Importance and Necessity of Report
Importance of report has been increasing rapidly with the growth of modern businesses. In order to be successful in complex business environment, managers need to make quick and unique decisions. For this purpose, managers need information. Report presents the needed information in a systematic and artful way.
The importance of report is discussed below:
Taking effective decision: Managers need to take decisions on various issues continuously. For making decisions, mangers use reports as the sources of information.
Helping tools of managerial functions: Performance of managerial functions depends on accurate and timely information. Without necessary information, a manager cannot perform the assigned functions. For this reason information is considered as an integral input of managerial sub-system. Reports are the storehouse of necessary information and data.
Coordination among various levels of management: There are three levels of management such as strategic level, coordinative level and operative level. Report serves as an important tool for communication and reduction of administrative distance among these levels of management.
Explanation and analysis of message: Report helps in presenting facts or events with necessary explanations and analysis. As a result, the readers can understand the cause and effect relationship of facts or events easily.
Bringing dynamism in administration: Administration of an organization becomes stagnant in the absent of adequate policies and guidance. Information presented in the report helps in removing such stagnation in organization.
Settling dispute: Reports also helps, in settling complex problems and disputes in the organization. For example, any complaint against any employee is settled on the basis of investigation report.
Informing important matters: Report is used to inform important subject or events to the various internal and external parties. Therefore, the concerned parties can take necessary steps in their respective area.
Keeping permanent records: Report is an important medium to keep permanent record of various events in the organization. In this way, it helps to develop an information base in the organization.