UNIT 8: OFFICE PROCEDURES
Key Unit Competency: To be able to demonstrate ability and knowledge of carrying out general office operations.
Introduction
An ‘organization’ is a group of individuals working together to achieve one or more objectives. Different organizations have different structures that show different levels of managers to staff personnel. Each staff has his/her duties and responsibilities. The house, rooms, set of rooms, or building used as a place of working activities or business is called office. In offices there are different activities done by different staff. There are so many questions that one can ask him/herself about any Business Organization having personnel and offices which include.
1. How do different people work together to achieve an organizations’ goals?
2. How do you find the right personnel to perform different jobs?
3. Which equipment’s should a good office have?
4. Which documents are used in buying and selling of goods?
This unit is therefore, designed to guide you answer the above questions and many others related to office procedures and find appropriate office procedures. Managing a successful business requires one to effectively and efficiently perform business management functions as well as tasks. Studying this unit will equip you with the requisite knowledge, skills and attitudes that you require in order to successfully organize and manage your business and office operations.
Introductory activity
Analyse the following case study;
Mr. Dusa’s factory is among the oldest brick making factories that have been operating in their area. It started operating in the first half of the 20th Century. It employs over 200 employees and owns production machines. Last year, the external auditor of the factory found out that the business was about to collapse. When the manager read the report, he was shocked about the eminent collapse of the business and could not figure out what to do to prevent the business collapse. He consulted many people for help, but he wasn’t able to get a clear solution.
1. As an entrepreneurship student, what do you think could be the main cause of poor performance of that oldest brick making factory?
2. Suppose you are appointed as the manager of this factory, what can you do so that this business does not collapse.
3. Observe carefully, the illustration below and answer the questions that follow:
How do we call the room where they are working from?
How do you think their manager recruited them to work in this organization?
What are the different documents you think are found at that place and why?
8.1. Personnel
Activity 8.1
After analyzing the organization structure, answer the following questions below;1. From your community, identify some business organizations that operate from there, explain how they are organized and the way they operate.2. Choose one answer and explain why: The above structure isa. The district organization structureb. The Sector organization structurec. The Ministry of Education organization structured. Financial institution organization structure3. Explain how to find the staff/ personnel to perform the above positions in the structure?4. Give two main duties and responsibilities that you think should be applied to the above-mentioned positions and give reasons?5. what is an organisation chart from your point of view?8.1.1. Principal departments of an organization (staff, duties and responsibilities)
The term organizational structure refers to the relationships between the various functions and positions in an organisation. Structure determines authority and responsibility for tasks/activities. It also specifies the routes of communication between different parts of the organization. A typical business organization may consist of the following main departments or functions:•Production.•Research and Development (often abbreviated to R&D)•Purchasing.•Marketing (including the selling function)•Human Resource Management.•Accounting and Finance.a. The Production function
The production function undertakes the activities necessary to provide the organization’s products or services. Its main responsibilities are:•Production planning and scheduling.•Control and supervision of the production workforce.•Managing product quality (including process control and monitoring).•Maintenance of plant and equipment.•Control of inventory.•Deciding the best production methods and factory layout.Close collaboration will usually be necessary between production and various departments within the organization, for example: research and development, concerning the implications of product design for production methods and cost; marketing, concerning desired product functionality, appearance, quality, durability and so on. Finance, concerning the availability of funds for purchase of new equipment’s and the acceptability of inventory levels. Human resource management, concerning staff motivation implications of job design and production methods.b.Research and Development
The Research and Development (R&D) function is concerned with developing new products or processes and improving existing products/processes. R&D activities must be closely coordinated with the organization’s marketing activities to ensure that the organisation is providing exactly what its customers want in the most efficient, effective and economical way.c. The Purchasing function
The Purchasing function is concerned with acquiring goods and services for use by the organization. These will include, for example, raw materials and components for manufacturing and production equipment. The responsibilities of this function usually extend to buying goods and services for the entire organization (not just the production function) for instance, office equipment’s, furniture, computers and stationery. In buying goods and services, purchasing managers must consider a number of factors collectively referred to as ‘the Purchasing Mix’ namely, Quantity, Quality, Price and Delivery.•Quantity: Buying in large quantities can attract price discounts and prevent inventory running out. On the other hand, there are substantial costs involved in carrying a high level of inventory.•Quality: There will usually be a trade-off between price and quality in acquiring goods and services. Consequently, production and marketing functions will need to be consulted to determine an acceptable level of quality which will depend on how important quality is as an attribute of the final product or service of the organization.•Price: Other things being equal, the purchasing manager will look for the best price deal when procuring goods and services, although price must be considered in conjunction with quality and supplier reliability, in order to achieve best value, rather than lowest price only.•Delivery: The time between placing an order and receiving the goods or services, the lead time, can be critical for production planning, scheduling and has implications for inventory control. Suppliers must therefore be evaluated in terms of their reliability and capability for on time delivery.In short, the ‘purchasing mix’ can be considered as making sure that the organization has the right amount, right quality, right price, in the right place and at the right time.d. Marketing function
Marketing is concerned with identifying and satisfying customers’ needs at the right price. Marketing involves researching what customers want and analyzing how the organization can satisfy these wants.Marketing activities range from the ‘strategic’, concerned with the choice of product markets (and how to compete with them for example, on price or product differentiation) to the operational, arranging sales promotions (e.g. offering a 25 per cent discount), producing literature such as product catalogues and brochures, placing advertisements in the appropriate media and so on. A fundamental activity in marketing is managing the Marketing Mix consisting of the ‘4Ps’: Product, Price, Promotion and Place.e. Human Resources function
The Human Resources function is concerned with the following:•Recruitment and selection: Ensuring that the right people are recruited to the right jobs.•Training and development: Enabling employees to carry out their responsibilities effectively and make use of their potential.•Employee relations: Including negotiations over pay and conditions.•Grievance procedures and disciplinary matters: Dealing with complaints from employees or from the employer.•Health and Safety Matters: Making sure employees work in a healthy and safe environment.•Redundancy procedures: Administering a proper system that is seen to be fair to all concerned when deciding on redundancies and agreeing redundancy payments.•Performance appraisal: Is evaluating the performance of employees and to identify their abilities of a person for further growth and development.•Induction: Is the process where new employees are welcomed in the business company and are prepared for their new duties.f. Accounting and finance function
The Accounting and Finance function is concerned with the following:•Financial record keeping of transactions involving monetary inflows or outflows.•Preparing financial statements (the income statement, balance sheet and cash flow statement) for reporting to external parties such as shareholders. The financial statements are also the starting point for calculating any tax due on business profits.•Payroll administration paying wages and salaries and maintaining appropriate income tax and national insurance records.•Preparing management accounting information and analysis to help managers to plan, control and make decisions.8.1.2. Recruitment
Activity 8.1.2
Case study:
Umutoni, Human Resource Manager of Sweet bread bakery was having challenges getting the suitable finance manager for the company. She was advised to prepare a job analysis, which shows the responsibilities and tasks relating to the job. Furthermore, she was advised to prepare a job description which outlinesthe responsibilities and duties tobe carried out by the financial manager. Umutoni was also advised to prepare a job which outlines the requirements, qualifications,expertise, physical characteristics, for the financial manager. All these were to appear on the job advert. The task was so challenging, but she managed to come up with the documents, and a suitable financial manager was got after the selection and interviews.a. What do you understand by the term ‘Recruitment’?b. What is meant by the following terms; -i. Job analysisii. Job descriptioniii. Job specificationiv. Job advert.c. Why do you think it is important to prepare the above documents?8.1.3. Recruitment process
Recruitment involves attracting the right standard of applicants to apply for vacancies. This is one of the major tasks of the human resource managers in an organization. Recruitment can either be internal i.e. hiring workers from within the organization, or external, i.e. hiring workers from outside the organization.When a new business is starting up or when a business is successful and wants to expand and when one leaves the job, the process of recruitment and selection starts. The business will first of all have to decide if they need employees or to replace some workers. The recruitment process also gives the business an opportunity to re-assess the nature of people’s jobs and consider further requirements.Hiring the Right EmployeesIf you need to hire right employees, this should be put into consideration;•Conduct a job analysis•Create a job description•Create a job specification•Job grading•Job advertisement•Application and selection of candidates•Recruitment testa. Job analysisJob analysis is establishing the nature of the job (tasks, activities, responsibilities, and accountabilities) which will also determine associated required talents and competencies defining behavioral attributes for best performance. A personnel manager has to undertake job analysis to recruit the right person on the job.Before you employ people, you need to think about what type of role you’re trying to fill. Job analysis is the process of getting detailed information about particular jobs. A job analysis will identify:•The skills, knowledge and attributes an employee must have to do the job•New tasks or responsibilities, given changed circumstances in the business.b.Job descriptionThe output of job analysis is the job description and specification. Job description is a process of describing the job to be performed. Or is a written statement which outlines the duties and responsibilities involved in performing a job such as who does what, when, where and why. The main contents are the job purpose and the job tasks and responsibilities.It informs employees exactly what is expected of them and provides a useful document to refer to when you are evaluating an employee’s performance. You can also use it to develop selection criteria, identify training needs, and manage performance.Purpose of Job Descriptiona. The main purpose of job description is to collect job-related data to advertise for a job. It helps in attracting, targeting, recruiting and selecting the right candidate for the right job.b. It is done to determine what needs to be delivered in a particular job. It clarifies what employees are supposed to do if selected for that particular job opening.c. It gives recruiting staff a clear view what kind of candidate is required by a particular department or division to perform a specific task or job.d. It also clarifies who will report to whom.e. Once someone has been employed, it will show whether they are carrying out the job effectively.Here is a job description for a financial manager
Main purpose of the job:•Responsiblefor book keeping, auditing and making financial reports for the business.•Responsible for accountants, cashiers and workers in the finance department.To take a supervisory role.Main duties•Preparing pay rolls•Making financial reports for external auditors and other stake holders•Advise the general manager and the managing directors on financial issues.•Supervise the subordinate staff•Advising staff when queries ariseOccasional duties•Appointment of new staff•Training new staff in their duties•Training new staff to use the equipment•Disciplining staff as and when required•Dismissing staff if necessary.c . Job specificationJob specification involves a definition of qualifications, experiences and competencies required by the jobholder and any other necessary information on the special demands made by the job such as physical conditions, unusual hours or travel away from home. Job specification sets out terms and conditions of employment such as pay, employee benefits, general health, mental health, intelligence, aptitude, memory, judgment, leadership skills, emotional ability, adaptability, flexibility, values and ethics, manners and creativity, etc.Purpose of Job Specificationi. It helps candidates analyze whether they are eligible to apply for a particular job vacancy or not. It is based on job description and job specificationii. It helps the recruiting team to understand what level of qualifications, qualities and set of characteristics should be present in a candidate to make him or her eligible for the job opening.iii. Job Specification gives detailed information about any job including job responsibilities, desired technical and physical skills, conversational ability and much more.iv. It helps in selecting the most appropriate candidate for a particular job.Here is a job specification for a financial manager.
Details of job:•Responsible for book keeping, auditing and making financial reports for the business•Responsible for Accountants, cashiers and workers in the finance department.To take a supervisory role.QualificationsEssential: Bachelor’s degree in finance and accounting. Master’s degree in the related field will be an added advantage.Experience:Desirable minimum 5years’ experience of working in the finance department.Skills:•Communication effectively with people.•Ability to manage people•Computer literate with computerized accounting software packages e.g. Sage or Quick booksPhysicalfitness:•Fit, needs to be fit all dayPersonal characteristics:•Honest and responsible.•Friendly, helpful, organized•High integrityd . Job gradingJob grading/classification is done when jobs are assigned grades e.g. A, B, C etc. by taking into account key skills, competencies and responsibilities required by the job to be done effectively. A job may be the one with just simple tasks which do not require higher education or experience.Following is a brief description of such a classification in an office;Grade I: Executives: Further classification under this category may be Chief Executive officer, (C.E.O) Office Manager, Deputy Office Manager, Office Superintendent, Departmental Supervisor, etc.Grade II: Skilled workers: Under this category may come the professionals like Purchasing assistant, Cashier, Receipts clerk, etc.Grade III: Semi-skilled workers: Under this category examples are drivers, Machine-operators, Switchboard operator etc.Grade IV: Unskilled workers: This category may comprise of persons like, messengers, housekeeping staff, File clerks, Office boys, accounts clerk, tea boys/girls etc.e. Job AdvertisementsJob advertisingIs a way organizations communicate to attract new employees to work with them.Recruitment advertisements typically have a uniform layout and contain the following elements;i. Brief description of the organizationii. The title of the job advertised, the grade and the manager to whom the job holder will reportiii. Duties and responsibilities of the job holderiv. Skills and Competences of the job holderv. Conditions of educational qualification and experience of that job position holdervi. The channel of communication used for submitting the applicationvii. The timeline during which applications will be submittedviii. The channel of communication for feedbackix. Signature and the stamp of the organization manager who wants to post the advertisement.Some business organizations use recruitment advertising agencies to receive professional advice and also help them to recruit new workers. They offer a service which they are paid for in return. Examples of recruitment agencies in Rwanda include; -i. Tohoza.comii. Umurimo.comiii. Jobs in Rwandaiv. NFT consultv. Ndangira.netActivity 8.1.3
Assume you want to apply for a post in any business company.i. Prepare an application letterii. Prepare your curriculum vitae.Application form is a form made to be completed by the person who wants to apply for the job. Application forms are different according to organizations, there are also some organizations that do not have their specific application forms.CV stands for Curriculum Vitae. This is a document that contains all details of the applicant. In recruitment, CVs are very relevant because they are used to track all the information needed to the job applicant. It should be well laid and clear with the following main components:•Name of the applicant •Education and qualifications•Address of the applicant •Work experience•Telephone number •Positions of responsibility•Date of birth •Interests/hobbies•Marital status •Languages•Nationality •Names and addresses of referees (for references)•Sexc. Application forms and CVs in the recruitment and selection process.Below is a sample of curriculum vitae (CV) /Resume for Janet.
