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BBA Part II Office Management M.D.S.

University Ajmer

An office may be regarded as a place where the control mechanisms of an org. are located. GEORGER TERRY. Meaning of office:- 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 deal with. It is A central place where all sorts of clerical work is done to coordinate and control the affairs (business concern) of the whole organization. Definitions:- The acts of collecting, processing, storing, and distributing information comprise the functions of the office. Georage R. Terry An office is a place where business is transacted or professional services are available. Random House Dictionary. Objectives of office or office Mgt. The Main purpose (objectives) of an office are:1 2 3 4 5

To direct and co-ordinate the activities of the various department. To plan the policies of the business and ensure their implementation. To preserve all the records of the business. To handle inward correspondence. To maintain accounts, Statutory and Non- Statutory books, etc of the business.

Responsibilities for office work:- Meaning and Definition Office work includes verbal transmission of information as production of written records and reports in order to provide the measures for quickly summarizing large amount of data to supply a factual basis of managerial control. Communication, Mechanical data processing, planning and scheduling etc., are all with in the scope of office activities, and may be referred to as office work. Prime Responsibility or office activities are:- In organizing a new office, the office manager must first determine the prime reason for the existence of that office and then add necessary ingredients to bring about an efficient operating entity that achieves predetermined results.
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Processing income mail. Processing outgoing mail. Dictation. Transcription. Typing. Printing. Copying. Filing. Records Retrieval. Records Disposal. Communication.

A Complete of office activities which include( Dicter Jaeger):1 2 3 4 5 6

Accounting. Internal auditing. Credit and collection. Company wide budgets. Budgets for the office. Planning new office building.

BBA Part II Office Management M.D.S.University Ajmer

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Office space planning. Recruitment. Training office staff. Office maintenance. Office decor. Office security. Administrative system and procedures. Computer operations. Planning work for computers. Electronic accounting machine room. MIS. Purchase of big equipment computer, large A/C machine etc. Purchase of desk type of equipment. Office Supplies. Copying and duplicating. In- house printing. Purchased printing. Records mgt. Central files. Microfilm services. Library. Communication (Telephone, Fax, Telnet.) Mail and messenger. Cafeteria, diving room etc.

*Importance of Office:- The office acts as a storehouse and nervous system of every operation of business concern. The Importance of the office to a business enterprise arises from the fact that a modern business, with its varied and complicated operation, cannot be managed efficiently without clerical assistance in some form or the other.
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Office as information centre. Office as an intermediary. Office as a Co-ordinator. Office as service centre. Office as an admin. Nerve centre. Office as control centre.

Office management:- He, who can manage can manage everything Lawrence apply an office is a tool of mgt. It is interred to assits in managing a business most economically and efficiently. Every office, regardless of its size. The nature of the work, or the nature of the business, needs some office management. Meaning:- Office mgt. is that branch of mgt. which is concerned with the performance of office function, with the application of the principles of mgt. to get work done through the office. Definition:- Office mgt. can be defined as a task of planning, co-ordinating, Motivating the efforts of others towards the specific objectives in the office. G.R. Terry. The main Elements of office mgt.:1

Managerial skills.

BBA Part II Office Management M.D.S.University Ajmer

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Administrative knowledge. Clear objective. The office function. The communication network. Staff and environment. Software and hardware.
i ii

Purpose. Envi. furniture, machine etc.

iii Means- Premises, iv Personnel.

Function of office Mgt. Om is similar to the general or administrative mgt. it performs the same function as are performed by mgt.:- Planning, Organizing, Staffing, Directing, Motivating, Coordinating, controlling. Planning the office:- office operations are planned with reference to the overall objectives of business. The main work of planning department of the business office is to arrive at business decisions change or modify them time to time when it is necessary to do on the basis of the size and kind of activities of the business. Adv. Of planning:1 2 3 4 5 6 7 8

Utilization- resources. Eliminates unproductive office work-cost minimize. Uncertainty Minimizes the hazards. Control- check the performance. Direction make more meaning ful and purposeful. Setting of standards division, Dept. Company and individual. Communication channel- Through out the org. Good training ground for future managers.

Steps in Planning:- In every office, there are three kinds of work:

a b c

The work which must be done today. The preparatory work which must preceed the work of today. The work which results from the work of today.

Office manager tries to do all three kinds of work the same day, regardless of the volume of work to be done. Planning usually involves following steps:1 2

Establishment of objectives- Policies, Procedures, budgets and programmes. Establishment of requirements Construct. Search for alternative courses of action New floor Planning premises- Planning assumption- Envi, Factors future

Rent or lease. Buy.

Recruit Addi. Staff Mechanis off. Activity. Expansion of office:Decentralize Some office activity. Out side agency.

BBA Part II Office Management M.D.S.University Ajmer

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Evaluation of alternative courses of actionSelection of a Course of ActionFormulation of Necessary Derivative plan- for support the basic plan.

Office Organization:- An efficient office organization implies a careful planning of what is to be done, by whom it is to be done and by whom it will be supervised. In organizing, 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 exam human body

Digestive system Nervous system Respiratory System

Vascular System




Definition:- Organization is a group of people who are co-operating under the direction of leadership for the accomplishment of a common and. Ralphc.Dacis Organization is concerned with the arrangement of work, with the division of activities and with the allocation of duties, all thority and responsibility. J.C. Denger the Term org. has been used in a two- fold sense firstorg. may refer to the function of organizing. Second. It may refer to the structure of individuals and facilities by means in office manager has his plans carried out. Org. Result from the exercise of the function of organizing. The resulting org. is effective depends upon two factors:
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The Ease with which the org. was set up. The wise direction and control of the org. by a competent executive.

Office org.:- Office org. is the process of collecting every kind of useful information from different internal departments and outside org., using and keeping it safely, and effectively coordinating 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 org. are:
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A clear definition of objectives: Breaking down the overall objectives into several objectives related to individuals tasks. Arrangements of tasks in such a way as to ensure one-way flow of work and service; Co- ordinating the tasks so that each one serves the other or is served by the other optimally, without obstruction the flow of work;

Organizing office activities with the all most speed, accuracy and economy. Consistent with the objectives of enterprise;


Flexibility and adaptability to changing objectives.

Principles of ORG.:- The org. of office activities is a continuing process. It should not be static, rigid or fixed. The task of the office manager in planning org. becomes easier if he takes into consideration the following general principles of org.
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Principle of objective. Principles of inter- Related functions:- Marketing, Personnel, Sales, Production.

BBA Part II Office Management M.D.S.University Ajmer

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Principle of Definition. Principle of work assignment. Principle of span of control- the maximum number of employee or subordinates that can be supervised effectively by a person is known as the s of c. Principle of unity of command man can serve only one bass. Principle of chain of authority (The Scalar Principle)- Formal specification of who reports to whom with in or org. Principle of commensurate authority and responsibility An Individual is responsible for a certain task. He should be given the authority to carry out that tasks. Principle of ultimate responsibility Higher authority Suborning- works. Principle of flexibility. Principle of division of work. Principle of discipline. Principle of continuity of operations. Principle of employee participation.

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Formal and informal org. Types of org.:1 2 3 4

Line org. Functional org. Line & staff. Committee.

Selecting type of org.:1 2 3 4 5

Nature and size of business. Period of establishment. Continuity of work flow. Geographical dispersion. Staff strength and degree of mechanization.

Org .Charts & Manuals:- Org. char type

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Functional org. chart. Personnel org. chart. Master org. chart.

Vertical org. chart. Horizontal org chart. Circular chart.

