TUTOR MARKED ASSIGNMENT

Course Code : AOM -01

Course Title : Office Organisation and Management
Assignment Code : AOM -01/TMA/2018-19
Coverage : All Blocks

Maximum Marks: 100

Attempt all the questions.

1. What do you understand by vertical filing? Outline the merits and demerits of vertical filing.
(20)

2. What is a ‘Franking machine’? Briefly explain its working and advantages. (20)

3. Differentiate between of the following:

(a) System software and Application software
(b) Commerce and E-commerce
(c) Management and Administration
(d) Horizontal Filing and Vertical Filing (4X5)

4. Briefly comment of the following:

(a) By storing the information in the computer, paper work in the offices may be reduced.
(b) Centralized filing ensures more efficient office service than departmental filing.
(c) Index can serve as a complete record of customers and suppliers.
(d) All office activities are of routine nature. (4X5)

5. .Write short notes on any four of the following:

(a) Pension and Retirement Benefits
(b) Electronic Fund Transfer (EFT)
(c) Office Layout
(d) Communication Machines (4X5)
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AOM -01
Office Organisation and Management
1. What do you understand by vertical filing? Outline the merits and demerits of vertical filing. (20)
Ans.Vertical filing - Vertical filing indicates the vertical position of the files. The files are kept in a
standing position under this method. Vertical filing method is developed to overcome the difficulties of
horizontal filing. In large scale organization, more papers are filed and there is a need of referring many
papers. Hence, there is a possibility of time consuming in locating the papers. Time is valuable. The
desired file should be referred without much difficulty but in lesser time. Usually, drawers or cabinets
are used so that any folder may be withdrawn or replaced without disturbing the other folder.

In a vertical filing system, folders can be arranged in the open shelf order commonly found in libraries.
The open shelf order is particularly useful if your office stores large volumes of files and folders.
Cabinets for this type of vertical filing are very affordable. You arrange files and folders vertically in racks
in the open shelf system. There is enough space in between racks to allow for free movement of hands
when locating folders.

Parts of vertical filing - The equipment of vertical filing consists of two parts.

1. Folders: Folder is the basis for vertical filing. Manila sheet or some other material is used with flexible
substance. The folder is slightly higher than the front sheet. A brief description of the papers, letters or
documents is written on the extended edge of the folder. A separate folder is maintained for each
correspondent, customer or subject matter. The papers relating to a correspondent or a subject are kept
standing in chronological order or in other suitable order in the folder reserved for it. There is no using
of clip or holder for fastening any document, papers or letters. Hence, there is no difficulty to refer the
desired document or papers without disturbing others. In rare cases, clip may be used to keep the
papers fastened together.

2. Cabinets: Folders are kept vertically in a steel or wooden cabinet. There are several drawers in a
cabinet. The drawers are deep enough to hold the folders in a vertical position. Each drawer is fitted
with a slider. The slider pushes the drawer backward can be opened and closed. Guide cards can be
inserted at appropriate places in order to divide the drawer into convenient sections.

Merits/Advantages of Vertical Filing - The vertical method of filing offers the following advantages.

1. The files can be easily referred without much difficulty.

2. There is no disturbing of other papers or letters than desired.

3. Insertion or withdrawal of any papers or letters is done without much wastage of time and effort.

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4. The cost of folders is very cheap. Hence, the cost of maintenance is very less.

5. Nearly 1,000 folders can be accommodated in a single cabinet with four drawers.

6. Minimum space is required for keeping vertical filing.

7. There is much scope for the expansion of filing facility.

8. The drawers are locked after referring the desired files. Hence, the safety and security of file are
ensured.

9. Fire proof cabinets are used to protect the files.

10. Vertical filing has much flexibility. The folders can be arranged in any kind of classification –
alphabetically, numerically, subject wise and so on.

11. This system can be applied to file all types of papers and documents, orders, invoices, quotations,
tenders, circulars etc. are to be filed without much difficulty.

Demerits /Disadvantages of Vertical Filing

Vertical filing suffers from the following limitations.

