record_mangement_-OM
Records Management
Introduction
George Jemore Moscowitz: "During the past two decades, man has managed to create more paper documents than he did during the 5000 years of recorded history preceding them."
Records
Definition: Any written data made for possible future use.
Refers to correspondence and other documents created, received, and stored in a business office.
Includes all forms of information processing media, such as correspondence, vouchers, cards, registers, files, tapes, or microfilms.
A typical business has dozens of kinds of records, which constitute the memory of the entire organization.
Classification of Records
Correspondence Records:
Letters, notices, circulars, memoranda, etc., received and sent by the organization.
Accounting Records:
Accounting and financial records in the form of account books, vouchers, invoices, orders, contracts, etc.
Evidence of various accounting and financial transactions.
Personnel Records:
Records relating to the personnel of the organization.
Examples: performance records, labor turnover records, personal histories of employees, wage sheets or payrolls, etc.
Legal Records:
Maintained under various statutes such as The Income Tax Act, The Sales Tax Act, The Companies Act, etc.
May include records serving as legal evidence.
Other Business Records:
Purchase records, stock records, sales records, production and cost records.
All other records not covered by the above categories.
Importance of Records
A large variety of records are found in modern offices (letters, reports, invoices, contracts, vouchers, circulars, minutes, notices, tax records, statistical records, price lists, catalogues, etc.).
Constitute written evidence of business activities and the memory of the entire organization.
Human memory is limited, so records of business transactions must be maintained.
Relevant papers and documents relating to the business must be kept in some order for future use.
Herbert Hoover: "A business decision is only as good as the facts on which it is based."
Records Management
Definition: The management control of records (Peterson).
Includes activities designed to control the life cycle of a record from creation to disposition.
Life cycle stages: creation, utilization, storage, retrieval, and disposition.
Littlefield: Includes forms, reports, reproduction of written material, filing records, retention, microfilming, and related services.
J.C. Denyer: Modern Records Management involves more than filing systems; it includes indexing, central filing, records retention, follow-up, and microphotography.
In its broadest sense: Concerns records' creation, distribution, maintenance, retention, preservation, retrieval, and disposal.
Purposes of Records Management (Leffingwell and Robinson)
To Keep an Orderly Account of Progress:
Record transactions (financial and other kinds), documents, papers, correspondence, etc., to record the progress of the business.
Historical function of records.
Facilitate Preparation of Statement of True Condition:
The true condition of a business can be known only by means of its up-to-date records.
Vital importance for business planning and decision-making, particularly in changing circumstances.
To Facilitate Comparisons:
Records facilitate comparisons between time periods, product lines, or firms in different lines of business.
Analytical function of records is increasingly important.
To Detect Errors and Waste:
Errors and wastes can be known and controlled only with proper records management.
Control function facilitates the evolution of techniques for eliminating errors and waste.
Legal Formalities:
Certain records must be kept for a specified time under the law (e.g., sales records under The Sales Tax Act, receipts and payment vouchers and accounts books under The Income Tax Act).
Additional Purposes of Records
Written records are the memory of the business and can be used for future decisions.
Records are an important tool in the hands of management for making vital decisions based on relevant and up-to-date information.
Records are an important aid when past records are needed to argue a case or settle a dispute, serving as written proof of transactions.
A good system of record keeping and retention makes required information available quickly and accurately, bringing efficiency in office operations.
Principles of Records Management
Justification:
The purpose for which records are kept should be justifiable.
Avoid recording all facts on the off chance they might be useful one day.
Examine records to find any without clear purpose and remove them.
Verification:
A record should be capable of verification if needed.
If verification is not possible, it has no value as evidence in court.
Classification:
Records should be properly classified for use.
Chronological recording without classification makes analysis difficult or impossible.
Classification itself is a form of analysis of the recorded facts.
Availability of Information:
Information desired should be available when needed.
Records do not always have to be instantly available.
Availability should be in the shortest possible time.
The purpose of a record should govern its character and degree of availability.
Reasonable Cost:
The cost aspect of records management should not be ignored.
Not all records are of equal importance or value.
The cost of preparation should relate directly to their importance and value.
Control the cost of preparing less valuable or important records more strictly.
