Note on Concept, Function and Importance of Office

Concept of Office

Source: www.slideshare.net

An office is the center point of organization. It is a place to perform different activities of a

business organization. The office is the brain of a whole organization. The office performs a
clerical function such as information collection, recording analyzing, distribution of
information and executive function such as planning, policies formulation, organization,
decision making etc.
There are two concepts of office. They are:
1. Traditional concept
Traditional concept defines office as the place to perform all managerial and clerical
activities. It is the definite area in business. All business functions are regulated and directed
from office. It collects and stores information of office.
J.C.Denyer- Office is a place where clerical operations are carried on.
M.C. Shukla- The point at which the greatest concentration of paperwork activity is found is
popularly referred to as the office.
Therefore, Traditional concept explains office as a specified place. It is the particular place
for handling whole business.
2. Modern concept
The modern concept of office explains office as an activity rather than the place. According
to this concept, any place can be said as an office, if the official activities such as executive
and clerical activities function are performed.
Jame Stephenson- The office is that part of business enterprises which is devoted to the
direction and coordination of its various activities. It is the seat, not only of the
administrative activities which determine the policy of the whole business but also of the
principal executive activities whereby that policy is carried into effect.
Edward Roche- Office exists anywhere certain kinds of work are performed. It is a mistake
to regard an office as a specific place. Just as a tree is known by its fruits, so also a business
office is known by the functions it discharges.
Therefore, An office is an important part of the organization in which different
administrative and clerical functions are performed to achieve the objective of the
organization. It has given importance to a functional area of business rather than a specific
place.
In conclusion, an office is a place to perform all business activities relating to clerical and
executive. It acts as the central point of whole organization and all the information and
resource come to an office and they are distributed from the office itself. The office is the
brain of an organization.
Function of Office

Source: oaforcsec.wikispaces.com

Every organization is established with the objective to attend specified goals. To achieve this
goal different function are to be performed. The office is the center point for all the business
various activities. Therefore, an office has to perform various activities. For our simplicity,
we have divided function of office into following two categories:
1. Basic Function
2. Administrative Function
Basic Function
The regular activities of collecting and distributing information are called the basic function.
It involves the functions like collection, recording, analyzing, storing and distribution of
information. Every type of business will perform basic activities from its office. The basic
activities of office are explained as following:
1. Receiving and collection of information:
It is the primary function of office to collect information from the different source. Generally,
there are two sources of information for office i.e internal and external. Internal information
is provided from different units of the business. On the other hand, external sources are
agencies and institution who collect and distribute information.
2. Recording information:
It iIt is the another activities of the office. The office will record the information available
from a different source in ‘inward book’ and ‘dispatch book’. That information which is
available from outside the organization like letters, bill, order etc is recorded in inward
books. The information provided by the organization to outside people are recorded in
dispatch book. This system of recording information helps to organize record and message
of business.
3. Analysing:
It is concerned with detail study of collected information. The information collected from
different sources are raw and unprocessed form. In this function, information is studied in
detail to find the necessity of information for a future purpose.
4. Storing Information:
The recorded information should be protected for future purpose. The degree of necessity
information will determine how long the information should be protected. According to the
importance of information, an office will store information in a separate file.
5. Distribution of Information:
It is the basic function of every office to distribute information to related people and
department. The collected information is distributed to different people and department in
order to help them in decision making and other activities.
Administrative Function
The administrative function is related to management of a business organization. It is the
high-level function and non-routine in nature. The administrative function of the office is
related to human resource management, purchase, and control of resource protection of
asset, public relation etc. Administrative function of office are explained as following:
1. Managerial function:
The activities related to management of business such as planning, leading, controlling,
directing etc are called a managerial function. Top level people of the organization are
involved in managerial activates from office. The managerial function is necessary to
successfully accomplish the function.
2. Human resource function:
Human resource function is related with placing the right employee at a right place. It is the
responsibility of office to determine the requirement of differently skilled people and place
them at a right position after selecting an appropriate candidate. The office will make a
record of employee performance provide prize and benefit in future.
3. Purchase and control function:
The office will involve identifying different assets and resource requirement for business. It
is the basic function of office to purchase an appropriate asset at a reasonable price. The
office develops the systematic mechanism to purchase an asset and other resource required
for business at minimum possible cost.
4. Public relation:
The relationship with a mass of public like a shareholder, creditor, supplier, media person,
social group, customer, community etc is called public relation. It is the responsibility of
office to maintain a close relationship with the people who are directly or indirectly related
to business. The office maintains a close relation with public by regular distributing
information and organizing different activities.
5. Safe guarding properties:
The office should protect the properties and assets of an organization. It maintains a record
of assets and provides updated information about this situation. It is the responsibility of
office to protect the asset from theft and damage like fire, accident, flood, water and chemical
lecage, etc. The office should provide regular maintenance of its resource.
 6. Forms design and control:
The office should design forms to bring uniformity in office operation. It helps to simplify the
operation and brings a system in performance. The office needs a different kind of forms
such as bills, inquiry form, voucher, letter pad, purchase order etc. Therefore, an office should
design separate form for each kind of activity.
7. Development of office system and procedure:
System and procedure are required to successfully accomplish different activities. Office
uses to develop different procedure and systems required to complete a specific task. It helps
to bring simplicity in office work. Therefore, an office must be developed system and
procedure to carry out each job.
Importance of Office
An office is the center point of any business activities. It is like the brain in a human body. As
human physical activities are regulated and control by the brain, the activities of department
and people in an office as well regulated and control from office. The importance of office can
be explained with the help of the following point:
1. Information center:
The office is very much important to collect and distribute information. Information is
available from a different source such as invoice, letter, memos, agreement, voucher etc.
Office collect information and protect them in safe mode on the basis of their importance.
2. Proof of existence:
The office is the evidence for existence and survival for business. We generalize the
information about the existence of business with the help of office. If the office is regular then
we can say business is running.
3. Channel of communication:
The office is the channel of communication between different peoples and department of
business. There are a various level of staffs in business who are communicated with each
other through means of office. Different department such as marketing and production are
communicated with the help of office.
4. Co-ordination of work:
Business is divided into department and sub-units for bringing simplicity in the operation.
The office will work as a coordinator to maintain the relationship between departments. It
develops productivity relationship with different department to achieve co-operate
objective.
5. Center for formulation of plan and policies:
A business is established with the objective of attaining the certain result. To achieve this
result top level manager formulate plans and policies from office. These plan and policies are
communicated to related person through the office. Therefore, the office is a center for the
formulation of plans and policies.
6. Managerial control:
The process of developing performance standard and comparing with actual performance is
called controlling. The office helps in controlling the activities of different people and
department of business. Office ensures that activities performed in business are accurate.
7. Memory center:
Office protects important information of past in a safe manner. It provides information
storage facilities in files and devices on the basic of their importance for future. The
department and people who need information are available from the office. Therefore, the
office is memory center.
8. Service center:
The office works as a service center for different units and department of business. It
provides clerical services like mailing, filing, typing, printing, supplying resource etc. to
concern department. It provides assistant facility to all people as well as units in business.