g. Selection process
Selection is the process of getting human resources into organizations’ departments, sections and jobs. Human Resource Managers are responsible for recruitment and selection which should be clear on the type of employees they are looking for. Lack of clarity may lead to poor selection criteria and may result in the wrong person being recruited for the job.There are important steps in the process for effective competence-based recruitment and selection. These are:•Development of competence models for recruitment and selection.•Determination of selection methods.•Training of assessors.•Assess job applicants.•Validate the assessment methods.•Development of a database for future use.h. Recruitment test•Plan an effective interview•Develop a series of core questions to ask the candidates for the job.•Ask open-ended questions rather than those calling for “yes or no” answers.•Create hypothetical situations that the candidates would encounter on the job and ask how they would handle themApplication Activity 8.11. Design a job description for one of the following;a. A physics teacherb. Shop assistantc. Hotel manager2. Now prepare a job specification for your chosen job.3. How does a job description and a job specification help to ensure the most suitable person for the job is recruited?4. Draw an organization structure (organogram) for your school.5. Examine the organization structure of your school and describe the roles played by the main departments.Office support services Equipment
Activity 8.2
1. a. Describe the common office equipment types you are familiar with and their uses.b. How is this equipment kept safely?2. Analyze the photos below and answer questions that follow.
Questionsa. Name the office equipment in the pictures above.b. After completing senior six, a group of ICT students decided to start up a business of hardware maintenance and sales.i. Describe the office equipment they will need.ii. Explain how each of the equipment you have listed will be used.c. Give reasons why some office equipment or machines work for a short period of time and must be replaced?d. Explain what entrepreneurs should do to make their machines last longer to reduce the cost of production.8. 2.1 Equipment in a modern office
Modern equipment and gadgets should be installed in an office to complete the office work in an effective and efficient way. In the market these days, high quality machines are available which can be used to perform a given task in just a short time. All the equipment that you purchase should be according to the needs and requirements of your office.The most common office accessories and modern equipment that are being used these days are paper clips; post- it notes and staples, small machines such as punching machines, binders, staplers and laminators and other expensive equipment like computers, printers, fax machines, scanners, printers, photocopiers, office furniture such as chairs, cubicles; file cabinets and desks.The following are the common equipment used in offices:•Typewriters: These machines are used to type information on a paper. These may be manual or electronic and they work just as modern printers. These machines are phasing out.•Calculators: There are manual and electric calculators. The simplest ones will add and subtract. The more complicated electric calculators will add, subtract, divide and multiply and give sub totals.•Photocopiers: These are used to duplicate information on papers into various copies of the original document. Most modern photocopiers are very fast and can produce various copies at a time accurately.•Laminating machines: These machines are used for inserting documents into a plastic pocket and sealed with heat making the document dust and water proof. They are used for laminating single documents like identity cards and certificates. There are different sizes of laminating machines depending on the size of the document.•Binding machines: These are machines used for putting together office documents in a transparent plastic sheet as a cover to take a form of a book. Binding machines put holes in papers and they are attached together for proper and easy storage.•Computers: A computer is an electronic device used in the daily operations of the business. It stores files, processes and retrieves information needed in a business.•Cash register. These are machines used when a printed receipt is required when a sale is made in a business.•Cheque writing machine: This machine is used for writing cheques and is used mainly in banks. Instead of writing a Cheque manually, a Cheque leaf is inserted into the machine and it’s written on electronically. This helps to write many cheques in a short time possible.•Note counting machine: This machine is used in counting money in form of notes. It is used mainly in banks and other busy companies which count large sums of money.•Coin counting machine: This machine is used for counting coins. It is mainly used in banks and forex bureaus.•Stapling machines: These are used for fixing related documents together.•Letter opener: This is a hand-held devise shaped like a knife that cuts off edges of envelopes. It can be used to open a single envelop or numerous envelops at a time.•Letter or parcel scales: These are used to weigh correspondence to ensure correct postage. Most parcels are weighed before posted, because the cost of postage of a parcel depends of its weight.•A date-stamp: This records the date on which the letter was received.•Shredding machine: This is a machine used to destroy secret and confidential material if no longer required. It cuts paper material into smaller pieces, making it impossible to read again.•Punch: This is used to put holes in a document ready for filling. The size of punch machines varies, depending on the size of the office and the documents filled at a time.•Addressing machine: This is used to print names and addresses of regular customers or correspondents. Small plates bearing the name and addresses are prepared as stencil. Envelopes are passed through the machine and names and addresses are written on automatically.•Franking machine: This is used to print postal stamp impressions on the envelopes. It can also be used to print advertising slogans on envelops.•Guillotine machine: This is used for cutting and trimming papers to the required size and shape.•Composite machines: These are machines used to fold documents, insert them in envelopes and seals the envelopes.•Mobile phone: This is a device used to call and send or receive messages to and from the office. Service providers like Mtn, Tigo and Airtel make office telephones inter connected to other networks, and it aids in the quick and faster conveying of information.•Filling equipment: This equipment is used for storing important files of an office. It consists of covers, folders, box files and filling cabinets.•Projector: This is used in large meetings, seminars and presentations.Other equipment may include: pair of scissors, chairs, tables, trays, trash cans/dust bins, etc.8.2.2. Selection of equipment for given office tasks
