MBA I UNIT III
MBA I UNIT III
Year : I
Semester : I
Subject Code: KMBN107
Subject: Business Communication
UNIT III: Business letters and reports: Introduction to business letters – writing routine
and persuasive letters – positive and negative messages- writing memos – what is a report
purpose, kinds and objectives of report writing.
Business letters play a crucial role in professional communication. They are used to convey
information, make requests, or deliver messages in a formal and structured manner. Positive and
negative messages are two common types of business letters that serve distinct purposes.
Positive Messages:
Positive messages are used to convey good news, express appreciation, or provide positive
feedback. These letters are typically well-received and aim to maintain or enhance a positive
relationship between the sender and the recipient. Here are some common types of positive
messages:
• Job Offer Letters: These letters are sent by employers to offer a job position to a
candidate. They outline the terms of employment, including salary, benefits, and start
date.
• Appreciation Letters: These letters express gratitude or appreciation to a person or
organization for their efforts, achievements, or contributions.
• Congratulations Letters: These are sent to celebrate an individual or organization’s
achievements, milestones, or successes.
• Acknowledgment Letters: These confirm the receipt of a document, payment, or an order.
They serve as a record of the transaction.
• Compliment Letters: These express admiration or praise for a person, product, or service.
They can be used to strengthen business relationships.
Negative Messages:
Negative messages, on the other hand, are used to deliver unwelcome news, convey bad news, or
address difficult situations. It’s important to handle negative messages with sensitivity and
professionalism. Here are some common types:
• Rejection Letters: These inform applicants, vendors, or partners that their application,
proposal, or request has been declined.
• Complaint Letters: These are written to address a problem, issue, or grievance. They aim
to seek resolution or draw attention to a specific concern.
• Termination Letters: These are sent to inform an employee that their employment is
being terminated. They typically include the reason for termination and any relevant
details.
• Collection Letters: These are used to request payment for overdue invoices or outstanding
debts.
• Negative Performance Feedback: These letters are used to address performance issues
with employees and outline areas for improvement.
Routine Letters: Routine letters are standard, everyday business correspondence that convey
information or handle routine matters. They do not typically require a persuasive tone. Instead,
they focus on providing information in a clear, concise, and professional manner. Some common
types of routine letters include:
1. Inquiry Letters: These are used to seek information from another party. They can be used to
ask for product details, pricing, availability, or any other information relevant to the business.
2. Order Confirmation Letters: These are sent to confirm that an order has been received,
processed, and is being prepared for shipment.
3. Acknowledgment of Receipt Letters: These confirm that a document, payment, or
shipment has been received. They serve as a record of the transaction.
4. Transmittal Letters: These accompany documents being sent to someone, providing an
overview of what is enclosed and why it is being sent.
5. Follow-Up Letters: These are sent to reiterate or confirm details after a conversation or
meeting has taken place.
6. Appointment Letters: These confirm a scheduled meeting, interview, or appointment,
including details like date, time, and location.
What is a Memorandum?
A memorandum is a form of official interdepartmental communication that is used to convey
essential decisions or information. A memorandum is thought to be a step below a formal letter
and often contains details needed for specific meetings, projects, policies or others. So what is a
memorandum? A memorandum’s definition is that it is essentially an intra-office tool for
communication usable to announce specific events or changes. A memorandum or memo for
short is a way of communication that is also recorded for posterity. Memos are usually issued
when vital changes have been made to a company’s policy or one of its projects. The
memorandum letter that is displayed above displays the kind of topic this tool is often used for.
An office memorandum’s meaning should be clear and concise to make sure information is
delivered with no possible misunderstanding. Office memorandums are a little different from
normal memorandums. So what do you mean by an office memorandum? An office
memorandum meaning a memo issued by a member of a governing body or an organization is
simply a method of communication which will convey certain details between two members (or
department heads in some cases) of the same organization/governing body.
Purpose of a Memorandum :
A memo can have many uses and this versatility combined with its official capacity is why it is
used quite often in an organization. The uses of a memorandum are as follows:
• A way to transfer knowledge of a specific process
• To convey specific details on a project
• To request specific information
• To offer suggestions on a matter
• To report to a superior
• To offer congratulations or positive news
• To share ideas
Advantage of a Memorandum
• Memos are a timesaving mode of communication and are quite convenient to use.
(especially with an intranet)
• Given that memos are intra-office, there will be no need to use expensive paper. The
recycled paper will be acceptable.
• Memos are stored for the future, and such can be referred later if needed.
1) Formal Business Reports: These reports are prepared in a given format and they are
presented to the authorities in an already established manner. They are submitted to committees
and bodies or heads of various departments or organizations. Since the report talks only about
business in a formal way they are termed as, formal business reports. Formal reports of other
classified into the statutory report and non-statutory report.
2) Informal Business Reports: These reports are prepared in a convenient format which is
convenient to the reporter and presented to the required person immediately after demand. These
reports can also be presented in the form of a memorandum or a Business Letter. Since there is
no fixed format for these reports it is termed as informal reports.
