Lesson-5 by mayank govil

FUNDAMENTALS OF ACCOUNTING AND MANAGEMENT –I MANAGEMENT – CONCEPTUAL FRAMEWORK

LESSON 5 ADMINISTRATION AND MANAGEMENT – MEANING & FEATURES The administrative section of an organization is one of the key departments as it helps all the other employees and ensures that the office activities are running without a hitch. Thus it is important to learn the functions of this department in greater detail.

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Objectives After reading the lesson, you should be able to understand the office management functions and apply them in a work place. You will also become familiar with the technology used in this function and the potential pitfalls you would come across.

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Introduction Office management functions vary from one company to another and require the services of a specialist. This lesson aims to provide you with an introduction to the activities in the administrative section of a firm. It will also equip you with the technology used in providing efficient administrative services. Administration and Management’ mainly deals with the day-to-day functioning of an organization. The scope of this function covers all the entities including the employees, chief executives, outside vendors and the inter-linkages amongst the departments. Every firm has tasks that are routine and recurring in nature, such tasks have to be performed with great efficiency for the smooth functioning of the organization. Administration refers to the management of such tasks. The term ‘Office Management’ is used to describe such activities. Office management comprises the following functions:

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Receiving information: includes sorting, filing, distributing, entering data and posting entries. Arranging: this includes keeping various files in a certain order, indexing and segregating. Communicating: this refers to activities like typing, photocopying, telephoning, mailing (including emails) and setting up appointments (this task applies especially if one is employed with the chief executives).

Who is responsible for Office Management? The answer to this question varies from organization to organization and also from department to department. In certain firms, the person in charge could be an accountant or a secretary, while in some places there is a central office that manages the administrative affairs of the entire company. The head of such a department is called the Office manager or Administration manager. The role of this person is specialized and involves the knowledge of economic use of office resources like stationery, equipment (like copiers, fax machines, telephones) and people. There are many other people involved in the office management job, below are a list of some of the titles: • • • • • • •

Administration Executive Office Secretary Dispatch in-charge Executive secretary Facilities manager Typist Front-office executive / Receptionist The job description of each of the above titles is explained in the following sections.

Self-Check Questions Answer True or False 1. ‘Administration and Management’ mainly deals with the day-to-day functioning of an organization 2. Office management comprises of the following functions – receiving information and sending information. 3. The Accountant is responsible for administration.

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Activities in Office management There are various activities involved in the office management function and most of these help in the smooth functioning of the office and ensure a healthy and positive work environment. Some of the functions are also aimed at making the jobs of chief executives and senior managers effective.

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Advising and assisting the managers in planning clerical work involving equipment, office supplies, work-space allocation and layout. Scrutinizing all the procedures followed in the office, forms and stationery associated with various procedures. General office service functions include the following activities and these are performed by the office management staff. Opening and distribution of incoming mail; collection and dispatch of outgoing mail Carrying internal memos and messages; Assist with telephone calls Taking notes and minutes of meeting Typing out information either on a type-writer or a computer using a word processor Reviewing office machinery with a view to its maintenance and proper functioning, if any of the machines are not working properly the office management staff has to report the defect and call the service engineers to repair the equipment. Organizing office functions and events: office assistants play the vital role of being the event managers for many of the functions that happen in the office. Organizing skills are very important for office assistants. Assisting the HR manager: the office management staff helps the HR manager in preparing appointment letters, making arrangements for new employees and also ensuring the welfare of staff. In the software industry, the Administrative staff takes care of transportation for the employees. In the BPO industry many of the employees work in the night shift and hence they are provided pick and up and drop from their place of residence. In such cases, the administration staff handles the taxi operators also. Canteens: this is also the responsibility of the administration section. It has to make sure good quality food is provided to employees and the food supplier is managed by the administration department.

Key skills for an administrative assistant Key skills of an administrative assistant are:

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Verbal skills: The administration staff is required to articulate well and have fluency in English, Hindi and a local language of that region. Good writing skills: The ability to use proper grammar, syntax and logic when writing is crucial. Good organizational skills: He/she should be able to locate important information efficiently. One should be very organized and systematic. A good work ethic: Showing up on time and staying until the work is complete is one of the most important requirements from an administrative assistant. Team-playing skills: The person should share relevant information with other members in the team and also help in making improvements.

Self-Check Questions 4. The key skills required by an administrative assistant are ______________ , __________ , __________, ______________ and ________________.

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Various Job titles in Office Management and their Descriptions Administration Executive This person is in charge of over all administration activities. These activities deal with the day to day running of the business, some of these are mentioned below. It is important to note that these activities can vary across organizations depending on the size, nature of business.