Equipment and machines are essential part of a modern office. Most of them are used for efficient, accurate and speedy performance of office activities. The most suitable equipment should be selected based on the factors explained below.1. Ease of operation: The best choice of office equipment should be one which is easy to use and operate. This results into faster operation of business activities, less fatigue, and errors are reduced.2. Flexibility: The choice of equipment should depend on the different types of work it can perform. It’s always better to select an equipment which can be used for numerous kinds of work.3. Durability: Machines are used by different people under conditions that vary. The best equipment or office machine should be strong and long lasting.4. Portability: Office equipment’s are frequently moved from one user to another user or from one place to another place in the same work environment. The choice of equipment’s should put into consideration the ease to carry. Modern machines have been reduced in size and weight without the sacrifice of the quality.5. Adaptability: If a machine can be used without disrupting an existing system, it would be better to do so than go in for one which necessitates a considerable rearrangement of the forms and records involved of extensive recopying of information and of adjustments in procedures.6. Service: Reliable and continuous performance demands quick repairs and proper maintenance. The machine which can be serviced promptly has an advantage over one which cannot be serviced. Therefore, the spare parts of the machines should be easily available in the markets.7. Operating cost: This includes things like supplies, the space occupied, the special equipment and repairs etc.8. Reputation of the Supplier: Few people have the expertise to judge the mechanical qualities of a machine; one has therefore, to depend upon the integrity of the manufacturer and dealer to furnish a good machine and to backup claims and guarantees.9. Styling: A modern office requires machines which have a pleasing design, color, touch and sound.10. Cost: The cost of an office machine is a major factor in buying it. The cost of a machine or equipment should be within the budget of the business.11. Training facilities: If facilities are available to train the staff of a firm to use computers and other types of latest technology equipment, then the organization will prefer the use of this type of equipment.12. Quality and speed: Office equipment should be of high quality and speedy in nature.13. The need of the office equipment: Before selecting any machine, its degree of need must be checked thoroughly. Make an analysis on the alternates of the machines available.14. Safety: The machines to be used must be safe to the users. Machines which are not safe should not be used in offices because they might harm and cause diseases to the workers. Such as cancer.15. Standard and noiseless machine: The standard machines are further developed as noise proof at action. Such noiseless machines are the most needed in a business environment.16. Environment friendly: Machines and office equipment used should be environment friendly although their price tag tends to be higher than those that are not environment friendly.8.3.2. Maintenance and care for office equipment
Manufacturers recommend proper maintenance and servicing of office equipment for machines to work effectively, efficiently and serve longer periods. Regular maintenance helps ensure that office equipment runs efficiently. The following are some of the ways of proper maintenance and care for office equipment:•Clean environment: Ensure that all office machines and equipment are in the right environment, away from places with excessive heat or moisture.•Warranty period: New equipment normally have a warranty period that may include a regular servicing schedule for a set period.•Regular servicing: After the warranty period has expired an organization can choose to take out a maintenance agreement that ensures the equipment are maintained at regular intervals for a specified period of time.•Scheduling services: Regular services should be scheduled for times that minimize the impact on the operation of the firm. As you gain experience you will begin to identify the number of times that a machine is used less frequently.•Paper jams: Printers, fax machines and photocopiers can be affected by paper jams. If a paper jam occurs, then you should follow the instructions in the User Manual for clearing a paper jam or the prompts on the control panel of the photocopier or fax. This process may be quite straight forward for a computer, printer but can be quite complicated for a photocopier.•Stock levels: Consumables to be available when required it is important that appropriate stock levels are maintained. Not having consumables in stock can cause a piece of equipment to become inoperable leading to serious problems for the completion of work•Replacing consumables: The consumables used with office equipment, such as paper cartridge and toner need to be replaced at certain times.•Encouraging feedback from the users: By encouraging feedback from the users you are more likely to find out when a piece of equipment is beginning to malfunction.•Keeping a log book of faults: Some organizations keep a log book for each piece of equipment that records the faults that have occurred. The people who discover a fault can complete the logbook themselves or they can inform the person responsible for maintaining the equipment who can then complete the log book.•Cleaning tools: While cleaning the office equipment, use the types of tools suggested by the manufacturer, for example, the correct cleaning cloths or brushes should be used for photocopiers.•Cleaning fluids: Use the right cleaning fluids suggested by the manufacturer.8.2.4. Security for office equipment
The list below provides some of the solutions to theft and damage of office equipment and machines, which will help to reduce business costs and unnecessary expenditures in repairs and maintenance.i. Installation of cameras: Security cameras such as Closed-Circuit Television (CCTV) enable business owners and managers to keep an eye on activities that they would not normally be able to keep track of. This reduces the cases of theft of office equipment.ii. Installation of entry alarm systems: An alarm system is a must for most modern businesses. Whether it is installed to protect employees, inventory, or information, an alarm system allows only authorized personnel to enter the premises. The system may be activated at night only, such as when a business is closed or all day long in an office. There are different types of alarms to suit these purposes. This limits the theft cases of office equipment and machines.iii. Fire alarms and smoke detectors: Modern technology makes it easy to warn people evacuate in time, if a building catches fire. In case a fire is detected on time and prevented, it helps to protect damage of office equipment and machines.iv. Fire extinguishers: These are tools that can be put in place to reduce on the damage of office equipment, in case of a fire. Fire extinguisher trainings should be part of company’s regular safety training, because having the extinguishers on hand is not enough if nobody knows how to use them.v. Locks: are the ultimate basic security equipment: locks have been used for many years in varying forms, including combination locks, key locks, and deadbolt locks. Locks are most often used on exterior and interior doors. They may also be placed on windows, cabinets, desks, and equipment. The business owner must determine where interior locks are necessary; any possible entrance to the building itself should always be locked to protect office equipment from being stolen.vi. Safes: A business can design lockable safes, where office equipment such as stapling machines, punch, scissors, etc. can be kept. This will reduce on the cost of replacing them in case of theft.vii. Marking of equipment: Office equipment can be labeled with a business name or company logo. Most businesses label their equipment using stickers placed on the equipment. This prevents them from being stolen.Application activity 8.2
1. The use of Machines in any business play a vital role for their success. What are the advantages of using machines?2. Carry out a research of office equipment with brand names that you believe are more durable and of high quality compared to others. (Ask the school secretary, Director of studies, or any other office worker for this information) and report your findings.3. Assume you are the new ICT teacher or Computer lab technician for your school. Suggest the measures you can put in place to maintain proper care of all equipment or machines in the computer lab. (Visit a computer lab and ask the teacher or technician available or read the rules and regulations in your computer lab.)4. For any office ever visited be it in school or other businesses, Identify the security tools used for their office equipment and machines.8.3. Telecommunications
