Tuesday, 20 September 2016

Business Report Writings

6.1            Introduction

Business managers, often, are required to write business reports of one sort or another. In fact, such writing can be lucrative and the organizations that do not have the need or budget to hire a full time manager look for hiring such business executives who can discharge the work on part time basis. Therefore, if you have read many business reports, you know they tend to be dull and turgid. They do not have communication balance that they need to have. While writing a business report won’t let you use all your


creativity, you can apply the principles of good writing to create a document that communicates the meaning with its underlying spirit and at the same time it needs to be readers’ friendly.

As always, knowing to whom the report is more critical, implicit in that knowledge is the question, “What do they want to know?” As a rule, readers of business reports are looking for two things: the bottom line and how will it affect them. It is also safe to say that your readers are busy, often extremely so, use these facts to well structure the report.

All too often business reports start with some sort of introduction that includes a bit of history and, perhaps, the approach taken to getting the results or items being reported. Usually, however, the readers already have this information, so start with the bottom line. This might involve money or it may be the action the report recommends, or both.

Make sure assertions and recommendations are backed up with solid information. History and methods can often be used as back-up information, but it will usually need to be rewritten so it fits. Business readers scan for the information they need. Well-written headlines and subheads will help or guide them to the parts of the report they actually need.

If possible, write in the first person, as a ghostwriter. Avoid the passive voice like the plague. Even if the samples you are given use a lot of passive language, use the active voice; chances are the company will be delighted.

Groups of numbers should probably go into some sort of table or chart. They not only break up large blocks of text, they also can clarify the information. Once you have a handle on the information, create an abstract





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or executive summary. Include the recommended action and put this section right up front.

Now you have been introduced with a business report that communicates the needed information easily. A complete business report must concentrate on: understanding the readers’ expectations; objectives and specifications for the research report; facts, conclusions, inferences, and judgments; moving data to messages objectively; organizing; using guideposts for clarity; writing clearly; writing user-friendly audit reports; editing and writing concisely

6.2            Types of Business Reports


A report is a ‘basic management tool used in decision-making’. Hence, it is extremely important for business executives. In a one-man business, the functions of reporting and decision-making are combined in one man-the proprietor. He knows his business inside out and is capable of making on-the-spot decisions. Therefore, he does not need any reports. But large-scale organizations are engaged in multifarious activities, which are being handled by different departments. Their top executives cannot keep a personal watch over all these activities. So they have to base their decisions on the reports they get from the heads of various departments. For large organizations, reports are just indispensable.

A report carries information from someone who has it someone who needs it. A report; is a basic management tool used in decision-making.

Types of Business Reports: We can classify business reports in various ways. On the bass of legal formalities to be complied with, we can have (1) informal reports, and (2) formal reports.






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1.      Informal reports. An informal report is usually in the form of a person-to-person communication. It may range from a short, almost fragmentary statement of facts on a single page, to a more developed presentation taking several pages. An informal report is usually submitted in the form of a letter or a memorandum.
2.      Formal reports. A formal report is one, which is prepared in a prescribed form and is presented according to an established procedure to a prescribed authority.

Formal reports can be statutory or non-statutory: A report prepared and presented according to the form and procedure laid down by law is called a statutory report. Reports submitted at the Statutory Meeting of Shareholders, Directors’ Report to the Annual General Meeting, Annual Return, Auditors’ Report are statutory reports.

Formal reports which are not required under any law but which are prepared to help the management in framing policies or taking other important decisions are called non-statutory reports.

On the basis of the frequency of issue, a report can be periodic or special.


1.                  Periodic or Routine reports are prepared and presented at regular, prescribed intervals in the usual routine of business. They may be submitted annually, semi-annually, quarterly, monthly, fortnightly, weekly or even daily. Generally, such reports contain a mere statement of facts, in detail or in summarized from, without an opinion or recommendation. Branch Manages of banks submit periodic reports to the Head Office on the quantum of business transacted during a particular period.







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2.                  Special reports are related to a single occasion or situation. Reports on the desirability of opening a new branch or on the unrest among staff in a particular branch are special reports. Special reports deal with non-recurrent problems.

