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CHAPTER 10

OFFICE MANAGEMENT
 Concept of an Office
 Function of an Office
 Importance of Office
 Concept of Office Management
 Importance of Office Management
 Office Accommodation and Layout

CONCEPT OF AN OFFICE
Office is an important place of the organization where different functions are performed to achieve the objectives of
the organization. It is the integral part of any business. If business starts to be rigid and complex, office helps by
simplifying the activities and promotes the expansion of business. It is set up to handle the information and daily
transactions in s systematic way. The dictionary meaning of an office is a place where business is carried on.

The definition of office can be interpreted in two ways. They are traditional and modern viewpoint.

In traditional view, office is defined as the place where clerical functions like receiving, recording, processing and
supplying information are performed.

In modern view, it is defined as the part of organization which involves in performing all management as well as
administrative functions such as planning, policy making, organizational activities, coordination and communicating
in order to achieve the objectives of the organization.

According to J. C. Denyer, “an office is any place where clerical operations are carried on”. This view considers
office as a particular place, so it is the narrow concept of office.

J. Stephenson defines an office as “that part of a business enterprise which is devoted to the direction and
coordination of its various activities”. This definition reflects that managerial functions are carried out in an office.

In conclusion, office can be compared with the brain of an organization where information are collected, processed,
stored and distributed.

FUNCTIONS OF AN OFFICE
Office is the focal point of an organization where various activities are carried on. The function of an office can be
classified under two headings:
1. Primary/Basic/Routine Functions
2. Secondary/Auxiliary/Administrative Management Functions

1. Primary/Basic/Routine Functions
The function relating to manipulation of the information is known as routine/primary function. It concerns with
receiving, processing, storing and distributing the information. Such functions are essential for the survival of an
office. These functions are explained as below:

i. Receiving Information
Receiving different types of information from the different types of sources is the primary function of an
office. The information is received from two sources. They are internal and external. Letters, invoices,
circulars, notices, memos are the internal sources and supplier, customers, government, banks are the external
sources.
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ii. Recording Information
The messages received from various sources are converted into written form or tape or CDs for future
reference. Such past information is necessary at the time of managerial decisions.
iii. Arranging Information
After the information is recorded, it is grouped and arranged according to its nature and importance. The
office processes them through tables, graphics and various statistical tools. After the information is
processed, is becomes ready to be used by management.
iv. Distributing Information
The office supplies information to the management, different departments and outsiders who ever need it.
Various means and devices can be used while distributing the information such as telephone, fax, letters etc.
v. Retention of Records
Retention is defined as the preservation of records for future reference. It involves collection, preservation,
classification and protection of records for future reference. It is maintained in files, computers etc. Every
record has a life span. It is protected according to its importance. Retention of record depends upon nature of
organization. The efficiency of office depends upon the way records are retained.
vi. Maintaining Public Relation
An office maintains good relations with different stakeholders through personal contacts or correspondence
on a regular basis. These stakeholders are consumers, suppliers, government agencies, co-organizations and
community people.

2. Secondary/Auxiliary/Administrative Management Functions


Under this heading an office safe guards assets and properties of organization. It establishes a procedural system,
controls personnel and controls office materials and supplies. Managerial functions of an office are further classified
as under:

i. Management Process
To make any business successful there must be good management. Office helps in effective management. It
includes planning, organizing, staffing, directing and controlling. It helps in smooth functioning of the
organization.
ii. Public Relations
There must be good public relation of the organization. The main purpose of public relation is to make the
organization look trust worthy to all people who deal with it in all its action.
iii. Development of Office System and Procedure
Every office develops a definite office system and a fixed routine. It helps in smooth flow of office work. The
system is also known as procedure of office work.
iv. Safe Guarding the Assets
All assets, movable and immovable, documents and office records must be guarded and protected. They can
protest these assets through insurance policies, locker etc.
v. Form Designing and Control
An office designs, develops and prepares many types of form needed for office management. It helps to get
maximum benefits. These office forms are important tools for collection and storage of information.
vi. Purchasing Stationery and Supplies
Office stationery and supplies are essential for doing work. It helps in increasing the efficiency and
improving quality of works done. Office should pay attention in purchasing right type of stationery and
supplies
vii. Purchasing Office Furniture and Machine
Office requires various types of office furniture and machine for efficient performance. The quantity, quality,
consistency and completeness of work basically depend upon the ability and quality if assets like office
furniture and machine.

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viii. Personnel Functions
Office is also related to recruiting, training, placing, promoting the employees. Employees help in the success
of the organization.

