends, technologies, and practices
affecting the job search, résumés, and cover letters in this digital age. You will learn how to build a personal
brand, how to network, and how to write customized résumés plus create an effective LinkedIn profile.
▪ Hottest trends in job interviewing. Chapter 16 provides countless tips on how to interview successfully in
today’s highly competitive job market, including one-way and two-way video interviewing.
▪ Etiquette IQ. New communication platforms and casual workplace environments have blurred the lines of
appropriateness, leaving workers wondering how to behave on the job. This edition delivers up-to-date guidance
on acceptable workplace attire, professional behavior, and business etiquette for today’s mobile and social work-
place. Each chapter also provides a “Test Your Etiquette IQ” quiz with authentic questions and answers.

We wish you well in your course! As always, we welcome your comments and suggestions as you use the No. 1
business communication book in this country and abroad.
Cordially,

Mary Ellen Guffey and Dana Loewy

Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
BUSINESS COMMUNICATION: PROCESS & PRODUCT, 9E
This book and this course may well be the most important in your entire college
curriculum!

Why? This book and your course equip you with the skills you will most need in today’s
fast-paced information- and data-driven workplace.

MEETING EMPLOYER EXPECTATIONS


Survey after survey reveals that employers are seeking new hires with these key skills:
• Written and oral communication skills
• Critical thinking and analytical reasoning
• Ethical decision making
• Teamwork skills
• Professionalism

Figure 2.13 The Six Dimensions of Professional Behavior

Promptness Dining etiquette


Giving and accepting
criticism graciously Good hygiene
and grooming
Apologizing for errors

Sincerity Attractive
business attire

Courtesy Appearance
Helpfulness Respect Appeal Ability to
compromise
Showing up Collegiality
prepared Tolerance
Sharing Fair treatment
Tact
of others
Delivering high-
quality work Reliability Honesty Self-control
Diligence Ethics

Dependability Truthfulness

Honoring commitments Respecting others


and keeping promises
Fair competition
Consistent
performance Empathy

• Be selective in sharing personal information. Avoid talking about health concerns,


personal relationships, or finances in the office.

Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
Don’t put people down. If you have a reputation for criticizing people, your coworkers
BUSINESS COMMUNICATION: PROCESS & PRODUCT, 9E
No other college course gives you training in all of these skills at once!
Business Communication: Process and Product, 9e, covers the following topics you
will find indispensable in the digital-age workplace:
• Expert writing techniques geared to developing your writing skills plus
interactive Documents for Analysis, authentic model documents, and
engaging activities in which you apply your skills
• Presentation skills featuring contemporary examples including coverage
of smartphone best practices to prepare you for the realities of workplace
communication and technology
• Critical thinking questions and activities in every chapter to stimulate and
develop skills
• Ethics Checks in addition to guidance and tools provided through discussion
questions and ethical dilemma scenarios
• Teamwork skills with a heavy emphasis on professionalism and etiquette in
the workplace so that you will know how to meet employer expectations
• Two employment chapters that present the latest trends in job searching,
interviewing, and résumé writing, along with current, effective résumé
models, tips for mobile devices and apps, and LinkedIn advice and
illustrations
• Test Your Etiquette IQ, a recurring feature in each chapter, designed to shine
a light on often blurry ideas about appropriateness and professionalism in
the workplace.

PREMIUM ONLINE RESOURCES


• MindTap, Your Personalized, Fully Online Digital Learning Platform.
This comprehensive learning platform guides you through readings,
multimedia tools, and chapter-specific activities that increase learner
involvement and produce significant learning outcomes. By being
interactive, MindTap makes learning enjoyable and playful. You can deepen
your understanding of business communication concepts at your own pace.
• Aplia Homework. Aplia helps you comprehend and remember chapter
concepts in an engaging interactive format. You know immediately how well
you are doing with immediate feedback on each problem set. You may even
be able to repeat exercises to improve your score.
• Grammar Review. Grammar review exercises provide you with engaging
online practice, covering key grammar concepts with interactive exercises
that you can finish in your own time. Your unique needs are addressed
through diagnostic assessments, pinpointing your areas of strength and
potential remediation needs. A large and randomized pool of questions
provides multiple opportunities to master each concept.

Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
BUSINESS COMMUNICATION: PROCESS & PRODUCT, 9E
Even in more traditional offices, employees work in open-plan spaces with flexible
workstations, shared conference rooms, and boomerang-shaped desks that save space and
discourage territorial behavior while encouraging casual interactions as well as spontaneous
collaborations.
• How-To Videos. Appealing to visual learners, this edition provides about 32 short vid-
eos that explain and illustrate many Ninth Edition concepts and model documents in-
Information Flow
cluding positive, andclaim
bad-news, Media Choices
adjustment,
LEARNING
persuasive, and sales messages.
OUTCOMEThese 4
in Today’s Workplace
videos are especially helpful to distance learners who are not able to benefit from
in-class lectures. Examine critically the
internal and external
You may want to connect with friends and family for a specific reason or just for fun.
• Study Tools
However, businesspeople almost always communicate strategically—that is, purposefully,
flow of communication
in organizations through
hoping to achieve
◆ PaowerPoint
particular outcome.
Lectures. Business
Ourcommunication functions canslides
totally new PowerPoint be summa-
for the Ninth Edition re-
formal and informal
rized in three simple
viewcategories:
chapter(a)concepts
to inform,and
(b) tohighlight
persuade, and/or (c) to promote
important points goodwill.
with contemporary, colorfulthe
channels, explain
Most business messages
images,have
andone of these
just enough functions as their purpose. Informing or sharing
animation. importance of effective
information is perhaps the most common communication function in all organizations
media choices,
you to and
today. On the ◆ 
jobInteractive
you will have chapter
a dizzying quizzes at the
array of media to Student Companion
help you share Website
information and enable test
your knowledge of concepts with immediate feedback. understand how to
stay connected both internally and externally. You will need to know which medium is most
overcome typical
suitable to accomplish your goal
◆ Flashcards. Youandcanbe able
study to with
distinguish between
existing formal and
flashcards and informal
make your barriers
own. to organizational
channels.
communication.
SOCIAL MEDIA NETWORKS AND MOBILE TECHNOLOGY
The Networked
Trusted authorsWorkplace inand
Mary Ellen Guffey a Dana Loewy understand social and mobile! The
Hyperconnected World use of social media and communication technology in a
authors address workplace
Social mediachapter solely
and other dedicated
information to bestcoupled
technology practices
withon thehierarchies
flatter job. Because
have these
greatlyskills are fundamental
in the contemporary world of work, social media and communication
changed the way people communicate internally and externally at work. One major shift is away technology are
integrated in each chapter.
from one-sided, slow forms of communication such as hard-copy memos and letters to inter-
active, instant, less paper-based communication. Speeding up the flow of communication in
Every
organizations chapter
are e-mail, instantreflects
messagingthe
(IM),pervasive influence
texting, blogging, of communication
and interacting with social technology on
business writing. This state-of-the-art coverage makes it
media such as Facebook, Twitter, and LinkedIn. Figure 1.8 shows a side-by-side comparison clear that writing is more
important than ever in the digital world. Careers are made or
between the traditional one-directional business communication model and today’s hypercon- thwarted based on one’s
online digital persona.
nected, many-to-many social media communication model.

Figure 1.8 Traditional vs. Social Media Communication Between Businesses and
Customers

Customers Customers

Traditional communication is
Social media
bidirectional/ social

fleeting and opaque,


support/service

communication is
marketing / PR

one-directional
persistent and
from company to
transparent,
customer and
bidirectional,
customer to company,
many-to-many
one-to-many or
many-to-one

TV, phone, mail, etc. Twitter, Facebook, etc.


Traditional Channels Social Channels
Businesses Businesses

Chapter 1 Business Communication in the Digital Age 19

Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
BUSINESS COMMUNICATION: PROCESS & PRODUCT, 9E
• New digital model documents throughout illustrate how social media
networks are shaping today’s communication and will help you understand
professional social media applications.
• New activities, identified with the Social Media and Communication
Technology icon, reflect the preeminence of writing in the digital workplace
and prompt you to develop your professional social networking skills.

SOCIAL NETWORKS VS. OTHER U.S. WORKERS:


COMPARING ATTITUDES TOWARDS QUESTIONABLE BEHAVIOR

Active Social Other U.S.


Do you feel it is acceptable to…?
Networkers Workers

“Friend” a client/customer on a social network 59% 28%

Blog or tweet negatively about your company or colleagues 42% 6%

Buy personal items with your company credit card as long as you
42% 8%
pay it back

Do a little less work to compensate for cuts in benefits or pay 51% 10%

Keep a copy of confidential work documents in case you need


50% 15%
them in your next job

Take a copy of work software home and use it on your personal


46% 7%
computer

Upload vacation pictures to the company network or server so


you can share them with co-workers 50% 17%

Use social networking to find out what my company’s competitors


54% 30%
are doing

Source: National Business Ethics Survey, Social Media Week.105

1.11 Ethical Dilemmas: Applying Tools for YOUR TASK Study the seven dilemmas appearing on page
Doing the Right Thing (L.O. 5) 28. Select four of them and apply the tools for doing the
right thing in Figure 1.15 on page 31 choosing an appro-
priate action. In a memo to your instructor or in a team
Ethics Team discussion, explain the action you would take for each
dilemma. Analyze your response to each question (Is the
As a business communicator, you may face various ethical action you are considering legal? How would you see the
dilemmas in your career. Many factors can determine your problem if you were on the opposite side? and so forth).
choice of an action to take.

Test Your Etiquette IQ


New communication platforms and casual workplace environments have blurred the
lines of appropriateness, leaving workers wondering how to navigate uncharted waters.
Indicate whether the following statements are true or false. Then see if you agree with the
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
responses on p. R-1.
BUSINESS COMMUNICATION: PROCESS & PRODUCT, 9E
Opening scenarios in each chapter illustrate social media and technology use, teamwork,
meetings, persuasion, and more by companies that you know and interact with, such
as Starbucks, Lyft, Walmart, Taco Bell, Sony, Royal Caribbean, olloclip, Pew Research,
and JetBlue.

Nordstrom: A Fabulous

Yeamake/Shutterstock.com
Shopping Experience Goes
Social
Nordstrom’s customer service is legendary. Like no other,
the upscale fashion retailer empowers its employees to
Zooming In
make their own decisions to best serve customers. Consider
the Anchorage location once accepting returned tires that the retailer doesn’t even sell. Another Critical Thinking
true story relates that an employee raced to deliver a scatterbrained customer’s forgotten baggage
to the airport prior to her departure. Both anecdotes exemplify the century-old company’s motto: to
• After reading this
case study, can you
provide a fabulous customer experience by empowering customers and the employees who serve them. put into perspective
But Nordstrom’s fabled devotion to customer service extends strategically into the virtual world to the suggestion “have
meet customers where they are. The retailer has invested heavily in technology; for example, to inte- fun and be yourself”?
grate its inventory management system with its website and the Nordstrom app—always with the clear What exactly does this
purpose to enhance the customer experience. As a result, the company’s online and offline worlds are invitation mean?
seamlessly linked, and customers can find what they want in one place. Salespeople can track customer
requests and needs online. This persistent effort to integrate digital capabilities has paid off. Nordstrom’s • Why does Nordstrom
revenue has grown by more than 50 percent in the last five years.1 Its shares have jumped 120 percent.2 allow only certain
employees to connect
A strong social media engagement is key to Nordstrom’s strategy to provide superb service and to
online with customers
drive traffic to its e-commerce site. As one of America’s most connected companies,3 it relies on crowd-
and other members of the
sourcing to learn which items to stock, and it responds rapidly to queries, in Spanish when needed. At
public?
currently 3.2 million likes, Nordstrom is a strong presence on Facebook. Pinterest, the popular online
bulletin board, is a particular success story for early-adopter Nordstrom, which currently has some 4.4 • Why do social media
million followers.4 guidelines emphasize
With such public engagement, it’s not surprising that Nordstrom has clearly defined social media ethical behavior and
use guidelines. Approved employees may connect with customers during working hours and even after ethical communication?
hours, if allowed. They are admonished to use good judgment and abide by all corporate policies. They
are told to be respectful, responsible, and ethical. Furthermore, Nordstrom’s social media policy forbids
the sharing of confidential corporate information as well as employees’ and customers’ private and per-
sonal information. Conflicts of interest are to be avoided, and compensated endorsements must be dis-
closed. The policy ends with this cheerful invitation: “Above all, remember to have fun and be yourself!”5
Nordstrom’s digital strategy is making the company highly competitive. You will learn more about
Nordstrom and be asked to complete a relevant task at the end of this chapter.

Communicating in the Digital World LEARNING


OUTCOME 1
What kind of workplace will you enter when you graduate, and which skills will you need to be Explain how
successful in it? Expect a fast-paced, competitive, and highly connected digital environment. communication skills
Communication technology provides unmatched mobility and connects individuals anytime fuel career success, and
and anywhere in the world. Today’s communicators interact using multiple electronic devices understand why writing
and access information stored in remote locations, in the cloud. skills are vital in a digital,
This mobility and instant access explain why increasing numbers of workers must be avail- mobile, and social-media-
able practically around the clock and respond quickly. Nordstrom and other technology-savvy driven workplace.
businesses have recognized the power of social media networks and seek to engage their
customers and other stakeholders where they meet online. Communication no longer flows one
way; rather, electronic media have empowered the public to participate and be heard.
In this increasingly complex, networked, and mobile environment, communication skills
matter more than ever.6 Such skills are particularly significant when competition is keen. Job
candidates with exceptional communication skills immediately stand out. In this chapter you
will learn about communication skills in the digital era and about the contemporary world
of work. Later you will study tools to help you negotiate ethical minefields and do the right
thing. Each section covers the latest information about communicating in business while also
providing tips to help you function effectively and ethically in today’s fast-paced, informa-
tion-driven workplace.

