Business Writing: Introduction, History, Principles, and Types
UNIT 1
1.1 & 1.2
Link to ppt:
[Link]
Introduction to Business Writing
Business writing is a purposeful form of writing used in professional settings to communicate
ideas clearly, formally, and effectively. It is not limited to executives or senior professionals—it
is relevant for anyone who engages in formal communication, including emails, reports, notices,
memos, proposals, and letters. Whether working in HR, IT, Finance, Marketing, or any other
department, effective business writing is essential.
Good business communication adapts to the audience. The tone, formality, and vocabulary of a
message will vary depending on whether it is addressed to a friend, a professor, or an employer.
This sensitivity to audience is central to effective business communication.
Importance of Business Writing
Business writing matters because it:
● Ensures clear, unambiguous communication
● Helps avoid misunderstandings and errors
● Enhances professional image and credibility
● Saves time and resources by being concise and purposeful
● Strengthens relationships with clients, colleagues, and partners
● Supports career advancement through effective expression
Poor communication can result in confusion, financial loss, strained relationships, and even
reputational damage. Learning how to write professionally gives individuals a competitive edge
in the workplace.
A Brief History of Business Writing
Business writing has a long and evolving history:
● 3000 BCE – Mesopotamia: Traders used clay tablets to record business transactions.
● Ancient Civilizations: Romans, Greeks, and Indian merchants documented trade through
written records.
● Industrial Revolution: The rise of factories and structured workplaces led to the
formalization of business letters and record-keeping.
● Post–World War II Era: Memos and typewritten reports became standard
communication tools in offices.
● Digital Age: Modern communication has moved to emails, instant messages, video
conferencing, and online documents. Tools such as Slack, Zoom, and LinkedIn require
professionals to adopt various tones and writing styles depending on the platform.
Guffey’s Principle of Audience-Centered Communication
Business Communication: Process and Product by Mary Ellen Guffey, expert in business
communication
Definition: Audience-centered communication means crafting your message based on the
audience’s needs, expectations, background, and understanding.
Guffey says: “Successful communicators adopt the 'you' view — focusing on how the audience
will receive and respond to the message, rather than just what the sender wants to say.”
Key Features of Guffey’s Approach:
1. The “You” Attitude
● Focus on the reader, not the writer
Example:
✅ “You will benefit from…”
❌ “We are pleased to offer…”
2. Know Your Audience
● Understand their goals, concerns, background, and tone expectations
3. Clarity & Courtesy
● Use clear, polite, and simple langu,age
● Avoid jargon and overly complex words
4. Adapt Your Message
● Change tone and style depending on the audience type:
Internal or external, formal or informal, expert or non-expert
📌 Example Comparison:
❌ “We cannot process your loan at this time.”
✅ “To help you better, we’d be happy to reconsider once the required documents are
submitted.”
Guffey’s principle reminds us that good communication is not about the sender — it's about the
reader.
Media of Communication
Essentials of Business Communication by Rajendra Pal and J. S. Korlahalli
(REFER TO DIAGRAM IN PPT)
Media of communication refers to the channels or means through which messages are
transmitted from one person to another. These media can be broadly divided into two categories:
verbal communication and non-verbal communication.
Verbal communication involves the use of words and is further classified into oral and written
forms. Oral communication uses spoken words to convey a message. Examples include
face-to-face conversations, telephone calls, interviews, meetings, and speeches. One of the main
advantages of oral communication is the possibility of receiving immediate feedback. However,
it often lacks a permanent record.
On the other hand, written communication involves the use of written or printed words and is
generally more formal. Common forms of written communication include letters, emails, reports,
memos, and notices. Written communication provides a permanent record and is suitable for
conveying detailed information, although it may not allow for immediate feedback.
Non-verbal communication refers to the transmission of messages without the use of words. It
includes various components that can influence how a message is received and interpreted. Sign
language is a form of non-verbal communication that uses symbols, signs, or signals to represent
words, ideas, or concepts without the use of spoken or written words. It plays a crucial role in
situations where verbal communication is not possible or practical.
