Business Administration MGMT201

Department of Public Relations Studies

Department of Mass Communications Studies
Study Guide 2007

Prepared by
Elke Alexandria

Produced by learning materials center

Sekolah Tinggi Ilmu Komunikasi
The London School of Public Relations - Jakarta

Copyright
STIKOM LSPR 2008
ACD/SG-MGMT201/065/00/08/CBC
Prepared by Elke Alexandria for learning materials centre Sekolah Tinggi Ilmu Komunikasi
The London School of Public Relations - Jakarta

Published in September 2005

Welcome to Business Administration!

We all already know and often hear the word administration in our daily life. We use
the word in many contexts as well as in business area and in any other disciplines.

Administration can include many aspects. Many people may refer administration to
office paper work, accounting work, filling work, or simply some office work that has to do
with payment.

Actually, administration scope in a business environment is rather wide. It includes

discussions on the office itself, the equipment, the human resources, the procedures and
many other aspects that really affect the productiveness and the effectiveness of an orga-
nization.

It may not be easy to get the understanding of business administration concept without
a real work experience. However, throughout this course, we will not just learning about
the theory behind business administration. But we will also do some exercises that reflect
the real activities of administration and will do discussion on some case studies to make
this course more interesting to learn.

There are numbers of readings for this subjects, in which will help you to understand
and comprehend the topics. Along with the readings, there are also exercises and activi-
ties that will help you to organize your approach to the problems and challenges you will
face in your later career.

I also recommend you to do more readings in any other topics/areas to widen your
knowledge such as management, marketing, communication, politics, arts, and sociology in
the same time that you develop your point of view and understanding in business industrial
administration.

In closing, good luck and have fun on your study. Hope that this subject will be a
fascinating subject to learn. I look forward to meeting you all at the London School of
Public Relations Jakarta.

Elke Alexandrina
Business Administration Lecturer
SUBJECT OUTLINE

Business Administration

Course Description:

This course is to introduce the concept of administration management in daily busi-

ness activities. This course discusses about administrative activities, equipments used
com¬monly in many offices, procedures, types of information, and how communication
and personal effectiveness affect the running of an organization.

Subject Objective:

After studying this subject students will have:

Knowledge in the administrative management functions, the human resources re-

quirements, and the importance of the administrative functions.
Knowledge in office machinery and equipment
Knowledge in business environment and methods of office control
Knowledge in procedures and information used in a business offices such as how to
keep confidentiality and security of important information
Knowledge in communication in a business environment, personal efforts and effec-
tiveness needed in a working environment to be able to work to deadlines, meeting
targets, effective teamwork and give support for others.
INFORMATION

This subject consisting of:

1. Subject Outline: The subject outline provides an overview of the subject. Introduce
the lecturer or study guide writer.
2. Scheme of Work: Topics and content discussed per week, per chapter, include schedule
for mid test and final test for one whole semester.
3. Study guide: The study guide give an introduction to and commentary on, each topic
and integrates the resources in a structures topic by pattern for the session’s work.
4. Sources: References use for preparing this study guide by lecturer/writer
5. Readings: The readings are a collection of published material necessary for success-
ful completion of the subject.
STUDYGUIDE WRITER

Elke Alexandrina
I joined the London School of Public Relations Jakarta-Campus A in September 2003. I
am responsible in teaching Business Administration, Introduction to Marketing, International
Marketing and Principle of Logic classes. Prior to that, I was working for Sumberdaya Info
Prima (SIP), an Information Technology and Human Resources Consultant as a Human Re-
sources/Recruitment Consultant and a Marketing Coordinator. My career began in a multi-
national company called National Data Corporation (NDC) - Health Information Services in
Phoenix, Arizona, USA as a Client Service Analyst.

In 1997 I completed my Bachelor Degree in Management Information Systems from

College of Business, Arizona States University, Arizona USA and completed my Master de-
gree in the same discipline from Western International University, Arizona, USA in 2000.

Contact Procedure

Any questions concerning the teaching of this subject can be made by contacting your
lecturer, or email to elke.a@lspr.edu . If you contacted me via e-mail, you should provide
me with the following information:
1. Your name
2. Your class group
3. Your message
SCHEME OF WORK

Week 1: Introduction of the course

Introduction of the lecturer and students
Chapter 1 Administrative Management
Definition of Administrative Management

Week 2: Chapter 1 Administrative Management

Developments of Administrative Management Thoughts Elements of
Managements

Week 3: Chapter 2 Office Management

Definition of Office Management
Responsibilities for Office Work
Duties of Administrative Staff
The Qualities and Skills required
The importance of the office as ad administrative center
Planning and Organizing the Office

Week 4: Chapter 2 Office Management

The Future of the office
The organization of administrative work
How certain functions serve the whole organizations
The importance of the administrative functions in promoting a posi
tive image
The office as a resource center

Week 5: Chapter 3 Office Machinery and Equipment

Media of Office Communication
Written Communication
Oral Communication
Telecommunication
Other office services
Document Reproduction
Week 6: Chapter 3 Office Machinery and Equipment
Office Information System
Advantage of Office Automation
Conferencing Systems
Other communication systems

Week 7: REVIEW CHAPTER 1 - 3 FOR MIDTESTQUIZ

Week 8 - Week 9: MID TERM EXAMINATION

Week 10: Chapter 4 Work Environment and Control

Safe and Tidy Working Environment
The need for security in the business environment
Basic Requirements of Working Areas

Week 11: Chapter 4 Work Environment and Control

Emergency Procedure and Accident Reporting
Office Controls and Standards
Methods of Office Controls and Monitoring to maintain standards
Reporting Variances when standards are not achieved

Week 12: Chapter 5 Procedure and Information

The need for procedures and standards in a business organization
The types of information dealt with in an office
The need for efficient means of storage and retrieval of information
Methods, systems and procedures for storage and retrieval of informa
tion
Methods of indexing and classifying of information

Week 13: Chapter 5 Procedure and Information

Confidentiality and security
Distribution and routing of information
Why information and documents need to be kept for a period of time

Week 14: Chapter 6 Communication, Personal Effectiveness

and Supporting Others
Choosing the right method of communication
 Setting up meetings and conferences
Booking appointments, the use of manual and electronic diaries, and
the need for good diary management
Simple written communications including messages, short letters and
memos
Simple Forms
The use of flow charts, planning aids, movements charts and the of
fice diary to aid communications

Week 15: Chapter 6 Communication, Personal Effectiveness and

Supporting Others
The importance of working to deadlines and meeting targets and of
fective teamwork and support for others
Getting it right first time
Following instructions and taking corrective action; the need for ap
praisal and performance monitoring

Week 16: QUIZ Chapter 4 - 6

Week 17: Review Material for Final Examination (Chapter 1 - 6)

