The presenting report should satisfy the needs of various levels of management. The levels of management can be divided into three categories. They are,
1. Top level management.
2. Middle level management.
3. Lower level management or First line management.
Generally, the lower level of management requires more detailed report. But the top level management requires very short report. The lower level management consisting of foreman, supervisor and the like. The top level management consisting of Managing Director, Board of Directors, Company Secretary and General Manager.
The frequency of report to lower level management should be kept in minimum. But, in the case of top level management maximum number of reports required for taking policy decision and improve the operational efficiency of the concern.
Reporting to top level management
Several reports are submitted before the top level management to achieve the following objectives.
- Framing basic objectives of the organisation.
- Prepare the planning activities to achieve objectives of organisation.
- Proper delegation of authority and responsibility to various levels of managerial executives for effective and efficient operation.
- Promoting appropriate development schemes.
- Framing various policy decision.
- Taking of capital expenditure decision.
- Deciding about merger and acquisition of business.
- Decide the time of implementing expansion or modernization programme.
Reports to be submitted to top level management
The following reports should be submitted before the top level management at the required time.
- Periodic report about Profit and Loss Account and Balance Sheet.
- Fund flows statement and cash flow statement.
- Report on production trend and utilization of capacity.
- Reports about cost of production.
- Periodic reports on sales, selling and distribution expenses, credit collection.
- A statement on research and development expenditure.
Board of Directors
- Quarterly Balance Sheet and Profit and Loss Account.
- Quarterly Fund Flows Statement and Cash Flows Statement.
- Quarterly Cost of Production Statement.
- Quarterly Labour and Machine Utilization Statement.
- Monthly cost of production statement.
- Monthly department wise machine utilization statement.
- Monthly department wise labour utilization statement.
- Monthly department wise material scrap statement.
- Monthly department wise overheads cost statement.
- Monthly production statement showing budgeted quantity, actual quantity produced and other relevant matters.
- Monthly report of order received, or orders executed, orders kept pending product wise and division wise.
- Monthly report of finished goods stock position product wise.
- Monthly report of selling and distribution cost division wise.
- Monthly report of credit collection,arrears and bad debts division wise.
- Monthly Fund Flows Statement.
- Monthly Cash Flows Statement.
- Monthly abstract of receipts and payments.
Reporting to Middle level management
Generally, plans are prepared to achieve the objectives of the organisation by the top level management. But, the plans are actually executed by the middle level management. In this context, the following reports are submitted before the middle level management.
Reports to be submitted to middle level management
- Report on actual production figures along with budgeted production figures for a specific period. These reports are generally daily, weekly or fortnightly-product wise.
- The figures about the availability and utilization of workers. Figures about normal and abnormal idle time are also reported.
- Capacity utilization report.
- Material usage report-product wise.
- Machine and Labour utilization report-product wise.
- Absenteeism and labour turnover reports.
- Scrap report product wise.
- Machine hours lost report.
- Stock position report-product wise.
- Analysis of budgeted cost of production and actual cost of product etc in product wise.
- Reports on budgeted and actual sales. These reports are submitted area wise and product wise to the sales manager.
- Weekly reports on orders booked, orders executed and orders pendingproduct wise.
- Reports on credit collection and bad debts.
- Reports on stock position-product wise.
- Analysis of selling and distribution expenses product as well as area wise.
- Market survey reports.
- Reports on customer’s complaints.
- Reports on effectiveness of sales promotion campaigns etc.
- Raw materials purchased, actual materials received and orders pending materials wise.
- Use of raw materials for production-materials wise.
- Stock of raw materials-materials wise along with the details of minimum level and maximum level.
- Analysis of purchase of expenses.
- Budgeted cost of purchases and actual cost of purchase.
- Report on cash and bank balances.
- Periodic fund flow and cash flow statement.
- Debtors collection period reports.
- Report on average payment period.
- Working capital analysis report.
- Report on budgeted profit and actual profit.
- Statement of changes in financial position.
- Capital expenditure report.
Reporting to lower level management
Personnel in lower level management
The lower level management includes foreman, superintendents supervisors, and the like. They are very much interested to know the level of work in progress of various jobs which are performing under their supervision. Hence, the following list of reports submitted before the lower level management.
Records to be submitted to lower level management
- Daily report of idle time and machine utilization.
- Daily scrap report.
- Daily production report budgeted and actual-product wise.
Sales Area Supervisors
- Weekly sales report-salesman wise and product wise.
- Weekly report of orders booked, executed and outstanding.
- Weekly report of credit collection, outstanding and bad debts..
- Sales Force Progress of work.
- Sales Promotion Work.
- Publicity and advertisement.
- Cost of sales.
- Details of Raw Materials-Stock position-material wise.
- Finished goods stock levels-product wise.
- Work in progress-product wise.
- Capital expenditure.
- Progress of capital works.
- Direct labour employment estimates-approved and proposed.
- Other labour employment-approved and proposed.
- Approximate cost of present and proposed staff.
- Accounts receivable position and estimates.
- Accounts payable position and estimates.
- Reporting to top level management
- Reporting to Middle level management
- Reporting to lower level management