Sunday, October 18, 2015

Meaning of Office Memorandum and Its advantages and disadvantages

Office Memorandum or Memo or Memorandum
Memorandum is popularly known as memo. The literal meaning of the word memorandum is a note to assist the memory. Memos are the written internal communication means for exchanging information relating to day-to-day functions within the organizations.
According to Lesikar and pettit, “Memorandum is a form of letters written inside the business”.
According to Stewart and Clark, “Memos are used to communicate with other employees, regardless of where the employees may be located in the same organization.”
According to S. Taylor, “Memo is a written communication form one person to another (or a group of people) within the same organization.”
So, memorandum or memos are an internal short note or letter in which information exchanged among superiors and subordinates or same potion of employees in the organizational structure.
Advantages of office memo
We know memorandum serves various purposes. It is a common means of writer, communication within the organization. The main advantages of memos are discussed below:
1.       Time saving: We can see that may organizations use printed memo. As it is usually printed, it takes less time to draft it.
2.       Less formality: No formality is necessary in drafting a memo, usually inside address, salutation and complimentary closing is omitted in it.

3.       Maintenance good relationship: It can help to maintain the good relationship among the boss and subordinates, because the bossing attitude is absent here.
4.       Low cost: The cost of communication through a memo is less than those of others.
5.       References: Memo is a written document. So, it can be used for future references.
6.       Inform the decisions and actions: The main objective of memo is to inform the decisions and actions. For this purpose, it should be written by the higher authority.
7.       Request the decisions and actions: The objective of memo is to request the decisions and actions. For this objective, it may be drafted by the sub-ordinate.
8.       Provide information: Another important objective of the memo is to provide information form one level to another within the business.
9.       Remain someone of action: Memo is also written to remind someone of action, if requires.
10.   Others: Issuing orders and instructions, providing response, providing suggestions, presenting informal report, solving problems.

Disadvantages of office memo
There are few limitations or Disadvantages of memos they are:
1.       Limited application: It is not widely used means of communication. Memorandum is mainly used in business firms. It maintains communication only among the employees of the same firm regardless of distance.
2.       Time consuming: It takes time to be sent to a distant branch or office.
3.       Expensive: As usually a memo is a per-printed form, it is expensive than other means. Sometimes huge printed memos remain unused.
4.       Lack of formality: It provides only informal communication.
5.       Lack of explanation: Memo is written in a short form. So the meaning of it may not be cleared to the reader.
6.       Less important to the reader: As it is an informal means of communication, it can be less important to the reader.
7.       Not suitable for illiterate people: Office memo is a one kind of written communication. So, illiterate people are not able to read and understand it.

Differences between memos and business letters
1.       Memos are never sent out of the company or organization, but letters can be both sent to recipients within the organization or outside the organization.
2.       The information in a memo is concise and straight to the point. A memo will only focus on the most pertinent issues. But letters on the other hand are more detailed and often elaborate more on the important issues to be done or addressed.
3.       Memos are very short; letters are generally lengthier than memos.
4.       Memos are normally sent to the recipient(s) by the organization’s messenger, but letters are normally put in envelopes and posted via mail.
5.       Memos do not contain addresses, but business letters must contain addresses. In a business letter both the sender’s address and the recipient’s address must be put.
6.       A letter can be more private than a memo.
7.       Last but not least, the features of memos are massively different from the features of business letters.

The above-mentioned are the common differences between memos and business letters. Both memos and letters are used frequently in every well organized business organization.


Absorption Costing (1) Accountancy (4) accounting for partnership firms (3) Accounting for Share Capital (3) accounts of non trading concern (3) advanced financial accounting (13) AHSEC (92) ahsec 11 (47) ahsec 12 (60) ahsec notes (89) AHSEC Question Papers (27) Assam Slet (10) bcfm (11) bills of exchange (6) branch accounting (3) Budgetary Control (3) Budgetary Control Notes (2) business communication (29) Business Environment Notes (7) business regulatory framewrok (47) Business Statistics Notes (23) cash flow statement (5) cbse 12 (19) cbse notes (27) commerce (13) company law (23) corporate accounting (33) corporate laws (14) cost accounting (63) cost and management accounting (34) cpt (36) cpt 200 (7) cpt notes (30) dibrugarh university (942) dibrugarh university notes (531) dibrugarh university question paper (307) dibrugarh university solved papers (211) dibrugarh university syllabus (47) direct tax law (49) eco - 01 (4) ECO - 02 (2) ECO - 03 (2) ECO - 05 (6) ECO - 06 (1) ECO - 07 (1) eco - 08 (4) eco - 09 (1) ECO - 10 (2) ECO - 11 (3) ECO - 12 (7) ECO - 13 (2) ECO - 14 (4) entrepreneurship (14) fianancial accounting (3) financial accounting (48) Financial Accounting Notes (11) financial management (18) Financial statements analysis (10) funds flow statement (3) guwahati university (304) guwahati university syllabus (54) Hire Purchase (5) Human Resource Management (14) icwai (38) icwai notes (39) ignou solved assignments (57) ignou solved question papers (63) income from house property (5) income from salary (4) Income Under the head Salaries (11) information technology (10) Installment Purchase (4) issue of shares (4) kkhsou (13) (63) Management Accounting Notes (25) MCQ (11) paper I (1) paper II (9) paper III (1) principle of business mangement (16) Principles of Marketing Notes (16) royalty accounts (3) sale of goods act (8) semester I (157) Semester II (148) semester III (64) semester IV (133) semester V (101) semester VI (70) slet (13) Slet Ne (10) Small Business Management (5) solved assignments (22) UGC - NET: Commerce (08) (14) UGC - NET: Commerce (08) Paper II (3) UGC - NET: Commerce (08) Paper III (14) ugcnet solved question papers (23) Variance Analysis Notes (1)