FYBMS-Business-Communication-Sem-I-munotes

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1Unit -1
THE CONCEPT OF COMMUNICATION
Learning Objectives:
To enable students to apply the skills ofcommunication .
To clarify the meaning, process and elements of
Communication.
To convey the need and importance ofcommunication
To present the communic ation process and the elements
Involved in varied communication situations.
Introduction:
Human beings communicate. So do animals, birds and even
insects. We have examples of such communication in the chirping
of birds, their warning calls at the approach of danger; apes’ cries
expressing anger, pleasure, fear; honey bee communication, such
as the queen bee‘s figure 8type dance inside the hive to teach the
rest of the bees about the direction and distance of the nectar; a
dog‘s response to the ringing of the door bell at different times.
However, the special qualities specific to human beings
separate the human world from the animal kingdom. That is why
human communication differs from animal communication.
For our purpose of study we will restrict ourse lves to human
communication and the technical means used. A good starting
point is recognition of the fact that man is a social animal who
prefers to live in society. He is, in fact, born with the capacity to
communicate he simply cannot isolate himself. H ef e e l st h en e e d
all the time to express himself and share his ideas with others. And
this attempt we see even in the case of an infant who
communicates his needs by cooing, crying, smiling etc. Man‘s very
survival depends on communication. This is because ,a sa
member of society, a human being is dependent on others and has
to take help from others.
So essential is communication to mankind that life without
communication is unimaginable. Absence of opportunities to
communicate would constitute a kind of p unishment. That is why
punishment of solitary confinement is given to criminals. They
experience all the related mental tortures and agonies and are
inclined to repent for their misdeeds.munotes.in

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2Iscommunication anew phenomenon? Definitely not.
Communication is as old as man himself. Man felt the need to
communicate right from the beginning of human history when, in
the absence of language, signs, symbols, and sounds were the
only means of communication at his disposal.
With progress, man‘s needs and communicati on
requirements also increased, which led to the invention of more
advanced means of communication. Thus the evolution of
communication can be traced from the prehistoric period to our
present times.
Cave paintings, drawings, pictorial representations etc .
stand testimony of early man‘s attempts at communicating over
space and time. The use of these was gradually replaced by
language.
Invention of languages gave rise to oral communication
which was the sole means of communication in society at one time.
Gradually, the written script came to be used and propagated, thus
giving communication a more lasting value. In those days, dried
leaves, marble, stone, papyrus, etc. were used as writing materials.
Books, in ancient times, were in the form of manuscripts, which
obviously had a very limited circulation. Also, as the means of
transportation had not developed, the spread of knowledge and
information was very restricted.
Then, in 1437, came Johann Guttenberg‘s invention of the
process of printing, as a result of which communication took a
quantum leap. The discovery of electricity gave a further boost to
communication, and extended its sphere of influence.
And with the development of science and technology in the
20th century, electronic devices provided a fu rther spurt. The
advent of radio, television, telephone, Fax, computer, Internet have
changed the face of communication altogether.
A communication revolution has, indeed, taken place. While,
earlier, man had very limited facilities and access to knowledg e
and information, modern man faces the problem of an Information
Explosion –there is so much available that he has to sift through
and select what he wants from the mass of information available.
Butwhatexactly iscommunication‖?Itisboth interesting
and informative toconsider the origin and meaning ofthe
word Communication.munotes.in

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3I.The Word Communication : Its Origin and Meaning:
The English word communication comes from the Latin
word, Communicare which means to impart or pa rticipate or to
transmit. The word Communicare is derived from the root
Communis which means to make common or to share.
So, communication is i) the activity or process of sharing or
exchanging ideas, feelings, information, experience between two
or more persons; ii) an act or instance of transmitting; iii) the
information actually communicated by some means.
Communication occurs all the time. In fact, it is an ongoing
activity. For example, interaction between the members of a family,
friends, relatives; communication through letters, telegrams,
telephone; stopping one‘s vehicle at the red signal and starting it at
the green signal; response given to the ringing of the bell by the
students in a school. It is clear, then that communication may be
either ve rbal or nonverbal.
Definitions of Communication:
Theterm communication isambiguous, desp itethefact
that it is a daily phenomenon. Definitions of communication vary
widely. Besides human communication, some definitions cover
animal communication w ith members of the species, as well as
with human beings.
Some selected definitions of communication are presented
here to facilitate the understanding of the concept of
communication. They cover different aspects of communication,
not necessarily unified .
The Oxford English Dictionary defines communication as
the action of conveying or exchanging information and ideas.
Peter little in his book Oral and Written Communication
defines communication as the process by which information is
transmitted between individuals and or organizations so that an
understanding response results.
In this definition, the stress is on i) communication as a
changing or dynamic process, ii) transmission of information
between individuals and or organizations, and iii) the rec eiver‘s
understanding response.
Here, the communication process involves systematic
activity which leads to proper communication of information
creating understanding of the message and the receiver‘s
expected action. The word information here implies new s,
knowledge, as well as the sender‘s attitude or frame of mind.munotes.in

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4According to Allen Lui (Louis), Communication is the sum
of all the things one person does when he wants to create
understanding in the mind of another. It is a bridge of meaning. It
involve s a systematic and continuous process of telling, listening,
understanding and responding.
This definition gives importance to communication as a
systematic and continuous two way process, which links the
sender of the message and the receiver who unders tands the
message as is expected by the sender. Thus the process of
communication includes transmission, reception, perception, and
understanding.
Keith Davies definition of communication as given in
Business and Industrial Communication, Communication i s
involved in all human relations. It is the nervous system of an
organized group, providing the information and understanding
necessary for productivity and morale.
Communication is the transfer of information and
understanding from one person to another .(Keith Davis)
This definition emphasies on interaction, sharing of
information and understanding between the sender and the
receiver.
II.What is Business Communication?
As Business Communication plays an important role in any
business organization, it is necessary to focus on its meaning.
Business Communication is the sharing of information related to
business activities and their results.
The following definition is more concerned with
organizational communication. Therefore, it can be considered as
am o re satisfying and comprehensive definition of Business
Communication.
Administrative communication is a process which involves the
transmission and accurate replication of ideas ensured by Feedback for
the purpose of eliciting actions which will accomplis ho r g a n i z a t i o n a l
goals. (William G. Scott, Organisation Theory )
This definition emphasises on i) the sender‘s or receiver‘s
capability of accurate transmission or reception of ideas ii)
feedback, iii) eliciting action which will accomplish goals. Accordin g
to this definition, transmission and reception of ideas should match.
For example, if the sender recalls the happy experiences ofthe
past, the receiver should relate and recall similar experiences.munotes.in

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5All the above mentioned definitions may vary in scope; but
they familiarize us with important elements like interaction,
interchange, dialogue, sharing, communion, commonness and so
on. They, no doubt, enhance our understanding of the concept of
communication, which comprises speaking, reading, writing,
expre ssing ideas and opinions, and exchange of ideas, response
to signs, signals, symbols and gestures. We may, thus, define
communication as aprocess of sharing facts, ideas, opinions,
thoughts and information through speech, writing, gestures or
symbols, bet ween two or more persons.
Such an analysis and consideration of the varied aspects of
communication is essential for effective communication. Because,
unless one understands and appreciates, fully, its nature, scope,
and range of possibilities, one will n ot be able to master the art of
communication, which is a matter of prime importance today.
The Process of Communication:
Communication is a remarkable process in which we are all
involved. It is complex which is why it distinguishes us from the
members o f the animal kingdom. Being a two -way transactional
process, it occurs between two or more persons. Since this is an
on-going, creative, dynamic developmental process, it comprises a
varied set of processes, a series of actions involving a sender, a
recei ver, a message. It is more than a single act. It spills into all
areas of life. It may take place verbally or non -verbally, for the
purpose of sharing ideas or messages.
All communication has some purpose which should be
known to both the sender and the r eceiver. Communication does
not take place haphazardly in an organization as it is not a random
exchange of information. It requires a vast repertoire of
intrapersonal and interpersonal skills involving listening, observing,
speaking, questioning, analyzin ga n d evaluating.
The components or elements of the Process of
Communication:
The Sender or Communicator: This is the WHO ofthe
process. The sender plays an important role since he is the
source of the message. The process begins with him. He
initiates communication using a variety of speech acts, some of
which are: expressing ideas, feelings, thoughts, opinions
directing the participants to do something persuading providing
information sharing something with someone (i.e. thereceiver)
Making the recei ver take the action expected of him or her.
The sender controls the communication process in the
sense that he, firstly, decides to put across some idea, and selectsmunotes.in

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6the medium or channel which he thinks will be most suitable to the
receiver and the situa tion.
The Message: This is the WHAT of the process, and is an
essential element in the communication process because,
unless there is some thought or idea to share, there would be
nocommunication.
Encoding: The message has to be formulated in some way t o
make it possible for it to be put across. This process is called
encoding, which involves selecting, organizing information in a
suitable way. Often, language, which is itself a kind of code, is
regarded as a suitable means of conveying the message. By
code is meant a set of words acting as symbols, agreed upon
by all speakers of that particular language, tostand for, or
represent certain entities. This is Verbal communication.
However, non -verbal means of communication may also be
used, and would be enc oded in other ways. Telegrams use
Morse code, the language of dots and dashes for sending the
message.
The Medium / Channel: Since human beings cannot
communicate telepathically, they need tousesome channel or
medium to put across the message. The terms channel Or
medium would imply the physical form that the message takes.
Amessage must necessarily travel through aspecific channel.
Of course, a choice of channels is available to the
communicator. He may use the verbal (oral or written) method,
or may use non -verbal ways (e.g. body language, facial
expressions, gestures, silence etc); or he may use the visual
means (e.g. pictures, maps, graphs, computer graphics); or he
may use audio -visual devices like Radio, T.V., Computer.
Selecting an appropriate m edium or channel (taking into
account the receiver‘s age, background, education, gender etc.)
is of paramount importance. A wrong choice could actually
prevent communication from taking place, or may result in an
unintended message going across to the receiver.
The Receiver: The receiver is also an important component in
the process of communication because, unless there is
someone to receive the message, it cannot be said that
communication has taken place. The receiver is the person or
group ofpersons toWHOM themessage isdirected.
Decoding: As the sender has to encode the message, thatis,
put it into some form to facilitate communication, the receiver
has to decode the message, that is, interpret the symbols, and
understand the meaning of the messa ge. This he does against
the background of his age, gender, past experiences, culture,
attitudes etc.munotes.in

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7Feedback: After getting the meaning of the message, the
receiver provides feedback which he encodes in the form of a
response/reaction/reply to the messag e. Feedback plays an
important part in the communication process, because it is
desired and expected by both the sender and the receiver. The
sender wants to know whether and how h ismessagehasbeen
received, and the receiver, either consciously or
unconsciously, usually provides a sign indicating that he has
received the message.
It should be noted that feedback may be positive or
negative. Positive feedback indicates to the sender the fact that his
message has been received, understood, and accept ed; and that
he can proceed to the next point. Negative feedback tells the
sender that his message has not been properly understood. It,
therefore, functions as a corrective, as it makes thesender realize
thedefects orflaws inhismanner of encoding. He will, therefore,
have to encode the same message in a different way, so as to
enable thereceiver to understand it.
Feedback may be immediate or delayed. In the case of
interpersonal communication it is quick, as the sender is able to
observe the respons e/reaction (e.g. a smile, nod, frown etc.) when
he is conveying the message. He can also guess whether the
receiver agrees or disagrees with him. However, in the case of a
letter, feedback may be delayed as the receiver will take time to
reply.
Sometimes, feedback is obtained indirectly, by observing
the subsequent change ofbehavior onthepartofthereceiver.
Feedback is very important in business. It is important for
the businessperson to know whether his/her clients and customers
are satisfied with t he products and services, or whether s/he needs
to make changes. Feedback from employees is also necessary to
improve the performance of an organization.
The process of communication involves a series of stages:
An idea arises in the mind of the sender, w hich he wants to
share.
Thesender encodestheideaintheformofa =message‘.
The sender chooses some channel/medium to put across
hismessage.
The receiver receives the message.
The receiver decodes ,absorbs, understands, interprets the
message.
The rec eiver sends feedback or his response.munotes.in

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8From the above, it is clear that in a communication situation,
aconnection isformed between thesender and thereceiver. The
first three steps are initiated by the sender while the next three
involve the receiver.
The process of communication may be elaborated as follows:
The communication begins with an idea that arises in the
mind of a person (the sender), which he wants to share. But, since
human beings cannot communicate telepathically, the sender has
to put the idea into some form (that is using some
channel/medium) by using signs, signals, words. Words are, in
fact, symbols which stand for ideas or objects. When a set of
symbols is agreed upon by two or more people, it is called a code.
Each language is a co de which people unfamiliar with that
language will not understand. When amessage issent outin
such acode, theprocess iscalled encoding. When this set of
symbols and signs is interpreted and understood by the receiver,
the process is called decoding‘. After t his,thereceiverprovides
somefeedbackintheformofa response/reaction/reply to the
message, which the sender must note. With this, a round of
communication is completed. Usually, the whole process repeats
itself several times over, with the sender initiating the process each
time, till he finishes expressing all that was in his mind at the time.
We, therefore, talk in terms of a Communication Cycle.munotes.in

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9The Communication Cycle may be diagrammatically
represented inthefollowing way :
Abarrier means ahurdle, adisturbance ,oranobstacle, in
fact, anything which interferes with or blocks the smooth flow of
communication. Due to some form of interference, a speech act
may not achieve its desired effect, and the communication cycle is
disrupted. It is, therefore, necessary to control the influence of the
barriers, if not overcome them completely. Since the nature and
types of barriers are dealt with elsewhere in this book, they are not
being discussed here.
Need for Communication:
Aman is as alive as he can communicate. ( L. Ron Hubbard )
This quotation emphasizes the importance of
communication and its corresponding need.
Communication plays a significant role in our lives at all
levels. It is, in fact, an integral part or facet of our life.
Communication is the only activity which is performed or indulged
in all the time, and not occasionally or sporadically.
The list of its benefits is endless. A glance at just a few of
them will, however, suffice to underscore the importance and need
for effective communication.
Effective communication and success go together, for an
individual as well as for an organization. It facilitates human
endeavor and enhances all aspects of human life.
Healthy working human relationships are the result of
effective communication, as it influences and moulds human
thinking, beliefs, frame of mind and value systems. It decides goodmunotes.in

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10human behaviour as well as social behaviour. In a way it helps to
develop an effective democratic and multicultural society. I tw i l ln o t
be an exaggeration to say that our personal, professional and civic
lives revolve around communication.
Communication has a definite role to play in business, as a
business person spends 75 -90% of his work -time in
communication, whether it be s peaking, reading, writing, or
listening. Today, technological development, globalization and
team -based organizational structures have given rise to a culturally
diverse workforce in an organization. This, again, intensifies the
need to communicate effecti vely. Higher administrative jobs require
effective communication to a greater extent. It resolves conflicts
between organizational complexity and individual needs. It
encourages people to think in new ways. It boosts morale;
motivates people; produces grea ter efficiency, leading to higher
productivity; creates a healthy atmosphere, bringing about unity;
maintains smooth functioning; promotes the control of factors
necessary for successfully achieving the final goal of the
organization; and so on. It helps q uick decision -making. Reaching
the final goal ensuring profitability is possible only with effective
communication.
Conversely, inability to communicate effectively will weaken
the administration. It will result in problems like miscommunication,
low mora le, lack of motivation, inefficiency, chaos, lack of control,
reduced productivity, lack of unity, and non -achievement of the
final goal, and perhaps total failure.
That is why effective communication is a must. Neglecting
communication or underestimating its value and importance will
take us back to the dark ages and will deprive us of all the latest
developments. Good communication is today‘s need. Its absence
would make success unattainable.munotes.in

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11The following diagram focuses on the benefi ts of effective
communication:
Communication in the Global Context:
Marshall McLuhan‘s prophecy is now a reality. The global
village is shaping its own language. The global market, the
corporate world, science and technology are all using this handy
lingua–franca, which is not the language of Shakespeare or
Churchill, nor that of R. K. Narayan ( Arun Sadhu) ,T h eT i m e so f
India, January 17, 2007)
This quotation is very relevant in today‘s context. It should
always be remembered that communication is the k ind of word that
changes in scope according to the demands of the person and
situation, and it is as elusive as the Unicorn as pointed out by Peter
Little and Peter Drucker.
The technological development of the 21 stcentury has
brought about development i n communication. Its evolutionary
process can be traced from prehistoric modes of communication
like sounds and symbols, to conventional modes, and then to the
modern modes like electronics, IT, and the computer. Weare now
experiencing a communication rev olution‘, which has totally
transformed the face of this century. Devices like computer,
internet, fax, have brought the whole world under their spell. Gone
are the days of slow means of transport affecting the speed of
communication. Today, communication travels at superfast speed.
That is why there is an Information Explosion. The traditional
concept of communication is completely replaced by the latest,
wider, contemporary, modern approach to communication, which
has influenced every sphere of life, and business in particular.
Wieklein aptly describes what is taking place in the field of
communication. All modes of communication we humans havemunotes.in

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12devised since the beginning of humanity are coming together into a
single electronic system, driven by computer s. There is a
noticeable shift from print media to electronic media, satellite and
internet. The traditional basic communication skills like listening,
speaking, writing and reading are converted into multi -tasking. A
variety of latest concepts such as a p aperless office, and video
conferencing, have come into use in business organizations the
world over.
Thus, today, thanks to scientific and technological
advancement, communication has developed to such a large
extent, that our world can be said to have b ecome a global village.
Globalisation has taken place.
Globalisation isaprocess ofincreasing integration between
units around the world, including nation states, households /
individuals, corporations and other organizations. Progress in the
field of c ommunication has accelerated this process of
globalization, which is bringing people all over the world under one
roof by forming one interdependent community.
Today we live in an age of global communication; therefore,
communication, today, knows no nati onal boundaries. It has a
significant role to play everywhere. Its importance is increasing day
by day, as it is a key to success. An ability to communicate
effectively with all types of people guarantees success. Effective
communication skills are helpful not only at the organizational but
also at the individual level. For efficient management, the modern
organizations need to think globally. Professionals need to sharpen
their communication skills to communicate major economic, and
other related issues. T he employment market demands good
communicators who can communicate with people of varied
backgrounds. In the absence of the relevant communication skills,
a person is left behind.
Over the last few decades, an ability to communicate
effectively with peop le of a variety of cultures, internationally and
domestically, has gained attention and importance. Internationally,
we communicate and work with people from different cultures,
national, religious and ethnic backgrounds, because of new
technology (interne t, communication satellites etc.) There is an
increase in intercultural conversations all over the world, as quick
and constant contact can easily be established. People have
realized the importance and need to work together. Economic
development has accel erated market globalization and, as a result,
people are doing business with, working for, or sharing work space
with someone from another culture. Companies producing and
selling goods are no more restricted to local patronage, but have
worldwide markets .Numerous job opportunities are available,
bringing together people of different national, ethnic, and religiousmunotes.in

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13backgrounds. People can work from wherever they are. Thus,
market globalization has wiped out all national, natural borders,
and has contribute d to the importance of intercultural business
communication.
Cultural diversity and a multicultural work force have created
the need for intercultural business communication. The global
market today needs successful intercultural communicators who
are sen sitive to cultural differences and possess good intercultural
skills. Therefore, companies give special training to their
employees to make them understand cultural differences, so that
they are able to communicate successfully with people in the
organisat ion and all over the world.
However, communication across cultures is a challenge to
many multinational companies, as there is the possibility of
miscommunication and misunderstanding. People from different
cultural backgrounds may misinterpret verbal / n onverbal cues.
The greater isthe difference between cultures, the greater the
chances of misunderstanding.
For example, an employee of a multinational company used
to ask questions about hairstyle and nose piercing, which made a
lady employee uncomforta ble. This happened because the
employee was ignorant of cultural differences in assessing what
was regarded as personal.
Here is another example. At a trade fair, sales personnel
were asked to give away green hats to passersby, in the hope of
attracting c ustomers to their stall, generating interest in their
products, and, of course, effecting and promoting sales. However,
it was observed that the Chinese visitors did not stop at their stall.
Later it was discovered that, to the Chinese, a green hat
repres ents infidelity. The Chinese expression Hewears agreen
hat‖means aman‘s wife hasbeen cheating onhim. The practice
ofdistributing green hats was soon stopped. Here again, cultural
differences were responsible for creating misunderstanding and,
perhaps, giving offence where none was intended.
The above menti oned examples clearly indicate that to be
successful in the global market place, cultural, linguistic and other
barriers need to be minimized. The use of custom designed
international websites to recognize and accommodate cultural
differences is an attempt in this direction. People‘s cultural
differences need to be recognized and respected.
Another problem of global communication is that developing
nations are unable to benefit fully from it, as they lack technology
and suffer from financial constraints. S imilarly, the expansion ofmunotes.in

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14modern electronic communication systems may be a threat to their
national, regional, local / tribal heritage. Though the technological
or communication means are a boon to development, they can
prove to be a curse, if not used pr operly. Weshould be able to
handle different barriers to avoid related problems. The available
resources should be carefully and tactfully utilized, so that we can
rule this global communication world.
Communication in the Context of Technology:
In these early years of the third millennium, we find
ourselves real inhabitants of the global village that Marshall
McLuhan had envisaged over thirty years ago. Advances in
technology have facilitated the process of market globalization.
New technology has permea ted every sphere of life, especially the
corporate world. Business today has widened its horizon and
overstepped its former boundaries, and so has communication.
The old scene has been replaced by a new landscape: the modern
world is buzzing with activity, and the face of Business
Communication has also changed as a result.
In the 21 stcentury, following in the footsteps of the
revolution in Business and Commerce, the Communication
Revolution has assumed greater significance. The electronic
means of commu nication have evolved from the printing press,
which was invented some 500 years ago. A few years ago, terms
like RAM, MODEM, DISC would have carried other connotations.
But today, even if people do not understand their exact meaning,
they are, at least, a ble to associate them with technology of some
sort. Technological developments have thus contributed towards
revolution of digital electronics. This revolution has influenced
information transmission since World War II. A new approach to
communication is t aking the place of the conventional approach,
so that, what was unimaginable earlier is a reality today. No
wonder that this revolution has entered the business scene, and, in
turn, the business world has taken hold of it and exploited it for its
expansi on. Electronic means of communication have brought
about a radical change not only in organizational working but also
in communication. More sophisticated means of communication
have mushroomed over the last few years. A study of Business
Communication wi thout a proper understanding and cognizance of
this fact would be unimaginable.
Information Technology including the Internet (intranet and
extranet), e -mail, voice mail, fax, tele (audio and video)
conferencing, desktop computing, wireless devices, inst ant
message have electronified commerce and thereby
revolutionalised the way we communicate.
Consequently, the old telecommunication devices like
telegraph, telex are now outdated, just as are letters and othermunotes.in

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15such forms. Availability of a variety of el ectronic media has
increased the options open to us as communicators.
Today, with electronic means, communication can be
effected in the blink of an eye and at the stroke of a key. The
electronic media have facilitated communication among people all
over the world, enabling them to reach widely dispersed publics
personally. The electronic media‘s ability to overcome time zone
barriers, their speed, frequency, multi -tasking and efficiency are
simply laudable. Advanced means like earth and environmental
service allow people from opposite ends of the world to collaborate
with each other, work together, seamlessly as it were, thus bringing
the resultant benefits to numerous other people. This collaborative
group effort ensures quick decision -making, which is of great
importance for success in the global competitive market. This
enables companies to promote the sales of their products /
services in a quicker and more economical way, thus facilitating
commercial operations and activities.
The Modern Era is becomi ng an office less world as the
concept of workplace and method of working are changing. Now
when an employee says, I’m at work, s/he is referring to what S/he
is doing and not to the place. The line between home and office is
now blurred. This is because p eople need not confine themselves
to traditional workspaces for working. They can work from home
and, at the same time, they can maintain contacts with their
colleagues. Thus, a constant attempt is being made to bring all
aspects of the office under one um brella. Henceforth, technology,
and not the traditional glass -box office layout, will bring the
employees together.
Thus, flexi -time/place, mobility, adjustability, miniaturization,
paperless, automated, horizontal, democratic organization are the
order o f the day. Direct one -to-one and one -to-many transfer of
information, storing data, retrieving it at anytime and anywhere are
all the miracles of this digitalized / electronic communication. That
is why, on -line trading, banking, e -recruiting, cyber recr uiting are
gainingpopu larity.Inshort, telecommunicatinghas becomethe
norm. All this has made today‘s professional more of an infocrat,
rather than an autocrat/ technocrat / bureaucrat. In fact, the driving
force behind the business world is, no doubt, technology.
However, new technologies have given rise to
communication challenges. In addition, the growing global access
to electronic means has magnified these challenges. Though
electronic means have come as a blessing, they are not devoid of
problems and disadvantages. They are afflicted by problems such
as viruses, worms, theft, information overload, lack of privacy,
reduced productivity, and waste of time. They are responsible for
some of the tension of in the workplace. With them, confidentia litymunotes.in

