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10.

18 BUSINESS CORRESPONDENCE AND REPORTING

PART – 2
OFFICIAL COMMUNICATION

GOALS
Learners will be able to-
1. Improve their official and business communication skills.
2. Understand the importance of memos and circulars in business communication.
3. Become familiar with the various types of circulars and memos.
4. Explore the appropriate language and format associated with circulars and memos.
5. Express their ideas clearly.

LEARNING OBJECTIVES
♦ Differentiate between circulars and memos.

♦ Understand the subject matter carefully and include relevant information while drafting memos and
circulars.
♦ Organise content logically and systematically.

♦ Use proper format, language and style while drafting memos and circulars.

INTRODUCTION
Since every organisation whether it is a huge conglomerate or a small business is divided into various
departments, using a form of internal communication becomes mandatory. Inter-departmental and intra-
departmental communication are important aspects of both business and official communication. Official
communication can be segregated into memoranda, official circulars, and office suggestion boxes.

CIRCULARS WITH SAMPLE


Office circulars are generally those letters, which are circulated to a large number of employees in an office
conveying a special message or an instruction that needs to be followed in the future. It is a user-friendly and a
cost effective method of circulating information by ensuring that the particular message reaches many persons
at the same time. These types of announcements primarily focus on operational issues and hold a certain
degree of importance for employees in an office. The information conveyed through a circular may vary from an
invitation to a meeting to the important issues like impending meetings, new rules or change in existing rules to
be implemented in near future. This method is seen as an effective method of communication as it

© The Institute of Chartered Accountants of India


19 FORMAL LETTERS AND OFFICIAL COMMUNICATION 10.19

disseminates information simultaneously to a large number of people. It is an indispensable tool which is both
cost effective and formal and which reduces the effort of the management considerably.

Sample
Circular No. XXI 7th December , 2016
Office working hours
For all employees
This is an official confirmation about the office timings that have to be followed strictly by all the employees.
Being an outsourcing organisation, we maintain a different schedule of work hours as compared to the normal.
It is a sincere request to all employees to follow office timings as per the mentioned guidelines, catering to the
US work time.
• Working hours 6 pm to 2 am.
• Saturday and Sunday off.
• Meal break: 9:00 am to 9:30 am.
Defaulters will be liable for explanation and strict action will be taken against repeated defaulters. In case of
emergency or any other exigency, kindly notify the respected Heads within 24 hours.
Simran Thalreja
Manager, HR

MEMOS WITH SAMPLE


A memo is used as a means of official communication within a company or an organisation. The word memo or
memorandum means ‘reminder’ and is frequently used to inform the people within the organisation about
policies, procedures, etc. It is often written from a one-to-all perspective (like mass communication),
broadcasting a message to an audience, rather than a one-on-one, interpersonal communication. It may also
be used to update a team on activities for a given project, or to inform a specific group within a company of an
event, action, or observance.
A memo typically has five functions:
♦ To remind
♦ To highlight
♦ To recount
♦ To keep a record
♦ To inform or instruct briefly
In all the above scenarios, memos should use an easy language, with short and crisp statements.

© The Institute of Chartered Accountants of India


10.20 BUSINESS CORRESPONDENCE AND REPORTING

Sample 1
(A memo letter informing the Office Manager about the purchase of office furniture.)
ABC Technopolis Ltd.
65, Nehru Nagar, New Delhi
Interoffice Memo
Date : 25 July, 2016
To : Office Manager
From : Mr. Ashok Reddy, Purchase Officer
Reference : 216/BM
Subject : Purchase of Office Furniture
As desired, the order for the supply of office furniture (chairs and tables, sofa sets) has been placed with
Shivshakti Furniture Mart, Kirbi place, New Delhi. The chairs and tables will be supplied in multiple lots. The
order will be completed in ten days.
Sample 2
Write a memo apprising all branch employees about suspension order of an employee of the same office.
Samriddhi Bank Limited
29,Kapasehra, Gurgaon, Haryana
Interoffice Memo

Date : 05 September, 2016


To : Branch Manager & Staff
From : Mr. Naresh Kochar, General Manager
Reference : 114/LT
Subject : Cashier’s Dismissal
This is to inform that Mr. XYZ, Cashier of Samriddhi Bank, Vilas Nagar Branch, has been suspended on charge
of misappropriation of funds. All concerned are requested to abstain from dealing with him. Strict action will be
taken against a branch employee found to be in contact with him. Bank authorities shall not be responsible for
any fraud/cheating caused by him henceforth with any branch employee.

