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After studying this chapter, you should be able to:

.. Appreciate the concept and importance of reports


.. Identify different types of reports
.. Know how to write different types of reports
Structure:
.... Introduction

.... Concept and significance


Types of reports

.... Routine vs. special reports


Individual vs. committee reports

.... Report fornls


Annual report

.... Summary
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Short questions

.. Essay questions
Mini project

In the business world, report writing is a common activity. Reports have a wider coverage. They
make an account of information about routine performance, periodical appraisals and special research
investigations. They provide an information base for effective decision-making. Report writing, however,
is not as easy as it appears to be. Good reports do not just happen; they require hard work, presentation
skills and objecti ve approach.

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Busine~s ana TeClirilcal Reports ' \ • Chapter Fifteen
, .. ~ '. .'...
291

. . . . . • ~;lmlllel;~B~alll~I?:;i•·• r----------.......---:---.,....-........
The word 'report' is derived from the Latin word "repot are" which means to carry bac~. A report,
therefore, is a descrip'tion of an everitcarried back to someone who w~s' ilOtpresimton ,t'he ~cene . A
simple definition of report is:

Repolts occupy an important place in managerial communication; Di fferent types Of reports serve
different purposes. Broadly, the benefits of reporfs are:
i. A communication tool - Reports have different commlJnication functions. They provide
information to managers for understanding' and decision-making. '
2. Planning tool-RepOl'ts can provide past, present and future information. As such" they help
planners in establishing objectives and formulating future courses of action.
3. Controlling tool- Reports furnish appraisal and inspection information. Thus, they provide
basis for controlling and achieving desired, results.

Reports may range from informal half-page trip reports to formal 200 page financial forecasts:
Reports may be presented orally in front of a group or electronically on a computer;;cre~n. Some
reports appear as words on paper in the form of memos and"letters. Some are wo~dy: ?thers .are
primarily numerical data based such as tax-reports' or profit and loss statements. Some seek to d~scrib:e:
information only; others aim to analyze and make recommendations. Although, reports vary greatly in
length, content, form and formality level, they all have one COfj1mon purpose; business reports are
systematic attempts to answer questions and solve problems.
Reports in any organisation may fall into the following categories:
(i) Purpose: The various reports under this category include: information reports, 'analytical reports,
compliance reports, justification/recommendation reports, yardstick reports and proposals. A
brief explanation of the different reports is given here.
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Information reports. Present a record of previous events, or it may peri~diCally cover past and
new information to convey ideas and data, to appraise progress .and developments or to understand the
situations.
A trip report describing an employee's visit to a trade show, for example, siinply'presents information.
Other reports that present information without analysis involve routine operations . compli ~ nce with
regulations and company policies and procedures. . ... . .
Analytical reports. Reports that provide d:lla. analyses, and coriclusions are analytical. If requested,
writers also supply recommendations. Analytical reports mayiritend to persuade readers to act to or
change their heliefs . .

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292 Part Three. Z Business Communication
Compliance reports. Prompted by the government. compliance reports answer such questions as
"How much profit did your organization earn and what taxes do you owe?" These reports comply with
laws and regulations that protect employees, investors and customers.
Justification! recommendation reports. When managers and employees mustjustify or recommend
something (such as purchases, changes in operations, new programs, or personnel), they write justification
or recommendation reports. These reports analyze alternatives, interpret findings and make
recommendations. They become important tools for managers in solving problems and making decisions.
Yardstick reports. When a problem has two or more solutions, a helpful way to evaluate the
alternatives is to establish consistent criteria or yardsticks by which to measure the alternatives. For
instance, a company is evaluating three alternative projects to select a suitable one. A yardstick report
assesses the alternatives by applying the same criteria to each, such as cost, return, risk and payback
period. Each alternative is measured against the criteria to find the best option.
Feasibility reports. Feasibility reports use analysis to predict whether projects or alternatives are
practical or advisable. Feasibility reports examine the benefits and problems connected with the project,
as well as its costs and schedule for implementation. The emphasis is on whether to proceed with the
venture.
Research reports. They make scientific inquiry of events, attitudes and behaviours and supply
specialized information for managerial decision making. Business organizations sometimes commission
research ,llIdies that examine problems thoroughly and scientifically. Researchers analyze a problem,
suggesl \\a),,, I" 'I live it (called hypotheses), collect data about each possible solution, analyze that data,
draw conclusions ;II 1. ! if requested, make recommendations.
Proposals. They .11L' two types. (i) Business plan with a persuasive report that seeks to convince
investors to fund a new l'\ Illlpany. (ii) Research proposal to persuade client company or funding agency
to a~ept and grant funds ror undertaking the research project
Press reports. Companies use public relations to influence the general public through the mass ·
media, c.g., news paper, television, radio, exhibitions and sponserships.
(ii) Frequency: Periodi,:al (routine) or special (occasional)/situational.
A periodic report may be daily, weekly, monthly, quarterly, half yearly or annually. For example,
progress report or performance report is a routine one. It is a scheduled one. A special report is made
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as required by an occasion. For example, a project report or research report becomes necessary when
we set up a new plant or develop a new product.
Unlike periodic reports, situational reports describe non-recurring activities.This broad category
includes trip, conference and seminar reports, as well as progress reports for unusual activities, such as
sponsoring a mountain bike riding competition.

