Topic 1 Introduction to Office Management

The complexities at business are increasing every day.

An office: is a vital segment of any commercial enterprise, may be large or small. In olden days – all jobs were done by proprietors who sat in small congested rooms that were poorly lighted.  

Business activities were done manually.

The Proprietor of a business would sit in an office and supervise the work and deals with customers and visitors.

In earlier period production was generally from limited raw materials available locally, marketing the products was also confined to the local market.

Business-men were interested in maximising profits through production and marketing. A few decades ago an office was defined as a place where clerical work is performed for the successful operation of an institution. 

TODAY……….

Office activities have undergone vast changes.

The world have witnessed spectacular development in science, technology, industrialization, transport, communication etc. Modern concept view office as a function:-

·         it directs

·         controls and

·         Coordinate office work where ever it is done and who ever does it.

Offices are developed on scientific principle and their management and administration is in the hands of qualified and trained managerial personnel. 

Changing office scene

Offices are now;

·         well ventilated

·         well lighted

·         Air-conditioned with up to date furnishing with alluring designs.

Management and administration in the hands of specialized managers. Managers sits in separate rooms. Clerks are supervised by supervisors, through office systems, routines, office manuals etc. Changes have led to;

·         Expansion in production and business activities.

·         As the business enterprise grows there is a corresponding increase in the volume of office work.

·         The office activities are performed by specialized clerks, Receptionists Cashiers etc.

·         division of labour.

·         Offices becoming more and more hi-tech.   

Office is an important section of business. The Term business implies office work.

Meaning of office:

“a place for the transaction of business, the room or department where the clerical work is done,”(dictionary meaning) or we can say “ a place where business is carried on,” or it is “a place where all sort of activities of organizations are dealt with.” 

Office can be seen as follows;

·         As the Centre of an organization.

·         Acts as central directing and coordinating agency. 

According to Modern age “office” is used in a broader sense. Prof. Dicksee states, “an office is to a business what the mainspring is to a watch.” An organization cannot be carried on without an office, as a watch without the mainspring is useless.

A commercial office can be called a clearing house of all essential business information. The office has to receive or collect all information of the business, process the collected information (analyse, arrange and classify) and put them into understandable form on the one hand and on the other hand, the processed information has to be presented or communicated to the management of the business as and when required.  

Definitions of office

“The essential feature of the office is the work itself, not who does it or where it is done. If it is office or clerical work in one place, it is office clerical work everywhere regardless of where the work is done or who does it.” (Leffingwell and Robinson).

“The office is not in one place; no matter how much we centralise its services, there will still be office work at the point of use. Some enterprises are almost all office. The activities of the office do not, strictly speaking, constitute a function, they are part of all functions.” Charles O Libbey.

“If it is office work in one place, it is office work everywhere, regardless of office work as such, where ever it is done and whoever performs it, is often the first step towards improving the performance of that work. That is, the principles applicable to the performance of office work in one place are usually applicable to the performance of the same work elsewhere.” Leffingwell and Robinson.

“Office is a unit where relevant records for the purpose of control, planning and efficient management of the organization are prepared, handled and preserved.  Office provides facilities for internal and external and internal communication and coordinates activities of different departments of the organization.” Littlefield and Rachel.

In a business organization, the chief executive and his management team cannot deal personally with all the communication and cannot remember the facts connected with it. There, the office comes to their rescue by providing with relevant facts and figures on the basis of which the management exercise its managerial functions of planning, co-ordination and control.

According to Leffingwell and Robinson, a well-organized office makes it possible for the management to plan its operations intelligently, to put its plans into effect surely, to follow their progress currently, to determine their effectiveness promptly, to appraise the results without delay and to coordinate all activities of the business. 

Office Work

Office work is mainly concern with clerical work or paper work which is very narrow minded and an old concept. Now-a-days, office work has a wider scope.

Is primarily concern with making, preserving and using records? The records are concerned about purchasing, producing, selling, accounting and correspondence, inventories and written or printed memorandum of all kinds. These records are essential for an efficient and effective control of operation of the organization. 

Purpose of an Office

·         To preserve all the records of the business.

·         To handle incoming correspondence.

·         To plan the policies of the business and ensure their implementation.

·         To direct and coordinate the activities of the various departments, and

·         To maintain accounts, statutory and non-statutory books etc. of the business. 

Functions of an office

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 on the credit of the manager, if his office gives out needed information at a moment’s notice.

George R Terry says; “the act of collecting, processing, storing, and distributing information comprise functions of office.”

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 development and advances in the fields 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 decision, to keep people informed and 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 an 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. 

The functions of a modern office can be divided into the following category;

1.      Basic or routine functions.

2.      Administrative management functions or ancillary functions. 

The following are basic functions:

·         To receive or collect information.

·         To prepare a record of such information.

·         To process and arrange such information.

·         To supply ready-made information to the authorities when asked for.

·         To receive or collect information. 