Activity 8.3
Read the text below and answer the questions that follow.Rwanda’s mobile phone penetration rise over the past five yearsWith the recent development of communication facilities, the large majority of Rwandan population has continuously adopted the use of mobile phone as one of the technology platform to share information. Within this move, the mobile phone penetration has impressively increased from 2005 to 2010 across the whole country.According the third EICV (Integrated Survey on Life Conditions), the percentage of households with at least one mobile phone which was 6.2 percent in 2005/2006 has increased by 39 percent to reach 45.2 percent among the general population in 2010/2011.The City of Kigali made a big progress in terms of mobile phone ownership because the percentage of households with at least one mobile phone in Kigali City was 79.6 percent in 2010/2011 from 33.2 percent in 2005/2006, which is a growth rate of 46.4 percent in only five years.Countrywide, Kigali recorded some great different vis-à-vis other provinces with a rate of 79.6 per cent of household owning mobile phone followed by the Eastern province with 48.4 per cent. The three provinces which have a low percentage of mobile users are namely Northern, Western and southern provinces with a proportion of 41.9%, 40.4% and 35% respectively. The percentage of households which own at least a mobile phone also increased in urban areas (from 26.5% in 2005/2006 to 71.5% in 2010/2011) as well as in rural areas (from 2.2% in 2005/2006 to 40.6% in 2010/2011). In terms of gender, the households headed by female accuse a low percentage in owning at least one mobile phone in 2010/2011 with 35.1% against 49% of households headed by male. In terms of mobile phone subscribers, the number has also increased from 2009 to 2011. The number of subscribers was 2,429 thousand in 2009 and 4,842 thousand in 2011, which is a growth rate of 99.34%.Source: Statistical yearbook 2012The mobile phone in Rwanda is used for different purposes: calls and short messages sending/receiving, money transfer, recording and playing music and movies, picture shooting, listening to the radio, watching TV, internet connectivity, advert and publicity etc. The increase of ownership of mobile phones goes together with the increase of economic growth of a country.Within the current situation of mobile phone penetration, both public and private institutions are affording means to plan they can use this opportunity for other functions to foster the potential of national development.1. Using the case study above mention any areas where telecommunication is being used mostly in Rwanda in 2011.2. Why is the use of telecommunications in a business environment very essential?8.3.1. Telecommunications methods
Telecommunication is the transmission of signs, signals, messages, words, writings, images and sounds or intelligence of any nature by wire, radio, optical or other electromagnetic systems. It is transmitted either electrically over physical media, such as cables, or via electromagnetic radiation. Such transmission paths are often divided into communication channels which afford the advantages of multiplexing.Long ago, people used to communicate by use of smoke signals, telegraphs, signal flags, drumbeats, lung-blown horns, and loud whistles. Due to the development of technology in the 20th and 21st century, long-distance communication usually involved the use electrical and electromagnetic technologies, such as telephone, social networks, radio, microwave transmission, fiber optics, and communications satellites. Specifically, these methods are mainly fax, e-mail, telephone, mobile/cell phones, answering machine. etc.8.3.2. Advantages of telecommunications
1. Quick and accessible communication: With telecommunications, sending and receiving messages has become quicker and accessible with the use of internet and other social networks.2. Costs are reduced: There is no need to travel long distances while sending and receiving correspondence. Telecommunications has solved the problem for most businesses.3. Saves time: Telecommunications saves time of travel and delivering of information. It’s just a tap of the mouse and information is delivered.4. World Wide access: With the use of the World Wide Web, businesses and customers can link, which solves the problem of communication and marketing of company products. This facilitates e-commerce and globalization.5. Saves gasoline (do not have to drive distance): Telecommunications has solved the costs of transportation for most businesses, for, most transactions are done online or by use of telephone.6. More than two people can communicate to one another at the same time: This is possible with email and web conferencing, where by more than one person can communicate at a time.7. Easy to exchange ideas and information via phone or fax: With just a phone call away, people can share business ideas quicker and faster thus making business easy.8. Easy access to the people you need to contact with: Business can easily contact with customers, suppliers and other stake holders by use of telecommunications.9. Enable end users to communicate electronically and share hardware, software, and data resources. Telecommunications has made business better. Goods can be delivered online for example software products.10. Enable a company to process transactions immediately from many remote locations, exchange business documents electronically with customers and suppliers, or remotely monitor and control production processes.11. Interconnect the computer systems of a business so their computing power can be shared by end users throughout an enterprise: This helps to build internal communication in a business and bridges the gap between the employer and the employees.12. Develops new products and inventions: Through research on the internet, people are able to come up with different ideas and innovations, which makes businesses grow.13. Telecommunications inspire collaboration among workers: the use of technologies, such as video calling, video conferencing enables employees to work in different departments or separate locations with ease. This yields better performance on any given project.14. Telecommunications play a pivotal role in the development of infrastructure of the national security.Disadvantages of telecommunications1. Misunderstanding: Sometimes the messages communicated are misunderstood by the end users making it a barrier in communication.2. Prank calls. Some people misuse telecommunications to make calls which are misleading to the public. These are calls made to trick others.3. There are expensive: The cost of a telephone line and the gadgets used in communication can sometimes be expensive. This has become a barrier to most startup businesses.4. High electric bills: Telecommunications increases business costs in terms of electricity. Telecommunications cannot be possible without the electricity, and in some areas, it’s too expensive for the business.5. Remote areas do not have access: Some rural areas face a challenge of poor network, thus making telecommunications next to impossible. This makes the businesses fail to communicate effectively with its customers and suppliers.6. Eliminates face to face contact: There is lack of facial expressions when using most telecommunications. For example telephones, fax, email and radio. This may result into misunderstanding, misinterpreting the message and unhealthy relationship thus poor performance in the business.7. Increase Vulnerability to Information Hacking and Attacks: The use of telecommunications may lead to the information being hacked and this may affect the business operations.Activity 8.3
Using examples of businesses around your community or school business club identity various telecomunication method used and how they can control costs of telephone and data communication8.4. Business documents and payment procedures.