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16is endangered. Yet the benefits of electronic means of
communication usually outweigh the disadvantages. They are,
therefore, preferred to the conventional ones.
If we want to reap the full benefit from the potential of
Communication and Technology, we have to train people to be
proficient in the art of electronic communication. As the need is for
an effective, rather than a nominal communicator, the selection of
a suitable tool, and its effective, appropriate and judicious use,
should be insisted upo n. Furthermore, it is important to realize that
technology showcases a person‘s communication and presentation
skills as far as speaking and writing are concerned, and facilitates
the listening process; it can never be a substitute for the person
himself. The person needs to develop his/her basic communicative
competence which goes beyond aspects of clarity and
circumvention of barriers to include a consideration of the reader‘s
or listener‘s viewpoint, and a sensitivity to cultural differences and
their p otential areas of misunderstanding. For example, in some
countries, video conferencing is not accepted in business dealings.
So, we may say that the best method of handling matters and
problems related to communication would be one wherein effective
skills are coupled with, and enhanced by, the use of modern
technological devices.
Of course, this approach is not without its difficulties and
challenges. However, the corporate world attempts to face these
by developing global leaders, supporting global teams ,b e i n g
aware of changes, and taking timely action; besides training their
personnel to be effective inter -cultural communicators. Indeed, the
modern world is tossed between the positivity and negativity of
Communication Technology.
The following quotatio n from Charles Dickens‘s AT a l eo f
Two Cities (1859) describes this situation very aptly:
Itwas thebest oftimes, itwas theworst oftimes, itwas the
age of wisdom, it was the age of foolishness, it was the epoch of
belief, it was the epoch of incredu lity, it was the season of Light, it
was the season of Darkness, it was the spring of hope, it was the
winter of despair, we had everything before us, we had nothing
before us, we were all going direct to Heaven, we were all going
direct the other way in s hort, the period was so far like the present
period, that some of its noisiest authorities insisted on its being
received, for good and for evil, in the superlative degree of
comparison only.
Conclusion:
We may conclude by asserting that, for survival in this high -
tech global world, a mastery over communication in general andmunotes.in

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17business communication in particular, is of prime importance. It is
the key to success at both personal/individual as well as
organizational levels as it makes for all -round develop ment by
promoting co -operation, co -ordination, unity, high morale,
motivation, good image, better performance, and general
efficiency.
Tasks :
1.Define the word communication. (Give any four definitions with
examples).
2.Analyze briefly the communication proc ess involved during a
lecture period, and that of a tutorial period.
3.Read the following communication situations and state whether
they can be called communication situations? If yes, explain the
process and the elements of communication with the help of t he
communication cycle. If no, explain in detail why it cannot be
considered a communication situation:
a.You are reading a book.
b.A madman is talking to himself.
c.A speaker is delivering a speech to an audience that
appears to be disinterested.
4.To be an effec tive communicator is the order of the day.Explain.
5.How is technology responsible for changing communication in
theworkplace?
6.Technological developments and globalization areintensifying
theneed tocommunicate effectively. Discuss.
7.Fill In the Blanks:
i.Sharing of information regarding business activities and their
results is known as .
ii.Business communication helps in providing information to customers
regarding .
iii.A person who encodes the message is called .
iv.A receiver‘s response to the message is call ed .
v.Subject matter of communication may contain .
vi.The word communication originates from the language.
vii.A person who decodes is called a .
11.Answer in one sentence:
i.What is communication?
ii.What is the origin of the word communication‘?
iii.Give the compone nts of the communication process.
iv.Give any one example of a communication situation.
v.Define business communication.
vi.What is the special feature of human communication that
separates it from animal communication?
munotes.in

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18Unit -2
CHANNELS AND OBJECTIVES OF
COMMUNICATION
Learning Objectives:
The enable the students to understand the role of
communication in the corporate world.
To see the directions that transmission of communication takes
within an organization.
to identify the nature and purpose of the messages within the
organization.
A.Channels of Communication:
Administrative communication isaprocess which involves the
transmission and accurate replication of ideas ensured by
feedback for the purpose of el iciting actions which will accomplish
organizational goals. —William Scott.
Communication transmits a thought, an idea, or a concept of
the sender, which is replicated in the mind of the receiver. The aim
of communication within an organisation is to lea dt oa c t i o n st h a t
fulfill organisational goals. Organisations are concerned with two
types of communication: external and internal. This chapter will
focus on the nature and purpose of internal communication.
According to Peter Drucker Objectives are need ed in every
area where performance and results directly and vitally affect the
survival and prosperity of a business.
Organisational communication, broadly speaking, is to
facilitate achieving the objectives of an organisation. The primary
goal of any org anisation is to grow, which can only happen when
the organisation produces quality output. Managements must
communicate effectively with the workforce to ensure that the
quality of output is maintained. The workforce should understand
that survival of an o rganisation depends on efficiency of individuals
and groups, and produce actions that will achieve these goals.
These goals may range from completing a task or mission, to
creating and maintaining satisfying human relationships.
Most organisations have a hierarchy, levels of authority and
power within the ranks. Communication is perhaps the unique link
that runs through the structure and holds these levels together.
Organisations transmit messages with the help of formal and
informal networks that exist wi thin its structure. There are normally
four communication directions: downward, upward, diagonal andmunotes.in

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19horizontal. The effectiveness, functions and limitations of the
various patterns of communication need to be examined.
I.Formal Communication
Messages that move along predefined and regulated
pathways comprise formal communication. Formal communication
may be verbal or written, and may be in the form of letters,
telephone calls, computer messages or memos. At times, a
gesture may communicate as effectively as writing or speaking.
Messages convey decisions and can be transmitted personally, or
in writing, or by machines. From the sender, the messages move
along designated routes to designated receiver/s, who must act on
these messages.
As a general rule, all f ormal communication is recorded and
filed and becomes a part of the organization‘s record. File copies
are retained by the sender and the receiver. Some examples of
formal communication include work orders, notices, accounting
records and reports, inventor y and sales reports, policy
statements, job descriptions, work -method protocols.
Communication in an organization serves several purposes.
It provides a road map for senders and receivers who must know
about the planned action, work in progress, and work results. Next,
it provides a place for storage of information that may be required
for planning, operations and control.
Forma l Channels of communication constitute the formal
network of communication in an organisation.
Diagrammatic Illustration of for mal network
CEO
Marketing
ManagerProduct
ManagerFinance
ManagerHRManagerPRManagerPurchaseManagerSales
Manager
MarketingPurchaseHRProductMarketingSalesPurchasePRmunotes.in

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20i)Downward Communication:
In Downward Communication, top management of an
organization transmits decisions taken by it, along with its intended
goals, vision, culture and ethics through various levels of authority.
All dec isions taken by the top management are passed down the
ladder of authority for their implementation.
The messages that flow though this channel are orders,
memos, rules, practices, procedures, circulars, regulations. Written
orders, bulletins, bulletin -boards, posters, house -journals are
commonly used modes of this communication. As it proceeds from
superiors to the subordinates, this communication is also called
Top-Down Communication.
Downward Communication is needed
to get the work done
to prepare the workforce for challenges
to tackle misinformation and suspicion arising out of it
to create a feeling of pride and confidence in the workforce
in order to motivate it and to boost its morale.
to transmit work ethics and the organisation‘s culture
Advant ages:
This type of communication demands complete obedience
and ensures disciplined, orderly implementation of orders. It leads
to efficient functioning of the organisation and eliminates dissent.
Tasks and positions of authority are well defined. This bri ngs clarity
in the minds of people who are responsible for taking action, thus
avoiding confusion. It helps in uniting different levels of authority
and brings in team spirit.
[For e xample, an American or British Crisis M anagement
team in action, or the N SG commandos in action in Mumbai during
the terror attack, illustrate how downward communication ensures
effective implementation of ideas. Many family –run business
houses, too, work efficiently for this reason.]
Requirements:
It is important that the dec isions are taken after due
deliberation. The vision of the authority must be effectively
percolated, so that it correctly and completely reaches the last
person in the chain. The authority must set a good example so as
to inspire confidence in the subordin ates and win their co-
operation.
Disadvantages:
Being one -way communication, it can have some glaring
disadvantages.munotes.in

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21Lack of vision and arbitrary decision -making can prove
detrimental and harmful to the organization. Balance in sharing
information is imp ortant, so is judicious use of discretion.
Unnecessary information leaks can jeopardize organizational
goals. A reticent authority, unable to share necessary details with
subordinates, could prove equally harmful.
A hierarchical transmission of informatio nd e l a y s
implementation of decisions. Similarly, oral communication leads to
information loss, distortion and lack of accountability.
Absence of a feedback mechanism at the subordinate level
leads to frustration. As a result, subordinates develop lack of trust
in the authority, and feel exploited, leading to a tense relationship.
ii)Upward Communication:
Communication from lower levels of an organization to the
top is called upward communication. An organization needs
suggestions and feedback from its empl oyees on its routine work,
and this system of obtaining employee reactions is known as
upward communication.
Upward communication is needed
to forward employee -feedback
to report on official matters
to give voice to the difficulties, grievances, dissatis faction and
work -related demands of employees
to invite suggestions, creativity and participation in problem -
solving
to create a sense of belonging through participation
Suggestion schemes, complaints, grievance -procedures,
counseling, open door policy, exit interviews are some of the
common modes of this communication.
Advantages:
It completes the communication chain, as it is essentially a
two-way process. Employees feel valued as part of organisational
decision -making and their participation becomes c onstructive.
There is trust, and emotional bonding between management and
employees, along with understanding and co -operation. When
managements invite employees to play their specific roles in
achieving the larger organizational goals, they respond with
enthusiasm.
The authority earns subordinates cooperation. It benefits
from the suggestions and feedback on the decisions taken, helps
in evaluating the decisions and modifying them wherever
necessary.munotes.in

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22Requirements:
If an organisation wants upward communica tion to be
effective, it has to cut down the lines of authority and allow
subordinates an easy access to the top management. It has to
make the atmosphere in the organisation conducive for upward
communication. This involves training executives to listen t o
communication from employees with empathy and respond to the
communication promptly.
[Emergence of the Business Processing Units (BPOs) to
address customer complaints and queries is precisely for this
purpose. Such mechanisms are needed within the organ ization as
well.]
Disadvantages:
It must be admitted that no mode of communication is fool proof,
and this mode, too, is no exception.
Upward communication may not fetch results if subordinates
fail to take initiative and participate in the decision maki ng. Long
lines of authority, inability of the seniors to listen or to act, create
further barriers. Delays due to slow transmission, distortion of
communication further hamper the process.
Employees often fail to understand and handle upward
communication . For instance, if the employees feel that the
management is incapable of taking decisions without their help, or
that it is lenient, it might lead to indiscipline and an attitude of non -
cooperation in the organization.
iii)Vertical Communication:
Most org anizations follow a vertical pattern of
communication ah e a l t h ym i xo fD o w n w a r da n dU p w a r d
Communication. While decisions are finally taken by the top
management, there is room for employee feedback.
Communication, wherein the management interacts with
employees, invites their participation in decision making, creates
mechanisms to address their concerns without compromising on its
measures of control, is called vertical communication. An
understanding of this structure is necessary to appreciate the
effect iveness of vertical communication for as Mr. Davar puts it “the
lines of authority become the lines of communication for the
information”
Such a model of communication avoids the disadvantages
of both downward as well as upward communication, and tries to
gain from the advantages of both.munotes.in

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23iv)Horizontal / Lateral Communication:
Communication between persons of equal or comparable
status is known as Horizontal communication, viz., clerk to clerk,
manager to manager, etc. in every oraganlisation unimportant a nd
routine matters are dealt with other employees without troubling
their seniors. Since an organisation is not an arrangement of
vertical levels of authority alone, and the nature of work requires
team effort, it is imperative that employees at the same l evel of
authority exchange official information.
Horizontal communication is communication that takes place
between employees belonging to the same or comparable status.
Communication between two marketing managers, or between two
directors, is horizonta l communication.
Meetings, seminars, inter -office -memos, e -mails are some
of the modes of this communication.
Horizontal communication takes place between persons of
the same level in the organisation hierarchy -manager to manager,
department head to depa rtment head, clerk to clerk, worker to
worker. Communications between management and trade unions
are also horizontal as the philosophy of socialism has given great
importance to the role of trade unions in democratic and welfare
states. (Externally, horiz ontal communication takes place when
their counterparts in other organisations). In a company in Calcutta
a truck driver was the secretary of the trade union. On working
days he took orders from the manager(downward communication)
about where he should dri ve the truck but when he entered the
manager’s cabin to speak or behalf of the union he spoke as an
equal(horizontal communication).
Horizontal Communication is needed
to exchange official information
to create understanding and team -spirit among member
to solve difficulties
to seek and extend co-operation
to save time when quick decisions have to be made.
Advantages:
Horizontal communication helps in clarifying doubts, taking
quick decisions and eliminating mistrust that may hamper the pace
of work in an organisation. It brings about better coordination,
builds team spirit and ensures faster implementation of decisions.
It also checks the grapevine.
Requirements:
For horizontal communication to be successful, employees
must learn to extend cooperation an d work towards achievingmunotes.in

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24collective goals. The authority should delegate responsibilities to
subordinates in order to quicken the pace of work. Horizontal
communication, however, needs to be monitored, as its
uncontrolled transmission can invite problems f or the organisation.
Disadvantages:
Ungoverned horizontal communication disrupts the lines of
vertical communication, which in turn leads to indiscipline.
Employees also tend to waste precious time arguing and debating
over issues and decisions.
v)Diagonal / Crosswise:
Diagonal or crosswise communication takes place
when individuals from different levels interact with one another,
outside their reporting relationships. Anexample ofdiagonal
communication iswhen apurchase manager, instead of
communic ating with the assistant purchase manager, or the sales
manager, communicates directly with the assistant sales manager.
In acomplex and multilayered organization diagonal
communication
speeds up the flow of information
creates healthy work relationships
brings in proper co -ordination among different sections
makes problem -solving easy
Controls distortion and dilution of message because of direct,
inter-level communication.
Requirements:
For diagonal communication to be effective, the organisation
needs t o create an atmosphere of trust and transparency. Proper
Training or orientation to employees to handle this system of
communication can lead to their wholehearted participation in the
communication process without any reservation or resistance.
Disadvant ages:
It is likely to bypass the vertical chain of commands. This
may create doubts in the minds of by -passed superiors. For
example, an Area Marketing Manager taking a report from the
assistant production manager, or sales, or purchase manager, will
make their immediate heads/bosses suspicious
It may be seen as interference
It may create doubts about the superior‘s accountability and
co-operation
Decisions thus taken may be resisted by the by -passed
authority, and could vitiate the atmosphere of the organizationmunotes.in

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25Thus, diagonal communication could lead to a breakdown of
vertical lines of communication and cause complete chaos, or
anarchy in the organization
Diagonal communication, though useful, has the basic
disadvantages of psychological resistance and leakage of
information
II.Informal Communication:
While formal communication channels provide structural
direction for transmission and storage of messages required in
operations of an organization, it is often unable to meet entire
organizational requir ements. This gap between the needs of the
formal system and that of the total system is bridged by an informal
communication system. This system exists along with the formal
system and comprises messages, bits of information, opinions, and
expressions chos en for convenience and necessity rather than for
propriety, or conformity with formal communication patterns.
Without these informal pathways it would be difficult to accomplish
work. Similarly, meeting the technological, social, economic and
psychological needs would be difficult in the absence of this
alternative system of communication.
Leon Festinger, [ Informal Social Communication,
Psychological Review ]i nr e p o r t i n gt h er e s u l t so fan u m b e ro f
studies on social communication, found that there are three General
sources of pressure that generate informal communication in human
groups
1.People need to share and agree on important opinions and
attitudes to feel that they belong to a group. Hence, much
information is exchanged unofficially within an organizat ion and
among members of subgroups, which satisfies the need to
conform and to share positions on various issues
2.People need to share their hopes and ambitions with superiors.
These communications arise from forces to locomotelwithina
group.
3.People need to express emotions such as joy, anger, hostility,
andthelikeasameans ofblowing offsteam.
A fourth source of informal communication could be added
and is related to the rigidity of the formal bureaucratic structure: the
need tobypass official chan nels forthesake ofexpediency ingetting
and giving information about performance on the job.
The different patterns of informal communication network
are: Chain Wheel Starmunotes.in

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26
Grapevine:
This is a major informal channel of communication network
found in any organisation. This is personal communication which is
transmitted between individuals or groups and comprises personal
interpretations, opinions, gossip, reactions, hearsay, half -truths. It
is an unofficial circulation that makes the rounds in an orga nisation
and, though it lacks credence, the receiver finds it hard to resist.
This kind of communication travels the fastest and has a
vast reach. The contents, because of its immense personal appeal,
are readily believable.
Since, more often than not, negative information, half -truths,
personalized accounts of events, gross distortions are passed on
by the sender and taken as true by the receiver, this kind of
communication poses a big challenge to any organisation. It often
leads to lack of motivation and morale of employees. Management
could face greater challenges to maintain trust and factual
positions between itself and its employees.
Managements must be fully aware about the potential power
of the grapevine. This can often fail formal communicatio n, as it is
difficult to trace its origin and is difficult to control or stop
completely.
How does management tackle the grapevine? Since it
becomes active in the absence of correct and complete
information, the grapevine takes over when official channels fail to
function properly. Therefore, management must circulate
information that is accurate and strengthen upward channels of
communication.
To avoid unnecessary grapevine, the organisation must take
prompt note of communication from employees. Moreover ,i f
employees feel confident about the management, instances of
grapevine will reduce. Management, therefore, must delegate
responsibility and entrust employees with specific responsibilities
to strengthen trust between itself and its employees. Some
meas ures to control the grapevine are inviting suggestions, formingmunotes.in

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27grievance and redressal cells, publishing house journals, making
effective use of bulletins, notice -boards and an array of employee
welfare schemes.
Finally, the management has to be alert an d take note when
the grapevine becomes active. It has to cut the grapevine with
official communication. Or, use the grapevine itself to circulate
official information.
2. Objectives of Communication:
Having understood the official and unofficial direction si n
which communication flows in an organisation, the next step is to
understand what is communicated, the nature of official messages,
the reasons for their circulation, and their objectives.
According to Keith Davis, Communication is involved in all
human relations. It is the nervous system of any organised group,
providing the information and understanding necessary for
productivity and morale. ‖
It can be claimed that the two fundamental objectives of
communication are to survive and to prosper. The n ext step is to
understand how management uses messages to boost productivity
and morale. The following are the objectives of communication: –
1.Information: Keeping employees informed about various
developments within the organisation and the milieu in which it
operates is the key objective of organisational communication.
Equipping employees with the right kind of information helps to
empower them.
Employees need to know many things about the
organisation. They need to know its culture, its rules and
regula tions. They need to know about the decisions that require
action, about the job, about the prospects, about how the
organisation is faring in the market, about their own performance.
Management must provide information that helps
employees understand thes e issues.
To achieve this, both verbal and non -verbal means of
communication must be used, and the information circulated
should be adequate, correct and complete,.
2.Advice -Counseling : Providing guidance is yet another
objective of downward communication. Apart from information,
employees also need guidance to effectively handle various
assignments. Seniors, experts, experienced persons need to help
employees with troubleshooting and crisis management, assistingmunotes.in

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28them in solving problems can forge bonds bet ween employees and
themanagement.
At times, difficulties in work or on the personal front may
interfere with the performance of employees. Providing counseling
by a professional who can help the employee handle such
problems is the responsibility of mana gement.
3.Order and Instructions: Another objective of downward
communication is giving directions to the workforce. Any
authoritative communication issued by a superior in order to
monitor/govern the behavior of a junior is known as an order.
When an order is split further to meet specific issues, it becomes
an instruction. Orders and instructions are directives that spell out
the expected behavior of an employee. These act as measures of
discipline and control in the organisation.
While orders are broad, instructions are detailed and
specific. Efficacy of this communication depends on how it is spelt
out. It should be precise and easily comprehensible, so that it
answers all the questions that may arise in the mind of the
receiver.
4.Suggestion : To suggest is to put forth an idea as a possibility
or an alternative. Instead of communicating to inform or advise,
management could choose to make suggestions to its employees.
This can help in reducing the distance with the employees,
especially because orders and instruction create distance.
Suggestion, however, is used as an objective of mobilising
upward instead of downward communication. In order to bring in
employees constructive participation, their involvement in the
organisation, managements implement prog rammes like
suggestion schemes. Under this programme, employees are
invited to put forth their suggestions on the systems of governance
and processes within the organisation. Suggestion boxes are
installed at various places. Employees are invited to forwa rd their
suggestions in writing. They can choose other means, like e -mails,
to forward their ideas. These suggestions are scrutinized, tested
and, if found practical, the suggested is given a reward in cash or
kind.
What is the advantage of such a program me? Besides
employee -participation and involvement, such programmes
encourage creative thinking and give an exposure to employee
talent. Employees feel valued and develop a sense of belonging,
as well as responsibility towards the organisation. Management s
benefit by being able to pool in ideas that help in the strengthening
of its functioning. Such schemes also help in bringing management
and employees closer to enable them to work as a team.munotes.in

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295.Persuasion : This is yet another objective of downward
communica tion. Persuasion is an effort to influence the mind, belief
system or attitude of a person and to bring about the desired
change in his behaviour. Forcing people to accept change does not
help. Change has to come from within. Managements have to
persuade t he public to buy their products and services. They also
have to persuade their workforce to adapt itself to the changing
demands of the work.
It is a cliché that the only thing which is constant is change.
Pace of change is tremendous in today‘s world. Te chnology,
knowledge is changing constantly, and therefore it becomes
imperative for managements to persuade their employees to
accept change.
However, changing people is very challenging. People are
reluctant to accept changes. They feel threatened and be come
defensive when their accepted ways are challenged.
A management has to adopt a strategy while introducing
any change. To start with, it has to prepare the mind of the
employees. This has to be done subtly by winning their confidence
and demonstrating how the change will ultimately serve their own
interest. Persuasion works only when it appeals to the receiver‘s
sense of reason, and when he is convinced of the sender‘s
sincerity. A sincere appeal to self -interest impels people to
perceive things differ ently. Finally, management can adopt gentle
tactics, instead of using hard reasoning to bring about the desired
outcome.
6.Education and Training: Training the personnel and educating
them to take up the responsibilities of a given job becomes one of
the ma jor objectives of downward communication.
Educating employees is a continuous process in an
organisation and is meant for all the levels of authority. Discarding
outdated techniques, technologies and installing more efficient
systems has become imperative in the current age. Training the
workforce to update their knowledge and skills is a challenge to
every management. Organising workshops, demonstration
lecturers, film -shows, and seminars are done on regular basis to
meet this objective.
Apart from the w ork-front, education on the personal front –
on grooming, manners, and etiquettes is imparted to employees to
enhance the image of the organisation.
7.Motivation: Inducing employees to give their best is one of the
major objectives of downward communication .M a n a g e m e n th a st o
motivate its employees to ensure highest levels of quality.munotes.in

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30Motive is a powerful force, an inner drive that energizes an
individual to make a focused effort to achieve her/his goal. To
motivate is to appeal to this force, so that dedica tion towards a
particular job is at the highest level. It is not possible to achieve this
by either coaxing or commanding. Motivation means that inner
state that energizes, activates, or moves and which directs or
channels behaviour towards certain goals. Self-motivation involves
drive and effort on the part of an employee.
An employee takes up a job to earn her/his livelihood, to win
recognition, to reach the peak of her/his/ abilities, to achieve
excellence, to establish satisfying relationships, to earn job
satisfaction. If management could appeal to this strong aspirational
force and channelise it to fulfill organisational goals, it can achieve
wonders. Motivating employees by creating conditions so that their
potential is maximised becomes one of the m ajor strategies of
downward communication.
An employee feels demotivated when his effort goes
unnoticed and unrewarded, when s/he is unable to fulfill personal
goals, when there is no support from the management, when there
is a lack of communication betw een her/him and the management.
Such a worker discharges her/his duties in a listless manner, and
is not particularly bothered about the quality of her/his output. The
corporate world cannot afford to work with a bunch of demotivated
employees.
Motivating employees is a continuous process. The first task
of management is to help employees set goals [personal as well as
organisational] and create conditions that will help them to reach
these. Setting up the right kind of justice and reward system and
inviting the employee‘s participation in decision -making is yet
another way of motivating the employees. While managements
have to work towards creating external conditions for motivating
employees, they also have to work towards creating conditions that
self-motivate the employees. It can work towards creating the right
kind of emotional environment, where there is clear communication
between itself and the employees, and where employees feel free,
trusted and secure.
8.Raising the Morale of Employees : The dicti onary meaning of
the word morale is confidence, determination. Morale, as
commonly seen, is the mental strength of an individual. The state
of morale impacts work performance of the individual. If morale is
high quality of work is high. If morale is low, the quality of work is
poor.
Morale is that factor which gives the individual confidence.
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31support, facilities for training, opportunities for growth; where
systems of rewards and punishmen t are in place, and there is a
strong leadership that generates a sense of direction and control.
In such an atmosphere employees learn to view their work
positively.
Poor morale results from distrust in management on account
of its failure to provide bas ic work standards, such as lack of
facilities for training, absence of prospects, absence of systems of
governance, lack ofdirection onthepart oftopleadership, and
ack of trust in management on account of its poor communicating
skills.
In the field o f sports, one can see the difference in the
morale of the Indian hockey and cricket teams. Indian hockey, or
any other sport, is not able to produce the kind of result that is
produced by cricket, because the morale of the hockey team/ other
sports persons is low.
Since the state of morale adversely affects the work
performance of the organisation, boosting the morale of the
employees is one of the most important objectives of downward
communication.
Management can boost the morale of its employees by
giving basic infra -structural support, creating systems that reward
effort, strengthening its official channels of communication,
encouraging upward communication, controlling the grapevine, and
taking measures to earn the trust of the employees.
9.Warning and Reprimand: Management, at times, has to issue
a warning to an erring employee. To warn is to inform a person of
unpleasant consequences. When all other alternatives fail, warning
the erring employee becomes imperative. Management uses this
form of communi cation sparingly, and only when it desperately
needs to control, or modify certain behaviour that interferes with
the organizational norms and discipline.
Management begins by bringing a misdemeanor to the
notice of the employee concerned. S/he is asked t oc h a n g eh e r / h i s
behaviour; but if the employee fails to do so, the management
issues a soft, oral warning. From reprimands to warning is how
managements proceed to discipline an employee. This gives the
erring employee an opportunity to correct himself. I ft h ee m p l o y e e
ignores this opportunity and keeps repeating the improper
behaviour, he is given a warning in writing. This written warning is
called a memo in Indian parlance. The employee can always
answer a memo and explain. Normally, after two such memo sa r e
issued, the service of the employee is terminated. A written memomunotes.in