The primary function of the office is to receive information from 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.

To prepare records of information

Information is usually received in the forms 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 records may be retained for many years or they may be safely kept for a few years, after which they can be destroyed. The records maintained by the office the office will be reference for further dealings.

Every business men has to keep up-to-date books of accounts which are required to record all business transactions. The books like cash-books, purchase books, sales book etc. are to be kept by the 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.

To process and arrange information:

The information received may be lengthy and the same in its original form may not be much useful to management. Therefore after collecting such information it will be processed, categorized, arranged and systematically kept for ready-made information. Certain letters will have to be converted into charts, statements etc. by doing calculations or analysis over such information. For instance, orders have to be received every day and compiled. The orders themselves will not serve any purpose to the department head because the orders may be in the form of letters. Therefore, it will be helpful to the Sales Manager, if these have been shown is a compact form, say sales weekly. This can be done through charts, statements etc. An efficient office supplies ready-made information to departments or managers who take proper decisions on the basis of such information, supplies. Therefore, a good business is the foundation of a business organization.

To supply ready-made information to 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, diagrams etc. which shows the complete pictures of one type of dealings. The processed information is ready-made information and easy to understand at a glance. Usually the office supplies information relating to estimates, statement of accounts, progress reports etc.  The information kept by the office must be complete and accurate and supplied to the authorities as and when needed, without wasting time. If the supply of information is kept in such a place where it is easily visible and available at any time, it is a great advantage. 

Administrative & Management Functions

1.      Management function - The most important administrative functions of the manager includes planning, organizing, staffing, directing, communicating, controlling and motivating. The office manager must organize the office on modern lines of efficient and effective performance. 

2.      Development of office systems and procedures - All the jobs in the offices are interrelated and interdependent. As such an office must provide better services to interrelated departments. For a smooth flow of work, development of office systems and procedures is essential. 

3.      Form designing and control - Forms are the basic tools for all types of office work. There are many operations which can be systematized with the use of printed forms. Besides the use of forms saves time and energy at every operation. Information can be collected, recorded, or processed systematically and effectively with the help of office forms. Therefore, it is the task of management to design and to control forms. 

4.      Selection and purchase of office appliances: The office manager must purchase the appropriate machines, equipment or furniture for the office. Office work required adequate equipment, machine and furniture and they must be maintained properly for the efficient working order. Office appliances must be selected properly, must be suitable for the purpose, must be simple to operate and cost and benefit must be compared when making the purchase. 

5.      Personal functions - The personal function is performed by the personnel department, assisted by the office. It recruits and select personnel and place them in different jobs in the office. For efficient performance, provision of adequate training is necessary. Staff get appropriate salary and must be properly motivated to achieve the best performance. 

6.      Controlling office costs - Office cost may be controlled by using machines in the office, using labor-saving devices and adopting improved method of management. 

7.      Maintenance of records - This is a secondary function of an office. Copies of all correspondence must be retained for reference. All records of out-going and in-coming correspondence must be maintained through proper filing system and preserve for a number of years. 

8.      Planning schemes and policy - Production is always in anticipation of demand. Therefore, for a manufacturing business, it is essential to plan the activities for future period. One cannot take a decision unless one goes to the previous records and relevant statistical data, studies the current market trends and make a decision on the basis of all available information of the past period. When a proper plan has been made, it will be adopted as a policy. Planning and policies will be if it was drawn with the help of the office through collecting and processing the information. 

9.      Safeguarding the assets - the job of the office is not only extended from the receipt of information to the supply of processed information, but to take care of various assets. To keep records of customers (debtors) and keep management informed about the doubtful debts so that necessary steps may be taken to prevent the occurrence of bad debts. Books of accounts are to be kept and updated regularly and all fixed assets must be recorded and insured against damage by fire, theft etc. Management must be informed of all types of misappropriation so that its occurrence will be prevented in the future through investigation. 

10.  Public relations - Public relations signify the relations of business organization with the general public, usually through the distribution of information. Public relations guide the business enterprise. Public relations are guided by public opinions.

To inform managers of the current status and the changes in the opinions of the public. The public can be divided into internal and external. The internal public are key policy makers, supervisory personnel, employees and shareholders. The external public are customers, suppliers and the general public.

To suggest purposeful relations with the public and to warn unfavorable reactions.

To communicate to the public the company’s policies and actions. Public interest is an essential element for any good public relations. Office is the eyes and ears of a business. It is the hands that make friends for the company. 

Factors contributing to the growth of office work

The office has tremendously grown in the modern economy. Due to the expansion of economic activities the work has increased.  The following factors have contributed to the growth of office work:

1.      The management needs proper and timely information on all aspects of business operations in order to arrive at intelligent decision making.

 

2.      When business grows, office work also grows proportionally.

3.      The work concerned with the preparation of returns to the government, financial statements, and dealings with employees etc., increase office work.

