OFFICE MANAGEMENT:
involves the design, implementation, evaluation, and maintenance of
the process of work within an office or other organization,
in order to sustain and improve efficiency and productivity.
Functions
An office manager is responsible for monitoring and reviewing systems, usually focusing on
specific outcomes such as improved timescales, turnover, output, sales, etc. They may
supervise or manage a team of administrators, allocating roles, recruiting and training, and
issuing assignments and projects. As such the role is varied, often including responsibilities
across a diverse range of functions such as:
● Business process mapping / Systems analysis
● Design of form or document templates / Report writing
● Cost accounting / Payroll / Bookkeeping
● Customer service / Sales and marketing
● Database management / Website maintenance / Records management
● Facility management / Space management
● Human resources / Recruitment
● Occupational safety and health / Security management
● Project management / Risk management
● Purchasing
OFFICE ORGANIZATION: defines how activities such as task allocation, coordination, and
supervision are directed toward the achievement of organizational aims. Organizations need
to be efficient, flexible, innovative, and caring in order to achieve sustainable competitive
advantage.
An organization can be structured in many different ways, depending on its objectives.
Structure allows the expressed allocation of responsibilities for different functions and
processes to different entities such as the branch, department, workgroup, and individual.
1. It provides the foundation on which standard operating procedures and routines rest.
2. It determines which individuals get to participate in which decision-making processes,
and thus to what extent their views shape the organization’s actions.
ORGANIZATIONAL MODELS
Flat Community Structure
just a place where people come to work without visible structure of authority and accountability.
Hierarchy-Community Phenotype Model
In the 21st century, even though most, if not all, organizations are not of a pure hierarchical
structure.
The business is no longer just a place where people come to work. For most of the
employees, the firm confers on them that sense of belonging and identity- the firm has
become their "village", their community. The firm of the 21st century is not just a hierarchy
which ensures maximum efficiency and profit; it is also the community where people belong
to and grow together, where their affective and innovative needs are met.
Pre-bureaucratic structures
Pre-bureaucratic (entrepreneurial) structures lack standardization of tasks. This structure is
most common in smaller organizations and is best used to solve simple tasks. The structure
is totally centralized. The strategic leader makes all key decisions and most communication
is done by one-on-one conversations. It is particularly useful for new (entrepreneurial)
business as it enables the founder to control growth and development.
They are usually based on traditional domination or charismatic domination in the sense of
Max Weber’s tripartite classification of authority.
Bureaucratic structures
Bureaucratic structures have many levels of management ranging from senior executives to
regional managers, all the way to department store managers. Since there are many levels,
decision-making authority has to pass through more layers than flatter organizations. A
Bureaucratic organization has rigid and tight procedures, policies and constraints.
This kind of structure is reluctant to adapt or change what they have been doing since the
company started. Organizational charts exist for every department, and everyone
understands who is in charge and what their responsibilities are for every situation.
Decisions are made through an organized bureaucratic structure; the authority is at the top
and information is then flowed from top to bottom. This causes for more rules and standards
for the company which operational process is watched with close supervision.
Some advantages for bureaucratic structure for top-level managers are they have a
tremendous control over organizational structure decisions. This work best for managers
who have a command-and-control style of managing. Strategic decision-making is also
faster because there are fewer people it has to go through to approve.
A disadvantage in bureaucratic structures is that it can discourage creativity and innovation
in the organization. This can make it hard for a company to adapt to changing conditions in
the marketplace.
Post-bureaucratic
The term of post-bureaucratic is used in two senses in the organizational literature: one
generic and one much more specific.
In the generic sense, the term post bureaucratic is often used to describe a range of ideas
developed since the 1980s that specifically contrast themselves with Weber’s ideal type
bureaucracy. This may include total quality management, culture management and matrix
management, amongst others. None of these however has left behind the core tenets of
Bureaucracy. Hierarchies still exist, authority is still rational, legal type, and the organization
is still rule bound.
Gideon Kunda, in his classic study of culture management at ‘Tech’ argued that ‘the essence
of bureaucratic control- the formalization, codification and enforcement of rules and
regulations - does not change in principle. It shifts focus from organizational structure to the
organization’s culture.