Week 18: FINAL EXAMINATION

1 Administrative Management
Topic 1
Administrative Management
Topic Outline
1.1 Definition of Administration and Man-
agement
1.2 Development of Administrative Man-
agement Thoughts
1.3 Elements of Management
Objective
Upon completing this chapter stu-
dents should be able to:
Describe the concept of management
and why it is needed to reach organi-
zational objectives
Understand the nature of administra-
tive management
Describe the elements of management
1.1 DEFINITION OF ADMINISTRATION AND MAN-
AGEMENT
Definition of Administration:
The activities of the higher level of
the management group who determine
major aims and policies.
Controlling the day-to-day running of
the enterprise.
Brech definition of Administration:
‘That part of the management process
concerned with the institution and carrying
MGMT201, Business Administration
out of procedures by which the program
is laid down and communicated, and the
progress of activities is regulated and
checked against targets and plans
Definition of Management:
A process by which scarce resources
are combined to achieve given ends.
This describes an activity which can
be better described by the word
managing.
The management referring to those
people carrying out the activity. This
should really be the managers.
The body of knowledge about the
ac¬tivity of managing, regarded here
as a special field of study.
Brech definition of Management:
‘a social process entailing responsibili
ties for the effective and economical plan-
ning and regulation of the operations of an
enterprise, in fulfillment of a given purpose
or task, such responsibility involving:
Judgments and decision in determin-
ing plans, and the development of data
procedures to assist control of perfor-
mance and progress against plans
The guidance, integration, motivation
and supervision of the personnel com-
posing the enterprise and carrying out
its operations.
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 Administrative Management
An administrator can also be a manager;
this occurs when the administrator is con-
cerned with implementing policy in dealings
with employees to whom responsibilities
have been delegated.
12 DEVELOPMENT OF ADMINISTRATIVE MANAGE-
MENT THOUGHTS
Henri Fayol (1841-1925)
Fayol was a qualified mining engineer
and managing director of a large French com-
pany. In 1918 he published General and In-
dustrial Management. Fayol attempted to
develop a science of administrative man-
agement and believed that there was a uni-
versal science of management applicable to
commerce, industry, politics, religion, war
or philanthropy. He was one of the first
practicing managers to draw up a list of
management principles.
Fayol emphasized the role of adminis-
trative management and concluded that all
activities that occur in business organizations
could be divided into six main groups:
1. Technical a production, manufacturing
2. Commercial& buying, selling, exchange
3. Financialaobtaining and using capital
4. Security6protection of property and
persons
5. Accountingabalance sheet, stocktak-
ing, statistics, costing
6. Managerialaplanning, organizing, com-
manding, coordinating, controlling
Fayol concluded that the six groups of
activities are interdependent and that it is
the role of management to ensure all six ac
STIKOM LSPR
2
tivities work smoothly to achieve the goals
of enterprise.
Fayol 14 Principles of Management
1. Division of labor. Work should be di-
vided to assist specialization.
2. Authority. Authority and responsibil-
ity should be equal.
3. Discipline. Discipline helps worker
develop obedience, diligence, energy
and respect.
4. Unity of command. No subordinate
should report to more than one supe-
rior.
5. Unity of direction. All operations with
the same objective should have one
manager and one plan.
6. Subordination of individual interest
to general interest. The interest of
one individual group should not take
precedence over the interest of the
enterprises as a whole.
7. Remuneration. Remuneration and
methods of payments should be fair.
8. Centralization. Managers must main-
tain final responsibility but should
delegate certain authority to subor-
dinates.
9. Scalar chain. A clear line of authority
or chain of command should extend
from the highest to the lowest level
of enterprise. This helps to ensure
an orderly flow of information and
supplements the principle of unity of
command.
10. Order.’ A place for everything and ev-
erything in its place’. Proper sched-
uling if work and timetables to com-
MGMT201, Business Administration
3 Administrative Management
plete work are important. This can
ensure materials are in the right place
at the right time.
11. Equity. Employees should be treated
with kindness and justice.
12. Stability of tenure of personnel. Man-
agement should work towards obtain-
ing long term commitments from staff.
Unnecessary turnover of staff is costly
and works against goal accomplish-
ment.
13. Initiative. Workers should be allowed
to conceive and execute plans on or-
der to develop their capacity to the
fullest and feel like and active part of
the organization.
14. Esprit de corps. Harmony and union
helps to build strength of an enter-
prise. IT is and extension of the prin-
ciple of unity of command, empha-
sizing the need for teamwork and the
importance of communication.
Max Weber (1864-1920)
Weber, a German sociologist formulated
ideas on the ideal management approach for
large organizations. He developed a set of
ideas about the structure of an organization
that define what we know as bureaucracy.
Weber’s Perspectives on Administrative
Management are:
A division of labor. In which authority
and responsibility are defined very
dearly and set out as official duties.
Hierarchy of authority. Office or posi-
tions are organized in hierarchy of au-
thority resulting in a chain of command
or the scalar principle.
MGMT201, Business Administration
Formal selection. All employees are
selected on the basis of technical
qualifications through formal exami-
nations or by education or training.
Career managers. Managers are pro-
fessionals who work for fixed salaries
and pursue careers within their respec-
tive fields. They are not owners of the
units they administer.
Formal rules. Administrators should be
subject to strict formal rules and other
controls regarding the conduct of their
official duties.
1.3 ELEMENTS OF MANAGEMENT
We have seen that the economic system
is a complex of activities and these must
form the background of management. The
goods and services consumers need must be
supplied and the means by which the can
purchase these must be provided.
Management’s role must therefore be
to promote this in the most efficient man-
ner, by combining factors of production and
dis¬tribution and directing the efforts of the
people concerned to the given purpose.
No matter what kind types of enterprise,
the progress of management is fundamen-
tally the same. Enterprise need plans, di-
rection and control and these will not func-
tion without effective organization.
According to Fayol, ‘to manage is to fore-
cast and to plan, to organize, to command,
to coordinate and to control’.
The elements of management are:
1. Planning—forecasting future circum-
stances and requirements, deciding
STIKOM LSPR
 Administrative Management 4

objectives, making long and short- among competing ends.

term plans, determining policies to be
followed and the standards to be set. Principles of planning:
2. Organizing— dividing work and allo- Based upon clearly define objectives
cating it among groups and persons Should consider factors in the envi-
and determining their responsibilities ronment, which will help the organi-
and relations and the extent of their zations in reaching its goal
delegation. Should consider the existing organi-
3. Directing— involved guiding and su- zation and provide control
pervising subordinates to work effec- Should be precise, practicable and
tively toward enterprise goals. simple to understand and operate
4. Controlling—involved checking to see Should be flexible
that plans have been carried out and
attending to any deviations.
Hierarchy of Planning
PLANNING
Planning is one of the four manageri- 1. Enterprise Goals
al functions, which is the most basic
of managerial functions.
Planning determines organization ob- 2. Purpose and Mission
jectives and purposes, so that every-
one understands what they have to
accomplish. 3. Objectives
Planning helps the organization to de-
fine its purposes and activities. It en-
ables performance standards to be set 4. Strategies
and results can therefore be compared
with the standards to be set and re-
sults can therefore be compared with 5. Plans
the standard to enable managers to
see how the organization is proceed-
ing towards its goals. 6. Policies
Planning must be flexible to deal with
a changing environment.
Planning is essential for the long-term 7. Procedures,
survival for any business enterprise as programs, budget, rules
it helps to determine the most profit-
able way to allocate limited resources
STIKOM LSPR MGMT201, Business Administration
5 Administrative Management

1. Goal - give a sense of direction for activity to achieve organization

the activities of an organization
2. Purpose & Mission —purpose is the
main rote society defines for a busi-
ness organization, whereas mission is
a narrower form of purpose, which is
unique to a particular organization
3. Objective - something that must be
achieved in order to carry out a mission
4. Strategies - are broad programs of
objectives; they are guide to how
resources are to be deployed to
achieve the objectives
5. Plans - a guide to enable consistency
of action in similar situation
6. Policies - rules and regulations that
need to be obeyed
7. Procedures, programs, budget - a set
of activities, financial statements

Level of Organization:

Shareholder

Board of
Directors Establish Objectives

Chief Executive Operate business in

(Managing Director) order to accomplish
objectives
Top Management

Senior Executive Coordinate activities

(Functional Heads) to attain objectives

Assistant to Assist Senior Execu-

Middle Management
Senior Executive tives and act as their
deputies

Put management’s plans

Supervisory Manage- Supervisor
into effective action,
ment
allocating individual
work and seeing that it
Workers
is accomplished

MGMT201, Business Administration STIKOM LSPR

 Administrative Management
ORGANIZING
Organizing is a process or an element
of management concerned with
change or growth of the structure.
Organizing involves determining and
noting activities needed to achieve the
objectives of the undertaking, group-
ing, assigning such groups of activities
to managers, ensuring effective dele-
gation of authority to enable activities
to be carried out and providing coordi-
nation of authority relationships.
Two parts of Organization:
Format: the official channel through
which information passes; a network
of communication when activities of
two or more people are consciously
coordinated toward given objectives.
Informal: small groups, working to-
gether, form ideas and attitudes.
DIRECTING
Directing entails ensuring employees
do the jobs allotted to them.
Direction is aided by delegation of
authority. Orders may be issued for-
mally or informally, and may be gen-
eral or specific.
The directing authority is a person or
a group of people, who represent the
owners and who bear final responsibil-
ity for the formulation of basic policy
and the direction of the enterprise.
Leadership
Leadership is a means of directing. A
leader’s actions are devoted to help-
STIKOM LSPR
6
ing a group to attain its objectives.
Leadership is the ability of manage-
ment to induce subordinates to work
towards group goals with confidence
and keenness.
Leadership also implies that the leader
accepts responsibility for the achieve-
ment of the group and it is therefore
essential for trust and cooperation from
both sides to be in evidence all time.
Types of Leadership:
1. The authoritarian leaders: get others
to do things by giving them little scope
to influence decisions. These leaders
use fear, threats, authority and per-
sonality to get their way.
2. The democratic leaders: seek to per-
suade and consider the feelings of
people and encourages their partici-
pation in decision making.
Coordination
Coordination and leadership are inti-
mately bound, as each affects the
other. One cannot achieve coordina-
tion without effective leadership;
together they ensure that all efforts
are channeled effectively towards the
right goal.
Coordination is the process whereby
the effort of a group is synchronized
so that the desired goal is obtained.
Ways of achieving coordination:
1. By direct contact
2. Must be commence at the earliest
stages of planning and policy making
MGMT201, Business Administration
7 Administrative Management

3. Must be a continuous process Material Equipment:

OHP slides or Power Point Presentation,
Class Notes, Related articles, Case Study,
CONTROLING Study Guide
Controlling is an element of manage-
rial tasks and involves the measure- References
ment and correction of the perfor- Jane Pegram, Handbook on How to Pass
mance of subordinates to make sure Business Administration, Second Level, Lon-
that the objectives of the enterprise don: The London Chamber of Commerce and
and the plans devised to attain them Industry Examination Board in association
are accomplished efficiently and eco- with Educational Resources Pte Ltd., 1999.
nomically. Robert C Appleby, BSc Econ, Modern
Controlling involves setting standards, Business Administration, Sixth Edition: Pit-
measuring performance against stan- man Publishing.
dards, feedback results and correct- A Mintorogo, MSc. Et Dra Sedarmayanti,
ing deviations from standards. Dasar-Dasar Pengetahuan Tentang Manaje-
men Perkantoran (Suatu Pengantar): Pener-
Principle of Effective Control: bit Ilham Jaya Bandung.
1. Controls must be set according to the
nature of the job to be performed.
2. Deviations should be reported imme-
diately
3. Control must conform to the patterns
of the organization.
4. Control should show exceptions at
selected points
5. Control should be flexible and eco-
nomical in operation
6. Control should be simple to under-
stand and should indicate corrective
action.

