Course Code : AOM – 01

Course Title : Office Organisation and Management

Assignment Code : AOM - 01/TMA/2019-20

Attempt all the questions

1. What do you mean by open office? What are its merits and demerits?

2. What do you mean by correspondence? State the advantages and disadvantages of centralised
correspondence.

3. Distinguish between the following :

(a) Bias and error in data

(b) Internal and External Noise

(c) Hardware and Software

(d) Centralisation and Decentralisation of filing

4. Briefly comment on the following :

(a) Suggestion systems are used in many offices as a means to promote upward communication between the
employees and the management

(b) Standardisation is essential in the office

(c) The trend among business enterprises is to mechanise their efforts

(d) The purpose of Organisation and methods is to secure maximum efficiency expert application of scientific
methods of organization

5. Write short notes on the following :

(a) Organisational Manual

(b) Leasehold building for office accommodation

(c) Loose – Leaf index

(d) Departmental Mail Service

 A.O.M.-01
Office Organisation & Management

Attempt all the questions

1. What do you mean by open office? What are its merits and demerits?

SOLUTION

Open office is a place where the staff and equipment of all the departments are accommodated in a single
room. Each department or section or division of the office is allotted a specific space under the same roof.

An open office is often demarcated by counter high filing cabinets or shelves. One or more gangways
throughout the whole floor may be provided and desks may be arranged facing one way so as to
facilitate supervision and easy process. The modern tendency is the adoption of open office instead of private

office for different sections. Even though, the private office is provided to top executives and the persons who
are requiring privacy and concentration while performing their work.

ADVANTAGES OF AN OPEN OFFICE

An open office offers the following advantages
Economical: Open office makes better utilization of available space by avoiding unnecessary partitions and
corridors. It is experienced that nearly 30 to 35 percent of office space is taken up by walls and partitions. There
is a savings of rent and less cost of operation in an open office.
1. Effective Supervision: Both clerk and supervisor faces each other in an office. Therefore, there is a
possibility of better inspection, supervision and coordination of work.
2. Better Lighting and Ventilation: There is a free flow of natural light and air by eliminating unnecessary
partitions. It may help in better lighting and ventilation.
3. Better Communication: An open office facilitates interdepartmental transmission of information. A clerk
need not go to another room for consultation, advice or instruction.
4. Flexibility: There is a greater flexibility in the layout of an open office. It ensures effective placement of
office machines and equipment. Besides, when a need arises, a change in the office layout is effected without
much difficulty.
5. Joint Use of Equipment: Office equipment have been used by all the departments or sections. In this way,
the joint use of equipment ensures better and full utilization of equipment.
6. Smarter Look: The open office wears a better look. This better look creates better impression on the visitors.
7. Democracy: An open office is democratic because all grades of staff are placed in the single room.
8. Minimum Movement of Staff: Employees need not move from their place of work to know who is present
or absent. It is also convenient to the visitors of an office to identify the persons whom they want to contact.
9. Centralization: The open office facilitates centralization of filing, stationery and the like. The centralization
facilitates the promotion of efficiency and economy.

DISADVANTAGES OF OPEN OFFICE

Open office has the following disadvantages

1. Lack of Secrecy: Office staffs are performing their work without any privacy. Therefore, open office is not
suitable if the secrecy of work is required.
2. No Concentration: Accounting, statistical work and policy decision are some of the work which requires
concentration of mind. Besides, visitors of an office are also disturbed and movement of staff is also affected in
an open office.
3. Untidy Appearance: Many staff is working in a single roof with scattered files. It seems like an untidy
appearance. No effect will lead to good appearance in an open office.
 4. Low Morale: Apparent regimentation, no individuality, reduced sense of belongingness and loss of status to
senior staff are responsible for low morale among the office employees.
5. Impersonal Atmosphere: In an open office, every office employee feels little attachment to his place of
work. Senior staff may feel insulted when asked to sit in the same place.
6. Noisy: The efficiency of the staff may be affected by the noise of ringing telephones and clicking typewriters.
7. Unhealthy: A large open office is objected from health point of view. The infectious diseases are easily
passed on to anybody and there is insufficient ventilation are the main two frequent complaints against open
office. According to G Mills and O. Standing Ford, “Many people do not like working in an open office”.
2. What do you mean by correspondence? State the advantages and disadvantages of centralised
correspondence.

