POSDCORB
REPORTING
By: Alberto D. Pena, PH.D
Associate Professor, Ret., University of Connecticut (USA)
Member of the Faculty, MDI, Illinois State University (USA)
POSDCORB-REPORTING
• In POSDCORB, reporting is the process of keeping the
executives informed and in control.
• In this context the subordinates makes periodic reports
regarding the progress and status of on-going activities in
the implementation of the operational plan.
• Following the organizational chart the reports comes from
lower positions to higher positions going thru the chain of
command.
POSDCORB-REPORTING
• Reporting is normally identified with the flow of
organizational communication between positions in the
organizational chart.
• It could be from bottom to top, from top to bottom, and even
lateral.
• Executives should see to it that these flows are not
impeded.
• Some people believe that the communication from top to
bottom are not really considered reports.
POSDCORB-REPORTING
• This flow of communication from top to bottom are in forms
of orders, commands or even advice as a result of perusing
through the reports from the subordinates.
• Communication flow from the top may also be in a form of
summarizing all reports submitted from the bottom and
transmitted back to all subordinates in the spirit of
coordination.
POSDCORB-REPORTING
• In POSDCORB, it is the flow of communication from bottom to top
that is given emphasis.
• It takes a form of submitting formal and informal reports from
subordinates to supervisors. In a multi-layer organization, the
report coming from the bottom will contain more details.
• These details should be compiled and organized into fewer
categories by the intermediate layers before it is submitted to the
higher level manager.
• For example the report of an engineer in charge of
implementation of a project will contain many details.
• Reports from lower units of an Association will also contain many
details.
POSDCORB-REPORTING
• When these reports are received by the chief of the
engineering unit (next higher level) the details should be
compiled into few categories before submitting it to the Project
Manager
• The reports from lower levels of an Association it should be
summarized before submitting it to the President.
• Such details might clog the communication line between the
intermediate supervisors and ultimate consumer of the report.
• It will even clog the mind of executives along the chain of
commands.
POSDCORB-REPORTING
• The most important information for the Project Manager will be
the rate of completion for each component, the rate of
completion for the whole project, and the total financial
resources so far expended.
• The President of an Association will mostly interested in the
completion of important activities and the financial resources
expended.
• The amount of details should be minimized as the report goes
upward.
• The President can always ask for details whenever it is
needed.
POSDCORB-REPORTING
• The flow of communication from top to bottom will take a form
of informing the different subordinates about the overall project
completion and how the project is being implemented
according to the plan.
• These memoranda from the President of the company are
important since each subordinate is working on specific
function or component of the project.
• People below will be more motivated if they are apprised of
the overall progress of the project, including successes and
failures.
POSDCORB-REPORTING
• The communication from top to bottom can also take a form
of asking for specific details.
• This direction of communication will also take a form of
order or instructions to specific subordinates.
• In some cases it takes a form of feedback and solution to a
problems brought by the subordinates.
POSDCORB-REPORTING
• The lateral communication takes place between co-equals
or between positions in the same level of organizational
chart.
• This communication is for consultation and sharing of
information.
• Lateral communication also happens between a top
executive of one organization and top executives of other
organizations.
• In program management lateral communications happen
between managers of different projects.
POSDCORB-REPORTING
• The instrument of Reporting in the POSDCORB is Monitoring
and Control.
• Monitoring and controlling are important functions in day-today management of an organization and during the
implementation and operation of programs or projects.
• Their purpose is to ensure that activities are being
implemented according to the plan and desired outputs are
being produced in anticipated quantity and quality.
• Any deviation beyond acceptable limits requires corrective
action from authorized persons.
POSDCORB-REPORTING
• The process of gathering, storing, and reporting relevant
information is called monitoring and the process of making
corrective action is called controlling.
• Some people view monitoring and controlling as two separate
functions when in reality they are not.
• They are so intertwined that they can be viewed as one
integrated activity. This is what is known as Management
Information System (MIS).
