Contents
The school-based assessment
l i) Office orientation
2
Communication
iv
1
46
3 ~ ecruitment and orientation
11 3
4
Information management
133
5
Reception and hospitality
165
6
Meetings
177
7
Travel arrangements
191
8y
uman resource management
211
9
Accounts and financial services
241
10
Procurement and inventory management
295
11
Sales, marketing and customer service
318
12
Operations, despatch and transport services
335
Index
359
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THe school-based assessment
The school-based assessment (SBA) is a research project that is
designed to help CSEC students develop and demonstrate essential
knowledge, skills and attitudes. Each student is expected to conduct
a self-directed investigation of a selected topic; apply a scientific
approach to collect data; and organise, analyse and present the
findings in a 1000-word report. The project must include relevant
charts, graphs, tables and pictures.
The objectives of the SBA are to:
1 provide the candidate with an opportunity to investigate an area
of special interest within the syllabus
2 develop the candidate's ability to conduct an enquiry and present
the findings
3 provide an opportunity for the teacher to be involved in the
evaluation process.
The SBA topic
The selected topic should be based on objectives from one or more
sections of the syllabus. Presently students, in consultation with their
teachers, are allowed to select their SBA topics from any section of
the syllabus. However, CXC has indicated that with effect from 2014,
SBA topics should be selected from the following areas:
1 2014 - Communication; Operations, despatch and transport
services
2 2015 - Office orientation; Procurement and inventory
management
3 2016 - Records and information management; Sales, marketing
and customer service
4 2017 - Human resource management; Travel arrangements;
Recruitment and orientation
.5 2018 - Reception and hospitality, Meetings
Project layout
Students should present the SBA project in a folder with their
candidate number, the name of the subject and the date submitted.
The project consists of three sections:
1 Preparntion
This section should contain:
TITLE - A suitable and clearly stated topic for the project.
AIM - Clearly stated project aims and objectives.
The school-based assessment
CORRESPONDENCE -A letter to the organisation you intend
to study, asking for permission to interview and/or observe
person(s) on the job. This letter must be prepared in suitable
business format.
2 Gathering data
This section should contain:
METHODOLOGY - A clear description of how, when and from
whom information was gathered
QUESTIONS - A record of the exact questions you asked and to
whom they were directed.
SCHEDULE - A three-column table with the headings DATE,
ACTIVITY and COMMENT, outlining the activities you
performed to do the research and any challenges you had to
overcome or follow-up action you needed to take.
REGULATIONS - A regulation, staff rule, or health and safety
practice that you observed where you carried out your project.
Indicate how it was relevant to your project.
3 Presentation
This section consists of:
REPORT -A 500-750 word discussion of the findings of your
research, the limitations of the project and recommendations
on how office efficiency can be improved through the use of
techno!o'gy.
OFFICE EQUIPMENT - A four-column table that summarises
the equipment you used in the office, under the following
headings: DATE, EQUIPMENT USED, PURPOSE,
SUITABILITY FOR TASK. If no equipment was available, then
you should research the types of equipment that would make the
office more efficient in performing the tasks researched for the
project.
SOURCES OF DATA AND INFORMATION - A bibliography to
acknowledge all sources of information·.
Guidelines for the layout
(a) The title page should be repeated for each section
(b) The table of contents should be relevant to each section
(c) The aims·and objectives must be stated
(d) The methodology employed should be described
(e) The letter, schedule, regulations, forms, graphics, charts etc.
should be included
(f) The report (500- 750 words) should discuss:
(i) findings
(ii) limitations
(iii) recommendations.
1
Office orientation
1.1 Role and functions of the office
OBJECTIVES
By the end of this unit you
should be able to describe
the role and functions of the
office in business activities.
When you hear the word 'office', what comes to mind? Many
students immediately think of the rooms occupied by the principal,
vice-principal, cleric;al workers and so on (Figure 1.1.1).
Figure 1.1.1 Some students' first concept of an office
The strategic plan of an
organisation is a document
I that includes statements of its
\ vision, mission and goals.
Activity
Use the internet to research
the mission statements, vision
and goals of at least THREE
organisations. In what ways
are they similar? In what ways
are they different? Prepare
mission, vision and goal
statements for your school.
In every organisation, whether large or small, there is a centre of
activity that is called the office. In a very small business the office
may simply be a desk and chair, with a telephone and some storage
space for documents. In a large business there may be an office for
each department, with a head office to coordinate the activities of the
various departmental offices.
Three important business terms that you should understand are:
vision, mission and goals. The mission describes the purpose and
activities of the business. Some organisations exist to make a profit,
for example, a supermarket or a garment factory. Others operate
to serve the needs of persons without a profit motive, for example,
a government ministry or a charitable organisation. The vision
expresses what the business hopes to be or accomplish within the
next few years. The goals state the steps that the business will take to
make its vision a reality.
1 1.1 Role and functions of the office
Role and functions of the office
.
The main mission, role or purpose of an office is the collection,
processing, s_torage and_ di_stribution of information so that the
business can ·be managed efficie_ntly alld effectjyely. The office serves
as the GO.!}trol centre of many organisations. It performs a range_of
essential functions to ensure that the business is successful in the
production, distribution and exchange of goods and services. These
functions include:
Production
Exam tip
You should be able to
explain clearly how the office
supports the operations of a
business.
The office assists in the production of goods and services by
_communicating instructions to individuals o r departments, such
· as purchasing, sales, marketing and distribution. For example, in a
garment factory, when the office receiyes-an order from a customer,
it must inform the various departments; such as production and
the stock room. These departments must inform the office on the
number and status of existing orders, before the delivery date of the
new order can be confirmed with the customer. The office produces
many documents while fulfilling its role, including letters, reports and
financial statements.
Distribution and exchange of goods and services
Distribution is the pro·cess of getting products to consumers. In a
large business there might be a despatch office that specialises in
managing distribution (see Unit 12.3). The exchange of goods and
services involves a number of office fu nctions. For example, the office
handles the receipt of money, often in the form of cheques received
by majl. Such payments must be promptly recorded and safely st<;>red
until deposited in the bank. The office is also responsible for other
distribution activities, such as:
• scheduling routes
• making arrangement with drivers to transport and deliver goods
• preparing advice notes, delivery notes and destination sheets.
Collection, processing and preservation of data
The office serves a&the' communication centre for the organisation,
coll~cting information from various departments and transmitting
it in an appropriate form to other departments. Information is
also gathered .from external sources, such as ind1viduals and other
organisations, in the form of enquiries, requests, orders, complaints
and so on. Other sources of information incl~e books, magazines,
newspapers, surveys and ·reports. There should be a well-organised
record of afl information received by·the office.
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Information collected by the office must be processed so that it can
be useful to those who req uire it. Processi ng of information includes
sorting, classifying, analysing, summarising and presenting in a
1.1 Role and functions of the office 1
different format. For example, a company's annual sales statistics for
the past 10 years may be presented visually in the form of a graph,
making it easier for the user to make comparisons and analyse trends.
Information must be stored safely, so that it can be readily accessed
whenever it is needed. Information can be stored manually, using
a variety of equipment, including filing cabinets and microfilm (see .
Units 4.5 and 4.7).
The office is not just a room.
You should remember that
the office is really the people
and the functions that they
perform.
Many business transactions are now done electronically, using
computer technology. Some organisations, such as eBay and
Amazon.com conduct almost all their transactions via the internet.
Electronic data management will be discussed in greater detail in
Unit 4.2.
Dissemination of information
Information must be communicated accurately and in a timely
manner if it is to be useful to the recipient. Responding to queries
from external sources is an important aspect of disseminating
information. The office must also create documents in the form of
letters, memoranda, reports and invoices, to name a few.
Organisational management and legal control
Office staff help to plan, coordinate, communicate, schedule, monitor
and report on th·e outcomes of business activities.
Complying with legal requirements is another responsibility of the
office. This includes the preparation and safe-keeping of contracts
and the payment of taxes. Some businesses are required to prepare
annual financial statements (these will be discussed in U nit 9.2).
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Key points
T he office is also responsible for the selection and safety of the
furniture, equipment and documents in its keeping. For example, the
office might recommend the use of a computer and scanner to stor<?
documents instead of buying additional filing cabinets.
(
The role and functions u f
the office, in keeping· with
its mission, vision and
goals, include:
• production
• distri bution and
exchange of goods and
services
• manual and electronic
collection, processing
and preservation of data
• dissemination of
information• organisational
management and legal
control.
Test yourself
1 Clearly explain the d ifference between the mission and the vision of an
organisation.
2 a Define the term 'office' as it relates to a business.
b What is the main role of an office?
c Describe THREE functions of the office in a business.
3 a Explain the production function of an office.
b Discuss how an office facilitates the production of goods and services
in a business.
4 As the secretary of an organisation, you are responsible for the
preservation and dissemination of information.
~ Identify THREE sources from which information can be collected.
b List FOUR activities involved iffprocessihg information.
c Explain the meaning of the term 'dissemination of information'.
d State THREE ways in which information can be disseminated.
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OBJECTIVES
By the end of this unit you
should be able to describe
. how the office structure and
activity may be organised
according to the size and
nature of a business, with
specific reference to:
The pictures below both show offices. Think about the businesses
in your country. In what type of business might you find the office
shown in Figure 1.2.1? tn what type of business might you find the
office shown in Figure 1.2.2?
• multiplicity of positions on
staff
• nature of duties and
responsibilities.
Figure 1.2.1
Figure 1.2.2
Size and nature of businesses
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Businesses vary in size and complexity, from small single-owner
enterprises to massive public limited liability companies.
, The
1.2 Positions, responsibilities and duties in the office 1
smallest and simplest business structure is the sole trader or sole
proprietorship, in which the organisation is owned and operated by
one person. The sole trader can employ other persons, but the owner
is the only person legally responsible for the business, who receiyes
all the profits and must pay all the debts.
Can you think of some examples of sole traders in your community?
You might identify enterprises such as a barber's salon, a small .
grocery store, a dressmaker's or an automobile repair shop. What are .
the office needs of such organisations? It is very likely that an office
similar to the one shown in Figure 1.2.1 will be sufficient.
Activity
Identify examples in your
country of each type ot
business outlined in Table
1.2.1 and try to determine
what kind of office you may
find in each business.
Larger organisations need higher levels of office activity.. Therefore,
significantly larger offices are needed, as is shown in Figure 1.2.2. The
different types of business structures are summarised in Table 1.2.1.
Type of business
8
trad er
Main characteristics
Ownership
One person
\
Owned, financed and controll('ld by
one person
There may be employees but these
are usually few
Crartne~hip
2 to 20 persons.
The partners usually run the business
and share the profits
Members
Each shareholder has an equal vote ,
regardless of the number of shares
held
'v
~ r a tive
').N
Day-to-day operations are directed
by a board of directors elf;lcted by the
shareholders ·
Private limited
liability company
[
Shareholders
Owned, financed and controlled by
2 to 50 shareholders
Shares are not sold to the general
public
Public limited
liability company
Shareholders
Owned, financed and controlled by at
least two shareholders
No maximum number of shareholders
Anyone may buy shares
Public sector
~
Private secfor
S. M . Jaleel, the Caribbean's
largest soft drink
manufacturer, started out in
1924 as a sole trader.
Goverr:iment
Owned and controlled by the local or
national -government
Private individuals
or groups
Owned and controlled by private
enterprises. Note that this term is
. used to refer to all businesses that
are not controlled or owned by the
government.
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"Table 1.2.1 Different types of business s\ructures
Multiplicity of positions on staff
The multiplicity or variety of positions on staff is determined by the
size and nature of a business. In .a srµa ll 0rgaflisation the office staff
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1 1 .2 Positions, responsibilities and duties in the office
Exam tip
You should be able to
identify and differentiate
between the roles of the
different personnel in an
administrative office. For
example, a clerk, typist and
secretary have different
duties and responsibilities.
may consist of a single individual who performs several roles, such
as receptionist, clerk and typist. Larger organisations require more
pe1:sonnel. This allows for specialisation in which each individual
performs a limited number of tasks with a higher degree of expertise.
For example, a manufacturing firm is quite likely to have at least one
customer support representative. In a very large business there may
be several customer support representatives, who either specialise
in different products or cater to the needs of different types of
customers. However, it is unlikely that this position will exist in a
small law firm. A small business might not have enough transact(ons
to need an accounts clerk, so a general clerk may handle this
responsibility, together with data entry and word-processing.
Nature of duties and responsibilities
Each staff position carries specific responsibilities. The worker
must perform a number of related duties in order to fulfil the ·
responsibility. Some of the specialist positions in an office are
summarised in Table 1.2.2. You should note that the job titles fo r
these positions may vary from one organisation to another.
Position
(Job title)
Responsibilities
Duties
Receptionist
To be the first
point of contact
between the
organisation
and the public,
creating the first
impression of
the organisation
to clients and
customers
Answer telephone, receive and transmit
messages
Provide information to callers
Greet persons entering organisation and
maintain a visitor log
Direct persons to correct destination
Respond to queries from the public and
customers
Set up appointments and maintain
appointment diary (either manually or
electronically)
Receive, sort and distribute incoming and
outgoing m_ail and maintain appropriate
records
Tidy and maintain the reception area
Data entry
clerk
To read
handwritten or
typed documents
and type or scan
them into the
computer
Key in text
Enter data into a computer
Operate a variety of office machine_
s
Manipulate existing data
Edit current information
Proofread new entries to ensure accuracy
Typist/word
processor
To use a
typewriter, word
processor or
computer to
prepare a variety
of documents
Set up and prepare various business
documents, such as letters, memos,
purchase orders, reports, mailing labels
and other text material
Take notes and d ictations at meetings
1.2 Positions, responsibilities and duties in the office 1
Accounts clerk
To produce,
organise and
maintain financial
records
In large
organisations
accounts clerks
may specialise
in areas such as
payroll; costing
collections and
bookkeeping
Calculate, document and verify financial
data for use in maintaining accounting
records
Compute and record charges, refunds,
rentals and so on
Verify and record details of business
transactions, such as funds received and
disbursed, and totals accounts
Compile, type and sort documents, such
as invoices, account statements, reports
and cheques
Maintain statistical records and prepare
periodic reports
Administrative
assistant/
secretary
To provide
administrative
support for an
individual or a
small group of
persons
Answer and screen telephone calls
Prepare and manage correspondence,
reports, minutes of meetings and other
documents·
Handle incoming mail and outgoing mail
Organise and coordinate work
schedules, appointments, meetings,
travel arrangements and other events
..
Set up and maintain filing systems (paper
and electronic), work procedures and
other office systems
Operate office equipment and manage
office space
Supervise lower-level clerical staff
Customer
support
representative
(also known
as customer
service
representative)
General clerk
To be the primary
contact and
support person for
customers
Answer customer telephone calls and
emails
Provide information about products or
services
Take orders
Resolve complaints about billing,
accounts or product defects
To perform a
variety of tasks
that support the
administration and
operation of the
organisation
A combination of the duties identified in
the positions listed above
w
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Table 1.2.2 Duties and responsibilities of office staff
Key points
Businesses vary in size
and complexity, from small
single-owner enterprises
to massive public limited
liability companies.
There are more
specialised staff positions
in the office of a large
organisation than a small
one.
· Each position has
specific duties and
responsibilities.
~ a Briefly describe THREE types of business.
b Identify ONE example of each type of business in your country.
@)What do you think are the opportunities for employmenl'in the office
of each business? Give a reason for your answer.
2 a Identify THREE areas of specialisation that can be found in an office.
b State clearly the duties and give a clear description of each job title.
Identify TWO negative and TWO positive effects of staff performing
multiple jobs in a small business.
4 As a business grows in size, there is a need for more employees,
equipment and other resources. Identify TWO effects this can have on
the responsibilities of all employees
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~--·: > -~·.a·.~-Qrganisational structure
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OBJECTIVES
Sylvie's Spa is a beauty salon, in which the owner is the only worker.
She makes all the decisions and handles all the tasks. There is no
need for discussion or the delegation of responsibilities and duties.
The owner eventually decides to open a boutique section to sell
clothes, fashion jewellery and personal care items.
By the end of this unit you
should be able to describe
how the office structure and
activity may be organised,
according to the size and
nature of a business, with
specific reference to the
types and patterns of
relationships.
As the business grows she hires additional workers, including a
receptionist/telephone operator and a sales clerk. This is called
specialisation, in that each person concentrates on doing a specific
set of tasks with a high degree of competence.
Sylvie develops and markets a highly successful formula for organic
shampoos and conditioners, using tropical fruits. The business
grows to the point where there are several employees who specialise
in different activities. By this time, the owner has specialised
in managing and supervising the operations. Later she finds it
advantageous to divide operations into several departments, each
with its own supervisor. The organisation now has a formal structure,
i.n which the roles, responsibilities, levels of authority, accountability
and channels of communication are clearly defined.
Activity
Identify and d iscuss at least
three changes that occur,
as Sylvie's Spa grows into a
large organisation.
Did you kno_\11 ...
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An organisation is two or more persons who work together to achieve
common goals. An organisational structure specifies the jobs to be done
within the business, as well as the interactions that are needed to get the
jobs done. These interactions are called relationships. Every organisation
has a structure that is influenced by various factors, such as its size,
purpose, strategy, technology and environment. Some organisations have
ve1y flexible structures, wh_ereas in others the structure is ve1y rigid (see
Forms of decision-making business structures on page 72).
Departmentalisation is
the grouping of persons
who perform similar or
related tasks. The manager
delegates authority to
the supervisors or middle
managers, who make
decisions about the
daily operations of the
departments. :fhe chain of
command is the reporting
relationship within the
organisation. For example,
workers report to their
supervisors, who, in turn,
report to the manager.
Formal and informal relationships
Formal relationships are deliberately created by the management of
a business in order to achieve its objectives. In a formal organisation,
jobs and positions are clearly defined, and there are established rules
and procedures. For example, there is a formal relationship between
the manager and staff.
Exam tip
You should understand the
difference between the terms
'employer' and 'employee'.
Did you know ... ?
l
The term 'grapevine' refers
to the informal, unofficial
communication channels that
run throughout a business,
including rumours and gossip. ·
J
Informal relationships develop from the personal and social
interactions of others. They are not deliberately designed by
management. Informal relationships are formed when persons
choose to interact among themselves, for example, workers who
regularly have lunch together. Information, opinions and advice may
be shared through informal relationships.
Line, staff, lateral and functional relationships
The term line relationship refers to the direct authority that one
person in an organisation has over another. For example, in your
school the principal has direct authority over the vice-principal, who
in turn has direct authority over the departmental heads, who then ·
1.3 Organisational structure 1
supervise the teachers in their departments. This line relationship is
illustrated in Figure 1.3.1.
Principal
Vice-principal
I
I
Head of Natural
Sciences and
Technology
Department
Head of
Languages and
Arts Department
I
Head of Social
Sciences
Department
I
I
Languages
and Arts
Teachers
Natural Sciences
and Technology
Teachers
Social
Sciences
Teachers
.f
I
Figure 1.3.1 Line relationship
A staff 1:elationship exists between an administrative assistant in one
department and the manager and personnel in other departments.
The administrative assistant may be able to communicate instructions
from their manager to the head of another department. They may
even offer advice to other workers. However, the administrative
assistant does not have a line relationship with (or direct authority
over) these persons. This is shown in Figure 1.3.2.
Chief Executive
Officer
Administrative
Assistant
I
Human
R~sources
Manager
Administrative
Assistant - Human
Resources
Figure 1.3.2 Staff relationship
Production
Manager
Marketing
Manager
1 1.3 Organisational structure
A lateral relationship exists amo_ng persons who are at the same
level of authority within an organisation. For example, in your school
a lateral relationship exists among the departmental heads, as is .
shown in Figure 1.3.3. One does not have line authority over another.
However, they may collabo rate, offer and receive advice, plan
activities and ~o on. Lateral relatio nships tend to be more common in
large organisations in which there are many departments.
Principal
I
Viceprincipal
I
I
I
Head of
Languages
Head of Natural
Sciences and
Te·chnology
I
Head of
Busin!=JSS
" Studies
Hea·d of
Modern Studies
and Arts
Figure 1.3.3 Lateral relationship
A functional relationship exists between specialist positions and
other areas. As is shown in F igure 1.3.4, the literacy specialist has
a functional relationship with the teachers. Some examples of
functional relationships in businesses include those between:
• the accountant and cashiers
• the occupational health and safety officer and all employees
• the human resource department and all o ther departments.
P~incipal
.
. I
Viceprincipal
I
I
I
I
Head of
Languages and
• Arts Department
Head of Natural
Sciences and
Technology
Department
Head of
Social Sciences
Department
I
I
Sciences and
Technology
Teachers
Social Sciences
Teachers
I
I
I
Languages and
Arts Teachers
•
I
Literacy
Specialist
Figure 1.3.4 Functional relation~hip
1.4 Organisational charts 1
Functional relationships are more common in large organisations
where there are activities that spread over the whole operation.
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Test. yourself
I
1 Define the' following terms:
Key points
,
Every organisation
has Ei structure or
pattern of relationships
that is influenced by
various factors, such
as its size, purpose,
strategy, technology and
environme·nt.
a Organisation
b Specialisation
c Departmentalisation
d Chain of command
2 Clearly explain the difference between each of the following pairs of terms:
JI Line relationship and staff. relationship
0
·
b Centralised businesses and decentralised businesses
c Pyramid structure and matrix structure
'1elatiohships are the
interactions between
personnel who are
needed to get the job
done.
.
3 Research the relationships that exist in ONE of the following types of
business. Using the diagrams in this unit as a guide, create a staff,
lateral and functional relationship diagram for one.
i Department store
ii Hotel
iii Utility company
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1.4 Organisational ch~rts
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OBJECTIVES
By the end of this unit you
• should be.able to describe
how the office structure and
activity may be organ_ised ·
with the use of organisational
c harts.
It is usually easier to draw an
.9rganisational chart than to
use words to describe the
structme of an organisation.
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An organisational chart is a diagram that represents a company's formal
structure, the relationships and relative ranks of its positions. It shows
the lines of responsibility between departments of an organi_sation. It is
called a hierarchical diagram because it represents the structure of an
organisation in terms of rank. The organisational chart usually shows
the managers and sub-workers who plake up an organisatiqn.
An organisational chart m ay be simple or complex, tall and
narrow or broad and flat, pyramidal or circular (Figure 1.4.1). An
organisational chart is flat when there are many people reporting
to a single person, as is often the case with smaller organisations,
such as sole proprietorships. It·is tall when there are many levels,
showing that a few_people report to the person at the next, higher
. level. A multinational corporation will have a very tall, complex
organisational chart. Where there is a hig~ level of interaction among
departments working on a project, a matrix chart is used.
Several factors influence the shape of the organisational chart. These
include:
• size of the.organisation.
• structure of the organisation ( e.g. degree of teamwork, number of
autonomous divisions)
• span of control (the number of employees who are supervised by
one manager)
:
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1 1.4 Organisational charts
• number of levels of management
• number of positions at each level
• level of interaction among persons and departments.
Managing
director
Finance
Marketing
Production
Figure 1.4.1a Flat organisational chart
Managing
director
Resource
management
Architectural
design
Chief
accountant
Research
specialist
Accounting
and budgeting
Utility
services (12)
E_xam tip
Make sure that you know
how to draw and interpret
organisational charts.
IT services
(6)
Figure 1.4.1 b Tall orga~isational chart
Finance
Production
Figure 1.4.1c Circular organisational chart
Figure 1.4.1d Matrix organisational chart
Sales
1.4 Organisational charts
Interpreting organisational charts
Blocks in an organisational chart
A rectangle or circle is usually used to represent a person, position
or department within the organisation. T he highest block is used to
represent the person with the most responsibility, such as the Chief
Executive Officer (CEO) or president of the organisation. The level
underneath will represent high-level managers or executives and
so on. For example, in an organisational chart for a school, the top
box will be occupied by the principal, the next level will be used to
represent the vice-principal, next will come departme ntal heads,
then the teachers. Departments, positions or persons with the same
authority are represented at the same level on the chart. If two persons
share the same job or responsibilities, a divided box may be used.
Lines in an organisational chart
In Unit 1.3 you learned about types of relationships within.an
organisation. On an organisational chart, a solid line is used to
represent a formal, direct relationship between two positions. Where
there is an indirect or advisory relationship, a·dashed line is used. If a
person reports to more than one supervisor within the organisation, a
dotted line is drawn.
Advantages and disadvantages
Table 1.4.1 outlines the advantages and disadvantages of using
organisational charts.
Advantages and benefits
Disadvantages and llmltatlons
Provides a quick, easy-to-understand
view of the formal relationships in the
organisation
Does not represent the ir:iformal
relationship s or patterns of social
b ehaviour that exist
Shows what should happen within a
firm
Does not reflect the changes and
growth phases that an organisation
experiences
Helps employees to d etermine where
they fit in, who reports to whom and
who is accountable
Some organisations are so c omplex
that it is almost imp ossible to do an
accurate organisational chart
It can be used as a planning tool
when developing or restructuring an
organisation
It does not represent the managerial
styles used, for example, whether
decisions are made democratically or
handed down autocratically
.
Table 1.4.1 Advantages and disadvantages of using organisational charts
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-
1 1.4 Organisational charts
Activity
Drawing organisational charts
Draw the organisational chart
for the following case study ·
using the guidelines given .
Activity
Construct an organisational
chart given the following
information.
Andall's Hardware is. a small
family-run business with 12
employees. Mr Andall is the
manager and has a personal
secretary who reports directly
to him. Mr Andall has the
responsibility of running
the business and doing the
accounting. His son, Adam,
is floor supervisor. Margaret,
his wife, is a cashier. For
the purpose of rotation they
have·hired one other cashier.
There are three customer
service representatives, an
electrician, a paint-mixing
specialist and one cleaner all of whom report directly to
the floor supervisor.
<""
r
Key points
r
r-
An organisational chart is
a diagram that represents
a company's structure, the
relationships and relative
ranks o f its positions.
An organisational chart's
shape is determined
by factors such as the
business's size, structure,
number of positions and
levels of interaction.
Case study Organisational structures
The sporting products manufacturer Fitness Solutions International is
led by a president, who is also called the CEO. The president has an
administrative assistant, who reports only to her. An accountant reports to
the president and the vice-president of production. Three vice-presidents
report to the president. They are in charge of production, sales and
marketing, and research and development. The production, quality control
and stock control departments report to the vice-president of production.
Sales and marketing are two separate departments that report to the vicepresident of sales and marketing.
The staff is as follows (assume that all members of the staff are of equal
rank):
•
•
•
•
•
•
Production: 25 assembly workers, one production clerk
Quality control: Two quality control inspectors
Stock control: Three stock clerks, two forklift operators
Sales: Six lorry drivers, 15 sales representatives, two clerks
Marketing: Three marketing representatives
Research and development: Four lab technicians, one research
assistant
Guidelines for drawing the organisational chart:
1 Draw a box for the president.
2 For the administrative assistant, place a box to one side of the
president's box, but make it smaller than that of the president.
3 Add three boxes for vice-presidents under the president's box and
label them 'vice-president of production', 'vice-president of sales and
marketing' and 'vice-president of research and development'.
4 The production, quality control and stock control departments report to
the vice-president of production. Put a box for each of these under the
box for vice-president of production.
5 Sales and marketing are two separate departments that report to
the vice-president of sales and marketing. Place the name of each
department in its box.
6 There is no sub-department under research and development.
7 Place the accountant's box between the president and vice-president of
operations and connect him to each with a dotted line.
8 Draw small boxes for the staff in each of the departments. Where there
are many members holding the same position, simply list the title with the
number of people assigned to that title in that department (e.g . assembly
- 25).
Test yourself
1 a Define the term 'organisational chart' .
b Identify TWO types of o_rganisational chart.
c Identify TWO senior management positions.
d Identify TWO advantages and.TWO disadvantages of using an organisational chart.
1.5 Organisation of the.office 1
2 Examine the organisational chart below. Identify the size of the business and the basic organisational
structures that are found in it.
Managing
director
Administrative
assistant
I
I
I
Research and
development
manager
Health and
Marketing
Production
safety
manager
manager
manager
•,•,•.·.·.·.·.·. ·.:::·.. ....
.... .... ····.:: ::
....
... .... .... .... .....
R& D
Factory
.... workers
.... department
(6)
(40)
Chief
accountant
.... .········
.. . ·········· ·······
·· ···
········
,•'
-
H & S officers
(4)
-
Marketing
department
(16)
-
Finance
department
(5)
3 You were creating an organisational chart for the company you work for, but you accidentally left out a level
of employees. Identify the implications this can have for a new employee who is trying to understand the
organisational structure of the business.
4 Discuss the factors that can influence the shape of an organisational chart.
OBJECTIVES
By the end of this unit you
should be able to describe
how the office structure and
activity may be organised,
according to the size and
nature of a business, with
reference to:
1 deployment of employees
2 decisions regarding
decentralisation
or centralisation
(reprographics, wordprocessing, records
management)
3 extent of computer
hardware and software
usage.
In Unit 1.3 you read about the changes that occurred as Sylvie's
Spa grew from a single-person operation into an organisation
with a number of departments. This resulted in changes such as
· specialisation, departmentalisation and the establishment of lines of
control. As an organisation increases in size, it may become necessary
for management to decide on how its employees should be deployed.
Deployment of employees
Deployment, the arrangement or classification of employees;will
vary according to the size and nature of the business. For example,
a manufacturing company may have departments such as human
resources (personnel), accounting (finance), purchases, sales,
stock control, production (factory), despatch and transport. A very
large, full-service law firm may be divided according to areas of
specialisation, such as corporate (business) law, criminal law, civil
law, family law and so on.
-
1 1 .5 Organisation of the office
',\.
Activity
1 What type of specialisation
will you find in the following
types of offices?
a Hospital
"b University or college
2·· What are THREE ways in
which the duties of the two
offices are similar?
3 W hat are TWO ways
in which the duties are
different?
Centralisation versus decentralisation
In some businesses there is a central office where all the pape1work
office functions described in Unit Ll are performed. This office
provides services for all the departments in the organisation. This
is known as centralisation. In some cases the centralised office is
subdivided into specialist areas, such as reprographics (printing and
duplicating), typing and word-processing, filing, mailing, reception
and the telephone switchboard.
Some businesses have found that it is more effective to have an office
with all the related functions for each department. Decentralisation
involves dispersing office activities throughout the organisation.
Decentralisation is advisable when departments need ongoing access to
information and equipment in order to function effectively. An outline
of the advantages and disadvantages of both is given in Table 1.5.1.
Centrallsatlon
Decentrallsatlon
Advantages
Advantages
• Fuller utilisation of space, staff and
equipment
• Documents and equipment are
located close to the persons using
them , reducing delays
• The use of larger, more efficient
machines, such as photocopiers,
automated l~tter openers
• The use of more highly trained,
specialised office_staff
• More efficient and equitable
· distribution of the workload
• Greater control over the quality of
work produced
• More effective supeNision of office
staff
• Departments may feel more
comfortable knowing that they are
in control of their information needs
• May require fewer specialist
positions as departmental
personnel may perform tasks such
as photocopying for themselves
• Faster decision-making as
necessary information is more
readily available
• Better noise control because noisy
machinery may be located in
specially designed work areas
Disadvantages
Disadvantages
• Centrally filed documents may not
be immediately accessible when
needed by a department
• Equipment may be under-utilised by
some departments
• A significant amount of tii:ne may be
taken in sending work assignments
to and receiving output from the
centralised office areas
Exam tip
You should know that the
duties of an office w ill vary
from one organisation to
another. For example, an
office in a factory wil l have
different duties from one in a
hospital.
• Some sensitive information, for
example, personnel files, should not
be centrally stored
• There may be confusion about the
location of some information
• There may be fragmented
documentation in that files related
to the same issue may be stored in
several locations
• There may be lack of consistency
or standardisation in the quality of
work produced
Table 1.5.1 Advantages and disadvantages of centralisation and decentralisation
In some cases, it is most practical to have a combination of
centralised and decentralised qffice services. For example, there
may be a central office, but each department may be equipped with
1.6 Office layouts 1
lI
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1
One CD can store
approximately 375,000 pages
of text.
document preparation, processing and filing capabilities, such as
direct telephone lines, filing systems, computers and photocopiers.
A specialist records manager can be appointed to ensure that all
records are properly filed and readily accessible to the respective
departments.
Extent of computer usage
Activity
Identify a business in your
country that has different
departments. Make a list of
all the job specialisations that
may exist in that organisation.
r
r
r"' rKey points
r
r-
Deployment is
the arrangement
or classification of
employees.
Centralisation is the
use of a central office to
provide all departments in
a business with services
such as reprographics,
word-processing and
records management.
Decentralisation is the
provision of separate
office services within each
department.
OBJECTIVES
By the end of this unit you
should be able to distinguish
between different types of
office layouts:
• traditional (enclosed or
cellular)
• open-plan
• collaborative spaces
• virtual office.
The extent of the use of computer technology is influenced by
the size and nature of the organisation . In recent years computer
equipment has become progressively more affordable. It is now
usual for very small businesses to have at least one computer. Larger
businesses might use computer networks that combine information
and processes throughout the organisation.
The introduction of information technology (IT) in the business can
eliminate many of the issues that arise concerning centralisation and
decentralisation. Documents can be stored electronically for access
throughout the organisation. There is less demand for physical space
to store paper documents. Templates or standardised document
formats can be prepared and stored on the computer so that there is
greater uniformity in the standard of work produced. Passwords can
be used to control access to sensitive information.
Test yourself
f
2
3
4
5
6
Identify TWO advantages and TWO disadvantages of centralisation.
Discuss why centralisation is suitable for a small organisation rather
than a large organisation.
Discuss TWO advantages and disadvantages of decentralisation.
Identify THREE types of software that can be used in the process of
filing.
Identify THREE benefits of using a computer to file documents.
Explain why good computer software is important to any business.
In Unit 1.3 you learned that some organisations have very flexible
structures, with a high degree of collaboration and teamwork. Other
organisations have more formal structures, with clearly defined roles,
levels of authority and channels of communication. The type of office
layout is usually determined by the structure of the organisation. The
traditional office layout is most often found in organisations that have
a formal structure. Flexible organisations, in which there is ongoing
interaction among personnel, usually choose to have an open-plan
layout.
-
1 1.6 Office layouts
Traditional or cellular offices
The cellular, traditional or conventional office layout consists of
small rooms enclosed with permanent walls and doors. Each office is
designed to accommodate o ne or two workers. Greater privacy and
better noise control are two major benefits of the traditional office.
His generally believed that the cellular office may create a more
productive environment because there are fewer distractions. On
the other hand, they are more expensive to establish and maintain,
and require more space. '.Thble 1.6.1 summarises advantages and
disadvantages of cellular offices.
Advantages
Disadvantages
~ Occupants have more privacy and
· can discuss confidential matters
without being overheard )
• Greater security of sensitive
documents and equipment
t~ Less risk of distractioni
C
• Noise is reduced /
• Personnel have more control over
their working environment
(• Cellular offices accommodate fewer
workers')
• Staff can feel isolated rather than
part of a team
• (11 is more difficult to supervise
workers who are enclosed in
individual offices J
{ Once the cellular offices are set up
it is difficult to change the layout
• Equipment must be obtained for
each office, resulting in increased
costs and inefficient use
.Activity
• Less effective communication
among staff members
Sam's Homemade Sweets
is a small business with
two departments - a
production department and
an administrative/sales office.
There are eight members
of staff: the manager, four
employees in the production
department, one driver and
three office staff who work
together in despatch. Draw an
office plan for the business,
labelling which personnel will
occupy each area.
• Higher maintenance costs because
of separate air conditioning, lighting
and so on
Table 1.6 .1 Advantages and disadvantages of cellular offices
Open-plan offices
fAn open-plan office is a single large room designed to accommodate
a number of workers. A major benefit of the open-plan office is
that communication is easier because everyone is in the same area.'
However, this ease of pommunication may lead to greater distraction
and a high noise level. Table 1.6.2 summarises advantages and
disadvantages of open-plan offices.
Cubicles
Some organisations try to retain some benefits of the open-plan
office, while minimising the disadvantages by creating cubicles.
~ ubicles·are partitioned workspaces created from an open area by
using privacy screens, which may or may not reach the ceilin~ (Figure
1.6.1). Cubicles occupy less space and are more cost-effective to heat
and air-condition, and to light than traditional offices. However, they
allow for more privacy than the open-plan office, resulting in fewer
1.6 Office layouts 1
distractions. A variety of partitioning materials are available. For
example, glass partitions may be used to increase visibility and ease
of supervision, and acoustic screens reduce noise. Low partitions may
be used to make communication among workers easier.
Advantages
• 'j'Facilitates teamwork as it is easier to
· collaborate on projects and issues ~
• ( No privacy for confidential calls
and meetings )
• Able to accommodate more workers
• ;Little security for sensitive
or valuable documents and
equipment ~
• More cost-effective to heat and aircondition, and to light
• (communication among workers is
easier\I
,
• ~It is easier for managers to supervise
workers because everyone is in the
same room
I
Did you know ... ?
You can find interesting
pictures and descrip tions by
doing a search for 'm odern
J
offices' on the internet.
~
Disadvantages
• 6Layout can be changed easily;
because there are no fixed walls
• Office services can be centralised
so equipment can be shared more
easily
• Conflict can arise as some workers
may be more comfortable with
a different temperature or light
setting
,
• (Can be noisier and more chaotic,
increasing the risk of distraction_}
• Infectious diseases such as the flu
are spread more easily
• Storage space for individual
workers may be difficult to
accommodate
Table 1.6.2 Advantages and disadvantages of open-plan offices
Figure 1.6.1 Cubicles
Collaborative spaces
{Collaborative spaces are areas that ~re specifically designed to allow
persons to work togethel' The collaborative space office design
provides individual offices or workstations for personal work, together
with shared areas for meetings and group int~raction. Modern
collaborative spaces are usually enhanced with technology such as
~ ireless internet, multimedia projecto rs and moveable display units.
-
1 1.6 Office layouts
Virtual offices
Exam tip
You must remember that
the term 'cellular' refers to
an office that is enclosed by
permanent walls. You should
be able to provide effective
arguments for and against
the use of each type of office.
-
/Vi rtual offices are created by using computer and
't elecommunications technology; Employees can work from any
physical location, using a computer with internet access, telephone
1
and fax machine.' There are a number of advantages to using virtual
offices:
• The business saves on the cost of purchasing or renting office
space.
• 'fhere are lower utility and maintenance costs.,
• It reduces overcrowding.
• E mployees save time and money because they do not have to
commute or purchase special clothes for work.
However, there are also several disadvantages:
• Employees feel isolated.
• ['here is less communication among workers, which can reduce
teamwork,'
'
• Workers may be distracted by home responsibilities, such as caring
for children.
Test yourself
1 a Name the TWO types of office layouts.
Key points
b Differentiate between the TWO types of office layouts you named
The cellular, traditional or
conventional office layout
consists of small rooms
enclosed with permanent
walls and doors.
An open-plan office
is a single large
room designed to
accommodate a number
of workers.
Virtual offices are created
by using computer and
telecommunications
technology.
D
in (a).
c Examine TWO advantages and TWO disadvantages of each type of
office layout.
2 Why do large organisations find it necessary to use cubicles/separators
in open-plan offices?
1
1
3 Identify TWO reasons why large organisations would choose an open-
plan layout instead of a cellular layout for their employees.
4 a Explain what is meant by the term 'virtual office'.
b State TWO benefits and TWO disadvantages to a business that
chooses to use virtual offices.
OBJECTIVES
The production, duplication, storage and disposal of documents
constitute a sjgnificant proportion of the work done in an office. In
this unit we will focus on some of the most common office equipment
used to perform these tasks. Other specialised equipment, such as data
storage and communications, including computers, digital cameras,
facsimile and mail-handling equipment, will be discussed in la ter units.
By the end of this unit you
should be able to describe
the contributio n to office
efficiency of various types of
equipment used in general
and specialised office work:
The term efficiency refers to the ability to accomplish a task with
the minimum expenditure of time, cost and effort. The use of
appropriate equipment improves the efficiency with which tasks can
be done. As you read about each piece of equipment, try to identify
the way in which it improves the speed and -effectiveness with which a
task is pe rformed.
• paper cutters
• guillotine
• shredder
• photocopier
• risograph
• laminator
• bind ing machine.
Paper cutters
Paper cutters are used to make neat, accurate cuts in paper, card
stock, Bristol board and similar materials.. They are more efficient
to use than scissors, particularly whe n precision is needed or when
handling large volumes of work. A paper cutter usually features
a heavy, stable, flat base, marked with a rule r and grid lines for
measurement. As is shown in Figure 1.7.1, the guillotine is one type
of paper cutter. Other types include the rota1y, stack and handheld
cutters. Paper cutters may be manual or electric.
Activity
Visit your school office and
obseNe the equipment that is
used. Prepare and complete
a table with the following
headings:
• Date OQSeNed
• Equipment used
• Purpose
• Suitability for task
-
Exam tip
You should be able to explain
how each type of equipment
contributes to the efficiency
of the office.
Guillotine: a long, cuNed steel blade
with a handle, attached to the top
right-hand corner of a base
Rotary paper cutter: a circular blade
that rotates as it slides along a rail
Handheld cutter: a straight, slanted or circular blade
attached to a handle
Figure 1.7 .1 Different types of paper cutters
I
1 1.7 Office equipment
j 1 ffi 11i 1 j 1 ■ii,l 1 N
Shredders
Strip-cut shredders cut the
paper into strips, whereas
cross-cut shredders cut
the paper into tiny squares
or diamonds. Cross-cut
shredders output paper that
is very compact and almost
impossible to reassemble.
A shredder is used to destroy documents before they are thrown
away. It is particularly important to use a shredder when discarding
sensitive or confidential docume nts. Shredders vary in size and
capacity, from small handheld models that destroy a single page at a
time, to heavy-duty industrial machines that shred hundreds of pages
at o nce (see F igure 1.7.2).
Handheld shredder
Industrial shredder
Commercial or office shredder
Figure 1.7.2 Shredders
Photocopiers
A photocopier is used to make paper copies of documents quickly
and economically (Figure 1.7.3). Photocopiers are so commonplace
that they are considered to be standard office equipment. A
photocopier is easy to use. The user lifts the lid of the copier and
places the document face-down on the glass. The user closes the lid
and selects the number of copies to be made and then presses the
start button. Inside the machine, light, static electricity and heat are
used to affix the ink (called the toner) in the same pattern as on the
original docume nt.
II
1.7 Office equipment 1
Figure 1.7.3 Photocopier
Multifunctional photocopiers, such as the one shown in Figure 1.7.4,
can copy, scan, print and fax. Some copiers can collate documents,
that is, assemble the pages in their correct sequence and then staple
them. Automatic document feeding may be used to send multiple
pages through the copier one at a time, eliminating the need to open
and close the lid several times.
Figure 1.7.4 Keypad of a
multifunctional photocopier
Risograph
A risograph is a digital printing system used for high-speed, highvolume copying (Figure 1.7.5). It looks like a photocopier but it
Figure 1.7.5 Risograph
-
1 1.7 Office equipment
operates quite differently. The risograph creates a stencil of an
existing document by burning tiny holes that correspond to the
original image onto an ink-resistant film called a master. The master
is then wrapped around an ink-coated cylinder called a drum. As
the drum rotates, ink is forced through the holes and onto sheets of
paper that are automatically fed through the machine. Risographs
are capable of printing up to 130 pages per minute. This is much
faster than a photocopier. Prints usually cost less than a photocopier
if more than 20 copies of a page are to be printed.
Laminators
Have you noticed that some schools and businesses use plastic-coated
identification cards? These cards are produced on a lamina tor - a
machine that attaches a thin plastic sheet to paper. Some Iaminators
use glue-coated plastic, whereas others use heat to slightly melt the
plastic (Figure 1. 7.6).
Figure 1.7.6 Laminator
Binding machine
A binder is used to attach several sheets of paper to form a book.
There are several types of binder~:
• A comb binder punches holes in the paper and uses a plastic
'comb' to hold the pages together (Figure 1.7.7).
Figure 1.7.7 Comb binder
1.7 Office equipment 1.
• A spiral binder uses a piece of coiled wire, instead of a comb.
• A thermal binder uses heat to melt an adhesive strip that joins the
pages and attaches a cover (Figure 1.7.8).
Peach Thtrmal Blndtr
AA.A
Figure 1.7.8 Thermal binder
,...