SOLUTION

Definition: A Correspondence is a written form of communication between two parties. In other words, it is
way to pass on ideas in writing.

Correspondence Mean in Business

Correspondence is a commonly used form of communication in business. In the past, correspondence was
mostly exchanged through written physical letters or telegraphs. In today’s world, the definition of
correspondence has expanded by the inclusion of digital media. E-mails, text messages, documents exchanged
through social platforms and digital agreements are new ways to deliver correspondence.

The formal element embedded into these written methods of communication makes them appropriate to
transmit important business information between businesses or from businesses to clients. Written letters, bills
and invoices are still sent physically sometimes but many companies are migrating their correspondence to
digital since it is cheaper and easier to track. Business correspondence also helps as evidence to solve
misunderstandings. By having a paper trail, any of the parties involved in a transaction can review the
previously stated information to ensure who misunderstood the situation. This is particularly important in
conflict resolution procedures or legal disputes.

UNDERSTANDING CENTRALIZED CORRESPONDENCE

A separate division or section or department is created for handling correspondence to the entire organization
under centralized correspondence. A separate person is appointed to organize and look after the work of the
correspondence department. The volume of correspondence is very large in large organization; hence, a
separate correspondence department is created and assigned to the qualified person. He exercises full control
on the department.

The correspondence department receives all letters, gathers the necessary information from various
departments, drafts, letters and replies, dictates letters dispatches them and follow up all letters. But at the
same time, personal secretary is dealing the letters of top executives of an organization. A correspondence
manual is prepared by the correspondence department for reference of all the departments.

ADVANTAGES OF CENTRALIZED CORRESPONDENCE

The centralized correspondence system offers the following advantages.

1. Specialization: The trained and experienced staffs handle the work of correspondence. It ensures speed
and accuracy in correspondence.
2. Economy: There is no duplication of work under centralized correspondence. Besides, the work has been
completed in a systematic way. It leads to saving of time and money. Mistakes and delays are also reduced.
3. Secrecy: The letters of confidential nature are routed unopened to the concerned officials.
4. Continuity: If all the correspondence with any customer is handled by the same staff member, the staff
acquires an intimate knowledge of the customers. Hence, customer enquires can be answered quickly and
better fol!ow – up of letters is possible.
5. Easy Training: The employees of correspondence section have been easily trained and the cost of
training can be reduced.
6. Specialization: The routine work of correspondence staff tends to increase the rate of output as well.
7. Mechanization: The production of correspondence is made by either typewriter or computer. Franking
machine is used for stamping the correspondence. Effective use of these devices helps to save clerical labour.
8. Avoids Congestion: A time schedule has been prepared and followed for receiving and dispatching of
mail. It avoids congestion of mail during the rush hour.
9. Concentration of Work: Departmental staffs are relieved from handling of mail work. They can devote
their full attention on the work.
10. Checking of Postage: Centralization ensures effective control over the use of postage stamps. It avoids
under stamping, over stamping and non – stamping.
DISADVANTAGES OF CENTRALIZED CORRESPONDENCE
 The disadvantages of centralized correspondence system are listed below.

1. Delay in Dispatching: The correspondence has been finalized only after final approval given by the
respective functional area managers. For which, the correspondence has been sent to various functional areas
and receives the same for dispatching. This process makes delay in dispatching.
2. Interruption of Work: The centralized correspondence section or department has collect information
from various departments before drafting a letter. The drafted letter was sent to various departments for
getting approval. This may dislocate the work of various departments.
3. Lack of Basic Knowledge: A centralized correspondence staff may lack adequate technical and
specialized knowledge of various functional departments. This may lead to inaccurate correspondence.
3. Distinguish between the following :

(a) Bias and error in data

SOLUTION

In survey research, error can be defined as any difference between the average values that were obtained
through a study and the true average values of the population being targeted. Simply put, error describes how
much the results of a study missed the mark, by encompassing all the flaws in a research study. Take for
example that your study showed 20% of people’s favourite ice cream is chocolate flavoured, but in actuality
chocolate is 25% of people’s favourite ice cream flavour. This difference could be from a whole range of
different biases and errors but the total level of error in your study would be 5%.