Activity 8.4
You are in the sales and marketing department of a business and you are re-quired to connect with potential customers, suppliers and banks. Identify and explain some of the documents you will need in the buying goods and services as well as payment of goods.8.4.1. Documents used in buying and selling of goods and services.
Buying of goods: This is a process where a person obtains the right of ownership over a product in return for a price.Selling of goods: This is a process where the seller gives up the right of ownership of a product for a price.In today’s modern business environment, it’s necessary to prepare some documents to make it easy for the flow of goods and services. These documents may include the following: -1. Purchase requisition/purchase order.A purchase requisition form is a document which allows employees to request the purchase of a good or service using a uniform process that provides details of the purchase for a purchasing agent, accounting employee or whoever approves purchases.These forms usually include the name of product or service, the quantity desired, the stock or model number, the desired delivery date, the cost and the reason for the request.The person you choose to review and approve purchase requests, checks the order details against previous purchases to make sure you are paying the correct amount or may use the form to solicit bids if the request is for a large amount of money.Format of the purchase requisition form
2. Letter of enquiryIt is a document sent by the buyer to the seller to find about the goods required, their availability, their prices, quantity and the terms of payment. The buyer can send a number of letters to various sellers to find goods at lower prices and are of qualityFormat of the letter of inquiry
3. Reply to an inquiry.The seller replies through a price list, quotation,catalogue or a sample.i. A price list is a document which shows the goods available for sale together with their prices.
ii. A quotation/proforma invoice. It is sent by the seller to the buyer in reply of the letter of enquiry. It provides all the relevant information required by the buyer which has been mentioned in the letter of inquiry. It shows the types of goods, their brands, their respective prices, the terms of delivery, the terms of payment. etc.iii. A catalogue Sometimes, instead of sending a quotation, the seller may send a catalogue to the buyers containing detailed and classified information of the various types of goods offered for sale. It is similar to quotation but prices are not quoted there in. It can be used as an advertisement medium. A catalogue is a book or a leaflet which shows the nature, type and prices of goods that are on offer.
A sample is a consumer product that is given to the consumer free of cost so that s/he may try a product before committing to a purchase.
4. A purchase order: Purchase order is sent by the buyer to the seller to place an order for buying the goods regarding the quotation. It states the type, brand, quantity and price of the goods (as given in the quotation) as well as the terms of delivery, the terms of payment, the expected delivery date and the address to which the goods are to be sent.Format of a purchase order
5. Dispatch note: It is a document sent by the seller to the buyer to inform the buyer that the goods have been dispatched or sent. It shows the quantity of the goods and the date of dispatch.6. Delivery note: It is a document sent by the seller to the buyer along with the goods to confirm the delivery of goods. It must be signed by the buyer to confirm that the goods are delivered in accordance with the conditions established.7. Consignment note: It is almost like the delivery note. It is a document sent by the seller to the buyer when the goods are delivered through the hired vehicles. It is a formal instruction to the transport firm to deliver the goods to the customer. It is signed by the consignor and the consignee.8. Invoice: An invoice is a document sent by the seller to the buyer to inform the buyer about the amount due on the goods supplied, stating also the type, quantity, price and terms of payment. It is used for the goods sold on credit. It is a very important document used for accounting entries.Example of an invoice
9. The debit note.It is a document prepared by the seller and sent to the buyer who has been undercharged on an invoice. It informs the buyer that his account is debited, increasing the amount that he owes.Reasons for issuing a debit note.i. If there has been an undercharge on an invoiceii. If some charges like delivery, packing, loading, etc. have not been included in the invoice.10. The credit note.It is a document prepared by the seller and sent to the buyer who has been overcharged on an invoice. It is sent to the buyer to deduct the over charged amount in the invoice. It informs the buyer that his account is credited, decreasing the amount that he owes.Reasons for issuing a credit notei. If there has been an overcharge on an invoiceii. If damaged goods have been returned by the buyer.iii. If the goods are short delivered to the buyer.iv. If the buyer has returned gift vouchers or coupons to the seller8.4.2. Receipts and payments
1. ReceiptIt is document issued by the seller to the buyer as a proof of the money received. When the payment is made by Cheque, it is not necessary to issue a receipt since the Cheque serves as a proof of payment.Format of a receipt
2. ChequeThe Cheque or draft should be sent by the buyer to the seller in the given period to settle the due amount mentioned in the invoice. Nowadays the traditional payment method is replaced by the online payment using cash cards.Format of a Cheque
3. Statement of account: It is sent by the seller to the buyer showing the summary of the transactions between the buyer and the seller for a particular period of time. It shows the amount of goods purchased, the returns made, the payments, cash discounts, details of the credit note, debit note and the amount due.4. Pay-in-slip: A deposit slip is a document supplied by a bank for a depositorto fi ll in, designed to document in categories the items included in the deposit transaction. The categories include type of item, and if it is a Cheque, where it is from such as a local bank or a state if the bank is not local. The teller keeps the deposit slip along with the deposit (cash and cheques) and provides the depositor with a receipt.5. Credit transfers: The transfer of money from one account to another, mainly from one bank account to another. It is also called a wire transfer. The buyer may decide to transfer money from his/her bank account to the bank account of the seller.6. Direct debits: A direct debit is an arrangement made with a bank that allows a third party to transfer money from a person’s account on agreed dates, typically in order to pay bills. This is a common payment method to regular suppliers made by the business.7. Standing orders: A standing order is an instruction to a bank by an account holder to make regular fixed payments to a particular person or organization. It’s one of the modern payment methods for suppliers who have fi xed supplies to an organization or a business.8. Credit card: A credit card is a small plastic card issued by a bank, building society, etc., allowing the holder to purchase goods or services on credit. It allows the card holder to buy goods or services even when they have no money on their accounts.9. Debit card: A debit card is a card allowing the holder to transfer money electronically from their bank account when making a purchase. It can only allow the account holder to buy goods and services when they have money on their bank accounts.