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,.. . .. . ..,,
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Key points
The use of appropriate
equipment improves the
efficiency with which tasks
can be done.
Equipment must be
selected according to the
needs of the organisation.
A piece of equipment is
efficient if it is suited to the
type and quantity of work
that must be done.
Test yourself
1 Identify THREE types of paper cutters.
2 Discuss TWO factors that would determine what type of paper cutter is
purchased by an organisation.
3 What types of businesses would purchase shredders?
4 Explain the difference between a commercial shre(;-fder and an industrial
shredder.
5 Identify TWO similarities between a photocopier and a risograph.
6 Name TWO differences between a photocopier and a risograph.
7 What qualities of risographs make them more beneficial to a large
organisation than photocopiers?
8 Simon & Simon is a three-person· law firm that operates in the city of
St George, Grenada. A large quantity of their information is stored
and transmitted electronically; however, they receive informatio'n from
all around the Caribbean. One of the partners, who deals with many
Caribbean contacts, would like to purchase some equipment for his
office. He requires a machine that can receive faxes and do smallquantity printing. Recommend equipment that he can use for his office.
Give TWO reasons for your answer.
9 Identify THREE pieces of equipment you would recommend to a firm
that engages in a lot of printing. Justify your answer.
1 ORecommend TWO ways that a business can engage in destruction of
confidential information. Justify your answer.
~• ·r:1·.8 Computer technology in the office
~
.
.
OBJECTIVES
By the end of this unit
you should be able to
describe the contribution
of computers and related
equipment to efficiency in
the office, including:
• voice recorders
• scanners
• printers: lasers, inkjets,
impacts, plotters
• multimedia devices: digital
cameras, projectors.
Computers are an essential feature of the modern office. The main
reasons for the ever wider use of computers are their speed, accuracy,·
reliability and versatility. A computer can carry out calculations in a
fraction of the time it takes the average person; it never gets tired or
bored and can be programmed to perform a wide variety of tasks. A
computer is accurate; it will do exactly the same task it is instructed
to do, as many times as it is instructed to do so.
Computers range in size and capacity, from large mainframes
that can be simultaneously used by hundreds of persons, to
microcomputers that are designed for a single user . Microcomputers,
or personal computers (PCs), also vary in size, and include:
• A palmtop computer is a hand-sized computer. Early mode ls
offered only a limited numbe r of applications, such as an
appointment book, notepad and address book, but their capacity
has increased considerably.
• A personal digital assistant (PDA) is a small handheld device
abo ut the size of a pocket calculator. A PDA is used for managing
schedules and storing contact information. Cellular phones now
offer many of the features of a PDA, plus email, internet, audio
recording, photographs and video.
• A laptop, notebook or netbook computer combines the screen,
keyboard, pointing device, processor, memory and hard drive in a
lightweight battery-powered case, often no larger than an average
textbook. Persons who take their work home, travel considerably
or have limited workspace often choose to use these portable
computers.
• A desktop is a personal computer that is designed to be set up in
a permanent locatio n. T his type of computer is most commonly
found in homes, schools and offices.
• A workstation is a desktop, but with a more powerful processor,
extra memory and greater capabilities. Workstations are used by
millions of office workers all round the world.
• A PC may also be used as a server. A server is a computer that
is designed to control a computer network. They are therefore
constructed with powerful processors, extensive memory and large
storage capacity.
Computer hardware
The term hardware refers to all the parts of the computer that you
can see or touch, including the keyboard, mouse and monitor. Each
piece of computer equipment is called a device. The term peripheral
is used to refer to all devices that are attached to the computer.
Some peripherals used in the office include printers, scanners, digital
cameras, multimedia projectors and voice recorders.
Figure 1.8.1 Digital audio recorder
D
Voice recorders ( also known as digital audio recorders) are small
handheld devices th at record sound in a format that can be used on
1.8 Computer technology in the office 1
a computer (Figure 1.8.1). Some recorders come with transcription
(voice-recognitio n) software that is used on the computer to convert
the sound to printed text. This technology reduces the time that is
taken to type text.
Figure 1.8.2 Scanner
Scanners are used to get images or documents into a computer. A
scanner is a device that bounces a beam of light off the document
and records the reflected light as a computer code (Figure 1.8.2).
The image can then be used, modified, printed or stored. Scanners
use optical character recognition (OCR) software to convert printed
documents, such as letters or newspaper articles, to text that can be
edited on a computer. The use of scanners makes it possible to store
copies of existing documents on a computer system.
Bar-code scanners are used to read the bar codes on products.
A bar code is a series of printed vertical lines of differing widths
that represent numbers that are printed on almost all products.
Appropriate software is used to identify the product for stock control
and sales pricing. Using bar codes significantly reduces the time taken
to enter product data, and makes it easier to sort, track, buy and sell
packaged products.
Inkjet printer
Laser printer
Figure 1.8.3 Types of printer
A printer produces computer output on paper. You have already
learned that photocopiers and risographs can be attached to the
computer for printing. However, in many offices separate printers are
attached to computers (Figure 1.8.3). The two types of printers that
are most commonly used are inkjets and laser printers. The inkjet
printer sends tiny dots of ink onto the paper to create the document.
These printers are ve1y affordable. However, the ink on the printout
can become smeared if the document gets wet. Laser printe1·s are
more expensive, but they produce a very high quality of printout by
using a laser beam and toner ( dry ink). Dot-matrix printers were
once very popular, but now they are seldom seen in offices, mainly
because they are slow and no isy. Dot-matrix printers use a print head
containing a number of metal pins that hit an inked ribbon placed
between the print head and the paper. For this reason they are called
impact printers. T hey are still used for the preparation of bills and
invoices in some businesses and hospitals.
-
1.8 Computer technology in the office
Digital cameras are rapidly replacing cameras that use film (Figure
1.8.4). A digital camern operates independently of the computer.
It a llows you to take pictures and to store digital photographic
images. The images are stored on a memory chip or disk, which
can be transferred to the computer. Some digital cameras can also
capture sound and video. A PC camera or webcam is attached to
the computer. The computer is its power source. Video with sounds
and still images captured by a PC camera are sent directly to the
computer, where they can be edited and stored. The images from
digital cameras are used to produce advertising and sales material,
including websites for e-commerce.
Digital camera
Webcam
Figure 1.8.4 Types of camera
Figure 1.8.5 Multimedia projector
Computers are one of the
world's most rapidly changing
technologies. Engineers are
continually trying to produce
smaller, higher-capacity, more
efficient devices.
A multimedia projector takes the image from a computer screen
and projects it onto a larger screen or wall so that it can be seen
by a large audience (Figure 1.8.5). They are used in meetings and
training sessions to add interest and increase the effectiveness of oral
presentations.
Computer software
Table 1.8.1 outlines some of the major categories of computer
software and the purposes for which they are used.
Software
Wordprocessing
Spreadsheet
Examples
Microsoft Word, Word
Perfect
To create, edit, format and print
documents, such as letters,
papers and reports
Microsoft Excel, Lotus
To add, subtract and perform other
calculations on rows and columns
of numbers
1-2-3
Accounting
Purpose
Peachtree, QuickBooks
To keep and organise financial
information, such as payrolls,
sales and purchases ledgers and
bank transaction records and
records of suppliers
1.8 Computer technology in the office 1
Exam tip
You should be ab le to
discuss the full range of
benefits that a business
derives from the use of
computers in the office.
Purpose
Software
Examples
Database
management
Oracle, Microsoft Access
To store. organise, manipulate,
retrieve, display and print
large collections of data and
information, such as personnel
files and inventories
Desktop
publishing
(DTP)
Microsoft Publisher,
Adobe lnDesign,
QuarkXPress
To design and print publications,
such as documents, books,
magazines, flyers and newsletters
Presentation
PowerPoint,' Lotus
Presentation, Corel Show
To create documents called
slides to be used when making
a presentation - these slides can
contain text, pictures, sound,
animations and movie clips
Table 1.8 .1 Uses of computer software
Activity
Many experts have predicted that the increased use of computers will result
in the 'paperless office' becoming the norm. A paperless office is one in
which all documents are produced, disseminated and stored electronically.
Although offices have not yet become comp letely paperless, the use of
computers has resulted in several changes, four of which are listed below:
• Electronic mail (email) is being used with increasing frequency.
• Businesses are using the internet to market their products, handle
queries and orders from customers, and provide after-sale services
(e-commerce).
• Computer networks are being used to communicate among persons
within and outside the organisation, using chat, instant messaging and
video-conferencing software.
• Cell phones with computer capacity (smart phones) are being used for a
wide range of business purposes.
1 How many other changes can you think of? Brainstorm with your
classmates and produce a list of at least FIVE changes.
2 List occupational health and safety principles that office workers should
adhere to when operating a personal computer.
3 a Research the meanings of the following terms:
(
,... (" ,... (" ("'
Key points
Computers improve offi ce
efficiency.
Hardware consists of
the parts that make up
the machine or devices
that are connected to the
computer.
Software consists of
the programs (coded
instructions) that enable
the computer to operate.
i. iPhone
ii. G4
iii. Android .
b Discuss at least THREE ways in which newly developed computer and
cell phone technology is being used by businesses.
Test yourself
1 The emergence of computers has contributed to more efficient office
workers and modernises the office. State THREE ways in which
computer technology contributes to greater efficiency in the office.
2 Distinguish between 'input' and 'output' devices. Give examples of each.
3 Describe FOUR different types of software that are used in businesses.
-
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-
1 1.9 Ergonomics
4 a Name the following computer peripherals and classify them as input
or output devices.
b State a business use for each device.
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5 Jenny's father, David, has decided to buy her a new dot-matrix printer
for her birthday. His friend Max has discouraged the purchase by telling
David that it is the worst printer he can buy.
a Give TWO reasons why Max would not recommend the dot-matrix
printer.
b Suggest another printer that you would recommend for Jenny. Give
reasons for your answer.
c Discuss TWO characteristics one should consider when buying
printers.
OBJECTIVES
By the end of this unit you
should be able to discuss
the ergonomics of the
office.
Ergonomics is the science of designing the job, equipment and
workplace to fit the worker, reducing fatigue, discomfort and injury.
It includes:
• workspace design, such as office layout and size, seating, lighting
and ventilation
• furniture and equipment
• work habits.
1.9 Ergonomics 1
Exam tip
You need to know the
difference between
ergonomics and staff
welfare.
Ergonomics seeks to minimise risk of inju1y from:
• repetition - body movements carried out over and over again
• awkward postures - body positions including excessive twisting or
stretching
• static forces caused by maintaining the same position for a
prolonged period of time.
Repetitive strain injuries occur when the muscles, tendons, nerves or
other tissue experience stress or strain because a task is performed
repeatedly. For example, the painful condition called carpal tunnel
syndrome develops in the wrists of persons who often type on
computer keyboards for long periods of time.
Workspace design
The office should be designed to promote worker health, safety,
comfort and efficiency. Offices should never be overcrowded. Rooms
should be well ventilated, but desks should not be placed directly
below or in front of air-conditioning vents. T he temperature of work
spaces should be regulated so that workers are not uncomfortably hot
or cold. Offices should be well lit, but glare should be minimised to
prevent headaches and eye strain.
Furniture and equipment
Ergonomically designed office furniture helps promote efficiency
and health. Furniture should be adjustable to cater for the needs
of different workers. Chairs should be comfortable, with adjustable
height, lower-back support and adjustable armrests. The height of
the desk should be appropriate for the worker and the task to be
done. The height should allow the worker's shoulders to be relaxed
and hang naturally. A lower desk or a keyboard tray is necessary for
typing.
Work habits
Position your work so that you can be comfortable while doing
it. Avoid postures that require exten·ded stretching, twisting or
unnatural curvature of the spine . Take short breaks (10 to 60
seconds) throughout the work day. During these breaks look away
from your work, blink several times and flex and stretch your muscles.
Get out of your chair every 20 to 40 minutes. Try to alternate tasks
so as to avoi~ having overly long periods of the same activity. For
example, a period of typing may be followed by some filing to change
position and stretch the muscles.
-
ri'
1 1 .9 Ergonomics
Health and safety tips
Computers
• Use a properly designed computer desk, with a built-in tray to
hold the keyboard and mouse.
• Select a comfortable chair, with adjustable height, lower-back
support and adjustable armr_ests.
• Position your monitor at approximately an arm's length away
from your body, angled so that there is no glare on the screen. If
reflections are unavoidable, purchase an anti-glare screen.
• Look away from the screen and blink your eyes every few minutes
to reduce the risk of eyestrain. Stretch, flex your wrists and shrug
your shoulders at regular intervals.
• Take frequent breaks away from the computer.
Space in front
of keyboard to
support hands
during pauses
in keying
Forearms
horizontal
Good lumbar
support
Space for
postural
change- no
obstacles
under desk
Seat height
adjustability
No excess pressure on underside
of thighs and backs of knees
Foot support if required
Figure 1.9.1 How to sit correctly when working at a computer
Guillotines
Did you know ... ?
The International Labour
Organization says that there
are over 100 different types
of job-related injuries and
illnesses, with some so
crippling that they may require
surgery or cause permanent
disabilities.
Ensure that the guillotine you use has the following safety features:
• A tension spring that prevents the blade from falling downwards 1f
it is released while in an upright position.
• A blade lock to keep the blade in the down position when the
guillotine is not in use.
• A blade guard to keep fingers away from the cutting edge.
1.10 Work skills 1
Photocopiers and risographs
r
Key points
Ergonomics is the
science of designing
the job, equipment and
workplace to fit the
worker, reducing fatigue,
discomfort and injury.
Repetitive strain
injuries occur when the
muscles, tendons, nerves
or other tissue experience
stress or strain because
a task is performed
repeatedly.
Photocopiers and risographs should be installed in a well-ventilated
area, with adequate space around the machine. They should not
be located close to work desks. The machines should be regularly
maintained by a trained_professional. The working surface of the
machine and any tables for collating should be at a comfortable
height, to eliminate unnecessary bending, stretching or awkward
postures. Copying and collating should be interspersed with other
work to help prevent t epetitive stress injuries.
Test yourself
1 Define the term 'ergonomics'.
2 Discuss THREE aspects of ergonomics that would affect the layout of
an office.
3 Discuss TWO ways an employee can use ergonomics to prevent office
injuries.
4
List SIX ergonomic guidelines that should be followed when using
computers in the office.
1.1O Work skills
OBJECTIVES
By the end o f this unit you
should be able to describe
skills desirable of office
p ersonnel.
A skill is an ability that has been developed through training and
practice. Essential skills for office workers include:
• literacy and numeracy
• computer literacy and proficiency in the use of productivity tools
• effective communication
• time management
• analytical and problem-solving s kills.
Literacy and
numeracy
Analysis and
problemsolving
Effective
communication
Figure 1.10.1 Essential skills for office workers
Computer and
productivity
tools
Time
management
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-
1 1.10 Work skills
Exam tip
You must be able to identify
which skills are required in a
specific business situation.
The skills you acquire during this course will be valuable as you
pursue your career after graduating from school. Projects such as
your school-based assessments are designed to help you develop and
demonstrate these skills.
Literacy and numeracy
Functional literacy is the level
of reading and writing that is
adequate for everyday life
and work.
Literacy is the ability to read and write. An office worker must be able
to read and understand written material, such as instructions, product
labels and documents. You must develop the ability to refer to written
sources of information, such as product brochures and encyclopaedias,
skim lengthy material for the main ideas, identify relevant information
and analyse and integrate information from different sources.
A significant proportion of office work involves working with
numbers. Office workers must be able to handle numerical activities,
such as the making and receiving of payments, maintaining accounts,
preparing budgets, calculating payrolls and managing stock, to name a
few. The ability to calculate and record figures accurately is essential.
Computer literacy and use of productivity tools
The increased use of the computer in the office has resulted in the
need for those who are proficient in the use of the computer and
productivity tools. Computer literacy is a basic working knowledge
of computers and related software, including the use of the internet.
Productivity tools are a wide range of programs or software designed
to increase efficiency in the workplace. As you learned in Unit 1.8,
these programs include word-processing, spreadsheets, databases,
presentations and desktop publishing. Please review Table 1.8.1 for
the purpose and examples of each type of productivity tool.
Effective communication
An office worker must be able to communicate effectively. This issue
will be discussed more fully in Unit 2.
Time management
The ability to manage time in order to effectively accomplish a
number of tasks requires time management skills, such as scheduling
and prioritising. From now on you should make it a practice to list the
tasks that you need to do in order of priority. Check and amend your
list daily and stick to it. Carefully verify and note all deadlines and
complete work assignments well in advance of the due date. Ensure
that assignments are allotted reasonable time for completion. Use a
reminder system, such as an electronic or paper diary, to record all
assignments. Ensure that dates and times are correct and agreed on.
Consult colleagues and supervisors where necessary before making .
decisions and appointments.
1.10 Work skills 1
Analytical and problem-solving skills
Analytical skills involve the breaking up of a complex process or
topic into smaller parts in order to better understand it. Problemsolving is a complex skill that is composed of a number of different
components, including analysis (Figure 1.10.2). You should be able to:
• restate the problem so that it is more clearly expressed
• identify a number of reasonable options for solving the problem
• analyse each option to identify its strengths, weaknesses and
possible outcomes
• evaluate each solution to determine its relative merit
• choose the best possible option from the available solutions
• make adjustments and improvements where necessary.
Figure 1.10.2 Office workers need problem-solving skills
r-- rKey points
Skills are abilities that
are developed through
training and practice.
Skills that are essential for
office workers include:
• literacy and numeracy
• computer literacy and
proficiency in the use of
productivity tools
• effective communication
• time management
• analytical and problemsolving skills.
Test yourself
1 Use examples to illustrate why each of the following skills is important to
office workers :
a Numeracy
b Communication
c Computer literacy.
2 The office manager has observed that two of her workers are frequently
late. However, they are quite willing to work through their lunchtimes or
work late when necessary. .
a With what skill(s) do these workers have a challenge?
b Outline the problem-solving process the manager should follow when
trying to resolve the problem .
c Propose THREE possible solutions that she could consider.
-
1. 11 Attitudes
OBJECTIVES
By the end of this unit you
should be able to describe
desirable attitudes for
office workers.
Attitude refers to the mental state that is created by feelings, beliefs
and values. Attitudes influence the way a person acts. This unit
presents some desirable attitudes for office personnel. As you study
each attitude, examine yourself to determine how you measure up.
Make a conscious effort to improve in your weak areas.
Team spirit, group dynamics and cooperation
It is highly unlikely that you will be working in isolation. It is far more
Exam tip
You should be able to state
the benefits of good attitudes,
as well as the negative
effects of bad attitudes in the
workplace.
•im
-
Your personality, socialisation,
education and experiences
determine your attitude to
everything around you.
Activity
Visit an office at your school
or in a business in your
community.
1 List at least FIVE activities
and processes that can
harm the environment.
2 Make recommendations
for improvement.
3 Write out a vision statement
that shows environmental
awareness for the school
or business.
likely that you will be part of a work group or team. Therefore, it is
vital for you to develop the right team spirit - the desire of a group
to work together as a single unit to achieve common goals. Always
accept responsibility as a group member for the outcomes of the
group's activities and do a fair share of the team's activities. Come
up with ideas, even if they are not eventually accepted by the group.
Group dynamics is the way persons interact with each other. Always
have respect for the ideas and expertise of others. Even when not
part of a formal group, you should be willing to share information
and help others. Cooperation is the ability to work with others to
achieve common goals and share in decision-making. You must be
willing to listen to and accept other people's ideas, and modify your
own ideas to fit in with emerging plans and decisions.
Tolerance and appreciation of diversity
You may have heard of the term 'globalisation' - the removal of
international barriers to trade and communication. An increasing
number of organisations are operating internationally, with branches
in many different countries. Under these circumstances it is essential
that you develop tolerance and appreciate diversity. Tolerance is an
acceptance of the beliefs, practices and opinions of others. Do not
expect that others will think and act exactly the way you would. Show
that appreciation of diversity by welcoming opportunities to meet,
interact with and learn from persons of other cultures and national
groups. Avoid prejudice of aJI kinds and accept that each individual
has different strengths, weaknesses, talents and skills.
Safety consciousness
In Unit 1.9 you learned about ergonomics, the design of the
workplace to increase efficiency and reduce discomfort and injury.
Each worker must be safety-conscious. This involves constantly being
aware and taking appropriate action to avoid potential harm.
Environmental awareness
E nvironmental awareness is the recognition of the impact of one's
activities on the world in which we live. There are a number of things
1.11 Attitudes 1
that office workers can do to h~lp protect the environment, including:
• using live plants as part of the office decor
• turning off lights in rooms that are not in use
• switching off or unplugging equipment, that is not in use
• using energy-efficient equipment, including laptops instead of
desktop computers
• using less paper, for example, sending emails instead of written
notes and reading documents online instead of printing them
• using glasses and ceramic mugs instead of disposable cups.
Social responsibility
Every business has a responsibility to the society in which it operates.
This social responsibility includes:
• integrity in all aspects of its operations
• respect for workers' rights
• promoting diversity in the workplace
• environmental protection
• contributing to the benefit of local communities.
Activity
In April 2010 an explosion on a BP rig in the Gulf of Mexico resulted in
a massive oil spill. Research the causes and consequences of the oil
spill. Discuss the social responsibility that BP has in connection with this
incident.
Figure 1.11 .1 Attempts are made to put out the fires caused by the explosion at
the Deepwater Horizon rig
•
1 1.12 Attributes of good office workers
Each employee also has a pe rsonal social respo nsibility. This
responsibility can be expressed in several ways, including:
• volunteering for community improvement programmes, such as
mentoring youths or supp orting charities
• m aki ng recommendations for and supporting the introduction of
environmentally friendly work activities, such as waste re duction
• car-pooling, cycling or walking to work to reduce ene rgy
consump tion and pollution.
Key points
Attitude refers to the
mental state that is
created by feelings,
beliefs and values. Office
workers should have the
following attitudes:
• team spirit, group
dynamics, cooperation
• tolerance and
appreciation of diversity
• safety-consciousness
• environmental
awareness
• social responsibility.
Test yourself
1 State which attitude or attitudes are shown in each of the following
situations:
a Showing equal respect and courtesy to persons of all ethnic groups
b Planting trees to create a neighbourhood park
c Commitment to ensuring the success of the option that is accepted
by the group
d Replacing incandescent light bulbs with fluorescent lighting
e Supporting the holiday celebrations of a different ethnic group
f Reading the instruction manual before using machinery
g Buying biodegradable soap for the staff washroom
h SeNing on a committee to raise funds for a children's home
'.: 1.~l~ ),~~ributes of good office workers
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OBJECTIVES
By the end of this unit you
should be able to descri be
the attributes of a good
office worker.
If you are asked to describe yourself, what would you say? What a re
your predominan t characteristics or attributes? What traits do you
consistently demonstrate? The term attribute refers to the qua lities
or characteristics of a person. In this unit you will be examining some
of the attributes of a good office worker. How will you measure up?
Punctuality and regularity
Being punctual and r egular contributes to efficiency and helps you
to become reliable. Always arrive for work and appo intments in
good time. Make allowances for unexpected delays, such as traffic
congestion o r vehicle breakdowns. Avoid absences, especially for
trivia l reasons. It is cour teous to telephone your supervisor if yo u are
unavoidably late or absent. R emember that worke rs can be fired for
habitua l lateness or absen teeism.
Positive work ethic
Yo ur work is a reflection of yourself. Ensure that your work is always of
the highest possible quality. All written or typed work must be neat and
well organised. Information should be accurate, relevant, sufficien tly
1.12 Attributes of good office workers 1
detailed and well researched. Make certain that your work is free from
errors in grammar, spelling and punctuatioi1. E nsure that business
docume nts are prepared according to established rules and guide lines.
Activity
Identify three positive
attributes illustrated by
Figure 1.12.1.
Figure 1.12.1
Integrity, honesty and confidentiality
In 201 O the Bank of America
sued four former employees
for a break of confidentiality.
Integrity and honesty are closely re lated. Integrity involves being
comp letely trustworthy in a ll matters.
Honesty is truthfulness, straightf01wardness· and the absence of
theft or dece ption. H onesty involves more tha n simply te lling the
truth when asked. or example, some office workers believe that it
is acceptable to take office supplies for the ir personal use.,,H owever,
unless permission is given by the owne rs, this is actually stealing. It is
dishonest and punishable by law.
Several units in this book highlight the importance of confidentiality,
which is keeping all work-related information priva te. This includes
information about the business, its products, customers or clients and
e mployees. Gossip about workers can lead to strained re lationships,
loss of morale and lower productivity. The abllity to keep information
to you rself is an indica tion of your professiona lism. Even whe n yo u
are not specifically instructe d to keep a matter secret, you should
refrain from d iscussing details about your em ployers or you r job.
Willingness
Willingness involves an eagerness to accept responsibilities and to
face new cha llenges. You should be enthusiastic about your work.
Willingness also involves ta king the initiative and doing what needs to
be done without a lways having to be told. Workers who a re capable
of working well with minimum supervision a re highly valued by
e mployers.
•
1 1.12 Attributes of good office workers
Exam tip
Make sure that you can
distinguish between the
following terms:
• traits
• qualities
• attributes
• attitudes
• skills.
Deportment and grooming
Whereas in some cou,-itries deportme nt refers to the way a person
stands and walks, in the Caribbean it means a pe rson's behaviour or
manners. One aspect of good deportment is courtesy. Be polite in
your dealings with all persons. Make it your habit to greet persons
on entering a room: Learn how to introd.u ce yourself to strangers
you meet in the course of your work. Use expressions such as Please,
Thank you, I am son·y, How may I help? and You are welcome.
Another aspect of deportment is good grooming. Remember
that your appearance creates a first and lasting impression. Good
grooming also improves self-confidence. Ensure that your appearance
is neat and consistent with the requirements of your workplace. If a
uniform is used, conform to a ll the requirements. When dressing for
business ensure that your back, chest, feet, abdomen and unde1wear
are covered. Frayed, torn, wrinkled or dirty clothing should never be
worn. Pay careful attention to personal hygiene.
Activity
Prepare a checklist of skills, attitudes and attributes that you can use to
evaluate yourself. Rate yourself honestly. Note the areas in which you need
to improve and work on them consistently until they become engrained .
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I can read and understand written materials,
such as instructions, letters and reports
I can use written sources of information, such as
n~wspapers, magazines and encyclopaedias
I can identify and summarise the main points
from lengthy documents
Self-esteem and confidence
Self-esteem is the extent to which a person values him- or herself.
Positive self-esteem includes having a high sense of self-worth, pride
and self-respect. Self-confidence is a person's belief in his or her own
abilities. Both qualities are closely related. Positive self-esteem and
self-confidence will enable you to look and perform at your best in
the workplace. All the a ttributes discussed previously in this unit
reflect the level of your self-esteem . Successfully manifesting these
attributes will he lp to boost your self-confidence.
1.13 Human relationships in the office 1
Test yourself
Key points
The term 'attribute'
refers to the qualities
or characteristics of a
person.
Attributes of a good office
worker include:
• regularity and
punctuality
• a positive work ethic
• integrity, honesty and
confidentiality
• willingness
• good deportment
-• self-esteem and
confidence.
1 Differentiate between each of the following:
a A skill and an attribute
b Self-esteem and self-confidence
2 Explain the meaning of the following attributes:
a Deportment
b Integrity
3 You work in an office that allows personnel to 'dress down' on Fridays.
Several of the workers are choosing to dress inappropriately.
a What attribute is not being displayed by these workers?
b How can inappropriate dressing have a negative impact on the
business?
c State THREE standards that should be observed when choosing
clothes to wear to the office.
4 Discuss, with the use of examples, the importance of a good work ethic.
1. 13 Human relationships in the office
OBJECTIVES
By the end of this unit
you should be able to
assess the value of good
human relationships to
office efficiency, as well as
the importance of good
relationships with:
• supervi sors
• colleagues
• internal and external clients.
In the previous unit you learned about the skills, attitudes and
attributes that are desirable for office workers. Many of these are
designed to help you develop and maintain good relationships with
colleagues, supervisors and customers. The term ' interpersonal
relationship' refers to the interactions, associations or connections
between two or more persons. The workplace relationship is not
primarily concerned with socialising with supervisors, colleagues or
clients away from the workplace. Instead, it is about maintaining
positive, mutually respectful, productive interactions with these
persons in the performance of work-related tasks.
Good interpersonal relationships in the workplace promote desirable
outcomes, such as:
.
• increased productivity
• improved perso nal effectiveness
• "achievement of organisational goals
• effective teamwork and collaboration
• increased worker motivation
• prevention of conflict and confusion
• reduced work-related stress.
A business suffers when there are bad interperso nal relationships in
the workplace. While some conflict is unavoidable, persistent and
unresolved conflicts can lead to undesirable outcomes, such ·as:
• increased worker ~bsenteeism
• poor communication
a
1 1.13 Human relationships in the office
1 List THREE positive and
THREE negative qualities
that Stephanie displayed.
2 What poor decisions did
Stephanie make?
3 Suggest THREE ways in
which Stephanie could
have prevented this
conflict.
4 How can the business
be affected by the
deterioration of the
relationship between
Stephanie and her
supervisor?
5 Prepare a list of SIX
tips that Stephanie can
follow to maintain good
relationships with her
supervisor.
You can learn a lot about
workplace relationships from
some movies. For example,
the comedy The Devil Wears
Prada (2006) shows how one
employee successfully built
a good working relationship
with an unreasonably
demanding supervisor.
l
•
•
•
•
loss of productivity
increased wastage of time and resources
high numbers of workers leaving the job
workplace violence and bullying.
T he following case studies are designed to help you assess the value of
maintaining good relationships in the workplace. Read each case study
several times. Do additional research on each issue. Relate the concepts
that you learned in previous units when handling the questions.
Case study 1 Relationships with supervisors
When Stephanie Mayer first started working as an office assistant with AOC
Enterprises Limited she was eager and enthusiastic. She was determined
to prove herself a valuable employee, so she willingly accepted additional
duties and responsibilities. She eventually found that she had more work
than she could manage and was unable to type some essential documents
before they were due. She told her supervisor that she had placed them on
her desk the previous evening, but apparently someone had moved them.
When reprimanded by her supervisor, she became offended and reminded
him of how much she usually does for the business. She withdrew her
enthusiasm and began complaining that her boss was ungrateful.
The supervisor is the person to whom a worker is directly
accountable. They are usually responsible for:
• orientation and training of new employees (see U nit 8.3)
• assigning work d uties and explaining how these duties should be
performed
• establishing and maintaining effective teamwork
• motivating the staff
•· evaluating and rewarding performance (see Unit 8.4)
• resolving complaints
• ensuring staff welfare (see Unit 8.5)
• initiating disciplinary procedures (see Unit 8.6)
• providing opportunities for employee development and
advancement.
Case study 2 Relationships with colleagues
David Ragbir is fun to be around and can often be found talking with coworkers. His colleague Sherrie Kennedy tells her best friend Amber about a
personal problem. Amber suggests that Sherrie should seek David's advice.
Sherrie later hears about the matter from other co-workers. David denies
that he betrayed her confidence. Kimberley Wills has been dating David for
the past six weeks. She assumes that Sherrie is jealous of their relationship.
She begins shunning Sherrie and making critical remarks about her. Today
David, Amber, Kimberley and Sherrie are assigned to work as a team to
develop an advertising campaign for an important client.
ID
1.13 Human relationships in the office 1
An internal client is an e mployee or depa rtment that receives goods
o r services produced elsewhere in the organisation as inputs to do
their work. To maintain good r elationships with interna l cl ients
employees must:
• understa nd that jo bs are interrelated
• communicate effectively in a timely ma nne r
• cooperate with each othe r to achieve business goals
• agree on work processes, procedures, timelines and expectatio ns
• solve proble ms promptly and effectively.
Activity (Case study 2)
1 Why is it essential
to maintain good
relationships with
colleagues in any
workplace?
2 Identify at least THREE
causes of conflict in this
work environment.
3 Discuss what can be done
by each of the persons
mentioned to resolve the
conflict.
4 Suggest guidelines that
all the team members
should follow in order to
successfully develop the
project, using the following
headings:
Case study 3 Relationships with internal clients
Karishma Chang is an internal client of the sales department, receiving
daily records that she must organise and store in filing cabinets. She must
also calculate daily transaction figures. She is upset because Mikhail
Stone, one of the most productive sales clerks, is consistently late with
his documents. As a result, Karishma often has to work overtime to meet
her deadlines. She is completely fed up and plans to tell him off for his
inconsideration. To make matters worse, Mrs Hunte, the new supervisor,
is not as accommodating as Karishma's previous boss. Mrs Hunte has
already made many changes, including the introduction of new records
management software, and has stated that she is planning many more
innovations in the months ahead. Karishma is frustrated and feels
overworked and underappreciated.
Activity (Case study 3)
1 What is meant by the term 'internal client'?
2 Discuss what can be done to maintain good relationships with their
internal clients by:
a Desirable attitudes
a Mikhail
b Communication
b Karishma
c Anger management
d Conflict avoidance and
conflict resolution
e Team building
---------
Exam tip
You should be able to
discuss the impact of
interpersonal relationships on
the business, not just on the
individuals concerned.
3 State the consequences for the business if internal client relationships
are not improved.
External clients are the individua ls and organisations that use the
goods and services produced by a business. They pay for products and
services, providing revenue to keep th e business going. Businesses
must e nsure customer satisfaction. You will learn more about this
important issue in Unit 11.
Case study 4 Relationships with external clients
Shelby Stephens, an administrative assistant with Reliable Equipment
Supplies Limited, has been asked to assist in the general office because
several staff members are ill with the flu. Mr Phipps comes in, upset about
the non-delivery of parts that were ordered four weeks ago. It takes some
time for Shelby to locate the relevant records. She sees that there is a sixweek wait period for products ordered from abroad. She tells Mr Phipps
that he must wait at least two more weeks. She walks away to attend to
another customer, muttering that he should read his contract and get his
facts straight before complaining. Mr Phipps reports Shelby to the manager,
stating that she was not courteous.
II
1 1.13 Human relationships in the office
Activity (Case study 4)
1 Why is it important to maintain good relationships with external clients?
2 Identify TWO ways in which Shelby failed to be courteous, explaining
what she should have done in each instance.
3 Identify THREE factors that might have contributed to Shelby's lack of
courtesy. What steps can the manager take to ensure proper customer
service?
4 Prepare a list of at least FIVE guidelines that Shelby should follow for
building good relationships with external clients.
(
(
Key points
Good interpersonal
relationships are essential
to the success of a
business.
All persons in a business
should be committed
to promoting good
relationships.
Proper communication,
respect and consideration
for others are essential
for maintaining good
relationships.
II
Test yourself
1 Define the following terms:
a Interpersonal relationships
b Internal clients
c External clients
2 Explain why it is important to maintain good relationships with:
a Colleagues
b Supervisors
c Internal clients
d External clients.
End-of-unit multiple-choice - Unit 1
1
Which of the following is NOT a main function of
the office?
Structured questions
C
Advertising information
Jennifer has just graduated from high school and
applied for a job as a file clerk at Jamaica Business
Solutions Ltd. In preparing for an interview she was
told that she must have the relevant skills of literacy
and numeracy, as well as possessing the required
altitude and attributes of office personnel.
D
Preserving information
A
Explain the meaning of the terms 'literacy' and
'numeracy'.
B
Suggest TWO other relevant skills that Jennifer
may be required to have.
C
Discuss TWO attributes that all office personnel
should have.
D
Describe THREE desirable attitudes for office
workers.
A
1
Coordinating information
B Disseminating information
2
3
4
5
If information is disseminated, what happens to it?
A
It is altered
B
It is distributed
C
It is destroyed
D
It is stored
What are the basic skills and/or knowledge required
of all employees in office jobs?
A
Skills of numeracy and literacy
B
Maintaining good working relationships
C
The ability to use application software
D
All of the above
Which of the following equipment offers duplicating
capabilities?
I
Photocopier
ii
Risograph
iii Facsimile machine
iv LCD projector
A
i and iv only
B
i, ii and iv only
C
ii and iii only
D
i, ii and iii only
Lydia has just printed a letter for her supervisor.
On delivering the letter she realises that the ink has
smudged. Identify the type of printer that Lydia has
used.
A
2
Tom Jones has just been employed at an
organisation in the records management
department. His first assignment is to process the
company's sales figures for that month. Advise
him on THREE activities that are involved in the
processing of information.
3
Explain how the office supports the following
activities in a business that manufactures furniture:
4
A
Purchase of materials for making the furniture
B
Production of the furniture
C
Delivery of the furniture to customers
A successfully run office is very important for the
functioning of a business.
A
Discuss THREE reasons why healthy staff
relationships are important.
B
Stale THREE ways in which a breakdown in
office relationships can affect a business.
Inkjet
B Dot-matrix
C
Laser
D
Impact
• I
OBJECTIVES
By the end of thi s unit
you should be able to
describe the various
means and c hannels of
o ral communication used
in the office.
Did you know ... ?
The ability to communicate
effectively is one of the
biggest factors that
determines success in a
business.
'I
I
J
Communication is the process whereby information is transmitted
from a sender to a receiver and is understood as it was intended.
Communication may be classified in various ways, for example,
formal or informal, official or unofficial.
• Formal communication is related to the form~.l organisational
structure and conforms to the official rules and lines of authority
of the o rganisation. Formal communication may be done via
meetings, reports, policy stateme nts and so on.
• Informal communication is linked to the social relationships that
exist among persons. It may be simply a discussion over lunch or a
chat at the water coole r.
• Offici al communication is communication via the established
organisational structure, in keep{ng with the policies and practices
of the business. It can be in written form, such as a letter or
employee ha ndbook, in visual form, such as an organisational
chart, or in oral form, such as at a staff meeting.
• Unofficial communication involves all communication that does
not come through the official communication process. It includes
gossip, rumours and discussion. among friends or associates.
Sometimes communication is classified according to the channel o r
means by which the message is transmitted: oral, written, electronic
a nd visual. In this unit we will focus on oral communication. Oral
communication involves the use of the spoken word.
Interviews
An interview is a conversation between two or more persons in which
the interviewer asks the questions to which the interviewee responds.
Of course, the interviewee can also ask questions. You would
doubtless have seen interviews during news programmes and talk
shows. Interviews may be informal chats o r they may be formal and
carefully structured. Interviews are useful for finding out how persons
think a nd feel about an issue. For example, a firm may decide to
inte rview custome rs to nod out how satisfied they are with the goods
and services provided. Interviews allow the opportunity to ask followup g1.'l esti_ons according to the responses obtained. On the other ha nd,
interviews may be time-consuming to pla n and conduct.
Although an inte rview is a form of verbal communicatio n, nonverbal messages, such as personal appearance and deportment, also
communicate a great deal of information.
\
2.1 Oral communication in the workplace 2
Steps in doing an
interview
One of the most common types of interviews,. and one in which you
will almost certainly participate, is the job inte rview. You will learn
more about this type of interview in Unit 3.5.
You must conduct at least
ONE interview in order to
complete your school-based
assessment.
1 Decide what you want to
find out.
2 Determine who is best
able to provide the
information and make sure
that they will be available
at an appointed time.
3 Prepare the interview
questions. Avoid asking
questions that can be
answered by saying 'Yes'
or 'No'. Instead, develop
questions that will elicit
detailed responses and
that allow the interviewee
to answer iri their own
word s. For example,
instead of asking 'Do you
agree with ... ?' ask 'How
do you feel about ... ?' or
'What do you think will be
the impact of .. .?'
4 Test the questions by
performing practice
interviews and make
necessary changes.
5 Conduct ihe interview,
taking note of the
respondent's responses .
(Be sure to obtain consent
if you want to tape the
interview.) Do not forget to
thank the interviewee for
accommodating you.
Figure 2.1.1 Job interview
Meetings and conferences
A mee ting is a gathering of persons, usually for a specific,
predetermined purpose (Figure 2.1.2). Several types of.formal
meetings are conducted in the business environment, including:
• staff meetings
• departmental meetings
• general mee tings
• a nnual general meetings
• board and committee meetings.
Meetings will be discussed in de tail in Unit 6.
6 Transcribe (write out) the
interview.
7 Analyse th.e information
obtained.
8 Write up what you
found out, making
recommendations if
necessary.
Figure 2.1.2 Meeting
■
(
2 2.1 Oral communication in the workplace
A conference is a large meeting where there are usually presenters
who are assigned to speak on specific topics. A conference is
a formal event at which people have consultations, discussions
and presentations, with the aim of coordinating, exchanging and
disseminating information (Figure 2.1.3).
Figure 2.1.3 Conference
Radio and television
Radio and television are used by organisations to reach large
numbers of persons. Advertising via these media, called commercials,
is now a part of our everyday lives. Infomercials are a relatively
new and increasingly popular trend in business advertising. An
infomercial is a long commercial that is designed to convince
the viewer to buy the advertised product. Infomercials are most
often used for new or unfamiliar products. The viewer can use the
telephone and a credit card to make purchases and the items are
shipped directly to the buyer.
Some organisations, such as banks and credit unions, use television
to entertain and inform their customers while they wait. Some.may
broadcast existing television channels, whereas others may play
specially prepared advertisements that have been recorded on DVD.
Telephone
Exam tip
You should be able to select
the most appropriate form of
communication for a given
business situation.
ID
Telephones are considered a standard business communication
device. Telephones are used for communicating with suppliers,
customers and personnel. Proper techniques for business telephone
use, as well as specialised telepho ne equipment, are discussed in
detail in Units 2.9 to 2.11.
2.2 Electronic communication 2
("'
Key points
The term 'channel of
communication' refers
to the means by which a
message is transmitted.
Test yourself
1 Identify FOUR means of oral communication.
2 Differentiate between an interview and a conference.
3 Which type of communication is observed in each of the images below?
a
Communication can be
classified in various ways,
such as:
• formal
• informal
• official
• unofficial.
b
Oral communication
includes:
• interviews
• meetings and
conferences
• radio and television
• telephone.
C
4 State which type o( oral communication is best suited for each of the
following situations:
a To discuss 1mprovemen oflnestaffcITTYteen
b To select the most suitable worker for a new position
c To inform the public about improvement to a particular product
d To contact customers on a day-to-day basis
f 2.2 Electronic communication
OBJECTIVES
By the end of this unit you
should be able to describe
the various means and
channels of electronic
communication used in the
office.
Electronic communication is the transmission of information that has
been transformed to digital code, usually by a computer. There are
several forms of electronic communication, including those detailed
below.
Teleconferencing
Teleconferencing makes use of telecommunications technology to
allow participants in two or more locations to speak with each other.
A teleconference is a group call, using telephone or computers,
in which all participants are able to speak with each other.
Teleconferencing saves time and money because participants do not
have to travel to meet. Skype is a popular software that allows users
to teleconference free of charge via the internet.
2 2.2 Electronic communication
Did you know ... ?
Sometimes online wikiencyclopaedias contain
incorrect information. This is
because any user can post or
edit articles. It is best to verify
the information by checking
other sources.
Computers in
communication
The increased availability and
use of the internet has made
it possible for organisations
to use a wide range of
web-based communication
methods, such as discussion
board s, biogs and wikis.
Participants in a te leconfere nce must speak slowly and distinctly
to ensure that all persons understand what is being said. This is
particularly important if participants speak with different accents.
E quipment failure or technical difficulties can affect the quality of
teleconferences.
Videoconferencing
Videoconferencing allows users in distant locations to see each
other (Figure 2.2.1). E ach participant in a videoconference uses a
microphone, speakers and a video camera attached to a computer
(not visible in picture). Videoconferencing has all the advantages
of teleconferencing, plus a few more : it is possible to share visual
information,- such as PowerPoint slides; non-verbal messages, such as
gestures and facial expressio ns, can be communicated; participants
find it more interesting to be able to see as we ll as hear each other.
A discussion board or
message board is the online
version of a bulletin board.
Members of the discussion
forum are able to post
messages such as questions
or comments. The messages
that are posted in response
to a question or comment are
called threads.
A blog is an online journal
(the word 'blog' is a
contraction of 'web log'). The
author of the blog frequently
posts items such as articles,
commentaries, web links and
photographs.
-A wiki is a website that
allows users to create and
edit entries. A wiki is useful
for collaborative work.
For example, a team may
prepare a report on a project
by using a wiki in which each
member can add information.
