Taylor's Scientific Management (USA 1856-1915):

Started as an apprentice machinist in Philadelphia, in USA. He rose to be the chief engineer at the Midvale Engineering Works and later on served with the Bethlehem Works where he experimented with his ideas and made the contribution to the management theory for which he is so well known. Frederick Winslow Taylor well-known as the founder of scientific management was the first to recognize and emphasis the need for adopting a scientific approach to the task of managing an enterprise. He tried to diagnose the causes of low efficiency in industry and came to the conclusion that much of waste and inefficiency is due to the lack of order and system in the methods of management. He found that the management was usually ignorant of the amount of work that could be done by a worker in a day as also the best method of doing the job. As a result, it remained largely at the mercy of the workers who deliberately shirked work.

He therefore, suggested that those responsible for management should adopt a scientific approach in their work, and make use of "scientific method" for achieving higher efficiency. The scientific method consists essentially of

(a) Observation

(b) Measurement

(c) Experimentation and

(d) Inference.

He advocated a thorough planning of the job by the management and emphasized the necessity of perfect understanding and co-operation between the management and the workers both for the enlargement of profits and the use of scientific investigation and knowledge in industrial work. He summed up his approach in these words:

• Science, not rule of thumb
• Harmony, not discord
• Co-operation, not individualism
• Maximum output, in place of restricted output
• The development of each man to his greatest efficiency and prosperity.

Elements of Scientific Management: The techniques which Taylor regarded as its essential elements or features may be classified as under:

1. Scientific Task and Rate-setting, work improvement, etc.

2. Planning the Task.

3. Vocational Selection and Training

4. Standardization (of working conditions, material equipment etc.)

5. Specialization

6. Mental Revolution.

1. Scientific Task and Rate-Setting (work study): Work study may be defined as the systematic, objective and critical examination of all the factors governing the operational efficiency of any specified activity in order to effect improvement.

Work study includes.

(a) Methods Study: The management should try to ensure that the plant is laid out in the best manner and is equipped with the best tools and machinery. The possibilities of eliminating or combining certain operations may be studied.

(b) Motion Study: It is a study of the movement, of an operator (or even of a machine) in performing an operation with the purpose of eliminating useless motions.

(c) Time Study (work measurement): The basic purpose of time study is to determine the proper time for performing the operation. Such study may be conducted after the motion study. Both time study and motion study help in determining the best method of doing a job and the standard time allowed for it.

(d) Fatigue Study: If, a standard task is set without providing for measures to eliminate fatigue, it may either be beyond the workers or the workers may over strain themselves to attain it. It is necessary, therefore, to regulate the working hours and provide for rest pauses at scientifically determined intervals.

(e) Rate-setting: Taylor recommended the differential piece wage system, under which workers performing the standard task within prescribed time are paid a much higher rate per unit than inefficient workers who are not able to come up to the standard set.

2. Planning the Task: Having set the task which an average worker must strive to perform to get wages at the higher piece-rate, necessary steps have to be taken to plan the production thoroughly so that there is no bottle neck and the work goes on systematically.

3. Selection and Training: Scientific Management requires a radical change in the methods and procedures of selecting workers. It is therefore necessary to entrust the task of selection to a central personnel department. The procedure of selection will also have to be systematized. Proper attention has also to be devoted to the training of the workers in the correct methods of work.

4. Standardization: Standardization may be introduced in respect of the following.

(a) Tools and equipment: By standardization is meant the process of bringing about uniformity. The management must select and store standard tools and implements which will be nearly the best or the best of their kind.

(b) Speed: There is usually an optimum speed for every machine. If it is exceeded, it is likely to result in damage to machinery.

(c) Conditions of Work: To attain standard performance, the maintenance of standard conditions of ventilation, heating, cooling, humidity, floor space, safety

etc., is very essential.

(d) Materials: The efficiency of a worker depends on the quality of materials and the method of handling materials.