Office Manuals:- An office manual is an authoritative guide to office org. It is a source of information, a knowledge of which is essential for the performance of office work. Like an org. manual it may be in the form of a book or booklet and contains for the benefit of the office staff, information on operation office system and procedures methods and routines, executive decisions, standard practices, original policies, and so on office manuals are used not only to fix responsibility for the performance of office jobs, but also to set up procedures for the performance of these jobs.

BBA Part II Office Management M.D.S.University Ajmer Contents of an office manual:1

General information Name, Address, telephone no, etc of the company, dept and branches, Nature of business, org structure, Name add off executives. General office rules and regulation office hours, salary structure, paydays, leave rules, medical benefits, vacation and holiday arrangements, promotions, transfers, accidents, compensation, disciplinary action. Retirement, dismissal, retrenchment, lay off etc.

General office facilities:- Rest or retiring rooms, lunch rooms, recreation facilities reading rooms, toilets, dispensaries, telephone facilities. Supply on co-operative basis etc.

Safety instructions :- Fire, accident, serious illness. In emergency. Name add. Doctor, Nurse.

Original Policies- Credit sales, Selection of advertising media, Training and development prog. Purchase of capital equipment etc.

Executive relationship- Relationships between different executive/departments or individual responsible for policy decision, nature of supervision & control etc.

Job description:- Basis function of each job in terms of the authority and responsibility attached to it. Standard practice instructions Instructions relative to respective work which has been standardized, including, instructions- Instruction relative to respective work which has been standardized, including instructions for handling incoming and out going mail replenishment of stationary, filing, indexing etc.

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General Instructions:- For the performance of non- standardized work. Appendix- various forms(Specimens) Used by different depts. of the office.

Centralization or Decentralization:Office Manager Clerks, Typist, Stenographers, Assistance etc.

Correspondence Dept..

Pay-roll Dept. Service Dept. Statistics Dept. Records Dept. Chief Executive Personal Manager
Marketing Manager

Finance Manager Production Manager Workers etc. Supervisors / Foreman. Asst. Dept. al. Managers Dept. al manager Chief Executive Board of Director Share holders

Delegation of Authority:-

BBA Part II Office Management M.D.S.University Ajmer

Delegation of Authority. Chief Executive

District C District A District B Sales Promotions Marketing Research

Fore Men 1 Fore Men 2 Fore Men 3

Ind. Relation. Well Force Record & Trading Personnel Mart. MKT. Mart.
Asst. Mkt. Man General office Accounting Factory Manager Budget Manager Product. Manager

Prod. Manager Finance Mart.

-------Line org.-------------------Staff Org. Centralization:- Centralization of Authority:- Centralization means concentration an org. is said to be centralized when most of the decision making power is reserved by one or few persons at the higher levels. In a centralized org. Most of the authority and responsibility and most of the decision making power are concentrated in the top management. Definition:- Centralization is the systematic and consistent reservation of authority at the central points with in an org. Reduce --- Imp. Subordinates. Allen Increase ---- Imp. Central Authority. In org.

BBA Part II Office Management M.D.S.University Ajmer


Planning, org. direction and control- managerial function decision- making- power reserved center.

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Operating function to be performed by middle and low levels of management. Lower levels mgt.Operate under the direct command, direction and control of top level mgt.

Areas where centralization is Desirable:1 2 3 4

Mgt. Planning and control. Determination of objectives of org. Capital requirements and modes procuring. Diversification, Modernization, Modernization, expansion or contraction of business activities.

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Personnel of staffing function(Manager cadre only). Legal and govt. al relationships

Advantages:1 2 3 4 5

Power and prestige to central authority. Uniformity of policies, practices and decisions. Full utilization of personnel. Promotes stand ordination and specialization. Minimize duplication of function.
a b c d

Few copy of Records. Less equipment required. Less space requires. Continuous service.

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Flexibility to adjustment. Cost saving- training, Supervision, Control. Better utilization of machines and justification, Help in development of strong co-ordinate mgt. team.

Disadvantages:1 2 3 4

Increases burden on top mgt. Not scope for subordinates. Lowers the morale of lower levels. Raise the problems of communication of decisions made by the top mgt. adverse effect on subordination.

Limitation:1 2 3 4 5 6

Requirement of technical familiarity. Difficulty in commu. Between service unit & dept. Difficulty in insuring of imp. Work priority. Office activity may be needed in only one dept. Confidential work or records may need to be left in using departments. Possible resistance of executive and of clerical personnel used to decentralized arrangement.

Decentralization of Authority:- Decentralization refers to the dispersal of authority or the delegation of authority to subordinates. Definition:- When authority is dispersed decentralization is present. G.R. Terry.

BBA Part II Office Management M.D.S.University Ajmer Delegation:- Means entrusting some part of his work by the superior to his subordinates. Decentralization- Refers to the dispersal of centers of authority (Decision- Making) thought the org.

Need of Decentralization:1 2 3 4

Size- Larg for growth of an org. Growth and diversification of activities. Training of Executive- for higher position of decentralization. Nature of competition competitive market. Technical, cost of decisions. Surrounding internal & external Factor

Political, availability of managers

Advantages:1 2 3 4 5 6 7

Stress out the top mgt. to entire decision- making. Provide training for future managers. Promotes speed in decision- making. Diversification and expression of activities. Job satisfaction encourages initiative, motivation. Operations can be co-ordinated at the unit or divisional level. In Dc org.
a b c d e

New ideas, Techniques, easily implemented by lower level. Effective control. Flexibility. MBO Better mgt. employee relationship can be achieved.

Disadvantages:1 2 3 4 5

Heavy expensive and duplication of efforts at junior levels. Uniformity in policies and practices may not be achieved. A wide dispersal of authority create problems in co-ordinating various section dept. Flexibility may become difficult in DC. Not permit full and effective utilization of services of specialized and technical personnel. Without competent managerial personal DC not effective. There are certain areas which ought to be centralized. These include product pricing, Managerial Planning etc.

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Selection of office site for office space management:- Although changing conditions in a locating 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:- Suitable accommodation, Modern equipment and proper working conditions are not in any way less important factors in improving efficiency and reducing costs. It must be properly accommodated, have a good working envi. And should properly equi- equal equipped. Principles:1 2

Located at convenient place. Office space should be for present and future needs.

BBA Part II Office Management M.D.S.University Ajmer


Comfort and well being for the staff- washing room, rest room, water, coolers, canteen, etc

Location of office:- The location or site is an imp. 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 following conditions:1 2 3 4 5

Time of starting a business enterprise. Increased work volume require a change office location. Present location not sufficient for expansion of business. Lease office premises has expired and owner not renew it. Shifting of the business- one place or state to another.

Principles of Location:1

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

When the office staff is large, the office should be located in a esparto building, In Such case, it is advisable to centralize office activities. When different function 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.

In other cases the decision on location should depend on the factors governing the location.

Choosing an office location:1

All the function of the business are carried on in one location. Financial- Near financial HQ.

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Which function of business does the office serve most. Manu. Near Production Unit. If the office serves sales function- then should be sales HQ. If manuf. Then near that function. If the nature of the business does not require the office to be located near any of the main function of the business, the decision as to location Neighborhood, daylight, Transport, fresh air, clean function of the business, the decision as to location- neighborhood, daylight, transport, fresh air, clean function of the business, the decision as to locationneighborhood, daylight, transport, fresh air, clean.

