Direct Report
An organization needs structure in order to run smoothly. If there’s no direct-report system, then confusion and chaos will likely ensue — especially in organizations with many employees.
What is a direct report?
A direct report is an employee who works directly under a manager or someone else above them in the organizational hierarchy. For example, they may report directly to a supervisor instead of a manager. Either way, the person they report to is responsible for assigning them tasks and monitoring their performance. Direct reports are oftentimes called “subordinates.” They are expected to take orders from their immediate manager or supervisor so long as those orders are reasonable and legal. If they fail to carry out a valid and legal order after accepting it, then they are “insubordinate” — which typically subjects the employee to disciplinary action.
Note: Leaders with direct reports are often direct reports themselves. For example:
- The VP of Human Resources directly reports to the Chief Executive Officer (CEO)
- Who directly reports to the board of directors
- Who directly reports to the shareholders
Depending on the size of the company, it’s possible for a manager to report directly to the owner. Examples of positions that have direct reports include:
- Managers
- Supervisors
- Team leaders
- Department heads
- CEOs
- Directors
- Shareholders
Why direct reports are important
An organization needs structure in order to run smoothly. If there’s no direct-report system, then confusion and chaos will likely ensue — especially in organizations with many employees. Having direct reports enables you to:
- Create order within the company. For example, the hierarchy starts with the board of directors, followed by the CEO, departmental directors, managers, supervisors, team leaders, and rank-and-file employees.
- Develop a feedback system. Direct reports have a specific person they can expect feedback from and provide feedback to.
- Strengthen interpersonal communications. By reporting to one individual, direct reports can build a stronger relationship with that person.
- Define roles and responsibilities, plus delegate tasks based on employee qualifications.
However, having direct reports is not enough — they must be managed appropriately as well. To inspire productivity in your direct reports:
- Show genuine interest in their well-being.
- Get to know their career goals and aspirations.
- Involve them in decision-making.
- Delegate tasks appropriately.
- Encourage their participation and feedback.
A case study on managing direct reports
The Harvard Business Review published case studies on managing direct reports, including one focused on uniting employees around a common goal. In one example, the co-founder and CEO of a mobile app development firm managed over 100 employees split between offices in Dallas, Texas, and Noida, India. Due to the difference in time zones, some employees felt they were working later into the night than others. To address the building resentment and bring the team together, the CEO chose to be more open about the company’s overarching goals and financial targets. By painting a clear picture of strategy for everyone — from developers in India to the leadership team — the intent was to ensure all employees felt connected by a common goal.
Summary
A direct report is an employee who works directly under another person and is managed by that individual (e.g., a manager or supervisor). This individual is responsible for assigning work to the direct report, monitoring their performance, and issuing orders. The direct report is expected to follow these directions as long as they are reasonable and legal. If they don’t, they could be guilty of insubordination, which warrants disciplinary action. Direct reports are essential because they facilitate a structured reporting system within the organization. Direct reports must be skillfully managed in order to encourage them toward their best level of performance.