Whereas error makes up all flaws in a study’s results, bias refers only to error that is systematic in nature.
Research is bias when it is gathered in a way that makes the data’s value systematically different from the
true value of the population of interest. Survey research includes an incredible spectrum of different types of
bias, including researcher bias, survey bias, respondent bias, and nonresponse bias. Whether it is in the
selection process, the way questions are written, or the respondents’ desire to answer in a certain way, bias
can be found in almost any survey.

For example, including a question like “Do you drive recklessly?” in a public safety survey would create
systematic error and therefore be bias. The reason it is considered systematic is that many respondents would
answer the question falsely in one direction by selecting “No” even if they are a bad driver.
(b) Internal and External

Noise SOLUTION

External Noise:
External noise is defined as the type of Noise which is general externally due to communication system.
External Noise are analysed qualitatively. Now, External Noise may be classified as

a) Atmospheric Noise : Atmospheric Noise is also known as static noise which is the natural source of
disturbance caused by lightning, discharge in thunderstorm and the natural disturbances occurring in the nature.

b) Industrial Noise : Sources of Industrial noise are auto-mobiles, aircraft, ignition of electric motors and
switching gear. The main cause of Industrial noise is High voltage wires. These noises is generally produced by
the discharge present in the operations.

c) Extraterrestrial Noise : Extraterrestrial Noise exist on the basis of their originating source. They
are subdivided into
i) Solar Noise
ii) Cosmic Noise

Internal Noise:

Internal Noise are the type of Noise which are generated internally or within the Communication System or in
the receiver. They may be treated qualitatively and can also be reduced or minimized by the proper designing of
the system. Internal Noises are classified as

1) Shot Noise : These Noise are generally arises in the active devices due to the random behaviour of Charge
particles or carries. In case of electron tube, shot Noise is produces due to the random emission of electron
form cathodes.
2) Partition Noise : When a circuit is to divide in between two or more paths then the noise generated is known
as Partition noise. The reason for the generation is random fluctuation in the division.
3) Low- Frequency Noise : They are also known as FLICKER NOISE. These type of noise are generally
observed at a frequency range below few kHz. Power spectral density of these noise increases with the
decrease in frequency. That why the name is given Low- Frequency Noise.
 4) High- Frequency Noise : These noises are also known TRANSIT- TIME Noise. They are observed in the
semi-conductor devices when the transit time of a charge carrier while crossing a junction is compared with the
time period of that signal.
5) Thermal Noise : Thermal Noise are random and often referred as White Noise or Johnson Noise. Thermal
noise are generally observed in the resistor or the sensitive resistive components of a complex impedance due to
the random and rapid movement of molecules or atoms or electrons.
(c) Hardware and Software

SOLUTION

Computer hardware is any physical device used in or with your machine, whereas software is a collection
of code installed onto your computer's hard drive. For example, the computer monitor you are using to read this

text and the mouse you are using to navigate this web page are computer hardware. The Internet browser that
allowed you to visit this page and the operating system that the browser is running on are considered software

Further information and examples

All software utilizes at least one hardware device to operate. For example, a video game, which is software,
uses the computer processor (CPU), memory (RAM), hard drive, and video card to run. Word processing
software uses the computer processor, memory, and hard drive to create and save documents

Hardware is what makes a computer work. A CPU processes information and that information can be stored in
RAM or on a hard drive. A sound card provides sound to speakers, and a video card provides an image to
a monitor. Each of these are examples of hardware components.

(d) Centralisation and Decentralisation of

filing SOLUTION

Centralized Filing

A centralized filing system is:

 One in which the records for several people or units are located in one, central location; and,
 Generally, under the control of a records staff person or in the case of large centralized filing systems, several
people.
Decentralized filing

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

4. Briefly comment on the following :

(a) Suggestion systems are used in many offices as a means to promote upward communication between
the employees and the management

SOLUTION

Upward Communication is the process of information flowing from the lower levels of a hierarchy to the
upper levels. This type of communication is becoming more popular in organizations as traditional forms of
communication are becoming less popular. The more traditional organization types such as a hierarchy, places
people into separate ranks.

