Hello everyone, in the previous topic we were talking about Coordination in Management. Today we are going to talk about Reporting in management, its characteristics, principles, types and going to discuss some points on how to write a report.

WHAT IS REPORTING?

INTRODUCTION

Reporting in Management is a source of business intelligence that helps business leaders to make more accurate and data-driven decisions. But, these reports are only as useful as the work that goes into preparing and presenting them. In this blog post, we’re going to give a brief about Reporting in management.

Management reporting refers to the formal system whereby relevant required information is furnished to management by means of reports constantly. Thus ‘report’ is the essence of any management reporting system. Reports may be oral or written and also routine or special.

The reporting system in management involves all levels of management. The reports originate from junior levels of management and go up to top-level management which consists of the Board of Directors.

The sectional in charge of every section regularly report the progress of their section to their superior. Functional managers have Deputy Managers who control departmental sections. The combined reports of different sections reach the departmental manager called functional managers.

Different functional managers submit the progress of their departments to the managing director. The brief summaries of departmental reports are submitted to the Board of Directors for reviewing policies and making strategies for the future.

In other words, we can say that a report is a clearly structured document in which the reporter identifies and examines issues, events, or findings of an investigation.

 A report is a written presentation of factual information based on an investigation or research. Reports form the basis for solving problems or making decisions in the subjects of business.

CHARACTERISTIC OF REPORTING

An ideal report must have the following characteristics-

1. An ideal report should be clear, concise, accurate, and well organized with clear section headings.

2. It has to be easy for the audience to understand.

3. Presentation plays an important role in successful report writing. Formatting, revising and proofreading are important processes for good report writing.

 4. All reports should have an executive summary that presents the essential elements of the report from the introduction through to the recommendations and outcomes.

 5. Reports should be visually appealing and easy to read. Diagrams, figures, charts, tables, and graphs can all add interest to a report.

PRINCIPLES OF GOOD REPORTING

A good reporting system is very helpful to the management in planning and controlling. Every level of management needs information relating to its activities center so that effective planning may be undertaken and current activities may be controlled and necessary corrective action may also be taken in time if it’s needed.

Some general principles are followed for making the reporting system effective. These principles are given below-

1.  Proper Flow of Information

A good reporting system should have a proper flow of information. The information should flow from the proper place to the right levels of management. The information should be sent in the right form and at the proper time so that it helps in planning and coordination.

The frequency of reports will depend upon the nature of the report, the types of data required for preparing the information, and the cost involved in preparing such reports. The flow of reports should be such that it does not cause delays in taking decisions. The reports should flow at regular intervals so that international needs of different managerial levels are met at a proper time.

Caution Flow of information is a continuous activity and affects all levels of the organization. The information may flow upward, downward, or sideways within an organization. Orders, instructions, plans, etc. may flow from top to bottom. Reports grievances, suggestions, etc. may flow from bottom to top.

Notifications, letters, settlements, complaints may flow from outside. Information also flows sideways, from one manager to another at the same level through meetings discussions, etc.

2. Proper Timing

Reports are used as a controlling device they should be presented at the earliest or immediately after the happenings of an event. The time required for the preparation of reports should be reduced to the minimum; for routine reports, the period should be known and strictly adhered to. It will be a waste of time and effort to prepare information that is too late to be of any use. The absence of information when needed will either mean wrong decisions or ferment of decisions.

3. Accurate Information

The information should be as accurate as possible. However, the degree of accuracy may differ in various reports. Sometimes, part information may be supplied as a guide for future policymaking, so the degree of accuracy may be less. The supply of exact figures may involve a problem of understanding. Approximate figures are more understandable.

Accuracy should also neither involve an excessive cost of preparation nor it should be achieved at the sacrifice of promptness of presentation. It will be better to have approximate figures at a proper time than delayed information prepared accurately.

 4. Basis of Comparison

The information supplied through reports will be more useful when it is supplied in comparison with past figures, standards set, or objectives. The decision-making authority will be able to make use of comparative figures while making a decision. Corrective measures can also be initiated to improve upon past performance.