8.4.3. Stock control
•Stock Control Requisitions.A material requisition form lists the items to be picked from inventory and used in the production process or in the provision of a service to a customer, usually for a specific job.Format of a stock requisition form
1. Stock control cards/ bin cards/ stock sheetA stock control card is a document that records the status of goods held in a stock room. A typical retailing business with a large stock room will use a bin card to record a running balance of stock on hand, in addition to information about stock received and notes about problems associated with that stock item.
Application activity 8.4
1. You are the new purchasing manager of a Hotel in your community. Mention the types of business documents you need to buy for the hotel.2. Use the same business of a hotel to prepare the business documents for the supply of food products of Hotel.i. Letter of inquiryii. Purchase orderiii. A price listsiv. An invoicev. A receipt.3. Why are these documents needed in any business?8.5. Information and record handling.
Activity 8.5
Visit the school bursar, director of studies, library or any other office in school and ask them how office documents and confidentiality of information are filed. Ask them how these records are safely kept.4. There are times when a staff member fails to trace documents for a client or a customer due to various reasons. Sometimes confidential information for example business finances, payrolls or contracts are read by third parties or sometimes go missing.i. Explain the causes of loss or insecurity in the filing systemii. As the new data clerk for an organization, why should business enterprises practice filing of office documents?Maintenance of established filing systemIn any business/organization, there are different documents/records. These documents can be classified as business records and official incoming and outgoing correspondences. These documents should be organized and filed properly as they can be used later for different reason.Filing refers to a process of classifying and arranging records for easy retriving with out delay.It’s the systematic arrangement and keeping of business documents so that they may be found and delivered when needed for future reference.•Classification systemThere are different systems of classifications. The classification system refers to the basis of arrangement of documents in a folder. The documents can be classified by five main methods: alphabetical, numerical subject, geographical, chronological or same combination of them.1. Alphabetical is where documents are filed according to the first letters of either the name of sender or subject. It is similar to the names in the telephone.
Advantages of alphabetical filing
i. It is convenient in grouping papers by name of companyii. It facilitates direct filing, with no need of indexing since the files are arranged alphabetically.iii. It is simple and easy to use for all employees and new employees.iv. One folder can be opened for many files without opening separate files.Disadvantages of alphabetical filing
i. In large systems, it may take a long time to find papers.ii. It may lead to congestion under common names.iii. It is difficult to forecast space requirements for different letters of the alphabet.iv. Documents can be filed differently due to wrong spellings of names.2. Numerical filling: This is where documents are arranged according to numbers rather than letters. This system is useful for fi ling orders or other items kept in numerical sequence index which is necessary for locating the correct file.
Advantages of numerical filing
i. There is unlimited room for expansion. New documents are added to the file as they come in the office.ii. It is a highly efficient systemiii. It helps in cross-reference with other systems.iv. The file number can be used as a reference for correspondence.v. The file number can be used for other purposes, for example, a mailing list as well.Disadvantages of numerical filing
i. It takes longer to file materials as it involves two operations. i.e. recording of the document number on the card index and filing of the document.ii. Filing and location of documents is not simple.iii. A separate index must be provided for each file.iv. It takes time for new employee to fully understand the system and the code numbers.3. Geographical filing: This is where files are divided according to their place of origin for example, countries, provinces or districts, regions. The files within each group are arranged alphabetically.Advantages of geographical filing
i. It is suitable for companies that have several branches spread all over the country, e.g. commercial banks, telecommunication companies.ii. It is convenient when the locations are knowniii. It facilitates easy access for filing purposes.Disadvantages of geographical filing
i. Possibility of errors in case the geographical location is not known.ii. Some geographical names can be misspelled leading to confusion in the system.4. Chronological / dates filing: This is a filing system where all documents are filed in order of their dates of receipt. This system is rarely used but it is a useful method of filing papers inside each folder.Advantages of chronological filing
i. Useful if the dates are knownii. It provides for unlimited scope of expansionDisadvantages of chronological filing
i. It is not always suitable to different types of records.ii. Incoming letters might be mixed up with outgoing ones.5. Subject/ category filing: Subject filing is where files are classified according to subject headings topics. Main headings and subsidiary items are in alphabetical order.
Advantages of subject filing
i. All documents referring to a particular subject or mater are kept together in one place.ii. The files can easily be expanded or contracted by simply adding new ones or removing old ones.Disadvantages of subject filing
i. It is difficult to determine the list of divisions and it requires one to have knowledge of the business and its files.ii. It is difficult to determine the headings for filing purposes. It requires a trained and careful employee.•Filing/sorting MethodsThis refers to how covers of file are kept in the filing cabinets. The four main methods include:Horizontal filing: Is when files are kept in the shelves or drawers when one is on top of the other: they are facing east to west.Vertical filing: Is when files are kept in the shelves or drawers when they are standing upright. they are facing north to southLateral filing: This is where files are arranged side by side in the drawers or shelves. This method saves space because of the great heights.Suspension filing: Is where two metal bars are fixed on the sides of a filing cabinet drawer. The files stand in a vertical position. this method has an advantage because they are tidy since they are upright and it’s easy to locate them.•Efficient and effective filing systemCharacteristic of good filing systemA good filing system should have the following characteristics:i. Compactness: It should not take up much space; especially the floor for the filing cabinets.ii. Accessibility: Record cabinets should be easily accessed. It should be easy to file records or extract them. Without having to disturb others.iii. Simplicity: The system should be simple to understand and operate.iv. Safety: A high love of safety should be ensured for documents according to their importance. They should, therefore, be protected against hazards like fire.v. Elasticity: The system should be capable of expansion when required.vi. Cross-reference: Reference should be provided where necessary information should be provided on file movements such that it is easy for users to trace them.•Procedure of keeping documentsThe documents are kept in a folder or file and are arranged in a specific manner. Each organization has its own way of organizing files and are kept for a specific period of time. Some documents are kept in a single office while others are kept according to the department responsible. These are the centralized and the decentralized filing system.i. Centralized filing system: Centralized filing system is one in which the records or files for all staff are in one central location.Advantages of centralized filing