In-class Activities

Lecture Presentation, Open Discus-

sion, Group Discussion, Quiz and Home-
work Assignments

MGMT201, Business Administration STIKOM LSPR

 Office Management 8

STIKOM LSPR MGMT201, Business Administration

9 Office Management
Topic 2
Office Management
Topic Outline
2.1 Definition of Office Management
2.2 Responsibilities for Office Work
2.3 Duties of Administrative Staff
2.4 The Qualities and Skills required
2.5 The importance of the office as ad ad-
ministrative center
2.6 Planning and Organizing the Office
2.7 The Future of the office
2.8 The organization of administrative
work
2.9 How certain functions serve the whole
organizations
2.10 The importance of the administrative
functions in promoting a positive im-
age
2.11 The office as a resource center
Objectives:
After studying this chapter, you should
have a good understanding of the typical
duties of administrative staff, understand
the qualities and skills required and un-
derstand the importance of the office as
an administration centre for a company
or business. Moreover, you should also
have a good knowledge in the meaning
of Virtual Office, understand how certain
administrative functions serve the whole
MGMT201, Business Administration
organization and understand the impor-
tance of the administrative function in
promoting a positive image and demon-
strating efficiency to customers, clients
and others.
Lastly, after finishing this chapter you
should have a good understanding in the
functions of the office as a resource cen-
ter for business.
Lesson Details
2.1 Definition of Office Management
The Institute of Administrative Manage-
ment has defined office management as:
That branch of management which is
concerned with the services of obtaining,
recording, and analyzing information, of
planning, and of communicating, by means
of which the management of a business safe-
guards its assets, promotes its affairs, and
achieve its objectives.
The problems of the administrative man-
agers are even greater today as new tech-
nology is increasing rapidly; bringing rapid
change that involves people as well as work-
ing systems and newer machinery.
The word office can be said to comprise
the following functions:
Receiving informations sorting, dis-
STIKOM LSPR
 Office Management
tributing, filing, entering up and post-
ing;
Providing and arranging a rearranging
information in a certain manner for
management to act upon, also index-
ing and collating;
Communicatinga typing, duplicat-
ing, photocopying, telephoning, tele-
printing, mailing;
Control and protection of enterprise,
inspecting, checking and auditing.
2.2 Responsibilities for Office Work
The person in charge may vary widely.
He or she may be a secretary or an accoun-
tant; some departmental heads may be in
charge of their own clerical staffs.
There often is a central general office with
one person in charge, who is responsible for
the provision of clerical services throughout
the enterprise. Such a person must be a spe-
cialist in this field as it calls for special skills
and in particular, knowledge of alternative
techniques by which results may be obtained.
It also involves knowledge of the economical
use of office machines and the planning and
coordinating of office procedures.
2.3 Duties of Administrative Staff
Administrative staffs carry out a variety
of duties to support the efficient running of
an organization, enabling it to be run in such
a way that it is cost effective and retains its
customers.
The typical duties of administrative staff
in most offices include:
STIKOM LSPR
10
dealing with incoming and outgoing
mail
dealing with internal and external calls
storing and retrieving information
ensuring health and safety regulations
are followed
dealing with visitors
reprographics
documents reproductions
organizing an effective stock control
system
operating a petty cash system
dealing with the purchase of goods
and/or raw materials
filling customers’ or clients’ orders
paying bills
sending out invoices
arranging the appointment of staff
arranging formal/informal meetings
and conferences
The important aspects that administra-
tive staff should be aware of:
They are able to carry of their duties
with the minimum amount of instruc-
tion
They need to be aware of the com-
mon computer equipment and soft-
ware used in many organizations
They need to have a high level of in-
terpersonal skills
2.4 The Qualities and Skills Required
The most important skill that an admin-
istrator must posses is that of being a good
communicator. This is necessary for dealing
with superiors, colleagues, customers, cli-
MGMT201, Business Administration
11
ents and visitors to the organization.
Personal qualities that might be consid-
ered by most employers in looking for a new
recruit are the following:
Good communication skills
Tact or diplomacy
Punctuality
Appropriate appearance
Enthusiasm and pleasant disposition
Understanding
Loyalty to the organization
Discretion (carefulness and good judg-
ment)
Ability to recognize problems/alert-
ness
Accuracy
Good memory
Calmness
Helpfulness
Flexibility
2.5 The importance of the office as an admin-
istrative center
If the office staffs function effectively,
the organization will move forward and
improve its position. If one of the depart-
ments does not work effectively, the orga-
nization will not progress and profits will
decrease
Efficient office staff that deal with cus-
tomers, suppliers and outside agencies with
quick and accurate manners will improve an
organization image .
2.6 Planning and Organizing the Office
Basic organization principles must be
MGMT201, Business Administration
Office Management
applied, bearing in mind that the position
of the office in the hierarchy will vary with
the type of company.
The function of administrative work can
be organized in several ways depending on
the size of the company. Several case stud-
ies show that large organizations centralize
their office administration services. How-
ever, some companies use decentralized sys-
tem and some others use both, centralized
and decentralized.
2.7 The organization of administrative work
The administrative work in a corpora-
tion or in an organization can be organized
in three ways:
1. Centralized Administration Service
2. Decentralized Administration Service
3. Combination of centralized and decen-
tralized
Centralized Administration Service
Centralized Administration Service is a
condition in an organization where all the
administrative work and functions are all lo-
cated in one specialized unit. This adminis-
tration unit will have to provide administra-
tive support to the whole organization.
Advantages:
Staffs are specialized
It is easier to monitor the workflow
and costs.
ft is easier to have standard proce-
dures/rules.
High-quality equipment can be pur-
chased.
It uses less space that the sum of
STIKOM LSPR
 Office Management
smaller areas in many sections.
In some cases, a centralized filling
system is more efficient and effec-
tive.
Disadvantages:
Procedures that are ideal and good
for one section may not be suitable
for other sections.
The specialization on the skills may
lead to boredom due to the lack of
work variety.
Following standard procedures give
less opportunity for staff to exercise
their own judgment. This may lead
to boredom as well.
Decentralized Administration Service
Decentralized Administration Service is
a condition in an organization where every
.unit or department has its own administra-
tive function. Therefore, each unit or de-
partment will have to provide administra-
tive support itself.
Advantages:
Job can be done faster because each
unit has its own administrative sup-
port
Security and confidentiality of docu-
ments can be increased
More effective planning and control-
ling
Time saving
Disadvantages:
High cost because each unit or depart-
ment will have to own specific office
equipments and machinery
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12
Need more staff/worker
Difficult to control the work flow
Combination of Centralized and Decentralized
This system combines both centralized
and decentralized approaches. Each unit or
department in an organization will have its
own administrative support to handle spe-
cific job functions. However, there is also a
main administrative support for the whole
organization, which supports more’ general
and common job functions. The main ad-
ministrative support will coordinate, control
and organize the administrative support on
each unit or department.
2.8 The Future of the Office
Working from home (telecommuting)
The Henley Center for Forecasting in the
report ‘Tomorrow’s Workplace’ (prepared for
British Telecom, London, 1998) indicated that
by 1995 the number of home based workers
would rise to over four million (between 15
to 20 percent of the UK workforce). Most
increase was expected to come from non-
manufacturing activities and could include
designers, accountants, computer program-
mers and architects.
Advantages for Employers:
Reduction in office costs, for exam-
ple office space, furnishings and sec-
retarial services
Greater productivity, because of few-
er distractions. (Henley Center for
Forecasting estimated that a home
worker’s productivity increases by
between 30 and 100 percent).
MGMT201, Business Administration
13
Advantages for Employees:
Saving on travel and lunch expenses
Less stress from travel, thus it in-
creases the quality of life
Greater flexibility to fit work around
other home activities
Disadvantages:
Isolation of people at home and need
for interaction with colleagues
Lack of administrative support
2.9 Now certain functions in the office servo
the whole organization
The print room
The print room carries out functions re-
lated to photocopying and printing of docu-
ments. The print room may also be involved
in producing leaflets and brochures to be sent
to clients for advertising information or up-
coming events that are to take place.
Central Filing
If an organization uses a centralized fil-
ing system, then all files that are used com-
monly by people in that organization are
kept in a designated, centralized filing area.
Staff may borrow a certain file from central
filing.
Some organizations have been using a
computerized filing system which can be
accessed by all members of staff.
Reception Area
The reception area and the reception-
ists are the first point of contact for visitors
to an organization. It is important that visi-
MGMT201, Business Administration
Office Management
tors are given good impression as they en-
ter this area. The area should be pleasant
and the receptionist should be welcoming
and helpful.
The main types of work that are carried
out in the reception area are:
Greeting visitors
Establishing the reason for the visitor
calling
Contacting staff to deal with visitors
Making polite conversation if they are
kept waiting
Taking messages from visitors
Giving instructions to visitors as to
how to find certain sections
Contacting security staff to accompany
visitors to the section, if needed
Issuing security badges on arrival and
collecting them on departure
Ordering taxis for visitors and staff
Ensuring the security procedures
Keeping accurate records of visitors/
callers’ register
Dealing with local, national and inter-
national phone calls
Keeping the reception area clean and
tidy
Ensuring that sources of information
held in the reception area are current
and up to date
Filling business cards left by visitors/
callers
2.10 The importance of the administrative
function in promoting a positive image
A positive image of a company or an or-
ganization can be projected from several
STIKOM LSPR
 Office Management
aspects of administrative functions such as a
telephone call, initial response from recep-
tionist, written correspondence and overall
customer service to visitors, prospective
clients, suppliers and third party or outside
agencies.
Telephone Call: it is essential that all
calls are dealt with in a helpful man-
ner in order to ensure that the first
impressions of the organization are of
efficiency and helpfulness.
Initial Response: it is important that
this initial contact makes the visitors
feel that the staffs are helpful, in-
formed and efficient.
Written Correspondence: this may be
in reply to a communication which
has been written to the organization
or as a result of an enquiry. It may
also be in connection with a job ap-
plication. A positive image of an or-
ganization will be projected if corre-
spondence is dealt with quickly and
the facts contained are correct. All
communications should be checked
for accuracy of content and all ty-
pographical errors corrected before
mailing.
2.11 The Office as a Resource Center
Receiving and processing information
Information is received in an office in
various ways. It may e in the form of spoken
messages or by written communications ei-
ther transmitted by letter, fax, or e-mail.
Written communications can be paper based
or computerized.
STIKOM LSPR
14
A communication center
Office can also functions as a communi-
cation hub between staff, management and
customer. The communication form can be
existed in many ways, such as manually, elec,
tronically, written and spoken.
Answering internal and external enqui-
ries
Staff will frequently have to deal with
internal and external callers who are seek-
ing information. It is essential that the in-
formation which is given to callers is ac-
curate. It is also important that the staff
answer the telephone in the correct manner
in order that prospective customers/clients
feel confident that the organization is run
efficiently.
When using the telephone:
DO
Answer as quickly as possible
Have a message pad with pen /pencil
attached beside the telephone
Speak directly into the mouthpiece in
a pleasant manner
Answer correctly internal number and
name
Assure callers they have not been for-
gotten if they have to wait
Take messages correctly and repeat
details especially numbers and figures
Exercise good manners, use tact and
discretion
MGMT201, Business Administration
15
DON’T
Be unhelpful
Use slang
Shout to others in room without cov-
ering the mouthpiece
Lose your temper
Sound hurried or impatient
Sound abrupt or rude
Ask the name of who is calling before
saying the person required is not avail-
able
Keeping records and other information
Records and other information are stored
either in a centralized area or in a section
office. Information and records widely used
by almost everybody in the company are
stored in a central area. However, confi-
dential information and records are stored
in specific designated filling area.
Making appointments
There are certain things that need to be
considered when making appointments, such
as:
1. Look carefully at the layout of the
appointment book and the informa-
tion which needs to be entered.
2. Enter the information in chronologi-
cal order
3. Check the time format (e.g.: 3:00
PM, 15..013)
4. Enter the details legibly.
Supporting Management
Management is generally supported by
MGMT201, Business Administration
Office Management
administrative staff in dealing with tele-
phone calls and visitors, incoming and
outgoing mails, appointment scheduling,
preparing presentation material, reports,
letters, invitations, etc.
All functions which are carried out in an
office support management in some way,
either directly or indirectly. Administrative
functions performed by staff can also af-
fect the image of an organization from the
customer’s point of view.
In-class Activities
Lecture Presentation, Open Discus-
sion, Group Discussion, Quiz and Home-
work Assignments
Material Equipment:
OHP slides or Power Point Presentation,
Class Notes, Related articles, Case Study,
Study Guide
References
Jane Pegram, Handbook on How to Pass
Business Administration, Second Level, Lon-
don: The London Chamber of Commerce and
Industry Examination Board in association
with Educational Resources Pte Ltd., 1999.
Robert C Appleby, BSc Econ, Modern
Business Administration, Sixth Edition: Pit-
man Publishing.
A Mintorogo, MSc. Et Dra Sedarmayanti,
Dasar-Dasar Pengetahuan Tentang Manajemen
Perkantoran (Suatu Pengantar): Penerbit
Ilham Jaya Bandung.
STIKOM LSPR
 Office Machinery and Equipment 16