IMPORTANCE OF AN OFFICE
The office serves as the center for whole organization, no organization can exist in the absence of office. The
importance of office can be further explained as under:

1. Proof of Existence
An office serves as a standing proof of the existence of an organization. People know an organization being
alive and functioning through its office. Thus it serves as a face of the business concern.
2. Information Center
An office is an information center which provides information relating to business transactions. Such
information is very useful. It is used by management for the purpose of planning, organizing, staffing,
directing and controlling.
3. Service Center
An office works as a service center. It provides services to all the department of an organization. It provides
necessary information to all the department of an organization. Business cannot operate successfully without
better service system and office fulfills this requirement.
4. Co-ordinating Center
The success of business depends on the proper coordination of people and activities of the organization. It
keeps relations with all departments and deal with information necessary for effective coordination; it is a
mechanism or coordination.
5. Channel of Communication
Office not only keeps record of information but also plays the role of reliable channel of communicating the
information. It is required for smooth functioning of the organization.
6. Control Center
An office acts as a control center. Controlling is the important function of management. It helps to monitor
plans and policies which help in the implementation of proper working environment. It helps to prevent from
unwanted deviations. It provides data for managing and correcting deviations.
7. Memory Center
An office is the storehouse of records. It keeps the records of past and present. It provides necessary
information for future. It helps to report letters, circulars, notifications, policies etc. It is known as „brain‟ of
organization.
8. Help Employees
An office provides wages, salaries to their employees. They also keep records of workers attendance, leave
due, provident fund, and calculation of overtime. They also help to maintain the relationship between
management and workers.
9. Office as Intermediary
An office works as a middleman between department and outsiders. It links with supplier, customers,
shareholders, government and general public. These office activities enhance the image of the firm.

CONCEPT OF OFFICE MANAGEMENT


MANAGE-MEN-T can be interpreted as managing men, information and technology tactfully according to changing
times and ages to achieve organizational goals. In other words, management is doing things through other people. It
is technique of leadership and control of activities through the effort of other people.

The term “Office Management” is the combination of two words “office” and “management”. Hence, office is the
place from where various jobs are carried on and management is the process of planning, organizing, directing,
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coordinating and controlling. Therefore, office management is the process of planning, organizing, staffing, directing
and controlling the administrative functions of an office in order to achieve the objectives of the organization. It is
the process o utilizing the office resources efficiently o obtain the best result with less effort and cost. It helps in
receiving, recording and processing, supplying and retaining information. It is the branch of management which
deals with performance of these functions.

According to George R. Terry, “Office management is the task of planning, coordinating, motivating the efforts of
others towards the specific objective in the office”.

According to Mills & Standingford, “Office Management is the art of guiding the personnel of the office in the use
of means appropriate to its environment in order to achieve its specified purpose.”

Hence, office management is concerned with the application of management to office activities such as receiving
information, supplying information, filing, indexing, office layout etc. To conduct office management following key
elements is essential.

1. Clear objectives
2. Organization environment
3. Motivated employees
4. Resources

In conclusion, office management is described as smooth and efficient performance of office work. It utilizes the
human, financial and physical resources for the achievement of predetermined objectives.

IMPORTANCE OF OFFICE MANAGEMENT


1. Resource Utilization
Office management is important for the optimum utilization of available resources such as men, money,
machines and materials. The manger of the organization develops new technique and system to use available
resource effectively and efficiently through interaction and combination of various complements.
2. Goal Achievement (Achievement of Goals)
Office management helps in increases office efficiency, smooth flow of work, maintaining public relations,
minimization of cost, managing change and accepting the new challenges which help in achievement of goals
of the organization.
OR,
The goals of the organization can be achieve to the effective management. Office management integrates
various resources to perform various activities. It leads to achieve the goals of an organization.
OR,
Goals are the end results. Office management harmonizes the requirements of jobs and people for the
achievement of goals. So, it integrates the efforts of all employees towards goal achievement. It performs
varieties of functions such as planning, organizing,, staffing, leading, controlling and coordinating to achieve
predetermined goals.
3. Environmental Adaptation
Off ice management helps the organization to adapt the changing environment. As we know external
environment of business is dynamic. It identifies opportunities and avoids threats.
4. Better Co-ordination
Better co-ordination can be done with the help of effective and dynamic office management. Good
management support to integrate all the factors of production with full efforts. It ultimately helps to maintain
better co-ordination of employees, department and other activities.

