Topic 2 Office Management

Introduction

·         Functions of Management.

·         Scientific Office Management.

·         Departmentation.

·         Office Manager.

·         Organization.

·         Office Organization. 

Management means to control or to administer..

Office Management means the method of controlling an office to enable it achieve its objective. In modern society, all kinds of business are performed by a group of knowledgeable people working for a common goal and is guided and control by a leader or authority. Management is a technique of leadership or control to achieve an objective through the efforts of other people. The office must be organized in a such a way to achieve the objective of the business. 

Sheldon summarizes administration, management and organization in them in the following words;

·         “Administration is a control of function in industry concerned in the determination of the corporate policy, the coordination of finance, production and distribution, the settlement of the compass of the organization and the ultimate control of the executive”. 

·         “Management proper is the function in industry concerned in the execution of policy, within the limits set up by the administration and the employment of the organization for the particular objects set before it”. 

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

·         “Organization is the formation of an effective ‘machine; management of an effective executive; administration of an effective direction. Administration determines the organization; management uses it. Administration defines the goal; management strives towards it. Organization is the machine of management in its achievement of the ends determined by administration.” 

·         Thus “ Determination of policy and coordination (Administration), the execution of policy and employment of organization (Management) and the combination of the work of individuals or groups with the faculties necessary for its execution (Organization)”. 

·         According to the Schulze, “Administration is the force which lays down the object for which an organization and its management are to strive and the broad policies under which they are to operate. 

·         According to Milward, “Administration is primarily the process and the agency used to established the object or purpose which an undertaking and its staff are to achieve; secondarily, administration has to plan and to establish the broad lines or principles which will govern action. The broad lines are in their turn usually called policies. Management is the process and the agency through which the executions of policy is planned and supervise. Organization is the process of dividing work into convenient tasks or duties, of grouping such duties in the form of posts, of delegating authorities to each post and appointing qualified staff to be responsible that the work is carried out as planned”. 

Functions of Management

There is no universally accepted classification of management functions because different authors, who were considering different organizations, gave separate classification of management functions. Office management is similar to the general or administrative management, it performs the same functions. The functions of office management are:

Planning:

·         is fundamental.

·         Is the determination of a course of action to achieve a desired result.

·         Concentrates on setting and achieving objectives.

·         is an intellectual process.

·         is the process of thinking before doing.

·         precedes all other managerial functions.

·         deciding in advance what is to be done.

·         involves projecting the future course of action for the business.

·         is essentially choosing, depends upon the availability of alternatives.  

  

Benefits of planning

1.      The business objectives can easily be secured through plans.

2.      Planning gives direction to planning in the office.

3.      It focuses attention on objectives.

4.      It provides coordinated efforts and reduces risks and uncertainties.

5.      It facilitates the process of decision making.

6.      It encourages innovation and creativity.

7.      It serves as a basis for control.

8.      It encourages the sense of involvement and team spirit.

9.      It helps in economical operations.      

 Organizing;

1.      Brings together the human and material resources for the achievement of certain objectives.

2.      Is the foundation upon which the whole structure of management is built.

3.      Is determining, grouping and arranging activities necessary for achieving the objectives.

4.      assigning of people to these activities.

5.      providing suitable environmental situation.

6.      Indicating the relative authority delegated for the execution of the activity. 

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

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

Steps of organizing:

1.      Identification of activities.

2.      Grouping of activities.

3.      Assignment of duties.

4.      Fitting individuals.

5.      Delegation of authority.

 

Staffing

Is concerned with recruitment, selection,placement and training and development.

According to Franklin Moore, “Staffing is a forward looking activity because tomorrow keeps becoming today. Attrition constantly reduces executive ranks through retirement, death, resignation and occasional dismissal; so young men keep moving up. Besides this, most enterprise grows, providing new openings for managers.”  Staffing is now in a new a function of Personnel Management which is currently Human Resource Management.

Directing

Is the managerial function of guiding, inspiring, instructing and harnessing people towards the accomplishment of desired results.

is the process which actuates the members of an organization to work efficiently and effectively for achievement of desired goals.

According to Koentz and Q’donnel, “the interpersonal aspect of managing by which subordinates are led to understand and contribute effectively and efficiently to the attainment of enterprise objective.”

According to Haimann, Directing consists of the process and techniques utilized in issuing instructions and making certain that operations are carried on as originally planned. Directing is the process around which all good performance revolves. It is the essence of operation and coordination is a necessary by-product of good managerial directing.

Directing consists of the following steps;

Issuing orders and instructions to subordinates

·         Guiding and teaching the subordinates the proper method of doing work.

·         Supervising the work of subordinates to ensure that it conforms to plan.

·         Motivation of subordinates by providing incentives. 

