I""' THE EFFECTS OF TECHNOLOGY ON OFFICE ADMINISTRATION, 1965-1993 An Honol"s Thesi S by Chris A. Mac:klin r Thesis Advisor Jac:queline De Voe Ball State University Munc: ie, I nd i ana May 7, 1993 Graduation Date: July 24, 1993 .. ·.,. )J Purpose of Thesis This discussion of office administration will focus on the effects of technology. Specifically, it will cover the time period of approximately the last twenty-eight years. In this time frame, the effects which technology has had on the duties of office workers and managers will be studied. From this paper, one will gain some type of incite into how office management has developed and evolved into the complex occupation it is today. 1 In simply 1966, John as "to and direction He went on management to a business to break this down in to and leading Of course, the size of individual organizations vary thus, so does the responsibilities of their office managers. For instance, it to function of organizing, planning, controlling, four functions: (Neuner 4). defined the provide leadership (Neuner 3). organization and Neuner be was commonplace for the combined with though, due to the duties of the that of office manager. impact of automation and new office administration the position of controller manager became of work rather than more Eventually technology, the focused on the the completion of it (Neuner 6). Beginning in the mid-1960's, office practices through a new phase of technology. of change for office This was not practices though. done more quickly, more more economically. were such inventions registers, and as adding activities needed to added to had to be hired to perform th~ be job It allowed work to attractively, and the typewriter and calculating machines, cash The use of these machines quicker, but they and new also generated new opportunities. More this added volume of work. duties of the office manager in two ways. ~dept at using changes invention of and bookkeeping machines. methods got work done business accurately, more Following the the first phase The impacting started with the invention of the typewriter. be began going these new inventions so people This First, he that he could 2 train, guide, and supervise those employees using the machines. Second, greatly the amount of people which he oversaw had been For this reason, managers saw fit to delegate expanded. some of their powers and responsibilities to another person, thus creating the position of assistant manager (Neuner 21-22). The bu~iness practice phase of the the cycle of "office automation". "the entire field of or self-moving." Automation has been defined as investigation, methods of rendering or mid-1960's can be called design, development, and making processes or machines self-acting Therefore, in the office, automation refers to those self-regulating processes in which work is completed with a minimum of human close effort. to fitting Automated the definition data processing comes of office very automation. It is dependent upon the recording of original data in such a form that further use can subsequent be made of the data manual recording. for automatic, it Unfortunately, it demands outside interruption of the processes. force, the without the direction Man must still be but once the machines need for any is not and frequent the directing have been programmed activities, they can do so truly to carry out more quickly, more economically, and more accurately than by manual methods (Neuner 22). The popular system of the which used the Hallerith rectangUlar holes punched Code, used cards system, hand Codes. in cards. with round or 1960's was the tabulating The Another hole punches. typewritten code original consisted code, the In this source system of Powers tabulating documents are 3 converted to these punched cards. was called input and the The data on the source cards punch cards were called input media. The processed data was known as output and the forms on which the processed data appeared was called the output media. speci al attilchment, the el ectr' i c calculating machine, cash teletypewriter as register, could communicate common-languag~ procedure, such machi nes m~d'~-pun=h~d known bookkeeping with one as integrated data typewr iter, machine, another by Th'~ cards. By usinQ a data processing, and means of proc •• sing allowed data processing to be done automatically once the source documents had been prepared manually (Administrative Services 47). Electronic data processing was the most recent adaptation in the mid-1960's of invention and use of electroniC retrieve cal c~ll ate and el ectroni c comp~lter upon a code This was data processing. data computers. with system, I i ke the or machine language. with instructions for its processing, out rapidly ilnd b~lsiness 5,000 written out of docLlments and were computer could speed. The numeric data had to This coded data, along were fed into the computer All instructions the computer reports (Martin electr'onic computers the tabul ati ng system, depended cards. and stored as electrical impulses. The superhuman Alpha snd be transformed into code on punch done through in use 52). by are carried on punch cards In 1965, about 650 or nearly of the largest corporations representing every major industry. These cc)mp~lters were being used to quicken such activities as accounting, inventory control, and the planning and control of 4 But according to a survey by the American Management operations. Association, they were used even more as a tool of management. So, just what were the effects of this new management tool? The first number of effect was supervisory jobs was expected to workers. an anticipated available. cause a Obviously, declining