1. The location of desired files requires much time.

2. The files may be wear and tear resulting from the slip down of folders.

2. What is a ‘Franking machine’? Briefly explain its working and advantages. (20)
Ans.The first franking machine was invented in 1884 as an answer to the problems which the post office
had been suffering for a long time with regards to security and a reliable system of payment. The
machine was called the “Postage Stamp Affixing Machine” and was invented by Norwegian, Engel Frank
Mussler…the “Frank” from “Franking Machine”. The Postage Stamp Affixing Machine was shown to the
world in Germany at the World's Fair. At the same time other inventors were working on similar
machines including Arthur Pitney in Chicago.

The Pitney Postal Machine Company was born in 1902 after Arthur Pitney applied for and gained a
patent for his invention. The company later became known as the American Postage Metre Company
and was in direct competition with the Franking Company of America.

These early franking machines worked manually with the aid of a crank and printing dies. They were

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susceptible to tampering and there have been constant improvements to franking machines over the
years. Today’s franking machines are of course digital and very difficult to tamper with.

The basic premise of franking machines is that they offer a method of pre-paying postage costs for mail
by way of remaining in contact electronically with the Royal Mail. Each franking machine is linked to a
business account and owners pay for postage costs in advance; when a letter needs posting, the user
sets the franking machine with the correct date and inserts the letter which is then franked with that
company’s individual franking impression. Today this is done with inkjet technology.

Franking machines come in a variety of sizes and capabilities to suit the needs of different businesses,
from basic models which are designed to cope with a small volume of letters to more sophisticated
models suitable for companies which send hundreds of letters per day. The Royal Mail offers a lot of
support to the owners of franking machines including advice on the successful running of the machine
and also generous discounts on postage costs.

Franking today has moved on and branched out considerably , not only can people benefit from franking
machines at home but innovations such as the label printing technology offered by Ebay, have allowed
people to frank mail without a franking machine. The technology used by Ebay which allows users to pay
for postage online and then print off a label for their parcels is powered by Pitney Bowes and is a good
example of how far franking has come over the centuries.

Working and Advantages - Franking Machines reduce postage costs for your company with up to 33%
reductions on standard stamp postage rates, a major advantage when considering an installation for
your mailing room. Neopost, the global leader in mailing equipment and software for businesses,
provides a wide range of letter metering machines for businesses of all sizes.

Consult a Neopost specialist for a tailor-made solution for your mailing room, from home office to
robust, high volume solutions capable of metering 5000 items per day, our designs aim to meet the
mailing requirements of each customer. Discover more about the features of Neopost metering
machines, the ergonomic, easy-to-use navigation tools allow operators optimal mailing action.

With affordable leasing options and privileged rates for metering, our postal metering machines offer a
cost effective solution for your mailing room. You can opt for automated metering, monitoring and
tracking of postal expenditure, manage multiple accounts online…

A successful business requires speed, efficiency, and productivity. Business owners should be in a
constant state of improvement, refining process and optimizing operations. Part of that strategy
certainly includes mailroom operations, and a postage meter may be a central component of this
improvement. Here are ten good reasons businesses should use a postage meter.

1. Convenience

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It’s like having a dedicated mailroom in your office. Metered mail ensures a hassle-free process,
eliminating trips to the post office and wasted postage due to uncertainty over rates.

2. Out The Door Faster

Applying stamps to a huge stack of envelopes is a tedious process. With a postage meter, envelopes are
stamped quickly and easily.

3. Online Postage Refills

Replenish your postage supply 24/7, avoiding time-consuming trips to the post office.

4. Savings
Save money using a Neopost franking machine and scale with up-to-date rates. With an integrated
digital scale for precision weighing, a postage meter enables you to print the exact denomination —
instead of using multiple stamps.

5. Increased Security
Eliminating physical stamp inventories means you’ll never have to worry about lost or damaged stamps.
Your postage dollars are safe-and-sound in your lockable meter, as opposed to a cluttered desk drawer.

6. Cost Accounting
A built-in cost accounting feature can accurately track postage expenditures for multiple accounts. This
shows you where postage dollars are being spent, for easier budgeting and reconciliation.

7. Package Compatibility
Self-adhesive metered tapes are ideal for larger items such as packages, large flat envelopes and tubes.
This looks cleaner and more professional than wallpapering an item with stamps, in addition to enabling
you to apply the exact postage needed.

