Usage of Informal Report

Informal reports are commonly used tools to help managers in planning, organizing, staffing and controlling. These reports are usually written by subordinates with the purpose of focusing on a specific and relevant fact. You may be given the task of investigating a problem area and proving objective information in report form.

This information may serve one or two used: To inform or To recommend action. For better understand, a short discussion with this two has be given below:

(1) To Inform: 
The main purpose of an informal report is to present facts or to provide background information to assist managers in making decisions. These reports can be as single as departmental reports that keep records of the number of hour worked, amount of production, rate of absenteeism, rate of turnover and length of breaks etc. Other reports can be more complex, such as determinations of the effectiveness of an advertising organized course of its action, the most cost-efficient equipment to purchase or the staffing of salespersons to cover peak consumer traffic. If managers get these reports available in time, they can fix the amount for paying each worker or employee has earned, the cost of production for an item etc.

(2) To Recommend Action
The other purpose of an informal report is not only to supply information but also to recommend a action to a problem being researched for solving. You may be asked to recommend a solution because you have studied the problem and know more about the possible solutions as a reporter than anyone else. But before you offer a solution, be sure that the assignment of the task includes recommending one or not.
From the above discussion, We can understand that informal report help managers to take valuable decision to  solve certain problems, to estimate certain condition etc. And a reporter can recommend if there is an option to recommend something.