†ÖµÖã¬Ö ×®Ö´ÖÖÔ×ÞÖµÖÖÑ ×¿ÖõÖÞÖ ÃÖÓãÖÖ®Ö †Ö¾Ö›üß “Öê®®Öî

†Ö‡Ô ‹ÃÖ †Öê 9001:2000 ¯ÖÏ´ÖÖ×ÞÖŸÖ ‹ÛúÛú

AN ISO 9001:2000 CERTIFIED UNIT

1
 INDEX

S.NO SUBJECT PAGE NOS.

1 Modern Office and Its Functions 3-18

2 Office Organisation 19-43

3 Office Space Management 44-67
4 Office Forms - Design, Management and 68-85
Control
5 Communication 86
6 Works Committee 88-90
7 J.C.M 91-95
8 Record Management 96
9 Filing System 102
10 CCS(Conduct)Rules 1964 108-111

2
 MODERN OFFICE AND ITS FUNCTIONS
"An office may be regarded as a place where the control mechanisms of an
organisation are located." - GEORGE R. TERRY

Introduction

The complexities of business activities are increasing day by day. With the
spectacular developments and advances in the fields of science and technology the
manufacturing techniques have undergone a rapid change. The economies of large-
scale production have brought into being a number of multinational business
organisations. The ever-widening markets also pose a challenge by themselves. The
complexities of legal provisions (of industrial and business legislation), which are
subject to constant change, to achieve social objectives, also require more than
adequate attention. Moreover, modern management has to take care of the new
emerging human relations in business. All these problems can be satisfactorily
tackled only when adequate information is available. Information is required by all
the members of an enterprise. An efficient and effective organisation and
management must possess all the information it needs to enable it to come to a
variety of decisions. To retain information, to analyse it and furnish it for the
management, are the basic functions of a modern office. So much so that the phrase
'information management' has gained currency in preference to the older one 'office
management'. The reason is that information management connotes more precisely
the activities performed by a modem office.

MEANING OF OFFICE

In common parlance, an office is understood to be a place where clerical work

is performed and where, all kinds of paper work (letters, correspondence, files,
records, etc.) is maintained and dealt with. It is a central place where all sorts of
clerical work is done to coordinate and control the affairs of the whole organisation.*
A few definitions may be noted:

(i) The office is the administrative centre of a business. The purpose of an

office has been defined as the providing of a service of communication
and record."
— Mills & Standingford

(ii) "An office is the place where the control mechanisms for an enterprise
are located; where records are initiated for communication, control and
efficient operations of the enterprise."

(iii) "An office is the place where work in connection with the preparing and
furnishing of information is done."

(iv) "The acts of collecting, processing, storing and distributing information

3
 comprise the functions of the office. — George R. Terry
(v) "An office is a place where business is transacted or professional
"services are available. - Random House Dictionary

It may be noted that these definitions emphasise "paper work" as the main
and perhaps the only function of an office. However, in modern business,- the term
office is used in a still broader sense. Consider the following statement :

It is a mistake to regard an office as a specific place - instead we are forced to

conclude that an office exists anywhere, that certain kinds of work are performed."
- Edward Roche

The modern approach to the study of-the-term office is to view it as a function

rather than i a particular place. When an office is regarded as a function. "It can plan,
organise, co-ordinate, standardise and supervise paper work, wherever it is done
and whosoever does it." But if it is viewed as a certain place only, the "paper work
done outside the boundaries of that place called the office would not be under its
control. The office manager in such a case is responsible only for the paper work
falling within his own department. For instance, minutes of board meetings, financial
records, sales and purchase records, are all integral parts of the operation of a
business and must be planned, organised and controlled to ensure an effective
administration of the business enterprise.

According to Leffingwell and Robinson,1 "the essential feature of the office is

the work itself, not who does it or where it is done. If it is. office or clerical work in
one place, it is office or clerical work everywhere regardless of where the work is
done or who does it."

In the words of Charles O. Libbey: "The office is not in one place; no matter
how much we centralise its services, there will still be office work at the point of use.
Some enterprises are almost all office. The activities of the office do not, strictly
speaking, constitute a function; they are parts of all functions."

To conclude, it may be said that an "office* refers to the functions performed

by a certain set of persons rather than the place where clerical work is done; and the
act of collecting, processing, storing and distributing information comprise the
functions of an office.

OFFICE WORK
According to an old concept, "office work" is concerned primarily with the
records of an enterprise — making records, using records and preserving them for
future reference. This concept" postulates office work as clerical work. For instance,
communication, mechanical data processing, planning and scheduling, etc., are all
within the scope of office activities, and may, therefore, be referred to as office work.
According to G.R. Terry, "office work includes verbal transmission of information as
production of written records and reports in order to provide the means for quickly
summarising large amount of data to supply a factual basis of managerial control."
According to Leffingwell and Robinson: "Office work is concerned with records and
statistics, with communication, with computing, with planning and scheduling.
_____________________
1. Textbook of Office Management

4
Every office task comes within the scope of one or the other of these activities."
Office work, by its nature, is office work; who does it or where it is done are of little
significance. It may be done by a clerk or an officer at a place called the office or by
a foreman in a factory, or by a salesman on the road or by an executive at his
residence. Office work is, therefore, primarily concerned with making, preserving
and using records — the records about purchasing, producing, selling, accounting
and correspondence, inventories and written or printed memorandums of all kinds.
These records may be required in an organisation for an efficient and effective
control of its operations. It is one of the means by which each department of a
business carries out its functions and by which it co-ordinates its duties with those of
other departments."

Various research studies on office work have revealed that about one half of
the total office time is consumed in typing and duplicating activities and about one
third of the total office time is taken up in filing, indexing, checking, mailing,
communication, etc. Some variations in this matter may be there depending upon the
degree of mechanisation of office activities. An Important characteristic of office work
is the difficulty of its measurement. This is because of the following factors:

(1) Office work is predominantly mental work, which is difficult to measure.

(2) There is greater variability of volume of work from office to office.
(3) There is irregularity in the flow of office work.
(4) It is difficult to standardise several operations in the office.

Since the office work cannot be accurately measured, it is difficult to fix

precise standards in respect of individuals and sections of the organisation involved
in carrying out office work.

Factors Contributing to the Growth of Office Work

The amount of office work has grown tremendously in our modern economy.
With the growth -of industrial revolution and the expansion of economic activities, the
quantum of office work has increased manifold. In addition, the following factors
have also contributed to the growth of office work:

1. Increase in size and complexity of business caused the growth of office work.
As the organisation grows in size, the paper work grows at a geometrical rate.

2. Management is becoming increasingly aware of the need for proper and

timely information on all the aspects of the business operations so as to
.arrive at intelligent decisions.

5
3. Recognising the indispensability of Research and Development (R&D)
activities for survival and growth in modern times, business houses are
increasingly having R&D in such aspects as markets, products, manufacturing
processes, etc. As a result, additional office work is caused.

4. The ever-increasing information demand of governments are also

continuously causing growth of office work. Every business organisation has
to prepare income tax returns, sales tax returns, provident fund deductions,
and ESI deduction statements, financial statements, etc., for individuals as
well as for the Government. All this involves increase in office activities.

5. With the increase in number and size of service activities like banking,
insurance companies, advertising, mail order houses, etc. with which a
particular business has to deal, office work has grown, these activities require
large amount of paper work and large proportions of office workers have to be
employed to process the voluminous records.

6. A large amount of growth of office work occurred because of failure to

modernise and simplify office practices in keeping time with changing
requirements of the office. There has been a tendency to employ more and
more office workers rather than devising ways of dealing with the situation,
more effectively.

OFFICE ACTIVITIES

Each office has a personality of its own. This personality is a reflection of the
purposes for which an office exists. The manufacturing office will have a profile that
differs from that of a sales office. The accounting office will have a different
orientation from a research and development office. "In organising a new office, the
office manager must first determine the prime reason for the existence of that office
and then add the necessary ingredients to bring about an efficient operating entity
that achieves predetermined results. 2 Although offices differ from one another in
prime responsibility, many activities are commonly carried out by all the offices.
Some of these activities3 are:

________________________
2. C. Spencer Everhardt, Organising and Staffing the Office.
3. Dieter Jaeger provides a complete list of office activities which include:
(1) Accounting. (2) Internal auditing. (3) Credit and collection. (4) Companywide budgets. (5)
Budgets for the office (6) Planning new office building (7) Office space planning. (8) Recruitment.
(9) Training office'staff. (10) Office maintenance. (11) Office decor. (12) Office security. (13)
Administrative systems and procedures. (14) Computer operations. (15) Planning work for
computers. (16) Electronic accounting machine room. (17) Management information systems.
(18) Purchase of big equipment e.g., computers, large accounting machines etc. (19) Purchase of
desk type of equipment. (20) Office supplies. (21) Copying and duplicating. (22) In-house printing.
(23) Purchased printing (24) Records management. (25) Central-files (26) Microfilm services..
(27) Library. (28) Communications (Telephone, Telex etc. (29) Mail and messenger. (30)

6
 Cafeteria, dining room etc. (See Carl Heyel, Handbook of Modern Office Management, etc.)
(i) Processing Incoming Mail; .
(ii) Processing Outgoing Mail;
(iii) Dictation;
(iv) Transcription;
(v) Typing;
(vi) Printing;.
(vii) Copying; .
(viii) Filing;
(ix) Records Retrieval;
(x) Records Disposal; and
(xi) Communication.

THE PURPOSE OF AN OFFICE

The purpose of an office is mainly to provide the services of communication
and of record. An office is, in fact, a processing medium. In addition, it is responsible
for directing and coordinating the various activities of the organisation. It is like the
brain in a human body and the mainspring in a watch. It is the central directing force.
The main purposes of an office are:

(i) To direct and co-ordinate the activities of the various departments;

(ii) To plan the policies of the business and ensure their implementation;
(iii) To preserve all the records of the business;
(iv) To handle inward correspondence; and
(v) To maintain accounts, statutory arid non-statutory books, etc. of the
business.

OFFICE FUNCTIONS
The functions of a modern office may be classified into two categories.
i. Basic functions (or routine functions); and
ii. Administrative management functions.

I. Basic Functions

According to Terry,4 "the acts of collecting, processing, storing and distributing

information comprise the basic functions of the office. "According to Mills and
Standingford,5 'the purpose of the office has been defined as the providing of a
service of communication and record;" Denyer,6 however, says: "The basic functions
of an office can be said to be receiving, recording, arranging (and analysing) and the
giving of information/ In the work of any office, be it sales, purchasing, personnel or
even the drawing office, it will be seen that this is done most of the time. In fact, a "
leading spokesman of the Institute of Office Management has referred to the Office
Manager as the "Information Manager."

_______________
4. George R. Terry, Office Management and Control.
5. Mills and Standingford,. Office Organisation and Methods.
6.C. Denyer, Office Management.

7
The basic functions of an office may be analysed under the following headings:

1. Receiving Information: Information relating to the activities of an organisation

may be received from a variety of sources, which may be internal sources or external
sources. From internal sources, information- may be received 'from various
departments, sections or divisions of the organisation. From external sources, it may
be received from suppliers, customers, visitors, other organisations, government
departments, etc. Examples of the form in which information is normally received are
letters, telephone calls, orders, invoices and reports on the various activities of a
business. In addition to receiving such information as may come into the business,
the office has the duty of obtaining any further information which the management
may require.

2. Recording Information: The object of keeping records is to make information

readily available to the management, whenever required. For this purpose, the
information that is received, is .converted into some form of written record. The
records normally kept in a business office •include financial and cost accounts,
orders, progress of work, hours worked by employees, correspondence, etc. While
some records are required to be kept by law, some others should be kept to meet
the needs of the management in planning and controlling the business. The records
so maintained by the office serve as a reference library for future use.

3. Arranging Information: The information accumulated by an office is

rarely in the form in which it is given out; facts have to be gathered from various
sources and calculations, tabulations etc., may have to be made. An office is
responsible for supplying information in the form which best serves the purpose of
the management, and this is a function of the highest importance and which must be
carried out by a properly trained staff. Examples of arranging information are:
preparing invoices, payrolls, cost accounting statements, statistical statements, and
'reports.

4. Giving Information: An office furnishes information from its records as and

when it is required by the management. The information required by the
management may be of a routine nature or of a special nature, and may be supplied
verbally or in writing. Examples of giving information are orders, estimates, invoices,
progress reports, statements of accounts, statistical and financial statements, and
instructions issued on behalf of the management. All this work involves typing,
duplicating, telephoning, mailing, teleprinting, etc.

II. Administrative Management Functions

Apart from the basic functions of an office, there are certain administrative
management functions which have to be performed for a smooth functioning of the
office. These functions are outlined below:

1. Management Functions: For the efficient functioning of an office, the

management functions include:

8
 (a) Planning;
(b) Organising;
(c) Staffing;
(d) Directing;
(e) Communicating;
(f) Controlling;
(g) Co-ordinating;
(h) Motivating.

Office work has-to be properly planned, and then organised and executed
according to the ' plan. A proper control must be exercised over office activities, and
the affairs of the different individuals and. departments in the organisation must be
co-ordinated.

2. Public Relations Function: An office has not only to maintain cordial

relations with other departments in the organisation but also with outsiders. It has,
therefore, to perform public relations function as well. Good public relations enhance
the reputation and goodwill of the organisation. Public relations include the reception
service, the liaison service, etc., provided by the organisation.

3. Instituting Office Systems and Routines: Systems and routines indicate

a planned and systematic approach to the problem of management. A system may
be regarded as a planned approach to the attainment of desired objectives.7 An
office routine may be defined as a series of steps in the performance of office work,
each step in the series being performed in the same order and in the same way
every time.8 A procedure is a planned sequence of operations for the handling of
recurring business transactions uniformly and consistently. 9 Office routines, systems
and procedures, etc., should be developed to ensure an uninterrupted and smooth
flow of office work so that it may be efficiently performed.

4. Retention of Records: Office records include correspondence, letters,

invoices, orders, financial and cost records, reports, statistical records, minutes, etc.
These records have to be retained for future reference. Apart from maintaining
records, which is a basic function (see 'Recording Information' above under the
heading 'Basic Functions"), an office has to perform functions like those of filing and
indexing, and the preservations and destruction of outdated records.

_____________________

7. Littlefield and Rachel, Administrative Office Management.

8. Leffingwell and Robinson, op. cit.
9. Neuner and Keeling, Modem Office Management.

9
 5. Safeguarding Assets: It is the function of an office to safeguard the assets
of the organisation, which may be fixed assets like building, plant, machinery, office
equipment, lighting and air-conditioning equipment; or which may be movable assets
I ike*furniture, typewriters, calculating or acounting machines, equipment of various
types; or which may be in the form of cash, title deeds, securities, records and
documents, etc. Vital records such as major contracts must be properly protected;
cash must be held in safety or banked; stock records must be properly maintained
and deficiencies may be immediately brought to the notice of the management; fixed
assets should be protected against hazards of fire and theft by taking out suitable
insurance policies and by other means.

6. Form Designing and Control: Since office work is mostly paper work,
office forms are extensively used to perform the recording function of the office. *A
form is a standardised record which is used to accumulate and transmit information
for reference purposes.' Office forms serve as a store-house of information. It is the
task-.of the management to design, standardise, produce and control the forms to be
used in the office as well as the other departments of the organisation.

7. Stationery and Supplies Control: Office work requires the supply of

office stationery of suitable, quality and in adequate quantity. It is the duty of the
office to carefully procure and maintain an adequate supply of stationery items.
Since.stationery is a very costly item these days, it should be bought at competitive
prices in economic order quantities; reasonable levels of stock must be maintained
and made available at all times; and it should be issued only against authorised
requisitions and stored scientifically to avoid damage, loss or deterioration.

8. Selection and Purchase of Office Appliances: Office work also requires

adequate equipment and machines — furniture, fixtures, telephones, intercom
systems, dictaphones, calculators, accounting machines, filing cabinets and drawers,
typewriters, duplicators, (and, in some cases, computers), etc. "It is the duty of the
office manager to purchase the right type of machines, equipment or furniture
(according to the requirements of the office), and also to maintain these in efficient
working order. The principles which should be followed in the selection of office
appliances include:

(a) Full and proper use;

(b) Suitability for the purpose for which purchased;
(c) Simplicity of operation and maintenance;
(d) Flexibility and adaptability to different uses; and
(e) Analysis of cost and benefit. Appliances should be purchased, keeping in view
the financial resources of the organisation.

10
 9. Personnel Function: The efficiency of an office depends on the personnel
manning it. The personnel should be scientifically recruited and trained, and
assigned work after a proper appraisal. The personnel function is. performed by the
personnel department, which is generally assisted by the office. The office manager
must make a provision of adequate and trained staff to ensure the systematic, timely
and efficient performance of office work. Job evaluation and merit rating should be
periodically done; the staff should receive reasonable remuneration and should be
properly motivated to attain the best performance. Opportunities for betterment and
promotion should be made available to the office staff.

10. Controlling Office Costs: With the adoption of scientific methods for office
management a modern office is further supposed to discharge the function of
"controlling office costs." This may be done by:

(a) Mechanisation of the office;

(b) Adopting time and labour saving devices in the. office;

(c) Using better forms;

(d) Analysing the existing office routines and adopting improved ones.

Importance of Office

An office is an important and indispensable part of every organisation, big or

small. Be it a government institution, trading or manufacturing organisation, a
hospital or an educational institution, an office is vital for its functioning. The office
acts as a storehouse and nervous system of every operation of a business concern.
A well managed office is an indispensable aid to management. It helps the
management to plan its operations intelligently and to put them in action
competently. The office co-ordinates all the activities of the business. Without an
efficient and organised office, business activities, cannot be carried through
systematically.

The importance of the office to a business enterprise arises from the fact that
a modern business, with its varied and complicated operations, cannot be managed
efficiently without clerical assistance in some form or the other. "In fact, 'competent
clerical service is a precondition for the efficient conduct of business affairs.' It has
been rightly said that 'the office is to a business what the mainspring is to a' watch.*10

Maynard11 has outlined the importance of the office in the following manner:

(i) The office is the locus of company policy - the place in which it is
formed and from where it is executed.

_______________________
10. L.R. Didcsee, Office Organisation and Management.

11
11. Maynard. Handbook of Business Administration.
(ii) The office is the information hub of the company. It is the intelligence
centre for the co-ordination of vital activities. Here is "memory" — on
papers, cards, tapes and microfilm; in letters, reports, files and ledgers.
Here is calculating and data processability.

(iii) The office is the company's intermediary with customers, vendors and
others outside the organisation. It bills, collects, pays and corresponds.

(iv) The office is an overseer of the office furniture, machines arid supplies
for all or most of the firm — buying, leasing, maintaining and replacing
them.

(v) The office is the centre of the personnel function) supplying people for
the work force and setting standards of performance and
compensation.

(vi) The office is the provider of other special services—offering to all

divisions, in one way or another, methods, analyses, internal
communication systems, copying and duplicating facilities, mass-
feeding facilities, environmental controls, and much more.

PRODUCTION MARKETING

OFFICE

Collecting,
Processing,
Storing and
Distributing
Information

FINANCE PERSONNEL

12
 The importance of an office to a business enterprise may be further studied
with the help of the following points:

1. Office as Information Centre: An office may be described as the information

centre of a business. It collects information from all sources, internal and external,
records it, arranges and analyses it and provides it to the-management when
required. (See 'Functions' above). The information furnished by an office helps the
management to focecast and plan its operations well in advance and to exercise
control over the entire spectrum of business activities. An office is also called a
'storehouse of information' or a 'memory centre of an organisation' since all kinds of
information and figures, whether past or present, are available in the office.

2. Office as an Intermediary: An office connects different departments with the

outsiders and vice versa. For instance, all the 'purchase orders' are routed through
the office and ail the 'sales orders' are received through the office. It is office that
links the business organisation with its suppliers, customers, the Government and
the general public. It is, in short, responsible for:

(i) Attending to enquiries, orders and complaints of its customers and

suppliers;
(ii) Creating a good image of the organisation in the minds of people; and
(iii) Maintaining liaison with the Government and other institutions.

3. Office as a Co-ordinator: The processing of information in a modern'

office may be grouped under four headings: namely, communications, written and
oral; computing and summarising operating results; record keeping through
accounting and filing records; and systematisation and cost reduction — through
systems and procedures analyses. These four activities are necessary for the
efficient co-ordination of production, distribution, and financing of the merchandise or
services in a business concern. This co-ordination is provided by the focal centre —
the office. The process of co-ordination is almost impossible without an office, which
provides competent clerical services to all in the business who need it. It keeps
contact with all the other departments, and provides necessary information and
knowledge for the co-ordination of the various activities of the organisation.

4. Office as a Service Centre: Since an office is the focal point in a business

organisation for the co-ordination of the work of production, distribution, finance and
personnel, its activities are in the nature of services to all the other departments and
to the business as a single unit. Frequently an office is referred to as the office
services department. It exists to provide clerical and other services to the various
departments, divisions, sections or branches of the organisation, and cannot operate
apart from them.

5. Office as an Administrative Nerve Centre: As an inclusive executive

function, an office acts as a administrative nerve centre. It helps in making the
decisions about the products to be manufactured and sold, when to purchase
materials, what reports to prepare, and a variety of similar activities. It becomes the
heart of all business activity, through which circulates information on purchases,
sales, finances and communication.

13
 6. Office as Control Centre: An office also acts a "control centre" of the
organisation, since it helps the management to take decisions and implement them.
It prepares and presents all the necessary data, information and plans to the
management so that It might take decisions. It is the office where all the policy
decisions originate, and it is from there that the activities of the organisation are
controlled and remedial or corrective action taken to ensure that the objectives of the
organisation are accomplished.

Leffingwell, and Robinson12 have summed up the importance of an office

thus: "A well organised office makes it possible for the management to plan its
operations intelligently, to put I its plans into effect surely, to follow their progress
currently, to determine their effectiveness j promptly, to appraise their result
without delay and to co-ordinate all the activities of the business."

THE CHANGING OFFICE SCENE

Office Yesterday

A few decades ago, a typical business office presented a gloomy picture.