References:
Khanal, Soma Raj, Surendra Thapa Aslami and Sitaram Dhakal.Business Studies.Kathmandu:
Taleju Prakashan, 2067.
Pant, Prem R., et al.Business Studies.Kathmandu: Buddha Academic Publishers and
Distributors Pvt. Ltd., 2010.
Note on Concept and Importance of Office Management
Concept of Office Management

Source: www.slideshare.net

Office management is part of management which is concerned with the systematic

management of office work in order to achieve the objective of office. It is the process of
planning, organizing, leading, directing and controlling of official activities. Office
management aim is to achieve the objective office.
Every business is established with the objective of achieving the desired purpose. As the
office is a center of the whole organization. Office management is very much important for
the achievement of organizational goal. Office management helps to bring smoothness in the
performance of business activities. It provides a regular flow of communication between
each department and level of people.
According to George R.Terry, “Office Management can be defined as the task of planning
coordination, motivating the efforts of other towards the specific objective in the office.”
In conclusion, Office Management is the process of planning, organizing, supervising,
directing and controlling the activities of office in order to achieve the objective of office
successfully. It is the part of n=management which is concerned with the systematic
management of office activities. It is the indispensable part of management.
Importance of Office Management

Source: slideplayer.com
The office is the center of the whole organization. It is like the brain of a human body. The
systematic management of office is the key to the success of any successful achievement of
business activities. The importance of office management can be explained with following
points:
1. Smooth flow of work:
Office management helps to maintain a close relationship between the different department
and people. It regularly supplies order, command, and instruction to different people. It
performs various functions like planning, organizing, controlling, staffing, supervising,
motivating and effective leadership. Therefore, office management brings smoothness in
work.
2. Optimum use of resource:
Office uses human and non-human resource for the achievement of the business objective.
In the systematically managed office, the manager develops system and procedure to make
effective use of the resource. It helps to reduce wastage of time, resource, and misuse of the
resource. It helps for maximum utilization of the resource.
3. Maintain co-ordination:
The office works as a co-ordinate of different unit of business and people. It regularly
supplies updated information to required people and department. The regular
communication avoids conflict, misunderstanding. Therefore, office management promotes
co-ordination
4. Meet competition:
Today’s business environment is frequently changing. It is the fact that that business which
cannot adopt changes cannot survive as well. Office management collects information
regarding changes in the environment and trains its employee to work in a changing
environment. This is helpful to build competitive ability of organization.
5. Maintain office efficiency:
In the systematically managed office, the manager will provide continuous support guidance
and direction for employee successfully accomplish their work. When an employee is guided
properly the wastage of resource and excessive time consumption in the job will be reduced.
As because of this, the efficiency of an employee will be improved.
6. Dynamic approach:
Today’s business environment is continuously changing. Office management is a well
dynamic concept. It will collect the information regarding changes in the environment and
suggest to apply them in business. Systematic office management promotes research and
development to address changes in the market.
7. Provide innovation:
The systematic office is always adopting new changes. It has appropriate facilities for
research. It encourages and motivates the employee to work in new environment adopt
change. It helps for expansion and diversification.
8. Promote Leadership:
Leadership is the ability to change the behavior of other. A good office management provides
appropriate authority responsibility to staff on the basic of his/her ability. It promotes
systematic mechanism to develop one as a leader of business for future. It provides training
and development programmed to promote leadership.

References:
Khanal, Soma Raj, Surendra Thapa Aslami and Sitaram Dhakal.Business Studies.Kathmandu:
Taleju Prakashan, 2067.
Pant, Prem R., et al.Business Studies.Kathmandu: Buddha Academic Publishers and
Distributors Pvt. Ltd., 2010.