Upward communication helps employees to express their requirements, ideas, and feelings. For the top
management, upward communication is an important source of information for business decisions. It helps in
alerting top management about the requirement of changes in an organisations. Upward contribution is the core
contributor of business process reengineering in many organizations Upward communication is widely used as
part of whistleblowing policy in many large organisations. Under whistle blowing policy, each employee is
permitted to directly communicate with top management about matters requiring examination on vigilance
angle. Hence it is used as a fraud prevention tool as well.

Upward communication keeps managers aware of how employees feel about their jobs, policies and procedures,
and the business in general. It consists of methods like Feedback from employees, helps in bringing Mutual
Trust and helps the organization to determine, implement or decide upon new policies. It keeps the organization
updated or prone to upcoming challenges.

Upward communication is not free from disadvantages too. It suffers from problems like information can be
changed during transmission, unwillingness to participate, fear of inefficiency, bypassing and flattery too.
Sometimes top level executives discourage the upward flow of information and neglect the constructive
suggestions and opinions about the work related issues of the organization. It is a time taking process and is
comparatively slow too.
1. Development of plan: The information received from subordinate plays important role to help
development of planning of the organization.

2. Providing suggestions and opinions: By upward communication system, subordinate takes necessary
suggestions and opinions from superiors about the work-related issues of the organization.

3. Motivating to employees: Upward communication system allows lower level staff to express their attitude
or opinion to upper-level staff. As a result, sub-ordinates are influenced to work more towards fulfillment
to target.

4. Providing constructive suggestion: All employees are supplied with constructive and important messages
that can help to implement the goals or objectives.

5. Good labor-management relationship: Upward communication I participative in nature. Here,

information is invited from lower level executives and employees and on the basis of this information top
executive makes a decision. So, good relation between subordinates and bosses should create for the
betterment of the organization.

6. Providing feedback: The subordinate’s reaction is returned to the superior in this communication system.
So, top level management can decide what to do and what not do clearly understand and followed.

7. Creating favorable environment: Upward communication helps to develop a favorable working situation
in an organization by creating a good relation among all employees.

8. Promote harmony: Upward communication creates a friendly environment in the organization which
leads to a peaceful and harmonious relationship among the subordinates and superiors

9. Decision making: Top level executives or superiors needed much information before taking a decision on a
particular issue. Subordinates supply this information through the help of upward communication.

10. Developing creative and innovative ideas: Upward communication facilitates easy excess of the
employees or subordinate to the superiors in providing necessary constructive suggestions and opinions
about the work-related issues of the organization.

(b) Standardisation is essential in the

office SOLUTION
Objects of Standardization in Office:
There can be many objects of standardisation in the office—the end point of which can be efficiency and
economy

The major objects of standardisation in the office can be summarised as:

1. Maintenance of Equipment and Machines:
Standardisation ensures economic use of costly equipment and machines. Consequently, the maintenance cost
would be lower because to maintain machines of the same kind, spares and the services contract can be cheaper.

2. Lower Cost of Training:

The overall cost of the training are bound to be low since the material, equipment’s, supplies, and machines are
standardised. This also ensures interchangeability of staff to meet the peak load requirement.

3. Economy in Purchases:
Another objective of standardizations is to have an economy in purchase of supplier, furniture, equipment and
machines. Buying in large quantities can result in lower purchase price.

4. Fixation of Performance Standards:

Standardisation is necessary to fix performance standard

(c) The trend among business enterprises is to mechanise their

efforts SOLUTION

An environmental enterprise is an environmentally friendly/compatible business. Specifically, an

environmental enterprise is a business that produces value in the same manner which an ecosystem does, neither
producing waste nor consuming unsustainable resources. In addition, an environmental enterprise rather finds
alternative ways to produce one's products instead of taking advantage of animals for the sake of human profits.
To be closer to the goal of being an environmentally friendly company, some environmental enterprises invest
their money to develop or improve their technologies which are also environmentally friendly. In addition,
environmental enterprises usually try to reduce global warming, so some companies use materials that are
environmentally friendly to build their stores. They also set in place regulations that are environmentally
friendly. All these efforts of the environmental enterprises can bring positive effects both for nature and people.
The concept is rooted in the well-enumerated theories of natural capital, the eco-economy and cradle to cradle
design. Examples of environmental enterprise would be Seventh Generation, Inc., and Whole Foods.

(d) The purpose of Organisation and methods is to secure maximum efficiency expert application of
scientific methods of organization

SOLUTION

(a) On the whole, application of O & M technique leads to the improvement of the methods of operations, the
organisation as a whole and its administration.