Housed in one or two small rooms, poorly lighted and ill-ventilated, it was generally
situated in the least conspicuous' part of the building. There was a small volume of
paper work, which was handled by a few clerks manually and without the aid of
mechanical and labour-saving devices. Since typewriters were somewhat rare, the
clerks had-to do all the written work with their own hands. Letters were copied before
despatch on loose sheets or in fat leather bound registers. All the internal and
external communication was performed or carried on through the human agency, for
telephones and intercom ' systems were not generally in use. The proprietor of a
business or the head clerk would be found sitting in the office room, supervising ana1
guiding office work, and personally dealing with the visitors or customers. There was
no departmentalisation of office activities, and the techniques of scientific
management were either not known or not practised.

Historical Developments

The following technological developments made during the last 150 years -
have led to the evolution of the modern office:

1870 : First commercial typewriter introduced.

1880 : Alexander Graham Bell invented telephone.
1920 : Electric typewriter introduced.
1930 : Important machines like duplicators, dictaphones, intercoms
developed.
1950 : Calculators, computers, copying machines, addressographs, franking,
tabulating and accounting machines developed.
1961 : Memory electronic typewriters launched.
1964 : Word processing equipment, cash registers etc.

14
____________________________
12. A Textbook of Office Management.
1970 : Introduction of digital networks (LAN), local area networks.
1980 : Computerised telephone networks, picture phone etc.
1990s : Personal computers, microprocessing equipment, electronic mail, fax
machines, modems, pagers, cellular phones, internet systems etc.

Office Today

Office activities have undergone vast changes in the last five or six decades.
A modern office is well-planned, well-laid out and well-organised. The scope of office
activities has widened tremendously following spectacular developments in science
and technology, industrialisation, transport and communication, etc. These
developments have led to an expansion in the scale of production and business
activities, to greater governmental and legislative interference and control, and the
consequent enlargement of the volume of office work. In today's office, activities are
performed not by general purpose clerks but by specialised clerks — by
receptionists, accounts clerks, cashiers, stenographers, typists. There is, thus a
greater division of labour. The old fat leather-bound ledgers have- been replaced by
loose-leaf binders. Filing and indexing techniques have been developed.
Departmentalisation of office has been effected. A greater and wider use of
machines (typewriters, dictaphones, calculators, accounting machines, computers
etc.) is made to-save time and labour. Work standardisation, job evaluation, merit
rating and other techniques of personnel management are practised. Telephones,
intercoms, telex and other communication devices are used for rapid and global
communication. Many large sized offices use computers to handle the enormous
volume of work. The use of carbonless copy paper has become very popular. In
short, offices today are organised on scientific principles, and their management and
administration is in the hands of highly specialised managers. The term 'office
management" is rapidly being replaced by the term "Administrative Office
Management"13 and "Information Management.14

Office of the Future

The office of the future has to face a variety of challenges social/political and
economic. For instance, with the increased mechanisation of office activities and the
installation of sophisticated machines like the computers, it seems we are on the
threshold of office automation. With the increasing pace of industrialisation and
government control of business, the need to employ more experts and specialists to
perform office activities has become pressing, and has led to the utilisation of
consultancy services to a greater extent. These developments call for a greater
"professionalisation of management" and increased application of the principles of
management to the office. The other challenges faced by the office of the future
include:

___________________________

13. Neuner and Keeling, op. cit.

14. George R. Terry, op. cit

15
(i) The challenge of legal provisions;
(ii) The challenge of reducing paper work; and
(iii) The challenge of reducing office cost.

Once these challenges are met, the productivity of an office would increase,
and its importance would be enhanced in relation to the business organisation of the
future.

THE PAPERLESS OFFICE

The 21st century offices will be an electronic wonderland where extensive

paper based routine work will be replaced by result-oriented and advanced
information technology.15 Office automation, with its microcircuitry and visual display
screens, is surely to take over the old and worn out methodology, in office
management. In all probability, within next 10-15 years, office information system
would be installed and developed to such an extent that it would replace the desk,
the typewriter, the filing cabinet and "the plethora of paper work.

With the evolution of a new work style, based on speed, accuracy and
efficiency the offices which fail to wake up to the implications of modern information
technology will find themselves lagging behind. They would become vulnerable to
the technological onslaught of their better equipped competitors. A US study16 on
office automation has indicated that 85% of the banking industry has already
installed office automation systems of some kind, An average of 26 word processors
per 1000 employees was reported. Together with these the banks are likely to add
private videotex, electronic mail, online management information systems with
graphics and voice .information systems. Future developments also imply adoption
of multifunctional workstations with a wide variety of capabilities. The technological
advances have also invaded offices in Europe, U.K. and Japan etc. However, in
India, the position is not that encouraging. The concept of paperless office
encompasses the following:

(1) The omnipresent desk will now be replaced by the multifunctional

workstation, with a personal computer linked to other personal
computers via a high speed Local Area Network (LAN) system. The
workstation .can be further linked to the main station so that the staff
positioned at the workstations can contact and manipulate information
from the office records.

(2) Computers, equipped to process words as well as figures, will totally

replace typewriters. The present day word processor will slowly give
way to personal computers.

(3) The electronic-magnetic or optical-filing is the one to succeed the

paper filled filing cabinets in our offices. Microfilming will also reduce
paper records and facilitate retrieval of records.

16
_____________________________
15. Sunny Sebastian: The Paperless Office, H.T. Supplement (Adapted).
16. Op.cit.

(4) For outward communication, fascimile (FAX) system will replace

despatch section.

(5) For inward communication, shorthand note books and typewriters will
give way to dictating machines and printer computers etc.

(6) Desktop Publishing-System will look after the entire printing work of
office. It will write and format documents, create and incorporate
graphics, prepare camera ready copy for printing, keep data bases of
mailing and subscription lists, create official advertising files and
brochures and keep all financial records-no matter how large or small it
is.

(7) Various machines like accounting machines, billing machines, payroll

machines, addressing and mailing machines, punched card machines
etc. shall be replaced by computer network (LAN) system.

(8) The automatic answering devices and automatic electronic branch

exchanges will reduce the workload of the reception counter of the
office.

(9) The new emphasis will be on LAN system — a low cost method of
connecting micro computers, printers and data storage devices on a
single site Imaginative use of the information technology helps to
create new opportunities. It cuts down operating costs, provides faster
and more accessible information and reduces time .-spent on clerical
functions and unproductive tasks.

Are the days of Paper Limited?

The increasing use of office machines in transmission, storage and data

processing has facilitated the offices to abandon the use of paper to a large extent,
but the realisation of the goal of 'paperless office' is subjected to the following
problems:

1. Transmission: Fascimile transmission is already possible but it requires

that the receiver and sender both have compatible electronic apparatus, which will
restrict transmission for some time to come.

2. Storing: Microfilm has long been used as a storage medium but as yet it
has made no serious inroads into the use of paper. Data storage of huge quantities
of information is already carried out by computers. Yet the most used device of many
computers are not video display units (VDU) but printers.

3. Data Processing: Again, computers already perform many data

processing tasks which previously'were being earned out by clerks armed only with
pencils and paper'. However, aspects like — financial, organisational and resistance

17
to change — will inhibit the rapid elimination of paper.

As such, the transformation of the office is not an easy task. An integrated

approach where information is treated as a primary resource, is necessary to reap
maximum benefits from office automation. Further, the software supporting an
electronic office should be totally reliable, accessible to everybody and easy enough
to be operated by everybody irrespective of their ability or status, "Office automation
can be carried out in a phased manner starting with the clerical staff and later,
moving on to the professionals and managers." Managers can have desktop on to
workstations, which can be used for electronic mail, finding information from large
central data bases and typing text while producing reports. Through a properly linked
network system, a manager can send electronic messages to his colleagues and
arrange meetings and appointments. He can also type letters from his own laptops
(screen-based workstation). For maximum results the technology used should be
matched to needs of the business and business objectives. The persons who are co-
ordinating the 'Information Technology' (IT) activity must be familiar with the business
objectives of the organisation.

The Indian Scene

While the IT advancements are rapidly changing the office scene in the west,
India's attempt in this field so far has remained patchy. In India, the number of
computers may not exceed 15,00,000 and the personnel working on these machines
would be around 20,00,000 only. Indian offices are-2 to 5 years behind their
counterparts in west and Japan. In India, Indian Airlines were probably the first to
use computers in their booking operations. The Railways have started using
computers in many cities for reservations etc. Banks have been using computers in
clearing house operations and in branch banking at few places only. Some of the
public sector enterprises like the Oil and Natural Gas Commission have ventured
into using a fascimile system for-inter-office dissemination of data and diagrams.
MTNL, DDA, Electricity Boards, Improvement Trusts, water and sewerage
departments have also computerised their billing operations. The meteorological
department of the Government of India has acquired -a Super Computer from U.S.
and the Election Commission also has plans to introduce computers in its working.
The corporate sector is however racing ahead in automation of office operations.
Apart from these, in India the in things presently are electronic typewriters and push
button telephones apart from solitary computers and word processors. In
metropolitan towns, the pagers and cellular phones have also made inroads in
matters of office communications. Many corporate houses are providing laptop
computers to their senior executives, and mobile phones to their field staff to
facilitate communication with them. The launch of Pentium IV in India was almost
simultaneous with the rest of the world and the time gap in. introduction of
technology in India with the advanced countries is fast reducing. Banks are
computerising their branches as also opening ATMs in major towns to facilitate
banking. Offices of Income Tax and Sales Tax Departments are rapidly being
computerised. However, the worst scenario is presented by the post offices and
offices of small business units spread over the length and breadth of the country. It is
indeed a very long road ahead.

18
 OFFCIE ORGANISATION

"An efficient office organisation implies a careful planning of what is to be done, by

whom it is to be done and by whom it will be supervised/'

Organisation Defined

Organisation is one of the fundamental functions of management. After having

thought out the objective or goal of an enterprise and the course of action to be
followed, it is necessary to give a practical shape to the work to be performed to
meet that objective. In organising, we divide the work, and prepare a structural plan.
The distribution of work is to be made in such a way that all the individuals or groups
can work individually but under control. A good example of an organisation that
works in harmony is the human body. The functions of the human body are divided
into various systems such as the digestive system, the nervous system, the
respiratory system, the vascular system, etc. Each system works on its own but
under the control of the central nervous system. Similarly, in an organisation, there
are various departments or divisions, each performing a separate function —
manufacturing, marketing, finance, etc. — in a co-ordinated manner.1 The example
of the human body is ideal in understanding how a department or division is to be
geared into operation for the successful functioning of ah industry or an enterprise.
Various authors have defined the term organisation differently. To have a
comprehensive idea of the term, the following definitions may be noted:

(i) "Organisation is the process of so combining the work which individuals

or groups have to perform with the facilities necessary for its execution,
that the duties so performed provide the best channels for the efficient,
systematic, positive, and co-ordinated application of the available
effort." — Oliver Sheldon

(ii) "Organisation is a group of people who are co-operating under the

direction of leadership for the accomplishment of a common end."
—Ralph C. Davis

(iii) "Organisation is the process of identifying and grouping the work to

be'performed, defining and delegating the responsibility and authority,
and establishing a pattern of relationship for the purpose of enabling
people to work most effectively to accomplish the ' objective of an
industrial organisation. Simply stated, organisation is the systematic
arrangement of people working together towards a common purpose."
— Louis A. Allen

________________________________
1. N.P.C., Management Guide.

19
 (iv) "Organisation is the arrangement of functions deemed necessary for
the attainment of the objective and is an indication of the authority and
the responsibility assigned to individuals charged with the execution of
their respective functions." -George-R. Terry

(v) "Organisation is concerned with the arrangement of work, with the

division of activities, and with the allocation of duties, authority and
responsibility." — J.C D.enyer

(vi) "Organisation is a process of welding together a framework of portions

which can be used as a management tool for the most effective pursuit
of the goals of an enterprise." — James Lundy

It may be noted that the term organisation has been used in a two-fold sense.
Firstly, organisation . may refer to the function of organising and secondly, it may
refer to the structure of individuals and facilities by means of which an office
manager has his plans carried out. We may also say that 'organisation results from
the exercise of the function of organising." Whether the resulting organisation is
effective depends upon two factors:

(i) The ease with which the organisation was set up, and
(ii) The wise direction and control of the organisation by a competent
executive.

Characteristics of an Organisation

On a careful analysis of the above definitions, the following characteristics of

an organisation emerge:

(i) It is a group of individuals which may be small or large.

(ii) The group in the organisation works under the direction of executive
leadership.

(iii) It is a function of the management.

(iv) It consists of some directing authority which controls the collective

efforts of the group.

(v) It refers to a structure of duties and responsibilities.

(vi) It is established for the accomplishment of common objectives.

(vii) It is a continuous function and is performed in varying degrees by all

levels of management, from the first line supervisor to the top executive
of the enterprise.

20
 (viii) It cannot be static for the simple reason that an organisation which is
effective today may not be satisfactory tomorrow. It needs periodic
changes and modifications according to . current needs and situations
in terms of objectives, jobs and personnel.

Importance of Organisation

The need for organisation arises when two or more people work together. A
one-man business will have no difficulty about co-ordinating the efforts of the buying,
selling and other management functions of the business; "But once the business
starts to grow, and separate departments are created for buying, sales, accounting,
administration, and so on, the need for organisation undoubtedly grows with it." With
the growing complexities of large scale organisations, the need and importance of
organisation has grown substantially.

Organising makes possible the effective operations of a group. It is the basis

for necessary team work among the various members of a common enterprise and
helps in co-ordinating their efforts. In other words, the value of each individual's
contribution is enhanced and, at the same time, the accomplishments of the group
are increased." "Every member knows how he and his work fit into the total picture,
what he is to do, when and where he is to do it, and who helps him. The importance
of organisation can also be judged from -the fact that a good organisation is now
regarded as the foundation of sound management. According to Allen: "A sound
organisation can contribute greatly to the continuity and success of the enterprise." It
is a mechanism with the help of which a management directs, co-ordinates and
controls the business.

Benefits of a Good Organisation

A good organisation exists when each member of the group, already selected
for his competency, is given a definite assignment and a stated time for carrying it
out. The assignment is within his ability to perform. He understands what he has to
do, how it is to be done, and when. He is provided with the necessary facilities for
accomplishing his assigned task, including proper materials, suitable equipment,
competent assistance, and adequate supervision. A good organisation brings many
(such as the following) benefits to the management of an enterprise.

(i) It facilitates the accomplishment of the objectives of the enterprise.

(ii) It eliminates overlapping and duplication of efforts.
(iii) It facilitates easier and better communication between the
management and personnel.
(iv) It permits effective delegation and decentralisation.
(v) It facilitates adequate and effective control.
(vi) It provides clear understanding to employees about their jobs and their
relations with one another.
(vii) It facilitates job evaluation and appraisal of group performance.
(viii) It facilitates an orderly expansion and growth.

21
 On the other hand, a poor organisation creates many problems such as:
(i) It delays work due to the absence of clear-cut and defined
responsibilities of each executive and of each employee.
(ii) It initiates wrong action due to delegation of authority which is not
commensurate with responsibility.
(iii) It contributes to the poor quality of employees effort because of the
uneven and unscientific distribution of work among them.
(iv) It promotes a waste of efforts because of its failure to define the jobs
and the limits of the responsibility attached to each job.

Steps in Organising

Organising refers to the grouping of activities necessary for the attainment of

objectives. It also indicates the authority and the responsibility assigned to
individuals charged with the execution of their respective functions. The following
steps are involved in organising the structure of an enterprise:

1. Knowledge of Objectives: While organising, it is important to bear in

mind the objectives or targets of the organisation or department. The objectives
must be determined, keeping in view the environmental situation. They must be
clear, precise and complete, and free from ambiguity or confusion. Unless the
manager or supervisor knows the objectives, he may not be able to organise
properly and motivate people towards the attainment of the objectives.

2. Division of Work into Activities: After laying down the objectives, the
manager must identify the total work involved in achieving them. The total work to
be performed should be divided into component activities. For instance, the total
work of a manufacturing enterprise may be divided into production, finance,
personnel, marketing and such other activities.

3. Grouping the Activities: The next step is to group the various activities
into practical units based on similarity and importance, and to indicate the person
who would do the work. Similar activities should be grouped together under one
heading. For instance, purchasing, machining, assembling may be placed under
manufacturing while recruiting, training, job grading, compensation may be placed
under personnel. Other basis for grouping the activities may be utilised - such as
geographical location, particular equipment utilised or process employed.

4. Defining and Assigning Activities to Jobs: Jobs must be clearly defined

and the activities related to them must be clearly identified and assigned. This will
help the management to fix the authority and responsibility of the employees
concerned.

5. Fitting Personnel into Jobs: A job must be allotted to a properly qualified

person so that I no one may become a square peg in a round hole. Each person
should be assigned a specific job or jobs and be made responsible for it.

22
 6. Delegate Required Authority: Proper authority must be vested in the
personnel to enable them to carry out the job, Authority must be commensurate
with responsibility. Authority without responsibility and vice versa is meaningless
and futile.

7. Create Organisational Relationships: The creation of different

authority relationship — such as line, functional or line and staff - is essential for
the achievement of the objectives. Everyone in the organisation must know to
whom he is accountable, and his relationship with other persons in the
organisation should be clearly established.

MANAGEMENT, ADMINISTRATION AND ORGANISATION

There is a sharp difference of opinion among experts about the meaning and
significance of I the term "Administration/ "Management," and "Organisation."
Some writers maintain that there is no difference between these-terms, while others
are of the view that they are not synonymous and have different meanings.

Management versus Administration

In simple terms, management is the art of getting things done through the
efforts of others. It requires group efforts, directed and controlled towards a common
purpose. Management refers ' to all social organisations and institutions, whether
they are involved in business or not. The term administration is that function of an
enterprise which relates to the overall determination of policies and major objectives.
It sets forth the general purpose of an enterprise, establishes, its major policies,
formulates the general plan of procedures, inaugurates the broad programmes and
approves those specific major projects which fall within the general programme.2 The
distinction between these two terms may be understood from the following
quotations:

(i) Administration is the function of "determining the policies upon which the
enterprise is to be conducted, while the function of management is to carry
out the policies laid down by the administration group."
— Leffingwell and Robinson

(ii) "The administration function is concerned, with the determination of policy,

the coordination of finance, production and distribution, the settlement of the
compass of the organisation, and the ultimate control of the executive.
Management is related to the execution of policy within the limits set up by
administration."

(iii) "Administration is largely determinative, whereas management is

essentially executive." — Oliver Sheldon

__________________________________________
2. William Spriegel, Industrial Management

23
(iv) "Administration includes broad policy-making and management is a part
or element of administration. — Prof. Walter

(v) "Administration is the function in the industry concerned with the determination
of finance, production and distribution, the settlement of the compass of the
organisation under the ultimate control of the executive. Management proper
is the function in industry concerned in the execution of policy, within the limits
set by the administration and employment of the organisation for the particular
objects before it." — Oliver Sheldon

(vi) "The administration concerns itself with the higher level (laying down of
objectives, policies and direction) while management is concerned with the
execution of policies and therefore concerns itself with the lower levels."
—Spriegel & Lansburgh

(vii) "Administrative management is not one position, one office or one

department, it is rather the totality of the managerial personnel operating in
an administrative capacity with all the information and all the expertise
needed for effective, timely and objective decisions." -Littlefield and Others

(viii) The term "administration* is more often used in non-business enterprises or

Government departments. The term management may be used for business
and non-business enterprises.

While some authors are of the opinion that the term administration is a wider
concept than the term management and includes management as well as
organisation, there are others like Henri Fayol and E.F.L. Brench who consider
management to be a wider concept than administration and look upon administration
as a part of management. James Lundy says: "Management would be accepted as
the most inclusive term, having within its scope both administration and execution."
Apparently there is no unanimity of opinion among the prominent writers on the use
of the two terms. However, all managers have to perform the functions of planning,
organising, directing, and . control. A part of their time is spent on administrative
functions and a part on managerial function. It may be stated here that, at higher
levels of management, the manager spends more time in ' discharging administrative
functions and less time in implementation. But, at the lower levels of management,
the executives spend less time in discharging administrative functions and more time
in their implementation. This relationship between administration and management
may be illustrated in the following manner.

The top level management devotes more time to policy making etc., and less
time to its execution. The low level management devotes more time to the execution
of policies framed or determined by the higher levels of management. The
intermediary and middle level management is more or less equally involved in both
the activities.

24
 Levels of
Management

Top Boardof Directors

ME ION
GE AT
NT
Intermediary Managers

NA TR
MA INIS
M
Middle Executives

AD
Low Foremen/ Supervisors

Fig 3.1 Administration versus Management

Management versus Organisation

Management is the art of getting things done through others. Broadly

speaking, the managerial functions fall into four categories:

(i) Planning;
(ii) Organising;
(iii) Direction; and
(iv) Control.

According to Brech,3 managerial responsibilities involve:

1. Judgement and decision-making in determining plans and in using data to
control the performance and progress of plans; and

2. The guidance, integration, motivation and supervision of the personnel

employed by the enterprise, and carrying out its operations.

Organisation is a process of defining and grouping the activities of an

enterprise and establishing the authority relationships among them. According to
Henry Fayol, "To organise a business is to provide it with everything useful to its
functioning: raw materials, tools, capital, and personnel." This definition divides
organisation into two parts — the material organisation and the human —
organisation. The structure of an organisation emerges from the Organising efforts of
the management. This organisation structure is no more than framework of
managerial personnel.

Organising is one of the important functions of management. If management

is regarded as a human body, organising is its nervous system. Without organising,
the other functions of management, viz., direction, planning and control etc. cannot
be efficiently and effectively performed. Organising is a continuous process. In a
small business enterprise, where there is little opportunity for delegation, it may be
informal; but in large-scale enterprises, where organisation charts, work schedules,
etc., have to be prepared with the object of defining the duties arid responsibilities of
the personnel employed, it may be very formal.
_______________________________
3. E.F.L Brech, Principles and Practice of Management.