Note on Office Accommodation

Office Accommodation
Office accommodation refers to the selection of must appropriate office location, office
building and other facilities required for office. The appropriate office accommodation helps
to achieve a business objective. It supports employee for the successful accomplishment of
their duty. The office accommodation involves selection of office location, office building and
layout for office. The attractive office with all other required facilities will motivate the
employee to work. In other hands, inappropriate office accommodation brings difficulty in
performance and negative impact on an employee toward business. Therefore, the
management of business must be careful while making the decision of office accommodation.
The office accommodation consist of following factors:
1. Office Location
2. Office Building
3. Office Layout
4. Shape and size of office
5. Convenience to the staff and visitors
6. Physical condition of office
7. The cost of office accommodation etc.
Office Location
It refers to the selection of an appropriate location for business. Different nature and size of
business demand different location. The location of office affects the performance of
employee, availability of resource etc. The appropriate selection of office location may be an
inconvenience to the employees, visitor, customer and dealing with other business
organization. The location of the office is largely determined by nature of business for eg.
The big manufacturing industries are suitable in the area for from public resident whereas
consumer consumable stores (departmental store) are more suitable for public residential.
The following factor must b consider before selecting office location:
1. There must be the availability of all kinds of transport facilities.
2. There should have service facilities such as bank, post office, insurance, markets,
trade or stock exchange etc.
3. The office should be located near the sources of availability of labour.
4. There should be the healthy environment.
5. It is desirable to choose the location where the same line of business is engaged.
6. We must select must appropriate area where cost is minimum.
Office Building
Selection of must appropriates office building at a specific building. The selected office
building must be suitable to the nature and size of business. The office building can be
available through construction rent or lease. The team of management must consider
different factor before selecting building for an office. The following are important factor to
be considered while selecting office building:
 1. There should be safety and security of the office and the staff of the office.
2. There must be facilities of lighting, ventilation, water system, free from dust, noise,
smell etc.
3. The cost of the office must match with the budget of the office.
4. The office building must be flexible to append additional floor for future expansion
and requirement.
5. The building should meet the layout needs of machines, equipment, departments and
human resources.

Office Layout

Source: www.slideshare.net

The systematic arrangement of different facilities inside office area is called office layout. It
is the systematic and scientific management of machine, equipment, furniture and other
resources in the office to achieve a business objective. It arranges different facilities in order
to bring smoothness in work performance. It provides a smooth flow of work and motivates
an employee to work hard and better.
According to Hicks and Place,” Office Layout refers to the arrangement of a work station in
the space involve so that all equipment, supplies, procedure and personal can function at
maximum efficiency.
In conclusion, office layout refers to the scientific and systematic arrangement facilities
inside an office. It places different resource such as furniture, machine, and equipment at an
appropriate location. It allows free flow of work and free movement of an employee at work.
Office layout makes maximum utilization of office space and increases profit for business.
Principle of Office Layout
There is a certain factor that must be considered before designing the office layout. The basic
requirement like the free flow of work, appropriate space, effective supervision, service
facilities etc. helps to achieve office objective easily. The principle of office layout are as
follows:
1. Flow of work:
The office layout must allow the free flow of work. There should not be a time gap between
complision of one task and startup of another task. The employee must be able to work in
their job without any disturbance.
2. Sufficient work space:
Each workstation must provide sufficient space for an employee. To narrow work space
doesn’t allow an employee to complete their duty comfortably. On the other hand to wide
working space increase unnecessary cost for business in term of the grant.
3. Effective supervision:
Office layout must provide the facility of effective supervision all the employee and workers
must be guided and control at their workplace by their supervisor. It ensures the conformity
of work-related rules and regulation.
4. Flexibility and adaptability:
Office layout should be designed by considering the principle of flexibility and adoptability.
This principle says that the additional space should be available if an office is expanded. The
growth and development of business need additional office space. Therefore, it must be
available at required time.
5. Good lighting and ventilation:
It is the basic requirement that in an office there must e the facility of good lighting and
ventilation. An employee cannot perform their job in the absence of lighting and ventilation
facilities. Therefore, office layout should be designed in such a way that each space of office
will get appropriate quantity of lighting and ventilation.
6. Maximum utilization:
The different office space will cost different amount in the term of rent. Therefore, office
space must be utilized without lifting any part of space. The maximum utilization of office
space helps to increase profit and reduce the cost.
 7. Safety and security:
It is the main responsibility of office to protect its assets from any loss or damage. A scientific
office layout design reduces the possibilities of loss of a business asset. The asset of business
must be protected from fire, flood, water leakage, chemical leakage etc.
8. Service facilities:
The employee and visitor of office need different facilities such as water, restrooms, imitate
health, care health, telephone etc. from office. Therefore, office layout must be designed by
considering the facilities requirement from employee and visitor.

References:
Khanal, Soma Raj, Surendra Thapa Aslami and Sitaram Dhakal.Business Studies.Kathmandu:
Taleju Prakashan, 2067.
Pant, Prem R., et al.Business Studies.Kathmandu: Buddha Academic Publishers and
Distributors Pvt. Ltd., 2010.

