Functional records describe a company’s activities and events, capturing unique information in a specific format. They are critical for liability protection and historical evaluation, and examples include incident reports, customer feedback forms, and travel tickets.
A functional record, also called an operational record, is a written document that describes a company’s activities and surrounding events. Records particular information in a specific format but is not an administrative record. This type of document is most often created at the time the activity occurs and is generally considered the most reliable version of events because it is created close in time to the information it presents.
Companies keep records so they can operate more efficiently, report on their activities to investors and government agencies, and evaluate performance in historical context. Many of the forms a company creates to help it maintain records are administrative, such as employee contact sheets. These forms document normal office operations and things managers expect to happen on a regular basis.
Companies often need to capture non-administrative or standard information. This information is often unique over time, even though the way the information is recorded can be uniform. To document this information, the company uses a functional log or a written record of what happened, which allows the company to store a concurrent account and retrieve the information in the future if needed.
There are many different types of functional records. Perhaps the easiest way to understand the use of this type of tool is to look at some common examples. An incident report is a type of functional record. Businesses often require staff to complete an incident report detailing exactly what happened if an employee or customer is injured on the premises or while engaged in company business. This functional record is compiled only when needed, but it’s critical because it documents events in the words of the people involved, close to the time the event occurred.
Another type of functional record is a customer feedback form. Not all customers will fill out a feedback form, and usually a customer will only do so when they have something specific to say about today’s service. The feedback form is a functional record because it documents a unique event that happened at a specific time in the words of the person involved.
A travel ticket is a functional record that is filled in most frequently. Often, a company requires its drivers to fill out a report detailing a journey every time a driver takes a company vehicle. That way, if a manager needs to answer questions about past vehicle operation, he has a contemporary account of the activity prepared by the driver for review.
Functional logs can provide companies with liability protection. Customers and employees often have years to file a lawsuit against a company for a variety of civil infractions. Without a contemporary record of events, it would be difficult for a business to demonstrate exactly what happened in the past.
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