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32makes the employee aware of the seriousness of his offence, and
he can choose to correct his ways. A written communication gives
the management an opportunity to build a case or charge -sheet
against such an employee. This facilitates taking any subsequent
legal action against him at a later stage.
Summing Up:
An organisation uses official and unofficial channels of
communication to circulate messages. The purpose of such
communication is to build a healthy partnership with its employees,
which lead to enhanced performance individually, and better
results collectively.
Organisations communicate information, advice and
counseling, orders and instructions to equip the employees with
neces sary skills. It also educates employees, imparts training so
that they can better understand the organisational demands made
on them, and are able to carry out specific, assigned tasks.
Persuasion, inviting suggestions, motivation helps employees to
have t he right attitude and willingness to work so that output is
maximized.
Let us consider the following situation:
1.Suppose Western Railways local train services develop a
system failure at 4:00 p.m. in Bandra, just before the peak traffic
hour. What kind of communication plan will the Station Master at
Bandra have to devise?
Inform superiors: Upward Communication
Inform and instruct juniors: Downward communication Inform other
station masters: Horizontal Communication Inform commuters:
Horizontal Communicati on
Inform Police, Other Emergency services, News channels:
Horizontal Communication.
Think of the Objectives of Communication:
To instruct concerned personnel to attend to repairs, make
announcements, draw up a contingency plan.
To report to higher aut horities about action taken to provide
information to commuters
2.Consider the emergency measures the Railways had to adopt
after the serial blasts that took place on July 11.
Deal efficiently with an unexpected emergency situation
Restore rail -services wi thin the shortest possible time Regain the
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33These situations demonstrate how communication weaves a
close web of messages which are necessary if the action plan has
to work and produce results; they also demonstrate
How objectives and channels of communication function in
routine as well as emergency situations.
Tasks:
1.XYZ organisation wishes to introduce computerized services for
its customers. Before introducing the new decision,
management will have to chalk out a communication plan. What
would it communicate to its employees? Which of these
objectives, namely, Warning, Information, Education and
Training, Persuasion would help?
2.Explain which of the channels of communication should be used
in the following situation:
(a)The Welcom e Committee discussing the forthcoming
intercollegiate festival.
(b)The Principal informing the Admissions Committee on various
modalities of the admission procedure.
(c)The Captain of a Cricket Team strategizing with teammates
while preparing for the final matc h
(d)Commuters on the railway platform when they hear a loud burst
of firecrackers and panic, thinking it‘s a bomb blast.
3.What objective of communication will work best in the following
situations:
(a)Kingfisher‘s CEO addressing the employees of Air Deccan,
which he has planned to take over.
(b)The Manager of Bank of Maharashtra addressing his staff to
inform them about the management‘s decision to extend work
hours from 8.30a.m. To 7.45p.m., in order to survive
competition from private banks.
(c)Captain of an IPL tea m communicating with teammates before
thematch.
4.An average family uses vertical mode of communication while
communicating with its members. Illustrate, with examples, how
this is done. Do you think it is an effective pattern of
communication?
5.Imagine you live in an extended (joint) family. What are the
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346.There are newspapers reports about the merger of ABC
Company Ltd with Pro Ltd. Employees at ABC are worried as
they have not been given any official informati on about the
merger. They are concerned about their future. What do you
think will happen in such a situation? How will this situation
affect the employees?
7.Explain / define in one sentence :
Order, Morale, Motivation, Warning, Persuasion, Information,
Counseling.
Formal and Informal communication.
Vertical, Diagonal, Horizontal Communication.
8.Compare the formal and informal networks of communication in
theorganisation.




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35Unit -3
METHODS AND MODES OF
COMMUNICATION
Learning Objectives:
To enable students to understand the application and
effectiveness of various methods and modes of communication.
I.Methods of Communication
Introduction :
In the process of communica tion, the ideas that we wish to
express need a device through which they can be sent. Thus any
message must necessarily have a medium. The selection of the
medium is determined by a variety of factors like context, purpose
of communication, the needs of th e receiver, the speed and cost of
the message, time taken in the transmission and the urgency of the
message. A businessman may need to use different methods or
media in different situations to suit his needs. The choice of the
right medium will increase t he effectiveness of the message.
There are two methods of communication: verbal and non -
verbal. A message, when expressed in words, either spoken or
written, is an example of verbal communication. A message can
also be expressed non -verbally, using gestu res or signs , where no
words are used. Today, transmission of messages is speeded up
with the advent of the electronic media. Thus electronic media has
become a major mode of communication.
(I) VERBAL (II) NON -VERBAL (III) ELECTRONIC
Oral, Written Body language, Silence Fax
Face -to face,LettersFacial expressions, Signs Computers
Telephone, MemosGestures, Visuals,Postures,Internet
Notices Poster Colours E-mail
Circulars Dress & Grooming, Maps
Reports Proxemics, Graphs,
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36i).Verbal Communication:
Verbal Communication uses language to communicate
messages. Language uses spoken and written words; therefore
verbal communication includes oral and written communication.
A.Oral communication:
Oral communication is communication by means of t he
spoken word. It can take place as a face -to face meeting or over
the telephone. It could be a personal and informal communication,
or a formal interview, business meeting, a conference or a speech
before an audience.
Principles of effective oral commun ication:
Oral communication is a very effective and powerful medium.
Effective oral communication depends on the speaker following
certain principles. These principles are as follows :
Know your objective:
You must know what you want your message to do you may
need to inform, to entertain, to convince, to express an opinion, or
to explain.
Know your audience:
Consider carefully the nature of your audience their age,
level of understanding, their occupations and their level of interest
in your message.
Know your subject:
Prepare your message thoroughly. See that you know your
main ideas and key points. You must also know your facts and
figures.
Know (how to use) your voice:
A good speaker uses his voice to maximum advantage.
Attention must be paid t o volume, pitch, speed of speaking and
correct pronunciation of words. Your voice must be clear, pleasing;
and varied in volume, pitch and speed, to be interesting. Good
delivery depends on using your voice well.
Know when to stop:
The length of the oral message has a lot to do with its
success. The message must aim for just the right length, neither
too short nor too long. All points must be covered and yet there
should be no repetitions or unnecessary elaboration.
Advantages of oral communication:
Oral communication is generally more preferred, as
compared to written communication. Its popularity is due to its
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371.It is direct and time -saving. The listener understands the words
as soon as they are spoken. Oral communication is the best
way to transmit messages quickly and to save time.
2.It saves money. It is economical as it does not require costly
equipment or stationery.
3.It conveys the exact meaning of words. A great advantage of
oral communication is its use of non -verbal elements like body
language and paralanguage. Body language includes facial
expressions and posture. Paralanguage includes features like
voice volume, pitch and speed of speaking; it also includes the
sounds we make while speaking, like sighing or clearing the
throat. T hese non -verbal elements allow the speaker to express
his/her meaning more accurately.
4.It provides immediate feedback from the receiver. The sender
gets the receiver‘s response immediately, even on the
telephone. This also explains why oral communication i s so
effective in teaching and coaching.
5.It is more persuasive in nature. Oral communication is more
useful when arguments and reasons have to be given to
convince someone, as in sales and marketing, or in a court of
law.
6.On-the-spot additions and correcti ons are possible. The
speaker has the scope to change, improve and add to her/his
message as s/he is speaking.
7.Confidential messages can be communicated. When subjects of
a delicate and confidential nature cannot be written, one can
take recourse to oral c ommunication.
8.It is informal and friendlier. It can build friendly relations with
people and develop social contacts.
Disadvantages of oral communication:
Oral communication, however, has several drawbacks.
1.It lacks legal validity. Oral messages have no l egal proof.
2.It lacks accountability. In oral messages, we cannot fix
responsibility. The speaker can deny that he said something.
3.Possibility of misunderstanding. This happens when the listener
is not attentive to the message.
4.Problem of retention. People do not remember oral messages
for a long time. Or they may retain only a part of the message.
5.Not always effective. Oral communication is not effective when
the distances are great or when the message is very lengthy.
6.The need for good speaking skills. Or al communication cannot
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38B.Face -to-face communication takes place when two or more
people meet personally.
Advantages of face -to-face communication
1.It is a combination of verbal and non -verbal factors. This makes
the message more effective, due to the use of paralanguage
and body language.
2.Immediate feedback is possible.
3.The speaker can modify his message immediately if the
receiver‘s response tells him it is necessary. The receiver can
also ask questions and clear his doubts immediately.
Disadvantages of face -to-face communication:
1.Face -to-face communication is difficult to practice in large
organisations where there are many people in different
departments, and in different places.
2.It is not e ffective when the receiver does not pay attention to the
message.
3.It is not effective when the gathering consists of too many
people.
C.Written Communication:
Written communication is the expression of language by
means of visible signs. Despite the far wid er use of oral
communication, modern civilization cannot function without the
written form. Business organisations need it to run their systems
efficiently and effectively. It should be noted that written
communication is not merely oral communication writ ten down. It
has its own dynamics. Its importance is mainly in organising and
documenting knowledge.
Advantages of written communication:
1.Reference: Written communication provides a permanent
record. It can be filed and stored for future reference wheneve r
needed.
2.Legal validity: It provides legal proof. Documents of importance
are always stored in written form.
3.It aids memory and retention: the reader can go to the written
matter again and again. This aids understanding as well as
retention.
4.It is more ac curate and organised. Written messages are
drafted with greater time at our disposal; they are more
accurate. The writer can edit and alter his message to make itmunotes.in

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39as perfect as possible, and add the details needed. Words are
chosen carefully to convey the exact meaning and matter is
organised properly. This makes written communication an
essential part of every business organisation.
5.Fixing responsibility: Written documents are always signed;
hence it is possible to fix responsibility on a certain person or
group of persons.
6.Wider reach: Written messages have a wider reach than oral
messages, as printing and photocopying make it possible to
transmit messages easily to a very large number of people.
7.Goodwill: Good written communication can create a good
impre ssion and generate goodwill for a business organisation.
Disadvantages of written communication:
1.Time, trouble, expense: A written message needs more time
and care to prepare. It is also costlier as it needs machinery and
stationery.
2.Feedback is slow: Feed back is slow and often delayed in written
messages sometimes it may even be absent. Getting answers
to queries and clarifications may become difficult.
3.Written communication can create problems of storage: The
number of documents is almost always far great er than the
space and means available for storage.
4.Lacks friendliness: Written communication is essentially formal
in nature. It cannot have the warmth and personal touch of oral
communication.
5.Unsuited to countries where there is a great degree of illite racy:
Written communication is a literate skill. The lack of literacy
makes it impossible to use written communication.
ii).NON –VERBAL COMMUNICATION:
Non-Verbal communication is communication without words.
Ithasbeen defined asanymessage yougive otherthan theliteral
interpretation of your words the way you move, speak, appear ‖.
Non-verbal elements form an important part of oral communication.
The major forms of non -verbal communication are as follows:
1.Kinesics or Body Language
2.Dress and Grooming
3.Proxemics
4.Paralanguage
5.Silence
6.Visual and Auditory Signs and signals
7.Posters
8.Colo urs
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401.Body Language or Kinesics: -
Body language or kinesics is a vital part of communication. It
includes several factors like facial expressions, eye contact,
gestures, posture and even dress and grooming.
Facial Expressions: The fac e of the person mirrors the emotions
and conveys a host of different messages. Facial expressions also
include eye contact. Smiling, frowning, widening the eyes, raising
the eyebrows, pursing the lips are all examples of facial
expressions. Such expression s communicate in one of two ways.
Sometimes, they act as a complement to the words used and add
to their meaning. They can also act as a substitute for the words.
Facial expressions often reveal the true feelings of a person, even
when his words are saying something else.
Gestures: A gesture is an action of the hand, head or body, which
conveys a message. Gestures can convey a greeting, such as
folding one‘s hands ina=Namaste‘; itcanpass information, such
as holding upyour hand toindicate ―wait‖,ornodding your head to
say―yes‖and shaking ittosay―no‖;gestures canalso show
emotion with a clenched, raised fist which indicates anger.
Posture: Posture is an im portant part of body language. It means
the manner in which we carry ourselves, i.e. the way we walk, sit
and stand. Posture says a lot about a person‘s personality, her/his
mood and general nature. Hunched shoulders, slouching in a chair
can mean lack of self -confidence and low energy levels, or
shyness; an erect stance shows positivity and confidence; standing
with hands on the hips and head thrust forward shows aggression
and anger.
2.Dress and Grooming: The clothes we wear and the level of
our grooming play an important role in giving people an impression
about us. Our choice of clothes on different occasions and in
different places, our attention to neatness and to details like well
combed hair and clean nails, all provide important clues to others
about our personality. It is said that clothes make a man‘; how we
wear clothes and how we carry them is what makes the real
impact. Thus, dress and grooming play a vital role in providing a
clue to the man behind the appearance.
3.Proxemics: Proxemics can be called the language of space. It
is the study of space and how we use it in communication. The
manner inwhich weuse space, inpersonal aswell asin group
communication, creates different kinds of meaning and sends
different messages to others. Experts h ave identified different
kinds of areas or zones of space: Intimate space, for immediate
family members and close friends. Personal space, for friends and
colleagues. Social space, for one‘s senior or junior colleagues.munotes.in

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41Formal or Public space, for meetings and gatherings. The closer
the relationship, the closer the space we allow the individual.
4.Paralanguage: Paralanguage includes pitch, volume,
intonation, and such non -verbal elements of communication which
modify meaning and convey emotion. e.g. the voca l sounds hmmm
or ah . The study of paralanguage focuses on how you say what
you say .The tone of voice, rate of speech, pause, accent can not
only communicate but alter the meaning significantly.
5.Silence: Silence is a powerful form of communication. We
convey our ideas and emotions very clearly and eloquently when
we remain silent in certain situations. Silence can be used to
convey agreement or disagreement, approval or disapproval,
anger, shyness, sympathy or respect.
6.Visual and Auditory Signs and Signa ls:
The word Signs is derived from the Latin word signum which
means a mark. Both signs and signals are symbols, which are
given some meaning .Signs are fixed and static symbols, while
signals are dynamic and have an element of change or movement.
Signs are used in Chemistry, Mathematics, Music and in Road
signs to guide motorists. Signals use colour, light or sound for
communication, as in traffic signals, or the school bell or the
ambulance siren.
7.Posters: Posters are a combination of verbal and non -verbal
factors, because they consist of pictures as well as words.
However, they are considered a form of non -verbal communication
because it is the visual or non -verbal part which plays a key role in
posters.
Posters are used in advertising or for educatio nal purposes,
to spread awareness on subjects of public interest like literacy
programmes, importance of protecting the environment, and other
such issues e.g. Save the Environment or Say No to Drugs etc.
Posters use visual appeal to make their message ef fective.
Aw e l l -designed poster consists of 3 parts:
a)Headline: This is the short but catchy slogan which conveys the
main message.
b)Illustration: This is the visual part consisting of pictures or
photographs. It must be striking enough to catch the attentio no f
theviewer.
c)Copy: This is the written matter, which gives necessary details.
Copy can sometimes be avoided.munotes.in

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428.Colours: It is impossible to imagine life without colours. They
are an unavoidable part of our lives. Colours can convey direct
messages, suc h as the traffic signal, or the red flag that workers
carry to indicate that they are on strike. Colours also have an
important symbolic role. The symbolism of colours finds a place in
every aspect of our lives; the colours of flags of various nations
stand for different qualities; in most countries, the colour red
symbolizes something good and auspicious, white symbolizes
peace, and green stands for prosperity, and so on. Being symbolic,
the same colour may mean different things in different cultures. For
example, an Indian bride wears red, but a bride in a western
country wears white, which represents purity. Colours also have an
important psychological role in our lives. There is scientific
evidence to show that bright colours excite and soft, light colou rs
soothe and calm the mind, and dark, dull colours can be
depressing.
9.Maps, Graphs and Charts:
Maps : A map is a drawing on paper that shows the location, size
and other features of countries, towns, as well as natural features
like rivers and mountains. Maps use a scale and a key to give us
information about places, and even stars and planets.
Line-Graphs: A graph is a diagram consisting of lines which
display the variation of two quantities. Graphs are used to show
variations of temperature, production and sales, prices and profits
etc.
Charts : A chart is used for displaying maps and graphs, for better
visual effect. A chart can be pasted on cardboard or drawn directly
on chart paper. Charts are widely used in schools.
iii)ELECTRONIC MEDIA OR TECHNOL OGY -ENABLED
COMMUNICATION :
Man has always strived to achieve better means and ways
of communicating with others. The telegraph and the telephone
marked the beginning of what became the age of information
technology. The last century has seen a revolution in
communication technology, especially due to electronics and
electronic media. Computers, E -mail, Internet and Fax machines
are not only used in business houses, they are equally popular with
individuals for their personal use. This information technolo gy
revolution has changed the way we do business, the way we work,
play and live. There is a dramatic increase in the amount of
information available to us, as also an increase in the speed and
ease of receiving and sending the information. One‘s physical
location is now not as important as before in doing business; one
can do it from one‘s home. Computer literacy is now a basicmunotes.in

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43requirement in almost all fields, and business organizations need
to change their structures and systems to incorporate these new
methods.
The major media and modes to be considered are : –
A.Telephone:
Telephone is a device that transmits speech at a distance
through the medium of electro -magnetic waves. The first telephone
was invented in 1876 by Alexander Graham Bell. Today‘s
telep hone is a very sophisticated instrument with different
applications and services. We also have different types of
telephones.
1.Landline or standard telephones :T h e s ep h o n e so p e r a t e
through a network of cables controlled by telephone exchanges.
Variations o ft h i sp h o n ea r e the cordless‘ phone which allows more
mobility to the speaker within a limited space, and answering
machines, which record messages and the names and phone
numbers of callers when the receiver is not able to take the call.
2.Cellular or Mob ile Phones : These are wireless devices that
use radio waves to transmit sounds. The cellular system divides a
particular geographical area into sections called cells; the purpose
is that maximum number of people can make maximum use of a
limited number of radio frequencies. The cellular system allocates
a set number of frequencies for each call. Thus, two cells can use
the same frequencies for different conversations. The two main
cellular systems in operation are GSM -Global System for Mobile
Communicatio ns, and CDMA –Code -Division Multiple Access.
Cellular phones provide voice communication, SMS (Short
Messaging Service), MMS (Multimedia Messaging Service) and
also Internet services such as E-Mail and Web surfing. While SMS
can transmit textual messages , MMS can transmit images, audio
and video clips in addition to text.
3.Satellite phones : These are used to enable communication for
large international firms, ships and disaster relief work in areas
where communication links are absent or destroyed.
4.Ether net Phones : These are digital phones which connect
directly to a computer network. They allow phone calls to be
placed over the Internet and save money.
5.Multimedia phones: These are phones which add video
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44Telephone Services:
Modem telephones provide different kinds of services:
1.Networking: A telephone network is a connection of two or
more stations that wish to communicate. Networking is a service
which allows us to establish contact with more than one user at a
time. The telephone network also becomes a base for computer
networks and Fax transmissions.
2.Teleconferencing and Videoconferencing :T h e s ea r et h e
modern day alternatives to traditional face -to-face meetings.
Sounds and video are transmitted via phone lines or satellites, so
that people in different places and different countries can
communicate with one another at the same time.
Videoconferencing involves both viewing and speaking and
teleconferencing only involves speaking however, both terms are
used inte rchangeably. Video -conferencing and Teleconferencing
are a form of electronically enabled group communication.
Telephone etiquette : The only tool of communication in a
telephonic conversation is our voice. It is therefore important to
create a good impres sion on the listener by using our voice
correctly. We must speak clearly, politely and pleasantly, with a
smile in our voice. Our speech must be precise. We must also
listen carefully and politely to the other person. Before making a
call, we must mentally prepare the message we want to convey.
When we answer a call, we must first announce ourselves –our
company‘s name, department and soon,then greet thecaller
with aGoodM o r n i n go r Goodd a y .To sum up, our voice must make
a good impact on the listene r.
Advantages of the telephone :
1.It saves time.
2.Wecan communicate without leaving our seat.
3.It provides immediate feedback.
4.It provides immediate proof to the caller that his message has
been received.
5.It provides a large range of services to its subscrib ers such as
STD and ISD (Subscriber Trunk Dialling and International
Subscriber Dialing respectively); call -waiting and call -
forwarding, morning alarm etc.
Disadvantages of the Telephone:
1.It may not always save time, e.g. When there are wrong
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452.It does not have legal validity a telephonic talk cannot be used
as legal proof.
3.Facial expressions and gestures cannot becommunicated over
thetelephone.
4.A telephone call can be made at a wrong or inconvenient time
for the recei ver.
B.Fax:
Fax is the popular name given to the facsimile machine.
(Facsimile means copy). It is like a copying machine linked to a
telephone. It is used to transmit written material, visual material like
photographs, charts, drawings, and diagrams, artwor k, documents
and certificates. A facsimile machine scans a printed page,
converts it into a signal and transmits this signal over a telephone
line to the receiving Fax machine. The receiving machine
reproduces an exact copy of the original document on its in-built
printer. Thus, the fax acts like a long distance Xerox machine. The
received copy contains the date, time and the sender‘s fax number.
The sender also receives a printout confirming the date, time, and
receiver‘s number. The latest digital fax mac hines allow
communication through computers and are much faster. Fax
machines can transmit documents across the world through
satellite networks. The Fax machine is the fastest method of
transmitting documents and technical data. Its main drawbacks are
itscost and, at times, the quality of print on the fax paper.
C.Computers:
A computer is an electronic device used to gather, organize,
modify and generate information. It processes the information
given to it and gives the desired results.
Computers perfor m several functions. They can enter data;
calculate; store data for later use; retrieve the stored data;
compare data and display data in the desired format. A computer
comprises Hardware and Software. Hardware is the general name
for all the equipment inc luding both the computer and its parts,
such as the printer, keyboard, monitor and disk drives. Software is
the name used to describe all the programs which can be used on
the computer. A program is a set of instructions written in the
language of the comp uter.
A computer consists of certain essential devices.
1.The input devices, which include the electronic keyboard and
the compact disks (CDs) and microfloppy disks. Input devices
feed data into the computer.
2.The output devices, through which processed inf ormation can
be received and seen. These are the monitor screen and the
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463.The processing device, which is called the central processing
unit (CPU), is the brain of the computer. It performs the main
functions of the computer.
4.The storage devices, wh ich consist of the hard disk, which
forms the main storage, and the floppy disks , compact discs
and pen drives which store less information than the hard disk.
Computers Networks:
Computers connect with one another through a telephone
network. But the jo bo ft r a n s m i t t i n gt h ed i g i t a li n f o r m a t i o no ft h e
computer over a telephone network is done by a device called a
Modem. Thus, a modem is a device which helps computers to
connect with each other. Computer connections are called
Networks. There are several k inds of networks, large and small,
such as:
a)LAN (Local Area Network) , as the name suggests, connects a
number of computers spread over a relatively small area. LAN is
used in companies to connect several offices within one building,
or to connect several buildings in one complex, LAN is typically
used in colleges, libraries etc.
b)WAN (Wide Area Network) are networks that cover entire
states, and countries.
c)THE INTERNET is the largest network of computers in the
world, connecting individuals and groups to information and to
services all over the world. The computers are connected through
servers; a server being a central computer that contains shared
information.
The Internet originally began as a part of the military
research department of U.S.A. in the 1 960s. Today the Internet is
open to the public at large. It came to India in the 1990s, and from
1995, Internet services in India are offered through VSNL, (Videsh
Sanchar Nigam Limited) on a commercial basis for a fee. Currently
there are private service providers too who offer this facility.
Normally, the telephone line links you, but for faster linkage, the
use of a cable connection or a digital subscriber line is made.
The Uses of the Internet:
The Internet helps us to access information on almost any
subject from anywhere in the world. It gives us factual information,
enables us to research topics, do distance learning, network with
friends and business associates, and conduct business. The net
can put us on an Information Superhighway, where we can s tudy
for a degree or diploma, advertise goods and services, conduct
meetings online, watch films, read books, shop, and get the latest
news. It also has other important uses, such as E -Commerce,munotes.in