(iii) Media: Oral or written.

Or~l report is a face-to-face communication about the subject. Though it saves time of the reporter,
the listener may find it difficult to listen word by word. A written report provides flexibility in reading-
one can read now or latter, one or more times and skip or cover all the parts. Oral presentation can be
supported by visual aids. Written report provides evidence and it can be referred at any time. Oral

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Business and Technical Reports S • Chapter Fifteen 293
reports are short-lived. When recorded, they can be referred to again and again but they cannot be taken
as an evidence.

(iv) Style: Formal, Semiformal and Informal.


Formal reports are usually long, elaborate and impersonal. They are bounded. The readership is
large. Formal reports are classified as: statutory and non-statutory reports. Annual report is a statutory
report and it makes business legal. Other reports like progress report imd market research reports are
non-statutory. They are prepared to make decisions and operations effective. Formal reports generally
are bound, expensive to produce and attractive to view. They sometimes contain illustrations or
photographs. Formal reports may not be read entirely as a result of their length and formality. It is hence
usually supported by oral briefing.
Semi-formal reports are shorter and less impersonal. They are sometimes typed and stapled together
or bound. The readership is smaller. It is organized like formal report and employs major headings like
those of formal report, but overall it carries a more informal tone and look. This report style is more
commonly used in daily business settings.
Illfonnal reports are the most frequently used ones. It can extend from one page letter or memo to
several pages that are produced inexpensively for distribution. They cover minor issues. Examples are:
status reports, inquires, training analysis, etc. The writing style is informal and carriers more 'of a
conversational tone. They are read by people in the organization .
Table 15.1 compares the two types of styles-formal and informal. The informal one has the
structure of the formal report and tone of the informal one.
Table 15.1: Formal vs. Informal Reports

Form Memo or letter or e-mail Letter and text


Length Short Long
Organization Less structured. Parts Structured. Parts
may vary are defined.
Writing style Natural, conversational, Impersonal, factual ,
breezy tone passive, serious tone.
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Cost Inexpensive Expensive


Writing mode Hand written or typed. Typed or printed
Appearance Casual , stapled Attractive, bound

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294 Part Three. Z Business Communication

We will now discuss the nature and purpose routine and special reports.

~ Routine Reports IBusiness Reports

These reports are related to business operations. They are periodical and help managers in their
planning, leading and controlling functions . Some of the routine reports are:

• Activity report

• Status /Progress report

• Inspection report

• Performance report

• Appraisal report

• Inventory report
Activity reports - are those which sum up a trip, a conference, a meeting, or any other special
activity. Activity report includes the following:
• Name of the event/activity, place and date
• Purpose of the event/activity
• Contacts established, information obtained or outcomes achieved

• Conclusions.
Progress reports - they give information about stage of completion of a task or programme.
The progress made by the organization/department /work group/individual during a particular period is
described. It states work done, work in progress and work yet to be done. It also highlights problems,
if any. The progress is generally given in chronological order.
E.g., production schedule or a project in a given period. The major elements in this type of report
are:

• Background ·
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• Activities and results


