DEFINING MANAGEMENT

Several definitions of management have been advanced but because of the

complex nature of management no one definition has been universally accepted.

The simplest definition of management was given by Mary Parker Follet.

She defined management as "the art of getting things done through people". From
this definition we see that managers achieve organizational goals by arranging for
others the necessary tasks to be performed to achieve the goals of the organization,
hence they do not do the work themselves.

Management has also been defined as the process of planning, organizing, leading
and controlling the efforts of organizational members and using all other resources
to achieve stated organizational goals.

A process is a systematic way of doing things so management is systematic.

Planning means that the actions of managers are based on some method, or logic
organizing means that manager’s co- ordinate the human and non-human resources
in order to achieve goals.
Leading describes how managers direct and influence subordinates by establishing
the proper atmosphere for doing tasks. Controlling means that managers select the
right objectives i.e. select the right things to be done.
This definition says that management involves attainment of stated goals. This
means the manager’s work is aimed at specific goals or ends.

A third definition
defines management as a process of grouping together organizational
material
and human resource activities and directing them to use the scarce resources
efficiently and effectively in order to achieve the organizational and individual
goals and objectives.

Therefore management work involves activity - managers do not sit around all day
and think. They talk, listen, read, write, meet, observe etc. However most of their
activities are either of planning, organizing, staffing, directing or controlling.

It’s the organization and coordination of the activities of a business to achieve

defined objectives.
It contains of the interlocking functions of creating corporate policy and
organizing, planning, controlling and directing an organisations resources in order
o achieve the objectives

It is an act of managing people and their workfor achieving a common goal by

using the organisations resources. It creates an environment under which the
manager and his surbordinatescan work together for the attainment of group
objectives.

From the definitions it comes out very clearly that management has the
following characteristics.
i. It is complex
Managers are engaged in many different activities. Sometimes they must do all
these activities concurrently or change them frequently.

ii. It is persuasive
It touches many areas and aspects of human activity. For example, it is applicable
in many situations be they social, political or economic and it has enormous effects
on society. Management is also practised in all institutions that involve group
work.
For management to be successful it must achieve both (efficiency and
effectiveness). But while efficiency is important, effectiveness is critical and no
amount of efficiency can compensate for lack of effectiveness.

iii. universal
all the organisations, whether profit making or not they require management for
managing their activities

iv. Goal oriented

every organisation is set up with a predetermined objective and management helps
in reaching those goals timely and smoothly.

v. continuous process
it is an on-going process which tends to persist as long as the organisation exists.
It is required in every sphere of the organisation whether it is production, human
resource, finance or marketing.
vi. Mult-dimensional
management is not confined to the administration of people only, but it also
manages work, processes and operations which makes it a multiple disciplinary
activity.

vii. Group activity

an organisation consists of various members who have different needs,
expectations and beliefs. Every person joins the organisation with different motive,
but after becoming a part of the organisation, they work towards achieving the
same goal.
It requires supervision, teamwork and coordination, and in this way, management
comes in the picture.

viii. dynamics function

an organisation exists in a business environment that has various factors like social,
political, technological, legal and economic.
A slight change in any of these factors will affect the organisation’s growth and
performance.
To overcome these changes management formulates strategies and implements
them.

ix. intangible forces

management can neither be seen nor touched but one can feel its existence in the
way management functions.

All the functions, activities and processes of the organisation are interconnected to
one another.
It’s the task of the management to bring them together in such a way that in
reaching the intended results.

MANAGEMENT AS A SCIENCE
For any branch of knowledge to be considered a science, it should fulfill the
following:
a). Should have a systematic body of knowledge with its own principles
(independent).
b). The principles have to be evolved on the basis of constant inquiry and
examination (research).
c). The principles must explain a phenomenon by establishing a cause-effect
relationship.
d). The principles should be available for verification to be universally acceptable.
Management as a discipline fulfills the above because:
i) It has emerged as a systematic body of knowledge with its own
principles.
ii) The application of these principles helps any practicing manager to
achieve the desired goals.
iii) (Management is dynamic because it has borrowed heavily form other
disciplines to help solve management problems, disciplines e.g.
Psychology,
Sociology, Philosophy, Religion, Economics.

NB: Management cannot be viewed as an exact science but rather inexact science
because of the following:-
i) By definition, management involves getting things done through other
people who are unique in respect of aspirations, attitudes, perceptions e.t.c.
Their differences are so obvious that standard results may not be achieved in
otherwise similar environment.
ii) The behavior of human beings cannot be predicted accurately and therefore
standards and ready-made solutions cannot be prescribed.
iii) Management is concerned with the future which is complex and
unpredictable so that if there are changes in the environment, the
management plans will be
affected.
 iv) Management plans are prone to change due to the changes in the external
environment e.g. Technological changes, economic and socio-cultural
changes.

1.4 MANAGEMENT AS AN ART

i) The word Art refers to the know how or ways of doing to accomplish
the desired results.
ii) The focus is on the skill with which the activities are performed.
iii) The constant practice of the theoretical concept (knowledge base)
contributes to the formation and sharpening of skills.
iv) Management as an art stress the need for practice where in
management graduate from the best institute may not be very
effective and therefore requires creativity and practice.

LEVELS OF MANAGEMENT
[Link] level
[Link] level
[Link] level

Levels of management

i. Top level management

It’s the highest level in the organizational hierarchy, which includes board
of directors and chief executives. They are responsible for defining the
objectives, formulating plans, strategies and policies.
ii. Middle level management
It’s the second and most important level in the corporate ladder, as it
creates a link between the top and lower-level management. It includes
departmental and division heads and managers who are responsible for
implementing and controlling plans and strategies which are formulated
by the top executives.
iii. Lower-level management/functional/operational
 They include the first line manager, foreman, supervisors. It interacts
directly with the workers and helps in reducing wastage of time and
improves the quality and quantity of output.

Functions of management

i. Planning
The first and foremost function of management as it decides beforehand
what is to be done in future. It encompasses formulating policies,
establishing targets, scheduling actions etc.
ii. Organizing
Once the plans are formulated, the next step is to organize the activities
and resources, as in identifying the tasks, classifying them, assigning
duties to subordinates and allocating resources.
iii. Staffing
It involves hiring personnel for carrying out various activities of the
organization. It is to ensure that the right person is appointed to the right
job.
iv. Directing
It is the task of the manager to guide, supervise, lead and motivate the
subordinates, to ensure that they work in the right direction, so far as the
objectives of the organization are concerned.
v. Controlling
The function involves a number of steps taken to ensure that the
performance of the employees is as per the plans. It involves establishing
performance standards and comparing them with the actual performance.
In case of any variations, necessary steps are taken for tis correction.
vi. Coordination
It’s the integration of the activities, processes and operations of the
organization and synchronization of efforts, to ensure that every element
of the organization contributes to its success.

PRINCIPLES OF MANAGEMENT
Fayol also developed fourteen principles of management which he felt should be
applied by managers at the
operational level. He listed these principles as:

i. Division of labour: Work be divided among workers

 ii. Authority and responsibility: Managers need authority to carry out
responsibility
iii. Discipline: Workers should respect the rules and regulations of the
organization
iv. Unity of Command: An employee should receive commands from
only one supervisor.
v. Unity of Direction: One manager should have one plan for each
organizational objective.
vi. Individual Subordination: The interests of the organization should
come before individual interests.
vii. Remuneration: Pay should be fair and good performance should be
rewarded.
viii. Centralization: There would be one point in the organization that
exercises overall control.
ix. Scalar Chain: Authority should flow downwards from top to bottom
through the chain of command.
x. Order: People and materials should be in the right place at the right
time.
xi. Equity: Managers should be fair in dealing with employees.
xii. Stability of tenure: Efficiency can be achieved by a stable labour
force.
xiii. Initiative: Employees should be given freedom to act and be
innovative.
xiv. Espirit de Corps: In union there is strength, teamwork should be
encouraged.
Management is universal among all organizations and Fayol argued that those with
a general knowledge of the management functions and principles can manage any
type of organization.

PURPOSE OF MANAGEMENT

THE OFFICE

Specific objectives

By the end of the topic the trainee should be able to

. Explain the meaning of an office

. Discuss the functions of an office e

. Discuss the various types of office layouts

. Describe the features of a modern office

MEANING OF AN OFFICE
Any place set aside, either a building or a room, used for clerical, administrative or
communicative work. It serves as an administrative centre where departmental
offices are located. It is serves as a communication centre as it provides
communication and clerical services

The efficiency of an office should be judged by the degree of promptness in

supplying correct information. The information dealt with by an office will be on
accounts, orders, prices, complaints, personal matters, etc.

It will go to the credit of the manager, if his office gives out needed information at
a moment’s notice. The act of collecting, processing, storing and distributing
information comprises functions of the office.
FUNCTIONS OF AN OFFICE TYPES OF OFFICE LAYOUTS

When a management decides to establish an office, it has to carefully define its

plan for systematic and scientific segmentation of various departments and
equipment for the office.

The reason is that the systematic arrangement of office equipment leads to

availing of maximum benefit from the space available. The office layout is
based on the principle of division of labour. If the principle of division of
labour is applied, every job of an office can be divided into many sections. All
the sections may not be possible to accommodate in one room or on the same
floor. Hence, office layout ensures full utilization of office space and the
efficiency of operation is high.

Meaning of Office Layout

Office layout means the systematic arrangement of office equipment,

machines and furniture and providing adequate space to office personnel for
regular performance of work with efficiency.

Therefore, the main task of office manager is the proper allocation of space to
each section by considering the interlinking of other sections, so that the
activities of different sections can be coordinated and controlled easily. Faulty
or improper arrangement of furniture, equipment and space for employees
leads to unnecessary wastage of time and energy and increase in the cost of
office operations.

Objectives of Office Layout

1. Effective utilization of available floor space and smooth flow of work.

2. Both power and telephone service is made available whenever necessary.

3. Office supervision is made easier and more convenient.

4. Good working conditions should be provided to each employee

5. The reception room should be very near to the main gate or entrance so
that the visitors may feel easy and convenient.

Modern business is complex. A business organization today is faced with the

ever- changing conditions. The present decade is the decade of change and
challenge. With the developments and advances in the field of science and
technology, the manufacturing techniques have undergone a rapid change.

The ever-widening markets also pose a challenge by themselves. All the

problems can be satisfactorily tackled only when adequate information is
available. Thus man’s greatest tool today is information. To identify new
markets, to design new products, to make decisions, to keep people informed
and to keep abreast of knowledge, requires information.

It is not only man’s greatest tool, but it is also one of the greatest needs.
Information is required by all members of enterprise and one of the problems
in its management is to determine the nature of the information required, by
whom, and in what form.

Information is to help; it should assist its recipient in performing his assigned

job. In short, the acts of controlling, processing, storing, striving and
distributing information comprise the function of the office.

The functions of a modern office can be divided into the following categories;
and they are:

i. Basic or routine functions.

1. To receive or collect information:

The primary function of the office is to receive information from the various
departments of the organization or from outside through enquiries, reports,
orders, circulars, complaints, messages etc. If the information received is not
complete, the office tries to collect information by sending out enquiries of
clarifications.

There may be different types of meeting within or outside the organization

and pieces of information will be helpful to the management and therefore the
office has to collect it.

2. To prepare records of information:

Information is usually received in the form of letters, enquiries, phone calls

etc. and this information has to be converted into other forms, which can
easily be followed by the management. These are orders, quotations, price-
lists, replies to enquiries and complaints, account books, etc., within the
organization. All these records will be retained for further reference.

According to the nature of the information, the record may be retained for
many years or they may be safely kept for a few years, after which they can be
destroyed. The records of information prepared in the office must be
preserved safely, made available to the management within no time and must
be easy to understand.

These records maintained by the office will be reference for further dealings.
Moreover, every business has to keep up- to-date books of accounts which are
required to record all business transactions.

The books like cash-book, purchase book, sales-book, goods returns book,
productive expense and other ledgers are to be kept by every office. Besides
the account-books, other books will have to be maintained by the office in
order to have a smooth function of the organization.

3. To process and arrange information:

The information received by the office may be lengthy and the same in its
original form may not be much useful to the management. Therefore, after
collecting such information, it will be processed, categorized, arranged and
systematically kept for readymade information.

Certain letters will have to be converted into charts, statements etc. by doing
calculations or analysis over such information. For instance, orders have been
received every day and complied. The orders themselves will not serve any
purpose to the departmental head because the orders may be in the form of
letters.