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5. Change Management (Managing Change)
Office management helps in implementation of plans in right time and in right way. Bu there may be change
in resources, need, technology, preferences and so on which makes it necessary to bring about the change in
plans. Office management makes the office flexible which helps to manage the change.
6. Effective Performance
Office management is important for the effective performance. It plans and allocates enough resources in
every department to ensure effective performance by the employees.
7. Increases Office Efficiency
Office management focuses on office activities and helps office in economic way.
8. Smooth Flow of Work
Office management helps in performing efficient and effective office work. It helps in proper planning and
effective control in office.
9. Public Relations
There must be good public relation of the organization. The main purpose of public relation is to make the
organization look trust worthy to all people who deal with it in all its action. It helps in increasing the
goodwill of the organization.
10. Minimization of Cost
Office management guides the use of capital, natural, financial, human and other resources effectively
without leakage and wastages which helps in minimization of cost.
11. New Challenges
In an office, to achieve goals, many challenges should be faced. It helps in improving the research and
information system. It helps in managing all the rigid matters.
12. Provide Innovation
Innovation is the process of generating distinct and better methods. It is essential to adjust with the dynamic
environment. The office management is important because it supports to anticipate the changing test,
preference and the demand of the customer to improving quality of goods and introducing new technology.
13. Social Benefits
Office management provides employment opportunities, quality products and services to the society. It also
helps to make optimum use of both natural and national resources for the benefit of the society.
14. Increase Profits
Office management can increase profits either by increasing sales volume or by reducing cost. Increased
sales volume is not with in management‟s control but cost reduction is possible as office management can
reduce the cost of its operation.
15. To Face the Competition
Office management is the important tool to face the competition in dynamic environment. Management of
the organization develops new technologies and ideas with the support the organization to perform its
activities in competitive environment.

OFFICE ACCOMMODATION AND LAYOUT


OFFICE ACCOMMODATION
Meaning of Office Accommodation
Office accommodation refers to the arrangement of place and physical facility of an organization goal. It include the
choice of location, selection of building, shape and size of office room, lighting, ventilation, heating and other
convenient facility. Employees can freely work without any stress if the office accommodation is properly managed.
It is the process of selecting appropriate building in a favorable location, establishing different sections and
departments, proving or arranging resources in a scientific way. The purpose of office accommodation is to create
sound working environment and to bring efficiency and rapidness in office work. It is important for both employees
and outsider. Office employees spend a long time office. Bad accommodation can cause boredom and frustration
among employees. Bad environment also may cause bad impression to outsiders.
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Broadly, the factors to be considered in selecting the right type of office accommodation can be classified into the
followings:

1) Selection of Office Building


2) Selection of Office Location

Factors to be Considered while Selecting Office Building


1. Shape and Size of Office Building
It is one of the major factors that should be considered while selecting office building. It should have
adequate space to accommodate all machines, equipment, and employee with furniture and enough space for
flexibility. It should be considered taking the base of both present and future needs
2. Lighting and Ventilation
An office building should have adequate lighting and ventilation. It helps a lot to increase efficiency and
enhance worker‟s morale. Well lighted and ventilated accommodation puts less pressure on the employees
and also reduces the physical and mental strain and consequently the efficiency is higher.
3. Convenience to Customers and Employees
While selecting office building it should consider the convenience of customer and employees. It should not
be far from the related trade center, must have proper toilet and canteen services and food hospitality and
utilities.
4. Cost
The cost of building affects on total budget of organization. The building purchased or built must be within
the budget of organization. There should be balance between requirement of space, capacity of the
organization and the cost for covering the expanses.
5. Flexibility
Flexibility of office building in its shape and size should be considered while selecting the office building. It
must also match the nature of organization.
6. Layout Facility
The efficiency of men and machine depend upon the layout. The proper layout makes office attraction. For
this furniture, machine and other goods are necessary. This also helps in the internal arrangement of office.