rate of clerical would need a Second, the content of the office with the use of the computer. the accountants to branch out into such more technical and growth for number of workers smaller number of supervisors. financial analysis. in the This was logical since the computer a smaller manager's job changed decrease This caused Jobs as systems work and Therefore, the office management jobs became highly structured. In other instances, the super vi 51 on of several departments were con sol i dated i 11to one job (Martin 34-35). Many people adaptation become felt, of computers routine, at this time, would cause downgraded, that the increasing office management and eventually jobs to obsolete. Fortunately, for managcl!rs, there are two r"easons why thill did not. happen. First, the decisions made by office managers involve too many intangibles and too much abstract thinking to problems to mechanical analysis. subject the Of course, the use of computers eased the jobs of the office manager. Rather than spending hours d~t~, d~t. t~. @ffiaD 'n • m.tt§F Judgement m~"~~.F ~f required g@Yld §.condu. of office dealing with a huge quantity §'m~ly f~FmYl~t. ~"d a~!gYl~t. t~. Instead of reducing the managers, the of degree of increased use of 5 compLlter oper"a"tions resulted in was even more little skill highly of computer factor. must structured. and judgement ladder, other While may have jobs requiring the data moved upward. some jobs requiring moved down the management compilation and interpretation The second reason is the cost The charges for' rentiil fee or depreciation on a computer be less than the compLlter pr,~duces. depreci ati on expense the work of eight not, an office manager position which dollar-valued amount of output which the For computer ex ampl e, if the of $120,000, Ulen it woul d employees with a wage of the cost is deemed has have to produce $15,000 a year. prohibitive to the a If installation of the computer (Neuner 28-30). In 1964, Donal R. surveyed - middle companies. Each of operating experience system. - 53 Shaul, a writer managers and these managers with their It was confirmed that top managers had at in least two electronic data eight years of processing as a result of installing an EDPS the job of office manager had become more complex. In fact, bOX of on the managers stated activities found that that they worked longer planning after the installation than they had before. the managers information to analyze in had a thirds of the managers amount of time which of controlling. greatly increased greater depth and that they personal experience and Judgement - 14 for Personnel magazine, in this analysis. agreed that the computer had they were reqired to spend He also volume of used more About two- reduced the on the function This freed up more time for other activities and 7 As §f HI§ the decade of the 1970's occurr.d, pwopl. bWOAn to think §ff i fiElf: e§W§t: HIE' J11 a~jE' WI1€'f'E' J1a~€'rw§r'/; Was BElfl€'; § €I It wa. as the information or nerve center of the company. this time period that companies the computer in the office durln~ made even wider applications and increased integration machines with the computer to perform office work. !'I1ff: of of other Each of these machines shared something in common with the othersl that is thwy all performed one or more related processing machine systems was born. the for processing Eventually, the concept of a family of information. where functions machines were used, information Thus, the office, the place became the information center (Johnson 8-10). Before we look need to examine at the effects of this these devices into wide use during the 1970's. word management. is to number-so and functions which we were coming First, there is the function of Word management is to teNt what data processing It is the electronic and/or storage, manipulation, and graphic new technology, images. output, and ultimate The primary end mechanical capture, disposition of teNt product is a hard copy output, usually paper. The most versatile and important tool for handling word te)(t is the processor. designed to simplify the production of repetitive typing capabilities. Its and providing main point information on removable storage were electric typewriters with Word processors are documents by eliminating extensive though is devices. storage text editing its ability to store Other similar devices capability and teHt 8 editing systems (Barcomb 51-53). Message systems became also in popular the 1970'5. Electronic mail systems are point-to-point conveyors of different types of information (depending upon the system reduced photocopying volume and expense, geographic independence, personnel. time-zone They can Computeri zed transparency, systems i ncl ude Another systems, and photographi(: access to Non-computerized images. and of It miniaturized, usually It systems, systems include conventional facsimiles. micrographics. display message destination oriented systems, audio systems, modern function was retrieval, improved complJter-based computerized facsimiles. videotex and be either computerized or non-computerized. teletypewriters, store-and-forward and They faster delivery of serve many purposes, including the followingl information, used). contains is the capture, hi gh-"resol clti on either textual graphic infcrmation and is stored either on paper or film. other filing popular retrieval and modern functions were electronic reminders and electronic calendars (Barcomb or Some and 103- 36) • The first two fold. major effect and better qualified workers. would be created those retiring, leaving openings changes was It was clear that in the future there would be a great need for both workers promoted, of these technological and ca~sed in three changing ways! the labor careers; by expansion; (l)people needed force temporarily, (2)numbers needed The demand to replace fired or for new and (3)numbers needed for emerging 9 jobs brought about by the Labor Department workers would use of technology. estimated be needed that over in 1985. In 1976. twenty the U.S. million That number office would be an increase of 34% from 1974 (Delgado 51-52). Besides the use of increase in the technology workers. These categoriesl also caused the need for for office skills; more (2)need were truly qualified for were office activ~ly seeking positions. qualified into three for specialty (3)need for decision-making abilities. 