25
 OFFICE ORGANISATION

As already stated, organisation is the process of management by which the

activities of a group of persons are co-ordinated for the achievement of certain
common objectives. According to E.F.L. Brech. "It is the framework within which and
by means of which the process of management can be effectively carried out.* In
any medium or large-sized organisation, office activities are performed by a large
number of persons; therefore; it becomes imperative that the efforts of these
individuals should be organised in such a way that office work is carried out with the
maximum efficiency and the minimum cost. Organisation establishes the relationship
between people, work and resources. A planned organisational structure outlines
required functions, relates those functions in a systematic manner, and assigns
authorities and degrees of responsibilities, so that the work is performed with speed,
accuracy and economy. The need of office organisation increases with the ;
increase in the number of employees required to perform office work. An efficient
office organisation implies a careful planning of what is to be done, by whom it is to
be done and by whom it will be supervised. It results in the smooth functioning of
office operations. According to Leffingwell, a well-organised office makes it possible
for the management to plan its operations intelligently, to put its plan into effect
surely, to follow their progress currently, to determine their effectiveness promptly, to
appraise the results without delay and to co-ordinate all the activities of the business.

Thus 'office organisation is the process of .collecting every kind of useful

information from different internal departments and outside organisations, using and
keeping it safely, and effectively co-ordinating the other factors to achieve the
common objective by keeping smooth and harmonious relations between work and
employees with a view to regular study of progress and using the maintained records
for earning greater profits."

The important features of an efficient office organisation are:

(i) A clear definition of objectives;

(ii) Breaking down the overall objectives into several objectives related to
individual tasks;

(iii) Arrangements of tasks in such a way as to ensure one-way flow of

work and service;

(iv) Co-ordinating the tasks so that each one serves the other or is served
by the other optimally, without obstructing the flow of work;

(v) Organising office activities with the utmost speed, accuracy and
economy^ consistent with the objectives of enterprise;

(vi) Flexibility and adaptability to .changing objectives.

26
Principles of Organisation

The organisation of office activities is a continuing process. It should not be

static, rigid or fixed: it should be flexible and adaptable to the changing objectives of
enterprise. Because of the great variety of organisations in existence, there can be
no standard principles which could be followed in all individual circumstances.
However, there are certain principles which have more or less universal application
and which may be used as guidelines for organising an office. The task of the office
manager in planning organisation becomes easier if he takes into consideration the
following general principles of organisation:

1. Principle of Objective: The objective of an enterprise should be clearly

laid down. Within the enterprise, there should be unity and uniformity in the policies
and objectives of different departments so that every part of the organisation,
including the office, is geared to the attainment of these objectives. Not only should
the objectives be stated in clear terms, the method of achieving them, too, should be
indicated in detail and in precise terms so that the organisers may know the type of
organisation that is needed.

2. Principle of Inter-Related Function: Because organisations no longer

have mutually exclusive function, but rather integrated functions, the functional-area
(for example, sales, production, finance, marketing and personnel) are interrelated.
Because of the inter-relationships of the functions, the objectives of one function
must be consistent with the objective of other functions. Further, similarities
between various activities should be used as the basis for determining the function to
which each activity belongs. Otherwise co-ordination between the activities will be
seriously hampered.

3. Principle of Definition: The duties, responsibilities, authority and

relations of everyone in the organisational structure should be clearly and completely
defined, preferably in writing. An individual will accomplish a task in a given period
when the responsibility for that task is fixed upon that individual.

4. Principle of Work Assignment: The work assignment for each

individual in the organisation should take into consideration the special strengths and
talents of the individual. This means that an individual should be given an
assignment commensurate with his or her ability and interests.

5. Principle of Span of Control: The maximum number of employees or

subordinates that I can be supervised effectively by a person is known as the span of
control. The span of control should be limited to a reasonable number according to
circumstances. A span of control of 6 subordinates has been considered to be the
most desirable.

6. Principle of Unity of Command: The core of this principle is that a man

can serve Only . i one boss. It means that instructions and directions to a
subordinate must come from one person j only. Each subordinate must have one
superior, to whom he should be answerable. This helps in avoiding conflict in
command and in fixing irresponsibility.

27
 7. Principle of Chain of Authority (The Scalar Principle): The chain of
authority or command; refers to the formal specifications' of 'who reports to whom'
within an organisation. The chain of ; authority must be clearly defined for sound
organisational purposes. Every subordinate must know who his superior is and to
whom policy matters beyond his own authority must be referred to for decision.

8. Principle of Commensurate Authority and Responsibility: According

to this principle, when an individual is responsible for a certain task, he should be
given the authority to carry out that task. Without commensurate authority and
responsibility, he cannot be held accountable for the unsuccessful completion of the
tasks because he has very little control over the situation.

9. Principle of Ultimate Responsibility: The responsibility of a higher

authority for the acts of his subordinates is absolute, that responsibility to his worker
to do a given job, and the worker -. commits a mistake, the supervisor is the one
accountable to his superiors. He cannot escape responsibility by saying that the
mistake was committed by a particular worker.

10. Principle of Flexibility: The structure of an organisation must be

flexible so that adjustments, necessitated by changed circumstances, may be
planned and incorporated in it.

11. Principle of Division of Work: Specialisation in organisational

functions is necessary for the most effective attainment of objectives. Specialisation
depends on division of work. The total activities of an enterprise should be divided
and grouped into departmental, sectional and individual activities to facilitate division
of work.

12. Principle of Discipline: Discipline is vitally important in all types of

organisations. In its absence, it is difficult to achieve success.

13. Principle of Continuity of Operations: The form of an organisation

should be such that it facilitates the continuous performance of all the activities
necessary for the continuance and growth of the enterprise.

14. Principle of Employee Participation: Employees should be ncouraged

to participate as much as possible in the decision-making process. By encouraging
participation, employees are given recognition, and are motivated to work harder.
But in spite of participation by employees in the decision-making process, the
ultimate responsibility for the decision must rest with the manager or supervisor.

FORMAL AND INFORMAL ORGANISATION

On the basis of the inter-relationship of individuals, an organisation may be

divided into two categories, viz., formal organisation and informal organisation.'

28
 Formal Organisation: A formal organisation is one in which position,
responsibility, authority and accountability at each level is clearly defined. In such an
organisation, authority is delegated from higher to lower levels, and the whole
structure is designed to accomplish the objectives of the organisation. A formal
organisation is bound by rules, systems, procedures and methods as laid down by
the top management from time to time. According to George R. Terry, there are four
basic components of a formal organisation.'

(i) The work — which is divisionalised;

(ii) Persons — who are assigned to and perform the divisionalised jobs;

(iii) The environment — under which the work is done; and

(iv) The relationships — among persons or work units.

A formal organisation is systematically planned and is based on the principle

of the delegation of authority and the principle of responsibility. It makes use of
organisation charts and attempts to maintain a balance among the various types of
work to be done, each being given the importance that its true value deserves. The
advantages of formal organisation include:

(i) Avoidance of role conflict;

(ii) Avoidance of overlapping of authority and responsibility;

(iii) Advantages of specialisation;

(iv) Defining and standardising systems, rules, policies and procedures of

an enterprise, etc.

Its limitations are:

(i) It does not recognise informal relationships;

(ii) It creates problem of communication;

(iii) It emphasises structure rather than people.

Informal Organisation: An informal organisation always exists together with

a formal organisation in every enterprise. In an organisation, people evolve informal
groups among themselves which are bound together by common social,
technological work or other interests. Such groups make up an informal organisation.
According to Davis,4 "an informal organisation is that network of personal and social
relations which is not established by formal organisation." It is an accepted fact that

_______________________________
4. Keith Davis: op. cit.

29
wherever people work together, social relationships and groupings are bound to
arise on account of their frequent contact with one another which give rise to informal
organisations. Such organisations are not needed by formal organisations, and
therefore they find no place in organisation charts or manuals. They establish their
own unwritten rules, which are usually followed by individuals in the informal group.
Informal organisations are never definite and have no structure like that of a formal
organisation; but they form an integral part of formal organisations. The advantages
of an informal organisations are:

(i) It provides a useful channel of communication;

(ii) It covers the deficiencies of the formal organisation;

(iii) It influences the formal organisation to work carefully; and

(iv) It brings about mutuality among group members who derive job
satisfaction by an exchange of ideas and .views, etc. .

Its limitations are:

(i) It may tend to act on the basis of mob psychology;

(ii) It may be a source of rumours or wastage of time;

(iii) It may tend to oppose change.

The informal organisation is a reality in every enterprise, and every office

manager should accept this fact. He should utilise it -as a part of the total
organisation; as an effective channel of communication; as a forum for the exchange
of idea; and as an instrument for obtaining support from the informal group. As a
matter of fact, informal organisations are complementary to formal organisations and
are in no way less important.

TYPES OF ORGANISATION

The process of organisation involves the grouping of activities and the

establishment of authority relationships among these activities. But even this is not
enough. The various activities have to be necessarily coordinated for the
accomplishment of organisational objectives. A clear understanding of the authority
relationships as they exist in the formal organisation structure is therefore vital to the
successful organisation of an enterprise. There can be four types of these
relationships in an organisation; or in other words, there are four different types of
organisations, viz.,

30
 (i) Line organisation;
(ii) Functional organisation;
(iii) Line and staff organisation; and
(iv) Committee organisation.

1. Line Organisation

It is the oldest as well as the most common type of organisation. It is also

known as the scalar organisation or military type of organisation, as this type of
organisation is usually found in the army. It is also known as. the vertical or direct
organisation, for the lines of authority and responsibility in these organisations are
direct. Line authority is the direct authority which a manager exercises over his
subordinates. Under this form of organisation, authority flows vertically from the
person at the top to the lowest man in the organisation. The authority is highest at
the top and diminishes through each successive level down the organisational scale.
Line authority thus sets up a chain of superior-subordinate relationships throughout
the organisation. (See Figure, Line Organisation).

A line organisation may either be pure or departmental. In a pure line

organisation, activities at one level are the same, with each man performing the
same type of work: and the divisions exist solely for purposes of control and
direction. In a departmental line organisation, the activities and workers are divided
into several departments on a functional basis (production, purchase, sales, etc.)
and the authority flows downward from the chief executive through departmental
managers to the lower subordinates.

Advantages of Line Organisation: The advantages of a line organisation

are:

(i) It follows the principle of the chain of command and single

accountability.

(ii) Authority and responsibility are clearly stated and identified.

(iii) Effective control can be exercised over supervisors.

(iv) Discipline is no problem.

(v) It ensures flexibility and quick action.

(vi) This form of organisation is simple, uncomplicated and easily

understood.

Disadvantages: This disadvantages of a line organisation are:

(i) It is rigid and suitable only for small enterprises where the number of
employees is small.

(ii) The entire organisation becomes dependent on a few line superiors or

31
 executives. Their absence may be fatal to the organisation.
(iii) The services of functional specialists are not utilised Specialisation is
difficult to practise.

(iv) It is sometimes characterised by an absence of team work, of working

together towards a common end.

(v) In such an organisation, managerial planning, research and

development activities may be neglected because of greater reliance
on line authority.

2. Functional Organisation

In a functional organisation, authority does not flow from top to bottom, as. it
does in line organisation. Instead, activities are divided according to functions
(production, finance, sales, etc.) A specialist is placed in charge of each function or a
group of related functions. The specialist, who may be called a functional manager,
has control over the functions in his charge, no matter where those functions are
found throughout the organisation. For instance, the purchase manager is in charge
of the purchasing function; he will control this function wherever it exists in the
organisation. This functional authority includes line authority with reference to a
specified function. In such an organisation, consultation with the functional authority
becomes necessary for decision-making. "However, the functional authority is
confined to "functional advice or guidance.* The staff working in the various
departments continues to be accountable to its respective line superiors.

Advantages of Functional Organisation: The advantages of a functional

organisation are:

(i) Expert or specialised knowledge is efficiently utilised.

(ii) Line authority is relieved of taking specialised decisions.
(iii) It facilitates work specialisation.

32
 Fig. 3.2 Delegation of Authority
(iv) It makes for uniformity of decisions.

(v) Since the departmental executive and his subordinates have to perform
a limited number of activities, it ensures higher efficiency.

(vi) It facilitates standardisation of operations, methods and equipment.

Disadvantages: The disadvantages of a functional organisation are:

(i) Subordinates get orders from different bosses. The principles of single
accountability and unity of command do riot apply.

(ii) Operating subordinates as well as functional specialists are often

overburdened.

(iii) It affects the position and status of the line authority in the organisation.

(iv) It makes management rigid and inflexible.

(v) Co-ordination becomes difficult to achieve.

(vi) Problems "of discipline get complicated at lower levels of the

organisation.

3. Line-and-Staff Organisation

Like the line organisation, a pure functional organisation is rarely found in

business houses. However, the basic principles of both the line organisation and the
functional organisation have been combined in another form of organisation known
as the line-and-staff organisation. In business, this form of organisation is very
popular. In the line-and-staff organisation, a combined approach of the line
organisation and the functional staff organisation is made. It is an extension of the

33
line organisation in which one or more of the ancillary services have been
functionalised. According to E.F.L. Brech, "It is in fact a mixture of direct executive
responsibilities with the specialist ancillary services."

In a line-and-staff organisation, the line executives or supervisors assume the

power of command and direction in the enterprise, while staff managers merely
serve in an advisory capacity and do not play a directive or executive role in the
organisation. Line executives act independently in the enterprise; but, for certain
matters requiring specialised knowledge, they need the help of staff executives. Line
executives may, under certain circumstances, act on their own and even against the
advice of staff executives, for they are directly accountable to the executives at the
higher levels in the organisation. It is desirable to have a harmonious relationship
among the line-and-staff authorities.

34
Types of Staff

(a) General Staff: Such staff is located at the head office/central

office/corporate office to assist and advise top management on problems faced by
the organisation in general and shared by different departments.

(b) Specialised Staff: It refers to an arrangement where each line official has
an adviser or personal assistant. Such staff provide advice and service to the line
executives with whom they are attached.

Advantages of Line-and-staff Organisation: The advantages of a line-and-

staff organisation are:

(i) It enables an enterprise to secure the full benefits of the specialised knowledge of
its staff.

(ii) It permits line personnel to concentrate on the basic activities of the business
because the necessary advice and services are provided by the staff. It thus
improves efficiency and performance.

(iii) The principles of the unit of command and unit of direction are followed, for line
executives exercise full authority over their staff.

(iv) It facilitates executive training and management development.

Disadvantages: The disadvantages of a line-and-staff organisation are:

(i) It often creates confusion between line and staff executives.

(ii) If staff undermines line authority, or if line ignores staff's advice, a

conflict may arise, and the job of the chief executive may become
complicated. A lot of his time may be wasted in the resolution line and
staff conflicts.

(iii) Staff authority, because it is not responsible to a higher authority, may

act recklessly.

(iv) Line authority may, by not implementing the advice of the staff, make
the staff absolutely ineffective and redundant.

(v) The line department may not admit, and probably may not realise that,
without staff help, it would do a poor job.

(vi) The expensive staff personnel may become, a burden on the cost of
production if its services are not properly utilised.

35
 _______ Line organisation - - - - - Staff Organisation

4. Committee Organisation

The committee organisation is not an independent form of organisation but

generally functions in conjunction with some other form of organisation. The
formation of committees has become a usual and common feature of modern
organisations. Committees are found to exist in different areas and at different levels
of an organisational" structure, in both business and non-business organisations. It is
because of the fact that people react more favourably to a group decision than to the
single authority of an -individual. A committee has been defined as "a body of
persons entrusted with discharging some functions assigned to it as a group and in a
corporate capacity," According to Terry "a committee is a body of persons elected or
appointed to meet on an organised basis for the discussion of, and for dealing with,
the matters brought before it."

Committees may be temporary or permanent in nature; they may be named

ad hoc committees or special committees; they may be vested with line authority or
staff authority; and they may be created for a specific purpose or for general
purposes. Committees such as management committees, joint consultative

36
committees or works committees are ideally suited for the interpretation and
dissemination of policy or for the resolution of grievances or conflicts.

Group Decision-Making: The fundamental purpose of a committee is to obtain

a group opinion (or group decision) after a careful consideration of the facts
assembled by staff, executive or administrative management; to interchange ideas,
concepts and points of view of the members in selected groups; and to formulate a
joint decision based on a sound judgement of organised •facts. McGregor is of the
opinion that group decision-making proves to be more effective.

Purposes: Committees may be created for different purposes. They may be

created for the purpose of:

(i) Pooling facts, knowledge and experience on the part of several

executive members of the committees;

(ii) Determining broad policies;

(iii) Making it possible for employees to participate in decision making;

(iv) Securing the facility of communication and coordination between

executives;

(v) Giving representations to various groups in an organisation;

(vi) Making a continuous review and seeking an honest and objective

appraisal of the conduct of the business to make sure that all is well in
the organisation.

Most committees are,. however, either decision-making or problem-solving

committees.

Types of Committees

1. Executive Committee: It is a committee having the power to act,

generally or specifically. It is, however more commonly a body with power to govern
or administer. It is coupled with the line authority.

2. Standing Committee: A standing or permanent committee is formed for

a specific purpose. It is a committee of a formal type and conducts the routine
business delegated to it at regular (weekly or monthly) meetings. Its examples are
the Finance Committee, the Transfer Committee, the Working or Consultative
Committee, etc.

3. Ad-hoc Committee: it is a temporary committee formed for a particular

purpose. It stops functioning as soon as its purpose is accomplished. "Fact-finding,"
or "exploration* or "investigation" committees usually come under this category.
When the purpose of an ad-hoc committee is accomplished, it reports to the
appointing authority and then ceases to exist.

37
 4. Joint Committee: It is generally formed for the purpose of co-ordinating
the activities of two or more committees. For instance, a joint consultative committee
may consist of representatives of the employer's and employees' committees. A
works committee or consultative committee is an example of this type of committee.

5. Office Committee: Office committees are those committees which are

entrusted with the task of office management. These committees may either be
Executive Committees, Standing or Ad-hoc Committees or Joint Committees.
Examples of office committees are: the Management Committee, the Finance
Committee; the Audit Committee, the Office Cost Control Committee, the Joint
Consultative Committee, etc. The purpose and functions of an office committee
depend upon its nature and the work assigned to it.

Advantages of Committees: The advantages of a committee are:

(i) A committee helps to clarify the thinking of an executive for it considers a new
plan or project, expresses divergent views, and points out possible
drawbacks.

(ii) Committees usually take more time to come to a decision than a single
individual. Hasty decisions are, therefore, avoided.

(iii) Specialised knowledge can be applied to the business for which the
committee is appointed. It helps in a more efficient and effective performance
of business functions.

(iv) Business can be considered in greater detail at committee meetings than at

full Board meetings,

(v) Committees provide a platform for an exchange of ideas, information, facts,

etc. They have an educative value. They can be used to train young
executives to analyse and appraise critical and typical situations,

(vi) Committees prevent the concentration of authority in one individual.

(vii) A committee is a useful device for co-ordinating business planning, for the
execution of business policies, and for an effective communication between
the executives of various departments or functions.

(viii) Group discussions at committee meetings may lead to the emergence of new
Ideas.

(ix) Committees provide representation to various interests in the organisation.

They generate a climate of involvement on the part of various sections in the
organisation.

38
Disadvantages: The disadvantages of a committee are:

(i) A committee takes too much time in discussion before any .decision is
reached. "Often, time is wasted because its members have not been told
precisely what the committee is to do; so their discussion wanders."

(ii) Committee Management has been criticised because of its lack of initiative, its
inactive decisions, its irresponsible character, its compromising attitude; and it
involves a waste of time and money.

(iii) Committees are often responsible for slow and time-consuming procedures
which result in delayed decision. In the event of a difference of opinion, a
committee might recommend a further study of the matter referred to it. In the
meantime, a business opportunity may vanish.

(iv) A weak and inefficient management often takes shelter behind a committee,

(v) None in a group decision can be made accountable in case the decision
handed down by a committee turns out lo be wrong.

(vi) By delegating too much of its power to a committee and by the consequent
loss of control over it, the Board or the appointing body's authority may be
weakened.

(vii) A committee often tends to be dominated by a few persons or by individuals,

in which case its decisions or recommendations are, in fact, the
recommendations and/or decisions of only a few persons and not of the
committee.

(viii) Members of a committee often come to a compromise as a result of the

bargaining procedure rather than provide a synthesis of the best ideas of its
members. In such a case, a committee does more harm than good to the
organisation.

(ix) A committee weakens future executives. They rely on committees for

decision-making and are reluctant to make decisions or take responsibility.

SELECTING TYPE OF ORGANISATION

To select the right type of organisation is not an easy job. While deciding
about the type of organisation, the management should consider the following
factors:

1. Nature and Size of Business: The size of the business is the most
important factor. If a business is small, there are few management problems; and
therefore, a simple type of organisation (line organisation) would be suitable. But in a
large business, which has a number of departments or sections and whose activities
are various and many, the complexities of management problems call for a more

39
complex type of organisation, e.g., a functional or, a line-and-staff organisation.
2. Period of Establishment: An old established business is in a better
position to evolve and develop its own kind of organisation over the course of years
than a newly established business. A greater effort is required to set up even a
simple type of organisation in a newly-established business.

3. Continuity of Work Flow: An enterprise with a steady flow of business

throughout the year needs a more complex and permanent type of organisation then
does a firm whose business is of a seasonal nature.

4. Geographical Dispersion: When the different units of an enterprise are

located in the same premises or in close proximity to one another, a comprehensive
and complex type of organisation is suitable. On the other hand, if different units are
located at distant places (hundreds of miles apart from each other), simple forms of
organisation are best suited, as each of the units will have to be organised.

5. Staff Strength and Degree of Mechanisation: The degree of

mechanisation, the total strength of the work force and the ratio of unskilled workers
to supervisory staff, the span of control and the levels assigned to different functions
must also be considered while selecting a particular type of organisation. .

ORGANISATION CHARTS AND MANUALS

It is not enough to set up an organisational structure and establish an

executive-subordinate relationship. The structure of an organisation must be
constantly analysed and critically examined to find out whether any defects have
developed in it and to enable the management to plan a better organisational
structure. It is equally important that the organisational structure and lines of
authority, etc., should be clearly demarcated and understood by all concerned. This
is facilitated by the use of some basic tools and devices, such as organisation charts,
organisation manuals, etc.