Chapter 1 Business Communication in the Digital Age 3

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BK-CHE-GUFFEY_BCPP_9E-160013-Chp01.indd 3 10/12/16 5:07 PM


Brief Contents
Unit 1 Communication Foundations 1
1 Business Communication in the Digital Age 2
2 Professionalism: Team, Meeting, Listening, Nonverbal, and Etiquette Skills 42
3 Intercultural Communication 84
Unit 2 The Writing Process in the Digital Era 125
4 Planning Business Messages 126
5 Organizing and Drafting Business Messages 158
6 Revising Business Messages 186
Unit 3 Workplace Communication 213
7 Short Workplace Messages and Digital Media 214
8 Positive Messages 252
9 Negative Messages 294
10 Persuasive and Sales Messages 338
Unit 4 Reports, Proposals, and Presentations 387
11 Reporting in the Digital Age Workplace 388
12 Informal Business Reports 436
13 Proposals, Business Plans, and Formal Business Reports 482
14 Business Presentations 520
Unit 5 Employment Communication 563
15 The Job Search, Résumés, and Cover Letters in the Digital Age 564
16 Interviewing and Following Up 612
Appendixes
A Document Format Guide A-1
B   Documentation Formats B-1
C   Correction Symbols and Proofreading Marks C-1
D    Grammar and Mechanics Guide D-1
End Matter
Key to Grammar and Mechanics Key-1
Etiquette IQ Responses R-1
Glossary (Available online only at www.cengagebrain.com)
Index I-1

Brief Contents ix

Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
Contents Zooming In: Nordstrom: A Fabulous Shopping
UNIT Experience Goes Social 3

1 Communication
Foundations
Communicating in the Digital World 3
The Digital Revolution and You: Tools for Success in the
21st-Century Workplace 6
How Your Education Drives Your Income 10
Trends and Challenges in the Information
Chapter 1 Age Workplace 10
Business Communication Information Flow and Media Choices in Today’s
Workplace 19
in the Digital Age 2 Ethics in the Workplace Needed More Than Ever 26
Zooming In: Your Turn: Applying Your Skills at
Nordstrom 31
Summary of Learning Outcomes 32
Critical Thinking 33
Activities 33
AjFile/Shutterstock.com

Test Your Etiquette IQ 37


Chat About It 38
Grammar and Mechanics 38
References 39

Chapter 2 Zooming In: Lyft Epitomizes the Sharing Economy and


Teamwork 43
Professionalism: Adding Value to Professional Teams 43
Checklist: Developing Team Effectiveness 50
Team, Meeting, Listening, Planning and Participating in Face-to-Face and
Virtual Meetings 51
Nonverbal, and Etiquette Checklist: Planning and Participating in Productive
Skills 42 Meetings 58
Listening in the Workplace 59
Checklist: Improving Listening 64
Communicating Nonverbally 64
Checklist: Building Strong Nonverbal Communication
Skills in the Workplace 68
Developing Professionalism and Business Etiquette Skills
at the Office and Online 69
Charlotte Purdy/Shutterstock.com

Zooming In: Your Turn: Applying Your Skills at Lyft 72


Summary of Learning Outcomes 72
Critical Thinking 74
Activities 74
Test Your Etiquette IQ 79

Contents xi

Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
Chat About It 79
Grammar and Mechanics 79
References 80

Chapter 3 Zooming In: Intercultural and Ethics Challenges for the


World’s Largest Retailer 85
Intercultural The Growing Importance of Intercultural
Communication 85
Communication 84 Culture and Communication 90
Becoming Interculturally Proficient 96
Checklist: Achieving Intercultural Proficiency 104
Culture and Ethical Business Practices 104
Workforce Diversity: Benefits and Challenges 108
Zooming In: Your Turn: Applying Your Skills at
Walmart 111
Summary of Learning Outcomes 112
Critical Thinking 113
Dan Baciu/Shutterstock.com

Activities 114
Test Your Etiquette IQ 119
Chat About It 119
Grammar and Mechanics 120
References 120

Zooming In: TOMS Shoes Integrates For-Profit


UNIT Entrepreneurship With Bleeding-Heart

2 The Writing
Process in the
Philanthropy 127
Understanding the Communication Process 127
Using the 3-x-3 Writing Process as a Guide 132
Analyzing and Anticipating the Audience 135
Digital Era Using Expert Writing Techniques to Adapt to Your
Audience 138
Checklist: Adapting a Message to Its Audience 146
Chapter 4 Sharing the Writing in Teams 146
Planning Business Zooming In: Your Turn: Applying Your Skills at
TOMS 150
Messages 126 Summary of Learning Outcomes 150
Critical Thinking 151
Activities 152
Test Your Etiquette IQ 155
Chat About It 156
racorn/Shutterstock.com

Grammar and Mechanics 156


References 157

xii Contents

Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
Chapter 5 Zooming In: MyEvent.com Moves From Weddings to
Fundraising and Crowdsourcing 159
Organizing and Drafting Beginning With Research 159
Generating Ideas and Organizing Information 161
Business Messages 158 Composing the First Draft With Effective
Sentences 166
Developing Business Writing Techniques 169
Checklist: Drafting Effective Sentences 173
Building Well-Organized Paragraphs 174
Darren Baker/Shutterstock.com

Checklist: Preparing Meaningful Paragraphs 177


Zooming In: Your Turn: Applying Your Skills at
MyEvent.com 177
Summary of Learning Outcomes 178
Critical Thinking 179
Writing Improvement Exercises 180
Activities 183
Test Your Etiquette IQ 184
Chat About It 184
Grammar and Mechanics 185
References 185

Chapter 6 Zooming In: Taco Bell Seeks to Shatter Sea of


Sameness 187
Revising Business Stopping to Revise: Applying Phase 3 of the
Writing Process 187
Messages 186 Polishing Your Messages by Revising for
Conciseness 188
Improving Message Clarity 193
Monkey Business Images/Shutterstock.com

Applying Document Design to Enhance


Readability 196
Proofreading to Catch Errors 199
Evaluating the Effectiveness of Your Message 202
Checklist: Editing, Proofreading, and Evaluating 203
Zooming In: Your Turn: Applying Your Skills at Taco
Bell 203
Summary of Learning Outcomes 205
Critical Thinking 206
Writing Improvement Exercises 206
Activities 208
Test Your Etiquette IQ 211
Chat About It 211
Grammar and Mechanics 211
References 212

Contents     xiii

Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
Zooming In: Sony Hack Signals the End of Privacy 215
UNIT Writing Digital Age E-Mail Messages and Memos 215

3 Workplace
Communication
Checklist: Professional E-Mail and Memos 222
Workplace Messaging and Texting 222
Making Podcasts and Wikis Work for Business 228
Blogging for Business 231
Social Networking for Business 236
Checklist: Using Digital Media Like a Pro 239
Zooming In: Your Turn: Applying Your
Chapter 7 Skills at Sony 239
Summary of Learning Outcomes 240
Short Workplace Messages Critical Thinking 241
Activities 242
and Digital Media 214 Test Your Etiquette IQ 248
Chat About It 248
Grammar and Mechanics 248
References 249
Bolyuk Rostyslav/Shutterstock.com

Chapter 8 Zooming In: JetBlue: Speedy Customer Service


with Humor 253
Positive Messages 252 Neutral and Positive Messages: The Writing
Process 253
Routine Request, Response, and Instruction
Messages 257
Checklist: Writing Direct Requests and
Responses 260
Direct Claims and Complaints 264
Adjustment Messages 268
Checklist: Direct Claim, Complaint, and Adjustment
Stuart Jenner/Shutterstock.com

Messages 273
Goodwill Messages 274
Checklist: Goodwill Messages 277
Zooming In: Your Turn: Applying Your Skills at
JetBlue 278
Summary of Learning Outcomes 279
Critical Thinking 280
Writing Improvement Exercises 281
xiv Contents

Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
Activities 282
Test Your Etiquette IQ 290
Chat About It 290
Grammar and Mechanics 290
References 291

Chapter 9 Zooming In: Crises Rock the Cruise Industry and Rattle
Cruise Passengers 295
Negative Messages 294 Communicating Negative News Effectively 295
Analyzing Negative-News Strategies 299
Composing Effective Negative Messages 303
Refusing Typical Requests and Claims 309
Managing Bad News Within Organizations 319
Checklist: Conveying Negative News 324
Zooming In: Your Turn: Applying Your Skills at Royal
goodluz/Shutterstock.com

Caribbean 324
Summary of Learning Outcomes 325
Critical Thinking 326
Writing Improvement Exercises 327
Activities 328
Test Your Etiquette IQ 334
Chat About It 335
Grammar and Mechanics 335
References 336

Chapter 10 Zooming In: ōlloclip: Smartphone Lenses That Sell


Themselves 339
Persuasive and Sales Persuading Effectively and Ethically in the
Contemporary Workplace 340
Messages 338 Blending Four Major Elements in Successful Persuasive
Messages 346
Writing Persuasive Requests, Making Claims, and
Delivering Complaints 350
Checklist: Using the AIDA Strategy to Request Actions,
Make Claims, and Deliver Complaints 353
Phovoir/Shutterstock.com

Writing Persuasive Messages in Digital Age


Organizations 353
Creating Effective Sales Messages in Print and
Online 357
Developing Persuasive Press Releases 366
Checklist: Preparing Persuasive Direct-Mail and
E-Mail Sales Messages 367
Zooming In: Your Turn: Applying Your Skills at
ōlloclip 369

Contents xv

Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
Summary of Learning Outcomes 369
Critical Thinking 371
Activities 372
Test Your Etiquette IQ 382
Chat About It 382
Grammar and Mechanics 382
References 383

Zooming In: Research for the Public Good at Pew 389


UNIT Reporting in the Digital Age Workplace 389

4 Reports,
Proposals, and
Applying the 3-x-3 Writing Process to Contemporary
Reports 397
Identifying Secondary Sources and Conducting Primary
Research 402
Presentations Documenting Information 412
Creating Effective Graphics 418
Zooming In: Your Turn: Applying Your Skills at
Chapter 11 Pew 424
Reporting in the Digital Summary of Learning Outcomes 425
Critical Thinking 426
Age Workplace 388 Activities 427
Test Your Etiquette IQ 432
Chat About It 433
Grammar and Mechanics 433
Minerva Studio/Shutterstock.com

References 434

Chapter 12 Zooming In: Starbucks: Innovate or Die! The Global


Chain That Wants to Remain Local 437
Informal Business Analyzing Digital Age Data 437
Drawing Conclusions and Making
Reports 436 Recommendations 443
Organizing Data 446
Writing Short Informational Reports 452
Checklist: Writing Informational Reports 458
leungchopan/Shutterstock.com

Preparing Short Analytical Reports 459


Checklist: Writing Direct Requests and Responses 467
Zooming In: Your Turn: Applying Your Skills at Starbucks 468
Summary of Learning Outcomes 468
Critical Thinking 470
Activities 470
xvi Contents

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Self-Contained Report Activities 475
Test Your Etiquette IQ 480
Grammar and Mechanics 480
References 481

Chapter 13 Zooming In: SpaceX Soars on the Wings of its


Proposals 483
Proposals, Business Plans, Writing Informal Proposals 483
Preparing Formal Proposals 488
and Formal Business Checklist: Writing Proposals 490
Creating Effective Business Plans 490
Reports 482 Writing Formal Business Reports 493
Body and Back Matter Components of Formal Business
Reports 496
Final Writing Tips 497
Checklist: Preparing Formal Business Reports 508
Milles Studio/Shutterstock.com

Zooming In: Your Turn: Applying Your Skills at SpaceX 509


Summary of Learning Outcomes 510
Critical Thinking 511
Activities 512
Test Your Etiquette IQ 517
Chat About It 517
Grammar and Mechanics 518
References 518

Chapter 14 Zooming In: Jean-luc Doumont: Engineering Effective


Presenting Skills Worldwide 521
Business Creating Effective Business Presentations 521
Connecting With Audiences by Organizing Content and
Presentations 520 Using Visual Aids 525
Preparing Engaging Multimedia Presentations 534
Polishing Your Delivery and Following Up 539
Checklist: Preparing and Organizing Oral
Presentations 544
Rawpixel.com/Shutterstock.com

Developing Intercultural and Team Presentations 545


Improving Speaking Skills for Effective Phone Calls 549
Zooming In: Your Turn: Applying Your Skills 552
Summary of Learning Outcomes 553
Critical Thinking 555
Activities 555
Test Your Etiquette IQ 560
Chat About It 560
Grammar and Mechanics 560
References 561

Contents   xvii

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Zooming In: Graduating From Classroom to
UNIT Career 565

