IMTS BBA (Business communication) by IMTS INSTITUTE

I ns t i t ut eo fMa na g e me nt & Te c hni c a lSt udi e s Bus i ne s sCo mmuni c a t i o n

500

Ba c h e l o ro fBu s i n e s sAd mi n i s t r a t i o n www. i mt s i ns t i t ut e . c om

IMTS (ISO 9001-2008 Internationally Certified)

BBA-BUSINESS COMMUNICATION

BUSINESS COMMUNICATION

FOR MORE DETAILS VISIT US ON WWW.IMTSINSTITUTE.COM OR CALL ON +919999554621

BUSINESS COMMUNICATION

UNITS

CONTENTS

PAGE NO

BUSINESS COMMUNICATION

01-19

KINDS OF BUSINESS LETTERS

20-64

FOR MORE DETAILS VISIT US ON WWW.IMTSINSTITUTE.COM OR CALL ON +919999554621

BUSINESS COMMUNICATION

UNIT I BUSINESS COMMUNICATION UNIT STRUCTURE 1:0 Introduction 1:1 Meaning 1:2 Objectives of communication 1:3 Communication Process 1:4 Channels or Types of Communication. 1:5 Barriers to Communication 1:6

Essentials of Effective Business letter

1:7 The Layout and Design of a Business Letter 1:8 Kinds of Business Letters

SELF- ASSESSMENT QUESTIONS: I 1:9 Summary Unit Questions Recommendations for further readings Answers of SelfAssessment Questions

FOR MORE DETAILS VISIT ON WWW.IMTSINSTITUTE.COM OR CALL ON +91- 999955462

BUSINESSCOMMUNICATION

UNIT - I BUSINESS COMMUNICATION 1:0

INTRODUCTION

The word “Communication” is derived from the Latin word “communico” which means “T o share” . It is the act of sharing or imparting a share of anything. In its vital sense, it means a sharing of ideas and feelings in a mood of mutual understanding. It is a two-way process in which a speaker must have a listener to share the experience. Communication is the tool with which we exercise influence on others, bring about changes in the attitudes and views of our associates, motivate them and establish and maintain relations with them. Without communication there would not be any interaction between persons. Hence, there cannot be a Government or society without communication. The ability of communication depends upon the advancement of the society he lives. Among human beings, the more civilized and advance groups have higher com-munication ability than the less advanced groups. It is found that about 75% of the effective hours of a man is being spent on communication i.e., speaking, writing, listening, read-ing etc. 1:1 Meaning Communication is the act of influencing and inducing others to interpret an idea in the manner intended by the speaker or writer. Communication is an exchange of facts, ideas, opinions or emotions by two or more persons. It is the process by which information is transmitted between individuals and/or organisations so that an understanding response results. We shall now see some of the important definitions given by eminent authorities on the subject.

Definition Definition of W.H.Newman and C.F.Summer Jr “Communication is a exchange of facts, ideas, opinions or emotions by two or more persons”. Definition of Fred G.Meyer. According to Fred G.Meyer, “Communication is the intercourse by words, letters or messages, intercourse of thoughts or opinions. It is the act of making one’s ideas and opinions known to others.

1:2 Objectives of communication Communication is a process through which different persons are connected to each other in such a manner to achieve a common objective.

FOR MORE DETAILS VISIT US ON WWW.IMTSINSTITUTE.COM OR CALL ON +919999554621

BUSINESSCOMMUNICATION

Without communication, group activity is impossible. It helps the members to co-ordinate with each other, exchange their ideas and thereby to make progress.

Information:

One of the important objectives of communication is passing or receiving information about a particular fact or circumstance. Every organisation whether a small or large, a complex or a simple require information which is required to be communicated. Top-level management personnel require complete, accurate and precise information to plan and organise. Employees become very efficient and responsible if they know well about the various aspects of an enterprise. It can be done either through spoken or written language or by using any other system of signs. Information required for daily work can be given orally. If large groups have to be informed, a meeting may be called. Information that are required for the organisation are normally obtained from the sources like old files, personal observation, Radio, TV, Cinema, Newspapers, Periodicals, Pamphlets, Government publications, Chambers of Commerce, meetings, seminars and conferences, personal interviews with people, questionnaire and trade fairs and exhibitions . 2.

Advice:

Advice is also a kind of information. It means opinion given as to the action to be taken. Advice is normally given to a person either to influence his opinion or his behaviour. It may prove helpful, but it may also lead to disaster. So to make advice effective, while offering advice, the adviser should keep the following points in mind: 1. Advice should be related to aspecific piece of work. 2. It should meet the needs of the recipient. 3. It should not make the recipient to feel inferior. 4. The adviser should make the recipient to feel that he is being advised for his own betterment. 3.

Order:

Order is an authoritative communication. Orders are absolutely necessary for any organisation irrespective of its nature and size. It a directive to somebody, normally a subordinate, to do something, to alter the course of something he has already done, or not to do something. An order to be effective-

1. Should be clear and complete, 2. Should be given in a friendly manner, 3. Its execution should be possible.

FOR MORE DETAILS VISIT US ON WWW.IMTSINSTITUTE.COM OR CALL ON +919999554621

BUSINESSCOMMUNICATION

Suggestion:

The term suggestion means proposing something for acceptance or rejection. Communication is used to convey suggestion or ideas. This is being constantly done in all human groups. Someone or the other is making suggestions and other react to them . This happens in any social group like a family, office, factory, State, Nation etc. Effective communication promotes the acceptance and trial of good suggestions. Subordinates normally give suggestions. This is because, they are the one’s who are actually involved in the work and have a better understanding of the shortcomings and can make useful suggestions for improvements. That is why, in big concerns suggestions are collected at regular intervals by means of a suggestion box. Such suggestions are known as upward communication. 5.

Persuasion:

Including, compelling or promoting a person to act mostly in a positive way is known as persuasion. Persuasion is an important objective of communication. Management try to persuade their workers to put in their best effort; sellers persuade their customers to buy etc. It takes place through some kind of communication. Persuasion is more easily done by a person who-enjoys respect and confidence of those whom he wishes to persuade. However, if persuasion is to be effective, they must not be conscious of being persuaded. 6. Education: Education involves imparting instruction, character building, enriching mental faculties, giving training to human b e i n g s e t c . I t a i m s a t w i d e n i n g t h e k n o w l e d g e a n d improving skills. It is carried on at various levels of management namely, top level, employees’ level and at the level of outside public. Employees are trained essentially by communication. All education takes place by means of communication. 7. Warning: Warning is a forceful means of communication. It may be given orally or in writing. Very often, we come across notices like “No smoking”, “Beware of dogs’, ‘Danger ’ etc. These are some warnings or cautions. In offices and factories, higher officials give warnings to their subordinates, by issue of memos. 8.

Motivation:

Inspiring the interest in their job in the minds of the employees in known as motivation. If the people are adequately motivated, they will have high morale and this will be low if the level of motivation is low. Low morale is the basic cause for indiscipline. Motivation determines the behaviour of a person to a greater extent. In motivation, employees are motivated in such a manner to work willingly and eagerly. A motivated worker does not need much supervision. 9.

Counseling:

Counseling is done by a man of greater skill or knowledge on some specific subject and he offers his counsel without any personal interest. Companies, which are inter-ested in their employees’ welfare, have centres to counsel their employees. It is very much similar to giving advice. However, there are some differences between the two also. They are-

FOR MORE DETAILS VISIT US ON WWW.IMTSINSTITUTE.COM OR CALL ON +919999554621

BUSINESSCOMMUNICATION

Counseling is objective and impersonal, whereas advice is personal touch.

ii)

Counsel is almost professional, whereas advice is not so, and

iii). Counsel is eagerly sought, whereas advice is very often unwelcome. 10.

Morale Boosting:

Morale is the term usually applied to armed forces during war time and to sports and athletic teams. It refers to team spirit and co-operation of people for a common purpose. Its importance has been realised by the management only recently. The management feels that if the morale is high, production would be higher and on the other hand if it were low, the production would also be low. It is already stated that motivation and morale are inter-connected and dependant on each other. If the workers are highly motivated, morale is also said to be high. On the other hand, if the degree of motivation is low, the morale is also said to be low. 11.

Appreciation:

Praising of initiative, good effort and work by employees is known as appreciation. It is very useful for creating a good attitude. It may be conveyed orally or in writing. If given publicity, it will have better effect. 1:3 COMMUNICATION PROCESS Communication is a process whereby one person or one group conveys some information to another person or to another social group. Communication is a social process for exchanging information and establishing understanding between two or more parties. Conceptually, communication is seen as a twoway process by which people communicate with one another. The sender, who creates a message designed to elicit a specific response from the receiver, initiates communication. The receiver interprets the message according to his own understanding and sends a message back to the sender. If the purpose of the sender and the response of the receiver are inconsistent, the communication process will fail, and the sender may wish to initiate the process again with some modifications to the message. Thus, the nature of communication is considered as a continuous, inter-personal process As shown in the following figure, the sender of the communication starts with and idea to be shared with the receiver. Using a set of encoding skills, the sender translates the idea into a transmittable message. Employing encoding skills, the receiver converts the idea into a feedback message to the sender. The sender now uses decoding skills to translate the feedback and compares that with the original idea. The sender determines whether the message was properly received and understood. Often, understanding is not achieved and the sender must try again. The communication process often breaks down because the process is replete with barriers to communication.

1:4 CHANNELS OR TYPES OF COMMUNICATION.

FOR MORE DETAILS VISIT US ON WWW.IMTSINSTITUTE.COM OR CALL ON +919999554621

BUSINESSCOMMUNICATION

Types of communication can be discussed under the following two broad heads. 1.

On the basis of organisational structure: 1. Formal Communication, and 2. Informal Communication. 2. On the basis of media used: 1. Written Communication, and 2. Oral Communication 1.

Organisational Structure

On the basis of organisational structure, communication can be further classified into two namely, 1. 2.

Formal Communication, and Informal Communication

We shall now describe them briefly. 1.

Formal Communication:

Formal communication takes place via formal channels of the organisational structure established by the management. These channels are deliberately created for regulating the communication flow and to link various parts of the organisation. They are helpful for performing functions like planning, decision-making, co-ordination and control. In a formal communication system, matters with regard to who should communicate, what, when and how to be communicated and to whom to be communicated are all clearly defined. The formal organisation chart describes the formal lines of authority, power, responsibility and accountability of organisational members. All these relationships involve communication. Formal communications are in writing. There are three forms of formal communication namely 1. Downward, 2. Upward, and 3. Horizontal. 1.

Downward Communication:

Communication is said to be downward when it moves from the top to the bottom. Downward channels are used for passing on managerial decisions, plans, policies and programmes to subordinates down the line for their understanding and implementation . Downward communications are used by the superiors to convey their orders, instructions and directions to their subordinates. In the words of D.Katz and R.L.Kahn, the purpose of downward communication are to1.

Give job instructions.

Create an understanding of the work and its relations with other tasks.

Inform about procedures.

FOR MORE DETAILS VISIT US ON WWW.IMTSINSTITUTE.COM OR CALL ON +919999554621

BUSINESSCOMMUNICATION

Inform subordinates about their performance.

Indoctrinate

the

workers

organisational goals. However, downward communication suffers from certain drawbacks. They are.. 1.

It develops an authoritative atmosphere that might be detrimental to morale. 2.