Comparative Chart For Selecting an office site. Factor Alternative A Importance Desirability of Factor A of Factor B 1. Cost of Land. 5 5 Weighted value A 15 Desirability of Weighted factor A 4 Value AB 20 Alternative B

BBA Part II Office Management M.D.S.University Ajmer 2. Cost of Building 3. Cost of Constructions 4. Physical Feature of Building 5. Condition of Building

expansion 6. Feasibility of building

expansion. 7. Office Envi. 8. Availability of supplies 9. Parking facilities 10. Availability of eating

facilities. 11. Availability of Banking. 12. Availability of postal. 13. Availability of

Transportation. 14. Availability Housing. 15. Availability Shopping

center. 16. Adequacy of utilities 17. Adequacy of police

protection. 18. Adequacy of Fire

protection. 19. Tax Rates. 20. Insurance Rates. 21. Cost of Fringe benefits 22. Cost of Labor. 23. Importance of address

prestige. 24. Location of competitors.

BBA Part II Office Management M.D.S.University Ajmer 25. Effect of move on clientele. 26. Character of other tenants. 27. Others

Importance of factor code 5- Very Important 4- Fairly Important 3- Average Important 2- Not Very Important. 1- Unimportant 0- Not Appropriate

Desirability of Factor code 5- Very Desirable. 4- Fairly Desirable. 3- Average Important. 2- Not very Desirable. 1- Undesirable. 0- Not Appropriate

Factors Affecting Location:1 2 3 4 5 6 7

Proximity to Related Trade. Proximity to other dept. Nearness to service facilities. Nearness to Transport facilities. Accessibility to Factory or warehouse. Availability of labor. Building Restriction- Local Municipal Rules.

The Office Building:- Proper size and shape, design, accursed needs,- ownership, Rent, Lease, Tax rates, traffic- Noise, Dust, Fumes- Hygienic envi. Crowding, Customers, cost of living. Factor in Selecting office premises:1 2 3 4 5 6

Safety of records and staff. Working conditions. Adaptability to proposal layout. Office fittings. Future expansion. Type of Building.

Office Layout:- After acquiring the building for the office the next imp. Task is office space planning or office layout. Definition:- The determination of the space requirements and of the detailed utilization 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. An office layout involves.

The determination of the correct amount of space for each employee and for machinery and equipment they use.

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The correct arrangement of furniture, equipment and machinery. The best possible environmental conditions.

BBA Part II Office Management M.D.S.University Ajmer Objectives of Layout:1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

The Space should be used to the greatest extent. Service should be available where needed including power and telephone. Good working conditions should be provided for everyone. The supervisor should be able to see the staff at work. Communication and work flow should be facilitated. The movement of clerks b/w desk, Filing cabinets etc. Noisy and distracting operations should be segregated. Mutual interference between clerks should be avoided. Privacy and security should be provided, whenever necessary. Effective work flow. Space that is sufficient and well utilized. Employee comfort and satisfaction. Ease of supervision. Favorable impression on customers and visitors. Ample flexibility for varying needs. Balanced capacity of equipment and personnel at each stage of work flow.

Principles of office layout :1 2 3

Location of Departments. Flow of work. Space requirement for staff and equipment- square, Rectangular, long and narrow, lor J Sheped.

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Number of Private offices. Use of partitions. Special Purpose rooms.

Preparing the layout:- The following steps should be taken while preparing a drawing of an office layouta b c

A drawing or blue print of the available area should be prepared. The areas of the main work or traffic movements should be determined. The inter-relationship between equipment, information and personnel in the flow of work should be determined.

Space for the reception room, the conference room and private offices should be allotted.

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Lighting, heating, Ventilation and air-conditioning schemes should be shown. The types of furniture and equipment schemes and future expansion plan should be indicated.

Office Layout(contivous):- The layout plans may be made with the following.

Templates:Scale drawing of floor plan. shop of area. Plastic or metal device to indicate size &

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Cutouts- paper or plosive shapes cut to scale size require each item. Plastic Models- Office furniture.

Relay out:1

When there is an increase or decrease in personnel.

BBA Part II Office Management M.D.S.University Ajmer

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When the flow of work is changed by new procedures. When employees complain of bad lighting or ventilation. When employees appear to have difficulty in moving about the office. when buying new equipment or replacing the old equipment. When there is a change in the org. when there are new personnel, new authority and responsibilities.

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When there are lease difficulties. When same persons have been promoted.

Layout checklist:1 2 3 4 5 6 7 8 9 10 11 12

Avoid overcrowding. Ease of daily cleaning. Staff not facing directly into- light. Proximity of cloak rooms and toilets. Comfortable furniture. Non-Slip floor and stairs. Fencing any exposed moving parts of office machines. Minimize staff movements. Place filing cabinets near staff using them. Group together staff with related activities. Adequate space between desks. Positioning supervisors at appropriate points.

Advantages of good layout:1 2 3 4 5 6 7 8

Increase in efficiency. Reduction in cost. Effective Supervision. Optimum use of machine and equipment. Better and speed inter- communication. Lesser costs of practice systems. Better morale. Improves goodwill.

Unit II
Organization and Method:- (Systems Illustrated) As already stated, any enterprise operates through a network of systems- the filling system, The communication system, the purchasing system. The storage system, the cash and credit control system, the sales, accounting and invoicing system, and so on
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Cash and Credit Control. Purchases. Sales Invoicing and Accounting System.

A. Cash and Credit Control:- Cash is the most liquid form of assets. The efficient running of any org. a sufficient amount of cash is required for different purposes- for the payment of wages, salaried, payments to creditors and suppliers, postage, telephone bills, statutory payment etc.

BBA Part II Office Management M.D.S.University Ajmer Cash Control:- Cash Surplus as well as cash shortage are both hazardous for the efficient running of any org. for the control of cash, a number of forms and books are used. These include the.
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Cash book. Chequcks. Receipts. Bank pay- in- slips. Petty cash book.

Method of control:1 2 3 4 5 6

Received by mail should be recorded. They should be serially numbered and controlled. Crossed (Chequcks) with the name of bend A/c Cash once be entered on the cash receipts list. Chequcks issued crossed, A/c payee only. Bank reconciliation statement.

Credit Control:- Credit control may be defined as the facility to buy or sell against the promise of payment at some future date. The control of credit is required at two points
a b

At the time of granting credit. At the time of making collections.

Every org. should formulate in own credit policy which should provide for the following.
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The Maximum total credits that may be allowed at any one time. Grouping of customers in good, bad and indifferent categories of credit worthiness, relational limits.

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Whether to allow (and to what extent) credit facilities to new customers. The period of time for which credit should be given and whether the credit period should be the same or different for new and established customers.

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Whether any discounts etc.- For quick payment. The System to be employed for collecting payments and enforcing payments if they are not received in time.

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The fixation of responsibility for debt. Collection. Providing for the establishment of a separate credit control deportment, training credit control staff and laying down a efficient, accurate and up to date accounting system so that credit control may be effectively exercised.

Methods of Control:- In Passing upon an application for credit, the credit control should investigate the capacity of the customers(firms) to whom credit is to be given. When the credit is given against security, the market value and title of the security should be ascertained so as to ensure that the security is adequate. But where no security is for nished, the credit capacity may be estimated form the following.
1 2 3

The capital invested in business. The present financial position of the firm. The position of the money market, Credit information about the customers may be collected froms:a b c

Customers supplies. Bank reference. Financial houses.

BBA Part II Office Management M.D.S.University Ajmer

d e f

Commercial enquiry agencies. Trade Directories. Trade Association or boards of the trade.

Advantages of Credit Control:1

Working capital turnover rate is increased so that the capital is employed more effectively.

Capital made surplus may be utilized in availing of cash discounts on purchase made or paying back Bank overdrafts and reducing bank charges on overdraft, or for the payment of the orgs debts.

With a sound policy of credit control the cash budget becomes more meaning full and effective.