5 Employment
Communication
Job Searching in the Digital Age 565
Developing a Job-Search Strategy Focused on the
Open Job Market 569
Unlocking the Hidden Job Market With
Networking 572
Customizing Your Résumé 576
Enhancing Your Job Search With
Chapter 15 Today’s Digital Tools 590
Checklist: Creating and Submitting a Customized
The Job Search, Résumés, Résumé 593
Cover Messages–Do They Still Matter? 594
and Cover Letters in the Creating a Customized Cover Message 595
Zooming In: Your Turn: Applying Your Skills With
Digital Age 564 Heather Huhman 601
Summary of Learning Outcomes 602
Critical Thinking 604
Activities 604
Test Your Etiquette IQ 607
Nicotombo/Shutterstock.com

Chat About It 608


Grammar and Mechanics 608
References 609

Chapter 16 Zooming In: Achieving Interview Success in Today’s


Competitive Job Market 613
Interviewing and Interviewing Effectively in Today’s Competitive
Job Market 613
Following Up 612 Before the Interview 617
During the Interview 622
After the Interview 633
Preparing Additional Employment Documents 636
Zooming In: Your Turn: Applying Your Skills 639
Summary of Learning Outcomes 639
goodluz/Shutterstock.com

Critical Thinking 641


Activities 641
Test Your Etiquette IQ 647
Chat About It 647
Grammar and Mechanics 647
References 648

xviii Contents

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Appendixes
A Document Format Guide A-1
B   Documentation Formats B-1
C   Correction Symbols and Proofreading Marks C-1
D    Grammar and Mechanics Guide D-1
End Matter
Key to Grammar and Mechanics Key-1
Etiquette IQ Responses R-1
Glossary (Available online only at www.cengagebrain.com)
Index I-1

Contents xix

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Appreciation for Support
No successful textbook reaches a No. 1 position without a great deal of help. We are exceed-
ingly grateful to the reviewers and other experts who contributed their pedagogic and academic
expertise in shaping Business Communication: Process & Product.
We extend sincere thanks to many professionals at Cengage Learning; Erin Joyner, Vice
President, General Manager for Social Sciences, Humanities & Business; Michael Schenk,
Executive Product Director for Business & Economics; John Rich, Content Development
Manager; Megan Guiliani, Content Project Manager; Bethany Casey, Senior Art Director, and
Diane Garrity, Intellectual Property Analyst.
Our heartfelt appreciation also goes to the following for their expertise in creating exceptional
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Carolyn M. Seefer, Diablo Valley College; Thanakorn Kooptaporn, California State University,
Fullerton; Michele Granger, Missouri State University; and Nicole Adams, University of Dayton.

Mary Ellen Guffey


Dana Loewy

Grateful Thanks to Reviewers


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xxii Appreciation for Support

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About the Authors
Dr. Mary Ellen Guffey
A dedicated professional, Mary Ellen Guffey has taught busi-
ness communication and business English topics for over thir-
ty-five years. She received a bachelor’s degree, summa cum laude,
from Bowling Green State University; a master’s degree from the
University of Illinois, and a doctorate in business and economic
education from the University of California, Los Angeles (UCLA).
She has taught at the University of Illinois, Santa Monica College,
and Los Angeles Pierce College.
Now recognized as the world’s leading business communication author, Dr. Guffey corre-
sponds with instructors around the globe who are using her books. She is the founding author
of the award-winning Business Communication: Process & Product, the leading business
communication textbook in this country. She also wrote Business English, which serves more
students than any other book in its field; Essentials of College English; and Essentials of Business
Communication, the leading text/workbook in its market. Dr. Guffey is active profession-
ally, serving on the review boards of the Business and Professional Communication Quarterly
and the Journal of Business Communication, publications of the Association for Business
Communication. She participates in national meetings, sponsors business communication
awards, and is committed to promoting excellence in business communication pedagogy and
the development of student writing skills.

Dr. Dana Loewy


Dana Loewy has been teaching business communication at
California State University, Fullerton since 1996. She enjoys intro-
ducing undergraduates to business writing and honing the skills
of graduate students in managerial communication. Most recently,
she has also taught various German courses and is a regular guest
lecturer at Fach-hochschule Nürtingen, Germany. In addition to
completing numerous brand-name consulting assignments, she is a
certified business etiquette consultant. Dr. Loewy has collaborated
with Dr. Guffey on recent editions of Business Communication: Process & Product as well as on
Essentials of Business Communication.
Dr. Loewy holds a master’s degree from Bonn University, Germany, and earned a PhD in
English from the University of Southern California. Fluent in several languages, among them
German and Czech, her two native languages, Dr. Loewy has authored critical articles in many
areas of interest—literary criticism, translation, business communication, and business ethics.
Before teaming up with Dr. Guffey, Dr. Loewy published various poetry and prose translations,
most notably The Early Poetry of Jaroslav Seifert and On the Waves of TSF. Active in the
Association for Business Communication, Dr. Loewy focuses on creating effective teaching/
learning materials for undergraduate and graduate business communication students.

About the Authors xxiii

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Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
UNIT
1
Communication
Foundations
Chapter 1
Business
Communication
in the Digital
Age
Chapter 2
Professionalism:
Team, Meeting,
Listening,
Nonverbal, and
Etiquette Skills
Chapter 3
Intercultural
Communication
AjFile/Shutterstock.com

Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
Chapter Business
1
Communication
in the Digital
Age
LEARNING
OUTCOMES
After studying this chapter, you
should be able to

1 Explain how communication


skills fuel career success, and
understand why writing skills
are vital in a digital, mobile, and
social-media-driven workplace.

2 Identify the tools for success


in the hyperconnected 21st-
century workplace; appreciate
the importance of critical-
thinking skills and personal
credibility in the competitive
job market of the digital age;
and discuss how your education
may determine your income.

3 Describe significant trends in


today’s dynamic, networked
work environment, and
recognize that social media
and other communication
technologies require excellent
communication skills, in any
economic climate.

4 Examine critically the


internal and external flow of
communication in organizations
through formal and informal
channels, explain the
importance of effective media
choices, and understand how
AjFile/Shutterstock.com

to overcome typical barriers to


organizational communication.

5 Analyze ethics in the workplace,


understand the goals of ethical
business communicators, and
choose the tools for doing the
right thing.

Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
Nordstrom: A Fabulous

Yeamake/Shutterstock.com
Shopping Experience Goes
Social
Nordstrom’s customer service is legendary. Like no other,
the upscale fashion retailer empowers its employees to
Zooming In
make their own decisions to best serve customers. Consider
the Anchorage location once accepting returned tires that the retailer doesn’t even sell. Another Critical Thinking
true story relates that an employee raced to deliver a scatterbrained customer’s forgotten baggage
to the airport prior to her departure. Both anecdotes exemplify the century-old company’s motto: to
• After reading this
case study, can you
provide a fabulous customer experience by empowering customers and the employees who serve them. put into perspective
But Nordstrom’s fabled devotion to customer service extends strategically into the virtual world to the suggestion “have
meet customers where they are. The retailer has invested heavily in technology; for example, to inte- fun and be yourself”?
grate its inventory management system with its website and the Nordstrom app—always with the clear What exactly does this
purpose to enhance the customer experience. As a result, the company’s online and offline worlds are invitation mean?
seamlessly linked, and customers can find what they want in one place. Salespeople can track customer
requests and needs online. This persistent effort to integrate digital capabilities has paid off. Nordstrom’s • Why does Nordstrom
revenue has grown by more than 50 percent in the last five years.1 Its shares have jumped 120 percent.2 allow only certain
employees to connect
A strong social media engagement is key to Nordstrom’s strategy to provide superb service and to
online with customers
drive traffic to its e-commerce site. As one of America’s most connected companies,3 it relies on crowd-
and other members of the
sourcing to learn which items to stock, and it responds rapidly to queries, in Spanish when needed. At
public?
currently 3.2 million likes, Nordstrom is a strong presence on Facebook. Pinterest, the popular online
bulletin board, is a particular success story for early-adopter Nordstrom, which currently has some 4.4 • Why do social media
million followers.4 guidelines emphasize
With such public engagement, it’s not surprising that Nordstrom has clearly defined social media ethical behavior and
use guidelines. Approved employees may connect with customers during working hours and even after ethical communication?
hours, if allowed. They are admonished to use good judgment and abide by all corporate policies. They
are told to be respectful, responsible, and ethical. Furthermore, Nordstrom’s social media policy forbids
the sharing of confidential corporate information as well as employees’ and customers’ private and per-
sonal information. Conflicts of interest are to be avoided, and compensated endorsements must be dis-
closed. The policy ends with this cheerful invitation: “Above all, remember to have fun and be yourself!”5
Nordstrom’s digital strategy is making the company highly competitive. You will learn more about
Nordstrom and be asked to complete a relevant task at the end of this chapter.

Communicating in the Digital World LEARNING


OUTCOME 1
What kind of workplace will you enter when you graduate, and which skills will you need to be Explain how
successful in it? Expect a fast-paced, competitive, and highly connected digital environment. communication skills
Communication technology provides unmatched mobility and connects individuals anytime fuel career success, and
and anywhere in the world. Today’s communicators interact using multiple electronic devices understand why writing
and access information stored in remote locations, in the cloud. skills are vital in a digital,
This mobility and instant access explain why increasing numbers of workers must be avail- mobile, and social-media-
able practically around the clock and respond quickly. Nordstrom and other technology-savvy driven workplace.
businesses have recognized the power of social media networks and seek to engage their
customers and other stakeholders where they meet online. Communication no longer flows one
way; rather, electronic media have empowered the public to participate and be heard.
In this increasingly complex, networked, and mobile environment, communication skills
matter more than ever.6 Such skills are particularly significant when competition is keen. Job
candidates with exceptional communication skills immediately stand out. In this chapter you
will learn about communication skills in the digital era and about the contemporary world
of work. Later you will study tools to help you negotiate ethical minefields and do the right
thing. Each section covers the latest information about communicating in business while also
providing tips to help you function effectively and ethically in today’s fast-paced, informa-
tion-driven workplace.

Chapter 1 Business Communication in the Digital Age 3

Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
Communication Skills: Your Pass to Success
Over the last decade, employer surveys have consistently shown that strong communication
skills are critical to effective job placement, work performance, career advancement, and orga-
nizational success.7 In making hiring decisions, employers often rank communication skills
among the most desirable competencies.8
Interviewers for defense contractor BAE Systems may request a writing sample to “literally
see if the candidate can write,” but also to find out whether the applicant can organize and
share ideas, explains Curt Gray, senior vice president of human resources and administration.
UPS requires its workers to write clear and concise messages and “to investigate, analyze and
report their findings in a professional manner,” says Matt Lavery, managing director of corpo-
rate talent acquisition.9 In a poll, Fortune 1000 executives cited writing, critical-thinking,
and problem-solving skills along with self-motivation and team skills as their top choices in
new-hires.10
Writing skills can be your ticket to work—or your ticket out the door, according to a business
executive responding to a significant survey. This much-quoted study of 120 American corpo-
rations by the National Commission on Writing found that two thirds of salaried employees
have some writing responsibility. However, about one third of them do not meet the writing
requirements for their positions.11 “Businesses are crying out—they need to have people who
write better,” said Gaston Caperton, executive and College Board president.
Writing has been variously called a “career sifter,” a “threshold skill,” and “the price of
admission,”12 indicating that effective writing skills can be a stepping-stone to great job oppor-
tunities. Poorly developed writing skills, however, may derail a career. Writing is a marker of
high-skill, high-wage, professional work, according to Bob Kerrey, former university president
and chair of the National Commission on Writing. If you can’t express yourself clearly, he says,
you limit your opportunities for many positions.13
When we discuss communication skills, we generally mean reading, listening,
nonverbal, speaking, and writing skills. In addition, workers today must be media savvy
and exercise good judgment when posting messages on the Internet and writing e-mails.
To be successful, they must guard their online image and protect the reputation of their
employers. In this book we focus on the listening, nonverbal, speaking, and writing skills
necessary in a digital workplace. Chapters are devoted to each of these skills. Special atten-
tion is given to writing skills because they are difficult to develop and increasingly signifi-
cant in e-communication.

Writing in the Digital Age


Note: Because this is a If you are like many young adults, you may think that your daily texts, instant messages,
well-researched text- Facebook posts, blog entries, and e-mails are not real writing. A Pew Internet & American Life
book, you will find small study found that teens and young adults consider their frequent e-communication to be very
superscript numbers in different from the traditional writing they learn in school.14 Perhaps young people understand
the text. These an- that their digital writing is largely casual, but that employers expect more formal, thoughtful,
nounce information informative, and error-free messages. In any case, the respondents in the study rightly believe
sources. Full citations that solid writing skills are a necessity in today’s networked digital world.
are located in the Notes Long gone are the days when business was mostly conducted face-to-face and when
section beginning on administrative assistants corrected spelling and grammar for their bosses. Although interper-
page 40 near the end of sonal skills still matter greatly, writing effectively is critical. Ever since the digital revolution
the book. This edition swept the workplace, most workers write their own messages. New communication channels
uses a modified Ameri- appeared, including the Web and e-mail, followed by instant messaging, blogs, and social
can Psychological Asso- media networks.
ciation (APA) reference The mobile revolution is stimulating huge economic growth and has profoundly changed
citation format. how we communicate; it has become the fastest-adopted technology of all time.15 Figure 1.1
displays the emergence of new communication technology and the rapid growth of Internet
users over the last two decades. So far, the number of Internet users has roughly doubled every
five years.