5. Reports should be clear and Simple

The information shown in the report should be presented in a clear manner by avoiding useless data. Only relevant important information should become part of a report. If supporting information cannot be avoided, then it should be given in the appendix or a separate chart should be attached to it.

The method of presenting information should be such that it catches the eyes and enables the reader to form an opinion about the information. The graphic presentation of information will enable the reader to find out the trends and also to determine deviations more quickly. The arrangement of the presentation should be brief, clear, and complete. Simplicity is a good guide for reports preparation.

 6. Cost

The benefits derived from reporting system must be commensurate with the cost involved in it. Though it is not possible to assess the benefit of this system in monetary terms, there should be an endeavor to make the system as economic as possible.

 7. Evaluation of Responsibility

The reporting system should enable the evaluation of managerial responsibility. The targets are fixed for various functional departmental heads. The record of actual performance is monitored along with the standards so as to enable management to assess the performance of different individuals. So, management reporting should be devised in a way that helps in evaluating the work assigned to various persons.

TYPES OF REPORTING

The report can vary differently in its length, type, and purpose. Some types of reports are discussed below-

1. Scheduled reports

These types of reports are generated regularly with respect to time. They are in the nature of the daily report, weekly report, or monthly report. They contain information of recent origin and help the manager to understand and analyze the information from the context. These reports are the first line of reports which normally show the first signs of problems or opportunities that can be understood through the data.

2. On-demand reports

These types of reports are unscheduled in nature and are created to the need of the managers. They help in analyzing a particular issue in a greater degree of granularity. These reports are generally the result of a reaction to any event.

3. Exception reports

In management, exceptions warrant gets greater attention than any normal event. Exception reports are special reports that indicate to the manager that some control needs to be exercised to bring an issue under control.

For example, if in a company the average absenteeism is two percent and in the last week, the average absenteeism is twenty percent then an exception report is generated to make the concerned manager aware that something is amiss and needs attention.

4. Predictive reports

These are special reports that give the manager a sneak preview of the future. These reports give a scenario of the future and are very useful in planning.

5. Summary reports

These are general reports that aggregate data and provide summarized information to the manager so that they may get a macro view of an issue.

6. Regulatory and statutory report

These are reports created under the obligations to follow rules and statutes. They are primarily meant for external consumption for the information needs of regulatory bodies. Thus, we see that the reports tell the manager the issue behind a problem and give them all the information they need to make decisions.

However, information can be of various degrees of value to a manager. A set of information that they already know is of little value to them, incorrect information has a negative value. So we must understand the meaning of valuable information.

SOME POINTS TO BE TAKEN INTO CONSIDERATION FOR A REPORT

A good report is one that does this task efficiently and effectively. As such it must be prepared to keep the following precautions in view-

1. While determining the length of the report, one should keep in view the fact that it should be long enough to cover the subject but short enough to maintain interest.

2. A report should not be dull; it should catch the interest of readers.

3. The objective of the study, the nature of the problem, the methods employed, and the analysis techniques adopted must all be clearly stated at the beginning of the report in the form of an introduction.

4. Readers are often interested in acquiring a quick knowledge of the main findings and as such the report must provide ready availability of the findings. For this purpose, charts, graphs, and statistical tables may be used for the various results in the main report in addition to the summary of important findings.

5. The layout of the report should be well thought out and must be appropriate and in accordance with the objective of the research problem.

6. A report should show originality and should necessarily be an attempt to solve some intellectual problem. It must contribute to the solution of a problem and must add to the store of knowledge.

7. Appendices should be enlisted in respect of all the technical data in the report.

8. A bibliography of sources consulted is a must for a good report and must necessarily be given.

so, that is all for today guys see you in our next blog. If you like our article please doesn’t forget to share with others & follow our instagram page for your daily dose of Motivation.

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Grooming Urban.

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