Organisation Chart

An organisation chart is a diagrammatical form which shows the important

aspects of an organisation, including the major functions and their respective
relationship.5 According to Ernest Dale. "An organisation chart is a diagram of the
formal authority structure." It depicts an organisation's formal structure by illustrating
the formal relationships between various individuals, departments or units. It is also
useful for illustrating the lines of authority and responsibility, work flow and span of
control. In essence, an organisation chart indicates "who reports to whom." It
provides a bird' eye-view of the relationships among the various members of the
organisation. According tc Leffingwell: "An organisation chart is a plan of working
relationships. It shows who is to do th< work that is to be done and who is to direct
and supervise the efforts of those who are to do the work." J.C Denyer calls it "a
graphic representation of an organisation structure."

_________________________

40
5. George R. Terry, op. cit.
Since' an organisation chart illustrates hierachical relationships, it may be
most logically constructed by starting at the top and working downward. Therefore,
the major functions of the organisation must first be identified. Secondly, the
secondary functions within each of the major functions should be identified. If the
secondary functions consist of other sub-functions, these also should be plotted on
the chart.

Types of Organisation Chart: On the basis of the pattern of structure, organisation

charts may be of three types:

(i) A functional organisation chart — it shows the function of different

positions in the organisation;

(ii) A personnel- organisation chart — it depicts the positions held by

different individuals;

(iii) A master organisation chart — it shows the functions of different

positions in the organisation together with the names and designations
of individuals holding these positions.
On the basis of construction, an organisation.chart may be of anyone of the
following types: '

(1) Vertical Charts: These charts show the organisation structure in the
form of a pyramid. The line authority is shown clearly in such charts,
ranging from the top to the bottom level in vertical lines.

(2) Horizontal Charts: For all purposes, these are similar to vertical charts,
with the difference thdf the organisational structure is shown in a
horizontal shape rather than in a vertical position. The authority flows
horizontally instead of vertically.

(3) Circular Charts: In these charts, the structure of the organisation is

shown in a circle. These can be used to show the respective spheres
of responsibility by cutting the circle into various segments.

Contents of Organisation Charts: An organisation chart may contain a

variety of information. But, generally speaking, it includes the following:

(i) Structure of the organisation;

(ii) Flow of authority;

(iii) Spheres of responsibility;

(iv) Line-and-staff relationships;

(v) Names and status of personnel in different positions;

(vi) Number of personnel, proposed promotions, or transfers, salary data

etc., of the employees.

41
 An organisation chart should be as simple as possible, for as soon as it
become complicated, it may defeat the purposes for which it is created.

Advantages of an Organisation Chart: The advantages of an organisation

chart are:

(i) It shows the whole organisation structure at a glance, thus aids in an

analysis and review of the structure.

(ii) The chart helps to portray the type of organisation in being, define the
spheres of authority. It shows the different levels of management and their
relationships with one another. Even when individuals or departments are on the
same administrative level, a chart helps to show their relationships.

(iii) It is a tool which enables the administration to tell its employees how their
position fit into the total organisation and how they relate to others:

(iv) It enables the management to locate the defects, if any, in the

organisation. For example, it may show weak lines of communication, overlapping
authorities, unattached staff, faulty organisation, etc., and to that extent can help
expose the faults in the management set-up.

(v) An organisation chart comes in use when new staff is told of the type of
organisation they are working in and their part in it.

(vi) The chart indicates the promotion opportunities available in an enterprise

and serves as a valuable guide in identifying the areas which are suitable for training
and development.

Disadvantages: The disadvantages of an organisation chart are:

(i) An organisation chart shows only the formal relationships and not the
informal or personal relationships among the employees in the
organisation.

(ii) A chart cannot indicate how much authority or responsibility is

allocated. This can only be obtained from job specifications.

(iii) An organisation chart may not be drawn accurately, particularly in so

far as different management levels are concerned. This would create
confusion and misunderstanding, ^ and may give rise to feelings of
unjustified superiority or inferiority.

(iv) When charts are available, employees tend to go by them rather than
by establishing cross-relationships to do their work in a most efficient
manner.

42
 (v) Charts often lack flexibility. New charts have to be made when any
change takes place in the organisation. It may not be easy to keep the
chart up-to-date. Some people argue that charts make it harder
for'them to change things; they freeze relationships; they show lines as
they are supposed to be and not as they are. Informal organisations
are left out of charts.

To sum up: "An organisation chart does not produce, either good or bad
management — it simply visualises the structure." To that extent, an organisation
chart is a "must" for every organisation

43
 OFFICE SPACE MANAGEMENT
(Office Accommodation)

"Although changing conditions in a locality may be beyond the control of the

designer of an office building, they are not always beyond the ability of a
thoughtful planner to predict" - LEFFINGWELL AND ROBINSON

Introduction

Every office manager is concerned about getting office work performed with
the maximum efficiency and at minimum cost. But this would be possible only if he
makes a proper selection of employees, gives them proper training and guidance,
and places them in appropriate jobs. However, if the office staff is to work efficiently,
it must be properly accommodated, have a good working environment, and should
be properly equipped. Suitable accommodation, modern equipment and proper
working conditions are not in any way less important factors in improving efficiency
and reducing costs.

The place of work and its surroundings are important factors which affect the
efficiency of employees to a large extent. Since the staff has to stay for long hours in
the office, and since it. mainly does brain work and/or concentrates on the repetitive
and monotonous activities of filing, indexing, despatching, reporting etc., its
inefficiency would normally be greater in those offices where accommodation is
sufficient and the environment and working conditions, are congenial.

Principles

While deciding about, office accommodation, the office manager should bear
the following principles in mind:

(i) The office must be located at some convenient place so that it may
serve the entire organisation in the best possible manner.

(ii) Office space should be sufficient from the point of view of the present
and future needs of the organisation.

(iii) Due provision should be made for the conveniences and amenities
required for the comfort and well-being of the staff, e.g., Washing room,
rest room, water coolers, canteen, etc..

Service facilities like telephone, lift, internal communication, etc., should be

available in the office, while others like banking, transport, market, post office, etc.,
should be available near the office premises.

44
 LOCATION OF OFFICE

Every office manager should give a full and proper consideration to a suitable
location for his office. This location or site is an important consideration because an
unsuitable location may result - in a waste of resources and efforts and loss of time,
inconvenience to the office staff as well as to the persons dealing with it. The
problem of location arises under one or the other of the following conditions:

(i) At the time of starting a business enterprise.

(ii) The increased volume of work may require a change of office location.

(iii) The facilities provided in the original locational plan are no longer
sufficient for the expanding business, and, therefore, the entire
expansion of the existing office or a new location is necessary.

(iv) The lease for the office premises has expired and the owner of the
premises is not prepared to renew it.

(v) Shifting of the business by the business enterprise from one place or
one State to another.

Principles of Location1

Decisions regarding location and buildings are not made frequently by any
firm; but when they are made, they have far reaching consequences. These are
some of those very important decisions which make the difference between success
and failure of the business. While deciding about the location of an office, the office
manager should bear in mind the following principles;

(a) When the office staff is small, the office may be located in the same
building where the other activities of the enterprise e.g.,. manufacturing, sales, etc.,
are carried on.-

(b) When the office staff is large, the office should be located in a separate
building. In such a case, it is advisable to centralise office activities.

(c) When all the business functions are carried on at one location, it is better
that the office should be in the same location so that it may serve most efficiently all
the functions of the business. But when different functions are located at different
places, it should be located at some central place or in or near the premises of the
main function of the business.

(d) In other cases, the decision on location should depend on the factors
governing the location.

________________________
1. 'The location of office is directly dependent upon the location of the firm and the decision on
location of firm is based on a wide range of factors.' — Forster.

45
Choosing an Office Location2

Since the main purpose of an office is to facilitate the conduct of the business,
its proper location depends primarily upon where it can be of most benefit to the
business. There are five choices:

1. When all the functions of the business are carried on in one location,
the office can best serve the business by being in that location only.

2. Which function of the business does the -office serve most? If financial,
then the office would be near the financial head.

3. If the office serves the sales function most, then it should be located
near the sales head quarters.

4. If the office serves the production or manufacturing function most, it

should be located near that function.

5. If the nature of the business does not require the office to be located
near any of the main functions of the business, than the decision as to
its location may depend upon factors in no way related to the conduct
of the business: Character of the neighbourhood, daylight available,
transportation, fresh air, cleanliness, rent etc.

URBAN VERSUS SUBURBAN LOCATION

The most important point to be considered in the location of an office is

where it should be situated - in an urban area or - in a suburban area. Many types of
organisations - banks, insurance companies, transport, finance and trading
companies - generally prefer an urban location. They prefer a central location rather
than an out-of-the-way .or remote location. However, recent trends among many
industrial and other organisations have been to set up offices in suburban areas or in
small cities and towns. The relative merits and demerits of these locations are now
discussed:

Urban Location

Merits: The merits of an urban location are:

(i) Proximity to related trade/offices;

(ii) Nearness to service facilities like banks and post offices;
(iii) Easy access to customers;
(iv) Availability of communication facilities;
(v) Better transport facilities;
(vi) Prestige value to the organisation;
(vii) Abundance of recreational and municipal facilities.

______________________________

46
2. Adapted fro'm Leffingwell and Robinson: Textbook of Office Management, 3rd Ed. p. 32b.
Demerits: The demerits of an urban location are:

(i) High rent, rates and taxes;

(ii) Traffic congestion and overcrowding;
(iii) More noise, dust and fumes;
(iv) Less scope for expansion;
(v) High cost of living for employees (necessitates payment of more house
rent, dearness and city compensatory allowances, etc., to the
employees),
(vi) Polluted and unhygienic environment.

Suburban Location

Merits: The merits of a suburban location are:

(i) Accessibility to customers;

(ii) Nearness to main transport routes;

(iii) Low rent and taxes;

(iv) Less congestion and less overcrowding;

(v) Quiet and hygienic environment;

(vi) Much scope for future expansion and modernisation;

(vii) Lower cost of living (lower payments for house rent, dearness
allowance, etc., to employees).

Demerits: The demerits of a suburban location are:

(i) Lack of communication facilities;

(ii) Lack of service facilities like banks and post offices;

(iii) Lack of adequate transport facilities;

(iv) Lack of recreational and municipal facilities.

In deciding about the actual location of an office, a balance should be struck

between the merits and demerits of urban and suburban locations. In most cases,
the choice depends upon the cost aspect in terms of the advantages accruing from a
particular location, in some cases, however, the location is decided by the whims
and fancies of the top management.

47
Factors Affecting Location3

It is rather difficult to lay down any hard and fast rule about the location of an
office, for a desirable location is usually determined by the requirements of each
business. Different kinds of offices require different locations. However, the following
factors should be taken into consideration in choosing an office location.

1. Proximity to Related Trade: It is often desirable to have an office near

other offfces which are engaged in the same line of trade or near the centre of
general business activities. Such a location enjoys the advantages of localisation.
For instance, share and stock brokers' firms are grouped around stock exchanges. In
such cases, the saving of small amount of money annually by locating the office
away from the business centre would be false economy, for that would lead to a
substantial loss of business and waste of time.

2. Proximity to Other Departments: When all the functions of a business are

carried on at one location, the office should be located in the same location. But
when different functions are carried on at different places, the office should either be
located at some central place or at" the location of the main function of the business
so that it may function in a better and more effective way.

3. Nearness to Service Facilities: The office building should be located near

such service facilities as banks, posts and telegraph offices, railway stations,
markets, trade or stock exchanges, etc. When an office handles large amounts of
cash, it may be located near a bank. Similarly, an • office engaged in mail order
business should be located near a post office. Further, the office should be located
at such a place which does not get dust, noise, fumes and is not overcrowded. Noisy
surroundings full of dust and fumes adversely affect the efficiency of the staff.

__________________________
3. Forster classifies the factors into two categories:
A. Tangible Factors: These are likely to include market, raw material, transportation,
labour supply, power, local laws, regional and local development, living conditions
and communicating problems for employees, availability of suitable local sites etc.
B. intangible Factors: These include availability of business facilities, nearness to
customers, opportunity for intra-company contacts, communication and other
facilities, prestige and safety etc.

48
COMPARATIVE CHART FOR SELECTING AN OFFICE LOCATION

Importance Alternative A Alternative B

Factors of factor Desirability Weighted Desirability Weighted
A of factor value of factor value AB,
B AB B,
1. Cost of Land 5 3 15 4 20
2. Cost of building
3. Cost of Construction
4. Physical feature of building
5. Condition of building
6. Feasibility of building
expansion
7. Office Environment
8. Availability of supplies
10. Parking facilities .
11. Availability of eating
facilities
12. Availability of banking
facilities
13. Availability of postal
facilities
14. Availability of transportation
15. Availability of housing
16. Availability of shopping
17. Adequacy of utilities
18. Adequacy of police
protection 1.9. Adequacy of
fire protection 20. Tax rates
21. Insurance rates
22. Cost of fringe benefits
23. Cost of labour
24. Importance of address
prestige
25. Location of competitors
26. Effect of move on clientele
27. Character of other tenants
28. Others

______________________________
4. Adapted from Zane K. Quible : Op. cit. pp. 58-59

49
 Importance of Factor Code Desirability of Factor Code:
5 - Very Important 5 - Very Desirable
4 - Fairly Important 4 - Fairly Desirable
3 - Average Important 3 - Average Desirable
2 - Not very Important 2 - Not very Desirable
1 - Unimportant 1 - Undesirable
0 - Not appropriate 0 - Not appropriate

4. Nearness to Transport Facilities: The locality in which an office is

situated must be adequately served by transport services of all kinds. This is
necessary for the convenience of the office staff and customers or persons dealing
with the office as well as for the smooth operation of the business of the enterprise.
In certain types of business, the location of an office near a railway station or a port
or a bus or air terminal is of special advantage to the business.

5. Accessibility to Factory or Warehouse: Many industrial houses set up

factories outside the town so as to secure:

(a) Raw materials in nearby places;

(b) Other essential conditions;
(c) Cheap land; and
(d) Freedom from restrictions, etc.

In such a case, those sections of the office which are engaged in production
and despatch, designing, processing, accounting and costing should be maintained
near factories or warehouses, while the sales offices may be maintained in urban
areas.

6. Availability of Labour: Large offices generally employ different types of

personnel, e.g., supervisors, stenographers, typists, cashiers, clerks, computer
programmers, data processors, telephone operators, guards, security men, etc.
When specialised labour is required and when such labour is mobile, an office may
be located near the source of such labour. However, in most cases, because of
large-scale unemployment and underemployment in the country, this factor does not
play any significant role in the determination of an office location.

7. Building Restrictions: If the purchase of a building for the office is

contemplated, the office manager must ascertain before hand whether there .are any
restrictions on building, or the use to which the building may be put, either in the
conveyance deed or in any local municipal rules and regulations or in any State or
Central legislative enactments. In the presence of any such restrictions, the decision
of office location may have to be changed.

50
 THE OFFICE BUILDING

The problem of choosing the right location for the office premises is as
complicated as that of getting a proper and suitable building to accommodate it. The
office building should not only be of a proper size and shape, it should also be
of such design as to serve the particular needs of the enterprise. Often, it is rather
difficult to get a building which is exactly suited to the requirements of the
organisation . The management should try to obtain such premises which fulfil its
requirements in the best possible manner.

Ownership versus Lease

The first thing the management has to decide about is whether to own the
office building or to rent it or lease it. Where should the constructed building be
bought? Should a plot of land be acquired and a building appropriate to the
requirements of the organisation put upon it? If a constructed building is bought, it
may be adopted or altered according to the requirements of the enterprise. The
construction of one's own office building may be necessitated in the following
circumstances:

(i) When the business is large and well established;

(ii) When the demand for the procedures or services of the organisation is
of a relatively stable character;

(iii) When there is a cost advantage in the construction of the business

premises;

(iv) When a specific type of building is required for office purposes; e.g.,
centrally air-conditioned, sound-proof or specially constructed for
housing .computers etc.

When an office building is constructed, it should be planned and designed to

fit the exact requirements of the organisations. Generally speaking, a bigger area is
constructed than is required . for the immediate needs of the organisation so that
there may be scope for future expansion. In such a case, if there is surplus space, it
may be rented out to others to provide a steady income. An owned office building
may be given the name of the organisation, which thus acquires some sort of
prestige. However, the financial expenditure involved in buying or constructing a
building is a very important limiting factor.

For small and even medium-scale organisations, buying or constructing an

office building may not be worthwhile because of the financial constraints involved in
it. The opportunity cost of the capital involved, the municipal and other taxes and the
maintenance cost of owned buildings may be too much for a small-scale
organisation. Moreover, land for the construction of the building may not be available
in desired localities. In such cases, the only alternative is to rent or lease an office
building.

51
 The main disadvantage of a rented or leased building is that it may not satisfy
the particular requirements of the organisation. However, if possible, the plan of such
a building may be modified or altered to suit its requirements. At the same time, it
should be borne in mind that some advantages flow from the possession of a rented
or leased office building. These are:

(i) It allows the management to select the office space in accordance with
the financial capacity of the organisation.

(ii) It enables the management to shift the office to a newer and better
location as and when necessary.

(iii) In the event of expansion, a larger building may be hired or another

office may be set up at a new or nearby location.

(iv) By renting or leasing accommodation, the management avoids the

burden of the payment of municipal taxes and of maintenance costs,
etc. The capital required to construct an office building may be
channelled into more productive uses. The time required in
conveyancing or construction can be saved.

(v) To rent or lease a building is perhaps the best alternative for new and
small organisations.

Factors in Selecting Office Premises5

The following points should be kept in mind while selecting office premises:

1. Safety of Records and Staff: The safety and security of office records
and of the personnel employed in an office building is most desirable. The office
building should have the advantage of a fire proof construction, fire escapes,
automatic safety devices, etc.

2. Working Conditions: The office building must provide good and

satisfactory working conditions. Facilities for water, lighting and ventilation should be
available. The building should be free from dust, noise, fumes and obnoxious smells.

3. Adaptability to Proposed Layout: It should be capable of being

modified or altered so that different sections of the office may be properly housed in
it.
4. Office Fittings: It should be adequately provided with electricity, power,
telephone, water connections and other fittings.

_______________________________
5. Leffing well and Robinson (Text book of Office Management) lists out the following factors that
should be considered in selecting office building :
The characteristics of the building, the building facilities, the proximity of the office building to
business factors, the cost involved, stability of tenants, adaptability of space, natural lighting and

52
 ventilation provided, freedom from dust and noise, favourable impression on visitors and general
public, provision for employees' comfort and health, facillitation of working processes.
5. Future Expansion: It should offer enough scope for future expansion.
When a building is owned or constructed by the organisation, provision should be
made for additional floor for future expansion requirements.

6. Type of Building: 6 "It may not be advisable to take a building divided into
rooms which, even if suitable when taken, will not lend itself to reorganisation.* The
most suitable type of office building is that which provides completely open space
other than the supporting columns, and temporary partitions which can be removed,
if required.

OFFICE LAYOUT

After acquiring the building for the office, the next important task before the
office manager is office space planning or office layout. According to Littlefield,
"Office layout may be defined as the arrangement of equipment within the available
floor space." It can be described as the arrangement of different departments,
equipment and men within a given floor space with a view to make optimum
utilisation of space and ensure maximum efficiency of the office.

G.R. Terry defines office layout as, "The determination of the space
requirements and of the detailed utilisation of this space in order to provide a
practical arrangement of the physical factors considered necessary for the execution
of the office work within reasonable cost."

According to Hicks and Place, "The problem of layout relates to the

arrangement in the space involved so that all the equipment, supplies, procedures
and personnel can function at maximum efficiency." The object of an office layout is
to make arrangements for the placing of men, materials, machines, furniture and
equipment within the available floor space of the office in such a way that everything
can be utilised in the best possible manner. An office layout involves:

(i) The determination of the correct amount of space for each employee
and for machinery and equipment they use;

(ii) The correct arrangement of furniture, equipment and machinery; and

(iii) The best possible environmental conditions.

_______________________________
6. The office building must ensure that :
(a) There is sufficient floor space to provide for each worker and furniture required by him.
(b) Facilities for fresh air, water, lighting and ventilation are available as the absence of these
affects the efficiency of the workers.
(c) The service facilities like telephone and lights are available in the building and others like
banking, transport, posts and telegraph etc are also available nearby.
(d) There is scope for renewal and alterations in the building and more space can he created if
required in future; and
(e) The facilities of general conveniences, toilets, canteen etc. are also available in the same
building.

53
Objectives of Layout

According to Mills and Srandingford, the layout of an office is the arrangement

of furniture, machines, etc., within the space available. Having regard to the
limitations imposed by the building, the objectives of an office layout are:

(i) The space should be used to the greatest extent;

(ii) Service should be available where needed including power and

telephone;

(iii) Good working conditions should be provided for everyone;

(iv) The supervisor should be able to see the staff at work;

(v) A sense of belonging and loyalty to the working group should be

fostered;

(vi) Communication and work flow should be facilitated;

(vii) The movement of clerks between desks, filing cabinets, etc., should be
made easy;

(viii) Noisy and distracting operations should be segregated;

(ix) Mutual interference between clerks should be avoided;

(x) Privacy and security should be provided, wherever necessary.7

Requirements of Efficient Layout

While studying the problem of an office layout, an office manager should
consider the size and shape of the available space, the number of workers to be
accommodated, the nature of jobs to be carried on, the type of equipment to be
used, the flow or routing of all types of work, allowance for peak periods and
expansion, the general comfort and convenience of employees, and the overall
effect of a good physical appearance.

The shape of the office is an important consideration. The building or office

space may. be square, rectangular, long and narrow or L or U shaped. It should be
remembered that a square or rectangular space is always better than a long or
narrow one, for the latter will necessarily require much floor .crossing and back-
tracking by the office staff and may not make for the most efficient utilisation of
space.
_______________________
7. Littlefield and Rachel etc. (Management of Office Operations, p. 204) lists down the following
objectives of office layout:
(J) Effective work flow; (//) Space that is sufficient and well utilised: (J/7) Employee comfort and
satisfaction; (iv) Ease of supervision: (v) Favourable impression on customers and visitors, (vi) Ample
flexibility for varying needs, and WO) Balanced capacity of equipment and personnel at each stage of
work flow.