As information passes through the various levels of hierarchy, it might be distorted, misinterpreted etc.,

2. Upward Communication: Communication is said to be upward when it flows from the subordinates to the top management . Upward communication is used by subordinates for transmitting information, ideas, views and requests to their superiors on matters relating to their jobs, responsibilities etc.,. Upward communications are also used to convey views, suggestions, grievances and problems of subordinates to their superiors. It enables the subordinates to communicate to the superiors the progress of the work and response to the work assigned to them. Upward communication may be oral or written. It also enables the management to know he extent to which the sub-ordinates understand the policies and programmes of the or-ganisation. 3. Horizontal Communication: Communication is horizontal when it flows between individuals at the same operational level i.e.,. between two departmental heads. The purpose of the horizontal communication is to enable managers and others of the same rank to interact on important matters, to exchange informa-tion and co-ordinate their activities without referring all matters to the top level management

2. Informal Communication Informal Communication is free from all the formalities of formal communication. It is based on the informal relationship among the members of the organisation. Informal communication is usually oral and may be conveyed by a simple gesture, glance, nod or smile. The informal relationship that supplements the formal organisational relationship is referred to as the ‘grapevine’. According to H.Koontz and O’Donnel,

FOR MORE DETAILS VISIT US ON WWW.IMTSINSTITUTE.COM OR CALL ON +919999554621

BUSINESSCOMMUNICATION

â&#x20AC;&#x153; the grapevine, of course, thrives on information not openly available to the entire group, whether because it is regarded as confidential, or because formal lines of com-munication are inadequate to disperse it, or because it is of the kind that would never be formally disclosedâ&#x20AC;?. Informal communications are made by members of the organisation to transfer information both on the matters of task related and non-task related. These communications are free from any trappings of authority and status differentials. Informal communications often serve as supplement to formal communications. Managers and others may sometimes pass on information informally which they would not like to transfer formally for strategic and practical reasons. II.

Media Used: On the basis of media used, communication can be classified into four

namely 1. 2. 3. 4.

Oral communication Written Communication Non-verbal Communication and Audio-Visual Communication

1. Oral Communication Oral communication refers to face to face communication. It offers interchange of ideas at the personnel level. There can be questions and answers . The sender and receiver of the message are in direct contact. If the listener does not understand the message, he can ask for a clarification or raise questions and get the answers. If matters are to be conveyed within an organisation, oral communication is considered as the best as well as the cheapest method of communication. Especially, it is of vital importance in handling difficult or complicated situations. Merits of Oral Communication Merits of oral communication are as follows: 1.

It is economical communication.

when

compared

written

It is more flexible and can be effectively combined with gesture and other expressions.

It is more effective on account of direct contact between the communicator and communicatee.

It leads to better understanding because response to the message can be obtained on the spot, and doubts, clarifications etc. Can also be removed quickly.

It is faster and saves time.

FOR MORE DETAILS VISIT US ON WWW.IMTSINSTITUTE.COM OR CALL ON +919999554621

BUSINESSCOMMUNICATION

Demerits of Oral Communication Oral communication has certain demerits. They are: 1. It is not suitable in cases where the message is long and complicated, when the audience is large and when there is no need for interaction. 2. It does not provide any record for future reference.

3. 4. 5.

It is time consuming and costly. It cannot be used as a communication media where people scattered over a wide area. It can be irritating and wasteful when the persons involved are poor in talking skills.

Written Communication

Written communication, on the other hand, is very wide in its scope and covers entire paper work relating to all kinds of transactions, agreements, proposals etc,. Infact, the main work of any office is written communication. Written communication though has a place inside the organisation, it is of paramount importance in conveying messages to the external world. Though modern devices such as telephone etc. have lessened the dependence on writing, it still serves as the main channel for all the business transactions. This is because, a written communi-cation can carry assurance of transactions, confirm the dealing and form a reliable record for future reference. Besides, it is the cheapest method of contacting the external world. Hence, it saves money as well as time. Moreover, people place more reliance in pen than in the tongue. Merits of Written Communication: There are certain obvious advantages in written communication. 1. 2. 3. 4. 5.

Letters or written communications can be kept as a legal record. They can be retained for purpose of future reference. They are formulated more carefully than oral communication. They can save money and time. The written communication is used for all practical purposes in every organisation.

verbal message. E.g. smiling while greeting your colleague. Mostly, non-verbal messages are spontaneous. However, it does not mean that they are less important. Then on-verbal commu-nication includes the pitch and tone of the voices, body movement, physical appearance, time, touch, space and territory. The common types of non-verbal communication in business are detailed as shown below.

FOR MORE DETAILS VISIT US ON WWW.IMTSINSTITUTE.COM OR CALL ON +919999554621

BUSINESSCOMMUNICATION

1.Body Movement: Body movement as a media of communication can be discussed under three heads namely, (i) Facial expression, (ii) Gestures, and (iii) Body stance. i) Facial Expression: Successful communicators use facial expression as a very effective media of communication. The most expressive part of human body is faceespecially eyes. Eye contact and eye movements tell a lot about a person. Hence, normally receiver of oral communication give much attention to facial expression while receiving the message. This is because it will give a lot of information about the inner feelings of the communicatee, which canâ&#x20AC;&#x2122;t be understood otherwise. However, if a subordinate committed a serious mistake , executive may show anger on his face. If this is the case the subordinates may feel very bad and act indifferently. So most of the executives now -a - days learnt to scold the subordinate with a feeling of concern for him. This type of approach motivates the subordinates to improve their work performance. ii) Gestures: Gesture is a motion of the body or limbs. It is an action intended to express the idea of feeling or to enforce an argument. Gesture includes hand and upper body movements. They provide a lot of important information to faceto - face conversations. They are used to reinforce your verbal message iii) Body stance: Body stance is another form of non-other communication. It includes posture of standing, placement of arms and legs, distribution of weight etc. By seeing the standing position of a person, one can understand whether he is interested in the talk or feel very bore etc. For example, leaning slightly towards the communicator would be taken as a sign of interest and involvement in the talk, whereas leaning back might be taken as a sign of boredom. 2. Physical Appearance: Physical appearance of a person is important for creating a good impression. This is because attractive people tend to be seen as more intelligent and more likeable than unattractive people are. So they can earn more. One can not change all of his physical features. Some are changeable and others not. However, understanding the importance of physical appearance can help any body to emphasise their strong points. Oneâ&#x20AC;&#x2122;s clothing, Jewellery, furnishings at home and office provide information about their value, taste, status, age etc. Hence, we should give due weightage to these aspects also to get a good appearance. 3. Voice Qualities: No one speaks in single tone i.e. in an unvaried pitch of the voice. Voice qualities include volume, speed, pitch, tone, and accent. They carry both

FOR MORE DETAILS VISIT US ON WWW.IMTSINSTITUTE.COM OR CALL ON +919999554621

BUSINESSCOMMUNICATION

intentional as well as unintentional messages. Based on the pitch of the voice, the circumstance when it was conveyed etc., same sentence might carry different meanings. For e. g. while answering the question who was late? Say you were late, the emphasis is given to the word “you” i.e. the answer here is you for the question who was late? Whereas while responding to the other person’s denial of being late say you were late, emphasis is given to “wer e” . However ,while stressing how late the person was, say you were late emphasis is given to the word “late”. 4. Space and Territory: Different types of communication occur at different distances. Competent communicators determine their own personal space needs and those of others. They make the necessary adjustments to facilitate achieving his objective while communicating with people who prefer more or less space. Edward T. Hall in his work, “The Hidden Dimension” has stated that the psychologists have identified four zones within which people interact. i)

Intimate Zone:

Intimate zone extends from physical contact to about 18 inches where all your body movements occur. This is the area in which you move throughout the day. It is an area normally reserved for close, intimate interactions. Business associates typically enter this space infrequently and only briefly perhaps to shake hands or pat someone on the back ii) Personal Zone: This Zone, extending from 18 inches to about 4 feet, is where conversation with close friends and colleagues takes place. Unlike inter action in the intimate zone, normal talking is the frequent in the personal zone. Some, but not a great deal of, business interaction occurs here. For example, business launches typically occur in this zone. . iii) Social Zone: Social zone extends from 4 feet to 12 feet. This is the zone where most business exchanges occur. Informal business conferences and staff meetings occur within this space. iv) Public Zone : The public zone extends from 12 feet to as far as the eye can see and the ear can hear. This is the most formal zone, and the least significant interactions occur here. Because of the great distance, communication in the public zone is often one way, as from a speaker to a large audience. 4.

Audio- visual communication

Audio-visual communication uses the methods that are seen and heard. It makes use of short films, slides, video tapes, telecasts etc. Examples are small advertisement films, or documentary films related to social issues etc. Screened just before the main picture.

FOR MORE DETAILS VISIT US ON WWW.IMTSINSTITUTE.COM OR CALL ON +919999554621

BUSINESSCOMMUNICATION

Audio-visual communication combines both sight and sound to attract the attention of the communicatee. If it is of only visual communication, people may just casually look at it and forget afterwards. But if audio is also combined with visual aids, the message conveyed will be retained much longer than through other media. It is most suitable for mass publicity, propa-ganda and mass education. 1:5 BARRIERS TO COMMUNICATION Communications fail due to various reasons. Sometimes, subordinates may not be receptive. Sometimes, the superiors lack in their expression. Besides, some other barriers may also come into operation. The various barriers to communication can be discussed as below. 1.

Perception:

An individual’s view of reality is known as perception. Two individuals do not see things exactly alike. People differ greatly in the way they perceive things and events. Even a single individual has different perceptual styles depending on time and circumstances. Hodgetts say that, “the sender ’s meaning and the receiver’s interaction are not always identical, but it is not necessary that they be so”. This is the basic barrier to communication. 2.

Semantic or Language Barriers:

Language serves as the basis for the communication. It is the medium through which views are conveyed. Sender should select the words and construct the sentences carefully. Words that are used to convey messages have several meanings. The sender selects the words as per his own frame of reference and which he thinks will convey the meaning he proposes to communicate. On the other hand, the receiver reads or listens to the message and interprets it within his own frame of reference. As people vary in their experience, knowledge of the language etc., there is a possibility of semantic distortions. Thus, semantic difficulties come in the way of clear understanding. 3.

Perfunctory Attention:

If receiver pays very little attention to the message, communication in the sense of transfer of information and understanding will fail. When the employee is pre-occupied with a number of problems, sender faces such problem. In this case, employee should be made to keep away his problems and listen to the message. If this is not done, he cannot proceed the communication further. 4.

Status:

One of the basic barriers to communication arises due to status relationship that exits in every organisation. The superior subordinate relationships in the organisational structure inhabit free movement of information and understanding, exchange of ideas, views etc.. Generally those who receive communication judge the sender and naturally sender’s status has its own weight. For e.g., any communication received from the management is viewed as troublesome by trade unions; any message from workers will be discounted by management etc.

FOR MORE DETAILS VISIT US ON WWW.IMTSINSTITUTE.COM OR CALL ON +919999554621

BUSINESSCOMMUNICATION

Resistance to Change:

Generally, people resist changes. Resistance to changes will be strong when the proposed change is great. Managers should take all possible steps to overcome such resistance to change. One method of overcoming resistance is explaining the subordinates as to how they will be benefited by such changes. 6.

Organisational Structure:

Effective communication depends greatly sound organisational structure. If the organisational policies, rules and procedures are not clear, smooth flow of communication cannot be ensured. If the organisational structure has several layers of management, it may result in delay and distortion in communication. Lack of facilities that ensures effective communication is another barrier that comes in the way of clear understanding. 7.