Therefore, it will be most useful to the Sales Manager, if these have been
shown in a compact form, say sales week wise. This can be done through
charts, statements etc. Then the sales manager is at ease to understand the
position of the sales by looking at the statements or charts and come to a
decision within no time.

Thus it is possible for all the departments or the management to understand

the position easily and quickly and come to certain conclusion. If the
information is not properly analysed or arranged, much time will have to be
spent.

An efficient office supplies readymade information to departments or

managers who take proper decisions on the basis of such information
supplied. Therefore, a good office is the foundation of a business organization.

4. To supply readymade information to the authorities:

An office is a machine which receives raw materials (scattered information)

and produces various items through processes (compiled and tillable). The
office receives information through letters, phones, meetings, complaints,
business transactions, etc.
These pieces of information are further recorded in proper books processed
and thus converted into charts, graphs, statements, and diagrams etc. which
show the complete picture of one type of dealings. The processed information
is ready made information and is easy to understand at a glance.

Usually, the office supplies information relating to estimates, statements of

accounts, progress report, book debts, sales, castings etc.

The information kept by the office must be complete and accurate and
supplied to the authorities as and when required, without wasting time. If the
supply of information is also kept in such place where it is easily visible and
available at any time, it is a great advantage.

FEATURES OF A MODERN OFFICE

i. Office furniture
Leaders have begun understanding the importance of comfort and
ergonomics combined with the professional design of modern furniture. Today's
office furniture combines these two important components to create an employee-
friendly environment without sacrificing flare and professionalism. Ergonomics is
adaptation to the user and when it comes to designing modern offices, the furniture
is intended to help prevent physical problems, stress, and concentration.

ii. Collaboration spaces/multifunctional spaces

Whether for board meetings or meetings with clients, today's modern offices
include accommodations that suit the needs for the intended purpose of
collaboration rooms. Experts suggest considering things like storage needs,
whiteboards, and space you'll need in the area.

iii. Built-in perks

Although they may be working, employees are more productive and engaged when
their work environment addresses their comfort. Building in office perks that allow
teammates to get a little exercise or have a healthy snack while working can be just
a couple of tricks that are low-cost but offer a big comfort. Further, with
 technology that allows your employees to interact and share without the disruption
of traversing from one office to the next, provides a quicker and more effective
way for them to collaborate.

iv. Technologies
Most tech companies are focused on improving business operations. From artificial
intelligence to remote virtual receptionists, organizations across the globe are
becoming more automated. Today's office employees expect more than a cubicle
and a computer.

Companies can't afford their people wasting time on admin tasks -- and people
increasingly don't want to do them. Office automation frees up the time (and
minds) of your employees by streamlining various aspects of operations. This
allows your people to focus more on meaningful work -- and enjoying more time
away from the office.

Modern office technologies include:

 Visitor registration apps

 Corporate instant messaging and notifications
 Digital document management
 Asset and room scheduling software
 Enabling employee mobility
 Digital mailroom management

v. Lighting
Lighting plays a key role in the design of modern offices. Poor lighting can cause
visual fatigue and negatively affect worker performance.

On the contrary, the correct use of different light sources, natural or artificial,
improves the comfort and productivity of the users.

vi. Decorative motivation

They are all elements that can help enhance creativity and inspiration in workers.
Factors such as the colour of the walls influence the mood of people.
Ideally, they should be combined according to the corporate image and light
available; pale blues, greens, and greys are highly recommended.

Plants are also believed to promote concentration and help create peaceful
environments, purifying the air and providing warmth.

Other examples would be paintings, inspiring phrases, ornaments, etc. that depend
on what we want to convey at the workspace

ORGANIZATION STRUCTURES, CHARTS AND DEPARTMENTS

SPECFIC OBJECTIVES

By the end of the topic the trainee should be able to

- Describe types of organization structures and their charts

- Identify various departments in an organization
- Explain the functions of various departments in an organization
- Explain the relationship between various departments

FORMS OF ORGANISATION

Organisation requires the creation of structural relationship among different

departments and the individuals working there for the accomplishment of desired
goals. Organisation structure is primarily concerned with the allocation of tasks
and delegation of authority.

The establishment of formal relationships among the individuals working in the

organization is very important to make clear the lines of authority in the
organisation and to coordinate the efforts of different individuals in an efficient
manner. According to the different practices of distributing authority and
responsibility among the members of the enterprise, several types of organisation
structure have been evolved. They are:
 1. Line organisation
2. Line and Staff organisation
3. Functional organisation
4. Committee organisation

Line Organisation

It is also known as "Military", "traditional", "Scalar" or "Hierarchical" form of

organisation. The line organization represents the structure in a direct vertical
relationship through which authority flows. The line of authority flows vertically
downward from top to bottom throughout the organisation. The amount of
authority is highest at the top and reduces at each successive level down the
hierarchy. All major decisions and orders are made by the executives at the top and
are handed down to their immediate subordinates who in turn break up the orders
into specific instructions for the purpose of their execution by another set of
subordinates. A direct relationship of authority and responsibility is thus
established between the superior and subordinate. The superior exercises a direct
authority over his subordinates who become entirely responsible for their
performance to their commanding superior. Thus, in the line organisation, the line
of authority consists of an uninterrupted series of authority steps and forms a
hierarchical arrangement. The line of authority not only becomes the avenue of
command to operating personnel, but also provides the channel of communication,
coordination and accountability in the organisation.

Principles of organisation

They are necessary to realise the advantages of this system and the non-observance
of which would involve inefficiency.

1. Commands should be given to subordinates through the immediate superior;

there should be no skipping of links in the chain of command.
2. There should be only one chain. That is, command should be received from
only one immediate superior.
3. The number of subordinates whose work is directly commanded by the
superior should be limited.
 Chart showing a line organisation

Advantages or merits of line organisation

1. It is the easiest to establish and simplest to explain to the employers.

2. It fixes responsibility for the performance of tasks in a definite manner upon
certain individuals.
3. There is clear-cut identification of authority and responsibility relationship.
Employees are fully aware of the boundaries of their job.
4. It is most economical and effective.
5. It makes for unity of control thus conforming to the scalar principle of
organisation.
6. It ensures excellent discipline in the enterprise because every individual
knows to whom he is responsible. The subordinates are also aware of the
necessity of satisfying their superior in their own interests.
7. It facilitates prompt decision-making because there is definite authority at
every level.
 8. As all the activities relating to one department or division are managed by
one executive, there can be effective coordination of activities.
9. This system is flexible or elastic, in the sense that, as each executive has sole
responsibility in his own position and sphere of work, he can easily adjust
the organisation to changing conditions.
[Link] this system, responsibility and authority are clearly defined. Every
member of the organisation knows his exact position, to whom he is
responsible and who are responsible to him. Because of the clear fixation of
responsibility, no person can escape from his liability.

Disadvantages or demerits of line organisation

1. With growth, the line organisation makes the superiors too overloaded with
work. Since all work is done according to the wishes of one person alone,
the efficiency of the whole department will come to depend upon the
qualities of management displayed by the head of that department. If
therefore, something happens to an efficient manager, the future of the
department and of the concern as a whole would be in jeopardy.
2. Being an autocratic system, it may be operated on an arbitrary, opinionated
and dictatorial basis.
3. Under this system, the subordinates should follow the orders of their
superior without expressing their opinion on the orders. That means there is
limited communication.
4. There may be a good deal of nepotism and favouritism. This may result in
efficient people being left behind and inefficient people getting the higher
and better posts.
5. The line organisation suffers from lack of specialised skill of experts.
Modern business is so complex that it is extremely difficult for one person to
carry in his head all the necessary details about his work in this department.
6. Line organisation is not suitable to big organisations because it does not
provide specialists in the structure. Many jobs require specialised knowledge
to perform them.
7. If superiors take a wrong decision, it would be carried out without anybody
having the courage to point out its deficiencies.
8. The organisation is rigid and inflexible.
 9. There is concentration of authority at the top. If the top executives are not
capable, the enterprise will not be successful.

Line and Staff Organisation

The line authority remains the same as it does in the line organisation. Authority
flows from top to bottom. The main difference is that specialists are attached to
line managers to advise them on important matters. These specialists stand ready
with their speciality to serve line mangers as and when their services are called for,
to collect information and to give help which will enable the line officials to carry
out their activities better. The staff officers do not have any power of command in
the organisation as they are employed to provide expert advice to the line officers.
The combination of line organisation with this expert staff constitutes the type of
organization known as line and staff organisation. The 'line' maintains discipline
and stability; the 'staff' provides expert information. The line gets out the
production, the staffs carries on the research, planning, scheduling, establishing of
standards and recording of performance.

The authority by which the staff performs these functions is delegated by the line
and the performance must be acceptable to the line before action is taken.
Line and staff Organisation

Types of Staff

The staff position established as a measure of support for the line managers may
take the following forms:

1. Personal Staff: Here the staff official is attached as a personal assistant or

adviser to the line manager. For example – Assistant to managing director.
2. Specialised Staff: Such staff acts as the fountainhead of expertise in
specialised areas like R & D, personnel, accounting etc. For example-R & D
Staff
3. General Staff: This category of staff consists of a set of experts in different
areas who are meant to advise and assist the top management on matters
called for expertise. For example—Financial advisor, technical advisor etc.
Features of line and staff organisation

1. Under this system, there are line officers who have authority and command
over the subordinates and are accountable for the tasks entrusted to them.
The staff officers are specialists who offer expert advice to the line officers
to perform their tasks efficiently.
2. Under this system, the staff officers prepare the plans and give advice to the
line officers and the line officers execute the plan with the help of workers.
3. The line and staff organisation is based on the principle of specialisation.

Advantages or merits of line and staff organisation

 It brings expert knowledge to bear upon management and operating

problems.
 Thus, the line managers get the benefit of specialised knowledge of staff
specialists at various levels.
 The expert advice and guidance given by the staff officers to the line officers
benefit the entire organisation.
 As the staff officers look after the detailed analysis of each important
managerial activity, it relieves the line managers of the bother of
concentrating on specialized functions.
 Staff specialists help the line managers in taking better decisions by
providing expert advice. Therefore, there will be sound managerial decisions
under this system.
 It makes possible the principle of undivided responsibility and authority, and
at the same time permits staff specialisation. Thus, the organisation takes
advantage of functional organisation while maintaining the unity of
command.
 It is based upon planned specialisation.
 Line and staff organisation has greater flexibility, in the sense that new
specialized activities can be added to the line activities without disturbing
the line procedure.

Disadvantages or demerits of line and staff organisation

  Unless the duties and responsibilities of the staff members are clearly
indicated by charts and manuals, there may be considerable confusion
throughout the organization as to the functions and positions of staff
members with relation to the line supervisors.
 There is generally a conflict between the line and staff executives. The line
managers feel that staff specialists do not always give right type of advice,
and staff officials generally complain that their advice is not properly
attended to.
 Line managers sometimes may resent the activities of staff members, feeling
that prestige and influence of line managers suffer from the presence of the
specialists.
 The staff experts may be ineffective because they do not get the authority to
implement their recommendations.
 This type of organisation requires the appointment of large number of staff
officers or experts in addition to the line officers. As a result, this system
becomes quite expensive.
 Although expert information and advice are available, they reach the
workers through the officers and thus run the risk of misunderstanding and
misinterpretation.
 Since staff managers are not accountable for the results, they may not be
performing their duties well.
 Line mangers deal with problems in a more practical manner. But staff
officials who are specialists in their fields tend to be more theoretical. This
may hamper coordination in the organisation.

Functional Organisation

The whole task of management and direction of subordinates should be divided

according to the type of work involved. As far as the workman is concerned,
instead of coming in contact with the management at one point only, he is to
receive his daily orders and help directly from different bosses:
The chart showing functional foremanship

Features of functional organisation

The features of functional organisation are as follows:

1. The work of the enterprise is divided into different functional departments

and the different functional departments are placed under different
specialists.
2. The functional specialist has the authority or right to give orders regarding
his function whosesoever that function is performed in the enterprise.
3. Under this system, the workers have to receive instructions from different
specialists.
4. If anybody in the enterprise has to take any decision relating to a particular
function, it has to be in consultation with the functional specialist.
5. Under this system, the workers have to perform a limited number of
functions.
Advantages of functional organisation

1. Functional organisation is based on expert knowledge. Every functionary in

charge is an expert in his area and can help the subordinates in better
performance in his area.
2. Division of labour is planned not incidental.
3. As there is not scope for one-man control in this form of organisation, this
system ensures co-operation and teamwork among the workers.
4. This system ensures the separation of mental functions from manual
functions.
5. It helps mass production by standardization and specialization.
6. This system ensures maximum use of the principle of specialisation at every
work point.
7. As there is joint supervision in the organisation, functional organisation
reduces the burden on the top executives.
8. Functional organisation offers a greater scope for expansion as compared to
line organisation. It does not face the problem of limited capabilities of a
few line managers.
9. The expert knowledge of the functional mangers facilitates better control
and supervision in the organisation.