8. Faster Delivery
Metered mail is expedited as high-priority business mail. It’s already dated, postmarked, and cancelled
when it arrives at the post office, so it requires fewer steps in the handling process. That means quicker
results for your important correspondence...for the same dollar you’re spending now!

9. Enhancing Your Image

Metered mail makes a statement about your company. Small businesses can appear larger and more
prominent. And after all, your envelope is often the first impression you make on the customer.

10. Free Advertising

With its ability to print a logo, advertisement or even a product image, a postage meter can turn your
envelope into a mini-billboard. This is important since envelope marketing has been proven to enhance
openability and readership, while improving response rates.

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3. Differentiate between of the following:

(a) System software and Application software
Ans.System software is general purpose software which is used to operate computer hardware. It
provides platform to run application softwares.

Application software is specific purpose software which is used by user for performing specific task.

Difference between System Software and Application Software-

1. System software is used for operating computer hardware. Application software is used by
user to perform specific task.
2. System softwares are installed on the computer when operating system is installed.
Application softwares are installed according to user’s requirements.
3. In general, the user does not interact with system software because it works in the background.
In general, the user interacts with application softwares.
4. System software can run independently. It provides platform for running application softwares.
Application software can’t run independently. They can’t run without the presence of system
software.
5. Some examples of system softwares are compiler, assembler, debugger, driver, etc. Some
examples of application softwares are word processor, web browser, media player, etc.

(b) Traditional commerce and e-commerce

Ans.The points are noteworthy so far as the difference between traditional commerce and e-commerce
is concerned:

● A part of business, that focuses on the exchange of products and services, and includes all those
activities which encourage exchange, in some way or the other, is called traditional commerce.
e-Commerce means carrying out commercial transactions or exchange of information,
electronically on the internet.

● In traditional commerce, the transactions are processed manually whereas, in the case of e-
commerce, there is automatic processing of transactions.

● In traditional commerce, the exchange of goods and services, for money can take place, only
during working hours. On the other hand, in e-commerce, the buying and selling of goods can
occur anytime.

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● One of the major drawbacks of e-commerce is that the customers cannot physically inspect the
goods before purchase, however, if customers do not like the goods after delivery they can
return it within the stipulated time. Conversely, in traditional commerce physical inspection of
goods is possible.

● In traditional commerce, the interaction between buyers and sellers is direct, i.e. face to face. As
against this, there is indirect customer interaction, in the case of e-commerce, because it may
be possible that the customer is miles away from where they place an order for the purchase of
goods.

● The scope of business in traditional commerce is limited to a particular area, i.e. the reach of
business is limited to the nearby places where it operates. On the contrary, the business has
worldwide reach in case of e-commerce, due to its ease of access.

● As there is no fixed platform for information exchange in traditional commerce, the business has
to rely on the intermediaries for information fully. Unlike e-Commerce, wherein there is a
universal platform for information exchange, i.e. electronic communication channel, which
lessen the dependency on persons for information.

● Traditional commerce is concerned with the supply side. In contrast, the resource focus of e-
commerce is the demand side.

● In traditional commerce, the business relationship is vertical or linear, while in the case of e-
commerce there is directness in command leading to a horizontal business relationship.

● In traditional commerce, due to standardisation, there is mass/one way marketing. However,

customization exists in e-commerce leading to one to one marketing.

● Payment for transactions can be done by paying cash, cheque or via credit card. On the other
hand, payment in e-commerce transactions can be done through online payment modes like
credit card, fund transfer, etc.

● The delivery of goods is immediate in traditional commerce but in the case of e-commerce, the
goods are delivered at the customer’s place, after some time, usually within a week.

c) Management and Administration

Ans.The difference between management and administration are -

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Management is a systematic way of managing people and things within the organization. The
administration is defined as an act of administering the whole organization by a group of people.

Management is an activity of business and functional level, whereas Administration is a high-level

activity.

While management focuses on policy implementation, policy formulation is performed by the

administration.

Functions of administration include legislation and determination. Conversely, functions of management

are executive and governing.
.
Administration takes all the important decisions of the organization while management makes decisions
under the boundaries set by the administration.