POSDCORB-REPORTING
POSDCORB-REPORTING
WHAT IS BEING MONITORED AND CONTROLLED
• The planning process is expected to reflect the most efficient
utilization of inputs and effective production of desired outputs.
• During implementation, managers should see to it that inputs are
being utilized according to the plan and desired outputs are being
produced.
• When unacceptable deviations are observed, either in the utilization
of inputs or in the production of outputs, managers should make
corrective actions.
• Such actions may involve changing the whole plan.
POSDCORB-REPORTING
• Inputs consist of funds, materials, personnel, time,
technology, and other organizational resources.
• Management combines these resources to produce
products and services.
• What is being monitored and controlled is the amount and
manner by which inputs are being used and
• The quantity and quality of outputs that are being produced.
POSDCORB-REPORTING
WHO MONITORS AND WHO CONTROLS
• Persons who have access to information do the monitoring,
and persons who have the authority to commit
organizational resources do the controlling.
• Depending on the size of the organization or a project,
monitoring and controlling could be done by one person or
by different persons.
• In large organizations there could a separate research and
monitoring unit.
POSDCORB-REPORTING
MONITORING AND CONTROLLING AS A SYSTEM
• Monitoring and controlling involve a number of interrelated
functions and considered to be a complete managerial
system.
• Some managers call it monitoring and control system
(MCS), some call it project reporting system (PRS), and
some people simply call it information management system
(MIS).
• For the purpose of this material, we will call it Management
Information System (MIS).
POSDCORB-REPORTING…..
A Management Information System has the following
components:
• Gathering of information from implementers
• Relaying information to decision makers
• Making adjustment decisions
• Storing information for reference
POSDCORB-REPORTING
• Information can be stored in record files or in computer memories.
• Whatever method is used, managers should be able to retrieve
information when needed.
• Before storing information however, it should be compiled and
reported to whoever is responsible for knowing and controlling the
progress of project implementation.
• Briefing rooms or conference rooms are ideal places to put visual
and graphic compilation of progress reports.
• Compilations could also be placed in briefing folders or shown in
computer displays.
• Compilations should be up-dated from time to time to serve as focal
points of comparison between the progress of implementation and
the plan.
POSDCORB-REPORTING
• Information is gathered through verbal and written reports.
• Written reports are preferred since they are easily retrieved
as records.
• In gathering information, make note of the fact that excess
information is as bad as lack of it.
• In most cases, information overload causes the system to
break.
• As a rule, only relevant information should be gathered and
reported.
• In reporting, standardized report formats are recommended
since they facilitate storage and compilation.
POSDCORB-REPORTING
APPLICATIONS OF MANAGEMENT INFORMATION
SYSTEMS
• MIS has two main applications:
1) Tracking the status of day-to-day management of an
organization, and
2) Appraising the progress of project implementation.
• Although the MIS model is the same in both applications,
the latter is more time-bound than the former.
POSDCORB-REPORTING
• In day-to-day management of an organization, MIS should
focus on:
1) Amount and Condition of Inputs,
2) Achievements in Selected Key Result Areas, and
3) Cost Control Measures.
POSDCORB-REPORTING
1. Amount and Condition of Inputs:
• MIS should track the condition and level of inputs being utilized.
• For example, the Minister or the Permanent Secretary of the
Ministry of Education should be informed on the total budget (fund
input) of the Ministry and how it is allocated to various programs in
different regions and school districts in the country.
• Executives of Associations should monitor the level of
expenditures to check whether disbursements and obligations are
still within the budgeted amount.
• He or she would also be interested in knowing the total number of
personnel in the organization (human resource input) by
categories.
POSDCORB-REPORTING
2. Achievement in Key Result Areas (KRA):
• MIS should track the level of achievement in selected
KRAs.
• Key Result Areas are operational areas wherein managers
could stake their claims of success or feel the agony of
failure.
• In the Ministry of Education for example, Key Result Areas
would include literacy rate; pupil’s performance in reading,
writing, and arithmetic; and other areas.
• The Ministry of Education sets achievement targets on
these areas to monitor performance.