Premature Evaluation:

Premature evaluation refers to a tendency of forming a judgement before listening to the message fully. Premature evaluation misrepresents the message. Thus, it acts as a barrier to effective communication. 8.

Emotional Attitude:

Emotional attitude of the parties involved in the exchange of information is another barrier to effective communication. When an individual is emotional, he may not be able to know the frame of mind of other person. 9.

Failure to communicate:

Failure to communicate is a pervasive barrier to communication. The communicator may be lazy or it may be assumed that everything is known to all. Sometimes, failure to communicate may also arise from an intention to embarrass the receiver or from complexes like superiority, inferiority or due to status difference, Communication also has no impact on those who are not willing to listen / read the message. 10.

Other Barriers:

Other barriers include faulty translation, badly expressed messages, loss by transmission, lack of attention, unclarified assumption, inadequate adjustment period and communication distrust. 1:6 ESSENTIALS OF EFFECTIVE BUSINESS LETTER All type of business letter must confirm to certain well recognised principles and should possess certain essential qualities. Business letters devoid of universally accepted requisites will prove ineffective. The essential of a business letter can be analysed under the following heads. (i)

The structure of a business letter.

The structure of a business letter refers to the proper arrangement of the various parts or the different elements of a business letter. To give the letter the right look and to ensure clarity and convenience, the letter should consist of

FOR MORE DETAILS VISIT US ON WWW.IMTSINSTITUTE.COM OR CALL ON +919999554621

BUSINESSCOMMUNICATION

the fol-lowing components. 1. The Heading. 2. The Date. 3. The Inside Address. 4. The Salutation. 5. The Body of the letter. 6. The complimentary Close. 7. The Signature. Each of these part has a definite place and position in all business letters. 1.

The Heading

Almost all business firms use printed letterheads for their correspondence. Generally, the name and the address are printed on the top of the letterhead but it frequently gives other particulars such as the description of business, the tel-ephone number, the telegraphic address, the telex number, Fax number, E-mail address etc. The letterhead of the large concern may give the addresses of its branches and that of a branch may give the address of its head office. To give a balanced appearance to the letter, nearly one fifth of the total space should normally be used for the heading . RANJAN PUBLICATIONS, 17, Aminjikarai, R.S.N Telephone :28 64 89 36 E-mail: ranjan@gmail.co

The date

This gives the date of the month and the year. It appears on the right hand side of the letterhead about five spaces below the heading. Some letterheads contain a printed line indicating where the date should be typed. In England, the usual method of indicating the date is to state it in original numbers st such as I March 2000. In U.S.A., it is usual to state the numbers of month before the date in cardinal numbers e.g. March 1, 2000. Some people omit the comma after the date and the full stop after the year, but it is generally considered correct to use them. The practice of writing the date as 1-3-2008 or 1/3/2008 should be avoided because it would give rise to errors, particularly in foreign correspondence. For example, in U.S.A. 1/3/2008 would been January 3rd, 2008 while in England and in other Common Wealth Countries it would mean as 1st March 2008. 3. The Inside Address This gives the name and full address of the person, firm or company to whom the letter is written. It is one of the essential ingredients of the physical make up of the business letter. It is generally typed two lines below the date line and above the salutation on the left-hand margin of the letterhead.

FOR MORE DETAILS VISIT US ON WWW.IMTSINSTITUTE.COM OR CALL ON +919999554621

BUSINESSCOMMUNICATION

Importance of Inside Address The typing of inside address is highly useful in many ways. They are:

This will provide the despatch clerk all the particulars that are necessary for writing the address on the envelope.

If window type envelops are used, the inside address is a must.

Since it is also imprinted on the office copy of the letter, it will be easy to identify the number and the nature of the letters sent out to specified parties.

The Salutation

The salutation is the similar to greeting like ‘good morning” , “good day” , “good af ternoon” etc. used by us in social life. It is written about three spaces below the inside address. The form of salutation depends on the personal relation between the writer and the address as well as upon the letter’s rank or position. The following are the usual forms used in business letters. Sir, Dear Sir, Dear Sirs, Gentlemen, Dear Mr. Raveen, Madam, Mesdames etc. 5. The Body of The Letter This is the most important part of the letter. The ultimate object of a business letter is to convey a message. The body of the letter contains the principal message to be conveyed to the other party. Hence the other parts, though necessary, are only subordinates to the body of the letter. It is no exaggeration to say that the whole of this book deals with the writing of the body of different types of letters. Therefore, the writer should take utmost care to set out the matter clearly. The matter should be properly arranged and presented in a logical manner. In this connection, Mr.L.Gartside suggests the following points which the reader should always bear in his mind. 1.

Write simply, clearly, politely, grammatically and to the point. 2. P a r a g r a p h c o r r e c t l y c o n f i n i n g e a c h paragraph to one topic. 3. Avoid stereo typed phrases and commercials. 6.

The Complementary Close or Subscription

The complementary close is merely a courteous leave taking. In other words, it is merely a polite way of ending a letter. It is like the salutation, conventional in form and meaning. A letter without a close or an appropriate close is vulgar and ineffective. The complementary close is written three spaces below the last line of the body of the letter and just above the signature.

FOR MORE DETAILS VISIT US ON WWW.IMTSINSTITUTE.COM OR CALL ON +919999554621

BUSINESSCOMMUNICATION

The signature

The signature follows immediately after the complementary close. It is usually written in black ink. Facsimiles can be used only in case of circular letters Since the letter binds the signatory, the signature has assumed great importance. A person may sign in different letters in different capacities. Therefore, the signatory should clearly indicate the capacity in which he signs. For instance, if the person signs in his individual capacity, his signature does not bid the firm. If he signs as a representative of the firm, he is not personally liable. Therefore, care should be taken while signing the letter. 1:7 THE LAY-OUT AND DESIGN OF A BUSINESS LETTER The overall arrangement and appearance of the different parts of a letter is called its lay-out. It refers to the arrangement of the various parts of a finished letter and to the neatness and spacing of the written matter. With the advent of computers in almost all offices, the computer itself does the job of a suitable format and alignment proportionate to the matter therein were the conventional lay-out refers to(i) Arrangement of a letter proper on paper. The arrangement of the typed area on the sheet of paper should look good. As a rule, the body of the letter is expected to start two spaces below the salutation and end two spaces above complimentary close. The body should be aligned on the right hand side with the first line of the inside address of the person to whom the letter is written. (ii) Margins. The right hand and left hand margins should be of nearly equal width, even though the former may be a little wider than the latter. The margin should not be less than an inch wide, in any case. However, an inch and a half is generally preferred. The margins on the sides should be about 2/3rd as wide as those at the top and the bottom in order to see that the letter looks well spaced. (iii) Spacing. It is better to use single spacing between the lines, with double spacing between the paragraphs. However, if the letter is short, double-spacing may be used throughout, with the first line of each paragraph indented to indicate the necessary divisions. (iv) Forms of Indentions. We come across four ways in which letters are typed and indented. (a) Block or straight edged form; (b) Indented or stepped-inform; (c) Semi-blocked or combination form; (d) Hanging indention form. Of these the first three are more popular than the last.

FOR MORE DETAILS VISIT US ON WWW.IMTSINSTITUTE.COM OR CALL ON +919999554621

BUSINESSCOMMUNICATION

(a) Block or Straight-Edged Form It is the most popular form used at present. Indention is avoided. The introductory address, salutation and body paragraphs are aligned right from between the paragraphs which are indented. This is the most symmetic form. It saves time for the typist as there is no need to shift the carriage of the typewriter too often. (b)

Semi-Block or Combination Form

This form of lay-out is combination of the Block and Indented forms. The heading and the inside address are in Block form while the initial line of each paragraph of the text is indented five to ten spaces. This enables to identify clearly the separated paragraphs of the letter Both these forms are usually accompanied by open punctuation, i.e., no terminal marks punctuate the lines of the heading and those of the inside address. (c)

Indented or Stepped-in Form

Here the lines of the inside address and the opening line of each paragraph begin a few spaces away from the margin. The lines of the inside address are indented five spaces to the right of the first letter of the preceding line above. Close punctuation is adopted in this form. There is a mark of punctuation for each line of the inside address . The full-stops are marked at the end of the last line of the letter-head and the inside address. The intervening lines of both are followed by commas. (d)

Hanging Indention Form

In this form the inside address and the salutation are typed in BlockForm. The first-line of each paragraph in the body of the letter commences right at the left-hand margin but the subsequent lines are indented five or more spaces. Single spacing is used between the lines with double spacing between the paragraphs. This form is not much used. However, it is favoured in sales letters to draw the attention of the customers. It is suitable for letters of a very informal character that can stand novelty.

1:8 KINDS OF BUSINESS LETTERS In every business concern, Letters have to be drafted and sent to the customers on various occasions. Therefore, business letters depending on the occasion in which they are sent can be classified as under; 1. 2. 3.

Letters of inquiry seeking information about the required grades and replies. Offers and acceptance. Orders and their execution

FOR MORE DETAILS VISIT US ON WWW.IMTSINSTITUTE.COM OR CALL ON +919999554621

BUSINESSCOMMUNICATION

4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16.

Credit and status enquiry Claims and adjustments. Collection letters. Circular letters. Sales letters. Banking correspondence Insurance correspondence Export and import correspondence Agency correspondence Transport correspondence Secretarial correspondence Correspondence with the Government Public relations letters. The above classification is purely a matter of conven-

ience.

The techniques of drafting these letters will be

discussed in subsequent

chapters.

SELF- ASSESSMENT QUESTIONS Answer the following questions 1.

Communication is an exchange of __________ by two or more persons.

Face - to - face Communication becomes more effective if accompanied with appropriate body language. True / False

3. Match the following 1. Written communication

- a.

2. Oral communication

- b.

3. Information must be

accurate Permanent record - c. Immediate feed back

1:9 SUMMARY Communication is a process whereby one person or one group conveys some information to another person or to another social group. Formal communication takes place via formal channels of the organisational structure established by the management. Informal Communication is free from all the formalities of formal communication. Communications fail due to various reasons is called barriers to communication. The essential of a business letter is to be analyses throughly in the end portion of this chpater.

FOR MORE DETAILS VISIT US ON WWW.IMTSINSTITUTE.COM OR CALL ON +919999554621

BUSINESSCOMMUNICATION

UNIT QUESTIONS 1. Define communication. 2. What are the objectives of communication? 3. What are the process of Business Communication? 4. Name the various methods of business communication. 5. What are the advantages and disadvantages of oral, written communication? 6. State the main barriers to communication. 7. Is communication essential to business? 8. List out the kinds of business letters. 9. Explain the layout of good Business letter. 10. Explain the various essential of a good business letter.

