With reference to 'circular letters', which of the following statements is/are correct? 1. Circular letters are usually addressed to a group of people. 2. Non-standard and customized content is typical of circular letters. 3. Circular letters are used to intimate appraisals and increments of employees within organisations. 4. Circular letters are less cost-effective than personalised and specific recipient-directed letters. Select the answer using the code given below.

The correct answer is Option D (1 only).

Statement 1 is correct. A circular letter is an official document or written communication intended to be distributed to a large group of people or a mass audience simultaneously. In organizational contexts, they are used to disseminate general information widely to employees, customers, or stakeholders.

Statement 2 is incorrect. Circular letters consist of inherently standardized, uniform messages. Because they are designed for mass distribution, the core content is neither customized nor non-standard. The letter is drafted once and duplicated, standing in direct contrast to highly individualized correspondence.

Statement 3 is incorrect. Circular letters are utilized for general announcements, such as changes in company policy, office locations, or new product launches. Performance appraisals and salary increments are highly confidential, personal matters. They are communicated through personalized, individual letters, never through mass circulars.

Statement 4 is incorrect. Circular letters are specifically designed to be highly cost-effective and time-saving. Drafting a single standard message and distributing it to a wide audience consumes significantly fewer organizational resources than drafting, processing, and sending uniquely personalized, recipient-directed letters to every individual.

Takeaway: Remember that "circulars" are meant to circulate widely. They are standard, general, and highly cost-effective tools for mass communication, making them inherently unsuitable for sensitive, customized, or individualized personnel matters.