Chapter 6:

Record Management

Presented by GROUP 5 - 1C
GROUP MEMBERS
BUSTAMANTE, ROSEANN
GRAPA, MARVIE
LAGGUI, CLAIRE
LEANDER, SEAN CHRISTINE
MASULA, ALLYSSA
NAILGAS, ALEXANDRA
NOYNAY, VHERNA NICOLE
PANGASIAN, JERICA MAE
 Chapter Objectives
✓ Explain the importance and functions of records
management;
✓Identify the elements, functions, and objectives of filing;
✓Explain the advantages and essentials of a good filing
system;
✓Enumerate different bases of classification of files;
✓Outline the filing procedure;
✓Distinguish between horizontal and vertical filing;
✓Outline the advantages and disadvantages of
centralization and decentralization of filing;
✓Describe the features of different filing equipment along
with their uses and Importance.
 Introduction
The volume of paper work handled in a modern office today is
enormous. Hence record management has also become highly important.
The record is a written matter which is prescribed for future reference
and management is related to the way or the technique which are used to
manage the different types of records. Therefore, record management is
the management and control of records. Letters, invoices, cheques,
vouchers, price lists, personnel records, tax records, costing records are
the examples of records.

Noynay
 Introduction
Record Management is, knowing what you have,
where you have, where you have it, and how long you
have keep it.

Record Management is the systematic process of

collecting, utilizing, preserving, and disposing the
record of the office.

Noynay
 Importance of Records Management

Records are classified as vital, important, useful, or non essential.

1. Helpful to make progress report

2. Used as an evidence
3. Basis for decision making
4. Help in planning
5. To detect errors and wastages

Noynay
 Types of Records
Correspondence record: includes letters,
1. circular, notice, memo, inquiries etc.
Legal records: refers to the records that are kept to meet

Personnel record: the records which are

4. the legal formalities as per government rules and
regulation.

2. related to the personnel or employees of the

organizations. Miscellaneous records: these are records which are

Accounting record: the records which are 5. not covered by the above type of records are included
in the miscellaneous records.

3. related to financial aspects of the

organization.

Noynay
PRINCIPLES OF RECORDS MANAGEMENT
1. Determining which records should be created.
2. Deciding form and structure.
3. Metadata Requirements.
4. Retrieval Requirements.
5. How to organize records.
6. Assesing Risks.
7. Preserving Records.
8. Complying With Legal and regulatory requirements.
9. Security.
10. Record Retention
11. Improvement Opportunities

Pangasian
 The Main Basic of the Records Management.

1. Principles of Purpose – help to keep record for future reference and decision making so that it
should be maintained with a justifiable and clear purposes.

2. Principles of Verification- There must be evidence of all documents which are preserved in an
office. “ The maintenance of records without any evidential proof will be worthless because they
cannot fulfill the legal requirements.

3. Principles of Retention - The main object of record management is to preserve the required
documents for future references. Therefore, all the records should be maintained in a proper way.

Pangasian
 The Main Basic of the Records Management.

4. Principles of Flexibility- The flexibility of principles states that an accounting

information system should be able to adapt to changes in the company based on its
need,operations,and management.

5. Principles of Cost – The accounting principles that goods and services purchased
should be recorded at their historical cost and not at their current market value.

Pangasian
 Importance of Record Retention

1. It preserve active records for future references.

2. It helps taking prompt decision.
3. It provide written legal evidence.
4. It enchance the effiency of the office as essential are readingly
available.

Pangasian
Stages in Records Management

1. Creation of Records
2. Utilization of Records
3. Storage of Records
4. Retrieval of Records
5. Disposal of Records

Pangasian
 Concept of Filing
A Filing is a process of arranging and preserving
original records or their copies in such way that
whenever needed, they could be located
immediately. It is the most important function of
record management. It is the keystone of an
organization . It preserves the letter and documents
for future so that it can be used whenever required.

Bustamante
 Importance of Filing

1. Preservation of records: an office receives and dispatches various documents, letter,

report, voucher and other written documents. Those important documents and records
might get damaged, lost ect. So filing helps to preserve the documents from all possible
damages.

2. Facility for ready reference: filing preserves the document for future references, which
can be used easily whenever required. Those references will help to deal with firm and
individual.

Bustamante
 Importance of Filing

3. Rapidly in performing office work: filing enables an office to locate the records and
information on time. It helps to perform the actions quickly, thus, filing helps to perform
office work smoothly.