54
 The layout should be planned in such a way that the available space-is best
utilised to secure -a regular flow of work, efficiency and economy in operation. An
unplanned layout is often uneconomical, for a faulty placement of office furniture and
equipment is likely to result in a waste of time and energy of the office personnel. An
efficiently planned office layout promotes the efficiency of the staff; properly utilises
the floor space; facilitates supervision; speed up intercommunication; ensures a
better use of office equipment and machinery; and is conducive to the employees'
comfort and morale. A badly planned layout has generally the opposite effects.

Principles of Office Layout

In order to reap the advantages of an efficient layout, an office manager

should bear in mind the following principles:

1. Location of Departments: He should identify the various departments in

the organisation and their relations with one another. Each department should be
allotted a convenient area, taking into consideration the possibilities of its expansion.
Departments which are closely inter-related .should be placed adjacent to each
other. Office services should be located in a place which is equidistant from the
departments that are served by them. The following points may be noted:

(a) The general office, which provides services to other departments

should be located at the central place.

(b) Departments dealing with the public (selling, buying, public relations
etc.) should be located near the entrance.

(c) The cash department should be kept separate.

(d) The accounts department, the drawing office, the designing department
etc., should be separated from the general office.

(e) All the departments using noisy equipment (typewriters, duplicators,

accounting machines, etc.,) should be grouped together and located at
a convenient place.

Such an arrangement of departments would minimise the time involved in the

movement of papers and of employees from one point to another.

2. Flow of Work: This is the most important principle of an office layout. Its
object is to ensure that the flow of work is as regular as possible: the layout,
therefore, should be in the form of a straight line, a circle or a U shape. Such a layout
would restrict the movements of employees and of papers to the minimum, and
make for maximum control on the part of the management. The layout should ensure
a continuous flow of office work; desks, equipment and men, should be so arranged
that the work will not require any backward movement ;'.e., there would be no criss-
crossing or back-tracking. The flow of work must be ensured, keeping in mind the
office systems and routines which have been devised for the performance of office
activities.

55
 3. Space Requirements for Staff and Equipment: Each employee should
be allotted sufficient I space to handle his work efficiently. Congestion in the office
may impair the efficiency of the staff.

The amount of space required by each employee should be determined by reference

to:

(a) The nature of his work;

(b) The size and shape of his desk, and the furniture and equipment used
by him;

(c) The space required to be maintained in between the desks to allow

free movement;

(d) The placement of windows, the number and location of columns and
doors;

(e) The space required for the storage of files, stationery, and other items;

(f) The number of private offices for executives etc;

(g) General facilities and amenities to be provided for the employees.

The following list of suggested space allowances should be helpful in most

situations:

60-75 square feet for a clerical worker

100-120 square feet for a supervisor
150 square feet for a junior executive
200 square feet for a senior executive
300 square feet for a department head
400-500 square feet for a top executive
4-5 square feet for a table
5-7 square feet for a small cabinet
6-8 square feet for a large sized cabinet
4 foot width for a sideway
5 foot width for main aisles.

4. Number of Private Offices: These are separate rooms, cabins or cubicles

which are partitioned off from the other parts of the office. Provision for private
offices should be discouraged and restricted as far as possible. Private offices
generally take two to five times, more space per employee in the general office work
areas. They require more space, and increase the expense on lighting/ ventilation,
heating, and do not easily lend themselves to a programme of expansion. Private
offices are generally provided for high officials or executives and for the following
reasons:

56
 (a) As a matter of prestige or status of the executives;

(b) For the performance of work of a confidential nature;

(c) For work requiring mental concentration;

(d) For visitors who come to see the executives.

The modern trend is to reduce the number of private offices and to provide
more open space for office work.

5. Use of Partitions: The use of partitions is becoming more popular these

days, for they provide flexible substitutes for private offices. They offer the following
advantages:

(a) They do not cause waste of space;

(b) They provide privacy without any interruption in flow of work;

(c) They facilitate supervision;

(d) They do not create problems of lighting and ventilation;

(e) They make it possible for the layout to remain flexible and be
conveniently adjustable.

6. Special Purpose Rooms: All good offices provide for a reception room
and a conference room. A reception room should be attractive and well-decorated,
and should be located near the entrance or the main gate. The conference room
should be provided for business executives to hold meetings for group discussions,
conduct interviews, etc. Such rooms should be located either on the top floor or at
some distance from the general office.

7. Safety: A good office layout should eliminate office hazards. It should

provide for an adequate number of exits. There should be no obstruction to the flow
of work, to exits or in the passage. Obsolete equipment, open drawers,
overcrowding, unguarded or unfenced machine may cause office hazards
(accidents); but these can be eliminated with proper care and precaution.

8. Provision for Amenities: While planning the office layout, provision of

amenities or facilities for the employees should also be made. These amenities and
facilities include telephone, lifts, washing rooms, toilets, rest rooms, cool drinking
water, canteen etc. These facilities should be provided at a central or convenient
place for all-the employees.

9. Flexibility and Expansion: An office layout should be capable of being

adjusted and expanded according to the requirements of the organisation. Provision
for the maximum workload rather than an average workload should be made from
the very beginning.

57
 The sketch given on page 95 shows the planned layout of an office.

Factors (Considerations) in Physical Layout

The following points should be considered in designing the physical layout of

office equipment, furniture, machines and employees:

(1) People who have to work together in one way or another should be
located near to each other.

(2) Telephones should be placed on the left hand side of the desk; if desk
space is limited, the telephone may be placed on a side table or on a
wall bracket near the desk or sitting place.

(3) Equipment or other items which are to be frequently used should be near
at hand. If constant reference to files is necessary, the desk should be
near the filing cabinet.

(4) Individuals or work groups in frequent contact with the public should be
located near the entrance of the premises.

(5) An office where visitors are likely to be seen often should be near the
reception point, if possible. Visitors should not be required to go through
other offices and distract the employees working in them.

(6) Adequate space for opening doors, between desks, for the movement of
equipment and for movement around the equipment — tor example,
duplicating machines and filing cabinets should be provided.

(7) Noisy equipment — for example, the telephone switchboard, teleprinter

and duplicating machines, etc.— should be located at a place where
their noise would not distract or disturb the other employees in their work
and where the operators, too, would not feel disturbed. Alternatively,
sound proof walls may be built to keep in the noise of machines. Heavy
machines should preferably be installed on the ground floor.

(8) If ventilation is through windows, clerical employees should not be

located near them, for then the papers on their desks would be blown
about.

(9) Employees dealing with work of a confidential nature should be provided

with adequate privacy and safety arrangements.

(10) The space near the elevators and entrances may be utilised for reception
and display.

(11) The area above file cabinets may be utilised for storage shelves, which
will reduce the need of private rooms.

58
59
 (12) Private rooms for secretaries .may be eliminated as they can be -
placed in groups in open rooms.

(13) Maximum utilisation of space should not be at the cost of safety and
flow of work.

(14) Toilets, cloak rooms etc., should be within easy reach of every
employee in the office.

(15) Departments or desks should be located or arranged as to facilitate a

continuous flow of i work, (e.g., departments dealing with successive
stages of the same matter so that papers regularly pass from one to
the other) should be located close together. For instance, the typing
section should be near the filing room and the despatch section, so that
files which have been dealt with may be replaced and

(16) Material for despatch handed over in each case with the minimum of
delay.

Preparing the Layout

After the above principles and factors of layout have been studied and
analysed; a scaled model of the floor plan should be prepared to show the details of
the office layout. The following steps should be taken while preparing a drawing of
an office layout:

(i) A drawing or blueprint of the available area should be prepared;

(ii) The areas of the main work or traffic movements should be

determined;

(iii) The inter-relationships between equipment, information and personnel

in the flow of work should be determined;

(iv) A plan of the flow of work, office systems and procedures and
hierarchical relationships between individuals should be prepared;

(v) Space for the reception room, the conference room and private offices
should be allotted;

(vi) Lighting, heating, ventilation and air-conditioning schemes should be

shown;

(vii) The types of furniture and equipment schemes and future expansion
plans should be indicated.

Once the drawing for the floor layout plan has been prepared, the exact
location of each piece of furniture and equipment should be determined. The layout
plans may be made with the following:

60
 (a) Templates: A template is a plastic or metal device with certain areas cut
out to indicate the size and shape of various types of desks, chairs, cabinets, files
and other office equipment. This device permits you to draw office furnishings and
equipment on the scale drawing on the-office floor plan.

(b) Cutouts: Cutouts are paper or plastic shapes cut to scale size that
represent the space required by each item of office furniture or equipment. Cutouts
may be purchased in packages or they can be made by hand. They are normally
pasted onto the scaled layout.

(c) Plastic Models: Plastic models are scaled models of various pieces of
office furniture and equipment. These models may be easily repositioned on the floor
plan. Their use facilitates the exploration of the various layout possibilities on a
layout board.

Re-layout

Re-layout means changing the existing layout i.e., planning the layout afresh.
A re-layout may become necessary for the purpose of improving the existing layout
or adjusting it to the changed environment. Dartnell8 has mentioned the
circumstances in which the present layout should be reviewed:

 When there is an increase or decrease in personnel;

 When the flow of work is changed by new, procedures;
 When more working space is required;
 When work piles up at one station while others wait;
 When work, is lost in transit;
 When employees complain of bad lighting or ventilation;
 When employees appear to have difficulty in moving about the office;
 When overcrowding of personnel and record room is apparent;
 When buying new equipment or replacing the old equipment;
 When there is a change in the organisation — when there are new
personnel, new authority and new responsibilities;
 When alterations to the space are to be made;
 Where there are lease difficulties;
 When functions have been added or taken away from a section;
 When the balance of the sexes changes radically;
 When some persons have been promoted.

_______________________________________
8. Dartnell: Office Manager's Handbook.

61
Layout Checklist

P.W. Betts 9 suggests the follow checklist for an office layout:

1. Avoid overcrowding.
2. Ease of daily cleaning.
3. Staff not facing directly into light.
4. Proximity of cloakrooms and toilets.
5. Comfortable furniture.
6. Non-slip floors and stairs.
7. Fencing any exposed moving parts of office machines.
8. Minimise staff movements.
9. Place filing cabinets near staff using them.
10. Group together staff with related activities.
11. Adequate space between desks.
12. Positioning supervisors at appropriate points.
13. Separate noisy machines from staff who are engaged in work requiring
high concentration.
14. Put close work near to natural lights.
15. Minimise paper movement by designing according to work flow.
16. Adequate space for main aisles and sideways.

Advantages of Good Layout

A good office layout offers the following advantages:

(1) Increase in Efficiency: A properly-laid out office promotes efficiency

as it follows the flow of work. The movement of employees and paper
follow the shortest route and this allows for smooth flow of work.

(2) Reduction in Cost: A good layout aims at making the most economic
and effective use of the available floor space. Thus it leads to cost
reduction in the office.

(3) Effective Supervision: In a good laid-out office, the amount of

supervision needed would be reduced to the minimum, thereby
reducing the burden of the supervisors and saving in the cost of
supervision.

___________________________________________
Office Management (Teach Yourself Books)

62
 (4) Optimum use of Machines and Equipment: A good layout provides
for joint use of machines and equipment. This is turn, reduces the
amount of investment in machines and equipment.

(5) Better and Speedy Inter-Communication: In a good laid-out office,

activities are placed in a sequence and flow the shortest route.' This
speeds up inter-communication.

(6) Lesser Costs of Office Systems: A properly laid out office tends to
reduce the cost of cooling, heating, air-conditioning systems as well as
their running and maintenance costs.

(7) Better Morale: A badly planned office increases employees' fatigue

and tension whereas a well planned office is conducive to their comfort
and morale. Good layout has a positive impact on employees' morale.

(8) Improves Goodwill: A well-planned layout projects an image of

efficiency to the outsiders visiting the office. This results in better
goodwill.

OPEN AND PRIVATE OFFICES

Open Offices

In planning the general office, one of the major decisions to be made is in

regard to the provision of separate rooms for the different departments or sections,
or for bringing them together into one large room or "open office". The modern
tendency is to adopt the open office instead of accommodating departments or
sections in separate apartments. An open office refers to a large room where all the
departments, men and equipment are housed under a single room without partitions
or walls separating them. Each department or section is allotted a separate space in
the same room, which is often demarcated by placing filing cabinets between them.
One or more gangways throughout the whole floor may be provided and desks may
be arranged facing one way so as to facilitate supervision and easy access. It should
be noted, however, that private offices are provided for top executives whose work
calls for secrecy and concentration.

Advantages of Open Offices: Open offices offer the following advantages:

(1) Economical: Since unnecessary partitions and corridors are avoided,

open offices make better utilisation of office space possible. It is a common
experience that nearly 25 to 33 per cent of the office space is taken up by walls and
partitions. Open offices enable the management to effect savings in rent and
reductions in the cost of office operations.

(2) Better Lighting and Ventilation: With the removal of unnecessary walls
and partitions, open offices allow a free flow of air and natural light, which step up
the efficiency of the office staff.

63
 (3) Better Supervision: Open offices encourage better work through better
supervision and; easier operation. Only a few supervisors are required to supervise
the staff. The worker faces the supervisor and therefore he cannot waste time
without being found out.

(4) Better Communication: Open offices facilitate better interdepartmental

communication. A worker is not required to go to another room for consultation,
advice or instruction. It also facilitates better co-ordination.of office activities.

(5) Flexibility: There is a greater flexibility in planning the layout of an open

office, which ensures a more effective placement of office machines and equipment,
further, changes in the layout can be effected without much difficulty."

(6) Other Advantages: The other advantages of an open office are:

(a) In an open office, the sharing of machines and equipment becomes

possible;

(b) In an open office the cost of decoration, cleaning and maintenance is

lower;

(c) It wears a smarter look and, to that extent, is an advertisement for the
organisation itself;

(d) It makes for a democratic set-up because all grades of staff are placed
in the same room;

(e) It makes better working conditions possible.

Drawbacks: The drawbacks of open offices are:

(1) Absence of Secrecy: When secrecy of work is desired, an open office is not
a good choice. Privacy cannot be maintained in an open office for work is
done in full view of all the staff.

(2) Concentration not Possible: Open offices are not suitable for work which
requires concentration of mind, e.g., accounting and statistical work.
Moreover, distraction provided by visitors and the general movement of office
staff cannot be avoided.

(3) Unbusinesslike Appearance: Too many people working in the same room
and moving about their work make an open office look untidy,- shabby and
unbusinesslike.

(4) Lowering of Morale: Apparent regimentation and loss of individuality,

reduced sense of belonging to a well-defined group, and apparent loss of
status among senior staff tells on the morale and efficiency of office workers.

64
(5) Impersonal Atmosphere: From the point of view of the staff, the atmosphere
in open office is generally rather impersonal. For instance, instead of working
in a small room referred to as the Accounts Department, a small corner of a
general office may be occupied. This adversely affects the feeling of
attachment of the worker to his place of work.

(6) Noisy: The efficiency of the staff may be impaired by the noise of ringing
telephones and clicking typewriters.

(7) Unhealthy: A large open office is generally objected-to., on grounds of.

health. That infectious diseases are more easily passed on and that there is
insufficient ventilation are; two of the frequent complaints against open
offices.9 But these disadvantages can be avoided to some extent by
segregating work which is confidential, noisy or distracting. However, the
psychological disadvantages remain, for "many people do not like working in
an open office."10

Private Offices

Private offices are small rooms or cubicles which are separated from similar
other rooms or the open office by full or half partitions. Private offices are allotted to
the top executives of the organisation. Sometimes a private office accommodation is
provided for a group of people whose work is of a confidential nature. It may also be
allotted for work which should be isolated in order to eliminate noise, e.g., accounting
and statistical work.

Advantages of Private Offices: The advantages of private offices are:

1) Greater privacy is ensured for confidential work and discussions.

2) They promote a personal atmosphere and lend a sense of prestige or

importance to the concerned staff.

3) They increase the efficiency of the workers by facilitating concentration

of mind which is possible because of the absence of noise.

4) They are more congenial and less regimented.

5) There can be better ventilation and heating/cooling arrangements.

They are also preferred on grounds of health.

___________________________________________
9. J.C. Denyer, Office Management, p. 37.
10. G. Mills and O. Standingford, Office Organisation and Methods, p. 273.

65
Drawbacks: The disadvantages of private offices are:

(1) Uneconomical: On a rough estimate, 25 per cent to 33 per cent of the

office space is wasted in partitions and corridors. When an office is
situated in a rented building, the cost of office operations increases
considerably.

(2) Costly Supervision: Private offices make supervision more difficult and
costly. Supervision also becomes less effective because the supervisor
loses personal contact with the staff. ! Besides, more supervisors
are needed to supervise effectively the same number of workers. The
cost of supervision is thus stepped up.

(3) Adversely Affects Flow of Work: By erecting barriers and partitions,

private offices adversely affect inter-communication and free flow of
work.

(4) Affects Lighting, Ventilation: Walls and partitions also adversely

affect free ventilation and the flow of natural light.

(5) Inflexible: Private offices make the task of office layout more
complicated and less flexible.

New Trends in Office Layout

1. Landscaped Offices: A landscaped office is an open office which avoids

the arrangement of straight lines of desks divided by straight gangways. Desks are
arranged individually or in groups and at different angles from one another.
Gangways change direction, skirting round areas of varying sizes and layout.
Individual desks may be set in different areas of the floor space according to needs -
or the privilege of the users. The open floor is broken up by readily removable
screens of plants, natural or artificial. Landscaped offices look pleasant and
attractive. They are - well suited to the needs of technical specialists, management
information services etc.11

In the pure form of office landscaping, there are no private offices. However,
status and privacy are achieved by location, space assigned and type of furniture
and appointments. Attention is given to such environmental factors as (1) Air
conditioning, humidity control, lighting and acoustics; (2) Functionally designed
furniture and, (3) Aesthetically pleasing decor involving wall to wall carpeting,
attractive colours, and use of plants, statues and other decorative appointments.
An immediately obvious advantage is maximum flexibility to accommodate changes
in organisation and work flow, since there are no fixed partitions. Experience has
shown that costs of initial installation and maintenance are significantly lower.12

2. Movable Partitions: Movable partitions are now being used in setting up

private offices. These partitions are made of metal, wood, plastic or glass. They may
be:

66
 (i) Ceiling high partitions;

(ii) Partitions up to the height of the door;

(iii) Folding partition up to the ceiling or the height of the door; and

(iv) Counter-high partitions to separate the general office from the private
offices.

Movable partitions are less costly and lend themselves to flexible uses; for
example, when private offices are not needed, partitions may be removed, and the
layout plan be changed as desired.

3. Modular Units: Modular units are becoming increasingly popular now.

These units normally consist of a combined desk and filing cabinet with dwarfed
partitions up to a height of four to six feet. The most popular type of modular desk is
the L-pattern desk unit with a flat surface. It occupies less floor space, helps to
increase work efficiency, provides easy access to working materials and, at the
same time, ensures an element of secrecy for the employees.,

67
 OFFICE FORMS - DESIGN,
MANAGEMENT AND CONTROL

"In many offices, if indeed not in most, practically no scientific analysis

and study has ever been made of the forms in use, and the result is an
unnecessary waste of time, paper, effort and money."

- LEFFINGWELL AND ROBINSON

Office Forms

According to Leffingwell, "forms are printed sheets of paper or cardboard used

to collect and transmit information."1 They are the basic tools of all office work, and
they assist in the fundamental functions of receiving,, recording, arranging and giving
information in the office. Every office activity centres round one or the other printed
form. What is more, by reason of their close affinity with office systems, forms have a
bearing on the efficiency of office organisation. That is why Frank M. Knox has
plainly stated that "nothing happens in an office except to, or by means of, pieces of
paper." Denyer2 defines an office form as "a printed piece of paper or card on which
entries are usually made against marked headings." It excludes plain envelopes
which are stationery, but includes all printed matter of any kind. Without printed office
forms, all information would be given in an arbitrary way, and little systematised
attention would be paid to data. By using forms, every essential information required
for an efficient conduct of the business is recorded, arranged and transmitted in a
systematic way. Moreover, the use of forms leads to a considerable saving in time
and energy, for they reduce the amount of manual or machine writing. This becomes
possible because, on all the forms, constant and fixed data is printed and blank
space is left for valuable information to be inserted. The person using the form need
not write the fixed data again and again; he has only to fill up the blank space on the
form. Apart from saving time, the use of forms reduces the cost of office operations.
Since office work constitutes various routine operations, the use of forms reduces
the monotony of repeatedly writing various items already printed on the forms.

_____________________________________________
1. Leffingwell and Robinson: Textbook of Office Management, p. 21.
2. J.C Denyer: Office Management, p. 411.

68
 To sum up, "An office form3 is a printed piece of paper which provides space
for entering records, information or instructions which are to be conveyed to other
individuals, departments or enterprises." Examples of forms are purchase orders,
requisitions, debit-notes, pay-in-slips, invoices, account sales, etc.

Purposes of Forms: The-purposes of forms may- be summarised as follows:

1. They make clear what information must be gathered and

communicated.

2. They provide a specific location for each item of information needed,

thus speeding data entry, processing, and reference.

3. They eliminate the need for recopying standard or repetitive

information.

4. They facilitate use of multiple copies, often greatly simplifying

procedures as a result.

5. They identify records and facilitate filing and future reference.

Advantages of Using Forms

1. Simplify Systems and Routines: Office forms make clear what

information should be gathered. Thus forms simplify office systems and routines. No
office system can afford to function smoothly without them.

2. Reduce Cost of Office Operations: Office forms eliminate the need for
recopying repetitive or standard information and thus save time and energy. The
result is a reduction in the cost of office operations.

3. Facilitates Operations: Forms make for uniformity in appearance and

format. They facilitate identification of records and simplify filing and sorting
operations.

4. Preservation of Records: Forms help to preserve records of business for

filing and future reference. Since forms preserve records, they also help the
organisation in achieving better planning procedures.

5. Fixation of Responsibility: Individual responsibility can be fixed by

providing a column in the forms for the initials of the person who has filled in or
checked the form at any stage of the work.