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Maintain expenses on travel, rent, repairs, etc. House keeping, including cleanliness of the office premises and surroundings Interaction with suppliers and external agencies like security services, government departments etc. Liaison with transport providers for taxis and buses Follow-up on payments to vendors Office security Arrangement of meeting rooms Typist / Data entry operator This person is responsible for preparing documents like letters, memos, enter data into a software etc. Key skills could be:

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Typing speed of about 60 to 70 words per minute Proficiency in using computers and word-processing tools like MS Word. Ability to use MS Office products Report generation: this person will also be responsible for generating, managing, formatting reports and giving them final touch, before presenting them to the management. Receptionist / Front office executive A front office executive is usually the face of an office as he/she would be literally the first person anyone entering the office would see. It is important that this person has a pleasing personality. Key skills for this job are:

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Good knowledge about the office and the employees in that section of the office

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Ability to handle the EPABX system Experience in handling telephone calls and directing calls appropriately Maintain outward and inward mails Liaison with visitors Upkeep of the reception area Co-ordinate booking of conference / meeting rooms, Cars etc. Adherence to group security policies for visitors Excellent communication skills (written and verbal) Excellent interpersonal skills and customer services Executive secretary An executive secretary is usually attached to a senior level person like a MD or CEO. This person is a key factor in the efficiency of the management and is usually a very important person in the organization. The job activities include:

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Assistance in maintaining the calendar i.e. appointments and meetings Planning conferences and scheduling travel arrangements Preparation of daily MIS Administrative assistance like telephone call handling Understanding priorities of the management Knowledge of important people that deal with the top management frequently Excellent communication skills and a pleasing personality Should have good hands of experience on MS Office and Shorthand Dispatch in-charge A dispatch in-charge takes care of all outgoing and incoming mails for an organization, his/her job responsibilities include:

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Inbound Retrievals from the airports, railways, ports etc. Liaison with the courier companies Management skills to manage a team of courier personnel and various office locations Delivery management - inbound load sorting, route planning. Data Management in terms of bill entries Communication with internal customers and external customers Facilities Manager The facilities manager is a senior person in the firm and is responsible for implementation of all facility related equipment, construction of room, electrical works, interiors and other related systems for new premises, maintenance of all facility management equipment and other related systems. Usually he will have a team of executives who take care of the above functions. It is important to note the functions of this person also:

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Efficient operation & maintenance of the Electro-mechanical equipment including the Building Maintenance System, Fire Detection & Protection systems, Plumbing, Raw water & waste water systems. Efficient Energy & Raw Water management Liaison with the electricity boards and other departments for approvals Preparation of annual maintenance budget and cost control Ensure compliance with all statutory requirements for employees and equipment Carry out a periodic safety audit, both internal and external to ensure that all electrical works are safe in all respects Prepare and maintain a data base on all expenditures such as operational expenses, power cost, diesel cost, repair and maintenance and other credit and debit notes

Self-Check Questions 5. Name the person who is in charge of the following activities: i. ii. iii. iv. v. vi.

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Planning conferences and scheduling travel arrangements. Data Management in terms of bill entries Efficient Energy & Raw Water management Maintain outward and inward mails Typing speed of about 60 to 70 words per minute Follow-up on payments to vendors

Summing Up In the effective day-to-day functioning of any organization, administration plays a key role. However, who in an organization will be responsible for administration depends on the organizational set up. In some organizations, the person in charge could be an accountant or a secretary, while in others, there is a central office that manages the administrative affairs of the entire company. An important point to be noted is that the administrative assistant is required to have certain key skills. For e.g. good writing skills, verbal skills, good organizational skills, team playing skills and a good work ethic. Some of the common job titles in office management are: Administrative Executive, Typist / Data Entry Operator, Receptionist / Front Office Executive, Executive Secretary, Dispatch in-charge and the Facilities Manager. The key roles and responsibilities of each job title differ according to the structure of the organization and the type of organization. In small firms, one person may be required to do multiple tasks that come under different job heads while in large organizations, there may be specialists for each of these job titles.

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Answers to Self-Check Questions

1. 2. 3. 4.

True False False Verbal skills, good writing skills, good organizational skills, good work ethics and team playing skills. 5. i. Executive Secretary ii. Dispatch In charge iii. Facilities Manager iv. Receptionist / Front office executive v. Typist / Data Entry Operator vi. Administration Executive

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Terminal Questions

1. Who is responsible for Office Management? 2. What are the various functions of a Receptionist and Dispatch-incharge? 3. Who is responsible for the following? a. Interaction with suppliers and external agencies like security services, government departments, etc. b. Management skills to manage a team of courier personnel and various office locations c. Generating, managing, formatting reports and giving them final touch, before presenting them to the management. d. Ensure compliance with all statutory requirements for employees and equipment. 4. What are the various activities involved in Office Management.

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