• Costs and schedules

• Conclusion.
Inspection reports provide details c:>f conformance of results to performance standards. They
check whether everything is O.K as per the conditions or standards and report deviations, if any. E.g.,
Quality of materials. Quality of production etc. The major elements in this type of report are:

• Background
• Specifications prescribed
• Actual measures

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Business and Technical Reports
+ Variances
s: . Chapter Fifteen 295

+ Conclusions.
Performance reports - They inform the details of work done and results achieved during a
particular period by individuals, groups or departments e.g., Sales reports, production reports, etc. The
structure may consist of the following elements:
+ Background
+ Performance targets
+ Actual performance measures
+ Schedules and budgets.
Appraisal reports are similar to inspection reports. They compare the actual against laid out
norms or standards and report the variances. Performance appraisal of managers is an example. (See
Exhibit 15.1).
Inventory reports. make a list of items in the stock periodically. They help in preserving items
and taking purchase decisions.
Special reportsJTechnicai reports are made to meet a special purpose arising in course of a
business. They can be classified into three types: Research reports, Project reports and Problem solving
reports by indivIduals or committees. They can be made either by company personnel or consultants.
+ Research reports are based on scientific investigation in a chosen area of knowledge. Th~y are
common in academic parlance. Research projects and, research works of M. Phil and Ph. D. scholars
are presented in the form of research reports. In the business world, Marketing Research reports and
Research & Development reports are examples of research reports.
+ Projects are time bound activities with a specific purpose. New product introduction, building
a canteen for workers, establishing a new branch etc., are examples of new projects.
+ Problem solving report is meant for the sponsor who has sought the advice or counsel. For
example, a report on improving welfare of employees provides measures to be taken by the company
management. Therefore, the focus in these reports is on the terms of reference made to the committee
or the consultant. Its acceptance depends on the in-depth probe made and validity of recommendations
given.
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The differences between the research and. committee reports are shown Table 15.2.

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2.96 Part Threu Z Business Communication
Table 15.2: Comparison of Research and Committee Reports

I Basis Research Committee I


Focus Objectives and or hypotheses Terms of reference
Purpose To inform To inform and advise
Production Mimeographed Typed/mimeographed/printed
Pages 20 or more 20 or more
Readership Mass Sponsor/Specific authority
Available with EducationaIlResearch sponsor Sponsor/Specific authority.

IINDIVIDUAL vs. COMMITTEE REPORTS ••. . . . . . . - - - - - - - - - - -

Individual reports are mostly routine business reports. They are related to the work of the individuals.
As a part of their functional responsibility, the individuals compile data about their own performance (a
sales representative prepares sales call report daily to send it to his sales supervisor) or the performance
of his group or unit (a production foreman makes a weekly production report of his unit production
performance). Occasionally, individuals may also be entrusted with the job of making special reports.
The Managing Director may ask his Marketing Director to provide him a report on marketing strategies
of their own company vis-a-vis competitors.
The individual reports are written mostly in a prescribed form: All that the report writer has to do is to:
+ Put a tick mark against the items, and
+ Write hriefly remarks in the blank space provided.
Exhibit-IS.I shows a specimen proforma of performance appraisal report.
Exhibit 15.1 Annual Appraisal Form of Managers
HINDUSTAN JETS LTD.
22, Rajaji Marg. -
Secunderaba4
"
Name:
. Designation.: . .
. .

Date of Appointment: Department:


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Place a tick mark in the parentheses that reflect your rating.


Aspect Excellent Good Average Below average
Appearance
Character
D D D D D
Motivation 0 0 0 D 0
Relationships 0 0 0 0 0
Communication 0 -0 0 0 0
Performance D 0 0 0 0
0 D D 0 0

