According to Murphy and Peck a business report is an impartial, objective., planned presentation of facts to one or more persons for a specific, significant business purpose.
Reports Travel upwards to supervisors and management policy-makers, downward and horizontally to those who carry out the work and policies, and outward (outside the firm) to stockholders, customers, the general public and government officials. A report may be written or oral, but most significant reports are written. The report facts may be pertained to events, conditions, qualities, progress, results, investigations, or interpretations. They may help the receiver(s) understand a significant business situation, carry out operational or technical assignments, and / or plan procedures, solve problems and make executive decisions.
A good business report must satisfy the following criteria:
a. Utility b. Persuasiveness c. Reliability d. Readability
A business report’s utility, persuasiveness, reliability and readability mainly depend on the application of the communication principles. Called “The Seven C’s” they are: (1) Completeness, (2) Conciseness, (3) Consideration, (4) Concreteness, (5) Clarity, (6) Courtesy, and (7) Correctness.
Functions of Business Report:
A business report is very much useful for the management and also for the others. Its importance is because of the functions it performs. A business report:
Provides Facts pertaining to events, conditions, qualities, progress, results investigations or interpretations.
Measures Progress of employees, departments, and companies.
Points Causes of problems e.g., low margins, high rate of staff turnover, accidents in factory etc.
Suggests measures to overcome the business problems.
Assists Manner in carrying out operational, or technical assignments, planning procedures, solving problems and making decisions.