Disadvantages or demerits of Functional organisation

a. It is unstable because it weakens the disciplinary controls, by making the

workers work under several different bosses. Thus, functional organisation
violates the principle of unity of command.
b. Under this type of organisation, there are many foremen of equal rank. This
may lead to conflicts among them.
c. The co-ordinating influence needed to ensure a smoothly functioning
organization may involve heavy overhead expenses.
d. The inability to locate and fix responsibility may seriously affect the
discipline and morale of the workers through apparent or actual
contradiction of the orders.
e. This system is very costly as a large number of specialists are required to be
appointed.
 f. A functional manager tends to create boundaries around him and think only
in term of his own department rather than of the whole enterprise. This
results in loss of overall perspective in dealing with business problems.
g. It is difficult for the management to fix responsibility for unsatisfactory
results.

Committee form of Organisation

Committee Organisation

Committee organisation as a method of managerial control has very little practical

importance, because it is managed by a senior member of the committee only. But
the committee organisations are widely used for the purpose of discharging
advisory functions of the management. Committees are usually relatively formal
bodies with a definite structure. They have their own organisation. To them are
entrusted definite responsibility and authority.

"A committee is a group of people who meet by plan to discuss or make a decision
for a particular subject."

"A committee is a body of persons appointed or elected to meet on an organised

basis for the consideration of matters brought before it."

A committee may formulate plans, make policy decisions or review the

performance of certain units. In some cases, it may only have the power to make
recommendations to a designated official. Whatever may be the scope of their
activities, committees have come to be recognised as an important instrument in
the modern business as well as non-business organisations.

Objectives of committees

Committees are constituted to achieve one or more of the following objectives:

 To have consultations with various persons to secure their view-points

 To give participation to various groups of people
 To secure cooperation of different departments
 To coordinate the functioning of different departments and individuals by
bringing about unity of directions.

Types of committees
 1. Line committee: If a committee is vested with the authority and
responsibility to decide and whose decisions are implemented, it is known as
line committee.
2. Staff committee: If a committee is appointed merely to counsel and advice, it
is known as a staff committee.
3. Formal committee: When a committee is constituted as a part of the
organization structure and has clear-cut jurisdiction, it is a formal
committee.
4. Informal committee: An informal committee is formed to advice on certain
complicated matters. It does not form part of the organisation structure.
5. Coordinating committee: It is constituted to coordinate the functioning of
different departments.
6. Executive committee: It is a committee which has power to administer the
affairs of the business.
7. Standing committee: are formal committees that are of permanent character.
8. Ad hoc committee: They are temporary bodies. It is appointed to deal with
some special problem and stops functioning after its job are over.

Advantages or merits of committee type of organisation

1. A committee is an effective method of bringing the collective knowledge

and experience of a number of persons. Therefore, many multi-dimensional
and complex problems of modern enterprises, which cannot be solved
satisfactorily by individual managers, can be solved by committees.
2. Committees offer scope for group deliberations and group judgment. Results
obtained by group deliberation and group judgment are likely to be better
than those obtained by individual judgment.
3. When it is necessary to integrate varying points of view, which cannot
conveniently be coordinated by individuals, the committee may be used to
bring about coordination.
4. The management can give representation to the employees in various
committees. This will motivate the employees for better performance as they
feel that they have a say in the affairs of the organisation.
 5. A committee form of organisation facilitates pooling of authority of
individual managers for making some type of decisions of an inter-
departmental nature.
6. A committee form of organisation tends to promote organisational
cohesiveness.

Group endeavour, team spirit and collective responsibility are control to the
philosophy of committees.

Disadvantages of committee type of organisation

a. If a manager has an opportunity to carry a problem to a committee, he may

take it as a means of avoiding decision-making or to escape the
consequences of an unpopular decision.
b. Sometimes, a committee may not be able to take the needed decision
because of the conflicting views of the members.
c. Committees take more time in procedural matters before any decision is
taken. In some cases, slowness seriously handicaps the administration of the
organisation.
d. Committees are an expensive device both in terms of cost and time.
e. When the committee findings represent a compromise of different
viewpoints, they may be found to be weak and indecisive.
f. No member of a committee can be individually held responsible for the
wrong decision taken by the committee.
g. It is very difficult to maintain secrecy regarding the deliberations and the
decisions taken by a committee, especially when there are many members in
the committee.

Organizational Structure/chart

An organizational structure is a visual diagram of a company that describes what

employees’ do, whom they report to, and how decisions are made across the
business. Organizational structures can use functions, markets, products,
geographies, or processes as their guide, and cater to businesses of specific sizes
and industries.
Org structures help you define at least three key elements of how your business is
going to run.

As your company gets bigger, an organizational structure can also be helpful for
new employees as they learn who manages what processes at your company.

Then, if you need to pivot or shift your leadership, you can visualize how the work
flows would work by adjusting your organizational structure diagrams.

This chart is like a map that simply explains how your company works and how its
roles are organized.

Chain of Command

Your chain of command is how tasks are delegated and work is approved. An org
structure allows you to define how many "rungs of the ladder" a particular
department or business line should have. In other words, who tells whom to do
what? And how are issues, requests, and proposals communicated up and down
that ladder?

Span of Control

Your span of control can represent two things: who falls under a manager's, well,
management ... and which tasks fall under a department's responsibility.

Centralization

Centralization describes where decisions are ultimately made. Once you've

established your chain of command, you'll need to consider which people and
departments have a say in each decision. A business can lean toward centralized,
where final decisions are made by just one or two entities; or decentralized, where
final decisions are made within the team or department in charge of carrying out
that decision.

Mechanistic vs. Organic Organizational Structures

Organizational structures fall on a spectrum, with "mechanistic" at one end and

"organic" at the other. The mechanistic structure represents the traditional, top-
down approach to organizational structure, whereas the organic structure
represents a more collaborative, flexible approach.

Mechanistic Structure

Mechanistic structures, also called bureaucratic structures, are known for having
narrow spans of control, as well as high centralization, specialization, and
formalization. They're also quite rigid in what specific departments are designed
and permitted to do for the company.

This organizational structure is much more formal than organic structure, using
specific standards and practices to govern every decision the business makes. And
while this model does hold staff more accountable for their work, it can become a
hindrance to the creativity and agility the organization needs to keep up with
random changes in its market.

As daunting and inflexible as mechanistic structure sounds, the chain of command,

whether long or short, is always clear under this model. As a company grows, it
needs to make sure everyone (and every team) knows what's expected of them.
Teams collaborating with other teams as needed might help get a business off the
ground in its early stages, but sustaining that growth -- with more people and
projects to keep track of -- will eventually require some policymaking.

Organic Structure

Organic structures (also known as "flat" structures) are known for their wide spans
of control, decentralization, low specialization, and loose departmentalization.
What's that all mean? This model might have multiple teams answering to one
person and taking on projects based on their importance and what the team is
capable of -- rather than what the team is designed to do.

As you can probably tell, this organizational structure is much less formal than
mechanistic, and takes a bit of an ad-hoc approach to business needs. This can
sometimes make the chain of command, whether long or short, difficult to
decipher. And as a result, leaders might give certain projects the green light more
quickly but cause confusion in a project's division of labor.

Nonetheless, the flexibility that an organic structure allows for can be extremely
helpful to a business that's navigating a fast-moving industry, or simply trying to
stabilize itself after a rough quarter. It also empowers employees to try new things
and develop as professionals, making the organization's workforce more powerful
in the long run. Start-ups are often perfect for organic structure, since they're
simply trying to gain brand recognition and get their wheels off the ground.

Types of Organizational Structure

1. Functional Organizational Structure

2. Product-Based Divisional Structure
3. Market-Based Divisional Structure
4. Geographical Divisional Structure
5. Process-Based Structure
6. Matrix Structure
7. Circular Structure
8. Flat Structure
9. Network Structure

1. Functional Organizational Structure

The functional structure departmentalizes an organization based on common job
functions.

An organization with a functional org structure, for instance, would group all of the
marketers together in one department, group all of the salespeople together in a
separate department, and group all of the customer service people together in a
third department.

The functional structure allows for a high degree of specialization for employees,
and is easily scalable should the organization grow. Also this structure is
mechanistic in nature -- which has the potential to inhibit an employee's growth --
putting staff in skill-based departments can still allow them to delve deep into their
field and find out what they're good at.
Disadvantages

Functional structure also has the potential to create barriers between different
functions -- and it can be inefficient if the organization has a variety of different
products or target markets. The barriers created between departments can also limit
peoples' knowledge of and communication with other departments, especially
those that depend on other departments to succeed.

2. Product-Based Divisional Structure

A divisional organizational structure is comprised of multiple, smaller functional

structures (i.e. each division within a divisional structure can have its own
marketing team, its own sales team, and so on). In this case -- a product-based
divisional structure -- each division within the organization is dedicated to a
particular product line.
This type of structure is ideal for organizations with multiple products and can help
shorten product development cycles. This allows small businesses to go to market
with new offerings fast.

Disadvantages

It can be difficult to scale under a product-based divisional structure, and the

organization could end up with duplicate resources as different divisions strive to
develop new offerings.

3. Market-Based Divisional Structure

Another variety of the divisional organizational structure is the market-based
structure, wherein the divisions of an organization are based around markets,
industries, or customer types.

The market-based structure is ideal for an organization that has products or

services that are unique to specific market segments, and is particularly effective if
that organization has advanced knowledge of those segments. This organizational
structure also keeps the business constantly aware of demand changes among its
different audience segments.

Disadvantages
Too much autonomy within each market-based team can lead to divisions
developing systems that are incompatible with one another. Divisions might also
end up inadvertently duplicating activities that other divisions are already handling.

4. Geographical Divisional Structure

The geographical organizational structure establishes its divisions based on

geography. More specifically, the divisions of a geographical structure can include
territories/ regions/districts

This type of structure is best-suited to organizations that need to be near sources of

supply and/or customers (e.g. for deliveries or for on-site support). It also brings
together many forms of business expertise, allowing each geographical division to
make decisions from more diverse points of view.
Disadvantages

The main downside of a geographical org structure: It can be easy for decision-
making to become decentralized, as geographic divisions (which can be hundreds,
if not thousands of miles away from corporate headquarters) often have a great
deal of autonomy. And when you have more than one marketing department -- one
for each region -- you run the risk of creating campaigns that compete with (and
weaken) other divisions across your digital channels.

5. Process-Based Structure

Process-based organizational structures are designed around the end-to-end flow of

different processes, such as "Research & Development," "Customer Acquisition,"
and "Order Fulfillment." Unlike a strictly functional structure, a process-based
structure considers not only the activities employees perform, but also how those
different activities interact with one another. Look at the diagram from left to right
to understand it: The customer acquisition process can't start until you have a fully
developed product to sell. By the same token, the order fulfillment process can't
start until customers have been acquired and there are product order fill.
Process-based organizational structure is ideal for improving the speed and
efficiency of a business, and is best-suited for those in rapidly changing industries,
as it is easily adaptable.

Disadvantages

Similar to a few other structures on this list, process-based structure can erect
barriers between the different process groups. This leads to problems
communicating and handing off work to other teams and employees.

6. Matrix Structure

Unlike the other structures we've looked at so far, a matrix organizational structure
doesn't follow the traditional, hierarchical model. Instead, all employees
(represented by the small boxes) have dual reporting relationships. Typically, there
is a functional reporting line as well as a product- based reporting line. The solid
lines represent strong, direct-reporting relationships, whereas dotted lines indicate
that the relationship is secondary, or not as strong. The functional reporting takes
precedence over product-based reporting.

Advantage

The main appeal of the matrix structure is that it can provide both flexibility and
more balanced decision-making (as there are two chains of command instead of
just one).

Having a single project overseen by more than one business line also creates
opportunities for these business lines to share resources and communicate more
openly with each other -- things they might not otherwise be able to do regularly.

Disadvantages

Complexity

The more layers of approval employees have to go through, the more confused
they can be about who they're supposed to answer to. This confusion can
ultimately cause frustration over who has authority over which decisions and
products -- and who's responsible for those decisions when things go wrong.
7. Circular Structure

While it might appear drastically different from the other organizational structures
highlighted in this section, the circular structure still relies on hierarchy, with
higher-level employees occupying the inner rings of the circle and lower-level
employees occupying the outer rings.