5. Specialization: Scientific management will not be complete without the introduction of specialization. Under this plan, the two functions of 'planning' and 'doing' are separated in the organization of the plant. The `functional foremen' are specialists who join their heads to give thought to the planning of the performance of operations in the workshop. Taylor suggested eight functional foremen under his scheme of functional foremanship.

(a) The Route Clerk: To lay down the sequence of operations and instruct the workers concerned about it.

(b) The Instruction Card Clerk: To prepare detailed instructions regarding different aspects of work.

(c) The Time and Cost Clerk: To send all information relating to their pay to the workers and to secure proper returns of work from them.

(D) The Shop Disciplinarian: To deal with cases of breach of discipline and absenteeism.

(e) The Gang Boss: To assemble and set up tools and machines and to teach the workers to make all their personal motions in the quickest and best way.

(f) The Speed Boss: To ensure that machines are run at their best speeds and proper tools are used by the workers.

(g) The Repair Boss: To ensure that each worker keeps his machine in good order and maintains cleanliness around him and his machines.

(h) The Inspector: To show to the worker how to do the work.

6. Mental Revolution: At present, industry is divided into two groups – management and labour. The major problem between these two groups is the division of surplus. The management wants the maximum possible share of the surplus as profit; the workers want, as large share in the form of wages. Taylor has in mind the enormous gain that arises from higher productivity. Such gains can be shared both by the management and workers in the form of increased profits and increased wages.

Benefits of Scientific Management:

Taylor's ideas, research and recommendations brought into focus technological, human and organizational issues in industrial management.

Benefits of Taylor's scientific management included wider scope for specialization, accurate planning, timely delivery, standardized methods, better quality, lesser costs, minimum wastage of materials, time and energy and cordial relations between management and workers. According to Gilbreths, the main benefits of scientific management are "conservation and savings, making an adequate use of every one's energy of any type that is expended". The benefits of scientific management are:-

1. Replacement of traditional rule of thumb method by scientific techniques.

2. Proper selection and training of workers.

3. Incentive wages to the workers for higher production.

4. Elimination of wastes and rationalization of system of control.

5. Standardization of tools, equipment, materials and work methods.

6. Detailed instructions and constant guidance of the workers.

7. Establishment of harmonious relationship between the workers.

8. Better utilization of various resources.

9. Satisfaction of the needs of the customers by providing higher quality products at lower prices.

Criticism:

1. Worker's Criticism:

(a) Speeding up of workers: Scientific Management is only a device to speed up the workers without much regard for their health and well-being.

(b) Loss of individual worker's initiative: Scientific Management reduces workers to automatic machine by taking away from them the function of thinking.

(c) Problem of monotony: By separating the function of planning and thinking from that of doing, Scientific Management reduces work to mere routine.

(d) Reduction of Employment: Scientific Management creates unemployment and hits the workers hard.

(e) Weakening of Trade Unions: Under Scientific Management, the important issues of wages and working conditions are decided by the management through scientific investigation and the trade unions may have little say in the matter.

(f) Exploitation of workers: Scientific Management improves productivity through the agency of workers and yet they are given a very small share of the benefit of such improvement.

2. Employer's Criticism:

(a) Heavy Investment: It requires too heavy an investment. The employer has to meet the extra cost of the planning department though the foreman in this department do not work in the workshop and directly contribute towards higher production.

(b) Loss due to re-organization: The introduction of Scientific Management requires a virtual reorganization of the whole set-up of the industrial unit.

Work may have to be suspended to complete such re-organization.

(c) Unsuitable for small scale firms: various measures like the establishment of a separate personnel department and the conducting of time and motion studies are too expensive for a small or modest size industrial unit.

CRM from the Business Strategy Perspective

CRM from the Business Strategy Perspective:

The Business Strategy perspective has most in common with many of the lessons and topics contained on this website, and indeed within the field of marketing itself. The diagram below shows the Marketing Teacher Model of CRM and Business Strategy. Our model contains three key phases - customer acquisition, customer retention and customer extention, and three contextual factors - marketing orientation, value creation and innovatove IT.