Note on Objective and Importance of Office Layout

Objective of Office Layout

Source: www.slideshare.net

The objective of office layout is the ultimate output that an organization wants to achieve.
Office layout aims to achieve the smooth performance of official work. It helps to increase
the profit of any business organization. The objective of office layout are explained as below:
1. Utilization of floor space:
The office layout aims to make full utilization of office space available. It attempts to
minimize the wastages of office space. The scientific office layout design minimizes the cost
of office and increase profit for it.
 2. Smooth flow of work:
The office layout aims to bring efficiency in office operation. It attempts to reduce wastage
of time and effort of time. The good office layout smoothens the overall activities of the
organization and in turn, helps to reduce the cost.
3. Minimize risk:
Assets of the business are subject to the risk of loss by fire, accident and other damage. The
scientific office layout helps to minimize the possibility of risk to business property. It
protects office assets in a safe manner.
4. Maintain safety and security:
There might be different types of accident in business which may cause risk to health and
life of employees. The good office layout minimizes industrial accident and protects the life
of its employee. It safeguards the property of office as well.
5. Effective supervision and control:
Employees are to be regularly guided and controlled. The scientific office layout provides
facilities for effective supervision of employees and they are provided guidance and
assistance to improve their current performance.
6. Provide facilities to employee and customer:
Employee and customer need different facilities such as water, imitate health care, canteen,
rest room etc. The good office layout is easily escapable to all these facilities. It arranges
different facilities required in a systematic manner.
Importance of Office Layout

Source: www.slideshare.net

The following points highlight the importance of office layout:

 Proper utilization of floor space: Office layout assures the optimum utilization of
floor space. Office layout makes proper arrangement for human and physical
 resources which helps to utilize the floor space. Proper utilization of floor space
reduces operating office and administration costs.
 Effective supervision: Office layout helps the office manager to supervise the
activities of employees and departments in an easy and effective manner.
 Facilitates for inter-communication: Good office layout ensures effective inter-
communication among staff members and departments. Effective inter-
communication leads to successful office operations.
 Better use of office machines and equipment: The proper utilization of machines
and equipment is possible only through proper office layout. The office outlay
increases the utilization of the machines and equipment effectively. This will reduce
the operating cost of office and administration.
 Provides comfort and increases efficiency: Office layout provides comfort to the
employees in their work by creating a systematic layout of departments and physical
facilities.
 Gives favorable impression to customers and visitors: Effective office layout
develops a positive image of the office among the customers and visitors. It makes
outlook of office attractive and impressive.
 Smooth flow of work: Effective office layout ensures smooth flow of work. It helps
the manager to monitor and supervise the activities of his staff.
References:
Khanal, Soma Raj, Surendra Thapa Aslami and Sitaram Dhakal.Business Studies.Kathmandu:
Taleju Prakashan, 2067.
Pant, Prem R., et al.Business Studies.Kathmandu: Buddha Academic Publishers and
Distributors Pvt. Ltd., 2010.

Definition, Meaning & Characteristic of Organisation

Meaning of Organisation:
Organisation is the foundation upon which the whole structure of management is built.
Organisation is related with developing a frame work where the total work is divided into
manageable components in order to facilitate the achievement of objectives or goals. Thus,
organisation is the structure or mechanism (machinery) that enables living things to work
together. In a static sense, an organisation is a structure or machinery manned by group of
individuals who are working together towards a common goal.

Alike ‘management’, the term ‘organisation’ has also been used in a number of ways. broadly
speaking, the term ‘organisation’ is used in four different senses: as a process, as a structure
of relationship, as a group of persons and as a system, as given below:
Organisation as a Process: In this first sense, organisation is treated as a dynamic process
and a managerial activity which is essential for planning the utilization of company’s
resources, plant an equipment materials, money and people to accomplish the various
objectives.
Organisation as a Framework of Relationship: In the second sense organisation refers to
the structure of relationships and among position jobs which is created to release certain
objectives. The definitions of Henry, Urwick, Farland, Northcourt, Lansburgh and Spriegel
Breach, Davis, Mooney and Reily etc., come under this group. For example: According to
Mooney and Reily, “Organisation is the form of every human association for the attainment
of a common purpose.”
Organisation as a Group of persons: In the third sense, organisation is very often viewed
as a group of persons contributing their efforts towards certain goals. Organisation begins
when people combine their efforts for some common purpose. It is a universal truth that an
 individual is unable ability and resources. Barnard has defined ‘Organisation’ as an
identifiable group of people contributing their efforts towards the attainment of goals.
Organisation as a System: In the fourth sense, the organisation is viewed as system. System
concepts recognize that organizations are made up of components each of which has unique
properties, capabilities and mutual relationship. The constituent element of a system are
linked together in such complex ways that actions taken by one producer have far reaching
effect on others.
In short, organizing is the determining, grouping and arranging of the various activities
deemed necessary for the attainment of the objectives, the assigning of people to those
activities, the providing of suitable physical factors of environment and the indicating of the
relative authority delegated to each individual charged with the execution of each respective
activity.

