CHAPTER 12: Organization for Office Management and Business Research

This section introduces the topic of office management and business research, outlining the objectives of the discussion: understanding their meaning, importance of office work and services, the role of office accounting organization, and identifying types and roles of business research.

Office management is defined as coordinating office activities and maintaining employee satisfaction to achieve efficiency and effectiveness. It involves planning, design, and implementation of work processes, creating a focused environment, and guiding personnel to meet business goals. It's crucial for controlling activities, reducing costs, and coordinating enterprise operations.

The office manager is typically responsible for office management and services. This individual needs a broad understanding of the enterprise and managerial abilities to solve diverse problems. In companies without a dedicated office manager, these responsibilities might be delegated to an administrative assistant, chief accountant, or other executives.

Office work serves as a facilitating function, integrating various enterprise activities. It provides the basis for managerial activities like planning, coordinating, directing, and controlling by supplying necessary facts and information. It also supports technical and individual work across departments, such as credit management requiring accurate records.

Office systems refer to the organized way office work is performed, including routines for filing, record-making, and letter writing. The decision to centralize or decentralize functions, such as creating a centralized typing pool, impacts efficiency, cost of supervision, and allows employees to focus on core tasks.

Record-keeping is a fundamental office function, often handled by accounting. Records of purchases, sales, and correspondence are essential for tracking accounts, reporting business performance, and guiding future activities. Records must be simple, sufficient, accurate, economical, and useful for planning, performance evaluation, and meeting government requirements.

Office layout involves determining space requirements and arranging physical factors functionally (e.g., all typing in one section) or according to workflow. Environmental conditions like light, temperature, and noise control also influence layout, though personal preferences sometimes override scientific reasoning.

The growing adoption of office machines, such as electric typewriters, calculating devices, dictating machines, and various accounting machines, has improved efficiency, lowered costs, and enhanced the quantity and quality of office performances. Many specialized machines exist for tasks like microfilming, addressing, sorting, and billing.

Office services are provided to facilitate the work of other departments. These include handling incoming and outgoing papers (mail), preparing communications through dictation and transcription, centralized correspondence practices, conserving letters and papers through efficient filing, procuring and distributing office supplies, maintaining a first aid unit, and providing employee services like a library or cafeteria.

Modern business demands more from office work and services, requiring scientific methods to establish standards of output, quality, and pay. Standardization of office work and methods has advanced rapidly, driven by the need for effective control through records, correspondence, and routines.

The main function of office accounting is to keep management informed about business operations by collecting and presenting pertinent information. The accounting department is crucial for sound business judgment, maintaining accurate and up-to-date records of transactions, money received and paid, and outstanding debts. The chief accountant, reporting to a controller or treasurer, heads this department.

The accounting department prepares records showing financial flows and obligations. From these records, reports are generated for management to assess business progress (Headway, standstill, or decline) and identify strengths and weaknesses. Reports are also prepared for departmental heads to monitor individual performance and costs.

Business research is the process of acquiring detailed information across business areas to maximize sales and profits. It helps determine profitable products and market demand. Its function is to systematically and scientifically ascertain facts, estimates, and opinions relevant to business, aiding decision-making and forecasting consumer desires.

Business research can be commercial, focusing on consumer tastes, buying habits, and the impact of promotions, or technical, concerned with developing or improving products, equipment, and methods. Research can also be empirical, relying on past experience, or scientific, establishing casual relationships. Tools like mathematical theory, sampling, statistics, and interviews are used.

Office management and business research are vital for business success. Office management increases efficiency, ensures smooth workflows, minimizes costs, and aids in public relations. Business research provides insights into target customers, market trends, and demand. Both are crucial for the organization's survival and performance.