An effective system of credit control is based in sound, accurate and up to date accounting system. Credit control insures the establishment of an accurate and up to date accounting system.

Control over credit sales:- Credit sales is a risky business at it means that the goods have been sold but the money- i.e. Sales value is still realizable at a future date. A care full selection has to be made between customers as to their credit worthiness and sincerity in fulfilling obligations. B. Purchases:- Purchasing procedures very considerably according to the needs of the org. and the authority delegated to departmental managers. Every mgt. expects its purchasing department to have on hand all the materials, supplies and services when ever they are required. Purchasing has often been closely associated with the commercial side of a business. In retail trade purchasing for resale is a marketing of distribution function.

Organization of Purchase Dept :- In a simple purchasing system, the structure of the purchase dept. rests on the three Sections:1

The buying section:- This may be Sub- divided into classes by commodities, with one or more buyers attached to each class,

Clerical section- Dealing with correspondence, The keeping of records, Filing of data etc. Follow up section- to conduct negotiations with other depts and make the necessary adjustments to the purchasing programme.

Functions of purchase Dept.(Responsibilities) :1

To Receive purchase requisitions from the stores department, Production centers or any other authorized sources.

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To invite quotations from a number of suppliers. To collect information in which to base the choice of suppliers. To make arrangements for the purchase of appropriate quantities at any given time. To consure the purchase of the correct quality, under trade or brand name, by sample, Specification or description.

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The negotiate the delivery dates and other terms and conditions. To follow up the orders placed. To receive in continuing supplies, verify quantities, test and inspect them. To arrange for the storage and issue of materials. To verify the purchase invoice before sending it to the accounts dept. for payment.

BBA Part II Office Management M.D.S.University Ajmer


To create and maintain an efficient buying service by efficient selection, training and placement of the dept. staff.

Forms:1 2 3 4

Purchase order. Goods Received Records. Suppliers Invoice, Purchase Journal and ledger.

Purchase Procedure Purchase Records:1 2 3

Material Specification files. Records of the purchase of goods (item-wise). Contract records showing the seller of the commodity the order number, the total quantity ordered, the time of delivery. The price and units, Discount and credit terms.

A record of suppliers/Sources of supply, information about the sources of supply may be obtained from catalogues, trade journals, Commercial advertisements, trade cirectiones, Sales men, trade exhibitions and fairs and personal visits to suppliers factories etc.

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Price or quotation record (Item wise and supplier- wise). Budgetary allocations of finance and a summary of purchase.

Sales invoicing and accounting system:- Sales invoicing refers to the sending of invoices of goods sold to customers. The main purpose of invoicing is simply to inform the customer of his indebtedness in respect at the goods supplied to him. A Principle at 0 & M (Original method). Which may be applied here is that instead of making out a number of copies, efforts should be made to ensure that one copy is circulated among the different concerned departments. Procedure:1 2 3 4 5 6 7

The goods ordered are in stock. Acknowledge the customers order. The goods are being supplied. Packing them form delivery. Arrange transportation. Price the order and prepare the invoice. To get the goods and the invoice dispatched.

Invoicing Control:1 2 3 4 5

All the order are attended to without delay. No goods are dispatched unless the customers credit has been checked. No goods are dispatched they are invoiced. Invoice are not sent off to reach the customers before the goods are delivered to him. All the invoice which are sent out are changed to the appropriate ledger accounts.

Sales Accounting:- Sales a/c includes charging and collection payments, sales statistics and information for reference. Principles:1 2 3

Charged Accurately to the right customer. Collection of payment accurse terms & Conditions. Provide figures concerning debtors and sales.



BBA Part II Office Management M.D.S.University Ajmer

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Orders. Invoice. Credit Note Debit Note. Sales Journal. Ledger Statement of Account.

Office machinery and equipment:- Office machines and equipment cotton referred to as time and labor saving devices have become an integral part of a modern office. There are a large number of machine and appliances which may be used for different operations in the office. Definition:-While the human material can be described as brain behind all office activity adequate and proper equipment and machines are the tools with which office is carried out. Objectives:- Mechanization in the office refers to the process by which machines and equipment are introduced with a view to speeding up the administrative process. The following objects are important in assessing the desirability of mechanizing office tools.
1 2 3 4 5

Labor saving. Time saving. Accuracy. Minimization of frauds. Effects on personnel.

When are machines Economical:1 2 3 4 5 6 7 8 9 10 11

Greater the volume of work. Saving in labor and time. Reduction in salaries and over head costs. Reduce delays in submitting reports. Adequate facilities for training the existing staff. Work produced by a machine is superior. By reasons of its accuracy. Carry out a number of office operations. Cost of operations and maintenance is not high. Machine at reasonable cost are available. Risk of obsolescence is lets.

Advantages:1 2 3 4 5 6 7

Better quality of work. Lower operating cost. Improved efficiency. Facilitates control. Greater Accuracy. Relieves monotony. Facilitates standardization.

Disadvantages:1. Workers Resistance. 2. High cost. 3. Uneconomical.

BBA Part II Office Management M.D.S.University Ajmer 4. Require special skills. 5. Less flexibility. 6. Risk of obsolescence. 7. Surplus Staff 8. Dominance of machine. 9. Other Problems- office space required. The Criteria for Selection:- A large number of manufacturers of office machines have made the task of office manager more difficult, for making a choice of the right machine is not an easy task. It is first necessary to determine whether a machine is really needed and to establish this fact a complete examination of the work situation may be made. The office manager his also to be guided by certain principles of factors in coming to a decision in regard to the particular machine he would like to install in the office. Factors in Selecting office machine:1 2 3 4 5 6 7 8 9 10

Ease of operation. Flexibility. Durability. Portability. Adaptability. Service. Operating cost. Reputation of Supplier. Styling. Cost.

Leasing versus Purchasing Office Equipment:1 2 3 4 5 6 7 8

Reduced capital out lay on equipment. Cost plus contracts. Temporary or fill in- needs. Tax benefits. Up to date equipment. Production Advantage. Flexibility. Trial use.

Standardization of Office management:1 2 3 4 5 6

Saving in cost. Reduction in the cost. Easy operators. Flexibility. Ease in computation of depreciation. Assisted in work out put.

Classification of office machines:1 2

Machines for computing, such as adding machines and calculators. Machines for the creation and preparation at accounting records, such as book-keeping machines and addressing machines.

BBA Part II Office Management M.D.S.University Ajmer


Machines for the handling of correspondence, such as dictating machines, scaling machines and label posting machines.

Machines for handling many, such as cash registers and cheque protectors.

Types of office machines:I. Typewriters:1 2 3 4 5 6 7

Standard typewriters. Portable typewriters. Noise less typewriters. Electric typewriters. Automatic Typewriters. Electronic Typewriters. Electronic Typewriters with SPELL CHECK.

II. Stenographic Machines. III. Dictating Machines. IV. Duplicators or Duplication Machines. V. Gelatin Duplicator. 2. Spirit duplicators. 3. Stencil duplicators. 4. Electronic stencil duplicators. 5. Off. Set litho machines. 6. Typeset Duplicators. V. Photocopying machines. Vi. Accounting and Tabulating machinesa b c d e f g h i

Adding machines. Calculating machines. Cash registers. Coin Handling Machines. Accounting Machine. Tabulating Machine. Billing Machines. Payroll Machines. Addressing and mailing machines.
i ii

Addressing machines. Franking Machines (Postal Stamping).

iii Mailing Machines. 7 8 9 10 11

Punched card machines. Office compilers. Desktop publishing system. Latest innovations in computers. Other miscellaneous machines.

Communication:- The Success of all managerial functions depends on successful communication THEO HAIMANN.