We now consider the Business Strategy Perspective on CRM. Here, we propose a model, which is a hybrid, and typical of many of the models and diagrams of CRM that you will find on The Internet and in popular books on the topic of eMarketing/eCommerce. The model has three key phases and three contextual factors:

Three key phases:

• 1. Customer Acquisition.
• 2. Customer Retention.
• 3. Customer Extension.

Three contextual factors:

• 4. Marketing Orientation.
• 5. Value Creation.
• 6. Innovative IT.

1. Customer Acquisition - This is the process of attracting our customer for the first their first purchase. We have acquired our customer.

Growth - Through market orientation, innovative IT and value creation we aim to increase the number of customers that purchase from us for the first time.

2. Customer Retention - Our customer returns to us and buys for a second time. We keep them as a customer. This is most likely to be the purchase of a similar product or service, or the next level of product or service.

Growth - Through market orientation, innovative IT and value creation we aim to increase the number of customers that purchase from us regularly.

3. Customer Extension - Our customers are regularly returning to purchase from us. We introduce products and services to our loyal customers that may not wholly relate to their original purchase. These are additional, supplementary purchases. Of course once our loyal customers have purchased them, our goal is to retain them as customers for the extended products or services.

Growth - Through market orientation, innovative IT and value creation we aim to increase the number of customers that purchase additional or supplementary products and services.

4. Marketing Orientation - means that the wholes organisation is focused upon the needs of customers. Customer needs are addressed by the Three Levels of a Product whereby the organisations not only supplies the actual, tangible product, but also the core product and its benefit, and also the augmented product such as a warranty and customer service. Marketing orientation will focus upon the needs of consumers for all three levels of a product. (N.B. 'market' orientation and 'marketing' orientation are not the same).

5. Value Creation - centers on the generation of shareholder value based upon the satisfaction of customer needs (as with marketing orientation) and the delivery of a sustainable competitive advantage.

6. Innovative IT - is exactly that - Information Technology must be up-to-date. It should be efficient, speedy and focus upon the needs of customers. Whilst IT and/or software are not the entire story for CRM, it is vital to its success. CRM software collects data on consumers and their transactions. Huge databases store data on individuals and groups of individuals. In some ways, CRM means that an organisation is dealing with a segment of one person, since every consumer displays different purchasing habits and preferences. Organizations will track individuals, and try to market products and services to them based upon similar buyer behavior seen in other individuals (e.g. When Amazon tells you those customers that viewed/bought the same product as you, also bought another product).

CRM from the Customer Life Cycle (CLC) Perspective

The Customer Life Cycle (CLC) has obvious similarities with the Product Life Cycle (PLC). However, CLC focuses upon the creation of and delivery of lifetime value to the customer i.e. looks at the products or services that customers NEED throughout their lives. It is marketing orientated rather than product orientated, and embodies the marketing concept. Essentially, CLC is a summary of the key stages in a customer's relationship with an organisation. The problem here is that every organisation's product offering is different, which makes it impossible to draw out a single Life Cycle that is the same for every organisation.

Let's consider an example from the Banking sector. HSBC has a number of products that it aims at its customers throughout their lifetime relationship with the company. Here we apply a CLC. You can start young when you want to save money. 11-15 year olds are targeted with the Livecash Account, and 16-17 year olds with the Right Track Account. Then when (or if) you begin College or University there are Student Loans, and when you qualify there are Recent Graduate Accounts.

When you begin work there are many types of current and savings account, and you may wish to buy property, and so take out a mortgage. You could take out a car loan, to buy a vehicle to get you to work. It would also be advisable to take out a pension. As you progress through your career you begin your own family, and save for your own children's education. You embark upon a number of savings plans and schemes, and ultimately HSBC offer you pension planning (you may want to insure yourself for funeral expenses - although HSBC may not offer this!).

This is how an organization such as HSBC, which is marketing orientated, can recruit and retain customers, and then extend additional products and services to them - throughout the individual's life. This is an example of a Customer Life Cycle (CLC).