Sign language can be broadly classified into two types: audio sign language and visual sign
language. Audio sign language uses sounds to convey meaning and alert people. These sounds
act as signals that prompt action or awareness. Common examples include sirens, bells, buzzers,
whistles, and spoken alerts. These are often used in public spaces, institutions, and emergency
situations to communicate quickly and effectively. Visual sign language, on the other hand, relies
on visual cues to communicate. It uses visible symbols, gestures, or signs to send a message.
Examples of visual sign language include traffic lights, warning signs, hand signals, visual
alarms, and even modern symbols like emojis. These signs are especially useful in noisy
environments or where sound cannot be relied upon.
One important aspect of non-verbal communication is body language, also known as kinesics.
This includes facial expressions, gestures, posture, and eye contact, all of which can convey
emotions, attitudes, and reactions without the need for words.
Paralanguage is another form of non-verbal communication and refers to the tone, pitch, speed,
and volume of voice. While the words may remain the same, changes in paralanguage can affect
the meaning and emotional tone of the message. Personal appearance also plays a role in
communication. A person’s clothing, grooming, and overall presentation create impressions that
can influence how their message is received, especially in formal or professional settings.
The concept of space, or proxemics, is also crucial in non-verbal communication. It refers to the
physical distance people maintain during interaction. This distance can signal levels of intimacy,
formality, or authority. Similarly, time, or chronemics, communicates meaning based on how
people use or manage time. For example, punctuality often reflects professionalism and respect,
while habitual lateness may be interpreted as carelessness or disrespect.
Listening is an often-overlooked but essential part of non-verbal communication. It involves
actively receiving and processing spoken information and plays a vital role in effective two-way
communication. Silence, too, is a powerful non-verbal tool. Depending on the context, it can
express agreement, hesitation, resistance, contemplation, or discomfort.
In conclusion, communication takes place through a variety of media, each with its own
strengths and limitations. Verbal communication, whether oral or written, allows the structured
exchange of words, while non-verbal communication provides emotional depth and subtlety
through actions, tone, and unspoken signals. A clear understanding of these media helps
individuals choose the most appropriate channel for their message and improves the overall
effectiveness of business and personal communication.
Verbal and Non-verbal Communication in Professional settings
In a business setting, verbal communication uses words to share information, either through
speaking (like meetings or calls) or writing (like emails and reports). It is direct and allows for
detailed messages or quick feedback. Non-verbal communication, on the other hand, includes
body language, tone of voice, facial expressions, and signs. For example, a confident posture
during a presentation or a formal dress code can strengthen the message. Both forms work
together to make communication clear, professional, and effective.
Why Good Business Writing Matters Today
In today’s fast-paced professional world, business writing must be clear and direct. People are
often under pressure and do not have time to interpret vague or unclear messages. Good business
writing:
● Avoids confusion and miscommunication
● Reflects professionalism and respect
● Conveys messages quickly and effectively
● Builds trust with colleagues, clients, and superiors
● Plays a crucial role in client interactions, team coordination, and official documentation
Even small changes in tone or clarity can significantly impact how a message is received and
understood.
Principles of Effective Business Writing
There are five core principles that should be followed in business writing:
1. Clarity
The message should be straightforward and easy to understand. Avoid jargon, ambiguity,
or overly complex sentences.
2. Conciseness
Keep the message brief. Remove unnecessary words while ensuring the essential
information is retained.
3. Tone
The tone should be polite, respectful, and appropriate for the context. It should reflect
professionalism at all times.
4. Purpose
Every piece of business writing should have a clear objective. The writer must be aware
of what they want the message to achieve.
5. Audience
Understanding the reader is crucial. The style, tone, and content of the message should
be tailored to the needs and expectations of the audience.
Specific Objectives of Business Communication
Business Communication by N.S. Raghunandan & B. Santhanam
Business communication plays a vital role in any organization. It serves specific objectives,
which can be grouped into three main categories:
1. Information-Related Communication
This type of communication involves the exchange of information about a product, service, or
activity from the organization to concerned individuals and vice versa. Outgoing information
flows from the organization to its stakeholders, while incoming information comes from those
stakeholders into the organization. These stakeholders may be internal (such as employees) or
external (such as customers or suppliers). The transmission of such information can occur
through personal contact, written documents, orders, warnings, or counselling. It is important to
note that orders and warnings differ from advice and counselling in their tone and intent.