Figure 2.2.1 Videoconference
Internet and the World Wide Web
Many persons think that the internet is the same as the World Wide
We b, but the terms actually have different meanings. The internet
is the physical connection of computers by telecommunications
media, such as cables and satellite signi:IIS. T he World Wide Web is
one type of software that allows you to access the information on the
internet. Many businesses use the internet to publish websites that
feature their pi·oducts and services, as well as information about the
organisation. Customers are able to purchase products online and
access after-sales services.
Online meetings and instant messaging
Online meetings allow computer users to use the internet to
exchange typed messages instantaneously in a written conversation.
The messages may be saved on the computer or printed to provide a
D
2.2 Electronic communication 2
permanent record of what was written. Alternatively, individual text
messages may be sent instantaneously by using cellular telephones,
the internet or the organisation's internal computer network. There
are a number of free online message and chat programs, including
Windows Live (MSN) Messenger, Yahoo! Messenger and AIM
Express.
Electronic mail
Electronic mail (email) is the electronic alternative to sending
correspondence through the postal services. It allows information
to be sent quickly anywhere in the world, from one computer to ·
another, via the telecommunications system. In fact, email is so fast
that conventional mail is now called 'snail mail'. Most email messages
consist of text, such as letters, memos or brief notes. However, you
can also send non-text files, such as video clips, graphics and sound
files, as attachments.
How to compose an email
The terms Cc and Bee
developed when typewriters
were used to prepare
documents. Cc means
carbon copy, whereas Bee
means blind carbon copy.
1 The email box is set up with spaces in which you place specific
information, such as, 'To', 'Subject' and so on (Figure 2.2.2).
2 Type the recipient's email address into the 'To' box. You can send
an email message to several recipients at the same time. The boxes
labelled Cc and Bee are used to send copies to the additional
persons. Type the email addresses of the other recipients into the
'Cc' box if you want the primary recipient to know to whom copies
are sent. Othe1wise, type their addresses in the 'Bee' box.
G4
Send
rn
~
Cut
Paste
»
It)
Undo
Check
fflTo:
fflCc:
Subject:
v~I ~ I-.., B I J1 A.., I ~
=:= i
' A_ria_l _ _ _ _ _
~
J
Exam tip
When you are asked to
compose a message such
as an email you must use the
information that was provided
in the stimulus section of the
question.
Figure 2.2.2 Email 'New message' box
II
2 2.2 Electronic communication
3 'Type your message in the space provided.
4 Click 'Send' and your email will be sent simultaneously to all
recipients. The email program automatically inserts the date and
time the message was sent.
When composing emails you should:
• keep paragraphs and sentences brief, but be clear
• use correct grammar and spelling
• proofread your message before sending it, to ensure that it is free
from errors
• use the line labelled 'Subject' to type a brief clear statement that
indicates the content of the email
• avoid using fancy fonts (typing styles) because the recipient may
have different email software that is unable to display the font you
have chosen.
Scanning
As you learned in Unit 1.8, a scanner is used to create a digital copy
of a document that can be manipulated o n the computer. Scanning a
document to file involves creating a digital copy that can be saved on
a storage medium such as a hard drive or flash drive. A document can
also be scanned to email as an attachment.
You should already know that optical character recognition (OCR) is
the conversion of printed text to electronic format that can be edited
on the computer. Optical ma1·k recognition (OMR) is the use of a
special device to 'read' the marks .that are made on a form. You might
be most familiar with the use of OMR to correct the answers that are
shaded on a multiple-choice answer sheet.
Telephone and facsimile
Telephones are considered a standard business communication
device. Tele phones are used for communicating with suppliers,
customers and personnel. Proper techniques for business telephone
use, as well as specialised telephone equipment, are discussed in
detail in Units 2.9 to 2.11.
·
Figure 2.2.3 Fax machine
A facsimile (fax) is the transmission of a scanned document via
the telephone by using a fax machine (Figure 2.2.3). The sending
machine scans the document and converts it to a code called a bitmap
image. This code is sent as electrical signals on the telephone line.
The receiving machine interprets the signals representing the bitmap
and prints the image on paper.
·
Telecommuting and telemarketing
Telecommuting is working from a remote area by using equipment
such as computers, telephones and fax machines (also see Virtual
offices in Unit 1.6). Telemarketing is the use of telephones to reach
potential customers with information about the goods and se1vices
offered by a business.
·
2.3 Written communication 2
(" r
r
r-
Key points
Electronic communication
is the transmission of
information with the
use of computer and
telecommunications
technology.
Electronic communication
includes:
• teleconferencing and
videoconferencing
• telecommuting and
telemarketing
• computer, internet,
World Wide Web and
email
• telephone and facsimile
• scanning : scan to email
and scan to file. It may
require the use of optical
character recognition
and optical mark
recognition.
Test yourself
1 Give an example when each of the following types of electronic
communication may be used·.
a Telecommunication
b Videoconferencing
c Teleconferencing
d Facsimile
2 Explain the difference between:
a OMA and OCR
b Telecommuting and telemarketing
c The World Wide Web and the internet.
2.3 Written communication
OBJECTIVES
By the end of this unit
you should be able to
communicate information
in writing using the
various forms of written
communication.
Memoranda
A memorandum (memo) is a brief written message used for
communicating within an organisation (Figure 2.3.1). It is one of the
most widely used forms of written business communication. The tone
of a memo is less formal than a letter. It does not begin with 'Dear
. . .' or end with 'Yours . . .' A memo can be used to:
• convey information
• ask for information
• give instructions
• make reports.
A memorandum consists of the following basic parts: the heading, the
message or body, the authorisation initials and notations, if needed.
T here may be variations in the formatting and design of a memo
from one organisation to another.
The heading is made up of:
• the label 'Memorandum' or 'Memo'
• 'To:' followed by the name or designation of the addressee
• 'From:' followed by the name or designation of the sender
•
2 2.3 Written communication
• the da te
• a reference (optio na l)
• the subject heading.
The body is made up of the message, which should be brief and to
the point. A mem o is usua lly concerned with a specific topic. The
first sentence states the reason for the me mo. T he next sente nce o r
sentences give the informatio n or instruct ions. T he fin al sentence
states what is required of the reader, for example, a meeting,
feedback or confirmation.
• The heading
'MEMORANDUM' may be
typed in close or expanded
capital letters, with or without
underscoring. It may be
in bold font, with a larger
size than the rest of the
document.
• There is no address for
either the sender or the
recipient.
• There is no salutation or
complimentary close.
.• A memo is not usually
signed, though sometimes
the writer may authenticate
the memo by adding their
initials.
• If another document is
sent with the memo, this
is usually indicated by an
enclosure notification.
• If the memo is being sent
to more than one person,
a circulation list identifying
who is to receive the memo
is typed at the bottom.
MEMORANDUM
TO
'Aduke Haynes
FROM
Jason Riviera
REF
JR2 13-09
DATE
12 March 2012
SUBJECT
Preparation for induction programme
The induction program for new recruits w ill be conducted from
19 to 23 March 2012. P lease meet w ith me in my office at 9.45am
tomorro~ for a brief discussion on the preparation necessary for this
programme.
Please bring along the actio n plan and review from last year 's
programme. These should be useful in helping .us address the
challenges and issues that arose.
JR
Cc
Khellye Simms·
Adesh Ramrattan
Figure 2.3.1 Memorandum
Did you know ... ?
In many businesses, emails
are now used instead of
memos. W~y do you think
emails are gaining popularity?
ID
Written reports
A report is a document that communicates the findings of some
ind ividual o r group accurately, clearly and logically. It .is prepared
after an investigatio n is done . A report sho uld be written in a fo rmal
style and sho uld conclude by recommending a course of actio n.
So metimes you may be giyen an ou tline of the structure in which the
report s ho uld be prepared. For examp le, the CSEC syllab us o utlines
2.3 Written communication 2
the structure of the report that you must prepare for your schoolbased assessment.
G uidelines for preparing a report:
• Make sure you know exactly what you are being asked to do.
• Gather the required data and information. This may be original
data that you gather or data you obtain from seconda1y sources;
such as books, magazines and the internet. Write down all sources
of data and information.
• Sort, study, arrange and analyse the material.
• Create an outline of the main headings and briefly note what will
come under each heading.
• Write a draft of the report.
• Proofread your draft. Always consider to whom your report is
directed. Do not use technical words unless you can reasonably
expect your readers to know what they mean. Prepare a list of
definitions of technical terms if these are unavoidable.
• Avoid wordiness - do not repeat yourself merely to extend the
length of your report. If you find that your report is too short, do
additional research or further analysis of your statistical data.
• Produce the finished document.
' Newsletters
A newsletter is a regularly published document that may be used
to communicate information about organisational developments,
achievements, events, profiles of staff members and so on. Staff
newsletters may be produced within the organisation, by making use of
the computer and photocopier or risograph. Newsletters can be both
entertaining and informative. The newsletter may also be distributed
electronically via the organisation's intranet or on its website.
Questionnaires
A questionnaire is an instrument used in research designed to .
gather information from correspondents. It is a form that is
designed to get information by presenting a set of specific questions.
You will be required to design a questionnaire for your school-based
assessment.
Notices
A notice is an announcement that contains information about an
event, such as date, time and venue (also see Unit 6.2).
Press releases
A press release is a document that is sent to the media . It is designed
to stimulate the interest of a journalist or reporter.
2 2.3 Written communication
The Tippy Toes School of Dance
245 Ba llet Boulevard, Montserrat
Phone/Fax 555 5665 emailtippy@carib.net
NEWS RELEASE
Embargo:
For Release Upon Receipt
From:
Sherry Ann Phill Principal
20 August 2012
TIPPY TOES REIGNS AT DANCE FIESTA
The Tippy Toes Dance School has just returned from a highly successful appearance at the
International Dance Fiesta held in Bridgetown, Barbados from 13 to 19 August 2012.
Tippy Toes students participated in six different categories:
Classical (Individual)
Classical (Pairs)
Classical (Group)
Modern (Group)
Interpretative (Individual)
Open
The participants returned home with four gold medals, three silver and t wo bronze. DeeDee
Clement was judged the most outst anding female dancer, while Saadiq Barrow received the award
for the most outstanding male. Shaun 'Mocha' Clement was awarded the prize for the most
promising student.
(END)
Encs
Four photographs of dance troupe
Figure 2.3.2 Press release
Advertisements
An advertisement is an announcement in the print, broadcast or
electronic media. Advertis·ements are used to attract attention,
persuade an audience, influence actions and decisions and/or provide
information.
Exam tip
Activity
When preparing a
memorandum, make
sure to include the critical
requirements, such as date,
subject line, recipient (To)
and sender (From).
Evaluate an _advertisement for a product on the radio, on television, or in a
newspaper or magazine.
1 What is its purpose?
2 What are THREE techniques used to achieve its purpose?
3 Design your own advertisement for a product or service of your choice.
2.4 Business letters 2
Test yourself
Key points
Some forms of written
business communication
are:
• memoranda
• reports
• newsletters
• questionnaires
• notices
• press releases
• advertisements.
1 a Explain the term 'memorandum' and say when it is used.
b Explain the main differences between a letter and a memorandum.
2 Write a memorandum to the principal of your school about difficulties
students experience with transportation to and from school.
3 a What is a report?
b Give TWO instances when it is necessary to write a report.
4 Describe THREE forms of written communication that a business can
use to communicate with external clients. Clearly identify the structure
and purpose of each one.
(Other forms of written
communication will be
discussed in later units.)
You must learn and follow
the guidelines for the
preparation of each form
of written communication.
2.4 Business letters
OBJECTIVES
By the end of this unit
you should be able to
communicate information in
w riting using letters.
Despite develo pments in communication media, the le tter remains
one of the most popular forms of business communication. Letters
are writte n to give and to obta in information. A business letter:
• conveys information from the writer to the intended reader
• give s the r eader the opportunity to reread complicated ma terial as
ofte n as necessary
• provides a pe rmanen t, written record of business communication
• confirms oral communication
• is some times used as a substitute for oral communication
• pe rmits p eople to send and r eceive informa tion wh~n it is
convenient for them
• a llows the write r time to think about and research a topic or
situation be fore writing or responding.
Letter layouts
Many organisations have the ir own 'house styles' for the layout and
punctuation of business letters. Generally, business letters are typed
using a full-blocked layout in which all the letter elements are aligne d
to the left-hand side (Figure 2 .4.1). T his modern layout is simple and
effective.
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-
2 2.4 Business letters
I
I
I
2
3
4
OJ
6
I
a
G
CID
DQ
Figure 2.4.1 Full-blocked layout
Letter elements
Did you know ... ?
The aim of the full-blocked
style with open punctuation
is to increase efficiency by
reducing the number of
keystrokes that must be made
when typing the letter.
1 Sender's address (letterhead)
2 References
3 Date (there may be an attention line between the date and the
receiver's address)
4 Receiver's address (inside name and address)
5 Salutation ( opening greeting)
6 Subject heading
7 Body of letter (in which the subject matter is discussed)
8 Complimentary close
9 Signature blo_ck
10 Designation
11 Enclosures, copy notation, postscript
Open punctuation is used with the full-block layout. The open
punctuation style omits all unnecessa1y punctuation. Full stops or
commas are not used in the addresses, salutation or complimentaiy
close of the letter. Full stops are removed from abbreviations.
How~ver, punctuation must be used in the body of the letter.
Business letters leave a lasting impression on the recipient, so it
is necessary to ensure that they are as accurate, clear and neat
as possible. The following are some general guidelines for the
preparation of business letters:
• Letters should be neat and clean.
• They must be free of errors in grammar, punctuation and spelling.
2.4 Business letters 2
• They should be printed on good quality A4 or letter-size paper for
long letters and AS for short letters.
You will sometimes be required to compose correspondence from
skeleton notes and dictation. Skeleton notes are brief outlines of a
document to which you must add details. The following guidelines
will help you when you need to compose a business letter :
• Letters should always be courteous.
• Your letters must have a clearly defined and stated purpose.
• They should deliver information clearly, completely an~ concisely.
• Always communicate the feeling that you care about the reader
and want to work together to solve a problem or discuss a concept.
• Write positively and with confidence.
The purpose of your business letter will influence its content. Table
2.4.1 shows some common types of letters.
'fype of letter
Application
Guldellnes
Purpose
To introduce
yourself to a
prospective
employer
• Emphasise what the applicant has to offer the employer.
• Give information on experience, qualifications, skills, personal qualities,
interests.
• State the purpose of the letter (e.g. I wish to apply for the position of .. . as
advertised in ...).
• Provide background information on the applicant.
• Request an interview.
Note: Sometimes the background information is enclosed on a separate
document called a resume or curriculum vitae (CV). A resume is typed on a
single sheet of paper. It summarises the applicant's background information in
tabular form .
Enquiry
To obtain
information from
the recipient
• State your purpose.
• List your questions or requested action.
• Encourage a promp t response.
Response to
enquiry
Order
To supply
information in
response to an
enquiry
• Answer the questions as clearly and concisely as possible.
Written to a
manufacturer,
wholesaler or
retailer to request
products or
services
• State if the order is placed in response to an advertisement.
• If you cannot answer the questions, explain the reasons and offer to assist with
alternate methods.
• Close by expressing willingness to assist where possible .
• Include all the information the recipient will need to identify the product, such
as:
• product name
• model number
• d imensions
• capacity
• material
• q uantity
• price .
(cont.)
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-
2 2.4 Business letters
lype of letter
Sales
Purpose
Guidelines
To sell a product
or service
• Provide clear, specific information that will explain to the reader why they should
be interested in buying your product or service.
• Attract the reader's attention.
• Describe the product or service you are trying to sell.
• Convince your reader that your claims are accurate by providing facts.
• Give the reader opportunities to learn more about your product or service:
enclose a catalogue, provide the reader with a phone number, a website
address, or some way for them to seek out information on their own.
Complaint
To convince the
reader that you
have a valid
complaint and to
obtain a desired
response
• State the issue briefly but clearly.
• Identify the product or service.
• Explain the problem.
• Propose a solution.
• End the letter respectfully.
• Make sure that your tone is positive and courteous , not quarrelsome,
demanding or insulting.
Response to a
complaint
To tell the
customer how
you plan to
handle the
situation
• Make sure to express how much you value the customer's business and
concerns.
• Show that your company is fair and reasonable.
If you can solve the customer's problem:
• Express your regret about the situation.
• State the correction you will.make.
• End on a positive note by encouraging future business w ith your company.
If the customer does not have a valid complaint:
• Thank the customer for bringing it to your attention.
• Express regret (not an apology).
• Explain clearly and concisely why your company is not at fault.
• Clearly state that your company is denying the request and supply reasons
for this denial. (Note: make this statement at the end, because if it is at the
beginning, the customer may not finish reading the letter.)
• End on a positive note. Try to create goodwill for future business transactions,.
For example, you may offer a special discount on the next transaction.
Table 2.4.1 Types of letters
Composition of correspondence
Composing the letter
Focus on the purpose of writing the letter and the results you want to
achieve. Use one paragraph for the body of the letter if the heading .
and references clearly state the subject matter and the message is brief
and simple. Where more than one paragraph is needed, the opening
introduction should acknowledge receipt of any correspondence to
which it is replying and briefly state what the letter is about.
The fo llowing statements may be used to start the introductory
paragraph:
• I have received your letter dated XXXX in which . . .
2.4 Business letters 2
• Referring to your letter dated XXXX, we are pleased to inform
you that ...
• Thank you for your enquiry of .. .
• I am seeking information on .. .
• Please could you confirm the following:
• Thank you for your prompt reply ...
• With reference to your advertisement in the .. . (state name of
newspaper) of ... (state date published), I would like to ...
• Please accept our apologies for ...
• I regret that ...
• I have investigated the above matter and ... (Note: you must use a
subject line to identify the matter being addressed.)
The main paragraph gives further information and sets out the
information being conveyed. It should be brief, without being either
inadequate or abrupt. This means that it should give all required
information without being so long that it puts off the reader.
The closing paragraph sets out the conclusion and often indicates
some follow-up action. Always try to end on a positive note, but avoid
sounding insincere.
Exam tip
You are expected to use an
appropriate letter format,
including the date, an
appropriate salutation and
complimentary close.
-
=
Some suggested conclusions are listed below:
• If you have any further queries, please feel free to contact me.
• If you re.quire any further information, please do not hesitate to
contact us.
• We look forward to hearing from you in the near future.
• Do let me know if there is anything else I can do for you.
• I look fmward to hearing whether my application has been
accepted.
• Please accept our assurance that matters will be sorted out as soon
as possible.
• I look forward to a quick resolution of this matter.
• Should you require any further assistance, please do not hesitate
to contact us.
• We.remain committed to h,elp in whatever way we can.
• We look fmward to receiving ... by XXXX.
Test yourself
Key points
Most business letters are
prepared in a full-blocked
layout.
Letters should be as
accurate, clear and neat
as possible.
1 a Describe the full-blocked letter layout.
b Explain why most organisations choose this format.
2
Identify TWO common types of business letters.
3 a Explain the purpose of a letterhead.
b Design a letterhead for a company of your choice.
4 Write a letter to the manager of a fast-food chain to complain about poor
customer service.
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-
2.5 Stationery
OBJECTIVES
By the end of this unit you
should be able to select
appropriate types and sizes
of stationery for a variety of
uses.
The term 'stationery' is generally used to refer to a wide range of
materials, including paper, envelopes, writing implements, staplers,
glue and so on. Sometimes the term is used specifically to refer
to paper that is cut to a size for writing letters, and appropriate
envelopes. Various types of paper and envelopes are available for
office use.
Types of paper
Bond
The name 'bond' was originally given to a paper that was used for
printing bonds and stock certificates. Bond paper is a fairly thick,
high-quality paper that is now used for letterheads and other printing
purposes. Its right side is identified by a gloss or watermark. Bond
paper is available in a variety of colours.
Parchment
Parchment is a heavy, expensive, high-quality paper that is greaseproof and water-resistant. Parchment is made from the skins of goats
or other animals. Most of the parchment paper now available is a
cheaper vegetable parchment. It is made by passing a sheet of pure
fibre paper through a bath of sulphuric acid and then washing and
drying it very thoroughly.
No carbon required paper
No carbon required (NCR) paper is a set of sheets that are
chemically treated so that a copy is made on the second and
subsequent sheets without the use of carbon. It is used with impact
printers for making multiple copies of invoices and forms.
Copier paper or laser paper
This is available in lightweight grades of good quality. It is used for
copying correspondence and documents. This paper is available in
several standard sizes. Two commonly used sizes are letter-sized and
legal-sized. Letter-sized paper measures 216 X 279mm (8.5 X 11 in.).
Legal-sized paper measures 216 X 356mm (8.5 X 14in.).
Sizes of paper
The most commonly used system for paper sizes is the International
Organization fo1· Standardization (ISO) A Series. Table 2.5.1 lists
the most commonly used ISO sizes of paper and the purposes for
which each size is used . Use this table as a guide for selecting the
appropriate stationery for various purposes.
2.5 Stationery 2
Uaes
ISO
name
Measurement
(mm)
Measurement
(In.) (approx.)
A4
210 X 297
8.3 X 11 .7
Business letters, reports,
circular letters, minutes,
agenda, chairperson's agenda,
specifications, long memoranda,
manuscripts, tabular work, forms,
programmes, display work,
specifications, itineraries, legal
documents, invoices, literary work,
advertisements
AS
148 X210
5.8 X 8.3
Short letters, short memoranda,
notices, agenda, invitations, debit
notes, credit notes, invoices,
circulation slips, forms, vouchers,
advertisements
A6
105 X 148
4.1 X 5.8
Postcards, index cards, petty cash
vouchers, credit notes, debit notes,
invitations, telephone message
pads, complimentary slips,
receipts, agenda
Table 2.5.1 ISO sizes of paper
Envelopes
. Activity
Identify and explain
FIVE types of paper and
envelopes. Source samples
for each, fold documents and
place in each envelope.
Envelopes come in a wide range of sizes, styles and colours. Usually
an organisation matches the quality of their envelopes with their
correspondence paper.
Envelope sizes
T he C series of envelope sizes was designed to accommodate ISO
A paper sizes. For example, a CS envelope will accommodate an
AS sheet fl at or an A4 folded o nce. The B and D L series offer some
alternatives to the C series.
Use Table 2.5.2 to guide your selection of appropriate envelopes for
your assignments.
Name
Measurement
(mm)
Measurement
(In.) (approx.)
Content format
C4
229 X 324
9 X 12.75
A4 sheet flat; A3 sheet folded once
cs
162 X 229
6.38 X 9
AS sheet flat; A4 sheet folded once
DL
110 X 220
4.32 X 8.69
A4 sheet folded in thirds; AS sheet
folded in half lengthwise (this
envelope is similar in size to the
CS/6)
Table 2.5.2 Envelope sizes
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2 2.5 Stationery
Envelopes and labels
It is now the practice to address envelopes using open punctuation.
This means that there is no comma at the end of each line and no full
stop at the end of the address (Figure 2.5.1).
The following are general guide lines for addressing envelopes:
• The name and address m~st be typed parallel to the longer side of
the envelope.
• The address occupies the lower half of the en.velope, so the first
line of the name and address should be typed halfway down. The
entire address should occupy one-third _o f the envelope.
• It is easiest to use a full-blocked format for addressing envelopes.
• The town should always be typed i_n closed capital letters.
• If a postcode is used, this should be typed last, with no
punctuation or underscoring.
• Each part of the address should be typed on a separate line.
• Use single or 1.5 line spacing. If the address is very short or if a
large envelope is being used, type in double line spacing.
• If the letter is to be identified as ' Confidential', 'Personal',
'Urgent' or some similar designation, this should be typed above
the name. There should be at least one clear line space before
the name. This information may be typed in all capitals or initial
capitals in bold format or underscored.
Many businesses avoid
addressing envelopes by
using window envelopes that
have a cut-out opening that
allows the address :
he
letter to be seen.
_
Exam tip
j
1
Read the exam instructions
1
carefully. Think about what
l
is being asked for in each
==
question.
........
URGENT
Mr Jason Poon Chow
Human Resource Officer IV
Ministry of Labour
375- 7 Riverside Plaza
BRIGHTSTOWN
.
' (
Key points
Types of stationery
include:
· • bond
• parchment
• NCR (no carbon
required) paper.
Sizes of paper include:
• letter
• legal
• A4
Figure 2.5.1 How to address an envelope
Test yourself
1 Complete the table below with sizes of papers and envelopes.
Name
• A5
• A6.
Measurement
(In.)
A7
Sizes of envelopes
include:
• DL
• C4
• C5.
Measurement
(mm)
Address labels, index cards,
complimentary slips
297 X 210
C4
Uses
Legal documents, balance .
sheet, financial statements,
trqvel schedules
9 X 12.75
2.6 Visual communication 2
2 State the main properties of each of the following types of paper:
a Parchment
b Bond
c NCR
3 List FIVE guidelines that should be followed when addressing
envelopes .
.6 Misual communication
OBJECTIVES
By the end of this unit
you should be able to
communicate info rmation
visually.
Visual communication is the transmission of messages in a form that
can be looked at. Visual communication includes charts, graphs,
signs and body language. It also includes multimedia presentations
using text, images and sounds (see Unit 1.8). Visual communicatio n
forms such as charts, graphs and signs are effective means of
communication because they attract attention more readily than
many lines of text or numbers. If a graph or chart is well constructed,
the viewer is usually able to understand the message mo re quickly
and remember it for longer.
j
J
Pictures
Pictures such as drawings or photographs are used to enhance the
appearance and clarity of printed communication. Businesses use
pictures for a wide variety of purposes, including:
• advertising products and services
• reporting events
• introducing managers and staff.
Charts
A chart is a drawing, usually with some text, that presents
information briefly but explicitly. Unit 1.4 showed how charts m ay
be used to represent the structure of an organisation. A flow chart
may be used to show the sequence of steps in a process. Usually
photocopiers and risographs have flow charts that depict the steps to
follow when printing from a computer, changing toner, clearing stuck
paper, replacing stencil sheets and so on (Figure 2.6.1).
Graphs
A significant amo unt of business communication involves the
presentation of numerical data. Most people find it easier to
interpret figures, make comparisons and see trends when the data
2 2.6 Visual communication
belong to each age group (Figure 2.6.4). A histogram can be used
only when the data are of continuous measure, such as age, weight,
time, temperature or height. If the data are not continuous, then
a bar graph consisting of separate columns is used. A histogram
usually has strong visual impact and consequently is very popular for
representing business statistics. However, it is difficult to read exact
values from histograms because the data are grouped into categories.
Age distribution of employees of Step 'n' Go Ltd
5040 30 20 10-
o~- - --1-----+---- ~,-------+-----+Under20
Figure 2.6.4 Histogram
21- 30
31-40
41-50
51- 60
Bar graphs
A bar graph is drawn using rectangular bars that va1y in height
in proportion to the values they represent. A bar graph is used to
represent discontinuous data, such as model of vehicle, country or
product colour. If two sets of data are to be compared, a double bar
graph may be used (Figure 2.6.5). The columns on a bar graph may
be rearranged by size, a lphabetically and so on, because there is no
specific order to the categories. Bar graphs are visually appealing,
especially when colour is used effectively.
Step 'n' Go Ltd regional car rentals 2008 and 2009
4500- - - -- - - - -- -- - -- - - -
■ 2008
■ 2009
3500
3000
2500
2000
1500
-
Did you know ... ?
1000
Spreadsheet programs
such as Microsoft Excel can
automatically produce a wide
variety of graphs.
500
0
North
Figure 2.6.5 Bar graph
South
East
West
Central
2.6 Visual communication 2
Pie charts
General guidelines for
constructing graphs and
charts
• Ensure that the data you
present are meaningful.
• Do not misrepresent data
by leaving out important
features or by deliberately
distorting the relationship
between elements.
• Use the title to c learly state
what the chart represents.
• Be brief, but avoid
abbreviations when
labelling charts.
• Always label the x and y
axes and state the units
in which the data are
measured.
• Ensure that your graph is
large enough for the data
to be clearly represented.
• Use contrasting colours for
adjacent items, but avoid
placing red and green
next to each other (some
people are born with red/
green colour blindness).
• Ensure that your
background does
not detract from the
impact of the chart; as
far as possible, use
neutral colours for the
background, such as
white, light grey or pale
tan.
A pie chart is a circle that is divided into segments that vary in size
according to the quantities they represent (Figure 2.6.6). Pie charts
are used to show the way in which a single whole quantity is divided
into its composite parts. The whole pie represents 100 per cent and
each sector represents a percentage. The total number represented
by the chart should be indicated. A pie chart is visually appealing
and the reader is usually able to interpret the data easily. Do not use
a pie chart if you must represent more than five or six quantities.
If a pie chart has too many sectors it looks messy and is difficult to
understand. It is difficult to interpret the chart if the sectors are very
close in size. Another limitation of the pie chart is that it does not
present exact nume rical data . Also, a pie chart cannot be used show
changes over time.
Types of vehicles rented by Step 'n' Go in 2009
l
• I
Total number of vehicles = 15,843
Figure 2.6.6 Pie chart
Signs
Exam tip
You should know the
difference between written
and visual communication.
Signs are often used to communicate with customers and personnel
about business, products, safety and other issues. An effective sign
can be read and understood from a distance . The message should be
simple and unambiguous, with correct spelling and good grammar.
The sign must attract the atte ntion of the intended audie nce through
effective use of colour, material and design (see Figure 2.6.7).
H a ndwritten signs should be neat and legible.
2 2.6 Visual communication
•
Figure 2.6.7 Signs
Body language
Visual communication also includes body language, the transmission
of messages by facial expression, gestures and posture.
r
r
r
r
r
Key points
Visual communication
includes:
• pictures, charts and
graphs
• signs
• multimedia
presentations
• body language.
-
ff"
Test yourself
1 a List FOUR types of graphs or charts.
b State what kind of data is best represented by each type of c hart or
graph you have listed.
2 State the difference b~tween a histogram and 'a line graph.
3 Discuss, with the use of examples, the importance of visual
,communication in the busine_s7 environment.
,,
t
• ••~-
~
'
1
•
,.
•
:"'
•
I
•
It,.
_
'
2. 7 Communication flows and barriers
OBJECTIVES
By the end of this unit you
should be able to describe
the forms of decisionmaking structures, as well
as barriers that may affect
the means and channels of
commur:iication used in the
office.
Flow of communication
Communication in an organisation can flow in three major directions:
upwards, downwards and laterally. {Jpward communication is the
transmission of information from subordinates to their supervisors.
Downward communication is the flow of information from ·
supervisors to subordinates. Upward and downward communicatio n
are sometimes called vertical communication. Horizontal (lateral)
communication is the movement of information among persons who
are at the same level in the organisation. The grapevine is informal
spoken comm unication that exists throughout an organisatio n.
Effective internal communication encourages and facilitates the flow
of informatio n in all directio ns. Table 2.7.1 shows some methods of
downward, upward and lateral communication.
Downward
Upward
Lateral
Employee handbooks
Status reports
Team meetings
Operating plans and
procedures
Face-to-face interactions
Committees ·
Staff meetings
Face-to-face interactions
Suggestion boxes
Coffee breaks
Staff meetings
Surveys
Notes
Face-to-face interactions
Discussion boards
Social activities
Job descriptions
Performance reviews
Table 2.7.1 Methods of communication
Communication climate
An open communicatio n climate is o ne that encourages the free
exchange of ideas and information. On the other hand, a closed
. communicatio n climate restricts the free exchange of foformatio n
and promo tes secrecy.
Communication may be internal or external.
Internal communication occurs within the organisation:
• between managers and employees
• among -employees
• among managers.
Both managers and employees need effective communicatio n skills.
If internal communication is not effective it can lead to conflict
· and confusion . E mployees can become resentful, f rustrated or
unsure of exactly what is required. Managers will be unable to get
the information necessary to successfully direct the activitjes of the
organisatio n. The business will suffer as productivity will decline.
External communication occurs:
• between the business and its customers
• between the business and its suppliers
a
-h!-
2 2.7 Communication flows and barriers
• between the business and governmental or regulatory agencies
• between the business and its distributors.
Poor external communication results in a negative public image,
decreased business activity and loss of profits. Customers may
take their business elsewhere. Suppliers might be late with their
deliveries or fail to deliver entirely. The organisatio n can run into
legal problems because of its fa ilure to obey regulations, such as the
prompt payment of taxes, employees' social security contributions
and so on.
Forms of decision-making business structures
Good decision-making is essential for the success of any organisation.
Decisions are made on the basis o( the information that is received
by the managers and directors. It is therefore important to maintain
timely, effective communication between the key decision-makers
and the different sections of a business.
Many decision-making structures exist in the business world. These
structures can be either centralised or decentralised in format. In a
centralised decision-making structure, all the persons who have the
ultimate responsibility, authority and control are to be found in one
central office, usually called the headquarters. In a decentralised
decision-making structure, there are top decision-makers in each
section of the business.
CEO
Senior
management
Middle
management
Workers
Figure 2.7.1 Pyramid business structure
Decentralised structures include the following types:
• Pyramid: There are different levels of management (Figure
2.7.1). There is a manager with limited authority for each section
or department (middle management) . The middle managers are
under the control of the senior managers, who in turn are directed
by the chief executive officer (CEO).
• Independent: Each business is managed separately. This structure
is found in large companies that comprise a number of smaller
businesses under the direction of a holding company. The holding
company owns and controls the smaller businesses. For example,
2.7 Communication flows and barriers 2
Guardian Holdings Limited is the holding company for Guardian
Life Limited, Bancassurance Caribbean Limited and Guardian
Properties Limited. In multinational organisations each country
division may operate as an independent business unit. For
example, BPTI, a petroleum company that operates in 'TI-inidad,
is a part of the multinational organisation called BP (British
Petroleum).
• Matrix: This is a very flexible structure in which teams are formed
to handle a specific task and a team leader is appointed. At the
end of the project the team is disbanded. Matrix structures are
found in companies that work on different projects, for example,
advertising firms.
Barriers to communication
Communication is a process that involves four major elements:
the sender, the message, the channel and the receiver. The
communication process begins when the sender expresses the
message (idea or information) in some code, such as the spoken
word, a drawing or writing. T he message is then transmitted via a
channel or medium to the receiver. U sually the receiver provides
some kind of feedback to indicate that the message has been received
(Figure 2.7.2).
/
Did you know ... ?
)
Sometimes barriers to
communication are referred to
as noise.
Figure 2.7 .2 Cycle of communication
Barriers to communication may occur at any stage in the process. A
barrier is any condition that interferes with the effective transfer of
ideas or information.
Barriers to communication include:
• biases, ~uch as cultural, personal or perceptual bias
• language and semantics, such as speaking a different language,
•
2 2.7 Communication flows and barriers
differences in understanding the meanings of words ( e.g. slang),
spelling, punctuation and grammatical errors
• literacy skills
• time constraints, such as insufficient time to properly prepare,
receive or interpret the message.
Tobie 2.7.2 identifies several other types of barriers.
'lype of barrier
Examples
Physical/
environmental
Noisy equipment, crowded workspaces, loudly
speaking colleagues, closed doors, isolated offices,
distance
Physiological
impairments
Deafness, poor eyesight, speech impairment, tiredness,
feeling unwell
Technical
Malfunctioning equipment, electrical outages,
unfamiliarity with the equipment used
Emotional/
psychological
Mistrust, suspicion, resentment, lack of self-confidence,
anger, stress
Cultural
Lack of understanding of the beliefs and practices of
other religious or ethnic groups, stereotyping, prejudices
Sociological
Differences in gender, age, education, attitudes, values,
status
Table 2.7.2 Barriers to communication
Overcoming barriers to communication
The sender sho uld:
• have sufficient knowledge of the subject about which they are
communicating
• be well prepared and organise tho ughts before communication is
attempted
• have effective communication skills, such as knowledge of the
language, adequate vocabulary, appropriate tone, good body
language
• be simple and direct - people are confused by long, complicated
sentences or unfa miliar words
• avoid being angry, judgemental or arrogant
• learn as much as possible abo ut the audience in order to avoid
misunderstandings o r giving offence
• ask the receiver's opinion and invite feedback
• choose the right time to deliver the message, for example, it is
unwise to schedule a meeting to discuss office efficiency at 2.30 o n
a Friday afternoon
• dress appropriately.
The message should:
• be well organised and free of errors
II
2.7 Communication flows and barriers 2
• be long enough to adequately communicate the idea, without
being so long that it bores or confuses the receiver
• contain only relevant information.
The channel should:
• be appropriate for the message - simple messages may be
transmitted orally, whereas long or complex messages should be
transm itted in writing
• be appropriate to the audience, for example, even the bestconstructed graph is useless if the receiver is unable to see
• be free of failures, distortions or interruptions
• be appropriate, so the sender and receiver can both use the
equipment as needed
• use more than one communication medium, where possible, especially
for important messages- for example, follow up a telephone
conversation with an email summarising what was discussed.
Exam tip
Ensure that you can clearly
explain the term 'barriers to
communication'.
-
The receiver should:
• listen actively and attentively without criticising the sender
• give feedback, asking for clarification if necessary
• avoid interrupting the speaker
• be open-minded, not allowing understanding to be hindered by
preconceptions or hasty judgements
• ignore distractions and focus on the message being delivered.
Activity
Each of the following pictures illustrates a potential barrier to communication in the business environment. Identify
the barrier and suggest ways in wh ich it may be overcome.
1
2
3
4
CD
2 2.8 Selecting communication media
Test yourself
1 a List THREE barriers to effective communication.
Key points
b Suggest TWO ways of overcoming each of the barriers you have
The flow of
communication refers to
the direction in which the
message is transmitted,
such as:
listed.
2 You have been asked to present a discussion on effective
communication to a group of fourth form business stude1~ts. Outline the
points that you will present.
3 Within an organisation there are both formal and informal organisational
• upwards from
employees to
. supervisors and
managers
• downwards from
_management to
employees
• laterally to persons at
the same level in the
organisation.
structures. Identify TWO office situations in which there are:
·
a Formal organisational structures
b Informal organisational structures. ·
A barrier is any condition
that prevents effective
communication.
.
.
-..
: --
.
-
-
-
.
. 2.8 se,1,cti·ng-~·communication media
OBJECTIVES
By the end of this unit you
should be able to identify
factors affecting the
selection of communication
media.
·
By now you will have learned about the wide range of media that
exists for the transmission of business communication. A number of
factors should be considered when choosing the medium or channel
to be used for conveying a message.
Degree of urgency
T he urgency of communication refers to the time period within which
the message must reacb the recipient for action to be taken and/or
feedback delivered. Time is a major consideration when selecting
the medium to be used in transmitting a message. Face-to-face oral
comm~nication allows for the fastest feedback, because the recipient
can answer immediately, both verbally and through non-verbal cues,
such as facial expression or body posture. If a message needs to
reach a remote recipient immediately, then electronic media such as
telephone, facsimile or email will be best.
Genre
The genre or nature of the message influences the choice of media.
Communication must be written if a permanent record is necessary
..
2.8 Selecting COITlf!lUnicatl,on media 2
or if it is required by law. For example, governmental agencies may
require a response in writing within a given peri_od of time. The
amount of detail or length of the message also influences the choice
of media. Long or complicated information should be written. This
allows the recipient ~o reread the information as many times as
necessary in order to understand it.
Level of confidentiality
The different types of communication media offer varying levels of
privacy. A sealed letter that is hand-delivered to the recipient is one
of the most confidential means of communication. Electronic mail ·
is not usually confidential. The email is usually duplicated as it goes
from the seryder to the recipient via the internet. The recipient can
forward the email to a third party, although it is unethical to do so
without the consent of the original sender. Several communication
media are intended to be public, for example, signs and
announcements over the radio, television and public address systems.
Location and time zone
Messages may be transmitted within an organisation (internal
communication) or to persons on the outside ( external
communication). It may be within the country or region (local) ,
international or global. Most of the internal communication in a
business may be done face-to-face or by using memoranda (memos).
External communication may be achieved via telephone, letters, ·
printed publications or electronic media.
You doubtlessly know that when the West Indies cricket team is
playing in Australia, cricket fans must listen to the live coverage
while it is still night in the C~ribbean. This is because Australia is in
a different time zone. What if you needed to communicate with a
Japanese company? What will be the best time to make a telephone
call or set up a video conference? It is clear that time zones will
influence your selection of communication media (Figure 2.8,1). The
use of time zones will be explored more fully in Unit 7.3.
Cost, efficiency and effectiveness
Cost is the price that must be paid for a good or service. Effectiveness
\
is the ability to achieve the intended purpose, whereas efficiency is.the ability to do a task without wastage of time, effort or resources.
All communication comes at a cost. Even oral communication costs,
because the time taken to communicate may have otherwise been
spent producing goods or services for sale to earn a profit. Businesses
usually choose the method of communication that best achieves the
desired results at the most affordable cost.
-
2 2.8 Selecting communication media
(
Did you know ... ?
Unauthorised persons
can access, copy and
change emails if they are
not protected by special
programs called encryption
software.
Figure 2.8.1 Time zones influence communication choices
h
Level of personal focus
Exam tip
You must be able to provide
sound reasons to justify your
choices or recommendations.
The desired level of personal contact will logically influence the
choice of communicatio n media . Direct oral communication allows
for the highest level of personal focus, with telephone calls being a
little less personal.
Targeted audience
The targeted audience must always be considered, because
communication is ineffective if it is not received and correctly
understood by intended recipient. Where the audience is small and
nearby, direct oral communication may be the preferred medium.
For larger audiences, a meeting, conference teleconference or
videoconference might be necessary. The recipient's access to,
and ability and willingness to use technology is also important. For
example, sending a fax is wasted if the recipient does no t have a fax
machine.
Key points
The main factors to
be considered when
selecting communication
media are :
• degree of urgency
• genre '(oral, written,
visual)
• level of confidentiality
• location and time zone
• cost, efficiency and
effectiveness.
Test yourself
1 You work with a cosmetic company that sells its pr9ducts throughout the
Caribbean . You must decide on how best to deliver a detailed report on
the development of a new,product to your distributors.
Explain how each of the following factors will influence your decision:
a Target audience
b Location
c Cost
d Degree o f urgency
2 Which communication medium wi ll you select? Give THREE reasons for
your selection.
2.9 Telephone techniques and etiquette
. OBJECTIVES
By the end of this unit you
should be able to describe
the proper techniques
for receiving and relaying
messages by telephone.
The telephone is one of the most frequently used communication
media in the business world and is often the first means of
contact between an organisation and its customers. It is therefore
important to know how to make and receive telephone calls with
professionalism, enthusiasm, courtesy and respect.
Telephone etiquette when making a call
Before the call
E nsure that you have the correct number. Jot down the main ideas
you intend to communicate and plan how you are going to say it.
Making the call
Choose your time wisely. Avoid calling during the first 15 minutes
of your recipient's workday, at lunchtimes or just before closing
hours. Begin by identifying yourself. For example, you may say
'Good morning. This is . . . With whom am I speaking?' Briefly but
clearly state the purpose for which you are calling. If you expect the
discussion to be long, find out whether the person has the time to
speak. If not, make an appointment to call back at a more convenient
time.
Making appointed calls
Make sure you call at the arranged time. Identify yourself and remind
the recipient of the previous conversation and the reason for calling.·
If you will not be able to carry on the conversation as planned,
reschedule the appointment.
Handling a wrong number
If you reach a wrong number, be sure to apologise before hanging up.
Reaching an answering device
If you reach voicemail or an answering machine, you should leave
your name, organisation, telephone number and a brief message.
Suggest a time when you can be reached.
It is usually considered
impolite to make telephone
calls before 7.00am and after
9.30pm.
During the call
Take notes of the main ideas. Actively listen and give feedback, such
as 'I see' or 'I understand', to let the other person know that you are
listening.
Ending the call
Summarise what was discussed to ensure that yqu are in agreement.
Clearly state what follow-up action will be taken, such as whether you
.
-
2 2.9 Telephone techniques and etiquette
intend to call again. Thank the person for making the time to speak
with you and then say 'Goodbye'.
Telephone etiquette when answering a call
Answer promptly
Techniques for handling
rude callers
• Always speak slowly and
calm ly.
• Do not raise the volume or
pitch of your voice.
• Do not get angry as well.
• Choose your words
carefully to avoid
increasing the anger.
• Be polite and sincere.
• Express a willingness to
resolve the situation.
• If you are not authorised
or qualified to handle the
prbblem, put the caller
through to a supervisor.