Records Management Manual
For effective implementation of a records management program, a Records Management Manual is advisable.
The manual should be approved, periodically updated, and made available to each employee working with records.
Contents:
Objectives of the records management program
Statement of policy of the program
Organizational structure of the program
Filing systems used and types of records filed under each system
Personnel structure of the program
Records retention schedule
Procedure for records and information retrieval
Disposal of records, including their protection, transfer, micro-recording, and destruction
Procedures for evaluating the program
Records Management Process
Five stages:
Creation
Utilization
Storage
Retrieval
Disposition.
Creation Stage:
Development and design of appropriate forms and their control.
Efficient methods of entering data on documents.
Determining the storage period before destruction.
Utilization Stage:
Efficient procedures to retrieve and deliver desired records to the desired location at the desired time.
Effective records movement procedures.
Storage Stage:
Efficient utilization of filing equipment and space.
Accessible location and protection against disaster or unauthorized use.
Retrieval Stage:
Rapidly locating desired records.
Signaling documents withdrawn from files.
Tracing documents not returned within a reasonable time.
Disposition Stage:
Preserving valuable documents.
Transferring records from high-cost to low-cost storage areas.
Proper program of destruction for records no longer required.
Micro-recording of documents.
Components of Record Management Program
Control: Isolating, delineating, and enumerating all major elements of information flowing through the network. Ensuring compliance with practices and procedures.
Evaluation: Measuring the validity and effectiveness of the information flow before and after modification. Examining the relevance of information generated and stored. Assessing the flexibility of the system to provide for future needs.
Simplification: Restructuring network design and content, eliminating waste and confusion, and establishing clarity and efficiency.
Training: Instruction, demonstration, and practice of new programs before implementation. Reinforcement technique.
Implementation: Coordinating authorized personnel with specific procedures to create, process, store, retrieve, and destroy records under supervision until performance accuracy is ensured.
Review: Monitoring the program immediately after active professional participation is withdrawn and at gradually longer intervals thereafter to test accuracy, reliability, validity, and reference.
Fundamental Functions of Records Management (Lyle R. Clark)
Controlling the flow of records from creation through use and maintenance to preservation and ultimate destruction.
Creation Control: Includes forms control, reports control, and reproduction control.
Maintenance: Includes filing systems, file equipment, correspondence control, and methods of retrieving information.
Preservation and Protection: Includes microfilming and disaster planning.
Analyzing Record Keeping
Questions to consider:
Are the records necessary? Do they accomplish the purpose for which they are kept? Is the purpose justified?
Are the records used? A record which is not used does not necessarily mean that it is useless.
Are the records made to avoid unnecessary writing? Use abbreviations and symbols.
Is unnecessary copying avoided?
Are the forms which are used the best for the purpose?
Is the equipment the best for the purpose?
Are the tools used the best for the purpose?
Can the record be coordinated or combined with another already in existence?
Essentials of Records Management System
Simplicity: Fitting the requirements and not exceeding them, to facilitate comprehension.
Accuracy: Preventing errors and enabling proof of work by simple processes like addition and subtraction.
Economy: Using as little time, energy, and material as possible to achieve desired results.
Usefulness: Securing the facts needed for effective management when needed, avoiding collection of details not needed or used.
Key Requirements for an Effective Record Control System (Littlefield and Rachel)
Objectives and policies which are carefully formed and clearly understood.
Organization suitable to needs, with responsibility clearly defined.
Filing systems, equipment, and supplies designed to meet those needs.
A retention system that applies a time table to all documents, ensuring retention while justified and destruction when no longer worth the cost in facilities and effort.
Filing
Filing is a form of record-keeping. Documents are filed in order that they may be available for use at some future date.
Leffingwell: Filing is the process of so arranging and sorting original records, or copies of them, that they can be readily located when required.
Neuner and Keeling: Filing is the systematic arrangement and keeping of business correspondence and records so that they may be found and delivered when needed for future reference.
George R. Terry: Filing is the placing of documents and papers in acceptable containers according to some predetermined arrangement so that any of these when required, may be located quickly and conveniently.