__________________________________________
3. According to Littlefield and Rachel etc., *A form is a piece of paper with fixed data and blank
spaces for variable data." Thus information that is constant or known in advance can be made a
standard part of the form. It is then necessary lo fill in only the information that varies with each
transaction: this information is labelled specifically and occupies a standard position on the form, thus
reducing uncertainty and saving time.

69
4. Littlefield and Rachel etc., Management of Office Operations, p. 159. \
6. Facilitate Data Processing: Forms provide a specific location for each
item of the information that is needed; they facilitate the work of data processing and
reference.

7. Other Services: If forms are used as records and are properly preserved,
better services can be provided to vendors, dealers, customers, shareholders,
creditors, etc. Good forms project a good image of the organisation among the
public, and enhance the goodwill of the organisation.

Types of Forms

Office forms may be broadly classified on the basis of the operations or office
functions for which they are used, e.g., accounting forms, stores control forms,
application forms, sales forms, purchase forms, correspondence forms, etc.

Office forms may also be classified as :

(i) Single copy forms, which are complete in themselves and often become the
source documents;
(ii) Multiple copies forms, which are made in duplicate or triplicate (or more copies
may be obtained) and which may be used to transmit information or serve the
function of providing additional records;
(iii) Internal office forms, which are received or used by the employees of the
business, e.g. accounting forms, application forms, memorandum forms and
requisitions; and
(iv) External contact forms, which are sent to customers, creditors and others, e.g.,
order forms, invoices, cheques, purchase orders, etc.

Some types of forms may be used by the office more frequently than the
others. They may also be in different designs, shapes, sizes and colours.

FORMS CONTROL5

As already stated, forms are an important element of an office system. They

are the basic tools of all office activity. Generally speaking, all office forms are
handled at least three times; someone has to put the information on the form;
someone has to read and understand it after the information has been written down;
and, many a times, someone has to copy the information or part of it on still another
form; then, after everybody has seen it, the forms are filed, bound into book form, or
| destroyed.6 In view of these facts, it is obvious that careful attention should be paid
to the design, proper use and effective control of forms for that would ensure
appreciable savings to any office.

___________________________________________
5. According to Littlefield, 'Forms control is a means of exercising management control over the
costs of producing ant processing forms,* op. cit., p. 166.
6. Leffingwell, op. cit., p. 211.

70
 However, if too much emphasis is laid on the-use of forms, the result would be
that the number and types of forms may increase more than is actually necessary,
and office work would multiply. Instead of improving efficiency, the usage of forms
may adversely affect it and step up the cost of office operations. There is, therefore,
a need for a proper management and control of the use of forms, so that only the
relevant, forms are introduced and are designed to ensure economy and efficiency in
office operations. The addition or elimination of only one form may mean the addition
or elimination of one or more clerks to handle that form. It has been estimated that,
for every rupee worth oi printed paper, Rs. 20 to Rs. 25 of clerical labour is required
to use the form and deal with it. Hence, the necessity of forms management and
control.

Objectives of Forms Control

By means of forms control,7 the office management seeks to achieve the

following objectives:

(i) To retain and use only those forms that are really necessary;
(ii) To ensure that the necessary forms are designed most efficiently, arid
render the best possible service at the lowest cost;
(iii) To produce forms by the most appropriate and economical method; z
(iv) To provide copies of forms only to those who have a justifiable reason
for having them;
(v) To study whether the introduction of new forms, or the revision of old
forms, is essential;
(vi) To review periodically all the forms in use so as to determine their utility
in current situations;
(vii) To evaluate form design primarily on the basis of the time required to
use the forms.

B.H. Walley8 lists the following five reasons for forms control:
(i) To have a record of all the forms in use in the company;
(ii) To combine and eliminate as many forms as possible;
(iii) To reduce the size of the forms in use and to see to it that they are
used more frequently;
(iv) To prevent the indiscriminate use of new forms;
(v) To co-operate with the reprographic services department in choosing
the best method of document reproduction.

_________________________________
7. Denyer, op. cit., p. 411.
8. Op. at., pp. 16-168.

71
Steps in Forms Control

Forms control implies a proper designing, printing, economical use and supply
of forms so that office work may be efficiently and effectively performed. The
following steps may be suggested for a proper forms control:

1. Establishing Centralised Administration: The first step in forms control is

to set up a centralised authority for it. In large organisations, a Forms Control
Department may be established, and an executive may head this department.
Alternatively, a committee of individuals possessing adequate knowledge of forms
and their control may be set up or a Forms Supervisor may be; appointed as a
centralised authority for forms control. Whatever the alternative employed, it is
"essential to have a central authority of forms control' with responsibility for
performance.

2. Preparation of Forms Register: The centralised forms control authority

should collect at least two copies of each and every office form in use and paste
them into a Forms Book or Forms Register. A separate list or "index of all the forms
included in the Forms Book Register should also be made.

3. Listing of Office Routines: Since the designing and use of forms are
closely linked with office procedures ai# routines, it is necessary for the forms control
section to obtain a list of these routines. The relevant forms may then be classified,
marked and numbered according to the , procedure or department using them.

4. Investigation and Analysis: All forms should be analysed periodically to

determine whether any of them can be eliminated, combined with others, or
improved. Such a step may sometimes call for a reorganisation of some office
routines. For instance, a single copy form may be converted into a multiple copies
form so that its copy or copies are passed from one office worker to another, with a
slight change in the routine. Some forms may be re-organised. This may mean that
forms not required are eliminated, and the basic information relevant to different
forms is printed on each of them.

5. Printing and Reproduction: After adopting the forms, the forms

supervisor should decide on the method of reproduction to be followed. The printing
of the forms may be done outside the organisation; but their reproduction may be
done in office, with the help of the stencil or other duplication/reproduction process.
After consulting the heads of various departments, the forms supervisor should
decide on:

(a) The quantity of forms required;

(b) The quality of paper to be used;
(c) The design and size of the form.

Finally, with the approval of the office manager, an order for the printing of
forms should be placed.

72
 6. Standardisation of Forms: Lastly, if the situation warrants, it is better to have
standardisation. A standardisation of forms ensures that the size, colour and quality
of the paper used and printing | style for all the forms is uniform and standardised. It
reduces the cost of forms and confusion about its use.

Determining Quantity of Forms

It is important to determine the exact and economical quantity of forms to be
produced or ordered at one time. This is required to ensure.

(i) An even flow (supply) of forms without interruption;

(ii) Avoidance of unnecessary capital which is blocked in forms which are

procured when they are not immediately required; and

(iii) Economy through bulk procurement of forms, keeping in view that there
is no unnecessary wastage of forms and that they do not become
outdated. To decide about the quantity of forms to be ordered, the
following factors should be carefully considered:

(i) Past experience of the rate of consumption;

(ii) Capital investment to be made for bulk order;
(iii) Lead time for obtaining supplies;
(iv) Expected saving in the cost of ordering quantities;
(v) Possibility of changes in a form;
(vi) Cost of storage and interest on the capital invested in
forms.

If it is decided to arrange for 10 weeks supply of forms and the lead time for
getting supplies is 2 weeks it would be appropriate to order a quantity that would last
for 12 weeks. A cost benefit analysis should be made, and it should be ensured that
the benefit derived from bulk orders is not less than the total additional cost of
storage and loss of interest on the capital invested. For this purpose the following
formula may be used to determine the most economic quantity to be ordered:

EOQ =

where
EOQ = Economic Order Quantity (also called the standard quantity to
be ordered)
A = Average consumption over a period (say, a week, a month, etc.)
O = Ordering costs per order
C = Carrying cost of forms expressed as a percentage of the invoice
price of forms.

73
 The designing of forms is an important function of office management. Since
forms are the basic tools of office systems and routines; it is necessary that they
should be well designed and complete in all respects. The guiding principle of form
design is that the efficiency of the office staff should be maximized so that the cost of
office operations may be reduced. It should be remembered that the cost of labour in
processing the forms is generally 20 to 25 times more than the cost of paper and. the
printing of forms.

J.C. Denyer lists the following disadvantages of a badly designed form over a
well designed form:

1. Forms are basic tools of office work, i.e., for recording and communicating
information. A badly designed form impedes this function most seriously and
jeopardises the working of the entire organisation.

2. Badly designed forms inherits mistakes in clerical work. Sometimes a

single error may cost the company many times more than the cost of printing and
forms put together.

3. A badly designed form is bound to increase the manual labour required to

process it and impair efficiency.

4. A badly designed form may also have an adverse impact on the goodwill
and reputation which the organisation enjoys.

5. A badly designed form may have a psychological effect on people using it.
It may lead to frustration among people using it.

6. Office forms are related to systems of the organisation. A well designed

system may be ruined by badly designed forms.

Forms Design9 properly done, is the purposeful creation of that effective form
which is an adequate information processing tool. Three things identify the effective
form:

1. It is an integral part of the information processing system in which it is

used. The system will not function properly unless this form is used with each
transaction in the right way at the right time.

2. It facilitates the recording, analysis and transmission of clearly defined data

items. It includes all of the information required to complete a particular transaction; it
does not contain excess or extraneous data. Another form is not required to
supplement or facilitate its use.

3. It can be used with the minimum of special knowledge or training. The

nature, meaning and significance of the data to be entered are clearly indicated in
the form itself.
______________________________________
9. Carl Heyel: The Encylopaedia of Management, 2nd Ed., p. 268.

74
 A proper forms designing may eliminate a few forms by combining one or
more forms or improving upon them. This would result in savings in the cost of the
eliminated forms and in wage bills. To some extent, these objectives may be
achieved merely by a simplification of the forms. There are certain other principles
of forms design which should receive the serious attention of the forms supervisor.

Principles of Forms Design

In designing forms, the following principles should be observed:

1. Principle of Purpose: The purpose for which a form is required should be

ascertained before it is introduced. The general purpose of a form is to make clerical
work easier than would be possible if a blank sheet is used. When a plain sheet of
paper can serve the purpose, there is no need to introduce a form. The form
designer should obtain answers to the following questions, before introducing a new
form:

(i) What is the purpose of the form?

(ii) If the form has more than one purpose, which is the most important?

(iii) Is the purpose justifiable?

(iv) Will the purpose of the form be fully accomplished by its use?

(v) Is there another form, for the same, or a similar purpose, now in use
elsewhere in the office?

A form should be used:

(a) To record something;

(b) When recording is done repetitively;

(c) When it is necessary to record all relevant information at one place;

(d) When it is desirable to fix the responsibility for the work done on
individuals by providing spaces for their initials on the form. .

2. Principle of Standardisation: According to this principle, the size of the

form, the quality of paper, the method of reproduction, etc., should be standardised
so that the maximum economy in cost of forms may be achieved.

75
 3. Paper and Paper Sizes: Standard paper sizes should always be used
where possible and the forms should fit in available filing equipment. The size of the
form should be the smallest that will accommodate the information required. Paper
quality should be in keeping with the forms' intended use. Different coloured paper
should be used with discretion. Non-standard sizes, carbon interleaved paper,
carbon less copy paper and gummed pads should only be used if there is a
confirmed economic use for them. Adhering to standard paper sizes will ensure less
wastage in cutting and ease in printing. The internationally acceptable paper sizes
are designated as per the following code numbers:

Designated Code No. Size of Paper (Mm) 9A

A0 841 x 1189
A1 549 x 841
A2 420 x549
A3 297 x 420
A4 210 x 297
A5 148 x 210
A6 105 x 148
A7 74 x 105
A8 53 x 74
A9 37 x 53
A10 27 x 37

4. Principle of Centralised Control: The process of designing, use,

replacement, elimination, etc.,. of forms should be centrally controlled. Duplication
of forms and retention of outdated or replaced forms and wastage in the use of
forms can be avoided by having a centralised control of forms under one executive
(who may be the forms supervisor or even the office manager himself) who would
be responsible for their design, printing, etc.

Form Designing Process:10

The form design may be achieved systematically in a series of_ stages,. These
are:
(i) List the items to appear on the form and check that each serves a
purpose;
(ii) Determine the order in which the items should appear to suit the
convenience of the person filling up the form;
(iii) Determine the order in which the items should appear to suit the
convenience of the person reading and using the for-m;
(iv) Compromise, if necessary, between (ii) and (iii);
(v) Determine the space necessary for each item;
(vi) Prepare rough layouts leading to the final draft.

_______________________________________________
9A. B.H. Walley: Handbook of Office Management
10. Mills and Standingford, op. ciL, p. 389.

76
 Factors Affecting Form Design

In designing the forms, it is necessary to consider the following factors:

1. Purpose: Forms should suit the purpose for which they are designed. The
general purpose of every form is to make clerical operations easy, but the specific
purpose of every form should be ascertained, keeping in view the kind, source and
mode of receiving the information required and the alternative means of obtaining it.

2. Ease in Use: Forms should be so designed that they are easy to use. A
form which is to be used on typewriter or on a book keeping, billing or adding
machine should be so designed that there is a minimum number of starting places
for the typist, because each new starting position on the. form requires an extra
operation in setting the machine. Moreover, on all such forms, there should be
accurate spacing between the typed lines (10 lines to 4 cms.) So as to avoid the
necessity of adjusting the typewriter after every line. Also, horizontal and vertical
lines should be omitted on such forms because they are quite unnecessary.11

3. Simplicity: Forms should be simply designed so that everyone may easily

learn their use. Information should be placed on the form where it will best serve the
purpose. However, simplicity should not be at the cost of the purpose for which a
form is meant. Simplicity implies clear column headings, adequate numbering and
simplicity of the language in which instructions are given. The information on the
form may be logically arranged in the following order:

(a) All identification matter (such as name, address, serial number, etc.)
should be somewhere near the top right-hand side of the form. When
forms are to be bound at the top, the identification .matter should be at
the bottom.

(b) Adequate space should be provided on the body of the form for the
entries to be made on it.

(c) Special instructions, such as shipping instructions, on an order form

should be placed at the appropriate place, in bold type, to catch the
eyes of the user.

4. Title and Numbering: Every form should have a name and number. A
name is more easily remembered than a number. The usual practice is to give both
on a form. To avoid confusion, all such names should be standardised and printed
on the form. The name should be short yet clearly descriptive, and the numbering
system, should be clearly thought out. A serial number should be assigned to each
type of form to facilitate record keeping by the store keeper.

5. Proper Size; No form should be longer or bigger than is necessary to

ensure that what is j to be written on it is entered in a readable form. The size of the
form may be determined by j considering the following factors: .

__________________________________________
11. Leffingwell, op. cit., p. 216.

77
 (a) Columns should be wide enough to allow for the entries to be made;
(b) Columns should be long enough to allow for the average number of
entries to be made;
(c) The nature of the description required to be entered at the top and the
space needed for it.

It is advisable to fix a standard size of the form so that wastage may be

avoided while cutting the standard size paper available in the market.

6. Proper Type Face or Printing: If the forms are to be printed, a clear type
face should be chosen so that they may be read with ease in natural or artificial light.
The type to be used usually depends upon the purpose for which a form is needed.
However, an effort should be made to give a neat look to it. It is not advisable to use
more than one type face, or at the most two type faces on any one printed sheet.

7. Use of Proper Paper: The quality of paper which is used should be

appropriate to the purpose, having regard to the extent to which it will be handled
and the method of making entries oh it. The principal considerations are:

(a) Physical Handling: If a form is handled many times or is to be retained

for reference over a long period, a good quality of paper is necessary.
If on the other hand, it is to be used once or twice only, it would be
appropriate to use a less expensive paper.

(b) Appearance: The quality of the paper has a considerable effect on the
appearance of forms. For example, invoices are sometimes on high
quality paper to create a good impression on customers.

(c) Methods: The paper should be suited to the clerical processes through
which it will pass. If entries are to be made in ink, a non-absorbent
paper should be used; if in pencil, almost any quality would be suitable.
If several carbon copies of a form are required, a thin paper would be
required. Photo copying processes may call for the use of translucent
paper."12

According to Littlefield, "Paper for a form should be dictated by use, including:

(1) Appearance; (2) Amount of handling, (3) Number of copies to be produced in one
writing, (4) Length of time to be retained, and (5) Specific use of form.

8. Provision for Punching, Sorting, Perforation etc.: Forms should allow

for the operations of punching, scoring and perforating. If forms are to be punched
for filing, standard spaces for holes should be provided. Scoring refers to the drawing
of a line to indicate the place at which a form Fs to be folded for purposes of filing,
storing, etc. Perforating refers to row of small holes, as on a sheet of postage
stamps, or to a series of short dashes which cut partially through the paper. Most
printers are equipped with perforating machinery; but the exact place for perforation
should be indicated by the form designer.

_______________________________________
12. Mills and Standingford, op. dr., p. 391.

78
 9. Other Elements in Forms Design: Apart from all these factors, the following
points13 should be borne in mind when designing forms:

(a) Company titles should not be used on internal forms.

(b) A place for the signature should be provided at the bottom right hand
side of the form.

(c) Instructions on filing in the form should, as far as possible, be placed at

the top of form.

(d) In designing a form, a ballot-box type design should be encouraged so

that only the requisite data are recorded. When possible, the use of
abbreviations should be encouraged.

(e) The thickness of ruled lines should determine.

• The boundary between data items.
• The areas which need special attention.
• The boundary between parts of a card.
• Lines where signatures are needed or data required.

(f) Wherever possible, the form should be designed to accommodate the

minimum data. For example, a tick or a cross should indicate the
answer to a question. This is better than making it necessary for a
person to say "yes" or "no".

(g) The forms designer should be aware of the filing arrangements in effect
in the office so that adequate margins should be allowed on forms :

(h) Wherever data are recorded sequentially, the boxes or columns should
follow the sequence,

(i) If the form is to be mailed, provision should be made for the use of
window envelopes,

(j) When forms are used as source of documents for the Electronic Data
Processing (EDP), the layout should be arranged with a view to easy
card/tape punching.

Methods of Form Designing

The design of record and report form is very important from the standpoint of
indicating the data required, use of the paper surface, and indicating the sequence
in which information should be entered. The different methods (plans) of form
designing as given below should be carefully considered:
______________________________
13. See Walley, op. at, p. 172.

79
 1. Boxing: Under this plan, the entire surface of the form is "boxed* in with
most of the printing to show the data to be inserted entered in upper left hand
comer, or at the top of each 'boxed' area. If this plan of design is followed skilfully, it
makes better use of the form surface than any other plan; and provides as well, a
good appearing record and report form; and are easily used by the clerical force.

2. Lines: This plan of designing forms provides for the use of lines chiefly as
a basis both for printing the information required and the entering of the data. In
other words, the instructions and data are entered on the same line level. This is the
most common plan of preparing forms. Its effectiveness depends chiefly on the
order in which data is provided for, and the extent to which the printed information
describes the data required.

3. Headings: In designing forms, headings are used commonly to call attention

to the information areas in which data is to be entered. Usually, the headings occupy
considerable space, and sometimes result in wasting paper surface. If used
carefully, this plan helps make a good looking form and facilitate entering and
reading report data.

4. Columnar Design: Often it is helpful to adopt the columnar idea so

that information may be entered in columns. This type of design is particularly
applicable to the tabulation of figures, where this is a form of information to be
transmitted or recorded.

5. Spacing: Spacing is important for both appearance and use. Typing

requires spacing in multiples of one-sixth inch. Handwriting requires one fourth to
one-third inch between lines.

As a general rule, neither of these methods of form design will be used

exclusively. The j method of design depends chiefly on the use to be made of the
form and the type of information ; to be recorded on it. Skilful application of these
methods in the form design should result in j improved design, economy in paper,
and greater simplicity in clerical operations, regardless of the method chosen.

80
 SPECIMENS OF FORM DESIGN
Form 1: Purchase Order
INDO EURO EXPORTS
NEW FRIENDS COLONY,
NEW DELHI - 110065
(Purchase Order)

No Tel.: 27651701
22514865
Fax: 23114445

Dated ..........................

Dear Sir,

Your quotation No....... dated ........................has been accepted. Please

supply the following items mentioned herein and the term and conditions mentioned
overleaf.

S. Description Unit Qty. Rate Amount Delivery Remarks

No. Per Unit Required
Date Place

Terms of Delivery _________________ For INDO EURO EXPORTS

Packing/Shipping Instructions ________________
Terms of Payment ________________
Bank Through _________________ Purchase Officer
Copy to 1. _______________
2. _______________
3. _______________

81
1. Definition: Communication is a process of conveying ideas views facts and
information from one person to the other through either spoken or written work
of non-verbal action with in intentions to influence the attitude and the
behaviors of die person receiving it.

2. Origin; As human beings we start communicating right from the nano second
we are born. The baby conveys through her cry continuously till the point
he/she able to speak. The receiver of dais communication namely the mother
can easily distinguish the needs of the baby from the nature manner of baby's
crying.

As one grows in age the person acquires the abilities to skillfully convey
his/her ideas through various means

3. The process of Communication :

The process of communication has its roots in the minds of the sender when
he thinks as to what to convey. A process is called as infra personal communication
(within). Once the sender is clear as to what to convey he codes it into a message or
a form which the receiver can understand. So this can be through the verbal words
or written words in any common language or through body language. The receiving
person in turn decodes the message through interpreting based on his own
knowledge. This entire process originating from the thinking of the sender, coding
the idea into a message and decoding by the receiver called as communication
process.

Importance of Communication

a) Communication binds people together and increases co-operation :

Communication is the system that binds the people of an Organisation together.

Through communication, they can attain a common view point and understanding
and co-operate to accomplish Organisational goals and objectives. Communication
keeps them informed of the changing mission and of Organisational progress and
success.

82
b) Communication enables sharing of ideas and experience of others in
an Organisation.

Effective communication enables Managers / Supervisors to share

information, ideas and experience which helps them in improving-their effectiveness.

c) People will only give off their best to their work if they know all about work:

An employee is interested in something above and beyond his pay cheque.

He wants to know more about the company he is working for what are its products
policies and practices. People will only give their best if they understand:-

(i) What they have to do; why they have to do it : to what extend they are
achieving targets.

(ii) What their conditions of employment are

d) Effective Communication increases productivity:

Workers can become convinced of the purpose of their Organisation and of

the purpose of their individual efforts through the Effective Communication systems
Areas of understanding grows. Man hours increases, productivity increases
adequate communication can result in greater productivity through more effective
work and greater co-operation.

e) Effective Communication Improves Labour Relations.