1970's, few individuals companies needed, the qualification needs can be separated (l)need skills; and number of workers In the midand even fewer Because of this, sometimes hired an underqualified individual who could only partially fulfill the requirements of the job. For eKample, companies that usually required 120 words per minute of shorthand began to accept people who could only do 80 words The same type of change was seen in the This loss in skills servic •• (O.lgado m§"t'~H§d A§ medical, §~rl'§r. of total production of office th§ n§§d for specSalty .kill. was al.o technology. with .p§ci.l keystroking Many employers began training in and legal aFeas. who had good typewriting rate requirements of typists. ~3-~4), brought about by this 'ndividu.l. affected the per minute. WOFd such aFe •• pFOC§.§'H~ to Beek ~. technlc~l. c§Ht§F§ hiF§d ths§§ skills, particularly those with a speed and good transcription high skills. Specialty personnel were needed in such areas as data processing, reprographics, recors management, and mailroom systems. Each of 10 those areas could be to the a highly complex and sophisticated new technology which was constantly being Job du~ introduced (Bikson 22). Three different types of new personnel were needed, all First, the system whom needed to understand this new technology. planner had to be an expert planning, and be able to train He must also be able to in the of field, be creative in others how to operate the system. work with users to determine their needs and be able to communicate with them about their output. Second, the operators had to have the skills to run the equipment and had to be accurate in providing the input. to produce work at troubleshooter was high rates They also of speed. needed to solve internal system, to overcome or had to be able Finally, the problems within the counteract human error, and to cope with complaints effectively (Sikson 23'. The ne~d for decision-making abilities was present office work was seldom a routine effort. decisions, some major and some minor. management skills so deadline. habits Each and priorities. had motion A worker had to have time- some training simplification as well as good work setting work In order to make these decisions, the office workers the work flowed, the need for completed by the in developing to understand the functions of the of the It involved making many that important tasks were needed because importance of accuracy, and team approach (Sikson b~tter office, the way in which 24'. supervisory skills. Also the philosophy brought about was Supervisors had the two basic 11 understanding .m needs: understal,d i ng of people. of With the work objectives these two and an factors, supervisors were able to meet the need of profit maximization and to find the means to keep employees productive. As the need for office workers increased and the supply grew smaller, the supervisor had to have a individual keen 'SI Finally, about. talent for balancing work demands with each abilities (Bikson 25). the need for updating Although technological the employees was brought advances continued to make office work easier in some respects, all machines were still operated by human beings and therefore, production levels. human skills continued to set Thus, it became necessary to produce more and better qualified office workers who had the skills to operate the newest technlology. (Wagoner 56). The office manager had many responsibilities in the business of the 1970's, ranging telecommunications from word and data processing to less formal and personal areas. and He had to deal with pCllitics in the office and time management of the human resources inl had to tak~ the office. He needed an organizational a broad management view and outlook in managing the office. Excellent leadership abilities were essential also (Long 30). As th~ 1970's horizon, a new type began to fade and the of office was coming type of manager was needed to run it. This 1980's were about and a on the different new office was known as the administrative services concept (Johnson 11). Gradually, the computer and its accompanying technological 12 devices changed the unified the separate instance, recording the in which was it office functioned. organizations and, separate functions demonstrated of data in the office processing, an functions of previously conceptually, the For way that at least in an the It office. collection and is basic, and hence related, to distribution, storage and of that data. Furthermore, the unique role that the office played in the modern organization became clear product and information as greater reliance was to serve placed on its the decision-making needs of management. Thus, during the 1980's, the office emerged from the concept the of narrower administrative office office serving the management entire to the broader organization. The office was rowan agent provided to assist top management and all other parts of the organization (Johnson 12). The function pLrpose of was the to provide office as an administrative specialized knowledge on the information cycle of the whole firm; to respond to needs regarding of the employees things; to help ensure space, administration organizatiors. administrative growing function the physical the security of the organization; in all fields responded to the need the entire machines, and care for the maintenance needs of the work force. in services Often, of new services, were the other and to Top management for these services to assist main positions, established functions such to as of their v.p. coordinate of this (Johnson 13). Basically, the office evolved into a function made up of 13 many interdependent, complimentary In units. this view, the office is considered as six different units. 