That being said, the leaders or executives in a circular organization aren't seen as
sitting atop the organization, sending directives down the chain of command.
Instead, they're at the centre of the organization, spreading their vision outward.
From an ideological perspective, a circular structure is meant to promote
communication and the free flow of information between different parts of the
organization. Whereas a traditional structure shows different departments or
divisions as occupying individual, semi-autonomous branches, the circular
structure depicts all divisions as being part of the same whole.
Disadvantages

From a practical perspective, the circular structure can be confusing, especially for
new employees. Unlike with a more traditional, top-down structure, a circular
structure can make it difficult for employees to figure out who they report to and
how they're meant to fit into the organization.

8. Flat Structure

While a more traditional organizational structure might look more like a pyramid --
with multiple tiers of supervisors, managers and directors between staff and
leadership, the flat structure limits the levels of management so all staff are only a
few steps away from leadership. It also might not always take the form or a
pyramid, or any shape for that matter

This structure is probably one of the most detailed, it’s also thought that employees
can be more productive in an environment where there are less hierarchy-related
pressures. This structure might also make staff feel like the managers they do have
are more like equals or team members rather than intimidating superiors.

Disadvantages
If there's a time when teams in a flat organization disagree on something, such as a
project, it can be hard to get aligned and back on track without executive decisions
from a leader or manager. Because of how complicated the structure's design is, it
can be tricky to determine which manager an employee should go to if they need
approval or an executive decision for something. So if you do choose to have a flat
organization, you should have a clearly marked tier of management or path that
employers can refer to when they run into these scenarios.

9. Network Structure

A network structure is often created when one company works with another to
share resources -- or if your company has multiple locations with different
functions and leadership. You might also use this structure to explain your
company workflows if much of your staffing or services are outsourced to
freelancers or multiple other businesses.

The structure looks nearly the same as the Divisional Structure, shown above.
However, instead of offices, it might list outsourced services or satellite locations
outside of the office.

If your company doesn't do everything under one roof, this is a great way to show
employees or stakeholders how outsourcing of off-site processes work. For
example, if an employee needs help from a web developer for a blogging project
and the company's web developers are outsourced; they could look at this type of
chart and know which office or which person to contact outside of their own work
location.

Disadvantages

The shape of the chart can vary based on how many companies or locations you're
working with. If it's not kept simple and clear, there may be a lot of confusion if
multiple offices or freelancers do similar things. If you do outsource or have
multiple office locations, make sure your org chart clearly states where each
specific role and job function lies so someone can easily understand your basic
company processes.

CHOOSING AN ORGANIZATION STRUCTURE

1. Determine the number of owners.

If you are going into business by yourself or with other owners, this can narrow
down the three options to one or two options. For example, a sole business owner
may choose to open a sole proprietorship, a corporation or a limited liability
company, while two or more business owners can choose a partnership,
corporation or limited liability partnership.

2. Evaluate tax benefits and drawbacks.

Each business organizational structure has its advantages and disadvantages, so list
the benefits for the structure you are considering. For example, a sole proprietor
can include the business income and losses on personal tax returns, while
corporations may pay taxes twice. Tax for a corporation includes a corporate tax
on the profit and another tax when the corporation pays dividends to shareholders
in the corporation. A limited liability company structure takes on a combination of
partnership and corporation tax benefits and drawbacks.

3.[1.] Evaluate liability issues.

If you are involved in a business with a high liability, then you may want to
consider a corporation or limited liability company, which protect the owner’s
personal assets. If your business is a low liability one, then another business
structure may fit.

4.[2.] Effective structure

The structure should allow smooth flow of work, giving information required by
the management to make decisions; simplifies administration and makes the most
effective contribution to the achievement of goals.
5. Determine the record keeping requirements.
Some business structures have documentation and record keeping requirements
while others do not. The Internal Revenue Service (IRS) requires corporations to
maintain business records that are separate from personal ones. The state where the
business operates also requires corporations to file an annual report. Sole
proprietorships and partnerships do not have to abide by these requirements.
Generally, states require a limited liability company to have an Operating
Agreement, a document that states the owner of the company and the management
structure.
6. Seek professional advice.
Talk with a business attorney or accountant before making a final decision. These
professionals can help to answer your questions and provide advice on which
business structure may be most appropriate for your business
Advantages of Organizational Charts Structures

 Shows clear reporting structure – employees know who to report to, who to
contact when there is an issue that needs resolving or a question that needs
to be answered. This is especially important in large organizations where
there are many departments. Someone else from another department can
quickly get in touch with the relevant person of another department.
 Helps new employees – enables them to get to know the people he or she is
working with even before meeting them, thus helping them to connect much
more easily.
 Helps to manage workload – A well-managed organizational chart helps to
visualize the workload of individuals. This is especially useful to manage the
workload of managers because you can clearly see how many people they
are managing and in some cases how many departments are under them.
 Makes planning easier – Because you can visualize the structure it helps in
future plans. You can allocate resources better; quickly find competencies of
individuals and much more.

Disadvantages of Organizational Charts

 Not showing informal channels – This is one of the biggest disadvantages of

organizational charts. Not all communication channels are formal and well
defined and org charts fail to capture them. Although org charts are not
meant to capture them, informal channels are vital in any organization or
business so failing to capture them might hinder communication.
 A maintenance headache – An out-dated organizational chart is almost
worthless. But keeping it up to date is very hard, especially for large
organizations. Employees might change departments, leave the company,
assigned a new role etc. in a short period of time. Since it is hard to keep
track of these changes properly maintaining an org chart will be time
consuming.
 . rivalry among departments may be harmful to the organization
 . Only authorized persons make decisions which results in delays and losses
to the organization in case they are absent for a time.

Use of an organizational chart

1. Organizational chart helps build and design the organization structure to

meet the business' objectives.
2. Organizational chart can guide the employees to know their rights and
responsibilities.
3. Organizational chart help divide the functions of a company, enterprise or
department.
4. It also shows the relationships between the organization's staff members.
5. With organizational chart, it's easy to find whether the officer's workload is
too heavy.
6. It's easy to find whether the unrelated persons undertake the work of several
loose, no relationship.
7. Find out whether an employee is incompetent in this work at important
positions.
8. Make everyone clear within their organizations and improve employee
performance.
9. Other departments are also able to understand and enhance the coordination
of the organization.
[Link]'s easy to see the promotion channels open.
[Link] managers can use the organizational chart tool to analyse budget,
design work team and generate reports.
 [Link] chart often outlines employee tasks and which manager is
responsible for overseeing each employee.

Presentation of organization charts

1. Vertical Organizations

A “vertical” company is known for having a large staff of middle managers

between the CEO and the front line. In a vertical company, lines of authority
branch outward from the top down like a tree’s roots. Individual vice-presidents
direct the activities of the staff below them according to specific lines of business..

Advantages

. They have defined chains of command and areas of responsibility;

- Employees advance through ability and performance on familiar, known tasks;

and the career path of someone looking to advance “through the ranks” is clearly
understood.

- The longer one stays in a vertical organization the more in-depth knowledge and
expertise they gain over the course of time.

Disadvantages

- They take longer to make decisions and information does not always filter
upward to management or down to front-line personnel.
- bureaucracy can become rampant as individual lines of business become
isolated from each other, develop separate cultures and procedures, and
sometimes seek to justify unprofitable lines of business
 - communications with other departments can sometimes be actively
discouraged or seen as disloyalty below

2. Horizontal Organizations

. Horizontally oriented companies have relatively few layers of management

between the CEO and front-line personnel. It is thought that with fewer individuals
in the chain of command, decisions can be made more quickly. As a result of this
new management thinking, middle managers in “vertical” organizations saw more
layoffs.

Advantages

- speeds up decision making;

- allow for more management flexibility and cross-training as individuals
work more closely with other areas;
- to eliminate bureaucracy because more people are talking to each other
across vertical lines of business;
- to increase a company’s flexibility when it comes to creating new products
or reacting to new market conditions.

Disadvantages

- workforce reductions that create a loss of experienced managers, who often

make up the “institutional memory” of a company;
- the breaking up of specialized lines of business, thus reducing the
company’s ability to innovate;
- Uncertain career paths for aspiring managers.
- There can also be a perception that an individual who works in a small, flat
organization lacks necessary expertise in his or her particular specialty to
truly excel because effort is diluted–the operative example being a “jack of
all trades, master of none.”
3. Matrixed Organizations

Matrixed organizations attempt to integrate and use the best of both horizontal and
vertical structures. A large company keeps its specific lines of business expertise
intact—finance, marketing, engineering, etc.—but brings together specialists from
each vertical organization to work on temporary projects that develop new
products, services, or even lines of business. A person working in such a structure
would thus have vertical lines of accountability to the immediate line-of-business
superiors and horizontal accountability to one’s project teammates.

Advantages

-matrix organizations would keep their vertical lines of business intact to maintain
their core competencies while also farming out individuals within those specialties
to develop new products and services.
- it has more regular and formal contact across disciplines.

Disadvantages

- Challenges of accountability, authority, and perceived “loyalty.”

If a manager is a project team lead or member, she or he must constantly
balance which work takes precedence
- impact employee loyalty:
Individuals are more interested in doing project work than in doing the
specialty work for which they were hired, they might be perceived as
“disloyal” by their vertical line-of-business superior.
- a line-of-business manager might not see their subordinate’s work if he or
she is heavily involved in project work. There can be a corporate problem of
being “out of sight, out of mind,” where a project worker misses
opportunities for promotion within her/his vertical organization because of a
focus on the project.
- If cooperation does not occur both horizontally and vertically, the company
can easily be overrun by politics, as people break into fragmented camps:
“Are you a ‘project’ person or are you an ‘institutional’ person?”
7 important Departments of a Modern Office

Functional departments require some clerical service which may be provided by

creating a sectional office for each of these functional departments. The objective
of the office is to provide clerical service to the operating or functional department.
Some office work is invariably performed in the departments them self.

However, for reasons of economy and efficiency, some office activities which are
common to all the functional departments are centralized in the general office,
under the supervision of an office manager, who is naturally a specialist. Office
services common to all sectional offices – duplicating, typing, filing, mailing etc.,
are centralized in the general office.

The purpose of dividing the office on the basis of functions into sectional or
departmental offices is to secure maximum efficiency in work at minimum cost.
Each departmental office performs a specific function and the staff becomes
specialized in that particular function.

The important departments or sections of a modern office and their functions are as
follows:

1. General Office

The general office deals with these office activities which are common to all the
operating departments, i.e., typing, correspondence filing, mailing etc. Generally,
the general office of a large organization is divided into the following sections:

(a) Typing pool

Typing pool consists of typists responsible for typing correspondence, preparing

statements and doing such other works, relating to typing. When the volume of
typing is large, a separate section is set up for looking after the work. This section
deals with all typing work of all the departments including the general office.

Copying and Duplicating Section:

It is a well-known fact that as an office expands, there is greater need for copies of
documents, bulletins, etc. Copying and duplicating services become an important
activity of an office. Sometimes copying and duplicating may be created at a
separate section. However, in a small office this section may be combined with the
typing section or pool.

(b) Correspondence Section

A separate correspondence section may have to be organized in a large

organization. The main function of the correspondence section is to look into
different letters, enquiries; memoranda etc. and prepare suitable replies. The work
of preparing correspondence is performed by this section for the office as well as
for other functional departments.

The correspondence may be internal or inter departmental, where it concerns with

the people within the organization. The correspondence is external where it
concerns outside people, outside organizations and the Government departments.

(c) Mailing Section

As the name implies, mail department handles incoming and outgoing mails
relating to the entire enterprise. All the incoming and outgoing letters, parcels etc.
are routed through this department. Chief functions are:

(i) To keep record of all incoming and outgoing letters,

(ii) To sort out incoming mail and send it to the concerned officials,
(iii) Keep accounts of postal stamps, and
(iv) To deal with post office.

(d) Filing Section

This department deals with the systematic preservation of all files and records of
the business which concern all the departments. The activities include; Receiving
papers and documents for filing; their classification indexing and cross
referencing; filing the papers; issuing the files to departments; follow-up of the
files issue to other departments etc.

(e) Secretarial Section/Department

This department is the secretary’s own department. The main functions of this
department are to deal with general administration and co-ordination of the
activities of the other departments.