Factors to be considered in Selection of Office Location


1. Nearness to customer: The office should be accessible to customers. They do not like long distances to
make business inquiries. The office should be accessible to other parties who are in regular contact.
2. Nearness to related business: It is desirable to locate the office near the offices of related business. It
should be established in the same line of trade.
3. Availability of infrastructure: The infrastructure should be available in office location. It consists of
transport, communication, power, water and parking facilities.
4. Nature of business: The nature of business affects location of office. Office of manufacturing business in
located near the source of raw materials, labor and service facilities. Office of trading and banking business is
located in commercial centers near the customers. Office of perishable goods business is located near the
market for such goods.
5. Availability of human resources: Needed human resources should be available for office. They can be
skilled, semi-skilled and unskilled. All facilities must be available for employees.
6. Environment: The office location should have healthy environment. It should not be near polluted rivers or
waste disposal sites. It should be free from noise, dust and pollution.
7. Cost of space: Sufficient space should be available at reasonable cost for the office. Space should be
available for future expansion.
8. Government laws: The selection of location should comply with government laws and regulation at
national and local levels.
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OFFICE LAYOUT
Meaning of Office Layout
Office layout is the systematic arrangement and utilization of the office space, equipment, furniture, persons etc. for
the smooth flow of work. Thus, office layout is the space management carried out to achieve maximum productivity
at minimum cost.
OR,
It is systematic arrangement of office amenities. It is arrangement of staffs, machines, equipment, furniture and other
physical facilities within the limit of available floor space. Its purposes are to utilize space in the best possible
manners, to make the outlook of the office attractive and to increase efficiency of the staff. It is defined as
arrangement and placing of men, material, machines and money to the optimum level.

Objectives/Advantages of Office Layout


Office layout is a space management. The main objective of layout is to achieve maximum productivity and
effectives at minimum cost.

1. To utilize the floor space properly.


2. To run the office work smoothly.
3. To help for the motivation of person.
4. To help for the minimization of physical hazards and accident.
5. To make proper supervision.
6. To maintain the attractiveness for impressing the customers and visitor.
7. To try for the provision of comfort and satisfaction of employees.
8. To help to provide security.

According to Littlefield, “Office layout may be defined as the arrangement of equipments within the available floor
space.”

Principle of Office Layout


1. Principle of flow of work:
It is the layout which helps for smooth and effective flow of office works. Simple, easy and prompt work
flow and essential for work progress
2. Principle of free movement and observation:
Office layout should allow the free movement of employees. There should also be proper supervision and
observation of works of movement too
3. Principle of effective supervision:
There should be free supervision of flow of works, movement of personnel, cost, wastage, balance of budget,
quality of office works etc.
4. Principle of departmental relationships:
For the office layout related departments are inter related and those inter related departments should be
placed side by side.
5. Principle of flexibility:
Office should be flexible enough to facilitate the expansion in the future.
6. Principle of maximum utilization:
As the time flows, there is increase in cost of every thing as per the situation of the economy if the country
and the area where office is established. There are very les cases of deflation basically in developing
countries. Therefore, when office is set up then there must be maximum utilization of employees, materials,
space, machines and resources. There should be reduction of wastage.
7. Principle of pleasing appearance:
Interior design, lighting, ventilation and cleanliness should be maintained. Office must be well furnished and
pleasing enough to make it attractive to all the customers and visitors.

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8. Principle of good ventilation:
Office must have enough doors, windows, and ventilation for constant supply of fresh air.
9. Principle of good lighting:
Office should try to provide natural light that is sunlight. Dark places should be avoided for establishment of
office.
10. Principle of safety:
An office layout must be based on the safety. It should reduce office accidents like theft, fire, damage and so
on .office machine must be implemented properly
11. Principle of service facilities:
There must be provisions of good canteen, lights, lifts, telephone, and toilets.
12. Principle of providing private offices:
In an office separate rooms should be provided to some important employees. If the work is confidential in
nature then private room should be provided. it is better to use movable partition to provide privacy

Steps in Designing Office Layout


It is the duty of the office manager to plan and design for the layout of the office. The following steps should be
followed in designing office layout:

1. Securing the blue print of the organization


It is the first step to secure the blue print of office building to know about the space available of office works.
It should be secured from top management. It blue print is not available then the space should be measured
and the sketch of building should be made
2. Assessing the need of the organization
Need of all department should be identified. Managers should consult the department heads to access space
requirement. Number of employees, method and nature of works , equipment and machines. Present and
future requirement should be determined. It is the second step of designing the layout
3. Arranging templates:
It is the third step in designing the office layout. The manager should prepare model known as template.
Templates are thin plates of board or metal that represents actual space with decorations. They provide
tentative design of office space. Several adjustments, change might me made before final model is finalized.
4. Indicating the electric wiring:
While designing the office layout, electric wiring should be properly managed. The location should be
properly wired to avoid the risk of short circuits and fluctuation of voltage.
5. Submitting the plan to top management for approval:
After making plans and policies, it is submitted to the various departments. The plans must be discussed with
the departmental heads and supervisors. They check the plans and finally approve it. Then only the plans are
ready to be implemented.

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