Functional structure
A functional organization structure is a structure that consists of activities such as
coordination, supervision and task allocation. The organizational structure determines how
the organization performs or operates. The organizational structure refers to how the people
in an organization are grouped and to whom they report.
One traditional way of organizing people is by function. Some common functions within an
organization include production, marketing, human resource, and accounting. This
organizing of specialization leads to operational efficiency, where employees become
specialists within their own realm of expertise.
On the other hand, the most typical problem with a functional organizational structure is that
communication within the company can be rather rigid, making the organization slow and
inflexible. Communication in organizations with functional organizational structures can be
rigid because of the standardized ways of operation and high degree of formalization.
Therefore, lateral communication between functions becomes very important, so that
information is disseminated not only vertically, but also horizontally within the organization.
As a whole, a functional organization is best suited as a producer of standardized goods and
services at large volume and low cost. Coordination and specialization of tasks are
centralized in a functional structure, which makes producing a limited amount of services
efficient and predictable. Moreover, efficiency can further be realized as functional
organizations integrate their activities vertically so that produces quickly at low cost.
Divisional Structure
The divisional structure or production structure consists of self-contained divisions. A
division is a collection of functions which produce a product. It also utilizes a plan to
compete and operate as a separate business or profit center.
The advantage of divisional structure is that it uses delegated authority so the performance
can be directly measured with each group. This results in managers performing better and
high employee morale. Another advantage of using divisional structure is that it is more
efficient in coordinating work between different divisions, and there is more flexibility to
respond when there is a change in the market. Also, a company will have a simpler process
if they need to change the size of the business by either adding or removing divisions.
When divisional structure is utilized more process specialization can occur within the groups.
When using divisional structures that are organized by either skills or geographic areas, they
generally have similar functions and are located in different locations or projects. This
allows business decisions and activities coordinated locally.
The disadvantages of the divisional structure is that it can support unhealthy rivalries among
divisions. This type of structure may increase costs by requiring more qualified managers for
each division. Also, there is usually an over-emphasis on divisional more than organizational
goals which results in duplication of resources and efforts like staff services, facilities, and
personnel.
Matrix structure
The matrix structure groups employees by both function and production simultaneously. A
matrix organization frequently uses teams of employees to accomplish work, in order to take
advantage of the strengths, as well as make up for the weaknesses, of functional and
decentralized forms.
An example would be a company that produces two projects, "project a" and "product b".
Using the matrix structure, this company would organize functions within the company as
follows: "project a" supervisory department, "project a" customer service department,
"project a" accounting; then "project b" supervisory department, "project b" customer service
department, "projectt b" accounting department.
• Weak/Functional Matrix: A project manager with only limited authority is assigned to
oversee the cross-functional aspects of the project. The functional managers maintain
control over their resources and project areas.
• Balanced/Functional Matrix: A project manager is assigned to oversee the project.
Power is shared equally between the project manager and the functional managers. It
brings the best aspects of functional and projectized organizations. However, this is
the most difficult system to maintain as the sharing of power is a delicate proposition.
• Strong/Project Matrix: A project manager is primarily responsible for the project.
Functional managers provide technical expertise and assign resources as needed.
There are both advantages and disadvantages of the matrix structure; some of the
disadvantages are an increase in the complexity of the chain of command. This occurs
because of the differentiation between functional managers and project managers, which can
be confusing for employees to understand who is next in the chain of command. An additional
disadvantage of the matrix structure is a higher manager to worker ratio that results in
conflicting loyalties of employees.
However, the matrix structure also has significant advantages that make it valuable for
companies to use. The matrix structure may improve upon the "silo" critique of functional
management in that it aims to diminishes the vertical structure of functional and create a
more horizontal structure which allows the spread of information across task boundaries to
happen much quicker. It aims to allow specialization to increase depth of knowledge &
allows individuals to be chosen according to project needs.
Wirearchy Circle
The flat structure is common in small companies (entrepreneurial start-ups, university spin
offs). As companies grow, they tend to become more complex and hierarchical, which leads
to an expanded structure, with more levels and departments.
With the growth of the internet, and the associated access that gives all levels of an
organization to information and communication via digital means, power structures have
begun to align more as a wirearchy, enabling the flow of power and authority to be based not
on hierarchical levels, but on information, trust, credibility, and a focus on results.