Zene K. Quible: Filing is one of the activities in the records management program which involves systematically classifying, coding, arranging and placing of records in storage.
Objects of Filing
Proper arrangement of records
Proper sorting of records
Easy availability of records
Record Keeping vs. Filing
Record keeping in an office mainly consists of:
Maintenance of the books of accounts
Maintenance of statistical books
Filing and indexing documents and written records
Record keeping is broader and more comprehensive, while filing is merely one of its processes.
Modern Records Management involves filing, indexing, central filing, records retention, and follow up action.
Importance of Filing
Large number of papers and documents cannot be preserved and handled without proper arrangement.
Future planning is done by executives based on past performance and records.
Certain records are maintained under the provisions of various statutes.
Business correspondence refers to previous letters, documents, etc.
Purchasing involves following up or repeating orders, referencing old records.
Records provide documentary evidence in the event of a dispute.
Unsystematic records management causes chaos in an office.
A systematic preservation of various types of information for various purposes is made possible only by a good filing system.
Functions of Filing System
Library function: Sorting and arranging records for future reference
Administrative function: Maintaining records of previous decisions, helping executives in framing business policies
Information function: Maintaining, protecting, and supplying various types of information for various uses and purposes
Historical function: Preserving important records bearing on the progress of the organization
Advantages of Filing
Increased Efficiency: Enables staff to handle correspondence properly and without delay. Saves time and brings efficiency to the office operations, enhancing the organization's reputation.
Ready Reference: Serves the purpose of ready reference for customers repeating orders or follow-up measures.
Protection: Protects documents against possible loss or damage.
Planning: Provides valuable information for the formulation of business policies for the future.
Quick Decisions: Enables executives to take correct and quick business decisions at the proper time.
Better Control: Facilitates the process of control. Keeps a check on incoming and outgoing letters, disposing of letters requiring immediate attention quickly.
Legal Compliance: Fulfills legal obligations by keeping those documents and records which are required to be preserved under the provisions of the law.
Evidence: Old records are useful as evidence in a law suit or in proving titles to assets and even to the existence of the organization itself.
Essentials or Characteristics of a Good Filing System
No one ideal system, but should have the following characteristics:
Compactness
Accessibility
Economy
Simplicity
Flexibility
Easy Location (and Reference)
Cross Reference
Retention
Classification
Minimum Misfiling
Safety
Planning the Filing System
Planned with regard to the objectives of filing and the nature of records.
Determining Period of Storage
Acquiring Storage Space
Planning Storage Arrangements
Deciding Where to Store
Determining Equipment Needs
Protection of Records
Determining System of Classification
Training the Staff
Guidelines for Effective Filing System
A filing system can be arranged chronologically, that is by years; or by subject; or alphabetically: ideally one should have a combination of all three.
Before starting, discard the cluster, all the junk mail, old coupons and corporate literature which may have accumulated.
Use sturdy folders that can withstand repeated use.
When maintaining files in a chronological order, six folders; one each for each day of the week may be used and marked accordingly; and a seventh folder may be marked for Next week.'.
The chronological system of filing works well when there is a time bound workload to attend to and queries like: 'What was the reply to Thursday's letter?' are frequently asked.
A separate 'financial file' may be maintained to put all the paid monthly, quarterly bills. This file may be further classified into 'utility bills', 'maintenance bills', 'Telephone/ Electricity | Bills,' 'Repairs bills', and so on depending upon the number of bills in each category.
Subjects file, if arranged alphabetically, are easier to handle, subjects may be prioritised like 'very important', 'general' or 'routine'; however such practice is not recommended.
Alphabetical files are recommended when office is getting a lot of mail from different sources and it is required to retrieve it very quickly.
For a filing system to be effective and work, it needs a team which knows how it works.
Determining Equipment Needs
Filing equipment required should be properly estimated and procured.
Protection of Records
Decide arrangements for protecting records from loss or damage.
Training the Staff
Make arrangements to train staff handling files; stress accuracy.
Classification and Arrangement of Files
The greatest difficulty is not in filing records, but in finding them.
Classification is the process of selecting headings under which documents are grouped or classified on the basis of common characteristics before filing takes place.
