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a) and b) Classification of business report

Aka for this question got four classification which is functional classification, Classification on Subject Matter, Directional Classification and Format Classification. Each classification got 3 reports. 1.2.1 The Functional Classification Possibly the most popular classification in use is the style that is based on the function of reports. On this functional basis, all business reports, whether short or long, can be categorized into three kinds---informational, interpretative and analytical, which contribute to the decision process. Their relationship may be shown in the following figure (i)Informational Reports In the decision-making pyramid, the informational report, as it is called, merely presents facts. Evaluated and analyzed, facts are presented to the reader and keep him informed and as a result of being informed, the reader is better able to perform his work. No attempt is made to analyze, interpret, draw conclusions, or make recommendations. A typical example is the progress report, which states developments concerning work on a specific project, problem or activity.(Iacone,1985: 6) Other informational reports include readership surveys, sales, policy statements and credit reports. Although the informational report is the lowest in status, in some respects it is the most difficult to handle effectively because the researcher and writer must distinguish between raw, unevaluated information and data evaluated for a specific purpose. The difference between knowledge which represents general-use data and knowledge which is significant to the immediate specific situation must be spotted. (ii)Interpretative Reports The second level of the decision-making pyramid is concerned with reports which not only inform but interpret, which examine and analyze data. As with interpretative reports, however, no attempt is made to reach a conclusion or make a recommendation. Although the facts presented in the interpretative report are examined and implications are drawn, any possible conclusion or recommendation to be derived from the information must be made by the reader. Common interpretative reports are those on unusual sales slumps or upsurges. (iii)Analytical Reports The third level of the decision-making pyramid concerns the entire nature of research and report writing. It breaks the whole into parts and shows how they relate to each other. An analytical report 1) formulates an issue or identities a problem; 2) analyzes, synthesizes, and interprets pertinent data; and 3) presents conclusions and recommendations for appropriate action. However, depending on the wishes of the person assigning the report, an analytical report may not contain recommendations. Examples of analytical reports are marketing surveys, product analyses, employee attitude surveys, improvement reports, and justification reports.

1.2.2 The Classification on Subject Matter The simplest of all classifications is the one by the subject matter or content of a report. Undoubtedly, all reports concern some subjects. On the basis of minute differences in subject and content, reports can be categorized into various types. This classification enables the writer to focus more clearly on content and on the specific issues to be addressed. Examples include accounting, financial, sales, personnel, marketing, production, insurance, etc. Four widely used types of reports are explained as follows: (i)Accounting and Financial Reports One of the functions of an accountant is to serve management through the reporting process. Management and investors need to know how are we doing? and periodic financial statements provide an answer. In the past, accountants were satisfied with accumulating and reporting historical data; however, in todays complex business world, this information has little applicability to decision making. Now there is an emphasis on integrating non-financial data into an organizations record-keeping and reporting systems. (ii)Sales Reports Salesmen, in their daily routine, accumulate a great deal of information about what is happening in the market place. Unless they communicate this to managers, a company may not gauge accurately the progress of business and competition. Thus sales reports can convey several types of relevant information for managers---status of the companys accounts, sales performance, complaints, current trends, and new product ideas. On the basis of these inputs, managers can then make decisions about future production, advertising, and marketing. (iii)Personnel Reports An important time to record data accurately, objectively, uniformly, and completely is when personnel reports are prepared for management. Since the future of an applicant or employee may be at stake, personnel reports especially should avoid human error. For example, on the basis of reports of interviews, 1) employers can decide whether to employ this applicant, 2) counselors can give the correct advice to an employee, or 3) supervisors can improve a subordinates job performance. Obtaining, recording, and communicating data are critical steps in personnel reports. 1.2.3 The Directional Classification Communication is usually presented as a flow of information in upward, downward, or horizontal directions. (Lewis and Baker, 1978: 12) These directional designations are widely accepted, although there is some justification for believing that communication seldom follows these patterns. Actually, it is more radial in nature, cutting across the managerial levels of authority, flowing both within (internal) and without ( external) the organization. (i)Vertical Reports Vertical reports occur between superiors and subordinates. The subordinate sends a report upward to a superior, containing either requested or nonsolicited information. The primary purpose is to furnish managers with useful information (feedback) for making intelligent