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47Videoconferencing and E -mail. E -commerce or E -Business may be
described as using electronic methods and means to conduct
business activities. The Internet has made E -Commerce possible
where the web -sites of the Net can be used to make enquiries,
place orders, market and advertise goods and services, in short, to
buy and sell. The Net has thus created a new international
community which is electronically connected. It is claimed that
each day, throughout the world, more than one trillion U.S. dollars
are transferred electronically and more than 300 billion U.S. dollar s
by foreign exchange transactions. E -commerce is here to stay,
thanks to the Net.
Videoconferencing is done through the Internet. It is a mode of
communication where people use their computers and web
cameras (webcams) and conduct meetings where they can speak
with one another and see one another. Videoconferences enable
face-to-face communication between people who are far away
from each other. It can be used to make presentations, for on -line
teaching, and to enable colleagues to work on a shared projec t. It
can also be used to communicate with family and friends.
E-Mail is one of the most significant uses of the Internet. E-mail or
electronic mail is available free of cost to all Internet users. It has
an address and the format of a letter, although the address is more
compact. An E -mail address is a combination of the sender‘s or
receiver‘s name and the site address.
E.g.vardharai@yahoo.com.
E-mail is the fastest way of transmitting messages with
quick feedback. Messages can be filed, deleted or trashed. Text
messages can be accompanied by photos, graphics, and sounds,
e.g.send inganimated greeting cards withsound andgraphics.E-
mail messages may also contain emoticons. An emoticon is a
represen tation of an emotion using keyboard characters.
E.g. A smiley face is denoted as
E-mail also uses abbreviations and acronyms to convey
messages.
E.g. BTW means by the way; ITA means thanks in advance –and
so on. E -mail has become extremely popular as a mode of
communication due to its many advantages. Internet Messenger
(IM) enables members to chat with one another, discuss important
matters, send photographs, and transfer files.
The World Wide Web is a part of the Internet. It provides a great
deal of varied information. From the World Wide Web the user can
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48The Internet also makes communication within an
organization and outside the organization more efficient and easy,
using either the intranet or the extranet.
D)Intranet is a private internal network within an organization,
meant only for its own employees. It uses the same technology as
the Internet, but the information provided is accessed only by the
people in the organization. Outsiders using t he Internet cannot
access the intranets.
E)Extranet is just an external intranet, which allows certain
authorized people from outside the organization to enter the
network by using a password. Such people include suppliers,
customers, financiers etc.
Intranet and extranet make internal and external
communication easier and save time, effort and money.
In conclusion one can say that the sender has a variety of
options to choose from when he wishes to communicate. He has to
evaluate his needs and select the best method or mode of
communication.
Mary Allen Guffey in Business Communication : Process
and Product (pg.107) gives a succinct overview of choosing
communication channels.
Channel Best Use
1. Face toFace
Communicationwhen you want to be persuasive ,
deliver bad news, or share a personal
message
2. Telephone Cell When you need to deliver or gather
information quickly, when non -verbal
cues are unimportant, and when you
cannot meet in person
3. Voce mail
MessagesWhen you wish to leave important or
routine messages that the receiver
can respond to, when convenient
4. Fax When your message must cross time
zones or international boundaries,
when written record is significant, or
when speed is important.munotes.in

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495. E-mail When you need feedback, but not
immedi ately. Effective for
communicating with a large,
dispersed audience. However
insecurity makes it problematic for
personal, emotional, or private
messages.
6. Face -to-face
group meetingsWhen group decisions and
consensus are important.
7. Video or
Teleco nferenceWhen group consensus and
interaction are important, but when
members are geographically
dispersed.
8. Memo When you want a written record to
clearly explain policies, discuss
procedures or collect information
within an organization.
9. Letter When you need a written record of
correspondence with customers, the
government, suppliers, or other
outside organizations.
10. Report or
proposalWhen you are delivering considerable
data internally or externally.
Tasks :
1.What method or mode of communica tion would you choose in
the following situations? Give reasons for your answer.
(a)When you wish to check with the telephone department why
your telephone line was disconnected.
(b)When you wish to inform your project group that you will not be
able to attend a scheduled meeting.
(c)When you wish to send your testimonial to an overseas
university.
2.Ms. Patil has been recently appointed as Customer Relations
Officer at a BPO. What are the things that she should remember
while interacting with clients on the telephone ?
3.Answer the following questions in one sentence.
(a)What is an intranet?
(b)What is an extranet?
(c)What is verbal communication?munotes.in

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50(d)What is non -verbal communication?
(e)Explain the term/s paralanguage / proxemics / kinesics.
4.Write short notes on :
(a)Silence
(b)Use of poster s
(c)Advantages/Disadvantages of oral communication /written/non -
verbal communication
(d)Telephone / Fax / Computer as a means ofcommunication.

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51Unit -4
BARRIERS TO COMMUNICATION
Learning Objectives :
To learn about the various hurd les that block the process of
effective communication
To understand how to overcome these barriers .
Introduction:
Theword barrier means anobstacle, ahindrance orsimply a
problem that comes in the way of transmission of a message and
blocks the pr ocess, either completely or partially. In the process of
communication, it is necessary that the sender‘s message is not
only received but also understood, because it ensures proper
feedback. However, sometimes the message is not sent properly
or received properly, or it is not fully or correctly understood.
When any such thing happens, we say that a barrier has arisen in
the process. A barrier, therefore, is any factor which interrupts the
process of communication.
Barriers may arise at any point in t he process of
communication from the sender or the receiver, in the message,
the medium, or the feedback. A barrier can even arise outside the
process and still cause an interruption. This means that there are
different kinds of barriers. These can be divi ded into four main
groups.
1.Physical or environmental barriers.
2.Language or semantic barriers
3.Psychological barriers
4.Cross –cultural barriers
1.Physical or Environmental barriers:
Physical barriers can be caused by environmental factors
like noise, time an d distance. The noise created by external factors
like traffic, playing of loud music, trains and aeroplanes, or by
crowds of people, affects our communication. Time becomes a
physical barrier when people have to communicate across different
time zones in different countries. The physical distance between
people who need to communicate can also cause problems
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52Physiological defects and limitations like stammering,
hearing defects, mumbling while speaking, are examples of
physical barriers. Mechanical problems and defects in instruments
of communication also create physical barriers, as in a faulty fax
machine ortypewriter. Similarly, acomputer that hangs, ora
deadtelephonelinecanleadtonon-transmission ofmessa ges.
2.Language or Semantic Barriers:
Language is the main medium of communication and words
are its tools. Language proves to be a barrier at different levels,
such as semantic (meaning), syntactic (grammar), phonological
(pronunciat ion, intonation, pitch etc.) and finally linguistic (across
languages) Thus, language barriers can arise in different ways:
(a)Words are of two kinds: extensional and intentional words.
Extensional words are clear in their meaning and therefore do not
create barriers such as words like boy, chair, garden etc.
Intentional words are words that describe and they can be
understood differently by different people, according to the
meaning that a person gives to t heword. Thus good, bad, beautiful
areintentional words, and a simple sentence like she is a good girl
can create confusion because the meaning oftheword ―good ‖is
unclear.
(b)Sometimes, the same word is used in different contexts, giving
rise totally different meanings. A word like hard, for example can be
used in different ways: hard chair, hard -hearted, hard drink, having
a hard time all these use the same word but the meanings are
different.
(c)Barriers can be created when we come across words, which
have the same sound when pronounced, but which mean very
different things. Examples: words like fair and fare; bear and bare;
council and counsel.
(d)Unfamiliar lang uage becomes a barrier when people do not
know each other‘s language. This barrier can be overcome by
using acommon medium of communication, as in a classroom.
Translation is also an important way of overcoming this barrier.
(e)Jargon or Unfamiliar Terminolo gy: There are some special
terms or technical words used by people belonging to a certain
group or field of work such as doctors, lawyers, computer software
engineers or college students. They use words which are their
own, speciali sed argon whichcannot be understo odby
anyone outside their group.
3.Psychological Barriers :
Psyche means mind. Psychological barriers are created in
the mind. Communication is a mental activity and its aim is to
create understanding. But the human mind is complex an dn o ta l lmunotes.in

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53communication can result in understanding. There are several
kinds of psychological barriers which can come in the way of
understanding.
(a)Emotions: Emotions are among the most common
psychological barriers to communication. The emotion may be
connected to the communication received or it may be present in
the sender‘s or receiver‘s mind, even before the communication
takes place. In both cases, it acts as a barrier. Emotions can be
positive, like happiness and joy, or negative, like fear, anger,
mistrust etc. Both positive and negative emotions act as barriers, if
they are not kept in check.
(b)Prejudice: A prejudice is an opinion held by a person for
which there is no rational basis or valid reason. It can be against
something or someone, or in favo ur of it, but it becomes a barrier
to a meaningful communication. Prejudices are based on
ignorance and lack of information, e.g., prejudices about certain
communities or groups of people.
(c)Halo effect: Sometimes our reactions to people are not
balanced or objective; they are of an extreme nature. Either we like
a person so much that we can find no shortcomings in her/him, or
we dislike someone so much that we can see nothing good in
her/him. In both cases, we commit errors of judgment and fail to
understan d the person.
(d)Self-image or different perceptions: Every person has in her/his
mind a certain image of herself/himself. S/he thinks of
herself/himself in a certain way. This is their perception of
themselves, their self -image. One‘s self -image is the pro duct of
one‘s heredity, one‘s environment and one‘s experiences, and thus
every person‘s self -image is unique and different from the others.
Self-image can create a barrier because we accept communication
which is compatible with our self -image. We avoid or reject
communication, which goes against our perception of ourselves.
(e)Closed Mind: A closed mind is one which refuses to accept an
idea or opinion on a subject, because it is different from his idea.
Such persons form their opinion on a subject, and th en refuse to
listen to anyone who has something different to say about it. A
closed mind may be the result of some past experience or just
habit. It is very difficult to remove this psychological barrier.
(f)Status: Status refers to rank or position. It coul d be economic,
social or professional status. In any organisation, hierarchy creates
differences in rank, and this is a normal situation. Thus, status by
itself does not cause barriers; but when a person becomes too
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54a barrier. For instance, in a business organisation, a senior
executive who is unduly conscious of his seniority will not
communicate properly with his juniors, and will refrain from giving
them the required information. Similarly , if a junior is acutely
conscious of his junior status, he will avoid communicating with his
seniors, even when it is necessary
(g)Inattentiveness and Impatience: Sometimes the receiver may
not pay attention to the sender‘s message, or he may be too
impatie nt to hear the message fully and properly. Such barriers are
common in oral communication.
4.Cross –Cultural Barriers :
Mary Allen Guffey defines culture as the complex system of
values, traits, morals and customs shared by a society. [ Business
Comunicatio n : Process and Product , pg. 120 ]
Cultural diversity within a country, and cultural differences
between people from different countries, are a major cause of
barriers. This is because people are conditioned by their cultures,
and they develop certain hab its of working, communicating, eating,
dressing etc. according to their cultural conditioning. They find it
difficult to get through to people who come from an alien culture,
and who have different habits. A simple thing like a greeting to
welcome a person is vastly different in India from a greeting in, for
example, an Arab country, or in Japan. Food and dress habits of a
different culture can make a person uncomfortable. Concepts of
space and time are also different across cultures; for example,
Indians d o not mind sitting close to each other and sharing space
in offices or in public places. However, a European would not be
able to tolerate such intrusive behaviour. Similarly, people who
come from a culture where time is very valuable will be impatient
with those who come from a culture with an easygoing attitude
towards time, where everything is done in a slow, unhurried way.
II.Overcoming Barriers:
Barriers disrupt communication and interfere with
understanding. They must be overcome if communication has to
beeffective.
Physical barriers are comparatively easier to overcome. The
use of loudspeakers and microphones can remove the barriers of
noise and distance in crowded places like railway stations. Traffic
signals and non -verbal gestures of the traffic p oliceman remove
physical barriers on the roads. Technological advancement has
helped in reducing the communication gap arising due to time and
distance. It is possible to make an alternative arrangement, should
the technological instruments fail. A back -upplan helps in tidying
over any snag.munotes.in

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55Language or Semantic Barriers can be overcome if the
sender and the receiver choose a language which both of them
understand very well. Help from a translator or an interpreter also
helps in overcoming the language bar rier. Exposure to the target
language and training oneself in the acquisition of skills of the
given language too help in overcoming the language barrier.
Language barriers can be avoided by careful study and accurate
use of language. Clarity should be the main objective when using
language. Jargon should be avoided.
Psychological barriers, as also cross -cultural barriers are
difficult to overcome, as they are difficult to identify and even more
difficult to address. Even these can be avoided or reduced by
adopting a flexible and open -minded attitude. The ultimate aim is
to build bridges of understanding between people –that is the main
aim of communication. Training oneself to listen to different views ,
exposing oneself to different environments help i nb r o a d e n i n g
one‘s outlook and cultivating tolerance to multiple views. Teaching
oneself to listen with empathy helps inmaking oneself more open
to others‘ perceptions.
While dealing with psychological or cross -cultural barriers
the sender should make it ap o i n tt o –
(i)use language that is politically neutral and correct.
(ii)present views in simple and objective manner
(iii)focus on the objective of communication
Tasks :
1.Explain, with two examples each, the following concepts:
a)Physical barriers
b)Language barriers
c)Cross-cultural barriers
d)Closed mind as a barrier.
e)Halo effect
f)Emotions as a barrier.
2.How does language become a barrier? Explain with examples.
3.What is self -image? How does it act as a barrier?
4.How can we overcome the various barriers to communication?
5.Defineculture. How do cultural differences create barriers to
communication?
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56Unit-5
LISTENING
Learning objectives :
To make students realize the importance of listening skills.
To develop effective listening skills in students in order to
improve their comprehension skills.
To provide the students with strategies for e ffective listening.
Introduction:
I.The Importance Of Listening Skills:
Listening and speaking are inextricably linked, as they are
complementary elements in the communication process. For all
practical purposes, one cannot take place without the other: we
speak only when there is someone to receive our message and we
cannot listen unless someone has said something or provided
some aural stimulus. Listening has been defined in a rather light -
heart edveinaswhatyoudowhileawaitingyourtimetotalk‖.
However, listening is far from being a passive activity. It must be
pointed out that there is a difference between hearing and
listening. Whereashearing‖ismerely beingawareofsomesound
impingingo n ourears, ―listening‖isaconscio useffortinvolving
mentalactivityto make sense of, and interpret the message, often
against aparticular background or within a certain perspective. As
Nikki Giovanni, an American poet, has said, “I‘m glad I understand
that while language is a gift, listening is aresponsibility.”
It is interesting to note that we spend 40 to 50% of our total
communication time, and one third of our working time, receiving
information rather than transmitting it. The following bar -graph
shows the percentage of communication time people spend on
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57
But, despite the fact that listening is a fundamental and
significant human activity, most people are not very good at it.
They seem to lack the necessary skills, perhaps because,
knowingly or unknowingly, they have neglected the cultivation and
acquisition of these skills. This is borne out by the following facts:
our intake is at or below 25%, that is about half of what is said
during a ten -minute conversation. Weforget half of that within 48
hours. Wejumble up information, if called upon to reproduce it.
It may be recalled that listening is the first means of
acquiring information in the case of very small children. Also,
Second Language Acquisition researchers recognize the
significance of silent peri od: the initial stage in the process of
language acquisition, when the learner confines himself to listening
in order to obtain and assimilate information about the language. It
is only at a later stage that there is a spurt in his language -
producing activity.
Listening also protects us against the wiles of an
unscrupulous speaker who presents matters of an unethical nature
in a convincing and attractive manner. The mass media,
particularly, use such strategies to mould thinking, tastes, styles,
and opini ons of the general public according to a predetermined
pattern. A Spanish proverb effectively cautions us against such a
thing:
“Though the speaker be a fool, let the hearer be wise.” The
process or act of listening encourages a person to use his
discreti on and judgment, and thus make a sensible decision, rather
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58It must be realised that much time and money can be lost as
a result of poor listening habits. Also, strife, conflict,
misunderstanding in interpersonal relationships are often due to
faulty listening practices.
In the absence of fluency on the part of the speaker, the use
of effective listening techniques on the part of the listener can help
the communication situation. Of course, when faced with a fluent
speaker, a good listener is likely to find the message more
interesting and informative, as he plumbs the deeper levels of
meaning and significance and forms new associations and ideas.
The listener is thus less prone to distraction, an dm o r ei n v o l v e di n
reflection and critical analysis.
The practice of attentive listening thus brings with it a wealth
of potential material that can be helpful at some time or other.
Much of this can also be successfully employed in the business
environm ent, where problems can be solved, suitable policies can
be framed, and experiences shared. A good listener is definitely an
asset to an organization. At the managerial level, being a good
listener is even more important, since managers need to
understand the emotional impact of a situation as much as the
technical details, and take the necessary steps to promote the
general interests of the employees. This, in turn, will lead to a
smooth, harmonious functioning of the organization. Profits will
inevitably follow, and the image of the organization will definitely go
up in the public estimation.
In personal life, too, a good listener gets on better with
people; her/his personality is appealing, her/his manner easy and
friendly, and s/he tends to be accepted more readily in company.
Thus, developing effective listening skills ensures success
at various levels. Interestingly, no monetary investment is
necessary. All that is required is determination coupled with
practice and perseverance. To be beneficial, how ever, efforts must
be in the right direction. In this connection, it is well to understand
the nature of listening, in the first place
II.Understanding the nature of the listening process:
Listening is such a routine activity that most people do not
even rea lize that they are poor listeners, and are, therefore, in
need of developing their listening skills. Others may feel that
listening is a very difficult task, perhaps, next to impossible to
achieve. But the truth is that good listening habits can be
cultiv ated, and with practice, much can be achieved. Initially, the
person may find it difficult, but it is well to bear in mind that “He that
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59Understanding the complex process of listening, itself, may
help people bec ome good listeners. Listening involves the
following inter -related steps in sequential order:
Receiving
Attending
Interpreting
Remembering
Evaluating
Responding.
Receiving: This is a kind of physiological process. Thesounds
impinge on the li stener‘s ear. It is only when he takes these in
that he can go further in the process of getting at the meaning.
Attending: The listener has tofocus hisattention onthe -
message ‖to the exclusion of all other sounds that may be
present in the immediate surroundings.
Interpreting: The ―sounds‖have tobeinterpreted, thatis,the
listener tries to understand the message that is being put
across against the background of his own values, beliefs, ideas,
expectations, needs, experience and background —and, of
course, taking into account the speaker‘s viewpoint.
Rememberin g:Thisinvolves st oringthemessa geforfuture
reference.
Evaluating: The listener makes a critical analysis of the
information received, judgingwhetherthe message makes
sense while separating fact from opinion.
Responding: Then the listener gives a verbal or nonverbal
response, and takes action accordingly.
Having considered the above six steps, it becomes clear
that effective listening is an active process which requires full
concentration, attention, and conscientious / conscious effort.
It is possible for every one of us to improve our listening
skills. However, becoming a good listener is not a simple matter,
as effective listening can be obstructed by a number of pe rsonal or
environmental influences. The person should be aware of, and,
more importantly, alert to potential distractions. Often, bad listening
behaviors are habitual.
III.Impediments/ Barriers to listening
1.Distractions: These distractions are:
Semantic dist raction: The listener is confused about the actual
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60Physical distraction: This occurs when, for example, the air -
conditioning system or microphones fail; or there is noise in the
surroundings; or, som eone is constantly tapping on the table with
hisfingers.
Mental distraction: This occurs when the listener makes himself
the central character of his daydreams and forgets the speaker.
2.Faking attention or pretending to listen: This usually
happens when themessa geconsists ofmaterialofadifficult
or uninteresting nature. The listener may not want to bother to
understand the message. Sometimes this may happen when he is
critical of the speaker‘s looks, style of speaking, or mannerisms.
3.Defensiv el i s t e n i n g : This kind of listening takes place when
the speaker‘s views challenge the listener‘s beliefs.
4.Prejudice: The listener‘s bias, negative attitude, preconceived
notions, fears, or stress adversely affect listening.
5.Constant focus on self: Ap e r son‘s ego may also adversely
affect his listening. The Roman playwright, Terence, reveals this
aspect of human nature when he says: “My closest relation is
myself.” A person may believe that he knows everything that the
speaker is talking about and, theref ore, does not need to listen.
6.Information overload: The listener may be exposed to too
many words or points and, therefore, be unable to take in
everything. He should learn how to pick up the important ones, and
discard the rest.
7.The thinking –speaking rate: The speaking rate is125 –
150 words per minute, whereas the thinking rate is 400 words per
minute. So the listener‘s mind is moving much faster than the
speaker is able to speak. The extra, intervening time, before the
speaker arrives at his next po int, is usually spent in shifting one‘s
mental focus, or in day dreaming.
8.Short attention span: The natural attention span for human
beings is short. This is not easy to rectify, except for making a
special effort to concentrate and prolong one‘s attentio n span.
Although all the above -mentioned factors could cause the listener
to get distracted, s/he can consciously adopt certain strategies that
will make her/him a good listener.
IV.Listening Strategies:
While listening is an innate ability, it can be devel oped into a
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61which greatly enhance its effectiveness. From childhood itself,
good listening habits could be inculcated through listening to a
story, to music, or to a song. The child will then be more receptive,
and later, respond effectively to training in more advanced listening
strategies. A few of these strategies are considered here:
1.Preparation for listening: The environment must be made
conducive to listening. Noise and disturbance can be kept out by
closing doors, or using a soundproof room. Suitable arrangements
for microphones and stationery should be made in advance.
Interruptions must be prevented. By these means, the physical
barriers can be eliminated, and the listener can focus his attention
on the speaker.
2.Background knowledge: The listener should train himself to
listen intelligently, bearing in mind the speaker, the topic and the
situation.
3.Re-organize the material in his mind: The listener should be
able to recognize patterns used by the speaker, and should be
able to identify the main / central point, and supporting points; s/he
should re -organize the material in his mind according to certain
headings so as to facilitate recall.
4.Focusing on the speaker‘s matter rathe r than manner: The
listener should not be prejudiced by the personal or behavioural
traits of the speaker or his style, but should f ocusonthecontent,
intent,andargumentofthe =message‘.
5.Listening actively: Listening actively also involves being
cons iderate to the speaker and empathising with him. By adopting
an alert listening pose, the listener puts the speaker at his ease
and places him in a better position to formulate and express his
ideas. The listener should have a positive attitude towards a t alk,
believing that in every talk there is always at least one point or idea
that will be of value and special significance to him.
6.Listen with complete concentration: The listener should learn
to differentiate between argument and evidence; idea and
exam ple; fact and opinion. He should attempt to pick out and
paraphrase the important points while disregarding unimportant
ones.
7.Interaction: Interaction and participation in a discussion, no
doubt render the listening process more fruitful; but the followin g
points must be observed:
Allow the speaker to finish what he is saying before you begin to
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62Do not disturb the speaker by indulging in some undesirable
form of activity, like talking to the person next to you, looking at
your watc h, or walking out, or appearing uninterested or
distracted.
Do not contradict the speaker.
Do not let your mind move on to anticipate what isgoing to be
said next just listen carefully to what the speaker is actually
saying. If you are busy planning your replies, you are likely to
miss important points, and make irrelevant or stupid
statements.
Avoid passing comments or making remarks while the speaker is
speaking.
Only one person should speak at a time.
Be open to new ideas; ask questions, seeking clarif ication of
meaning, ideas, and thoughts; or to gather additional
information, or to direct the flow of the conversation.
8.Patience: Do not get restless or impatient. Be careful not to
lose your temper.
9.Motivation: The experience of listening is more rewar ding if the
listener is motivated and interested. Confidence and trust in the
speaker are necessary.
10.Introspection: The listener must honestly examine his existing
listening habits, and consider whether he can improve upon them.
11.Provide positive feedback :By maintaining eye contact, using
proper facial expressions, nodding from time to time, leaning
forward, and so on, you put the speaker at his ease, encourage
him and thus enable him to give of his best.
12.Listen for vocal or non -verbal cues: By noting th e speaker‘s
tone of voice or facial expressions, it is possible to get at his
meaning more effectively. Pay attention to what the speaker says
as much as to what he leaves unsaid.
13.Make good use of the time -gap between speaking and
thinking: Spend this ex tra time reflecting on what the speaker is
saying. You could even jot down points or make brief notes on
selected topics. Make a kind of mental summary, and evaluate
what is being said. You may anticipate what the speaker is going to
say next, but it is ne cessary to listen carefully to find out whether it
is exactly what you expected or whether there is some difference.
If there is a difference, it is important to consider what the
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6314.Practice your listening skills: Train yourself to use your
listening skills every time you have occasion to listen. Do not
abandon the task of listening, especially if you find it difficult.
Listening isanactofthewillasmuch asamatter ofhabit. It
depends on mental conditioning. Willi ngness to make an effort,
therefore, matters.
15.Adapting to different communication events: Effective
listening includes the ability to adapt to several communication
events, involving intercultural communication situations. The
listener must be aware of fa ctors like culture, gender, race, status,
etc., and not allow them to adversely affect his listening. In this
connection, tolerance, patience, and empathy are important.
V.Styles of Listening:
The following are the different styles of listening available for
the listener to choose from:
1.Empathic listening: In this case we empathize with the speaker,
and understand things from her/his point of view, allowing
her/him the freedom to express her/his emotions.
2.Informational listening: Here, the aim is to recei ve information.
So the listener pays attention to the content, and makes
decisions regarding the taking of notes; s/he also watches for
related non -verbal cues, asks questions, and focuses on the
replies. All this helps her/ him to assimilate the informat ion.
3.Evaluative listening: Weare exposed to a great deal of material
intended to persuade us to accept the speaker‘s point of view;
we need to evaluate what we hear, and note only certain points
that are of interest or use to us.
4.Appreciative Listening: Weuse this form of listening when we
listen to our favourite music or watch an enjoyable television
programme. In these instances, careful listening greatly
enhances pleasure and appreciation.
5.Critical listening: This is when we listen critically and
analy tically, carefully considering the topic of the argument, the
intentions of the speaker, his omissions, his point of view; his
credibility and so on.
Conclusion:
We may conclude by observing that effective listening is a
positive, intellectual, emotional, and active process, and to
improvets effectiveness, it is necessary to set one‘s mind to the
task. Poor listening habits can be changed through conscious
effort, hard work, self -discipline, attention, a positive attitude, and
determination. So, there is n o excuse, really, for being a bad
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64The following diagram provides, in a nutshell, the
characteristic features of a Good Listener:
Tasks :
1)Though the speaker be a fool, let the hearer be wise‖.Explain
the importance of listening in the light of this statement.
2)How can you improve your listening skills?
3)While attending alecture, what distractions doyouexperience in
your attempt to listen to the lecturer?
4)What are the responsibilities of a l istener in a speech situation?
5)What are the barriers to effective listening? How can we
overcome them?
6)Identify your own listening style.
7)Explain the complexity of the listening process.
8)Fill in the blanks:
a)Listening is ----------- activity, whereas hearin gi s---------------
-activity.
b)Listener canprovide with non verbal/
verbal cues.
c)The causes of ineffective listening are:
d)a. b c. .
e)The qualities of a good listener are:
a.------------- b.----------- c.----------
f)The listener who takes down sele ctive, brief notes can be
termed asa listener.
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65Unit -6
BUSINESS ETHICS
Concept and Interpretation
The word ethics is derived from Greek origin –‘ethos’ which
means character or the science of ideal human behaviour.
According to the Concise Ox ford Dictionary ‘ethics’ is the treating
of moral questions. In the Chambers Dictionary, ‘ethics’ is a code
of behaviour considered correct.’
“Business ethics in short can be defined as the systematic
study of ethical matters pertaining to the business, i ndustry or
related activities, institutions and beliefs. Business ethics is the
systematic handling of values in business and industry.” —John
Donaldson
Business ethics is the study of appropriate business policies
and practices regarding potentially cont roversial subjects including
corporate governance, insider trading , bribery, discrimination,
corporate social responsibility, and fiduciary responsibilities. The
law often guides business ethics , but at other times business ethics
provide a basic guideline that businesses can choose to follow to
gain public approval.
Business ethics ensu re that a certain basic level of trust
exists between consumers and various forms of market
participants with businesses. The concept of business ethics
began in the 1960s as corporations became more aware of a rising
consumer -based society that showed con cerns regarding the
environment, social causes, and corporate responsibility. The
increased focus on so -called social issues was a hallmark of the
decade.
Ethics means the set of rules or principles that the
organization should follow. While in business e thics refers to a code
of conduct that businesses are expected to follow while doing
business. Through ethics, a standard is set for the organization to
regulate their behaviour. This helps them in distinguishing between
the wrong and the right part of the businesses. The ethics that are
formed in the organization are not rocket science. They are based on
the creation of a human mind. That is why ethics depend on the
influence of the place, time, and the situation. Code of conduct is
another term that is us ed extensively in businesses nowadays. It is amunotes.in