BBA Part II Office Management M.D.S.University Ajmer Communication is one of the fundamental functions of an office and a process essential for all forms of business. It is the process of conveying information from one person to another through the post, by telephone by messenger service or by any other means. Definition:- An exchange of facts, ideas, opinions or emotions by two or more persons. Importing or exchanging thoughts or information. Shurter Communication, Simply stated means, the process of passing information from one person to another. It is the process of imparting ideas and making one self understood by others thus in its simplest sense, communication is the conveying of information from one person to another. Haimann. Importance:- Communication is a two way channel of transmitting ideas, plans, commands, reports and suggestions, that influence attitudes towards an org. an its objectives.

Imp. Of internal comm.1 2 3 4 5

Communication and mgt. control. Communication and co ordination. Comm. and integration. Comm. and motivation. Comm. and training.

Imp. Of external commu.1 2 3

Comm. and external envi. Comn. And competition. Comm. and public relation.

Purpose:- is to effect change to influence action toward the goods of an enterprises. Internal:1 2 3 4 5 6

Goals. Plans. Organize HR Select, develop & appraise. Lead Direct, Motivate, Central External:i ii

Customers. Suppliers. holders.

iii Stock iv Govt. v

Community/Society. Planning organizing staffing leading compiling

vi Other


External Envi. Customers. Suppliers. Stock holders. Govt. Community.

BBA Part II Office Management M.D.S.University Ajmer


Barriers:- The Common barriers to free flow of communication are those created by.
1 2 3

Departmentation. Geographical division org. Multiplicity of staff and service groups.

Other barriers:1 2 3 4 5 6 7 8 9 10

Defective system. Loss of message. Lack of Clarity the purpose and functions of communication. Wrong assumption. Prematurely. Fear of consequences. Lack of Trust. Lack of attention. Failure to deliver important message. Ambiguity.

Remove:- (may be)

1 2 3 4

Paying proper attention. Creating adequate conditions. Maintaining integrity. Utilizing informal org. in communication.


Clarify. Encodings /symbols.

Familiar Decode.

3 4 5 6 7 8

Facts- appropriate media. Value. Tone of voice. Language, relation. Understood. Environment. Sender & Recur.

Effective Comm.:- Effective Communication takes place when a thing is understood in the sense in which has been communicated. Selection of communication system:1 2

Speed. Distance.

BBA Part II Office Management M.D.S.University Ajmer

3 4 5 6 7 8 9 10 11

Accuracy. Secrecy. Safety. Records. Impression. Cost. Expansion. The effect of peak load periods. Responsibility.

Comm. Process:- Lows A. Alleni ii iii iv

Asking. Telling. Listening. Understanding Ernest datea b c d

A Sender. A receiver. A message. A motivating.

Communication Process. Perception. Encoding. Transmission. Receiving and decoding. Responding.

Comm. Flow in the org.

Horizontal 5 (1) Downward Diagonal

(2) Up/word

Oral, Written

a b

Downward Up wordInternal




Personal Telephone(Plus) Postal

BBA Part II Office Management M.D.S.University Ajmer


Courier Page, Mobile Email\

Cross. Wire.

Fax, Internet, Satellite. Telephone, Conference, Video Conference, Internal Communication:A

i ii

Face to face Conversation Telephone Direct Exchange live. Exchange.

a b c

iii Direct

Oral. Written. Mechanical Device.

iv Through v

the use of the staff location live with extensions.

Private Branch exchange system (PBX) Automatic B.E.(PABX) Private exchange system. Inter- Communication system. Intercom (Intelicom)

vi P. vii viii

ix Computerized x

Executive or loud speaker system. Telephone Police, army, Telephone Recording and answering sets. Dictating machines. Electric Pagin system.

xi Radio xii xiii xiv

CISCO Tele presence- New The Talent of success is nothing more than doing what you can do well and doing well what over you do, with out thought of fame.- H.W. Longfellow.

Office machines and equipment- office form Design mgt. control _ Records mgt. Office stationary and supplies common. Mgt. Office corpse and mail services- mgt Reporting. HR mgh

Written Comm.:i ii

Messenger serrices. Internal Office Mail service. Devices or written common.

iii Mechanical C

Mechanical Comm.:i ii

Teleprinter on telex. Automatic telex service.

iii Teleprinters(Tele-autograph) iv Telefaz v

(Fa scimile Telegraphy)


vi Videophone System. D

Staft location system.:-

BBA Part II Office Management M.D.S.University Ajmer

i ii

Public Address System- loud Speaker. Bells and Buzzers. Signals. call systm.

iii Lighted

iv Wire less v

Speaking Tubes.

Characteristics of a good system of internal Comm.:1 2 3 4 5

Simplicity. Economical. Clarity. Attention. Use of proper channels.

External comm.:1 2

Personal visit. Telephone local calls, Trank calls- Phone Plus Facilities- Call waiting, call transfer, abbreviated dialing (one toch dialing), Hot line, Automatic Alarm/wake-up call/Reminder service.

Postal services- Certificate of posting, Registered Post, Record Delivery, Reply- Paid services, Postage prepaid services, Value Payable Parcel- remits to the sender, Insured cover, telegraphic services, Courier services, Pager, E-Mail, Fax-Printer Copier, Phone Fax, Tam& Copier with Alarm (5 in one), Cellular phones, Internet, INMARSAT (Portable satellite Telephone), Electronic Media in Comm. Tele Communication- Bank Fund Transfer, Electric Conference System Computer Conferencing, teleconferencing, Video conferencing.

Office Services:- Office services are specialized activities which are performed by employees and are also known as office operations. These include1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

Communication- Internal & External Typing and stenographic services. Correspondence. Reproduction. Provision of Stationery and supplies. Records mgt. Forms Design and control. Provision of office furniture and machines. Collection of data and reporting to mgt. Personal services. Reception services. Secretarial and clerical services. Postal and messenger services. Data Processing. Financial and Accounting services. Maintenance services.

Centralization:- The Centralization of office services refers to the physical concentration of common of the office managers. Adv:-

BBA Part II Office Management M.D.S.University Ajmer

1 2 3 4 5 6 7 8 9

Better admin. Control. Relief to other dept. Facilitated Specialization. Flexibility. Facilitates Standardization. Avoids duplication. Bring about saving in cost. Yields improved quality of work. Facilitates gradation of employees.

Dis. Adv:1 2 3 4

Delay in work. Secrecy not possible. Absence of dept loyalty. Increase in the number of records.

Decentralization:- The decentralization of office services means that each functional dept. has its own staff to perform all the activities which are performed by the general office under centralization. Adv:1 2 3 4 5

Better Supervision. Better dept. al loyalty. Secrecy. Greater efficiency at lower cost. Saving in time.

Dis. Adv.:1 2 3 4 5

Uneven distribution of work. Duplication of work- Machines & Equipments. Extra Supervision required. Lack of standardization. Greater problem of co- ordination of work between different dept.

Departmentation of office:- As the office grows in size, it become necessary that its activities should be departmentalized i.e. divided into groups of function such as purchasing, accounting, financing and so on. Adv.:1 2 3 4 5

Maximum efficiency. Specialization. Facilitates Fixation of Responsibilities. Ensures better co-ordinations. Encourages healthy competition- Dept. may be on the basis of function territories or products the office of a large org. may consists of a number of depts viz.
a b c d

General office. Correspond section. Typing pool. Copying and duplication section.

BBA Part II Office Management M.D.S.University Ajmer

e f g 6 7 8 9 10 11 12

Filling section. Dispatch section. Secretarial section.

Purch. Dept. Fin. Or cash dept. Sales dept. Accou. Dept. Produ.dept. Personnel dept. Exports dept.

