Definition of an office
An office is a place, a room or a building where clerical activities of the business are carried out so as to provide control, direction and management of an enterprise.
IMPORTANCE OF THE BUSINESS OFFICE FOR MODERN COMMERCE
- Office is the concrete proof of the instance of a commercial enterprise.Commercial office and its branches are identified with the business they transact. In case of banking and insurance enterprises, office is the only visible embodiment of the business which is carried on”.
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2.It is a place where plans for the business are prepared and policies are formed.A trading concern has to plan ahead its purchases, sales
campaigns, financial resources, etc keeping in mind the trends and tendencies in the markets. Specialized personnel are appointed to work out
the plans they prepare appropriate plans for the guidance of executive authorities in the office. On the basis of plans,the policies are framed by
the administrative heads of the office. These activities of the office are fundamental to the prosperity of the business.
3.It is through office that the administrative policies of the business are executed. Different departments are se up to put into effect the policies
decided earlier office is constituted by the operative group of executive personnel whose function is to implement the business plans and
policies laid down by the higher administrative authorities. Progress and prosperity of a business enterprise is preconditioned by effective
managerial control. This managerial control is exercised through office organization.
4.Correspondence which is a constructive force in modern business is one of the main functions of business office.Incoming letters are handled
through the medium of office. Incoming letters are forwarded to the concerned departments for prompt and suitable replies. Business office act
like the clearing house of correspondence.
5.Business office is storehouse of record.Incoming letters are filed for future reference. Similarly copies of outgoing letters are for the purpose of
records. Trading returns, financial materials are also filed for ready reference. Business office thus preserves records intact and makes them
available as and when required. Thus a modern office is the fountain- head of planning, control , co-ordination,communication and records.
BASIC FUNCTIONS OF AN OFFICE
The following are the basic functions of an office
- It receives information from internal and external sources.
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The office informations are obtained by ways of letters, telephone orders invoices and reports of various activities of the firm from various sources.
2.Recording information.
The office keeps information in relevant records eg files, registers books and references required by law. Required information is essential for
management to make decisions when required.
3.Preparing and arranging information.
Preparing such information as invoices, statistical statements, balance sheet, reports and visual and aids like graphs, pie chart etc.Information is
arranged in such a way it is useful to the management.
4.Protecting records.
The office through different departments should keep and protecting its records for benefit of the firm or an organization. Information is secured
for confidential purposes eg from competitors.
5.Communication.
The information received or prepared in the office is communicated to the relevant parties concerned verbally or in writing to such matters as
orders for materials to suppliers, estimates to customers and instructions to departments issued on behalf of the management.
ADMINISTRATIVE FUNCTIONS
(i) Management functions
Like planning, Organizing, staffing, directing, communicating etc.
(ii) Personal functions
The office assists personnel department in personnel related matters.
(iii) Safeguarding the assets. To take care the assets of the business.
(iv) Public relations
To keep good relations with the general public.
(v) Planning schemes and policies
The office assists in planning schemes and policies through collecting and processing information.
FACTORS CONTRIBUTING TO THE GROWTH OF OFFICE WORK
Due to the expansion of economic activities the work has been increased manifold. The following factors have contributed to the growth of office work
(i) The management needs proper and timely information on all aspects of business operations in order to arrive at intelligent decision- making.
(ii) When the business grows office work also grows proportionately.
(iii) The work concerned either the preparation of returns to government, financial statements, dealing with employees, etc increase office work.
(iv) With increase of service activities such as accounting, banking, advertising, marketing, insurance damages, etc. the proper work has increased tremendously ( very great).
(v) The importance of office in relation to customers is of great significance.Office act as the channel that links the business organization with its customers.
ACTIVITIES OF MODERN OFFICE
Office work differs from enterprises to enterprise. However, there are certain activities, which are performed by all offices. Some of these activities are listed below:-
- Handling incoming and outgoing mail.
- Developing office systems, procedures and methods.
- Maintenance of records ( filling and indexing).
- Designing and procuring at office forms stationery etc.
- Recruiting and training of office staff.
- Maintenance of furniture, machines, appliances.
- Preparation of statements, reports etc.
- Maintaining of accounts and other financial records.
- Preparing up to date information for the whole firm.
- Handling telephone calls and inquires.
- Arranging the data in a quickly accessible form for use.
- Safeguarding the assets.
- Keeping a prompt and accurate handling of inquiries, orders.
- Maintaining efficient flow of work in the office.