Callers are usually discouraged if the telephone rings for a long time
before it is answered and might take their business to a competitor. If
possible, answer before the third ring.
Show courtesy and tact
Figure 2.9.1 illustrates some appropriate statements you can use.
Greet the caller courteously. For example, you may say, 'Thank you for
calling TechSolutions Limited. This is Anika. How may I help you?'
If the called person is not available, be tactful. For example, do not
say, 'She is in the ladies' room right now'. Instead, you may state, 'She
has stepped out of the office. Would you like to leave a message?'
Remember that nearby conversations can be overheard even if you place
.your hand over the receiver. Instead, press the hold or mute button.
Tone of voice
Use a friendly, positive tone when answering the telephone. Let your
voice 'smile'.
Exam tip
You should be able to explain
terms such as 'telephone
'etiquette' and 'smile with your
voice'.
Always be prepared
You should know in advance how to use the features of the telephone .
system with which you are working. For example, if the call is dropped
while you are attempting to transfer it to another department, the
Thank you for
calling. How may
I help you?
May I say who is
calling please?
....-:.--....
May I please put
you on hold?
I need to transfer
your call to ...
May I please
do so?
-
Hello. Thank you
for waiting.
You are welcome. Is
there anything else
we can do for you?
Figure 2.9.1 Some appropriate statements
Thank you for calling.
We appreciate your
business.
It is a little difficult
to hear you. Can
you speak a little
louder please?
2.9 Telephone techniques and etiquette 2
Techniques to prevent
misunderstandings
• Always speak slowly,
distinctly and audibly, but
not monotonously.
• Do not do other tasks while
handling telephone calls.
• Repeat the information to
ensure that it is correct.
Spell out names. Call out
the individual digits of
numbers, for example, say,
'Five hundred and fifteen;
5-1-5.'
• Take notes.
• Do not chew gum or eat
whi le handling calls.
If you make a mistake
• Acknowledge the mistake
and apologise.
• Act promptly to correct it.
• Ask if you can help in any
other way.
• Write down the date and
time the mistake was
made and the action taken
to resolve it.
• Learn from the mistake so
that you will not repeat it.
Your language is
important
• Avoid slang.
• Do not use highly technical
language unless you are
certain the other party is
familiar with the terms.
Key points
Telephone etiquette
is the set of rules that
govern how calls should
be handled.
You must be able to make
and receive telephone
calls with professionalism,
enthusiasm, courtesy and
respect.
caller might think that you have rudely hung up. Always have a
message pad with sharpened pencils or functioning pens.
Place a caller on hold
A caller may be placed on hold while you take another call or locate
the requested person or info rmation. If you need to do this, ask
permissio n first. Yo u might say, 'It will take me a moment or two to
. . . May I please put you o n hold?'
Return to the call as promptly as possible. If there is a delay of more
than 30 to 40 seconds, get back to the caller and explain the reason
for the delay. You may say, 'Thank you for holding. I am sorry but . . .
is not·yet available. Do you want to hold a little longer or would you
prefer to leave a message?'
Transfer calls
Always inform the caller if you are going to transfer the call to
ano ther line. You might say, 'This matter is handled by the . . .
department. Please hold while I transfer your call.' Do no t transfer
calls unnecessarily. Some times the caller requires the answer to a
simple question for which you have the answer. H owever, do no t give
information if you are not authorised to do so or if you are not sure
of its accuracy.
Screen calls
Screening is done to select calls that managers or supervisors must
handle. Yo u might ask, 'May I ask who is calling please? What is the
purpose of your call?'
If the issue can be efficiently handled by someone else, you might
say, 'I am confident that . . . will be able to help you. Please let me get
them for you.'
Or, after putting the caller o n hold, tell the requested person the
name of the caller and the reason for the call. If the call will be taken,
make the transfer. If the call is declined, you may say, 'I am sorry, but
. . . is not available. May I please take a message?'
Test yourself
1 Explain the following terms as they relate to telephone calls:
a On hold
b Transfer
c Screen
2 State FIVE attributes that a good telephone receptionist should have.
Briefly explain the importance of each attribute.
3 Prepare a list of 1O guidelines that should be followed when answering
telephone calls.
-
2.10 Using directories, switchboards and
pagers
OBJECTIVES
By the end of this unit you
should be able to describe
the use of directories,
switchboards and paging
devices.
Directories
A directory is a listing of names, addresses and telephone numbers,
arranged in alphabetical order according to surname or the name of
the organisation.
Telephone directory
Activity
Look at a copy of your local
telephone directory. Into what
sections is it divided? How are
the sections identified? What
is found in each section?
Figure 2.10.1 Electronic directories
Tasks performed by
switchboard operators
• Answer calls from
inside and outside the
organisation
• Greet callers and provide
information
• Assist callers with
determining which office
they wish to speak to
• Route calls to appropriate
extension
• Screen calls
• Record, relay and route
messages
• Keep records of calls
placed and charges
incurred
(cont.)
Telephone directories or phonebooks are printed by the telephone
service providers. Many telephone companies also publish copies of
their directories on the internet. The listings in a telephone directo1y
may be colour-coded according to the following classifications:
• White pages: alphabetic listings of the customers' names followed
by the telephone numbers
• Blue or green pages: governmental agencies
• Yellow pages: businesses classified according to the products and
services offered
• Grey pages: a reverse directo1y in which entries are arranged
according to the telephone numbers.
A telephone directory may also provide additional information,
including:
• information on the services provided by the telephone company
• instructions on how to access and use telephone features
• listings of important numbers for emergency services, utilities,
hospitals and crisis management agencies
• maps showing area codes
• advertisements.
Company directories
Companies may compile directories showing the names, numbers and
email addresses of their personnel. These directories help employees
to contact their co-workers quickly and efficiently. The company
directo1y may be distributed in printed form, on CD or on the
computer network.
Personal directories
Many office workers find it beneficial to compile a personal directory
with frequently used numbers. A personal directory may be kept on
index cards and stored in an index box or rotating index (Rolodex) or
in a specially designed book. Pocket-sized electronic directories
allow the user to store, update, manage and access numbers quickly
and easily (Figure 2.10.1). Most of them also include additional
features, such as a calculator, alarm clock, calendar, planner and
electronic dia1y.
r
2.1O Using directories, switchboards and pagers 2
• Operate communication
systems, such as the
telephone, computer,
switchboard and two-way
radio
• Page individuals to inform
them of telephone calls
• Place telephone calls
• Arrange conference calls
• Diagnose and resolve
basic problems involving
instrument and voicemail
operations
• Report any malfunctions
of switchboard equipment
or system to appropriate
persons
• Prepare clear, concise and
accurate logs, records,
and reports
Switchboards
Almost all large organisations, and many smaller ones, have
switchboards for their telephone systems. Switchboards are large
telephone systems that are used by businesses to accommodate a
number of telephone lines and extensions. Calls to the organisation
may be answered by a receptionist or operator, who then connects
the caller to the appropriate extension (Figure 2.10.2). Outgoing calls
may also be made through the operator, although direct dialling of
external calls is more common.
Requirements for
switchboard operators
• Have a pleasant and clear
speaking voice
• Be able to communicate
effectively, orally and in
writing
• Know correct English
usage, including spelling
and punctuation
• Understand and follow
written and oral instructions
• Be capable of working well
under pressure
• Be able to remain seated
for long periods of time·
• Learn and apply new
information required for
assigned projects and
responsibilities
• Use courtesy and
discretion in dealing with
sensitive situations
• Establish and maintain
effective working
relationships with staff
• Know office administration
practices and procedures,
including filing and
recordkeeping systems
(cont.)
Figure 2.10.2 Switchboard operator
Automated switchboards
Automated switchboards use a computer to detect inputs from both
voice and the telephone keypad. The caller is greeted by a prerecorded message and is guided step by step through the desired
transaction. Automated systems usually ask callers to press the
appropriate keys on the telephone. For example, the customer may
be told 'For sales press 1, for services press 2 . . . or to speak with an
agent press O'. More sophisticated systems use voice-recognition
programs to detect when certa in key words are spoken.
The telephone banking service now offered by some commercial
banks is an example of the use of automated switchboards.
Automated switchboards save time and money because fewer staff
are needed to handle the telephones. On the other hand, many
callers prefer to talk to a human instead of a machine.
I
2 2.10 Usiog directories, ,w;tchboards aod pagers
• Operate a computer and
other standard office
equipment
• Know basic practices and
procedures for telephone
systems administration
I'
Did you know ... ?
A pager is also known as a
'beeper' or 'bleeper' because
of the sound it makes.
Paging devices
A pager is a device used to send simple, short messages. Most pagers
allow messages to be sent in one of three ways:
• The sender can use a touchtone telephone to input a numeric
message, such as a telephone number.
• The caller may be supplied with a list of codes that represent
standard messages, such as 'Please call' or 'Your appointment is
cancelled'. Both the caller and the receiver must be clear about
what each code means. To prevent confusion, organisations
usually circulate lists of short codes to be used by their employees.
• The caller can ask the pager service operator to send a text or
numeric message. Usually the message cannot exceed a specified
number of characters.
Pagers have lost some popularity because of the availability of
cellular telephones. However, they continue to be used by persons in
essential se1vices, such as emergency and medical personnel. Pagers
use satellite signals to transmit their messages, rather than telephone
lines or cellular networks. Therefore, they work in areas where there
is no cellular service or cell phones are prohibited, and they are
reliable even during disasters.
Test yourself
Key points
A directory is a listing
of names, addresses
and telephone numbers,
arranged in alphabetical
order.
Switchboards are
telephone systems that
are used by businesses to
accommodate a number
of telephone lines and
extensions.
A pager is a device used
to send simple, short
messages.
D
1 · State FIVE kinds of information that may be obtained from a telephone
directory.
2 Identify the section of the telephone directory that you will use to find the
telephone number for each of the following:
a Ministry of Education
b Used-car company
c Your home phone number
3 The managers of CreatAd Consultants are considering using an
automated answering service to replace their telephone operator.
a What are TWO advantages of this change?
b What are TWO disadvantages?
c Write out a greeting that may be recorded for CreatAd's answering
system.
A significant proportion of business calls involves the leaving and
receiving of messages. Many times problems arise with this seemingly
simple process. These problems include:
• the message is not delivered to the appropriate person
• the message is incomplete or incorrect
• the message is delivered too late
• the message is misplaced
• the writing is illegible
• the message is confusing.
OBJECTIVES
By the end of this unit you
should be able to describe
the proper techniques
for receiving and relaying
messages by telephone.
1
Did you know ... ?
Some organisations use pre-printed forms fo r recording telephone
messages. A few samples are shown in Figure 2.11.1.
Inefficiencies with messages
can cost an organisation a
great deal of money as a
result of failed transactions
and disgruntled customers.
J
AM
PM
lime:
Date:
Follow-up Aciion~
Message:
Rec. By:
For:
Patient
Name:
C8Her:
Phone I :
1Pa1ienl
Aelafionsh!p
to Patient:
Cha.rt I :
can back
Initials:
I
=~oo:
AM DIWT,me
Yes can back
Requested: No Al:
PM
-
AM
PM
-~
For _ _ _ _ _ _ _ _ _ _ _ Date _ _ _ _ Time _ _ A.M.
PM.
,,:,i
II Phone Message
I
I
M _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ _ __ __ __ _
~ate _ _ _
_ _ Time _ _
_
M _
_
_
_
_ _
_
_
_
_
of _ _ _ _
_
_
_ _ _
_
Of _ _ _ _ _ _ _ _ _ _ _ _ _ __
Phone
Area Code
Phone - - - - - - - -□ Telephoned
□ Please call
□ Will call again
□ Came to see you
□ Wants to see you
□ Urgent
□ Returned your call
□ When possible
Message _ _ _ _ _ _ __
By: _
_
Number
Extension
Phoned
Returned
your call
Message _ _ _ _ _ _ _ _ _ _ _ _ __
Please call
Will call
again
Came to
see you
Wants to
see you
Signed
_
To (email)
Message
Time:
While you were out
~=======~II
~=======~I
I
Caller name: I
of (afflliation):I
phone:
D Telephoned
D Returned your call
D Will call back
D Urgent
D Pleasecall
D Wants to see you
I
Taken by: :J)~ j{;Jj,aAJ;t
Figure 2.11 .1 Pre-printed telephone message forms
2 2.11 Handling messages
Taking messages
Look at the telephone message forms in Figure 2.11.1. What
information will you have to fill out? The following steps should be
followed when taking messages:
1 Always have a pen and notepad or telephone message form close
at hand.
2 If the organisation has voicemail, ask whether the caller would like
to be transferred to this facility.
3 Ask for the caller's name, making sure you get the correct spelling.
4 Ask for the caller's telephone number, including area code and
extension (where necessary) .
S Write down the message, including what action is to be taken.
6 Repeat the message to the caller.
7 Fill in the date, time and your name or initials.
8 Place the message slip where the called party is sure to see it, but
folded so that it cannot be inadvertently read by a co-worker or
visitor.
9 Always pass on messages promptly. If you delay, the message may
get misplaced or you may forget.
------Activity
- - - - - - - - - - - - - - --
--
The following is a sample dialogue for taking telephone messages.
You: You have reached TechSolutions Limited. How may I help you?
Caller: May I speak with Mr Albert Davids please?
You: I am sorry. Mr Davids is not available right now. May I transfer you
to his voicemail or would you prefer to leave a message?
Caller: Oh! Just tell him that Carl Peters called.
You:
Mr Peters, may I please have your organisation's name and your
telephone number?
Caller: It is 868 221 7891. I am calling from TL Securities Limited .
You: That is TL Securities Limited and your number is 868 221 7891. Is
that correct?
Caller: Yes.
You: Should Mr Davids call you when he returns to the office?
Caller: Well , I will be at a meeting all afternoon. Maybe he should call
tomorrow morning before 10. If I do not hear from him by then, I'll
call again.
You:
I will ask Mr Davids to call Mr Carl Peters before 10.00am tomorrow.
Is there anything else you would like me to tell him?
Caller: Oh yes. Tell him to have the last report I sent handy when he calls.
You:
I will ask Mr Davids to have your last report with him when he
returns your call.
Caller: Thanks.
You: You are welcome. Thank you for calling TechSolutions Limited.
Goodbye.
D
2.11 Handling messages 2
Complete the message slip that may be prepared for this call by filling in
the form below.
Date
Time
12/03/2012
10.50am
Message
Action
□ Urgent
D When possible
-
For
D Telephoned
Rec'd by
D Returned your call
Caller
□ Please call
Of
D Will call again
Phone#
D Wants to see you
-
-
Voicemail and answering machines
Voicemail and answe ring machines are used to automatically
record messages when the called party is unavailable. An answering
machine is an external device that is attached to the telephone line,
whereas voicemail is a service that may be offered by the te lephone
company. The guide lines for using both systems are similar, so the
term 'voicemail' will be used in this unit to refer to all automated
answering services.
Voicemail is a computerised system for recording and storing
telephone messages. Voicemail automatically answers a telephone
call and then plays a pre-recorded message. The caller may choose
to leave a message that is stored on a computer to be accessed by
the called party. The recipient can access, delete, save, reply to or
fo1ward the message to a nother person.
Most voicemail systems come with a standard greeting. However,
it is best for the organisation, department or individual to record
a personalised greeting. If you must record a greetin·g, plan what
you will say and practise it until you are fluent. The recording
should include your name and the name of the department and/or
organisation, the days and times that you are available and a request
to leave a message after t he tone. You may a lso state an alternative
person to contact if the matter is urgent. Be courteous but brief. If
the greeting is too long, many callers will choose to hang up without
leaving a message.
Voicemail should be checked each day. If you receive many calls, it
may be necessary to check more than once per day. Have a notepad
available when retrieving your voicemail. Jot down the time of the
call, the name and organisation of the caller a nd the reason for the
call. Return calls within 24 hours. If you are unable to deal with the
issue immediately, call and let the person know when you will be _ .
available. Voicemail systems save only a limited number of messages,
so be sure to de lete older messages. It is disconcerting for a caller to
be told that the voicemail box is full.
2 2.12 Communication services 1
Leaving a voicemail message
Exam tip
You should be able to
compose an appropriate
message for a given
situation.
Apply the principles of telephone etiquette that you have already
learned when you are leaving a voicemail message. Remember
that the quality of your message will determine whether you get
a favourable response. Speak slowly and distinctly. Be brief and
to the point. Voicemail systems automatically cut off calls after a
predetermined period of time, so state your name and telephone
number first. State the date and time you called, then state the
purpose of your call briefly and clearly. State what you want the
· called party to do, then repeat your name and number.
Test yourself
Key points
Messages should be
accurately recorded and
promptly delivered.
Telephone etiquette
should be observed when
taking messages or using
voicemail and answering
machines.
1 The workers at Busy Business Limited often complain that they do not
receive all the messages that are left by callers. Furthermore, when they
do receive the messages, they are often late, incomplete or difficult to
read.
a What are THREE problems that can arise when messages are not
properly handled?
b Describe FIVE measures that can be put in place to ensure that
messages are properly recorded and relayed.
2 You have called a college in your area to find out about the after-school
technical training programmes they offer. Compose an appropriate
message that you can leave if you reach their answering machine.
2.12 Communication services 1
OBJECTIVES
By the end of this unit you
should be able to describe
the services offered by
telephone companies.
Telepho ne companies offer their subscribers a variety of call-placing
and billing options. T he subscriber is the person or business that
registers and pays for the telephone service.
Types of telephone calls
Local, long-distance and overseas calls
..
-'-'
Local calls are made to numbers within the same service area.
Some companies offer service plans with unlimited local calls at
no additional cost. Others charge a small fixed fee for each call,
regardless of its duration. Long-distance calls are made to numbers in
another service area but within the same country. T he rate for each
call varies according to the distance the called party is from the caller,
as well as the d uration of the call. International or overseas calls are
made fro m one country to another. T he rates vary according to how
far away the called country is from the caller. International calls are
usually the most expensive.
2.12 Communication seNices 1 2
Direct dialling and operator-assisted calls
Direct dialling is the process by which the caller inputs the number
of the called party using his or her telephone, without the help of an
operator. It is the most common means of making a telephone call.
On the other hand, an operator-assisted call is one that is placed
through a human or automated operator. Operator-assisted calls are
generally more expensive than those that are directly dialled.
So me organisations with a switchboard also have direct inward dialling
(DID). DID is a feature that allows the employees of a company to
have their own phone numbers and receive calls directly, rather than
through the operator or automated voice-response system.
Station-to-station calls
A station-to-station call is one in which the caller dials the desired
number without the assistance of an operator ( direct dialling). T he
caller does not specify who will answer the telephone. Station-tostation calls are auto matically charged to the telephone number from
which the call was placed.
Person-to-person calls
If a caller wishes to speak o nly to a specific person, then an operatorassisted person-to-person call may be made. The call is chargeable
only if the requested person accepts the call. Person-to-person calls
are billed to the caller's telephone number.
Collect calls
A collect call is o ne that is paid for by the receiving phone number.
Collect calls are made with the assistance of the telephone operator.
The operato r calls the desired number and ascertains whether the
receiving person is willing to accept the charges for the call. If the
receiving party refuses the charges then the call is terminated.
Toll-free calling
Toll-free calls are paid {or by the individual or cor poration that rents
the number, instead of by the caller. The number usually begins with
800. Toll-free calls are usually offered to encourage customers to
call the organisation. For example, companies that sell via television
advertisements may invite buyers to place their orders by calling a
toll-free number.
·
-
mMHIMl1
1
~
~ most countries business
subscribers must pay
higher telephone rates than
residential customers.
Conference calls
A conference call is one in which more than two persons participate.
Conference calls may be designed in several ways:
• The called parties may be able to listen to the caller, but not spea~.
• The first-called party may speak, but additional parties can only listen.
• All parties may bo th listen and speak.
-
2 2.13 Communication services 2
• The calling party must add the participants by dialling their numbers.
• The participants may dial in to the conference to add themselves.
Exam tip
-
You should be able to
describe the features
of the different types of
telephone call and state the
circumstances under which
they are used.
Key points
Services offered by
telephone companies
include:
• local, long-distance and
overseas calls
• station-to-station,
person-to-person and
collect calls
• conference calls and
videoconferencing.
.
Businesses use conference calls to reduce the time and money that
would be spent travelling to a meeting (see Teleconferencing in U nit
2.2). Three-way calling, a variation of the conference call, may be
available to home a nd office subscribers for a small monthly fee. A
three-way call may be placed by following four simple steps:
1 Call the first person and ask them to hold while you set up a threeway call.
2 Press the 'Flash' or 'Switch hook' button ( depending on the type
of phone).
3 Call the second person.
4 Press the 'Flash' or 'Switch hook' button again and begin speaking.
Test yourself
1 Explain the difference between:
a Station-to-station and person-to-person calls
b Collect and toll-free calls
c Long-distance and overseas calls.
2 List FOUR conditions under which a caller might seek operator assistance.
3 a What is a conference call?
b Describe a business situation in which a conference call would be
appropriate.
2.13 Communication services 2
OBJECTIVES
By the end of this unit you
should be able to describe
the services offered by
communications service
providers.
Telephone companies offer a wide range of services that are made
available to subscribers at an additio nal cost. Some of these services
are described below.
Telephone services
Speed dialling
Speed dialling allows the user to access and use stored telephone
numbers by pressing fewer keys. Each number stored in the system
is assigned a two- or three-digit code. The caller presses this code
instead of dialling the full number. Speed dialling significantly
reduces the time spent keying in telephone numbers.
Call waiting
Call waiting lets the user know that another person is t1ying to reach
the number while a call is in prqgress. The current call m,ay be placed
■
2.13 Communication services 2 2
on hold, while the new call is answered (see Unit 2.9 for guidelines on
proper etiquette for placing callers on hold).
Call return
Call return is used to access the number of the last person who called.
It is usually called 'Star sixty-nine' because in many countries it can
be accessed by pressing *69. However, the code for activating call
return is different in some countries. To automatically return the call,
the user presses 1 after pressing *69.
Call forwarding
Call f01warding is a se1vice that allows incoming calls to be diverted to
another number. Call fo1warding is used if the subscriber knows that
they will not be available at the first number for a period of tin1e. For
example, a worker on vacation may have calls automatically forwarded
to a co-worker's number. 11-avelling employees may have calls to their
office phones diverted to their cell phones. Call forwarding may also be
used to send calls to a second number if the called number is busy.
Caller ID
Caller ID enables the subscriber to find out who is calling before the
telephone is answered. The caller's telephone number is displayed on
a screen either on the telephone or on an attached display unit.
Cellular phones and text messaging
Persons now regularly communicate while travelling or in other
locations by using cellular phones. You probably have your own
cellular telephone. Cellular phones are also called mobile telephones
or cell phones. Cell phones are used by businesspeople to remain in
contact with their offices, customers and suppliers. Some cell phones
allow the user to browse the internet and send and receive faxes and
email.
Cell phones are also used to send text messages. Some cell phones
help the user to save the time and effort needed to compose
messages by providing a number of built-in messages ( also called
templates), such as 'I arrived safely' or 'Please call me'. Many cell
phones a lso feature multimedia messaging, enabling the user to send
pictures and video.
Phone cards and electronic top-up machines
Exam tip
You should be familiar
with the meanings of the
wide range of terminology
associated with telephone
communication.
-
A phone card, also called a calling card or telecard, is a small plastic
card that is used to pay for telephone calls instead of using cash or
having the call billed to the number from which the call is placed. To
usy the phone card, the user first dials the se1vice number and then
inputs the phone card identification number (called the PIN). The
caller then dials the desired telephone number when instructed to do
so. Phone cards are usually paid for in advance. However, in some
-
2 2.14 Postal and courier services
Did you know ... ?
Skype, a popular VOiP
provider, had more than 500
million registered users in
2010.
Key points
Services provided
by communication
companies include:
• call waiting, call
forwarding, voicemail,
speed dialling and caller
ID
• phone cards and
electronic top-up
machines
• cell/mobile phones and
text messaging
• VOiP
countries telecommunication credit cards are also available. A phone
card is a very convenient way to pay for telephone ca lls when the user
is away from the home or office.
An electronic top-up machine is used to automatically credit airtime
to cell phones. The customer inputs the phone number and the
amount to be credited and pays for the transaction. The machine
sends a call with this information to the telephone company and
prints a receipt showing the phone number and the amount that has
been credited. One advantage of using electronic top-up is that _there
is no need for plastic cards.
Voice over internet protocol
Voice over internet protocol (VOIP, also called internet telephony)
is the use of the internet for making telephone calls. Sounds are
converted to digital form that can be sent over the internet. Some
VOIP providers allow free computer-to-computer calls. Also,
subscribers can place calls from a computer to a telephone or cell
phone at a reduced cost.
Test yourself
1 Describe THREE services that a telephone company provides.
2 a Describe THREE methods of paying for telephone calls.
b State ONE advantage and ONE disadvantage of each method.
2.14 Postal and courier services
OBJECTIVES
Describe the services
available for despatching
mail.
Despite the growth in electronic communication, postal and courier
services continue to be essential in facilitating the transmission of
physical communication such as letters and parcels.
Courier services
Courier services are provided by individuals and companies. They
use sea, land and air transport to get items to their destination (see
Figure 2.14.1). Courier services cost more, but they offer:
• Fast delivery times: Same-day, overnight or 24-hour delivery,
depending on distance and location
• Reliability: Items are safely delivered within specified time frames
• Secure deliveries: Valuables are insured so that owners are
compensated if items are lost or damaged
• Tracking of items: A code is assigned to each item and there is
record of where the item is at any point in time. Some courier
services enable owners to use the internet to track their items.
·a
2.14 Postal and courier services 2
• Specialisation Carrying bulky items, perishables such as flowers,
or live animals.
Figure 2.14.1 Courier services use a variety of transport methods
Local couriers
Courier se1vices can quickly deliver correspondence within a city or
country. Local couriers often use mo torcycles to quickly navigate
streets where there is traffic congestion. Some large organisations,
such as banks, produce a large volume of correspondence daily.
Some of it is sensitive material that must be delivered securely. These
o rganisatio ns usually choose to have their own courier departments
to deliver correspondence within the count1y.
Overseas couriers
T here are courier services that focus on deliveries within the
Caribbean regio n. Fo r example, LIAT, a regional airline, offers LIAT
Quikpak, a courier service that assures delivery to the company's
Caribbean destinations within 24 to 48 hours. Similarly, Caribbean
Airlines offers its Jetpak courier se1vices for letters and small
packages. Caribbean Freight and Courier uses dedicated aircraft to
swiftly transport items to their destinations.
A number of courier se1vices operate internationally, including
FedEx, DHL, U nited Parcel Services (UPS) and International
-
2 2.14 Postal and courier services
Bonded Couriers (IBC). These organisations have developed global
networks that deliver items efficiently at competitive prices.
Skybox
Skybox is a service that allows p ersons outside the USA to have
purchases delivered to an address in that country. The item is
then sent by courier to the purchaser's home address. Skybox is
used because many stores do not deliver outside the USA. Several
international courier companies offer a similar service.
Postal services
Postal services may operate either as a governmental de partment or
as a commercial agency. Postal services operate under the direction
of the Universal Postal Union, a n organisation that sets the standards
and postal rates for all member countries. Many postal agencies now
offer courier and skybox services in addition to delivering mail.
Classification of mail
Mail may be classified as first class, second class and so on, according
to size, weight, type and amount of postage pa id. First-class mail
includes postcards, bills, letters and small packages. First-class mail is
given priority and will be delivered before the other classes. Secondclass mail include periodicals, magazines and newspapers. Express
mail is a service that assures faster delivery time for items. In return,
the customer pays a higher postage rate.
Delivery options
Registered mail
Did you know ... ?
Within the Caribbean, the
government controls the
postal services in countries
such as Dominica, Antigua
Barbuda, Jamaica, Barbados,
Montserrat, St Kitts and Nevis
and St Lucia. Commercialised
mail services are offered in
Grenada, Guyana, St Vincent
and the Grenadines, Surinam
and Trinidad and Tobago.
Registered mail may be used when the item is considered valuable
and requires special handling and delivery. Registered mail is secured
a nd monitored from the point of mailing to the point of delivery. The
item is given a routing number and each person who handles the item
must sign before it is handed over. Items sent by registered mail <J,re
insured against theft, loss or damage.
'
Express delivery
Express delivery ensures that the item is handled before all other
classes of mail.
Recorded delivery
Sometimes the sender requires evidence that an item was delivered
to the recipient. For example, it may be a legal document that must
reach the other party within a specified time frame. The recipient
2.15 Sending money and valuables 2
must sign a receipt when the mail is delivered. A receipt is also issued
to the sender.
Poste restante
Exam tip
You should be able to
demonstrate an in-depth
understanding of the different
delivery options offered by
couriers and postal services.
Paste restante is a system that allows travellers to collect mail at
the post office. T he post office usually holds the mail for a specified
period of time, such as a month. Uncollected mail is returned to
the sender. An item to be sent paste restante must be addressed as
shown in Figure 2.14.2.
Sender's name
Sender's address
Recipient's name
POSTE RESTANTE
Post office name
Full address of the post office
Postcode of the post office
Country
Key points
Postal services for the
delivery of mail include:
• classification of mail
(priority, first class,
express, standard)
• delivery options
(registered, express
delivery, recorded
delivery, paste restante)
• courier services (local
and international).
r
Figure 2.14.2 Envelope addressed poste restante
Test yourself
1 Courier services cost more than postal services. Nevertheless, many
businesses choose to have their letters and packages delivered by couriers.
a What is a courier service?
b What are THREE advantages of using couriers?
2 Describe THREE delivery options offered by the postal services.
2.15 Sending money and valuables
OBJECTIVES
By the end of this unit you
should be able to outline the
procedures for sending and
receiving money, valuables
and parcels.
Regulations for sending and receiving money and other valuables
Some countries do not permit the sending of cash via the post. In
other countries it is allowed if the sender follows specific guidelines.
Therefore, it is important to consult the local post office guide to
find out what is permitted in your country. Where sending money by
post is not permitted, a postal money order may be purchased. The
recipient may cash the money order at the post office.
Valuables include important documents, precious metals, jewelle1y
and works of art. All valuables should be insured and sent by
registered mail. It is advisable to request a certificate of delive1y and
signature confirmation.
-
2 2.15 Sending money and valuables
Procedures for sending money
• Verify that you are allowed to mail money to the destination country.
• Package cash securely so that it does not show through the
envelope. Seal the envelope immediately.
• Do not mail coins.
• Do not write on the outside of the envelope that cash is enclosed.
• If the agency allows it, insure the mo ney against theft or loss.
• Be aware that you are sending money at your own risk. Some postal
agencies do not accept responsibility for cash sent in the mail.
• Maintain a register of all mail that contains money o r valuables.
Note: see 1hatment of remittances in Un it 2.17 for guidelines on
receiving money by mail.
Parcel post services
Parcel post is a service provided by a postal agency for sending
p ackages by mail. T he cost of parcel post is calculated according to
the size, weight and destination of the package. An additional fee
might be charged for items with irregular shapes, tubes and rolls.
Postal agencies usually provide additional services, such as:
• certificate of mailing - a document that provides proof that the
item was mailed
• collect on delivery - the recipient pays for the item and mailing
costs when the package is delivered
• restricted delivery - the item is delivered to a specified person
• signature confirmation - the agency supplies the sender with the
name and signature of the person who collects the item, along
with ~he date and time of delivery
• pick-up service - the item is collected by a postal agent so that the
sender does not have to go to the post office.
Parcel post is used for items that exceed the size or weight allowed
for regular o r express mail. Parcel post is usually slower than regular
mail. However, it costs less than alternative methods, such as priority
mail or couriers. Therefore, it is used when the mailed item is not
needed urgently.
Did you know ... ?
The Romans had mail delivery
in the century before Christ
was born . This is considered
the world's first postal service.
Exam tip
Ensure that you can discuss
the specialised services
offered by postal agencies.
Procedures for sending parcels
Ensure that it is not prohibited to send the item by mail. Some
prohibited items include firearms, illegal drugs, perishable items,
flammable liquids, plants and animals.
Use correct packaging: strong, suitable boxes are the preferred
material for packaging parcels. The item should be wrapped in
sufficient cushioning and reinforcing material to protect the item
from damage, and prevent damage to postal equipment or o ther
mail, and injury to persons handling the item. Books should be
placed in padded envelopes. Large maps, plans and pictures sho uld
be rolled and placed in a cardboard tube that is sealed at both ends.
2.16 Despatching mail 2
The packaging must be neat and clean. All flaps o n the parcel should
be neatly and securely stuck down with paper glue or packaging tape.
E nsure that the contents are not inadvertently stuck to the package.
Parcels should be clearly and legibly marked on the inside and
outside with the sender's and recipient's name and address. White or
light-brown packaging are preferred, enabling written informatfon to
be easily seen. Items that can be broken should be labelled Fragile handle with care. Valuable items sho uld be insured against theft, loss
_o r damage. The date of despatch of the parcel should be recorded.
Procedures for receiving parcels
Packages may be delivered to the organisation or collected at the
postal agency.
Record the date and time the package was received, as well as the
sender's name and address.
Key points
It is important to find out
your country's regulations
for sending money and
valuables via the postal
services.
All valuables should
be insured and sent by
registered mail.
Parcel post is used for
items that exceed the
size or weight allowed for
regular or express mail.
Parcels must be securely
packaged and clearly
labelled.
Inspect the package for signs of damage and tampering. Record these
if they are noticed and make a report to the supervisor immediately.
If damage is noticed, contact the sender to ensure that all sent
matter was received. If the package was insured, fi ll out the necessary
pape1work to be sent to the insurance company.
Do not open suspicious packages. These include oddly shaped, oddly
labelled, stained or discoloured packages and packages that do not
have a return address. These should be reported to the supervisor
immediately.
Test yourself
1 What should you do in each of the following situations?
a Mailing a precious painting to a foreign country
b A damaged package has been delivered to your office
c Sending a glass product to a customer
d You receive a package with a chemical odour from an unknown sender
2.16 Despatching mail
OBJECTIVES
By the end of this unit you
should be able to describe
the procedures for send ing
mail.
.
.
.
Organisations usually specify the time at which outgoing mail will
be processed for despatch. If the organisation has a relatively small
volume of mail, processing may be done towards the end of the work
day. However, larger organisations may process mail for despatch
several times daily. T he outgoing mail may be taken to the general
office or it may be collected by a mailroo m clerk. Copies must be
made of all official business correspondence. This may be done by the
person who prepared the letter or by a mailroom clerk.
-
2 2. 16 Despatching mail
Preparing a letter
Outgoing mail must be checked to ensure that:
• the name and address o n the envelope are the same as in the letter
• the fetter has been signed
• all indicated enclosures have been included.
Letters should be folded as few times as possible. Please refer to U nit
2.5 for information on envelope sizes and the size of paper each can
accommodate with a minimum number of folds.
Choosing method of delivery
As you learned in Unit 2.15, post agencies and couriers offer several
de livery options at va,ying costs. The following factors should be
considered when selecting a method of delive1y :
• cost
• degree of urgency
• nature of item, for example, perishable, irregularly shaped, valuable
• quantity of items to be delivered, for example, bulk mail
• whether proof of posting and delive1y are required
• location of the delivery point.
Sorting mail
• Sort the mail according to importance. Correspo ndence marked
'Urgent' o r 'ASAP' (as soon as possible) should be handled first.
Bulk mail is usually handled last. However, you should note that
some bulk mail must be delivered within a specified time, such as
invitations to a seminar or notice of a general meeting.
• Sort the mail according to whether it will be sent by first class,
second class, priority or courier and so on.
• Weigh the letters and calculate the appropriate postage rate.
• Glue on the correct value stamp or use a franking machine (see
Unit 2.18 for an explanation on the use of franking machines) .
• Fill out forms if necessa1y, fo r example, for recorded or registered
delivery.
• Deliver the mail to the post office.
Mailing lists
An organisation may have to send similar documents to ·a large
number of addressees. For example, a retail outlet may send copies
of a promotional letter to all its past customers. Such correspondence
is usually prepared and addressed by a computer that personalises
. a standard form letter by using the names and addresses from a
mailing list.
The mailing list is taken from the database of customers that is
maintained by the organisation. A mailing list is a list of the names
2.16 Despatching mail 2
and addresses of a numbe r of persons to whom correspondence will
be sent. It is prepared according to specific criteria. For example, a
mailing list for sending notices of overdue payments will be prepared
from data supplied by the accounts department tha t shows all
payments that are past due. The process of automatically preparing
personalised le tters is called mail merge (also see Unit 2.18).
Postage books
When postage stamps are used for mailing correspondence, a postage
book is used to record the purchase and use of stamps. Figure 2.16.1
shows a sample page from a postage book.
Date
Stamps
purchased
Addressee
($)
Stamps
used
Details
($)
2012
Did you know ... ?
Junk mail is mail that is
sent out in bulk to a large
number of recipients, such as
advertising circulars. Many
recipients throw out these
letters without reading them.
1
27 March
375.50
Balance b!f
"
AAO Office Supplies-P05
5.75
Express
delivery
"
Jaycie Saunders- Grenada
2.50
Airmail
"
1 50 circular letters
300.00
Bulk
Figure 2.16.1 Postage book
Activity
Recording outgoing mail
Find out how your local postal
agency handles letters on
which there are insufficient
stamps.
Mail sent by a business should be recorded in an outgoing mail
register, as shown in Figure 2.16.2.
Exam tip
Avoid giving one-sentence
responses to questions
that require you to discuss,
describe or explain.
Date
Addressee
Address
Item
description
Method of
dellvery
Cost
Letter and
Registered
mail
25.50
($)
2012
4June
Sheldon
Banks
47 King Street,
Scarborough
contract
Figure 2.16.2 Outgoing mail register
Test yourself
1 You have been asked to assist in the orientation of Shazard, the new
mailroom clerk. Explain how he should handle the following tasks:
Key points
Procedures for
despatching mail include:
• sorting of mail
• preparation of mailing
lists
• use of postage books.
a Sorting mail
b Preparing a mailing list
2 What is the difference between a postage book and a mail register?
3 State TWO items of accounting data that must be recorded by the
mailroom clerk.
4 List FOUR factors that must be considered when selecting a mail
delivery method.
-
OBJECTIVES
The timely receipt and effective handling of written communication
is essential for the success of most businesses. Several factors
influence the way mail is handled in a business, including the size of
the organisation, the amount of staff available and the volume of mail
that must be handled. In small businesses the mail is usually handled
by a general office worker, who performs all the procedures outlined
below. Larger organisations often have a centralised mailroom , with
staff specially trained for the receipt and despatch of mail.
By the end of this unit you
should be able to outline
procedures for dealing with
incoming mail in large and
small offices.
Figure 2.17.1 Process of handling mail
· Activity
Procedures for receiving mail
Discuss what is involved in
Mail sho uld be handled quickly, efficiently and accurately. Figure
2.17.1 shows a series of steps for handling mail that comes into an
organisation.
carrying out each step shown
in Figure 2.17.1.
Receiving
Some organisations pay for a private bag or box at the post office. An
employee collects the mail from the bag or box at the start of each
work day. Alternatively, mail may be delivered by a post office worker.
-
When the mail arrives at the office, usual procedures for its handling
are as follows:
• Each envelope is checked to ensure that it bears the organisation 's
address. Any mail that does not belong to the o rganisation is set
aside for return to the post office.
• Mail marked 'Private', 'Personal', 'Confidential' or specifically
addressed to a person is not opened by office staff. T hey are
delivered unopened to the addressee.
2.17 Receiving mail 2
• Envelopes are opened either ma nually or a utoma tically by a
letter-opening machine. The envelope should first be tapped
on a firm surface to e nsure that its contents drop to the bottom.
This helps to prevent the le tter opener from inadverte ntly cutting
its conte nts. If the letter is damaged while being opened, repair
the lette r. Write the words 'Accidentally damaged' on the letter,
togethe r with your initials and the date.
• The contents are removed, taking care to ensure that enclosed
items are not left in the e nvelope. Multi-paged le tters or le tters
with enclosures are stapled together to prevent them from
becoming separated. H the mail has an enclosure notification but
contains no enclosure, this should be noted a nd the sender should
be contacted.
Treatment of registered mail
• The person collecting registered mail must sign a delivery form .
• Registered mail is kept separate from other mail.
• The mail is recorded in a special register. The following
information is recorded:
• date and time the mail is delivered
• type of mail
• addressee
• the control number that was assigned by the postal agency.
• Any employee receiving registered mail from the office must sign
before it is handed over.
Recording
Opened envelopes may be kept for a few days in case there are any
queries. Some organisations maintain a register in which all mail
is recorded. The register contains ruled columns for the name and .
address of the sender, date sent, the recipient's name or department,
subject of the document and the date the correspondence was received.
Stamping
A date stamp is used to mark the date the ite m was received. The
stamp is placed o n a blank space o n the opened docume nt.
Sorting and routing of incoming mail
Mail can be sorted using various criteria, such as seniority,
department or individual, depending on the size and policy of the
organisation. Mail ma rked 'Urgent' is sorted to be delivered first.
Correspondence for top executives, such as the managing director
or chief executive officer, is separated and delivered. In large
organisations mail may be sorted according to departments, with each
department being responsible for opening, recording, stamping a nd
routing its mail. In smalle r organisa tions, or where there are large
mailroom staffs, correspondence may be sorted for each individual.
Ill
2 2.17 Receiving mail
In some o rganisations a shelving unit with a number of small labelled
sections called 'pigeon holes' is used to store mail for collection at the
office or mailroom (Figure 2.17.2). In o thers, the mail is delivered to
the various offices o r departments. Mail carts, with divided sections
for sorted mail, are often used for this purpose. If mail is delivered
to desks, ensure that it is placed in a prominent place where it would
not be overlooked. Some people use mail organiser trays for this
purpose (Figure 2.17.3).
Figure 2.17.2 Pigeon-hole mail
organiser
Some correspondence, such as trade jo urnals or letters of general
interest, must be seen by several persons or de partments. A
circulation slip listing the persons who shou ld read the item is usually
attached to such documents (Figure 2.17.4). When a person on
the list has seen al).d read the document, the slip is signed and the
document is passed o n to the next person on the list. T he document
is returned to the office for filing after it has been read by all the
persons on the circulation list.
CIRCULATION
Name of document
From
Date
Department
Name
.
Date
received
Date
passed on
Initials
Figure 2.17.3 Desk mail organiser
Please read and pass on to the next listed person as soon as possible.
I Date returned
Return to
Figure 2.17.4 Circulation slip
Date
From
Dated
Amount
Payment
by I
Handled
by
Cashier
($)
2012
28
March
L. J. Peters
18/03/12
1,575.00
Cheque
A. Ross
MAii
;28
March
S. Hosein
21/03/ 12
275.00
Money
order
A. Ross
MAii
29
March
AK
Electronics
19/03/12
3,000.00
Cheque
A. Ross
MAii
Figure 2 .17 .5 Remittance register
a
2.1 8 Automation of mailing activities 2
r
Treatment of remittances
Did you know ... ?
The proper handling of
remittances received can
positively affect many of the
departments in a business.
Creating and updating the
remittance book is very
important to the smooth
running of a business.
Remittances are payments received by mail, usually in the form
of a cheque or money order. Remittances must be recorded in the
remittance register (Figure 2.17.5). Verify that the amount indicated
in the letter is the same as the amount received. If there is any
difference, this must be immediately reported to the supervisor.
After all remittances are recorded, they are to be promptly delivered,
together with the remittance book, to the accounts department.
Archiving
Exam tip
Ensure that you are familiar
with the meanings of
specialised terms such as
'routing', 'remittances' and
'archiving'.
Some letters have no lasting value to a business. For example,
suppliers often send out letters advertising special prices for a limited
time. These _c an be discarded when they are no longer needed. On
the other hand, some documents must be kept, either because of
the organisation's policy or because it is required by law. Archiving
refers to the process of storing documents for future reference or use.
Please see Unit 4.5 for specific details.
Test yourself
Key points
Procedures for dealing
with incoming mail
include:
•
•
•
•
•
receiving
recording
stamping
routing of mail
treatment of remittances
and registered mail
• archiving.
1 Briefly explain the purpose of each of the following:
a Mail cart
b Pigeon hole
c Mailing list
2 Define each of the following terms:
a Remittances
b Archiving
c Mailing list
3 Outline the use of the following:
a Remittance book
b Postage book
c Circulation slips
2.18 Automation of mailing activities
OBJECTIVES
By the end of this unit you
should be able to outline
procedures for dealing with
incoming and outgoing
mail in large offices using
machines.
