Types of Business Report

Reports may be classified based on several criteria, including their use (progress reports and financial reports), purpose (informational, analytical and persuasive reports), frequency of preparation (annual, monthly, weekly and hourly reports), length (short and long reports) and whether they are internal to the business, or are used outside the business.
The most common types of business reports may be divided into the following categories –
1. Periodic reports – These are reports that are prepared on a regular basis, for both internal and external audiences. Their purpose is solely to inform. Examples of this type of report are –
a) Routine management reports – These are reports such as equipment reports and sales updates and are prepared for internal audiences.
b) Compliance reports – These are submitted to external stakeholders, such as the government, stating compliance with regulations such as environmental norms.
c) Progress reports – These reports may be prepared for both internal audiences such as top management and shareholders, as well as for external audiences such as customers. A project report stating progress on a long-term project is an example of this type of report.
2. Proposals – Unlike periodic reports, the purpose of a proposal is to persuade. Proposals may be prepared for both internal and external audiences. Examples of proposals include research proposals and marketing strategy proposals to top management, proposals to the government to grant funds for building a research facility and proposals to consumers to buy a company’s products.
3. Policies and Procedures – The purpose of these reports is solely to inform. They are also prepared only for internal audiences. Examples include reports on company policies and procedures, written by top management and sent to all employees. This is part of downward communication.
4. Situational reports – These are one-time, exceptional reports that are prepared when a unique event occurs. For example, if sales of the company has shown a significant decline, a study may be carried out to determine the reasons for declining sales and a report prepared on the findings. Similarly, a market feasibility study may be carried out before launch of a new product and a report prepared, based on the study. The purpose of such reports is usually to inform, analyze and persuade.

Barriers to communication

In the earlier section on the communication process, “noise” was mentioned as one of the elements of communication. Noise is essentially a barrier to communication and we distinguished between “physical” noise, “physiological” noise and “psychological” noise.
There are many other barriers to communication, an understanding and analysis of which are needed before coming up with ways to eliminate or minimize them. These barriers may be classified as follows –
Activity
Select any situation at your home, workplace or school/college in which you were involved. Prepare a brief summary of the communication process, using the various elements of communication discussed in this sub unit.

1. Environmental Barriers – This is the same as physical noise, which could be in the form of distracting sounds, an overcrowded room, poor facilities and acoustics, all of which may hinder the ability to listen to and understand the message.

2. Individual Barriers – A major barrier to interpersonal communication is a tendency to judge, evaluate, approve or disapprove of the views of another person. This happens particularly in situations where we have strong feelings about something. In such cases, we tend to block out the communication and form our own viewpoints.

3. Organizational Barriers – In organizations that are too hierarchical, that is, where there are multiple “layers”, messages may have to pass through many levels before they finally reach the receiver. Each level may add to, modify or completely change the message, so much so that it becomes distorted by the time it reaches the intended receiver. In other words, there is likely to be loss of meaning and the message may not reach the receiver in the same way as it was intended by the sender.

4. Channel Barriers – In the earlier section, it was pointed out that communication can fail due to any of the different elements going wrong. Wrong choice of channel is one of the main barriers to communication. Using a wrong medium of advertising, or conveying a message orally when a written letter would be more appropriate, are examples. The written channel is more appropriate when the communication is more formal or for keeping things on record, while emotional messages such as feelings about co-workers are better conveyed orally.

5. Linguistic and Cultural Barriers – When the sender of the message uses a language that the receiver does not understand, the communication will not succeed. Either the sender may be using a different or foreign language, or the language used may be too highly technical for the receiver to understand.
Linguistic barriers may also occur in cross-cultural advertising and distort the communication, when translating campaigns or slogans literally from one language to another. For example, Pepsi’s slogan “Come Alive with Pepsi”, when translated into Chinese, read “Pepsi brings your ancestors back from the grave!”
Cultural differences refer to differences in values and perceptions, which may affect the interpretation of the message by the receiver. For example, a joke about women may be taken in the wrong sense if the receiver belongs to a culture where women are highly respected.