3) Informative Business Report: These are types of Business reports which are prepared with
the intention of providing information in a descriptive way which address is a particular issue or
situation or a problem. They provide information in an exhaustive and detailed manner which is
used for the by the authorities to gain an insight on the matter that is why they are termed as
informative reports.
4) Interpretative Business Report: Unlike informative report which contains only information,
the interpretative report contains facts opinions views or numbers which help to interpret a
certain information situation or a problem. The interpretative report may also contain reasons for
a certain issue as to why a certain event or an issue occurred and what would be the course of
action along with a recommendation for the same.
5) Verbation Business Reports: The report which is prepared by secretaries or any other
individual which record word to word discussions that are made in the meeting are called
verbatim reports. For example, in case of auditor appointment resolution has passed in the
meeting and that reservation is recorded as word to word as Verbation report. Also, in the case of
voting where joint votes of different members are taken into consideration, the verbation reports
include names and manners of voting along with the results. These types of business report
should not be confused with minutes of the meeting which is a record of proceedings and
decisions a summary of the meeting.
6) Summarized Business Reports: The report that is made with the assistance of important
details that have been discussed in the meeting is called a summarized report. These types of
business reports are made with the intention of sending it for the press release or for the
shareholders of the company or a member of the certain institution.
7) Problem Solving Business: Report As the name suggests, problem-solving business report
help to solve a problem by suggesting or recommending a plan of action regarding a certain
situation. The report also contains causes of such problems and the conclusion is done in various
ways that can be adopted to solve the problem. The report also contains ways in which that
problem can be avoided in the future by implementing certain steps.
8) Fact Finding Business Report: There are numerous situations in an organization where a
finding of a fact is required. For example, the breakdown of machinery in factory premises or
rivalry between associate and the manager. The situations require in-depth reasoning for the
situation that has arisen. In those cases, the fact-finding report comes in handy which present
facts in the report from a third person view. These reports are presented to the top management
based on which they can take action about the situation at hand.
9) Performance report: The management likes to know the performances of each department
on a regular basis. Not only that but also about the newly opened branch, newly appointed
employee or even the performance of existing employees who are due for promotion are
analyzed by the management for which the performance report is generated. These reports are
important for the management to arrive at a decision and hence these reports are prepared by the
seniors of the respective people.
10) Technical Business: Reports Technology is advancing faster than the speed of light and that
is the reason why companies upgrade themselves with new technology is from time to time.
Whenever such a monumental change and Technology is taking place in an organization a
Technical Business Report is prepared to assess the level of Technology. These reports include a
detailed way to undergo the change including time and money that will cost, which helps the top
management to take a decision.
11) Standing Committee: Report A committee which is appointed for a specific reason is called
standing. The reason may be financial assessment, employee Assessment, or departmental
assessment, the standing committee is expected to submit a detailed analysis of these things. The
report submitted by the committee is known as a standing committee report. In many
organizations please reports are submitted at frequent intervals.
12) Ad-hoc Committee Report: Ad-hoc reports are also termed as special committee reports.
As the name suggests special committee is appointed to deal with the investigation and that
committee is dissolved as soon as the report is presented. Special communities are found in
special cases like fire in factory premises are employee accidents during work.
13) Minority Report: A team of the special committee is appointed to submit a report which
will be e based on an investigation of a special subject. 3 members may be selected to form the
committee one of each is the chairman of the said committee. If members have a difference of
opinion on the subject the other members may submit the report separately. This separate report
submitted by dissentient members is called minority report.
14) Majority Report: The members of a committee which including the chairman, usually have
unanimous decision amongst them. In such cases, only one report is prepared and presented to
the official committee. If that is not the case then the majority of the member from their own
report and submitted to the examining authority. Such a report is termed as majority report.
15) Annual Report: A yearly report, which consists of the yearly processes of the business
including the sales profits and the turn overs is called the annual report. Such a report generated
only once a year and is submitted to the corporate heads for studying the business year in detail.
Majority of crucial decisions like investments, product portfolio changes, marketing strategies,
marketing campaigns etc. are planned on the basis of the Annual report. Pre-decided plans may
be modified or changed based on Annual reports.
• Title Section – This includes the name of the author(s) and the date of report preparation.
• Summary – There needs to be a summary of the major points, conclusions, and
recommendations. It needs to be short as it is a general overview of the report. Some
people will read the summary and only skim the report, so make sure you include all the
relevant information. It would be best to write this last so you will include everything,
even the points that might be added at the last minute.
• Introduction – The first page of the report needs to have an introduction. You will
explain the problem and show the reader why the report is being made. You need to give
a definition of terms if you did not include these in the title section, and explain how the
details of the report are arranged.
• Body – This is the main section of the report. There needs to be several sections, with
each having a subtitle. Information is usually arranged in order of importance with the
most important information coming first.
• Conclusion – This is where everything comes together. Keep this section free of jargon
as most people will read the Summary and Conclusion.
• Recommendations – This is what needs to be done. In plain English, explain your
recommendations, putting them in order of priority.
• Appendices – This includes information that the experts in the field will read. It has all
the technical details that support your conclusions.