STIKOM LSPR MGMT201, Business Administration

17
Topic 3
Office Machinery and Equipment
Topic Outline
3.1 Media of Office Communication
Written Communication
Oral Communication
Telecommunication
Other office services
Document Reproduction
3.2 Office Information System
Advantage of Office Automation
3.3 Conferencing Systems
3.4 Other communication systems
Objectives:
It is the aim of the lesson to introduce
students about the equipments, machin-
eries and technologies widely used in
many business organizations. Giving un-
derstanding on each type of communica-
tion media and why a certain media is
used for a specific activity.
Lesson Details
3.1. Media of office communications
Office services comprise specialized activi-
ties, for example communication, filing, mail-
ing and duplicating, which can be usually mist
effectively administered when centralized.
Selecting the means of office communi-
cation needs careful attention to the follow
MGMT201, Business Administration
Office Machinery and Equipment
ing factors:
Speed and Cost - Will the extra cost
for greater speed of delivery warrant
the use of a particular medium? Does
the frequency of using the medium
influence the cost?
Secrecy - Is this essential?
Responsibility
Error
A simple start to the problem of effec-
tive communications is to decide first which
communications must be in writing and
which may be orally transmitted both within
and without an organization.
Written Communication
Internal Written Communication: is a
written communication used between offices
or departments or between employees and
managements.
External Written Communication: is a
written communication used between a com-
pany or an organization and customers, sup-
pliers, outside agencies and public.
Type of written communication:
Text produced by typewriter, word pro-
cessor, electronic mail, telex, and facsimile
Oral Communication
Telephone
Most office systems require the use of
STIKOM LSPR
 Office Machinery and Equipment
switchboard, so that several incoming and
outgoing calls may be handled simultaneously.
Answering machines are connected to the
telephone and will answer the call and record
any dictated messages. These are recorded
on magnetic tap and can be played back later
by the person interested.
Staff Location or Paging Systems
Loudspeakers; messages are relayed
over all premises at once.
Bells and buzzers
Radio Paging.
Mobile Phone
Telecommunication
The use of telephone line to connect a
remote terminal to a central computer has
lead to a number of important developments
such as:
A single-high powered computer serv-
ing an entire national or multinational
company
A service bureau serving clients spread
over a wide area
Computerized airline and hotel reser-
vation systems
The use of space satellite to transmit
data overseas
The use of Internet technology to con-
duct business without time and loca-
tion barrier. Enable businesses to con-
duct business activities via online such
as electronic commerce (e-commerce)
Other office services
Filing
Filing is a collection of data, records,
STIKOM LSPR
18
letters, paperwork, and documenta-
tions that are organized and classified
to support business activities.
The main methods of classification are
alphabetical, numerical, geographical,
by subject, chronological or combina-
tion of these.
The essentials of a good filing systems
comprise:
1. Cost effective;
2. Simplicity and accessibility - simple
to understand and operate;
3. Compactness and safety - it should
take a minimum space and impor-
tant documents given special pro-
tection;
4. The system should be capable of
easy expansion and records should
be readily available;
5. Filing should be kept up to date,
cross-reference being used where
necessary and the most appropriate
system of classification used.
Mailing
Mail Room Equipment: automatic let-
ter opener, franking machines, ad-
dressing machines, sorting equipment,
folding and inserting equipment, and
weighing equipment
Methods of transmitting mail:
Fast delivery: electronic mail, pri-
ority services, first class mail
Secure and confidential delivery:
registered post
Courier services: for delivery of
goods locally, nationally and inter-
nationally in 24 hours and 7 days a
MGMT201, Business Administration
19
week. The cost will depend on the
size and weight of the items to be
delivered and the distance they
have to be taken. Courier services
usually offers insurance cover for the
goods they are transporting
Parcel Services
Freight Services: for delivery of
large, bulky items which are not
suitable for transportation any oth-
er way, for example machine parts,
cars or pieces of machinery.
Document Reproduction
o Very important service in business or
ganization in duplicating documents
o How to choose the proper equipment:
The suitability of the type of copier;
Cost;
Speed;
Ease of operation;
Servicing facilities and durability
o Proper supervision in the usage of
equipment is essential
3.2 Office Information System
Information about an organization can be
kept very conveniently in computer systems
which can give access to data immediately.
Some organizations are now using modern
technological developments.
The purposes of having technological
developments are to:
o Provide information;
o Provide accurate data, when it is re-
quired;
o Help to do jobs more efficiently;
MGMT201, Business Administration
Office Machinery and Equipment
o Allow a wider range of tasks to be
performed;
o Present data in a more understandable
way, for example graphics/color.
Advantages of Office Information System:
o Reduction in cost of staff and equip-
ment
o Greater volume of total work com-
pleted
o Increase in availability and accuracy
of information
o Quicker data update
o Long distance communication is more
efficient
o Access to data available from many
locations, for example from home,
office
o More time available for main area of
work individual ( less time on com-
municating, filing and retrieving)
3.3 Conferencing Systems
Sometimes traveling is required in busi-
ness activities. However, the cost of person-
nel traveling to meet business colleagues,
clients, and prospective clients is very high.
With the advance technology, conferencing
via telephone or video can substitute the
out of town or even overseas meeting.
The types of conferencing are the fol-
lowing:
o Teleconference: uses telephone line
in conducting meeting in the differ-
ent places. Even though this method
leaves no opportunity to exchange
written communications of details dur-
STIKOM LSPR
 Office Machinery and Equipment
ing conference, it offers some per-
sonal contact.
o Video-conferencing: uses continuous
television pictures and sound of par-
ticipants and can also show docu-
ments.
o Conferences using computer system’s
power of processing. Members have
a terminal screen of text/data which
can be amended and discussed.
3.4 Other Communication Systems
o Private Branch Exchange (PBX): can
be used as a data terminal whereby
data can be collected and enquiries
made to a central computer.
o Viewdata Systems: are linked to a
computer terminal and information
can be displayed on a modified tele-
vision receiver, in the same form as a
conventional visual display unit (VDU)
o Voice Recognition Systems: a system
that may eventually replace the key-
board as the main human interface
with the office
o Voice synthesis facilities: is a system
that is used in several banks, which
enables a customer, via a touch-tone
telephone, to key in a request for the
cash balance position to date and a
voice-synthesized answer is given.
o Central Facilities: such as high-speed
printing for large volumes of data,
central storage and retrieval facili-
ties, central microfilm and microfiche
preparation equipment.
o Mini computer: is the term used for
STIKOM LSPR
20
a smaller version of a “mainframe”
larger machine, which can be installed
easily in normal office equipment.
o Videophone: is a combination of au-
dio and visual. It allows a person to
see the other person on the other line
while making a telephone call.
o CD-ROM (Compact Disk-Read Only
Memory): is an optical disk to store
large amount of data instead the use
of floppy disk or tape.
In-class Activities
Lecture Presentation, Open Discus-
sion, Group Discussion, Quiz and Home-
work Assignments
Material Equipment:
OHP slides or Power Point Presentation,
Class Notes, Related articles, Case Study,
Study Guide
References
Jane Pegram, Handbook on How to Pass
Business Administration, Second Level, Lon-
don: The London Chamber of Commerce and
Industry Examination Board in association
with Educational Resources Pte Ltd., 1999
Robert C Appleby, BSc Econ, Modern
Business Administration, Sixth Edition: Pit-
man Publishing.
MGMT201, Business Administration
21
Topic 4
Work Environtment and Controls
Topic Outline
4.1 Safe and Tidy Working Environment
4.2 The need for security in the business
environment
4.3 Basic Requirements of Working Areas
4.4 Emergency Procedure and Accident
Reporting
4.5 Office Controls and Standards
4.6 Methods of Office Controls and Moni-
toring to maintain standards
4.7 Reporting Variances when standards
are not achieved
Objectives:
After studying this chapter students
should be able to:
Explain why safe and tidy working
environment is important;
Explain why security in business en-
vironment is very critical;
Mention the basic requirements of
working areas;
Explain the need for emergency pro-
cedures;
Explain the needs of office controls
and standards;
Describe simple methods of office
control and monitoring;
Describe how to report variances
when standards are not achieved.
MGMT201, Business Administration