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Business and Technical Reports S • Chapter Fifteen 297
Committee repOlts are those prepared by more than one individual.Generally, committees are forIlled
to compile a technical /reseaA.:h report which is complex in compilation and drafting as detailed below:
• The issue is complex - a multi-faceted one
E.g., : Changes in government policy and competition
• The issue is critical - having serious impact on the functioning of organisation
E.g., : Computerization of departments
• The issue is sensitive and affects many employees
E.g., : Change in the working hours of the factory.
Evidently, when the subject is too important or too expansive to be entrusted to one person,
committees are entrusted to undertake the task.
The following steps are necessary to make the committees work constructively:
(i) Formation of committee
Care is to betaken in decisions regarding the size and choice of the members. It is important to
choose the appropriate person to be the chairman of the committee.
(ii) Specify subject and its focus
Specify the phenomena or issues to be covered. To make it much more clear, state the terms of
reference or objectives of the study.
(iii) Provide facility for investigation
Allow them to evolve data collection and analysis procedures and tools. Give them free hand to
gather data and analyze it. Provide them necessary facilities.
(iv) Encourage deliberations
Make sure that the committee has time and funds required to meeting and discussing the issues
and findings.
(v) Set up clear goals
State the tasks and goals in a clear cut manner. State whether they are expected to investigate
and inform or provide recommendations also.
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The chairman of the committee has to play his role effectively by giving consideration to the
following:
• Careful and complete investigation of the issues.
• Conscious deliberation of the subject matter.
• Judicious apd balanced approach in making inferences and recommendations.
Sometimes, sub-committees are also formed to help the committee. For instance, a report is
required on 'Industrial Unrest' in the company for which the following sub-committees are formed.

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.Z .Business Communication .
(i) 'Welfare'
. . .
sub-coml1)ittee
.. .'. .
: '
to study
.
adequacy of welfare measures.
'.

; Oi) 'Relations' sulhcommittee to investigate reasons for lack of harmony.


(iii) 'Working conditions & environment' subcommittee to examine the work related issues. '
A comparison of individual and committee reports is given in Table 15.3.
Table 15.3: Individual vs. Committee Reports

Persons involved One More than one


Function/Department One More than one
Subject Complex
Occasion Routine Special
Basis '. Activity Study and deliberation .
Focus Job responsibility Terms of re(erence
& goals or objectives &
hypotheses
Structure Designed format mostly
structured. Uns t ructu r~ d

Style Semi-informal Formal


Routine regular & scheduled Special. As and when .n.eded

Media tool Letter or memo Letter.and ~ext. ..

?:
: Format of Reports

The format of a report is governed by its length, topic, audience, and purpose. The following four
formats are in use. . .' .... ,

+ MenlO fortn~t' F6t short informal rep6rtsthat stay within the organizations,. memo format is
appropriate. Memo reports begin with Date, To, From, and Subject. Like letter reports, Memo reports
differ from regular memos in length, use of headings and deliberate organization . .
.• L-etterfonnat. This format is used'for short (say, ten or fewer pages) informal reports addressed ·"
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outside an organization . Prepared on office stationery, a letter report contains a date, inside. address,
salutation and complimentary close. Letter reports usually are longer and show more careful organization
than most letters. Report writers organize the facts section into logical divisions identified by consistent
headings. They also include headings .
• Manuscript format (Letter - cU:m~text form). For longer, more formal reports use
manuscript format. These reports are usually printed on plain paper instead of letterhead stationery or
memo forms .
.• Print~d forms. Prep~~d.forms
are often used for repetitive data, such as monthlysalell.reports,
perf9r~ance appraisals, merchandise inventories and personnel and financial reports. Standardizeq
headi~gs on these forins save ti~e for the ~riter. .

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Business and Technical Reports • Chapter Fifteen 299
~ Memo Form

This is used for most short (ten or fewer pages) informal reports within an organization. One can
compose headings according to his or her preferences. The essential parts of memo are:
1. Name and title of the sender and recipient
2. Reference and data
3. Complimentary close
4. Signature.
Tips for memo reports
.. Use an informal, conversational style.
.. For direct analytical reports, put recommendations first.
.. For indirect analytical reports, put recommendations last.
.. Leave side margins of 1 to I';" inches
The structure that can be adopted for report in a memo form is given in Exhibit 15.2. Exhibit 15.2
shows a specimen of memo report.
Exhibit 15.2 Structure and Hints for MemoiLettt;.r Report
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300 Part Three. Z Business Communication
h.\hibit 15.3 Example of Memorandum Report

~ Letter Form
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In the case of a letter, essentials parts of the letter are to be provided -


1. Company name and address
2. Date subject and reference
3. Inside address
4. Attention line
5. Salutation

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Business and Technical Reports • Chapter Fifteen 301

6. Subject
7 . Body
8. Complimentary close
9. Signature
10. Identification marks .
11. Enclosure.
Tips for letter reports
... Single space the body
... Double space between paragraphs
... Leave two blank lines above each side heading
... Create side margins of 1 to 11;" inches.
... Add a second page heading. If necessary, consisting of the addressee's name, the date, and the
page number.
Exhibit 15.4 shows a specimen of letter report.
Exhibit 15.4 Example of Letter Report
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302 Part Three. Business Communication

Letter-cum text form: Use manuscript format for long, complex, or formal reports and proposals.
A covering memo or letter will be attached to it.