POSDCORB-REPORTING
3. Cost Control Measures:
• In addition to knowing the level and condition of inputs
and level of achievement in key result areas,
management should be informed on the level of
efficiency of input utilization.
• Efficiency is best measured by relating cost with
production of products or services.
• An organization that can produce two units of products
per unit of cost is considered efficient compared to an
organization that needs two units of costs to produce the
same amount of product or services.
POSDCORB-REPORTING
• These ratios are known as cost control measures.
• In Associations for example, the executive should know the
cost per dollar raised in fund raising campaigns, cost per
client served, cost of utilities, etc.
• By comparing these figures to similar costs in other
organizations and cost in “normal” operation the executive
would know if the budget of the organization is being utilized
efficiently.
• With this knowledge, the executive could make some
adjustments to "control" these operational costs.
POSDCORB-REPORTING
APPLICATION OF MIS IN PROJECT IMPLEMENTATION
• A project is a set of related activities that were given separate
allocation of resources for the purpose of achieving specific
objectives.
• It is being implemented and utilized within specific time frame.
• Projects require special attention from management.
• Project management differs from the day-to-day management
in the sense that the former is considered special and the
latter is considered routine.
POSDCORB-REPORTING
• Examples include Adult Literacy Project in the Ministry of
Education and holding a “Jamboree” by the Boy Scouts of
the Philippines.
• Project management revolves around the life of the project
which is time-bound.
• A project undergoes a cycle of gestation, operation, and
evaluation.
POSDCORB-REPORTING
• The gestation period is the duration of time when the project
idea is conceived up to the time the project is implemented.
• The planning period is the time when the project is defined,
analyzed, and appraised.
• The implementation period is the time when the different
components in the proposed project are being procured,
installed, or constructed.
POSDCORB-REPORTING
• For example the implementation of the Adult Literacy
Project involves the actual training of teachers and
volunteers who are involved in the project,
• actual purchase of vehicles and audio-visual equipment,
• actual construction of village centers to be used as night
schools,
• and the actual purchase and reproduction of education
materials.
POSDCORB-REPORTING
• The operation or utility period is the span of time when the project
is being operated (as in industrial plants) or being utilized (as in
adult literacy project), or being conducted (as in the Jamboree
Project).
• Within this period, the project is expected to produce certain
products certain results.
• The utility period for the Adult Literacy Project could be 5 years
depending on the agreement between the sponsors of the
project.
• The operation period for the Jamboree Project could be in weeks.
• After this period, the project is considered dead unless revived or
continued.
POSDCORB-REPORTING
HOW TO DEVELOP A MANAGEMENT INFORMATION
SYSTEM
• This section illustrates a simple procedure for developing a
functional MC system for the implementation and operation
in organizational management or management of projects.
• Although the procedure is the same for both periods, the
focus of monitoring and control during implementation is
input utilization.
• The primary concern during the operation period is the
quantity and quality of outputs.
POSDCORB-REPORTING
The procedure involves the following steps:
1) developing standard report forms,
2) developing standard performance criteria,
3) developing a method of compiling and presenting
information to decision makers,
4) determining the range of acceptable deviation for
comparing plans and performance, and
5) pre-determining corrective actions.
POSDCORB-REPORTING
1) DEVELOPING STANDARD REPORT FORMS
• The purpose of reporting is to relay relevant information to
decision makers.
• The forms serve as guides on the kind of data to be gathered. It
could provide instructions on how the data should be gathered.
• Reporters and reportees should agree on what information are
important and which are not.
• After determining the kind of information to be reported, standard
report forms can be developed for easier recording and
correspondence.
• As a rule of thumb, report forms should contain few selected
information about the progress of on-going activities.
POSDCORB-REPORTING
• Putting too much information in a form, though sometimes
useful, may defeat the purpose of orderly recording, easy
retrieval, and timely transmission of critical data.
• In many instances, it may even cause the information
system to break.
• If the manager feels the need for additional information,
he/she can always ask field workers.
POSDCORB-REPORTING
Here are some guidelines on what information to gather and
how they should be reported:
• Information about Personnel: Information about personnel is
useful for project management as well as organizational
management.