In general, over the last decade, it has become increasingly clear that through the forces of
globalization, competition and more demanding customers, the structure of many companies
has become flatter, less hierarchical, more fluid and even virtual.
Team
One of the newest organizational structures developed in the 20th century is team and the
related concept of team development or team building. In small businesses, the team
structure can define the entire organization.
Teams can be both horizontal and vertical. While an organization is constituted as a set of
people who synergize individual competencies to achieve newer dimensions, the quality of
organizational structure revolves around the competencies of teams in totality.
Every project have a focused strategy, equating to an autonomous teams composed of an
average of 10 self-managed teams, while team leaders in each project and each firm are
also a team.
Larger bureaucratic organizations can benefit from the flexibility of teams as well. Xerox,
Motorola, and DaimlerChrysler are all among the companies that actively use teams to
perform tasks.
Business Process Outsourcing Network
Another modern structure is network. While business giants risk becoming too clumsy to
proact (such as), act and react efficiently, the new network organizations contract out any
business function, that can be done better or more cheaply. In essence managers in network
structures spend most of their time coordinating and controlling external relations, usually by
electronic means. Not owning any visible office, you can be more flexible than many other
service providers, which aligns with its low-cost strategy. The potential management
opportunities offered by recent advances in complex networks theory have been
demonstrated including applications to project design and development, and innovation in
shop drawings detailing.
Virtual
Virtual organization is defined as being closely coupled upstream with its suppliers and
downstream with its customers such that where one begins and the other ends means little
to those who manage the business processes within the entire organization. A special form
of boundaryless organization is virtual. The virtual organization as not physically existing as
such, but enabled by software to exist. The virtual organization exists within a network of
alliances, using the internet.
This means while the core of the organization can be small but still the company can
operate globally be a market leader in its niche. Accordingly, because of the unlimited shelf
space of the Web, the cost of reaching niche projects is falling dramatically. Although none
provides in huge numbers, there are so many niche services that collectively make a
significant profit, and that is what made highly innovative.
FORMS AND RECORDS MANAGEMENT
Records Management Theory
Records life-cycle
The records life-cycle consists of discrete phases covering the life span of a record from its
creation to its final disposition.
In the creation phase records growth is expounded by modern electronic systems. Records
will continue to be created and captured by the organization at an explosive rate as it
conducts the business of the organization. Correspondence regarding a project is written for
internal leadership, financial statements and reports are generated for public and regulatory
scrutiny - including color scheme and approved corporate font - takes its place in the
organization's history.
Examples of records phases include those for:
▪ creation of a record,
▪ modification of a record,
▪ movement of a record through its different states while in existence,
▪ and destruction of a record.
Throughout' the records life cycle, issues such as security, privacy, disaster recovery,
emerging technologies, and mergers are addressed by the records and information
management professional responsible for organizational programs.
Records and information management professionals are instrumental in controlling and
safeguarding the information assets of the entity. They understand how to manage the
creation, access, distribution, storage, and disposition of records and information in an
efficient and cost-effective manner using records and information management
methodology, principles, and best practices in compliance with records and information laws
and regulations.
Records continuum theory
The records continuum theory is an abstract conceptual model that helps to understand and
explore recordkeeping activities in relation to multiple contexts over space and time.
Records management practices and concepts
Section 4 of the ISO 15489-1:2001 states that records management includes:
• Setting policies and standards
• Assigning responsibilities and authorities
• Establishing and promulgating procedures and guidelines
• Providing a range of services relating to the management and use of records
• Designing, implementing and administering specialized systems for managing records
• Integrating records management into business systems and processes
Thus, the practice of records management may involve:
• planning the information needs of an organization
• identifying information requiring capture
• creating, approving, and enforcing policies and practices regarding records, including
their organization and disposal
• developing a records storage plan, which includes the short and long-term housing of
physical records and digital information
• identifying, classifying, and storing records
• coordinating access to records internally and outside of the organization, balancing
the requirements of business confidentiality, data privacy, and public access
• identification and maintenance of records per a specified retention period
• executing a retention policy on the disposal of records which are no longer required
for operational reasons; according to organizational policies, statutory requirements,
and other regulations this may involve either their destruction or permanent
preservation in an archive
Records-management principles and automated records-management systems aid in the
capture, classification, and ongoing management of records throughout their lifecycle. Such
a system may be paper-based (such as index cards as used in a library), or may involve a
computer system, such as an electronic records-management application.