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66set of rules that are considered as binding by the people working in
the organization.
Values are fundamental beliefs and form the basis of our
conduct. It is rightly said that ‘conscience is the custodian of
values’. Values learnt from early childhood and in our growing up
years shape our future path. When we live and work on the
foundation of truth, charity, sacrifice, non -violence, compassion,
selflessness, courage and good conduct we follow moral
principle s. These moral principles are an intrinsic part of the
teachings of all religious. Value systems and moral principles that
act as guidance rules provide an ethical framework for society.
Ethical rules are present in all societies, all organizations and all
individuals. It is universal. People all over the world need rules to
govern their lives and conduct and keep them within moral
boundaries. The modern workplace can become a battleground
with discrimination, prejudice, inequality and harassment if it is n ot
regulated by a moral and ethical code.
Ethical Principles for Business
Honesty
Integrity
Promise -Keeping & Trustworthiness
Loyalty
Fairness
Concern for Others
Respect for Others
Law Abiding
Commitment to Excellence
Leadership
Reputation & Morale
Accoun tability
Types of Business Ethics
Personal responsibility.
Representative or official responsibility.
Personal loyalties.
Corporate responsibilities.
Organizational loyalties.
Economic responsibilities.
Technical morality.
Legal responsibility.
Importanc eofBusiness Ethics
The term ‘Business Ethics’ refers to the system of moral
principles and rules of the conduct applied to business. Business
being a social organ shall not be conducted in a way detrimental to
the interests of the society and the busine ss sector itself. Everymunotes.in

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67profession or group frames certain do’s and do not’s for its
members. The members are given a standard in which they are
supposed to operate. These standards are influenced by the
prevailing economic and social situations. The codes of conduct
are periodically reviewed to suit the changing circumstances.
1.Corresponds toBasic Human Needs:
The basic need of every human being is that they want to be
a part of the organisation which they can respect and be proud of,
because they perc eive it to be ethical. Everybody likes to be
associated with an organisation which the society respects as a
honest and socially responsible organisation. The HR managers
have to fulfill this basic need of the employees as well as their own
basic need that they want to direct an ethical organisation. The
basic needs of the employees as well as the managers compel the
organizations to be ethically oriented.
2.Credibility inthePublic:
Ethical values of an organisation create credibility in the
public eye. People will like to buy the product of a company if they
believe that the company is honest and is offering value for money.
The public issues of such companies are bound to be a success.
Because of this reason only the cola companies are spending huge
sums of money on the advertisements now -a-days to convince the
public that their products are safe and free from pesticides of any
kind.
3.Credibility with theEmployees:
When employees are convinced of the ethical values of the
organisation they are worki ng for, they hold the organisation in high
esteem. It creates common goals, values and language. The HR
manager will have credibility with the employees just because the
organisation has creditability in the eyes of the public. Perceived
social uprightness and moral values can win the employees more
than any other incentive plans.
4.Better Decision Making:
Respect for ethics will force a management to take various
economic, social and ethical aspects into consideration while
taking the decisions. Decision making will be better if the decisions
are in the interest of the public, employees and company’s own
long term good.
5.Profitability:
Being ethical does not mean not making any profits. Every
organisation has a responsibility towards itself also i.e., to earn
profits. Ethical companies are bound to be successful and more
profitable in the long run though in the short run they can lose
money.munotes.in

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686.Protection ofSociety:
Ethics can protect the society in a better way than even the
legal system of the countr y. Where law fails, ethics always
succeed. The government cannot regulate all the activities that are
harmful to the society. A HR manager, who is ethically sound, can
reach out to agitated employees, more effectively than the police.
Business ethics is c oncerned with achieving transparency in
business, environmental friendly policies, avoiding misinformation,
rights of employees, social welfare measures, intellectual property
rights etc. Raising their ethical profile ensures a positive response
from consu mers in today’s market place.
Personal integrity at the workplace
Our loyalty is to both our employer as well as to society. Our
effort should be to serve both with integrity. We should not work
against the interests of the organisation nor harm the prosp ects of
co-workers. Maintaining integrity at work is crucial for employees at
all levels, but especially as you continue to move up the ladder.
Having integrity helps foster an open and positive work
environment and an ethical approach to decision -making.
Not only is workplace integrity beneficial to businesses, but
it is also beneficial to the individual. By showing that you are an
honest and dependable person, you’ll gain respect and trust from
your peers and managers.
There are tangible and intangible benefits to being ethical in
your workplace, including:
Improved employee retention: Strong business ethics often
encourage managers to show appreciation for an employee’s
hard work. As a result, team members may be more loyal to the
company and strive to be more productive.
Stronger collaboration: Team members who practice business
ethics have respect for one another and work well together. This
camaraderie not only fosters a pleasant work environment, but it
also helps with team collaboration and product ivity.
More effective leadership: When a manager follows business
ethics, they’re more likely to treat employees well. As a result,
teams are more inclined to follow their leadership. This
minimizes discipline issues and teams’ trust in managers and
super visors when tough decisions need to be made.
Increased professional value: When you have a positive
attitude toward your work and those you work with, you can
increase the quality of your work. It also increases your value to
your team and the company as a whole.munotes.in

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69Business Ethics And Media
Media ethics is the best division of applied ethics dealing with the
specific ethical principles and standards of media , including
broadcast media ,film,theatre ,t h e arts,print media and the
internet. The field covers many varied and hi ghly controversial
topics, ranging from war journalism toBenetton ad campaigns.
Media et hics promotes and defends values such as a
universal respect for life and the rule of law and legality.[1]Media
Ethics defines and deals with ethical questions about how media
shou ld use texts and pictures provided by the citizens.
Provide Value. ...
Don't Just Promote. ...
Post What YOU Would Want to Read. ...
Learn How to Create Titles That Grab Attention. ...
Understand the Value Proposition. ...
Always Deliver on Your Pro mise. ...
Make Your Followers Feel Important .. . .
Give Back to the Community.
Be Personal, Where Appropriate.
Promote Your Social Media on Your Blog.
Advertising plays a important role in advertising product and
services. In a globalised world sellers use a various methods to
draw the attention of consumers. This often leads to malpractice.
Though commercial advertising is regulated, companies often
engage in subtle forms of deception or make exaggerated claims
about their products. . Companies often c ompare competitors’
products and depict them in a negative light. Advertising,
promoting cigarettes and over -the-counter medicines claiming
health benefits are unacceptable because they play with the health
of consumers.
Computer Ethics
Computer ethics are a set of moral standards that govern
the use of computers. It is society’s views about the use of
computers, both hardware and software. Privacy concerns,
intellectual property rights and effects on the society are some of
the common issues of compute r ethics.
Privacy Concerns
Hacking –is unlawful intrusion into a computer or a network. A
hacker can intrude through the security levels of a computer
system or network and can acquir0e unauthorised access to
other computers.munotes.in

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70Malware –means malicious so ftware which is created to impair
a computer system. Common malware are viruses, spyware,
worms and trojan horses. A virus can delete files from a hard
drive while a spyware can collect data from a computer.
Data Protection –also known as information pri vacy or data
privacy is the process of safeguarding data which intends to
influence a balance between individual privacy rights while still
authorising data to be used for business purposes.
Anonymity –is a way of keeping a user’s identity masked
through various applications.
Intellectual Property Rights
Copyright –is a form of intellectual property that gives
proprietary publication, distribution and usage rights for the
author. This means that whatever idea the author created
cannot be employed or disse minated by anyone else without
the permission of the author.
Plagiarism –is an act of copying and publishing another
person’s work without proper citation. It’s like stealing someone
else’s work and releasing it as your own work.
Cracking –is a way of br eaking into a system by getting past
the security features of the system. It’s a way of skipping the
registration and authentication steps when installing a software.
Software License –allows the use of digital material by
following the license agreement. Ownership remains with the
original copyright owner, users are just granted licenses to use
the material based on the agreement.
Social Impact
Computers and the internet help people stay in touch with
family and friends. Social media has been very popu lar nowadays.
Computer gaming influenced society both positively and
negatively. Positive effects are improved hand -eye
coordination, stress relief and improved strategic thinking.
Negative effects are addiction of gamers, isolation from the real
world a nd exposure to violence.
Computer technology helps the government in improving
services to its citizens. Advanced database can hold huge data
being collected and analysed by the government.
Computer technology aids businesses by automating
processes, repo rts and analysis.munotes.in

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71Case Study On Piracy
The Business Software Alliance (BSA) has received $150,
000 from an unnamed Melbourne engineering company in the year
2011. This company was allegedly using unlicensed copies of
Microsoft, Autodesk software and Ado be. Under Australia’s
Copyright Act, compensation and penalizing damages were settled
for outside of the courts hands. Whilst in 2012, BSA Australia
settled another 14 cases of software piracy. These cases totalled
to an astonishing $440, 237, additionally , each offender had to not
only pay for copyright infringement bill, but also were obligated to
pay for genuine software licenses for its continuation. During the
months of July, BSA Australia offered $20,000, a huge increase
from $5,000 to whistle blowers within the company. The term
‘whistle blowers’ is defined by the act of a worker, reporting
suspected unlawful activity within an organisation. As said by BSA,
27 per cent of settlements were accounted for by the architectural
design industry, whereas 20 percent of settlements occurred within
the engineering subdivision. Alongside with this was the piracy
cases affected by manufacturing firms totalling to another 20
percent. Within Australia, the state of Victoria was recorded with
having the majority of s oftware settlements in 2014, obtaining a
shocking 74 per cent closely followed by Western Australia with 14
per cent of settlements. A study commenced by BSA Global
Software Piracy Study shows Australia’s software piracy rates have
been decreasing 1 per ce nt each year.
In another software piracy case involving Microsoft, one
of the world’s leading manufacturers of computer software settled
3,265 software piracy cases worldwide. Starting from 2005, the
company received numerous consumer rep orts and tips counterfeit
software after discovering malware and viruses on recently bought
items. On March 2013, Microsoft launched a universal investigation
based on pirated software. In this study, it concluded that roughly
33 percent of the software on the market is forged. In addition to
exploring with studies, Microsoft uses other supplementary means
in order to attempt to prevent counterfeiters. It considers the use of
“URL takedowns” requested to Google more than any other
company in the world, dema nding specific sites as pirated or
copyright material. Recently Microsoft was paid $304, 994 in
damages after software called Software Paul was found guilty of
selling counterfeit Microsoft softwares. Microsoft is still trying to find
counterfeiters as it affects their company tremendously. "Software
counterfeiting negatively impacts local and global economic
growth, stifles innovation, and puts consumers and businesses at
risk," Microsoft Cybercrime Center associate general counsel
David Finn .munotes.in

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72Corporate Social Responsibility
Corporate Social Responsibility is not a cosmetic; it must be
rooted in our values. It must make a difference to the way we do
our business.
Corporate Social Responsibility (CSR) is when a company
operates in an ethical and sustain able way and deals with its
environmental and social impacts. This means a carefulconsideration of human rights, the community,environment, and society in which it operates.
Corporate Social Responsibility (CSR) and related activities
enhance the corporate citizenship profile of an organisation. In a
globalised world it is not merely economics that will define success
and profitability but good labour practices, environmental
conservation and protection of human rights as well. Global
reputations can be made and marred by the quality of corporate
citizenship
Aims of Corporate Social Responsibility
(1) Treat employees fair ly and equitably
(2) Operate ethically and integrity
(3) Respect human rights
(4) Protect and sustain the environment
(5) Show care and concern for the communities
Benefits Of Corporate Social Responsibility
Increased brand awareness and recognition. If y ou’re
committed to ethical practices, this news will spread. More
people will therefore hear about your brand.
Cost savings. Many simple changes in favour of sustainability,
such as using less packaging, will help to decrease your
production costs.
An adva ntage over competitors. By embracing CSR, you
stand out from competitors in your industry. You establish
yourself as a company committed to going one step further by
considering social and environmental factors.
Increased customer engagement. If you’re usi ng sustainable
systems, you should shout it from the rooftops. Post it on your
social media channels and create a story out of your efforts.
More benefits for employees. There are also a range of
benefits for your employees when you embrace CSR. Your
work place will be a more positive and productive place to work,
and by promoting things like volunteering, you encourage
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73Case Study on CSR AND MEDICAL/E -WASTE MANAGEMENT:
Medical waste management should be a major concern and
responsibility of health care organisations. These organisations
must observe the medical ethic to “first do not harm” to their
employees, health care workers and professionals, waste
handlers, patients, the public and the environment.
As far as medical w aste is concerned, disposal mechanisms
must be stringent and foolproof to prevent the risk of infection,
toxicity and contamination. Ethical and religious norms are also to
be respected.
In a digital world, electronic waste or e -waste is a growing
problem . The more electrical and electronic devices we use the
more we discard. Organisations must strictly follow disposal
protocols and use tools like Life Cycle Assessment (LCA),
Extended Producer Responsibility (EPR) etc., along with proper
collection and saf e recycling methods.
Organisations must select proper waste treatment and
disposal methods from a technical and regulatory standpoint to
ensure health and safety.
Discrimination on the bases of gender
Abuse of legal system in trafficking of girl
Commission calls for report from Delhi Police
Commissioner The Commission has taken suo -motu cognizance of
a complaint filed by the NGO, International Law Affiliates on the
plight of poor girls in Nepal and India being trafficked and forced
into pros titution in various red light areas. The complainant, while
requesting the Commission to consider taking action, had
forwarded a copy of his petition addressed to the Chief Justice of
India dated 27 December 2004 as well as a news article captioned
"The Gi rl Breakers of Delhi" published in a national daily on 19
December 2004.
The news article is a gory narration of trafficking and
exploitation of girls belonging to lower strata of the community. It
makes a reference to the collusion between the pimps, brothel
owners and police officials to force poor gullible girls into the
prostitution racket. As an example the news article highlighted one
of the modus operandi as: -
"The farce follows set stages: a trumped -up case is
registered agains t these minor girls falsely alleging that they were
trying to solicit clients in a public place. The minor girls are then
arrested and kept in lock -up while the police prepare a challan
wherein the minor girls age is entered as 21. This entry is
apparently sufficient to transform overnight the minor girl into anmunotes.in

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74adult for all subsequent court proceedings. After this, these minor
girls are produced before a magistrate and released on bail."
The Commission observed that the contents of the article ,i f
true, portray a dismal picture of exploitation and trafficking of girls
by the abuse of legal system in connivance with the authorities
who are supposed to provide protection against such exploitation.
The article points towards an organized racket in trafficking of girls
and raises a serious human rights issue, which needs to be
addressed with all seriousness.
It has directed that a copy of the petition along with a copy
of the news article referred to above be forwarded to the
Commissione r of Police, Delhi with a request to inquire into the
matter and submit his report within four weeks.
SURROGATE ADVERTISING:
Advertising is an important marketing tool and creates
awareness about the market. But at the same time it makes use o f
subterfuge to mislead people especially while endorsing alcoholic
drinks and cigarettes. Since the government, in order to protect
public health, has banned the advertisements of these products in
2002, manufacturers have used surrogate advertising to ac hieve
their ends. A surrogate is something or person acting as a
substitute, put in place of the original. To get past the liquor,
tobacco and gutka ban, companies introduce other products with
the same brand name. Through brand extension customers are
constantly reminded of the original products. For example
‘Carlsberg glasses’, ‘Royal Stag CDs’, ‘Kingfisher water’, etc.
Tobacco, gutka and liquor companies sponsor awards and sports
events and even teams. Red & White bravery awards, Manikchand
awards and Ro yal Challengers are well known examples of
surrogate advertising.
What is Business Ethics, illustrate the answer with example.
Write short note on below concept.
a)Personal integrity and the workplace
b)Business ethics and media
c)Computer ethics
d)CSR
Questions :
a)Define business ethics and explain its importance?
b)What are gandhiji’s views on business ethics?
c)What are the aims and objectives of CSR?
d)Give examples of organisations and the kind of CSR they are
involved in?
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757
THEORY OF BUSINESS LETTER
WRITIN G
Learning Objectives:
To revise the basics of drafting business letters
To revise the drafting of business messages
This will include revision of
Components/ Parts/Structure of a Business Letter
Formats/ Layouts of a Business Letter
Principles of Busin ess Letter Writing
Importance of Appearance of a Business Letter
Some useful tips for Business Letter Writing
Transmission of messages with business letters is a
preferred way of communication. Despite the popularity of e -mail
communication for internal a nd external communication, business
letters have maintained their importance in commercial
communication. A business letter has all the advantages of written
communication in that it is a permanent legal document, it can be
stored and referred to when requ ired.
A business letter is different from a personal letter in its
structure. Since a business letter represents the organisation, this
chapter proposes to revise for students the basics of business
letter writing.
I.Components / Parts of a Business Letter :
A business letter has the following components:
i)The Basic/Obligatory Parts :
1.The address of the Sender/ Letter Head/ The Head address
2.Date
3.Inside Address/ Receiver‘s Address
4.Salutation
5.Body of the letter
6.Complimentary Close
7.Signature
1.The Address of the S ender/ Letter Head or the Head
Address -
Position: if we start from the top of the page, the head address
comes first.munotes.in

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76Contents: The name of the company or firm is printed in the centre
of the page while the detailed address, telephone number etc are
indic ated in the margin. This is not a rigid pattern and many
organisations like to print the address in the middle of the page just
below the name of the organisation. Where two addresses are to
be indicated (such as the name of the branch office that is sendi ng
out the letter and the head office) then the address to which the
reply is to be sent is given prominence, while the other address is
printed in brackets or at the bottom of the page.
It includes
i.the name of the sender —an individual or the organisation
ii.the postal , web, e -mail address
iii.contact details such as telephone, telex, fax numbers
iv.logo or emblem of the sender
The Head address is prominently displayed and is the first to catch
the receiver‘s attention. Therefore, a lot of effort is taken by the
sender, especially organizations, to aesthetically design it. While
writing the sender‘s address one should keep in mind that it should
look neat, uncluttered and should include only necessary details.
ForExample:
Mr. Ashsish Awasthi,
Marketing Manager, Career Watch,
7, Ahuja Gardens, Andheri [W],
Mumbai 600085
Ph. 266664320. Mob. 9823342405.
Email aash92@gmail.com .
Significance: the head address provides the return address and
telephone number to enable the re ceiver of the letter to contact the
sender. It enables the receiver to know the nature of the business
carried on by the sender. From the letter -head the receiver can
also come to know whether he is dealing with a proprietary
concern, partnership, and priv ate limited or public limited company.munotes.in