2. Persuasion-Related Communication
Persuasion is closely connected to the promotional activities of a company. It is used to boost the
sales and services of the organization. This type of communication requires tact and a strong
understanding of the target audience. Effective persuasion encourages potential customers or
partners to engage positively with the company’s offerings.
3. Motivation-Related Communication
Motivating various stakeholders is a continuous process in business. A company must motivate
its workforce to perform better and its customers to buy its products or services. Motivation can
only be effective if the communicator understands the mindset of the receiver. To achieve their
business goals, organizations must consistently use communication strategies that inspire and
engage their audience.
General Features of Business Communication
Effective business communication is characterized by the following essential features:
1. Brevity
Brevity means keeping communication concise without losing the core message. The famous
adage, “Brevity is the soul of wit,” highlights the value of short and sharp communication. A
business message should be brief enough to maintain interest but detailed enough to cover the
necessary points. While brevity is important, essential information should never be sacrificed.
Business letters should always remain purpose-driven, avoiding irrelevant details that could
confuse the reader.
2. Clarity
Clarity ensures that the message is easy to understand. A message that lacks clarity may reflect a
confused mind. Clear thinking leads to clear communication. In business writing, it is crucial to
organize thoughts logically and express them in straightforward language so the recipient grasps
the intended message without ambiguity.
3. Simplicity
Simplicity refers to the use of plain, unornamented language. Business communication is not
poetic or literary in nature; rather, it should be direct and functional. Words should not be chosen
for their sound or complexity but for their ability to communicate the message effectively.
The Seven C’s of Business Communication
The Seven C's are foundational principles that guide professionals in crafting messages that are
effective, clear, and audience-focused. Each "C" stands for a quality that enhances
communication:
1. Clarity
● Definition: The message should be clear and easily understood. Avoid vague language or
jargon.
❌
● Example:
✅
“We might consider leveraging synergies in this vertical.”
“Let’s work together with the marketing team to improve sales.”
2. Conciseness
● Definition: Keep the message short and direct. Eliminate unnecessary words.
❌
● Example:
“I am writing this email to inform you that I will not be able to attend the meeting
✅
due to a prior engagement.”
“I can’t attend the meeting due to a prior commitment.”
3. Correctness
● Definition: Use accurate facts, correct grammar, and proper spelling.
● Examples:
❌
○ Facts:
✅
“Independence Day is on 14 August 2025.”
“Independence Day is on 15 August 2025.”
❌
○ Spelling:
✅
“Their going to recieve the package tommorow.”
“They’re going to receive the package tomorrow.”
❌
○ Vocabulary:
✅
“He is an imminent lawyer.”
“He is an eminent lawyer.”
❌
○ Grammar:
✅
“The document has to be signed with ink.”
“The document has to be signed in ink.”
4. Courtesy
● Definition: Be respectful and polite. The tone of your message matters.
❌
● Example:
✅
“You failed to submit the report on time.”
“The report wasn’t submitted by the deadline. Could you please update me on its
status?”
5. Concreteness
● Definition: Use specific facts, figures, and active voice to make the message solid and
tangible.
❌
● Example:
✅
“The project is doing well.”
“The project is 85% complete and on track for the July 20 deadline.”
6. Consideration
● Definition: Tailor the message to the needs and viewpoint of the audience.
❌
● Example:
✅
“You must resubmit the form.”
“To process your request, please resubmit the form at your earliest convenience.”
7. Completeness
● Definition: Ensure the message has all the necessary details to avoid confusion or
follow-up questions.
❌
● Example:
✅
“Let’s meet tomorrow.”
“Let’s meet tomorrow at 3 PM in Conference Room B to discuss the new budget
proposal.”
Types of Business Writing
There are several key types of business writing commonly used in organizations:
1. Memo
A memo is a short and focused internal communication used to convey updates, reminders, or
policy changes within a department or organization.