• Regarding personnel, managers may be interested in knowing
behaviors that affect performance as well as actual performance
of employees.
• High rates of absenteeism, tardiness, and falling productivity are
preludes to disaster if corrective actions are not taken.
• Besides their short term affects, these indicators of personnel
performance have serious long term implications.
POSDCORB-REPORTING
• Absolute numbers, ratios, percentages, and easy-tounderstand descriptors can be used to report information on
personnel.
• For example, absenteeism of employees can be presented
as a ratio between the number of days they were absent and
total working days in a certain period.
• If the manager is interested in the absenteeism rate of the
whole group (a crew, unit, task force, etc.) aggregate
attendance should be used.
POSDCORB-REPORTING
• Report on personnel continued….
• Increasing man-hour losses; which of course transforms into
lower productivity, indicates that there is something wrong, or
to put it mildly, things are not going right.
• To appraise the general morale of the employees, supervisors
can use descriptors such as good or bad or an appraisal scale
of 1-5, designating number 1 or 5 as bad or good.
POSDCORB-REPORTING
• In addition to personnel information mentioned above, it is
important for managers to simply know who is doing what
and who is responsible.
• It provides them with sense of control. It also makes
monitoring of personnel behavior easier.
• By delineating responsibilities, managers can pinpoint
impending bottlenecks.
POSDCORB-REPORTING
b) Information about Funds
• One of the most important information managers should
monitor is expenditure.
• More too often, managers found themselves in an
embarrassing situation in not being able to pay project
obligations because of delays in fund releases.
• In some cases, some activities or projects were stopped
because they simply ran out of money.
POSDCORB-REPORTING
• Legal provisions, auditing rules, complicated supplemental
allocation procedures, and long red tapes in the release of
allocated funds are reasons enough to anticipate spending
levels.
• The budget contains the planned expenditures.
• It is the basis for monitoring actual spending.
• Since budgets are presented in different forms, report forms
should conform to budget formats.
POSDCORB-REPORTING
• Report on funds continued…
• There are many "totals" that should be monitored and
controlled. Some of these totals are:
• line-item totals (if line budgeting is used),
• overall total expenditures at a given point in time,
• total unpaid obligations, and
• other finance-related totals.
POSDCORB-REPORTING
• Managers should compare actual expenditures with budget
allocation in order to determine
a) whether activities are being implemented within
allocations,
b) whether previous estimates are too low or too high, and
c) whether the remaining budget is enough to finance
remaining time in the year or to complete the project.
d) Requests for additional allocation take time.
POSDCORB-REPORTING
c) Information about Equipment
• In varying degrees, persons need machines in almost all
productive endeavors.
• Yet, many managers tend to ignore the importance of
keeping these gadgets in good working condition.
• One important piece of information about equipment is its
economic life.
POSDCORB-REPORTING
Other useful information about equipment includes the following:
1) Duration of time the equipment is in actual use.
• This is especially important in equipment with very limited life
span as in the case of most electronic equipment.
2) The condition of the equipment. It is misleading to assume that
five computers (or any equipment for that matter) are available
when three of them are out of commission or even obsolete.
3) Record of equipment repairs. The frequency of equipment
breakdown gives a clue of its reliability.
• The record of equipment repair will also identify parts that
should be replaced occasionally. These parts should be kept
in stock if possible.
POSDCORB-REPORTING
d) Information about Time
• Time is a very important resource.
• The sequential nature of activities makes proper timing critical in
management.
• The importance of meeting deadlines needs no lengthy
elaboration.
• Managers should monitor the progress of work, expenditures,
personnel well-being, and the condition of critical equipment over
a period of time
• This to appraise activity or project implementation at a given point
in time.
POSDCORB-REPORTING
d) Information about Time…..
• By comparing actual performance with the plan, managers
can determine whether the implementation of activities or
project is on time, not on time, or ahead of time.
• One important piece of information that relates the progress
of project implementation is the percentage of completion
for the whole project and for each major activity.