6. Semantic Barriers – The word “semantics” refers to the meaning of words and the way in which they are used. For example, different words may have different meanings in different cultures. Failure to take this into consideration could lead to serious blunders.
Example : Saying “ The new product launch went like a bomb” in British English would mean that the new product launch was a success.
On the other hand, saying “The product launch bombed” in American English would mean that the new product was a disaster.

7. Non-verbal Barriers – This refers to the non-verbal communication that goes with a particular message. Non-verbal communication includes tone of voice, body language such as gestures and facial expressions, etc. We will be discussing this in great length in a later unit. If the tone of voice and
Business Communication Unit 1
Sikkim Manipal University Page No. 11
body language are negative, the communication will fail, however positive the spoken and written message.
For example, if you happen to meet a long lost friend and say “I am delighted to meet you”, but in a sad tone of voice, the exact opposite message will be conveyed!
Therefore, it is important to avoid giving conflicting signals, through the use of non-verbal communication.

Overcoming the Barriers to Communication
Certain steps can be taken, both at the organizational level, as well as at the individual level, to effectively deal with the barriers to communication, in order to try to minimize them, if not eliminate them entirely –
Organizational Action
1. Encourage Feedback – Organizations should try to improve the communication system by getting feedback from the messages already sent. Feedback can tell the managers whether the message has reached the receiver in the intended way or not.
2. Create a Climate of Openness – A climate of trust and openness can go a long way in removing organizational barriers to communication. All subordinates or junior employees should be allowed to air their opinions and differences without fear of being penalized.
3. Use Multiple Channels of Communication – Organizations should encourage the use of multiple channels of communication, in order to make sure that messages reach the intended receivers without fail. This means using a combination of both oral and written channels, as well as formal (official) and informal (unofficial) channels of communication. The types of channels will be discussed in detail later, in a separate unit.
Individual Action
1. Active Listening – This means listening to the meaning of the speaker’s words, rather than listening without hearing, or “passive listening”. Passive listening is a barrier to communication, whereas real communication takes place when we listen actively, with understanding. Listening is a skill which can be developed through proper training.
2. Careful wording of messages – Messages should be worded clearly and without ambiguity, to make sure that the message that is received is the same as the message that is sent.
3. Selection of Appropriate Channels – Individuals should be competent enough to choose the right communication channel, depending on the situation. Channels of communication and the criteria for selection of channels will be discussed in detail in a later chapter.