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772.Date:
Position: some companies print letterheads indicating where the
date should be typed. Where this is not done the typist chooses the
right place for it. It is usually typed three spaces below the last line
ofthe sender’s address in the following manner:
a)On the right side of the page in the indented, semi block,
modified block, hanging indention and demi -official forms
b)On the left side of the page in the full block and NOMA forms;
c)In the centre of the page whe n the letterhead is simple or in the
B.F.G. form.
Contents: A business letter must contain the date, month and the
year on which it is written.
Significance: This gives the letter its legal validity and lets the
receiver know when it was written. It is essential for the purpose of
filing and sorting of letters. It also helps in tracing a letter.
Various ways of writing the date:
a.The American Way :
September 9, 2008 [Month is written first, followed by the date,
which is followed by the year]
b.The Britis hW a y :
9thSeptember, 2008 [Date is followed by the month and the year]
c.The Indian Way
09/09/2008 [Day and month are both written in figures. This could
cause confusion. Soitisbest toavoid this way of writing the date]
3.Inside Address :
Position :t h e full name of the person, firm or company to whom
you are addressing the letter is written two specs below the level of
the date and two spaces above the salutation in the left hand
margin. The first line of the inside address determines the spacing
of the left margin of the letter. This is the position of the inside
address in all the stenographic forms except the demi -official form
in which it is placed at the end of the letter along the left hand
margin.
Contents : This is the address of the receiver of the letter. It
contains the details of the receiver. In official correspondence,
normally this address includes the designation of the receiver, and
his address for correspondence.
Significance : the importance of the inside address lies in the fact
that a s copies of all typed letters are kept, the address makes filing
and future reference easy. It is also important where window
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78Example:
Mr.H.R.Nahta, The Personnel Manager,
Personnel Manager, Bayer India Ltd.,
Bayer India Ltd., ExpressTo wers, Nariman Point,
Express Towers, Nariman Point, Mumbai 400001
Mumbai 400001
It may comprise the full name and designation of the receiver as
well as the name and address of the company he works for. The
letter could be addressed to the company itself. In the case of
partnership concerns Messrs’ or M/s’ can be placed before the
name.
4.Salutation:
Position: the salutation is always placed in the left side margin,
below the inside address or attention line. The salutation is typed
flush with the margin a nd should never be intended.
Contents: the salutation is like greeting a person when you meet
him or her. The contents of salutation depend on the personal
relationship between letter writer and his reader and also on the
form of the inside address.
Some of the formal modes of addressing the receiver:
i.Sir/Madam [Subordinate addressing the superior,
very formal]
ii.Dear Sir/Dear Madam [Most commonly used form]
iii.Sirs or Dear Sirs [To be used when one is writing to a
company and not to an individual]
iv.Respected Sir [no longer being used, avoid using it
while applying for a job]
v. Dear Mr. So andSo [When one knows the receiver]
5.Significance : This is the mode of addressing or greeting the
receiver. Salutation indicates the relationship between the s ender
and the receiver.
6.The body of the letter:
Position: the letter itself, in paragraph form, begins a space or two
below the caption line. When the caption line is placed above the
salutation it begins two spaces below the salutation. The first line
of each paragraph will be intended in the margin depending on the
type of stenographic form that is used. No indenting is done in the
full-block, modified block and NOMA forms. Paragraphs are
indicated by extra spacing between them. If the letter is very l ong,
it should be continued on a separate sheet of paper. It is bad
manners to type on the reverse of a page, even if it is just a line or
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79Contents: a good business letter must build one central idea. The
points made in the letter should be linked w ith the filing and
indexing process. If a banker is writing to a furniture manufacturer
about the poor quality of the desk made by him, he should not, in
the same letter, remind him to collect his passbook. The
information about the pass book should be sen t by separate letter.
Great care should be given to body of the letter and the
presentation of arguments.
While drafting the body of the letter you should keep in mind ‘’you
attitude and your tone should always be polite and tactful.
Significance: undou btedly the body is the most important part of
the letter. All the other parts of the structure such as the date,
salutation, etc. are only relevant in so far as they make the reading
of the body of the letter easier and more convenient.
7.The Complimentary Close [Subscription]:
Position: the complementary is a polite way of saying ‘good bye’.
It is typed two or three specs below the last line of the body of the
letter.
Contents: This is a conventional way of signaling a polite end of
the letter. One must n ot end the letter abruptly. Salutations and
complimentary closes that go together:
SirorDearS i r Yours f aithfully,orYours trul y.
Dear Mr.……
Yours sincerely or yours cordially.
Significance: the complementary close, like the salutation, has no
important function to perform. It only helps to add a polite touch to
the letter and shows the relationship between the corresponds.
Things to remember while writing the complimentary close:
Ending with participle phrases like thanking you, awaitingyour
reply,mustaddwords likeWeare,or =Ia m ,j u s tb e f o r et h e
complimentary close to complete the syntax. Endings such as
Thanking you in anticipation, have become obsolete and are
very rarely used in commercial correspondence of the day.
While writing the complimentary close, please note that
Yin Yours is capital.
Sin sincerely [the first letter of the second word is lower
case.]
The word Yours does nothave an apostrophe. Itshould
notbe written in the following manner: Yours [This is
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808.Signature:
Position: since the signature is written four lines and directly below
the complimentary close, it occupies the same position as the
latter. In the full block form it is written to the left of the page and in
the other forms to the right of the centre. In the NOMA form it is
written to the left of the page, just a space or two below the last line
of the last paragraph
Contents: A letter is incomplete if it is not signed. The signature of
the sender must be followed by his full name, designation and
name of the company. The signature authenticates aletter. Itis
thesignature that makes the letter a legally binding entity, both on
the sender as well as the receiver. However, in many electronically
generated letters, signatures are not required, or an electronic
signature is used.
Vario us ways of signing a letter :
 i.Sd/-
MA h u j a
Mrs. Mona Ahuja, Manager.
 ii.A person holding special power or power of attorney
signing onbehalf ofthefirm. PerproS4
Solutions
Sd/
Ashish A wasthi
iii. A person signing in place of a senior authority inhis
absence
For the Principal Sd/ -
Mrs. Job
Vice-Principal.
Significance: the signature is proof that the person signing has
written what he has in the b ody of the letter. It helps to pinpoint
responsibility for the writing of the letter and the person is
accountable for what has been written. It is the signature the gives
the letter an advantage over other forms of communication.
ii). Optional Parts of a Business Letter:
1.Reference number :
Position : it is slightly above, below or in a line with the date, but on
the opposite side of the page. Some companies print letter heads
which clearly indicate where the number is to be filled in.
Contents : Business letters possess a reference number which
normally comprises of the typist’s initials, the date on which the
letter was received and the serial number of the letter. However,
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81A reference number helps in maintaining the record. At the
receiver‘s end it serves as a context in which the messages get
exchanged. For instance,
The receiver who is responding to a letter of complaint received
writes
This is in reference to your letter no……….
The reference nu mber may contain two numbers and could be
written in the following manner:
Your Reference :
Our reference :
Significance: it is essential for filing purposes in the receiving and
sending companies. It helps to trace previous correspondence on
the same top ic. When the receiver’s reference number is also
quoted it is an act of courtesy and makes the work of fling much
easier at the other end.
2.Attention Line :
Position: when used, the attention is to be placed two paces
below the inside address and two spec s above the salutation. It is
usually written in the centre of the page.
Contents: Attention line is inserted when the sender wants to
focus the attention of the receiver to whom the letter is addressed.
It is written in the following manner
Significanc e:the attention line is only to be used when e letter is
addressed to the company or firm and the letter writer wishes to
attract the attention of a particular individual to the letter.
3.Subject/ The Caption Line:
Position: the caption line is usually p laced below the salutation.
Just above the body of the letter. In the full -block it is placed to the
left; but in all other forms it is typed in the centre of the page.
Contents: The subject line tells the receiver, at a glance, what the
letter is about. It highlights its main purpose. The letter writer must
determine beforehand what s/he wants the receiver to understand
from the letter. The subject line should be written in as few words
as possible, and should capture the essence of the letter. Caption
also helps while sorting letters by the subject and storing them
accordingly.
For Example:
i. Subject: Excuse Note.
ii. At times, instead of subject, ref: or re: is used torefer to
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82For instance:
Re: Your letter dated Sept 9, 2008.
iii. How ever, nowadays, letters may not carry either the subject
or the ref. They may simply have a caption that captures the
essence of the letter.
For example;
Billing Statement for the period 01/02/2008 to 01/05/2008.
Significance: the caption line enables t he reader to understand at
a glance what the letter is all about. It can be passed on
immediately to the officer or department concerned.
4.Enclosures/ [Encl:]
Position: the enclosure notation must be typed a space or two
below the signature, in the left m argin.
Contents: This section contains the attachments, additional
papers that one sends along with the letter. It could be the copies,
photographs or any other supplementary documents. Previously,
attached and stapled papers were labeled separately as
attachment/s. But nowadays, anything that is sent along with the
main document is considered as enclosure. The items enclosed
must be listed in a serial order. This helps the receiving or the filing
clerk.
Significance: this notation is very important for t he mailing clerk.
He need not examine the envelope carefully where no enclosures
are indicated. if they are indicated then first care will be to extract
them safely.
5T h eC o p yt oN o t a t i o n
Position : the notation copy to or cc. is typed two spaces below the
enclosure notation, in the left margin. Though very few companies
today use carbon paper to make copies the phrase” carbon copy”
has remained in use as an indication that a copy of the letter is
being sent to another person.
Contents : These are carbon copy notations that tell the receiver
who the other receivers of the letter are. For example:
i.c.c.Chairperson, Students’ Council
Chairperson, Gymkhana
ii.When, instead of a carbon copy, a fresh copy is sent to more
than one receiver, it is sent with a c aption: Copy to Chairperson,
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83iii.When a copy is sent to another receiver without the knowledge
of the original receiver, then the copy is marked b.c. which means
blind copy.
Significance: this notation is very important for the filing. It also
serves the purpose of informing the reader that a copy of the same
letter has been sent to another party.
6. P.S. [Post Script]: This part of the letter has almost become
redundant in the era of computers where pasting messages,
inserting any bit of information into the main body of the letter is
possible. Earlier, P.S. or post scriptum made possible inclusion of
any piece of information, which the writer had forgotten to include
in the main message and which was important from the writer‘s
point of v iew. However, insertion of P.S. implied carelessness on
the part of the writer who had not planned his message properly.
II.Positioning of the Components and Layouts /Formats of a
Business Letter:
Layout refers to the systematic arrangement of the
components of a business letter, in order to have better readability.
There are many layouts of business letters, namely, Block,
Modified Block, Semi -Block, Hanging Indention, Norma Dorma,
Demi -Official, etc. It would suffice to study the most frequently
used forma ts of the letter. These are -
Full Block Form
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84This is a much used format for business letters. In this
format all the components are arranged close to the left hand
margin. Itfollows two-line spacing between theparagraphs. It
uses open punctuation while writing the sender‘s and receiver‘s
addresses, which means that it does not use commas while writing
these. There is no comma after the complimentary close as well.
This gives the letter a neat and uncluttered appearance. It is a
convenient form for the typist, as all the components are flushed to
the left margin. Some people, however, find it imbalanced for this
reason.
1. Modified Block Form : This is a much prevalent layout
in modern Indian commercial correspondence. It modifies the Full
Block Form in order to break its monotony. It shifts two of the
components –the date and the complimentary close to the right
hand margin. Other features are similar to that of the full block
form.
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852.Semi -Block Form
3. Semi -Block Form
This is a traditional forma t of letter writing. The space is evenly
divided to give the letter a balanced appearance. The sender‘s
address is written at the centre top of the page, date to the right,
inside address to the left, salutation to the left and complimentary
close to the r ight-hand side. While the subject line is written close
to the left hand margin, paragraphs begin five spaces away from
the margin. The addresses are closely punctuated, which means
that all the lines are punctuated.
III.Principles of Business Letter Writing: Cs of Business Letter
Writing:
A business letter either on paper [physical or hard copy], or on the
Internet [soft copy] is the most used form of communication.
Business letters are written for making and answering enquiries,
making and answering complain ts, handling customer relations,
advertising products, making credit enquiries, collecting dues,
earning the goodwill of the customer. The letter must produce themunotes.in

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86desired action; it must ensure the desired feedback. Therefore, the
sender must plan the mess age of the letter properly.
A letter writer, besides acquainting himself with an organisation‘s
procedure and policies, must also possess knowledge of the
language of correspondence. He should also cultivate a clear and
precise manner, along with a sincer et o n e ,w h i l ew r i t i n gt h el e t t e r .
Planning the message involves two elements:
Planning of Content, or the what, which a sender wants to
communicate to the receiver.
Planning of Expression, or the how of the message, which
involves the language, the choice of vocabulary, the tone,
etc.
The letter writer must set the letter in a proper context. S/He
must pay attention to the following principles or essentials of
business letter writing, which are often referred to as the Cs of
business letter writing.
1.Comp leteness : A business message must be complete. It must
not leave out any piece of information. It must answer all the
questions that arise in the mind of the receiver. Consider the
following letter :
The letter writer has left out important details like the policy
number, type of policy, its name, since when the policy became
operational and so on without which action on the part of the
receiver will be delayed.
While handling correspondence with a bank, or a ticket
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87customer ID numbers, and the PNR number, the date of purchase
of ticket, the date of travel and such relevant details that complete
the business message.
While planning the message, it is advisable for the sender to
list all the relev ant points on a separate piece of paper. S/He
should then check if these are included in the body of the
message. S/He should find out if his letter comprehensively
answers all the questions that are likely arise in the mind of the
receiver.
2.Correctness: This is the second principle of business message
writing. First, the writer must ensure that the content is correct. He
must check the facts and figures. He must verify the information
before putting it on paper. Secondly, at the level of conventions of
letter writing, he must not make any mistake. Thirdly, he must
check the message for spelling mistakes, grammatical errors,
unnecessary repetitions, or any mistakes in punctuation. SMS and
E-writing have brought in short forms and telegraphic writing, which
should be avoided while writing a letter.
Inaccurate statements, incorrect information, inappropriate
tone not only create a bad impression on the receiver, but also
spoil the reputation and credibility of the organization that one
represents.
3.Clarity: Abusiness message must be clear at the first reading.
The sender must try to anticipate what the receiver will want to
know, and must communicate his message in such a way that the
receiver will understand it without any difficulty. The sender must
be clea r about the purpose of his letter, and his objective in
sending it. The language must be simple, and the content self -
explanatory, so as to avoid confusion or misunderstanding.
Consider the following example —
…………….,
……………,
I do not know how you collecte d this information stated in the first
sentence of your recent letter that we have announced 20%
discount and the offer is open till July 1 st, is absolutely incorrect.
This can be rephrased as -
Your information about our company‘s offer of 20 per cent di scount
till 1stJuly is not correct/ is unfortunately incorrect.
Long winding sentences, incorrect choice of words, and an angry
tone mar the intent of the letter. Deciding on the purpose, using
short sentences, choosing the words carefully help in bringi ng
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884.Conciseness : The letter writer must be precise. S/He must
work towards expressing more in the least possible words. The
sender must revise the first draft by replacing low information
words with high content words, and rep lacing loose constructions
with compact ones. For example ---
Keeping your interest in mind, I am authorized to make this
offer, so that we serve our valued customer in the best possible
way.
This can be rephrased as -
We are offering this to our valued customers with their best
interests in mind.
The sender must avoid being wordy and repetitive;
ambiguous expressions and words must be replaced with specific
ones; one word for a phrase and a sentence instead of two will
bring in brevity. Brevity can be i nculcated with training.
5.Consideration [You Attitude] and Courtesy: Businesses aim
at developing good relationships founded on consideration and
courtesy, and this can be achieved through interpersonal
interaction. By focusing on you instead of I or we an d emphasizing
the pleasant and the positive, the writer can establish a personal
rapport with the receiver. Politeness costs nothing, but pays much.
The overall tone of the letter must be gentle and considerate. It
may vary and become demanding or aggressi ve, if the situation
demands. But it is best to avoid being insulting or rude.
Courtesy: By c onveying one‘s message politely one earns the
respect of the receiver. A courteous tone speaks of the decency of
the sender and helps to get a positive response f rom the receiver.
It also creates a favourable image about the sender individual or
organization. One must learn to be tactful, thoughtful and
appreciative. The letter must contain polite expressions that show
respect.
For example,
[The letter communic ates the legitimate feelings of a customer who
feels cheated. But it also accuses the sender of having a deliberatemunotes.in

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89plan to cheat customers. The letter sounds offensive and may not
bring appropriate action.]
It could be reformulated in the following way:
One of the functions of a business letter is to earn the goodwill of
the receiver. By being considerate and courteous, the business
letter fulfills this objective.
IV.Appearance of the Business Letter
Creating the right kind of visual impact is just as es sential as
the planning of the message. A well drafted letter, when presented
badly, fails to achieve its purpose. A letter writer cannot afford to
overlook the following points:
a.good stationery.
b.proper allocation ofspace for the components of a busin ess
letter.
c.neat appearance with proper formatting
d.typed, as far as possible
e.if handwritten, then legible, and observing all the basic rules of
writing
f.correct use of punctuation, spelling and grammar
g.clean foolscap paper
h.appropriate font choice, if comput er-generated
i.neatly and appropriately folded
j.appropriate envelope.
k.neatly addressed, preferably in the centre of the envelope.
V.Here are some of strategies that could be adopted while
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901.Careful planning
Before writing the letter, l ist all the points needed to be
covered. This will eliminate the need to rewrite the letter.
2.Short and to the Point, preferably limited to one Page
Business letters should be concise, factual, and focused. Try not to
exceed one page, or the letter coul d lose the attention of the
receiver. Studies have revealed that busy executives or
businessmen do not have either the time or the inclination to read
long letters that run into two to three pages A typical letter page will
hold 350 to 450 words.
3.Short Se ntences and Paragraphs
Keep sentences as short as possible, and break the content
into brief paragraphs. Ideally, a paragraph should not exceed two
to three sentences. This will make the letter more readable.
4.Clear, Concise, And Logical
The logical blocks of the letter should consist of
a)Introduction/Purpose
b)Background /Explanation
c)Summary/Conclusion
d) Expected action from the receiver. This outline is useful for
organizing ideas, and eliminating repetition.
5.Focus on Receiver‘s Needs
While writing the letter, focus on the information
requirements of the intended receiver. One must ask what he
would want from the letter. Has this been addressed? The sender
should put himself in the shoes of the receiver and check his own
reaction to the message.
6.Simple and Appropriate Language
The letter should use simple and straightforward language and
terminology that the receiver is familiar with. Avoid technical terms
and acronyms without explaining them. Do not assume that the
receiver will know them.
7.Review andRevision
Make a first draft, and then carefully review and revise it.
Double -check all facts and figures and make sure all future dates
specified are realistic and reasonable. A letter is a direct reflection
of the person sending it, and by extensio n, the organization that the
person works for. Finally, grammar and spellings need to be
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918.Relegate Technical Details to Attachments
Often, it is necessary to include detailed technical
information as part of a business letter package. In such ca ses,
use the main letter as a one -page cover letter that lists and briefly
explains the attached (or enclosed) documents.
9.Formal, Objective and Factual
The tone and content of a business letter should be formal and
factual. Keep a professional tone. Sent iments do not have a place
in business letters. In other words, avoid ―I feel tha t‖;instead, use
―Ibelieve tha t‖or ―It h i n kt h a t‖.
10.Handle negatives carefully:
Positivism engenders positive response. At times, however,
saying no becomes unavoidable, as one cannot grant all the
requests or demands. But negative messages can be put in
positive terms. For instance, We cannot dispatch the goods on
time because you have not given us the correct address.
This could be rephrased as
We shall dispatch the goods as soon as you provide us with the
correct address.
11.Use Non -Discriminatory Language
Make sure that the letter avoids language that is specific to
gender, caste, race, class or religion. For example, use workforce
instead ofmanpower,orchairpersonratherthan chairman. Most
style -guides contain detailed lists ofsuch offensive terms and
suggest substitutes. Become acquainted with politically correct
vocabulary.
VI. Example of a well written Business letter
This is an ideal letter in terms of appear ance, content, and
conventions of letter writing. The content of the letter and the style
will naturally differ from subject to subject and from letter writer to
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92……….Bank
E 18 Express Towers Nariman Point Mumbai400021.
Ph. (022) 22 8766564/65/66
Telefax. (022) 228766569
11 thJanuary 2008 Mr. N.R.Rana
23, Alok , V.M.Marg Kanjurmarg,Mumbai.
Dear Customer,
Thank you for being a valued customer of ……. Bank.
It has been our continuous effort to offer you the best banking
products and se rvices. As part of this Endeavour, we offer Email
Statements to our Savings and Current Accounts customers
absolutely FREE.
Now, you can look forward to a world of convenience. Not only will
you be able to do away with paper clutter, but also maintain the
statements in your mailbox or on a CD, and take printouts
whenever needed.
If you have a Savings Account, you will get monthly statements by
Email. If you have a Current Account, you can opt for
Daily/Weekly/Monthly statements by Email.
We assure you of our best services at all times. Sincerely
………
Akhila Shrivastav
Head, Payments
Tasks :
1.Write the following letters in Full Block /Modified Block/ Semi
Block form:
a)An Excuse Note.
b)Letter seeking exemption from required percentage of
attendance on accou nt a function in the family.
c)Letter seeking exemption from taking the term end exam on
medical grounds.
d)An apology letter for having disobeyed the authority / having
failed to produce the I card/ having indulged in a rowdy
behaviour.
e)An application for a c haracter certificate/ recommendation letter.
2.Reformulate the following letter using Courtesy and Clarity as
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93
3.Study the following letter. Is it complete? Is it clear? Is it
courteous? Is it offensive? What changes would you suggest to
make it appealing? Effective? impressive?
4.You have been asked by the principal of your college to explain
why you not only carried your mobile to the examination hall but
also left it on during the exam. Write your reply letter.
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948
PERSONNEL CORRESPONDENCE
Learning objectives:
To learn drafting of employment -related letters, important in
applying for a job, or resigning from one and joining another.
Introduction :
This chapter will focus on formal personal correspondenc e
which is exchanged between an individual and an organisation/s.
The main focus will be on the following letters:
1.Statement of Purpose
2.Job-Application Letter and Resume
3.Acceptance of Job Offer
4.Inter-office Memo
5.Resignation
The following four types of l etters will also be considered:
6.Recommendation
7.Appointment
8.Memo warning
9.Termination of services
1.Statement of Purpose: Students aspiring for admission in
foreign universities are required to send an SOP Statement of
Purpose. At times, they are asked to sub mit an essay on a given
topic. This section discusses standard contents of an SOP, though
it may vary from case to case.
i)What is an SOP?
A statement of purpose is a self -introductory essay in which
an applicant introduces her/himself in this case to the Admissions
Committee and states why s/he intends pursuing a particular
course.
Every year, universities are flooded with applications from
students. An SOP is one tool to understand the focus and merit of
a candidate.
An SOP is a personal statement. Th e candidates are
expected to highlight their academic achievements, as well as
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95personality, and convey what qualifies them for the course in a
convincing manner.
The Admissions Committee look s for more than just
academic excellence. It prefers people with diverse backgrounds,
experience, and interests. It looks for well -rounded personalities
who can make meaningful contribution to the university and the
society at large. It looks for a candid ate‘s personal strengths and
characteristics, rather than focusing on the academic
achievements alone.
Example :
……………………..
……………………..
Statement of Purpose
I wish to apply for the Fellowship Programme in Psychology in your
prestigious university.
Ia m particularly interested in the field of Industrial Psychology,
where I did well during my Postgraduate course. I am interested in
doing research in the area, with special relation to the advent of
technology and its impact on productivity and mental healt h.
Coming from a country which has risen to the challenges of the
technological revolution and the resultant stress, I believe, my
research will help in finding out how to strike a healthy balance
between this advancement and holistic human development.
Icompleted my graduation from Mumbai University in the year
2006, with Psychology as my major subject. Thereafter, I
completed my M.A. Honors programme with distinction in
Psychology form S.N.D.T. University, Mumbai. My grade cards are
attached to support mycandidature.
Apart from academics, I have participated in outdoor sports and
represented my college in Hockey. Debating and teaching have
been my other areas of interest. I have always considered it
obligatory to help the under -privileged sections of the society. I,
therefore, worked with Shraddha, an NGO, in their community
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96
ii)Some useful beginnings for SOPs :
(i)I want to pursue Ph.D. in………
(ii)I realized I was keen on …….
(iii)I have chosen to study ……. because I have enjoyed
studyin g…and am keen to
proceed to a more advanced level…….
(iv)I am interested in studying the subject because it is a very
challenging and fascinating course.
iii)Some useful tips while Writing the SOP:
a.Maintain originality of thought
b.Show that you are well informed a bout the rating of the
university.
c.Focus on key points of your profile –achievements, projects
accomplished, academic achievements.
2.Job Application Letter and Resume :
Covering Letter: A covering letter is a letter that introduces the
applicant to his p rospective employer, explains his suitability for the
job applied for, by summarizing his skills, abilities, experience. The
main purpose of the letter is to catch attention of the prospective
employer by highlighting the applicant‘s strengths, and encoura ge
her/him to take a look at the resume with interest.
While writing a cover letter, requirements mentioned in the
advertisement should always be remembered. The applicant
should try to relate his strengths to that of the requirements of the
advertisement . One could roughly divide the message into three
parts: Introductory paragraph, Middle and Concluding Paragraph.
i.Solicited Letter of Application
Introduction:
While responding to a newspaper advertisement, [Solicited
Letter of Application], the applica nt should mention his source ofmunotes.in

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97information and then state the purpose of his application. Here are
some of the conventional openings of a solicited letter of
application:
With reference to your advertisement which appeared in the
Times ofIndia dated fort h ep o s to f ……..
This is in response to your advertisement in……….
I refer to your advertisement in…………. .
Your advertisement in………. dated …………….. interested me
I am responding to your advertisement in….. for the post of….
ii.Unsolicited Letter of Applicat ion
If a letter is drafted on the applicant‘s own initiative, when
the applicant has either come to know of a vacancy through some
source, or he is anticipating one, and when the organisation has
not advertised the post in any newspaper, the letter could begin as
follows:
(a)Being given to understand that there is / there is likely to be a
vacancy for the post of………. I wish to forward my application
for the same.
(b)I have come to know from Mr……. that there is / there is likely to
be…………………..
(c)Ia ma p p l y i n gf o r the summer job/ leave vacancy for the post of
Middle :
The second paragraph in the letter of application should
introduce the applicant. The writer must highlight her/his strengths
and convince the prospective employer that s/he is the best suited
candidat e for the post in question. S/He must describe her/his
academic achievements, along with her/his skills and experience
that qualify her/him for the post in question.
Conclusion:
The third paragraph should ask for a positive action in the
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98Example of a Covering Letter:
11, Aradhana, B wing Nehru Nagar
Kurla [W] Mumbai 400 098
Mob. 932225678
January 1st,2 0 0 8
The Advertiser Post Bag No.1234, The Times ofIndia, Mumbai
400001
Dear Sir,
Re : Post of IT Consultant
Please consider my application for the post of IT Consultant in your
organisation advertised by you in The Times of India dated 25
December 2007.
I am a Commerce graduate from the University of Mumbai, having
completed my graduation from GES with a first class, in the year
2006. Thereafter, I joined NIIT and completed a two -year course in
Software solutions. I lear nt C, C++, and Java programming
languages. Post instruction training involved w orking on
live projects with two reputed IT companies. Besides my training in
the programming languages, I have also been trained in systems
design and analysis.
My project on =Security Enhancement of Confidential Data‘ won
appreciation of the senior officials at Larson and Tubro Company
Ltd., where I was placed for summer training.
I am enclosing my resume, along with all other testimonials and
certificates. I look forward to an interview with your firm, which is
known for grooming freshers like me.
Yours faithfully Anisha Patel
Encl:
1.Resume
2.Copies of the mark list
3.Graduation Certificate
4.NIIT Certificate
iii)Forwarding Application on the E -mail:
This has become one of the major ways of sending
applications, especially when companies want to speed up the
matter of filling up the vacancies. While forwarding applications via
E-mail, however, the applicant must bear in mind the fact, that anmunotes.in