Another important point is that a lifetime CLC is made up many shorter CLC's. So, for example, Volkswagen Cars retains a customer for many years and one can predict the products that meet a customers needs throughout his or her family lifetime. However the purchase of each car, will in itself be a CLC with many Customer Touch Points. The consumer may need a bigger vehicle as his or her family expands - so they visit VW's website and register.

The customer reviews models and books a test-drive with her or his local dealer. He or she decides to buy the car and arranges finance. The car is then delivered from the factory, and returns every year for its annual service. Then after three years, the customer decides to trade in his or her car, and the cycle begins again. The longer-term life cycle is simply the shorter-term life cycles viewed consecutively.

CRM Perspectives [Information Technology]

CRM is a term that is often referred to in marketing. However, there is no complete agreement upon a single definition. This is because CRM can be considered from a number of perspectives. In summary, the three perspectives are:

1. CRM from the Information Technology Perspective.

2. CRM from the Customer Life Cycle (CLC) Perspective.

3. CRM from the Business Strategy Perspective.

1. CRM from the Information Technology Perspective.

From the technology perspective, companies often buy into software that will help to achieve their business goals. For many, CRM is far more than a new software package, the renaming of traditional customer services, or an IT-based customer management system to support sales people. However, IT is vital since it underpins CRM, and has the payoffs associated with modern technology, such as speed, ease of use, power and memory, and so on. Information Technology (IT) and CRM have three key elements, namely Customer Touch Points, Applications, and Data Stores. This section is based loosely upon Raisch (2001) The e-Marketplace.

Customer Touch Points are vital since your business has a marketing orientation and focuses upon the customer and his or her current and future needs. This is the interface between your organisation and its customers. For example you buy a new car from a dealership, and you enter a showroom. The dealership is a contact point. You meet with a salesperson whom demonstrates the car. The salesperson is a contact point. You go home and look at the car manufacturer's website, and then send the company an e-mail. Both are contact points. Other contact points include 3G telephone, video conferencing, Interactive TV, telephone, and letters.

Applications are essentially the software and programmes that support the process. Incidentally, this is what some would call CRM - but we know better. Applications serve Marketing (e.g. data mining software* and permission marketing**), Sales (e.g. monitoring Customer Touch Points), and Service (e.g. customer care).

Data Stores contain data on every aspect of the customer, and the Customer Life Cycle (CLC). For example, an organisation keeps data on the products you buy, when you buy them, and where they are sent. Data is also kept on the web pages that you visit and the products that you consider, but then do not buy. Leads are stored here. Data on the life time value of individual customers is stored here, as well as details of how and when the customer was recruited, how - and for how long - individuals have been retained, and details of any products that have been extended to individuals are also stored. The data is analysed using Applications.

*Data Mining is where an organisation evaluates large Data Stores for patterns, or relationships between groups or individuals (or segments). Applications present 'patterns' in a format that can be used for marketing decision-making.

** Permission Marketing is where a customer elects to accept (or 'opt-in' to) marketing material from an organisation e.g. where you buy insurance and the vendor asks if you wish to receive further details from them, or similar organisations. It is so called because marketers need your 'permission' to market to you. Permission marketing can occur at any of the Customer Touch Points.

Needs / objectives of CRM:

1. Enable the company to identify, contact attract and acquire new customers:

CRM allows the company to focus its limited marketing resources on the most promising target markets with the highest potential value. This is typically done using the information generated by CRM application which

a) Automatically generates customer and market profiles

b) Identify and target market with high revenues

c) Generates, leads, tracks marketing campaigns across a variety of media

d) Selects appropriate contact media, plans promotions and incentives

e) Manages the proposal process through negotiations to close.

2. Obtains a better understanding of the customers- their wants and needs:

CRM applications, often used in combination with data warehousing, e-commerce applications and call centers, allow companies to gather and access information about customers buying behavior, wants in terms of products or services provided by the company. The information is used in planning and execution go marketing campaigns. It enables customers to seek products and reveal their preferences in an interactive manner.