4 Chapter 1 Business Communication in the Digital Age

Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
Figure 1.1 Time Line: Communication Technology and Social Media

2000 | 2005 | 2010 | 2015 | 2020

Napster StumbleUpon Skype iPad


Blogger Wikipedia Second Life YouTube iPhone IPTV Cloud computing The Internet of Things
Netbooks Smartphones Technology Convergence Artificial intelligence
iTunes RSS 2.0 Vimeo Pinterest
iPod MySpace Kindle Self-driving automobiles
GPS III Hulu Instagram Wearable devices
Geocaching LinkedIn Facebook
Blackberry Tumbler The Mobile Revolution
ThumbDrive Palm OS World of Warcraft Android Dropbox
Digg WiMax networks Apps
Treo
Flickr Blu-ray USB 3.0

R E SP
O N SE
T IM E :
We e k s > lion
D ay s > H o u r s .0 Bil
> M i nu t e s > S e c o n ds Bi l l ion > 3
> 2.3
Billion
NUMBER OF IN n > 1.15
TERNE T USERS: 361 Million > 500 Millio

Writing matters more than ever because the online media require more of it, not less.16 An
important poll by Hart Research Associates supports this view. The participating employers
admitted that their expectations of employees have increased because the challenges on the job
are more complex than in the past. The executives also said that employees today need a broader
range of skills as well as higher levels of knowledge in their field.17
“Communicating clearly and effectively has NEVER been more important than it
is today. Whether it’s fair or not, life-changing critical judgments about you are being
made based solely on your writing ability,” says management consultant Victor Urbach.
“Having excellent command of your online digital persona will enable you to quickly
surpass those who present themselves weakly in the new competitive arena. Since you
probably won’t get a second chance, what kind of digital first impression will you choose
to make?”18 Developing these skills in this course will build your credibility and help you
stand out.

It’s Up to You: Communication Skills


Can Be Learned
By enrolling in a business writing class, you have already taken the first step toward improving
or polishing your communication skills. The goals of this course and this book include teaching
you basic business communication skills, such as how to write an effective e-mail, a short
message on a mobile device, or a clear business letter, and how to make a memorable presenta-
tion with various digital media.
Thriving in the challenging interconnected work world depends on many factors, some of
which you cannot control. However, one factor that you do control is how well you communi-
cate. You are not born with the abilities to read, listen, speak, and write effectively. These skills
must be learned. This book and this course may well be the most important in your entire
college curriculum because they will equip you with the skills most needed in today’s fast-paced
information- and data-driven workplace.

Chapter 1 Business Communication in the Digital Age 5

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Reality Check
Digital Workplace Survival Skills
photopixel/Shutterstock.com

“To succeed in today’s workplace, young people need more than basic reading and
math skills. They need substantial content knowledge and information technology skills;
advanced thinking skills, flexibility to adapt to change; and interpersonal skills to succeed in
multi-cultural, cross-functional teams.”19

—J. Willard Marriott, Jr., chairman and CEO, Marriott International, Inc.

LEARNING
OUTCOME 2 The Digital Revolution and You: Tools for
Identify the tools
for success in the
Success in the 21st-Century Workplace
If you are a young adult, chances are that you check Facebook, smartphone texts, Instagram,
hyperconnected 21st-
Twitter, or Tumblr first thing in the morning and repeatedly throughout the day to stay
century workplace;
connected with your friends and family. Most likely you write and create digital documents
appreciate the importance
with a notebook, tablet, or smartphone without thinking much about the technology enabling
of critical-thinking skills
you to do all this. Information technology has changed how we work, play, and communicate.
and personal credibility
It has never been easier to access and share information via various digital media from a vast
in the competitive job
network of sources and to distribute it nearly instantly and to widespread audiences.20 What
market of the digital age;
hasn’t changed is that communication skills need time and effort to develop.
and discuss how your
To achieve literacy in the digital age means not only using multimedia applications and
education may determine
snazzy late-model gadgets but also thinking critically about new media. It means using tech-
your income.
nology thoughtfully and in a professional manner to achieve success in a hyperconnected world.
The 21st-century economy depends mainly on information and knowledge. Previously, in
the Industrial Age, raw materials and physical labor were the key ingredients in the creation of
wealth. Today, however, individuals in the workforce offer their knowledge, not their muscles.
Knowledge workers (a term first coined by management
guru Peter Drucker) get paid for their education and
their ability to learn.21
More recently, we are hearing the term information
worker to describe those who produce and consume
information in the workplace.22 Regardless of the termi-
nology, knowledge and information workers engage in
mind work. They must make sense of words, figures,
and data. At the same time, the knowledge available in
the “digital universe” is more than doubling every year,
according to computing pioneer George Dyson.23
In this light it may not surprise you that jobs in
the information technology sector are likely to jump
24 percent by 2020.24 Mobile technology generated
almost $3.3 trillion in revenue globally in one year
alone and is responsible for 11 million jobs, according
Rachael Arnott/Shutterstock.com

to Boston Consulting.25 However, in a recovering but


demanding U.S. labor market, hundreds of thousands
of jobs in science, technology, engineering, and math
remain unfilled.26 Experts also worry about domestic
talent shortages in skilled manufacturing.27 In such a
challenging environment, continuous, lifelong learning
will make you more competitive and valuable to future

6 Chapter 1 Business Communication in the Digital Age

Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
employers. An adaptable, highly skilled workforce is well equipped to weather any economic
climate as well as global competition.

Why Should You Care?


As a knowledge worker in the skills economy, you can expect to be generating, processing, and
exchanging information. You will need to be able to transmit it effectively across various communica-
tion channels and multiple media. You might be called on to use e-mail, multimedia slide presentations,
wikis, podcasts, or Facebook and other social media in a professional setting. With added job respon-
sibilities, you will be expected to make sound decisions and solve complex problems. Interviewers
at global giant Siemens probe job applicants for the ability “to quickly distill the key issues and
relationships in complex situations,” says Mike Panigel, senior vice president of human resources.28
In a recent PayScale study, writing proficiency is considered a hard skill; 44 percent of
managers stated that it’s the skill most lacking among recent college graduates. The respon-
dents also criticized a lack of communication skills (46 percent) as well as critical thinking and
problem solving skills (60 percent).29 You are learning to think, read, and ask questions in a
networked world, accessed with computers, tablets, smartphones, e-readers, wearable devices,
and more. The avalanche of information that engulfs you daily requires you to evaluate all
sources critically because information flows at a great speed, across various media, and in many
directions. With potentially a global audience watching, you can choose to project a positive,
professional image, or you can publish misinformation and embarrassing falsehoods.30

Reality Check
Wanted! 21st-Century Skills
Courtesy of Karen Bruett

In the media-driven world of the 21st century, workers must process vast amounts of
information fast and judge accurately whether the information is reliable. “It’s important that
students know how to manage it, interpret it, validate it, and how to act on it.”31

—Karen Bruett, higher education expert, former Dell executive

Thinking Critically in the Digital Age


Jobs that require thinking, brainpower, and decision-making skills are likely to remain plen-
tiful. Whether you work in m-commerce (mobile technology businesses), e-commerce (Internet-
based businesses), or brick-and-mortar commerce, nearly three out of four jobs involve some
form of mind work. To be successful in these jobs, you will need to be able to think critically,
make decisions, and communicate those decisions.
Management and employees work together in such areas as product development, quality
control, and customer satisfaction. All workers, from executives to subordinates, need to think
creatively and critically. Even in factory production lines, workers are part of the knowledge culture.
Toyota’s management philosophy of continuous improvement (kaizen) by engaged and empowered
workers is much admired and emulated around the world.32 When your boss or team leader says,
“What do you think we ought to do?” you want to be able to supply good ideas and demonstrate
that you can think critically. This means having opinions that are backed by reasons and evidence.
Faced with a problem or an issue, most of us do a lot of worrying before separating the
issues or making a decision. Figure 1.2 provides a three-point plan to help you think criti-
cally and solve problems competently. As you can see, understanding the problem is essential
and must come first. Generating and selecting the most feasible ideas is the intermediate step.
Finally, the problem-solving model prompts you to refine, justify, and implement the solution.
At the end of each chapter in this text, you will find activities and problems that will help you
develop and apply your critical-thinking skills.

Chapter 1 Business Communication in the Digital Age 7

Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
Figure 1.2 Osborn-Parnes Creative Problem-Solving Process

Explore the Generate Implement


1 2 3
Challenge Ideas Solutions

Come up with
Identify the Select and
many ideas to
challenge strengthen solutions
solve the problem

Gather information Plan how to bring


Pick the most
and clarify the your solution to life
promising ideas
problem and implement it

Managing Your Career Well: Guarding


Your Credibility
In a dynamic, highly competitive world of work, not even the most talented college graduate
can afford to post or e-mail a résumé, kick back, and wait to be discovered. You will need to
be proactive and exercise greater control over your career than college graduates before you
did. Like most workers today, you will not find nine-to-five jobs, predictable pay increases, life-
time security, and even conventional workplaces.33 Quite likely, your future employer may first
observe your use of social networking tools before deciding to invite you for an interview.34
Don’t presume that companies will provide you with a clearly defined career path or planned
developmental experiences. In the private sector, you can expect to work for multiple employers,
moving back and forth between work and education and between work and family responsibil-
ities.35 Increasingly, the workplace and your career will resemble not a vertical corporate ladder,
but a more intricate, open, fluid, and interconnected framework—a corporate lattice.36
To keep up with evolving technologies and procedures, you can look forward to constant
training and lifelong learning. Businesses are investing heavily in virtual training and social mobile
learning. Such “everywhere” professional development is highly customized. It allows chief learning
officers to track their employees’ continued education needs as well as their progress while workers
earn digital badges, similar to the Boy Scouts’ tokens of achievement.37 Whether you are currently
employed or about to enter today’s demanding workplace, you must be willing to continually learn
new skills that supplement the strong foundation of basic skills you are acquiring in college.

Reality Check
Constant Career Readiness
Shutterstock.com
retrorocket/

“As work moves from climbing a career ladder to navigating a career lattice, people have
to be in a mode of constant career readiness.”38

—Jason Swanson, futurist and director of strategic foresight at learning organization KnowledgeWorks

8 Chapter 1 Business Communication in the Digital Age

Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
In addition, in a hyperconnected professional environment, you must manage and guard
your reputation—at the office and online. How you present yourself in the virtual world, meaning
how well you communicate and protect your brand, may very well determine how successful your
career will be. Your credibility is a precious asset. Thoughtful blog posts, well-crafted tweets, astute
comments on LinkedIn and Facebook, as well as competent e-mails will help you continually make
a positive impression. As one career advisor explains: “Every interaction—from how you greet
your coworkers in the morning to how you summarize a status update in an email—contributes
to how people view you.”39 In short, you will need to nurture and safeguard your professionalism
online and off. You will learn more about soft skills and professionalism in Chapter 2.

Succeeding in an Improving but


Competitive Job Market
Recent graduates will enter what economists say is the best job market for fresh-minted degree
holders in nearly a decade. Still, about 1.5 unemployed workers will compete for each job
opening.40 What skills will make a difference for you? In one of its Job Outlook studies, the
National Association of Colleges and Employers (NACE) recently asked employers what attri-
butes they seek in new college graduates.
First, a prospective employee must meet the employer’s fundamental criteria, including
having the required major, course work, and GPA. By the way, many employers reported
that they screened candidates by grade point average, with 3.0 (a B average) or higher favored
strongly. If a candidate passes these hurdles, then employers look for leadership skills, the ability
to work in a team, and written communication skills, as shown in Figure 1.3.41
Although employers seek these skills, they are not always pleased with what they find. The
Association of American Colleges and Universities (AACU) asked groups of employers and
college students a series of similar questions about career preparation. The results revealed
a remarkable lack of agreement; students consistently ranked themselves as prepared in
areas in which employers did not. In the key areas of written and oral communication and
critical thinking, students were more than twice as likely as employers to think that they
were well prepared.42 To make sure you don’t disappoint future employers, take advantage
now of opportunities to strengthen your writing, presentation, and critical-thinking skills.

Figure 1.3 Skills Jobs Seekers Should Offer

Skills
Jobs Seekers Should Offer:
Leadership 78%
Ability to work in a team 78%
Communication skills (written) 73%
Problem-solving skills 71%
Strong work ethic 70%
Analytical/quantitative skills 68%
Technical skills 68%
Communication skills (verbal) 67%

Source: Job Outlook 2015, National Association of Colleges and Employers.

Chapter 1 Business Communication in the Digital Age 9

Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
Figure 1.4 T
 he Education Bonus: Higher Income, Lower
Unemployment

Education Median Weekly Earnings Unemployment Rate


High school dropout $ 471 12.4%

High school diploma 652 8.3%

Some college, no degree 727 7.7%

Associate’s degree 785 6.2%

Bachelor’s degree or higher 1,367 4.5%

Source: U.S. Bureau of Labor Statistics. (2013, February 5). Labor force statistics from the current
population survey; and U.S. B
­ ureau of Labor Statistics (2013, May 22). Employment Projections: Earnings
and unemployment rates by educational attachment.

How Your Education Drives Your Income


As college tuition rises steeply and student debt mounts, you may wonder whether going to college
is worthwhile. Yet the effort and money you invest in earning your college degree will most likely
pay off. College graduates earn more, suffer less unemployment, and can choose from a wider
variety of career options than workers without a college education. Moreover, college graduates
have access to the highest-paying and fastest-growing careers, many of which require a degree.43
As Figure 1.4 shows, graduates with bachelor’s degrees earn nearly three times as much as
high school dropouts and are almost three times less likely to be unemployed.44
Writing is one aspect of education that is particularly well rewarded. One corporate president
explained that many job seekers present well. When he faced a hard choice between candidates,
he used writing ability as the deciding factor. He said that sometimes writing is the only skill that
separates a candidate from the competition. A survey of employers confirms that soft skills such as
communication ability can tip the scales in favor of one job applicant over another.45 Your ticket to
winning in a competitive job market and launching a successful career is good communication skills.