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99application is a formal mode of comm unication. S/He should not
become casual in his/her tone and approach.
iv) Resume: The write up which accompanies the covering
letter and which sketches the applicant‘s personal and academic
details, achievements and experience is generally known as the
Bio-data or resume. A resume is also called Curriculum Vitae or
Candidate Profile.
Video Resume :[ M u l t i -media Resume] Newer styles are being
introduced to showcase an applicant‘s personal details in order to
get maximum visibility and enhance the chances of employability.
One such contemporary method is a video resume. With the
advent of technology, it is common to shoot a video, highlighting
one‘s personal qualities and send it to the prospective employer.
This isknown asaVideo Resume. One ofthemajor problems
with video resumes is that it has to be made by a professionally
skilled person. Secondly, it is found that organizations prefer paper
resumes over the video ones, because the executives find
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100A resume aims to highl ight
(a)Personal particulars : Name, address, date -of birth, [marital
status, height, weight are optional]
(b)Academic qualifications
(c)Additional [professional] qualifications.
(d)Experience [written either in a functional manner emphasizing
the skill and the talen t of the writer or chronological manner
listing these in a serial fashion]
(e)Additional information that highlights the strengths of the
applicant
(f)References [Optional]
While writing the resume the applicant must keep thefollowing
tips in minds.
(a)Keep it bu sinesslike. The employer basically wants to know if
the applicant has the ability to take up the responsibilities and
whether he is qualified to do the job.
(b)Freshers should focus on their academic and professional
achievements and what they can do today.
(c)No false information or imaginary picture about oneself should
begiven.
(d)Be realistic. Try and show the person what one really is by
highlighting one‘s plus points and relating them to the job at
hand.
(e)Pay special attention to the appearance of the letter. Use clean,
simple and professional formats.
(f)Double check for spelling, grammar and punctuation mistakes
that could hurt one‘s credibility.
A resume can record events in a chronological or functional
manner.
a)Chronological Pattern :
Chronological resume presents sequential work history/
academic history in reverse order, starting with the most recent
achievement/experience first. This format is preferred by recent
graduates and mid -level managers /executives.munotes.in

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101Example 1 :Chronological Pattern
1.RES
NameUME
Miss Anisha Patel
2.Address11, Aradhana, B wing, Nehru Nagar,Kurla [W], Mumbai, 400067
Cell-932225678
E-mail –Ap0612@yahoo.co.in
3. Date of Birth 11/ 04/1985
4. Education (i) Completed graduation in Commercein 2006 with 67% marks from theUniversity of Mumbai.
(ii)Passed H.S.C.in 2003 with 70%marks from Maharashtra Board.
5.Professional QualificationsAnd SkillsSuccessfully completed GNIIT two -
year course in Software Solution in
2007.Can handle requirements of agiven system and devisemodularprogramming to reach the objective.Can handle programming in C,C++and Java
6. ExperienceSuccessfully completed six monthsummer training with L.and T. inSystem Design Software applicatio n.
7. Extra -Curricular activities Have been a sports -person, have wonmeal in Athletics at the University forthree consecutive years for my college.Am a good organizer, havingorganized Inter -collegiate events at mycollege.
8. References (i) Mrs. Annie Joseph, Principal,St.Stephen College, Bandra,[W]Mumbai 400 050
Tel :(022) 285799340
(ii) Mr. Ravindra Adhikari
Officer -in-Charge, Students’ WelfareDept. University of Mumbai.
Mumbai 400 032.
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102The same resume can be present ed differently as well.
Example 2:
1.RES
ObjectiveUMETo acquire the position of SystemAnalyst and devise innovative costsaving solutions for the benefit ofthe Organization.
2. Professional Qualification Successful completion of a two -
year course form NIIT in SoftwareSolutions. Training as Software
programmer and System Analyst.
3. ExperienceExposure to the System Designexercise at L and T as a trainee.Production and application of theData -Protection Module to protectorganisation‘s sens itive data.
4. Special SkillsGood at organizing events, Goodat people‘s skills Good at sportsGood Communication Skills inEnglish, Gujarati, Marathi
5. Personal DetailsAge: 23 yrsAddress: 11 Aradhana, BWingNehru Nagar, Kurla (W), Mumbai–400067.
Cell-932225678
E-mail –Ap0612@yahoo.co.in
Marital Status: Single
b) Functional Resume:
A functional resume highlights the most relevant aspects of
one‘s professional history, academic information, specializa tion
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103Example :1
Summary: Mr. xxxxxxxxxxxxxxxx
Email :xxxxxxxxx@yahoo.com
Mob:+ 9 1x x x x x x x x x x
Alt:+91 xxxxxxxxxx
•Over four and a half years of IT experience in creat ing
solutions for IT Applications in various positions.
•Over two and a half years in OBIEE and Siebel Analytics
Applications.
•Worked on Configuration of Siebel e business Applications.
•Experience of working on Siebel Implementation, Support and
Maintenance Projects.
•Good understanding of Oracle Business Intelligence
Architecture.
•Involved in Disconnected Analytic Client Installation.
•Good Knowledge on the Siebel Marketing Segmentation.
•Experience in Siebel Analytics 7.x.
•Experience in Working on Siebel Anal ytics Tool and Analytics
Web.
•Good experience in Configuration, Customization and
Integration of Siebel Applications.
•Good Understanding on Siebel Remote Administration.
•Installation and Data warehouse Admin Console.
•ETL Tools (Informatica knowledge and BasicKnowledge on
OWB, ODI)
•Basic Knowledge on ISO/CMM Standards.
Have an excellent track record of inter -personal skills,
professional approach and as a team player.
•Exceptional ability to quickly master new concepts,
applications and a team player wi th exceptional technical,
analytical and communication skills.
•Able to work well under extreme pressure, often meeting tight
deadlines, and able to effectively handle multiple ongoing
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104Education:
•MBA -Banking and Finance from Allagappa University .
•Post Graduate Diploma in Customer Relationship
Management (PGDCRM) from Symbiosis University, Pune
•B.TECH in Information Technology from University of Madras
with 79%.
•Intermediate with 69% and 10 thwith 74% at Mount Saint
Joseph Matri.Hr.Sec.School asso ciated with the Matriculation
Board, Tiruvannamalai.
Trainings:
•Trained in Oracle Business Intelligence 10.1.3.3.3 from Oracle
University.
•Attended in -house training on Siebel ebusiness Applications
From Capgemini Consulting Limited.
•Attended in -house tra ining on Siebel Marketing Manager
(Siebel 7.7) From Oracle University.
Attended in -house training on Oracle 9i From Capgemini
Consulting Limited. Attended in -house training on Actuate 8
From Capgemini Consulting Limited.
Technical skills:
CRM Tools Siebel business Application &Tools 7.7
Business
IntelligenceOracle BI 10.1.3.3.3,
Siebel Analytics 7.7, 7.8.2
RDBMS Oracle
Operating Systems UNIX, Dos, Windows
95/98/2KConfiguration Management/Version controlSource Forge, VSS andSharePoint Portal
Documentation: Ms-Office, Adobe.
Professional Experience:
•Working as (OBIEE Consultant) Siebel Analytics Consultant
forCapgemini Consulting Limited ,f r o mA p r i l0 6t oT i l l Date.
•Working as Associate Consultant (Siebel Configurator) for
Datamatics Limit ed,f r o mF e b0 5t oM a r2 0 0 6 .munotes.in

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105•Siebel 7.0.3 Trained from Future Point Technologies from
July 2004 to December 2004.
Work Experience:
Australia‘s First Bank -Westpac Agencies Project : Analytical
Reporting System.
Role :OBIEE 10.1.3.3.3 (Siebel Analytics) SupportConsultant.
In-stores is an agency used by Westpac in regional areas where
no branch footprint is available. Currently, In -stores receives full
commission for referrals that result in (primary) sale, and part
commission for related cross -sales. Curren tly, these referrals are
sent via paper fax to the relevant (parent) branch manager. The
branch manager then loads and tracks the primary referral and any
related cross sales through ASTS. It is actioned in ASTS and not
RB to ensure that In -stores received the correct commission.
The objective of this project is to provide functionality within
relationship Builder application that will enable capture of the In -
store referrals within RB, removing the need to manage the
referrals solely via ASTS. Information would be stored against the
referral which would indicate the referral came from an In -store,
and this information would in turn be provided to the In -store
application from RB, mimicking the current process from ASTS.
By providing the capability to Bran ch Managers to load,
track and report on primary and cross -sales resulting from In -store
referrals, we reduce the need to deploy RB to the In -stores, and
accelerate the decommissioning of legacy system ASTS.
Responsibilities:
•Building OBI Repository/Metad ata
•Creating physical joins, logical joins and complex joins in
Physical and BMM Layer.
•Setting the subject Area permission for the users.
•Administration of Oracle Intelligence Dashboards & Web
Components
•Enabling Ad hoc Querying support through Siebel Ans wers
•Migration/Deployment of Siebel Analytics Development to
Production & Testing Environments
•Preparation of Dashboard Technical Specification
•Employing Siebel Answers and Intelligence Dashboards to
create reports and charts
•Performance Analysis of Analy ticsDashboards.
•Being involved in Level 3 Production Support, which demanded
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106Environment : Oracle Business Intelligence 10.1.3.3.3, Siebel
Analytics 7.8, Siebel e -Clinical Analytics Application.
Project : Siebel Clinical for S hire Pharmaceuticals Role: OBIEE
(Siebel Analytics) Consultant Siebel eClinical:
CTMS –Clinical Trail Management System :
CTMS is a management tool used for Clinical Trial Management,
based on Siebel eClinical. This project involves implementing
Siebel CRM by a huge Pharmaceutical company for its Clinical
Trial processes. The application used is e -clinical. Clinical Trials
involve testing any molecule or combination of molecules on
specimens before it reaches the market for sale. It involves
preliminary tests on animals, followed by tests conducted on
humans. Each human volunteer for these tests is called a Subject
and goes through a Screening and Enrollment process conducted
by certain Hospitals, called Sites. These Sites belong to a specific
Region. Reg ions are those states/countries where the Pharma
Company conducts Clinical Trials. All this information is captured in
a single system, which is currently being built.
Ih a db e e ni n v o l v e di n :
Resolving Tickets by a set Dead Line.
Reviewing Test Scenarios, Cates & Test Plans.
Periodic Team Meetings and Client interaction.
Analysing & Reviewing User Requirements.
Managing Bug Fixing & Post Implementation Support.
Responsibilities:
•Used Siebel Analytics for generating Sales reports, which
provides web based reports for executive, management
individuals.
•Created custom mappings to accommodate customized fields.
Utilized Intelligent Dashboards, Siebel Answers for reporting
requirements.
•Developed business models conforming to functional mapping -
defined logical and Complex joins for the dimension tables.
•Extensively used Siebel Analytics Administration Tool for
customizing and modifying the physical, business and
presentation layers of the metadata repository.
•Worked extensively on Siebel Answers to create the r eports as
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107Requirements :
•Used filters and provided Customized prompts appropriately to
avoid excessive data Showing up Reports.
•Created ibots and Delivers to send Alert messages to
subscribed users.
•Created Analytics Reports including Cha rts and Pivot tables,
Compound layout using Siebel Answers.
•Performed end -user training to develop ad -hoc reports using
Siebel Answers.
3.Letter of Acceptance of a Job Offer :
After giving a successful interview, the applicant, if chosen
for the post in ques tion, receives an offer letter from the
organisation. The letter which the candidate then writes, conveying
his consent, is known as letter of acceptance. This letter
communicates the candidate‘s willingness to join the organization
on the terms and condit ions proposed by it. It also confirms the
date on which the candidate can join the organisation.
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108Example :
4.Inter -office Memo:
Amemo isashort form oft heword memorandum which
means, a written statement prepared by the person in order to give
informat ion about a particular matter. In the organization it is a
short formal note written toareceiver ormany receivers inorder to
apprise her/him/ them of matter.
[This letter should not be confused with memo, meaning a
warning letter, which is a formal an d official communication to an
erring employee. Nor should it be confused with memorandum of
Demands or understanding, which again is a formal mode of
individual or collective communication.]
What, then, is an inter -office memo?munotes.in

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109This is a short, handw ritten or typed message which is sent
within the organization for immediate or quick implementation of
ideas. It could be used for reporting a matter, or giving instruction,
or simply to inform a colleague, or a superior, or a subordinate.
There are many reasons for using memos. First, they are
convenient. Second, they take little time to read. Third, they
provide a written record for future reference.
While writing an inter office memo the writer should bear in
mind that he has to pass on official inform ation concisely and
clearly. Brevity and clarity are two essentials of a good memo.
How is a memo written?
Usually, there is a standard printed format the contents of which
include
(a)The names of the Sender and Receiver
(b)The matter to be communicated
(c)Thedate
(d)The signature, which authenticates the note. [optional]
Example 1
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110Example 2
5.Resignation Letter:
A resignation letter is written when a person decides to quit
the organisation. Reasons for resigning from a firm could be many,
such as better pro spects, being unhappy with the job, forthcoming
retrenchments. Since this letter has wider implications it should not
be taken lightly. Youngsters seem casual about job hopping. But,
as one grows older, one realizes the seriousness of the decision to
resig n from the organization. Writing this letter becomes a stressful
matter for various reasons.
(a)One is taking a decision that is going to change one‘s life.
(b)One has established emotional ties with the organization, with
colleagues, which one will have to sever.
(c)Taking up a new job in an entirely new environment may make
one feel insecure.
(d)Breaking the news to one‘s superiors could create a feeling of
letting them down.
Here are some tips on the drafting of the letter of resignation:
(a)Be clear, honest and firm about one‘s intentions to leave and try
and do it without antagonizing, or creating negative feelings in
the mind of the receiver.
(b)Show appreciation for what one has gained from the
organization.
(c)State the date from which one wishes to resign from the
organization.
(d)Mention other issues that one wishes to complete before one
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111Maintain a pleasant tone.
Example :
Mr. Adwait Ranade, HR Manager,
Sera Sera Exports. Date……
The Administrative Manager, Sera Sera Exports,
…………. Dear Sir,
This is to infor m you that I have accepted a new position asHR
Manager with organization. Please
consider this as my official letter of resignation.
My last day of working here will be .T h i s
willgiveme 21 days to complete the HR project I am working on.
I sincere ly appreciate the learning opportunities provided by the
organization. I thank all my friends and colleagues for their support
and help. I am joining the new organization for the further
opportunities it is going to offer.
I wish the staff of Sera Sera Exp orts continued success. Yours
truly,
………….
Other Personnel Letters. [ Students should not be tested on these]
6.Recommendation Letter :
A recommendation letter is written by a referee. He writes
his opinion about the abilities, achievements and qualities of the
applicant in question, who is known to him in some capacity. When
a referee writes a positive recommendation based on his personal
experience of the applicant, it becomes instrumental in the
selection of a candidate either for a job, or for admissi on to a
university. A candidate should first take the referee‘s permission
before quoting or suggesting his name as a referee.
Allsuch testimonials, aswell asreferences, are marked
Confidential. Envelopes carrying the letter, too, are marked in the
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112Example :
7.Letter of Appointment:
This letter is written by the organization to the candidate,
who has successfully cleared the selection interview and who has
shown willingness to join the organization. The letter spells out the
terms and conditions of employment and asks the candidate to
communicate his acceptance, either personally or in writing.munotes.in

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113Example :
10thJune, 2008Company Letter Head
Miss Anusha Patel 11, Aradhana B wing
Nehru Nagar Kurla [W] Mumbai, 400067
Sub : Appo intment Letter Dear Miss Anusha Patel,
Thank you for attending the interview yesterday. Weare pleased to
inform you that you have been selected for the post of Trainee
Software Consultant in our organization.
As a trainee your annual package will be Rs.3 ,00,000/ -.Y o uw i l l
be appointed on a probationary period for one year. After
confirmation, your salary package will include PF, and other perks,
and your salary will become 4,50,000/ per annum. You will be
entitled to 25 days of paid earned leave, along with 7 days of
casual leave and 7 days of medical leave.
The working hours will be five days a week from 9.00a.m. to
6.00p.m., with an hour for lunch.
Service conditions here are pleasant and prospects good, though
advancement will depend on your own eff ort and abilities.
Please confirm your acceptance of these terms and conditions in
writing by the 15 thJune, 2008.
Yours sincerely
R.H. Kapoor
8.Warning Memo :
This letter is different from the inter -office memo. This is a
formal / official communicati on sent to an erring employee. It lists
the matters that have been reported against the employee in
question, and warns him of the consequences should he fail to
correct his behaviour. Normally, an organization gives three such
warnings before terminating the services of the employee. The
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114
9.Termination of Services:
This letter informs the employee that his services will not be
required by the management any longer. Termination could be due
to retrenc hment. Or, it could be a natural consequence of the
memos given earlier, or due to some serious crime committed by
the employee. The letter states the reason or grounds on which the
service contract between the employee and the organization has
come to an end, the dates from which the termination becomes
effective, and the financial settlement that may need to be taken
care of.
Example:
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115Thus: [or the letter could end in …… ―……your services will no
longer be required by the management from......................... Pl.
treat this as
one/three months notice]
Tasks:
1.A student wishes to take admission to an MBA programme in
Ohio University. He has scored 75 per cent in the graduation exam
in Commerce. His highest score is in Economics, where he has
scored 80 percent marks. While in college he has played Cricket
and Badminton. His hobbies include photography and reading. His
aim is to do research in the field of Econom ics. Write out his
Statement of Purpose.
2.Read the following advertisements for job/ job -descriptions
carefully.
Who and what are the advertisers on the look out for?
Begin your answer with ―Theadvertiser isonthelook outfora
fresher/ middle level manager/ top level manager ‖
a.A Private Ltd. Company in Vasai [East] requires an Account
Assistant with good knowledge of Tally. Apply with bio -data along
with salary expectation to fax no 2888 7487.
b.Urgently required for a Diamond company a software
programmer. Candidate should be a graduate in computer
programming having knowledge of VB, Dot Net, Oracle. Send your
application to info@ballkrishna.co .in.
c.Area Development Officer (ADO) needed. The candidate should
have healthy relations with Architects, Builders, Contractors,
Fabricators, Dealers. The job demands good communication,
negotiation skills, computer literacy and leadership qualities. Sale s
Professionals who are passionate about a career in sales in the
booming construction industry may apply. Non -graduates who
have fire in the belly for making a career in sales may also apply.
Timex group will provide necessary need -based sales and product
training. Remuneration offered will be only the best and match
industry Standards. Apply to Timex Group , PO Box no 1234.
d.APJ Society requires Principal for APJ School. Highly dynamic
and dedicated person around 40 -50 years of age, having a
master‘s degr ee in a teaching subject with B.Ed. He/She should
have a minimum of 15 years of teaching Experience, including 7
years of administrative experience in the capacity of Principal or
Vice-Pincipal, in an English Medium school with over 2000
students on its ro lls. The candidate must possess exceptional
administrative acumen and communication skills. Salary will bemunotes.in

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116commensurate with qualifications and experience. Apply in strict
confidence within 15 days with detailed bio -data, passport size
photograph, and thre er e f e r e n c e st oP . O .B o xN o . 2 2 2 2 , Mumbai,
400005.
2.Draft a letter of application/ acceptance/ resignation.
a.An undergraduate student from Banking and Insurance course
writes to HDFC bank for summer placement / leave vacancy.
[Unsolicited letter of applicat ion.]
b.Mr. Suresh Rana has been chosen for the post of Jr. Executive ,
Sales by Mahindra Kotak company. He conveys his acceptance to
the Personnel Manager.
c.Ananya Banerjee has decided to resign from her post of
Receptionist at Royal Hotels in order to joi n Jet Airways. Write her
letter of resignation.
3.Rephrase the following memo so that the information is passed
on to a colleague in a concise manner.
4.Read the following advertisements, underline their
requirements, make a list of the requirements. Now d raft the
covering letter.
a.Werequire a lady Accountant with a B.Com. degree for a part
time post. The candidate must have 10 years experience, should
preferably be residing in South Mumbai. She must be computer
savvy and must have Mutual Fund and Equity e xposure. E -mail
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117b.The Indian Science Association invites applications for the post
of Assistant Executive Secretary in the scale of Rs. 10,000 -325-
15200/ -,plus usual allowances in accord ance with the rules of the
Association. The candidate must possess good communication
skills in English, must have a degree in Office Management, and
have a minimum of 2 to 3 years experience. Interested candidates
should forward their applications to www.scienceindia.nic.in on or
before 2ndJanuary, 2009.
c.Win India, a BPO, requires young, dynamic persons with good
communication abilities to work as Customer Relations Officers.
Candidates under the age of 25 , with proficiency in English and
good telephonic manners, should forward their applications to Post
Box No. 180, TOI, Mumbai 400005, within eight days. We offer
attractive salaries and good work environment.
5.Draft a covering letter as well as resume for the following
advertisements:
a.Wanted Chief Accountant for Bahrain National Gas Company.
Candidate must possess a degree in Finance and Accounts,
preferably C.A., with 10 years experience in Accountancy.
b.For Saudi Arabia, Mechanical Engineers, candidates with a
degree in Mechanical Engineering with more than three years
experience in installation, testing and commissioning of 300 TR
above chilled water. Those meeting requirements may forward
their applications to M/s WESTERLIES , Malviya Nagar , New
Delhi 17.
c.Kingfisher/ Jet Airways / Spice Jet/ Go Air invites applications
from young, confident persons with pleasant personality and good
communication skills in English. Candidates under 25 yrs of age,
having minimum height of5.3‖[forgirls]and 5.6‖[forboys]
shou ldforward theirapplications along with two passport size
photographs to Post Box No. 1111. Candidates holding diploma /
degree from a grooming house/ having experience/ having sports
background will be given preference.
d.Al e a d i n gp r i v a t eb a n k is looking for trainee executives.
Candidates in the age group of 20 to 25 yrs, with pleasant
personality, and good communication skills in English, along with
knowledge of any of the following languages Hindi, Marathi,
Gujarati, should forward their appli cations within eight days to the
following address. Post Box No 222, Mumbai 400023. Candidates
with a degree in B.Com with Banking and Insurance / experience
would be given preference.
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1189
LANGUAGE AND WRITING SKILLS
Commercial Terms used in Business
Communication
Unit Structure :
9.0 Learning Objectives
9.1 Introduction
9.2 Commercial Terms
9.3 List of specific commercial terms
9.4 List of abbreviated commercial terms
9.5 Let us sum up
9.6 Unit end exercises
9.0 LEARNING OBJECTIVES
This unit wil l help you to understand the commercial terms
used in business communication.
It makes you familiar with the meaning of important
commercial terms.
After studying this chapter you will be able to select and
usea proper commercial term for the specified purpose.
9.1 INTRODUCTION
In this unit, we will study, in detail, various commercial terms
used in business communication. As stated earlier, we are leaving
in ultra modern scientifically developed digitally sound era. This era
of globalization has affe cted the style of business. Thus, we must
be familiar with the commercial terms. This will help us to use a
perfect term for a specified purpose. In this chapter, a list of
commercial terms is given. We may use these as per the need.
Commercial terms are t he terms used in business communication.
These terms may have a different meaning in other contexts, but in
business communication, they sand for a specific purposes. These
must be used in these conditions. Multiplicity of meaning of a term,
may be a conce rn for the beginner to study commercial terms, but
the business aura will motive to select perfect term for perfect
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1199.2 COMMERCIAL TERMS
Following is a list of commercial terms. Meaning is given to
help students. The meaning of these ter ms is selected form Oxford
Dictionary.
Commercial Terms Meaning
Account A record or statement of financial
expenditure and receipts relating to a
particular period or purpose
Business commercial activity
Cost estimate the price of:
Tax A compulsory c ontribution to state revenue,
levied by the government on workers'
income and business profits, or added to
the cost of some goods, services, and
transactions:
Recovery The action or process of regaining
possession or control of something stolen
or lost:
Depreciation A reduction in the value of an asset over
time, due in particular to wear and tear:
Accelerate Begin to move more quickly:
Bond An agreement with legal force, in particular
Balance Remaining amount
Pay back profit from an investment equal to the initial
outlay
Receivable able to be received
Accuracy the quality or state of being correct or
precise:
Advertisement A notice or announcement in a public
medium promoting a product, service, or
event or publicizing a job vacancy
Agent Aperson or thing that takes an active role
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120Analysis Detailed examination of the elements or
structure of something
Annual report Yearly report
Arrears Money that is owed and should have been
paid earlier
Audit An official i nspection of an organization’s
accounts, typically by an independent body
Loan A thing that is borrowed, especially a sum
of money that is expected to be paid back
with interest
Credit The ability of a customer to obtain goods or
services before payment, based on the
trust that payment will be made in the
future:
Debt A sum of money that is owed or due
Budget An estimate of income and expenditure for
a set period of time
Trade The action of buying and selling goods and
services
Investment The action o r process of investing money
for profit
Strategy A plan of action designed to achieve a
long-term or overall aim
Balance sheet A statement of the assets, liabilities, and
capital of a business or other organization
at a particular point in time, detailin gt h e
balance of income and expenditure over
the preceding period.
Bank Card A Card issued by a bank for a specific
purpose
Banker’s draft A financial draft payable on demand
Bank Guarantee Guarantee issued by a bank for specified
purpose
Bankruptcy The state of being bankrupt
bankrupt (of a person or organization) declared in
law as unable to pay their debts
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121Sale Aperiod during which a shop sells goods at
reduced prices
Brand 1a type of product man ufactured by a
particular company under a particular name
Capital Wwealth in the form of money or other
assets owned by a person or organization
or available for a purpose such as starting
a company or investing
Capital gain Ap r o f i tf r o mt h es a l eo fp r o perty or an
investment
Capital goods Goods that are used in producing other g
goods, rather than being bought by
consumers.Often contrasted with consumer
goods
Cash Money in coins or notes, as distinct from
cheques, money orders, or credit
Discount Deduction from the usual cost of
something
Deduction The action of deducting or subtracti ng
something
Collateral something pledged as security for
repayment of a loan, to be forfeited in the
event of a default
Deflation 1the action or process of deflating or being
deflated
Deflate bring about a general reduction of price
levels in (an econo my)
Commercial Concerned with or engaged in commerce
Commercial bank A bank that offers services to the general
public and to companies
Deficit The amount by which something, especially
a sum of money, is too small
Enterprise A business or company
Entrepreneur A person who sets up a business or
businesses, taking on financial risks in the
hope of profit
Equity The value of the shares issued by a
company
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122Exchange An act of giving one thing and receiving
another (especially of the same kind) in
return
Export Send (goods or services) to another
country for sale
Federal Having or relating to a system of
government in which several states form a
unity but remain independent in internal
affairs:
Floating Not settled permanently; fluctuating or
variable
Franchise` An authorization granted by a government
or company to an individual or group
enabling them to carry out specified
commercial activities, for example acting as
an agent for a company’s products:
Income Money received, especially on a regular
basis, for work or through investments
Import Bring (goods or services) into a country
from abroad for sale
Inflation The action of inflating something or the
condition of being inflated
Insurance Athing pr oviding protection against a
possible eventuality
Intellectual Property Intangible property that is the result of
creativity, such as patents, copyrights, etc
Interest Money paid regularly at a particular rate for
the use of money lent, or for delaying t he
repayment of a debt
Invoice A list of goods sent or services provided,
with a statement of the sum due for these;
ab i l l
Leverage Finance the ratio of a company’s loan
capital (debt) to the value of its ordinary
shares (equity); gearing
Liability The state of being legally responsible for
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123Licence A permit from an authority to own or use
something, do a particular thing, or carry on
a trade (especially in alcoholic drink
Liquid A substance that flows freely but is of
constant volume, hav ing a consistency like
that of water or oil
Loan a thing that is borrowed, especially a sum
of money that is expected to be paid back
with interest
Market Aregular gathering of people for the
purchase and sale of provisions, livestock,
and other commodi ties
Microbusiness A business that operates on a very small
scale:
Middleman A person who buys goods from producers
and sells them to retailers or consumers
Negotiation Discussion aimed at reaching an
agreement
Net asset Value The value of a mutual fu nd that is reached
by deducting the fund’s liabilities from the
market value of all of its shares and then
dividing by the number of issued shares
Net profit The actual profit after working expenses
not included in the calculation of gross
profit have bee np a i d :
Nonrecurring (of costs, charges, taxes, etc.) occurring
one time only
Optimize Make the best or most effective use of (a
situation or resource):
Outsourcing Obtain (goods or a service) by contract
from an outside supplier
Overdraft A deficit in a bank account caused by
drawing more money than the account
holds
Payment The action or process of paying someone
or something or of being paid
Patent A government authority or licence
conferring a right or title for a set period,
especially the sole r ight to exclude others
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124Postdate Affix or assign a date later than the actual
one to (a document or event):
Probation The release of an offender from detention,
subject to a period of good behaviour under
super vision
Retail The sale of goods to the public in relatively
small quantities for use or consumption
rather than for resale
Quality The standard of something as measured
against other things of a similar kind; the
degree of excellence of something:
Rebat e A partial refund to someone who has paid
too much for tax, rent, or a utility
Recession A period of temporary economic decline
during which trade and industrial activity
are reduced, generally identified by a fall in
GDP in two successive quarters
Rede mption The action of saving or being saved from
sin, error, or evil
Refund Pay back (money), typically to a customer
who is not satisfied with goods or services
bought
Revenue Income, especially when of an organization
and of a substantial nature
Settle ment An official agreement intended to resolve a
dispute or conflict
Security A thing deposited or pledged as a
guarantee of the fulfilment of an
undertaking or the repayment of a loan, to
be forfeited in case of default
Tariff At a xo rd u t yt ob ep a i d on a particular
class of imports or exports
Telebanking Another term for telephone ban king
Telemarketing The marketing of goods or services by
means of telephone calls, typically
unsolicited, to potential customers
Trade fair Trade between companies in developed
countries and producers in developing
countries in which fair prices are pai dt ot h e
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125Viral marketing A marketing technique whereby information
about a company’s goods or services is
passed electronically from one Internet
user to another
9.3 LIST OF COMMERCIAL TERMS
Following is the list of commercial terms used in business
communication.
Cash flow Cash balance Chamber of
commerce
Chief executive Chief executive
officerChief financial
officer
Co-signer Commission Contract
Cost of Goods sold Credit Credit line
Current Asset Current liabilities Current debit
Deficit Deficit financing Devaluation
Direct cost Direct selling Distributor
Distribution channel Earnings Equity capital
(Money supplied by
the owner of the
business)
Exchange duty Exchange rate Export agent
Federal funds Fiscal (Related to
financial matters)Fixed asset
Flow chart(graphic
representation)Franchise chain Fraud
Freebie (Free sample) Future market Fundraising
Gateway GDP (Gross
domestic product)Gross profit
Growth capital Guarantor Impaired capital
Incentive program
(Reward scheme )Income
redistributionIncome statement
Income tax Income statement Indirect cost
Interest rate Inventory Joint account
Joint ownership Letter of agreement Letter of creditmunotes.in