4.      With increase of service activities such as accounting, banking, advertising, marketing, insurance etc., the paper work has increased tremendously.

5.      The importance of office in relation to customers is of great significance. Office acts as the channel that links the business organization with its customers. 

Activities of a modern office

Office work differs from enterprise to enterprise. However, there are certain activities, which are performed by all offices. Some of these activities are listed below:

1.      Handling of incoming and outgoing mail.

2.      Developing Office System, procedures and methods.

3.      Maintenance of records (filing and indexing)

4.      Establishing standard at office work.

5.      Designing and procuring of office forms and stationary.

6.      Recruitment and training of office staff.

7.      Maintenance of furniture, machines, appliances.

8.      Preparation of statements, reports etc.

9.      Maintaining of accounts and other financial records.

10.  Handling telephone calls and enquiries.

11.  Preparing up to date information for the whole firm.

12.  Arranging the data in a quickly accessible form for use.

13.  Safe guarding the assets.

14.  Keeping a prompt and accurate handling of enquiries, orders etc.

15.  Maintaining efficient flow of work in the office.  

Relation of office with other departments

Large organizations are divided into various departments such as office, production, sales, finance, personnel etc. It is the office that is concerned with receiving, recording, arranging, analyzing and giving of information.

All departments depends upon the office for various information needs. The office serves as the coordinating link in any organization. For coordinating the activities of various departments in an organization, office has to keep relations with each and every department. For example, placing orders for raw material, sales, complaints, appointments etc. are passed through office only. Office needs information of many kinds from different functional departments for framing policies. Office supplies information needed in performing the functions of production, sales etc. 

Office and production department

The production department is concerned with the production of goods and services. Raw materials, machines, equipment, are needed to produce goods. They depend upon the office to get their requirements. The office purchase on behalf of the production department and also inform them of the requirements of consumers and customers. The office also provide other services to the production department such as purchases correspondence, filing, market research and the trend of the market.

Office and Sales Department.

The office always keeps relation with customers. It is the office that receives enquiries and orders. Enquiries are replied. Orders are executed by the sales department and the bill is sent through the office. The office helps with market research,

Office and purchase department.

Materials, stores, plant and machinery needed for the purchases department is arranged by the office. Office assists the department in inviting quotations or tenders, in sending orders, receiving invoices, making payments etc. It also gives general services to purchase department and maintain purchase journals, ledgers etc.

Office and accounts department. 

The accounts department maintains all the records of all business transaction and prepares various financial statements and reports for the top management. Correspondences on behalf of accounts department is conducted by the office. It renders assistance to maintain the books of accounts, budgets, salaries and wage bills, invoices and collection of debts.

Office and personal department.

The personal department is created only to provide    necessary help to the manager in performing the staffing function. Without the productive efforts of human being material resources would be meaningless and idle. Recruitment and training are routed through the office. The office maintains the records on all employees. The employees or workers can communicate with management through the office.

 

 

Importance of office.

No business concern can exist without an office. An office can be describe as the nerve Centre of the whole concern. The importance of the office is as follows:

 

Office as a service Centre - Office renders valuable services to all other departments.

Office as an information Centre or memory Centre - It collects, compile and provide information to internal and external clients.

Office as an intermediary - It connects outsiders with different departments and vice versa. All sales orders received through the office. It connects the organization with the customers, suppliers, government and the general public. It carries out public relations and creates and protect the good image of the business organization. 

Office as a coordinator.

It assists management to bring about coordination and coordinates the activities of departmental position. It provides data and coordinate the processing of information. It coordinates communication of information, it stores information and provides relevant information to assist management in Cost reduction.

·         Office an administrative nerve Centre.

·         An office is the heart of all business activities.

·         Office as control Centre.

It is the medium for translating policies into action. When the business grows, different departments come up with different jobs to be done. Each department head will have delegating power with which he takes action it takes action and decision. The management directs the business activities through its plans and policies in profitable ways and its departmental office is responsible for the function entrusted to it.   

Challenges before the office.

The office face challenges due to increased economic activities. Challenges of different kinds – social, political, economical etc. Challenges in;

 Mechanisation - office activity is becoming more and more mechanised. The challenge before the management lies in acquiring the right equipment to achieve their objective.

Growth - Owners/shareholders are no longer in direct control of the business. Top management drive the growth and expansion of the business. The growth is accompanied by adequate returns to the owners/shareholders.

Statues - various laws concerning the management are being change frequently to achieve the social and economic objectives. The problem lies within the office in running the enterprise without evading the various laws. 

Recruitment of staff

By the introduction of sophisticated machines, it is an important problem to attract better entrants and train them properly. There must be a provision of proper incentive system and promotional opportunities. 

Reduction of paper work

The office should distinguish essential and non-essential records and which records to keep and maintained and which to discard and destroy.  

 

Students are encouraged to search or read more into the topics of Office Management.

Sources:

Office Management, (Pilai)