A group of persons, who are employees of the organization is collectively known as management. On
the other hand, administration represents the owners of the organization.

Management can be seen in the profit making organization like business enterprises. Conversely, the
Administration is found in government and military offices, clubs, hospitals, religious organizations and
all the non-profit making enterprises.

Management is all about plans and actions, but the administration is concerned with framing policies
and setting objectives.

Management plays an executive role in the organization. Unlike administration, whose role is decisive in
nature.

The manager looks after the management of the organization, whereas administrator is responsible for
the administration of the organization.

Management focuses on managing people and their work. On the other hand, administration focuses on
making the best possible utilization of the organization’s resources.

(d) Horizontal Filing and Vertical Filing (4X5)

Ans.Horizontal filing -

1. The files are kept one above the other on the table or racks or shelves.

2. No special equipment is neces-sary as ordinary furniture are enough.

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3. Folders are not generally kept’ by this method.

4. Top files have to be removed to get a bottom file.

5. Generally files are kept on racks or shelves with the limit of capacity.

6. The racks or shelves are not always secured. Of course, locked almirah may be used.

7. The equipment is not costly.

8. Handling of file is very easy and simple.

9. More space is required for accommodating the racks and almirahs.

10. Files or papers of any big size can be kept by this method.

Vertical:-
1. The files are kept back to back either hanging or suspended inside a drawer of a filing cabinet, with
the joining end of a file on the top or at the bottom.

2. Special equipment like a filing cabinet is necessary.

3. Files as well as folders arc kept by this method and folders are preferable.

4. No such disadvantage as the files are kept one behind the other.

5. There is great elasticity as larger number of files can be squeezed inside a drawer.

6. The files are well secured as the drawers can be locked.

7. The equipment is costly.

8. Handling of the equipment needs some training.

9. Less space is required because one filing cabinet can hold many files,

10. Files and folders of standard size only can be accommo-dated.

4. Briefly comment of the following:

(a) By storing the information in the computer, paper work in the offices may be reduced.

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Ans.By storing the information in the computer, paper work in the offices may be reduced. As It's a
digital world, and every business owner is inundated with finding another solution to streamline work,
and to take things ''to the cloud." Going paperless has many advantages for business owners. Even so,
there are risks that some business owners are wondering exactly what they should keep in a digital
space, and what should they relegate to old-fashioned paper methods.,

Keeping everything stored in a digital format, whether on computer drives, flash drives or in cloud-based
systems, is cheaper than printing and storing it on paper. This eliminates the cost of shredding services
for paperwork with sensitive information. Some businesses have entire rooms and storage units
devoted to archiving paper. Paperless systems eliminate this cost.

When everything is stored digitally, versus on paper in files, accessibility becomes quick and easy.
Employees, consumers and business owners have access to all data, contracts and consumer files with
just a few mouse clicks. This eliminates having to locate the file or form, which saves every one time.

Moving from paper to digital storage, particularly through cloud-based technology, keeping information
based on the internet has made it easier to have mobil employees. There is more flexibility to meet with
clients outside the office or to spend a day working from home. Employees can access all information
online, quickly and easily. Often, remote workers don't even work in the same city as the business
owner, which means a new pool of talent is available to employers, as well.

(b) Centralized filing ensures more efficient office service than departmental filing.
Ans.The records of all the departments of the business organization are maintained at one place i.e.
centralized filing system. The centralized filing records are controlled by a common index plan. For
which, a separate department is created i.e. known as filing department. All the files of the organization
are preserved by this department. The functional departments of an organization are relieved from the
headache of maintaining records. All files, filing equipment and filing staff are located in the filing
department.

The main advantages of centralized filing over departmental filing are as follows.

1. There is no duplication of filing arrangements. Therefore, cost of filing maintenance is very low.

2. There is better utilization of storage space.

3. Easy location of documents and records are possible. It saves time and human resources.

4. There is full utilization of storage space available.

5. Duplication of filling equipment is avoided at the maximum and required only few filing cabinets.

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6. It enables uniformity and standardization of the filing system and method.