The object of classification is to select any one document from all the documents stored in the office. The method is to divide and sub-divide them into groups, so that the final selection is from a limited number.
The major object of classification is to trace any one document from among all the documents stored in the office without loss of time and minimum cost.
Methods of Classification
Alphabetical Classification
Numerical Classification
Alphabetical-Numerical Classification
Geographical Classification
Subject Classification
Chronological Classification
1. Alphabetical Classification
Arrangement by the first letter of the name in alphabetical order (like a dictionary).
Example: telephone directory.
Suited for correspondence, contracts, orders, staff records, etc.
Best for offices with fewer than 1,000 correspondents or subject files.
Advantages:
Easy and simple to understand and operate.
Self-indexing; no separate index needed.
Elastic; new headings can be introduced without disturbing the classification.
Provides direct reference and offers a quick check, minimizing misfiling.
Convenience of grouping papers by company name.
Useful for miscellaneous papers.
Disadvantages:
Takes a long time to find papers in large systems, reducing speed.
Congestion under common names.
Papers may be misfiled due to misspelling or filing under different headings.
Difficulty in forecasting space requirements under different letters.
2. Numerical Classification
Each folder or record is given a number and files are placed in strict numerical order.
Requires an index to obtain the file number.
Example: copies of purchase orders filed in serial order, referenced by purchase ledger.
Suited for colleges (roll numbers), transport authorities (registration numbers).
Variants:
Consecutive Classification: Folders/files arranged in strict numerical order from 1 onward.
Dewey Decimal System: Libraries use this system, each digit represents a different class (e.g., 331.1163 stands for Sociology, Economics, Labour, etc).
Terminal Digit System: Expedites reference and facilitates transfer of old records; makes for even distribution.
Advantages:
Ease in sorting papers prior to filing.
Greater accuracy in filing, minimizing misfiling.
Flexible, unlimited expansion is possible.
File number can be used as a reference.
The index is a complete list and can be used for other purposes.
Disadvantages:
More time is required to index before a file is located.
Not easy to arrange files for miscellaneous papers.
Greater care is required to avoid errors from transposing figures.
The cost of index and space makes this system expensive.
3. Alphabetical-Numerical Classification
A combination of alphabetical and numerical systems.
Filing is alphabetical, but each letter has numbered folders.
Example: banks (account numbers), libraries (location code), transport authorities (registration numbers).
Advantages:
Has advantages of both alphabetical and numerical classifications.
Elastic classification, expandable to an unlimited extent.
Facilitates quick reference.
Avoids confusion of names and has the exactness of the numerical system.
Disadvantages:
May become extra-complicated in a large organization.
4. Geographical Classification
Based on the geographical origin of papers/documents.
Most suitable when records need to be maintained by territories or geographical area.
Often essential for sales records or customer accounts.
Classification may be town-wise, district-wise, state-wise, country-wise, or continent-wise.
Steps:
Set geographical limits and define areas forming a unit.
Arrange states in alphabetical order.
Within each state, use district-wise or town-wise classification.
Alphabetical or numerical classification of different parties within each sub-division.
Advantages:
Assists in speedy location of files.
Direct filing is possible.
Disadvantages:
Geographical location must be known to avoid misfiling.
Usually requires an index.
For better results, combine with other methods.
5. Subject Classification
All letters/documents relating to a subject are brought together in one file.
Classified and grouped by subject matter and arranged alphabetically.
Subject headings may be sub-divided, arranged alphabetically or numerically.
Suited when subject matter is more important than names/addresses.
Useful for professional firms (architects, engineers, purchasing officers).
Advantages:
Convenience of reference if the subject is known.
Unlimited expansion.
Combine different papers on single subjects.
Disadvantages:
Comparatively slow and difficult; clerks must understand the content of papers.
Requires care in selecting file titles.
Not very suitable for miscellaneous papers.
Time consuming if cross-reference is frequently required.
6. Chronological Classification
Records are filed and arranged in strict date order.
Employed in filing invoices and other vouchers, or correspondence.
Cannot be used independently; should be classified according to subject and then by date.
Advantages:
Useful when dates are known.
Good for overall classification, e.g., correspondence in different years.
Simple to operate.