ANSWERS OF SELF- ASSESSMENTS QUESTIONS: 1. Facts, ideas, opinions, or emotions. 2. True 3. 1-b, 2-c, 3-a

FOR MORE DETAILS VISIT US ON WWW.IMTSINSTITUTE.COM OR CALL ON +919999554621

BUSINESSCOMMUNICATION

UNIT II KINDS OF BUSINESS LETTERS UNIT STRUCTURE 2:0

Introduction

2:1 Letter of Inquiry and Reply 2:1:1 Replies to Inquiries 2:2 Orders-Their Execution and Cancellation 2:2:1 Acknowledgement and Execution of orders 2:2:2 Refusal or Cancellation of Order. 2.3

Claim, Complaints and Settlement of Accounts

2:3:1 The Art of Drafting Letters of Claims and Complaints 2:3:2 Hints on Writing a Letter of Claim or Complaint 2:3:3 Settlement of Accounts (Remittance Letters) 2.4

Circular Letters

2:4:0 Introduction 2:4:1 Objectives of Circular Letter 2:4:2 Situation for Writing a Circular Letter 2:4:3 Special Hints on drafting Circular Letter 2:5 Status Inquiries 2:5:1 Hints on giving Replies to Status Inquiries 2:5:2 Steps in the Status Enquiry Correspondence 2:6 Collection Letter 2:6:0

Introduction

2:6:1 Guiding principles for collection 2:6:2 Hints on the drafting of collection letters 2:6:3 Stages in Collections

FOR MORE DETAILS VISIT US ON WWW.IMTSINSTITUTE.COM OR CALL ON +91-9999554621

BUSINESSCOMMUNICATION

2:7

Banking Correspondence

2:7:0 Introduction 2:7:1 Banking Letters 2:7:2 Elements of a Good banking correspondence 2:7:3 Types of banking correspondence 2:8

Correspondence of a Company Secretary

2:8:0

Introduction

2:8:1

Classification of Secretarial Correspondence

SELF- ASSESSMENT QUESTIONS: I 2:9

Summary Unit Questions Recommendations for further readings Answers of Self-Assessment Questions

FOR MORE DETAILS VISIT US ON WWW.IMTSINSTITUTE.COM OR CALL ON +91-9999554621

BUSINESSCOMMUNICATION

2:0

INTRODUCTION

Business correspondence extremely diverse. There is a variety of correspondence that modern businessman has to deal with within his business routine. It is very difficult to classify the business letters or to give an exhaustive list of the kind of letters a businessman has to write because different situations call for different approaches. Hence, attempt is made, in this book only to show a few common forms of letters under each class and deal with some of the important types included in it. 2:1 i)

ii)

LETTER OF INQUIRY AND REPLY Traders send letters of inquiry very frequently when 1.

The goods they require are of a kind which they do not regularly buy and they do not know the current price.

They want to ensure that they have been r e c e i v i n g g o o d s a t t h e a d v a n t a g e o u s terms.

They want to discover better sources of supply, or

They want to tap new lines of business.

While drafting such letters you should1.

Describe carefully the kind and quality of goods required.

Give an idea of the probable size of the orer.

State clearly, the special form of packing etc. desired, if any.

State how the name of the supplier was obtained, details of your business, whether the probable purchase should be for cash or on credit and give references if you want to make credit purchase (particularly when the enquiry is addressed to a firm which no previous transaction have been made). Refer to the advertisement, if it is a first enquirymadeinresponsetoan advertisement.

Request for lowest quotations together with an assurance of business.

Enquire regarding the time required for delivery, terms of payment, discounts etc., and find out whether insurance and delivery charges are to be included in the quotations, if the enquiry is made from a foreign supplier.

Give an idea about the size and frequency of future orders, the volume of business expected and the

FOR MORE DETAILS VISIT US ON WWW.IMTSINSTITUTE.COM OR CALL ON +91-9999554621

BUSINESSCOMMUNICATION

reasons for an optimistic outlook, if the enquiry is made to get concessional price for large or regular orders, or to obtain sole-selling agency for a region or country. The letters of enquiry should be brief and to the point. The opening and closing sentences should be simple and short. iii)

iv)

Watch the following opening sentences: (i)

Will you please send us sample of...

(ii)

Please quote your lowest prices for the following items/goods.

(iii)

Please send us your latest catalogue and price list of ...

(iv)

Will you please let us know the terms and conditions....

Closing sentences: (i)

Will you please reply at your earliest?

(ii)

We are ready to cover all our requirements through you, should your prices and terms prove satisfactory. Please treat our inquiry as urgent.

(iii)

2:1:1 REPLIES TO INQUIRIES The reply to an inquiry may take three forms: (i)

A letter answering the inquiry and referring to the catalogue, or samples.

(ii)

A letter containing a quotation.

(iii)

A letter enclosing a quotation on a separate paper or form.

The nature of the reply will, therefore, vary depending upon the circumstances. No hard and fast rule can be prescribed in this regard. However, the specimen letters that follow may guide you.

FOR MORE DETAILS VISIT US ON WWW.IMTSINSTITUTE.COM OR CALL ON +91-9999554621

BUSINESSCOMMUNICATION

LETTERS OF ENQUIRY AND REPLY Letter No. 1. Request for catalogue. MODERN CRACKERS, P16, Raju Naidu Street, Paris Corner, CHENNAI - 600 031 Phone : 28712536, e-mail : morfire@yahoo.co.in Date : 22nd June, 2008. To The Sunshine Fire Works, 36-Thiurmayam Road Sivakasi - 21 Dear Sirs, Sub :

Request for latest catalogue and price list

Please send us a copy of your latest catalogue and price-list and let us know your best terms for wholesale buyers.

Thanking you.

Yours faithfully, For Modern Crackers.

FOR MORE DETAILS VISIT US ON WWW.IMTSINSTITUTE.COM OR CALL ON +91-9999554621

BUSINESSCOMMUNICATION

Letter No. 2 : Replay to letter No. 1.

THE SUNSHINE FIRE WORKS 36-Thiurmayam Road, Sivakasi - 21 Cell No. 9994588033, Ph.No. 239 245. e-mail: thesunshine@hotmail.co To, The Modern Crackers, 16, Raju Naidu Street, Paris Corner, Chennai - 600 031 Sub : Catalogue and Price-list Dear Sirs, We thank you for your letter dated June 22, and have pleasure in sending you a copy of our latest catalogue and price-list. We need hardly add that behind every The Sunshine Fireworks is our reputation of 75 years as makers of quality crackers and all other fire items, especially designed for children. Our list of prices is subject to a trade discount of 30% and an additional commission of 5% in case your purchase from us exceed Rs. 1,00,000. We trust that you will take advantageof these terms. Yours faithfully, for The Sunshine Fireworks. Manager

FOR MORE DETAILS VISIT US ON WWW.IMTSINSTITUTE.COM OR CALL ON +91-9999554621

BUSINESSCOMMUNICATION

2:2 ORDERS-THEIR EXECUTION AND CANCELLATION An offer that is accepted is followed by an order. The letter accepting a seller ’s offer is called a ‘Letter of Acceptance’. Many times, the letter of acceptance itself constitutes an order and is sufficient to complete the transaction. However, a formal order may also be sent. An order may also be placed, without any previous enquiry or offer, i.e., on the basis of printed catalogues or advertisements. Great care is necessary in the drafting of orders : (i) (ii)

to ensure its efficient handling, and to eliminate all doubts resulting in the loss of time and sometimes even the market.

Hence, a businessman writing an order should: 1.

Give full and correct particulars of the quality, size, colour, etc.

Be precise in stating quantities . State whether a part of the goods you have ordered may be sent, should it prove impossible to supply the whole quantity within the time stipulated by you.

Indicate clearly the type of packing required.

Mention the price and terms on which the g o o d s a r e b e i n g o r d e r e d t o a v o i d misunderstanding. Mention the mode of transport, whether by steamer, goods train, passenger train, parcel post etc.

Indicate clearly the address to which the goods are to be delivered if the place of delivery is other than the address of the buyer given in the order.

6. Give necessary instructions if your intention is that the seller should insure the goods ordered. Give special instructions for packing, insurance, payment of customs duty etc., at the end of the letter. Other Hints If only a few things are ordered, you can specify the details in the body of the letter itself. But mention the details at the foot of the letter or on a separate sheet when a large number or variety of goods are required. Order Forms Printed order forms that are perforated, numbered and kept in serial order in Order Books are generally used by big business houses. The person placing the order fills in the necessary particulars. The order is

FOR MORE DETAILS VISIT US ON WWW.IMTSINSTITUTE.COM OR CALL ON +91-9999554621

BUSINESSCOMMUNICATION

generally made out in triplicate. The original is sent to the seller. The first copy is field and the other copy is sent to the receiving department for checking the items of goods on arrival. Thus, the order forms save time and labour and facilitate quick filing and serve as a ready reference. LETTER NO. 1: An order for the Supply of Timber. DEVAN WOOD MART 16, Developed plot, Industrial Estate, Guindy, CHENNAI 600 032 Phone : 22254850, e-mail : dewomart@sobha.co.in Date : 14th March, 2008. To The Manager, Sai Saw Mills, Tuticorin. Dear Sirs, Sub

: Order for timber Thank you very much for your letter dated February 26, 2008

quoting price for 800 loads of teak now lying in the Commercial Docks, which I accept, and you can draw on me for the amount named at three months, delivering half of the timber at my wharf at your earliest convenience.

I will give you instructions shortly regarding the reminder. Yours faithfully,

FOR MORE DETAILS VISIT US ON WWW.IMTSINSTITUTE.COM OR CALL ON +91-9999554621

BUSINESSCOMMUNICATION

2:2:1ACKNOWLEDGEMENTAND EXECUTION OF ORDERS Hints. While drafting the letter of acknowledgement and confirmation (acceptance) of an order, you should (i)

convey your thanks for the order placed;

(ii)

refer to the number and date of the order letter; and

(iii)

specify (although it is a repetition) the key points like the description and the quantity of the goods ordered, terms and conditions relating to delivery and payment etc.,

End the letter by soliciting further orders. Make a reference to the total number of invoices enclosed to avoid the possibility of being mislaid or improperly field rendering quick reference very difficult. You need not confirm the order, if the order is executed at once. Where the order cannot be executed owing to some problem or defect like(a) the lack of correct and clear information relating to the terms of delivery and payment, (b) (c)

modification of the terms of offer; exhaustion of stocks;

(d)

offering substitutes; and

(e)

extension of time of delivery etc.,

You should point out such problem or defect in the letter of acknowledgement and confirm the order when(a) the requirement is fulfilled; (b) the defect is corrected; or (c) the problem is solved. Word the letter tactfully and with due courtesy. For instance, if a delay in execution is anticipated owing to the insufficiency of stocks, persuade the customer to give his consent for a delivery at a later date (after some time). Likewise, offer some substitutes, if any.

FOR MORE DETAILS VISIT US ON WWW.IMTSINSTITUTE.COM OR CALL ON +919999554621

BUSINESSCOMMUNICATION

Letter 1. Letter regretting inability to execute order owing to exhaustion of stock and offering substitutes. VARSHINI CLOTH STORES

Ph...................

48, Kelambakkam,

Fax.................

Vandalur main road, Mambakkam, Chennai - 600048 May 21, 2008.

To M/s. K.V.P. Textiles, 728 - Dr. Nanjappan Road, Gandhipuram,Coimbatore. Sirs. Sub : Inability to execute your order We thank you for your order V215 dated May 12, 2008 for 150 metres of each of the sample patterns enclosed with your letter. These patterns were imported by us three years ago and they have been completely sold out. We are, therefore, sending you samples of the latest designs of imported cloth and shall be glad to receive your order for them. As our stock of some of these designs are very limited, please order your requirements within 7 days from this date. Needless to say, your orders will always receive our prompt and careful attention. Thank you. Yours faithfully, .............................

FOR MORE DETAILS VISIT US ON WWW.IMTSINSTITUTE.COM OR CALL ON +919999554621

BUSINESSCOMMUNICATION

Letter 2. A letter confirming only a part of the order.

Nitin Electronics Ph ................ E-mail .....................