Defensible Solutions
A defensible solution is one that can be supported with clearly documented policies,
processes and procedures that drive how and why work is performed, as well as one that has
clearly documented proof of behavior patterns, proving that an organization follows such
documented constraints to the best of their ability
While defensibility applies to all aspects of records life cycle, it is considered most important
in the context of records destruction, where it is known as "defensible disposition" or
"defensible destruction," and helps an organization explicitly justify and prove things like who
destroys records, why they destroy them, how they destroy them, when they destroy them,
and where they destroy them.
Classification
Records managers use classification or categorization of record types as a means of working
with records. Such classifications assist in functions such as creation, organization, storage,
retrieval, movement, and destruction of records.
At the highest level of classification are physical versus electronic records. (This is disputable;
records are defined as such regardless of media. ISO 15489 and other best practices
promulgate a functions based, rather than media based classification, because the law
defines records as certain kinds of information regardless of media.)
Physical records are those records, such as paper, that can be touched and which take up
physical space.
Electronic records, also often referred to as digital records, are those records that are
generated with and used by information technology devices.
Classification of records is achieved through the design, maintenance, and application,
which allow records managers to perform functions such as the categorization, tagging,
segmenting, or grouping of records according to various traits.
Enterprise records represent those records that are common to most enterprises, regardless of their
function, purpose, or sector. Such records often revolve around the day-to-day operations of an
enterprise and cover areas such as but not limited litigation, employee management, consultant or
contractor management, customer engagements, purchases, sales, and contracts.
The types of enterprises that produce and work with such records include but are not limited
to for- profit companies, non-profit companies, and government agencies.
Industry records represent those records that are common and apply only to a specific industry or
set of industries. Examples include but are not limited to medical industry records, methology
records, and materials records.
Legal hold records are those records that are mandated, usually by legal counsel or compliance
personnel, to be held for a period of time, either by a government or by an enterprise, and for the
purposes of addressing potential issues associated with compliance audits and litigation. Such
records are assigned Legal Hold traits that are in addition to classifications which are as a result of
enterprise or industry classifications.
Legal hold data traits may include but are not limited to things such as legal hold flags, the
organization driving the legal hold, have descriptions of why records must be legally held,
what period of time records must be held for, and the hold location – as to performance and
termination of obligations.
Records retention schedule is a document, often developed using Archival appraisal concepts and
analysis of business and legal contexts within the intended jurisdictions, that outlines how long
certain types of records need to be retained for before they can be destroyed.
Managing physical records
Identifying records
If an item is presented as a legal record, it needs to be authenticated. Forensic experts may
need to examine a document or artifact to determine that it is not a forgery, and that any
damage, alteration, or missing content is documented. In extreme cases, items may be
subjected to a microscope, x- ray, radiocarbon dating or chemical analysis. This level of
authentication is rare, but requires that special care be taken in the creation and retention of
the records of an organization.
Storing records
Records must be stored in such a way that they are accessible and safeguarded against
environmental damage. A typical paper document may be stored in a filing cabinet in an
office. However, some organizations employ file rooms with specialized environmental
controls including temperature and humidity. Vital records may need to be stored in a
disaster-resistant safe or vault to protect against fire, flood, earthquakes and conflict. In
extreme cases, the item may require both disaster-proofing and public access.
The file room can effectively withstand the weight of shelves and file cabinets filled with
paper; historically, some military vessels were designed to take into account the weight of
their operating procedures on paper as part of their ballast equation (modern record-
keeping technologies have transferred much of that information to electronic storage). In
addition to on-site storage of records, many organizations operate their own off-site records
centers or contract with commercial records centres.
Retrieval of records
In addition to being able to store records, enterprises must also establish the proper
capabilities for retrieval of records, in the event they are needed for a purpose such as an
audit or litigation, or for the case of destruction. Record retrieval capabilities become complex,
when dealing with electronic records, especially when they have not been adequately tagged
or classified for discovery.