LEARNING Trends and Challenges in the


OUTCOME 3 Information Age Workplace
Describe significant
trends in today’s The workplace is changing profoundly and rapidly. As a businessperson and especially as a business
dynamic, networked communicator, you will undoubtedly be affected by many trends. Some of those trends include
work environment, communication technologies such as social media, expectations of around-the-clock availability,
and recognize that and global competition. Other trends include flattened management hierarchies, team-based proj-
social media and ects, a diverse workforce, and the mobile or virtual office. The following overview reveals how
other communication communication skills are closely tied to your success in a constantly evolving networked workplace.
technologies require
excellent communication Social Media and Changing Communication
skills, in any economic
climate.
Technologies
Although interacting with others on Facebook, YouTube, Instagram, WhatsApp, FaceTime, or
Twitter may seem a daily necessity to you, social media are still relatively new and untried commu-
nication channels for some small businesses. Most larger organizations, however, are completely
plugged in and have created a positive presence with the help of both traditional and social media.
Quite logically, social media networks first attracted industries built on communication
and technology, such as mainstream media outlets and information technology firms. New
communication technologies also quickly took hold among marketers, in public relations, and
10 Chapter 1 Business Communication in the Digital Age

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Figure 1.5 Communication Technology in a Mobile and
Social World— Costs and Benefits

Benefits Trade-Offs

• Empowerment of the individual; • Proliferation of conspiracy theorists,


potentially everyone has a voice radicals, criminals and crackpots in
the absence of gatekeepers
• Unparalleled access to nearly
unlimited information • Critical reading and thinking skills
required more than ever before
• Transparency: People and
organizations face scrutiny and • Transparency: Privacy violations,
pressure to behave spying, cyber stalking, identify theft

• Companies can collect productivity • Without European-style Right to be


and behavioral data forgotten, indiscretions follow
individuals forever.
• Unprecedented mobility; the
anywhere, anytime office • Relentless pursuit of productivity;
“Big Data”; loss of control over
• Cloud-based data storage and one’s information
applications independent of device
• 24/7 availability; threat to work-life
balance

• Hacking and data breaches

Pepsco Studio/Shutterstock.com

in advertising. Even so, many businesses relying on traditional media seem to be waiting to
figure out how the new media might benefit them46 to justify the investments.
However, even the most reluctant late adopters of technology eye the explosive growth
of social media networks in the last decade with some interest. After all, online communities
continue to draw huge numbers of people from all over the world. The 302 million active users
of Twitter, the microblogging site, clock an average 500 million tweets per day.47 Ordinary
citizens can organize protests and boycotts within hours, even minutes. Bad customer service
experiences can lead to lifelong grudges.48 In short, word of mouth, positive and negative, can
travel instantly at the speed of a few mouse clicks.
The various social media are maturing and yielding undeniable advantages. However, even
their most avid users are learning that their favorite technologies also come with significant
downsides—for example, data breeches and identify theft, as Figure 1.5 illustrates.
Tech-savvy companies are embracing digital tools to connect with consumers, invite feed-
back, and improve their products and services. They may announce promotions and events
in blog posts, in tweets, on their company websites, and in online communities. Above all,
plugged-in businesses realize that to manage public perceptions, they need to be proactive but
also respond quickly and deftly within the social media when a crisis hits. They need to go where
their customers are and attempt to establish and keep a loyal following online. It has never been
easier to interact so fast with so many people at once.
At the very least, even if they still pass on social media, nearly all businesspeople today
in some way rely on the Internet to collect information, serve customers, and sell products
and services. Figure 1.6 on pages 12 and 13 illustrates many new office and communication
Chapter 1 Business Communication in the Digital Age 11

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Figure 1.6 Communication and Collaborative Technologies

Communication Smart Mobile Devices and Digital


Convergence
Technologies at Work Lightweight, ever-smaller devices provide phone, e-mail, Web
Becoming familiar with communication technology can help browsing, and calendar options anywhere there’s a cellular or
you succeed on the job. Today’s digital workplace is shaped by Wi-Fi network. Tablets and smartphones such as Android devices
mobile devices, mobile apps, social media networks, superfast and the iPhone and iPad allow workers to tap into corporate
broadband and wireless access, and other technologies that allow databases and intranets from remote locations. Users can check
workers to share information, work from remote locations, and be customers’ files, complete orders, collect payment, and send out
more productive in or away from the office. With today’s tools you receipts without returning to the office. Increasingly, businesses
can exchange ideas, solve problems, develop products, forecast are issuing smartphones to their workers, abandoning landlines
future performance, and complete team projects any time of the completely. At the same time, the need for separate electronic
day or night and anywhere in the world. gadgets is waning as digital smart devices are becoming multi-
functional and highly capable. With streaming video on the
Cloud Computing and Web 2.0 Web, connectivity between TVs and computers, and networked
mobile devices, technology is converging, consolidating into
Increasingly, applications and data are stored in remote locations increasingly powerful devices. Many smart devices today are
online, in the cloud. fully capable of replacing digital point-and-shoot still photog-
Cloud computing means that businesses and individuals no raphy and video cameras. Mobile smart devices are competing
longer need to maintain costly hardware and software in-house; with TVs and computers for primacy.
instead, they can centralize data on their own remote servers or
pay for digital storage space and software applications offered Mobile Apps
by providers online. Photo- and video-sharing sites such as
Mobile apps are the software that enables smartphones to run
Picasa and Flickr keep users’ photos in the cloud. Similarly, Drop-
and accomplish amazing feats. Despite their natural size limita-
box, a popular file-synchronization service, and online backup
tions, mobile apps rival the capabilities of full-fledged software
provider Carbonite allow users to edit and sync files online inde-
applications on laptops, on desktops, and in the cloud.
pendent of the device used to access them. The term Web 2.0
means that websites and Web applications have shifted from
one-way, read-only communication to two-way, multidirec- Wearable Devices
tional, read-write communication. This profound change has The most recent trend in mobile computing is wearable
allowed workers to participate, collaborate, and network in devices. Fitbit, Google Glass, Apple Watch, and similar acces-
unprecedented ways. sories do more than track fitness activities. They are powerful
mobile devices in their own right that can sync with other smart
Telephony: VoIP electronics.
Savvy businesses are switching from traditional phone service to
voice over Internet protocol (VoIP). This technology allows callers Voice Recognition
to communicate using a broadband Internet connection, thus Computers equipped with voice recognition software enable
eliminating long-distance and local telephone charges. High- users to dictate up to 160 words a minute with accurate transcrip-
er-end VoIP systems now support unified voice mail, e-mail, click- tion. Voice recognition is particularly helpful to disabled workers
to-call capabilities, and softphones (Web applications or mobile and professionals with heavy dictation loads, such as physicians
apps, such as Google Voice, for calling and messaging). Free or and attorneys. Users can create documents, enter data, compose
low-cost Internet telephony sites, such as the popular Skype and and send e-mails, browse the Web, and control their notebooks,
FaceTime, are also increasingly used by businesses, although their laptops, and desktops—all by voice. Smart devices can also
sound and image quality is often uneven. execute tasks with voice command apps.

Open Offices
Electronic Presentations and Data
The widespread use of laptops, tablets, and other smart
devices, wireless technology, and VoIP has led to more fluid, Visualization
flexible, and open workspaces. Smaller computers and flat- Business presentations in PowerPoint, Prezi, or Keynote can be
screen monitors enable designers to save space with boomer- projected from a laptop or tablet, or posted online. Sophisti-
ang-shaped workstations and cockpit-style work surfaces cated presentations may include animation, sound effects, digital
rather than space-hogging corner work areas. Smaller break- photos, video clips, or hyperlinks to Internet sites. In some indus-
out areas for impromptu meetings are taking over some cubi- tries, PowerPoint slides (decks) are replacing or supplementing
cle space, and digital databases are replacing file cabinets. traditional hard-copy reports. Data visualization tools such as SAS
Mobile technology allows workers to be fully connected and can help businesses make sense of large amounts of complex
productive on the go. data.

12 Chapter 1 Business Communication in the Digital Age

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Castleski/Shutterstock.com
Social Media Web Conferencing
Broadly speaking, the term social media describes technol- With services such as GoToMeeting, WebEx, and Microsoft Live
ogy that enables participants to connect and share in social Meeting, all you need is a computer or a smart device and an
networks online. For example, tech-savvy companies and indi- Internet connection to hold a meeting (webinar) with customers
viduals use Twitter to issue up-to-date news, link to their blogs or colleagues in real time. Although the functions are constantly
and websites, or announce events and promotions. Microblog- evolving, Web conferencing currently incorporates screen sharing,
ging services, such as Twitter and Tumblr, also allow businesses chats, slide presentations, text messaging, and application sharing.
to track what is being said about them and their products. Simi-
larly, businesses use social networks such as Facebook, Insta-
gram, and others to interact with customers and build their
Videoconferencing
brands. Companies may also prospect for talent using social Videoconferencing allows participants to meet in special confer-
media networks. Efforts to launch corporate social networks ence rooms equipped with cameras and television screens.
have seen mixed results. So far workers have been slow in Individuals or groups see each other and interact in real time,
embracing SharePoint, Jive, Yammer, Telligent, and similar although they may be far apart. Faster computers, rapid Internet
enterprise-grade collaboration platforms, social networks, and connections, and better cameras now enable 2 to 200 partic-
community forums. ipants to sit at their computers or mobile devices and share
applications, spreadsheets, presentations, and photos. The tech-
nology extends from the popular low-end Internet application
Collaboration With Blogs, Podcasts, and Skype to sophisticated videoconferencing software that delivers
HD-quality audio, video, and content sharing.
Wikis
Businesses use blogs to keep customers and employees
informed and to receive feedback. Company news can be
Gamification
posted, updated, and categorized for easy cross-referencing. Gamification is a trend that uses game design techniques to increase
An audio or video file streamed online or downloaded to a motivation and engagement. Much like exciting computer games,
digital music player is called a podcast. A wiki is an Internet or gamification platforms in business are designed to be fun and in
intranet site that allows multiple users to collaboratively create turn increase productivity as well as revenue. Gamification tech-
and edit digital files as well as media. Information can get lost niques include using badges or points to tap into people’s natural
in e-mails, but wikis provide an easy way to communicate and desires for competition, status, and achievement but also altruism,
keep track of what’s said. Wikis for business include Confluence, collaboration, and more. Gamification is used in marketing, sales,
eXo Platform, Socialtext, and Jive. customer retention, training, and similar business applications.

Chapter 1 Business Communication in the Digital Age 13

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technologies you will meet in today’s workplace. To make the most of the new resources, you, as
a skilled business communicator, must develop a tool kit of new communication skills. You will
want to know how to select the best communication channel, how to use each channel safely and
effectively, and how to incorporate the latest technologies and search tools efficiently. All of these
topics are covered in later chapters.

Anytime, Anywhere: 24/7/365 Availability


Although the dizzyingly fast connectedness across time zones and vast distances offers busi-
nesses and individuals many advantages, it also has a darker side. As you rise on the career
ladder, you may be expected to work long hours without extra compensation and be available
practically anytime and anywhere should a crisis strike at work. In the last two decades, the
line between work and leisure has become increasingly blurry. In many industries information
workers are expected to remain tethered to their workplaces with laptops, tablets, and smart-
phones around the clock and on weekends.
The physical office is extending its reach, sometimes overreaching, perhaps. Compared to
workers in other industrialized nations such as Japan and most European countries, Americans
put in the longest hours (about 50 percent more). They also receive the shortest paid vacations.
In contrast, workers in the European Union enjoy four to six weeks of paid time off per year.
Most are also protected from overtime exceeding 48 hours per week.49 A different picture
emerges in the United States. As the digital revolution reached the masses in the 2000s, articles
in major U.S. publications such as The New York Times decried the 24/7 work climate, citing
its negative effects on workers’ health and personal lives.50 The perceived work-life imbalance
became a hot topic. Be that as it may, the office today and in the future is mobile and always on.
In a global economy in which corporations own far-flung operations around the world, a
networked information-driven workforce never goes off duty. Similarly, the organization essen-
tially never sleeps, according to one expert. The 24/7 workplace operates around the clock, he
says, with managers, staff, and teams always staying connected to share information when needed
and address burning issues when they arise.51 Managers exert power beyond the physical office.
Moreover, work in the digital age demands that participants stay on until the project is finished, not
when the clock strikes five or six at the end of the day. As your professional responsibilities grow,
you can expect not only to be accessible 24/7 but also to feel the significant impact of globalization.