An effective communication system is an essential ingredient of good labour

management relation. It helps in keeping good industrial relations.

f) Effective Communication can modify behaviors & Build up Morale.

In an Organisation the transfer of information from one individual to another is

absolutely essential. It is the means by which behavior is modified; change is
effected; information is made productive and goals are achieved.

g) Effective communication is the very heart of the process of Organising

Without adequate communication, the members of an organisation cannot

develop enough identification with the group to cooperate. Managers & Supervisors
have to formulate incentives / other schemes properly and they will become
motivational only when their message is effectively communicated to the employees.

Channels of Communication :

Information in an Organisation flows in 3 directions Up, Down and Across.

These can be called "Three Dimensions of Communication".

83
Upward Communication:

Upward communication enables the passing of information, attitudes and

feelings and stimulates the Employee's participation. Upward communication can
provide motivation for employees to initiate communication to higher levels in the
organisation in addition to responding to the communication they receive. Upward
communication performs the following important functions

a) It service as a measure of effective downward communication

b) It provides Management with the needed information for decision
making
c) It helps Employees to receive the pressures and frost nations of work
situation.
d) It enhances the Employees sense of participation in Management.

Downward Communication:

Downward communication enables the Management to pass order, policies,

rules and regulations and plans from the highest to the lowest authority. It enables
one to delivery "Why Not". The specific goal of Downward Communication is to
achieve mutual confidence and understanding between the Management and
Employ in all matters of common interest so that the employees will co-operate
enthusiastically in carrying out all activities, essential for the success of the
organisation.

Across Communication:

Communication across leads to co-ordination and control of the various

activities the organisation. This is called the horizontal communication between line
and staff people.

Effective Communication Process:

The process of communication can be called as effective only at it attains the

effect or the result as desired by the sending person. The sender can know the
message has met its objective or not only through a check with the receiving
person. This process of link between the receiver and the sender is called as feed
back loop. Organisation Communication: The process of' communication that
occurs in the organisational context is called as organisation communication. It is a
flow of information among any persons in the organisation of any hierarchical
levels. Even extending the-boundaries, it could be the communication between
persons inside the organisation with outside parties like suppliers, customers etc.

84
Objectives : The following should be termed as objectives of communication :

a. To maintain effective transmission and reception of advice, orders and

instructions with adequate attention to both die quality of transmission
interims of clarity meaning and favorable reception of these messages.

b. To ensure adequate upward repoting so that the supervisors and

Managers are assured of information required for their assigned
responsibilities.

c. To share two-way communication that will develop a feeling of

participation on the part of all those in the Organisation.

d. To encourage ideas and 'suggestions for more effective operations

from all' levels and members.

e. To relate transmission to interests of receivers and thus to encourage

receptivity and personal identification with the Organisation /
Department.

f. To assure free exchange of such information and opinions through the

Organisation.

g. To make available such facts and information as will assist members of

the Organisation in their own development and advancement.

h. To provide an adequate formed communication structure and thus to

eliminate or reduce the need for informal communications and avoid
the misinformation that may be associated with rumour and gossip.

i. To maintain effective checks on internal communications.

Banners to communications

1. Inability to listen and receive information properly

2. Inadequate message.

3. Semantics in communication

4. Psychological factors like fear, suspicion and jealousy

5. Authoritarian climate

6. Stereo type of attitude

85
 A FEW TIPS FOR IMPROVING COMMUNICATION

1. Be clear as to what exactly you want to convey

2. Analyse the nature and extent of the other person's likes and dislike
towards you and your point
3. Assess your own communication skills and those of the other persons
listening to you
4. Try to identify mentally with the frame of mind of the person receiving
your message
5. Make the message relevant to the person listening to you using his
language and terms.
6. State your ideas in simplest possible terms.
7. Be clear of what you want to say or write before put into words.
8. Explain before you amplify
9. Develop one idea at a time.
10. Wherever emphasis is required emphsize
11. Move from known to the unknown giving examples.
12. Check whether the other person received your message correctly or not.
Listen attentively arid actively not just Keating."
13. Do not pre-suppose or mentally conclude what the other person is going
to say even before you listen to him
14. Do not make any assumption about the other person
15. After any major or significant communication, pause, absorb all the
important points mentally or in writing, prepare action points before you
proceed to the next point.
16. If you have taken any short notes in points, during any communication
process, please prepare a full text of it as soon as possible, as delayed
action results in distortion.
17. Respect the other person and his views. Remember just as you have
your own logic and needs the other person also has
18. If the other person is communicating to you in any emotional state,
patient listening to him itself brings him to a calm state.
19. Remember you want to achieve something through your communication,
and don't loose track of it.
20. Remember words you use are your ambassadors. Even the wrong ideas
but expressed through right words get right response. On the other hand
even the best of ideas expressed through wrong words yield wrong
response.

86
Works committee is (he creation of Industrial Disputes Act, 1947. The Act is primarily
meant for regulating relations between employers and workmen. The object of the ID
Act is not only to make provision for investigation and settlement of industrial
disputes but also to secure Industrial peace.

The Act has created different authorities. These authorities have been set up with
different ends in view and are invested, with powers and duties necessary for
achievement of the purposes for which they are set up. '

The Works Committee is one such authority. The Act has prescribed duty of the
works committee which is to promote measures for securing and preserving amity
and good relations between the employer and workmen, and to that end. to
comment upon matters of their common interest or concern and endeavour to
compose any material difference of opinion in respect of such matters.

THE SCOPE AND FUNCTION

Works Committees are most suitable for the prevention of industrial unrest, unit by
unit. Their main purpose is to discuss day to day affairs in a cordial atmosphere of
mutual goodwill and friendship, in the premises of the factory, not as two contesting
parties before a conciliator, but as two friends mutually discussing things with a view
to settle and compose their differences amicably and quickly. These committees deal
with day-to-day questions of mutual concern to both the management and the
employees. These questions cover an extraordinary range, bearing upon the daily
life of the workers and they include all matters relating to production, working
condition, welfare, training, holidays with pay. Until these questions are dealt with
satisfactorily at the initial stage, they may result in a serious cause of dispute. The
Works Committees in individual establishments provide the scope for such
discussions. It is within each undertaking that the foundations of industrial peace
must be laid by careful handling of day-to-day problems as they arise in individual
establishments. Hence the importance of the Works Committees is very great in
preventing the disputes. It is comparatively easier to reconcile the two parties in the
initial stage, when none of them has staked its honour in the dispute, because
afterwards, when the dispute has arisen, the parties adhere to their respective
standpoint and the dispute is prolonged. From this point of view also Works
Committees have got great utility in preventing industrial disputes.

Although according to the Act the scope of the works committee has been restricted
to discussing the issues arising out of day to day work, these issues have not been
specified in the Act. The office of the CLC(C) conducted a survey during 1958- 59
regarding functioning of the works committees. The difficulties pointed out by these
surveys were considered by the ILC at its 17th session in 1959. The committee
appointed by the ILC listed out the items which a works committee may normally
deal with. The illustrative .list drawn up by the committee is as under.-

87
1. Conditions of works such as ventilation, lighting, 'temperature and sanitation
including latrines and urinals.
2. Amenities such as d inking water, canteen dining rooms, creche, rest rooms,
medical & health services.
3. Safety and accident prevention, occupational diseases and protective
equipment.
4. Adjustment of festivals and national holidays, administration of welfare funds,
5. Educational and recreational activities such as libraries, reading rooms,
cinema shows, sports game, picnic parties, community welfare and
celebrations.
6. Promotion of thrift arid savings

 There are different perceptions about the works committee, its rote and
its importance in maintenance of good industrial relations in the
establishment.

 The trade unions usually see the works committees as a their rivals

 The elected representatives of workers perceive The works committee

as a parallel power center.

 The managements use the forum for ironing out the & friction arising
out of day to day work

 The workers have high expectations from the works committee.

LIMITATIONS OF WORKS COMMITTEE

From the above it is clear that the works committee cannot deal with important
matters such as conditions of service, wages, disciplinary matters and other policy
issues. Further the decisions arrived at in the meetings of the works committee are
only recommendatory in nature and they are not binding on the parties. To that
extent the works -committees may not have proved to be as effective a forum for
redressal of grievances as expected by the workers. This may also be the reason
why "the works committees have failed to play a significant role in establishments
other than the defence establishment

Not many are aware that through an amendment to the ID Act in the year
1982 a new section 9C was inserted to provide for constitution of Grievance
Settlement Authorities in industrial establishments employing 50 or more workmen
for settlement of industrial disputes connected with an individual workman employed
in the establishment. However, this amendment has not been enforced.

If the provision related to works committee is read with the provision related,
to Grievance Settlement Authority it becomes absolutely clear that the act has a
specific role for the works committee in its scheme. The scheme of the Act seeks to
provide through Works Committee a forum in which the common issues arising out

88
of day to day work are smoothed away by the parties through mutual dialogue at
the initial stage itself. As regards individual and other industrial disputes the scheme
provides for taking up the specific issues pertaining to individual disputes in the
Grievance Settlement Authority, thus leaving the major disputes for the unions to
take up with managements through negotiations and failing that through conciliation,
arbitration or adjudication as provided under the Act.

ELECTIONS

The election of the staff side- members for the works committee generates much
Interest and heat among the workers and their unions. In the recent past division of
an establishment into separate constituencies for the purpose of election in terms of
rule 42 and 43 has been subject of much debate and controversies.

The Supreme Court has delivered a decisive landmark judgement while deciding the
case concerning CAFVD. Kirkee Pune between Union of India and MTSSD workers
union The relevant extract of Ihis judgement is reproduced below :

The scheme of the Rules for constitution of works committees provides Where
there is a registered trace union having more than fitly percent membership of the
workers of the establishment. the total number of members of the Works Committee
will be elected without distribution of any constancy; and if in an industry no trade
union registered under the Trade Unions Act represents more than fifty percent of
the members them only, the election will be held in two constituencies; one from the
members of the registered trade union or unions and the other from non-members of
the trade unions. Only in the latter contingency, discretion is given to the employer to
further sub-divide the constituency into department, section or shed. From this, it is
evident that there may be a situation in a particular establishment where some
sections may haw no membership of any trade union at all whereas in other sections
there may be membership of trade unions. In such a situation, under Rule 42 of the
Central Rules, it has to divide into two constituencies i.e.. members of the registered
trade union and non-members. There may be further sub-division in order to provide
for representation to any section of the workmen who have no representation in any
trade union at all. Where there is a registered trade union in an establishment having
more than fifty per cent membership. Rule 43 will, not be attracted. If Rule 42 does
not apply, there is no occasion for Rule 43 or the proviso therein to come into
operation because the latter is not an independent substantive provision.

Rule 42 contemplates that the representatives of the workmen are to be elected

in two groups. But if in an establishment the majority of the workers are in one
union, then no ^division in. two groups is necessary. In that situation, the
representatives of the W orkmen will be elected in a single group without any kind of
division.

89
CONCLUSION

Except in defence establishments the works committees have proved to be a failure.

Among many reasons for this, the lack of clarity about their functions and conflict
between the elected representatives and trade unions are the main reasons.

Under section 39 of the ID Act the Central Government in its capacity as. the
appropriate government under the Act has delegated its power to CLC(C) for issue
of orders in connection with constitution of works committees in mines and oil fields,
banking or insurance companies having branches in more than one state and
railways.

In respect of central sphere establishments the power to dissolve the works

committee under .certain circumstances is with the Ministry of Labour in the central
government. These circumstances are:-

1. The Works Committee has not been constituted in accordance with the
rules.

2. The two third of the representatives of the workmen have failed to

attend three consecutive meetings of the committee without reasonable
justification.

3. The works committee has ceased to function for any reason.

90
 No. 7(I)/2000/D(JCM)
Government of India
Ministry of Defence
New Delhi, the 2nd April 2007

OFFICE MEMORANDUM

Subject: Constitution Or JCM IV Level Councils - Regarding.

The undersigned is directed to refer to this Ministry's of U.O. No. 7

(2)/66/D(Lab) dated 24th July 1967 regarding constitution of third and fourth level
JCM Councils in the Ministry of Defence and to state that the JCM Scheme provides
for allotment of seats only to the Unions affiliated to the then two existing recognized
Federations viz ALL India Defence Employees Federation (AIDEF) and India National
Defence Workers Federation (INDWF). However, with the recognition of third
Federation Pratiraksha Mazdoor Sangh (BPMS), the need for making suitable
amendments in the provisions of the scheme was felt Instructions were issued in
the past vide this Ministry's OM of even no. dated 22nd August, 2001, revising the
composition of the 4th level JCM council. However, due to the representation made
by me Federates and some administrative difficulties, it was decided vide this
Ministry's O.M. of even number, dated 1« Oct, 2001 to defer the reconstitution of the
4th level JCM Council on the basis of the revised provision and maintain status-quo,
until further orders.

2. In their representation to the Govt., the Federations have requested not to

reduce the seats allotted to their affiliated Unions at the IV level and if need be, the
total number from the Staff Associations recognized on. All India basis that the
Branches of the Association functioning in an Establishment may also be given
representation irrespective of the feet, that the association is representing at third
level.

3. After due consideration of the representations received from the employees'

organisation,, it has been decided to increase the number of seats for the Staff Side
in the 4 level JCM Council from six to eight. It has also been decided that"
besides giving representation to the Unions affiliated to the three recognized
Federations, seats be allotted to other independent Unions not affiliated with any
recognized Federation and Branches of the recognized Staff Associations without
making the body an unwieldy one so as to make it functionally efficient. A copy
of the revised composition of the 4lh level JCM Council is enclosed, the revised
composition will be applicable to all such Councils which have already completed
their tenure or will complete their tenure in future.

(H.S. Nanda)
Under Secretary to the Govt. of India
Tel : 301-1260

91
CONSTITUTION OF THE FOURTH LEVEL COUNCILS FOR DEFENCE CIVILIANS
- UNDER THE JOINT CONSULTAIVE MACHINERY

I. OBJECT:

The object of the Council is to promote; harmonious relation and to secure the
greatest measure of cooperation between the government in its capacity as
ernployer and the general body of its employees in matters of common concern and
further to increase the efficiency of services combined with the welfare of those
employees.

2. SCOPE AND FUNCTIONS:

Discussions at fourth levels would be between administration and the civilian

employees of various Directorates, Departments and Establishments of the Ministry
of Defence, excluding public Sector Undertakings. The scope of the council will
include all local matters deleting to conditions of work, welfare of employees,
improvement of efficiency and standards of work with particular reference to the local
conditions, Matters which have some local significance but which are essentially of a
general nature may not be discussed at the fourth level.

3. COMPOSITION

At the fourth level the defence establishment will negotiate with

representatives of the employees." The council will consist of not more than 8 (Eight)
members on the ' staff side and 5 members including the Chairman on the Official
Side. The distribution of the Staff Side seats will be as under-

(i) In an installation where there are unions affiliated to the two recognized
Federations, each Union which is recognized or which though unrecognized
fulfils the conditions of recognition, will be allowed to nominate two
representatives, and two representatives will be elected by the workers'
representatives in the Works
Committee.

(ii) In an installation where there are Unions affliated to only two recognized
Federations, each Union which is recognized or which though unrecognized
fulfils the conditions of recognition, will be allowed to nominate two
representatives each and 2 representatives will be elected. by the workers
representatives in the Works . Committee. The remaining two seats will be
allotted by the Chairman of the Council . to the largest Union which is
recognized or which though unrecognized fulfills the conditions of recognition
and not affiliated with any of the recognized Federations / Largest branch (es)
of the recognized Staff Associations.

(iii)In an installation where there is a union affiliated to only one recognized

Federation, and there is another union/association which is recognized. or.
fulfils the conditions of recognition, will be allowed to nominate two

92
 representatives and two representatives will be elected by the workers
representatives in the Works Committee. The remaining four seats will be
allotted by the Chairman of the Council to the two largest Unions which are
recognized or which though unrecognized fulfill the conditions of recognition
and not affiliated with any of the recognized Federations largest branches of
unrecognized Staff Associations;

(iv) In an installation where there is no union which is affiliated to any of the three
Federations, the existing Union/Association will be allowed to nominate two
representatives and 2 representatives will be elected by the workers
representatives in the Works Committee. The remaining four seats will be
allotted by the Chairman of the Council to the two largest Unions which are
recognized or which though unrecognized fulfill the conditions of recognition
and not affiliated with any of the recognized Federations/largest branches of
the recognized Staff Associations;

(v) In an installation, if there is only one Union, affiliated to a recognized

Federation or otherwise, which is either recognized or fulfills the conditions of
recognition, it will be allowed to nominate four representatives and two
representatives will be elected by the workers representatives in the Works
Committee. The remaining two seats will be allotted by the Chairman of the
Council to the two largest branches of the recognized Staff Associations.

(vi) In the case of an installation, where there is no union at all, either independent
or affiliated to either of the two Federations and there is also no eligible
branch of any recognized Staff Association, then representatives of the staff
side, up to a maximum of 6 seats, will be elected directly by the staff side
members of the Works Committee.

(vii) In a Defence Unit/installation, where no Works Committee functions under the

existing provisions, the distribution of seats meant for the representatives of
the Works Committee will be made by the Chairman of the Council to the
existing Branch(es) of recognized Association(s) and/or Unions which are
recognized or which though unrecognized fulfill the conditions of recognition
and are not affiliated with any of the three recognized Federations.

(viii) In a Defence Unit/installation, where there is no Unions either recognized or

fulfilling the conditions of recognition and there is also no Works Committee
functions, no Council will be constituted.

Note I : The Chairman of the council of the Fourth Level shall be the
administrative Head of the Installation/Unit or the formation covered by the
Council.

Note II : No person who is not an employee or an honorably retired employee

of the Central Government shall be a member of Joint Councils.

Note III : The Stall side representatives will be nominated for a term-of 3 years
but there will be no bar to re-nomination. Vacancies caused by death,
retirement, resignation, transfer, promotion to non-entitlement category etc.

93
 will be filled for the unexpired term.
Unions/Branch Associations may replace on the Joint Council such of iis
representatives as have ceased to be its office bearers at annual election or by
exigencies such as a vote of no confidence.

Note IV : Vacancies if any arisen in the council while complying with the
aforesaid provisions will be kept unfilled.

Note V : An unrecognized Union which has already submitted its documents

for recognition, will only deem to be fulfilling the conditions of recognition".

Note VI : If an unrecognized Union allotted "seats in terms of "fulfilling the

conditions of recognition" is not able to secure recognition during the currency
of its term in the Council, it will not be considered" fulfilling the conditions of
recognition", during subsequent terms of the Council. However. if the
Chairman of the Council is satisfied that the delay in according recognition to
the Union was beyond the control of the Union, he may allot scats to the
Union.

Note VII : In case of non-acceptance of the claim for recognition, the scats
allotted to' unrecognized union in terms of "fulfilling the conditions of
recognition." will be withdrawn forthwith and allotted to other eligible
Unions/Branches of Associations as per the aforesaid provisions. Such a
Union will not be allotted seats in subsequent term till it is recognized by the
Government.

4. PERIODICITY
The meetings at the Fourth Level shall be held once a month.

5. QUORUM
The quorum shall be l/3rd each of the strength of the Official and Staff Side.

6. LEADER & SECRETARY, STAFF SIDE

The Staff side members will elect their Leader and Secretary by a simple majority. .

7. AGENDA

(I) The Agenda for a meeting shall be prepared under the orders of and
approved by the Chairman.

(II) The agenda for an ordinary meeting shall be circulated to all members
not less than one week before the meeting.

8. MINUTES
The minutes of the meeting will be finalized under the directions of the
Chairman m the usual manner and copies there of will thereafter be circulated to
members of the Council.

94
 PRINCIPLES OF RECORDS MANAGEMENT

Broadly speaking, an efficient and effective records management system

should fulfill the following requirements:-

(i) It should provide an easily accessible store-house of information relevant to

the changing needs of the organisation,

(ii) It should ensure that the response-time in retrieval of information remains low,
Le. it should be possible to retrieve records without loss of time,

(iii) It should be economical by ensuring that

(a) Records occupy minimum space

(b) Cost of equipments for storing records is low
(c) Cost of retrieving information is low.

(iv) It should provide for a uniform and systematic schedule for retention and
disposal of records,

(v) It should ensure that while records meant for preservation are well preserved
unnecessary records or records which have outlived their utility are regularly
and promptly weeded out

STAGES OF RECORDS MANAGEMENT

A good records management systems will divide the various activities involved in it
into the following steps:-

(i) Creation
(ii) Classification
(iii) Transfer
(iv) Maintenance
(v) Preservation and
(vi) Review and Weeding

(i) Creation - A Control of the volume of records created can be achieved by

ensuring that paper work is reduced to the rninimum and a file is not opened
unless it is absolutely necessary.

(ii) Classification of Records -

According to their importance, all government records are classified under the
following categories:

(i) Class A -> Meaning keep permanently and microfilm

95
 RECORDS MANAGEMENT

Records ate tool of management memory of an organisation and source of

information. The effectiveness -of decisions -which- tdtinrateljraffects me "image of
the Organisation and efficiency of its operations is dependent on the quality of its
resources and information which is provided by the records. (Notes of office
procedure CH. XIII).

What constitutes Records?

All communications received in an Organisation or issued by its as well as reports

and returns, notes memoranda, maps, documents, photographs, films etc. which are
used in an organisation's activities and have future reference value constitute
records. It may be in the form of papers, tapes, microfilm, floppy, CDs etc.

Why records?

Records contain information. Therefore retention of records is necessary as it is

expected that information stored in them will be of value in future. Some of the
reasons for creating and maintaining records, particularly in Govt. Organisations
are:-

(i) For planning and scheduling Govt's activities as information required for this
purpose cannot be retained by human memory;
(ii) Retention of record is a legal requirement in certain cases;
(iii) For fixing responsibility for matters coming before audit, parliament or other
public bodies;
(iv) For historical value;
(v) For ensuring element of rationality;
(vi) To make available needed facts, figures, correspondence etc for future
planning;
(vii) To ensure continuity in administration;
(viii) To ensure impartial treatment to all citizens;
(ix) To ensure tax-payer's interests are protected at all times and that there is no
irregularity in financial transactions; and
(x) For providing evidence in case of disputes.