Data Processing System Unit III - Human aspect of computer usage.

Security data protection and audit mgt. services. Electronic data interchange.

Data Processing System


Computerized system that performs mathematicaloperations (manipulations) on input-data to transform it into the output (audio/video, graphic, numeric, or text)form desired by a system user.We have been constructing the spectral data processing system named Common Data Processing System (COMPRO) under VAMAS (Versailles Project on Advanced Materials and Standards) umbrella since 1989. COMPRO is designed to be a program to convert an original spectral data file structure to ISO14975 and 14976 formats, to assess the data processing procedures proposed by scientists, to calibrate energy and intensity scales according to ISO standards, to check a spectrum, and to build both spectra and correction factor database. In this system, the spectral data acquired on different instruments and/or computers can be compared to one another. COMPRO has been upgraded many times, and the latest one is Version 10 (COMPRO10), which runs on Windows XP, Windows VISTA and Windows 7. Data Processing Systems

Data processing system devices are capable of storing data. These systems include the computers, printers, digital converters, computer and printer assemblies' etc. They have wide applications ranging domestic to industry. Computers are programmable machines. They respond to a specific set of instructions in a well-defined manner, and can execute a prerecorded list of instructions or a program. A personal computer is a small, single-user computer, based on a microprocessor. It contains a keyboard for entering data, a monitor for displaying information, and a storage device for saving data. Super computers are extremely fast computers and perform hundreds of millions of instructions per second. PC memory and storage cards are devices used to add memory and storage capacity to computers. Network modems allow a computer to transmit data over telephone lines. Computer data processing is any process that a computer program does to enter data and summarise, analyse or otherwise convert data into usable information. The process may be automated and run on a computer. It involves recording, analysing, sorting, summarising, calculating, disseminating and storing data. Because data are most useful when well-presented and actually informative, data-processing systems are often referred to as information systems. Nevertheless, the terms are roughly synonymous, performing similar conversions; dataprocessing systems typically manipulate raw data into information, and likewise information systems typically take raw data as input to produce information as output. Data processing may or may not be distinguished from data conversion, when the process is merely to convert data to another format, and does not involve any data manipulation. Data analysis

BBA Part II Office Management M.D.S.University Ajmer Data Analysis is the domain from which the data are harvested is a science or an engineering field, data processing and information systems are considered terms that are too broad and the more specialized term data analysis is typically used. This is a focus on the highly-specialized and highly-accurate algorithmic derivations and statistical calculations that are less often observed in the typical general business environment. In these contexts data analysis packages like DAP, gretl or PSPP are often used. This divergence of culture is exhibited in the typical numerical representations used in data processing versus numerical; data processing's measurements are typically represented by integers or by fixed-point or binary-coded decimal representations of numbers whereas the majority of data analysis's measurements are often represented by floating-point representation of rational numbers. Processing Basically, data are nothing but facts (organized or unorganized) which can be converted into other forms in order to make it useful, clear and pratically used. This process of converting facts to information is Processing. Practically all naturally occurring processes can be viewed as examples of data processing systems where "observable" information in the form ofpressure, light, etc. are converted by human observers into electrical signals in the nervous system as the senses we recognize as touch, sound, and vision. Even the interaction of non-living systems may be viewed in this way as rudimentary information processing systems. Conventional usage of the terms data processing and information systems restricts their use to refer to the algorithmic derivations, logical deductions, and statistical calculations that recur perennially in general business environments, rather than in the more expansive sense of all conversions of real-world measurements into real-world information in, say, an organic biological system or even a scientific or engineering system. Elements of data processing In order to be processed by a computer, data needs first be converted into a machine readable format. Once data are in digital format, various procedures can be applied on the data to get useful information. Data processing may involve various processes, including: Data summarization ,Data aggregation ,Data validation ,Data tabulation ,Statistical analysis UNIT-III Human aspect of computer usage Humancomputer Interaction (HCI) is the study, planning, and design of the interaction between people (users) and computers. It is often regarded as the intersection of computer science, behavioral sciences, design and several other fields of study. Interaction between users and computers occurs at the user interface (or simply interface), which includes both software and hardware; for example, characters or objects displayed by software on a personal computer's monitor, input received from users via hardware peripherals such askeyboards and mouses, and other user interactions with large-scale computerized systems such as aircraft and power plants. TheAssociation for Computing Machinery defines humancomputer interaction as "a discipline concerned with the design, evaluation and implementation of interactive computing systems for human use and with the study of major phenomena surrounding them." An important facet of HCI is the securing of user satisfaction (see Computer user satisfaction). Because human-computer interaction studies a human and a machine in conjunction, it draws from supporting knowledge on both the machine and the human side. On the machine side, techniques in computer graphics, operating systems, programming languages, and development environments are relevant. On the human side, communication theory, graphic and industrial design disciplines, linguistics,social sciences, cognitive psychology, and human factors such as computer user satisfaction are relevant. Engineering and design methods are also relevant. Due to the multidisciplinary nature of HCI, people with different backgrounds contribute to its success. HCI is also sometimes referred to as manmachine interaction (MMI) or computerhuman interaction (CHI).Attention to human-machine interaction is important, because poorly designed human-machine interfaces can lead to many unexpected problems. A classic example of this is the Three Mile Island accident where investigations concluded that the design of the human-machine interface was at least partially responsible for the disaster.Similarly, accidents in aviation have resulted from manufacturers' decisions to use non-standard flight instrument and/or throttle quadrant layouts: even though the new designs were proposed to be superior in regards to basic human-machine interaction, pilots had already ingrained the "standard" layout and thus the conceptually good idea actually had undesirable results. Goals A basic goal of HCI is to improve the interactions between users and computers by making computers more usable and receptive to the user's needs. Specifically, HCI is concerned with:methodologies and processes for designing interfaces (i.e., given a task and a class of users, design the best possible interface within given constraints, optimizing for a desired property such as learnability or efficiency of use) methods for implementing interfaces (e.g. software toolkits and libraries; efficient algorithms )techniques for evaluating and comparing interfaces

BBA Part II Office Management M.D.S.University Ajmer developing new interfaces and interaction techniques developing descriptive and predictive models and theories of interaction A long term goal of HCI is to design systems that minimize the barrier between the human's cognitive model of what they want to accomplish and the computer's understanding of the user's task.Professional practitioners in HCI are usually designers concerned with the practical application of design methodologies to real-world problems. Their work often revolves around designinggraphical user interfaces and web interfaces. Researchers in HCI are interested in developing new design methodologies, experimenting with new hardware devices, prototyping new software systems, exploring new paradigms for interaction, and developing models and theories of interaction. Humancomputer interface The humancomputer interface can be described as the point of communication between the human user and the computer. The flow of information between the human and computer is defined as the loop of interaction. The loop of interaction has several aspects to it including: Task Environment: The conditions and goals set upon the user. Machine Environment: The environment that the computer is connected to, i.e. a laptop in a college student's dorm room. Areas of the Interface: Non-overlapping areas involve processes of the human and computer not pertaining to their interaction. Meanwhile, the overlapping areas only concern themselves with the processes pertaining to their interaction. Input Flow: The flow of information that begins in the task environment, when the user has some task that requires using their computer. Output: The flow of information that originates in the machine environment. Feedback: Loops through the interface that evaluate, moderate, and confirm processes as they pass from the human through the interface to the computer and back.

