Purposes and Objectives of Business Reports
Reports are the primary means of communication in organizations. In large-scale organizations, there is no alternative to use reports. Reports also play an important role in small-scale organizations. Some points highlighting the purposes / objectives / importance of business report are presented below:
Transmitting informant: Business report is very important for transmitting information from one person to another or from one level to another. Although a manager can personally collect required information in a small-scale enterprise, it is not possible in the context of a large-scale organization. In the latter case, the managers rely on reports for obtaining necessary information
Interpretation and explanation of event: Report provides interpretation and explanation of information As a result, readers can easily understand it.
Making decisions: A report is the basic management tool for making decisions. The job of a manager is nothing but making decisions. Reports supply necessary information to managers to solve problems.
Developing labor-management relationship: Reports also help to improve labor management relationships particularly, in large organizations. In a large organization, there is little opportunity of direct communication between top-level management and employees. In this case, report is used as a mechanism of keeping both sides informed about each other and improving their relationships.
Controlling: Controlling is the final function of management. It ensures whether the actual performance meets the standard. In order to perform the managerial function of controlling, report sent as a yardstick. It supplies necessary information to impose controlling mechanism.
Recommending actions: Reports may only supply information but also recommend neutral actions or solutions to problem. When someone is given the charge of investigating a complex problems and suggesting appropriately remedy, the investigator usually submits a report to the concerned manner.
Above discussion makes it clear that reports are the commonly used vehicles that help managers in planning, organizing, staffing, and controlling. In a nutshell, report is indispensable for carrying out the management functions. Report is the nerve of an organization that circulates information.