Disadvantages:
Useful only for a small business.
Not useful when the date is not known.
Incoming letters might be separated from outgoing replies.
Factors in Selecting Classification
Speed of reference, accuracy, flexibility, and transfer to reserve storage are affected by the system of classification and arrangement of files. Consider:
Convenience: What is the most convenient method of reference (or cross-reference)?
Size: What is the size of the system? Larger systems should be numerical.
Simplicity: Which is the most simple system? The alphabetical system is generally the simplest.
Expansion: The system should facilitate expansion. The numerical system serves this purpose best.
Speed of Reference: This too, is an important consideration. Some compound or combined system may achieve this objective.
Accuracy: Which system avoids the possibility of misfiling?
Every business must select the system or systems best suited to its particular purposes.
Alphabetical and geographical systems are direct filing methods.
The alphabetical system does not require cross index.
A table which depicts how different classification methods relate to the suitability and the used of various businesses.
Method | Suitability | Used in |
|---|---|---|
1. Alphabetical | Suitable where files are required to be maintained in respect of clients, customers. Suppliers etc. and where number of files is not large. | Share Broker firms, Contractors, Builders Stores Departments, Personnel Department etc. |
2. Numerical | Suitable where the number of files to be maintained is considerable and each file is allotted a number | Banks, Transport Companies, Educational Institutions etc. |
3. Alpha-Numerical | Suitable where a simple numerical classification is not sufficient and must be supported by alphabetical classification. | Transport Authorities, Insurance Companies, Income Tax Departments etc. Insurance |
4. Geographical | Suitable where files are maintained in respect of different Branches, Sales Depots, Regional Offices, factors located at different places | Mail Order Business, Inter-state Trading Organisations. |
5. Subect-wise | Suitable where files are maintained for each subject matter | Architects, Engineers. Purchasing Officers, other professional firms etc. |
6.Chronological | Suitable where records must be preserved in strict date order | Sales Offices, Legal Departments |
Filing Equipment
The choice of filing equipment affects the efficiency of the filing system.
Equipment should contribute to the overall operational efficiency of the organization.
Purposes:
Protection of documents against loss, deterioration, and damage.
Prevention of theft or unauthorized reference.
Reduction in physical effort for filing clerks.
Considerations:
Number and size of records
Frequency of reference
Speed of information desired
Appearance of equipment
Quality of equipment
Availability and layout of floor space
Visual signaling
Requirements of Good Filing Equipment
Adequacy: Fully adequate for the purpose
Simple to use: Indexes, guides and folders should be easily accessible
Require little energy: Should not entail laborious work on the part of employees
Of good quality: The equipment should be long lasting
Economical of space: Should be economical in its use of space.
Provide for transferring: Should have equipment for transfer of space
Methods of Filing
Classified in two broad categories:
Conventional Methods
Modern Methods
Conventional (or Old) Methods:
Metal Holders
Card Board Files
Bound Books (Guard Books)
Spike or Pillar-and-Post Filing
Expanding Pockets
Concertina File
Box Files
Pigeon-Hole Method (Docketing)
Press-Copy Book Method
Modern Filing Methods
(A) Horizontal Filing
(B) Vertical Filing
(A) Horizontal Filing
Horizontal position of files, placed one on top of another on shelves or in shallow drawers.
Filed in chronological order.
Flat Files: Covers of cardboard or thick paper with metal hinges.
Arch Lever File: Strong cardboard folders containing metal arches operated by a lever.
Advantages:
Simple to understand and operate.
Comparatively cheap.
Kept in chronological order.
Quick reference can be made with an index.
Little risk of losing documents.
Disadvantages:
Taking out any paper dislocates others (drawback of a flat file).
Difficult location when a large number of papers are stored.
Unsuitable for large-scale organizations.
Does not allow for expansion.
Wasteful of space compared to the vertical system.
(B) Vertical Filing
Files are kept in an upright or standing position.
An improvement on horizontal filing.
Folders, etc., are stacked on edge in drawers or cabinets.
Equipment:
Folders: Basis of vertical filing, made of manila paper or strong paper; used to hold papers and documents
Cabinets
Advantages
Ready reference.
Economical.