Security data protection and audit management services The challenge Organisations have to strike a balance when it comes to data protection and privacy. Information assets must be used effectively and efficiently for the organisation to be successful. However, there is a complex range of standards to meet, both in terms of regulatory requirements and arising from customer and employee expectations. Its a constant balancing act to make sure that the informations value is realised while ensuring stakeholders such as customers, markets an regulators remain satisfied. The privacy and data protection balancing act is complicated by a host of issues including: The globalisation of business operations and technical integration, The extension of the traditional enterprise ,Outsourcing and off-shoring These are complex and potentially conflicting influences on data protection and privacy. The ramifications of failed privacy and data protection can include compromised brand and lost customer trust, regulatory scrutiny and penalties and missed opportunities and squandered resources.How we can help you Our privacy and data protection specialists go beyond policy to help you to evaluate, design and implement a privacy programme and solutions that are both scalable and sustainable. This approach helps you to actively identify and focus on those privacy and data protection issues that represent either the highest risk or the highest return on your investment. It also involves identification of your highest risk areas, while being flexible and focused enough to address local, unique privacy requirements on a case-by-case basis. Our privacy and data protection service capabilities include: 1.Privacy strategy and programmes 2.Intellectual property and data protection programmes 3.Rationalised requirements framework 4.Environmental analysis 5.Policies and procedures 6.Communications, awareness and training 7.Solution set design 8.System architecture 9.Cultural transformation 10.Monitoring and reporting Internal Audit Services Unprecedented levels of regulation and market expectation are driving audit committees to place increasing reliance on internal audit functions to deliver high quality assurance over controls in place to manage current and emerging risks across financial, operational, regulatory compliance processes and major projects. In order to meet these increased expectations, internal audit functions need a full complement of skilled and experienced staff, effectively focused to provide value added assurance for the effectiveness of controls in place to manage areas of greatest risk and to effect and enable change in the business without sacrificing its independence. How we can help you We help our clients to establish and run internal audit functions which provide balanced and objective assurance over the effectiveness of controls in place to manage an organisations key risks and respond to the issue driven requirements of its key stakeholders. We offer then following options to cater to your specific needs: 1.Internal Audit Outsourcing -We can manage the internal audit function for you. We facilitate the risk assessment and assurance planning process as well as execute audits against the assurance plan using highly skilled internal auditors with relevant industry knowledge. 2.Internal Audit Cosourcing -We can provide skilled and experienced resources to your in-house internal audit team

BBA Part II Office Management M.D.S.University Ajmer and support you in quality assuring on the work performed in delivering specific projects. For example, where the area under review requires specialist skills in areas such as fraud, supply chain, treasury, tax or where the project needs to be delivered in international locations. 3.Internal Audit Secondment -We can provide internal audit team members on a loaned staff basis to support specific projects within your assurance plan. This service offers you the ability to access specialists skills without having to employ staff full time. 4.Internal Audit Quality Assessment -We are skilled in carrying out effectiveness reviews of internal audit functions driven by a combination of Institute of Internal Auditors (IIA) standards and your stakeholders expectations. Results include benchmarking statistics, recommendations and suggestions for improvement leading to an improved and more effective internal audit function with an enhanced image within your organisation. Our internal audit services-IT Internal Audit-In today's internal audit environment, advanced data analysis technologies and techniques are not a luxury, they enable cost-effective, continuous risk assessment. Corporate Responsibility & Sustainability-Organisations are experiencing growing regulatory and reputational pressures in relation to their management of environmental, social and ethical matters.

Electronic data interchange

Electronic data interchange (EDI) is the structured transmission of data between organizations by electronic means. It is used to transfer electronic documents or business data from one computer system to another computer system, i.e. from one trading partner to another trading partner without human intervention. It is more than mere e-mail; for instance, organizations might replace bills of lading and even cheques with appropriate EDI messages. It also refers specifically to a family of standards.n In 1996, the National Institute of Standards and Technology defined electronic data interchange as "the computer-to-computer interchange of strictly formatted messages that represent documents other than monetary instruments. EDI implies a sequence of messages between two parties, either of whom may serve as originator or recipient. The formatted data representing the documents may be transmitted from originator to recipient via telecommunications or physically transported on electronic storage media." It distinguishes mere electronic communication or data exchange, specifying that "in EDI, the usual processing of received messages is by computer only. Human intervention in the processing of a received message is typically intended only for error conditions, for quality review, and for special situations. For example, the transmission of binary or textual data is not EDI as defined here unless the data are treated as one or more data elements of an EDI message and are not normally intended for human interpretation as part of online data processing. EDI can be formally defined as the transfer of structured data, by agreed message standards, from one computer system to another without human intervention. Standards-EDI is considered to be a technical representation of a business conversation between two entities, either internal or external. Note that there is a perception that "EDI" constitutes the entire electronic data interchange paradigm, including the transmission, message flow, document format, and software used to interpret the documents. EDI is considered to describe the rigorously standardized format of electronic documents. EDI is very useful in supply chain. The EDI standards were designed to be independent of communication and software technologies. EDI can be transmitted using any methodology agreed to by the sender and recipient. This includes a variety of technologies, including modem (asynchronous and synchronous), FTP, e-mail, HTTP, AS1, AS2, etc. It is important to differentiate between the EDI documents and the methods for transmitting them. When they compared the synchronous protocol 2400 bit/s modems, CLEO devices, and value-added networks used to transmit EDI documents to transmitting via the Internet, some people equated the non-Internet technologies with EDI and predicted erroneously that EDI itself would be replaced along with the non-Internet technologies. These non-internet transmission methods are being replaced by Internet protocols such as FTP, telnet, and e-mail, but the EDI documents themselves still remain. As more trading partners use the Internet for transmission, standards have emerged. In 2002, the IETF published RFC 3335, offering a standardized, secure method of transferring EDI data via e-mail. On July 12, 2005, an IETF working group ratified RFC4130 for MIME-based HTTP EDIINT (a.k.a. AS2) transfers, and is preparing a similar RFC for FTP transfers (a.k.a. AS3). While some EDI transmission has moved to these newer protocols, the providers of the value-added networks remain active. EDI documents generally contain the same information that would normally be found in a paper document used for the same organizational function. For example an EDI 940 ship-from-warehouse order is used by a manufacturer to tell a warehouse to ship product to a retailer. It typically has a ship to address, bill to address, a list of product numbers (usually a UPC) and quantities. Another example is the set of messages between sellers and buyers, such as request for quotation (RFQ), bid in response to RFQ, purchase order, purchase order acknowledgment, shipping notice, receiving advice, invoice, and payment advice. However, EDI is not confined to just business data related to trade but encompasses all fields such as medicine (e.g., patient records and laboratory results), transport (e.g., container and modal information), engineering and construction, etc. In some cases, EDI will be used to create a new business information flow (that was not a paper flow before). This is the case in the Advanced Shipment Notification (856) which was designed to inform the receiver of a shipment, the goods to be received and how the goods are packaged. Some major sets of EDI standards: 1.The UN recommended UN/EDIFACT is the only international standard and is predominant outside of North America. 2.The US standard ANSI ASC X12 (X12) is predominant in North America. 3.The TRADACOMS standard developed by the ANA (Article Numbering Association now known as GS1) is predominant in the UK retail industry. 4.The ODETTE standard used within the