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RELATION OF OFFICE WITH OTHER DEPARTMENTS
Large organizations are divided into various departments such as office, production, purchase, sales, finance, personnel etc. It is the office which is concerned with receiving, recording, arranging, analyzing and giving of information. All the departments depend upon the office for various information needs. The office serves as the co-coordinating link in any organization. For coordinating the activities of different departments in an organization, office has to keep relations with each and every department E.g. orders for raw materials, sales complaints, appointments e.t.c are passed through office only office needs information of many kinds from different functional departments for framing general policies office supplies information needed in performing the functions of production, sales, personnel etc and collects information from these departments for general policy framing and co-ordination.
A diagram showing relationship of office with other departments of an organization
The two way relationship of office with other departments is related as follows
Office and production Department.
Office work provides the necessary information for planning and control of production work.It renders clerical services like typing, duplicating.
An office maintains records of inventory work in progress, cost of production.
Office and marketing/sales department.
An office maintains contacts with the customers.
It supplies information about the current fashion and competition to the marketing department . customers make enquiries and place orders through the office.
It provide clerical work like typing duplicating and maintaining sales records on behalf of the marketing department.
Orders are executed by the sales department and the bills is sent through office.
Complaints from the customers are received by the office and conveys them to sales department.
When sales go down, the office helps in market research to find out the reasons for low sales. The reasons are known to departmental heads, who take step to overcome the situations.
Office and purchase Department.
Materials, stores, plant, machineries etc needed for purchase department is arranged by the office. Office assists the purchase department in inviting quotations or tenders in sending orders, receiving invoices, making payments.
It also gives general services to purchase department and maintains.Purchase Journals, ledger
Office and Accounts/finance Department.
The accounts department maintains all the records of all business transactions with the help of an office.
The office prepares various financial statements and reports for the top management.
Correspondence on behalf of accounts department is conducted by the office.
It renders assistance to maintain the books of accounts, budgets, salaries and books of accounts, budgets, salaries and wage bills, invoices, collection of debt.
Office and personnel management
The personnel department depends highly upon the office for performing its work.
The office gives advertisement for job vacancies, receives applications, sends interview and appointment letters etc on behalf of the personnel department.
It maintains the personnel files of employees.
IMPORTANCE OF AN OFFICE
No business concern can exist without an office. An office can be described as the never centre of the whole concern. The importance of the office is as follows
(i) Office renders valuable services to all other departments. The important services provided by the office include clerical and other services to other department, divisions, sections, etc of the organization and they can not operate without an office.
(ii) Office as an information centre or memory centre.
Office is the information centre of a business is an organization, office is as important as the brain in the human body. As such office is the brain of the organization it collects useful pieces of information, from different sources, i.e internal and external, and records them. It arranges and analyses them and makes them available to the management whenever needed. Thus office acts as an information centre or store house or memory centre. All kinds of information, past or present are available in the office.
(iii) Office as an intermediary.
It connects outsiders with different departments and vice versa. All the sales orders are received through the office. It connects the organization with the customers, suppliers, government and general public office act as channel that link the business organization and its customers. Their enquiries, orders complaints etc are taken care by an office
(iv)Office as an administrative nerve centre an office is the heart of all business activities from here information on purchase, sales, finance and communication entrusted to it.
(v) Office as a control centre.
It is the medium for translating the policies into action. Then management makes but plans and policies and directs business activities in profitable ways and each department office is responsible for the function entrusted to it.
(vi) Office as a co-ordinator.Office aids management to bring about co-ordination. A central office co-ordinator the activities of departmental offices the office provides the necessary data. The management brings about co-ordination.
QUESTIONS
- What is an office? What are the functions of an office?
- What is an office? Bring out its importance.
- “Office work is unproductive clerical work” explain.
- The office is a co- ordinating factor. Explain
- The office is the nerve centre of an organization. Explain
- What are the functions of modern office? Explain its organization and Management.
- An office may be regarded as a place where the central mechanism for an organization is located comment on this statement and explain the importance of modern office.
- No organization worth the name can exist without an efficient office” comment on this statement and bring out clearly the functions of modern office.
- The office is to a business, what the mainspring is to a watch explain.
- What is the relationship of office with other departments in the business firm?
- Office does not produce any article for sale therefore, office work is relatively unimportant” do you agree? Give reasons for your answer.
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12. “Office work is concerned with records and statistics with computing with planning and scheduling”. In the light of this statement, discuss the administrative
management functions of an office.
13. The essential feature of the office is the work itself, not who does it or where it is done” .Discuss.