POSDCORB-REPORTING
2) DEVELOPING STANDARD PERFORMANCE CRITERIA
(SPC)
• Standard performance criteria (SPC) are yardsticks by
which progress of project implementation is measured.
• Serving as focal points of comparison in determining
possible deviation, SPCs should be consistent with
standard report forms discussed earlier.
• Standard performance criteria should be developed for both
inputs and outputs.
• Normally set during the conduct of cost-effectiveness
analysis, SPCs reflect the most efficient input utilization and
the most cost-effective way to produce output.
POSDCORB-REPORTING
The following are important performance criteria:
a) Pre-determined percentage of completion in different periods of
time.
b) Estimated level of total expenditure in different periods of time.
c) Estimated total expenditure for each activity.
d) Number or percentage of equipment in good running condition in
different periods of time.
f) Expected level of individual performance.
g) Estimated amount of supplies and other important materials in
stock.
h) Normal man-hour loss due to absenteeism and tardiness.
POSDCORB-REPORTING
3) DEVELOPING A METHOD FOR COMPILING AND
PRESENTING INFORMATION TO DECISION
MAKERS
• As soon as progress reports are received, relevant information
should be compiled and presented to decision-makers.
• This should be done to enable managers to compare actual
performance with plans.
• Summary reports, computer displays and printouts, use of
progress charts and tables, network diagrams, and similar
presentations can be used.
• In most cases, simple summary of progress reports may be
adequate in determining progress of implementation.
POSDCORB-REPORTING
• Large and complex undertaking may need a more
sophisticated computerized compilation of data that managers
can display on their computer monitor screens.
• Computers can also be programmed to remind managers of
critical decision areas.
• In day-to-day management, statistical charts and tables are
very useful.
• In project management, one technique that has been proven
effective in presenting progress of implementation is
PERT/CPM (Project Evaluation Review Technique using
Critical Path Method
POSDCORB-REPORTING
4) DETERMINING RANGES OF ACCEPTABLE
DEVIATION
• Unless there are serious symptoms indicating that an
activity or a project is not being implemented as planned or
• targets in key result areas are not being met, managers
need not be alarmed.
• Managers of multi-level organizations may also delegate
corrective decision-making to their subordinates.
• But, how can we determine the seriousness of deviations?
POSDCORB-REPORTING
DETERMINING RANGES OF ACCEPTABLE
DEVIATION….
• Let me use simple examples to illustrate this point.
• A cold can be a symptom that there is something wrong with your
health. Sneezing, stuffy nose, and loss of appetite may not alarm
you, since it is fairly common.
• However, you may need to consult a physician, if you run a high
fever and have difficulty in breathing.
• On the other hand, it is also possible that your fever is not high
enough to be concerned.
• However, it is surely alarming if your fever persists for a prolonged
period of time.
POSDCORB-REPORTING
• The above examples tell us that the seriousness of
deviations depend on its magnitude and frequency.
• In order to avoid panic, managers should pre-determine
acceptable ranges of deviations.
• As a rule of thumb, managers should consider it normal,
and as such there is no need for corrective action, if the
observed deviation is within the acceptable range.
POSDCORB-REPORTING
5) DETERMINING DECISION POINTS
• Managers should anticipate possible decisions if deviations
go beyond the acceptable range.
• These are called decision points.
• A decision point has three elements, namely:
• 1) identifying the persons who will make the decision,
• 2) defining their area of discretion, and
• 3) enumeration of possible courses of action.
POSDCORB-REPORTING
• Decision points minimize confusion, panic, and waste of
managerial time.
• They identify who will make what decision within the limit of
authority.
• Decision points also enumerate possible courses of action
open to managers.
• By scanning predetermined alternatives, managers can
systematically decide on corrective actions.
POSDCORB-REPORTING
• The implementation of corrective action is monitored again
through standard reports.
• Relevant data will be compiled and compared with predetermined performance criteria,
• and if everything goes well, managers can start to relax until
the observed deviation goes beyond its acceptable range.
• At this point, the monitoring and control system has gone
full cycle.