Definitions of Organisation
Different authors have defined organisation in different ways. The main definitions of
organisation are as follows:
 According to keith Davis, “Organisation may be defined as a group of individuals, large of
small, that is cooperating under the direction of executive leadership in accomplishment of
certain common object.”
 According to Chester I. Barnard, “Organisation is a system of co-operative activities of two
or more persons.”
 According to Louis A. Allen, “Organisation is the process of identifying and grouping the work
to be performed, defining and delegating responsibility and authority, and establishing
relationship for the purpose of enabling people to work most effectively together in
accomplishing objectives.”
 According to Mooney and Railey, “Organisation is the form of every human association for
the attainment of a common purpose.”
Characteristics / Features of Organisation
The main characteristics or Features of organisation are as follows:
Outlining the Objectives: Born with the enterprise are its long-life objectives of profitable
manufacturing and selling its products. Other objectives must be established by the
administration from time to time to aid and support this main objective.
Identifying and Enumerating the Activities: After the objective is selected, the
management has to identify total task involved and its break-up closely related component
activities that are to be performed by and individual or division or a department.
Assigning the Duties: When activities have been grouped according to similarities and
common purposes, they should be organized by a particular department. Within the
department, the functional duties should be allotted to particular individuals.
Defining and Granting the Authority: The authority and responsibility should be well
defined and should correspond to each other. A close relationship between authority and
responsibility should be established.
Creating Authority Relationship: After assigning the duties and delegations of authority,
the establishment of relationship is done. It involves deciding who will act under whom, who
will be his subordinates, what will be his span of control and what will be his status in the
organisation. Besides these formal relationships, some informal organizations should also
be developed.
Importance / Need / Advantages / Significance of Organisation
The well-known industrialist of U.S.A. late Andrew Canrnegi, when sold his famous ‘United
State Steel Corporation’, showed his confidence in organisation by uttering the following
words, “Take away our factories, take away our trade, our avenues of transportation, our
money, leave nothing but our organisation, and in four years, we shall re-established
ourselves.” Since ages and in every walk of life, organisation has been playing a vital role. The
significance or main advantages of organisation are as follows:
It Facilitated Administration and management: Organisation is an important and the only
tool to achieve enterprise goals set b administration and explained by management. A sound
organisation increases efficiency, avoids delay and duplication of work, increases managerial
efficiency, increases promptness, motivates employees to perform their responsibility.
It Help in the Growth of Enterprise: Good organisation is helpful to the growth, expansion
and diversifications of the enterprise.
It Ensures Optimum Use of Human Resources: Good organisation establishes persons
with different interests, skills, knowledge and viewpoints.
It Stimulates Creativity: A sound and well-conceived organisation structure is the source
of creative thinking and initiation of new ideas.
A Tool of Achieving Objectives: Organisation is a vital tool in the hands of the management
for achieving set objectives of the business enterprise.
Prevents Corruption: Usually corruption exists in those enterprises which lack sound
organisation. Sound organization prevents corruption by raising the morale of employees.
They are motivated to work with greater efficiency, honesty and devotion.
Co-ordination in the Enterprises: Different jobs and positions are welded together by
structural relationship of the organisation. The organizational process exerts its due and
balanced emphasis on the co-ordination of various activities.
Eliminates Overlapping and Duplication or work: Over lapping and duplication of work
exists when the work distribution is not clearly identified and the work is performed in a
haphazard and disorganized way. Since a good organisation demands that the duties be
clearly assigned amongst workers, such overlapping and duplication is totally eliminated.
Sound or Good Organisation
Organisation is not an end it itself but a means to achieve an end. Whether an organisation
is good or bad depends on the fact as to how much efficiently and promptly it is in a position
to achieve the objectives. An ideal organisation is one which is expected by all. Some people
think that an ideal organisation stands in a dream only and actually it does not exist.
However, it is a wrong concept. An ideal organisation is a reality which can be achieved
through the active cooperation of all the members of an organisation and also by following
the principles of organisation is not an exact science as physics and chemistry. though a
sound organisation is mainly based on the active cooperation of all the members of the
organisation and on certain principles but also it is based on the capabilities of the
individuals available to work along with its simplicity and flexibility. An organisation
conceived and developed on the above lines will reward its leaders and well as its members
(Personnel). Not only will the objectives be achieved more easily, and conveniently, but the
physical operation of the organisation will also be greatly enhanced. Thus, a sound or good
or ideal and result-oriented organisation must posses the following characteristics.
Realization of Objectives: Organisation is tool of achieving objectives of an enterprise. For
this purpose, the organisation should be divided in several department, sub-departments,
branches and units etc.
Harmonious Grouping of Functions etc: For achieving the organisation objectives there
must be harmonious grouping of functions, jobs and sub-jobs in such a way so that there is
action, consultation and co-ordination without any delay and difficulty.
Reasonable Span of Control: Another characteristic of organisation is that it should have
reasonable span of control. Ordinarily, a person (personnel) cannot control more than five
or six subordinates.
Clear-cut allocation of Duties and Responsibilities: There must be clear-cut allocation of
duties and responsibilities in any scheme of sound organisation. Every executive must know
his scope of activities, the ideal number is three.
Promotion of Satisfaction: The most important element of any human organisation is the
promotion of satisfaction of workers. Man works in a group or in an organisation and hence
the success or failure of any organisation depends on as to how much the organisation is in
a position to provide satisfaction to individuals or group working under him.
Fullest Utilization of Manpower: Another important characteristic of an ideal organisation
is as to how far it is successful in making fullest and economical utilization of the available
manpower.
provision and Development and Expansion: Another important of an ideal organisation
is that there exists the necessary provision for development and expansion so that it is
possible to expand and develop any organisation according to needs and requirements and
necessary changes an alternatives may be made.