On the basis of function, a report can be (1) informative, or (2) interpretative.

If a report merely presents facts pertinent to an issue or a situation, it is informative. On the other hand, if it analyses the facts, draws conclusions and makes recommendations, it may be described as analytical, interpretative, or investigative.

It a report presents production figures in a particular period, it is informative. But if it goes into the causes of lower production in that period, it becomes analytical, interpretative or investigative.

On the basis of the nature of the nature of the subject dealt with, we can have a (1) problem-determining report, or (2) fact-finding report, or (3) performance, or (4) technical report, etc.

In a problem-determining report, we try to determining the causes underlying a problem or to ascertain whether the problem actually exists. In a technical report, we present data on a specialized subject, with or without comments.

On the basis of the number of persons entrusted with the drafting of reports, we can have (1) reports by individuals, and (2) reports by committees or sub-committees.








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Reports submitted by the Branch Manager, Personnel Manager, Marketing Manger, the Company Secretary, The Auditor, the Solicitor, etc., are reports by individuals. These reports are naturally related to the work in their own departments.

Sometimes reports are needed on subjects that concern more than one department, or they are so important that it is thought advisable to associate more than one person with them. In such cases, committees or sub-committees are formed to prepare reports. These reports are formal in style and impersonal in tone and are prepared after a careful and cautious deliberation of the members.

Research Proposals and Report: Because research is a cost to the organization in terms of personnel time and monetary expenses, superiors want to know, what they will gain in return for expending these resources. Thus, a research proposal is a structured presentation of what you plan to do in research, why you plan to conduct the research, and how you plan to accomplish it. The proposal gives those concerned with your research effect on opportunity to evaluate your research approach. Every step of your proposal should be developed with extreme care. Once it has been accepted, any substantive changes you may wish to make must receive prior approval.

Research proposal formats vary depending upon the desires and needs of those who will appraise your work. It includes the following sections:

1.                  Heading: Provide a neutral, descriptive title for your project, being careful not to promise more than you can deliver. Include as a subtitle “A Research Proposal,” your name, and the submission date. The subtitle (but not the title) may be omitted from this page if you include a separate title page that includes this information.





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2.                  Introduction: Establish a definite need for your study. Include here the background information about the problem, explaining enough to establish a situation and to orient the reader. For credibility, include any information from published sources that help to establish a need for your project. (More complex research proposal may contain a separate “Review of Literature” section, which would then immediately precede the “Procedures” section.)

3.                  Problem: On the basis of what you said in the previous section, a problem needs answering. Introduce the problem statement and then, using neutral language, state in question form the specific problem to be investigated (avoid yes-or-no questions because your problem is probably more complex than that). Then introduce the sub-problems, listing them in logical order. Taken together, the answers to your sub-problems must provide a complete and accurate answer to your problem statement.
4.                  Scope: The scope of the problem describes the boundaries you have established for your research problem. It may rely on geographical boundaries, a segment of a universe, a time period, or any combination of these. The scope (also called “delimitations”) indicates those parts of the topic that normally might be considered a part of such a study but that you do not wish to include in your study. Your report title and problem statement must reflect any major delimitations imposed on your study. If you are using any terms in your study that may be subject to different interpretations or that may be unfamiliar to the reader, define them here.

5.                  Procedures: Explain how you will conduct your investigation. Describe your sources of data and methods of collection. To ensure that adequate data is available to answer your problem, you should have identified most of your secondary sources prior to writing your



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proposal. Likewise, you should be certain that people whose help is needed for your study are available and willing to cooperate. Regardless of how you organize this section, plan your procedures carefully and present them in such a way that the reader has confidence that they will enable you to provide an accurate and complete answer to your problem statement.

6.                  Conclusion: Don’t leave the reader hanging by ending your report abruptly. Include an appropriate ending paragraph that provides a sense of closure for your research proposal.

7.                  Reference: Include here the published sources (including Internet citations) to which you actually referred in your proposal in your proposal. The author/year style of citation shown in Model 18 is typical for business reports, but you should use the citation style preferred by your reader or organization. (If your list of sources is extensive, begin the list on a separate page – as would be done in the final research report.)