Communication Network in Business organization

A communication network refers to how information flows within the organization. Information within an organization generally flows through a system, rather than being a free flow. In the words of Adler, “Communication networks are regular patterns of person-to-person relationships through which information flows in an organization.”
This means that the flow of information is managed, regulated. and structured.
Communication networks may be formal or informal. We will deal with each of these in some detail.
Formal Communication Network – A formal communication network is one which is created by management and described with the help of an organizational chart. An organizational chart specifies the hierarchy and the reporting system in the organization. Therefore, in a formal network, information is passed on only through official channels such as memos, bulletins and intranet (email within the organization).
The organizational chart implies that information can flow in any of three directions – vertically, i.e., upward or downward, and horizontally.
1. Upward Communication – This may be defined as information that flows from subordinates to superiors. Some of the reasons for upward communication include discussing work related problems, giving suggestions for improvement and sharing feelings about the job and co-workers.
This type of communication has both benefits and disadvantages. One of the biggest benefits is problem-solving. Once a subordinate has brought a problem to his superior’s notice, chances are that the problem will not recur, since the subordinate learns from his superior how to tackle it the next time. Thus, his ability to solve new problems and therefore his managerial ability, improves. Another benefit that could arise from upward communication is that valuable ideas and suggestions may sometimes come from lower level employees. Therefore organizations should encourage this kind of communication.
A third benefit is that employees learn to accept the decisions of management and thereby work as a team.
The biggest problem associated with this type of communication is that it may lead to “handing down” of decisions by superiors. When subordinates frequently seek the superior’s guidance, the latter may adopt an authoritarian approach and merely give instructions, disregarding the subordinate’s opinion completely.
2. Downward Communication – This may be defined as information that flows from superiors to subordinates. The most common reasons for downward communication are for giving job instructions, explaining company rules, policies and procedures and giving feedback regarding job performance. A number of studies have indicated that regular downward communication in the form of feedback given to employees is the most important factor affecting job satisfaction. Therefore organizations today are trying to encourage more of this type of communication.
There are both benefits and disadvantages associated with this type of communication. Downward communication that provides regular feedback will be beneficial if the feedback or review of performance is constructive. A constructive review is one where a manager “counsels” an employee, or advises him on how to improve his performance. On the other hand, a destructive review can destroy employee morale and confidence. Regular downward communication also creates a climate of transparency or openness, where information is passed on through official channels, rather than through rumors.
Thirdly, downward communication boosts employee morale, since it indicates that management is involved in their progress.
The problems with this type of communication are the danger of doing destructive reviews, as mentioned, and that of “message overload.” This means that superiors many sometimes burden their subordinates with too many instructions, leading to confusion.
3. Horizontal Communication – This type of communication is also known as “lateral” communication. It may be defined as communication that takes place between co-workers in the same department, or in different departments, with different areas of responsibility. For example, Sales Managers and Advertising Managers in the Marketing department, or Marketing Managers and Finance Managers.
The reasons for this type of communication are for coordination of tasks, sharing of information regarding goals of the organization, resolving interpersonal or work related problems and building rapport.
The biggest potential benefit of horizontal communication is the sense of teamwork that is created. Regular communication of this type ensures that all co-workers work together towards achieving a common goal in the overall interest of the organization. The biggest potential problem is that conflicts such as ego clashes are bound to arise, when co-workers at the same level communicate on a regular basis.
In spite of these problems, horizontal or lateral communication has become more important in today’s business scenario than upward or downward communication. This is because the “organizational pyramid” indicating the different hierarchies or levels in an organization has flattened. This is illustrated by the diagrams given below.

Informal Communication Network – Another name for informal networks is the “grapevine”. In this type of network, information does not flow in a particular direction, as we have seen with formal networks. The information is also not passed on through official channels such as memos, notices or bulletin boards. The information need not be circulated within the organization, but could be passed on outside the work environment, wherever co-workers or colleagues meet socially. Thus, informal networks are based more on friendship, shared personal or career interests.
Example – Co-workers may meet outside the work environment at a company picnic, party or a car pool and discuss areas of common interest that may or may not be work related. Information may then be passed on to each other about happenings in the company, such as layoffs, the company’s plans for acquisitions and so on.
This type of informal network is not just for idle rumors and may be useful in many ways. First of all, it sometimes fills in the “transparency gaps” left by formal networks. Such gaps usually occur during times of crisis such as strikes or layoffs. The strikes and layoffs may not be officially announced. Secondly, it may help to confirm important information, such as the fact that the company is going in for a major acquisition. Thirdly, the grapevine can be used for a constructive purpose by the organization.
Example – The government could get the press to publish news in the local paper that there is going to be a petrol price hike soon, just to test the reactions of the general public. If the reaction is negative, then the news may be withdrawn on the basis that it is just a rumor. Similarly, organizations could deliberately plant proposals in the minds of their employees, just to test their reactions.
Given that informal communication networks have their advantages, they should not be suppressed as rumors. On the contrary, competent managers should accept the informal network. At the same time, they should make efforts to counter false rumors and to ensure transparency through the formal network. This means making all types of information - both positive and negative, available to everyone in the organization through official channels.
To conclude, it should be remembered that both formal and informal networks should be cultivated and allowed to co-exist, so that information of all types flows freely to all levels in the organization.

B-COM REGULAR EXAM 2018, JAMIA E KARACHI FROM 29/1/2019