ASSIGNMENT-02/02

Name:

Registration No:

Learning Center:

Learning Center Code:

Course: MBA

Subject: Business Communication

Semester: 1

Subject Code: MB0039

Date of submission: 22.08.2012

Marks awarded:

Directorate of Distance EducationSikkim Manipal UniversityII Floor, Syndicate House

Manipal – 576 104

Signature of Coordinator Signature of Center Signature of Evaluator

-----------------------------------------------------------------------------------------------------------------Important Note to the Students:-----------------------------------------------------------------------------------------------------------------

The student must submit all the assignments given per course per semester to thelearning Center.

Assignment marks will be accounted for your Internal Assessment. Assignments should be submitted within the time given. Please answer all the Assignments on ruled sheets. Write in your own handwriting.

Write in your own words. Do not copy. Assignments which are not original /copied shall be awarded zero marks.

Write neatly and legibly in the prescribed format.

-----------------------------------------------------------------------------------------------------------------

Comments by the Subject Evaluator: (Subject expert will give comments onoverall content, reliability, correctness and appropriateness of informationprovided)-----------------------------------------------------------------------------------------------------------------

-----------------------------------------------------------------------------------------------------------------

Suggestions for improvement: (Subject expert will give areas of improvement andpossible ways/ methods to follow to improve)MBA-----------------------------------------------------------------------------------------------------------------

Q1. Explain the purpose of keeping minutes of a

meeting. What goes into the contents of minutes of a

meeting?

Answer:

Keeping “Minutes” of the Meeting – Since meetings are called to

take important decisions concerning the organization, it is

important to maintain a permanent written record of the

proceedings, which can be referred to at a later stage, or serve

as a guide for action. Such a record is known as “minutes” of

the meeting and may be done in an informal or formal manner,

depending on the type of meeting.

In the case of routine meetings, minutes are written in an informal

manner, in the form of a broad summary of the proceedings. On the

other hand, minutes for more formal meetings such as board and

shareholder meetings are written in a specific format, recording the

names and views of the different participants. The minutes may be

recorded by any one of the meeting participants. A sample format for

minutes for formal meetings is shown below –

Format for Minutes MEETING DATE _____________ TIME _________ PLACE ______________ PURPOSE _________________________ CHAIR _____________________ PRESENT _____________________________________________________ ABSENT ______________________________________________________ ITEM NO. SUMMARY ACTION BY WHEN WHO 1 2 3 MINUTED BY _________________ COPIED TO _______________________ NEXT MEETING DATE ___________ TIME _______ PLACE _____________

The contents of minutes of a meeting as follows –

Meeting Date and Location

Purpose

Chaired by and Author

Absentees

Actions

Information

Decisions

Who owns what

Next meeting details

Q2. Prepare a brief notice to be put up on official notice

boards, informing employees of your organization about a

newly introduced, official bus service.

Answer:

Verizon Business July 11th , 2012VZB Towers, Bangalore REF: ADM/N/2299

NOTICE

Sub: Official Bus Service

We are extremely happy to inform all employees of Verizon Business that a new official bus service is now available from Monday August 20th 2012, which is mainly intended to pickup and drop the employees residing in and around Bangalore. Details of the route and timings are already available in the home page of our intranet. Employees wishing to know more or use the bus service may contact the Facilities desk to procure tickets and season passes in advance.

FACILITIES DEPARTMENT

Q3. Write short notes on (a) Upward communication

(b) Downward communication (c) Horizontal

communication

Answer:

(a) Upward Communication – This may be defined as information

that flows from subordinates to superiors. Some of the reasons

for upward communication include discussing work related problems,

giving suggestions for improvement and sharing feelings about the job

and co-workers.

This type of communication has both benefits and disadvantages. One

of the biggest benefits is problem-solving. Once a subordinate has

brought a problem to his superior’s notice, chances are that the

problem will not recur, since the subordinate learns from his superior

how to tackle it the next time. Thus, his ability to solve new problems

and therefore his managerial ability, improves. Another benefit that

could arise from upward communication is that valuable ideas and

suggestions may sometimes come from lower level employees.

Therefore organizations should encourage this kind of communication.

A third benefit is that employees learn to accept the decisions of

management and thereby work as a team.

The biggest problem associated with this type of communication is that

it may lead to “handing down” of decisions by superiors. When

subordinates frequently seek the superior’s guidance, the latter may

adopt an authoritarian approach and merely give instructions,

disregarding the subordinate’s opinion completely.

(b) Downward Communication – This may be defined as

information that flows from superiors to subordinates. The most

common reasons for downward communication are for giving job

instructions, explaining company rules, policies and procedures and

giving feedback regarding job performance. A number of studies have

indicated that regular downward communication in the form of

feedback given to employees is the most important factor affecting job

satisfaction. Therefore organizations today are trying to encourage

more of this type of communication.