6.3            Characteristics of A Good Report


1.                  Precision: In a good report, the writer is very clear about the exact purpose of writing it. His investigation, analysis and recommendations are directed by this central purpose. Precision gives a kind of unity and coherence to the report and makes it a valuable document.

2.                  Accuracy of facts: The scientific accuracy of facts is very essential to a good report. Since reports invariable lead to decision-making, inaccurate facts may lend to disastrous decisions.








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3.                  Relevance: The facts presented in a report should be not only accurate but relevant also. While it is essential that every fact included in a report has a bearing on the central purpose, it is equally essential to see that nothing relevant has escaped inclusion.

Irrelevant facts make a report confusing; exclusion of relevant facts renders it incomplete and likely to mislead.

4.                  Reader-orientation: A good report is always reader-oriented. While drafting a report, it is necessary to keep in mind the person(s) who is (are) going to read it. A report meant for the layman will be different from another meant for technical experts.

5.                  Objectivity of recommendations: If recommendations are made at the end of a report, they must be impartial and objective. They should come as a logical conclusions to investigation and analysis.

They must not reveal any self-interest on the part of the writer.


6.                  Simple and unambiguous: A good report is written in a simple, unambiguous language. It is a kind of scientific document of practical utility; hence it should be free from various forms of poetic embellishment like figures of speech.

7.                  Clarity: A good report is absolutely clear. Clarity depends on proper arrangement of facts. The report writer must proceed systematically. He should make his purpose clear, define his sources, state his findings and finally make necessary recommendations. He should divide his report into short paragraphs giving them headings, and insert other suitable signposts to achieve greater clarity.

8.                  Brevity: A report should be brief. It is difficult to define brevity in absolute terms. Nor can brevity be laid down as a rule. All that can



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be said is that a good report is as brief as possible. Brevity should not be achieved at the cost of clarity. Nor should it be at the cost of completeness. Sometimes the problem being investigated is of such importance that it calls for a detailed discussion of facts. Then this discussion should not be evaded. Brevity in report is the kind of brevity one recommends for a précis. Include everything significant and yet be brief.

9.                  Grammatical accuracy: The grammatical accuracy of language though listed at number 9 in the characteristics of a good report is of fundamental importance. It is one of the basic requisites of good report as of any other piece of composition. Who is going to read a report if its language is faulty? Besides, faulty construction of sentences makes the meaning obscure and ambiguous.




Selecting a suitable type of report: Before a writer undertakes to prepare a report, he must consider the following points:

         What kind of report is requested or expected?

         How much time has been allowed to prepare the report?

         What is the purpose of the report?

         What exactly is to be examined?

         What facts are to be furnished?

         For whom is the report meant?


1.      The reporter may have been instructed to prepare a specific kind of report or three may be precedents to follow. But in majority of instances he will have to decide for himself whether he is to prepare an informal or a formal





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report, or if it is a formal report, whether it is a statutory or non-statutory report. It is important that a reporter, right in the beginning, is clear about the lines along which he is to plan the content, form and style of the report.

2.      The length of time the writer has been allowed to prepare the report can give him valuable guidance of the type of report expected. An informal report highlighting some important aspect of a problem may be acceptable if the time is short.
3.      The purpose of a report is perhaps the most important factor to bear in mind before deciding the type of report needed. If the writer has been asked to prepare a report on whether his company should set up a new branch that involves considerable initial expenditure or on advisability of merging into or collaborating with another company, these are matters of vital importance and they need very carefully written formal reports.

4.      Just as it is important to keep in mind the purpose of the report, it is also important to be constantly aware of what exactly is to be examined, to be studied. Such an awareness will eliminate much redundant labour, at the same time it will help in the inclusion of all that is pertinent to a problem and will help in making the report a document complete in all respects. Let us suppose the Development Manger of a bank has been asked to report on the feasibility of setting up a branch of the bank in a new colony. Exactly what is to be examined? (a) What type of colony is this- residential, commercial or industrial? (b) If it is primarily industrial or business houses? (c) If it is residential area, what is its population, what is the general standard of the resident, and what could be their saving capacity? Will the study of these facts suffice? Or, has something of crucial importance been overlooked?
5.      While studying the old file of the company or conducting a market survey, the proprietor is likely to come across a number of interesting facts that





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appear to be relevant but in reality are not. The temptation to include them in the report will have to be resisted.