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126Liability insurance Liquid assets Loan agreement
Market analysis Market devel opment Market demand
Market share Market targeting Net asset
Net Capital Net margin Net worth
Open end credit Open market Operating cost
Overdraft facility Performance
appraisalPoaching
Prebilling Price ceiling Price control
Price discrimination Price war Profit and loss
statement
Product line Questionnaire Rate of interest
Rate of return Recurring payment Response
marketing
Sales channel Sales team Sales forecast
Sales network Sales outlet Sales promotion
Sales representative Self-liquidat ing Service -business
Service charge Take home salary
(Net pay)Target market
Tax intensive Tax return Tax refund
Tax subsidy Terms of sale Terms of trade
Trade credit Trade barrier Unlimited liability
Waiver (Abdication) of
premiumWhistleblowing Whol e sale price
Working capital Zero balance
statementZero fund
9.4 LIST OF ABBREVIATED COMMERCIAL TERMS
BPS: Bits per second
FOB: Free on Board
CFR : Cost and Freight
DAF: Delivered At Frontier
Des : -Delivered Ex ship
DDU: -Delivered Duty unpaid
DDP : Delivered Duty paidmunotes.in

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127HTML: Hypertext mark -up language
ATLAS: Automatic tabulating, listing, sorting system
9.5 LET US SUM UP
In this unit we have studied commercial terms used in
business communication. It is important to select a perfect term in
business communication. There are many commercial terms
9.6 UNIT END EXERCISES
1.Make a list of important commercial terms.
2.Write meaning of following commercial terms
A)Asset
B)Debit
C)Credit
D)Exchange
E)Net profit
3.Use following commercial terms in proper context.
a.Net gain
b.Net loss
c.Advertising
d.Sales representative
e.Cost
f.Price war
g.Net margin
h.Fixed asset








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12810
PARAGRAPH WRITING
Unit Structure :
10.0Learning Objectives
10.1Introduction
10.2Essential elements of a paragraph with special reference to
Coherence and cohesion
10.3Parts of a paragraph
10.4Self-editing
10.5Interpretation of techn ical data
10.6Composition on a given situation
10.7Sample paragraphs
10.8Let us sum up
10.9Glossary
10.10Unit end exercises
10.0 LEARNING OBJECTIVES
This unit will help you to understand the concept, definition
and meaning of a paragraph.
It make s you familiar with the essential elements, parts and
types of a paragraph.
It will also help you familiar with the idea of self -edition,
composition on a given situation.
After studying this chapter you will be able to write a proper
paragraph.
10.1 INTRODUCTION
In this unit, we will study, in detail, how to write a paragraph.
According to Oxford dictionary, the word paragraph is a noun. It
means, “A distinct section of a piece of a piece of writing, usually
dealing with a single theme and indicated b yan e wl i n e ,i n d e n t i o n ,
or numbering.” It may also be used as a verb with object. It is
derived from French paragraphe via medieval Latin from Greek
paragraphos that stands for ‘short stroke marking a break in sense,’
from para -beside+ graphein ‘write.’ According to Cambridge
Advanced Learners Dictionary and Thesaurus, paragraph is “Amunotes.in

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129short part of a text, consisting of at least one sentence and
beginning on a new line. It useally deals with a single event,
description, idea, etc. pieces of writing.” In b rief, we may say that a
paragraph is a short piece from a targeted text. But it must be
candid, complete and perfect and must stand on its own which
ultimately adds to the main text.
We know that a paragraph is a perfect sentence or a group
of sentences. We cannot say that a group of irrelevant sentences is
a paragraph. Thus, we may say a paragraph presents a meaningful
idea. As we have studied earlier, writing is a skill and candid writing
is welcomed and appreciated. A candid writing is possible, if one
knows how to insert meaningful sentences in a paragraph to
explore, present, analyse, criticize and evaluate the idea under -
consideration.
In today’s world, professional attitude is a must to survive in
stylein any company. Professionalism includes exce llent
communication skills. Since, written communication also is integral
aspect of business communication, we must write perfect
paragraphs to communicate. Candid message, perfect attitude,
proper tone, concrete information and if required personal touch is
certain important aspects of a paragraph.
Paragraph writing is a process. As stated earlier we cannot
call following groups of sentences is a paragraph.
His business is good. He lives in Pune. His brother is a
doctor at Nashik. He deals with group of companies. He studied the
material thoroughly. He is stupid in certain deals. His wife is not
good. He sells and purchases. He drives. He runs. He plays. He
sees cricket, volleyball and football match.
The above cited group of sentences are not sending pe rfect
information. The information is leading reader to various directions.
There are different types of paragraphs. In a paragraph we
may find definition and illustration, detailed description, perfect
analysis, refutations, critical perspective, statis tical analysis,
creative progress and/or comments. It depends on the theme or
main idea of the paragraph.
In professional aura and business communication such
written communication is never welcomed, wanted and expected.
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13010.2 ESSENTIAL ELEMENTS OF A PARAGRAPH
WITH SPECIAL REFERENCE TO COHERENCE AND
COHESION
There are various elements of a paragraph. Many scholars
have recorded these elements as per their criteria. For the purpose
of our study we may say that following are common elements of a
paragraph.
1)Unity
2)Order
3)Coherence and Cohesion
4)Clarity
5)Completeness
10.2.1 Unity :
Unity is an important element of a paragraph. Basically, it is
essential to have sentences about one central idea in the whole
paragraph. A sentence not related to the central idea of the
paragraph sounds unprofessional. Thus, we must take care and
frame and include only that sentence which has unity about the
central theme of the paragraph.
10.2.2 Order :
In a paragraph proper order of sentences is essential. Whole
structure of the paragraph must be in proper structure. In general
structure of a paragraph should be like introduction of idea,
explanation/analysis/presentation of the main idea, conclusion, and
if necessary recomme ndation(s) on the main idea of the paragraph.
If this order is not available in the paragraph, reader will not be able
to understand the core information as author wants to put in the
paragraph. From this perspective, order is a most essential of a
paragra ph.
10.2.3 Coherence and Cohesion :
Oxford dictionary states that the word coherence is a noun
(mass noun) and it means a)the quality of being logical and
consistent, and b) the quality of forming a unified whole. The word
cohesion also is a noun (mass n oun). The same dictionary states
that it is the action or fact of forming a united whole. It is essential
to have a quality of being logical and consistent tempo in a
paragraph. All sentences must be logically connected and add
substantially to the main id ea. It will give a unified whole identity to
the main idea of a paragraph.
10.2..4 Clarity :
It is important to note that that clarity is essential in writing. In
a paragraph, one must state, mention, explain, analyze, or
(re)presented, and conclude the targeted idea,munotes.in

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13110.2.5 Completeness :
The paragraph must be complete. Incomplete paragraph will
lead to misunderstanding and misinterpretation. Thus, it is essential
to see that a paragraph must stand on its own and substantially add
to the main text. No incomplete paragraph will help to fully
understand the main idea.
10.3 PARTS OF A PARAGRAPH
We have discussed the important elements of a paragraph. Now
we will study in detail various part of a paragraph. Following are the
important parts of a paragra ph.
1)Introduction
2)Description/Supplementary data
3)Conclusion/Closing
4)(If required) Recommendation(s)
10.3.1 Introduction/topic sentence/control sentence:
While writing a paragraph one must see that it introduces an
idea.
Each paragraph includes proper int roductory sentences of
statements as per the need. Few call it topic sentence or control
sentence. We must remember that it is not compulsory that first
sentence of a paragraph should be a topic sentence. We may use
sentences that may lead to proper introd uction and topic sentence.
10.3.2 Description/Supplementary Data :
Introductory sentence or part must naturally lead to proper
discussion or provide supplementary data that adds to the
introduction. There is a need of many sentences for this purpose. It
may be the discussion, extension, explanation(s), examples,
additional details and other aspects of the main idea presented in
the introduction of the paragraph.
10.3.3. Conclusion or closing
This may be the last part of a paragraph. In one or few
senten ces on has to close the paragraph with a proper note that
may link other section of the main text. Closing on positive note is
recommended if applicable.
10.3.4 (If required) Recommendation(s):
It is also essential to add sentences that may be providing
recommendations (if required in the specific conditions) of the main
idea.
These are the main parts of a paragraph. We may also add
statistical data, diagrams, citations, figures, formulae and other
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13210.4SELF -EDITING
In business communication self -editing is vital. In today’s
aura, no one has time to read redundant or unwanted data.
Particularly when we are writing, there is a possibility of temptation
to write comprehensively i.e. in detail. But in business
communicati on, one must be precise and to the point. This principle
is also applicable to paragraph writing. As a writer, we must self -
edit the data to give a professional look and output through a
paragraph. Unedited paragraphs may be lengthy, ambiguous and
can crea te chaos.
One must follow the principles of writing skills while self -
editing. The ultimate purpose of self -editing is to upgrade the
standard of a paragraph under consideration.
10.5INTERPRETATION OF TECHNICAL DATA
In a paragraph one may use technic al data. But it is our duty
as a paragraph writer to interpret the technical data and present it
in a way that a layman should understand. For example in
chemistry H 2o stands for water. But technically 2 H stands for two
hydrogen and O stands for Oxygen. S o, considering the targeted
audience it is vital for us interoperate the technical data as per the
need.
10.6COMPOSITION ON A GIVEN SITUATION
In business communication, we may be asked write a
composition on a given situation. To write a proper composi tion, we
must know how to develop a paragraph. Through proper
paragraph, perfect composition will come out. The situations in a
business communication may be starting a new branch,
approaching a new company, dealing with new and existing
customers, selling a product and others a given situation. To
convince targeted audience, we must write a proper composition in
minimum three paragraphs. It will lead to the progress of a
company and an employee.
10.7SAMPLE PARAGRAPHS
Who can offer advice to students?
Sample -1
In addition to the trained and skilled counselors referred to in
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133knowledgeable staff in the institution to whom they can turn for help
on personal as well as academic matters. Not only their p ersonal
and subject tutors, but also the students union and relevant
administrators in their academic department or in the central
administration (though the latter still seem to engender a certain
amount of trepidation on the part of students), can offer valid advice
to students within their own areas of expertise and competence,
and students must be encouraged to approach them freely and
openly.
Sample -2
The student administration sections (whether central or
departmental) have their main strength in a dvising students on
regulatory matters, as regards both internal regulations and
external legislation. When it is a question of helping students to
choose the right modules to fit their course or their career plans, the
main areas of expertise usually resi de with the academic staff,
although there are certainly admirable examples of professional
course counselors being located within the support service
department. This is closely allied to careers advice, which is
similarly equally well approached by acade mic tutors within the
student’s department as by professional careers advisors. The
need for tutorial advice in module choice is examined further to
Chapter 3, with regard to course construction.
Students attending courses at an institution deserve the
same level of support and personal care irrespective of when they
are attending. In institutions where the majority of students attend
during the day (either as full -time students or as daytime part -time
students), there can be significant challenges in liv ing up to this
expectation for students who attend in the evening. This is
particularly the case where the numbers are relatively small, and
can make some provisions potentially unviable in economic terms.
Nevertheless, if the institution is committed equa lly to all of its
students it should ensure that good provision is available at all
times : catering, leisure space, library and computing facilities can
be difficult to provide if numbers are small or located in scattered
locations throughout the institut ion, but are usually readily identified
as being worth providing, particularly if many of the students are
coming direct from work for the evening classes and need to have a
meal or relaxation before starting their studies.
Catching personal problems
Sample -3
Although students are deemed, in the eyes of the law, to be
independent adults by the time they are in higher education, andmunotes.in

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134responsible for most of their own decisions when they are in further
or higher education, most institutions still feel tha tt h e yo w ei tt ot h e
students in their care to keep an eye open for imminent or latent
problems. As mass education has led to reduced personal contact
between tutors and students, it is less easy for staff to spot gradual
changes in student behaviour. Chap ter 7 (on records) explores the
way in which attendance monitoring (active or passive) can be used
as one means of noting when students may be having academic or
personal problems. This cannot be used as a total substitute for
encouraging students to bring their problems voluntarily to their
tutors before they become major issues.
Pastoral care in examinations
One of the main areas in which all parts of the institution can
offer real help to students is in the provision of special examination
facilitie s for students with short -term or long -term disabilities. Here
the institution is showing that it can be flexible within its regulations
and procedures so as to ensure that all the students are being
assessed on a comparable basis. This is discussed in gre ater
depth in Chapter 4 (section 4.5).
Pastoral care of part -time and evening students
Sample -4
Less commonly available are the non -pastoral student
support areas such as registry and finance, except at enrolment.
This can make it difficult for evenin g students to get questions
answered as easily as other students if the staff who know the
particular answers only work during the day. In more traditional
evening attendance courses it is quite common for the students,
often with rival domestic commitment s, not to place too high
demands on ancillary services. with the spread of mixed -mode
attendance this cannot be assumed, and there is a very goods case
or all the facilities and administrations to be opened until mid or late
evening, with key facilities such as library and computin gt ob e
open for approaching 24 hours, if the evening students are not to
feel like second -class citizens. In some
Review Questions
1.Distinguish among a product modification, a minor innovation,
and a major innovation. Present an example of each for a
commercial bank.
2.Give four reasons why new products are important to a
company.
3.Explain the new -product planning process.
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1355.What are the major tasks during product development?
6.What are the pros and cons of test marketing?
7.How can a firm speed a product’s growth?
8.Is the maturity stage a good or bad position for a product to
occupy? Why?
9.Cite five ways in which a firm could extend the mature stage of
the product life cycle . Provide an example of each.
10.Why is a product deletion decision so difficult?
Discussion Questions
1.Comment on the following statement: “We never worry about
relative product failures because we make a profit on them. We
only worry about absol ute product failures.”
2.Develop a 10 -item new -product screening checklist for a
proposed hand -held portable telephone. How would you weight
each item?
3.Construct a 50 -word concept statement and six related
questions that relate to potential consumer acceptance of a
new laser printer that would handle traditional printing chores
and also process incoming and outgoing facsimile messages.
Whom would you question in your concept test? Why? What
would you expect to learn from this test?
4.Differentia te between the commercialization strategies for a
product modification and a major innovation. Relate you
answers to the adoption process and the diffusion process.
5.Select a product that has been in existence for ten or more
years and explain why it cannot be rejuvenated.
American Express Tests Optima as a Stand -Alone Credit Card*
Sample -5
When first introduced in 1987, the Optima card was designed
to be used by American Express customers in conjunction with their
traditional green, gold, or pla tinum card. Because each traditional
American Express card account was designed to be paid off in full
at the end of every month, customers could not spread payments
over several months -as they could with bank and retailer credit
cards. The Op -tima card en abled American Express cardholders,
who wanted to be able to do so, to remit minimum monthly amounts
and pay interest on the balance.
`The data in this case are drawn from Laura L. Castro, “Optima
Tries to Expand Base in Test Market,” Wall Street Journal
(December 17, 1990), pp. B1, B4.munotes.in

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136Interest rates were low, compared with Master Card and Visa.
Yet, even though American Express has 36 million traditional
cardholders, it was able to attract less than 10 per cent of those
cardholders under its origin al marketing approach for the Optima
card. As of 1990, about 3.2 million Optima cards has been issued.
Until then, to be eligible for an Optima card, potential customers
had to be holders of traditional American Express cards already (at
annual fees of at least $55), and they had to pay an additional
amount for Optima cards ($15 per year).
During 1990, American Express began testing a new
marketing approach to try to expand the Optima cardholder base. It
mailed letters offering the Optima card to potentia l customers in 15
U.S. cities (including Atlanta, Boston, Seattle, New York, and
Washington) who did not have a traditional American Express card.
Although American Express denied that it planned to offer a
stand -alone version of the Optima card to cons umers on a
nationwide basis, its major competitors felt this was part of a major
test-market program to determine the acceptance of such an
Optima card by a wide range of consumers. Yet, the firm insisted it
was still pursuing the upscale customer. America n Express stated
that it had increased its credit standards in the last few years.
In the Phoenix, Arizona, test market, Optima was typically
offered to noncard holders for an annual fee of $25 (different
annual fees were also tested) and withan annual interest rate on
unpaid monthly balances of 15.75 per cent. In contrast, at the same
time, the largest credit -card issuer in Arizona of fered Master Card
and Visa credit cards for an annual fee of $20, but had an 18.6 per
cent interest rate. When American Express announced that its rate
would increase to 16.75 per cent, the average rate of competitors
on a nationwide basis was 18.77 per cent.
Sample -6
The below -average interest rates are a significant advantage of
the stand -alone Optima card; how ever, the major disadvantage of
the card has been its lack of acceptance by a wide variety of
merchants. Airlines, restaurants, and hotels widely accept
American Express cards, but the firm’s penetration among other
groups of merchants is significantly lower tha n competitors (for all
of its cards) because of the above -average processing fees
assessed to merchants. Efforts by American Express to increase
store acceptance for its cards by doubling the product warranties
for gold and platinum cardholders have not si gnificantly expanded
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137Several competitors have foreseen American Express Optima
strategy. For instance, according to a spokesperson for Master
Card, “We’ve always felt American Express has been a very
aggress ive competitor against our membership, and this couldn’t
come at a more challenging time for the bank card industry.
However, there are a number of members out there who will
counter this move with aggressive marketing of their own.” At
Optima’s initial in troduction, some banks went so far as to stop
carrying American Express travelers checks.
1.Develop a concept test for the proposed stand -alone Optima
card.
2.Present several specific criteria to judge the success of the
test-marketing program for t he stand -alone Optima card.
3.What are the pros and cons of American Express introducing a
stand -alone Optima card nationally?
4.Describe a five -year plan for commercializing a stand -alone
Optima card nationally. Be sure to refer to the adoption
proce ss of the diffusion process in your answer.
DuPont : Extending Lycra’s Life Cycle
According to the product life -cycle concept, DuPont’s Lycra (a
super -stretch polymer invented in 1959 as a basic ingredient in
girdles) should be a mature product. Lycra lost its patent production
years ago, it is a synthetic (most synthetics are doing poorly in
comparison to such natural fibers as cotton), it is available as
spandex (its generic name) from well -known competitors, and its
organizational customers are know ledgeable and price conscious.
The data in this case are drawn from Monica Roman, “How
DuPont Keeps `Em Coming Back for More,” Business week (august
20, 1990), p.68
However, Lycra has defied the product life -cycle concept by
remaining in the growth st age. Its 1990 sales were projected to be
$840 million; that year’s operating profit was estimated at $210
million a healthy 25 per cent profit margin. And Lycra still maintains
a two thirds’ share of the worldwide spandex market. As one expert
stated:
Marketing pros will tell you that a successful product typically
enjoys an initial spurt of rapid growth, then hits a plateau as it
matures. But chemical giant DuPont Co. has an aging product that
this year is acting like hot new lunch .
The demand for Lycra has been so great that DuPont has even had
to allocate sales among the manufacturers that buy the polymer.
DuPont is now investing $500 million to expand capacity to meet
worldwide Lycra demand better. There is also plenty of potential formunotes.in

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138addition sales growth ; despite its current popularity, Lycra had
been used in only about one per cent of all outerware as of 1990,
and additional uses exist for such garments as lingerie.
10.8LET US SUM UP
In this unit, we have studied how to write a paragraph.
Para graph writing is a process and leads to proper conclusion of a
main idea or topic sentence. It must be candid, cohesive and
complete. Self -editing and interpretation of technical data will add to
the professionalism. We must write short, self -dependent and a
perfect paragraph that may help to understand text -under
consideration.
10.9GLOSSARY
1.Paragraph: -A distinct section of a piece of writing, usually
dealing with a single theme and indicated by a new line,
indentation, or numbering.
2.Coherence : The qu ality of being logical and consistent/ the
quality of forming a unified whole
3.Cohesion: The action or fact of forming a united whole
4.Candid: Truthful and straightforward
5.Composition: The nature of something’s ingredients or
constituentss; the whole or mix ture is made up.
(Note: -Meanings of these words as cited in Oxford Dictionary).
10.10UNIT END EXERCISES
1.What do you mean by a paragraph?
2.What are the elements of a paragraph?
3.What are the different parts of a paragraph?
4.Write a note on role of self -editing?
5.Select a situation and write a paragraph on it.
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