It also deals with the issue, forfeiture, transfer etc. of shares, documents and papers
relating to capital, finance and control of business, filing returns with the Registrar
of companies, preparation of reports, budgets etc.

2. Purchase Department

Purchasing is an important function of modern office. This department is

responsible for different kinds of purchases-assets (machines, plants etc.),
consumable items (stationary etc) and raw materials for production etc.

The other functions are: receiving purchase requisition, inviting tenders, placing
orders, receiving ordered items, recording purchase details, issues, maintaining
ledger and stock positions etc. it also advices the management an different matters
concerning purchases and market conditions.

3. Sales Department

This department performs a number of functions

(i) Advertising and publishing the firm’s products;

(ii) Obtains and trains sales force;

(iii) Keeping the selling expenses at minimum;

(iv) They carry out activities related to exhibition, trade fairs etc., at the
appropriate time; and place;

(v) Receiving, recording, replies to customers enquiries, complaints etc.

(vi) Conducting market research, survey etc.

(vii) Collection of outstanding bills;

(viii) Preparation of sales statistics;

(ix) Dispatching and transporting goods to customers.

(x) Advice the management about sales policy etc.

4. Accounts Department

This department is concerned with the maintenance of books of accounts and the
preparation of financial statements. The main functions include the following:

(i) To keep records of all financial transactions;

(ii) To deal with banks;

(iii) To prepare profit and loss account, balance sheet and other financial
statements

(iv) To deal with wages, salaries, budgets etc.

(v) To manage cash

In very big concerns, there may be a separate Cash Department which deals with
cash receipts and cash payments, but in small organizations, cash section is a part
of the accounts section,

(vi) They maintain cash vouchers;

(vii) To maintain cash books, petty cash book etc.

5. Personnel Department

It is an important department of an organization performing a number of functions

– recruitment, training, placement and development of staff. They lay down
procedures for transfers and promotions of staff. They maintain and keep the
records of employees. In short the chief functions of this department are:
(i) To select people for employment;

(ii) To provide training to staff;

(iii) To administer wage and salary policies;

(iv) To keep personal records of staff;

(v) To help the management in the matters of promotion, transfer etc.,

(vi) To provide welfare facilities;

(vii) To deal with labor problems and trade disputes;

(viii) To prepare retirement and pension schemes etc.

6. Production Department

The production department deals with work concerning various activities of the
production of finished products – Production control, quality control, material
handling, control of stocks etc. It also prepares materials scheduled; maintain stock
records, job cards, cost accounting records, wage and salary bills etc. It also
provides relevant data for production planning and budgeting.

7. Export Department

A large organization exporting goods on a large scale may have a separate export
department to look after the exports of the organizations. Its function includes
obtaining export orders, keeping liaison with importers, preparing export invoices,
arranging insurance and shipment of goods, etc.

11 Ways to Improve Collaboration between Departments (relationship

between departments)

Collaboration between departments is more than simply “cooperating” with other

teams. It involves a shared vision, mutual respect, and in-depth understanding of
each other’s role in a project with the goal of achieving excellent business
outcomes and outstanding customer experience.
1. Provide Context

It can be difficult for team members to feel committed to a project and motivated
to collaborate with other departments if they don’t have the visibility or the
understanding of how they impact the big picture.

Give your team a holistic view of the project and a common goal. Encourage
information sharing framed around shared objectives.

This can be accomplished by having a cross-departmental kick-off meeting at the

onset of a project, and invite the leadership team to join the conversation and set
the vision.

This will also keep your team engaged. Another way to anchor your team’s work
within a larger context is to build in feedback loops so employees can experience
the impact of their contributions.

When teams are guided by a common vision and understand how their work fits
into the larger context, they’re more empowered to take initiatives.

2. Cultivate Empathy

Having a mutual understanding between departments can make collaboration

smoother and more effective.

Encourage teams to “walk a day in the other’s shoes” and see the challenges of
other departments from a different perspective.

Help employees understand the constraints and challenges faced by teams from
different departments. Cultivate a sense of curiosity to help them learn about each
other’s work and even come up with ideas of how one team can improve their
process to help other teams become more effective.

It’s important to encourage a culture of mindfulness in which team members keep

their personal emotions in check so they can relate to their co-workers in a positive
and productive manner.

3. Develop a Common Language

Jargons and department-specific language can alienate those in other teams. They
also make communication much more challenging.
Confusions arise when team members don’t have a common understanding of
terminologies used in interdepartmental communications. Not only will there be
frustrating back-and-forth but also the risk of miscommunication that’d derail an
entire project.

To improve cross-functional communications, develop a common language that

would be shared during new members’ on boarding process.

Learn from past miscommunications to see where disconnect and

misunderstanding happened. Anticipate a learning curve when you first introduce
the common language and get team members’ buy-in by involving them in the
development process.

In certain industries and for specific functions, the use of technical language could
be hard to avoid. Encourage team members to learn the basic terms used by other
departments, so they can effectively communicate on a day-to-day basis.

4. Get Involved In Other Departments’ Processes

Imagine a creative team spending two months to come up with an elaborate design
only to have the marketing folks tell them that it’s not reflecting the strategic
direction of the brand; or the information architects taking weeks to refine a series
of user experience only to find out from the tech folks that the backend does not
support certain critical functions.

These scenarios are not only infuriating and demoralizing for the individual team
members but can also impact the timeline and budget of the entire project.

Unnecessary frustrations can be avoided if teams are involved in the other

departments’ processes while a project is underway to ensure that the solution
proposed by one team is in alignment with the overall strategic vision and can be
supported by the capability of other departments.

As project managers, we can foster such collaboration by scheduling formal team

check-ins, interdepartmental reviews as well as encouraging informal “touch base”
among team members.

Don’t forget to clearly communicate the outcomes and action items from team
meetings to the entire staff involved in a project so everybody is on the same page.
Consistent and constructive communications can help avoid finger pointing and
blame game further down the road.

5. Facilitate Consistent Communications

The increasingly fast pace of the workplace environment means everyone involved
in a project needs has the most up-to-date information at all times.

To encourage information sharing and to help team members stay on top of items
they need to review and comment, you need the right software to facilitate such
interaction.

Most software applications keep all communications pertaining to a project in one

place. When a new team member comes on board, he or she can easily get up to
speed by reviewing past interactions among team members.

These applications allow you to automate notifications so the right team members
can get the appropriate communications at the right time while keeping
information available to everyone else at all times.

They also help eliminate the back-and-forth nature of email communications,

which are hard to keep track and can get confusing very quickly.

6. Set the Tone

Relationships among department heads can have a significant influence on how

well team members collaborate and it’s important to create a culture of
collaboration within the leadership team.

As project managers, we can shape a collaborative culture by building

relationships with project managers in other departments by setting the tone and
lead by example.

Initiate periodic meetings with your counterparts to understand their progress and
challenges, while helping each other brainstorm ideas and problem-solve.
This can foster a sense of collective responsibility for the organization’s success,
and build a sense of trust between departments that would become invaluable for
seamless collaboration.

7. Celebrate Wins

Celebrating wins and acknowledging each other’s roles in the success of a

milestone or project helps cultivate trust and respect among team members from
different departments.

Don’t limit your celebration to the completion of a big project. Set milestones and
make it a habit to celebrate small wins.

Small wins help sustain momentum and motivation while breaking down barriers
and silo walls. It feels good to win, and if “winning” requires interdepartmental
collaboration, then such acknowledgement will provide positive reinforcement for
future work together.

Celebrations don’t have to be elaborate. A company-sponsored happy hour or

catered lunch – activities that give team members the opportunity to intermingle –
are great options.

8. Encourage Feedback

As project managers, we need to build an environment in which team members

feel comfortable speaking up to share their opinions.

In a fast pace work environment, we depend on each and everyone involved in a

project to react to changes in plans and processes in a timely manner.

Encouraging feedback can help empower team members, thus contribute to

streamlining and improving processes and collaborations

It’s important to foster a culture of providing and accepting constructive feedback

framed in a way that focuses on the circumstances and not directed personally at a
team member.
9. Foster Trust

Long-term, successful collaboration is built upon trust and transparency. Trust is

the foundation of any high-performing team and transparency is a critical element
in building trust among team members.

There are many aspects of trust – trust of integrity, trust of ethics and trust of
competency. The more you can encourage trust in these different areas, the more
likely you’ll be able to build trusting relationships between teams and among
individuals.

Consistency is key when building trust. Trust isn’t born out of one single action.
Team members need to know that they can depend on each other every day
without fail, knowing that while they’re doing their best their teammates are
putting in the work as well.

10. Promote an environment of psychological safety

How teams collaborate can have an outsized impact on the results of their work, In
its quest to build the perfect team, Google directed its vast resources toward
determining some of the defining characteristics that reliably separate high-
performing teams from the rest.

The results of that effort found that performance often had much less to do with the
members’ previous accomplishments, their relative levels of introversion or
extroversion, seniority level, or alma mater than expected.

In many of the highest-performing teams, a strong degree of psychological safety,

defined by Harvard Business School professor Amy Edmondson as a ‘‘shared
belief held by members of a team that the team is safe for interpersonal risk-
taking,’’ existed.
It can be common for members of one department to assume a position of absolute
authority on a specific topic, but unchecked, that authority can become a weakness.
The outside perspective of a non-expert can often provide some priceless insights.

When there are no ‘silly’ questions to ask or ideas to share, collaborators are free
to stretch their imaginations and find truly innovative solutions to challenging
problems. With a respectful consideration of ideas among all colleagues in a
discussion, there’s greater room for growth, understanding, and effective
collaboration.

11. Provide an informal venue

If members of your organization only communicate and collaborate formally

during meetings or special projects, there’s a very important human element
missing from the equation.

This doesn’t mean you need to tear down all the interior walls in your office and
put everyone in an open floor plan or buy a ping pong table. The key is to provide
the cultural environment and the physical spaces people need in order to ‘run into’
one another, and encourage the spontaneous conversations that can often result
from those impromptu meetings.

Although there are fewer opportunities to build physical spaces for informal
collaboration on remote teams, it’s still possible to manufacture these spaces and
experiences. For example, keeping an informal channel in your team
communication tool, or regular video chats can make a difference.

It can also be valuable to provide other informal opportunities to collaborate

outside the office, whether that takes the form of company-sponsored volunteering
events, a sports league, a trivia team, or any number of other activities that can
bring a diverse crew together.

PAST PAPER QUESTIONS

1. Outline three consequences that may be faced by an organization that does
not have an effective human resource department
(3marks)
2. An organization chart plays certain functions in an office. Explain four such
functions (8 marks)
 3. State three advantages of the line and staff organization structure
(3 marks)
4. Explain five factors that management should consider when selecting an
appropriate organization structure. (10 marks)
5. Outline five factors that should be considered when locating departments in
an organization (10 marks)
6. Outline the benefits that may accrue to an organization that adopts a well-
designed organization structure (10 marks)
7. State three uses of an organization chart (3 marks)
8. Explain six functions of the finance department in an organization
(9 marks)
MEANING OF PERSONNEL

It is the office staffs that carry out all the administrative and clerical functions, in
order to achieve the objectives of an organization.

Types of Office Personnel, duties and responsibilities

1. Executive Assistant

Executive assistants provide administrative support to upper executives and assist

with their daily responsibilities. This includes basic clerical duties such as
answering phones, taking messages, welcoming visitors, scheduling meetings, and
making travel arrangements. An associate’s or bachelor’s degree is preferred.
Attention to detail and efficiency are a must.

Executive Assistant Responsibilities:

 Preparing financial statements, reports, memos, invoices letters, and other

documents.
 Answering phones and routing calls to the correct person or taking
messages.
 Handling basic bookkeeping tasks.
 Filing and retrieving corporate records, documents, and reports.
 Researching and conducting data to prepare documents for review and
presentation by boards of directors, committees, and executives.
 Helping prepare for meetings.
  Accurately recording minutes from meetings.
 Greeting visitors and deciding if they should be able to meet with
executives.
 Using various software, including word processing, spread sheets, databases,
and presentation software.
 Reading and analysing incoming memos, submissions, and distributing them
as needed.
 Making travel arrangements for executives.
 Performing office duties that include ordering supplies and managing a
records database.
 Experience as a virtual assistant.
 Opening, sorting and distributing incoming faxes, emails, and other
correspondence.
 Provide general administrative support.

2. Accounts Manager

 Account managers maintain the strategy and business relationships with

clients for their company. They are responsible for understanding their
client's long- and short-term needs, and directing the company’s resources
and products to help meet those goals. They serve as the client's main point
of contact and will often provide recommendations or "upsells" to enhance
their client's success.