Circulating records
Tracking the record while it is away from the normal storage area is referred to as circulation.
Often this is handled by simple written recording procedures. However, many modern records
environments use a computerized system involving bar code scanners, or radio-frequency
identification technology (RFID) to track movement of the records. These can also be used
for periodic auditing to identify unauthorized movement of the record.
Disposal of records
Disposal of records does not always mean destruction. It can also include transfer to a
historical archive, museum, or private individual. Destruction of records ought to be
authorized by law, statute, regulation, or operating procedure, and the records should be
disposed of with care to avoid inadvertent disclosure of information. The process needs to be
well-documented, starting with a records retention schedule and policies and procedures that
have been approved at the highest level. An inventory of the records disposed of should be
maintained, including certification that they have been destroyed. Records should never
simply be discarded as refuse. Most organizations use processes including pulverization,
paper shredding or incineration.
Commercially available storages can manage records through all processes active, inactive,
archival, retention scheduling and disposal. Some also utilize RFID technology for the
tracking of the physical file.
Managing digital records
The general principles of records management apply to records in any format. It is more
difficult to ensure that the content, context and structure of records is preserved and protected
when the records do not have a physical existence. This has important implications for the
authenticity, reliability, and trustworthiness of records.
Commercial records centers
Commercial records centers are facilities which provide services for the storage for paper
records for organizations. In some cases, they also offer storage for records maintained in
electronic formats. Commercial records centers provide high density storage for paper
records and some offer climate controlled storage for sensitive non-paper and critical (vital)
paper media.
Personnel Management
Personnel management is defined as an administrative specialization that focuses on hiring
and developing employees to become more valuable to the company. It is sometimes
considered to be a sub-category of human resources that only focuses on administration.
Personnel Management Areas
▪ Recruitment, screening and new employee orientation and training.
▪ It involves wages, dispute resolution and personnel record keeping duties.
▪ Job analyses, strategic personnel planning, performance appraisals, benefit coordination.
Personnel Outsourcing
When business hire companies to manage personnel functions. That includes the
administration of health benefits plans, retirement plans, and workers’ compensation
insurance. It also includes hiring, training, and legal expertise.
Advantages
To small businesses, hey can offer a wider range of these following benefits.
▪ Health insurance options. These include Health Maintenance Organizations,
Preferred Provider Organization, and Health Savings Accounts.
▪ Dental, vision, and health insurance plans.
▪ 401(k), retirement plans and credit unions.
▪ Voluntary benefits, such as cancer, travel, and long-term disability plans.
Disadvantage
▪ The most significant drawback is poor internal communication.
▪ Retard organizational learning.
▪ Employees may start to mistrust management. Other departments may wonder if they, too, will
be outsourced.
Office Systems and Procedure
OBJECTIVES OF SYSTEMS AND PROCEDURES
Office Management - To bring efficiency in the utilization of the organizational resources
Designing an Efficient Office System
▪ Determination of objectives and forms of office services. Values and Limitations of Management
Systems
▪ Focus upon end results.
▪ Characteristics of a Well-Designed System
▪ Effectiveness
A Special Role of Procedures
▪ A well-designed procedure serves as:
▪ To control operating costs
▪ To improve operating efficiency
▪ To help achieve the objectives of the organization
▪ Study and analysis of various office services.
▪ Development of simple procedures and methods.
▪ Simplification and improvement in procedures.
▪ Development of the system.
▪
Steps of Procedural Mapping
1) Plan of action that is purposeful, orderly and efficient
2) Coordination of specialized activities
3) Basis for control.