4. To facilitate in planning and policy making: past records are important for future
forecasting. And filing provieds information that helps to formulate future plans and
policies. Hence, filing facilities in planning and policy-making.

Bustamante
 Importance of Filing
5. Providing evidence: filing provieds proof of evidence to settle the misunderstanding
and dispute among different persons and parties. It protects the documents and record that
can be used as proof.

6. Maintining good will and building image: filing preserve the documents and record can
be located quickly when required, helps to perform office work smoothly and provide
better services to the customer , visitors and employee.

7. Following up: filing encourage effective follow up with the parties like customers,
visitors, debtors, bankers, share broker ect.

Bustamante
Qualities of Good Filing
It easier to perform office work with the help of safely and systematically preserved letters and
documents. A filing must be effective and appropriate. So, the filing must possess the following
qualities.

1. Compactness : the filing system should be compact.

2. Accessibility: in a good filing system, required letters and documents must be available in minimum
labor and efforts.

3. Economical: filing should be less expensive.

4. Simplicity: filing must be simple to understand and easy to apply for all the employees.

Bustamante
Qualities of Good Filing
5. Safety: the filing system should be protect the documents and files from insects, water, fire, dust,
theft ect.

6. Flexibility: the filing system should be flexible so that files can be added or eliminated in future as
per the changing need of the office.

7. Cross-references: under a good filing system cross-references should bemade.

8. Clasification: under a good filing system, files and documents should be arranged in proper
classification I.e. numerical, alphabetical, geographical , chronological, methods.

Bustamante
 Steps in installing or planning Filing System
Preparation of a List of Documents: A list of all documents and papers to be

1.
filed is prepared. The list is prepared according to the needs and policy of the
concerned business organization. Generally, the list contains the documents to be
filed which are required in future reference.

Decide Period Storage: The period of storage of documents

2. should be decided by the top management after consulting all

the departmental heads.

Decide Storage Space and Acquire: The need of storage space is is

3.
decided by the office manager. Keeping in view of volume of documents
to be filed, adequate funds may be allocated to acquire needed storage
space.

Laggui
 Steps in installing or planning Filing System
Filing Department Layout: The layout of the filing is prepared in such a

4. way that the documents are accessible in an easily manner. The storage
arrangement should be decided on the basis of the frequency use of the
documents.

Deciding Filing Equipment: Various type of filing equipment

5.
can be procured to preserve different kinds of documents. The nature
and the importance of documents are taken into account to select
filing aquipment.

Determine System of Classification: A suitable

6. system should be selected for the classification of
records.
Laggui
 Steps in installing or planning Filing System
Protection of Records: Proper arrangements

7. should be made in order to protect the records form

loss or damage.

Training of Staff: Adequate training should be imparted to office

8.
staff for handling various filing operations. There must be a clear
definitions of duties and responsibilities of staff members of filing
department.

Issuing Procedure: No admission without permission principle is followed to

9.
enter into the filing department. Besides, the files should be issued only to the
authorized persons. A seperate register is maintained to record the issues and
receipts of all files.

Laggui
MODERN FILING SYSTEM
The filing system has changed and improved considerably over time, to meet the
change in an office. The traditional filing is not able to meet all the requirement so it
has a limited use in modern offices. So, the traditional Filing system has been
replaced by modern filing system.
Some important types of modern filing system are as follows:
1. Horizontal filing system
2. Vertical filing system
3. Lateral filing system
4. Vertical suspension filing system
5. Open-shelf filing system

Laggui
Horizontal Filing System
is a system modern type of filing where the documents is letters are chronologically placed in
folders one upon another in horizontal or flat position.

2 types of Horizontal Filling System

1. Flat file- is made if cardboard or thick paper where each flat file is attachel with the pair of
metal clips, or lace on the left hand side which help to hold the paper tightly.

2. Arch Level File-is a file that popular and commonly used to preserve documents, records and
letter.

Masula
Horizontal Filing System
Advantages:

* Very simple and easy to operate.

* It's economical and less expensive.
* It's requires minimum of space to store files.
* Safely keep the documents and Letters for the dust, dirt, moisture.

Disadvantages:

*It's Consuming.
* Difficult locating a particular file.
* Reference of papers is inconvenient.
* Documents may be damage while punching and inserting.