An example of covering letter and memo are given here. A manager can use either of the forms.
The text of the report, in general comprises the following elements:
.. Terms of reference
.. Methodology
.. Findings
.. Recommendations.
Tips for manuscript reports
.. Print the report on plain paper
.. Allow side and bottom margins of 1 to ItA inches
.. Display primary and secondary headings appropriately
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.. Use single or double spacing depending on your organization's preferences


.. Document sources with appropriate citations.
(a) Letter of transmittal
Letter of transmittal can be a letter (Exhibit 15.5) or a memo (Exhibit 15.6).

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eusiness and Technical Reports • Chapter Fifteen 303
Exhibit 15.5 Letter of Transmittal

Exhibit 15.6 Memo for Transmittal


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~ Terms of Reference

The members of the Sub-committee were appointed in accordance with the instructions given by
Marketing Director on 10th January, 2008 to study the causes of the declining sales of the cosmetics
produced by the company and to make recommendations for the promotion of sales.

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304 Part Three. Z Business Communication
1. That the Sub-committee consisted of Shri C.S. Srikrishna, Marketing Manager and
Ms I. K. Madhavi, Product Manager.

~ Methodolgy

1. The Sub-committee scrutinized the sales reports for different quarters of 2007 and compared
them with the sales reports for the previous two years.
2. The Sub-committee made a careful study of the cosmetics market in order to ascertain whether
there had been a general slump in the market or the decline had been pecuiiar to our company
alone.
3. The sub-committee circulated a questionnaire among nearly one thousand actual users of the
Company's products to ascertain their view.

~ Findings

1. The Sub-committee found that there had been a steep decline in the Company's sales during the
year 2007. This trend roughly started during November, 2005 continues till today. It is evident
that in a brief span of two years, our sales have come down to nearly 50 per cent.
2. The survey revealed that the consumers are not satisfied ~ith the quality of our products.Their
awareness of its benefits is low.
3. During the last two years, Joe Cosmetics and Beauty Aids, two renowned companies with
foreign tie-ups and the most modern technology at their command, have entered the market in
a big way.

~ Recommendations
1. We should take care of the quality of our products. For this, we may have to appoint better
qualified chemists and subject our cosmetics to strict quality control.
2. We should give a new look to our products and build a massive publicity campaign to boost
their sales.
3. We should also undertake door-to-door publicity and sales and offer attractive gifts and bonus
coupons.
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4. We should make a review of the sales promotion schemes every three months during the next
year.
A copy of the questionnaire circulated among the customers is enclosed for your reference.
C.Srikrishna
Marketing Manager
I.K. Madhavi
Product Manager
New Delhi
February 23, 2008

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• Chapter Fifteen 305

Annual reports, besides being mandatory, are also relevant as information sharing and image building
documents. Annual reports are regularly brought out by business organizations to detail the progress
achieved during the reporting period. The target audience includes various stakeholders like employees,
clients, patrons and the public in genera\. It helps share information about the progress achieved ,
developments of significance and performance highlights.
In accordance with the company law, every registered company is required to publish its balance
sheet and profit and loss account within a prescribed period. They are generally published as part of the
annual report in accordance with accounting principles and standards. The annual reports additionally
contain narrative statements, comparative analyses, charts and pictures to help understand the financial
results .
A typical annual report of a large organization would cover the following details:

• Names and addresses of Board of Directors

• Top management team


• Names of auditors
• Progress at a glance
• Performance highlights and working results
• Directors report
• Accounting policies adopted

• Balance sheet
• Profit and loss account
• Schedules to be annexed to the balance sheet
• Notes on. account, wherever necessary
• Auditors report
• Commentary on the financial statements
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• Ratios and statements


• Remuneration paid to the top management
• Changes in the Board
+ Acknowledgement.
There could be some additions or deletions to this list depending upon the nature ofthe organizations
and the regulatory requirements. For e~ample, chairman's statement or message is often included in
some annual reports. In fact, some chiarman 's statements, like that of Hindustan Unilever, are so erudite,
and insightful in terms of providing economic and industry status reports and even management thoughts
and HRD dimensions.