Coordination and cooperation: In order to achieve the objectives of the enterprise, there
must be close coordination and cooperation in the activities of everybody working in the
organisation. Further, there should also be active coordination and cooperation amongst the
various departments an sub-departments. It will also assist in elimination the evil of red
tapism.
Unity of Command: There must be unity of command. No one in any organisation should
report to more than one line supervisor, and everybody must know to whom he reports and
who reports to him. No subordinate should get orders from more than one supervisor,
otherwise it will lead to confusion, chaos and conflict.
Effective System of Communication: An ideal organisation must possess effective system
of communication. The inter-communication system should be clear and easier and there
should be no ambiguity at and level.
High Morale: An ideal organisation is that in which the workers possess high morale. They
work with full capacity, energy, enthusiasm, devotion and sincerity.
Flexibility: The last but not the least important characteristic of an ideal organisation is that
it should be flexible so that necessary changes an modifications in the the size of the
organisation as well as technology could be easily and conveniently effected.
Principles of Organisation
There is no unanimity as to number of principles of organisation amongst the leading
authors on the subject. L.K. Urwick, in his paper ‘Scientific Principles of Organisation’ (1938)
and ‘Notes on the Theory of Organisation’ (1952) prescribed ten principles of organisation.
Thereafter, many other writers on the subject have added a few more principles of
organisation. The main principles of organisation are as follows:
The Principle of Objective
Every enterprise, big or small, prescribes certain basic objectives. Organisation serves as a
tool in attaining these prescribed objectives. Every part of the organisation and the
organisation as a whole should be geared to the basic objective determined by the enterprise.
Principle of Specialization
Precise division of work facilitates specialization. According to this principles division of
work between the employees must be based on their ability, capability, tasks, knowledge and
interest. This will ensure specialization and specialization will lead to efficiency, quality and
elimination of wastage etc.
The Scalar Principle
The principle is sometimes known as the ‘chain command’. There must be clear lines of
authority running from the top to the bottom of the organisation.
The Principle of Authority
Authority is the element of organisation structure. It is the tool by which a manager is able
to create an environment for individual performance.
The Principle of Unity of Command
One subordinate should be kept in the supervision of one boss only. This principle avoids the
possibility of conflicts in instructions and develops the feeling of personnel responsibility for
the work.
The Principal Span of Control
It is also known as ‘span of management’, ‘span of supervision’ or ‘levels of organisation’, etc.
The Principle of Definition
The contents of every position should be clearly defined. The duties, responsibilities,
authorities and organizational relationship of an individual working on a particular position
should be well defined.
The Principle of the Unity of Direction
The basic rationale for the very existence of organisation is the attainment of certain
objectives. Major objective should be split into functional activities and there should be one
objective and one plan for each group of people.
The Principle of Supremacy of Organisation Objectives
The organisation goals and objectives should be given wide publicity within the organisation.
The people contributing to it, should be made to understand that enterprise objectives are
more valuable and significant and one should place one’s personal motives under it.
The Principle of Balance
In every organisation structure there is need for balance. For effective grouping and
assigning activities, this principle calls for putting balance on all types of factors human,
technical as well as financial.
The Principle of Human Element
This principle indicates that the success or failure of an enterprise largely depends on the
handling of human element. If the organisation has sound labor policies along with a number
of welfare activities it is bound to succeed.
The Principle of Discipline
According to his principle, it is the responsibility of the management to maintain proper
discipline in the enterprise. Fayol considered discipline as ‘respect for agreements which are
directed at achieving obedience, application, energy and outward mark of respect.”
Steps in the Process of Organisation
Organisation means identifying, arranging and integrating different elements of organisation
into efficient working order. It requires the management to follow the following process of
organisation.
Division of work
The main function is divided into sub-functions and entrusted to the different departmental
heads. The result is the establishment of departments like Purchase, Sales, Production,
Accounts, Publicity and Public relations. The departments can be further classified just as
production department into (1) Planning (2) Designing, (3) Operations, (4) Production
Control and (5) Repairs and Maintenance. The division of the work is based upon the fact
that specialization is keynote of efficient organisation.
Grouping of Job and Departmentation
The second step is to group similar or related jobs into larger units, called departments,
divisions or sections. Grouping process is called departmentation.
The department may be based upon functions such as manufacturing, marketing and
financing etc. Department may also be based on products, such as textiles, cosmetic,
stationery etc. These departments may have different sections as per requirement.
Grouping jobs or Departmentation aims at achieving coordination and facilitates unity of
efforts. The departments are linked together on the basis of interdependence. The divided
task is assigned to specific individual or group of individuals who are supposed to be the
most qualified and specialized persons for the task.
Assigning duties
The work to be performed by every individual is clearly defined and made known to him.
Every one must know, what he is required to do in order to avoid any misunderstanding,
duplication or overlapping in the work.
Granting authorities and fixing responsibilities
Assigning of duties to individuals must coincide with the appropriate and relevant
authorities. Every employee must know, what the authorities granted to him and for what
and to whom he will be responsible, liable and accountable.
Delegation of authority
Those who are made responsible for specific tasks are given due authority. Both
responsibility and authority go hand in hand together. Reasonable powers are delegated to
heads and supervisory staff to enable them to do their work with ease and efficiency.
Effective communication
Effective communication is the keynote of efficient organisation. There should be proper
arrangement of communication messages from executives to subordinates and vice-versa.
Proper communication system establishes harmonious relationship between employees and
enables execution of work in the right manner at the appropriate time and in an atmosphere
of perfect mutual adjustment.
Co-ordination of activities for common objectives
Business activity is a team work or the group activity, so the efforts of every employee must
be co-ordinate effectively to achieve the common objectives of the enterprise.
Structure of Organisation