The Global Marketplace and Competition


The rise of new communication technologies, the removal of trade barriers, advanced forms
of transportation, and saturated local markets—all of these developments have encouraged
companies to move beyond familiar territories to emerging markets around the world. Small,
medium, and large companies in the United
States and abroad have expanded overseas.
Teenagers in Singapore, Latvia, South Korea,
Australia, and the United States alike flock in
droves to popular store openings by Swedish
clothing retailer H&M or its Spain-based rival
Zara. Trader Joe’s parent company, German
discounter Aldi, is giving U.S. food retailers
a run for their money by gaining ground in a
crowded marketplace in the United States.52
Betty LaRue/Alamy Stock Photo

If necessary, multinational companies even


adjust their products to different palates. Because
Indians are not crazy about doughnuts, Dunkin’
Donuts radically reworked its menu in India and
now rivals McDonald’s with beef-free burger offer-
ings.53 After initial hiccups, Walmart has become
hugely popular with Chinese shoppers who expect
to bag unpackaged raw meat themselves and like

14 Chapter 1 Business Communication in the Digital Age

Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
to catch their own live frogs, fish, and turtles in open tanks.54 Other adjustments to local pref-
erences include payment modalities. McDonald’s and KFC’s parent Yum Brands are testing
mobile ordering and mobile payment. They want to match Chinese consumers’ digital connect-
edness to gain more fast-food business in China.55 Many traditional U.S. companies are global
players now and generate more profit abroad than at home.
Doing business in faraway countries means dealing with people who may be very
different from you. They may practice different religions, follow different customs, have
different lifestyles, and rely on different approaches in business. Now add the complications
of multiple time zones, vast distances between offices, and different languages. No wonder
global communicators can stumble. Take, for example, IKEA. Unprompted, the Swedish
furniture giant took its accommodation of Saudi Arabia’s strict religious rules so far that
it caused a backlash at home and the company had to apologize for acting against its own
values. IKEA had deleted women from some photos in its Saudi-targeted catalogs. 56
Successful communication in new markets requires developing new skills and attitudes.
These include cultural awareness, flexibility, and patience. Because these skills and attitudes
may be difficult to achieve, you will receive special communication training to help you deal
with intercultural business transactions.

Shrinking Management Layers


In traditional companies, information flows through many levels of managers. In response to
intense global competition and other pressures, however, innovative businesses have for years
been cutting costs and flattening their management hierarchies. This flattening means that fewer
layers of managers separate decision makers from line workers. In flat organizations, in which the
lines of communication are shorter, decision makers can react more quickly to market changes.
When GE Capital, General Electric’s financial services arm, split into four business units,
the reorganization spearheaded by the post–Jack Welch CEO, Jeffrey Immelt, met with skep-
ticism. GE Capital’s former chairman Denis Nayden exited, and the four unit heads started
reporting directly to the CEO. The organization became flatter. Immelt reasoned that he wanted
more immediate contact with the financial services teams.57 He also believed that the greater
number of direct reports would provide clarity for investors.
Despite this bold move, Immelt was forced to begin to shed GE Capital after the Great
Recession, slim GE’s operations, and return to the industrial conglomerate’s core business in
manufacturing.58 Restructured companies generally slash divisions and shrink management
layers to operate more efficiently.

Reality Check
Keeping the Organization Flat—A Core Value at Google
Shutterstock.com

“I work with employees around the world to figure out ways to maintain and enhance and
intararit/

develop our culture and how to keep the core values we had in the very beginning—a flat
organization, a lack of hierarchy, a collaborative environment—to keep these as we continue
to grow and spread them and filtrate them into our new offices around the world.”59

—Stacy Savides Sullivan, VP, people operations & chief culture officer at Google

An important factor in the flattening of management hierarchies was movement away from
mainframe computing. As recognized by Thomas Friedman in his bestselling book The World
Is Flat, the combination of the personal computer, the microprocessor, the Internet, fiber optics,
and, more recently, wireless networks “flipped the playing field.” Management moved away
from command and control to connecting and collaborating horizontally.60 This means that
work is organized so that people can use their own talents more wisely.61

Chapter 1 Business Communication in the Digital Age 15

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Today’s flatter organizations, however, also pose
greater communication challenges. In the past, author-
itarian and hierarchical management structures did
not require that every employee be a skilled commu-
nicator. Managers simply passed along messages to
the next level. Today, however, frontline employees as
well as managers participate in critical thinking and
lightwavemedia/Shutterstock.com

decision making. Nearly everyone is a writer and a


communicator.

Collaborative Environments
and Teaming
Teamwork has become a reality in business. Many
companies have created cross-functional teams to
empower employees and boost their involvement in decision making. Such stable teams of
people have learned to work well together over time. To generate new products, Johnson &
Johnson started forming small teams and charged each with tackling a cosmetic problem.
The acne team, composed of scientists along with marketing and production people, focused
on finding ways to help teenagers zap zits. A pigmentation team struggled to create prod-
ucts that evened out skin tone.62 Traditional teams helped turn around Simmons Bedding
Company a decade ago by reducing waste in operations, boosting sales, and improving the
relationships with dealers. Customer satisfaction and employee morale also soared.63
However, the complex and unpredictable challenges in today’s workplace require rapid
changes in course and greater flexibility, says Harvard management professor Amy Edmondson.
She argues that the new era of business requires a new strategy she calls teaming: “Teaming is
teamwork on the fly: a pickup basketball game rather than plays run by a team that has trained
as a unit for years.”64 This means that instead of traditional standing teams, organizations are
now forming ad hoc teams to solve particular problems. Such project-based teams disband once
they have accomplished their objectives. Although the challenges of making such diverse and
potentially dispersed teams function well are many, teaming is here to stay.
A sizable chunk of our future economy may rely on free agents who will be hired on a
project basis. This practice is reminiscent of filmmaking, in which creative talent gathers to
Ethics Check work on a feature film; after the wrap, the crew disperses to tackle the next movie, each with
a whole new team. In one of its reports, accounting firm PricewaterhouseCoopers envisions
Too Connected?
a future workplace in which companies hire a network of independent contractors for short-
Office workers use term projects,65 a far cry from today’s full-time and relatively steady jobs.
smartphones, e-mail, Whether companies form standing or ad hoc teams, individuals must work together and
voice mail, and text share information. Working relationships can become strained when individuals don’t share
messaging. Many are the same location, background, knowledge, or training. Some companies even hire commu-
literally always on call nication coaches to help teams get along. Such experts work to develop interpersonal, negotia-
and feel overwhelmed. tion, and collaboration techniques. However, companies would prefer to hire new workers who
What are the limits of already possess these skills. That is why so many advertisements for new employees say “must
connectedness, and possess good communication skills”—which you are learning in this book and this course.
what is the expected
response time for
various media? Is it fair Growing Workforce Diversity
to dodge an unpleasant In addition to pervasive communication technology, advanced team management, and distant
call by sending it to work environments, today’s workplace is changing in yet another area. The U.S. workforce is
voice mail or to delay becoming increasingly diverse. As shown in Figure 1.7, the white non-Hispanic population of
answering certain the United States is expected to drop from 62 percent in 2015 to 53 percent in 2035. Hispanics
e-mail messages? How will climb from 18 percent to 23 percent, while African Americans will hold steady at around
about text messages? 13 percent relative to the growing total U.S. population. Asians and Pacific Islanders will rise
from 5 percent to 7 percent.66

16 Chapter 1 Business Communication in the Digital Age

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Figure 1.7 Racial and Ethnic Makeup of U.S. Population, 2015-2055 (Projected)

Growing Population Diversity


70
62 2015 2035 2055
60
53
50 45
40
Percent

30 28
23
20 18
12 13 13
10 9
5 7

0
White Non- Hispanics African-Americans Asians and Pacific
Hispanics Islanders
Source: U.S. Census Bureau, Population Division, December 2014.

Women attain higher education in greater numbers than men do; women ages twenty-five
to thirty-four were 21 percent more likely than men to graduate from college and 48 percent
more likely to have completed graduate school.67 However, in many industries and in executive
positions, they are still the minority. According to the National Science Foundation, the gender
gap is most pronounced in business and industry, where women fill only 21 percent of jobs,
followed by the high-tech industry (25 percent), and science and engineering (27 percent).68 The
U.S. Bureau of Labor Statistics projects that overall women will hold steady at 47 percent of the
labor force by 2022, nearly unchanged from 2012.69
In addition to increasing numbers of minorities, the workforce will see a big jump in older
workers. By 2022, the number of workers aged fifty-five and older will have grown to more
than a quarter of the labor force, almost double the number in 2002.70 To this competition for
information-age jobs, add the influx of skilled immigrants. Despite barriers to immigration,
some experts predict that by 2030 roughly 500 million people will legally work outside their
home countries. This means that twice as many migrants, up from 250 million today, will seek
economic opportunities abroad, displaced by armed conflict, natural disasters, and climate
change.71 As a result of these and other demographic trends, businesses must create work
environments that value and support all people.
Communicating in this diverse work environment requires new attitudes and skills.
Acquiring these new employment skills is certainly worth the effort because of the benefits
diversity brings to consumers, work teams, and business organizations. A diverse staff is better
able to read trends and respond to the increasingly diverse customer base in local and world
markets.
In the workplace, diversity also makes good business sense. Teams made up of people with
various experiences are more likely to create the products consumers demand. Customers also
want to deal with companies that respect their values. They are more likely to say, “If you are a
company whose ads do not include me, or whose workforce does not include me, I will not buy
from you.” Learning to cooperate and communicate successfully with diverse coworkers should
be a major priority for all businesspeople.

Chapter 1 Business Communication in the Digital Age 17

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Chances are if you go to work in
the next five years, you may not
have to leave home—you’ll be one
of the millions of mobile workers
in the U.S. workforce.72 The rising
trend of these virtual workers is
fueled by technological advances
in smartphones, tablets, and BYOD
programs, in which workers like you
“bring your own devices” to use on
the job. Studies show that virtual
workers are happier and more
productive. However, working
without traditional offices creates
pixinoo/Shutterstock.com

unique challenges, including the


lack of face-to-face communication
with colleagues. What are some
ways virtual workers can effectively
communicate with stakeholders?

Virtual and Nonterritorial Offices


You may have heard people refer to the virtual office, a workspace that’s mobile and decentral-
ized. Today’s physical work environments are changing profoundly. Thanks largely to advances
in high-speed and wireless Internet access, millions of workers no longer report to nine-to-five
jobs that confine them to offices. They have flexible working arrangements so they can work at
home, on the road, and at the customer’s place of business. Meet the work shifter, a new breed
of telecommuter or, more broadly, teleworker, who remains outside the traditional office the
majority of the time. The “anytime, anywhere” office the work shifter needs requires only a
smartphone and a wireless connection.73
If the self-employed are factored in, teleworkers now represent almost 30 percent of the
U.S. working adult population.74 Reliable data tracking office road warriors are lacking, but as
many as 52 million employees—nearly a third of the U.S. workforce—could likely be working
from remote locations in the near future.75 Yahoo under Marissa Mayer’s leadership pulled
the plug on telecommuting, but Anthem has a third of its staff work remotely. The health care
provider claims that telework is a powerful recruitment incentive and that productivity has not
suffered.76
To save on office real estate, a number of companies such as American Express and drug
maker GlaxoSmithKline provide nonterritorial workspaces. Also known as mobile plat-
forms and hot desks, these unassigned workspaces are up for grabs. The first to arrive gets
the best desk and the corner window.77 Increasingly, work shifters and home office workers
resort to coworking as an alternative to holding business
meetings at the local coffee shop or in the living room.
Coworkers are professionals who share a communal
Open Office Rules Rules for sharing open workspaces:
office space on an as-needed basis. Although most
1. Don’t hang around. coworking spaces provide monthly memberships, some
2. Limit chitchat. offer day or hourly passes. Not just small businesses, but
3. Don’t sneak up on
also major corporations, such as GE, KPMG, PepsiCo,
anyone.
and Merck, are moving workers into trendy shared
4. Don’t eavesdrop or
otherwise spy on others. offices.78 WeWork and LiquidSpace are doing for office
5. Speak in a soft voice. real estate what Uber has started for ride sharing—a
6. Wear headphones. platform for users to offer and seek flexible access to
workspaces.

18 Chapter 1 Business Communication in the Digital Age

Copyright 2018 Cengage Learning. All Rights Reserved. May not be copied, scanned, or duplicated, in whole or in part. WCN 02-200-203
Even in more traditional offices, employees work in open-plan spaces with flexible
workstations, shared conference rooms, and boomerang-shaped desks that save space and
discourage territorial behavior while encouraging casual interactions as well as spontaneous
collaborations.

Information Flow and Media Choices LEARNING


OUTCOME 4
in Today’s Workplace Examine critically the
internal and external
You may want to connect with friends and family for a specific reason or just for fun.
flow of communication
However, businesspeople almost always communicate strategically—that is, purposefully,
in organizations through
hoping to achieve a particular outcome. Business communication functions can be summa-
formal and informal
rized in three simple categories: (a) to inform, (b) to persuade, and/or (c) to promote goodwill.
channels, explain the
Most business messages have one of these functions as their purpose. Informing or sharing
importance of effective
information is perhaps the most common communication function in all organizations
media choices, and
today. On the job you will have a dizzying array of media to help you share information and
understand how to
stay connected both internally and externally. You will need to know which medium is most
overcome typical
suitable to accomplish your goal and be able to distinguish between formal and informal
barriers to organizational
channels.
communication.

The Networked Workplace in a


Hyperconnected World
Social media and other information technology coupled with flatter hierarchies have greatly
changed the way people communicate internally and externally at work. One major shift is away
from one-sided, slow forms of communication such as hard-copy memos and letters to inter-
active, instant, less paper-based communication. Speeding up the flow of communication in
organizations are e-mail, instant messaging (IM), texting, blogging, and interacting with social
media such as Facebook, Twitter, and LinkedIn. Figure 1.8 shows a side-by-side comparison
between the traditional one-directional business communication model and today’s hypercon-
nected, many-to-many social media communication model.