Work Environtment and Controls
Lesson Details
4.1 Safe and Tidy Working Environment
In order for employees and management
to perform effectively and productively, an
office, as a working environment has to be
created and conditioned somehow so that
it becomes a safe and comfortable place to
work. A safe and comfortable working envi-
ronment will lead to more productive work
force, thus enhance in the company perfor-
mance.
However, the safe condition of a work-
ing place is truly responsibilities of both
employer and employees.
Employers Responsibilities:
o Ensure the health and safety and
welfare at work of their employee
o Prepare and update a written state-
ment on the health and safety policy
of the company
o Allow safety representatives to be
appointed who have been selected
by a recognized trade union
Employees Responsibilities:
o Take reasonable care of the health
and safety themselves and others who
could be affected
o Co-operate with their employer on
health and safety manners.
STIKOM LSPR
 Work Environtment and Controls
4.2 The need for security in the business en-
vironment
In a large organization, there are many
people involved in its daily business activi-
ties. They include employees, temporary
employees, visitors, and clients. The more
people work or visit a company, the greater
the need for security the business environ-
ment.
Therefore security is highly critical and
important in any business environment in
order that:
1. Employees’ belongings are not stolen
or damaged. Employer should pro-
vide employees safe and lockable
cabinets to store their belonging dur-
ing working hours.
2. Equipment is not stolen or damaged.
Employer should mark equipment with
a security pen and should keep equip-
ment in a locked room with limited
access.
3. Confidential information does not be-
come public knowledge.
4.3 The basic requirement of working areas
1. Furniture, fittings and decor
o Comfortable desk and chair
o Cabinet/storage with lock is available
o Waste bin is available.
o Decor: wall should be painted in rest-
fu color to aid concentration
2. Space
o Work station for staff that use com-
puters must have sufficient space and
STIKOM LSPR
22
be designed in such a way that the
user can change position and vary
movements
3. Design
Traditional Offices: is a conventional
design of common office with rooms, doors
and windows.
Advantages of traditional office:
o Secure
o Private
o Allow better concentration
Disadvantages of traditional office:
o It used to be a status symbol
o Expensive to make and rent
o Need to install security devices
Open Plan Office: is an office that is
partitioned, separated by cubicle or furni-
ture such as book shelves or cabinet.
Advantages of open plan office:
o Staff/ employees can be seen
o Able to communicate easily
o Able to share equipment
o Less expensive decoration
o Effective use of space
o Flexibility in rearranging office layout
Disadvantages of open plan office:
o Voice distraction/noisy
o Less security of confidential material
o Less security of personal belongings
o Less privacy for confidential matters
Landscape Office: is an office that is
MGMT201, Business Administration
23
decorated with plants, small fountains, fish
pond, etc to create a fresh, nature surround-
ings working environment.
Advantages of landscape office:
o Comfortable
o Relaxing environment to work
o Eliminate noise level
o Increase productivity
Disadvantages of landscape office:
o Expensive to create and maintain
o Need special interior designer
4. Privacy
Traditional office have more privacy
than other office designs as the door can be
closed and confidential matters can be dis-
cussed without the concern of being over-
heard.
However, certain positions in an organi-
zation that needs a great deal of privacy for
example human resources manager, account-
ing manager, finance manager or other higher
managerial positions are provided with tra-
ditional office. Other position that require
team work and sharing equipment are pro-
vided with open plan office.
5. Light, heat, ventilation, comfort and
welfare
o Light: good lighting is necessary to
avoid eyestrain and headaches. The
types of lighting have to be chosen
wisely according to the nature of
work.
o Heat: office temperature should be
comfortable for everybody and is eas-
MGMT201, Business Administration
Work Environtment and Controls
ily adjustable according to the out-
side temperature.
o Ventilation: offices should have ad-
equate ventilation (air conditioning,
exhaust fan) for better air circula-
tion.
o Comfort: working environment should
be made comfortably for employee to
increase productivity and efficiency.
o Welfare
4.4 Emergency Procedure and Accident Re-
porting
Emergency Procedures
Emergency condition: is a condition
when there is a sick person, accident, fire,
bomb threat, an attack from visitor, theft
of money.
Emergency Procedure: is a set of proce-
dure manuals which tells employee the steps
to be taken or the actions should be done if
such emergency arises. The content of this
manual must remain confidential.
Accident Reporting
All organizations must keep an accident
book in which details of any accidents sus-
tained on the premises by either an em-
ployee or a visitor are recorded.
It is important to record details of all
injuries as failure to do this could affect any
state benefits claimed by the injured per-
son at a later date.
The information needed in the accident
report are the following:
Full Name
Address
STIKOM LSPR
 Work Environtment and Controls
Date of birth
Position held in the company ( if an
employee)
Date and time of accident
Details of injury/accident
Activity being carried out at the time
accident occurred
Place of injury or accident
First aid treatment given (if any) and
by whom
Was the injured person taken to hos-
pital?
Name and address of the hospital
Names and designations of witnesses
to the accident
Signature of the person reporting the
accident
4.5 Office Controls and Standards
1. Stock Records and Monitoring
The types of stock which will be dealt
with by staff working in offices are:
office consumables (paper, printer
cartridges, pens, etc) and small items
of office equipment (waste-paper
bins, stapler, white board, etc)
Stock control is needed because:
o Economical reason/cost
o Space for storage costs money
o Sufficient stock must be kept oth-
erwise delays may occur while
emergency stocks are bought
o Poor stock control encourages pil-
fering
o For audit purposes
o For budgeting purposes
STIKOM LSPR
24
2. Petty Cash Control
Petty cash is a small amount of cash
that is handled by a secretary or ac-
counting staff used for paying daily,
small expenses and for employee cash
reimbursement.
3. Office Coverage for absence and leave
When members of staff are deciding to
take their leave it is important that they
cooperate with each other to ensure
the smooth running of the organization.
4. Limiting Usage of Equipment to control
cost
Controlling cost is very important in
order to meet budget successfully.
Equipments that need to be controlled
in the usage are:
o Photocopy machine
o Fax machine
o Computers - with internet access
o Printers
o Telephones - international calls and
long distance calls are limited; use
operator assistance, self discon-
nected after several minutes of use.
4.6 Methods of Office Controls and Monitor-
ing to maintain standards
1. Procedure Manuals
Procedures: are a set of rules or step
by step actions that are designed to
aid the smooth running of a company.
What makes a good procedure:
o Easy to follow
o Step by step guide
MGMT201, Business Administration
25
o Uses simple language
o Includes sufficient information
o Includes specific action
o Include steps on how to handle
problems, if occurred
2. Quality Check (QC)
Quality Check: is an activity that man-
agers or supervisors must do to ensure
that all the workers/staff are doing
their jobs in satisfactory manners.
Why Quality Check is important:
o Avoiding work redone - time and re-
sources consuming, cause delay in
delivery of order.
3. Office Audit
Office Audit: is an activity to review
procedures and regulations in an or-
ganization.
The audit may look at:
o Health and Safety procedures
o Procedures manuals for equipment
o Training course for staff
4. Stock Control
5. Petty Cash Control
6. Booking Forms
Booking forms are used in many orga-
nization in booking rooms and facili-
ties for meetings.
The information needed on the book-
ing forms are the following:
o Date and time the room is needed
o Equipment needed
o The number of people expected to
MGMT201, Business Administration
Work Environtment and Controls
attend meeting
o Name of person booking the room
o Name of person/group who is to use
the room
4.1 Reporting Variances when standards
are not achieved
Standards may not be achieved al-
though clear procedures are in place.
Therefore, variances need to be re-
ported when they occur.
Existing procedures will be reviewed
and amendments or additional proce-
dures considered
Staff responsible will be interviewed
and perhaps further training will be
given.
In-class Activities
Lecture Presentation, Open Discus-
sion, Group Discussion, Quiz and Home-
work Assignments
Material Equipment
OHP slides or Power Point Presentation,
Class Notes, Related articles, Case Study,
Study Guide
References
Jane Pegram, Handbook on How to Pass
Business Administration, Second Level, Lon-
don: The London Chamber of Commerce and
Industry Examination Board in association
with Educational Resources Pte Ltd., 1999
Robert C Appleby, BSc Econ, Modern
Business Administration, Sixth Edition: Pit-
man Publishing
STIKOM LSPR
 Procedures and Information 26