Duties and responsibilities

 Manage and oversee the daily operations of the accounting department

including:
o month and end-year process
o accounts payable/receivable
o cash receipts
o general ledger
o payroll and utilities
o treasury, budgeting
o cash forecasting
o revenue and expenditure variance analysis
 o capital assets reconciliations
o trust account statement reconciliations,
o check runs
o fixed asset activity
o debt activity

 Monitor and analyse accounting data and produce financial reports or

statements
 Establish and enforce proper accounting methods, policies and principles
 Coordinate and complete annual audits
 Provide recommendations
 Improve systems and procedures and initiate corrective actions
 Assign projects and direct staff to ensure compliance and accuracy
 Meet financial accounting objectives
 Establish and maintain fiscal files and records to document transactions

3. Office Manager

An office manager oversees the daily working of an office, often in a corporate or

medical setting. Office Managers are highly organized and thorough, as well as
knowledgeable about all aspects of the office’s workings. They liaise with
management and employees to help meet clerical and supply needs. They also may
deal with customers regularly and should have strong people skills.

Duties and responsibilities

 organising meetings and managing databases

 booking transport and accommodation
 organising company events or conferences
 ordering stationery and furniture
 dealing with correspondence, complaints and queries
 preparing letters, presentations and reports
 supervising and monitoring the work of administrative staff
 managing office budgets
 liaising with staff, suppliers and clients
 implementing and maintaining procedures/office administrative systems
 delegating tasks to junior employees
  organising induction programmes for new employees
 ensuring that health and safety policies are up to date
 using a range of software packages
 attending meetings with senior management
 Assisting the organisation's HR function by keeping personnel records up to
date, arranging interviews and so on.

4. Accounts Payable Clerk

 An accounts payable clerk processes payments and transactions in

accordance with financial policies. On a typical day, clerks will handle daily
transactions by classifying, computing, and posting accounts receivable data;
clerks also prepare bills and invoices for banking purposes. A bachelor's
degree in accounting, finance, or business administration is typically
required.

Duties and responsibilities

. Process accounts and incoming payments in compliance with financial policies

and procedures

. Perform day to day financial transactions, including verifying, classifying,

computing, posting and recording accounts receivables’ data

. Prepare bills, invoices and bank deposits

. Reconcile the accounts receivable ledger to ensure that all payments are
accounted for and properly posted.

. Verify discrepancies by and resolve clients’ billing issues

. Facilitate payment of invoices due by sending bill reminders and contacting

clients

. Generate financial statements and reports detailing accounts receivable status

5. Administrative Assistant
Administrative assistants perform clerical duties to help an organization run
smoothly. As the go-to person within a company, their responsibilities might
include filing documents, scheduling appointments, answering the phone, greeting
visitors, and providing general support to other office workers. They must be
organized and friendly, as they are often as the first impression of the company for
clients.

Duties and responsibilities

 Answer and direct phone calls

 Organize and schedule meetings and appointments
 Maintain contact lists
 Produce and distribute correspondence memos, letters, faxes and forms
 Assist in the preparation of regularly scheduled reports

 Develop and maintain a filing system

 Order office supplies
 Book travel arrangements
 Submit and reconcile expense reports
 Provide general support to visitors
 Provide information by answering questions and requests
 Take dictation
 Research and creates presentations
 Generate reports
 Handle multiple projects
 Prepare and monitor invoices
 Develop administrative staff by providing information, educational
opportunities and experiential growth opportunities

 Ensure operation of equipment by completing preventive maintenance

requirements; calling for repairs; maintaining equipment inventories;
evaluating new equipment and techniques
 Maintain supplies inventory by checking stock to determine inventory level;
anticipating needed supplies; placing and expediting orders for supplies;
verifying receipt of supplies
  Maintain professional and technical knowledge by attending educational
workshops; reviewing professional publications; establishing personal
networks; participating in professional societies

 Contribute to team effort by accomplishing related results as needed

 Carry out administrative duties such as filing, typing, copying, binding,
scanning etc.
 Organize travel arrangements for senior managers
 Write letters and emails on behalf of other office staff
 Book conference calls, rooms, taxis, couriers, hotels etc.
 Cover the reception desk when required
 Maintain computer and manual filing systems
 Handle sensitive information in a confidential manner
 Take accurate minutes of meetings
 Coordinate office procedures
 Reply to email, telephone or face to face enquiries
 Develop and update administrative systems to make them more efficient
 Resolve administrative problems
 Receive, sort and distribute the mail
 Answer telephone calls and pass them on
 Manage staff appointments
 Oversee and supervise the work of junior staff
 Maintain up-to-date employee holiday records
 Coordinate repairs to office equipment
 Greet and assist visitors to the office
 Photocopy and print out documents on behalf of other colleagues

6. Data Entry Clerk

Data entry clerks input and update information into computer databases for
companies. This includes digitally scanning and organizing documents and
manually inputting information. Basic knowledge of office machinery, as well as
proficient typing skills and high computer literacy, are a must. Data entry clerks
must be familiar with word processing programs (Excel, Word, etc.), highly
organized, and detail oriented.

Duties and responsibilities

· Insert customer and account data by inputting text based and numerical
information from source documents within time limits

· Compile, verify accuracy and sort information according to priorities to prepare

source data for computer entry

· Review data for deficiencies or errors correct any incompatibilities if possible

and check output
· Research and obtain further information for incomplete documents
· Apply data program techniques and procedures
· Generate reports, store completed work in designated locations and perform
backup operations
· Scan documents and print files, when needed
· Keep information confidential

7. Office Assistant

An office assistant provides general administrative support for an office. They

work directly for an administrator or a supervisor. Office assistants handle
organizational and clerical support tasks. These tasks may include filing,
scheduling appointments, writing copy, proofreading, receiving mail, and
providing customer service. A high school diploma or equivalent is required, but a
bachelor’s degree is preferred.

Duties and responsibilities

· Organize office and assist associates in ways that optimize procedures

· Sort and distribute communications in a timely manner
· Create and update records ensuring accuracy and validity of information
· Schedule and plan meetings and appointments
· Monitor level of supplies and handle shortages
· Resolve office-related malfunctions and respond to requests or issues
· Coordinate with other departments to ensure compliance with established policies
· Maintain trusting relationships with suppliers, customers and colleagues
· Perform receptionist duties when needed

8. Office Clerk

An office clerk plays an essential role in the smooth operation of any office. They
are constantly busy with many tasks, including answering phones, making copies,
data entry, managing communications and any other general clerical task that
needs to be done. Office clerks should have great organizational, typing, and
multitasking skills and possess a high school diploma or degree.

Duties and responsibilities

· Maintain files and records so they remain updated and easily accessible
· Sort and distribute incoming mail and prepare outgoing mail (envelopes,
packages, etc.)
· Answer the phone to take messages or redirect calls to appropriate colleagues
· Utilize office appliances such as photocopier, printers etc. and computers for
word processing, spread sheet creation etc.
· Undertake basic bookkeeping tasks and issue invoices, checks etc.
· Take minutes of meetings and dictations
· Assist in office management and organization procedures
· Monitor stocks of office supplies (paper clips, stationery etc.) and report when
there are shortages
9. Mail Clerk

A mail clerk is a person who works in the mailroom of an office building. They are
highly organized and very good at clerical tasks. Mail clerks are responsible for
sorting mail and seeing that it gets to the right department and sorting out junk mail
and process outgoing mail for the employees of the company. They also make sure
company offices are properly stocked with supplies for mailing.

Duties and responsibilities

· Sign for incoming registered or certified mail

· Sort mail by department, location or category (e.g. bills, notices, personal)

· Stamp and record date of receipt and sender’s name
· Keep records of incoming packages, including their weight, return address and
description
· Collect and prepare correspondence to be mailed (e.g. applying appropriate
stamps, verifying addresses)
· Correct and re-forward misdirected mail
· Arrange for express delivery when needed
· Distribute mail to individuals or departments
· Track mailroom supplies (e.g. stamps, envelopes, address labels)
10. Receptionist

Receptionists work in an administrative role in an office or other business. They

greet clients, patients, vendors, or anyone else who enters the company’s office or
facility.

The receptionist is typically the first person you see representing the company, so
part of their job is to make a good impression on everyone they meet. They also
answer phones and other administrative tasks. Specific job duties depend upon the
industry in which they are employed.

Duties and responsibilities

 Diary management and management of meeting rooms

 Possibly handling event coordination, both internally and externally
 Handling queries and complaints via phone, email and general
correspondence
 Greeting all visitors
 Transferring calls as necessary
 Possibly managing office supplies such as stationery, equipment and
furniture
 Performing ad-hoc administration duties
 Maintaining office services as required (such as cleaners and maintenance
companies)
 Receiving and dispatching deliveries
 Assisting with mail as required
 Taking and ensuring messages are passed to the appropriate staff member on
a timely basis
 Assisting the HR team with recruitment, on-boarding and termination
processes

11. Personnel manager

Duties and responsibilities

1. Advisory Role:

The personnel department has functional relationship with other

departments/managers in the total organisation. As a specialist, the personnel
manager advises the heads of different functional departments on various aspects
of human resource management e.g., manpower planning, recruitment, selection,
training, appraisal, compensation etc.

He represents management in many of the relationships that affect the organisation

as a whole. He is also responsible for conveying the problems, grievances or
simply opinions of workers to management. The personnel manager should
provide suggestions and assistance very tactfully, in order to win the confidence
and cooperation of all the line managers. Staff assistance is likely to be effective
when it is wanted rather than imposed. He has to persuade the line managers to
work with staff specialists and not against them.

2. Counselling Role:

The personnel manager plays the role of a counsellor with the employees also. He
discusses the various problems of the employees relating to work, career, their
supervisors, colleagues, health, family, financial, social etc. and suggests those
means to minimise and overcome those problems.

3. Role of a Change Agent:

Personnel manager works as a change agent regarding personnel areas. To be an

effective consultant, he should be familiar with the needs and changing
environment of the business. He should initiate and spearhead necessary
improvement in human resource policies.

As a consultant, he can provide necessary infrastructure and support for

organisation development. He helps in introducing and implementing major
institutional changes in the organisation.

4. The Conscience Role:

While playing the conscious role, the personnel manager informs the management
about the humanitarian approach. He should advise the management about the
moral and ethical obligations towards the employees.

5. Mediator’s Role:

The personnel manager often acts as a mediator in the organisation. Whenever

there is a friction between two employees, two groups of employees, superiors and
subordinates and employees and management, the personnel manager has to act as
a mediator, so as to maintain industrial harmony.

6. Liaison Role:

The personnel manager acts as a representative of the organisation so as to give an

overall picture of the organisational operations to the employees particularly in
case of industrial disputes or grievance re-dresses. Similarly, he acts as employees’
representative in representing their problems to the management particularly in
concerns where trade unions are not there.

7. Legal Role:

The personnel manager plays this fire fighting role of grievance handling,
settlement of disputes, handling disciplinary cases, collective bargaining, joint
consultation, interpretation and implementation of various labour laws, contacting
lawyers regarding court cases, filing suits in labour courts, industrial tribunals,
civil courts and the like.

8. Welfare Role:

Under Section 49 of the Factories Act, a welfare officer has to be appointed in

specific factories. Personnel manager is expected to be the welfare officer of the
company. As a welfare officer, he provides and maintains (on behalf of the
company) canteens, hospitals, educational institutions, clubs, libraries, conveyance
facilities; cooperative credit societies, consumer stores etc.

9. Controller’s Role:

The personnel manager assists the line managers in effective implementation of

personnel policies and programmes. His advice and service is essential for
monitoring and controlling the progress. As an arm of the top management, the
personnel manager ensures that the personnel policies and procedures approved
and adopted by the management are being consistently carried out in all the
departments.

10. Human Relations Role:

Personnel manager is supposed to be an expert in human relations. He is expected

to improve productivity by fulfilling the economic, social and psychological needs
and aspirations of employees. Personnel manager also has to meet the challenge of
a fast changing post-industrial society.

ROLE OF HUMAN RELATIONS IN AN OFFICE

1. Organization is a social system:

The organization is a social system composed of many interacting parts. The social
system lays down roles of individuals and establishes norms that may differ from
those of the formal organization. The workers follow social norms determined by
their co-workers, which define the proper amount of work, rather than try to
achieve the targets that management thinks they can achieve.

2. Existence of informal groups:

The informal groups also exist within the framework of the for¬mal organization,
and it affects the formal organization.