1. It employs economic An economic unit producing value. resources(people, space, capital) and produces a service(information). 2. A human-social unit of people with the usual types of human problems. 3. A geographic unit. It is a decision center where information is produced and used to make decisions. 4. An ecological unit concerned with the environment and how it affects the worker's comfort and productivity. 5. A technological unit of machines and new systems and their interrelationships. 6. A communication unit for sending and receiving messages (Johnson 14). This type of manager to where atmosphere undoubtedly have different complex operations calls for In responsibilities. require specialization, the office a large each function may be headed by a manager who directs a separate department. a smaller firm, into the functions of the the responsibilities two In the office manager would probably be responsible for overseeing all of though, firm of all functional types: In office. managers could service general be divided responsibilities and managerial process responsibilities (Johnson 15). Functional service responsibilities deal with each of the functional areas under the manager's jurisdiction. This includes all equipment and office supplies, services such mailing and communi cati clns. included. The as the use correspondence Data processing manager is also of office services, and electronic and records management are also responsible for all of the 14 administrative such things systems and as procedures studies. simplification of office work, This environmental controls, standards development, and other activities. out the manager's responsibilities are the related information services and security involves Rounding duties of overseeing controls for loss prevention (Johnson 15-17). Managerial process responsibilities responsibilities which are implicitly are those assigned to most managers. These responsibilities include: 1. Understanding the total responsibilities of the unit being supervised. 2. Developing realistic goals for the unit in line with organizational practices. 3. Planning and organizing the assigned resources. 4. Directing employment activities and administering company personnel policies. 5. Supervising, evaluating, and motivating all personnel. 6. Setting appropriate productivity standards while conSidering employees' abilities. 7. Constantly seeking information to keep abreast of the demands of the job. 8. Develops controls used for evaluating and rewarding workers' performance. 9. Communicates effectively, within and outside the firm. 10. Keeps constant eye on bottom-line profit just as a plant manager would. 11. Understand fully how decisions are made and the role of the office as an information producer to furnish information upon which such decisions are made (Johnson 1'7-20). It is ver-y important that the managers possess good 15 He must technical skills. be able to communicate effectively. This not only includes the skills of writing, and listening, but .a flowchart, questions. speaking, reading, also the ability to conduct meetings, prepare clear give instructions, possess a He must sound and ask knowledge of effective information systems and telecommunication technology for planning and control purposes. Also, somewhat related, are information coding skills, formulation of work performance standards, and procedural skills (Birchall 151. Human skills needed by the manager are practically infinite. Such qualifications include between people and and in ability to perceive the effective counseling, motivating of employees. positively the problems disciplining, and In general, he must be able to interact a tactful manner with other people (Johnson 23) • Many ladder, studies show that as he is in greater conceptual skill is whole and need the ability the office as one of creating of new work systems translation of operating complex programs a person goes also of up the managerial conceptual skills. to view the organization as its parts. The designing requires conceptual relationships calls One for and these issues skills. into conceptual a and The sound skills. Finally, these skills are also needed to recognize and prioritize problem areas and to critique alternative methods of resolving problems (Hines 43-45). As this era of office management came to pass, the concept 16 Rather than just a place in which of the office changed forever. the affairs of the business were carried on, the office was newly seen as a type functions of of the performed. umbrella which organization, regardless of all administrative where they were As the 1980's have passed through time and the 1990's are here, the administrative continued covered to survive and services concept of the is very healthy. office has Like a living organism, it adapts to changes and keeps on going. Several technologies have advanced 1990's to affect