3. Defines the appropriate product and service offering and match it to the unique needs of the customer:

CRM provides customization and personalization capabilities that gives customers the power to view the enterprise in a way that they can relate to, there by making it easier for them to do business with it. This includes configuration, pricing, quotation, catalog and personal generation capabilities that harness the power of Internet while ensuring the flexibility to respond quickly to changing technical and business conditions.

4. Manages and optimizes company’s sales cycle:

The productivity of the sale process is increased by accurating the contracting process and improving revenue velocity. This is accompanied to capabilities such as online order entry, credit card processing, tax calculations, auctions, billing, order status and payment processing. CRM solutions also include tools, which provide the ability to communicate important information from supply chain modules to the customer interface in real time. These tools can help in determining feasibility, profitability and delivery dates, while understanding the constraints of the entire supply production and logistics chain across multiple channels and enterprises.

5. Increases retention of existing customers through improved sales, service and support:

CRM applications document all post –close service and support related interaction with customers, record customer requests and collect feedback from variety of communication channels and use the information to anticipate the demand for service and technical assistance and maximize customer satisfaction and retention while maximizing customer service staff. The goal is to ensure greater customer loyalty. CRM provides capabilities for providing online support information, online product registration to an electronic help desk, self service support logging and tracking and integration with call centres.

6. Identifies Cross selling and up selling opportunities:

CRM can help in identifying opportunities for cross selling and up selling of higher value added services to the existing customers, based on their past purchasing behaviour.

Definition of CRM:

Customer Relationship Management (CRM) is a comprehensive strategy and process of acquiring, retaining and partnering with selective customers to create superior value and strong relationship with customers.

A commonly cited definition of CRM is that of CRM (UK) Ltd (2002), as follows:

“Customer Relationship Management is the establishment, development, maintenance and optimisation of long-term mutually valuable relationships between consumers and organizations”.

CRM is neither a product, nor service but a business strategy to learn more about customer behaviour and requirements in order to create long term relationship with them. CRM involves use of technology in attracting new and profitable customers while forming tighter bonds with existing one.

Managerial Skills

Manager:

Manager is a person who undertake the tasks and function of managing at any level, in any kind of enterprise.

Managerial Skills:

There are four skills of managers are expected to have ability of:

(1)Technical skills: Technical skills that reflect both an understanding of and a proficiency in a specialized field. For example, a manager may have technical skills in accounting, finance, engineering, manufacturing, or computer science.

(2)Human Skills: Human skills are skills associated with manager’s ability to work well with others, both as a member of a group and as a leader who gets things done through other.

(3)Concept Skills: Conceptual skills related to the ability to visualize the organization as a whole,
discern interrelationships among organizational parts, and understand how the organization fits into the wider context of the industry, community, and world. Conceptual skills, coupled with technical skills, human skills and knowledge base, are important ingredients in organizational performance.

(4) Design Skills: It is the ability to solve the problems in ways that will benefit the enterprise. Managers must be able to solve the problems.

Skills of management at different levels.

The Skills vary at different levels they are as follows:
Top management ---------------Concept and design Skills.
Middle management ------------Human Skills.
Supervisor’s --------------------Technical skills.

Management Definition

“Management is an art of knowing what do you want to do and then seeing that is is done in the best and cheapest way.”-F. W. Taylor

“To manage is to forecast, to plan, to organize, to command to co-ordinate and control". by Henry Fayol

“Management is a distinct process consisting of planning, organizing, actuating and controlling performance t determine and accomplish the objectives by the use of people and resources,”by george R. Terry

“Management is the creation and maintenance of internal environment is an enterprise where individuals working in groups can perform efficiently and effectively toward the attainment of group goals. It is an art of getting the work done through and with people in formally organized groups". by Koontz and O’Donnel

Office — Meaning and Objectives

If you visit a firm, school or hospital you will find that a number of activities are being performed, such as letters received, dispatched, typing, photocopying, word processing, filing, handling of office machines etc. The place where all such activities are performed is known as office. Thus office is a service department of an organization, which is connected with the handling of records and provision of various services like typing, duplicating, mailing, filing, handling office machine s , keeping records , drafting , using information, handling money and other miscellaneous activities.