Ample Scope
Better safety and security ensured.
Adaptable.
Universal application.
Other Filing
Suspension Filing: Fitted with metal bars suspended on a rectangular metal frame which is fitted inside the filing drawer.
Lateral Filing: A variation of vertical filing, files arranged side by side.
Open-Shelf Filing: Open shelves are provided for the storage of folders.
Visible Filing (Card Filing): Information shown on rotating reel, on card
Latest Filing Devices
Motorized Files: Electrically operated console where trays of reference cards are suspended around in a drum to be viewed
Reciprocating Files: File tracks move along a route to meet clerical work flow requirements.
Microfilm Files: Retains information given in office documents to serve as permanent record.
Computer Filing: Computers are capable of storing large quantities of information that can be retrievet with ease
The Cost of Filing
The cost of the factors to consider in filing operations;-
The filing equipment used.
Equipment for transporting the documents.
Rental value of space occupied by the files.
The depreciation of filing equipment.
The cost of accessories
The interest on investment.
Lighting, heating, air-conditioning etc. expenses for the room used for filing.
Cost of preservation of the documents in the files.
If filing costs are to be cut-down. then it is advisable to preserve anly indispensable documents and classify them as economically as possible and in a way that they cen bé retrieved quickly and easily.
Centralised Vs. Decentralised Filing
The documents and papers relating to a department of a business organization be either filed at a departmental level itself or in central place
Centralised Filing
Under this system, all records of the organization relating to the activities of different departments are filled in one place
Advantages:
The lling equipment and Noor space are more fully and efficiently ulilized. in the circumstances, lewer tiling cabinets are required
Unnecessary duplication of records is avoided.
The program utilizes trained and qualified personnel
Uniformity of filing procedures and systems throughout the organization may be maintained.
Disadvantages:
Records may become more vulnerable since they are stored in one central location.
Considerable time is spent on the frequently transporting of used records to and from the central storage area
If records cannot be immediately obtained, inconvenience is likely to result.
Decentralised Filing
Under this system, filing is done by different departments independently and not centrally in one place
Advantages
Saving time
Specialized Knowledge
Ensured Safety
Disadvantages:
Costly filing equipment
Specilaized filing staff not fully utilized
Lack in Standardisation
Evaluation
Since both the systems have advantages and disadvantages, clear-cut choice depends on the size and nature of the organisation , with a choice between centralised filing where decentralised is particularly suited for big and autonomous department.
Centralised works best for documents, assets and investments while decentralised is best for routine, giving a reconciliation from Central to-decentral filing.
Indexing
An index is a ready guide to the location of the required file record.
Important aid to filing and finding because, when a large number of files are maintained.
Enhances the utility of the filing system because documents can be easily got at.
Indexing Vs. Classification
Classification is a method of filing!
Indexing is basically a matter filed
Self-Indexing:
The index may either be apart from the records to which it refers, or the records themselves may be so arranged
Telephone or Yellow Pages
Index is Self Indexing or Chronologically indexing
Advantages of Indexing
Easy location of the documents and letters
Good indexing system saves time and effort
Improves the efficiency of the records administration; is simple to operate and economical.
Types of Indexing ( methods/ or systems)
*Selection of indexing depends on nature and volume of indexing records.
Page Index
*An ordinary page index consists of each letter of the alphabet, on each page are written names.Bound Book index
*Bound book or register divided into alphabetical section with right hand leaves, All entries are arranged in a page/alphabetical order.Loose Leaf Index
*Pages not fixed permanent, where ones removed, or are inserted in metal fringesVowel Index
*An extension of bound book index, big organizations, where the list of correspondents is very large.Loose of vertical
*overcome the difficulties (drawback of an ordinary page index, each concerned with one item of the references placed in drawers and in alphabetical/manual order.
Loose card Index(has different uses depending)
keeping particlarities
To keeps accounts od stock items
To keep records if investments and assets
Advantage of loose card index
Order can be arranged/suited, equipment incuding size is cheap and cards provide address, names and the system us elastic.
New Cards inserted/ removed while retaining sequence
Visible Card index
*Under this system cards are laid in transparent covers and it overlaps with the others the narrow strip has a title and is visible.