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306 PartThree. Z Business Communication
~ Tips to Make Annual Report

The following are some relevant tips which when followed, would help make the annual report
elegant and appealing:
• Clearly bring out the progress/strengths relevant to the reporting year. Avoid repetition of the
previous year's sentences and paragraphs.
• Take a re-look at the headings and sub-headings and make appropriate changes.
• Good annual reports are distinctive in terms of language and expression used. One has to learn
the skill of narrating even routine developments in a forceful manner.
• Avoid using long sentence and combining several developments. Make the sentences brief and
specific.
• Ensure proper grouping of various sub-heads under each main heading like business growth,
profitability, HRD, international operations, subsidiaries, etc.
• Check the correctness of all figures, amounts and dates. If the figures are to be repeated under
different columns, it should be ensured that they all agree with each other and that there are no
inconsistencies.
• While reporting of relevant figures and ratios is inevitable for any such report, too many figures,
repetitive ratios and percentages running into several decimals tend to hinder readability and
comprehension. Wherever appropriate, figures should be rounded off.
• In quoting figures relating to economic environment, industry related progress and market
development, authenticity of the figures should be ensured. Further, the data quoted should be
the most up-to-date. Past data are best avoided, unless they are absolutely relevant.

In the business world, report writing is a common activity. A report is the compilation of information
that has been sought out, collected, sifted, organized and written to convey a special message. Reports
form basis for communication, planning and controlling. RepOlts are classified in different ways. Based
on purpose there are: information, analytical, compliance, justification, yardstick, feasibility, research,
Copyright © 2008. Global Media. All rights reserved.

proposals and press reports. 'Based on frequency reports are categorized into: periodical (routine) and
special reports. Based on media we find oral and written repOlts . Based on style there are formal, semi-
formal and informal reports. Based on who writes, reports are classified as individual and committee
reports.
The format of a report is governed by its length, topic, audience and purpose. The following. four
forma ts are in use-memo, letter, manuscript and print.

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Business and Technical Reports S • Chapter Fifteen 307
Short Questions

I. Distinguish between formal and informal reports.

2. Distinguish between individual and committee reports.

3. Draw CQmpArison hetween routine and special reports.

Essay Questions
I. Explain the concept. significance and types of reports.

2. What are the different forms of report prescntation') Give specimens.

3. As a company secretary write a letter of report to the General Manager with reference his instructions dated 2S'"
August 2002. to investigate reasons for indiscipline and negligence of duty in Ahmedabad branch office. Usc
your own imagination along with these hints. (Authoritative boss - poor hygiene - hostile union leader - office
equipment under repair).

4. Write a memo report of investigation into pilferage in the stores department suggesting remedial measures.
Assume you arc personnel manager. Do it with reference the letter of General Manager No. 232/AB/S dated 1-
11-2002., Hint: Stores clerk makes wrong entries in register - takes have material canceled in hand bag - nexus
with security staff .

5. Write an elaborate report with a letter of transmittal on the declining sales of Aqua Mineral water. You are
chairman of a subcommittee appointed by the Board of Directors, consisting 3 memhers including you.

Hints: More competition - .poor di.stribution of own product -less discounts to retailers - poor packaging.

6. Write a press release in 100 words. Present it to others. Event: A fresher 's day funClion was conducted in your
college. Your principal, Mr. Rao. presided over the meeting. (Imagine his speech). Mr. Ajim Premji, Chairman
of Wi pro companies was your chief guest (imagine his speech.) There were cultural events. (imagine them).Write
a press release about the function to be sent to The Hindu paper.

Mini Project
Visit two local organizations (one a business tirm and another a service organization like school or college) and inquire
about the different type of reports they make use of. Collect information on purpose, frequency, writing style, proformas,
Clnd problems in writing them and using them.
Copyright © 2008. Global Media. All rights reserved.

* * *

Krlshnamacharyulu, C., & Ramakrishnan, L. (2008). Business communication. Global Media.


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