Figure 1.8 Traditional vs. Social Media Communication Between Businesses and


Customers

Customers Customers

Traditional communication is
Social media
bidirectional/ social

fleeting and opaque,


support/service

communication is
marketing / PR

one-directional
persistent and
from company to
transparent,
customer and
bidirectional,
customer to company,
many-to-many
one-to-many or
many-to-one

TV, phone, mail, etc. Twitter, Facebook, etc.


Traditional Channels Social Channels
Businesses Businesses

Chapter 1 Business Communication in the Digital Age 19

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Fearing openly accessible social networks, many large organizations have developed their
own internal social media platforms behind corporate firewalls. These enterprise social networks
(e.g., Adobe’s Unicom) combine e-mail, phone, chat, presence technology, and other communi-
cation tools, as you will learn in Chapter 7. To stay connected on the go, business communica-
tors rely on mobile electronic devices and mobile apps that enhance work productivity.
Mobility and Interactivity. Mobility has revolutionized the way we communicate on
the job. Internet access is ever present, whether provided by cell phone companies or wireless
networks. Wireless access is increasingly blanketing entire office buildings, airports, hotels,
restaurants, school and college campuses, cities, and other public spaces.
Other forms of interactive and mobile communication in the contemporary workplace
are intranets (secured local area networks within organizations), corporate websites, audio
and video podcasting, videoconferencing, and Web chats. The latter is rapidly becoming the
preferred communication channel for online customer service. Consumers shopping online or
inquiring about billing or technical support use the company website and chat with customer
service representatives in real time by typing their questions. Live service agents respond with
typed replies.
Smart Devices. The revolution in mobile communication technology that we have come to
depend on is fueled by smart mobile electronics. They include smartphones, tablets, notebooks,
and more recently, wearable technology such as Google Glass and the Apple Watch.
To understand the pervasiveness of mobile technology, consider that the world population
now stands at 7.2 billion people; of those, 4.3 billion are mobile device users who own 7.5 billion
smart electronic gadgets. By 2019, worldwide mobile users are expected to reach 5.2 billion with
11.5 billion mobile devices at their disposal.79 Mobile access reached a tipping point in 2014,
overtaking traditional stationary Internet access.80 When Apple launched its phenomenally
successful iPad, the gadget was hailed as a game changer. Although consumer sales of the most
popular tablet have been eclipsed by phablets (large-screen smartphones), many businesses
choose iPads on the go because they are lighter and cheaper than laptops.
Ahead of the popular iPhone, the Android platform has taken the smartphone market by
storm worldwide. Android, primarily represented by Samsung devices, has grabbed a global
market share of almost 80 percent; Apple iOS has captured over 18 percent.81 Low-cost Android
handsets also dominate the smartphone market in Africa, India, and China. Thus, millions of
people access the Internet by mobile phone not only in industrialized nations but also in regions
of the world where smartphones provide the only online access.

Internal and External Communication


Although most businesses rely on e-mail and digital files for communication, they still produce
some paper-based documents. In certain situations, though, written documents may not be as
effective as oral communication. Each form of communication has advantages and disadvantages,
as summarized in Figure 1.9. These general rules apply whether the communication is directed
at audiences inside the organization or outside. Digital-age businesspeople must also anticipate
public scrutiny and potential leaks of information that may reach unintended audiences.
Internal communication includes exchanging ideas and messages with superiors, coworkers,
and subordinates. When those messages must be written, you will probably choose e-mail—
the most prevalent communication channel in the workplace today. Some of the functions of
internal communication are to issue and clarify procedures and policies, inform management
of progress, develop new products and services, persuade employees or management to make
changes or improvements, coordinate activities, and evaluate and reward employees. Brief
messages and status updates may be conveyed by text message or IM, especially when the writer
is traveling.
External communication is also handled by e-mail in most routine cases. When you
are communicating externally with customers, suppliers, the government, and the public,
e-mail correspondence is generally appropriate. Hard-copy letters sent by traditional snail
mail are becoming increasingly rare, especially under time constraints. However, some
businesses do create signed paper documents to be faxed, or they scan and e-mail them.

20 Chapter 1 Business Communication in the Digital Age

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Another random document with
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Smithers, John B. Steele, Wm. G. Steele, Stiles, Strouse, Stuart,
Sweat, Wadsworth, Ward, Wheeler, Chilton A. White, Joseph W.
White, Fernando Wood—60.
June 22—This bill was taken up in the Senate, when Mr.
Saulsbury moved this substitute:
That no person held to service or labor in one State, under the laws
thereof, escaping into another, shall, in consequence of any law or
regulation therein, be discharged from such service or labor, but
shall be delivered up on claim of the party to whom such service or
labor may be due; and Congress shall pass all necessary and proper
laws for the rendition of all such persons who shall so, as aforesaid,
escape.
Which was rejected—yeas 9, nays 29, as follows:
Yeas—Messrs. Buckalew, Carlile, Cowan, Davis, McDougall,
Powell, Richardson, Riddle, Saulsbury—9.
Nays—Messrs. Anthony, Brown, Chandler, Clark, Conness, Dixon,
Foot, Grimes, Hale, Harlan, Harris, Hicks, Howard, Howe, Johnson,
Lane of Indiana, Lane of Kansas, Morgan, Morrill, Pomeroy,
Ramsey, Sprague, Sumner, Ten Eyck, Trumbull, Van Winkle, Wade,
Willey—29.
Mr. Johnson, of Maryland, moved an amendment to substitute a
clause repealing the act of 1850; which was rejected—yeas 17, nays
22, as follows:
Yeas—Messrs. Buckalew, Carlile, Cowan, Davis, Harris, Hicks,
Johnson, Lane of Indiana, McDougall, Powell, Richardson, Riddle,
Saulsbury, Ten Eyck, Trumbull, Van Winkle, Willey—17.
Nays—Messrs. Anthony, Brown, Chandler, Clark, Conness, Dixon,
Fessenden, Foot, Grimes, Hale, Harlan, Howard, Howe, Lane of
Kansas, Morgan, Morrill, Pomeroy, Ramsey, Sprague, Sumner,
Wade, Wilson—22.
The bill then passed—yeas 27, nays 12, as follows:
Yeas—Messrs. Anthony, Brown, Chandler, Clark, Conness, Dixon,
Fessenden, Foot, Grimes, Hale, Harlan, Harris, Hicks, Howard,
Howe, Lane of Indiana, Lane of Kansas, Morgan, Morrill, Pomeroy,
Ramsey, Sprague, Sumner, Ten Eyck, Trumbull, Wade, Wilson—27.
Nays—Messrs. Buckalew, Carlile, Cowan, Davis, Johnson,
McDougall, Powell, Richardson, Riddle, Saulsbury, Van Winkle,
Willey—12.
Abraham Lincoln, President, approved it, June 28, 1864.
Seward as Secretary of State.

Wm. H. Seward was a master in diplomacy and Statecraft, and to


his skill the Unionists were indebted for all avoidance of serious
foreign complications while the war was going on. The most notable
case coming under his supervision was that of the capture of Mason
and Slidell, by Commodore Wilkes, who, on the 8th of November,
1861, had intercepted the Trent with San Jacinto. The prisoners were
Confederate agents on their way to St. James and St. Cloud. Both had
been prominent Senators, early secessionists, and the popular
impulse of the North was to hold and punish them. Both Lincoln and
Seward wisely resisted the passions of the hour, and when Great
Britain demanded their release under the treaty of Ghent, wherein
the right of future search of vessels was disavowed, Seward yielded,
and referring to the terms of the treaty, said:
“If I decide this case in favor of my own Government, I must
disavow its most cherished principles, and reverse and forever
abandon its essential policy. The country cannot afford the sacrifice.
If I maintain those principles and adhere to that policy, I must
surrender the case itself.”
The North, with high confidence in their President and Cabinet,
readily conceded the wisdom of the argument, especially as it was
clinched in the newspapers of the day by one of Lincoln’s homely
remarks: “One war at a time.” A war with Great Britain was thus
happily avoided.
With the incidents of the war, however, save as they affected
politics and politicians, this work has little to do, and we therefore
pass the suspension of the writ of habeas corpus, which suspension
was employed in breaking up the Maryland Legislature and other
bodies when they contemplated secession, and it facilitated the arrest
and punishment of men throughout the North who were suspected of
giving “aid and comfort to the enemy.” The alleged arbitrary
character of these arrests caused much complaint from Democratic
Senators and Representatives, but the right was fully enforced in the
face of every form of protest until the war closed. The most
prominent arrest was that of Clement L. Vallandigham, member of
Congress from Ohio, who was sent into the Southern lines. From
thence he went to Canada, and when a candidate for Governor in
Ohio, was defeated by over 100,000 majority.
Financial Legislation—Internal Taxes.

The Financial legislation during the war was as follows:


1860, December 17—Authorized an issue of $10,000,000 in
Treasury notes, to be redeemed after the expiration of one year
from the date of issue, and bearing such a rate of interest as may be
offered by the lowest bidders. Authority was given to issue these
notes in payment of warrants in favor of public creditors at their par
value, bearing six per cent. interest per annum.
1861, February 8—Authorized a LOAN of $25,000,000, bearing
interest at a rate not exceeding six per cent. per annum, and
reimbursable within a period not beyond twenty years nor less than
ten years. This loan was made for the payment of the current
expenses, and was to be awarded to the most favorable bidders.
March 2—Authorized a LOAN of $10,000,000, bearing interest at a
rate not exceeding six per cent. per annum, and reimbursable after
the expiration of ten years from July 1, 1861. In case proposals for the
loan were not acceptable, authority was given to issue the whole
amount in Treasury notes, bearing interest at a rate not exceeding
six per cent. per annum. Authority was also given to substitute
Treasure notes for the whole or any part of the loans for which the
Secretary was by law authorized to contract and issue bonds, at the
time of the passage of this act, and such treasury notes were to be
made receivable in payment of all public dues, and redeemable at
any time within two years from March 2, 1861.
March 2—Authorized an issue, should the Secretary of the
Treasury deem it expedient, of $2,800,000 in coupon BONDS, bearing
interest at the rate of six per cent. per annum, and redeemable in
twenty years, for the payment of expenses incurred by the Territories
of Washington and Oregon in the suppression of Indian hostilities
during the year 1855–’56.
July 17—Authorized a loan of $250,000,000, for which could be
issued BONDS bearing interest at a rate not exceeding 7 per cent. per
annum, irredeemable for twenty years, and after that redeemable at
the pleasure of the United States.
Treasury notes bearing interest at the rate of 7.30 per cent. per
annum, payable three years after date; and
United States NOTES without interest, payable on demand, to the
extent of $50,000,000. (Increased by act of February 12, 1862, to
$60,000,000.)
The bonds and treasury NOTES to be issued in such proportions of
each as the Secretary may deem advisable.
August 5—Authorized an issue of BONDS bearing 6 per cent.
interest per annum, and payable at the pleasure of the United States
after twenty years from date, which may be issued in exchange for
7.30 treasury notes; but no such bonds to be issued for a less sum
than $500, and the whole amount of such bonds not to exceed the
whole amount of 7.30 treasury notes issued.
February 6, 1862—Making $50,000,000 of notes, of
denominations less than $5, a legal tender, as recommended by
Secretary Chase, was passed January 17, 1862. In the House it
received the votes of the Republicans generally, and 38 Democrats.
In the Senate it had 30 votes for to 1 against, that of Senator Powell.
1862, February 25—Authorized the issue of $15,000,000 in legal
tender United States NOTES, $50,000,000 of which to be in lieu of
demand notes issued under act of July 17, 1861, $500,000,000 in 6
per cent. bonds, redeemable after five years, and payable twenty
years from date, which may be exchanged for United States notes,
and a temporary loan of $25,000,000 in United States notes for not
less than thirty days, payable after ten days’ notice at 5 per cent.
interest per annum.
March 17—Authorized an increase of TEMPORARY LOANS of
$25,000,000, bearing interest at a rate not exceeding 5 per cent. per
annum.
July 11—Authorized a further increase of TEMPORARY LOANS of
$50,000,000, making the whole amount authorized $100,000,000.
March 1—Authorized an issue of CERTIFICATES OF INDEBTEDNESS,
payable one year from date, in settlement of audited claims against
the Government. Interest 6 per cent. per annum, payable in gold on
those issued prior to March 4, 1863, and in lawful currency on those
issued on and after that date. Amount of issue not specified.
1862, July 11—Authorized an additional issue of $150,000,000
legal tender NOTES, $35,000,000 of which might be in
denominations less than five dollars. Fifty million dollars of this
issue to be reserved to pay temporary loans promptly in case of
emergency.
July 17—Authorized an issue of NOTES of the fractional part of one
dollar, receivable in payment of all dues, except customs, less than
five dollars. Amount of issue not specified.
1863, January 17—Authorized the issue of $100,000,000 in
United States NOTES for the immediate payment of the army and
navy; such notes to be a part of the amount provided for in any bill
that may hereafter be passed by this Congress. The amount in this
resolution is included in act of March 3, 1863.
March 3—Authorized a LOAN of $300,000,000 for this and
$600,000,000 for next fiscal year, for which could be issued bonds
running not less than ten nor more than forty years, principal and
interest payable in coin, bearing interest at a rate not exceeding 6 per
cent. per annum, payable on bonds not exceeding $100, annually,
and on all others semi-annually. And Treasury notes (to the
amount of $400,000,000) not exceeding three years to run, with
interest not over 6 per cent. per annum, principal and interest
payable in lawful money, which may be made a legal tender for their
face value, excluding interest, or convertible into United States notes.
And a further issue of $150,000,000 in United States NOTES for the
purpose of converting the Treasury notes which may be issued under
this act, and for no other purpose. And a further issue, if necessary,
for the payment of the army and navy, and other creditors of the
Government, of $150,000,000 in United States NOTES, which amount
includes the $100,000,000 authorized by the joint resolution of
Congress, January 17, 1863. The whole amount of bonds, treasury
notes, and United States notes issued under this act not to exceed the
sum of $900,000,000.
March 3—Authorized to issue not exceeding $50,000,000 in
FRACTIONAL CURRENCY, (in lieu of postage or other stamps,)
exchangeable for United States notes in sums not less than three
dollars, and receivable for any dues to the United States less than five
dollars, except duties on imports. The whole amount issued,
including postage and other stamps issued as currency, not to exceed
$50,000,000. Authority was given to prepare it in the Treasury
Department, under the supervision of the Secretary.
1864, March 3—Authorized, in lieu of so much of the loan of
March 3, 1863, a LOAN of $200,000,000 for the current fiscal year,
for which may be issued bonds redeemable after five and within forty
years, principal and interest payable in coin, bearing interest at a rate
not exceeding 6 per cent. per annum, payable annually on bonds not
over $100, and on all others semi-annually. These bonds to be
exempt from taxation by or under State or municipal authority.
1864, June 30—Authorized a LOAN of $400,000,000, for which
may be issued bonds, redeemable after five nor more than thirty
years, or if deemed expedient, made payable at any period not more
than forty years from date—interest not exceeding six per cent. semi-
annually, in coin.
Pending the loan bill of June 22, 1862, before the House in
Committee of the Whole, and the question being on the first section,
authorizing a loan of $400,000,000, closing with this clause:
And all bonds, Treasury notes, and other obligations of the United
States shall be exempt from taxation by or under state or municipal
authority.
There was a sharp political controversy on this question, but the
House finally agreed to it by 77 to 71. Party lines were not then
distinctly drawn on financial issues.