3. Influence of group behaviour:

At the workplace, the workers often do not act or react as indi¬viduals, but as
members of groups. The group plays an important role in determining the attitudes
and performance of individual workers.

4. Emergence of informal leadership:

There is an emergence of informal leadership as against formal leadership and that

sets and enforces group norms. It helps the workers to function as a social group,
and the formal leader is rendered ineffective unless they confirms to the norms of
the group of which they are supposed to be in charge.
5. Two-way communication:

Two-way communication (upward and downward) is necessary to know the

sentiments of employees in the organization.

6. Influence of socio-psychological factors:

The human is diversely motivated, and socio- psychological factors (non-monetary

rewards) act as important motivators.

7. Integration of organizational and individual goals:

There is always a conflict between organizational and individual goals. For smooth
functioning of the organization, it is necessary to achieve the integration between
the goals of the organization and those of the individual.

8. Relate work and the organizational structure to the social needs:

The human relations school believes that it is necessary to relate work and the
organizational structure to the social needs of the employees. In this way, by
making the employees happy, the organization will obtain their full cooperation
and effort and thus increase its efficiency

QUESTIONS

1. Ensuring efficient flow of work in an office is a major responsibility

of an office supervisor. Outline how may carry out this responsibility
(10 marks)
2. Outline the problems that may be experienced in an organization
when relationships between employees are strained (10 marks)
3. Outline three responsibilities of a personal secretary (3 marks)
4. Explain four qualities of an efficient supervisor (8 marks)
5. Outline five ways in which an office supervisor may enhance good
relations with his subordinates (10 marks)
6. Explain five measures that may be taken by an office manager to
enhance employee security (10 marks)
 7. Outline five qualities that an office receptionist should possess in
order to perform his duties effectively. (10 marks)
8. State three duties of a store keeper (3 marks)
9. Explain six ways in which poor human relations between the
employees and the management an affect an organization(9 marks)
[Link] office manager of Pelikam limited has not been successful in
performing his duties. Explain the personal characteristics of the
manger that may contribute to this failure (9 marks)

FILING AND STORAGE OF RECORDS

SPECIFIC OBJECTIVES

By the end of this topic, the trainee should be able to

. Explain the meaning of filing

. Explain various filing systems

. Describe various methods of classifying documents

. Explain the various uses of filing equipment

. Describe the follow up methods in filing and storage of records

FILING
DEFINITION OF FILING
Filing can be defined as the careful, systematic and scientific perspective of written
documents catches as letters and circulars for easy, accurate and speedy reference
whenever required in the future. It is the core function of record management. In
an office, it is essential that records are kept for future reference. Thus, we can say
that filing is the process of arranging and storing documents in proper location so
that they can be obtained whenever needed.
OBJECTIVES OF FILING
1. To collect and arrange documents:
 The very first objective of filing is to classify and arrange records properly.
The necessary documents are collected and the unwanted ones are not
arranged. The documents are prepared by various levels of employees. The
collected documents are classified on the basis of their nature and
importance.
2. To store records:
After collecting and arranging data, it is necessary to store the records
carefully. Unsafe methods and carelessness may result in loss of documents
and cannot be produced in time. Thus, the objective of filing is to store the
records properly.
3. To provide evidence:
Any case of disputes can be settled with the help of proof of evidence
provided by the records stored through filing. Thus, providing evidence is an
objective of filing.
4. To locate records easily:
The main objective of filing is to facilitate easy location of required documents. If
the records are filed in a proper systematic manner, they can be easily obtained
whenever required.

THE QUALITIES OF A GOOD FILING SYSTEM

In order to achieve its objective effectively and efficiently, every filing system
must have the following qualities:
Simplicity:
A filing system should be simple not vague and ambiguous. Ambiguous systems
create confusion among the workers involved in filing. Thus, a good filing system
should be simple and easy to understand.
Flexibility:
A good filing system should be flexible enough to meet the expansion and
contraction of files in the system. Thus, it should be able to adapt with the changes
in the environment.
Space:
A filing system should cover as less area as possible. Since, today, office spaces
are very expensive, wise-use of them will be a good quality for filing system.
Economy:
A good filing system should be purposeful and within the budget allocated. It
should be economical in terms of shape and equipment.
Easy reference:
A good filing system should be able to easily locate recorded files whenever
required.
Safety:
A good filing system should be able to provide adequate safety and security to the
files against possible theft, insect, fire, etc.
Retention:
A good filing system should be able to discord useless documents and retain the
useful ones for filing. Retention of important documents is an important quality of
a good filing system.
Classification:
A good filing system should be able to classify all documents properly and
scientifically on the basis of their nature of importance.
Out-guides:
Out-guides will state who has taken the documents. It is essential to know where
the documents are. Thus, out-guides are essential quality of a good filing system.
FILING IMPORTANCE
Filing plays a vital role in the smooth operation of an organization. Filing is very
important for the any form of organization. Their importance is explained as
below:
Protection of records: a proper filing system protects valuable documents from
possible hazards and ensures their safety. Files are kept in drawers or cabinets and
are protected from theft, insect, water, etc. Thus, it is necessary to preserve
documents to prevent them from future damages.
Evidence: some important documents can be put forward to settle dispute and
misunderstandings. The documentary evidence may be related to terms, controls
and agreements. This makes the preserved documents a source of settling disputes.
Ready reference: filing as defined assists the management in the timely reference
of information without losing time. Management always requires varying
information on products, sales, and purchase and so on. This information can be
made easily available, if they are classified properly under filing within a short
span of time.
Planning and policy making: filing is important in planning and policy making
function of a management. Since, plans and policies are formulated considering
past and present information; filing provides all kinds of operational information to
the management whenever required.
Following-up work: a good filing system is essential for a proper follow up. Post
records are always helpful for initiating follow up operations. Whenever any
changes are made in products, customers and supplies are informed through the
previous records of them made available by filing.
Prompt decision: a decision maker makes decisions based upon past events and
present. Filing makes available all past and present information required by the
decision maker very quickly and easily. This aids in making prompt decisions.
FILING SYSTEMS
3 Components of a Good Filing System

There are filing systems that make it easy to find what you are looking for, and
easy to return it to its proper place when you are finished, and what they have in
common is that all of them optimize the three basic components of a good filing
system:
1: The Finders

The whole purpose of a filing system is to provide a method for finding a specific
document among many. No matter if you are managing hundreds of thousands of
records for a large company or simply organizing your personal documents, you
need a way to quickly find the one you want. The Finders are the indexing element
of your filing system. They are what identifies each file, and give it its own unique
place in the filing system.

Indexing methods range from simply writing names on folder tabs to computer-
generated strip labels complete with names, numbers, colour codes and bar codes
for electronic tracking. In most cases, filing systems are either indexed
alphabetically by a file name, or numerically using an account or transaction
number. Both indexing methods work well and your choice depends on the types
of records you use, and how they are used.

2: The Keepers

Keepers are what you keep your documents filed in. More than just a folder, the
keeper serves as the individual storage device for documents, and is the central unit
of the filing system. In its simplest form, a keeper may be a manila file folder with
a name on it. But keepers can do much more to help users find information within
the file itself. Fasteners and dividers can sort papers into categories, keep them
secure and in proper sequence. Coloured folders within hanging files can group
records for quick reference. Expanding pockets can hold lots of bulky paperwork.
The colour of the file itself can be used to signal different types of records. Look at
the kind of documents you use, and choose a keeper that enhances your work
processes and saves you time.

3: The Storage

Your choice of filing equipment has a significant impact on the effectiveness of

your filing system. Standard vertical file cabinets are fine if you have a relatively
small amount of files that you want to keep near a desk. Lateral file cabinets
provide a little better access and use less space. Large filing systems are most
efficient when stored on file shelving with keepers whose tabs are on the side
instead of the top. Shelf filing systems make the best use of office space, provide
the fastest access to records and are the least expensive to set up and use.

Take a look at the Finders, Keepers and Storage of your filing system. By
examining how each of the three components works together to create an efficient
filing solution, you can create a system that is easy to use, and will save you time
and money.

Different types of filing systems

There are several decisions that need to be made when you're setting up your
records management program. One of the hardest decisions, and sometimes the
most controversial, is whether or not your records should be "centralized" or
"decentralized."

There are several issues to consider when making the decision on where your
records should be located. One of the best ways to approach it is to review the
advantages and disadvantages of each system and choose the one, or combination,
that has the most advantages for your situation.

Centralized System

A centralized filing system is:

  One in which the records for several people or units are located in one,
central location; and,
 Generally, under the control of a records staff person or in the case of large
centralized filing systems, several people.

Advantages

 Responsibility is easily placed.

 Effective use of equipment, supplies and space.
 All related data kept together.
 Reduces duplication.
 Uniform service provided to all users.
 Improved security.

Disadvantages

 Records may be too distant from staff for adequate service.

 Can result in increased personal filing systems.
 Requires full-time staffing.
 May require investment in more efficient filing equipment and/or
automation.

Decentralized System

A decentralized filing system is:

 One in which the files are located throughout the office, generally at
individual work stations; and,
 Usually controlled by the person who creates and/or receives them.

Advantages

 Records located near staff creating and using them.

 Does not require "extra" space needed for centralized files.
 Does not require full-time staffing.
  Staff feels more comfortable knowing they are in control of their own filing
and retrieving.

Disadvantages

 Confusion as to where information can be found, especially if staff member

is absent.
 Can result in "fragmented" documentation - information related to the same
topic or subject filed in multiple places.
 Individual staff members may not know how to properly maintain their files.
 Lack of uniformity or consistency.

Combination System

There are also ways to structure your program using a combination,

or centralized/decentralized system, of these two approaches. Centralized control
is established through a "records liaison" or "records manager" who is the
centralized point of contact for records management in the office and who has
responsibility for maintaining the office file plan and ensuring established
procedures are followed.

METHODS OF FILING:
Basis of classification of files

Classification of files refers to the process of selecting heading under which

documents are grouped or classified on the basis of common characteristics. The
bases of classification are as follows

1. Alphabetical classification

The filing method under which files and folders are arranged in order of alphabets
of the names of person or institution concerned with such file is alphabetical
classification. It is most popular and common method of filing. In case name of
more than one person starts with same letter then second letter of name is taken
into consideration. It is flexible method. It is used in both small and large
organization.
Advantages
.simple and easy to understand

.Doesn’t need separate index

.It is flexible

Disadvantages

 Time consuming
 Difficult to arrange files
 Difficult to locate in case of common names

2. Numerical classification

The filing method under which files and folders are arranged in order of number is
called numerical classification. All files and folders are given separate numbers. It
is indirect method of classification of filing. In this filing alphabetical index is
required. It includes name, address, phone number, subject and other information
along with file number.

Advantages

 Suitable for large offices having large number of files and folders
 Accurate method of filing
 It is flexible
 Separate index can be easily developed using numbers.

Disadvantages

 It is expensive
 It is time consuming
 Not suitable for small organization
 It is not easy to operate
 Separate alphabetical index is required.

3. Subjective classification

In this filing method, records are classified according to their subject; letters and
documents are classified and arranged in files and folders into subject or sub-
subject wise. In this filing, subject must be arranged alphabetically. It is widely
used in those cases where subject is more important than the name of the person or
organization. All documents relating to same subject are filed together in one file.

Advantages

 Simple to operate
 Flexible
 Convenient
 Easy to locate

Disadvantages

 Not applicable for filing miscellaneous subject

 Time consuming
 Difficult to locate when subject matter is not properly understood

4. Geographic classification

In this method, files are grouped according to the geographical location of firm,
organization or person. Under this method name of places are written in file and
are arranged in drawer either in alphabetical or numerical order whichever is
suitable for organization. It used in multinational companies or those organizations
whose business and branches are located in many places of the nation or the world.

Advantages

 Easy to understand and use

 Can be arranged in alphabetical and numerical order
 It used in those organizations whose business is engaged in correspondence
with the businesses all over the globe or the nation.

Disadvantages

 Expensive
 Not suitable for small scale organization
 Time consuming
  No use of card or index

5. Chronological classification

In this method, files and folders of documents are arranged in an order of their
date, day, and time. In an office, several letters and documents may be received
and dispatched. They all are arranged according to time and date when they were
received and dispatched

Advantages

 Simple to understand and easy to operate

 Quickly located if their dates are known.
 Less expensive

Disadvantages

 Not suitable for large offices

 When clear dates are not mentioned then there can be difficulty.