Definition of office

Some of the popular definitions of office are as follows:

• ‘‘Office is a place where clerical operations are carried on’’.—Denyer, J.C.

• ‘‘Office is a unit where relevant records for the purpose of control, planning and efficient management of the organization are prepared, handled and preserved. It provides facilities for internal and external communication and coordinates activities of different departments of the organization’’. —Littlefield, Rachel and Caruth.

The above definitions highlight the following characteristics—

• collecting information
• processing information
• storing information
• coordinating information
• distributing information

Therefore, an office may be defined as a place where all the activities concerned with collecting, processing, storing and distributing information for efficient and effective management of an organisation are carried out. In every modern organisation, be it a business concern or a Government department, there has to be an office. It is essential for the efficient management of the organisation.

Objectives of an office

The main objectives of an office are as follows:

1. Aid to Management: The office provides aid to management in performing the following functions:

(a) Direction: Direction and guidance of management to various sections and departments are issued through the office.

(b) Communication: The office serves as a communication channel between different parts of the organisation. It handles mail.

(c) Planning: The office helps management in planning for smooth functioning and progress of the organisation b y providing necessary information and data.

(d) Coordination: The office also facilitates co-ordination by maintaining links among departments.

2. Preserving Records: The office maintains necessary books and records of the organisation.

3. Providing Information: It provides the right kind of information to management at the right time.

4. Providing Office Services: It provides clerical and secretarial services to different executives.

5. Distribution of work: The office distributes the work among various employees and identifies their duties and functions.

6. Selection and Appointment: It also handles selection and appointment of employees. In short, the office is an important and indispensable part of every organisation.

Orgin Of Entrepreneurship in India

EMERGENCE OF THE ENTREPRENEURIAL CLASS IN INDIA

• During earlier times India’s prosperity attracted communities across boundaries

• Strategies adopted by Mughals and Turkish

Turk Mughals settled down in India and shared the prosperity. . They bought currency with them and disrupted the barter system

• Strategy of the British

Wanted to offload surplus supply due to Industrial Revolution in India to balance the demand and supply situation in U.K

Managed to acquire power and became the ruler.

Banned manufacturing in India. Sent all raw materials (cotton, oilseeds etc) to UK for conversion and value addition thus transferring wealth to UK

• 18^th Century

Indian Industry remained non started. Major thrust was on cash crops neglecting food grains resulting in severe famine.Indian Economy was dominated by British economy.

• 1920

World war prevented transfer of raw materials to Manchester. British decided to manufacture in India itself . Initiated the first Indian Industry. The Mumbai Textile Mills

• 1930s to mid 1940s

Mahatma Gandhi directed his captains to set the basic Infrastrure for Industrial and Economic development. Theses are the founder entrepreneurs of India. They developed various areas of basic infrastructure.

a)JRD Tata: Aviation, steel, railway, post & telegraph, power, roads, textile etc

b)G.D Birla-Textgile, vehicles, power, cement, chemicals, heavy industries, aluminum, cement etc

c) S. L Kirloskar-Machine tools, farm equipments, pumps etc

d) Jamnalal Baja-Two wheelers, 3 wheelers etc

• Independence 1947

British went back leaving the business to their employees/agents/market intermediaries.

• Late 1960s

Nationalisation of banks and Insurance companies made available huge funds for SSI and entrepreneurial developemt.It made investment available to common man challenging business monopoly

• 1970s to mid 1985

Emergence of new generation entrepreneurs because of funds and supporting govt policies.

Technocrats , artisans , rural craftsman, educated, uneducated youngsters created the greatest ever SSI development.

Resulted in excellent interdependence of SSI ands organized sector creating highest ever growth rate of 8.9% and very high addition to GDP.

Organised sector could expand, diversify without any direct investment and SSI could share the prosperity.