There are both benefits and disadvantages associated with this type of

communication. Downward communication that provides regular

feedback will be beneficial if the feedback or review of performance is

constructive. A constructive review is one where a manager “counsels”

an employee, or advises him on how to improve his performance. On

the other hand, a destructive review can destroy employee morale and

confidence. Regular downward communication also creates a climate of

transparency or openness, where information is passed on through

official channels, rather than through rumors.

Thirdly, downward communication boosts employee morale, since it

indicates that management is involved in their progress.

The problems with this type of communication are the danger of doing

destructive reviews, as mentioned, and that of “message overload.”

This means that superiors many sometimes burden their subordinates

with too many instructions, leading to confusion.

(c) Horizontal Communication – This type of communication is also

known as “lateral” communication. It may be defined as

communication that takes place between co-workers in the

same department, or in different departments, with different

areas of responsibility. For example, Sales Managers and Advertising

Managers in the Marketing department, or Marketing Managers and

Finance Managers.

The reasons for this type of communication are for coordination of

tasks, sharing of information regarding goals of the organization,

resolving interpersonal or work related problems and building rapport.

The biggest potential benefit of horizontal communication is the sense

of teamwork that is created. Regular communication of this type

ensures that all co-workers work together towards achieving a common

goal in the overall interest of the organization. The biggest potential

problem is that conflicts such as ego clashes are bound to arise, when

co-workers at the same level communicate on a regular basis.

In spite of these problems, horizontal or lateral communication has

become more important in today’s business scenario than upward or

downward communication. This is because the “organizational

pyramid” indicating the different hierarchies or levels in an

organization has flattened. This is illustrated by the diagrams given

below.

The first diagram illustrates the previous organizational pyramid which

was a

“multi-layer” pyramid. In this type of pyramid, vertical, i.e., upward and

downward communication still plays an important role. This is still the

case

in many traditionally run organizations today.

However, this has been replaced by a “compressed” or flattened

pyramid

where the hierarchy has diminished, as shown in the second diagram.

Thanks to technology and computers which help in faster decision

making, a

manager today has a larger span of control. He or she can supervise

and

control more number of people than before. This in turn has led to

greater

“empowerment”, which means that even lower level employees are

now

being given decision making authority. Therefore, in the absence of

several

layers, there is greater lateral communication than before.

Q4. Go through business magazines and daily

newspapers and select a situation when a company

was facing a crisis (e.g., Coke and Pepsi pesticide

controversy). How did the company communicate with

its shareholders and other stakeholders to overcome

the crisis? Was the communication effective?

Answer:

Shareholders are important internal stakeholders of an organization,

since they are the owners of the company. Since the capital required is

huge, there are no proprietors and partners any more. As organization

grows, shareholding is widely scattered. Therefore, it is essentials to

retain the shareholders, confidence in the company’s management,

through effective communication with them on a regular basis. There

are two situations when shareholder communication is extremely vital –

1. If a company is doing well and wants to expand its scope of

operations, or diversify into unrelated areas. In this case, good

shareholder relations can help to raise the required capital and

minimize borrowing from banks and financial institutions.

2. If a company is going through a crisis or difficult times,

more communication with shareholders is needed.

Take the example of Coke and Pepsi during the pesticide controversy.

Both these companies are still doing well and the reason for

this is effective communication with its stakeholders.

Communication Strategy of Coke and Pepsi during Crisis :-

1. In this, the company was very open with its shareholders and

explained the problem clearly, including the steps being taken to

overcome the crisis.

2. They communicated the truth. Crisis communication is very

important, but often overlooked area of shareholder

communication. Lack of communication during a crisis

encourages the grapevine among shareholders and leads to false

rumors. For example. Rumors may spread that the company is

going to close down. On the other hand, if you tell the truth,

changes are that your shareholders will stand by you.

3. The appropriate media for communication with shareholder

was used: including both oral and written periodic mailers should

be sent to all shareholders, giving a fair and truthful

representation of the company’s results and progress on various

fronts.

4. Very Interactive Methods were used - In areas where there is

an aggregation or concentration of shareholders, shareholder

meeting and conferences should be held, making presentations

on the company’s progress. When the company is going through

a crisis, shareholders should be taken on project site and factory

visits, to show them the measures that are being taken to solve

the problem.

5. The overall guiding factor in communicating with

shareholders was that they are the owners of the

company.

Q5. Discuss the different types of business reports

Answer:

A business report may be defined as “an orderly and objective

presentation of information that helps in decision making and

problem solving.” It may be in oral or written form.

The key words in the above definition are “orderly”, “objective”,

“information”, “decision making” and “problem solving.”