25-A Wing, Vakola Bridge, Santacruz (E), Mumbai - 55 22nd June, 2008

Sub : Execution of your order in part

We thank you for your order of 18th June. We shall be pleased to supply you items 1 to 14 at the prices mentioned by you. As regards the remaining six items, we are sorry that we are unable to accept your prices. We enclose a proforma invoice showing the lowest prices that we shall charge you for these remaining items and on receiving your confirmation we shall at once despatch the goods.

As you have instructed us to send all the goods in one lot, we are withholding the execution of the first part of the order till we hear from you. In case you require the goods very urgently, please wire acceptance of our prices to enable us to despatch the goods immediately.

Thank you.

Yours faithfully,

...................

FOR MORE DETAILS VISIT US ON WWW.IMTSINSTITUTE.COM OR CALL ON +91-9999554621

BUSINESSCOMMUNICATION

2:2:2 REFUSAL OR CANCELLATION OF ORDER. REFUSAL A business house may have to refuse or decline an order under unavoidable circumstances like-(i) an order received directly from a retailer of a particular locality where a retail selling agency has already been granted to a dealer of that locality; (ii)

unsound financial position of the customer; and

(iii) sudden bankruptcy of the customer etc., While drafting letters of Refusal, a businessman should (i) state the reasons for declining the order p o l i t e l y a n d d i r e c t t h e c u s t o m e r t o t h e nearest retail agent (in the first case); (ii)

refuse the order under some other reason / pretext (in the second and third case); and

(iii)

suggest a few alternative, if any, to please the customer.

CANCELLATION. An order placed already may have to be cancelled under certain unforeseen circumstances, provided (i) the order is a recent one; (ii)

the manufacture of goods has not been taken in hand; or

(iii)

the dealer has not yet despatched the goods.

After deciding to cancel and while drafting a letter of cancellation of an order the businessman must communicate the decision immediately to the supplier, preferably by a telegram followed by a letter; and point out clearly the actual reason for cancellation particularly when the decision was taken owing to inordinate delay in its execution.

FOR MORE DETAILS VISIT US ON WWW.IMTSINSTITUTE.COM OR CALL ON +919999554621

BUSINESSCOMMUNICATION

Letter No. 1. A letter of refusal expressing inability to execute an order. NRT TIME ZONE Ph......................

Opp. Canara Bank,

Fax ...................

Vakola Bridge,

E-mail ..............

Mumbai.

To Standard Watch Company, Kempegowda Road, Bangalore. Dear Sirs, Sub : Inability to execute your order on the stipulated date We thank you very much for your order of 2nd February for 2008 â&#x20AC;&#x153;Clickwelâ&#x20AC;? Wall Clocks for delivery by 5th March, 2008. We greatly appreciate your interest in clocks and wish we were in a position to accept your order. But as we have already in hand several pending orders, which will keep our factory busy for a long time, it will not be possible for us to book your order, even if you were good enough to extend the date of delivery by several months. To cope with the increasing demand for Jupiter clocks we have ordered a new plant from Japan and it is likely to be installed next May. We are very sorry for our inability to serve you at present, but look forward to the time when we shall be able to attend to your order. We will keep in touch with you. Thank you,

Yours faithfully, per pro.N.R.I Time Zone, N.R. Narayanan, Manager.

FOR MORE DETAILS VISIT US ON WWW.IMTSINSTITUTE.COM OR CALL ON +919999554621

BUSINESSCOMMUNICATION

Letter No. 2 :

A letter cancelling order for undue delay.

J.K. MILLS Ph................. E-mail :..........................

28, Periagoundanpalayam, Beema Nagar, Pollachi road, Coimbatore.. Date : 5th May, 2008

M/s Asif Mohamed & Brothers, Mysore-7 Dear Sirs, sub: Cancellation of the Order We had placed an order with you on 4th April, 2008. for 10 dozens of Royal Banians to be delivered on 4th May, 2008 But till now we have received neither the goods any letter from you. As the time of delivery expired long ago we are compelled to cancel the order, and to refuse them the goods arrive we are sorry. Yours faithfully, Ezilarasan, Manager

FOR MORE DETAILS VISIT US ON WWW.IMTSINSTITUTE.COM OR CALL ON +91-9999554621

BUSINESSCOMMUNICATION

2.3

CLAIMS, COMPLAINTS AND SETTLEMENT OF ACCOUNTS

Errors very frequently occur even in the best managed business houses, because to err is human. The moment any discrepancy or mistake is discovered by any trader, he must immediately bring it to the notice of the supplier by writing a letter of complaint or clam. Instead of unnecessarily entering into a dispute, the supplier should honourably try his best to setttle the matter amicably, if the defects are proved. Occasions giving room for a claims or complaint are many and varied in nature and hence it is very difficult to enumerate all of them in full. However, the following are the most important causes that give rise to claims and complaints that are mostly made by buyers : (i)

inordinate delay in the execution of the order.

(ii)

variance in the quality and quantity of the goods supplied as against those ordered.

(iii)

supply of wrong goods or goods of inferior quality.

(iv) d e l i v e r y o f d a m a g e d g o o d s o w i n g t o defective packing (v)

varianceinthetermsandconditions relating to the payment and delivery etc.,

2:3:1 The Art of Drafting Letters of Claims and Complaints A trader must be extraordinarily careful while drafting a letter of claim or complaint in a satisfactory manner because such letters are generally drafted in a mood of dissatisfaction or anger. Successful drafting of claim and complaint letters call for great tact, politeness, sympathy and patience, in order to avoid unnecessary bitterness, long and tedious disputes and legal proceedings over patty issues.

2:3:2 Hints on Writing a Letter of Claim or Complaint The letter should be : 1. fair and temperate but not apologetic; 2.

based only on facts without imputation;

friendly and courteous letters prove more effective than a letter breathing fury and threats in gaining the cooperation of the reader; 4.

complete, furnishing all the details considered very necessary to adjust what is wrong (like the date of the original transaction, the order number or the invoice number, the list or description of goods etc.,);

definite and reasonable in its request for redress; that is,

FOR MORE DETAILS VISIT US ON WWW.IMTSINSTITUTE.COM OR CALL ON +919999554621

BUSINESSCOMMUNICATION

it should make a concrete suggestion for redress; and 6.

brief in the statements relating to the inconvenience suffered by the customer because of the error.

If any complaint proves to be unfounded or unjustified, the buyer should not hesitate to acknowledge his error and apologise.

FOR MORE DETAILS VISIT US ON WWW.IMTSINSTITUTE.COM OR CALL ON +919999554621

BUSINESSCOMMUNICATION

Letter No. 1 : A letter complaining the despatch of defective goods. ARUNACHALA EDUCATIONAL CHARITABLE TRUST Goyal Complex, Chennai Road, Thiruvannamalai. April Ist, 2008 To M/s. Mathi Publication, 117- Maduai Main Road, Palakkarai, Trichy. Dear Sirs, Sub : Defective and damaged books Thank you very much for the despatch of 16 books on “Business Communication” sent to us as per our order No. MBH/71/7 DATED March 28, 2008. On going through these books we found that one of the copies sent by you is incomplete as pages 45 to 64 (20 pages) are missing while another copy is badly damaged. Will you please let us know immediately whether we should send them back so that you may replace by defect free copies? Thank you. Yours faithfully, ....................................... For Arunachala Educational Charitable Trust Manokaranr, Trustee.

FOR MORE DETAILS VISIT US ON WWW.IMTSINSTITUTE.COM OR CALL ON +919999554621

BUSINESSCOMMUNICATION

2:3:3 SETTLEMENT OF ACCOUNTS (REMITTANCE LETTERS) After receiving the goods ordered, the buyer should not only acknowledge their receipt (unless the goods are sent with a delivery note) but also arrange remittance of the amount due to the seller. The mode of payment depends upon the arrangement between the buyer and the seller. The possible arrangements are : (i)

“C.O.D.” (prompt cash remittance after the receipt of goods).

(ii)

“Credit for a certain period” (whose payment istobemadewithinthespecifiedperiod b y c a s h , o r c h e q u e o f b y acceptance of a Bill of Exchange).

The cost of remittance is generally borne by the debtor who remits, excepting in a few special cases where the creditor may bear. It is easy to effect payments by transferring the amount from the buyer’s account to that of the seller, if both are having their own separate bank accounts. Remittances against periodical statements of accounts received by the debtor from the creditor are generally arranged when there are regular dealings between them. The Letters of Remittance should be written with special care and accuracy as they involve matters relating to payment of money.

FOR MORE DETAILS VISIT US ON WWW.IMTSINSTITUTE.COM OR CALL ON +919999554621

BUSINESSCOMMUNICATION

Letter No. 1: Letter acknowledging receipt of goods and informing remittance by cheque.

PALAVAN PALACE Ph........................

East Coast Road

Fax......................

Mahabalipuram - 28

E-mail.................

May 3, 2008..

To M/s. Rohini Enterprises, Mysore. Dear Sirs, Sub : A cheque for Rs. 2250/The Camel Hair Rugs invoiced by you on April 30, 2008. have arrived and are satisfactory. We enclose a cheque for Rs. 2.250 (Rupees two thousand two hundred fifty only) in full settlement of the amount of your invoice. The cheque No. Is ............ of corporation Bank. Please acknowledge receipt and credit us with the amount. Thank you. Yours faithfully, ..........................

FOR MORE DETAILS VISIT US ON WWW.IMTSINSTITUTE.COM OR CALL ON +919999554621

BUSINESS COMMUNICATION

2.4 CIRCULAR LETTERS 2:4:0 Introduction In the course of business, occasions may arise when it becomes necessary to notify all the customers about certain fundamental changes in the firmâ&#x20AC;&#x2122;s policy, constitution, place of business etc. In those circumstances, the facts are communicated to a large number of customers through circular letters. A circular letter can be defined as a letter containing a formal message addressed to a large number of customers. Since the message to be conveyed is the same, the circulars are generally printed or cyclostyled leaving space for inside address. The names and addresses are incorporated or typed on the space provided. Thus, a circular letter is a letter of which many copies are prepared and sent to a number of customers. 2:4:1 Objectives of Circular Letter There are four objectives of writing circular letters. They are the following. 1.

To obtain publicity for a cause, a campaign or a productintroduced.

To make the reader interested in their contents.

To i m p r e s s t h e r e a d e r w i t h f a c t s a n d information about the firm, its policy etc.

To gain the confidence of the reader.

2:4:2 Situation for Writing a Circular Letter Circular letters are usually written in the following occasions : 1. 2.

Establishment of a new business. Admission of a partner

3. 4. 5. 6. 7. 8. 9.

Change in the address of the place of business Death or retirement of a partner Purchase of a business. Obtaining an agency. Price reduction and clearance sales. Conversion of partnership into a company. Introduction or arrival of new products or new schemes.

2:4:3 Special Hints on drafting Circular Letter Circular letter is a constructive force. To make it more effective, different strategies should be adopted for different occasions. Therefore, the task before the writer is not an easy one. The following points are to be borne in mind while drafting circular letters.

Establishment of a New Business:

FOR MORE DETAILS VISIT ON WWW.IMTSINSTITUTE.COM OR CALL ON +91- 999955462

BUSINESSCOMMUNICATION

A circular letter announcing the establishment of a new business should touch the following matters. 1.

Name of the firm, address and the nature of its business.

Date of opening of the business firm.

The knowledge of the proprietor, his experience and reputation.

