Lesson 13: Communicating Through Reports

Overview

The main point of this lesson is that businesses use many types of reports, the purpose of which is reflected in their organization and format. As you read and study this chapter, think about the way that function influences format. When you finish reading, look for examples of business reports and proposals and try to classify them in the categories outlined in the chapter.

Objectives

After reading and studying Chapter 13 you will be able to:

1. define what is meant by a business report.

2. discuss why businesses need reports and highlight the six general purposes of reports.

3. distinguish between informational and analytical reports.

4. describe four types of informational reports and provide examples of each.

5. describe three types of analytical reports and briefly explain how each is used.

6. list the advantages and disadvantages of electronic reports.

A business report is a factual, objective document that serves a legitimate business purpose. It may be 3 pages or 300 pages long. It may be a preprinted form, a memo, a letter, a manuscript, or an electronic form. The length, format, style, and organization of a business report all depend on who originates it, the subject of the report, when and why it is prepared, where it is sent, and how receptive the reader is.

Businesses need reports to provide a variety of information to internal and external users. They are especially helpful to busy managers who can’t oversee every operation themselves. The six general purposes of reports are to monitor and control operations, to help implement policies and procedures, to comply with legal and regulatory requirements, to document work performed for a client, to guide decisions on particular issues, and to obtain new business or funding.

Informational reports focus on facts and are intended mainly to educate readers, whereas analytical reports provide data analyses, interpretation, and a conclusion. Many analytical reports are designed to persuade readers to accept a decision, action, or recommendations. Many analytical reports are designed to persuade readers to accept a decision, action, or recommendations. Information in analytical reports play a supporting role rather than being the primary focus.

Typical informational reports include reports for monitoring and controlling operations, such as plans, operating reports, and personal activity reports; reports for implementing policies and procedures; such as lasting guidelines and position papers; compliance reports, such as annual reports to the SEC and income tax reports; and reports to document the progress of a project.

Three types of analytical reports are problem solving or trouble shooting reports, which are used to assist with decision making; justification or feasibility reports, which are used for asset acquisitions or operational improvements; and proposals, which are used to obtain new business or funding.

The potential advantages include cost savings, space savings, faster distribution, and easier maintenance. The disadvantages include the cost of additional hardware, software, and training; the potential for system incompatibility; and the possible threat to data security and integrity due to tampering and inadvertent corruption.

Assignment

Read and study Chapter 13 paying particular attention to Sharpening your Skills on page 455 and Keeping pace with Technology on page 463. Complete the self-study quiz to determine if you understand the concepts presented. To reinforce the concepts learned answer the Critical Thinking Questions on page 466, email your responses to your instructor.