6.      The last point to be kept in mind is: who is going to read the report? If the report is going to the Research Director, it ought to contain a detailed, step-by step account of the investigations carried out, along with detailed, minutely described findings. On the other hand, if the report is going to the Managing Director, who you know has implicit faith in you and is more interested in your recommendations, it is these recommendations, which will have to be emphasized both in the beginning and at the end. B. Maude beautifully makes this point.

Preparing a report: Once you are clear about the purpose of writing a report, the persons for whom it is meant, the facts to be examined and the facts to be included, and the time at your disposal, and know what the of report you are going to write, it is time to start the work. In Write Better, speak better the following five steps are suggested to write a report.

1.      Investigating the sources of information: Investigating the sources of information is a kind of spadework. It is to be done right in the beginning. The extent of investigation will, of course, depend on the length and importance of the report. Major sources of information are: company files, personal observation, interviews, letters, questionnaires, and library research.

         Most of the relevant information is already contained in the old files of the Company. Sometimes there are precedents, and old findings and recommendations may be of considerable help. So it is very important to go through the old files of the Company. Declining sales or rising cost of production are recurring phenomena. And their causes are also






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usually similar. In these cases, old files may be containing some valuable information.

         In reports on a fire accident or on the progress of a project, personal observation will be great help. It needs on the spot enquiry to ascertain the cause of a fire or to find out why the work of installing a new plant is going on rather slowly.

         Complaints from customers about unsatisfactory service being provided by a branch might necessitate interviews. Interviews with the members of the staff may also be of some help. These interviews should be carefully recorded, clearly indicating the persons interviewed and the time and place of the interview. Sometimes, instead of holding personal interviews, litters may be written to different people.

         When a large number of people are to be contacted, the only practical method is to make use of questionnaires. Such questionnaires are often prepared by large business houses to ascertain the popularity of their products or to find out the possibility of introducing some new products into the market. Questionnaires should never be lengthy. Questions should be prepared in such a way that they do not call for writing lengthy answers. Questions that just require ticking off one of the many alternatives suggested are the best. If the results of the questionnaire are incorporated in the report, a copy of the questionnaire should also be included.

         In reports on subjects of general nature, library research may be found useful. This includes reference to standard reference books and past as well as current issues of newspapers, trade publications and magazines.







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2.      Taking notes: In the course of investigations, the writer keeps on taking notes of anything that appears to be related to the subject. Then there is no time to analyze them and determine how they will be of help in the final report. But as the writer deeps turning them in his mind over and over again, a kind of patter starts emerging and he begins to be clear about what is relevant and what is not. It is a very general kind of pattern but it gives the writer at least a starting point.

3.      Analyzing the data: Now is the time to analyze the collected data in the light of the pattern that has evolved. A lot of data will have to be rejected while a need might be felt to collect more data. The final pattern will emerge at this stage. The writer should never hurry through this stage, since this is the most important stage in writing a report.
4.      Making an outline: Once the final pattern of the report has taken shape in the writer’s mind he should prepare an outline to write the report. In this outline the problem is stated, the facts are recorded, they are briefly analyzed, and the logical conclusion is arrived at. An outline is not essential, but it should be found extremely helpful in writing a systematic report.

5.      Writing the report: The last stage is that of writing the report. It will need a constant shuttling between the outline and the notes. First a rough draft of the report is prepared. Then it is revised, pruned and polished. If the writer has some more time at his disposal, he will find it advantageous to come back to his rough draft after, say, a couple of days. This short interval will make his revision work really meaningful. The writer should also be careful that he langrage of the report is simple, unambiguous and free from grammatical errors. It is now time to type it out in a proper form and submit it.






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6.4            Structures of Business Reports


Business reports are used extensively in organizations, and it is valuable for any executive to develop an effective report writing style. Business reports come in many forms, from lengthy formal reports to the shorter variations used within departments. Therefore, the writing style should reflect the nature of the report content.