Some organisations send out or receive thousands of letters each day.
Can you think of any examples in your count1y? How do they handle
their mail? Can you imagine having to stick thousands of stamps and
envelopes daily? While it may take just a few seconds to open an
envelope, imagine if your entire workday was devoted to just this task.
Organisations that must deal with large volumes of mail daily usually
choose to automate their mailrooms. Automation is the use of
-
2 2.18 Automation of mailing activities
machinery instead of human labour. Most mail-handling machines
are rather expensive. However, they enable mail to be processed
more quickly and efficiently. They save on labour costs because fewer
workers need to be hired to do routine tasks such as placing pages in
order (collating) or printing addresses on envelopes.
Mail merge
When the same letter must be sent out to many recipients, Microsoft
Word and similar word-processing software programs can be used to
perform a mail merge. The basic steps in doing a mail merge are:
1 A form letter is prepared. The form letter is like a standard
business letter, except that special notations are used to indicate
where names and addresses must be inserted, as shown below:
<<Name>>
< <Address line 1> >
< <Address line 2> >
Dear <<Name>>
2 A table with the names and addresses of the recipients is
prepared. This is called the mailing list.
3 The form letter is combined with the mailing list to create
personalised letters for each person on the list.
Addressing machines
Some businesses use a computer and printer for addressing
envelopes. However, when a large volume of envelopes must be
processed, it is best to use a specialised printer called an addressing
machine (Figure 2.18.1). An addressing machine is a device that
automatically prints addresses on letters for mailing. There are two
main kinds of addressing machines: the label maker and the envelope
printer. The label maker prints the addresses on slips of adhesive
paper, which are then peeled off and attached to the envelope. The
envelope printer prints the addresses directly on to the envelopes.
Envelope printers are designed to handle envelopes of various sizes.
Figure 2.18.1 Addressing machine
Franking machines
A franking machine is used to print postage on items to be mailed.
Franking eliminates the need to stick on postage stamps (Figure 2.18.2).
How franking works
Figure 2.18.2 Franking machine
The franking machine is bought or leased from suppliers approved by
the post office. The franking machine is validated by the post office,
credited with the postage value for which the organisation has paid
and sealed. Each time mail is franked, the machine registers the
postage units used, as well as the remaining units. When the units
2.18 Automation of mailing activities ·2
The postage meter was
invented by Norwegian
Engle Frankmussler in 1884.
His name was changes to
Edward Franks, hence the
machine is known as the
franking machine.
are used up, more may be purchased from the post office. Modern
franking machines are equipped with a digital scale to weigh the
item. When the user inputs the class of postage and destination, the
machine automatically works out the correct cost of postage and
prints a red impression onto the envelope. If the item is a parcel, the
frank is printed onto an adhesive label. The impression produced by
the franking machine includes the date of posting and the postage
value for the item's size, weight and destination.
Advantages of franking
• It is cheaper to frank mail than to use postage stamps.
• It eliminates the need to maintain a postage book. _./
• Franking speeds up the mail-handling process.
• Franked mail has a professional appearance.
• The franking mark may be designed to include the organisation's
name and logo.
• Franking can be used for most classes of mail.
_
Limitations of franking
• A permit must be received from the post office before the
machine can be used, and the machine must be taken in for
periodic inspections. Permission for the use of the machine can be
withdrawn if misuse or tampering is suspected.
• The organisation is responsible for keeping the machine in good
working order.
• The postage units must be paid for in advance.
• Franked mail cannot be deposited into mail boxes. It must be
taken to the post office.
• If the post office is closed the franked mail must be placed in
special pouches before being deposited into the overnight box.
• The mail must be sorted according to class, arranged so that all
envelopes face the same way and then bundled before it is taken
to the post officy.
Letter openers
Figure 2.18.3 Letter openers vary in
size, speed and capacity
Letter openers are designed to speed up the task of handling
incoming mail by cutting a tiny strip, usually an eighth of an inch,
off the edge of the envelope. Letter openers vary in size, speed and
capacity, from small handheld units to large desktop machines that
automatically handle hundreds of envelopes per hour (Figure 2.18.3).
With an automatic letter-opener, the mail is stacked into the feed bin
at one side of the machine. The· letter-opener automatically passes
the letter through blades that cut off an extremely small strip from
the envelope. The cut envelopes are stacked on the other side of the
machine.
2 2.18 Automation of mailing activities
Folding machines
Folding machines perform the usually tedious and time-consuming
task of folding documents such as letters, flyers, newsletters and
brochures. Folding machines fold documents neatly and evenly,
enhancing their appearance. Folding machines prepare documents in
a fraction of the time it would take if the items were folded by hand.
(Figure 2.18.4) A folder/inserter machine folds the letter and places it
into an envelope.
Figure 2.18.4 Automatic letter folder
How a letter folder works
A letter folder is easy to use:
• The documents are placed on a document feeder.
• The user selects the type of fold that is desired.
• The machine is started.
• The machine feeds the documents through, one at a time, folds
each one as programmed and places it on a tray on the other side.
Collating machines
In Unit 1.7 you learned that some photocopiers have attachments
that collate documents, that is, they assemble the pages of a
document in the correct sequence. Collating machines perform a
similar task. Stacks of paper are placed in each section of the collator
(Figure 2.18.5). The machine takes a page from each stack and places
the pages together, repeating the process until the stacks are finished.
Some collators have an attachment for stapling the sorted pages
together.
Figure 2.18.5 Collating machine
Exam tip
Sealing machines
You should know the
differences between a
manual and an automated
mailroom.
When an organisation must send out large volumes of mail, the
simple process of closing and sealing each ·envelope becomes a timeconsuming task. Some types of envelopes are manufactured with
seal gum (glue) that is moistened to stick the flap, but others are
uncoated. If the organisation uses gummed envelopes, then a sealing
2.19 Sources of information 2
\
Did you know ... ?
machine with a water reservoir is used. However, if the envelope is
uncoated, then a sealer that applies seal gum must be used.
Some postal agencies allow
businesses to use permit
post instead of franking for
large volumes of mail. The
business is issued with a
permit post impression, with
a permit number that must be
printed on each envelope.
Sealing machines vary in size, from small manually operated units
to large systems that handle hundreds of envelopes per minute. If
the volume of mail is smaller, a manual unit may be adequate. The
manual feeder needs a human operator to feed the envelopes. An
automatic machine is recommended for larger volumes of mail,
because these machines are faster and can work on their own. T hese
machines automatically pull the envelopes to be sealed.
Integrated mailing systems
Some organisations produce large volumes of the same type of
mail daily. For example, a utility company produces hundreds of
thousands of bills per month. These organisations usually invest in
integrated mail-handling systems that require a minimal amount
of human intervention. Integrated mailing systems automatically
perform the complete range of mail-handling tasks, from printing
the document to attaching the postage units. Although these systems
are quite expensive, they are worth the cost because they save a great
deal of time and manpower.
Test yourself
Key points
Automation of mailing
activities in large offices
includes the use of:
• mail merge
• addressing machines
• franking machines
• letter openers
• folding machines
• collating machines
• sealing machines.
1 a Define the terms:
i
Mail merge
ii Franking
iii Collating
b What are THREE advantages of using a franking machine?
c State TWO ways of ensuring that the post office receives payment for
all franks used?
2 Frank and Hanna are partners in a business. Frank wants to automate
their mailroom, but Hanna thinks they should hire another mailroom clerk.
a What is 'automation'?
b State THREE benefits of automation.
c Describe the function of any THREE mail-handling machines.
2.19 Sources of information
OBJECTIVES
By the end of this unit
you should be able to
select relevant sources of
information for conducting
research on a variety of
issues.
Office workers are usually required to locate, provide and use
information on a wide range of topics. The ability to select and use
relevant sources is therefore an essential skill.
Dictionaries and thesauruses
Effective oral and written communication requires a good command
of spelling, pronunciation, word usage and grammar. A dictionary is
2 2.19 Sources of information
. ,ru1 ou know ... ?
It is estimated that there are
at least a quarter of a million
distinct words in the English
language. How many do you
know?
a vital reference book for office workers. Dictionaries are available
in print, on CD and on line . Ensure that the dictionary you use is
up to date, because language changes constantly - new words are
introduced, existing words may develop new meanings or may no
longer be used. A good dictiona1y contains more than the spe llings
and meanings of words. It gives information on grammar and usage,
including sample sentences. It also provides guidance on how the
word is used in context, for example, whether it is formal or informal.
Increases in international trade, travel and communication have
made the ability to work in a foreign language an asset in the office.
Consequently, it is useful to have foreign language dictionaries that
facilitate translation from one language to another.
A thesaurus provides the synonyms and sometimes antonyms of
words. A thesaurus is ve1y useful when trying to find alternatives for
words that are used too frequently.
Official gazettes
The term 'gazette' means newspaper. In a number of countries,
including Trinidad and J amaica, the term is used to refer to
the official newspaper of the government. The gazette contains
notifications of new o r amended regulations that have been passed
by the government. It also conta ins notifications of all appointments
to the judiciary, executive and legislative sections of government. The
official gazette is a valuable source of information about laws that
affect businesses, such as the Occupational Health and Safety Act.
Telephone directories
A telephone directory is an alphabetical list of the names and
te lephone numbers of persons and organisations that subscribe to
the telephone services provided by the company that publishes the
directory. A te lephone directory may also be used to find the address
of a subscriber. Businesses may pay a fee to be listed and advertised
in the commercial section of the directory, commonly known as
the Yellow Pages. Businesses in the Yellow Pages are first classified
according to the type of products or services they offer and then
listed alphabetically.
Maps
A map is an essential reference for~ business traveller, especially if
visiting an unfamiliar place. Large-scale maps represent small areas
but show a lot of detail. Small-scale maps show larger areas but far less
detail. The ability to interpret maps, beyond identifying the relative
location of places, is also important. For example, one town may appear
to be just a sho rt drive from another. However, are they linked by a
highway o r a third-class road? Does the road pass through relatively
2.19 Sources of information 2
flat land or mountainous terrain? Is the area well populated or are
the buildings few and far between? Such information, gathered from
a map, may affect the comfort, safety and duration of the planned drive.
Schedules
Schedules are lists of events that are arranged according to the
order in which they are expected to occur. Travel schedules show the
arrival and departure times for the relevant transportation, such as
planes, trains, buses, ships and ferries. An organisation may prepare
a weekly or monthly schedule that indicates planned events, such as
meetings and seminars. Such a schedule is essential when meeting
and conference facilities are in high demand.
Post office guide
The post office guide contains information on all aspects of the postal
services of the given country. These include :
• rules and regulations relating to- inland and foreign post
• opening and closing ho urs
• lists of post offices in the country (addresses and telephone
numbers may be included)
• descriptions of services provided by the post office, including
mo ney transfer or savings
• de livery times for various classes of mail
• the postal rates for various sizes and weights of letters and parcels.
Many countries now offer an on line versio n of their post office guide.
Trade journals
A trade journal is a magazine that is published periodically that
focuses on the interests, needs and concerns of a particular indust1y,
such as architecture, education, manufacturing or telecommunications.
Trade journals are designed for a specific group of readers, rather
than for the general population. Trade journals deal with issues such
as case studies, trade news, events, new products and governmental
regulations. Therefore, a trade journal is an important way to keep
informed about developments in a particular industry.
Hansard
Hansard is the official published verbatim report of the proceedings
of the parliament of a country. As a verbatim report, H ansard
contains the exact words that were said by the members of
parliament. Access to this record is important because news
reporters usually publish only summaries of and commentaries on
parliamentary proceedings. The H ansard records of some countries
are available online.
-
.,.
2 2.19 Sources of information
, The internet
The internet has emerged as a major source of information on an
infinite range of topics. In fact, many computer users now consider
the internet to be essential when research must be done. The internet
is a worldwide system of interconnected computer networks. The
internet is linked by various telecommunications media, including
telephone lines, cable and satellites. To use the internet, you must
have the following:
• a computer with a fast processor and a large memory
• a means of connecting to the network, such as a modem or cable
• browser software
• an internet service provider (ISP).
The following terms are frequently used in connection with the
internet:
• Browser - the program that allows users to locate and view web
pages. Internet E xplorer, Mozilla Firefox, Apple Safari and
Google Chrome are some commonly used browsers.
• Search engine - a program that helps you locate information on
the internet by performing a search for whatever key words you
have entered. Google is a commonly used search engine.
• Internet service provider (ISP) - a company that provides access
to the internet, usually via telephone or cable. When you register
with the ISP you are assigned a user name and asked to select a
password. These are used to identify you whenever you log on to
the internet.
• World Wide Web - this consists of a vast number of websites that
are available on the internet. A website is an electronically stored
document that is made up of individual web pages. Each web page
may consist of a number of files, including text, graphics, sounds,
frames and style sheets. An individual or organisation can create a
website and have it hosted on a web server. This information may
then become available to persons using the internet.
Exam tip
M<3ke sure that you can
discuss the purpose of
publications such as the
gazette and Hansard.
m
.
Although the internet can be a source of valuable information, it
is also a source of a lot of misinformation. It is wise to remember
that anyone can publish information on the internet and there is no
guarantee that the information is accurate or unbiased. The following
are a few guidelines that may help:
• Consider the source of the information, such as whether the page
shows the author's name, credentials and organisation.
• Ve rify whether there are references to other reputable published
work.
• D etermine whether the information is supported by other
reputable sources .
• Check whether the information is up to date.
2.19 Sources of information 2
Test yourself
Key points
Reference materials used
in business environments
include:
• dictionaries and
thesauruses
• official gazettes
• telephone directories
• maps
• schedules
• post office guides
• trade journals
• Hansard
• the internet and search
engines.
1 State THREE advantages of having reference materials in the office.
2 State the difference between Hansard and a gazette.
3 Identify the reference source described in each of the following
statements:
a These are published periodically, with the interests of a particular
industry in mind.
b Used by travellers to identify which driving directions-to follow.
c A source that contains words of similar meaning.
d Word-for-word happenings of parliamentary proceedings.
e This contains a list of businesses in alphabetical order.
f A list of things to be done, arranged in order.
· g Official newspaper of the government.
h The leading source of current information and up-to-date world news.
Contains postal services, rules and regulations relating to inland and
foreign post.
Contains accurate definitions and meanings of words.
-
End-of-unit multiple-choice - Unit 2
B
A customer wants to find out about a new
intercom system that your company has
1
In which reference book can one find word-for-word
happenings of parliamentary proceedings?
advertised in the daily newspaper. However, you
A Dictionary
product.
B
are not familiar with the technical details of the
C Official gazette
Hansard
D
C
Trade journal
Your supervisor says that she is very busy and
should not be disturbed for the next few hours.
2
3
However, the managing director wishes to
Which of the following should be practised when
using the business telephone?
A
Answering the telephone after three rings
B
Using slang and jargon
C
Having a snack
D
Placing caller on hold to find information
speak with her.
4
Which of the following types of paper can be used to
prepare copies of a letterhead?
Shaduke noticed the words POSTE RESTANTE
typed above the address on an envelope. Explain
to her:
A
What the words 'paste restante mean
8
What address will be printed on an envelope
labelled poste restante.
A
Parchment
B
Bond
Which service would you use for each of the
following situations? Give reasons for your answers.
C
No carbon requ ired (NCR)
A
D
Carbon
B
5
A parcel with valuable items
Documents that must be sent to a travelling
sales representative
4
5
Which type of delivery will you choose for a package
that must reach the recipient urgently?
A
Poste restante
C Express mail
B
Registered delivery
D
B
24 hours
D
Recorded delivery
6
Which type of communication is used most in
business organisations?
A Memo
C A letter that must reach the recipient within
C Telephone
Charts
D
Reports
■
ShorJ-answer questions
7
A flyer advertising your company's products
Describe TWO examples of each of the following
kinds of communication:
A
Written
C
Oral
B
Visual
D
Electronic
A
What is a 'barrier to communication'?
B
Describe THREE barriers, c learly explaining how
each one can be overcome.
1
Describe FOUR main differences between a letter
and a memorandum.
2
Give THREE guidelines to follow when composing
business correspondence.
3
You work at TechSolutions Limited, a company
that supplies and services telecommunications
equipment. Describe how you would handle each of
the following telephone calls:
Write a memo to the communications manager
outlining the reasons why the mailroom should be
automated.
9
A
You receive a telephone call from a customer
who is angry because a replacement part he
ordered is now two weeks overdue.
■
Your company usually has extremely high telephone
bills. Recommend THREE communication
alternatives that could help to reduce this cost.
OBJECTIVES
By the end of this unit you
should be able to identify
sources of information on job
opportunities.
. One of the biggest challe nges facing school-leavers is how to find a
job. It is important to find out about the job before the vacancy is
filled. T here are a number of sources for information on employment
opportunities.
Newspapers
Figure 3.1 .1 Using the classified
ads to find employment
Newspape rs usually feature advertisements of positions that
are vacant. In addition to the larger advertisements that may be
distributed throughout their pages, most newspapers also have
job listings in thefr classified ads. Classified ads are a number of
relatively short advertisements that are grouped according to their
topics. Persons seeking employment may also advertise in the
classified section of the newspaper. These advertisements are fairly
inexpensive. Some newspapers also have sections tha t are dedicated
to business issues, including employee recruitment announcements.
Electronic media including internet
E mpl_o yers who are concerned about quickly reaching large numbers
of potential employees may choose to advertise via the electronic
media. Radio and television advertisements a re relatively expensive,
- but some employers find it worth the expense if it increases the
likelihood of finding the best possible candidate for the job.
An increasing number of e mployers are choosing to advertise
vacancies online. Some companies use their own websites to list
vacancies. There are also websites, such as CareerBuilder.com
a nd Monster.com, that are specifically designed to bring potential
employers a nd job seekers into con tact with each other. Job hunters
are able to use the internet to search databases listing jobs that are
available in different locations, industries a nd organisations. Some
feature qu estionnaires that help job seekers toassess themselves to
determine the careers to which they are best suited. Many also allow
job seekers to post their resumes online, where they may be viewed
by recruiters .
Trade journals and magazines
As you learned in Unit 2.19, trade journals a re periodical
publications that focus on the interests, concerns and needs of a
al
3 3.1 Finding employment
particular industry. Business ma·gazines are usually more broad-based
and contain in.formation about different aspects of the economy.
Trade journals and business magazines are therefore excellent
sources of information about jobs. In addition to advertisements for
particular vacancies, these publications provide information about
general trends in the industry.
Employment bureaux and agencies
Some employers prefer to
recruit college students,
despite their lack of
experience. Consequently,
many universities and
colleges.now provide
career centres to assist their
students and graduates to
locate employment. These
centres also help students to
choose careers that suit their
interests, talents and skills.
E mployment bureaux and agencies specialise in bringing potential
employers and job seekers in contact with each other. An
employment bureau is usually a state-run organisation that maintains
a database of applicants. Their services are usually free of charge.
On the other hand, employment agencies make a profit by charging
a fee or commission for their services. The fee may be paid by the
employer or deducted fro m the pay of the successful employee. Fees
are usually paid on a contingency basis, that is, the agency is paid only
if there is a successful job placement. Some agencies also charge a
registration fee to help defray ~perating costs.
Both types of employee placement organisations operate in
basically the same way. Job applicants register with the organisation.
T he agency screens the candidates by verifying their credentials
and performing preliminary interviews. Employers provide job
descriptions and specifications for vacant positions. The organisation
then prepares a shortlist of persons who best fit the requirements for
the position. Some employers prefer to interview all the shortlisted
candidates before making a final decisio n. In other cases the
employer trusts the agency to supply the best possible candidate for
the job.
Company newsletters
/
Did you know ... ?
Many persons obtain
employment by submitting
unsolicited applications.
Some organisations prefer
to avoid the expense of
advertising vacancies. If a
suitable application comes
in, it is quite likely to be
accepted. Some companies
also maintain a datab ase for
unsolicited applications. If
a vacancy arises, they may
choose to contact a recent
applicant from their files.
ID
Many organisations use in-house publications such as newsletters
to advertise vacancies. These newsletters may be obtained from the
company's public relations department or from employees, or they
may be available at the public library.
Signs and noticeboards
Smaller organisations sometimes choose to advertise vacancies by
putting up a sign or noticeboard in a prominent location, such as
on the door, window or gate of their premises. Job seekers sho uld
therefore take a walk through business areas to see whether there are
any notices posted.
Personal contact
Personal contact is a very effective way of getting information
about employme nt opportunities. For this reason, job seekers are
3.2 Choosing a job 3
encouraged to network. Networking involves making connections
with persons who can help you get information, or can put you in
touch with other persons who can help. Many job o pportunities are
found by speaking with a 'friend of a friend of a friend'. Persons
who are alrea.dy employed may also help by providing ' insider'
information on what attributes the company is seeking.
Exam tip
You should be able to identify
the type of information
you can get from different
sources, such as trade
journals or newsletters.
Test yourself
1 Identify FIVE sources of information about job opportunities.
Key po;nts
2 Explain the term 'unsolicited application'.
Sources of job information
include:
3 Identify TWO employment bureaux or agencies in your country.
4 Anderson's career advisor recommended that he should network in
order to improve his chances of obtaining employment.
• newspapers
• employment bureaux
and agencies
• electronic media
• personal contact
• trade journals and
magazines
• company newsletters.
~~
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...·-.
.
a What is 'networking'?
b Who should Anderson include in his network?
5 Describe how an employment agency operates.
.
,.,-
··· .tS:2~~~Cho·os111g a job
A•-■
(•
■
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-
'
.
l
OBJECTIVES
By the end of this unit you
should be able to outline
the factors to be considered
when seeking em ploym ent.
Many employees spend more than half of their waking hours
wor king. Their career has a significant effect on the quality of life
they enjoy. The following are some factors to consider when seeking
a position.
Career interests and personal taste
By now you have probably decided on the career in which you
are interested. If you are not sure about your interest or the
requirements for your chosen career, you can speak with your school
counsellor. You can also do an internet search for 'Choose a career'
and visit some of the many websites that are available.
Personal taste is a very important factor to be considered when
selecting a career. An individual who prefers to be physically active
should not select a job that requires sitting for extended periods.
Similarly, it will be unwise for an introverted person to select a job
that involves a great deal of interaction with the public. Therefore,
it is important for the job seeker to honestly assess themselves.
There are many books, magazine articles and websites that contain
personality tests that can help individuals to choose suitable jobs.
3 3.2 Choosing a job
Job descriptions
Job descriptions provide information abou t the duties and
responsibilities of a position, and job specifications indicate the
required knowledge and abilities (also see Unit 8.1). Some employers
also provide a person specification, that is, a detailed descriptio n of
the type of person who is needed for the job. If the employer does
not provide a person specificatio n, the applicant should use the
job descriptio n to prepare a checklist to ensure that they meet the
requirements for the position. This checklist should include:
• required experience and qualifications
• special skills that are needed
• attributes, such as personality and interests of the ideal_candidate
• physical requirements, including appearance and grooming.
Training and qualifications
The level and type of training and qualifications that are required vary
from one job to another. There are some careers for which a university
degree is essential. Other jobs require practical skills, such as those
developed through technical training courses. Almost all employers
require that applicants have at least a seconda1y education, with passes
in English and mathematics. Employers usually specify the minimum
qualifications that they will find acceptable for a position.
Salary and fringe benefits
Did you know ... ?
CARICOM (Caribbean
Community and Common
Market) has approved a
number of categories of
labour to move freely within
the community, including
persons with university
degrees, artists and
musicians, sportspersons,
nurses, teachers and
domestics.
l
Ill
Job seekers often choose employment based o n the amount of salary
that is offered. The base salaty or wage is the standard sum of money
that is paid for the work performed by the employee. While pay is an
important consideration, it is wise to also pay attention to the o ther
non-wage benefits that are given. These additional remunerations are
called fringe benefits or perks. Some fringe benefits include:
• accident and health insurance
• payment for time not worked, for example, sick, vacation and
maternity leave
• extra pay for time worked, bonuses and profit-sharing
• allowances for travelling, housing, relocatio n and so on.
It is sometimes advantageous to choose a job that offers a lower
salary but more fringe benefits.
Location
When choosing a job it is wise to consider the ease with which it can
be reached. Accessibility involves more than the distance between
work and home. It also includes road conditions such as traffic
congestion. Some persons do not mind having to commute on a daily
basis. However, it is not advisable to choose a job that is far away
3 3 Job applications 3
if transportation costs are high, travelling is exhausting and timeconsuming or transport is unreliable.
Image of the firm
Exam tip
When you are asked to write
a letter of application, use
the information provided in
the stimulus, such as name,
address and qualifications.
The image of a fi rm is how it is perceived by society. Job seekers
usually prefer to get employment with firms that have a positive
image. A firm's image is influenced by a number of factors, such as:
• its business practices
• the quality of its goods and services
• its level of social responsibility
• the level of job satisfactio n experienced by its employees
• its physical environment
• the type of publicity it receives.
Career advancement
Key points
Factors to consider
when seeking a position
include:
• career interests
• job descriptions
• personal taste
• training and
qualifications
• salary and fringe
benefits
• location
• image of the firm
• career advancement.
The opportunity for career advancement is an important consideration
when selecting a job. Some industries have high potential for growth.
For example, there is a global increase in the development of
knowledge-based industries, that is, industries that use a high level of
technology and/or human capital, such as telecommunications, finance
services and software development. Job seekers should also evaluate
the opportunities for advancement within the organisatio n, such as
whether it provides ongoing training and staff development.
Test yourself
1 Identify FIVE fac tors to consider when seeking employment.
2 Explain the difference between 'job description' and 'job specification'.
3 Prepare a job specification for an office administrator in a large
organisation.
3.3 Job applications
OBJECTIVES
By the end of this unit you
should be able to prepare
applications for a job .
.
Many businesses provide application forms. These forms consist
of headings with spaces for the applicant to write information.
The use of application forms allows the business to get the specific
information that is required.
If no form is provided, a letter is used. T here are usually many
applicants for a job, so it is important to write a letter that will attract
and hold the employer's attention. A poo rly written applicatio n letter
might be rejected, even though the applicant is well qualified for the
job. Application letters may be solicited (written in response to an
advertisement) or unsolicited (see F igure 3.3.1).
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3 3.3 Job applications
Sample application (solicited)
231 Busy Street
Kentucky Avenue
Oceanside
27 May 2012
Ms A. L. Maharaj ·
Human Resource Manager
Safeco Limited
1021 Maritime Street
Simpsonville
Dear Ms Maharaj
I am applying for the position of trainee office administrator that was advertised in the
Simpsonville Express. Your firm has a reputation for being an industry leader in
computer security and this is my area of interest.
Your advertisement indicates that the position requires a good secondary education
with training in business and computers. I have just graduated from the Bayview
Secondary School where I studied office administration and electronic document
preparation and management. I have pursued additional courses in programming with
languages such as C Sharp and Visual Basic. I have gained valuable work experience
from a vacation internship programme with Youth Enterprises. You will find niy resume
enclosed.
I am available for an interview at your convenience.
Yours sincerely
Shirley Seeker
Home
Cell
Email
1 868 555 0984
1 868 211 7639
s_seeker@aol.com
Sample application (unsolicited)
231 Busy Street
Kentucky Avenue
Oceanside
27 May 2012
Ms A. L. Maharaj
Human Resource Manager
Safeco Limited
1021 Maritime Street
Simpsonville
Dear Ms Maharaj
I have just graduated from the Bayview Secondary School where I studied office
administration and electronic document preparation and management and I am
interested in obtaining employment at Safeco Limited.
Your firm has a reputation for being an industry leader in computer security and this is
my area of interest. I have pursued additional courses in programming with languages
such as C Sharp and Visual Basic. I have gained valuable work experience from a
vacation internship programme with Youth Enterprises. I am confident that my training
and experience have equipped me to make a valuable contribution to your organisation.
You will find my resum~ enclosed.
I would welcome an opportunity to meet with you to discuss my qualifications for
working with Safeco Limited. I am available for an interview at your convenience.
Yours sincerely
Shirley Seeker
Home
Cell
Email
1 868 555 0984
1 868 211 7639
s_seeker@aol.com
Figure 3.3.1 Letters of application
3.3 Job applications 3
Procedures for writing applications
Unless the employer specifically requests a handwritten letter, all
appl ication letters should be typed.
The introductory paragraph should include the title of the job for
which you are applying, the source of information about the job
opening, and a brief statement about what qualifies you for the job or
why you wish to work with that particular organisation.
The se~ond paragraph should give details about why you are suited for
the job. Use this paragraph to 'sell' yourself by showing that you have
what it takes to do the job better than all other applicants. Show how
your knowledge, skills and personality fulfil the employer's requirements.
The final paragraph should be used to indicate your availability for an
interview.
Some additional guidelines
Units 2.3 and 2.4 provided general guidelines on how to compose
and present business letters. The following are specific guidelines for
preparing applications.
.
• Application letters should be brief, no more than one page long.
• Never use the line 'To whom it may concern'. Address the letter
to the person indicated in the advertisement. If the advertisement
did not state a contact, do some additional research. For example,
you may telephone the organ isation and make an enqui1y.
• The job advertisement usually states what enclosures are needed.
Do not enclose iteny ,1.,~t were not requested, such as letters of
recommendation,
'•.; or copies of certificates.
• Create an individ
"'c:h job for which you apply.
Specifically iden
~" that you are willing to
do any job avi i
"'" an indication
that you are
• Ensure that J
included in/
• Print your
sea
match /
Ii
,..
/, IS
preseh.
,ie and
curriculum v.
in the
Caribbean they art..·ulum vitae'
literally mean course ot ., _
f, no more
than one page long (Figure 3.-'·-,
er
document
0
that includes details such as biograp11,..
don, employment
history, grants and awards received, organu,,...
s with which the
applicant is affiliated, significant courses taken, personal skills and
competencies, and other accomplishments.
-
3 3.3 Job applications
An applicant with a great deal of qualifications and experience
might need to select the most relevant ones to include in a resume.
However, new entrants to the job market usually find it challenging
to find sufficient appropriate details to include. Be honest. Never lie
or exaggerate about your skills, qualifications and interests, and do
not make claims that cannot be suppo.rted.
Shirley Seeker
231 Busy Street, Kentucky Avenue, Oceanside
Home 1 868 555 0984
Cell
1 868 21 1 7639
Email
s_seeker@aol.com
Education
Bayview Secondary School, Bayview, Greens Port
2005-2010
CXC (awaiting results)
English A
Mathematics
Social Studies
Principles of Business
Experience
Did you know ... ?
Achievements
Ensure that your business
letters contain both the
sender's and the recipient's
addresses and that each one
is in the correct position.
Child care
2005-present
• Provide babysilling services for several families
after school, weekends and during school
vacations..
2009
• Participated in the Youth Enterprises vacation
internship programme.
·
• Worked at the reception desk, greeted visitors,
made and received telephone calls, assisted in
appointments management.
• Received an award for the trainee who made the
m9st progress.
Most word-processing
programs feature templates of
resumes and curriculum vitae
that can be personalised.
Additionally, you can find
thousands of samples on the
internet.
Exam tip
Spanish
Integrated Science
Office Administration
Electronic Document
Preparation and Management
Volunteer
experience
• Young Leaders Certificate of Distinction 2008
• Academic Honor Roll 2006- 2009
• Peer counsellor with the Youth Outreach
programme
Interests/
activities
• Member of Bayview Secondary School Netball Team
• Swimming
• Steelpan
Computer
skills
• Proficient with Microsoft Word, Excel, Access and
PowerPoint and the internet
• Programming in C Sharp and Visual Basic
r
Key points .
The following documents
are used for making
applications:
• application forms
• letters
• curriculum vitae
• resumes.
D
Figure 3 .3 .2 Resume for student completing secondary school
Test yourself
1 Cut an advertisement from the newspaper advertising an entry-level position.
2 Write an application letter for the position advertised and include your resume.
3 Prepare a list of at least FIVE guidelines that should be followed when
writing application letters.
I
.
3.4 Job-related letters
OBJECTIVES
By the end of this unit you
should be able to prepare
various types of follow-up
letters.
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.
·· •
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There are often hundreds of applicants for a vacancy. A well-written
fo llow-up letter can make an applicant stand out from the crowd.
Follow-up letters may be written under the following conditions:
• no reply received to application
• time lapse of six months after being advised that there is no
vacancy
• acceptance of job
• non-acceptance of job.
This unit contains sample letters that can provide guidance in the
composition of the various types of follow-up letters.
No reply received to application
In this letter:
• reiterate your interest in the position
• express your enthusiasm about working with the organisation
• offer to resubmit your resume.
[Your address]
[Date]
Mr Adrian Salandy
Peyton and Barnes
834 7 Carne Street
Gainesville
Dear Mr Salandy
Earlier this month I submitted a letter of application and a resume for the position of
human resource assistant advertised in the National Express. To date, I have not heard
from your office. I would like to reiterate my interest in the job.
I am very interested in working at Peyton and Barnes. I am confident that my
knowledge, skills and experience are an ideal match for this position.
If necessary, I would be glad to resend my application materials or to provide any
further information you might need. I can be reached at [your telephone numbers and
email address].
Thank you for your consideration.
Yours sincerely
[Your name]
Figure 3.4.1 Follow-up letter
Six months after being advised that there is no vacancy
In this letter:
• restate your interest in working with the firm
• describe the new skills, qualifications and experience you have
acquired
• resubmit your resume.
_.;.
3 3.4 Job-related letters
[Your address]
[Date)
Mr Adrian Salandy
Peyton and Barnes
8347 Carne Street
Gainesville
Dear Mr Salandy
A few months ago I submitted a letter of application and a resume for the position of
human resource assistant with your company. At the time I was told that there was no
vacancy. However, I continue to have a keen interest in being employed with your
organisation.
As is shown in my enclosed resume, I now hold a diploma in human resource management. I have acquired additional experience working in a people-focused environment
by serving as a voluntary community liaison officer for the Youths at Risk outreach
programme.
I would be glad to come in for a further discussion about the talent and skill I can bring
to your department. Please contact me at (your telephone numbers and email address].·
Yours sincerely
[Your name)
Figure 3.4.2 Follow-up letter
Acceptance of job
In this letter:
• be brief
• thank the employer for selecting you
• express your enthusiasm about working with the firm
• confirm your acceptance of the-starting salary and benefits
• indicate the starting date of employment.
[Your address]
[Date]
Mr Adrian Salandy
Peyton and Barnes
8347 Carne Street
Gainesville
Dear Mr Salandy
I am delighted to accept your offer of employment as a marketing trainee with your
company. This position lits with my career expectations and path and I therefore look
forward to contributing to the success of Peyton and Barnes.
I am pleased tci accept your offer of a starting salary of $45,000 annually. I also
understand that I will be receiving the lull company benefits that are identified in your
employee handbook.
I look forward to starting work on the [insert appropriate date].
Yours sincerely
[Your name]
Figure 3 .4.3 Letter accepting a job
I
,.
3.4 Job-related letters 3
Non-acceptance of job
In this letter:
• be brief
• express appreciation for the offer and sincere regrets about your
inability to accept.
[Your address]
[Date]
Mr Adrian Salandy
Peyton and Barnes
8347 Carne Street
Gainesville
Dear Mr Salandy
Thank you very much for offering me the position of office manager with Peyton and
Barnes. After careful consideration, I have decided to accept a position with another
organisation.
I sincerely appreciate the time you spent interviewing me and providing information
about your firm.
Again, thank you for your consideration.
Yours sincerely
[Your name]
Figure 3.4.4 Letter declining a job
Other letters
After obtaining the position you will need to compose other letters,
such as:
• resignation
• application for leave
• acknowledgements.
Resignation from job
In this letter:
• be brief and factu al
• state the date from which your resignation will take effect
• express appreciation for the opportunities you had with the
company
• maintain a professional tone.
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3 3.4 Job-related letters
[Your address]
[Date]
Mr Adrian Salandy
Peyton and Barnes
8347 Carne Street
Gainesville
Dear Mr Salandy
I would like to inform you that I am resigning from my position of clerk typist with effect
from 31 May.
I sincerely appreciate the opportunities for professional and personal development that I
enjoyed at Peyton and Barnes. However, after long and careful consideration I have
decided to accept the opportunity to become a full-time student at the University of the
West Indies.
Did you know ... ?
With so many applicants
for advertised positions, a
follow-up letter can increase
the likelihood that your
application will be considered.
Again, it has been a pleasurable and rewarding experience working with your team.
Yours sincerely
[Your name]
Figure 3.4.5 Resignation letter
Application for leave
Exam tip
Be sure to use all the
information provided in the
stimulus, such as dates,
names and addresses.
Key points
Follow-up letters are
written under the following
conditions:
• no reply received to
application
• time lapse of six months
after being advised that
there is no vacancy
• acceptance of job
• non-acceptance of job.
Other job-related letters
include:
• resignation from job
• application for leave
• acknowledgements.
•
Many businesses use a standard format for leave applications. It is
usually sufficient to state the type of leave, the date from which it will
be taken and the duration.
Acknowledgements
An acknowledgement is a letter that indicates your receipt of an item
such as an invitation, a package or an application ..These letters are
usually brief and to the point. Simply acknowledge receipt of the
item, express appreciation or state what actions you will take as a
result.
Test yourself
Big Hitz Productions, of 23A Golden Walk, Atlantic Avenue, Bridgetown,
is a company that records music videos for celebrities. Ashrifa Khan
really wants to work with this company and applied for an advertised
position as a receptionist on 26 June of this year. Ashrifa lives at 67
Pears Lane, Charnocks.
·
1 Six w:eeks have passed and she has not received a reply to her
application. Compose a follow-up_letter.
2 Write a letter responding to a telephone call she receives three weeks
later, notifying her that she has been selected for the position.
3 The same week that she is informed of her successful application, she
finds out that she has won a full scholarship to study at a university of
her choice. Write an· appropriate letter declining the job offer.
' ..
'
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-,,- - ~: __,.,. ... ., ..• r
·,
3.5 The job interview
OBJECTIVES
By the end of this unit you
should be able to explain
factors to be considered
when preparing for a job
interview.
The job interview is one situation that illustrates the truth of the
axiom, 'If you fa il to prepare, then prepare to fail'. Being well
prepared will maximise the chance that you will be offered a job.
Be ing well prepared will help you feel more re laxed and appear
more confident. You will be better able to convince the interviewer
that you are the ideal candidate for the position. In preparing for
the interview it is important to pay carefu l attention to the following
issues.
Selection of attire
Your appearance significantly affects the way you are perceived. The
style and condition of your clothes send a strong non-verbal message.
E ven companies with relaxed dress codes expect job applican ts
to be well dressed. You should a im for a clean, neat, professional
appearance (see Table 3.5.1).
What to wear
Women
Men
• A suit (or skirt and matching
blouse) in a solid dark colour,
such as dark grey, navy blue or
black
• A well-pressed suit (or dress pants
with matching long-sleeved shirt) in a
solid dark colour, preferably dark grey
or navy blue
• A skirt that is long enough to
allow you to be modestly covered
when seated -
• A coordinating tie
• Appropriate shoes that cover the
toes
• A dark-coloured belt
• Clean, well-polished shoes
• No jewellery, except a watch
• Limited jewellery
• Professional hairstyle
• Professional hairstyle
• Clean, neatly trimmed fingernails
• Neatly manicured nails of a
moderate length
• Subtle cologne or aftershave
• Subtle makeup and perfume
Tab le 3.5.1 Guidelines on attire
m
3 3.5 The job interview
Research on the organisation and position
Find o ut as much as you can about the organisation and the position:
• what products or services they provide
• general information about the indust1y or sphere of activity
• who are their custo mers
• what differentiates them from their competitors
• their mission, vision, goals and objectives
• what the position involves.
Sources of information:
• persons who work with the organisation, as well as former
employees
• the company's website, and publications such as newsletters and
employee handbooks
• newspapers, trade journals, business magazines.
Go to the interview location so that you can determine how long
it will take you to get there. Assess the factors that will affect
punctuality, such as road conditions, traffic congestion and
availability of transportation. Cater for more time if your research
showed that there are usually travelling difficulties.
Your portfolio
You should sort and photocopy all required documents, including
photo identification, certificates and testimonials. Organise the
documents and photocopies in a portfolio. A portfolio is a flat case
for holding documents. You can use a three-ring binder with clear
document pockets and dividers.
Types of questions
There are a number of standard interview questions that may be
asked by the in terviewer and the interviewee (see Table 3.5.2).
However, an interviewer might ask an unexpected question to
determine how quickly you can think. Give clear, concise, honest
answers. However, be discreet. For example, it will be unwise to
answer a question abo ut your reasons for wanting the job by saying
that you need the money. Practise, practise, practise! Have friends or
relatives ask you a wide variety of questions.
You will be expected to ask two or three questions about the
organisation and the position. Asking the right questions will show
that you are truly interested in getting the position. Do not ask about
sala1y and benefits or vacation leave, or ask questions for which
you can easily get the answer, such as what products the company
manufactures. Avoid asking closed questions. Instead, structure your
questions so that the interviewer must provide some details.
3.5 The job inteNiew 3
Some typlcal questions asked by Interviewers
Tell me about yourself.
Why should we hire you?
What were your responsibilities at your previous job?
What were your biggest accomplishments/challenges?
What was your salary? or What wages do you expect to earn?
Why do you believe you are the right person for the job?
Why do you want to work with us?
What motivated you to apply for this position?
Table 3.5.2 Typical inleNiewer questions
Deportment and conduct at the interview
Did you know ... ?
Many prospective employers
have persons obseNing your
behaviour while you wait in
the reception area.
Exam tip
Make sure that you
understand the meanings
of the terms 'factors' and
'considerations' as they relate
to situations such as job
selection and interviews.
Key points
When preparing for an
interview you must pay
attention to:
•
•
•
•
selection of attire
deportment
research o f organisation
types of questions that
may be asked by the
interviewer and the
interviewee
• portfolio and evidence of
qualifications.
The interview is your opportunity to demonstrate how well you will
fit in with the organisation. Ensure that you are polite at all times.
Do not carry drinks or chew gum. Switch off your cell pho ne before
entering the premises. Go to the reception desk, politely greet the
receptionist and clearly state your name and the purpose of your visit.
You will doubtless be offered a seat. Sit upright, with both feet on the
floor. Avoid signs of nervousness or impatience, such as sighing or
tapping your fingers.
Greet each interviewer with a handshake and a smile and maintain
eye co ntact. Express appreciation for being invited for the interview.
Be self-assured, but avoid being arrogant or overconfident. Do not sit
until you are invited to do so. Maintain a good posture; do not slouch
or fidget.
Some employers subject candidates to a 'stress-test' by deliberately
creating conflict, expressing criticism or showing hostility. It is vital
that you stay calm and composed, even when things get difficult.
At the end of the interview be sure to thank the interviewer and
reiterate your interest in working with that firm . Leave the premises
immediately. Send an appropriate follow-up letter within a day or
two (see Unit 3.4).
Test yourself
1 a It has been said that your preparation for a job interview is as
important as the interview itself. To what extent do you agree?
b Describe suitable attire that you will wear for an interview.
c Outline FIVE ways in which you can prepare for an interview.
2 Refer to Table 3.5.2. Compose suitable answers to FIVE of the
questions.
3 Select ONE company with which you would like to work.
a Write a brief descrip tion of the company.
b State the reasons for your choice.
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i; ·:"· ,_r.
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. . · 3.6 The work environment
OBJECTIVES
By the end of this unit
you should be able to
demonstrate knowledge of
the requirements of the work
environment.
Your ability to adjust and succeed in the world of work will depend
on a number of interrelated factors. The world of work is far more
de manding than school. You are expected to consistently produce
high standards of work. There are far fewer allowances for errors.
From now you should acquire the knowledge and develop the skills,
attitudes and attributes that would make you a valuable member of
your society and an asset in your workplace.
Labour laws
In Unit 8.8 you will learn a bout local and international legislation
affecting workers. You should become familiar with the labour laws
of your country. The International Labour Organization maintains a
database of Caribbean labour legislation on issues such as:
• termination of employment
• registration, status and recognition of trade unions and employers'
organisations
• equality of opportunity and non-discrimination in employment
• occupational safety and health and the working e nvironment.
You can access this database by doing an internet search for
CARIBLEX.
Culture of school versus organisation
Most teenagers are eager to get out of schoo l and into the workplace.