In order to achieve the desired goals, sound and effective organizational structure is
necessary. Organizational structure, as we know is the system of job positions, roles assigned
to these positions and specifying authority, responsibility and task of every positions. The
structure undoubtedly provides basic framework for executive and employees to perform
their task smoothly. The following points must be taken into consideration while building
organizational structure.
Considerations for Building Organizational Structure
Job design
Jobs should be designed in such a way, that job should have specified and defined task to be
performed. Jobs should be designed in such fashion that every individual could contribute
his maximum worth to the enterprise. The major and related activities of the jobs should also
be specified.
Departmentation or Grouping of Identical Jobs
Identical and similar jobs should be grouped together in a department and placed under a
departmental head. Such departmentation will help in building coordination between
different jobs and managers. Departments can be established on different basis. It may have
production, marketing and finance departments, if it is based upon functions.
Span of Control
Under span of control, the number of employees and jobs managed by each manager is
specified. The chain of command is also clearly stated. It is specified that who will report
whom is the smooth performance of his duties. Effective span of control avoids overlapping,
duplication and confusion in the work.
Delegation of Authority
In order to get the job done properly and smoothly, requisite authorities are granted to the
managers. Authority is the power to command employees and instruct them to do a piece of
work. The authority empowers to know certain facts, to enjoy privileged position and
command respect and obedience from employees. Delegation is no doubt, sharing task with
requisite authority with subordinates. As such the manger multiplies himself through
delegation.
(A) Functional Structure of Organisation
Grouping together the entire work into major functional departments and entrusting these
departments to functional specialists is known as functional structure of organisation. Each
major function of the enterprise is organized as a separate department. These departments
may be engineering, production, personnel, finance and marketing in a manufacturing
company. If it is retail stores, these departments may be purchase, sales and stores etc as per
requirement. The names of the departments can change as per the requirements, nature and
size of the enterprise.
Major functions of the enterprise differ from each other on account of technicalities involved,
specialized education and training needed. However, these functions have common goal of
achieving maximum efficiency to maximize overall returns of the enterprise. The functional
heads are provided functional authority over the subordinates under their command.
Functional organisation is the developed form of Taylor’s functional foremanship. In
practice, modern functional organisation is restricted to top level of the organizational
structure and not carried down to the lowest level as recommended by Taylor.
Functional structure of organisation is extensively used these days by almost every
enterprise at different levels. The sales, production, finance and marketing functions are so
widely recognized that almost every enterprise uses it as the basis of Departmentation.
 Functional Organisation Structure diagram.
(B) Divisional Structure of Organizations
Grouping of activities or Departmentation on the basis of product lines and areas is known
as divisional structure of organisation. Divisional structure has been finding favor with the
multiple large scale enterprise. Under this structure the top level delegates extensive
authorities to the divisional heads. The divisional head is the in charge of the manufacturing,
purchase, sales, engineering and other departments of the division under his command. He
is also made responsible for the profit or loss of his division.
Product and product line is an important basis for Departmentation. It facilitates the use of
specialized and specialist services of the divisional managers in their product line. He can
use his personal skill and his specialized knowledge for the development of his department.
Organizations having their business all over the country may adopt divisional structure on
the basis of area, such as north division, south division, east, west and central division. The
organisation structure of LIC and Railways is also upon divisional structure.
The manufacturing enterprise producing variety of goods may have different division for
different products such as textile division, plastic division, stationary division etc.
Related Articles:
1. Main Differences between Line Organisation and Staff organisation in Office Management
Importance of record management
1. Preservation of record
It helps in management and control of important records. It helps to protect necessary
records with care and disposes useless records.
2. Evaluating progress
It helps in evaluating progress of organization. It helps in preservation of history of
organization. The past records shows direction to organization. It helps in finding out the
weakness and strength of organization. Record management gives the account of progress
and direction in which organization is going on.
3. Facilitate comparison
Record management helps to evaluate business progress and performance. It helps in
comparison between one period of time and another or between same times of business.
4. Helpful in decision making
Records are the memory of business. It is useful for future decisions making process. The
study of past records shows direction for future. It supplies information to organization
whenever it is needed. Therefore, it helps in taking decisions.
5. Efficiency in operation
Record management helps to provide required information with speed and accuracy. It helps
to make office work efficiently and effectively. It helps to increase efficiency of the office.
6. Evidence
Records acts as an evidence in the time of dispute. It is important for the settlement of
dispute. It can be shown as proof in court.
Concept of record management
Record management is the area of office management which deals with the maintenance of
records of organization. It is very important for management for control of records. It is an
art of handling and maintaining office records from the time of creation to disposal. The
records are systematically maintained to preserve for future use. Record management refers
to the activities designed to control the life cycle of a record.
Stages of record management
1. Creation of records
It is the first stage of record management. It is the most important stage. In this stage records
are either created inside the organization or are received from outside the organization in
form of letters or notices.
2. Storage of records
It is the second step of record management. Once records are created they must be retained
or protected. This stage is also known as retention of records. It is the preservation of records
for future reference. The records are recorded in such a way so that it can be easily located
in the required time.
3. Use of records
It is the third stage of record management. In this step the stored records in the past are used
for planning, organized, deciding, and preparation of accounts and so on.
4. Disposal of records
It is the fourth and last stage of record management. Records cannot be stored forever.
Outdated records must be destroyed or disposed.
Importance of filing