STIKOM LSPR MGMT201, Business Administration

27 Procedures and Information

Topic 5
Procedures and Information

Topic Outline Lastly, after studying this topic stu-

dents should have an understanding that
5.1 The need for procedures and standards
information in a business organization
in a business organization
are not all open for everybody, as some
5.2 The types of information dealt with
in-formation are very confidential and
in an office
have to be kept in a secure place.
5.3 The need for efficient means of stor-
age and retrieval of information
5.4 Methods, systems and procedures for
Lesson Details
storage and retrieval of information
5.1 The need for procedures and standards
5.5 Methods of indexing and classifying of
in a business organization
information
5.6 Confidentiality and security
Turn Around Times
5.7 Distribution and routing of information
o The turn around times for various
5.8 Why information and documents
situations are often made public and
need to be kept for a period of time
customers and clients are aware of
these deadlines
Objectives:
o Circumstances are usually divided-
After completing this lesson, students
into urgent and routine, and differ-
should have a clear understanding why
ent procedures are in place to deal
procedures and standards are very impor-
with both.
tant in a business organization. Students
o Staff must be able to prioritize tasks
should know how to report and track work
or work to be completed and deal
in progress, describe the types of infor-
with the urgent tasks before the
mation dealt with in an office and explain
routine tasks
how information can be presented using
standard business documentation.
Reporting and Tracking Work in
Further, students should also have
Progress
knowledge in the methods, systems and
o It is to make sure that appropriate
procedures used for storage and retrieval
progress is being made within the
of information.
time period of completion.

MGMT201, Business Administration STIKOM LSPR

 Procedures and Information 28

o Breaking down large jobs into sever- Order Form does not include informa-
al small jobs and set target for each tion such as Value Added Tax (VAT),
part. discounts, delivery charges, total
o Experienced staff may need less price. Those items will be entitled in
tracking than inexperience staff invoice.
o How to track work progress: o Request: is information needed by a
Observation of amount of work customer before they place an order,
or work load for example: estimation for car repair
Staff can be questioned infor-
mally as to how their work is pro- Presentation of Information
gressing o Delivery Note
Completed quality control forms Delivery Note shows the list of
Breaking down tasks product/products ordered by a cli-
ent and product/products ordered
5.2 The types of information dealt with in an that are out of stock.
office Delivery Note does not show price
quotation.
Customer details, requirements, que- o Invoice
ries, orders and request Information entitled on invoice:
o Customer details: information about Name, Address of client
a customer/client such as name, ad- Order number
dress, contact number, facsimile num- Invoice Date
ber, e-mail. Invoice Number
o Requirements: information needed by Dispatch Date
staff in dealing with customers, such Product description
as organization chart, company pro- Quantity of product
file, list of product and services, etc. Product code
o Queries: is a result from sales visit Unit Price
or telephone contact by sales staff Total price
to prospective clients/future clients; Value Added Tax (VAT)
information needed from prospective Discount (if any)
clients usually regarding goods/ser- Delivery charges
vices provided by a company. Sub total
o Order Form: is a form consists of the Total amount
detail of client’s order such as full de-
scription of the product/services be- 5.3 The need for efficient means of storage
ing ordered, reference number, quan- and retrieval of information
tity/amount of products, price per unit Information need to be stored effi-