Masula
 Vertical Filing System

Vertical Filing System

It's indicates the vertical position file. The file are kept in standing position under the method, it also the method
to developed, and to overcome the difficulties of horizontal filing.

Advantages:

* Easily reffered without much difficulty.

* There is no disturbing of other papers or letters.
* The cost of folders is very cheap.
* Fire Proof Cabinets

Disadvantages:

* Location desired files requires much time.

* File may be wear and tear resulting from the down of folder.
Masula
Vertical Suspension Filing System

Vertical Suspension Filing System is the improved from vertical filing.

The drawer with documents is fitted with a metal frame from which pocket
folders are suspend.

2 types of Vertical Suspension Filing System

1. Flat Topped- where the rigid bars support a flat top.

2. Indexed Tabbed-where the reference trip is contained on a tab slightly
inclines backward.

Masula
Vertical Suspension Filing System

Advantages:

* It facilitates easy location of the documents.

* Filing is more flexible than the ordinary vertical filing.

Disadvantages:

* It is expensive
* It requires more space to install the equipment.

Masula
Lateral Filing System
Lateral filing was developed to overcome the limitation of suspension filing. It is modified version of
vertical suspension filing. In this system the documents are filed laterally along the shelf. The pockets
having index strips on the visible end of the file. The shelves can be installed up to height of 2 m and the
depth of each shelf is less than 60 cm.

Advantages: Disadvantages:

* Requires less space to install the equipment . *Requires a higher investment.

* The letters and documents can easily to locate. * Requires skills to file the documents and,
* It's save the Cost * It's not suitable for smaller office.

Masula
Open-Shelf Filing System
It's a very common type of filing. The file are kept on open shelves in a
numerical order.
Advantages:
* Save of time.
* Convenient for employee to handle.
* Suitable for larger office having a larger
volume of correspondence to handle.
* More scope further extension and expansion.
* Less expensive.
Disadvantages:
* Not suitable for small and meduim type of
office.
* There are chance to misplace and loss files.
* Lack of secrecy .
* Lack of safety of letters and documents from
dust, dirt, insects and moisture.
Masula
 Centralized Filing System
The records of all the departments of the business
organization are maintained at one place i.e. centralized
filing system. The centralized filing records are controlled
by a common index plan. For which, a separate department
is created i.e. known as filing department. All the files of
the organization are preserved by this department. The
functional departments of an organization are relieved from
the headache of maintaining records. All files, filing
equipment and filing staff are located in the filing
department.

Noynay
 Decentralized Filing System
Filing is done by the various functional departments of an
organization according to their requirements. Every
department has to install separate filing equipments and
appoint specialized staffs to look after the filing work. This
system is known as decentralized filing or departmental
filing.

Noynay
CLASSIFICATION OF FILING
Filing aims to safely and systematically preserve records through proper
classification, using various headings and methods to achieve this objective.

1. Alphanumeric filing
2. Numerical filing
3. Geographical classification of filing
4. Subject filing

Leander
 Alphanumeric filing
A method for for classifying materials for storage and access through use of latters and digits that
represent a concept
Advantages

1. Files can be expanded to an unlimited extent. The reason is that

the alpha-numerical classification is an elastic one.
2. It facilitates a quick reference.
3. It avoids the confusion of names of similar nature because of
numbers allotted to each name separately.

Disadvantages
The main drawback or disadvantage of alphanumerical
classification of filing system is that it is not suitable to large
organization.

Leander
 Numerical filing

The files that are kept and arranged according

to the numerical order is called numerical
filing. There are two types of numerical filing

•Three types of numerical filing

1. Consecutive classification
2.Dewey Decimal System
3. Terminal Digit system

Leander
 Geographical filing
The geographical filing is the method of arranging the documents and letters according to town, district,
zones, region, and countries. The alphabetic arrangement is also adopted in a geographical method of filing

Steps involved in Geographical Classification of Files

The following steps should be taken for geographical classification.

1. Geographical area or limit is to be defined which will make one unit.

(For example: District)
2. All the districts are arranged in an alphabetical order. (For example
Cruz, Delima Frias, Malanay and the like)
3. Within each district, town wise classification may be made and an
alphabetical arrangement may also be made.

Leander
 Subject filing
Subject method of filing refers to the arrangement
of the files and folders in the drawer according to
the name of subjects and the subjects are arranged
alphabetically. The subject may be sub-divided as
per volume of transaction and correspondence
according to the alphabetical order.