how office operations are carried out. character is a enough in the 1980's and Optical recognition, or OCR, is one of these technologies. method of scanning typewritten or converting it to electronic signals. recording of printed It material and It makes the processing and written material much quicker and easier for office workers (Peck 27-28'. Facsimiles scan, reproduce a document by The dark and light areas are transformed into high and low frequency signals and sent by phone line to a compatible machine at the receiving are and It scans a page several times for each line of electronic means. type. transmit, two end where they are transformed to print. types of faN machines, machines are the most than a minute. needs digital advanced and can and analog. There Digital transmit a page in less It is the duty of the office manager to match the of the office with a suitable machine, while also taking into account the price of the machine (Peck 125-27'. In regards to the computer, four technologies are worth 1"7 workstations, and software. link networks, databaues, prof~.uional Local area networks are designed to They are local area listing. together different pieces of _quipmant may office equipment so that this communicate with each other, share resources, and allow communication outside the office (Peck 861. Professional workstations are combinations of hardware software placed near a worker's desk to help him may stand alone or link with information do his job. bases. and It Its ability to do advanced activities and processes distinguishes it from simple clerical and data entry stations (Long 1031. Databases are packages of information which workers can gain access to by package. most using a modem In general, and usually the there are four proper types of informal type is called a bulletin board. software databases. The They are started by users who wish to communicate with others having the same type of software. People can get up-to-date information from current information and services News Retrieval databases. Service allows a For example, person to get the Dow Jones current stock Information bank databases are similar to libraries. offers current information and years of same time. Vertical It back information at the databases are information services designed foy" certain pr'ofessions. Westlaw, for example, is a database for the legal profession (Peck 144-451. The 1980's saw a genuine explosion in the software business. Software eHistu for just done on a computer. about any type of activity Of course, it is the word that can be processing 16 software which gets the majority of the attention. When shopping for a particular type of software, one should be careful. many package. differences may seem similar, most between them. likely One may have and another may be more user friendly. there Though are some more advanced features Thus, it is important to learn all you can about a software package before you purchase it (Peck 45). We now need latest popular an erosion becoming to look at advances. of their routine amount responsibilities Also, assumed employees and technology the Some more hands to some amount of new effective and efficient. such as being their duties training new Obviously, the Their work has become more They have more time to problems of the people no pay increase. systems. has helped managers also. activities thus decreasing the managers saw on activities of these managers have seen another job with little or implementing the conceptual due due to the automation, of supervisors needed. merged with that of Others First, lower level work. supervised decreased the effects on management business since the concentrate on computeru do the routine jobs for them (Long 193-95). The duties of the office since the decade of the 1960's. manager have progressed greatly The constant introduction of new technology has gradually eroded some of the routine duties of the managers. duties manager. On the such as other hand, systems it has planner As new technology is and introduced new jobs and administrative services introduced in the future, it is 19 only ~ matter of time before the administrative .ervice. concept of management is replaced with a whole new style. 20 WORKS CITED Administrative Services, ed. The Changing Scope of Office Manageme.>nt. New York, American Management Association, 1964. Barcomb, David. Office Automation. Digital Press, 1981. Bedford, Massachusetts, Understanding the Implementation of Office Bikson, Tora K. Technol'l,ay. Santa Monica, CA, Rand, 1987. Birchall, D.W. Tomorrow's Press, 1981. Office Today. New York: Halsted De 1 gad 0 , A1 ,an. T-,-,-,h",e,---,E=n",o"-r..!.m",,o,,-u=sc-..!F_l..' "-l",e",:__""A,-..!S",o"",c;i""a",l,--,H~i-=s,-,t",o",r~y_".,o,,-f,--,t,,,h=e, Office. London: J. Murray, 1979. Hines, DO~lgl,as ?ui.l.din~;[.. V. Office _Automation, TooJs and !1ethods for System Toronto, John Wi ley and Sons, 1985. Johnson, Margaret, ed. The Changing Office Environment. VA, National Business Education Association, 1980. Littlefield, C.L. Management of Office Cliffs, N.J.: Prentice Hall, 1978. Oper" at ions. Long, Richard J. New Office Information Technology. Croom Hel m, 1987. Reston, Englewood New York: Martin, William W. The Administrative Manager's Guide to Better, Faster Work at Lower Cost., Englewood Cliffs, N.J., Prentice Hall, 1964. Neuner, Jchn William. Admir1istrative Office Cincinnati: Southwestern Publishing, 1966. Peck, Phyllis Man~gel'~. Management •. J. O'Hi ce Tel:hnology f or the Non-Technol ogi c:al Stamford, Conn: Office Publications Inc., 1984. Wagoner, Kathleen P. Office Automation: New York: Wiley and Sons, 1987. Technology and Concepts. . .. _._._._--------,---