A reference that the goods of high quality are being offered at competitive prices.

The capital at the disposal-exact amount however, should not be disclosed. 6.

An invitation for a trial order and a suggestion that the result would be

satisfactory. Admission of a Partner: A letter of this type should touch the following points.

Circumstances that led to the admission of the partner, expansion of business etc.,

The name of the incoming partner.

His business experience, knowledge and ability.

An appreciation about his assistance and howitshallhelpthefirmtosatisfy customerâ&#x20AC;&#x2122;s wants more effectively.

An expression of thanks to the customers for their patronage in the past and a courteous request for its continuance in future.

Change in the Address: This letter should highlight the following. 1. 2. 3. 4.

The reasons the promoted the firm to shift to new premises. The relative superiority of the new premises. The address of the new premises. An explanation how the new location shall be conducive toefficiency in manufacture or distribution.

Retirement or Death of a Partner: The letter should include the following points. 1.

An announcement of the fact either death or retirement with regret and so appreciation with reference to his service.

An assurance that the business shall be continued on the same lines as before

FOR MORE DETAILS VISIT US ON WWW.IMTSINSTITUTE.COM OR CALL ON +91-9999554621

BUSINESSCOMMUNICATION

In case of retirement, specify the reasons that led to his retirement.

4. A n o t e t h a t t h e r e c o n s t i t u t e d f i r m i s adequately financed, deficiencies have been adjusted by contribution from the remaining partners. 5. 5.

If the name of firm is changed, the new name should be communicated.

Purchase of a Business:

The letter can be drafted on similar lines suggested for circularis announcing the establishment of a business. In addition to them, the following points should be included:

An announcement of the fact and the name under which the business shall be conducted in future.

If the firm has been successful in the past, a reference that the traditions shall be preserved.

Obtaining an Agency:

Drafting a letter to announce the obtaining of an agency cells for special skill and care. It should cover the following points. 1. The details of the agency obtained. 2. Comparative merits and advantages of the goods or services entrusted under the agency. 3. If the product offered is unknown in the locality, a reference to the excellence of the product and fairness of its prices. 4. An invitation for a trial order and an a s s u r a n c e t h a t t h e r e s u l t w o u l d be satisfactory. 7.

Price Reduction or Clearance Sales:

A price reduction or clearance sales is generally advertised in newspapers or by posters and handbills. But, at times, businessmen can announce them by means of the circular letters as well. The comparative advantage of a circular letter over the other means of advertising are the following. 1.

A letter can be addressed to a special class or a selected number of persons and is less likely to be overlooked.

The product can be more fully explained ordescribedinaletterthenina advertisement.

A letter unlike an advertisement can be kept by the recipient in his file for future reference.

While drafting circulares of this type, the following points must be touched.

FOR MORE DETAILS VISIT US ON WWW.IMTSINSTITUTE.COM OR CALL ON +91-9999554621

BUSINESSCOMMUNICATION

The nature and date of the sale and the most attractive features of the offer.

An invitation to the customer to visit the shop.

Range and variety of the products offered underclearancesales.However,car e s h o u l d b e t a k e n t o r e m o v e t h e impression that they are only for the fortunate few.

If the reduction in price is really great, the actual price should be quoted . Both the original prices and the reduced p r i c e s s h o u l d b e g i v e n , s o t h a t t h e c u s t o m e r c a n m a k e comparison of the reduction. 5. Conversion of Partnership into a Limited Company An expression of the expansion of the firmâ&#x20AC;&#x2122;s business and the consequent need for more capital. An assurance that their quality shall suit the customerâ&#x20AC;&#x2122;s needs and tastes. The competitive return of the prices, terms etc., This type of circulares is purely sales letters, which aim sales promotion. Therefore, the principles for drafting sales letters are equally applicable to these letters also.

FOR MORE DETAILS VISIT US ON WWW.IMTSINSTITUTE.COM OR CALL ON +91-9999554621

BUSINESSCOMMUNICATION

SPECIMEN CIRCULAR LETTERS Letter 1.

Establishment of a New Business

K.S. PAPER MART 48, T.H. Road, Chennai - 600 005. 10th May 2008. Dear Sir, We are pleased to inform you that on 20th May 2008, we shall be opening a retail paper stores, under the style “K.S. Paper Mart” at the above address, where you may rely on receiving high-quality paper at competitive prices.

The capital at our disposal is sufficient to enable us to honour our obligations and to lay in stocks different varieties to satisfy the most exacting requirements.

We hope that a trial order would win your further custom. An opportunity to prove the truth of this claim would be greatly appreciated. Yours faithfully, K.S. Paper Mart, K. Sridhar J. Sundar Partners.

FOR MORE DETAILS VISIT US ON WWW.IMTSINSTITUTE.COM OR CALL ON +91-9999554621

BUSINESSCOMMUNICATION

Letter 2. Admission of a Partner RATHNA ELECTRICALS

15, Netaji Road, Coimbatore - 641 001 15th May 2008. Dear Sir,

We are pleased to inform you that we have this day admitted into partnership Mr. K. Ranjit, who has for many years been associated with our business in various responsible positions.

We are confident the Mr. K. Ranjit will exert every effort to further the interest of our firm and we trust that you will continue to favour us with your valued custom.

Yours faithfully, Rathna Eletricals, N. Poaghavan Managing Partners.

FOR MORE DETAILS VISIT US ON WWW.IMTSINSTITUTE.COM OR CALL ON +91-9999554621

BUSINESSCOMMUNICATION

Letter 3. The Change of Address ARUNA MACHINE TOOLS (P) LIMITED No. 10, Industrial estate, Madras Main Road, Madurai - 625 001. 10th May 2008 Dear Sirs, The steady growth of our business has made essential an early move to a larger premises. Our old factory has rapidly become unable to cope efficiently with the increased demands of both old and new customers and to ensure satisfactory service, a large area at the above address has been acquired. The site is particularly good one in the heart of a large Industrial estate within the easy reach of the railway and the road transport difficulties are thus reduced to minimum and early deliveries are ensured. The new factory offers great scope for mechanization and a resulting increase in both the quantity and quality of our output is confidently expected. Transitional periods, as you know will give rise to considerable difficulty. We trust that you will in the circumstances allow us a certain amount of latitude. As the factory will be ready for production within a for night, we can assure you of the prompt delivery of all goods ordered newt week. We take this opportunity of expressing our thanks for your confidence in the past, and we hope that the improvements we shall introduce will lead even to more business. Yours faithfully, For Aruna Machine Tools (P) Ltd., V.M.P. Renganathan General Partners.

FOR MORE DETAILS VISIT US ON WWW.IMTSINSTITUTE.COM OR CALL ON +91-9999554621

BUSINESSCOMMUNICATION

2:5

STATUS INQUIRIES

Goods may be sold for cash or credit. When they are sold for cash the deal ends there. But when they are sold on credit; it is necessary to know the trustworthiness of the customers. Hence the Credit Sales play a vital part in the growth of any business.As business on credit invariably carries an element of risk of non-payment businessmen always make enquiries regarding the financial standing, reputation, credit-worthiness and above all the character of the new customers before entertaining credit deals with them. Such information relating to the status of â&#x20AC;&#x2DC;Credit Customersâ&#x20AC;&#x2122; can be obtained from all or any of the following sources:

(i) (ii) (iii) (i)

Business acquaintances of the prepositive credit customer; Credit Information Agencies (also called Mercantile Inquiry Agencies); and Banks.

Trade References

Usually an order for goods or application for an appointment or an Agency from an unknown person will contain Trade References, i.e., the names of firms or individuals to whom inquiries about his standing may be addressed. If the order or application does not give any reference, a request to furnish the same must be made very tactfully by careful wordings. The business friends of a prospective customer who is in need of credit facility or an agent who wants agency may supply the required information free of charge. The firm giving credit or a job or an agency should take care to see that the persons whose names are given as references are themselves reliable, by making use of several sources of information and checking them against one another before a final favourable decision is taken (ii)

Credit Inquiry Agencies

Information Bureaux supply reliable information regarding the status and standing of any person of firm, professionally, according to a fixed scale of charges. Such information can also be had from Chambers of Commerce and Trade Associations. (iii)

Bank References

As a Banker will answer Status inquiries only from another banker, the business house making the inquiry must address it to its own banker and ask him to obtain the required information from the banker whose reference the prospective customer or agent has given.

FOR MORE DETAILS VISIT US ON WWW.IMTSINSTITUTE.COM OR CALL ON +919999554621

BUSINESSCOMMUNICATION

2:5:1 Hints on giving Replies to Status Inquiries 1.

Make it as brief as possible, but let it be clear and adequate.

â&#x20AC;&#x2DC; 2.

State only on the basis of your personal knowledge and experience of the correspondent and not on hearsay.

Do not specify the amount up to which it would be safe to grant credit unless the inquirer is very particular about it.

Express the unfavourable opinion with extreme care and tact, the best way out is to state that you are unable to express any opinion about the person about whose status the inquiry is made. Avoid mentioning the name of the firm, if it is necessary to give some unfavourable opinion.

Always make it clear that -

You are in no way responsible for the information you give (ii) t h e m a t t e r s h o u l d b e t r e a t e d private and strictly confidential; and (iii)

you should not to be quoted

2:5:2 Steps in the Status Enquiry Correspondence 1.

Seller / Dealer

to Customer - asking for his Trade and Bank Reference.

Customer

to seller - furnishing his Trade and Bank Reference.

Seller

to (i) Trade Reference to (ii) Bank Reference

Trade Ref.

to Seller giving Favourable or Unfavourable Reply.

Bank Ref.

to Seller giving Favourable Unfavourable Reply.

Seller

to customer executing refusing to execute the order.

FOR MORE DETAILS VISIT US ON WWW.IMTSINSTITUTE.COM OR CALL ON +919999554621

BUSINESSCOMMUNICATION

Letter No. 1: A letter asking for reference. SIDDHARTA FURNITURE WORKS 110, Subash Road, Shimoga - 6. Phone No....................... Fax ................... E-mail .............. March 4, 20.... To Messrs Shankar Rao & Brothers, 4, Gurumurthy Street, Hassan - 5 Dear Sirs, Sub : Your Trade and Bank References Thank you for your order of March 1, 20 ..... We are glad to inform you that it is having our attention. It has been a regular practice of our firm to ask for a few trade references, while opening an account for the first time. As we did not have the pleasure of doing business with you earlier, you would be helping us a lot if you could send us, at your earliest, the names of two or three business houses of standing. Yours faithfully, For Siddharth Furniture

FOR MORE DETAILS VISIT US ON WWW.IMTSINSTITUTE.COM OR CALL ON +91-9999554621

BUSINESSCOMMUNICATION

Letter No.2: A letter by the customer furnishing his code and Bank References.

SHANKAR RAO & BROS. 4, Gurumurthy Street, Hassan-5 Ph...................... Fax ................... E-mail ..............

March 8, 20....

M/s Siddharth Furniture Works 110, Subash Road, Shimoga-5 Dear Sirs, Sub : Our Trade and Bank References As required by you we are furnishing below our Trade and Bank references with whom we have been having business transactions since last fifteen years. Trade Reference

Bank Reference -

Varum & Sons Shop No. 10, Majestic Circle, Bangalore- 560002. Corporation Bank of Orbit Yard, Hubli-2.

Kindly complete the formations and execute our order at your earliest. Thank you, Yours faithfully, .....................