decisions. Specific types of information relayed upward might include accomplishments, problems, plans, attitudes, or feelings. The manager who encourages upward communication usually improves the morale and attitude of employees. In turn, a manager also sends reports downward to a subordinate. Usually this flow of information is the giving of instruction for carrying out policies and procedures. Typically the most-used channel in organizations, downward communication also may be the most misused because of its one-way nature. Two basic types of vertical reports set the tempo of day-to-day operations and keep an administrative finger on the pulse of the organization: 1. Reports designed to standardize performance tell people where, when, and how; they bring a degree of consistency to organizational performance by providing a foundation of procedures or methods. 2. Reports designed to control performance primarily flow up the line

of communication in a hierarchy; they allow the receiver to make a decision either to accept performance or to take corrective action.

(ii)Horizontal Reports Horizontal reports flow between levels of equal authority; they provide colleagues with information needed to carry out assignments and make intelligent decisions. Although horizontal communication probably is the strongest of all flows in an organization, it may not be satisfactory. People on the same level, who work together daily, usually understand one another; yet people on the same level seldom listen to instructions (commands) from their peers. A better use of horizontal communication is to coordinate performance. (iii) Internal and External Reports Internal and external reports are both concerned with the operational and administrative details of an organization. Internal reports move vertically between managers and subordinates or horizontally between levels of equal authority. They are written by and for persons in the same organization. External reports are prepared for readers outside the enterprise. A typical function of an external report is selling the company and its products or informing a specified group about the company and its products. These reports are intended principally for stockholders, customers, government agencies, or the general public.

1.2.4 The Format Classification Classifications according to format are principally concerned with formal/informal or long/short designations. These distinctions have little to do with content but are more concerned with method of presentation. The choice of an informal, short or a formal, long report depends on how the report is to be used.

(i)Formal Versus Informal Reports Precise distinguishing characteristics between formal and informal are at times difficult. Informal denotes a casual, easy-going, offhand style of writing. Formal denotes the development of a report according to certain prescribed rules. The form is often predetermined and carries the connotation of ritual, stiffness, and sometimes stuffiness. Variables which will influence the choice are the complexity of the problem being researched and the status, needs and temperament of the reader. The report should be constructed so it does not convey an attitude contrary to the purpose. (ii)Short Versus Long Reports The short/long decision is similar to the formal/informal one. Obviously, a distinguishing criterion is length; however, the overriding principle should be providing the information the reader is seeking. The short report ranges from extreme brevity to moderate length (one-half to ten pages). As a general rule the short report deals with only one purpose---fact finding or inquiry, technical or non-technical information, or recommendations. Similarly, it follows one of two presentation forms: for example, 1) introduction, discussion of details, findings, conclusions, and recommendations or 2) introduction, conclusions and recommendations, purpose, methodology, and findings. The writers thought process may logically follow the first form (inductive) or the latter form(deductive). The two most common models of short reports are the memorandum report and the letter report. The long report is a detailed account of investigation and research; it is formal and makes maximum use of facts and figures. Objectives include persuasion, information, comparison, analysis, or argument. Whatever its purpose, the long report presents in a prescribed form an analysis of a recommended solution to a problem. Most problems dealt with are complex and important; they must be carefully, concisely, and accurately analyzed to help managers make sound decisions. Long, formal reports can aid managerial decision making in at least four ways: First, they protect a manager from half-developed ideas, voluminous memoranda, and half-ready oral presentations. Second, long reports supply the manager with answers, not questions. Third, they permit the manager to indicate approval or disapproval of worker action. Fourth, they serve as an effective means of communication between departments, companies, or various groups of concerned people. To sum up, the above classifications are merely basic ones. Virtually, in addition to them, there are quite a few other terms on which reports may be classified. These criteria are not mutually exclusive; an individual report may be of several types according to different classifying terms.