INTERNAL TAXES.

The system of internal revenue taxes imposed during the war did
not evenly divide parties until near its close, when Democrats were
generally arrayed against these taxes. They cannot, from the record,
be correctly classed as political issues, yet their adoption and the
feelings since engendered by them, makes a brief summary of the
record essential.
First Session, Thirty-Seventh Congress.

The bill to provide increased revenue from imports, &c., passed the
House August 2, 1861—yeas 89, nays 39.
Same day, it passed the Senate—yeas 34, nays 8, (Messrs.
Breckinridge, Bright, Johnson, of Missouri, Kennedy, Latham, Polk,
Powell, Saulsbury.)[24]
Second Session, Thirty-Seventh Congress.

The Internal Revenue Act of 1862.


1862, April 8—The House passed the bill to provide internal
revenue, support the Government, and pay interest on the public
debt—yeas 126, nays 15. The Nays were:
Messrs. William Allen, George H. Browne, Buffinton, Cox,
Kerrigan, Knapp, Law, Norton, Pendleton, Richardson, Shiel,
Vallandigham, Voorhees, Chilton A. White, Wickliffe—15.
June 6—The bill passed in the Senate—yeas 37, nay 1, (Mr.
Powell.)
First Session Thirty-Eighth Congress.

Internal Revenue Act of 1864.


April 28—The House passed the act of 1864—yeas 110, nays 39.
The Nays were:
Messrs. James C. Allen, William J. Allen, Ancona, Brooks,
Chanler, Cox, Dawson, Denison, Eden, Eldridge, Finck, Harrington,
Benjamin G. Harris, Herrick, Philip Johnson, William Johnson,
Knapp, Law, Le Blond, Long, Marcy, McDowell, McKinney, James
R. Morris, Morrison, Noble, John O’Neil, Pendleton, Perry,
Robinson, Ross, Stiles, Strouse, Stuart, Voorhees, Ward, Chilton A.
White, Joseph W. White, Fernando Wood—39.
June 6—The Senate amended and passed the bill—yeas 22, nays 3,
(Messrs. Davis, Hendricks, Powell.)
The bill, as finally agreed upon by a Committee of Conference,
passed without a division.
Second Session, Thirty-Seventh Congress.

Tariff Act of 1862.


In House—1862, July 1—The House passed, without a division, a
bill increasing temporarily the duties on imports, and for other
purposes.
July 8—The Senate passed it without a division.

THE TARIFF ACT OF 1864.

June 4—The House passed the bill—yeas 81, nays 28. The Nays
were:
Messrs. James C. Allen, Bliss, James S. Brown, Cox, Edgerton,
Eldridge, Finck, Grider, Harding, Harrington, Chas. M. Harris,
Herrick, Holman, Hutchins, Le Blond, Long, Mallory, Marcy,
McDowell, Morrison, Noble, Pendleton, Perry, Pruyn, Ross,
Wadsworth, Chilton A. White, Joseph W. White—28.
June 17—The Senate passed the bill—yeas 22, nays 5, (Messrs.
Buckalew, Hendricks, McDougall, Powell, Richardson.)
Second Session, Thirty-Seventh Congress.

Taxes in Insurrectionary Districts, 1862.


1862, May 12—The bill for the collection of taxes in the
insurrectionary districts passed the Senate—yeas 32, nays 3, as
follows:
Yeas—Messrs. Anthony, Browning, Chandler, Clark, Davis, Dixon,
Doolittle, Fessenden, Foot, Foster, Harlan, Harris, Henderson,
Howe, King, Lane of Indiana, Lane of Kansas, Latham, McDougall,
Morrill, Nesmith, Pomeroy, Rice, Sherman, Sumner, Ten Eyck,
Trumbull, Wade, Wilkinson, Willey, Wilson, of Massachusetts,
Wright—32.
Nays—Messrs. Howard, Powell, Saulsbury—3.
May 28—The bill passed House—yeas 98, nays 17. The Nays were:
Messrs. Biddle, Calvert, Cravens, Johnson, Kerrigan, Law,
Mallory, Menzies, Noble, Norton, Pendleton, Perry, Francis
Thomas, Vallandigham, Ward, Wickliffe, Wood—17.
The Democrats who voted Aye were:
Messrs. Ancona, Baily, Cobb, English, Haight, Holman, Lehman,
Odell, Phelps, Richardson, James S. Rollins, Sheffield, Smith, John
B. Steele, Wm. G. Steele.

TAXES IN INSURRECTIONARY DISTRICTS, 1864.

In Senate, June 27—The bill passed the Senate without a division.


July 2—It passed the House without a division.
Many financial measures and propositions were rejected, and we
shall not attempt to give the record on these. All that were passed
and went into operation can be more readily understood by a glance
at our Tabulated History, in Book VII., which gives a full view of the
financial history and sets out all the loans and revenues. We ought
not to close this review, however, without giving here a tabulated
statement, from “McPherson’s History of the Great Rebellion,” of
The Confederate Debt.

December 31, 1862, the receipts of the Treasury from the


commencement of the “Permanent Government,” (February 18,
1862,) were as follows:

RECEIPTS.

Patent fund $13,920 00


Customs 668,566 00
Miscellaneous 2,291,812 00
Repayments of disbursing officers 3,839,263 00
Interest on loans 26,583 00
Call loan certificates 59,742,796
00
One hundred million loan 41,398,286
00
Treasury notes 215,554,885
00
Interest bearing notes 113,740,000
00
War tax 16,664,513
00
Loan 28th of February, 1861 1,375,476 00
Coin received from Bank of Louisiana 2,539,799 00

Total $457,855,704
00
Total debt up to December 31, 1862 556,105,100
00
Estimated amount at that date necessary to support the 357,929,229
Government to July, 1868, was 00
Up to December 31, 1862, the issues of the Treasury were:

Notes $440,678,510 00
Redeemed 30,193,479 50

Outstanding $410,485,030 50

From January 1, 1863, to September 30, 1863, the receipts of the


Treasury were:

For 8 per cent. stock $107,292,900 70


For 7 per cent. stock 38,757,650 70
For 6 per cent. stock 6,810,050 00
For 5 per cent. stock 22,992,900 00
For 4 per cent. stock 482,200 00
Cotton certificates 2,000,000 00
Interest on loans 140,210 00
War tax 4,128,988 97
Treasury notes 391,623,530 00
Sequestration 1,862,550 27
Customs 934,798 68
Export duty on cotton 8,101 78
Patent fund 10,794 04
Miscellaneous, including repayments by disbursing officers 24,498,217 93

Total $601,522,893 12
EXPENDITURES DURING THAT TIME.

War Department $377,988,244 00


Navy Department 38,437,661 00
Civil, miscellaneous, etc. 11,629,278 00
Customs 56,636 00
Public debt 32,212,290 00
Notes cancelled and redeemed 59,044,449 00

Total expenditures $519,368,559 00


Total receipts 601,522,893 00

Balance in treasury $82,154,334 00

But from this amount is to be deducted the amount of all Treasury


notes that have been funded, but which have not yet received a true
estimation, $65,000,000; total remaining, $17,154,334.

CONDITION OF THE TREASURY, JANUARY 1, 1864.

Jan. 25—The Secretary of the Treasury (C. G. Memminger) laid


before the Senate a statement in reply to a resolution of the 20th,
asking information relative to the funded debt, to call certificates, to
non-interest and interest-bearing Treasury notes, and other financial
matters. From this it appears that, January, 1864, the funded debt
was as follows:
Act Feb. 28, 1861, 8 ⅌ cent., 15,000,000
00
Act May 16, 1861, 8 ⅌ cent., 8,774,900
00
Act Aug. 19, 1861, 8 ⅌ cent., 100,000,000
00
Act Apr. 12, 1862, 8 ⅌ cent., 3,612,300 00
Act Feb. 20, 1863, 8 ⅌ cent., 95,785,000
00
Act Feb. 20, 1863, 7 ⅌ cent., 63,615,750
00
Act Mar. 23, 1863, 6 ⅌ cent., 2,831,700 00
Act April 30, 1863 (cotton interest coupons) 8,252,000
00
$297,871,650
00
Call certificates 89,206,770 00
Non-interest bearing Treasury notes
outstanding:
Act May 16, 1861—Payable two years after 8,320,875
date 00
Act Aug. 19, 1861—General currency 189,719,251
00
Act Oct. 13, 1861—All denominations 131,028,366
50
Act March 23—All denominations 391,829,702
50
720,898,095
00

Interest-bearing Treasury notes outstanding 102,465,450 00


Amount of Treasury notes under $5,
outstanding Jan. 1, 1864, viz:
Act April 17, 1862, denominations of $1 and
$2 4,860,277 50
Act Oct. 13, 1862, $1 and $2 2,344,800
00
Act March 23, 1863, 50 cents 3,419,000
00
Total under $5 10,424,077 50

Total debt, Jan. 1, 1864 $1,220,866,042


50

ITS CONDITION, MARCH 31, 1864.

The Register of the Treasury, Robert Tyler, gave a statement,


which appeared in the Richmond Sentinel after the passage of the
funding law, which gives the amount of outstanding non-interest-
bearing Treasury notes, March 31, 1864, as $796,264,403, as follows:

Act May 16, 1861—Ten-year notes $7,201,375 00


Act Aug. 19, 1861—General currency 154,365,631 00
Act Apr. 19, 1862—ones and twos 4,516,509 00
Act Oct. 18, 1862—General currency 118,997,321 50
Act Mar. 23, 1863—General currency 511,182,566 50

Total $796,264,403 00

He also publishes this statement of the issue of non-interest-


bearing Treasury notes since the organization of the “Confederate”
government:

Fifty cents $911,258 50


Ones 4,882,000 00
Twos 6,086,320 00
Fives 79,090,315 00
Tens 157,982,750 00
Twenties 217,425,120 00
Fifties 188,088,200 00

Total $973,277,363 50
Confederate Taxes.

We also append as full and fair a statement of Confederate taxes as


can be procured, beginning with a summary of the act authorizing
the issue of Treasury notes and bonds, and providing a war tax for
their redemption:

THE TAX ACT OF JULY, 1861.

The Richmond Enquirer gives the following summary of the act


authorizing the issue of Treasury notes and bonds, and providing a
war tax for their redemption:
Section one authorizes the issue of Treasury notes, payable to
bearer at the expiration of six months after the ratification of a treaty
of peace between the Confederate States and the United States. The
notes are not to be of a less denomination than five dollars, to be re-
issued at pleasure, to be received in payment of all public dues,
except the export duty on cotton, and the whole issue outstanding at
one time, including the amount issued under former acts, are not to
exceed one hundred millions of dollars.
Section two provides that, for the purpose of funding the said
notes, or for the purpose of purchasing specie or military stores, &c.,
bonds may be issued, payable not more than twenty years after date,
to the amount of one hundred millions of dollars, and bearing an
interest of eight per cent. per annum. This amount includes the thirty
millions already authorized to be issued. The bonds are not to be
issued in less amounts than $100, except when the subscription is for
a less amount, when they may be issued as low as $50.
Section three provides that holders of Treasury notes may at any
time exchange them for bonds.

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