STIKOM LSPR MGMT201, Business Administration

29
ciently and safely:
o Information can be retrieved quickly
when needed
o Queries/questions from clients can
be answered quickly using accurate
information
o Save time in searching for infor-
mation
o An efficient image of the company
is presented to the customers/cli-
ents
5.4 Methods, systems and procedures for
storage and retrieval of information
The types of information which are kept
in most offices are:
o Trade journals
o Advertising material
o Staff handbooks
o Company Profile
o Company Manual
o Telephone directory
o Files relating to work progress.
o Important, old files
o Reference books
o Plans, drawings, blue prints, photo-
graphs
Methods for storing information
1. Manual Method: information that are
stored and kept without using any electronic
devices and is done by human
o Types: vertical, lateral and rotary fil-
ing
o Advantages: easy to use, can be read
right away, can be photocopied im-
mediately, cheaper equipment.
MGMT201, Business Administration
Procedures and Information
o Disadvantages: space consuming, pa-
per file may deteriorate due to hu-
midity and fire, there is only one
copy for each file, difficult to locate
if stored in the wrong place, time
consuming.
2. Computerized Method
Database: to record names, addresses
of clients/employees, detail of Orders,
contact person, etc.
Spreadsheet: to store details relating to
accounts and numbers, such as em-
ployees ‘salary, income statement,
balance sheet, etc.
Word Processor: to create office docu-
ments/paper work such as letters,
memos, proposals, etc.
Information prepared on a computer
system can be stored on a diskette,
CD-ROM, flash card, memory stick or
hard drive.
Scanners are often used to input origi-
nals of documents into computerized
filing systems.
Password on each desktop computer
is extremely needed to ensure confi-
dentiality.
Automatic back up system is needed
due to file corruption, computer vi-
rus and physical damage of the com-
puter.
Advantages: space saving, easy to
edit material or to update, if comput-
ers are networked then alt members
of staff have access to information, if
files are correctly stored they are easy
to locate.
Disadvantages: equipment is expen-
STIKOM LSPR
 Procedures and Information
sive, need computer training for staff,
disks can be corrupted by viruses,
vi¬rus scan program need to be pur-
chased and installed regularly, files
are difficult to locate if they are not
named properly, files are difficult to
retrieve when there are power outage,
and there may be a delay in printing
out information.
3. Microfiche System
Microfiche is a method of storing in-
formation using a form a microfilming.
It is widely used in storing old medi-
cal records in hospitals.
Some computer systems can print mi-
crofiche and it is called COM (Com-
puter Output on Microfiche)
Advantages: less space in storing, no
need to retain paper copies, save cost
on storage equipment, can always
make back up copies, cheaper to mail
than the original documents.
Disadvantages: expensive equipment,
the quality of microfilm deteriorates
over time, need careful labeling, in-
dexing and storing so that they are
easy to locate.
5.5 Methods of indexing and classifying of
information
Alphabetical
The most popular system.
Rules for filing alphabetically: names
of people, names of organizations
Advantages: easy to follow, easy to
develop.
STIKOM LSPR
30
Disadvantages: letters such as X and Z
causing uneven spread of files, many
common names make locating a spe-
cific files time consuming.
Numerical
Each file is allocated a number and
the files are placed in numerical or-
der from lowest number to highest
number.
This system is widely used in banks,
hospitals and insurance companies
where every customer has a specific
and unique number.
Advantages: can easily be extended,
easy to understand and follow
Disadvantages: more time consuming
than alphabetical, if numbers are in
correct, the files are very difficult to
locate.
Geographical
Information is stored using city, prov-
ince, state, counties as the filing point
The areas are file in alphabetical or-
der.
This system is often used in sales de-
partments and travel agencies.
Advantages: information specific to a
particular area is easily found, sales
representatives can easily locate in-
formation concerning firms based in a
particular area.
Disadvantages: requires knowledge
of geography, only appropriate and
applicable to certain organizations
or departments within organiza-
tions.
MGMT201, Business Administration
31
Chronological (Date/Time)
This system is rarely used on its own.
Information is stored based on the date
or time the file is created.
By subject
Information or material is stored by
subject or course title.
The subject is filed in an alphabetical
manner.
By originator
Information originated by various
members of staff may be filed sepa-
rately.
The files will be ordered alphabeti-
cally using the first name or last name
of the staff as the filing point.
5.6 Confidentiality and security
Computer Security
o Computer password must be kept con-
fidential, changed frequently remem-
bered not written down
o Each user should have his/her own ID
or Log in name
o Position monitor so that screen cannot
be read by visitors/people pass by
o Never leave confidential material ly-
ing around
o Scanning of disk to prevent from com-
puter virus
o Always keep back up files or a hard
copy
Security of Documents
o Filing cabinets should be kept locked
MGMT201, Business Administration
Procedures and Information
o Information/files should be released
only to authorized members of staff
o Confidential information being sent by
mail externally or internally should al-
ways be put in a sealed envelope and
marked ‘Private and Confidential’
o Confidential documents should be
shredded or destroyed when they are
no longer needed
Type of information should be kept
confidential and secure:
o Personnel Records: data or records
about employee such as personal in-
formation, previous employment, pre-
vious criminal record, health record,
result of test, salary information, per-
formance evaluation.
o Financial Information: financial de-
tails concerning employee salary, finan-
cial status of an organization, income
statement, balance sheet.
o Product/Service Information: infor-
mation about new product or service
de-velopment, information concerning
complaints received about a certain
product or services.
Customer Details: information relat-
ing to delivery times, dates and place,
amount of order placed, amount of
financial responsibilities, etc.
5.7 Distribution and routing of information
There is some information which
every member of staff needs to be
aware of and informed such as salary
adjustment/rise, alteration to condi-
STIKOM LSPR
 Procedures and Information
tions of employment, company event,
new rules/regulation, etc
Various methods which can be used
for distributing information through an
organization are the following :
o Information can be photocopied and
distributed to all staff using internal
mail system
o Bulky/big documents can be circu-
lated to staff along with circulation
slip containing the. names of staff
who should read the document.
o Posters can be prepared and dis-
played on bulletin/notice board in
all offices
o Memo can be distributed to all staff
through internal mail system
o Electronic mail memo can be sent
to all staff if they are connected to
electronic mail
o Meetings of senior staff
o Meetings for all member of staff
o Information sheet can be distributed
through paycheck slip
o Company newsletter/internal mag-
azine/bulletin
5.8 Why information and documents need to
be kept for a period of time
Information and documents in an or-
ganization must be retained for a cer-
tain period of time in case they are
needed.
One reason for keeping documents or
information is for reference purposes,
in case there is a dispute about what
was agreed between various parties.
STIKOM LSPR
32
The length of time for keeping docu-
ments/information varied among or-
ganizations.
Statistical information has to be re-
tained to produce end-of -year result
and annual profits comparison.
Some important document such as land
registry and other historical informa-
tion must be retained indefinitely.
Medical records are retained for some
period of time and transfer into mi-
crofiche records or digital file.
In-class Activities
Lecture Presentation, Open Discus-
sion, Group Discussion, Quiz and Home-
work Assignments
Material Equipment:
OHP slides or Power Point Presentation,
Class Notes, Related articles, Case Study,
Study Guide
References
Jane Pegram, Handbook on How to Pass
Business Administration, Second Level, Lon-
don: The London Chamber of Commerce and
Industry Examination Board in association
with Educational Resources Pte Ltd., 1999
Robert C Appleby, BSc Econ, Modern
Business Administration, Sixth Edition: Pit-
man Publishing.
MGMT201, Business Administration
33 Communication, Personal Effectiveness and Supporting Others

Topic 5
Communication, Personal Effectiveness
and Supporting Others
Topic Outline
will also have knowledge in the use of
flowcharts, planning aids and other types
6.1 Choosing the right method of com-
of charts.
munication
Further, student should also under-
6.2 Setting up meetings and conferences
stand the importance of working to dead-
6.3 Booking appointments, the use of
lines, meeting targets, effective team-
manual and electronic diaries, and the
work and support for others.
need for good diary management
Lastly, students should understand that
6.4 Simple written communications includ-
it is important to get things right the first
ing messages, short letters and memos
time, to follow instructions carefully, to
6.5 Simple Forms
work with great accuracy and recognize
6.6 The use of flow charts, planning aids,
the need for appraisal and performance
movements charts and the office di-
monitoring.
ary to aid communications
6.7 The importance of working to dead-
lines and meeting targets and effec-
Lesson Details
tive teamwork and support for others
6.1 Choosing the right method of communi-
6.8 Getting it right first time
cation
6.9 Following instructions and taking cor-
rective action; the need for appraisal
Most people have a choice of methods
and performance monitoring
to use for the transmission of information:
traditional postage and using telecommuni-
Objectives:
cation system.
The last material in this course high-
lights more to the methods of communi-
The choice of the most appropriate
cation used in daily business activities.
method will depend upon:
The types of communication can be writ-
The urgency of the message
ten or spoken communication. After com-
The size and presentation of the doc-
pleting this chapter, student should have
ument
a basic knowledge on how to write mes-
Whether the recipient needs the
sages, short letters and memos. Students
original document