A report can be organized in three ways: Letter form; Memorandum form; and Letter text combination form.

1.    Letter form: In the case of brief, informal reports, the arrangement followed in business letter is adopted. Its main parts are: heading or the title, date, address, salutation, the body, complimentary close, and signature. It is usually written in the first person- I or we. The body of the letter can be further divided into the following parts:

         Introduction: The introductory paragraphs present the terms of reference and the subject of study. Here the writer states the problem confronting him in the light of the terms of reference and the relevant circumstances.

         Findings: The next few paragraphs present the finding of the investigation.

         Recommendations: Recommendations that logically follow the findings are given in the last paragraph of the body.

2.                  Memorandum form: Adopting the memorandum form is a simpler way of presenting the report, since here the formalities of the letterform are done away with. The data is mentioned at the top. It is followed by the name of the person to whom the report. Next





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follows the actual text and the conclusion. As in the letterform, the text of the report is divided into paragraphs with headings and sub-headings. Large business houses have different types of printed forms to send reports. This simplifies the procedure and ensures uniformity of style.

3.            Letter-text combination form. Long reports are usually written in the letter –text combination form.

Structure of Formal Reports: In general, long formal reports follow a recognized structure, made up of a tile page, table of contents, executive summary, introduction section, the main body of the report, conclusions section, recommendations and appendices.

Title Page: The title page, as its name suggests, identifies the report, so that it can be distributed to those individuals who are authorized to receive it. The title page should also contain sufficient information to enable the report to be retrieved easily once it is in storage. This page should be attractively laid out, as it is the first page that the reader see’s, and first impressions are important!

Table of Contents: The table of contents lists the main sections or chapters that appear in the report and the page number for each.

Executive Summary: The executive summary plays an important role in the business report. Its function is to provide busy individuals with an overview of the report contents. Therefore, the summary should be interesting enough to encourage the executive to return to the report when he/she is less busy! The normal length of the summary is between 350 – 550 words, and the summary should contain the objective(s) of the report, main findings, conclusions or recommendations. However, some extensive



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reports concentrate on presenting an overview of the conclusions or recommendations.

Introduction Section: The introduction should set out the aims and objectives of the report and provide background information about the matter being investigated or discussed. In addition, the author(s) of the report should explain how the data presented in the report has been gathered, and how the report itself is structured.

Main Body of Report: This section presents the main findings concerning the report’s subject matter. These findings should be laid out in a clear and logical fashion, so that it is easy for the reader to follow the author(s) train of thought. It is usual to put the most important findings at the beginning of the section. It is important to use a system of headings, sub-headings and numbers to break large chunks of text down into smaller paragraphs.

Conclusions Section: In the section, the main findings are assessed. Any conclusions presented should be fair and unbiased, and should not be used as a means of highlighting the author’s subjective opinions.

Recommendations: Recommendations for further action should only be made when the specific aims of the report, or terms of reference, dictate that recommendations be provided in the final report. Any recommendations made should be presented in order of importance and be written in a very precise manner, so that the readers are clear about the author’s intentions.

Bibliography: If the report is based on extensive research, the works consulted by the writer are given in the bibliography. The bibliography may also include works recommended for further study.





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Appendices: There are times when large amounts of data or statistics cannot be easily inserted into the main findings. Therefore, this information can be placed in an appendix at the end of the report. Clear references should be made to the appendix in the main body of the report. This approach is very valuable where several long tables of data must be contained in the report.

Glossary: It is the list of technical words used in the reports and their explanations. Whether these words are to be given in the beginning or the end or in footnotes is entirely a matter of the writer’s choice. Besides, whether the glossary is needed al all depends upon who is going to read the report. If it is going to be read by knowledgeable people who are already familiar with the terms, there is no need to include the glossary in the report.

Signature: A report must be dated and signed by the person(s) who has (have) submitted it. In the case of a report prepared by a committee or a sub-committee, if it is very important, all the members may sign it, other wise the signature of the Chairman will suffice. If the report is not unanimous, it may be signed only be the assenting members. The dissenting members may submit a separate minority report or they may sign the majority report with a note of dissent

Finally, it is wise to proof-read the report before it is printed to ensure that there are no spelling errors, and that the page numbers indicated in the table of contents match exactly the pages on which headings appear in the report!

