Lesson 3

 OFFICE MANAGEMENT
Office Management is the technique of planning, organizing, coordinating, and
controlling office activities with a view to achieve business objectives and is concerned
with efficient and effective performance of the office work.

Definition of Office Management

Office management is a profession involving the design implementation, evaluation,

and maintenance of the process of work within an office or other organization, in order
to sustain and improve efficiency and productivity. Office Management is a part of
general management.

Definition of Office Management

Office management can be defined as a task of planning, coordination, motivating the
efforts of others towards the specific objectives in the office.

“Office management, as a function, is that branch of the art and science of

management which is concerned with efficient performance of office work whenever
and wherever that work is to be done.” – William If. Leffingwell and Edwin M. Rot

“Office management is manipulation and control of men, methods, machine and

material to achieve the best possible results-results of highest possible quality with the
expenditure of least possible effect and expense, in the shortest practicable time, and
in a manner acceptable to top management.” – Harry H. Wylie

This definition stresses the utilization of resources of business like material, methods,
etc. to achieve the objectives and results in a best and cheapest way and in a minimum
possible time.

“Office management is the art of guiding the personnel of the office in the use of means
appropriate to its environment in order to achieve its specified purpose.” -Mills and
Standinhford.

According to this definition, a proper understanding of the objective purpose is

necessary so that all efforts and activities are directed in its achievement. Environment
where office work is to be performed is provided by management after proper planning.
Environment means surroundings where employees on an enterprise operate.

Principles of Office Management

Good office management depends on people knowing who is responsible for what – it is
people who are accountable who get things done. For good office management, you
need to be sure that all the things in the office are arranged for maximum efficiency –
and maximum safety.

1. Establish Office Management Routines and Stick to them: Set up routines for handling
paperwork and office systems.
2. Set up Clearly Delineated Responsibilities: Good office management depends on
people knowing who is responsible for what - it is people who are accountable who get
things done. Putting one person in charge of ordering all equipment and supplies solves
the problem and keep things running smoothly.

3. Keep Records – and Keep your Business Records Updated: Keeping records sounds like
easiest part of good office management – until you consider the need to keep those
records both accessible and updated. When you get a new customer or client, for
instance, it only takes a moment to enter him into your contacts database. Then it will
only take another moment or two to update the record after you have spoken to him
on the phone.

4. Take a walk through your Office and have a sit. Is your office an example of space
management or space management? When you walk through the office, do you have to
detour around obstacles or run the risk of tripping over something? When you sit down
at a desk, could you actually work comfortably there? Are things logically arranged so
that the things that you would use most at the desk are closest to hand? For good office
management, you need to be sure that all the things in the office are arranged for
maximum efficiency – and maximum safety.

5. Schedule the Scut Work: Unfortunately, an office, like kitchen, will not function well
without a certain amount of scut work being done. If you are a small business owner
who’s in the position of not being able to assign whatever you view as scut, work for
someone else, force yourself to get it regularly by scheduling time each calls for
catching up on the accounting.

6. Delegate and Outsource: Delegating and outsourcing can not only improve your small
businesses office management, but free your focus on your talents as well, thereby
improving your bottom line. Virtual Assistants can handle many of your office or
administrative tasks.

7. Make Business Planning a Priority: Business planning is an important component of

good office management and needs to be a part of your regular office management
routine. Successful small business owners spend time every week on business planning,
and many use daily business planning sessions as a tool for goal setting ad growth. If
you have staff, involve them in business planning, either formally or informally.

Importance of Office Management

Factors That Make Management Important

1. The Volume of office work is rapidly increasing. Knowledge should be readily

available in the form of records, for reference, study, updating and even deletion if
obsolete. Office records have to be created and preserved efficiently.

2. Increase in Business. Office work assumes greater importance in the context of

shrinking boundaries in business and trade. Globalization has led to the virtual
demolition of trade barriers. Global competition in quality and costs has led to the
importance of allied work.

3. The variety of information and sources that are scattered. All information relevant
to business will not be uniform or from limited sources only. Today, information has to
be sought from a widely varied sources scattered all over the country or the world.
Information will also be varied.

4. Expansion of business – the new drive. Business is expanding quantitatively as well

as qualitatively. Today, there is an intensive drive by every business to expand and
branch off. The same company may enter a wide variety of business and launch new
ventures.

5. Business becoming more public. Offices assume greater importance because many
private limited companies have chosen to go public to mobilize capital and resources.
Merchant baking has assumed great importance and the entire activity depends on well
managed office work.

6. Need for Planning. No business in the modern competitive world can survive without
thinking futuristically. A comprehensive plan is essential for current operations as well
as the future profile of the concern. A well-organized office makes it possible for the
management to plan its operations intelligently, to put its plan into effect, to follow
their progress currently, to determine their effect promptly, to appraise the results
critically, and to coordinate and control all activities.

7. Need for effective control. Offices assume greater importance because there is a
great need for higher control of all organizational activities like finance, production,
marketing etc.

8. The techniques of management. The concept of Overseas Business Process

Outsourcing, are assuming global significance. Highly skilled, technically qualified
people have taken over office functions and management.

The enormous increase in electronic machines, computers has given greater

significance and importance to office management. Automation is the in thing in
modern office management.

9. Lucrative office jobs. Though there is widespread criticism of the growth in the
number of office workers, the phenomenon is bound to continue for two reasons. The
lure for the white collared job and the sophistication reached in office functions will
attract more people to office jobs of a wide variety. This human factor plays an
important role.