• Mid 1980s

Indian industry remained protected by license raj, permits, quotas, monopolistic market resulting into losing export and entry of cheaper better goods in gray market(Germany & Japan) resulting in worse BOP Situation and industrial sickness. Closure of several industries in organized sector.

• 1990s

Liberalisation sets reforms rolling by scrapping export regulations.Delicensing, making import and export simpler, direct FDI in all sectors, concessions for technical know-how and collaboration. Indian entrepreneurship started.

• Mid 1990s

Third generation of entrepreneurs Rahul Baja, Mahindra, Ambani, Ratan Tata, Kumarmangalam Birla proved their competencies in managing various large companies

• 2000

Indian Entrepreneurship took great leap in the global market entering in to service Industry (IT, BPO, Bio Technology, hospitality etc)

WHO IS AN ENTREPRENEUR?

An entrepreneur is a person with a dream, originality and daring, who acts as the boss, who decides as to how the commercial organization shall run, who coordinates all activities or other factors of production, who anticipates the future trend of demand and prices of products.

We can define entrepreneur as one who innovates, raises money, assembles inputs, choose managers and sets the organization going with his ability to identify them.

As per Peter Drucker- “An entrepreneur is one who always searches for change, responds to it as an opportunity. Entrepreneurs innovate. Innovation is a specific instrument of entrepreneurship”.

As per Joseph A. Schumpeter- “Entrepreneur is one who innovates, raises money, and assembles inputs, chooses managers and sets the commercial organization going with his ability to identify them and opportunities which others are not able to identify and is able to fulfill such economic opportunities”.

As per Walker- "An entrepreneur is one who is endowed with more than average capacities in the task of organizing and co-coordinating the various factors of production. He should be a pioneer, a captain of industry".

Functions of a Modern Office

Functions of a Modern Office

An office is primarily concerned with collection and supply of information. Accurate and up to date information relating to organisation and other agencies affecting the organisation is always required for taking decisions and formulating policies. Besides, office has assumed many other responsibilities, such as safe guarding assets, personnel management, and procurement of assets etc., which are incidental to the primary function.

Therefore, the functions of a modern office may be classified into two categories:

(a) Basic functions, and (b) Administrative functions.

Basic functions

Basic functions are those functions of an office which need to be performed in all types of organisations. They are mainly related to receiving and giving of information. These basic functions are as follows:

1. Collecting information. The office receives or collects information about various activities of the organisation. The information may be collected from internal or external sources. Internal sources may be employees and various departments of the organisation. The external sources are customers, suppliers and Government Departments etc. From internal sources information may be received in the form of letters, circulars, reports etc., and external sources provide information through letters, orders, invoices, inquiries, reports, questionnaires etc. The executives of the organisation may also collect information while visiting other organisations.

2. Recording information. The office keeps record of information collected from various sources to make it readily available to the management. The information is kept in the form of correspondence, reports, statements, circulars, lists, charts, registers, books, etc. An office has also to maintain records as prescribed under law. The registered office of a company is required to maintain Register of Members under the Companies Act, 1956.

3. Arranging, analysing and processing the information. The information collected in an office is generally not in the form in which it may be used by the management. Therefore, facts and figures collected have to be arranged, processed, organised and analysed to make them useful to the management. In this connection financial statement, statistical statements, charts, lists, reports, summaries are prepared.

4. Preserving Information. The information is properly sorted out and preserved in the most economic and scientific manner. Various types of equipments, filing cabinets, etc. are used for preserving records. Unnecessary and out-dated records are destroyed to make space for new and valuable records.

5. Supplying information. All accumulated and processed information is useless unless it is communicated. The office serves as a two way channel for communication. On the one hand, it supplies the collected, recorded and processed information to the management and on the other hand, the policy decisions, guidelines and instructions issued by the management to the departments are also routed through the office. The information may be supplied verbally or in writing.