Types of Filing Equipment

Individuals and businesses have a variety of choices when it comes to filing

equipment. Some options offer high levels of security while others can
accommodate a high density of files. The amount of space you have, the
sensitivity of the files and your preference for physical or electronic records all
influence your choice of filing equipment.

1. Physical Filing Equipment

a. Filing Cabinets

The filing cabinet is an office staple. Four drawers allowing files to be stored
laterally is standard.

Filing cabinets are beneficial if you need to keep records secure.

Because these cabinets can be locked, a company can limit access to sensitive
files while still allowing employees and visitors to enter the room.

Cabinets tend to be the most expensive and have the most limited capacity.
b. Open Shelving

Units are similar to open bookcases and are specifically designed for folder
height and width. The design allows users easy access to files and can be either
stationary or be mobile if rollers are attached to the bottom.

. Open shelving saves on space and money.

. Shelf filing equipment typically is three times less expensive than filing
cabinets.

. Compared to a four-drawer filing cabinet, a seven-tier open shelving system has

80 per cent more capacity.

. Mobile shelving can be placed in higher density and offers more capacity than
cabinets.

2. Digital Filing Equipment

Individuals and businesses that want to take advantage of technology can store
files digitally rather than physically. Electronic documents are saved directly into
the system, and physical documents can be scanned and converted into a digital
format. Digital filing systems allow users to search information quickly and keep
data secure.

As with physical filing, users have a choice of systems and equipment for a
digital system. Files can be organized and stored locally on a laptop's or PC's
internal hard drive.

a. External Devices

It's convenient to use a computer's internal hard drive to store files, but you risk
losing your information if the hard drive is corrupted or physically damaged. To
mitigate this risk, users may want to back up data to an external device. PC
World recommends backing up critical files to an external hard drive and using a
thumb drive to transfer files as needed.
Users can also back up data to a cloud-based service, like Google Drive or
Dropbox, which doesn't require any additional equipment.

b. Servers

Businesses that want multiple parties to have access to the same data may want to
invest in a server. Servers act as a central repository for many users' files. PC
World notes that businesses can host multiuser applications -- like databases and
enterprise resource planning systems -- on the server. This makes it easy for a
large number of individuals to have access to the same files. Server data can be
backed up to an external device or the cloud for extra security.

Physical servers look similar to a high-end PC. Alternatively, businesses can

choose a cloud-based hosting service -- Amazon Web Services, Windows Azure
and Rack space Cloud Services are all options -- which don’t require a physical
server.

Types of Records Management Systems

Missing business receipts or invoices, misfiled documents and corrupt files are all
common complaints among business owners. Furthermore, employees spend half
their time searching for information related to their company's activity.
Companies large and small are required to keep their records for a certain period.
Bank and credit card statements, for instance, should be stored in a secure
location for at least seven years. The same goes for tax return preparation
documents. Investment account statements, cancelled checks and pay stubs must
be kept for at least one year.

The documents may be damaged or the computer hacked or the building catches
fire ad all the files are lost. Keeping copies in a separate room will attract more
expenses in terms of rent.

A records management system (RMS), can make everything a lot easier. This
kind of software allows you to store find and use official records as evidence of
transactions, payments and other business operations. The latest document and
records management programs have advanced features like search tools, scanning
capabilities, retention and classification tools, compliance tracking functions and
more.
Records management not only ensures that your files will be readily available
whenever you need them, but it can also improve workflow and productivity
within your organization. Employees will be able to quickly retrieve data, process
information, identify the owner of each series of records and eliminate redundant
data.

Cloud-Based Records Management Software

With a cloud-based records management system, you have all your documents in
one place. This digital storage solution acts as a warehouse for the files within
your organization, allowing you to access them anytime, anywhere. It's
particularly useful for companies with remote teams as well as those with offices
in multiple locations.

This type of RMS software keeps your data rather than sending emails back and
forth. Since the data is stored on the host's servers, it's less vulnerable to cyber-
attacks.

Enterprise Records Management Software

Large organizations typically opt for enterprise records management software.

These programs have advanced capabilities and can store, organize and process
large amounts of data. With an enterprise RMS system, you'll find it easier to
manage physical and digital records, track the status and location of each file and
transfer your data from legacy systems to the latest software.

For best results, choose a program with secure user access controls, real-time data
indexing and disposal management mechanisms. A reliable enterprise RMS
system allows you to place records on hold, conduct full-text searches and import
physical and digital records in any format from any source. These features can
streamline your business operations and lead to better decision-making.

These types of records management software can be further broken down into
several other categories. Content management systems, document management
systems and digital imaging systems are just a few to mention.

The choice between the two depends on the company’s budget.

Lateral vs. Vertical Files

Computer technology is driving us into an era of electronic storage. Businesses of
all kinds are trending in the direction of the paperless office in an effort to reduce
costs and increase efficiency. In spite of this growing emphasis on computerized
data, much of the business conducted still relies on hard-copy document storage.
Types of filing cabinets include lateral and vertical file systems, and the decision
to use either in an office environment is dependent upon a variety of factors.

Vertical Filing Cabinet

Vertical cabinets are the most traditional of the principal file cabinets in popular
use. They may be constructed of wood or metal and are available with two, four
or five drawers. Two-drawer files are produced to match standard desk heights as
a matter of work compatibility. Five drawer vertical files are typically 60 inches
high and not commonly used in working offices because the upper drawers are
too high for easy access; they are used in mass storage areas where space is at a
premium.

Vertical files are supplied in two basic drawer sizes to accommodate standard
letter and legal size documents.

Lateral Filing Cabinet

A lateral filing system offers some distinct advantages over using vertical files.
Lateral files can accommodate both letter- and legal-size documents, and they
usually provide as much as one-third more filing room than vertical file drawers.
Because they are available in desk heights, they serve the dual purpose of file and
credenza.

Where the work station requires constant availability of certain files, the lateral
file is an ideal filing solution. Both drawers are easily accessed while seated.
Because of this function alone they are the preferred filing system for executives
and professionals.

How to Use a Lever Arch Folder

It is used for office work, by students and for A4-size storage of personal
documents. A lever arch folder is usually made from plastic or paper formed into
a hard surface. A central piece of equipment are the two rings onto which papers
are placed for storage, the rings can be opened and closed for the insertion and
removal of papers at any time.
Sort out the papers to be filed within the lever arch folder on a desk or flat
surface. Papers can be stored in any required order, such as numerical,
alphabetical or chronological order. Open the folder to insert the papers into it.

Punch holes into the paper documents if none are in the correct position using a
hole punch. Fold the paper in half and line up the fold mark with the centre of the
hole punch to get two holes positioned around the centre of the document.

Unlock the central locking clip on the ring in the centre of the lever arch folder
and flip the lock to the unused side of the folder. Pull the metal rings apart to
allow access to the rings for storing papers.

Place the holes punched into the documents over the metal rings on the side of
the folder that does not contain the locking clip. Insert papers and push the rings
together.

Flip the locking clip to the side with the papers so it is positioned on top of the
papers to be stored, press the locking mechanism on the file down to hold the
papers firmly in place. Close the lever arch folder and store.

The Advantages of Terminal Digit Filing

Terminal digit filing is a filing system that works by using the last two numbers
on files to organize them. It then follows the numbers in reverse order to pinpoint
the needed file. As a result, this numerical system of filing is efficient for many
large-scale companies. Terminal digit filing has four main advantages that
distinguish it from other filing systems.

Simple Management

One of the biggest advantages of terminal digit filing is that it's relatively simple
to manage. Since files are separated numerically, it's easy for personnel to track
down a file in a short period of time. All an individual has to do is track numbers
in reverse order until the file is found.

Large-Scale Companies

If a company needs to store over 10,000 files, using a terminal digit filing system
is ideal. The design of this filing system is perfect for managing thousands of
files and maintaining organization. While other systems, like alphabetic or color-
coded filing, can only handle a small number of files, terminal digit filing can
handle substantially more. As a result, this form of filing is often the choice of
large hospitals.

Prevents Crowding

An added benefit is that it also prevents crowding around the filing system. Since
terminal-digit filing keeps files widely distributed by dividing them into 100
sections, it creates more space and helps prevent multiple personnel from
crowding around a concentrated area. In turn, time is saved and a company's
work flow can run more smoothly than it would with an alternative filing system,
such as an alphabetic one.

Social Security Numbers

Another advantage is that keeping track of individuals via Social Security

numbers is ideal for terminal digit filing. Working backward from the final unit to
the secondary unit to the primary unit makes it easy to find an individual's file.
This makes terminal digit filing perfect for government agencies.

Different Types of Electronic Filing

Businesses today are quickly converting from a traditional paper filing system to
computer-based methods of filing, known as electronic filing systems. The
purpose of a filing system is to provide convenience; speed and ease in entering,
accessing and retrieving stored information. Several different types of filing
systems exist with various purposes.

Disk Filing Systems

Most commonly used for data storage, disk drives can be an attached part of a
computer or detached and plugged in to use on any computer. Programs are
stored on your computer's disk drive. CDs and DVDs are created using data
obtained from disk drives.

Flash File Systems

Flash files are small, usually portable electronic devices that conveniently store
huge amounts of media storage. Flash files can be used to transfer data such as
documents, photos, videos and music in a matter of seconds. Memory sticks and
memory cards are two popular examples of flash files.
Transactional Filing System

Used primarily by banks, the transactional filing system interconnects many

computers using one program. Any changes made to this filing system
automatically update on all other computers connected to the program. A prime
example of a transactional filing system in action is when you are purchasing an
item in a store and your credit card is accepted or declined, according to your
available balance. When you run your card through this system, it is in
communication with all other computers on the same transactional filing system,
therefore "knowing" whether your card will cover this balance. When you make
your purchase, your credit card balance automatically declines accordingly and
the entire system is instantly updated.

Network File System

This type of electronic filing system allows computers on a network to access

files from an administrator's computer. For example, a business owner
(administrator) may have files on his computer that his client needs to have
access to. The administrator can set permissions to allow this particular client
access to the network filing system, and now either party can make changes or
create additions to files.

Follow up methods in filing and storage of records

Although many of the files we currently create may be electronic, we will always
have to cope with paper files.

i. Processing records for filing

 check to see that the material is complete

 analyse the item for inclusion in the appropriate primary classification
 analyse the item for inclusion in the appropriate record series
 analyse the item for inclusion in the appropriate folder
 file the item in the front of folder
 if a folder does not exist, create a label for a new folder
 integrate the folder into the system

ii. Returning records to the file

  check to see that the material is complete
 enter the date of return on the out -card
 remove the out -card and replace it with the folder

iii. Charge-out rules: out cards

 users check out folders, never individual documents

 out cards are used to monitor the removal of folders from the file

Information on the out - card should include:

 file folder title

 borrower name
 date charged out
 date returned

For convenience keep several out cards in the front of each file drawer or on top of
each file cabinet. The out cards can be personalized for individual users for greater
convenience. Out cards personalized for an individual need only contain file folder
title, date charged out, and date returned.

iv. Cross-referencing

When to cross-reference:

 when the subject matter is broad and contains several different filing
features, or is closely related to two or more subjects when the document
affects or is functionally connected to two or more departments
 when a document is moved from one location to another

# Cross-referencing forms

A cross-referencing form is the recommended means of documenting the existence

of related information located in a different section of the filing system. Cross-
referencing forms are most useful when they are developed to meet the needs of
individual offices. The most simple cross-referencing forms follow the example of
out -cards and list the location of all material related to each record series on one
sheet of paper or card which is filed in front of the record series. It is more
effective to use one cross-referencing form per record series than to create a
separate cross-referencing form per item or folder. There is little difference
between filing a duplicate copy of a document and creating a form for each cross-
referenced item. Both increase the need for filing space, supplies, and equipment.
Both increase the time spent retrieving or re-filing records.

WORK STUDY

QUESTIONS

1. Outline three reasons that make it necessary for office correspondence

to be filed. (3 marks)
2. For a filing system to be effective, should possess certain essential
qualities. Outline six such qualities. (9 marks)
3. Explain sic qualities of a good filing system ( 9 marks)
4. Outline two benefits of using the subject filing system
(2marks)
5. Explain the reasons why many organizations prefer to use the vertical
filing method (10 marks)
6. The use of computers has revolutionized filing in offices. Five aspects
of filing that have been affected by this development
(10 marks)
7. Explain six principles of records management ( 12 marks)
8. Outline five demerits of microfilming office documents in an
organization (10 marks)
9. State three advantages of the chronological filing system.
(3maeks)
10. Manga Company limited does not file its documents in an orderly
manner. Explain four ways in which this trend is likely to affect its
business operations. (8 marks)