“Orderly” means that a report flows in a logical sequence, for example,

from a definition of the problem, to analysis, to recommendation of

solutions. “Objective” means that a report is written avoiding use of the

first person, so as to avoid bias. The passive voice is used rather than

the active voice, so as to give less importance to the doer of the action.

Reports may be classified based on several criteria, including their use

(progress reports and financial reports), purpose (informational,

analytical and persuasive reports), frequency of preparation (annual,

monthly, weekly and hourly reports), length (short and long reports)

and whether they are internal to the business, or are used outside the

business.

The most common types of business reports may be divided into the

following categories –

1. Periodic reports – These are reports that are prepared on a

regular basis, for both internal and external audiences. Their purpose

is solely to inform. Examples of this type of report are –

a) Routine management reports – These are reports such as

equipment reports and sales updates and are prepared for

internal audiences.

b) Compliance reports – These are submitted to external

stakeholders, such as the government, stating compliance with

regulations such as environmental norms.

c) Progress reports – These reports may be prepared for both

internal audiences such as top management and shareholders, as

well as for external audiences such as customers. A project

report stating progress on a long-term project is an example of

this type of report.

2. Proposals – Unlike periodic reports, the purpose of a proposal is

to persuade. Proposals may be prepared for both internal and

external audiences. Examples of proposals include research proposals

and marketing strategy proposals to top management, proposals to the

government to grant funds for building a research facility and proposals

to consumers to buy a company’s products.

3. Policies and Procedures – The purpose of these reports is

solely to inform. They are also prepared only for internal audiences.

Examples include reports on company policies and procedures, written

by top management and sent to all employees. This is part of

downward communication.

4. Situational reports – These are one-time, exceptional reports

that are prepared when a unique event occurs. For example, if sales of

the company has shown a significant decline, a study may be carried

out to determine the reasons for declining sales and a report prepared

on the findings. Similarly, a market feasibility study may be carried out

before launch of a new product and a report prepared, based on the

study. The purpose of such reports is usually to inform, analyze and

persuade.

Q6. List the different steps involved in report

preparation

Answer:

Since reports are a key to the success of any business, they should be

carefully planned, organized, written and presented. A lot of

groundwork should precede the actual writing of the report. We shall

briefly discuss the five main steps in report preparation –

1. Planning the report – The first question to be asked before

gathering information and writing the report, is regarding the type of

report that is required. We classified reports into four main types,

based on the purpose, the audience to whom they are addressed and

the frequency of the report.

Secondly, it must be remembered that most reports are required by

management to solve a problem, or to make a decision. Therefore,

the basis, or starting point for a report is a problem. Reports are written

after a problem is analyzed and a solution to the problem is found. The

problem may be of a day-to-day nature, such as determining which

brand of overhead projector to recommend for purchase. Or, the

problem may be a negative one, such as sales of the company showing

a decline. In any case, the problem is the single fundamental issue

to be addressed in the report and should be clearly determined,

right at the outset.

Once the problem has been defined, it must be broken up into sub

issues or sub problems, by asking the questions “what”, “ why”,

“when”, “where” and “who?”.

Example – Suppose the purpose of a study is to survey clerical salaries

in public sector banks in Bangalore city, in order to determine whether

salaries in your bank are competitive and consistent. The problem may

be broken up as follows

What? – A study of clerical salaries

Why? – To determine whether salaries in our firm are competitive and

consistent

When? – Current

Where? – Bangalore city

Who? – Clerical employees in public sector banks

Asking the above questions determines the exact scope of the study

and reduces the problem to a workable size.

The next step in planning the report is to do an “audience analysis”.

We have seen that reports may be addressed to internal or external

audiences of an organization. Some of the questions to be asked

about the audience, or the reader of the report are –

Is the audience internal or external to the organization?

Who is the specific audience or reader? - for example, top

management, customers or the government? Reports written for

the government and for top management should be more formal

than for other audiences.

Is the audience known to you?

What is the level of knowledge of the audience? Is the topic

familiar to the reader? If the report is of a technical nature and

the reader is a layperson, the technical terms may need detailed

explanation.

What is the level of interest of the reader? If the report has been

solicited or authorized, the reader’s level of interest will be high.

On the other hand, if the report is voluntary or unsolicited, it may

have to sustain reader interest.

The tone, length, complexity and degree of formality of the report

will depend largely on the reader’s characteristics. For example,

reports addressed to peers would adopt a more conversational

tone, while reports on company policies and procedures

addressed to subordinates would adopt an emphatic tone.

2. Selecting a Method to Solve the Problem – After defining the

problem and doing an audience analysis, a method has to be selected

to collect the necessary information to solve the problem. Broadly,

information may be gathered using secondary research methods, such

as books, magazines, newspapers, internet and other available

sources, or through primary research methods, such as surveys that

provide first hand information.

