Business Reports ( Theory, Purpose, General Characteristics and Classification) A Business Report is: a professional document designed to convey information to assist in decision-making.
an impartial, objective, planned presentation of facts
to one or more persons for a specific, significant business purpose.
orderly and objective communication of factual
information that serves some business purpose. Types of Reports
Basically there are two types of reports:
1. Informational reports: present the facts and a summary without stating analyses, conclusions or recommendations. Such as progress reports, interim reports and quarterly reports. 2. Analytical reports: present facts, analyses and interpretations and recommendations or conclusions. Such as recommendation reports, proposals, and justification reports. Other Types of Reports Short Reports: Long Reports:
1. Expense reports 1. Feasibility reports
2. Incident reports 2. Recommendation reports 3. Periodic and progress 3. Proposals reports 4. Quarterly and Annual 4. Lab and test reports reports 5. Field reports 5. Long range planning reports 6. White Papers 6. White Papers Purposes of Business Reports
To seek the truth, regardless of the
consequences To use factual information, interpretations and conclusions; and to use recommendations which must be supported by facts or clearly labeled as opinion. A business report must serve some business purpose and assist in providing solution to a problem. Purpose Statements in Reports: Purpose statements give a clear understanding of why a report is written. They could be written either as a statement or a question.
To determine ways to improve employees’ morale.
(statement) To design a new procedure for the company’s annual inventory. (statement) Should new computers be purchased to replace the older models? (question) Should the office arrangement be open or modular? (question) General Characteristics: The following are the general characteristics of business reports: Focused on the topic Courtesy Completeness Concreteness Conciseness Clarity Correctness Consideration Classification:
Business reports can be classified in different
ways such as: 1. Function 2. Subject matter 3. Formality 4. Origin 5. Frequency of issue 6. Type or appearance Classification: (Continued) 1. Function: Informational and analytical reports are different because of their functions; e.g.: Informational reports are prepared to present the facts and a summary without stating analyses, conclusions or recommendations. Analytical reports are prepared to present facts, analyses and interpretations and recommendations or conclusions. Classification: (Continued) 2. Subject Matter:
Subject matter usually relates to the department; e.g.:
Insurance Accounting Engineering Finance Advertising Misc Classification: (Continued) 3. Formality: Business reports may be classified on the basis of formality -- formal or informal. Formal reports(Usually long): 1.Prefatory parts (cover, title, fly, title page, authorization letter, acceptance, approval, transmittal, acknowledgments, synopsis, abstract, executive summary, table of contents etc) 2. Introduction, 3. Body 4. Terminal section 5. Supplemental parts ( appendices, bibliography, glossary, index etc.) Informal reports (Usually short): 1. Include only body, 2. Some IRs may have title page, transmittal, end notes and appendices) Classification: (Continued) 4. Origin: This classification of business reports refers to their origin, whether it is authorized or voluntary / private or public. Autorized reports are requested or authorized by a person or committee etc.) Voluntary reports are prepared on individual’s own initiative. Private reports originate in a private business firm. Public reports are made by a government department. Classification: (Continued) 5. Frequency of issue: Frequency of issue means if the report is periodic or special.
Periodic reports are prepared at regular intervals—
weekly, monthly, quarterly or yearly.
Special reports are written on a single occasion or
unique situation. Classification: (Continued) 6. Type or appearance: Type or appearance also classify the reports. It refers to the length and formality. For example: 1. Informal: Memorandum reports:1.Short , 2. Memo format ( To, FROM, SUBJECT), 3. Single-spaced , 4. Sent within the organization. Letter reports:1. Short , 2. Letter format, 3. Inside address, 4. Salutation , 5. Complimentary close, 6. Signature area, 7. Reference section, 8. Sent within or outside the organization and 9. Single- spaced.. Printed forms: 1. Job application form, 2. Accident reports, 3. Insurance claim reports or 4.employees’ appraisal reports. 2. Formal:1. Long, 2. Includes different parts 3. Sent within or outside the organization