i. It helps to develop staff who are specialists in filing.ii. There is easy control of all files since they are controlled in one room.iii. Files are easily controlled and monitored in one central unit.iv. It ensures that all correspondences about the same subject are kept together.v. It ensures establishment of a uniform system of filing throughout the organization.vi. The time spent to search for the files is reduced.vii. It is very safe to control since all records are in one central location.viii. It reduces costs for printing and use of papers.Disadvantages of centralized filingi. Files may be too far from staff for adequate service.ii. The system requires full time staff for filing purposes.iii. It requires more capital for investment in more efficient filing equipment and space.iv. It is risky or vulnerable because all records are kept in one central location.v. If a company has numerous departments working from different regions, this system may not be suitable.vi. The filing department may become a storage place of unwanted and unnecessary documents.ii. Decentralized system:A Decentralized filing system is one in which the files are located at individual work stations and usually controlled by each person who uses them.Advantages of decentralized filing systema. There is less duplication of equipment and work; more staff has to be engaged hence it proves to be more costlyb. There is very little scope for socialization as each filing clerk has to do various operations.c. Standardization of filing work is not possible where each department has its own system and method of filing.d. There will be difficulty in filing the documents which concern more than one department.e. It prevents misfiling since the work is done by different departments that are specialized in that field.f. It promotes secrecy. In case the work is confidential it will not be known by other departments.g. It is a suitable method if the functional departments of an organization are located in different geographical areas.Disadvantages of decentralized filinga. There may be confusion as to where information can be found especially if staff member is absent.b. Can result in duplication of related information due to having different filing places.c. Individual staff members may not know how to properly maintain their files.d. Lack of uniformity in the filing of documents.•Safety, security and confidentiality of information.Records (business information) must be kept safely to enable management to study them thoroughly in order to take proper decisions relating to past and present situations in the business, so as to make decisions for the future success.Safety, security and confidentiality of records1. Verification: Records can be verified whenever needed.2. Justification: Records must be maintained with some justifiable purpose otherwise, it will be a waste of money, space and time.3. Classification: Records must be classified according to their use. They may be classified according to time or chronology or subjects.4. Information: The information required must be available whenever it is needed.5. Elasticity: The record system must be elastic in capacity so that it allows room for expansion or contraction of records is possible.6. Reasonable cost: The cost of record management must be a reasonable one. For more important records a large amount may be spent and for less important records only small amount should be spent.7. Records management: Should be simple, accurate, economical and useful for the organization.Purpose of maintaining business informationPast records of business are maintained for different purposes depending on the unit or office.1. Accounts of progress are kept in an orderly way: In business it is necessary to measure the progress of the business organization or to find out history and other facts about the firm.2. Proper study of the position of the firm: Records of past transactions are the basis on which further study can be made. The preserved records are contributory factors, without which a good and proper study of the position of the firm cannot be made and therefore a statement cannot be prepared.3. Comparison of business: Past records make it easy and possible to compare performance of one period with that of another period, one place with another, one result with another.4. In case of disputes: The need for referring to records or documents often arises for the settlement of disputes in transactions. All information cannot be remembered.5. Policy making: Past records, events are very necessary to decide future policies and plans. In the absence of records, the policies and plans may not be successful.6. Legal requirements: Certain records are to be kept for a number of years from the legal point of view.7. Evidence: Records are good evidence in courts of law, in case of disputes.8. General use: For example, customers may need to refer to the previous correspondence by quoting the number.How to ensure documents are kept well in an organization?The following must be put in place to ensure safety of records; -i. The organization should ensure that it has qualified staff in keeping records.ii. All confidential documents should be kept in a centralized filing system.iii. Documents should be checked regularly to ensure that they are kept safely and intactiv. Offices should be locked when leaving the work place.v. Use a single filing system, either alphabetical, numerical, geographical filing in order not to confuse files.vi. Modern filing cabinets should be used for the documents.vii. The filing room should be kept clean and safe from any things which may destroy the files.
File retention policy.Business organizations that have existed for many years have a challenge in keeping large numbers of files and business correspondence. For example, Rwanda Education Board, must keep all students answer sheets for a period of time, as well as certificates, and other internal documents. Others include schools, which keep student’s records, report cards, certificates, minutes of meetings, employee contracts, and many other valuable information. At a certain point, the files have to be destroyed in order to create more space for new records and files.A file retention policy is an organization’s established protocol for retaining information for operational or regulatory compliance needs. It helps to identify the duration of time for records to be maintained or retained. When writing a data retention policy, you need to determine how to:i. Organize information so it can be searched and accessed in futureii. Information that is no longer needed should be disposed off.Some organizations use a data retention policy template that provides a framework to follow when crafting the policy.Data retention policy of an organizationDestruction of specific records shall be carried out in accordance with policy, laws and regulations. The policy specifies persons responsible for administration, storage and retention of organization’s records.Application activity 8.5
1. You are the head teacher of a school in your community. Do you think it’s important to retain documents or files for the school? Give reasons for your answer.2. Why do you think it’s important for some organizations to destroy old files and documents?3. a. Visit any office and identify the filing system used.b. Find out why that system of filing is being used.c. What challenges does the office personnel meet while using that type of filing system.4. For the following organizations, choose the best filing system, either centralized filing or decentralized filing system and justify the reasons for choosing it.a. A hospitalb. A staff room at schoolc. A commercial bankd. A private business organizatione. Rwanda education board.Skills Lab Activity 8.6
You are planning to start a business of your choice in your community.Required;1. Draw the following business documents that you will be using in your businessi. Inquiry noteii. Purchases orderiii. Invoiceiv. Receiptv. Good received note2. Explain how the above drawn documents will be used in your businessEnd of unit 8 assessment.
1. With reference to a business project owned by your school business club.a. Identify how the documents are being filed.b. Design an organization chart of the business club and give functions for each departmentc. Design a job advert for the post of an accountant.2. You are operating a bookshop in your home area. Some clients return damaged copies.Present the goods returned note for the stock returned.3. a. Describe the ways how you would advise your head teacher to store the information about the students.b. Describe the different classifications you would advise your librarian to file the school past papersc. Identify the filling cabinet used in your school.d. Identify some of the business documents that you know.d. Explain at least three details of documents4. You are applying for a post of Head Security Officer for a bank. Prepare a detailed curriculum vitae and an application letter for the post.5. Gikundiro is a senior six level student who wants to start a fruit processing business and she needs help from you to:a. Design an advert for various posts in a fruit processing business.b. Identify office equipment she needs in her office.c. Prepare at least two business documents she may need while operating business. Respond to Gikundiro’s request.