MGMT201, Business Administration STIKOM LSPR

 Communication, Personal Effectiveness and Supporting Others
Whether or not the communication is
confidential
Whether the contents of the message
need to be discussed
Whether a hardcopy is needed
Whether an enclosure such as a check
is to accompany the information
Amount of people are to receive the
message
Comparison of the cost
1. Traditional Postage method
Traditional postage method is a method
of transmitting communication using mail and
courier services.
2. Using telecommunication system
Communication is delivered using tele-
communication devices. The types of com-
munications are:
Electronic Mail:
E-mail is a system which allows infor-
mation prepared on a computer ter-
minal to be sent to another computer
terminal via telecommunication sys-
tem.
The messages can be typed in or
scanned in and sent via an electronic
mail server. The messages are stored
in the recipient’s mailbox until they
are accessed
The system can be used for internal
and external messaging as long as the
recipient has a compatible system in-
stalled.
The user can store or delete messages,
print out messages in order to have a
STIKOM LSPR
34
hard copy, reply to messages, forward
messages, and check whether mes-
sages sent have been accessed by the
recipient.
Advantages: fast, cheap/free, less
paper can be sent to multiple receiv-
ers, can be accessed anywhere, any-
time, all types of information can be
sent: graphics, pictures, etc.
Disadvantages: must have e-mail sys-
tem installed, need specialized train-
ing in using e-mail application, some-
how it appears as impersonal as they
have no signature
Fax
Advantages: fast, written record is
available, cheap, fax messages can be
sent from computers using for example
WinFax application.
Disadvantages: need fax equipment
to receive fax message, security and
confidentiality issues, uncertainty in
faxed documents legal status, need to
confirm the delivery of the message by
calling the recipient.
Telex
Telex machine allow message to be
sent using the telecommunication net-
work
The main difference between fax and
telex is that when a message has been
transmitted by telex, the code of both
sender and recipient is printed at the
top of the telexed document. At the
end of the message there is proof that
the transmission was both made and
MGMT201, Business Administration
35 Communication, Personal Effectiveness and Supporting Others
received.
In most countries, telexed documents
are accepted as a legal document
whereas fax messages may not be.
Reason for the decline in the use of
telex machine is that message can
now be prepared on a computer and
downloaded directly to the recipient’s
computer via the Internet.
Mail and Courier Services
Although nowadays the use of electronic
systems for transmitting information is widely
used, the option to use mail and courier ser-
vices for sending information is still com-
mon.
Advantages of mail and courier services:
Paper copies are received
Confidential information is more se-
cure
Confidential information can be de-
livered into the hands of the ad-
dressee
Can get confirmation
Can insure the content of the pack-
age
Originals of documents are received
Disadvantages of mail and courier ser-
vices:
Time consuming in preparing the ma-
terials to be sent
Expense for stationery
Mail has to be taken to the post of-
fice
Slow, compared to electronic trans-
mission
Expensive, if the document is bulky
MGMT201, Business Administration
Possibility that documents might be
lost or delivered to the wrong address.
Meetings and Briefing
Meetings are held to exchange ideas,
discuss information, take decisions on
policies or procedures and impart in-
formation from staff.
Briefings take place when staffs need
to be informed of new policies/pro-
cedures, also held during a project
development to inform work progress.
In briefing the discussion is limited.
Advantages:
o Communicating face to face
o Give opportunities to use persua-
sive approach
o Give opportunities to ask questions
o Give opportunities for discussion
Disadvantages:
o Outspoken people may disrupt the
meeting
o People may use the forum of the
meeting to introduce items which
were not on the agenda.
o Can costly if meeting requires trav-
eling and refreshments
6.2 Setting up meetings and conferences
Meetings
Types of meetings:
o Formal—board meetings or
shareholder’s meetings
o Informal—staff meeting
o Committee—attended by members
of clubs and societies
o Annual General Meeting (AGM)—an-
STIKOM LSPR
 Communication, Personal Effectiveness and Supporting Others
nual meeting of committee mem-
bers when committee officers,
chairman, treasurer and secretary
are elected
o Extraordinary General Meeting
(EGM)—held at times crisis
Everyone invited a attend a meeting
will be supplied with an agenda,
which is a list of the items which are
to be discussed at the meeting and
appear in the order in which they-are
to be considered
Meeting Agenda consist of:
o Apologies for absence
o Minutes of the last meeting
o Problems arising from the last meet-
ing
o Topics to be discussed
o Other topics which are not on the
agenda
o Date and time of next meeting
Some meetings are held internally and
a room is reserved within the build-
ing.
Large organizations usually have a
board room which is used for board
meetings and other important meet-
ings.
Minutes of meeting are accurate
records of discussions which took
place and decisions which were
reached.
Meetings may be held externally (off-
site). This may happen annually and
may incorporate an awards ceremony,
for example sales awards.
Aspects that should be considered
when arranging meeting off-site: lo-
STIKOM LSPR
36
cation, car parking, cost, accommo-
dation, size of meeting rooms avail-
able, business facilities, meeting
equipment facilities, leisure facilities,
type of catering, security, facilities for
the disabled, lighting, heating and air
conditioning, attitude of staff.
Teleconferencing
Teleconferencing allows people to hold
a conference/discussion while remain-
ing physically miles apart
Contact can be by sound only or sound
and vision (video conferencing)
Involve the use of telephone system
Save time, as there is no traveling
time involved
Save traveling cost
Save entertainment cost
A permanent record in the form of an
audio tape can be arranged
Agreements can be reached more
quickly than if individual telephone
class are involved
Sometimes it is difficult to find con-
venient time
Body language is not visible
Video-conferencing
More expensive service than telecon-
ferencing
Videoconferencing allows people to
see each other which means that body
language is visible
Require extra equipment such as video
camera. Camera to show still pictures,
PC to produce graphics, connections
via telephone lines, at least two TV
MGMT201, Business Administration
37 Communication, Personal Effectiveness and Supporting Others
monitors to show members of the
group
Save cost of traveling
A number of people can hold a meet-
ing with colleagues in different places
Documents can be displayed on the
TV screen and be visible to every
member of the group
Expensive to use and maintain
6.3 Booking appointments, the use of manual
and electronic diaries, and the need for
good diary management
Diaries or agenda which are kept up to
date with accurate information are critical
to good time management for the busy ex-
ecutive and his/her administrative assistant
Manual Diaries: agenda, daily plan-
ner
Electronic Diaries (computer soft-
ware, PDA, Mobile phone)
o Quick access that appears on the
computer monitor/VDU
o Reduce the time which would have
been spent preparing and sending
memos/letters
o Reduce paperwork
o Network system allows information
to be kept up to date more easily
than when using paper-based system
o There might be problem accessing
the system
o Security problem
o System crash or malfunction
o If information is not kept up to date
it is of little use
MGMT201, Business Administration
6.4 Simple written communications includ-
ing messages, short letters and memos
When composing any types of written
communication, certain communication skills
are needed:
These include the ability to use: plain
language, correct spelling, accurate punctua-
tion, use relevant language, use correct lay-
out and need a sense of prioritization.
Messages
o Messages can be from personal call-
ers to a company or from staff to
another staff
o When taking messages it important
to: listen to the message and identi-
fy the key points, use simple word,
day and date should be stated, if
messages are urgent they should be
marked appropriately.
Short Letters
o A letter being sent to a current or
prospective customers is a reflec-
tion of the organization
o It is important that all letters are
proofread carefully and all errors
corrected prior to mailing
o Pay attention to: appropriate lan-
guage, correct layout, tone of the
letter, concise and clear content.
Memorandum
o Memos are internal communications
sent from staff to staff in the same
organization via internal mail sys-
tem
STIKOM LSPR
 Communication, Personal Effectiveness and Supporting Others
o Factors that need to be remem-
bered when writing a memo:
The context is less formal than a
business letter
There is salutation or complimen-
tary close
There is no space for a signature,
only the sender initial
May be sent to a number of
people (on the CC and BCC)
6.5 Simple Forms
Forms are used in an office to collect
and record information. For example stock
requisition forms, telephone message forms,
job application forms, leave request forms,
etc.
6.6 The use of flow charts, planning aids,
movements charts and the office diary to
aid communications
Flow Charts
o A flow chart sets out a procedure in
a logical steps
o The aim of any flow chart is to reach
the end of the process
o It is a simple visual presentation of
information
o It can be read quickly
o It is possible to extract information
readily
Planning Aids (wall planner)
o A wall planner displays a full year
activities so that information can be
entered for some time into the fu-
STIKOM LSPR
38
ture
o It usually used to ensure that there
are sufficient staffs to carry out
the necessary duties in an office,
office cover in the event of staff
absence and leave.
o It shows when staffs are on leave,
on training or attending meeting
or conferences.
Movement Charts
o Movement charts is to record the
movement of staff.
Office Diary
o Diary entries should always be up-
to-date, be written clearly and con-
cisely, contain all relevant details
and show appointment in the cor-
rect time sequence.
6.1 The importance of working to deadlines
and meeting targets and effective team-
work and support for others
Deadlines and meeting targets
Organizations frequently set targets
which are to be achieved by a cer-
tain date (the deadline)
The results of progress when the
dead¬line date is reached can be
measured and it can bee seen wheth-
er or not the target has been met.
An action plan should be made in or-
der to work towards a target
The action plan must be realistic or
staff will lack of motivation
The action plan should identify dif-
MGMT201, Business Administration
39 Communication, Personal Effectiveness and Supporting Others
ferent stages/steps involved in mov-
ing towards the target
Failure to meet a target by the deadline
can be due to the following reasons:
The target/the deadline date were
unrealistic
Lack of motivation from the staff
Insufficient training and/or experience
to carry out the duty
The action plan is poorly organized
Adequate resources of stationery and
equipment are not available
The importance of team work
Effective team work will result in a
greater degree of achievements than
individual work
Working in a team: staff can encour-
age each other and offer support to
each other during the process
Different skills and experience can be
shared
The success of a team depends to
a great extent on the ability of the
leader
Team leader is to motivate and praise
team member and support individuals
who have concerns or problems
Effective team leader:
Build good working relationship with
team member
Treat everybody fairly
Be available to discuss any concerns
from team member
Ensure team members have the nec-
essary resources and equipment to
MGMT201, Business Administration
work towards their target
Resolve any concerns of the team with
management
Motivate and support team member
Ensure everybody on the team put the
similar effort
Praise and encourage team member
Ensure that team member feel their
contribution is valued.
6.8 Getting it right first time
Staff should work carefully to ensure
that tasks are done correctly the first
time
If a task has to be re-done, resources
will be wasted and deadlines may not
be achieved
All documents should be carefully
proofread to ensure they are accurate
Documents containing errors can re-
flect a poor image of the organiza-
tion
6.9 Following instructions and taking correc-
tive action; the need for appraisal and
monitoring performances
Following instructions
The most important thing when car-
rying out instructions is to ensure that
all information is correct and that
corrective action is taken to avoid any
confusion and the staff appearing to
be disorganized.
Appraisal and Performance Monitoring
Staff appraisal schemes are used by
STIKOM LSPR
 Communication, Personal Effectiveness and Supporting Others 40

many companies to monitor the per-

formance of staff
Appraisal: is an activity that is done
for once or twice a year to discuss
about aspects of employee’s work,
career prospects and further training
Appraisal activity benefits in improv-
ing the relationship between a man-
ager/supervisor and his/her staff, ob-
taining staffs’ views of their job and
the organization
When preparing for appraisal, em-
ployee should consider the work done
since the last appraisal, employee con-
cerns, and personal/professional de-
velopment.

In-class Activities

Lecture Presentation, Open Discus-

sion, Group Discussion, Quiz and Home-
work Assignments

Material Equipment:
OHP slides or Power Point Presentation,
Class Notes, Related articles, Case Study,
Study Guide

References
Jane Pegram, Handbook on How to Pass
Business Administration, Second Level, Lon-
don: The London Chamber of Commerce and
Industry Examination Board in association
with Educational Resources Pte Ltd., 1999

STIKOM LSPR MGMT201, Business Administration

41

REFERENCES OF STUDY GUIDE

1. Jane Pegram, Handbook on How to Pass Business Administration, Second Level,

London: The London Chamber of Commerce and Industry Examination Board in asso-
ciation with Educational Resources Pte Ltd., 1999

2. Robert C Appleby, BSc Econ, Modern Business Administration, Sixth Edition: Pitman
Publishing

3. A Mintorogo, MSc. & Dra Sedarmayanti, Dasar-Dasar Pengetahuan Tentang Manajemen

Perkantoran (Suatu Pengantar): Penerbit Ilham Jaya Bandung

MGMT201, Business Administration STIKOM LSPR