However, it is important to recognise that there are significant
differences between the culture of school and the culture of work
(Figure 3.6.1).
Figure 3.6.1 Some elements of the culture at work
Ill
3.6 The work environment 3
Level of responsibility and maturity
At school you are expected to take some degree of responsibility
for your learning. Nevertheless, the teacher is ultimately held
accountable for your performance. For example, it is said by some
that if a student has not learned, then a teacher has not taught.
On the job, you are the person who is liable for your performance.
Continued failure to meet your employer's expectations may result in
loss of employment.
Some childishness is acceptable in a student. For example, joking
and pranks may be tolerated among your peers. While a pleasant,
friendly manner is welcome, usually, immaturity is unacceptable in
the workplace. In fact, depending on the nature of the job, practical
jokes might result in injury or loss of life.
Time management
Having a positive attitude
is not just good business
practice. It is also good for
your physical and mental
health.
The typical work day is longer than a school day. You may be
expected to get to work at an earlier hour, such as seven o'clock, and
you might not leave until four. These longer hours, combined with
more physically demanding work activity, will most likely leave you
very tired until your body adjusts. Additionally, students are usually
allowed more ' down time' in the form of breaks than employees. A
worker who takes frequent breaks is seen as lazy, unproductive or
lacking commitment to the position and the organisation.
T he school day is structured by the school's administrators. You are
assigned fixed periods to study various subjects, and there is usually
a bell to signify when one subject period ends and another begins. At
work you are usually expected to structure your work assignments.
You will soon discover that you must be able to multi task, that is, to
perform several activities simultaneously. For example, a secretary/
receptionist might be expected to receive visitors while manning the
switchboard and scheduling appointments, and so on.
Social interaction
School usually allows more oppo rtunity for social interaction than
work. You may find that is more difficult to make friends on the job,
because your colleagues are focused on getting the job done . There
may be some degree of social interaction after work, but you may
find that most of your colleagues have other commitments, such as
family responsibilities. Additionally, the majority of persons at school
are within your age group. As a new employee, you might have coworkers who are all significantly older.
Money and financial management
As a student, you usually have an allowance that you spend as you
wish. However, it is quite likely that your parents o r guardians
provide your food, clothing, housing and utilities. When you
3 3.6 The work environment
Exam tip
You should be able to
identify and discuss the implications of an action or
situation. An implication is a
conclusion that can be drawn
from something that is not
explicitly stated.
-
Application and honing of knowledge and skills
"
Activity
1 Research and prepare a
report on the labour laws
of your country, using the
following headings:
a
b
C
d
e
f
g
h
Introduction
Hours of work
Minimum wages
Equality of opportunity
Safe working
conditions
Protection of the youth
Maternity protection
Collective bargaining
('"
Key points
You should now
be familiar with the
requirements of the work
environment, including:
• labour laws
• the culture of the
organisation.
become employed, you usually have more money, but-also more
responsibilities. You might be expected to contribute to household
expenses and, of course, support yourself if you move o ut on your
own.
T he main focus at school is the acquisitio n of knowledge and skills.
At work you are expected to apply what you have learned in order to
fulfil the d uties and responsibilities of your job. Of course, you will
continue to learn. However, the main focus is on producing goods
or services rather than acquiring knowledge. You will be expected to
continuously hone or sharpen your work skills. This involves learning
how to do tasks efficiently and effectively. Efficiency is perform ing a
task skilfully to avoid wasting time and effort. Effectiveness involves
being able to achieve your objectives or produce the desired results.
Desirable attitude
.,,
Your attitude is your mental state. It is influenced by the interaction
of a number of factors, such as your feelings, values and beliefs.
Your work attitude will influence the quality of your working life,
including the rate at which you make advancement, your level of
job satisfaction and your relationship with your supervisors and
colleagues.
Test yourself
1 Outline SIX ways in which the culture at work differs from that at school.
2 Discuss FIVE ways in which you can prepare yourself from now for the
world of work.
End-of-unit multiple-choice - Unit 3
1
2
2
Which of the following will NOT be able to supply
information about a job?
A
Newspaper
B
C
Apparatus
Electronic media
D
Television
VACANCY
A well-established family
entertainment centre is seeking a
Part-time Customer Service
Representative
Which of the following would NOT be included in a
job description?
A
Name of position
B
Overtime hours
Requirements:
• A sound secondary education
• Excellent communication and interpersonal
skills
• Computer literacy
C Duties to be performed
D Name of supervisor
I .
You are interested in the job advertised below.
Knowledge of first aid is an asset
3
Which of the following documents outline details of
your educational qualifications and education?
A
Itinerary
B
Resume
C
Agenda
Apply in writing to: The Human Resources
Manager, P.O. Box 235, Kingston, Jamaica:
A
List THREE sources of information about job
vacancies, other than the newspapers.
B
State THREE aspects of the advertised position
that appeal to you.
C
Prepare a resume that is suitable for the
advertised position.
D
Write an appropriate application letter.
E
List SIX steps that should be taken in preparing
for the interview.
F
Identify FOUR ways in which the work
environment differs from that at school.
D Resignation letter
4
Which of the following should NOT be done in
preparation for an interview?
A
Get a good night sleep
B
Find out exactly where the company is located
C
Research all you can about the company
D Meet all the workers
5
When can a follow-up letter be sent?
A After a time lapse of six months
B Resignation from a job
C
No reply received to application
D All of the above
Structured questions
1
Assume that you are Pam or Terry Gayle, office
assistant employed by a high-tech corporation
located at 121 Pollyway Drive, Manza Grove District,
. Kingston. Your company is seeking to employ a
graphic design coordinator with a first degree in
computer technology. Prepare an advertisement for
the newspaper asking qualified persons to submit
their application by the end of the month.
••
3
Read the following job de_scription.
A regionally known manufacturing company
is recruiting a highly enthusiastic and creative
administrative assistant to work with the marketing
team. The successful applicant must have excellent
numerical, verbal and written communication skills,
strong organisational skills and be a good problemsolver. If you would love to travel throughout the
Caribbean, then this may be the job for you.
This is a highly demanding job in which the
employee will be required to work on several
assignments simultaneously and meet strict
deadlines. The individual selected for this position
must be able to work independently on their own
-;..:-==--=
._
-·
...,___
I
,
initiative as well as with a wide variety of people. A
keen interest in social media is highly desirable.
While post-secondary qualifications in business will
be accepted, a degree in business, preferably with a
major in marketing is preferred. An excellent working
knowledge of Microsoft Office software is absolutely
necessary. The ability to do web page design will
be an asset. Knowledge o f events management will
also be useful. Applicants should have at least two
years' experience in providing general administrative
support, preferably in a customer-focused
environment.
Job tltle
Attributes
Essential
Desirable
Skills required
1
1
2
3
4
5
Attainment
(qualifications)
1
Complete the table below to create a checklist for
the position. To do this you must:
Knowledge
1
1
2
2
A
Relevant
experience
1
1
have in order to do the job and list these as
essential.
Disposition
B
Identify the attributes that the applicant must
1
2
1
1
Identify additional attributes that will enhance
2
2
the applicant's ability to do the job well. List
3
these as desirable.
. C State THREE factors that you will consider when
deciding whether to apply for the position.
OBJECTIVES
By the end of this unit you
should be able to describe
the characteristics of an
information management
system.
An information management system is a method of collecting,
organising, storing, preserving and allowing the retrieval of
information. Each unit of information is called a record. Examples of
records include:
• the personnel file for an employee
• a purchase order
• a sales invoice
• a contract
• a work order for the factory.
Records are kept as evidence that transactions were performed.
Records such as contracts, bills and receipts are routinely created
as part of the daily activities of a business. Some records must be
created because they are not automatically generated as part of the
business activity. Examples include minutes of a meeting; notes from
a telephone conversation or correspondence sent and received.
Records are used to analyse past performance and plan the future
direction of an enterprise. They are used when planning and making
decisions in diverse aspects of the business, such as:
• allocating capital
• stock valuation
• monitoring trends
• assessing personnel requirements
• profit analysis
• budgeting.
A number of records are legally required according to government
regulations. Not all documents are records. A document is filed as a
record if it:
• is necessary for the successful operation of the organisation
• is required by law
• serves as evidence of a transaction.
Figure 4.1.1 Documents should be
filed as quickly as possible
Records should be stored as frequently as possible, because in a
busy office documents can accumulate very quickly. It is difficult
and time-consuming to locate items if documents are left in a
disorganised collection (Figure 4.1.1). The item may be misplaced or
lost. In addition to allowing documents to be found, proper records
management helps to keep items clean and neat.
/
r
4 4.1 Information management systems
Processes in information management
The creation and use of an information management system involves
a number of processes, as is sh.own below.
• Pre-sorting: The papers are placed in order and related sheets are
stapled together or linked with treasu1y tags. A desktop sorter,
such as the ones shown in Figure 4.1.2, makes this task easier.
Figure 4.1.2 Desktop sorters
• Recording: This involves the registering of information in the
system. Each record is assigned a unique identity, such as a title,
record identification number and date.
• Classification: Records are arranged into categories according
to which business activities they document. Classification makes
it easier for records to be accessed when needed. The different
systems for classifying records are di~cussed in Unit 4.3.
• Indexing: An index is a system of listing the records and their
location. Indexing makes it easier to retrieve information when it
is needed, by providing a summary of the information within the
system.
• Storage: Records may be stored physically or electronically.
Physical storage involves the use of folders, filing cabinets, index
cards and so on. E lectronic storage involves the use of technology
such as computers or microfilm.
• Preservation: Records must be kept safely for as long as they are
needed or as required by law.
• Retrieval: This involves making the records available when
needed.
• Disposal: Outdated records that are no longer needed·by the
business or required by law are removed from the system through
the \!Se of a documented process that shows when the record was
removed, who authorised its removal and how it was destroyed.
Shredding (see Unit 1.7) is one of the safest and most efficient
ways of disposing of unwanted documents.
·
I
4.1 Information management systems 4
Effective information management systems
The Hoshi Inn in Japan is
the world 's oldest hotel
in operation. Imagine the
number of records that have
been created since it was
established in the year 718!
Exam tip
You should be able to
distinguish between 'cycle
of information management
system' and 'steps in filing
a document'. You must be
able to show a relationship
between the need for
accurate records and the
company's policies and
practices.
.
An information management system should meet the following
requirements:
• Access: A good information management system makes records
easily available to authorised users within the department or
organisation.
• Security: This ensures the safety of the information system from
unauthorised access, alteration, tampering or destruction of
records. This includes storing files in fireproof cabinets where
possible. Confidential files should be locked away when not in use.
• Accountability: An information management system should
include a method of keeping evidence of the use of the
information. The maintenance of usage records helps to ensure
that the system is appropriately used and accessed only by
authorised persons.
• Reliability: The system should capture all necessary records,
organise them appropriately and make them available as needed.
It should ensure that no information is lost, misplaced or
inaccurately entered.
• Compliance: The records must be handled in compliance with
legal requirements and in keeping with sound business practices
and organisational policy.
• Expandability: The system should be capable of adjusting to the
growing needs of the organisation.
Test yourself
Key points
1 Examine the diagram below carefully.
Characteristics of an
information.management
system include:
•
•
•
•
•
data input
data storage
processing
retrieval of information
archiving.
Characteristics of
an effective records
management system are:
• access: levels of access,
passwords
• security: physical,
electronic
• accountability
• expansion.
a Which process of the information management system is missing
from the cycle?
(cont.)
GI
4 4.2 Electronic records management
b Where in the cycle should it be placed?
c How important is this process in the information management
system? Explain your answer.
2 Explain the meaning of the following terms
a Record
b Indexing
c Classification
c Retrieval
3 Discuss THREE factors that should be considered when designing a
records management system to ensure its effectiveness.
4.2 Electronic records management
OBJECTIVES
By the end of this unit you
should be able to explain
the essential features
of electronic records
management.
Activity
Research and prepare a brief
report on the international
standards for electronic
records management.
Computers are used for an ever-increasing range of business
activities, including communication, stock control, purchases and
sales and so on. Organisations are sending and receiving documents
in a wide range of electronic formats, including:
• word-processed documents
• digital images, such as scanned paper documents
• online forms, such as purchase orders from websites
• emails
• instant messages.
I
Many businesses are investing in integrated systems in which
documents generated by computers, such as sales invoices, are
automatically filed in their records, and paper documents are scanned
and stored. Electronic records management has become so common
that the International Organization for Standardizatio n (ISO), the
E uropean Commission and a number of governments have issued
guidelines fo r its use.
Benefits of an electronic filing system
• It reduces the physical space requ ired for storing documents.
• Information is immediately available o nline to workers and
customers.
• It reduces the number of staff that must be hired to manage records.
• It increases the speed with which documents can be located and
retrieved.
• Records created in vario us departments are available throughout
the organisation.
• It enables documents to be available for viewing by different
persons at the same time.
• It ensures that o nly autho rised persons are able to access records.
• It prevents documents from being misfiled, misplaced, damaged o r
lost.
4.2 Electronic records management 4
• Electronically stored documents are accepted by the legal
and regulatory bodies in many countries. However, they must
be prepared and maintained in keeping with the guidelines
established by the government for user records, security cont(ol,
audit trails and document history.
Limitations of an electronic filing system
• Records may be lost if the computer system crashes. Hence there
must be a schedule for the automatic backing-up of all records.
• Some countries have not yet modified their laws to accommodate
electronically stored documents. Hence the organisation may need
to store paper documents, such as signed contracts.
Processes in electronic records management
E lectronic filing systems use computer programs to handle the various
processes involved in records management. These processes are:
• capture
• processing
• storage
• retrieval ·
• disposal.
Records capture
Documents may be electronic or paper and may be on a variety of
media, such as hard drives, CDs or flash drives. A paper document
is captured by using a scanner to create a digital image that can be
viewed on the computer. Electronic documents are captured by
importing them into the filing system. This involves creating a copy
of the electronic document. If the document already exists on the
co_m puter network, then the filing system may 1,imply create a link to
the document and register its location.
Processing
Data input on a computer must be processed, that is organised,
sorted and indexed. Processing can be either in batches or in real
time. With batch processing the data are gathered over a period
of time and then all the data are processed together. In real-time
the data are processed as soon as they are input into the computer
system.
In Unit 4.1 you learned that indexing involves creating an ordered
listing of all records that are filed. The index should also include
all possible words and word combinations (also known as 'search
terms') _by which a document may be requested. Electronic document
indexing involves associating a document with the search terms.
This is called tagging. For example, an invoice may be tagged
with the invoice number, the transaction date, the seller's name,
GI
4 4.2 Electronic records management
the customer's name, the item purchased and so on. A letter may
be indexed by date sent, date received, sender's name, sender's
organisation and subject, to name a few. A text document may be
indexed by its contents.
Storage
Did you know ... ?
Lower-cost CDs deteriorate
more rapidly than more
expensive products. Quality
matters when you are storing
important business data.
l
Storage involves keeping the record securely so that it cannot be altered
or destroyed. Some storage media may become obsolete after time.
For example, magnetic tapes and zip disks are no longer commonly
used. High-capacity flash drives and external hard drives are now more
popular. The electronic filing system should therefore allow documents
to be changed from one storage medium to another as technology
changes. Some organisations use online storage facilities that allow
records to be accessed by authorised users via the internet.
Retrieval
Retrieval is the process of accessing records that are stored in the
system. Electronically stored documents may be accessed by doing a
search. Most students are familiar with using search engines to locate
information on the internet. A record search is similar. The user
types in the record tags or search terms and the computer locates the
document that matches the search criteria. If a text document has
been tagged by content, the user may search for phrases (groups of
words) within the record.
Archiving and disposal
Some business records may be archived or destroyed after a specific
period of time (see Unit 4.5). Documents can be archived on external
media, such as CDs, external hard drives or magnetic tape.
The electronic records management system is programmed with
a schedule for the archiving or disposal of document~ after the
specified periods have elapsed. Usually the system creates a list of the
documents that are past their retention period. The records manager
may then examine the list and authorise the disposal of the records.
In some cases the manager may find it appropriate to keep the
records beyond the retention period. The filing system automatically
creates a record of the destruction of documents.
Data security
.,""
Data security is concerned with:
• ensuring that only authorised persons have access to files
• preventing tampering of fil es
• ensuring that vital records are not destroyed
• . ·protection of the computer system from malicious software such
as viruses
• identifying persons who attempt these actions.
4.2 Electronic records management 4
Some files may be accessed and used throughout the organisation.
Others may be viewed only by authorised persons, such as supervisors
or managers (see Unit 4.6). The electronic system can be used to
identify the level of access for each file. Each person must enter
a user name and password before the file can be accessed. Files
should be backed up regularly in case the system fails. Backing up is
the process of storing the infoi-mation on an external medium. All
computers should have a good, up-to-date antivirus program.
Shared databases
Databases are organised collections of records. Databases can be
shared among departments and branches or externally with o ther
organisations. Figure 4.2.1 illustrates a shared database. Each
department inputs data into the central database. The data can then
be accessed throughout the business.
Manufacturing
Headquarters
Shared
database
a
H
&» d
II
Sales
Figure 4 .2 .1 Shared database
Electronic file control systems
Some organisations in which paper records are frequently accessed
and borrowed have found it feasible to invest in electronic file
control systems. Each fi le is labelled with a bar code and the file
information is stored o n the computer system. Each employee may
also have an identification card.with a bar code. A bar-code reader is
used to scan the borrowed file and the employee's card, and an out
record is automatically generated on the computer system (figure
II
4 4.3 Classifying records
4.2.2). When the record is returned, the file and employee's card are
scanned, and the computer amends the data to show the date and
time the file was returned.
Exam tip
You should be able to
discuss the advantages,
limitations and implications
of converting to an electronic
records management
system.
-
Automated systems may be used to generate and print reports
showing the frequency with which records are accessed, the
status and location of each file and so on. The system may also be
programmed to automatically produce no tifications when files have
not been returned by a specified time. Another advantage of an
automated system is that it immediately shows whether a person is
authorised to view a fi le.
Key points
While there. are many
advantages to electronic
records management, a
business must develop
strategies to deal with its
limitations.
The steps in electronic
records management
include:
1 capture
2 processing - batch or
real-time
3 storage
4 retrieval
5 disposal.
Figure 4.2.2 Using a bar-code reader in an electronic file-control system
Test yourself
1 a Identify THREE processes in electronic record management.
b Differentiate between batch and real-time processing.
2 Outline TWO advantages and TWO disadvantages of an electronic filing
system.
3 Briefly define the fe>llowing terms:
a Bar code
b Level of access
c Password protection
4 Identify THREE methods of storing information electronically.
4.3 Classifying records
OBJECTIVES
By the end of this unit you
should be able to classify
records.
I
Classification is the process of identifying and·arranging records
into categories. Classification enables records to be o rganised in a
structured a_n d consistent manner. It also increases the speed and
ease with which records can be accessed and retrieved. Classification
provides linkages between individual records by grouping them
4.3 Classifying records 4
according to some established characteristic. Records may be
classified according to the following syste ms:
• alphabetical - topical or classified
• geographical
• subject
• chronological
• numerical.
Alphabetical
Alphabetical systems arrange records in the order of the letters of
the alphabet. There are two main alphabetical classification systems
- topical and classified. Topical systems are used for relatively small
numbers of files. The records are arranged in strict alphabetical
order, one file after the o ther, with no grouping of related records.
The classified system is used for large volumes of records. The
records are grouped under broad categories according to common
characteristics and then arranged alphabetically in individual folders.
For example, records may first be classified according to whether they
relate to sales, marketing, distribution, purchases and so on.
Guidelines for using alphabetical systems
The following are general guidelines for filing documents
alphabetically. However, please be aware that some organisations
may have variations to these guidelines.
Personal names
Files must be placed in strict alphabetical sequence, letter by letter,
according to surname first. Fo r example :
·
• PETE R Hany
• PETE RS Audrey
• PETE RSO N E laine
If the surnames are the same, file by first name. For example:
• PETERS Jayne
• PETE RS Marie
• PETE RS Rodney
If the first names and surnames are the same, fi le by ini tial. For
example:
• ALI Shaffik F
• ALI Shaffik M
• ALI Shaffik S
If there are identical surnames, first names and initials, o r if the ·
initial is not known, file in the alphabetical order of the towns in
which the persons live. For example:
• CHARLES Judith Couva
• CHARLE S Judith Rio Claro
• CHARLE S Judith Siparia
Ill
4 4.3 Classifying records
F ile surnames beginning with 'St' as if they were spelled 'Saint'. For
example:
• St BERNARD Amy
• SANTANA Claudia
• SAVOY Cheryl
. T he sp aces are ignored for surnames beginning with prefixes such as
La, De, Mac or Mc. For example, L a Seiva, De Freitas, Mc Crae a nd
Mac Donald will be filed as:
• DeFreitas
• LaSe iva
• MacDona ld
• McCrae
Hyphenated surnames are placed in order based on the first part of
the surname first. For example Farrell-Smith, Farley-Williams a nd
Farrell-Douglas will be filed as:
Farley-Williams
Farrell-Douglas
Farre ll-Smith
T itles such as Mr, Mrs, Ms and professional titles such as Dr,
Professor and Reverend are usua lly disregarded. For example, Mr
Davenand Ramsaran, Professor Kyen Chong, Dr Allyson E dwards
will be filed as:
• CHONG Kyen (Prof)
• EDWARDS Allyson (Dr)
• RAMSRAN Devanand (Mr)
Business names
Indefinite a nd definite articles (a, an, the) are ignored in business
names. For-example, The Bargain Shoppe, An Exceptional
Experience, A Dream Come True will be filed as:
• Bargain Shoppe (The)
• Dream Come 'Il·ue (A)
• Exceptional Experience (An)
Acronyms are treated as a single word. For example, VIP Security,
CARICARGO Limited, ASKA Consultants will be filed as:
• ASKA Consultants
• CARICARGO Limited
• VIP Security
In the past, business names that include personal names were filed
using the surname first, for example, S D avids and Sons wou ld be
fi le d as DAVIDS Sand Sons. However, many organisations now use a
simplified system in which such business names are filed as written. If
the '&' symbol is used, it is filed as if spelled out 'and'.
m
4.3 Classifying records 4
Advantages of alphabetical filing
Activity
• It i_s a system with which most persons are familiar.
You were given the following ·
files to order using the
alphabetical filing system:
Jake Silvera, Donald Brown,
Donna Brown, St Patrick
Blake, Janet M. Clawson,
Janet P Clawson, Silvera
Graham-Browne, Dr Jack
Gunning.
• It may not be necessary to have an index to the records.
• It enables files to be fo und quickly.
Disadvantages of alphabetical filing
• Some letters are used far more frequently than others. Letters
such as Q and X may take up minimal space, whereas letters such
as A and S may span several drawers.
• There may be misfiling because of confusion over the filing
practices of the specific o rganisation.
• T here may be challenges in filing and retrieving if a name is
changed, for example, because a woman gets married or a
company experiences a takeover.
• It is inefficient when large volumes of records must be filed.
• It is easy for unauthorised persons to find records.
1 Explain FOUR rules to be
considered when ordering
a file in alphabetical order.
2 Arrange the files above
in the order they would
appear on a file folder
using the alphabetical filing
system.
3 Find out the meaning
of the term 'nothing
comes before something'
in regard to record
management.
~
Geographical
J·
Organisations that operate in several distinct locations may find it
advantageous to classify their records geographically. Major headings
can be countries, states, counties, cities or any other geographical
location. T he records may then be sorted alphabetically, numerically
or chronologically. For example, a ministry of education may group
its records according to school districts, before arranging them
according to the names of the schools.
Advantages of geographical filing
• Related files are grouped tog~ther, making it easier to locate and
analyse data within a region.
• Large sets of records are broken up into more manageable sections.
Disadvantages of geographical filing
• Not all organisatio ns operate across major geographical regions.
• An organisatio n may have several branches within a specific city or
region, requiring further classification of the records.
' Subject
Subject filing involves grouping and arranging records according to their
topic. The person doing the filing must have a thorough knowledge of
the organisation in order to correctly determine how an item should be
filed. The steps involved in subject fi ling are as follows:
1 An index of subjects must first be established. This index should have
major subject classifications as well as subheadings. For example,
4 4.3 Classifying records
2
3
4
5
6
7
the main heading 'Human ·resources' may have subheadings such as
'Recruitment', 'TI·aining', 'Health and safety' and so on.
The document is read to determine its main subject. Enclosures
and references to previous correspondence may provide clues to
assist in deciding on the subject.
The appropriate primary heading and subheading are selected
from the index.
The heading is written o n the top right corner of the document.
The records are checked to determine whether a file already exists.
T he document is placed in the appropriate file or a new folder is
labelled if necessary.
If the material relates to more than one subject, a crossreference is done (see Unit 4.4 for more information on crossreferencing) .
Advantages of subject filing
• It is convenient to use the filed documents because related items
are grouped together.
Disadvantages of subject filing
• Files can become very cumbersome as there may be a large
number of items under a given subject.
• It is.time-consuming to determine under which subject an item
should be fi led.
• Some documents may relate to more than one subj ect.
Chronological
Chronological filing systems arrange records by date. The
chronological fi ling system is used when actions must be taken
in a regular cycle. For example, an organisation that needs to
renew permits annually may file such applications chronologically.
Correspondence files, utility bills and periodically published
documents are often arranged using this system.
Advantages of chronological filing
• It is easy to set up and use this system. The latest ite m received is
simply placed at the front of the file.
• It is easy to locate and identify outdated records.
Disadvantages of chronological filing
• It requires the creation of an extensive index to assist in locating
documents.
• It is more time-consuming to retrieve records than with most other
systems.
• Users must make sure that the same date format is used for all
files. It will be difficult to use the system if some files are labelled
4.3 Classifying records 4
month followed by date, followed by year (mm/dd/yyyy) whereas
others are labelled date, then month, then year ( dd/mm/yyyy).
Numerical
Numerical filing systems assign a number to each file. The records
are then arranged in sequence, from the smallest number to the
largest. An index is created to match the record name to the assigned
number. Numerical filing is used in a number of organisations, for
example, the receptionist in a doctor's office may assign a number to
each patient record when the patient is first registered.
Advantages of numerical filing
• The system is easy to set up and use.
• It is easy to expand as the number of records increase, since new
numbers can be assigned without disturbing the sequence of
existing files.
• Many records already have unique identifying numbers, such as
cheques, invoices and work orders.
• It is easy to identify the oldest files because they have the lowest
numbers.
• It is less likely that documents will be incorrectly filed .
• It is difficult for unauthorised persons to locate files.
Disadvantages of numerical filing
Exam tip
Make sure that you learn and
can apply the guidelines for
classifying records under
each system.
• Users usually ask for files by name, not by number, so an index is
required.
• T here is a risk that numbers can be transposed while filing, such as
writing 391 instead of 319, resulting in records being misfiled.
Electronic filing
Key points
There are different
systems for records
classification, such as:
•
•
•
•
•
alphabetical
geographic?!
subject
numerical
chronological.
As you learned in Unit 4.2, electronic filing uses information and
computer technology in the storage, management and retrieval of
records.
Test yourself
1 Identify TWO ways in which records can be classified.
2 Differentiate between the topic al and classified methods of filing . .
3 List THREE filing systems that can be used in an office.
4 State TWO advantages and TWO disadvantages of any three methods
of filing you have studied.
II
4.4 Indexing
OBJECTIVES
By the end of this unit you
should be able to explain
how records are indexed
and managed.
Most students are familiar with using the indexes at the back of
textbooks to locate the pages on which the desired information
may be found. An index is an ordered listing of all the titles under
which the records may be fi led. An index may also be called a
relative index, catalogue, authority list or access guide. Indexing is
the process of deciding where a record should be filed. The word or
word combination under which the item is filed is called the index
reference, index code or filing point. Unit 4.3 showed that there are
several different systems for classifying information. For example,
a letter may be referenced by the sender's name, the name of the
organisation, the subject matter, the type of letter and so on.
Cross-referencing
Disaster management agencies
See Evacuation procedures
Figure 4.4.1 Cross-reference index
entry
Sometimes a document can be filed fo more than one location. Under
these circumstances, a cross-reference is necessary. The document
is filed under one heading and listed in the index under its other
possible headings, along with a note that states where the file is
located. For example, a document outlining emergency evacuation
procedures may also contain information on national disaster
management agencies. Figure 4.4.1 shows how the document will be
cross-referenced. Cross-referencing is also done when individuals or
organisations change their names.
Out sheets and charge-out cards
Files are designed to be used. However, it is vital to maintain records
whenever a file is removed, even if the borrower says it is only for
a short time. Out sheets and charge-out cards a re two methods of
recording the removal of filed information.
An out sheet is a sheet of durable paper tha t is attached to the front
of a file. The out sheet bears the name of the file for which it was
prepared. Whenever a record is removed, the name of the borrower
and the da te borrowed is recorded on the out shee t. The out sheet is
stored in an out file until the record is returned. The out sheet is then
re-affixed to the file and the return date is noted.
A file out card is used to mark where a file has been removed and
to record when and by whom a file was borrowed. When a file is
removed from the system, a charge-out card is put in its place. The
charge-out cards are the same size as the files and are printed with
spaces for identifying the file's contents, the name of the person
removing the file and the date. They usually have a distinctive colour
or border, making it easy to identify where a file is missing (Figure
4.4.2) . When the fi le is returned, the charge-out card is removed and
the return date is recorded.
4.4 Indexing 4
OUT
File name
Out name
Signature
Date taken out
Date returned
V.S. K.ellr OJJd Son
/11AVIS JO/JES
/11a.vis Jones
l?/08/ 2012
2l/ 0812 012
So-FtCLLre Se Cl..irlfy
KAI< EIJ SEALE'/
K.o.ren Sealer
2710?/20l2
Figure 4.4.2 Charge-out card
Did you know ... ?
Your school library has
a catalogue that gives a
comprehensive listing of its
contents, enabling users
to quickly locate books
and other printed material.
However, most students
prefer to spend a lot of time
searching the shelves.
Tickler file
A tickler file is a reminder system that is designed to keep track of
tasks. In records management, a tickler file alerts the records clerk
that a file has not been returned. Each time a record is bor rowed, an
index card is filled o ut with the fi le name and borrower's name. The
index cards are filed chronologically, as is illustrated i_n F igure 4.4.3.
If the file is not returned after a specified period of time an enquiiy is
made. T he use of tickler files helps to ensure that borrowed records
are returned promptly. This helps reduce the risk of files being
misplaced, lost or damaged.
Card indicators
Figure 4.4.3 Tickler card system
Card indicators are similar to the cards that are found in the books of
libraries that use a manual lending system. The card shows the index
name or number of the fi le and is affixed to the relevant file. When a
file is borrowed, the indicator is removed and placed in a tray or box,
usually in alphabetical or numerical order. The borrower's name and
the date of borrowing are usually entered on the card, similar to the
way these are entered on an o ut sheet. When the record is returned
the card indicator is re-affixed before the fi le is placed in the drawer.
The use of card indicators eliminates the need to physically check
whether a file is in the fi ling cabinet. The records clerk simply checks
through the tray of card indicators.
Additional indicators
A fi ling system should be arranged so that it is easy to determine
where a record is located. Indicators such as drawer labels, index
guides and folder tabs are commonly used. Each drawer is labelled
to show its contents. I ndex gu ides are used to separate folders into
smaller groups. This eliminates the need to push folders back and
forth while searching for the desired record (Figure 4.4.4). Each
record is stored in a fo lder with a labelled tab. The tab label should
Ill
4 4.4 Indexing
be typewritten and reinforced to minimise wear and tear. The fo lder
tabs should be visible immediately on opening the dr awer.
Colour-coding
Colour-coding is used to help the user locate files quickly. A different
colour folder or folder tab is used for each group of letters or numbers
(Figure 4.4.5). Colour-coding can ~e used with all classification systems.
Colour-coding makes it easy to see if a document has been misfiled (see
Unit 4.2 for searches and shared databases).
Figure 4.4.4 Index guides
Invoices
Payments
Wages
Expenses
Exam tip
Ensure that you can arrange
information in the required
indexing order.
Cash Sales
Figure 4.4.5 Colour-coding records
Test yourself
Key points
Methods and procedures
for indexing and crossreferencing include:
• out sheets
• tickler file
• card indicators
• colour-coding
• searches
• shared databases.
II
1 Distinguish between out sheets and charge-out cards.
2 Give TWO reasons for cross-referencing a file.
3 You were recently assigned to the file room as a clerk. Your immediate
supervisor has requested two files that you are unable to locate at the
moment. You were advised that in order to keep track of files you need
to develop a tickler system.
a Explain the term 'tickler file'.
b Suggest TWO benefits to be derived from a tickler file system.
c Discuss ONE other system that could be used to keep track of files.
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,
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., .
4.5 Dealing with inactive files .
OBJECTIVES
By the end of this unit you
should be able to outline the
procedures for dealing with
inactive files.
A record passes through three stages in its cycle of existence:
• Active: An active record is one that is currently being used by the
organisation. The record must be readily available in its original
form. U sually, recently created records are most active.
• Inactive (dead): An inactive or dead record is one that is no longer
being used. These records are placed in storage. Some inactive
records cannot be destroyed because of legal requireme nts or
because the information may be needed in the future.
• Disposal: A record may be disposed of when it is no longer
required.
Retention periods
A rete ntion schedule indicates the period of time for which an
organisation should retain a record. In many countries business
letters may be legally destroyed a t the e nd of three years and financial
records must be kept for a minimum of seven years. Some other
records may be identified as permanent records that should never
be destroyed. Some examples of permanent records are company
registration documents, contracts, a nnual fina ncial statements and
tax returns. The organisation should e nsure that:
• an inventory of records is maintained
• records are classified according to their purpose and retention
period, as ' permanen t', 'temporary', 'current', 'inactive' and so on
• the re tention schedule is prepared with a specific time for the
review of files ( organisations use different time periods, such as
quarte rly, annually, at the end of a financial period and so on)
• files are periodically examined to de termine whether they are to
be retained or disposed of.
The o rga nisation's policy for retaining records is determined by
several factors, including:
• how often the record is requested or used
• what type of information it contains
• what laws govern the period of re te ntion
• how useful the information will be in future decision-making.
It is beneficial for an organisation to have a retention system with a
planned, systematic method for dealing with outdated files. Some of
the benefits are:
• it is easier to retrieve records
• it saves space a nd prevents overcrowding
• filing equipme nt is mo re efficiently utilised.
Methods and procedures for dealing with inactive files
When a dead file is removed from the active area the file index must
be updated. Many organisations also maintain a removal register that
shows which recoi·ds have been removed from active storage and the
"
4 4.5 Dealing with inactive files
•••••••
•••••••
•••••••
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•••••••
•••••••
•••••••••
•••••
•••••••
•••••••
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date of removal. Inactive fil es that are re moved fro m the active filing
area may be dealt with in the following ways:
• use of microfilming and electronic storage
• archiving
• disposal.
Use of microfilming and electronic storage
Microfilm is used to make miniature copies of docume nts when the
physical copy is no lo nger required. The docume nt is photographed
and the image is reduced to the size of a postage stamp and printed
o n a transpare nt film. The two most common forms of microfilm are
rolls and microfiche (F igure 4.5.1).
Microfiche is a sheet of film that holds 14 rows and seven columns
of docume nt images (98 in total). Microfiche is more convenient to
use than rolls because it allows the user to go directly to the desired
image.
Figure 4.5.1 Microfilm on roll and
microfiche
Figure 4.5.2 Microfilm and reader
The re are a number of reasons why microfilm continues to be used as
a docume nt storage medium:
• Space efficiency: Microfilm can reduce an image by as much as
99 pe r cent. One roll of microfilm can ho ld more than 2,000 le ttersized docume nt images.
• Durability: It is estimated that microfilm can last more than 500
years if it is stored properly.
• Simplicity: Microfilm is easy to use. The film is loaded onto
a machine called a microfilm reader. The lens on the reade r
e nla rges the image o n the microfilm and projects it on a screen,
allowing the user to see the contents (Figure 4.5.2).
• Affordability: Microfilming is ve1y affordable. T he saving on
storage space and equipme nt is far greater than the cost of the
machine.
Unit 1.8 discussed the use of compu ter technology, including
scanners. A scanner is used to create a digital image of a docume nt
that can be saved on a storage medium such as a ha rd drive or a
CD. A single CD can hold up to 15,000 document images. Unit 4.2
provides a detailed discussion of electronic records management.
Archiving
Archiving is the process of relocating records from the active filing
area to storage. Records are a rchived if they have legal, fisca l,
administrative or historical value. Several factors must be considered
when creating an archive area:
• Size: Is the area capable of accommodating future storage needs?
• Access and security: Is it co nveniently close to the office area? Is it
safe fro m unauthorised access? Is there a syste m for documenting
when a record is re moved from the archive?
ID .
4.6 Legal issues affecting records management 4
• Environmental controls: Can the temperature and humidity be
regulated? Is it safe from risk of water damage in the event of a
flood? Is it fire-safe?
• Work area: Is there adequate shelving? Is it well lit and well
ventilated?
• Maintenance: Is the area cleaned and maintained to prevent the
accumulation of dust and clutter?
• Organisation: Are the records placed in storage cartons? Are they
well labelled, with the department name and date of archiving? Is
there an index of archived records?
Did you know ... ?
Some businesses specialise
in providing archive
space, equipment and
supplies. Some also offer
complementary services, such
as secured transportation
seNices, document scanning
and storage, and secure and
confidential destruction of
unwanted records.
Disposal of files
Exam tip
The procedures for handling
active (current) files are
not the same as those for
inactive files. Learn the
difference.
-
-
Records that are identified as wo rthless at the end of their retention
period can be permanently removed fro m the system and destroyed.
Some documents may simply be discarded in the trash. However,
sensitive documents must be shredded or incinerated. T his
includes documents that contain information given in confidence,
personal details about individuals, or commercial, legal o r financial
information.
Key points
Test yourself
Techniques and
procedures for dealing
with inactive files include:
1 Outline TWO procedures for dealing with inactive files.
2 Explain the THREE stages in a record cycle of existence.
3 Explain the meaning of the term 'microfiche'.
• use of microfilming
• retention periods
• disposal of files
• archiving
• backing up to external
storage media.
4 a What is an archive?
b State FOUR guidelines that should be followed when deciding
whether a record should be archived.
c Discuss FOUR factors that must be considered when creating an
archive area.
4.6 Legal issues affecting records management
OBJECTIVES
By the end of this unit you
should be able to describe
the main legal stipulations
governing access to and
retention of documents.
It is vital for persons who handle records to be knowledgeable about
the regulations that govern access to and retention of documents.
The specific laws va1y from o ne count1y to another; however, the
general principles are usually the same.
'
Nature and limitations of the right of access
Personnel files
T he industrial relations laws of many countries ensure that current
and former employees have a right to access the information in
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4 4.6 Legal issues affecting records management
their personnel files at reasonable times and intervals. Therefore,
employers should ensure that at least one of the following is
facilitated:
• Keep a copy of each employee's records where the employee
reports to work.
• Make the records available at the place of work within a
reasonable amount of time.
• Allow the employee to inspect the records where they are stored,
with no loss of earnings to the employee.
The laws generally apply to personnel files that are kept in a filing
system as well as computer records. This includes records that
relate to:
• employee's performance
• any grievance concerning the employee
• payroll records
• employee exposure to potentially hazardous or toxic materials.
There are limitations to this right of access. For example, the
following may be exempt:
• documents containing legal advice
• data intended to be used for management planning
• records about negotiations with an employee.
Additionally, some countries require that employees must make a
written request for access to this information.
Government records
A significant number of countries have laws that regulate the right
to access information. For example, Jamaica's Access to Information
Act and Trinidad's and Belize's Freedom of Information Acts give
the public the right of access to official government information.
The underlying principle of these laws is that individuals and
organisations have a right to get information about the government's
activities and policies, including free access to many of its documents
and records. Documents and records include:
• written documents
• graphs, plans, maps or drawings
• photographs
• discs, tapes, soundtracks or other sound recordings
• films, including microfilm.
However, official documents are exempt under certain circumstances,
such as if:
• the access would adversely affect the defence, security or
international relations of the country
• the document contains confidential information that was provided
by a foreign government or international organisation
• disclosure of the records could endanger a person's life or allow a
person to avoid being prosecuted by law
4.6 Legal issues affecting records management 4
· • access would have a considerable negative impact on the country's
economy
• disclosure would infringe the privileges of parliament.
Parliamentary privilege
Parliamentary privilege is the protection granted to members of
parliament to ensure that they have complete freedom of speech.
This means that legislators are granted protectic;m from lawsuits and
criminal charges for statements made during debates or proceedings
in parliament. Parliamentary privilege implies that:
• members of parliament are able to debate matters of importance
freely
• parliamentary committees can conduct enquiries and
investigations effectively and without any interference
• members of parliament may not be sued if they make defamatory
statements when participating in debates
• members are able to raise issues that they may have otherwise
avoided because of fear of prosecution.
However, the speech and actions of members are governed by
the standing orders of parliament. These standing orders prohibit
members from:
• making statements that are deliberately intended to mislead the
parliament
• using offensive or insulting language
• referring to any matter that is currently being tried in court
• questioning the conduct of the president or prime minister or
other members of parliament and judges, except on a motion
for that particular purpose. However, questions may be put to a
minister relating to any matter, subject or department for which
the ntinister is responsible.
Infringement of copyright
Copyright is the right to control the reproduction or adaptation of
creative and artistic works for a certain period of time. Copyright
protects works such as music, books, software, movies, paintings and
photographs. Copyright enables the producer of a work to control
the use of the material in a number of ways. Copyright infringement
occurs when a work is reproduced, displayed or distributed without
the permission of the copyright holder. There is the risk that
copyright may be infringed when documents are microfilmed or
electronically stored. For example, the records clerk may choose
to scan an article that was printed in a trade journal. However, the
copyright holder may have prohibited the following:
• making copies by any means, including typing, photocopying,
scanning into a computer, and copying CDs or DVDs
• issuing copies of the work to the public
4 4.6 Legal issues affecting records management
• publishing the work on the internet or making it available online
for download to a computer
• broadcasting or performing the work in public.
Defamation
Defamation is any false accusation or malicious misrepresentation
of the words or actions of an individual, designed to damage the
individual's fame, reputation or good name . The laws of many
countries also protect organisations from defamation. There are two
aspects of defamation:
• Slander: Spoken words
• Libel: Written or broadcast communication, including items
published electronically.
Sometimes an employee who is fired may sue an organisation for
defamation of character. The employer must prove that it has not
published false statements about the reasons for the termination of
employment. Therefore, the employer must maintain good personnel
records and ensure that there is sound evidence for any adverse
judgements that are made.
Breach of confidence .
Breach of confidence, also known as breach of privacy, occurs when
confidential information is disclosed. Organisations collect and store
a lot of personal information about individuals for various purposes.
For example, banks and lending institutions gather financial
information, such as a person's earnings, spending habits and levels
of indebtedness. An employer collects personal information, such
as an employee's medical history. If such information is disclosed
or used in an unauthorised way, then a breach of confidence has
occurred. The law varies from one country to another; however,
many countries allow the victim to sue the offender if such a breach
occurs. T herefore, an organisation must ensure that personnel files
are kept secure and that access is strictly controlled. Persons who
are authorised to view confidential information may be required to
sign a contract that specifically prohibits disclosure of confidential
information.
Secrecy provisions
Exam tip
Make sure that you
understand the legal
stipulations for the
management of rec_ords,
including employee right~ of
access.
Ill
A trade secret is any valuable commercial information, such as
inventions, ideas and manufacturing processes, that provides a
business with an advantage over competitors who do not have that
information. Two well-known examples are I<FC's 11 secret herbs
and spices, and the Angostura bitters recipe. A business must take
reasonable steps to safeguard its trade secrets from disclosure:
Employees who work with trade secrets are usually required to sign
a contract that prohibits them from ever revealing their employer's
trade secrets to a competitor or the general public.
4.7 Filing equipment and supplies 4
Test yourself
Key points
Most countries have
regulations that control
the following:
• nature and limitations of
the right of access
• parliamentary privilege
• infringement of copyright
• defamation
• breach of confidence
• secrecy provisions.
1 State how the government of your country seeks to safeguard the
access and retention of documents.
2 Discuss TWO ways in which a breach of co,:ifidence may occur.
3 Explain the difference between these terms:
a Slander and libel
b Copyright and secrecy provisions
4. 7 Filing equipment and supplies
OBJECTIVES
By the end of this unit you
should be able to explain
. the use of equipment and
supplies in records and
information.