7. It ensures easy location and delivery of required documents.

8. This system utilizes trained and qualified staff which leads to greater accuracy in the filing of records.

9. This system ensures greater output and efficient operation of every work throughout the office.

10. Supervision and control can be employed in a better way on transfer of records, their retrieval and
retention.

11. Records and documents are filed on subject wise basis.

(c) Index can serve as a complete record of customers and suppliers.

Ans.Indexing is how Magento transforms data such as products, categories, and so on, to improve the
performance of your web store. As data changes, the transformed data must be updated—or reindexed.
Magento has very sophisticated architecture that stores merchant data (including catalog data, prices,
users, stores, and so on) in many database tables. To optimize storefront performance, Magento
accumulates data into special tables using indexers.

IHS Markit Index Management service is an integrated data solution that provides a forecast of index
changes taking place in the near future. The dataset includes, but is not limited to, changes to the
constituents’ number of shares, free float, additions and deletions. Data is sourced directly from the
index providers and exchanges, and then checked and validated ahead of market open.

The overall index management solution reduces the risks and cost associated with changes in index
composition. It is delivered via an XML feed or can be accessed through our Enterprise Data
Management (EDM) platform. Our EDM software provides a referenced data model for quick client
deployment.

Key benefits:

Cost effective – Increase coverage without additional cost and IT development

Data integrity – Ensure accurate compositions, validated through a calculation engine, with a
comprehensive system of quality controls
Simplicity – Reduce complexity with index data from multiple sources in a unified XML feed
Extensive coverage – Capture the continuously growing universe of global equity indices with daily
updates

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(d) All office activities are of routine nature. (4X5)

Ans.an office may be defined as a place where all the activities concerned with collecting, processing,
storing and distributing information for efficient and effective management of an organisation are
carried out. In every modern organisation, be it a business concern or a Government department, there
has to be an office. It is essential for the efficient management of the organisation.

Office administration is a set of day-to-day activities that are related to financial planning, record
keeping & billing, personnel, physical distribution and logistics, within an organization. An employee that
undertakes these activities is commonly called an office administrator or office manager, and plays a key
role in any organizations infrastructure, regardless of the scale. Many administrative positions require
the candidate to have an advanced skill set in the software applications Microsoft Word, Excel and
Access. All activities of office are routine in nature. They have to be carried out continuously.

5. .Write short notes on any four of the following:

(a) Pension and retirement benefits
Ans.Retirement and pension benefits are provided to retired government officials to ensure a regular
income and a secure future. The provision of such financial benefits results in a feeling of independence
and a decent standard of life. As far as retirement benefits are concerned, they usually consist of leave
encashment, retirement gratuity and contributed provident fund.

Along with these retirement benefits, senior citizens are also entitled to pension benefits that allow
them to live a hassle free life after completion of their job tenure. Different types of pension available to
senior citizens are superannuation, retiring pension, voluntary retirement pension, compensation
pension, compassionate allowance, extraordinary pension and family pension.

Superannuation pension is meant for those government officials who retire at the age of 60 years.
Voluntary pension is awarded to those who wish to retire three months in advance after completing 20
years of service. Extraordinary pension is another pension scheme that is awarded to those government
employees who are disabled or the families of those employees who lose their lives during the tenure of
their job.

Dearness Allowance or DA is another benefit provided to senior citizens. The Government announces DA
rates twice a year. This allowance is added to the salary or pension of government employees. DA rates
are also applicable to senior citizens who have taken complete retirement. Those who go in for
reemployment are not eligible to avail dearness allowance. More details on Dearness Allowance:

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(b) Electronic Fund Transfer (EFT)

Ans.An electronic funds transfer (EFT) is a transaction that takes place over a computerized network,
either among accounts at the same bank or to different accounts at separate financial institutions.

HOW IT WORKS (EXAMPLE):

EFTs include direct-debit transactions, wire transfers, direct deposits, ATM withdrawals and online bill
pay services. Transactions are processed through the Automated Clearing House (ACH) network, the
secure transfer system of the Federal Reserve that connects all U.S. banks, credit unions and other
financial institutions.

For example, when you use your debit card to make a purchase at a store or online, the transaction is
processed using an EFT system. The transaction is very similar to an ATM withdrawal, with near-
instantaneous payment to the merchant and deduction from your checking account.