BBA Part II Office Management M.D.S.University Ajmer European automotive industry All of these standards first appeared in the early to mid 1980s. The standards prescribe the formats, character sets, and data elements used in the exchange of business documents and forms. The complete X12 Document List includes all major business documents, including purchase orders (called "ORDERS" in UN/EDIFACT and an "850" in X12) and invoices (called "INVOIC" in UN/EDIFACT and an "810" in X12). EDI standard says which pieces of information are mandatory for a particular document, which pieces are optional and give the rules for the structure of the document. The standards are like building codes. Just as two kitchens can be built "to code" but look completely different, two EDI documents can follow the same standard and contain different sets of information. For example a food company may indicate a product's expiration date while a clothing manufacturer would choose to send color and size information.Specifications-Organizations that send or receive documents between each other are referred to as "trading partners" in EDI terminology. The trading partners agree on the specific information to be transmitted and how it should be used. This is done in human readable specifications (also called Message Implementation Guidelines). While the standards are analogous to building codes, the specifications are analogous to blue prints. (The specification may also be called a "mapping," but the term mapping is typically reserved for specific machine-readable instructions given to the translation software.) Larger trading "hubs" have existing Message Implementation Guidelines which mirror their business processes for processing EDI and they are usually unwilling to modify their EDI business practices to meet the needs of their trading partners. Often in a large company these EDI guidelines will be written to be generic enough to be used by different branches or divisions and therefore will contain information not needed for a particular business document exchange. For other large companies, they may create separate EDI guidelines for each branch/division.TransmissionTrading partners are free to use any method for the transmission of documents. In the past one of the more popular methods was the usage of a bisync modem to communicate through a value added network (VAN). Some organizations have used direct modem to modem connections and bulletin board systems (BBS), and recently[when?] there has been a move towards using some of the many Internet protocols for transmission, but most EDI is still transmitted using a VAN. In the healthcare industry, a VAN is referred to as a "clearinghouse".Value-added networks-In the most basic form, a VAN (value-added network) acts as a regional post office. They receive transactions, examine the 'from' and the 'to' information, and route the transaction to the final recipient. VANs provide a number of additional services, e.g. retransmitting documents, providing third party audit information, acting as a gateway for different transmission methods, and handling telecommunications support. Because of these and other services VANs provide, businesses frequently use a VAN even when both trading partners are using Internet-based protocols. Healthcare clearinghouses perform many of the same functions as a VAN, but have additional legal restrictions that govern VANs also provide an advantage with certificate replacement in AS2 transmissions. Because each node in a traditionally business-related AS2 transmission usually involves a security certificate, routing a large number of partners through a VAN can make certificate replacement much easier. 1.Value-added networks are the go-between in EDI communications. 2.The VAN is responsible for routing, storing and delivering EDI messages. They also provide delivery reports 3.Depending on the VAN type, messages may need extra envelopes or may be routed using intelligent *VANs which are able to read the EDI message itself. 4.VANs may be operated by various entities(A) telecom companies; (B) industry group consortia; (C) a large company interacting with its suppliers/vendors.Interpreting dataEDI translation software provides the interface between internal systems and the EDI format sent/received. For an "inbound" document the EDI solution will receive the file (either via a Value Added Network or directly using protocols such as FTP or AS2), take the received EDI file (commonly referred to as a "mailbag"), validate that the trading partner who is sending the file is a valid trading partner, that the structure of the file meets the EDI standards, and that the individual fields of information conform to the agreed upon standards. Typically the translator will either create a file of either fixed length, variable length or XML tagged format or "print" the received EDI document (for non-integrated EDI environments). The next step is to convert/transform the file that the translator creates into a format that can be imported into a company's back-end business systems or ERP. This can be accomplished by using a custom program, an integrated proprietary "mapper" or to use an integrated standards based graphical "mapper" using a standard data transformation language such as XSLT. The final step is to import the transformed file (or database) into the company's back-end enterprise resource planning (ERP) system. For an "outbound" document the process for integrated EDI is to export a file (or read a database) from a company's back-end ERP, transform the file to the appropriate format for the translator. The translation software will then "validate" the EDI file sent to ensure that it meets the standard agreed upon by the trading partners, convert the file into "EDI" format (adding in the appropriate identifiers and control structures) and send the file to the trading partner (using the appropriate communications protocol). Another critical component of any EDI translation software is a complete "audit" of all the steps to move business documents between trading partners. The audit ensures that any transaction (which in reality is a business document) can be tracked to ensure that they are not lost. In case of a retailer sending a Purchase Order to a supplier, if the Purchase Order is "lost" anywhere in the business process, the effect is devastating to both businesses. To the supplier, they do not fulfill the order as they have not received it thereby losing business and damaging the business relationship with their retail client. For the retailer, they have a stock outage and the effect is lost sales, reduced customer service and ultimately lower profits.n In EDI terminology "inbound" and "outbound" refer to the direction of transmission of an EDI document in relation to a particular system, not the direction of merchandise, money or other things represented by the document. For example, an EDI document that tells a warehouse to perform an outbound shipment is an inbound document in relation to the warehouse computer system. It is an outbound document in relation to the manufacturer or dealer that transmitted the document.Advantages over paper systems-EDI

BBA Part II Office Management M.D.S.University Ajmer and other similar technologies save a company money by providing an alternative to, or replacing information flows that require a great deal of human interaction and materials such as paper documents, meetings, faxes, etc. Even when paper documents are maintained in parallel with EDI exchange, e.g. printed shipping manifests, electronic exchange and the use of data from that exchange reduces the handling costs of sorting, distributing, organizing, and searching paper documents. EDI and similar technologies allow a company to take advantage of the benefits of storing and manipulating data electronically without the cost of manual entry. Another advantage of EDI is reduced errors, such as shipping and billing errors, because EDI eliminates the need to rekey documents on the destination side. One very important advantage of EDI over paper documents is the speed in which the trading partner receives and incorporates the information into their system thus greatly reducing cycle times. For this reason, EDI can be an important component of just-in-time production systems. According to the 2008 Aberdeen report "A Comparison of Supplier Enablement around the World", only 34% of purchase orders are transmitted electronically in North America. In EMEA, 36% of orders are transmitted electronically and in APAC, 41% of orders are transmitted electronically. They also report that the average paper requisition to order costs a company $37.45 in North America, $42.90 in EMEA and $23.90 in APAC. With an EDI requisition to order costs are reduced to $23.83 in North America, $34.05 in EMEA and $14.78 in APAC.Barriers to implementation-There are a few barriers to adopting electronic data interchange. One of the most significant barriers is the accompanying business process change. Existing business processes built around slow paper handling may not be suited for EDI and would require changes to accommodate automated processing of business documents. For example, a business may receive the bulk of their goods by 1 or 2 day shipping and all of their invoices by mail. The existing process may therefore assume that goods are typically received before the invoice. With EDI, the invoice will typically be sent when the goods ship and will therefore require a process that handles large numbers of invoices whose corresponding goods have not yet been received. Another significant barrier is the cost in time and money in the initial set-up. The preliminary expenses and time that arise from the implementation, customization and training can be costly and therefore may discourage some businesses. The key is to determine what method of integration is right for the company which will determine the cost of implementation. For a business that only receives one P.O. per year from a client, fully integrated EDI may not make economic sense. In this case, businesses may implement inexpensive "rip and read" solutions or use outsourced EDI solutions provided by EDI "Service Bureaus". For other businesses, the implementation of an integrated EDI solution may be necessary as increases in trading volumes brought on by EDI force them to reimplement their order processing business processes. The key hindrance to a successful implementation of EDI is the perception many businesses have of the nature of EDI. Many view EDI from the technical perspective that EDI is a data format; it would be more accurate to take the business view that EDI is a system for exchanging business documents with external entities, and integrating the data from those documents into the company's internal systems. Successful implementations of EDI take into account the effect externally generated information will have on their internal systems and validate the business information received. For example, allowing a supplier to update a retailer's Accounts Payables system without appropriate checks and balances would be a recipe for disaster. Businesses new to the implementation of EDI should take pains to avoid such pitfalls. Increased efficiency and cost savings drive the adoption of EDI for most trading partners.