Administrative Functions

Administrative functions are in addition to the basic functions. But the office cannot hope to work smoothly without them. These relate to the tasks of protecting and safeguarding assets, maintaining and enhancing the operating efficiency, stationery control, choice and

use of the office equipments and selection, training, placement, and remuneration of the personnel etc. The following functions are normally considered as administrative functions of an office:-

1. Management functions. Various functions of management are also applicable to the management of an office functions. Office work has to be planned, organised and executed according to the plan. Control is exercised to ensure efficiency of operations in the office. Staffing, directing, communicating, co-ordination, motivating are also important for the management of offices.

2. Instituting office systems and routines An office has to develop systems and procedures for providing better services to other departments. Each phase of office work is carefully analysed and a proper procedure is developed for it. Proper sequencing of different tasks is necessary to ensure continuous flow of work.

3. Procuring stationery and supplies Adequate supply of office stationery of proper quality is necessary for the efficient performance of office work. The office purchases standard quality paper, pens, ink and other stationery items, maintains the stock and issues them only on demand.

4. Designing and control of office forms Use of standardized forms simplifies office operations. It is the responsibility of the office to design, standardize, provide and control the forms to be used in the office as well as in other departments of the enterprise.

5. Purchasing office equipments and furniture Efficient and economical performance of office work requires proper furniture, equipment and machines. Office has to arrange for selection and purchase of these items from reliable suppliers. It has also to ensure timely availability of furniture etc., to departments and employees to facilitate proper utilization, as well as arrange for maintenance, servicing and replacement according to need.

6. Safeguarding of Assets Different types of assets are maintained in an organization. The assets must be protected against damages and losses on account of fire, theft etc. An efficient control system is exercised by office to safeguard the assets.

7. Personnel Management The efficiency of office work depends very much on the employees. Their appointment, training, promotion, appraisal and welfare are the functions of the office.

8. Maintaining Public Relations An organization depends on public reputation and goodwill for its existence and progress. Maintaining public relations is also the responsibility of the office. Most organizations have reception counters to greet and receive visitors to the organization. The above are some of the more important functions of office. The nature of functions differs from organization to organization as per needs.

IMPROTANCE OF AN OFFICE

The importance of an office is discussed below:

1. Office as a service centre Office provides the services of typing, duplicating, printing, providing information from records, supplying forms and stationery etc. No organisation can work smoothly without these services. Therefore, office is sometimes referred to as a service department.

2. Office as a memory centre All types of information are arranged and preserved in the office and supplied to management as and when required. Various transactions and activities of the organisation which are on record are preserved by the office. Therefore, office may be described as the memory centre, information centre or brain of an organisation.

3. Office as a channel of communication It is through the office that communication, especially written communication, takes place between different departments and different levels of the organisation. An organisation would fail, in spite of the best organisational resources, if the communication system is not effective.

4. Office as a co-ordinator Office maintains links with all the departments of an organization and keeps every department informed about what is happening in other departments. Thus, it provides the basis of co-ordination between departments. For example, office informs the production department about changing tastes and fashion in the market as revealed by the market survey conducted by marketing department. Similarly marketing department is supplied information about the cost of production to fix appropriate prices.

5. Office as a controller Control is a necessary function of management executed through office. It requires (i) establishment of standards, (ii) measurement of performance against the standard (iii) ascertainment of deviation, and (iv) correction of deviations from standards and plans.

6. Office as a intermediary The office maintains contact with outsiders and links the organization with customers, suppliers, etc. It attends to the enquiries, orders and complaints, and maintains liaison between government and the organisation.

7. Importance of office to employees Maintenance of attendance records, and preparation of wage and salary sheets for timely payment are the responsibility of the office. It is also responsible for operating different employee benefit schemes, like group insurance, provident fund, etc.

8. Importance of office to customers The office acts as a link between the business and its customers. Enquiries, orders, and complaints of customers are taken care of by the office. It also advertises the products and their uses for information of the customers.

9. Importance to general public The office also acts as a link between general public and the Nature and functions of office organisation. It is responsible for creating a good image for the organisation in the minds of people.