6.5            Summary


Thousand of reports, long or short, formal or informal, crucial or ordinary, special or routine are written everyday. A supervisor, at the end of the day,



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reports to the manager the progress of the work carried on in his supervision. The manager of bank sends a periodic report to the Head Office on the sate of deposits, advances, overdraft limits, etc.

C.A. Brown offers a very simple definition: A report is a communication from someone who has some information to someone who wants to use that information.

A report is a ‘basic management tool used in decision-making’. Hence, it is extremely important. In a one-man business, the functions of reporting and decision-making are combined in one man-the proprietor. He knows his business inside out and is capable of making on-the-spot decisions. So he does not need any reports. Nevertheless, large-scale organizations are engaged in multifarious activities, which are being handled by different departments. Their top executives cannot keep a personal watch over all these activities. So they have to base their decisions on the reports they get from the heads of various departments. For large organizations, reports are just indispensable.

Throughout this lesson, we have made a strong case for the increasingly important role that business reports play in the successful management of the contemporary organization. However, too much of a good thing is a bad thing. Without proper management, report – especially computer printouts – can backfire, becoming a nuisance and contributing to information overload.

With the increasing availability of data and the ease with which that data can be manipulated, copied, and distributed, managers sometimes tend to generate every type of report possible and then submit them all to higher-level management. Some managers seem to devote more energy to generating reports than to analyzing and making use of their contents.




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Thus, someone in the organization – preferably someone in higher management – should be assigned the task of controlling reports. Periodically, (typically, annually) this individual should make an inventory of all recurring reports and determine the continuing usefulness of each one. Some reports may be eliminated altogether, some modified, others merged, and, where justified, new reports authorized.

This review process will guarantee that business reports continue to serve management rather than the reverse. With or without such controls, all managers should ensure that the reports they write serve some actual purpose, stick to that purpose, and avoid including extraneous computer data just because it’s easily available.




6.6            Key Words


     Report: A report is a communication from someone who has some information to someone who wants to use that information.

     Glossary: It is the list of technical words used in the reports and their explanations. Whether these words are to be given in the beginning or the end or in footnotes is entirely a matter of the writer’s choice.

     Appendices: There are times when large amounts of data or statistics cannot be easily inserted into the main findings.

     Bibliography: If the report is based on extensive research, the works consulted by the writer are given in the bibliography.

     Executive Summary: The executive summary plays an important role in the business report. Its function is to provide busy individuals with an overview of the report contents.






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6.7            Self-Assessment Questions



1.                  "The single most significant characteristic of the business report is the ability to define the structure of a report." Discuss.
2.                  "Communication is the sum of all things one person does when he wants to create understanding in the mind of another. It is a bridge of meaning. It involves a systematic and continuous process of telling, listening and understanding." Discuss the statement in the light of business report writing.

3.                  Write a note on the need and importance of business report. What are the ideal features of such report..
4.                  What is the desirable structure of a business report? How many ways a report can be written?

5.                  Your manager has asked you to determine whether or not the office staff would welcome the introduction of canteen facilities. Most of the staff have indicated that they would, but only if the facilities were of a high standard. Some of the staff would prefer luncheon vouchers. Make your recommendation in a report to your manager.

6.8            Suggested Readings

1.      Pal, Rajendra and Korlahalli, J. S., Essentials of Business Communication.

2.      Kaul, Asha, Effective Business Communication.

3.      Lesikar, R. V. and Pettite J. D., Business Communication.

4.      Sharma, R. C. , Business Communication and Report Writing.

5.      Shinha, P., Business Communication.










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Subject: Business Communication

(The Lesson is Up-dated and Converted into SIM Format By: Dr. Karam Pal)

Course: MBA                                                                                          Course Code: CP 105

Lesson:           7

ORAL AND NON-VERBAL COMMUNICATION


Objective: The main objective of this lesson is to make the students learn about the basics of Oral and Non-verbal Communication.


Lesson Structure