(b) Particularly there are the benefits of work simplification, belter communication, more effective control,
prevention and reduction of faulty steps, etc.

(c) There can be introduction of new techniques of operations as well as new equipment resulting into higher
productivity.

(d) There is general improvement of the staff as more care is taken in selection and training.

(e) Work measurement and job evaluation become more practicable which is beneficial for the staff because the
rates of remuneration, promotion etc. depend on it.

(f) There is greater security as many kinds of wastage, fraud etc., are detected and prevented.

(g) Finally, there is cost reduction and enhancement of prestige of the organisation.

5. Write short notes on the following :

(a) Organisational Manual

SOLUTION

Meaning:
An organizational manual provides and supplements additional details to the information supplied by
organization chart. It provides information on pertinent matters about each position. The members of
organization will find it to be a readily available reference defining the scope of authorities and responsibilities
of management positions and the channels to be used in obtaining decisions or approvals of proposals. Every
manager will see clearly the responsibilities of his job and his relationship with other persons in the
organization. The complex relationship in the organization is clearly understood. An organizational manual
also provides uniformity and consistency in the procedures and practices. It provides detailed procedures for
providing training to new employees and refresher courses to others. The manuals are periodically reviewed and
changed whenever major policies are changed or there is a need for such action. Manuals also help in delegation
of authority and management by exception.

(b) Leasehold building for office

accommodation SOLUTION

Leasehold is an accounting term for an asset being leased. The asset is typically property such as a building or
space in a building. The lessee contracts with the lessor for the right to use the property in exchange for a series
of scheduled payments over the term of the lease.

After a lease agreement has been finalized, the lessee, or tenant, begins to build out the space for its purposes to
the extent allowed by the contract. Work on walls, ceilings, floor space, lighting fixtures, additional plumbing
fixtures, shelving, and cabinets represent leasehold improvements that are recorded as fixed assets on a
company's balance sheet. The lessee amortizes leasehold improvements over the life of the initial lease term or
estimated useful life, whichever is shorter, if the number of leasehold improvements exceeds $50,000, the
threshold of capitalization. (Improvements of $50,000 and less are expensed, while improvements of over
$50,000 are capitalized according to standard accounting rules.) At the expiration of the lease, the leasehold
improvements belong to the lessor

(c) Loose – Leaf index

SOLUTION

"Loose leaf" describes any kind of paper or book that is available in single sheets, unbound. Its "leaves", or
sheets, are "loose" and not bound in notebook or book form. However, it seems "loose leaf" in the USA (and
this entry) refers most specifically to a lined and punched paper, or ruled paper, a school supply also known as
"binder paper" that can be sorted in a loose leaf binder. This may be a typical 3 ring binder but "loose leaves" of
other types can also go in a date book, address book or artist's portfolio, additionally there are also loose leaf
textbooks.

There are three common types of binder paper: wide ruled, college ruled, and unruled. College ruled paper has
less space between the blue lines, allowing for more rows of writing. Wide ruled paper is intended for use by
grade school children and those with larger handwriting

(d) Departmental Mail

Service SOLUTION

Postal services is the cheapest mode of communication. India postal services have been growing over the years.
The country is at present maintaining the largest network of post offices in the world with its total number of
1.55 lakh at the end of March, 2008, of which more than 1.39 lakh are in rural areas, which ranks first in the
world. At present, a post office covered on an average area of 21.16 sq km and a population of 6,623

The long term objective is to locate a post office within 3 km of every village. During the Eighth Plan (1992-
97), the Postal Department opened 500 Departmental sub-offices and 3000 extra-Departmental Branch Offices.
The main thrust areas in the Eighth Plan were computerization and associated networks for electronic mail,
money transfer, mechanical sorting, quality stamps and seals. During the Eighth Five Year Plan, 1546 extra
departmental post offices and 466 departmental sub post offices have been opened. The Department of Post is
accelerating its efforts to extend basic postal facilities on a contractual basis by utilizing the existing
infrastructure of Panchayats in these areas. On 1st August 1986, the Postal Department introduced “Speed
Post” services from 6 centres and later on the service has been extended to many centres. The speed post service
has proved its efficiency both in respect of its quality service and earnings.