FOR MORE DETAILS VISIT US ON WWW.IMTSINSTITUTE.COM OR CALL ON +919999554621

BUSINESSCOMMUNICATION

2:6

COLLECTION LETTER

2:6:0 Introduction Credit is incidental to trade. No businessman can survive in this competitive business world without extending credit to his customers. When credit is given to the customer, the problem of collection shall naturally arise. The businessman cannot realise the real profit on a sale until he collects the amounts involved in it. In other words, profit will remain as a mere obstruction if collections of credit sales are unduly delayed or result in large amounts of bad debts. Timely collection is also very important from the point of working capital position of the firm. Prompt collection releases the funds locked in debtors accounts and ensures a steady flow of working capital and facilitates further business. If uncleared even to continue his business unless he is financially sound. It is, therefore, rightly remarked that “ a good collection record is one of the essentials for success” A collection letter is also called a Dun. A Dun is a special notice sent to draw the immediate and special attention of the debtor. The word “Dun” is derived from the Middle English word “Dunnen” , which means to make a loud noise, i.e., each successive collection letter has greater force and pressure than the previous one. A dun means an importunate (persistent) creditor or bill collector. To dun means to importune for payment of debt. Therefore, Dunning letters or Collection letters refer to a series of letters written again and again for the settlement of account. 2:6:1 Guiding principles for collection The purpose of collection is to collect the amount when they are due. No firm can afford to allow its customers to take undue liberty with the credit facilities given to them. At the same time, undue pressure shall irritate the customers and even lead to a loss of valuable customers. It is, therefore, a delicate task and similar to the task of walking on a wire or a rope where the walker should maintain a balance. While collecting the dues also the businessman should strike a balance between leniency and firmness. But no hard and fast rule can be laid down for formulating collection policies. The collection procedure tends to very with individual circumstance, nature of the customers, their past records, the possible difficulties they are facing. The collection policy, in spite of the minor variations required, should be governed by two cardinal principles. They are : 1. 2.

Prompt customers. Good but slow payers 3.

Good but unable to pay because of u n a v o i d a b l e circumstances.

Fraudulent or reckless customers.

FOR MORE DETAILS VISIT US ON WWW.IMTSINSTITUTE.COM OR CALL ON +91-9999554621

BUSINESSCOMMUNICATION

2:6:2 Hints on the drafting of collection letters 1. Draft the Collection Letter after a careful understanding of the peculiar nature of the customer, the way in which he has handled his account and his present condition etc., There are different types of customer such as: 1. 2. 3. 4. 5. 2. 3. 4.

Honest. Dishonest Negligent Miserly Aggrieved (those who are in financial difficulties).

Assume that the customer will pay (if you consider the customer hopeless, he may take advantage of this). Do not be apologetic (in requesting payment from your customer, you are asking no favour). Make straightforward request for payment.

See that the tone of a collection letter is courteous and friendly but firm.

Leave the way open for the debtor to pay with good grace.

Never send it on postcard.

Apply the highest pressure only at the time when the customerâ&#x20AC;&#x2122;s business is at its highest peak.

Leave an interval of a weak or two between two collection letters.

10.

Avoid as far as possible threats (or legal action) because 1)

it is confession of the deplorably inefficiency of the collection epartment;

it is expensive;

it leads to a slow and tedious process; and

it will result in loss of customers. However, when a threat is made, see that the same is c a r r i e d o u t , w h a t e v e r m i g h t b e t h e consequences.

2:6:3 Stages in Collections The stages in the collection process are well established. The collection letters are usually written in a series. In each successive letter, the tone becomes stronger and sent out at intervals varying with the type of credit risk and the amount involved. Even for a fourth grade customer who is fraudulent, all the successive stage should be passed. In other words, even after knowing a debtor as reckless, the creditor should not resort to the final stage of warning at the beginning itself. The

FOR MORE DETAILS VISIT US ON WWW.IMTSINSTITUTE.COM OR CALL ON +91-9999554621

BUSINESSCOMMUNICATION

following are the routine stages in the collection process I. Sending Statement of Account II.

III.

Reminders

Stronger Reminders.

IV.

Inquiry and Discussion

Appeal and Urgency.

VI.

Demand and Warning.

Stage I - Sending Statement of Account The actual collection correspondence starts from the stage of sending reminders, because sending a statement of account is the duty of the creditor. A statement of Account is a copy of the customer’s account in the seller’s ledger showing the balance to be paid as on a particular date. It serves as a simple reminder to the debtor that he owes a particular amount on the date of the statement or letter. It does not make any request for payment. If the first letter remains unrepaid, a reminder is sent pointing out the possibility of an oversight or loss of the document. A duplicate statement of account accompanies the second letter. These two letters are mere statements. The second letter is also known as a casual reminder. Prompt payers will generally pay as soon as the first statement of account is received or the casual reminder is received by them. Others, however, will not settle the due. State II- Sending Reminders If the first two letters remain unanswered, a third reminder becomes necessary. In this letter, the creditor asks for payment of the amount politely, but not firmly. There is nothing to be gained at this stage by firmness. The debtor’s failure to pay may be either deliberate or accidental. If deliberate, firm action can be taken later. If accidental, firm action would humiliate the customer, and thus reduce the creditor’s chance of obtaining further business. Stage III - Stronger Reminders Even if the third letter fails to bring the desired response, a stronger reminder is needed. In this letter, the debtor should be asked to pay the amount by a particular date. This letter is also called limiting date reminder. However in this letter also, do not express any doubt about the customer’s intention or capacity or do not use any threatening words. State IV- Inquiry and Discussion If the reminders do not bring any response from the defaulting customer, the creditor has to take up a different course to get things done. It is yet too early to give up the hope of collecting the amount due.

FOR MORE DETAILS VISIT US ON WWW.IMTSINSTITUTE.COM OR CALL ON +91-9999554621

BUSINESSCOMMUNICATION

But it is really desirable for the creditor to know the legitimate reason for the delay. Therefore, he should write to the debtor asking him why the payment is with held. The debtor may have various difficulties - from his customers both personal and business like slow collection, slack of business, weak financial position etc., In any case, efforts should be made to get a reply from him or the debtor may be invited to his place for discussion in an attempt to solve the problem. If he replies, he may be offered necessary assistance to overcome his difficulties and payment in part or whole or a definite agreement for payment may be received from him. Stage V - Appeal and Urgency Letter now depends upon the debtorâ&#x20AC;&#x2122;s response to the previous letter. If the customer is good but unable to meet his commitment due to certain difficulties, he will certainly reply to the previous letter. Only reckless customers who fail to reply should be dealt with in this stage. His silence is a clear indication that the debtor wants to avoid payment and urgent action is necessary to realise the dues. A strongly worded letter is to be sent at this stage. The theme of the letter should be an appeal to the debtorâ&#x20AC;&#x2122;s sense of fairness and credit rating and how it will be affected by his attitude. This approach often proves effective and is called the Golden Rule Approach. Stage VI - Demand and Warning The correspondence now reaches the final stage. Now it is more important to collect the money rather than to retain the customer. This letter should use fear as its motivating force. The letter should consist of a brief statement that unless payment is received by a certain date- usually within five or ten days, his case shall be passed on to the lawyers. The tone of the letter should clearly indicate that the creditor intends to go through with the necessary action.

FOR MORE DETAILS VISIT US ON WWW.IMTSINSTITUTE.COM OR CALL ON +91-9999554621

BUSINESSCOMMUNICATION

Letter No. 1 SRIRAM MOTOR & CYCLE COMPANY 115, Big Street, Chennai - 600 005. 10th January 2008. To M/s. Bharath Motor and Cycle Mart, 21, Big Bazaar Street, Trichy - 620 001. Dear Sir, We enclose a statement of account made up to 31st October 1999. You will see that there is a balance of Rs. 15,000/- in our favour. Yours faithfully, For Sriram Motor & Cycle Company, R. Sankar Managing Partner. Encl. : Statement of Account Note : The statement of account was made up to 31st October 1999. Two months credit is allowed. Hence the debtor is to repay the due on 1st January itself. Sense he has not paid even after the expiry of ten days, a statement of account along with the letter is sent. It should be noted that the letter contains no request for payment.

FOR MORE DETAILS VISIT US ON WWW.IMTSINSTITUTE.COM OR CALL ON +91-9999554621

BUSINESSCOMMUNICATION

2:7

BANKING CORRESPONDENCE

2:7:0 Introduction Banks as we all know are intimately connected with business and industry. They are, in a way, business houses, which supply, sell or rent finance for business; that is to say, they deal in credit. Originally, the functions of the bankers were very few. With the passage of time, bankers began to perform a number of functions which are novel in nature. Therefore, the bank is an indispensable institution in the modern society. 2:7:1 Banking Letters In performing these services, the banker has to correspond with a number of persons. The reputation of a banker is judged not only by the efficiency of his services but also by the appearance of the passbook and his correspondence. That is why tactful, courteous and precise letters go a long way in building up a banker’s name. 2:7:2 Elements of a Good banking correspondence The essential elements of a good banking correspondence are secrecy, style, tact, courtesy and clearness. 1.

Secrecy :

Bankers deal only with money matters and secrecy in many matters is the first thing that a client expects from his banker. Except in cases of enquiry from fellow bankers, a client’s account and its details are treated as absolutely secret and are never revealed to any other person. Absolute secrecy about the state of a customer’s account is the basic guarantee in bank dealings. Even when an enquiry is made by another bank, the reply should be very brief and to the point. The customer’s credit should not be injured in any way. 2.

Style (Brevity and Conciseness)

Good Style in bank letters is brevity and conciseness because the customers are businessmen and they have no time to waste on superfluous reading. The banker should not be too impersonal or formal in his letters. 3.

Tact and Courtesy

Tact and courtesy are of paramount importance in banking letters. It is very easy to level allegations against a customer and thereby to lose his account. Courtesy is particularly very important while writing about overdrawn accounts and while asking for additional security. Similarly when a request for overdraft is to be refused, the language should be diplomatic so that the customer takes no offence.

FOR MORE DETAILS VISIT US ON WWW.IMTSINSTITUTE.COM OR CALL ON +919999554621

BUSINESSCOMMUNICATION

Clarity

Clarity in bank letters must be considered as a basic necessity. The matter should be learn and precise and there should be no ambiguity. However, clearness should never be sacrificed for the sake of brevity. All unnecessary details should be avoided. If opinions are expressed, they should not be loose opinions or mere surmises; options lead to decisions and hence they must be backed by actual facts. Besides, the bank letters should also possess all the essential qualities of a business letter. â&#x20AC;&#x153;The You Attitudeâ&#x20AC;? must be present in all the letters. 2:7:3 Types of banking correspondence Banking correspondence can be broadly classified as follows: 1. 2. 1.

Form letters. Individual letters.

Form Letters

Bankers usually use a number of form letters with a set text of the matter. They have a fixed phraseology meant to be used on different occasions in the course of business operations of the bank. They are printed with some blanks left, to be filled in by the customers or by bank officials at the time of transacting any deal. For example, account opening forms, loan applications, credit reports etc. are all standardised in their contents. They are generally prepared by legal experts and are suitably designed in physical appearance, tone and appropriateness of the message to be conveyed. These letters reduce the cost of correspondence by economising on time for dictation, transcription and handling. However, they are used only when the intimation or communication is of a routine nature and when no special or persuasive emphasis is necessary. 2.