3. Gathering and Organizing Data – Once the method of gathering

information has been selected, the actual process of gathering the

information begins. Since this is time consuming and expensive, only

information that is relevant to the report and the study must be

gathered. The raw data should be evaluated for its usefulness and

organized in a form that is meaningful to understand. Tables, charts,

graphs and summaries should be used to do this.

4. Arriving at a Conclusion – Once the information has been checked

for its validity and reliability, it must be interpreted and conclusions

drawn. Correct interpretation of the data is needed for the success of

the report. Sound conclusions cannot be made if the interpretation of

the data is faulty. A common mistake made in the interpretation of

data is the tendency of the researcher to use subjective judgments,

instead of objective reasoning based on facts.

5. Writing the Report – The actual process of writing the report

should begin only after a satisfactory solution to the problem has been

found. As pointed out earlier, a well written report that contains a bad

answer is worse than a badly written report that contains a good

answer.

Once you are ready to begin writing, certain procedures for writing

should be followed –

1. Set a date for completion of the report and get started early –

Begin by first preparing an outline and writing an initial draft,

which can be refined later.

2. Starting late is bound to affect the quality of the report.

3. Start with an easy section – It is best to start writing those

sections of the report which you feel are easier than others. This

will help you to get into the rhythm of writing, which will be

carried over to the more difficult sections.

4. Write quickly, with the intention of rewriting – It is better to put

down your thoughts on paper in the form of a rough draft and to

get this done quickly. Once this difficult part is over, it becomes

easier to improve.

5. Set aside uninterrupted writing time – A long block of

uninterrupted writing time, such as three to four hours a day,

should be set aside for writing the report. Interruptions can make

you lose your train of thought.

6. Review and rewrite where necessary – Ideally, the report should

be reviewed a couple of times, to see if any improvement is

needed. The first review should be to see if any improvement in

content is needed, while the second review should check for any

errors in writing style, grammar, spelling and punctuation.

Reports should also be written in a convincing manner, so that the

reader accepts them as valid and reliable. Some suggested techniques

of conviction include the following –

State facts in an objective manner – Avoid using superlatives and

emotional terms that introduce bias in the research, or that

suggest that you are passing judgment. For example, avoid

saying “There was an incredible increase in sales, compared to

the last year.” Instead, simply state the amount or percentage of

increase. This will be more acceptable to the reader.

Provide expert opinions – Although facts are more convincing

than the opinions of others, they may not always be available. In

this case, the opinions of a specialist in the field may be

presented, highlighting the background and experience of the

expert. This can enhance the credibility of the report.

Example – “This is the opinion of an eminent lawyer, who has

over three decades of experience in dealing with similar cases.”

Use documentation – “Footnotes” are citations that are placed

numerically at the bottom of the page in the body of the report,

along with the direct references. This is one way of mentioning

the sources of information presented in the report. A

bibliography, or list of references, explained earlier, is another

way of providing documentation. This helps to convince the

reader that the information is based on reliable sources.

Business reports should be carefully worded, adopting certain

techniques of writing style –

Use “concrete” nouns – Business reports should use concrete

nouns, rather than abstract nouns as the subject of sentences,

since they are easier to visualize.

Example – “Mr. Johnson authorized the study.”

Here, Mr. Johnson is a concrete noun and is easy to visualize.

Compare this with the sentence “Authorization for the study was

received by Mr. Johnson”. Here an abstract noun, “authorization”, is

the subject of the sentence and is harder to visualize.

Avoid pronouns referring to the writer or reader – The first person

pronoun “I” and the second person pronoun “you” should be

avoided in business reports, as far as possible. The use of “I”

risks placing more emphasis on the writer of the report, rather

than on the ideas.

Example – “I conducted face-to-face interviews with fifty

respondents.” This draws more attention to the report writer and

should be avoided. It is better to emphasize the idea that “Face-

to-face interviews were conducted among fifty respondents”.

Use tenses correctly – If you are writing a research report and

reporting or summarizing some of the findings, the past tense is

preferable.

Example – “Almost 80% of the respondents were not aware of the

new product.”

“Of the remaining 20%, five respondents were satisfied with the

product’s features.”

However, once the findings have been presented and you are

drawing conclusions, the present tense should be used.

Example – “The above figures clearly indicate the need for more

advertising to create awareness.”

Use “transition” sentences - The report should be written so as to

flow in a logical sequence. A transition sentence summarizes one

section of the report and leads the reader smoothly into the next

section.

Example – “While the costs of this new initiative are more than

what were anticipated, the benefits outweigh the costs, as listed

below.”

This sentence leads the reader from a discussion on costs to a

section on benefits, as a result of a cost-benefit analysis.

* Define key terms carefully – Important terms and words should

be defined properly, explaining what the word means, rather than

what the word is about.

Example – “A dictionary is a book containing an alphabetical list

of all words in a particular language” is a more complete

definition than –

“A dictionary has to do with words in a language.”