Page 10 - Office Practice and Accounting -9

The part played by the office in enhancing the effectiveness of the administrative
actions invariably makes it the focal point of all the activities of an organization, the
centre of all administrative functions.

Whether it is a government department, or a business enterprise or an educational
institution, office is vital for its functioning. In the case of a business enterprise,
operations must be planned. Planning is to be followed by execution. These processes
of management require control, communication and coordination of effort to achieve
the well-defined objective. Besides, most of the commercial transactions of the
enterprise necessitate clerical procedures to deal with orders, dispatch invoicing and
payment. The executive processes and administrative routines of a business rely on
office. To sum up, the importance of the office arises due to the following factors:

1. Office as information centre: It can be described as the information center or
data bank of an organization. All kinds of information and figures, whether
past or present, are available in the office. The information furnished by the
office serves as the basis for forecast, planning and control.
2. Channel of communication: Office is the channel through which
communications, especially written communications, move from top to bottom
and in the reverse order as well. An organization would fail, in spite of the
best organizational talent, if objectives, policies, orders and results are not
communicated in either direction.
3. Aids in coordination: The process of coordination is almost impossible
without the presence of office. Office furnishes the machinery for coordination.
Coordination is possible due to the links that the office provides for various
activities of the organization. Office provides the necessary information and
knowledge for coordination.
4. Aids in managerial controls: Control can be described as the measurement
and correction of the performance of subordinates in order to make sure that
enterprise objectives and the plans made to achieve them are accomplished.
Control is thus a necessary function of management. Controlling required (i)
establishment of standards, (ii) measurement of performance against these
standard; and (iii) correction of deviations from standards and plans. We
cannot fulfill the requirements of control without the help of office. Necessary
data, information and plans are prepared and presented on paper. All this is
necessarily a clerical operation.
5. Importance to workers: Effective human relations require effective organization.
Preparation of wage and salary sheets and their payment are the responsibilities
of the office. Office is also responsible for operating employee benefit schemes,
e.g., the pension and the provident fund schemes. In the absence of a good
office, the organization may face disgruntled workers.
6. Importance to shareholders and creditors: Office serves as the link among
the shareholders. Issue of share certificates, share transfer, issue of dividend
warrants, issue of notice of company meetings and answering different inquiries

6 GREEN – Office Practice and Accounting 9