Individual Letters

Individual letter, in this context, refers to each letter which is individually written in each case depending on the subject concerned and sent to others. Therefore, they are not standardised letters like form letters. Individual letters can be again classified into three kinds namely,

1. Letters between the bankers and their clients 2. Letters from one bank to another Letters between the head office and the branch office Letters between the Banker and the Customers: These comprise of (i) Letters from the banker to the customer, and (ii) Letters from the customer to the banker.

Letters from Banker to Customers

The most important and crucial part of banker â&#x20AC;&#x2122;s correspondence consists in communication with the customers. They include answering inquiries by customers, complying with the standing instructions of the customers, handling complaints of the customers regarding dishonour of their cheques, wrong statement of accounts, debits of bank charges etc. Besides answering requests for overdrafts, bank loans etc., there are also other occasions when

FOR MORE DETAILS VISIT US ON WWW.IMTSINSTITUTE.COM OR CALL ON +919999554621

BUSINESSCOMMUNICATION

correspondence is conducted with the customers. 2)

Letters from the Customers to the Banker

These mainly consist of requests for opening accounts, enquiries about the interest rats, status enquiries, application for loans and overdrafts, standing instructions regarding making payments etc., 2.

Letters between One Banker to another

These relate to status enquiries, negotiations of bill exchange, clearance of cheques etc., Here technical terms normally used in the banking business can be freely used but should not be used in letters to the customers. 3.

Letters between Head office and Branch Offices These consist of 1. 2.

Letters from Head office to the Branch office, and Letters from Branch Office to the Head Office.

Letters from Head Office to Branch Office These include letters from the Head office to the Branch, which deal with matters of administration, and convey the decisions and policy of the head office to its net work of branches. The Head Office should serve as a model for the branches to follow both as regards to its mode of administration and its methods of correspondence. Therefore, the letters from the Head Office to the Branch should serve as a model in all those qualities such as accuracy, clearness, courtesy etc. They should be drafted carefully and precisely. 2)

Letters from the Branch Office to the Head Office : Letters from branches to the head office generally consist of : 1.

Various monthly, quarterly, half-yearly or annual reports submitted by the branch manager. These are only factual reports and generally form letters.

Reports from branch managers giving suggestions for further development of business in the branch.

Letters recommending appointment of staff, promotion and transfer.

Letters containing the date of advances granted to the customers.

Letters which explain some unconventional decisions.

FOR MORE DETAILS VISIT US ON WWW.IMTSINSTITUTE.COM OR CALL ON +919999554621

BUSINESSCOMMUNICATION

Letter No. 1 :

A letter requesting a Banker to open an

account.

VASANTH KULKARNI & COMPANY 61, 5th Main,

Vijayanagar,

Bangalore,

Ph......................... E-mail.................. May

17,

200.... Dear Sir, Sub : Request for opening an account I am desirous of opening a current account with you. I have sent your printed application form duly filled in with specimens of may signature and the letters of introduction from one of your customers, Shri N. Guru, Proprietor Madhu Sweet Martâ&#x20AC;? through my personal assistant, Miss N. Maya, who will pay a sum of Rs. 5000 (Rupees five thousand only) as initial deposit. Kindly send with her a cheque book containing 25 leaves, a Pass Book and paying-in-slip book for purposes of remittances. Thank you, Yours faithfully, Vasanth Kulkarni, Proprietor.

FOR MORE DETAILS VISIT US ON WWW.IMTSINSTITUTE.COM OR CALL ON +919999554621

BUSINESSCOMMUNICATION

2:8 CORRESPONDENCE OF A COMPANY SECRETARY 2:8:0 Introduction The term Secretary is derived from the Latin word â&#x20AC;&#x153;Secetariusâ&#x20AC;? which means a confidential of ficer i.e., an officer to whom confidential matters can be entrusted. In those days, the term was solely applied only to those officers who conducted the correspondence of the King. The profession Secretary is, thus, as old as the man. It has also been said that the man of action always needed a man of the pen to record his deeds. With the passage of time, the office of the secretary assumed more importance. Modern times, the duties and functions have become so wide and varied that a modern secretary does no longer resembles his ancient counter part. Today he is not only appointed by Kings and Governments to conduct confidential correspondence but also even appointed by prominent persons in various fields (viz. Politicians, Members of Parliament, Authors, Doctors, business Magnets etc.,). Secretaries are also appointed by trading and non-trading institutions. He is even more indispensable to organisations such as charitable and educational institutions, sports clubs, religious bodies and professional associations. Thus, the Secretary is almost an indispensable person in all walks of life.

2:8:1

Classification of Secretarial Correspondence

1. Correspondence with the Directors The secretary, being the servant of the Board, should contact the directors frequently. As he meets the directors personally during the board meeting, he is not required to carry eunuch correspondence with them. However, the secretary will have to correspond with the directors when : 1.

The notice of the Board Meeting is to be sent 2.

A particular information is to be conveyed under the instructions of the Chairman or in response to an enquiry from a director.

A director, who is absent from a Board meeting, asks for a report of its proceedings. 4.

A director proposes in writing that a particular matter should be included in the

FOR MORE DETAILS VISIT US ON WWW.IMTSINSTITUTE.COM OR CALL ON +91-9999554621

BUSINESSCOMMUNICATION

agenda and the Chairman asks the secretary to write a letter to the director persuading him not to insist to include such matter in the agenda. 5.

A director proposes some cause of action, which is not in the interest of the c o m p a n y, o r w h i c h i s i l l e g a l a n d t h e Chairman asks the secretary to point out this to the director.

The last two occasions are really embarrassing and so the secretary should be very tactful in drafting these letters. Precautions to be taken by the Secretary The secretary in all his letters to the directors should be very careful and observe the following precautions. 1.

Maintain a polite and impartial attitude so as to influence the director to take the right line.

Word them very carefully and tactfully withoutforgettingthatheist h e i r subordinates. Avoid giving any offence to the directors.

The Manager Vijayaanagar Bank Ltd., Vijayanagar, Bangalore5600014.

Correspondence with the Shareholders

The secretary, although, basically a servant of the Board of Directors, he is also in sense servant to the shareholders who are the real owners of the company. Therefore, he owes the highest courtesy and consideration to them. At the same time, he can conduct his correspondence with them with authority. Because secretary has to answer many secret or unwanted request made by shareholders, his reply should not only be polite and courteous but also be firm. The correspondence of the secretary with shareholders usually relates to the following matters.

FOR MORE DETAILS VISIT US ON WWW.IMTSINSTITUTE.COM OR CALL ON +91-9999554621

BUSINESSCOMMUNICATION

Complaints relating unsatisfactory dividend.

low

Late or non-issue of notices relating to the meetings,issueofafreshsha r e certificate, lodgment of transfer deeds, transfer and transmission.

Notice and circulares relating to the change of address of the company or schemes of reconstruction, reorganisation etc., or any other change in the structure of the company.

Request for inspection of books and registers etc.,

Letters in response to complaints and special requestsmadeinwritingbyth e shareholders.

Precautions to be taken by the Secretary Since the secretary speaks for the company, he must take special care to see that his letters create a good image for the company. He should not do anything that could lower the companyâ&#x20AC;&#x2122;s reputation. Therefore, the following precautions are necessary.

For an unwarranted request the reply should be firm but polite. 2.

If an advance information is sought which is strictly confidential and cannot be revealed, the secretary should not disclose such information in the interests of the company

In case of any refusal, the tone should not be blunt but should be polite and firm.

Lengthy and protracted arguments should be avoided.

Legitimate and reasonable requests should be complied with immediately.

FOR MORE DETAILS VISIT US ON WWW.IMTSINSTITUTE.COM OR CALL ON +91-9999554621

BUSINESSCOMMUNICATION

1. CORRESPONDENCE WITH THE DIRECTORS 1. Letter requesting a Director to attend a Board Meeting TAMILNADU CHEMICALS LTD., 28, Peters Road, Royapettah, Chennai - 600 014. 23rd May 2008. Mr. N. Narayanasamy, 4, Eldams Road, Coimbatore - 641 001. Dear Sir, You are probably aware that an important item of the companyâ&#x20AC;&#x2122;s policy is on the agenda for the next Board meeting. Nearly thirty percent of our plant capacity is idle and this leads to huge and unwarranted overhead expenses. Ways and means for utilising this spare capacity will be discussed at the next meeting. A new chemical factory, Mumbai Chemicals Co. Private Ltd., has approached us with an offer to manufacture a few of their products in our Plant. The only point difficult to decide is whether to allow a rival firm to expand its business by using our factory to manufacture is products. As this item has crucial importance, your opinion will be of immense value in arriving at a decision. I have been asked by the Chairman, therefore, to request you to make it convenient to attend the next meeting of the Board of Directors, where this item will be on the agenda. Yours faithfully, K. Prabbakaran Secretary.

FOR MORE DETAILS VISIT US ON WWW.IMTSINSTITUTE.COM OR CALL ON +919999554621

BUSINESSCOMMUNICATION

SELF- ASSESSMENT QUESTIONS Answer the following questions 1 2.

A collection letter is also called a __________ The general meeting can be called only by giving to every mem ber not less than _________________days notice. 3. The secretary of a company occupies an important position in the administrative work. True / False 2:9 SUMMARY In this chapter we learn about kinds of business letters and an attempt is made to show a few common forms of letters under each class and deal with some of the important types included in it. The specimen letters that follow in this book will guide you forever. Successful drafting of claim and complaint letters lead in right way of communication. A collection letter is also called a Dun. It refers to a series of letters written again and again for the settlement of account. Modern times, the duties and functions of a secretary should conduct confidential correspondence with persons in various fields. UNIT QUESTIONS 1. 2.

3. 4.

7. 8. 9. 10. 11.

What are trade enquiries? Write a letter from the Bombay stores limited, to the Bharath press, asking for quotation for the printing of their catalogue 20,000 copies, copy enclosed. List out the various contents of an order letter. Write a short note on a) Execution of an order b) Cancellation of an order Mrs. Bala A Co. placed an order for 200/2 kg.Tins of Everyday Milk powder at the price quoted, and agree to consider the price as exeptional. You have placed an order for 500 double fold ladies umbrellas with stag mark umbrella company, Madras. Saying that the goods are required for rainly seasons and must be delivered before 31st october. Write a letter cancelling the order as the goods were not delivered in time. What is meant by circular letter? what are its objectives? What is status Inquiries? What are the steps to be followed by writing status Enquiry correspondence? What is collection letter? Briefly explain the guiding principles for collection. Draft a suitable reply to the manager of a firm who has expressed a desire to open a current account with your bank. Write a note on the various types of Secretarial correspondence.

FOR MORE DETAILS VISIT US ON WWW.IMTSINSTITUTE.COM OR CALL ON +919999554621

BUSINESSCOMMUNICATION

ANSWERS OF SELF- ASSESSMENT QUESTIONS: 1. Dun. 2. 21 days 3. True. 6.

---------------------------------------THE END-----------------------------

FOR MORE DETAILS VISIT US ON WWW.IMTSINSTITUTE.COM OR CALL ON +919999554621

BUSINESSCOMMUNICATION

FOR MORE DETAILS VISIT US ON WWW.IMTSINSTITUTE.COM OR CALL ON +91-9999554621

BUSI NESSCOMMUNI CATI ON

Publ i s he dby

I ns t i t ut eofManage me nt& Te c hni c alSt udi e s Addr e s s:E4 1 , Se c t o r 3 , No i da( U. P) www. i mt s i ns t i t ut e . c o m| Co nt a c t :+9 1 9 2 1 0 9 8 9 8 9 8