1. It helps in increasing efficiency of office because filing helps in providing records in
required time to make quick decisions
2. Filing helps in protection of important documents from fire, dust, insects, theft and
mishandling.
3. Previous records are base of past records and they are used as a immediate reference.
4. It helps in documentation of proof and legal evidence in the time of disputes
5. It helps in formulation of future planning
6. It helps in providing legal proofs to fulfill legal formalities
7. It helps in handling customers and correspondence carefully to maintain the goodwill of
the office
8. It helps in taking feedback.
Meaning of filing
It is the process of classifying, arranging and storing record so that they can be located when
required. It is also the process o collecting and arranging records or their copies in such a
way so that whenever it is needed it could be found very easily. All office receives letters and
dispatches that are kept for the future use. They are to be stored in a safe place. For that filing
is required. It is an important part of management that helps to decide about anything in a
legal and systematic way. It is the process of arranging and protecting records so that they
may be found and delivered easily when needed for future.
Purposes:
1. It helps to keep all records together so the history of office can be understood.
2. It helps to provide safety place for storage of necessary documents in order to use and
locate then when required.
3. To make records readily and easily available.
4. It can be used as evidence in case of dispute
5. It helps in some legal formalities.
6. It is shown as profit or legal evidence.
7. It can be presented as a legal document in court.
8. It helps to make future plans. Past records are the base of future records
Types of records
1. Correspondence records
Correspondence records may be created inside the office or may be received from outside
the office. For example, letters, circulars, memos, notices etc.
2. Accounting records
The records relating to financial transactions are known as financial records. For example,
cash receipt, deposit slip, sales records, profit or loss statement, vouchers, balance sheet etc.
3. Legal records
The records that meet the legal requirement of the organization are called legal records.
They maintain the legal procedures and help in fulfilling the legal requirements and
formalities. There documents involve memorandum of association, articles of association,
government rules and regulation etc. it can also be presented at the court.
4. Personnel records
The records that are related to personnel of organization is known as personnel records. It
includes personnel history card, salaries and bonuses to employees, their promotion and
work history, history of absenteeism, name, address morality etc.
5. Progress records
The record that gives the information about the progress of the organization or department
is called progress records. It includes the records of sales, purchases, cost, budget, liquidity
and so on.
6. Miscellaneous records
The records which are not covered by above types of records are known as miscellaneous
records. They are related to expansion, diversification and other activities of the business.
Office machine
The rapid increase in the industrial activities has increased office work to the highest level.
The machines were invented to reduce monotony and increase the efficiency of works done.
They help to save time and labor. In modern offices, business completely depends upon the
office machine and equipment. It increases the level of operation, improves the
performances, safeguards the files, and increases the accuracy. Purchase, repair and
maintenance of office machines require big investment. It is the duty of office manager to
select the right type of machine. If they don’t select it properly then the office work won’t be
efficient and effective.
Importance of office machine
1. To save labor: properly designed office machine saves labor. It helps in saving labor
cost. Machines work faster than men. Total wage bill can be reduced.
2. To save time: machines work faster than men. The office machine helps to save time. The
speed of official work is increased with the help of machine. It helps in completion of work
in a faster way. It increases efficiency and effectiveness of work.
3. To provide accuracy: office machines works accurately. It increases in accuracy in all
types of works. It reduces the error, fatigue and helps in supervision.
4. To reduce chance of fraud: there may be barratry inside the organization. Machines help
to check for the accuracy and correct method of works done it also keeps systematic
records of all employees. Thus, it helps in reducing the fraud.
5. To retrieve monotony of work: some jobs are routine in nature. They are repetitive in
nature. Repetitive works are monotonous. Office machine s help in retrieving the
monotony of the employees
6. To improve quality of work: office machines help to maintain the neatness, accuracy
and quality of work done.
7. To increase goodwill: when there is saving of labor and time and increment of accuracy
of works done, then there is less chances of errors and fraud which improves the quality
of work done and helps in satisfaction of customer and the employees. This helps in
increasing the goodwill of the office
8. To lower operating cost: office machines reduce the operational cost. It helps to reduce
the wage bill. It also helps in reducing the excessive filing cost.
Retention and disposal of records
Retention
Retention is defined as the preservation of records for future reference. It involves collection,
preservation, classification and protection of records for future reference. It is maintained in
files, computers etc. Every record has a life span. It is protected according to its importance.
Retention of record depends upon nature of organization.
 Importance
 Records are preserved for future reference. The records should be accurate because
human mind may forget the information but recording the records is perpetual
 Hearsay records cannot be taken as record. Real records and hard copy of records should
be maintained that will be helpful in the time of legal disputes.
 Human minds cannot store all the information in their brain therefore records are to be
maintained. They help in future reference.
 Records provide various types of information which help in making decision
 Retention helps to delete errors in a record.
 It helps in making comparison
Procedure of record retention
1. Classification of records
It helps to determine the value and volume of all the records. It classifies the records
according to its importance and usefulness
2. Determination of record retention schedule
It helps in development of retention schedule. The retention period should be pre
determined. The period depends on usefulness and legal requirement
3. Transfer of records
It means transferring of records from active file to inactive files. It is useful because the less
important files are transferred. The inactive records are shifted to least expensive storage
area.
4. Protection of vital of records
The important records must be protected. They should be protected from firing, damage by
water, dust, insects etc.
5. Destruction of records
The useless records are destructed. The records which have values are stored and others are
disposed. This helps in creating space
Disposal of records
Once created and used records must be destroyed. The destruction of useless records is
called disposal. The records are not retained forever. Office manager must wisely dispose all
unnecessary ad useless records. It helps in creation of space.