Leander
CONCEPT OF INDEXING
→ Indexing can be defined as the alphabetically arranged list of items given
the end of the printed text with the page number on which the items can found.
It is used to provide information about chapter or topic, books and and meaning
in the dictionary. Indexing help in quick identification files and document in
the filing system of office. It not only help in the pick location of the document
but also help in systematic arrangement of a document in a file.
PURPOSE OF INDEXING

1. To ensure easy and prompt location of file and document

2. To support in developing systematic filing system in an office
3. To maintain secrecy about internal matter of business
4. To bring smoothness in an office performance
5. To improve efficiency of employees
6. To reduce operational expenses of office
IMPORTANCE OF INDEXING

The importance of indexing can be explained with the help of

following points:
1. Systematic arrangement of files
2. Prompt location of files
3. Saves time and effort
4. Develop efficiency
5. Cross Reference
6. Reduce Expenses
7. Maintain Secrecy
QUALITIES OF GOOD
INDEXING
The common qualities of indexing are as follows:
1. Simple to understand
2. Flexible
3. Safety and secrecy
4. Economical
5. Permit Cross Reference
 TYPES OF INDEXING

BOOK INDEXING - it is a simple type of indexing. In this type of

indexing a hard bound registered book is used. The book is marked with
alphabet A-Z or the right hand side of its pages in such a manner that all
alphabets can easily be seen. The entries are made in the book with the
first letter of their name or surname.

Grapa
 TYPES OF INDEXING
Advantages
1. simple and easy to understand
2. cheap and suitable for small offices
3. safe and reliable as it uses a bound book
4. useful when the number of files is limited

Disadvantages
1. inconvenient
2. limited use only
3. not useful when the number of names increases in the office
4. two or more person cannot use at once

Grapa
 TYPES OF INDEXING

LOOSE-LEAF INDEXING - it is an improved form of book indexing in

this type of indexing instead of using a hard bound register book, a loose
sheet of paper is used in which alphabets A-Z are marked. In this type of
indexing loose sheets can be fastened by using metal ring.

Grapa
TYPES OF INDEXING
Advantages
1. flexible and easy
2. suitable for both small and large organization
3. cheap

Disadvantages
1. more chances of miss placement
2. can be damaged easily
3. there is more possibility of fraud
Grapa
 TYPES OF INDEXING

CARD INDEXING - card indexing is an important method of indexing. It

is an improved version of the loose leaf method in which cards of a
standard size instead of loose leaves are used. the cards are made of thick
cardboard or paper and the standard size of such cards is 3 inch. These are
kept in the drawer of a steel or wooden cabinet. these cards are placed in
vertical position.

Grapa
TYPES OF INDEXING
Advantages
1. simple and easy to understand
2. less expensive
3. cross-reference is possible

Disadvantages
1. need large investment
2. more time is required to search the files
3. not suitable for small business firm

Grapa
 TYPES OF INDEXING

VISIBLE CARD INDEXING - visible card indexing is

an improve form of card indexing. The numbers can be
easily seen. This indexing makes possible to read one
line on the head of each without turning the card.

Grapa
 TYPES OF INDEXING
A. STRIP CARD INDEXING - in this method one line is made of
thick cardboard paper which is fitted in a frame in such a way that all
the strips fitted in the frame are visible at a glance. This trip fitted in
the frame can be easily removed and placed. there can be different
sizes of strip cards. The strips are arranged in alphabetical order. For
easy and prompt reference, this type of indexing is becoming popular
in the modern office.

Grapa
 TYPES OF INDEXING
Advantages
1. provides prompt reference
2. doesn't need any cabinet or almirah
3. flexible in which removal is possible

Disadvantages
1. expensive
2. difficult to operate
3. not suitable for office having a small volume of correspondence to handle.

Grapa
 TYPES OF INDEXING
B. ROTARY CARD INDEXING - Rotary card indexing is also
called wheel or circular indexing. This is an advanced form of
visible indexing. In that method paper cards of uniform size are
fixed a round metal rod filtered in a rotary machine. The cards are
arranged in alphabetical order to the rotary machine. In this
system as many as 1,000 cards are mounted round.

Grapa
TYPES OF INDEXING
Advantages
1. it is flexible
2. suitable for large office

Disadvantages
1. expensive
2. difficult to operate
3. not suitable for small offices
Grapa