Factors that make Office Management Important

1. Rapid increase in the volume of work related to information and records.

2. Increasing volume of business cutting across trade boundaries and national
boundaries.
3. Increase in the variety of information required.
4. The source of information scattered over a large area all over the world.
5. Expansion of business in volume, quality and competitiveness.
6. More public participation in business which was exclusive to businessmen only.
7. The ever increasing need for planning to meet new challenges.
8. the need for tighter control of all business activities.
9. New and sophisticated techniques of management.
10. The human factor of ever increasing number of office workers with special skills

Elements of Office Management

Elements of office management are termed as pillars of the building. If pillar is strong,
certainly, the building, is also strong. Hence, efficient functioning of office
management is based on the elements of office management. Following are the
essential elements of office management.

Personnel. Office personnel are actually performing the office work.

Means. Refer to tools used to perform the office work.
Environment. A working environment is created and maintained for the smooth
performance of office work.
Purpose. The Office personnel must be aware of the purpose for which a particular
work is carried on and the impact of such work on others performance.

Functions of Management

Planning. It is the determination of a course of action

to achieve a desired result. Planning concentrates on
setting and achieving objectives of an organization. It is
an intellectual Process. It is characterized by thinking
before doing. “Planning is deciding in advance what is to
be done.” Planning involves projecting the future course
of action for the business as a whole and also for
different sections within it. Planning is thus the
preparatory step for actions and helps in bridging the gap
between the present and the future.

Organizing. According to Louis A. Allen,

“Organization is the process of
identifying and grouping the work to be
performed, defining and delegating
responsibility and authority, and
establishing relationships for the
purpose of enabling people to work most
effectively together in accomplishing
objectives.”

According to Liver Sheldon,

“Organization is the process of
combining the work which individuals and groups have to perform with the faculties
necessary for its execution that the duties so formed provide the best channels for
efficient, systematic positive and coordinated application of the available effort.”

Steps in Organization
 Identification
 Grouping of Activities
 Assignment of Duties
 Delegation of Authority
 Fitting individuals
 Staffing. Staffing is concerned with the
recruitment, selection, placement, training,
growth and development of all those members of
the organization whose function is to get things
done through efforts of other individuals. After
determining the number and type of personnel to
be appointed to fill different jobs management
starts recruiting, selecting the training the
people to fulfill the requirements of the
enterprise. According to Franklin Moore,
“Staffing is a forward looking activity because
tomorrow keeps becoming today. Attrition
constantly reduces executives ranks through
retirement, death, resignations and occasional dismissal; so young men keep moving
up. Besides this, most enterprise grow, providing new opening for managers.”

Directing. Directing is the managerial function of

guiding, inspiring, instructing and harnessing
people towards the accomplishment of desired
results. It is the part of the management process
which actuates the members of an organization
to work effectively and efficiently for the
achievement of the goals. Direction in the words
of Koentz and Q’ donnel, “the interpersonal
aspect of managing by which subordinates are led
to understand and contribute effectively and
efficiently to the attainment of enterprise
objectives.” According to Haimann, “Directing consists of the process and techniques
utilized in issuing instructions and making certain that operations are carried on as
originally planned Directing is the process around which all performance revolves. It is
the essence of operations, and co-ordination is a necessary by product of good
managerial directing.” Directing consists of the following steps:

1. Issuing orders and instructions to subordinates.

2. Guiding and teaching the subordinates the proper method of doing work;
3. Supervising the work of subordinates to ensure that it conforms to plan;
4. Motivation of subordinates by providing incentives.

Motivating. The term motivation has been derived from the word motive. Motive is
anything that initiates or sustains activity. It is an inner state that energizes, activates
or moves and that directs or channels behavior towards goals. Motive is a psychological
force within an individual that sets him in motion. According to Breech, “Motivation is
a general inspirational process which gets the member of the team to pull their weight
effectively, to give their loyalty to the group, to carry our properly the tasks that they
have accepted and generally to play an effective part in the job that the group has
undertaken.” The important task of office management is to motivate employees so
that they may direct their efforts towards the accomplishment of organizational goals.

Motivating may be achieved by:

1. Providing inducements and incentives to employees;
2. Keeping morals high;
3. Satisfying the needs of the employees.

Co-coordinating. According to Lundy, “Co-ordination involves the development of unity

of purpose and the harmonious implementation of plans for the achievement of desired
ends.” According to Mooney and Reiley, “Orderly arrangement of group efforts to
provide unit of action in pursuit of a common purpose. “Thus coordination may be
achieved by:

1. Simplified organization.
2. Harmonized program and policies.
3. Well-designed method of communication.
4. Voluntary cooperation.
5. Coordination through supervision.
6. Clear cut objectives.
7. Clear definition of authority and responsibility.

Controlling. To control is to determine what is being accomplished; that is to evaluate

performance and, if necessary, to apply corrective measures so that performance takes
place according plan. After the plans are put into action, there can be several hurdles
in the achievement of goals. Results may fall short of targets. Direction may be faulty.
Therefore, management must find out what is going wrong, what changes in plans and
directions are required and what must be done to set things right. This is the function
of control.

Basic elements of the control process:

1. Establishment of standards of objectives.
2. Measurements of actual performance.
3. Comparing actual performance against the standard set.
4. Determining the reason for deviation.
5. Taking corrective action.
6. Feedback.

Communication. Communication is a means by which different persons are linked

together in a group or organization to attain a common goal. No group activity is
possible without communication. It enables the members to coordinate, to exchange
and to make progress. A good communication should aim at making everyone concerned
aware of the goal which the organization wants to achieve.

The two main objectives of communication are to inform and to persuade.

Communication is essential for effective control and motivation.