Direct deposit is another form of an electronic funds transfer. In this case, funds from your employer’s
bank account are transferred electronically to your bank account, with no need for paper-based
payment systems.

The increased use of EFTs for online bill payments, purchases and pay processes is leading to a paper-
free banking system, where a large number of invoices and payments take place over digital networks.
EFT systems play a large role in this future, with fast, secure transactions guaranteeing a seamless
transfer of funds within institutions or across banking networks.

EFT transactions, also known as an online transaction or PIN-debit transaction, also offer an alternative
to signature debit transactions, which take place through one of the major credit card processing
systems, such as Visa, MasterCard or Discover, and can cost as much as 3% of the total purchase price.
EFT processing, on the other hand, only charges an average of 1% for debit card transactions.

(c) Office Layout

Ans.When a management decides to establish an office, it has to carefully define its plan for systematic
and scientific segmentation of various departments and equipment for the office.

HomeManagementOffice ManagementOffice layout | Meaning | Objectives | Advantages | Types

Table of Contents [show]

Introduction to Office Layout

When a management decides to establish an office, it has to carefully define its plan for systematic and
scientific segmentation of various departments and equipment for the office.

The reason is that the systematic arrangement of office equipment leads to availing of maximum benefit

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from the space available. The office layout is based on the principle of division of labor. If the principle
of division of labor is applied, every job of an office can be divided into many sections. All the sections
may not be possible to accommodate in one room or on the same floor. Hence, office layout ensures
fully utilization of office space and the efficiency of operation is high.

Office layout meaning objectivesImage: Office Layout Meaning, Definition, Objectives

Meaning of Office Layout

Office layout means the systematic arrangement of office equipment, machines and furniture and
providing adequate space to office personnel for regular performance of work with efficiency.

Definition of Office Layout

According to Littlefield,

“Office layout is the arrangement of equipment within the available floor space”.

According to Hicks and Place,

“The problem of layout relates to the arrangement in the space involved so that all the equipment,
supplies, procedures and personnel can function at maximum efficiency”.

Therefore, the main task of office manager is the proper allocation of space to each section by
considering the interlinking of other sections, so that the activities of different sections can be
coordinated and controlled easily. Faulty or improper arrangement of furniture, equipment and space
for employees leads to unnecessary wastage of time and energy and increase in the cost of office
operations.

Objectives of Office Layout

The main objectives of office layout are as follows

1. Effective utilization of available floor space and smooth flow of work.

2. Both power and telephone service is made available whenever necessary.

3. Office supervision is made more easy and convenient.

4. Good working conditions should be provided to each employee

5. The reception room should be very near to the main gate or entrance so that the visitors may feel
easy and convenient.

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6. A sense of belonging and loyalty should be made in the minds of office employees.

7. Employee’s satisfaction should be the outcome of proper office layout.

8. There should be a free flow of communication among employees.

9. All the sections can not work independently. Hence, the office layout ensues the interlinking of each
sections according to their needs.

10. There must be an adequate space between desks, tables and chairs for free movement of
employees.

11. Noise and disturbing operations should be segregated within the office.

12. Some sections require privacy. The sections may be interview section and inquiry section. Interview
section is dealing with recruitment of staff and inquiry section is dealing with progress and performance
of the existing staff.

13. Frequent mutual consultation and interference between clerks should be avoided.

(d) Communication Machines

Ans.Machine to machine (commonly abbreviated as M2M) refers to direct communication between
devices using any communications channel, including wired and wireless. Machine to machine
communication can include industrial instrumentation, enabling a sensor or meter to communicate the
data it records (such as temperature, inventory level, etc.) to application software that can use it (for
example, adjusting an industrial process based on temperature or placing orders to replenish inventory).
Such communication was originally accomplished by having a remote network of machines relay
information back to a central hub for analysis, which would then be rerouted into a system like a
personal computer.

More recent machine to machine communication has changed into a system of networks that transmits
data to personal appliances. The expansion of IP networks around the world has made machine to
machine communication quicker and easier while using less power. These networks also allow new
business opportunities for consumers and suppliers.

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