© The Institute of Chartered Accountants of India


21 FORMAL LETTERS AND OFFICIAL COMMUNICATION 10.21

PRACTICE EXERCISES
Q1) You are the Sales Head of your company Overseas International. You had dispatched a hundred
important letters to your branch offices using the services of a courier company named Courier and
Co. As committed, the courier company failed to deliver the letters on time due to which your company
has sufferd losses.
Draft a complaint letter for the same, addressing it to the Director, Dispatch and Delivery, of Courier
and Co.
Q2) Imagine yourself as the Sr. Manager, of a company called Direct Solutions. One of your clients had
ordered few software products, which you have delivered. However, only half the payment has been
received. In spite of repeated e-mails and phone calls, the client has not cleared the pending payment.
Draft a recovery letter for the same, referring to dire consequences that could be taken in case of
unfulfilled payment.
Q3) As the HR, head of your company, draft a circular, to be distributed to all employees informing them
about certain changes in dress code.
Q4) Draft a memo for a CA firm, quoting the amount to be spent on stationary and office supplies for the
first quarter of the financial year.
Q5) Imagine yourself as the Manager, Keller Kitchen Company. Write a letter to Tajmeet Sethi, Proprietor
of Manjeet Kitchen Equipment, ordering various kitchen equipment for your newly opened restaurant.
Specify all the necessary details.
Q6) As the Office Manager of A.Q. Electronics Ltd., write a letter to the Sales Manager, Standard Office
Furniture Limited enquiring about their range of visible record system filing cabinets that you are
interested in introducing in your main office. Also request price lists and catalogues.
Q7) Green Clean Ltd. is a firm providing its customers home cleaning services. As Suheil Tandon, Manager
of the firm, write a sales letter addressed to Aanya Aiyer describing your state-of–the–art and
environment friendly cleaning methods. Explain, why you have an edge over firms providing similar
services. Also provide information about any discounts or offers you may be extending to your
customers.
Q8) As the Manager, HR of Net Solutions Ltd, Mumbai, draft a complaint letter to the Administrative Head
of Food for you, Mumbai, stating your concern about the bad quality of food being supplied to your
company’s cafeteria.
Q9) As the HR Manager of your organisation, draft a circular for all the employees of your company,
informing them about a charity cultural event being organised over the weekend in the office campus.
Mention a few events and request for active participation.

© The Institute of Chartered Accountants of India


10.22 BUSINESS CORRESPONDENCE AND REPORTING

ANSWERS (VALUE POINTS)


A.1)
♦ Mention the date the letters were sent for courier.
♦ Refer to the importance of delivering by an assigned date.
♦ Refer to the losses your company will bear as a result of late delivery of letters.
♦ Mention that this would affect further business with the courier company.
♦ State reasons for having chosen that particular company.
♦ Use salutations and date, location format according to details given in the complaint letter section.
A.2)
♦ Use proper format.
♦ Refer to the order no of the product; do not forget to mention the date of order.
♦ Quote the payment details and till when the full payment was to be made.
♦ Make a sincere request to complete the payment.
♦ Or else state some strict action that could be taken, probably you would file a complaint or issue a
legal notice. Since it is a software you can’t take the product back as it would have been installed by
now. In case of solid products, you might also state that you will procure them back.
♦ Suggest another date by which you expect the complete payment to be made.
A.3)
♦ Use the circular format.
♦ Mention the date, a fictional circular number.
♦ Write a heading.
♦ State the objective of the circular.
♦ State reasons for change in dress code.
♦ Mention few pointers for male/female employees separately, stating the expected dress code.
♦ State the date from which this change should be effective.
♦ Also mention actions that would be taken against defaulters.
A.4)
♦ Write the heading/subject.
♦ State the no. of stationary supplies needed; name them for eg. Pens, pencils etc.
♦ Name the vendor.
♦ Signed by a, name the person with designation and date.

© The Institute of Chartered Accountants of India


23 FORMAL LETTERS AND OFFICIAL COMMUNICATION 10.23

A.5)
♦ Use appropriate format.
♦ provide full particulars of goods ordered such as product name, brand name, quantity and other
specifications (such as catalog number, model number, colour, size, weight, etc.) if required.
♦ Specify desired receipt date, shipping location and mode of shipping (rail, road, or waterways).
♦ Mode of payment must be clearly indicated.
♦ Payment date must be indicated.
A.6)
♦ Use appropriate format.
♦ State clearly where you got to know about them (advertisement, reference or previous business).
♦ Describe your need.
♦ List clearly all that you need information about (price, discounts, models, installation, after sales
service, etc.).
♦ Specify a desired date before which you need the information.
A.7)
♦ Use appropriate format.
♦ Describe your services - state-of-the-art and environment- friendly home cleaning at Rs. 2500.
♦ Better than other services – use non-toxic cleaning products that are safe for children and pets; police
– verified staff.
♦ Satisfaction guaranteed (include testimonials from existing customers).
♦ Discount offers such as 10% discount for first time users.
♦ Provide contact details.
A.8)
♦ Mention the details of food items supplied and payment terms.
♦ List of food items recently supplied.
♦ List of food items shoddy in quality.
♦ Problems in taste/adulteration in ingredients.
♦ Health hazards caused.
♦ Warning to improve quality.
♦ Food to be tested and approved by Food Manager on daily basis at the time of delivery.
♦ Quality chart to be maintained.

© The Institute of Chartered Accountants of India


10.24 BUSINESS CORRESPONDENCE AND REPORTING

A.9)
♦ Mention about the event, date ,time and venue.
♦ Dress code (optional).
♦ Objective of the event.
♦ Invitation extended to the family of the employees.
♦ Games and group activities to be organised.
♦ Cultural events such as classical dance, sufi music, short skit.
♦ Request for contributions in cash or kind (old clothes, books, bedding, furniture etc.).

© The Institute of Chartered Accountants of India

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