Motivating

The term motivation derived from the word motive which means anything that initiates or sustains activity. It is an inner state that energizes activates or move and that directs or channels behaviour towards goals. Motive is a psychological force within an individual that sets him in motion. Behind every human action, there is a motive.

According to Brech, “ Motivation is a general inspirational which gets the members of the team to pull their weight effectively, to give their loyalty to the group, to carry out properly the tasks that they have accepted and generally to play an active part in the job that the group has undertaken.”

Motivating is achieved by;

·         Providing inducements and incentives to employees;

·         Keeping morals high;

·         Satisfying the need of the employees.

 

Co-coordinating

Along with specialization there must be conscious efforts on the part of the management to ensure that all activities, carried out by experts and different departments, should contribute to the achievements of the objective of the business. Smooth working of an enterprise and the definite achievements of its objectives depends on sound coordination. According to Lundy, “ Co-ordination involves the development of unity of purpose and the harmonious implementation of plans for the achievement of the desired ends.” 

According to Mooney and Relley, “Orderly arrangement of group efforts to provide unit of action in pursuit of a common purpose.” Coordination may be achieved by:

·         Simplified organization.

·         Harmonized program and policies.

·         Well-designed method of communication.

·         Voluntary cooperation.

·         Coordination through cooperation.

·         Clear-cut objectives.

·         Clear definition of authority and responsibility.

·         Effective leadership.

 Controlling

·         is to determine what is being accomplish.

·         to evaluate performance.

·         to apply corrective measures so that   performance takes place according to plan.

In the words of Anthony, “Management control is the process by which managers assure that resources are obtained and used effectively and efficiently in the accomplishment of an organization’s objectives.” 

Basic elements of control process;

·         Establishment of standards or objectives.

·         Measurement of actual performance.

·         Comparing actual performance against the standard set.

·         Determining the reason for deviation.

·         Taking corrective action.

·         Feedback. 

Communication

Linked different persons together in a group or organization to attain a common goal is essential for effective control and motivation.

Two main objectives of communication are to inform and to persuade. Communication is a means by which behaviour is modified, change is effected, and goals are achieved.

Scientific Management

The application of the scientific method for the solution of the problems of management. Scientific approach is used in meeting problems of all types instead of depending on traditions.

According to Fredrick William Taylor, the father of Scientific Movement, “the scientific management means knowing exactly what you want men to do and seeing that they do it in the best and cheapest way.” Looks, considers and evaluates customs and traditions, personal intuition and experience and inductive deductive thinking.

Techniques of Scientific Management involve the following steps;

Setting up of standard tasks through scientific investigation and research (time motion and method of studies). Analysis of operations to evolve the best method of doing the standard tasks;

·         Scientific selection of personnel and their training in the method involved.

·         Standardization of material, equipment and working environment for workers

·         Introduction of specialization in the administrative and organization set up

·         Improvement of worker-management relations through good faith, better understanding and better incentive wage plan.

The principals and techniques of scientific management are equally applicable to office management and leads to increased productivity of labour. Eliminate waste, whether materials or men.

Elements of Management

Purpose: The office manager must be fully aware of the aims and objectives of the organization in order to make correct decisions and provide direction to the office activities.

Environment: The office environment, both physical and external factors such as laws and customs of the community within which the firm operates depends upon the perfect understanding of the environment.

Personnel: The office manager must select suitable personnel and place them in the appropriate jobs, train them and provide sufficient incentives to motivate them.

Means:  Is a tool, includes materials, methods, machines and equipments  used by office employees  to effectively The office manager must know how to use these means  in the best efficient and effective way.

Departmentation.

Is the process used to group business activities into units for the purpose of efficient administration.  The process consists of;

·         Dividing and grouping the work to be done.

·         Assigning different duties and responsibilities to people.

The total activities are grouped into a number of functional departments each entrusted with a particular type of business activity such as production, financing and accounting. A section is a group of workers under one supervisor.   

Basis of Departmentation

Depends upon the size and nature of the business such as follows:

Product basis: a firm produces a large number of products and volume of business done in each product  is sufficiently large, it is formed on the basis of product. For example, a firm dealing with paints, chemical, plastic and fertilizer may have four departments each dealing with one product.

Geographical basis: When an organization is large and geographically dispersed.

Functional basis: Most business enterprise prefer to segregate according to the functions such as production, marketing and purchasing.

Customer basis: Activities are grouped according the type of customers for example a clothing company.

Process or equipment base: Manufacturing activities are subdivided on the basis of their process production such as designing, spinning, weaving, dyeing etc.

Advantages of Departmentation

·         An organization can avail benefits of specialization.

·         The efficiency of management increases.

·         It is easy to fix accountability for results.

·         Better control is facilitated.

·         It is easy to fix responsibility on workers.

·         It facilitates coordination.