4) Efficiency
▪ Dependability
▪ Flexibility
▪ Simplicity
▪ Acceptability
5) A standing plan of work
▪ A means of coordinating effort
▪ A tool of communication
▪
System Design Requirements - A well-designed system, must be:
▪ Practical
▪ Economical
▪ Efficient
▪ Flexible
▪ Reliable
▪ Secure
▪ Flow Chart
▪ Flow of Work
▪ Office Layout Chart
▪ Flow Process Chart
Management Type Flow Chart
Step 1: Process Selection
Step 2: Overall Analysis
Step 3: Master Development Plan Step 4: System Analysis
Step 5: System Design
Step 6: Programming Analysis
Step 7: Program Preparation
Step 8: Systems Implementation
Step 9: System Maintenance and Review
Planning Security
▪ Forming Committee
▪ Seeking information and opinions
▪ Formulating security plan or system
▪ Circulating the plan or system
▪ Formulating the system
▪ Communicating the system
▪ Recruiting employees
PHASES OF A BUDGET CYCLE
Preparing the Budget
The first step of the budget process is to actually generate the budget. Done right, this process starts
with careful thought at the ground level as to what is needed and what new initiatives can be started. At
the same time, your leadership and vision offers some guidance as to what should be included or
excluded in the final budget. When preparing your small business budget, consider your expected
revenues; expenses for employee wages, operations and materials; and costs for any improvements
you plan to make to your company.
Approving the Budget
While the political budgeting process is a bit messy, one of its underlying principles is very meaningful for
your business. Budgets aren't approved on a yes or no basis. Instead, they're the subject of further
debate. While, at times, the political process can distort budgetary priorities, businesses don't have to
fall prey to that problem. Instead, the approval process can be an opportunity for you to take another
view of how your company is spending its funds.
Executing the Budget
Once a budget is passed, it isn't done. Business owners like you can impound funds to prevent money
from being wastefully spent. On the other hand, others in your business can request reprogramming to
give them additional funds if a need arises. Most of the time, though, the money gets spent in
accordance with the budget. A good budget isn't a limitation on what your company can spend. It's a
financial embodiment of your company's strategy and tactics for the year.
Evaluating the Budget
While the audit and evaluation process was once focused on ensuring that money was being spent in
accordance with the law and in a non-corrupt fashion, this phase of the budget has grown in scope.
Now, auditing and evaluating also focuses on how effectively the money is being spent. It's not enough
to see who used their money and who didn't. What really matters in government and in business is
where the money generated a return.
BUDGET CYCLE PREPARATION
Many organizations prepare budgets that they use as a method of comparison when evaluating their
actual results over the next year. The process of preparing a budget should be highly regimented and
follow a set schedule, so that the completed budget is ready for use by the beginning of the next fiscal
year. Here are the basic steps to follow when preparing a budget:
1) Update budget assumptions. Review the assumptions about the company's business environment
that were used as the basis for the last budget, and update as necessary.
2) Review bottlenecks. Determine the capacity level of the primary bottleneck that is constraining)
the company from generating further sales, and define how this will impact any additional
company revenue growth.
3) Available funding. Determine the most likely amount of funding that will be available during the
budget period, which may limit growth plans.
4) Step costing points. Determine whether any step costs will be incurred during the likely range of
business activity in the upcoming budget period, and define the amount of these costs and at
what activity levels they will be incurred.
5) Create a budget package. Copy forward the basic budgeting instructions from the instruction
packet used in the preceding year. Update it by including the year- to-date actual expenses
incurred in the current year, and also annualize this information for the full current year. Add a
commentary to the packet, stating step costing information, bottlenecks, and expected funding
limitations for the upcoming budget year.
6) Issue budget package. Issue the budget package personally, where possible, and answer any
questions from recipients. Also state the due date for the first draft of the budget package.
7) Obtain revenue forecast. Obtain the revenue forecast from the sales manager, validate it with
the CEO, and then distribute it to the other department managers. They use the revenue
information as the basis for developing their own budgets.
8) Obtain department budgets. Obtain the budgets from all departments, check for errors, and
compare to the bottleneck, funding, and step costing constraints. Adjust the budgets as
necessary.
9) Obtain capital budget requests. Validate all capital budget requests and forward them to the
senior management team with comments and recommendations.
10) Update the budget model. Input all budget information into the master budget model.
11) Review the budget. Meet with the senior management team to review the budget. Highlight
possible constraint issues, and any limitations caused by funding problems. Note all comments
made by the management team, and forward this information back to the budget originators,
with requests to modify their budgets.
12) Process budget iterations. Track outstanding budget change requests, and update the budget
model with new iterations as they arrive.
13) Issue the budget. Create a bound version of the budget and distribute it to all authorized
recipients.
14) Load the budget. Load the budget information into the financial software, so that you can
generate budget versus actual reports.