It is important to ensure that stored documents are kept neat, well
ordered and secure. A variety of equipme nt is used for the proper
filing of documents.
Filing cabinets
F iling cabinets may be vertical, lateral or horizontal. Vertical filing
cabinets are the most commo nly used (Figure 4.7.1). They are tall
and narrow and have drawers that a"re deeper than they are wide.
F iles are arranged one behind the o ther, from front to back.
. Lateral filing cabinets are wider than they are deep (Figure 4.7.2).
The files are usually arranged from side by side, from left to right.
They are more space-efficient than vertical. cabinets, because it is not
necessary to pull the drawers out as far in order to view all the files.
Some organisations must store large documents, such as plans,
engineering drawings and maps, without folding or rolling them.
Horizontal plan filing cabinets are designed for this purpose. T he
drawers in these cabinets are wide and shallow.
CJ
Figure 4. 7 .1 Vertical filing cabinets
Figure 4.7.2 Lateral filing cabinets
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4 4 .7 Filing e_quipment and supplies
Filing supplies
Supplies are the items that are used to faci litate filing. These are used
up over time and must be replenished.
Folders
Folders are used to separate, enclose and protect documents. The
two types of folders most commonly used in offices are paper fi le
folders and hanging folders. Paper file folders are usually made of
manila or heavy stock card. Traditionally, fi le folders were beige, but
they are now available in a variety of colours.
Figure 4.7.3 Hanging folders
H anging folders are used to keep files upright in a drawer (Figure 4.7.3).
They are designed to hold several file folders and are made of ve1y
durable material. They have reinforced bars with hooks that span the
width of the drawer. Some hanging folders have pockets that can hold
business cards, memos, photos, disks, CDs, or similar small, flat objects.
Dividers
Dividers are used to separate files and sort them into categories,
thereby making retrieval easier (Figure 4.7.4). They are made of
sturdy, fairly rigid material, such as plastic or heavy card stock.
Figure 4? .4 Dividers
Minute sheets
A minute sheet may be used when a number of persons must read
and comment on the contents of a file (Figure 4.7.5). The minute
sheet is attached to the inside of the front cover of the file. It is used
to record the movement of the fil e from user to user. The comments
on the minute sheet may:
• give instructions
• make requests
• provide background information on the issue
• suggest action to be taken
• record action that has been take n.
File minute sheet
File no.
Folio
number
Date of
document
Figure 4.7.5 Minute sheet
Comment
Referred to
Date
referred
Signature
4.7 Filing equipment and supplies 4
Index cards
An index card is a piece of heavy paper stock that is cut to a standard
size, such as 3 x 5 in. (76 x 127 mm) 4 x 6in. (102 x 152mm)
and 5 x 8 in. (127 X 203 mm). Index cards are used for a variety of
purposes, such as making notes or cataloguing files (Figure 4.7.6).
Charge-out cards
Figure 4 .7.6 Index card catalogue
See Unit 4.4 for out sheets and charge-out cards.
_Treasury tags and other fasteners
Exam tip
A treasury tag is a piece of string 30 to 80 mm long, with a metal or
plastic bar at each end. The treasury tag is passed through a hole that
is punched in the document. Other types of paper fasteners include
split pins and clamps (Figure 4.7.7).
Ensure that you know
the difference between
'equipment' and 'supplies'.
Did you know ... ?
Some flash drives offer as
much as 256 GB of storage,
and the capacity continues to
increase.
l
- -
Figure 4 .7 .8 Flash drives
l
I
·
Treasury tags
Fold-back clamps
Split pins
Figure 4.7 .7 Various paper fasteners
Electronic storage media
Electronic media are used to store and retrieve information by using a
computer. E lectronic storage media include CDs, DVDs and flash drives.
CDs can store large amounts of information. One CD can store
approximately 375,000 pages of text. DVDs can store more than 10
times that amount. DVDs can be used to store large files, such as
video recordings of conferences.
A USB flash drive is a small, relatively inexpens ive, portable storage
device that connects to the computer via a USB port (Figure 4.7.8). It
is known by a variety of names, including memory stick, finger stick,
pen drive, jump drive and memory key.
Test yourself
Key points
Filing equipment and
supplies include:
• filing cabinets and
folders
• index cards
• minute sheets
• charge-out cards
• dividers
• treasury tags
• fasteners
• microfilm and mic rofiche
• external storage media.
Paediatric Care Solutions Ltd specialises in child care. The company
has a large client base and treats hundreds of children daily. The
~ompany is experiencing difficulties storing the clients' files. The
business is attempting to procure filing ~quipment to store fi les.
1 Advise the purchasing manager on the most suitable file cabinets to
purc hase. Give TWO reasons for your answer.
2 a Recommend suitable folders to be used to store files. Give reasons
for your answer.
b Identify TWO ways in which documents can be fastened together in
file folders.
3 Discuss TWO electronic storage media you would use to store the
information.
·
4 Define any THREE of the following:
a Zip disk
b CD
c Flash drive
d DVD
e Hard d isk
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,.
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.·•
4.8 Centralised versus decentralised filing
OBJECTIVES
By the end of this unit you
should be able to:
• differentiate between
centralised and
departmental filing
systems
• diseuss the organisation
and operation of records
management systems
for small and large-scale
businesses.
One of the most important records management decisions an
organisation must make is whether the filing system should be
centralised or departmental (decentralised). Usually, in a small
business, records are stored and managed from a single location
(centralised filing). However, some large-scale operations may find it
more beneficial to have files stored and managed by each department
(decentralised filing). An increasing number of businesses choose to
use computers to create electronic records management systems that
make files available throughout the organisation.
There are advantages and disadvantages to each system. The choice
of filing systems is influenced by factors such as:
• the size of the organisation
• the location and distance between departments
• the volume of records that is created
• the frequency with which records are accessed
• the number of departments that may need to use the same
documents.
Centralised filing systems
Centralised filing is the placement of the filing equipment and
personnel for the entire organisation in a single location, which is
accessible to all other departments (Figure 4.8.1).
I
Figure 4.8.1 Centralised file room
4.8 Centralised versus decentralised fili
Advantages
Disadvantages
• More cost-effective to have a single
records management department
• Requires the employment of fulltime records management staff
• Reduces duplication of filing
equipment and documents
• Records may be too far from the
personnel who need to use them
• Ensures that all related data are
kept together
• A significant amount of stored
information may never be requested
by other departments
• Enables the most efficient use of
storage space
• There is greater standardisation of
filing methods, resulting in greater
accuracy and quicker retrieval
• Records management can be
handled by trained personnel,
thereby increasing efficiency
• There is better supervision and
control over the creation , retention,
use and disposal of documents
• It is possible to achieve high levels
of security when documents are
maintained in a single location
• Staff can ensure that documents
are seen only by authorised
users, preserving confidentiality of
sensitive information
• Files are kept in a single location,
so all personnel know where to go
to get desired information
• There may be delays in obtaining
urgently required records because
of charge-out procedures,
messenger delivery problems or
because the documents are in use
by another department
• Departments may find it
inconvenient to conform to the
rules regarding timely return of
documents
• The records management staff may
not have the level of specialised
knowledge needed for effective
subject filing of documents
• There can be wastage as
employees may choose to make
copies of documents and maintain
personal filing systems in order to
have records close at hand
• The records management staff will
have access to records that are
private or confidential, and this may
compromise security
Table 4.8.1 Th.e advantages and disadvantages of a centralised filing system
Decentralised filing systems
Decentralised filing syste.ms involve the placing of filing locations
in departments, offices or individual workstations (Figure 4.8.2).
The filing system is usually controlled and maintained by the person
who created or received the documents. D ecentralised filing may
be used in large organisations, for confidential documents, when
records are frequently accessed and used by many persons and where
departments are physically far apart.
Figure 4.8 .2 Decentralised filing
4 4.8 Centralised versus decentralised filing
Advantages
Disadvantages
• Records are located close to the
workers who use them, reducing
delays in accessing information
• There is a high level of duplication
of records, resulting in higher costs
• There is greater flexibility regarding
the time for using and returning
records
• Personnel usually prefer to be
in control of their own filing and
retrieving
Did you know ... ?
Whether records should be
centralised or decentralised
is a difficult and controversial
decision to make.
Exam tip
("
("
• Does not require a large, central file
area
• The documents are filed by the
persons who have most knowledge
of their content and use
• It is possible to maintain
departmental secrecy of sensitive
information
("
('
("'
Key points
Centralised filing is the
placement of the filing
equipment and personnel
for the entire organisation
in a single location that
is accessible to all other
departments.
Decentralised filing
systems involve the
placing of filing locations
in departments, offices or
individual workstations.
• There is usually no consistency in
filing methods, as each person or
department may choose to use a
different classification system
• There is a lack of expert supervision
and control in the creation,
retention, use and disposal of
records
• There can be confusion over who
should retain documents that
concern more than one department
• Related data may be filed in
different places, resulting in
fragmented records ·
Combination systems
Many organisations choose to use a combinatio n of centralised
and departmental filing. Records that are relevant to the entire
organisatio n may be filed centrally, whereas de partment-specific
records may be filed within each department. A standardised filing
system is established throughout the organisation. A file plan is set
up to document where each record is located, enabling all personnel
to know where the records may be found and who is responsible
for maintaining them. A records manager or records management
department is appointed to coordinate and maintain the file plan and
to ensure that the filing procedures are followed. A locator index is
maintained centrally for records that are filed in each department,
enabling records to be located quickly.
Test yourself
1 Discuss any THREE factors that should be considered when deciding
on an appropriate filing system.
· 2 Differentiate between 'centralised' and 'decentralised' filing systems.
3 State TWO advantages and TWO disadvantages of centralised filing.
'
m
• There is usually a lower level
of security and control over the
records
Table 4.8.2 The advantages and disadvantages of a decentralised filing system
Many candidates have
difficulty with questions
related to records
management. Ensure that
you understand all aspects of
this topic.
("'
I
• Does not require full-time
specialised records management
staff
• More filing equipment and supplies
are required
'
1
4.9 The records (information) management clerk ,_
'
OBJECTIVES
A records management clerk is responsible for ensuring the efficient
and effective filing, storage and retrieval of information. This
includes the analysis and classification of business records, documents
and other information, such as video and audio recordings, and
photographs or digital images of scanned documents. Some of the
information handled by a records management clerk is sensitive and
confidential, for example, an employee's medical history.
By the end of this unit you
should be able to describe
the responsibilities, duties
and requirements of a
records (information)
management clerk.
The duties of a records management clerk include preparation,
management and retrieval of records.
Preparing and processing records
• Determine how records should be classified.
• Index records using an appropriate system.
• Place records in order in the physical fi ling system, if this method
is used (this includes the labelling of file folders for new records
when necessary).
• Scan documents and upload into electronic systems if this method
is used.
• Ensure that there is an adequate supply of filing requirements,
such as labels, index cards and folders.
Managing records
lj
The abm<y to use computers
and electronic databases
is a core requirement for
most records management
positions.
-
• Control and document access to the information m~nagement
system.
• Ensure that the files are kept in order.
• Monitor to ensure that the records system complies with legal
requirements and sound business practice.
• Maintain a record of all persons who use the files. This record
is called an audit trail. An audit trail is used to document all
the activities performed on records, from their creation to their
disposal.
• Track and follow up the use of documents to ensure that removed
items are returned promptly and in good condition.
• Identify and store inactive files separately.
• Dispose of outdated records in keeping with business policy and
government regulations.
• Keep informed about technological advancements in records
management and making recommendations where change is
needed.
• Assist in the implementation of changes to the system.
Retrieving records
• Provide information utilising the records system.
• Provide access to records for authorised users.
• Ensure that records are safe from unauthorised access.
4 4.9 The records (information) management clerk
Knowledge, skills and attributes
Activity
Study the following
advertisement for the position
of records management
clerk. What are the general
requirements for a records
clerk? What specialist
knowledge, skills and
attributes are necessary for
the position?
Records management clerk
Terms of employment: Full-time, day
Salary: To be negotiated
Anticipated start date: As soon as possible
Location: Pierreville Health Centre
Work setting: Records departments
Duties: Label, file and retrieve documents; respond to requests for
records; manage files according to retention and disposal schedules;
perform general clerical duties, such as document preparation and
photocopying
Education: Secondary school, preferably business-related courses
Experience: No experience required
Skill requirements: Use of business equipment; good working
knowledge of word-processing, databases (preferably Oracle) and
spreadsheets
'Typing: At least 45 words per minute
Records-specific skills: Classify and code documents; maintain access
lists for restricted records
Filing-specific skil ls: Sort and file records; retrieve requested files;
maintain indexes for classification systems; maintain records of materials
filed and removed; archive records according to the established schedule
Health records-specific skills: Classify, code, cross-reference and
store health records and related information; analyse records to produce
statistical reports
Work conditions and physical capabilities: Fast-paced work
environment; working with minimum supervision; movement of heavy
items; sitting for extended periods of time
Figure 4.9.1 Job advertisement for a records management clerk
Exam tip
You should be able to make
recommendations on the
most appropriate systems,
equipment, supplies and
procedures for managing
records in specific business
situations.
-
A records management clerk must have the fo llowing knowledge,
skills and attributes:
• knowledge of standard office procedures an d practices
• a bility to operate office equipment, such as compute rs, microfilm
readers, scanners and copiers
• effective written and oral communication skills, including
knowledge of grammar, spelling, punctuation and business
correspondence format
• knowledge of regula tions governing records management
• ability to conduct information research a nd assemble relevant
information a nd data
• ability to work effectively, both independently and as par t of a
team
• ability to maintain complex records, summarise information and
prepare reports
• ability to work efficiently and accurately within deadlines
• integrity and the ability to maintain confide ntiality of sensitive
information
• ability to estab lish a nd maintain effective working relations with
persons within the organisation a nd the general public.
4.9 The records (information) management clerk 4
Test yourself
--:
Key.points
Duties of a records
management clerk
include:
• preparing documents
• processing data
• managing records
• retrieving documents.
1 Describe FOUR attributes of an records management clerk.
2 Discuss THREE duties that a records management clerk must perform
in doing each of the following tasks:
a Processing records
b Managing records
3 A records management clerk must be able to maintain strict
confidentiality.
a Discuss THREE reasons why confidentiality is an essential
requirement for the position.
b Discuss THREE implications for the business if there is a breach of
confidentiality on the part of a records management clerk.
-
-
End-of~unit multiple-choice - Unit 4
C
Discuss THREE ch~racteristics of a good
information management system.
1
2
responsibilities of the records management
clerk as it relates to:
Indexing, classifying, recording, pre-sorting
B
Recording, indexing, pre-sorting, classifying
C
Pre-sorting, recording, classifying, indexing
ii
D
Classifying, pre-sorting, indexing, recording
iii retrieval of records
The process of associating a document with a
search term is called:
Indexing
C Fillng
B
Storage
D
Tagging
Cheryl John has recently been married and is now
Cheryl John-Brown. In the records of the human
resource department the filing clerk has been
· searching for her file, but found a note on her old
file that says 'see Cheryl John-Brown.' What is this
process best described as?
preparation of records
2
management- of records
Mrs Roberts was away on a business trip for a few
days. She is the head of the records management
department and as a result is responsible for signing
off some types of documents before they can be
filed. Her absence has caused a delay in the filing.
A
Explain TWO negative implications of this
situation for the office.
·B
3
How can this situation be prevented?
Which of the following is NOT a factor to consider
when archiving a specific document?
Jam Down Promotions is a publishing company
with a large volume of clients both internationally
and locally. Recently the filing department has been
having some serious problems finding fil ing cabinets
to accommodate new files as well as to store
existing ones - some of which have passed their
retention period. A decision was taken to restructure
the filing department using microfilm.
A Size
B
Access
A
Explain the meaning of the term 'retention period'.
C
D
Usage
B
Discuss TWO benefits an organisation will derive
A Cross-referencing
C
4
Advise Stephanie on the duties and
A
A
3
D
Which ONE of the followin\;) represents the correct
sequence of steps in information managemerit?
Coding
Staff
B
Indexing
D
Ticklering
from having a retention system.
5
Which of the following is the protection granted that
allows members of government to debate matters
freely and openly while in parliament without the fear
of being prosecuted?
C Suggest TWO other ways in which Jam Down
Promotions can store active or inactive files.
D
A Secrecy provision
B
Parliamentary privilege
been recommended for restructuri ng the filing
C
D
Copyright
department.
Defamation
E
Stephanie Barker was recently employed at Desktop
Publications in the information management
department. Her first assignment was to assist in
development of an information management system.
A
Define the term 'information management
Discuss TWO ways in which a file may be
destroyed.
Structured questions
1
Discuss TWO reasons why microfilm has
4
A
List TWO types of information that may be
B
Explain what is meant by the term 'parliamentary
classified as confidential.
privilege' and give examples.
C
Identify TWO types of information·that are
system'.
B
protected by copyright law.
Outline THREE processes that Stephanie should
ii
consider when developing the information
management system.
Discuss how copyrig ht provides protection
for the secrecy of information.
What is meant by the term 'defamation'?
D
ii
Discuss the TWO main forms of defamation.
OBJECTIVES
By the end of this unit you
should be able to assess the
contribution of the reception
desk to the welfare of the
organisation.
Did you know ... ?
in some organisations
reception is called the front
'office and the receptionist
may be known as the front
office manager.
Activity
1 Visit the reception area
Have you ever been to a ho tel, a ~ospital o r a large office building?
Were yo u able to just walk in and go anywhere you wished? Or was
there a counter or desk, wit_h a worker who greeted you and handled
your enquiries?
A courteous, efficient receptionist makes a positive impressioo
on visitors and increases their confide nce in the company. Most
organisations have a receptio n area that is set up to greet a nd receive
visito rs. In firms where there a~e relatively few visitors daily, the
rece ptionist may also perform other duties, such as switchboard
operation and typing. In large organisations where there are many
visitors there are usually several receptionists to ensure that clients
are attended to promptly.
The receptionist is usually the first person to greet a visitor to an
office. Consequently the receptionist creates the first impressio n of
the o rganisation. T he receptio n staff must always be professional,
efficient, friendly and he.lpful. The receptio n desk must never be left
unattended. For security reasons visitors are usually not allowed to
wander unescorted in a building.
of your school. Briefly
describe its main features
under the following
headings:
The main purpose of reception is to:
• maintain effective relationships between the business and the public
• promo te goodwill and a positive reputation of the business.
a Location
The reception area fulfils this purpose by the services it provides, as well
as by its location, decor, furni ture, signage and provisions for hospitality.
b Layout
c Furniture
d Decor
e Signage
. f Hospitality
2 To what extent does the
reception area fulfil its
purpose?
3 Aecom.mend THREE ways
,
in which the reception area
can be improved.
4 Do an internet search
for photographs of
reception areas. Select the
photograph you like the
n'lost. Briefly explain what
features appealed to you.
Location and layout
The reception area should be located near to. the main entrance of
the business to ensure that it is easily located by visito rs. When the
reception desk faces the doo r it can communicate the impression
that the receptionist is immediately available and ready to help. A
desk that is angled to the door is considered to be more formal. The
office sho uld be laid out so that there are no obstacles between the
receptio n desk and the main entrance. As far as possible there should
be easy access for persons with limited mobility.
Furniture
Even a very small office should have co mfortable seating for
visitors. Larger receptio n areas should have several chairs arranged
-
5 5.1 The reception department
around low tables. The furniture should be made of durable, easily
maintained material. The reception desk should be designed to
accommodate the activities that take place in the area. If the
receptionist performs other duties, the desk may have several levels
or sections to accommodate a computer, switchboard equipment and
so on.
Decor
Activity
Study Figures 5.1.1 and
5.1.2 (on the next page) and
then answer the following
questions.
1 Name TWO businesses
in which you might see a
reception area like the one
shown in each photo.
2 In what ways are both
reception areas similar?
Ho~ are they d ifferent?
3 a Use labelled boxes to
show a suitable layout
for the reception area
of a youth employment
agency that aims
to accommodate
eight visitors and
two receptionists/
switchboard operators.
Signage
b Make recommendations
for each of the following,
giving reasons for your
choice:
i
The reception area should be decorated so that it appears
comfortable and welcoming. The decor should reflect the image
and purpose of the organisation. Colours and choice of materials
communicate different messages. The use of glass for walls and
windows creates an open atmosphere and suggests inclusion and
teamwork, whereas solid walls, dividers and doors give the impression
of privacy and focus. Bright colours are appropriate when the
organisation is dynamic and creative, such as an advertising agency,
or caters to the needs of young clients, such as a paediatrician. Muted
colours create a more conservative impression. The use of natural
lighting and plants communicate the idea that the organisation is
environmentally friendly.
Colour
The name of the receptionist should be displayed on a nameplate or
a name badge so that it is clearly visible to clients. T his helps to make
the receptionist seem customer-friendly and approachable. Signs and
charts should be clean, neat and professionally printed. Old, dusty or
handwritten signs detract from the appearance of the reception area
and create a poor impression of the organisation. Signs should be
placed on doors so that visitors can easily find the right office. There
should also be signs to indicate the washrooms, exit and emergency
escape routes.
ii Three wall charts
iii Provision of
-refreshments
Exam tip
Hospitality
-
You should be able to
discuss the implications
of effective and ineffective
reception desks on the
welfare of the business.
-
--
Hospitality involves catering to the needs of visitors, ensuring that
visitors feel comfortable and valuable to the organisation. Where
possible there should be a water dispenser and a coffee machine.
Even the smallest office should make provisions so that a vi:;itor
can be offered a drink. Larger offices may have vending machines
for refreshments. Reading material, such as the daily newspapers,
magazines, trade journals and the organisation's promotional
literature, should be provided. E nsure that these items are not
outdated, tattered or torn.
5.2 Duties and responsibilities of a receptionist 5
Figure 5 .1.1
Key points
Contributions of a
reception desk to the
welfare of the organisation
include:
'
Figure 5 .1.2
Test yourself
• maintaining effective
interpersonal
relationships between
the organisation and
members of the public
• promoting goodwill and
a positive image of the
business.
1 Identify the importance of the receptionist to an organisation.
2 A client enters a law firm's office and finds that the reception area
contains ragged chairs, outdated reading material, a torn picture and
layers of dust on the tables and counter. There is no receptionist at the
desk and a sign that states 'Back in five minutes' . ldentity' the problems
.in this firm and explain the effect they would have on clients and
goodwill.
I
5.2 Duties and responsibilities of a receptionist
OBJECTIVES
The receptionist's job consists of many duties and responsibilities that
contribute to the efficiency of the office as a whole.
By the end of this unit you
should be able to identify the
duties and responsibilities of
a receptionisr.
w@cn oa@
1
l
A skilful receptionist can
screen a visitor without the
visitor being aware of what is
being done.
Receiving and screening visitors
l
J
One of the main duties of a receptionist is to greet visitors as
they come into the establishment and answer all queries. The
receptionist must have complete knowledge of the organisation and
its employees. The receptionist must ensure that company personnel,
such as managers, only receive the people they have time for and
wish to speak with or see. This is called screening visitors.
Receiving and filing business cards
It is usual for a visi tor to present a business card (also known
as a calling card). This card displays their name, positio n and
organisation, as well as their contact information, such as telepho ne
5 5.2 Duties and responsibilities of a receptionist
Procedures for handling
visitors
• Greet every visitor
immediately when they
enter the reception area.
• If you do not already know
the person, ask their name.
• Find out the purpose of the
visit and the person to be
seen.
• Determine whether an
appointment was made.
• If there is no appointment,
it may be possible for
you to assist the visitor
by providing the needed
information.
• If you are unable to deal
with the issue, find out
whether the requested
person is available.
• If the requested person is
not available, offer to take
a message.
• If the visitor must wait,
show them to a seat and
offer them something to
drink and to read.
• Deal courteously but
cautiously with unwelcome
visitors, including persons
who show troublesome
behaviour, such as stress,
ill-temper, disorientation or
great anxiety. Most visitors
leave peacefully when
informed that the person
they want to see is not
available. Discreetly notify
security personnel if you
notice signs that the visitor
will be uncooperative.
number, email address and m<1iling address. If the organisational
policy is to keep business cards on file, then the receptionist should
place these in the designated location. Alternatively, the receptionist
may record this information in the visitor's register or in a computer
database.
Introducing visitors
It is very important to introduce persons properly. Introductions are
usually done by presenting a senior person to a junior. For example,
you may say 'Mr Chow Fatt, this is Mrs Alibocas, liason officer for the
Environmental Management Agency ..Mrs Alibocas, Mr Chow Fatt
is our health and safety manager.' If a business card was presented
at the reception desk, this may be handed to the manager when you
introduce the visitor.
Maintaining the reception register
The reception register, whether kept electronically on the computer
or manually in a visitor's book (Figure 5.2.1), is used to keep a record
of persons who visit the premises and the times they arrived and left.
It is important for the organisation to have accurate information
about the persons on the premises. For example, in the event of an
emergency, such as a fire or earthquake, the register will be used to
determine whether everyone has evacuated the building.
Operating a switchboard
In some organisations the receptionist may also serve as a .
switchboard operator, receiving incoming calls and directing them to
the appropriate personnel and offices.
Receiving letters and parcels
The receptionist usually collects the letters and parcels delivered by
mail carriers and couriers. Unit 2.17 contains detailed information
about the procedures for handling mail.
Date
Visitor's name
Organisation
Arrival
time
Referred to
Departure
time
25JIM'\R/
/vi. A ~
Evwi,v~cd, / v i ~
A~
0935
V. Chow Feat
1020
25JIM'\R/
A. Peve,:,,
C ~ Offu;,e, SuppU<¼' Ltd,
0940
K. C ~
0955
25JIM'\R/
T. North,
Cc;wv-Conriect Ltd,
1025
S.K~
1057
••
Figure 5.2 .1 Example of a visitor's book
·s.2 Duties and responsibilities of a receptionist 5
Activity
Managing and maintaining the reception area
Review and list the duties
associated with answering the
telephone and operating a
switchboard.
The reception area must always be tidy and well maintained. The
reception desk sho uld be free from clutter. Any item that is no t
constantly used should be stored in an appropriate place.
Attributes of a good receptionist
U nits 1.10 to 1.-13 contain a comprehensive description of the
skills, attitudes and attributes that are desirable in office wo rkers.
Please review these units to ensure that you are familiar with these
attributes.
Figure 5.2.2 Receptionists must
possess s~veral attributes, including
the ability to communicate clearly and
appropriately
Several attributes are absolutely essential for receptionists.
• Personal appearance: Appropriate appearance, dress code and
personal hygiene to enhance the reputation of the orgal)isation
and in keeping with the organisation's dress code.
• Good temperament: The ability to maintain a pleasant and
courteous disposition in all circumstances, while maintaining
authority.
• Willingness to use initiative: The readiness and motivation to take
action for the benefit of the organisation without being specifically
instructed.
• Tact: The ability to show sensitivity and consideration when
dealing with persons in order to avoid giving offence.
• Good articulation: A pleasant, well-modulated voice and the
ability to speak clearly and distinctly.
Activity
The following conversation demonstrates how visitors can be screened.
Receptionist: [With a welcom ing voice and facial expression] Good
morning. May I help you, please?
Visitor:
Good morning . I am here to see Ms Mary Daniel.
Receptionist: May I have your name and the purpose of your visit, please?
Visitor:
Just tell her that Pierre Collymore is here to see her.
Receptionist: Do you have an appointment, please, Mr Collymore?
Visitor:
No, but I am sure that she will see me.
Receptionist: Mr Collymore, please wait a moment. I'll find out if she is
available.
[Receptionist calls Ms Daniel on the inter-office telephone]
Ms Daniel:
Hello, how can I help you?
Receptionist: Good morning. Mr Pierre Collymore is here to see Ms
Daniel. Is she available, please?
Ms Daniel:
I really cannot see him now. I am far too busy. I'll call him
and arrange a meeting.
Receptionist: Thank you. [Hangs up the phone] Mr Collymore, I am sorry,
but Ms Daniel is not available. However, I can ask her to call
you as soon as possible.
Visitor:
Okay. I guess that will do.
(cont.)
5 5.2 Duties and responsibilities of a receptionist
Exam tip
Ensure that you know the
=
proper procedures for
=
handling visitors, including
screening and maintaining a
reception register.
Receptionist: [Writes his name on a message pad] May I please have
your number?
Visitor:
It is 555 4321 .
Receptionist: 5-5-5 4-3-2-1. [Writes down the number] Is there any
•
additional message you would like to leave?
Visitor:
Yes. Let her know that I'll be leaving the country next
Wednesday for a two-week trip to Germany and I really must
see her before I leave.
Receptionist: [Writes down the information] I'll let Ms Daniel know that
she should contact you before you leave the country for
Germany on Wednesday next week. ·
Visitor:
Thank you.
Receptionist: You are welcome. Have a good day.
Identify TWO ways in which the receptionist shows each of the fol lowing
attributes:
1 Tact
2 Courtesy
3 Good temperament
■
■
4 Willingness to use initiative
r
r
e
r-
Key points
Duties and responsibilities
of a receptionist include:
• receiving and screening
visitors
• introducing visitors
• maintaining the
reception register
(manual or electronic)
• operating a switchboard
• receiving letters and
parcels
• managing and
maintaining the
reception area
• receiving and filing
business cards.
Attributes of good
receptionists include:
• impeccable personal
appearance
• good temperament
• willingness to use
initiative
• being tactful
• being articulate.
Test yourself
1 Why is the receptionist considered to be the 'face' of an organisation?
2 Why is it important to keep a receptionist register?
~ List and explain FOUR attributes of a good receptionist and identify and
~ explain TWO attributes of a bad receptionist.
·
4 As the recep~ionist of On the Spot Hardware, you are responsible for
answering all calls, filing business cards and introducing visitors who
come into the business. Your colleague is not in and you are required to
handle the reception desk.
·
a What procedure would you follow for handling visitors?
b Why is it important to collect and file business cards of callers to the
business?
c Identify TWO things that should be done and TWO things that should
not be done when introducing a customer/visitor to a person within
the orga~isation.
5.3 Managing appointments
OBJECTIVES
By the end of this unit you
should be able to discuss
the procedures for managing
appointments on behalf of an
executive and the importance
and use of reminder systems.
Unless the resp onsibility has been assigned to another pe rson, such
as a n administrative assista nt, the receptionist may be a uthorised to
manage appointments on behalf of executives, such as supervisors
and managers. If someone e lse is in cha rge of making appointments,
then the receptionist must be provided with a list of expecte d visitors.
The person making appointments should get to know the executive's
preferences. For example, there are some persons for who m the
executive will always make time. Generally, meetings should not
be scheduled for first in the morning or last thing in the evening.
Executives usually prefer to start the work day by catching up on
m ail, planning for the day a nd so on.
Maintaining a diary
The person managing appointments is responsible for ma intaining
the executive's diary as well as their own. Appointments should be
entered in both diaries. Tentative appointments are written in pencil
and confirmed appointments are written in pen. A neat line is drawn
through cancelled appointments. E nsure that both diaries are up to
date at all times by being me thodical.
• At the beginning of the day: Check the dia ries for all appointme nts
and prepare a list of expected visitors. Ask the executive for
informa tion on appointments that they have personally made, so
that these may be placed on the schedule. (Alternatively, this may
be done at the end of the previo us business day.) Prepare a to-do
list of a ll that must be done on that day. Organise all fi les and
documents that must be used.
• During the day: Make amendme nts to the diaries as n eeded.
Enter all new appointments, postponements or cancella tions as
soon as they are made. When a task is completed, draw a neat line
through its entry on the to-do list.
• At the end of the day: Review the to-do list. Enter tasks no t
completed in the diary on the day you plan to do thel!l. ·
Making appointments
Check the executive's calendar o r diary to make sure that they
are available a t the desired date and time. Write down all re levant
information, including:
• date and time the meeting should occur
• venue
• name, organisation and contact number of the person with who m
the appointment is made
• purpose of the meeting, if stated.
T he conversation to make an appo intme nt may be as follows:
Receptionist: Ms D anie l's office. How may I he lp?
Caller: H e llo, can I speak to Mary D a niel, please?
5 5.3 Managing appointments
Receptionist: Ms Daniel is not available at the moment. May I
take a message?
Caller: I'd like to make an appointment to see her as soon as
possible, please.
Receptionist: Certainly. May I please have your name and a
contact number?
Caller: I am Obasi James of Ready Money Limited. My number is
555 3478.
.
Receptionist: Mr James, please hold on for a moment while I check
her diaiy. Ms Daniel is available Tuesday morning at 10.30 and
Wednesday afternoon at 2.00. Is either time convenient for you?
Caller: I won't be able to get there before 11.00 on Tuesday.
Receptionist: Well, shall we arrange for 11:15 Tuesday rnorning,'in
Ms-Daniel's office?
Caller: Yes, that's good. Thank you.
Receptionist: Okay, Mr James. We'll see you at 11:15 on Tuesday
morning. Thank you for calling.
Immediately write in the appointment on the executfve's calendar
or diary, as well as yours. Avoid over-scheduling, that is, booking
more persons than the executive can comfortably see within the time
period. It is wise to leave time between appointments instead of
scheduling them one immediately after the other.
Rescheduling and cancelling appointments
An appointment p-1ay be rescheduled by the caller or by the executive.
If the rescheduling request comes from the caller, arrange for the
meeting at another time when the executive is available. If the
executive requests a rescheduling, contact the other party promptly
and arrange another meeting time.
Remember to promptly draw a line through the old appointment
and write in the new one in both the appointments' register and the
executive's calendar or diary.
T he receptionist needs to be tactful when cancelling appointments o n
behalf of an executive. Cancellations must be done in a manner that
will not give offence or reflect badly on the organisation. Professional
courtesy requires that the people involved shoul,d be informed of
cancellations or postponements as soon as possible. Apologise
for the inconvenience and, if appropriate, state the reason fo r the
cancellation or postponement. If it is a postponement, suggest an
alternative date and time .
-
5.3 Managing appointments 5
The conversation for rescheduling an appointment may go like this:
· Receptionist: Good day. This is Karen Taitt calling on behalf of Mary
Daniel of Creative Concepts. May I speak with Mr Obasi James, please?
Mr James: This is Obasi James.
Receptionist: Mr James. Ms Daniel regrets that she is unable to meet
with you on Tuesday at 11.15 as planned. However, she is available on
Wednesday afternoon and all day Thursday. Is it possible for you to come
in on either day?
Mr James: I really hoped to see her Tuesday. However Wednesday will
have to do.
Receptionist: Should I confirm your meeting at Ms Daniel's office for
Wednesday afternoon at 2.00?
Mr James: Yes, that will be fine.
Receptionist: Thank you, Mr James. Goodbye.
Importance and use of reminder systems
Several reminder systems are used to manage appointments,
including tickler files, diaries and calendars.
Item
Description
Tickler files
File folder or index box with sections numbered 1 to 31 , one
for each day of th_e month. Files saved in a tickler system
give advance warning of a forthcoming appointment, and
this reminds the person concerned to make sure that all
necessary documents and resources are available.
Diaries
Used to record date- and time-sensitive information, such as:
• appointments
• deadlines
• conferences and meetings
• planned absences, such as holidays or annual leave
• social engagements, such as functions, dinners and
weddings
• files to be followed up.
Calendars
Used to record major events, such as upcoming meetings
and conferences. They allow an overview of the entire month
at a glance.
Table 5.3.1 Description of reminder systems
Did you know ... ?
Some businesses (e.g.
dentists) now send text
messages to remind
people of appointments.
This is done automatically,
using the information in the
computerised appointment
system.
Computerised appointment systems
Some organisations use computer systems that automatically
generate a daily visitor list from data that are input by the personnel
in the various departments. This helps to ensure that all persons
involved in managing appointments have access to the same
information. These online systems make it easier to find available
time slots, enter necessary information, reschedule appointments
Ill
5 5.3 Managing appointments
Exam tip
You should be able to
discuss planning aids, such
as diaries, tickler files and 1
appointment books, thal
will help a receptionist to
establish priorities and meet
deadlines.
and so on. They also e liminate the use of multiple diaries. T he
receptionist must ensure that backup copies of the appointments are
made regularly. This ensures that the data are available in case of
power loss or equipment fa ilure.
Test yourself
1 Create a diary page for Mr Joseph of Sunrise Marketing, inserting the
following appointments in his schedule:
a He has a lunch meeting at 12.30.
Key points
Appointments for
an executive can be
managed using electronic
or manual systems.
Managing appointments
involves knowing and
applying procedures for:
• making and cancelling
appointments on behalf
of an executive
• maintaining a diary
• rescheduling
appointments
• using reminder systems,
such as tickler files,
diaries and calendars.
II
b Meetings should be scheduled at least 15 minutes apart.
c Meetings should not be more than 1 hour long.
d He has a personal appointment at 10.00.
e Mr Williams is heading a staff meeting to delegat~ duties to st.aft.
f Roger Dowe, a new client, would like to speak to Mr Wi lliams about
his products he would like marketed.
2 a State TWO reasons why it is important to examine, correct and
double-check an office diary every day.
b Explain why it is important to inform persons with whom appointments ·
have to be cancelled as soon as possible.
3 Avison needs to make follow-up calls for some information from two
businesses that he had spoken to the previous week. In order to remind
him of this information, he has decided to use a reminder system.
a_Make a suggestion as to what type of reminder system he should
use.
b Identify TWO benefits of this system in comparison to ONE other
system.
End-of-unit multip1e-choice - Unit 5
1
Which of the following is NOT usually the
responsibility of the receptionist?
A
Struc~ured questions
1
Keeping a visitors' register
B Receiving and filing business cards
A
C ·. Managing the visitors' area
D
2
3
A
Escort him to the manager's office
B
Find out the nature of the visit and if you can
assist
C
Make an appointment for the customer for a
later date
D
Ask the customer to have a seat and wait for the
manager to become available
quality of service provided to the conference
centre's clientele.
B
Good grooming
B
Good articulation
C Make a list of FIVE items that would improve the
overall environment of a reception area.
2
C Tact
4
A
Explain the importance of the reception area to
an organisation.
B
Identify THREE pieces of furniture suitable for
the reception area. ·
C
Identify TWO pieces of equipment suitable for
the reception area.
D
List TWO types of reading material that can be
Which of the following factors is the receptionist least
expected to consider when making an appointment?
Date and time
B
Purpose of the meeting
C Availability of security personnel
D
5
Royston's Guesthouse is a small business located
minutes from the airport in Grand Anse, Grenada.
The manager of Royston's Guesthouse has decided
to renovate the reception area of the guesthouse. As
a past student of office administration, he has asked
for your advice on some essential aspects, to ensure
the comfort of the guests and optimise hospitality in
the reception area.
Initiative
A
Venue
In the case of an emergency, what should the
receptionist check to determine if all visitors have
vacated the building?
.A
Directory
B
Register
C
Diary
D
Appointment book
Why is it important for both customers and the
receptionist to have comfortable furniture in a
reception area?
How is the ability to show sensitivity and
consideration in dealing with people in order to avoid
giving offence best described?
A
Identify THREE functions of the reception area
that should be analysed in order to improve the
Typing correspondence
You are the receptionist for Cost You Less Stationery.
A customer walks in and asks to see the manager.
You enquire if he has an appointment, to which he
responds 'No'. What is the first step you should take
in dealing with the customer?
D
You are responsible for the reception area at a large
conference centre. Your manager has informed you
that he would like to renovate the reception area and
would like your input.
found at a reception desk.
3
Alan Arnold is a disgruntled customer who has
just walked into Sensual Scents, Soaps and Body
Wash. He demands to see the head of the sales
department because he has yet to receive goods for
his spa, which he ordered four weeks ago. As the
receptionist, you ask him if he has an appointment,
to which he rudely answers, 'No! Just go get him! ' ·.
A
From this point, what procedures would you use
in dealing with this customer?
B
Identify TWO actions that you should take to
ensure that the situation does not get out of hand.
C
Suggest ONE action that the receptionist can
take to resolve the situation before notifying the
head of the sales department.
.,•
4
As the receptionist at Sunrise Marketing you are
expected to make appointments and direct callers
for executives of the organisation. Mr Reginald
Joseph, the manager, is expecting two appointments
between 11 .00 and 13.30, as he has to leave
promptly at 14 .00 for a business meeting outside
the office. His 11 .15 appointment arrives at the
same time as a walk-in, Mr Williams of Spice Motors
(one of your biggest clients), who wishes to see
Mr Joseph. Shortly after, the mail carrier and the
company's accountant arrive.
a
What steps should be taken to address:
the caller who has the appointment
1
ii
Mr Williams?
■
■
..
■
■
5
b
Identify THREE things that, as a receptionist,
you should NOT do in this situation.
c
Identify TWO important attributes for you to use
at this time.
d
Which visitor(s) should not be recorded in
the reception register? Give reasons for your
answer.
Identify THREE steps that should be taken when
receiving parcels and letters from customers and
couriers. Identify situations where parcels and
letters should be considered questionable, be left
unopened and reported.
..
OBJECTIVES
By the end of this unit you
should be able to discuss the
importance of meetings and
their purposes and list the
various types of meetings.
Meetings and their purposes
A meeting is a gathering of two or more persons for a common
purpose (Figure 6.1.1). Meetings vary in size, from two-person
discussions to large conventions, conferences and seminars (also
see Unit 2.1). Meetings enable two-way communication and
allow participants to discuss issues. People may meet in the same
physical space, such as in a conference room, or they may meet via
videoconferencing or teleconferencing. Figure 6.1.2 illustrates some
reasons why people meet.
Figure 6 .1.1 Meeting
Formal meetings
Formal meetings are
conducted according to
specific, predetermined
procedures that control
issues. For example:
• the frequency with which
the meeting should be
held, ·wheth1::r annually,
monthly and so on
• the amount of advance
notice that must be given
(cont.)
Figure 6.1.2 People meet for various reasons
Types of meetings
Meetings may be formal or informal. Formal meetings are those
that are required by law or the standing orders or constitution
of the organisation, and are conducted in keeping with specific
predetermined guidelines.
Informal meetings are less structured and may be called whenever
necessary. The person calling the meeting may decide whether it is
necessary to have minutes taken.
6 6.1 Types of meetings
Formal meetings
• the number of persons
that must be present (the
quorum)
• the level of documentation
that is needed, such as
minutes, written notice
• the purpose of the meeting
• the agenda.
General meetings
General meetings may be held for all the stakeholders of an
organ isation. A stakeholder is a person, group or organisation
that can have an influence on or be affected by the activities of the
organisation. Stakeholders include customers, government, the
community, sponsors and suppliers.
Annual general meetings
An annual general meeting (AGM) is held once per year, as required
by law or by the organisation's constitution. Unit 6.4 gives details on
AGMs.
Board meetings
Board meetings for a company are attended by its directors. A
director is elected o r appointed to oversee the activities of the
business. Board meetings are generally to make strategic plans
for the organisation. The board evaluates the performance of the
company and the effectiveness of its managers, and makes decisions
aimed at ensuring the organisation's success. The board must discuss
issues such as:
• financial control of the organisation
• compliance with legal requirements
• health and safety
• maintaining and improving customer relationships
• mergers, takeovers or organisational restructuring.
Extraordinary general meetings
Extraordinaty (or special) general meetings (EGMs) may be called by
the directors or by a specified percentage of the shareholders (such
as 10 per cent). They are called to discuss exceptional issues .t hat are
of concern to the shareholders or members of an organisation. For
example, such a meeting may be called to remove a director before
the completion of his or her term of service.
Committee meetings
A committee is a special group that is set up for a specific purpose or
area of work. A committee is usually a temporary arrangement and is
disbanded when its objectives are met.
Different types of committees
• Executive committees have the authority to manage an organisation.
For example, a charity may be run by an executive committee.
• Standing committees are established to deal with ongoing issues.
D
6. 1 Types of meetings 6
For example, a manufacturing firm may set up a standing committee to
manage health and safety issues. A standing committee is a relatively
permanent arrangement, although the members may change over time.
• Advisory committees consist of persons with expertise in a particular
field , who advise management in their area of specialisation. For
example, there may be an advisory committee for industrial relations.
• Ad hoc committees are set up for a specific purpose. For example,
an ad hoc committee may be established to plan and manage a firm' s
awards ceremony. This committee will be disbanded when the ceremony
is over.