(ii) Class B -> Meaning keep permanently but do not microfilm

(iii) Class C -> Meaning keep for specified period only not exceeding 10 years.
exceeding 10 years.

96
 With regard to the records which are to be retained for a specified period, it is
necessary to draw up a rational and uniform schedule of retention in order to ensure
that there is a reasonable ratio between the creation and destruction of records and
that the rate of creation of records does not outstrip the rate of destruction of
records.

THE RECORD RETENTION SCHEDULES

SL Type of Records Retention Schedule

No.
L Records Pertaining to Accounts As given in Appendix 13 of
General Financial Rules.

2. Records pertaining to establishment, personnel Schedule of period for

and house-keeping matters etc. which are retention of records common
common to all departments to departments issued by the
Department of Administrative
Reforms and Public
Grievances.

3. Records referred to in Manual of Office Retention period specified in

Procedure Appendix 28 of manual.

4. Records relating to substantive function As per retention schedule

pertaining to Department. prescribed by Department in
consultation with the National
Archives of India.

Transfer of Records

On the basis of retention schedule the record can be divided into two :- active
category and inactive category. Active records are those containing information
which should be readily accessible. Inactive records are those which should be
retained but which can conveniently be transferred to costly space or equipment or
microfilmed. A division of records in such categories helps in developing a more
effective information storage and retrieval system as well as in reduction in the cost
of maintenance of records. While active records can be stored in suitable
equipments near the desk or table, inactive records can be periodically transferred to
areas in the office which are less accessible (Record Rooms).

(i) Maintenance - Most of the records in an organisation are being maintained in

a central records room. The office or sections should maintain only the current
files, and active records. Records should be maintained in filing and storing
equipments which ensure easy accessibility of records and reduction in
utilisation and cost of space and also present a pleasing appearance with
regard to office lay out.

97
(ii) Preservation - For preservation of records, it is necessary to provide
optimum conditions of temperature and humidity. Records room should have
properly cross ventilated, having exhaust fans etc for fresh air. It should be
provided with suitable fire extinguishers, naphthalene bricks etc.

(iii) Review and Weeding of records

In order to keep records within manageable size and to maintain them at a low cost
there should be a regular system of review and weeding of records. A periodical
review of the records not only ensures that unwanted records are destroyed but also
helps in updating the information contained in records which continue to be valuable
for reference. Normally, in Govt. Org., the work of review and weeding of records is
given a low priority. As a result costly space is wasted in maintaining useless
records. Further, the work of retrieving relevant information out of the junk becomes
more difficult. It is therefore, necessary to fix a schedule of periodic review and
weeding of records in all units of an organisation.

CONCLUSION

An Accurate and timely retrieval of relevant information helps in arriving at correct

and quick decisions which in turn contribute to the efficiency of an organisation. With
the growing complexity of governmental operations, the need for an efficient
information storage and retrieval system has become more urgent. In analytical
approach to the objectives and problems a record management can go a long way in
increasing the effectiveness and reducing the cost of creation, maintenance and
retrieval records. It is necessary for a progressive organisation to treat records
management as a vital part of the overall management activities.

98
 FORMS

A form is a medium for communication and analysis of information for purposes of

planning, control and for storing it for purposes of future reference. It is standardized
means of conveying, analysing and storing information of specialised nature in a
standard manner. It may be printed / cyclostyled / typed handwritten on any material
used for recording information e.g. Paper or card / floppy / CD etc. In office work it is
an important aid to the conduct of business. "It standardizes the process of work
eliminating needless exercises and avoidable wastage of time. Simplification of
forms improves the time — lag in communication, reduce the need for hastening
action, minimise the scope for mistakes and omissions and thus facilitate completion
of the jobs.

Essential of form design

A well-design form can assist clerical activity, save time and labour and reduce
incidence of mistakes and misunderstanding. Some of the objectives which could be
sought to be achieved at the time of designing a form should be -

Improve effectiveness
Reduce time and effort involved in filling and processing
Reduce interpretation of various entries easy
Eliminate chances of error or ambiguity
Reduce die cost of processing of information and make it please to the eye.

STEPS IN FORM DESIGN

The design of a form will usually involve the following steps -

(a) Collection of up-to-date facts of the procedure in which the form is being used
or is to be used with an analysis and the stages through which it is to be
processed from inception to final disposal.

(b) Examination of the purpose for which it is needed in me light of the

requirements of the procedure.

(c) Examination of the methods and equipment which is/will be employed to fill in
the form, transmit it to the recipient, process the information and store it for
future use.

(d) Appreciation of the environmental conditions prevailing at the place of origin,

processing and storage.

(e) Appreciation of the circumstances in which it will be completed i.e. language

of form, time factor and periodicity.

f) Evaluation of the capability of the people who would be using it and when.

99
COST OF THE FORM

While designing a form it is extremely important that the cost of the form so designed
is kept to the minimum. The cost of form includes actual cost of bring out the form
plus cost of processing after the form has been received back. In any case the
processing cost should not be more than 20 times of the cost of production of form.
This aspect should never lest sight of by the forms designer.

GUIDELINES FOR DESIGNING A FORM

While utmost simplication should be the watch word in the design of a form, some of
the more important considerations which should be kept in view while designing or
redesigning a form, are as follows :-

(a) It should be of a standard size depending on the method to be employed for

filling, dispatching processing and storing information.

(b) Data should be arranged in the sequence in which evens take place in the
procedure for the activity.

(c) Related information should be grouped together - for easy processing

(d) There should be enough space formatting entitles by various means Le.
writing, typing etc.

The work of a form designer does not end with the designing of a form. He
should make sure that the new form is going to work in practice. Suitable
instructions regarding the use of the form should be given to all concerned.
This would be necessary especially while designing or revising forms which
are to be used by public. If necessary he should mark dummy entitles to
illustrate clearly how a form is to be filled in.

CONCLUSION

A form should be a valuable means of administration - a good workman inside the

organisation and a good ambassador outside. It should be a means of getting a job
done and an aid to getting it done well A good administrator should ensure that all
relevant factors are critically examined before a new form is designed and brought
into use and that existing forms are properly controlled and regularly reviewed.
Ordnance Factories Institute of Learning, Avadi, Chennai 600 0054

100
 REPORTS AND RETURNS

In the administrative process, the management has to perform-two types of

functions.

(i) Planning and

(ii) Control

Planning is to layout a course of action for the future. This requires clarification of
objectives, development of policies, design of programme, and design of systems
and methods.

Controlling is guiding the operations in acceptance with the plans and ensuring that
designed results are achieved.

For the above, two we require information. This information is having two
directional flows. The information which flows to the management is the basis for the
decision making. The information that flows from the management is the basis for
reporting results achieved. This return flow of information is as important as the initial
flow. As a matter of fact, it is the feed back which enables management to adjust the
plan. It also develops a sense of responsibility in person who reports on his
performance.

The information that flows to the management from the various levels in the
organisation is generally in the form of reports and returns. The necessity for reports
and returns has grown more because of the following factors :-

(1) The increase and complexity of activities of organisations and the

distance between the top and lower managements.

(2) Decentralization and delegation of authority.

(3) It is in the interest of the lower officials to send reports to the higher
ones as it will help the former to seek solutions to problems which they
are not able to find at their own level.

Differences between Reports and Returns

A report is generally in the narrative form with proper headings and sub-
headings; there is scope for elaboration and expressing personal opinion. Returns,
on the other hand, are in a tabular form, the format being prescribed by the
demanding authority and there is very little scope for expressing personal opinion.

However, both reports and returns are required for planning and control
purposes.

101
 INTRODUCTION

1. It is observed that the filing system of our correspondence including docketing

and nothings requires considerable improvement. To achieve this s system
has been evolved and explained in the succeeding paragraphs. It is
emphasised that no system can achieve the desired results unless the
persons concerned, with handling of correspondence are meticulous in their
duties.

NAME OF THE SYSTEM

2. The filing system explained below will be termed as the "Five digital system
(FDS) of filing". Fundamentally, this system is based on the "Whitehall system
of filing", as is followed in the Ministries at the Central Secretariat

PROCEDURE

3. Under the FDS each trench will be allotted block numbers of five digits
depending on the number of files likely to be operative in that branch, plus an
additional ten percent of reserve numbers. Along with these block numbers
the branch abbreviations will also be allotted. This function of allotment of
block numbers will be responsibility of the Establishment Branch.

ACTION WITHIN THE BRANCH

4. Every Branch Officer will make out a list of subjects being dealt with by his
Branch and allot file numbers from within the Block numbers issued to him by
the Est Section. The File numbers thus allotted will be prominently marked on
the Centre of the outer cover of the file. The following details will be marked
on the file cover;

(a) Name of the Branch in Block Capitals

(b) File Number
(c) Main Head
(d) Sub Head
(e) Details of connected files
(f) Security grading

5. The lay out of file cover is given in Appendix

A ALLOTTING OFLEETER REFERENCES

6. This is easily understood by an example. Let us presume that one of the file
numbers allotted within the Est Branch is 00004 for the year 75-76. Thus a
letter emanating from the Est Section will have the following reference:-

102
7. In the above example, 00004 indicates the file number, EST (to be marked in
Block) indicates the concerned branch initiating the letter, 75-76 indicates the
year of initiation (to coincide with financial year and Vol.I indicates the volume
number of the file. A file should not contain more than 150 letters. Thus after
every 150 letters or when ever the file becomes unwieldy a fresh file is
opened and hence a system of allotting volume numbers is necessary.
However, volume numbers will once again start serially from one with the
change of the year, i.e., wef 1 April of each year.

PAGE NUMBERING

8. All letters both outgoing and incoming are filed on the right hand inner side of
a file. These letters are called enclosures. All enclosures are page marked Let
us presume that the first letter receive consists of three pages; further it has
an annexure running into. 4 pages and also a trace, (sketch) of one page.
Page numbers are marked on the top right hand comer enclosed in a circles
as follows:-

(a) 1A-11A-2,1A-3, for the three pages of the letter.

(b) 1B-1,1B-2, lB-3,lB-4 for the 4 pages of the annexure.
(c) lC-1 for the sketch

9. Thus 1A-1 indicates the following:-

(a) The figure before the alphabet indicates that the letter is the first
enclosure (letter) of the file.
(b) The figure after the alphabet indicates the page number of the letter.
(c) To distinguish between the main letter, annexure and sketch different
alphabets are allotted.

10. Thus the twenty first letter in the file will be marked 21A-1,21A02 etc.,
depending on its number of pages.

11. In this system of page marking another salient aspect may be noted. The
figures following the alphabets will correspond to the page number typed on
the letter. It will therefore be necessary that page numbers are marked both
on the adverse and reverse if the subject matter of the letter is typed as such.
Otherwise only the obverse is to be marked.

DOCKETING AND NOTINGS

12. Docketing and page numbering are practically done concurrently. For the
purpose of docketing, sheets of paper are affixed to the left hand inner side of
the file cover with the tag on the right hand comer. Docket sheets and noting
sheets are same and in fact docketing and nothings are serially numbered
continuously on the docket sheets.

103
13. Let us presume that the twenty first letter No. 00041/EST/75-75/ dt 12 Apr 76
consisting of three pages have been Sled in the file numbers will therefore be
marked as 21A-1, 21A-1, and 21A-3. The dock sheet (on the left hand side)
will be marked as follows:-

21

No.00041/EST/75-75/Vol.1 12 Apr 76 21A-1 to 21A-3

14. Let us now presume that a nothing is to be initiated immediately with

reference to the twenty first letter. The noting on the docket will be as follows:-

Note 22

Ref:-21A-lto21A-2

1 ....................................................................................................................................
.......................................................................................................................................
2.....................................................................................................................................
.......................................................................................................................................

CM Sdxxxx
Dy M 9TS-1)
14 Apr 76

15. If after the reply of GM on the noting 22, the next letter, say No.
00044/EST%/75-76/Vol dt 20 Apr 76 was received, it will be page numbered
as 23A-1,23A-2, etc., and docketed under Note 23 as follows in the Docket
sheet.
23

00044/EST/75-76/Vol-l 23A-lto23A4
16. The following points need attention: -

(a) Number under which a letter is docketed and the figure prior to the
alphabet in the page number of the letter are the same.
(b) Page numbering is not consecutive like the page numbers of a book
(c) Docketing and nothings are carried out on the docket sheet
continuously and numbers allotted serially.
(d) In the case of a noting the work "Noting" is typed and underlined on the
top centre of the noting followed by the appropriate serial number.
However in the process of docketing only the serial number is written
and underlined
17. A specimen Docket cum Noting sheet is given in Appendix 'B'

104
 NOTES

18. Notes are records of correspondence giving directions/opinions decisions. As

explained above Notings and Docketing are consecutively numbered. The
note number is placed at the top centre of the note and underlined. It is then
followed with the reference (if necessary) such as "Ref Enclosures 4A-1 to
4A-6". Proper service writing must be followed in the lay out of the note; the
particulars of the person initiating the note including the date is typed on the
tight hand bottom of the note just as is done for internal correspondence. The
details of the addressee is given at die left hand bottom of the note. A
specimen copy of a to is give in Appendix 'B'

PART CASE FILES

19. A part case file is initiated on the following occasions:-

a) When the Main File is not available due to various reasons

b) When it is desired to consult simultaneously several offices /Branches

for the purpose of a decision.

20. The use of part case files must be kept to the barest minimum with in a
branch, part case files must be totally avoided. In fact this is pst to be
permitted at all since the branch officer can always refer to the Main File and
give decisions/directions as is required. However, quite often part case files
have to be floated to other branch or the Ministry. In such cases the head of
the section must maintain Register, wherein the following particulars are to be
kept:-

(a) Date of initiation f the Part Case File

(b) File Reference and Subject (Main Files reference to be give
(c) Details of Enclosures in the Part Case File
(d) Branch(s) to which the file has been sent
(e) Date part case file received and correspondence taken into the main
file giving Docket Number.
(f) Signature of the head of the section.

BACKWARD AND FORWARD REFERENCE

21. To enable quick cross reference, every office copy of letters despatched is
marked with a large cross at the margin as follows:-

BR FR

2A 12A

21. The above 'BR' and 'FR' indicate Backward and Forward reference
respectively and 2A, 12A indicate the page number of the backward/for letter
for reference.

105
 ADDITIONAL HINTS

22. To farther improve our efficiency some additional measures are given bellow:-

(a) Every branch must have a policy file wherein all policy letters are kept
Only copies of such letters may be kept in connected files or flouted to
branches if required

(b) Drafts for approval should NOT be destroyed but kept in original with
its corrections in the Main File.

(c) No remarks should be made on the transit record affixed to a file

indicating its movement as these ate invariably destroyed after the file
is received back by the originator. Such remarks must only be
endorsed under the relevant nothings of the file.

(d) File, must never be passed by hand from one individual to another. It
must be passed under proper registry.

CONCLUSION

24. Filing system is an essential function of the clerical staff. Its success therefore
depends in sincerity and a genuine. desire-to reflect the efficiency of the
Organisation.

APPENDIS 'A'

Refer Para 5
File No. ____________________________
Vol. ______________________________

REGIONAL TRAINING INSTITUTE

__________________BRANCH

Main Head ____________________________

Sub Head _____________________________

REFERENCE

PREVIOUS LATER
Date opened on ______________ File No.______________
Date closed on ______________ Vol No. ____ ________

106
APPENDIX 'B' Refer Para 17 and 18

SPECIMEN DOCKET CUM NOTING SHEET

1
00004 EST/75-76/Vol.I 14Mar76 1A-1 to 1A-4
1B-1 to 1B-6

2
MofD00051/Cord/LD 2lMar76 2A-1 to 2A-7
2B-1 to 2B-3
2B-1 to 2C-4

Note 3
Ref. Encl 2A

1. The GM is requested to give his decision on para 6 of letter please.

Sd xxxxxxxxxx
Dy m (Tools)
GM 21 Mar 76
Agreed

Sd xxxxxxxxxxxx
21 Mar 76.

00400/TS/75-76/Vol.I 30 Mar 76 4A-1 to 4A-7

Note 5

Ref encl 4A

1. ......................................................................................................... ...................
...............................................................................................................................
.....................................
Sd xxxxxxxxxx
M (Ts)
GM 10 Mar 76
Agreed

Sd xxxxxxxxxxxx
10 Mar 76.

107
 CCS (CONDUCT) RULES-1964
The Government servants are supposed maintain certain code of conduct.
These are laid down in the Central Civil Services (Conduct) Rules, 1964.

These rules are applicable to every person appointed to a Civil Service or

post including civilians in Defence Services.

These rules are applicable to every person appointed to a Civil Service or

post including civilians in Defence Services.

These rules shall not apply to a Railway Servant, a person holding a post in a
Railway Board and is subjected to Railway Services (Conduct) Rules, A member of
an All India Service.

According to Rule 3, every Government Servant shall at all times:-

(i) Maintain absolute integrity

(ii) Maintain devotion to duty: and
(iii) Do nothing which is unbecoming of a Government Servant.

MISCONDUCT:

Misconduct is the action or inaction of a Government servant which is in

violation of a rule of conduct, written or un-written. It can be safely stated that an act
or omission " contrary to or in breach of prescribed rules of conduct would constitute
misconduct for disciplinary proceedings. The code of conduct being not exhaustive it
would not be prudent to say that only that act or omission would constitute
misconduct for the purpose of disciplinary action, which is contrary to various
provisions in the conduct rules. Some other act or omission may as well constitute
misconduct.

It is now well settled that the misconduct or unbecoming conduct, or moral

turpitude need not necessarily relate to an activity in the course of employment and it
could relate to an activity outside the scope of employment.

Misconduct may be broadly dealt with under three different heads.

(a) Misconduct relating to duty.

(b) Misconduct relating to discipline
(c) Misconduct relating to morality.

It must have some rational connection or bearing on the contract of

employment. The following acts, conduct and commissions of a Government servant
amount to misconduct:-

108
1. If the act on conduct is prejudicial or likely to be prejudicial to the interests of the
master or to the reputation of the master.

2. If the act or conduct is inconsistent or incompatible with the due or peaceful

discharge of his duty to master.

3. If the act or conduct of a servant makes it unsafe for the employer to retain
him in service.

4. If the act or conduct of the servant is to grossly immoral that ail reasonable
man will say that the employee cannot be trusted.

5. If the act or conduct of the employee is such that the master cannot rely on
the faithfulness of his employee.

6. If the servant is abusive or disturbs peace at the place of his employment.

7. If he is insulting and insubordinate to such a degree as to be incompatible with

the continuance of the relation of master and servant.

8. If the servant Is habitually negligent in respect of the duties tor which he is

engaged.

9. If the neglect of the servant, though isolated, tend to cause serious

consequences.

10. Wilfill insubordination or disobedience, whether alone of in. combination with

others, in any lawful and reasonable order of a superior.

11. Theft and fraud, or dishonesty in connection with the employer's business or
property.

12. Strike, picketing, gherao, striking work or inciting others to strike work-in-
contravention of the provisions of any provisions of any law, or rule having the
force of law.

13. Gross moral misconduct, acts subversive of discipline, riotous or disorderly

behavior during works hours at the establishment or any act subversive of
discipline.

14. Riotous and disorderly behavior during and after the office hours or in office
premises.

15. Habitual late attendance.

16. Negligence or neglect of work or duty amounting to misconduct - Habitual -

negligence or neglect of work.

17. Habitual absence without permission and overstaying leave.

109
 :
18. Conviction by a original court"

NOTE:- The Terms 'servant' and 'master' have been used in court judgments to
indicate the relationship between subordinate Govt. servant and his
superiors in the hierarchy of all Central Govt. Offices.

Some of the other important conduct Rules are as Follows :-

1. No Govt. servant shall use his official position or influence directly or indirectly
to secure employment for any member of his family in any company or firm
having official dealing with the Govt. Servant.

2. No Government servant shall take part or be associated with any political

party in any manner.

3. No Govt. shall join an association the subject of which are prejudicial to the
interests of sovereignty and integrity of India.

4. Every Govt. servant should maintain secrecy of what comes to his knowledge
in discharge of his duties. Any breach of this is a very serious matter and will
result in dismissal from service.

5. No Govt. servant shall, except with the prior sanction of the Govt. shall
indulge .in collecting subscription / contributions to raise funds in pursuance
of any object.

6. No Govt. servant shall give or take dowry. Govt. takes a very serious view of
offences against woman. In case of dowry death of a woman, her husband, if
he is a Govt. servant, will be placed under suspension immediately getting a
police report if prima-facie case against her husband, service and disciplinary
action will be taken against him.

7. A Govt. servant should not undertake part in any employment without prior
sanction of the company authority and / or indulge in private trade.
8. Bigamous marriage is forbiden in case of Govt. servant in general unless
permitted under personal law violation will result in termination of service.
9. Every Govt. servant (NGOs & Gos) has to submit return of his immovable
properties.

10. Sale / purchase of movable property beyond Rs. 5,000/- case of class III or IV
and beyond Rs. 10000/- in case of class II and I Govt. servant shall be
reported to the Government within one month. If the deal is not through
authorised dealer, prior sanction would be necessary Similarly, there are
some restrictions in respect to immovable property also.

11. A Govt. servant should strictly abide by any relating to intoxicating drinks or
drugs.

110
The following Acts and omission shall also be treated as misconduct :-

a) Wilful insubordination or disobedience, whether alone or in combination

with others, to any lawful and reasonable order of superior.

b) Theft, fraud or dishonesty in connection with the employer's business

or property. Wilful damage to or loss of employer's goods or property.

c) Taking or giving bribes or any illegal gratification.

d) Habitual absence without leave or absence without leave for than ten
days.

e) Habitual late attendance

f) Habitual breach of any law applicable to the establishment

g) Riotous or disorderly behavior during working hours at the

establishment or any aft subversive of discipline.

h) Habitual negligence or neglect of work

i) Frequent repetition of any act or omission for which a fine may be

imposed to maximum of 2 percent of the wages in a month

j) Striking work or inciting others to strike work in contravention of the

provisions of any law or a rule having the force of work

111