The main purpose of the office is to provide efficient clerical to the functional departments and the top management. 

Office manager

The job of an office manager is to control the activities of the office.

The Manager plans, organizes, directs and controls the activities of his subordinates in the organization. He brings the human resource or human talents of a firm into combination physical resources such as money, materials and machines. He manages the office using the available resources allocated efficiently and effectively.

Qualities of a Manager

In addition to general education, he must have undergone management training. There is no hard and fast rule as to the minimum qualifications to be possessed. The qualifications are based on the job he does.

·         He must have a good command of the language.

·         He must be a good organizer.

·         He must have an ability to teach others.

·         He must be tactful and skillful in his dealings.

·         He must be sincere to do his duties.

·         He must be a good leader. He must be able to create team spirit.

·         He must have ability to delegate the job and work to his staff according to the abilities of the workers.

·         He must be calm and confident in all situations. He should have self-control . He should not be irritable.

He must be constantly in touch with the new facts and methods to increase the efficiency.

Functions of an Office Manager

Leadership: has complete control over work done in the office. Coordination: select right people for right jobs.

·         ensure that policies are implemented.

·         connecting link between top management and workers.

·         safe guard the firm.

·         primary duty to management, secondary duty to workers.

·         Recruitment of staff: select right people for right jobs through applications, interviews and selections.

·         Training of staff: provides training to their skills in the latest techniques of management.

·         Motivation: measures performance of staff and offer rewards to increase efficiency and ensure better cooperation.

·         Discipline: Rules and principles must be followed and discipline depends upon the office manager.

·         Accounting: he has to keep a close touch with accounts and costing.

·         Control Stationery: He has to safeguard furniture, equipment and machines and maintain records of the assets.

·         Secretarial services: Maintains statutory and accounts books, holds meetings etc.

·         Organizer and supervisor: He organizes and supervises the office and must be tactful.

Some drawbacks of Office Manager

·         Do not delegate proper authority due to fear of losing power.

·         If the office manager delegates all power to his subordinates they may think that they are overburdened while he is resting in his chair.

·         The Manager will look for results if the office work is delegated. The result will not be good unless the work is simplified and made easy to execute.

·         If he is not punctual to towards his duties, his subordinates will follow him.

·         If any employee – subordinate comes to him with grievances, he has to hear them politely and suggest suitable remedies. 

Status of Office Manager

The executive who is put in charge of the management of the office is known as Office Manager.

·         He performs the managerial functions of planning, organizing, directing and control.

·         He should be innovating, introducing new tasks.

  

According to Neuner and Keeling, “Today’s office executives drive the nerve Centre of their companies. With knowledge on technological development, office systems and procedures and human relations, they greatly influence the growth or progress of their firms, to reflect their new status of office responsibilities, new titles have come upon the scene: no longer is it possible to categories all executives by title of office manager. Today among other titles, office executives may be known as controller, director of finance and services, manager of office services, treasurer, systems and procedures manager, director, operations manager and administrative manager.”

ORGANISATION

Organization means a form of human association for the attainment of common objectives.

·         Is expected to facilitate better relationship among people, work and resources.

·         Better organization brings about better results and poor organization fails to get the desired results.

·         According to Sheldon, “Organization is the process of so combining the work which individuals or groups have to perform wiwith facilities necessary for its execution, that the duties so performed provide the best channels for efficient, systematic, positive and coordinated application of available effort.”

 OFFICE ORGANISATION

An office organization involves the divisions of office activities into certain departments as well as persons. The office manager defines and assigns the activities, so that they can be most effectively executed. It means the determination and assignments of duties to the workers, and also the establishment and the maintenance of authoritative relationship among these grouped activities. Each department works in coordination with other department. Organization is the backbone of the management.

As the size of the office expands, it becomes necessary to organize it in order to attain a certain aim. The work of a concern is divided into many departments and interrelated departments are placed in order of flow of work.

A proper management of departments along with office appliances will facilitate performance of office work.  The principles involved in the office organization are based on organized routine procedures, continuous flow of work and allocation of sub departments. 

A large business may be divided according to size and may have the following departments;

1.      Accounts Department

2.      Cash Department

3.      Correspondence Department 

4.      Purchase Department

5.      Sales Department

6.      Advertising Department

7.      Filing Records

8.      Credit Department

9.      Personnel Department

In practice, the principal of division of labour to an office organization means the division of office work into as many departments as necessary and each department is made responsible to increase the sales.

The purchase department is responsible for good purchases and is answerable if bad qualities of goods are purchased. A person who deals in one item continuously becomes an expert and specialist. Through him better and quicker results is possible for management.  

Source:

Office Management by Pilai, R.S.N, Bagavathi. S.Chand & Company Ltd. Ram Nagar, New Delhi-110055, 2003.