Example:
Subject: Office closed on Monday due to maintenance.
2. Notice
A notice is a formal, public announcement meant for a group of people. It is typically posted on
notice boards or sent digitally to inform employees or students of upcoming events or changes.
Example:
Notice: Department meeting on 15 July at 2 PM in Room 305.
3. Minutes of Meeting
This is an official record of everything discussed during a meeting. It includes the time the
meeting began, names of attendees, key points discussed, and any decisions made.
Example:
Meeting started at 10:00 AM. Mr. Ravi presented budget concerns. It was agreed to reduce
marketing spend by 5%.
4. Trade Letters
Trade letters are formal letters exchanged between businesses. They are typically used for sales
inquiries, quotations, orders, payments, or complaints.
Example:
We are interested in purchasing 500 units of your product. Please send your best quotation.
5. Bank Correspondence
Bank correspondence refers to letters or emails exchanged with banks for various services such
as account statements, loan processing, or account updates.
Example:
I would like to request a statement of my account from January to March 2024 for audit
purposes.
*
1.3 Link to file:
[Link]
*
UNIT 2
Bank Correspondence
Link to ppt:
[Link]
Introduction to Bank Correspondence
Bank correspondence refers to the formal communication between a customer and a bank. It
involves written requests, inquiries, updates, or applications related to banking services such as
loans, accounts, overdraft facilities, etc. These letters must be clear, concise, polite, and
formally structured to ensure effective communication and prompt response from the bank.
History of Banking
Introduction to Banking
Banking refers to the business of accepting deposits, lending money, and providing financial
services like withdrawals, fund transfers, loans, etc. Over centuries, banks have evolved from
basic moneylenders to complex institutions playing a major role in economic development.
Origin of Banking
● The word "bank" is derived from the Italian word “banco”, meaning bench – used by
moneylenders in medieval Italy to conduct business.
● Early banking activities can be traced back to:
○ Mesopotamia (2000 BCE) – Temples and palaces provided loans.
○ Ancient Greece & Rome – Bankers accepted deposits and gave loans.
○ India (Vedic period) – Loan giving was practiced by rich merchants.
Medieval Banking in Europe
● Templar Knights (12th century) – Provided safekeeping and transfer of money during the
Crusades.
● Italian City-States (14th–15th centuries) – Banking families like the Medicis of Florence
became influential.
● The Bank of Amsterdam (1609) and Bank of England (1694) laid the foundation of
modern central banking.
History of Banking in India
Ancient & Medieval India
● Shreshthis and Kulikas – Ancient Indian bankers and merchant guilds who lent money
and maintained accounts.
● Indigenous banking like hundi (traditional bill of exchange) and sahukars (moneylenders)
were popular.
Colonial Era
● Bank of Hindustan (1770) – First bank in India (no longer in existence).
● Presidency Banks –
○ Bank of Bengal (1806)
○ Bank of Bombay (1840)
○ Bank of Madras (1843)
These later merged to form the Imperial Bank of India (1921).
Post-Independence Banking
● State Bank of India (SBI) was formed in 1955 (from the Imperial Bank).
● 14 major banks were nationalized in 1969, followed by 6 more in 1980, to extend
banking to rural areas and ensure inclusive growth.
● Regional Rural Banks (RRBs) established in 1975 to serve agricultural and rural needs.
Modern Banking in India
● 1991 Economic Liberalization led to entry of private banks like ICICI, HDFC, Axis
Bank, etc.
● Technological Revolution:
○ ATMs, Internet Banking, Mobile Banking, UPI
○ Launch of Digital India, RBI’s Unified Payment Interface (UPI) system
Fintech Era
● Fintech = Finance + Technology
Use of technology to provide faster, paperless, and app-based financial services.
● Examples: Paytm, PhonePe, Google Pay, Zerodha
● Rise of Neo-Banks (online-only banks) and payment banks like Airtel Payments Bank
and India Post Payments Bank.
Key Milestones in Indian Banking
Year Event
1770 Bank of Hindustan established
1806 Bank of Bengal (first presidency bank)
1935 Reserve Bank of India (RBI) established
1955 State Bank of India created
1969 Nationalisation of 14 major banks
1980 Nationalisation of 6 more banks
1991 Banking sector reforms begin
2016 UPI launched by NPCI
2021 RBI launches digital currency pilot programs
Format of a Letter
All formal bank correspondence follows a structured business letter format, which ensures
professionalism and clarity. It typically includes:
● Sender’s Address
● Date (e.g., 16 June, 2025)
● Receiver’s Address
● Subject Line
● Salutation (e.g., Dear Sir/Madam)
● Body of the Letter
○ Introduction and Purpose
○ Details
○ Conclusion/Request
● Sign-off (e.g., Yours faithfully/sincerely)
● Signature and Name
Format of a Business Letter and the Roles of Its Key Parts
Part Role in Communication
Sender’s Address Helps identify the writer and provide return contact details.
Date Indicates when the letter was written and sent.
Receiver’s Address Identifies the bank/branch where the letter is being sent.
Subject Line Highlights the purpose of the letter in one line (e.g., "Request for Car
Loan").
Salutation Maintains professionalism (Dear Sir/Madam, etc.).
Introduction & States why the letter is being written clearly and politely.
Purpose
Details Explains the specifics: type of loan/account, amount, reason,
documents, etc.
Conclusion Summarizes the request and proposes next steps (e.g., “Kindly process
my request soon.”).
Sign-off Ends politely and formally, with sender's name and sometimes
signature.
Different Kinds of Accounts in a Bank
Type of Account Reasons to Open
Savings Account For regular transactions and earning interest. For salary credit and
bill payments.
Current Account For frequent, high-volume business transactions.
Fixed Deposit (FD) To invest a lump sum for a fixed period and earn high interest.
Recurring Deposit To save small amounts regularly for future needs.
(RD)
Joint Account To share banking access with family members/spouse.
Salary Account For salaried employees to receive monthly payments.
Minor Account To save money for a child’s future and teach financial discipline.
NRI Account For Indians living abroad to manage income and investments in
India.
Different Kinds of Loans
Loan Type Secured/Unsecured Purpose Tenure
Personal Loan Unsecured General needs (travel, 1–5 years
medical, etc.)
Home Loan Secured Purchase or construction of Up to 30 years
house
Car/Vehicle Loan Secured To buy a vehicle 1–7 years
Education Loan Secured For higher education 5–15 years
Gold Loan Secured Urgent funds against gold 6 months – 2
assets years
Loan Against Secured Large expenses/business 5–15 years
Property expansion
Business Loan Both Capital for small or large 1–10 years
business
Agricultural Loan Secured For farming, equipment, Seasonal/long
irrigation term
Consumer Durable Unsecured Buy electronics, appliances 6 months – 2
Loan years
Overdraft Facility Secured/Unsecured Short-term liquidity Flexible
What is Overdraft Facility?
An Overdraft (OD) Facility is a short-term credit feature offered by banks, allowing customers
to withdraw more money than is available in their account, up to a limit.
● It can be secured (e.g., against a Fixed Deposit) or unsecured.
● Interest is charged only on the amount used and for the duration used.
● Ideal for handling temporary cash flow shortages in business or personal finance.
Different Kinds of Letters in Bank Correspondence
Common Types of Type of Letter Purpose
Bank
Correspondence
Request Loan Request Letter To apply for a personal, home, car, or other
type of loan.
Account Opening/ To request a new savings, salary, or
Closing Letter business account.
To formally close an existing bank account.
Overdraft Facility To request an OD limit on a current or
Request Letter savings account.
Enquiry Account-Related To ask about balance, statement, charges,
Enquiry Letter interest, or documentation.
Complaint Transactional errors To address concerns such as transaction
Poor customer errors, poor customer service, and
service unauthorized deductions affecting customer
Unauthorised trust.
deductions
Conclusion
Bank correspondence is a vital part of professional and financial communication. Using the
correct business letter format and a polite, clear tone ensures your requests are understood and
acted upon efficiently. Whether applying for a loan, opening an account, or requesting an
overdraft, every letter should reflect professionalism and precision.
*******