Statutory meetings
A statutory meeting ·is the first meeting that is held by a newly
formed public limited liability company. It has the same format as
an AGM (see Unit 6.4). The laws of most countries specify that this
meeting must be held no more than six months after the company is
established.
Informal meetings
Staff meetings
Did you know ... ?
The flexible matrix structures
that are used by some
organisations require frequent
meetings of working parties
or teams. These meetings
are attended by persons from
different departments who are
working together on the same
project.
Staff meetings are usually held between management and all
personnel in an organisation. Staff meetings enable d irect, face-to-face
communication between administration and personnel. Staff meetings
are used to discuss issues affecting the organisation's operations, build
teamwork, obtain feedback and so on. Staff meetings are essential when
developing a strategic plan for an organisation. The development of a
statement of vision, mission statement, organisational objectives and
strategic goals should be done in collaboration with all persons in the
organisation (see U nit 1.1).
Departmental meetings
Key points
Formal meetings include:
•
•
•
•
general meetings
AGMs
EGMs
board and committee
meetings
• statutory meetings.
Informal meetings
include:
• staff meetings
• departmental meetings.
A departmental meeting is held between the manager or supervisor
a nd the personnel in a sub-section or functional unit of an
organisation. Departmental meetings usually focus on issues that
affect that specific unit; however, these issues may have an impact on
the entire organisation. For example, the marketing department may
meet to develop an advertising campaign for a product.
Test yourself
1 State THREE reasons why meetings are called.
2 List FOUR requirements that must be fulfilled when conducting formal
meetings.
·
3 a List FIVE typ~s of meeting.
b Explain the issues related to any TWO of the five types of meetings
listed in (a).
6.2 Meeting terms and documents
OBJECTIVES
Meeting terminology
By the end of this unit you
T here are a number of special terms that are associated with
meetings. You m ust learn these and their meanings.
should be able to define
terms associated with
meetings and prepare
documents associated with
meetings.
/ .
Activity
Term
"
There are many more terms
associated with meetings,
some of which are listed
below. What does each of the
following terms mean?
1 Abstain
2
Amendment
3
Adjournment
4
Motion carried
5
Mover tor proposer)
6
Notice of motion
7
Resolution
8
Seconder
Ad hoc
A committee set up for a specific purpose
Adjourn
To close a meeting or suspend it until a later, stated time
Agenda
A sequential list of items to be discussed at a meeting
Casting vote
A second vote that the chairperson is authorised to make when
there. is an equal number of votes for and against a motion - the
casting vote·is a 'tie-breaker'. Note that the meaning of this term
is different from casting a vote.
Chairperson,
chair
The person who presides over a meeting - this is the highest
office of a group such as a board or committee
Ex officio
A person who is automatically a member of a board or
committee because of the office they hold - there is no need
elect this person
Motion
A resolution that is proposed at a meeting
Proxy
A person who is authorised to act on behalf of another
person (the term also refers to the document that gives this
authorisation)
Quorum
The minimum number of persons who must be present before
·a meeting can begin. (If members leave while the meeting is in
progress, so that there is no longer a quorum, the meeting must
be adjourned. If there is not a quorum, any decision taken will be
invalid.)
Verbatim
Using exactly the same words - a word-for-word report of a
speech
9 Sine die
1O Ultra vires
11 Abstention
12 Addendum
13 In camera
14 Ballot
I
Meaning
Table 6.2.1 Meanings of terms associated with meetings
15 Resolution
Meeting documents
16 Point of order
17 Nern. con.
Notices
18 Session
/
A 'notice of meeting' is usually sent no fewer than 14 days in advance
to all persons who are entitled to attend. It communicates the
following information: .
• name of organisation
• day
• time
• venue
• type and purpose of meeting.
Agenda
T he agenda for a meeting is usually.prepared by the secretary, under
II
6.2 Meeting terms and documents 6
the guidance of the chairperson. The other persons attending the
meeting can contr'ibute to the agenda by providing a notice of motion.
The agenda is usually sent in advance of the meeting to all who
shou ld attend. It provides an outline for the meeting, helping
to ensure that there is a sense of direction and purpose. It helps
participants prepare by informing them about what will be discussed.
Many organisations send out the notice with the agenda as a single
document (Figure 6.2.1).
BRIGHTSTON SECONDARY SCHOOL BOARD
Meeting to be held in the school's assembly room on Tuesday 24
September 2012 at 3.30pm.
AGENDA
1 Welcome and opening
2 Apologies
3 Minutes of the previous meeting
4 Matters arising from the minutes
5 Correspondence
6 Matters arising from the correspondence
7 New matters
i Action plan for the new academic year
ii Proposed budget
iii Crisis management
8 General business
·g Reports
10 Date for next meeting
Kel ly Toussard
· Secretary
1897 High Street
Brightston
(Tel: 355 4143)
Figure 6.2.1 Notice for a meeting with agenda
Did you know .
~ omelimes a verbali: {wordl
for-word) report of a meeting I
is required. Some persons are
trained to write in shorthand
and can achieve speeds of
up to 180 words per minute.
A voice recorder may be
used lo ensure that nothing
is missed. Pre-test the voice
recorder to ensure that it is
working properly. Remember
to use fresh batteries.
I,
A special agenda is prepared for the chairperson. This chairperson's
agenda is different from the one that is distributed to meeting
'
attendees. It is contains the same items as the normal agenda.
However, there is space at the right of each item in which notes may
be written. Additional details may be typed on the chairperson's
agenda (Figure 6.2.2), including:
• · apologies for absence
• resolutions and motions
• names of proposers and seconders of proposals or motions
• information to be taken into account before reaching a decision.
These details enable the chairperson to manage the meeting more
effectively.
m
6 6.2 Meeting terms and documents
Taking minutes
• Ensure that you have extra
pens or pencils as well as
a notepad.
• Write down the name of
the meeting chairperson or
facilitator.
• Sit where all that is said may
be clearly heard, usually
next to the chairperson.
• Circulate the attendance
register and ensure that
it is signed by all who are
present.
• Write down apologies for
absences if they are given.
• Do not offer your own
opinions unless they were
actually stated in the
discussion .
• Ensure that your report is
completely unbiased.
• Follow the sequence of the
items in the agenda.
• If a speaker requests that
a statement should not be
'minuted', do not write it
down.
• Be sure to take note of
all motions or resolutions
presented and decisions
made, including any action
that is to be taken, the
persons responsible and
the time frame in which it is
to be done.
• Make your notes as brief
as possible while recording
all the essential points.
• Prepare the minutes as
soon as possible after the
meeting, while the ideas
are fresh in your mind.
Activity
Research the format for
writing minutes. Imagine that
you are the secretary for the
meeting of the Brightston
Secondary School Board
(see Figure 6.2.2) . Prepare
the minutes.
I
BRIGHTSTON SECONDARY SCHOOL BOARD
Meeting to be held in the School's Assembly Room on Tuesday 24
September 20_ at 3.30pm.
CHAIRPERSON'S AGENDA
1 Welcome and opening
2 Apologies
3 Ask Ms Toussard to read the
Minutes of the previous
meeting
4 Matters arising from the
minutes
Further discussion
is expected on:
a. Fund-raising
b. Health and safety
5 Correspondence
6 Matters arising from the
correspondence
7 New matters
Action Plan for the new
academic year
ii Proposed budget
iii Crisis management
8 General Business
9 . Reports
10 Date for next meeting - the
first Tuesday of next month
is a holiday so an
alternative is needed
1
2
3
4
a
b
5
6
7
ii
iii
8
9
10
Figure 6 .2.2 Example of chairperson's agenda
Minutes
The minutes are used to document all proceedi ngs, from the start of
the meeting to its conclusion. They are a permanent record of the
decisions and activities of the organisation. The minutes are vital
because they:
• provide a full record of the discussion at the meeting
• identify the actions taken or that sho uld be taken, and by whom
• record whe ther the goals have been achieved
• assist in planning future meetings.
The minutes must contain:
• date, time and venue of the meeting
• names of all who are present
• apologies for absences, if given
• name of the chairperson
• purpose of the meeting
• issues being discussed, usually in the order indicated on the agenda
• decisions taken
• date, time, venue and purpose of the next meeting.
6.3 Organising meetings 6
Exam tip
You should be able to
produce all the documents
for meetings, in their required
layouts.
Test yourself
1 Explain the circumstances under which each of the following is needed:
a A proxy
Key points
There are a number of
special terms associated
with meetings, including :
• agenda
• ad hoc
• verbatim
• quorum
• proxy
• casting vote
• chairperson
• ex officio
• adjourn
• motion.
b A casting vote
c An ad hoc committee
2 Explain the significance of a quorum.
3 State t~e information that is g iven in each 9f the following documents:
a Notice
b Agenda
c Minutes
4 As the outgoing secretary of your youth club, you are required to guide
the incoming secretary on the preparation of meeting documents.
a Outline the procedures and requirements for the preparation of an
agenda.
. b Describe the layout of the chairperson's agenda.
c Provide FIVE guidelines for effective minute-taking.
I
6.3 Organising meetings
OBJECTIVES
Organise d ifferent types of
meetings.
Office personnel are often required to organise meetings. In
addition to preparing the facilities and sending out the necessary
correspondence, office staff may be required to record the
proceedings of the meeting and prepare the minutes. This unit
outlines the requirements for before, dming and after the meeting.
Supplies and equipment for different meetings
Meetings vary in size, from two-person discussions to large
conferences and seminars. Depending on the type of meeting, the
following equipment and supplies may be needed:
• stationery, such as writing paper, file folders, pens, pencils
• flipchart with markers and an adequate supply of paper
• whiteboard with markers and eraser
• projector - overhead, slide, multimedia
• CD player
• video or DVD player and television
• laptop computer
• microphone and amplification system.
6 6.3 Organising meetings
Meeting protocol
Meeting protocol is the established rules for how a meeting should be
conducted. These rules may include the following:
• Seating arrangements: For example, the chairperson sits at the
head of the table, with guests to their right in order of importance.
• Confidentiality: What is said at the meeting should not be
discussed outside the organisatio n.
• Respect: Speech and actiof)s should show consideration for all
present.
• Decision-making process: Whether voting will be done by voice,
show of hands or written ballot.
Robert's Rules of Order is a book of guidelines on how a meeting can
_b e conducted according to parliamentary procedure . Parliamentary
procedure is the collection of rules, ethics and customs that
govern meetings of decision-making groups. It allows everyo ne the
opportunity to be heard and to make decisions in an orderly manner.
r
Activity
According to Robert's Rules of Order, all questions, comments and
responses must be directed to the chairperson, ensuring that language, tone
and deportment are courteous at all times. This helps to prevent arguments.
1 Research Robert's Rules of Order and summarise FIVE other rules.
Explain the purpose of each rule.
2 Research and explain each of the following methods of voting, stating at
least ONE advantage and ONE disadvantage of each method:
•
•
•
•
•
Secret ballot
Show 'of hands
Proxy
Standing
Voice
:
3 There are several different seating arrangements for meetings. Research
and discuss each of the following seating styles:
• Conference style
• Circular
• Open-square style
• Herringbone style,
• U-shaped
Requirements before meetings
The chairperson or individual calling the meeting usua lly determines
the agenda, date, time and location. It is useful to create a folder in
which all items related to the meeting will be o rganised.
In advance of the meeting day
II
• Obtain a list .of all who should attend.
• Invite guest speakers, if required. Confirm their availa bility. If
arrangements were made a lo ng time in advance, give a tactful
reminder by email_or telephone closer to the meeting date .
II -
6.3 Organising meetings 6
.
.
• Book the venue and ensure that there is sufficient
accommodatio n.
• Make arrangements for travel and hotel accommodation. Arrange
car parking if necessary.
• Enter the date, time, venue and purpose of the meeting in the
executive's diary, if this is your responsibility. Make sure to enter
the inform~tion in your diary also.
• Send out notices informing the attendees of the date, time and
venue. Depending on the type and size of m~eting, notices may be
given by letter, telephone, fax or email. The agenda and copies of
the minutes qf the previous meeting may be circulated in advance
so that attendees will be 'prepared.
• Prepare any documents that may be discussed at the meeting or
circulated in advance.
, • If necessary, arrange for refreshments.
.
• Type out the chairperson's agenda (See Unit 6.2).
• Prepare the attendance register.
• Ensure that there is a sufficient quantity of all supplies, as well as
printed material such as brochures or reports.
·.'. •• Arrange for equipment, such as microphones, projectors and
screens, if required;·
· On the day of the meeting
• E nsure that the room is ready for the meeting, that there are
sufficient seats and that they are properly arranged.
• Make sure that the required equipment is installed and in working
o rder.
• Arrange the documents that will be needed, such as forms,
info rmation packages and reports. T he following should be also
available:
• agenda
• minutes of the previous meeting
• orga~isation's constitution
• writing supplies (placed within easy reach of participants)
• drinking water and glasses.
Requirements at the meeting
· • G reet any new members and make appropriate introductions.
• Take minutes, if required (See U nit 6.2).
The chairperson is responsible for directing the meeting. It takes skill
to ensure that the meeting runs smoothly and achieves its objectives
within the allocated time. The chairperson should:
• ensure that the meeting starts at the precise time stated on the
notice
• determine whethe1~ there is a quorum, if one is required
• welcome the members and make opening remarks that will set the
tone of the meeting
a
6 6.3 Organising meetings
Did you know ...- ?
7
The timeliness and
distribution of minutes can be
governed by the law.
Activity
Your class has formed a club.
Organise your first meeting
according to the procedures
for conducting formal
meetings. Be sure to include:
notice, agenda and any other
necessary preparations for
the meeting.
'-
l
Did you know ... ?
l
Seating arrangements send
a powerful message. For
example, team meetings
and negotiations are
best conducted around
a round table. Research
the messages sent by
different types of seating
arrangements.
Exam tip
- ..
You should be able to
discuss the specific duties
ofthe chairperson and the
secretary before, during and
after meetings.
Key points
,I
• ensure that discussions keep to the agenda and the time frame
• facilitate the discussions, ensuring that no one person dominates
• remain unbiased and avoid presenting his or her own opinions
unless absolutely necessary (the chairperson may give a casting
vote, in the event of a ' tie')
• summarise the decisio ns and clarify the actions, including the
persons responsible for implementation
• thank participants and bring the meeting to a closl.
Requirements after meetings
• Collect and o rga nise all materials that have been left in the room.
• Discard used scrap paper, ensuring that papers with confidential
matters are shredded.
• Return or arrange for the collection of all equipment, additional
furniture or other items that were placed in the room.
• Ensure that the roo m is tidy.
Follow-up procedures
• Type the minutes as soon as possible and present the first draft to
the chairperson for his or her input.
• Prepare the final copy of the minutes and give it to the
chairperson for approval.
• File a copy of the approved minutes in the organisation's minutes
book and record the entry in the index.
• Circulate the approved copy of the minutes to those who should
receive it.
• Send a 'Thank you' letter to the guest speaker, if there was one.
• Prepare a to-do list of all actions that yo u were asked to do, such
as send out correspo ndence. Perform these actions promptly and
tick them off on the checldist.
• It may be necessary to prepare an action plan. The action plan
is usually prepared as a table. The following headings may be
used: Action, Person(s) responsible, Start date, Completio n date,
Resources needed, Expected outcomes.
• Circulate the action plan to the relevant persons, including those
who were absent from the meeting.
Office personnel must be
knowledgeable about:
• requirements before,
during and after
meetings
• supplies and equipment
for different meetings
• Robert's Rules of Order
governing meetings
• meeting protocol (e.g.
seating arrangements) .
II
Test yourself
1 It is very important to a company that meetings are conducted efficiently
and effectively and that required follow-up procedures are carried out.
a List FIVE tasks that have to be completed before the meeting.
b List FIVE tasks that must be done on the day of the meeting.
c State some of the procedures that are done after the meeting.
d What can the chairperson do to ensure that the meeting is conducted
according to Robert's Rules of Order?
6.4 Legal requirements for annual general
meetings
OBJECTIVES
By the end of the unit you
should be able to discuss
the basic legal requirements
of annual gene , meetings
(AGMs).
,
Did you know ... ?
A fiscal or financial year can
begin in any month. For
example, the fiscal year of
some businesses runs from
April of one year to March of
the next.
Agenda of a typical AGM
• Chairperson's welcome
• Apologies
• Minutes of the previous
· AGM ·
• Matters arising from the
previous minutes
• Correspondence
• Chairperson's report
• Treasurer's report/financial
statements
• Election of officers
• General business
• Next meeting date
Public limited companies are legally required to hold an annual
general meeting (AGM) within six months of the end of the
organisation's fiscal year. Private organisations, such as clubs,
sporting bodies and charities, may have constitutions that state that
AGMs must be held. Many organisations hold AGMs, so you should
know the basic legal requirements.
The election of officers is done at the AGM. It is also the time when
the organisation reports on its activities for the past year and presents
its plans for the future. The AGM enables shareholders to be
informed of and involved in company decisions and operations.
Company's Act
The Company's Act (called Companies Act in some countries)
consists of the laws thqt are established by a country's government
to direct the operations of companies. The specific wording of the
laws varies from one country to another. However, they generally
regulate:
• the registration of compan ies
• management of companies
• publication and filing of financial statements
• compulsory meetings
• recordkeeping and access to records
• shares and the rights of shareholders.
Articles of incorporation and by-laws
A corporation is a business with a legal identity. It can be made
up of a single person (sole trader) or many persons. The articles
of incorporation make up the document that is registered with
the government when a corporation is formed. T he articles of
incorporation provide information such as:
• name of the company
• location of its registered office
• objectives of the business and the nature of its operations
• regulations for issues, such as the:
• power and authority of directors
• methods of appointment, remuneration and removal of
directors
• organisation of general meetings
• issue of shares a nd distri bution of dividends
• voting rights of me mbers.
The company's by-laws (also known as bylaws and bye-laws) are its
internal rules. They provide guidelines on how the organisation must
6 6.4 Legal requirements for annual general meetings
operate. By-laws are usually quite detailed and contain regulations
for matters such as the:
• time and venue for meetings of directors, officers and
shareholders
• start of the company's fisca l year
• amount of advance notice that must be given when a meeting is
called (usually 14 or 21 days)
• procedures to be followed in meetings
• transfer of stock (shares)
• maintenance and inspection of company records
• process by which by-laws may be amended.
r
"I
Different classes of
shares
Meeting proxies
• Ordinary shares:
These have no special
privileges or restrictions.
The dividends (or returns
on the investment) vary
according to the profits
made by the company.
This is the most common
class of shares.
• Preference shares:
These receive dividends
before ordinary
shareholders. Preference
shares usually offer a fixed
rate of dividends. Holders
of preference shares do
not have normal voting
rights.
• Deferred shares: These
are held by the firm's
founders or persons in
senior positions. They
receive a percentage of
the company's profits
after dividends have been
paid to the holders of
preference and ordinary
shares.
Share holders who are unable to attend an AGM may choose to
allow someone to vote on their behalf. This is called a vote by proxy.
Organisations usually send out a proxy form and a return-addressed,
postage-paid envelope with the notice for the AGM.
'-
Management, officers and shareholders of companies
The officers of a company are the persons who are appointed to
govern it. In Trinidad and Tobago, the Companies Act specifies that a
company shall have at least two directors and a public company must
have at least three directors. These directors may not be employees
of the company or its affiliates. The law also specifies that a company
must have a secretary.
The directors must ensure that all the company's activities are in
keeping with its constitution. Directors are responsible for ensuring
the success of the organisation. They are responsible for preparing
and delivering documents on behalf of the company, including:
• the annual accounts
• the allocation of shares
• changes in the company's registered office.
,/
Did you know ... ?
'
A corporation has legal rights
like a person. For example, it
can have bank accounts, own
property, sue and be sued.
The management team of a company include those persons who are
employed to control its day-to-day operations. T he management
team may consist of the following:
• Chief executive officer: Responsible for the entire operations and
reports directly to the board of directors.
• Chief operations officer: Oversees the design, marketing,
production, delivery and quality ot"the company's products and
services.
• Chief financial officer: In charge of the company's financial
affairs.
• Shareholders: The owners of a company. They provide the money
to finance the firm's opei·ations by buying shares.
6.4 Legal requirements for annual general meetings 6
Exam tip
Corporate records
You should become familiar
with concepts associated
with AGMs, such as the
frequency of meetings, the
purpose and amount of
notice required.
The company secretary is usually responsible for maintaining
corporate records. These are official records that include a wide
range of documents, such as:
·
• registers of directo rs, officers, secretaries, members
• contracts
• documents relating to redemption or purchase of shares
• records of resolutions and changes to the constitution of the
organisation
• minutes of board meetings and general meetings.
The public has a right to inspect corporate records of public limited
companies (see Unit 4.6 for the legal regulations governing access to
company records).
Test yourself
Key points
The basic legal
requirements of AGMs
deal with issues such as:
• Companies Act of the
relevant country
• management of
companies
• officers, shareholders of
companies
• meeting proxies
• corporate records
• articles of incorporation
and by-laws of the
particular company.
1 State how soon after an organisation's fiscal year-end an AGM should
be held .
2 All companies have by-laws.
a Define the term 'by-law'.
b List FOUR regulations that are addressed in by-laws.
3 a State TWO basic legal documents that are required when establishing
a public limited company.
b Briefly describe the purpose of each one.
4 List the THREEI classes of shares • that can be obtained from a company.
---·- - ..... . . ..
...- ...
---·--- -·--- .. ...
·
m
End-of-unit multiple-choice - Unit 6
5
List THREE issues that are appropriately discussed at:
Board meetings
C AGMs
A
1
If members leave during the meeting so that there is
no longer a quorum, what should the chairperson do?
A
Continue the meeting
2
State FOUR legal requirements for AGMs.
7
Read the following account and then answer the
questions below.
3
4
5
The chairperson called the meeting of the Kingston
Secondary School Board to order at 3.00pm on
Thursday 22 September 2012, as stated on the
agenda. After ensuring that there was a quorum
in the school's conference room, the attendan9e
register was circulated for the members to sign.
The term 'ad hoc' is used in connection with which of
the following?
A Votes
B
Committees
C Agenda
D
Notices
The principal, who is an ex officio member of the
board, outlined the school's calendar of events.
If an equal number of members at a meeting are for
and against a motion, what should the chairperson do?
A
Ask the members to vote again
It was necessary for the chairperson to give a
casting vote on two issues:
B
Request that a member change their vote
•
The date of the school bazaar
C Suggest that they forget about the motion
D Cast a deciding vote
•
Holding a fitness day during this term
One member enquired about the possibility of
sending a proxy to the next meeting because she will
be out of the country for six weeks.
A word-for-word report of a speech is described as
being which of the following?
A
Verbatim
B
Moving
C
Proxy
D
Oral
A motion to adjourn was moved, seconded and
unanimously approved. The chairperson then
declared an adjournment until the following Thursday
at 3.30pm.
How much advance notice is typically required for
AGMs?
A
Seven days
B
One week
C
21 days
D
Six weeks
What do the following terms mean?
A
Ex officio
iii Adjourn
A
ii
B Describe THREE types of formal meetings.
C Distinguish between 'quorum' and 'adjourn'.
D State THREE reasons why meetings are held.
State TWO types of correspondence that are .
required to be sent before a meeting.
3
Explain the function of Robert's Rules of Order.
4
State the difference between formal meetings and
informal meetings.
D
-.
~
Casting vote
iv Proxy
What should be done if there is no quorum?
Give a reason for your answer.
C Prepare an agenda and the chairperson 's
agenda for this meeting of the Kingston
Secondary School Board.
D The minute-taker has a very important role to
play in a meeting.
For how long should the minutes be taken?
ii State FIVE guidelines for taking minutes.
iii List some of the essential information that
should be included in the minutes.
Define a 'meeting'.
2
ii
What is a 'quorum'?
B
Structured questions
1
Staff meetings
6
B Recall the members who left
C Adjourn the meeting
D Ask the secretary to fill in for the missing
members
B
.....
--~ ..__..
_...._
.-....-.--
.. ..__...............
,. ,
II
s trade internationally and so need to travel to
!r parts of the world. Therefore, office personnel
make travel arrangements quickly and efficiently.
OBJI
By t�
sho�
the t)
S8Nil,,.,-, 1vyu11c;u IUI llaVt:JI.
Travel agencies
A travel agency sells travel-related products and services to
customers on behalf of suppliers, such as airlines, car rentals,
railways, ships and ferries, tour operators and hotels. Many travel
agencies have a department that specialises in making travel
arrangements for business travellers. There are also travel agencies
that specialise only in business and commercial travel. Table 7.1.1
shows some services offered by travel agencies.
Services offered by travel agencies
Advising on destinations, including laws and customs, currency exchange rates,
weather conditions and required documents
Informing travellers about the procedures for obtaining visas and passport�
Booking trips, often at short notice
Advising on the most feasible arrangements for visiting multiple destinations,
such as sequencing of stops, land travel between destinations within the same
country, booking flights with different airlines
Finding the best possible prices, including special rates
Arranging for travel insurance
Obtaining schedules
Arranging for group discounts
Making arrangements for transportation, hotel accommodation, car rentals and
so on
Arranging local and foreign tours
Preparing itineraries, that is, travel schedules. showing flight numbers, departure
and arrival times, proposed activities and so on
Delivering tickets and reservation confirmation forms
Providing information about customs regulations on what can be taken into and
out of the country
Table 7 .1.1 Services offered by travel agencies
.............. ,.... ... - _ .......� ...
___.... - .. ......__ ..
_
_
__.
7 7.1 Travel services
The following information must be provided for the travel agent:
• traveller's name, address and telephone numbers
• destination(s)
• desired date and time of departure and arrival
• preferred carrier
• type of service, such as first class, business class, economy class.
Carrier organisations
A carrier organisation provides transport by air, land or sea.
Carrier organisations include airlines, railways, shipping companies
and passenger bus services. Many of these organisations publish
schedules for their services. A typical schedule shows the places and
times of departure and arrival, expected duration and connections
or transfers (See Unit 7.4). Many carrier organisations have websites
that provide information about their se1vices and allow customers to
make reservations and purchase tickets online.
Some carriers offer a range of products and services specially
designed for business customers. These include:
• frequent traveller rewards, such as free flights and class upgrades
• discounted prices for groups
• in-flight internet access
• shuttle services from the airport to the city
• private aircrafts.
Tickets and e-tickets
A ticket is a printed document that is issued when a passenger
pays to travel with a carrier. An airline ticket usually shows travel
information, such as·:
• ·passenger's name
• flight number
• seat number
• place of departure
• departure time
• destination
• arrival time
• fares paid.
Did you know ... ?
The first e-ticket was issued in
the USA in 1994 by Northwest
Airlines. It is estimated that
the use of e-tickets will save
the airline industry $3bn USO
each year.
Many carriers now offer e-tickets (electronic tickets) instead of
traditional printed tickets. An e-ticket is stored on the carrier's
computerised rese1vation system. E-tickets are usually purchased
online or by telephone. The purchaser is given a confirmation
number, along with the µsual travel' information. The traveller can
view the e-ticket online and print a copy. The traveller checks in at
the carrier's counter, usually two to three hours before departure.
When the passenger presents proper identification, such as a
passport, a boarding pass is issued .
....... ___ ...... ---..__.. .._
__..__., - ...
_.............____.
7.1 Travel services 7
E-ticketing offers several advantages:
• E-ticketing costs less because there is no need to print paper
documents.
• There is no risk of e-tickets being stolen, lost or forgotten.
• It is easier for a passenger to make changes to travel plans because
all the information is available online.
• The airline can easily contact passengers by email or text
messaging if there are changes, such as flight cancellations or
delays.
• Travellers are able to obtain tickets cheaper by purchasing them
directly from the airline rather than through a travel agency.
• E-tickets can be purchased at day or night, any day of the week,
from any location that has internet access.
Exam tip
Understand the differences
between services provided
by and facilitated by
travel agencies. For
example, a travel agency
does not provide hotel
accommodation.
There are, however, some disadvantages and limitations:
• Some countries a~k to see the traveller's return ticket before
permitting entry.
• All travel information can be lost if the carrier's computer system
crashes.
• Passengers cannot use cash to purchase tickets.
• There might be problems if the traveller must switch to another
carrier because of flight cancellations.
• By booking online, travellers cannot benefit from th~ experience
and expertise of travel agents.
Test yourself
Key points
A travel agency sells
travel-related products
and services to customers
on behalf of suppliers,
such as airlines, car
rentals, railways, ships
and ferries, tour operators
and hotels.
A carrier organisation
provides transport by air,
land or sea.
A ticket is a printed or
electronic document
that is issued when a
passenger pays to travel
with a carrier.
1 Discuss the services offered by travel agencies: using the following
headings:
a Preparation of travel documents
b Scheduling
c Reducing cost of travel
d Transport and accommodation
e Information services
2 a What is a 'carrier organisation'?
b Identify THREE carrier organisations in your country.
c State THREE services, other than transportation, that are offered by
air carriers.
3 When Lysandre booked his flight online, an e-ticket was issued.
a State FOUR items of information that are usually given on a ticket.
b What is an e-ticket?
c State THREE advantages and THREE disadvantages of e-tickets for
the traveller.
•
m
7.2 Making travel arrangements
OBJECTIVES
By the end of this unit you
should be able to discuss
the types of services and
information required for
travel.
Some firms have a travel department because many of their
employees travel frequently. In other companies a member of the
office staff might be asked to make travel arrangements. Making
travel arrangements for a businessperson involves far more than
simply purchasing the required tickets. The person making the
arrangements will need to:
• find ou t the company's policies on issues such as maximum cost of
hotel accommodation and other travel expenses
• ascertain the destination and proposed departure and return dates
• confirm the dates and times of meetings and conferences, as well
as social events such as dinners
• prepare a list of the phone numbers of the car rental firms, hotels,
nearby restaurants and places that they must visit
• find o ut the executive's preferences with regards to seating, hotel,
car rental agency, dieta1y requirements and so on
• find out whether you should arrange for transportation to and
from the airport
• ask whether the executive's travel documents and visas are up to
date
• contact the travel agency with the necessary informatio n and
request a prelimina1y itinerary
• verify that all information is correct, including that the names are
correctly spelt - if there are no errors, ask the travel agency to
issue the ticket
• if the executive plans to drive, obtain or print out maps and
driving directions
• make sure to confirm all reservations and important appointments
the day before the trip.
Making hotel reservations
Executives or companies may have preferences about which
hotel should be used. If there are no stated preferences then the
person making the ar rangements may need to do some research
before selecting a hotel. T he following issues should be taken into
consideratio n:
• location ( e.g. distance fro m the venues of meetings or
conferences)
• quality ( e.g. how the hotel is rated according to the industry
standard)
• cost
• availability of rooms ( e.g. a hotel may be fully booked during peak
periods)
• additional services and facilities ( e.g. internet access, gym, pool,
restaurant, shuttle o r limousine services).
H otel reservations may be made by te lephone or via the internet;
however, they should be confirmed in writing. The confirmation letter
D
7.2 Making travel arrangements 7
Exam tip
You should be able to plan
an appropriate appointments
schedule for a business
executive who is travelling
abroad.
may be faxed or emailed to the hotel. The following information must
be provided to the hotel:
• name of the person for whom the reservation is being made
• type of room and occupa ncy, for example, whether a single roo m
or a suite, whether single or double occupancy
• da te and time of arrival to and departure from the hotel
• meals that will be required and whether there are any special
dietary requirements
• whether the hotel should arrange transportation or provide
par ki ng.
The hotel sho uld be asked to send a letter confirming the
arrangeme nts.
Scheduling appointments
Unit 5.3 provides some guidelines that should be followed when
managing appointme nts for executives. In addition to these general
guidelines, there are other issues that must be conside red when
scheduling appointments for a traveller.
Travel fatigue and jetlag
Travel is exhausting. It is unwise to schedule a ppointments too soon
after a flight. Jet lag occurs whe n a passenger travels through many
time zones in a short time, causing a disruption in the body's natural
sleep/wake cycle. Symptoms of jet lag include irritability, fatigue,
slee p disorder and nausea. Jet lag affects the ability to concentrate
and analyse, so an execu tive should not have meetings while suffering
from its effects.
Cost
In the business world, time equals money. This is particularly true
whe n travel incurs hotel a nd transpor tation costs. T herefore, it is
necessary to schedule appointments so that the time is used wisely. ·
For example, where possible, meetings in the same geographical
area should be scheduled on the same day. H owever, there should
be sufficient time between engageme nts so tha t the executive is not
unduly stressed or running late for subsequent a ppointments.
Local customs
Local customs must be taken into consideration when scheduling
appointme nts. In some countries it is acceptable to arrive a few
minutes late for an appo in tme nt, whereas in others persons a re
expected to arrive exactly on time. Business days and ho urs vary
from one country to ano ther. For example, in some Middle Eastern
countries business is no t done on Fridays. In many La tin countries
lunchtime may last as long as fou r hours.
m
7 7.3 Time zones
Unexpected events
T he schedule should be flexible enough to accommodate unexpected
events, such as flight delays or adverse weather conditions.
Language challenges
Arrangements should be made to have an interpreter present if the
executive is not fluent in the language of the country to which he or
she is travelling. This helps to prevent costly mistakes.
Preparing travel folders
Did you know ... ?
7j
Passports should be kept
separately from other
documents for safety reasons
and because they need to be
produced on demand.
("'
,...
~
A travel folder is used to arrange and store all the documents that are
needed for travel. These include:
• entry permit or visa if it is not attached to the passport
• tickets
• itineraries
• maps and driving instructions
• international driver's licence
• health certificate and immunisation card
• confirmation letters from hotels and car rental firms
• list of names, addresses and contact n umbers of persons to·be met,
hotels, restaurants, car rental agencies and so on.
Test yourself
Key points
An office worker
responsible for making
travel arrangements is
usually responsible for the
following tasks:
• scheduling of
appointments
• making hotel
reservations
• preparing travel folders.
1
2
3
4
You are in charge of making the travel and accommodation
arrangements for your supervisor to attend a conference in St Vincent.
List at least FOUR issues that should be taken into consideration when:
a Making the hotel reservations
b Scheduling appointments
Write out the necessary information that you will provide to the hotel
when making reservations.
State FOUR items that you will place in your supervisor's travel folder.
List FOUR other arrangements you should make to help ensure that
your supervisor has a safe and productive trip.
7.3 Time zones
OBJECTIVES
By the end of this unit you
should be able to calculate
time based on knowledge
of time differences between
two or more countries.
It is now common for businesses to have dealings with organisations
around the globe. A company in the Caribbean may both buy from
and sell to markets in E urope, Asia and the Americas. A large
number of multinational corporations have operations in this region.
Consequently it is necessary to have an understanding of time zones
in regions around the world.
7.3 Time zones 7
Rotation of the Earth and time zones
You will already know that when a place on the Earth's surface faces
the sun, daylight occurs. While half of the Earth is expe rie ncing day,
the o ther half is experiencing night (Figure 7.3.1). You also know that
the Earth makes a full turn of 360 degrees every 24 hours. This means
that the Earth turns 15 degrees eve1y hour (360/24 = 15). The world
is therefore divided into 24 standard time zones. The lines that mark
the time zones are called lines of longitude. Each space between two
adjacent longitude lines represents a pproximately one hour.
Figure 7 .3.1 Day and night
Look at the map showing day and night. You may notice that when
the sun is shining over Asia, Africa and E urope it is dark in most of the
Caribbean, the Americas and Australasia.
Time zones and their significance
Look at the time zone map shown in Figure 7.3.2. Identify the line
labelled Prime Meridian. The Prime Meridian is the 0° longitude
measureme nt on the globe of Earth. Now ide ntify the International
Date Line. T he Interna tional D ate Line is directly opposite the prime
meridia n o n a globe and has a measurement of 180°.
How to use a time zone map
Did you know ... ?
When you travel across
the International Date
Line you can gain or lose
a day. Can you explain
how this happens? Check
out the answer in the
Geography> International
Date Line section of www.
socialstudiesforkids.com
Calcula ting time zones by using the map is far easie r than you may
think. First, -locate your countly or region o n the time zone map. Places
. to the left of your location are to the west, whereas places to your right
are to your east. Places to the west are one hour earlier than your local
time for eve1y 15° of latitude you cross. Places to the east are one hour
later than local time for eve1y 15° of latitude you cross.
A numbe r of websites offer online help with ca lculating the date
a nd time in various parts of the world. Some of these a re www.
worldtimezone.com, www.timeanddate.com and www.earthtools.org
7 7.3 Time zones
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.~:
'
cij I
:21
Vi:>
+1
~~
calendar
ay
+3
'
+
\..
'
-9
-8
+3 +4 +5 +6 +7 +8
D Zones using Greenwich M ean Time
OJ Zones slow of Greenw ich Mean Time (later/ behind in time)
OJ Zones fast of Greenwich M ean Time (earlier/a head in time)
D
Half hour zones
(})
Solar ti me w hen it is noon at Greenw ich
- 9 +6 Hours slow or fast of Greenw ich M ean Time
Figure 7.3.2 Map showing time zones
12-hour
clock
24-hour
clock
2.37am
0237 hours
10.10am
1010 hours
12 noon
1200 hours
1.51pm
1351 hours
8.00pm
2000 hours
12 midnight
0000 hours
Table 7.3.1 Times using the 12-hour
and 24-hour clock
D
Expression of time in the 12- and 24-hour clock
Time may be expressed by using either the 12-hour or the 24-hour
clock. You are doubtless more familiar with the 12-hour clock system,
in which time is counted using am and pm to indicate morning and
evening. The 12-hour clock divides the day into two equal portions,
before midday or am (an abbreviation of the Latin expression ante
meridian) and after midday or pm (post meridian). Thus 9.20am
means 20 minutes after nine in the morning, whereas 9.20pm means
20 minutes after nine at night. Many organisations use a 24-hour
clock system to prevent confusion between am and pm times. For
example, the itineraries issued by airlines indicate all arrival and
departure times using the 24-hour clock. The 24-hour clock uses a
four-digit number to indicate the time. The number of hours that
have passed since midnight is indicated using 00 to 23, followed by
the minutes. Therefore 45 minutes after midnight is shown as 0045
hours (note that the dot or colon is usually omitted). Table 7.3.1
shows a random list of times using the 12-hour and the 24-hour clock.
7.3 Time zones 7
Exam tip
Many students have
problems working with the
24-hour clock. Practise until
you master this skill.
Converting to the 24-hour clock
To convert am times to the 24-hour clock, write the number of hours
followed by the number of minutes. For example, 7.15am = 0715 hours.
To convert pm times to the 24-hour clock, add 12 to the number of
hours and write the total, followed by the number of minutes. For
example, 4.22pm is (12 + 4) followed by 22 = 1622 hours.
Converting from the 24-hour clock
If the time shown is less than 1200 hours, insert a dot or colon after
the first two digits and write am (omit the first zero where necessary).
For example, 1037 hours = 10.37am.
If the time shown is more than 1200 hours, subtract 1200. Then insert
a dot or colon after the first two digits and write pm (omit the first
zero where necessary). For example, 2045 hours is (2045 -1200) =
0845 = 8.45pm.
Test yourself
Key points
Time zones split the world
into areas that have the
same time.
Time zones are separated
by lines of latitude.
Time can be expressed in
12-hour and 24-hour form.
1 What time is it in your own country when it is 9.00am in each of the
following cities?
a London, England
b New York City, USA
c Caracas, Venezuela
d Tokyo, Japan
2 Express the following times using the 24-hour clock:
a Twenty-seven minutes after five i_n the morning
b Half past 12 in the afternoon
c A quarter to eight at night
d Five minutes after midnight
3 Express the following times using the 12-hour clock:
a 0923
b 1457
C 0045
4 'I am not doing geography! Why should I have to read a time zone
map?' Sherry complained. Explain why it is important for an office
administration student to understand time zones.
7.4 Schedules and itineraries
OBJECTIVES
By the end of this unit you
should be able to interpret
schedules prepared by
carrier organisations and
communicate information
in writing using different
formats, schedules and
itineraries.
A schedule is a timetable that shows the destinations, departure and
arrival times, stops and connections for a train, bus, ship or ai rline.
Some schedules also show what services are provided, such as airport
connections, automated ticket dispensers and refreshments (Figure
7.4.1).
How to use a train schedule
Trains go to specific stations. The name of the station may be
found by consulting the station listing or map provided by the train
company.
1 Find the relevant section of the schedule, by reading down the
column to find the station name.
2 Look along the row to see which trains serve that station, their
times of arrival and departure, and direction of travel.
3 Take note of the train number and the time.
4 Check the key to see the meanings of the symbols and determine
what amenities are provided.
5 Check whether reservations are necessa1y.
COASTAL SERVICE - WESTBOUND
Sunnyville • Palm Beach • Coral Harbour • Long Point • Prospect Bay
Train number
427
453
409
461
475
Normal Days of
Operation
Mo-Fr
SaSu
Mo-Th
Fr
Daily
Will Also Operate
30/5, 10/11
Will Not Operate
30/5, 10/11
On Board Service
[BJ Im g,
[BJ
[BJ g,
[BJ
[BJ Im
Sunnyville
12:05
13:25
15:02
17:05
19:10
Palm Beach
12:47
14:09
15:46
17:47
19:55
Coral Harbour
14:25
15:46
17:29
19:23
21:37
Long Point
15:00
16:25
18:10
20:01
22:14
Prospect Bay
16:40
17:15
19:10
21:50
23:50
30/5, 10/11
!Bl Coaches: Reserved seat ticket required for boarding
~ Business class: Service available
g. Cafe: Sandwiches, snacks and beverages
Figure 7.4.1 Part of an Amtrak rail schedule and key
7.4 Schedules and itineraries 7
How to use a bus schedule
Buses travel along specific routes. A bus schedule shows the time that
a bus will be at specific stops along the route (Figure 7.4.2). The bus
company may also provide a narrative of the route taken by a bus.
1 Identify the route number that serves the area in which the
traveller is located and go to the appropriate section of the
schedule.
2 Find the transit centre (terminal) or street stop from which the
bus will be taken by looking down the column.
3 Find the time the bus will be at the stop by looking across the
relevant row.
Route 3 - Morning Service
MONDAY - FRIDAY Service starts at 6:15AM
SATURDAY Service starts at 8:15AM
Central Bus Station
6:15AM
7 :15AM
8:15AM
9:15AM
10:15AM
11 :15AM
Carlton Road
6:20
7:20
8:20
9:20
10:20
11 :20
Rosalie Avenue
6:30
7:30
8:30
9:30
10:30
11 :30
Union Street
6:35
7:35
8:35
9:35
10:35
11 :35
Norwood Drive
6:40
7:40
8:40
9:40
10:40
11 :40
Figure 7.4.2 Part of a Greyhound bus schedule
How to use ship and ferry schedules
A shipping company or ferry service may be used to get from one
island or section of a country to another. For example, Trinidad
and Tobago offers a ferry service between its two major cities (Port
of Spain and San Fernando), as well as between the two islands
(Figure 7.4.3).
1 Vessels may operate at different speeds and have different
carrying capacities. Some may be passenger-only, whereas others
may cany vehicles. Determine which type of ferry is desired by
checking the service guide section of the schedule.
2 Identify the ship/feny name and the point of departure on the
schedule.
·
3 Look across the row to determine the date and time at which the
ferry will sail.
-
7 7.4 Schedules and itineraries
-
-
I
October 2011
I
Sailing Date
i Sail Time :i
Vessel
1!
From
-
iiVoyage ID
Sat, Oct 01, 2011
06:30AM T&T Spirit
Tobago
R111001T1
Sat, Oct 01, 2011
07:30AM T&TExpress
Port of Spain
X111001P1
Sat, Oct 01, 2011
04:00 PM T&TExpress
Tobago
Sat, Oct 01, 2011
04:00 PM T&T Spirit
-
Port of Spain
-
Sun, Oct 02, 2011
08:30AM T&TExpress
Port of Spain
X111002P1
Sun, Oct 02, 2011
09:30AM T&T Spirit
Tobago
R111002T 1
Sun, Oct 02, 2011
03:00 PM T&T Spirit
Port of Spain
R111002P1
Sun, Oct 02, 2011
05:00 PM T&TExpress
Tobago
X111002T1
Sun, Oct 02, 2011
11:00 PM WARRIOR SPIRIT
Tobago
W111002T1
Sun, Oct 02, 2011
12:00 Noon WARRIOR SPIRIT
Port of Spain
W111002P1
X111001T1
R111001 P1
Mon, Oct 03, 2011
06:30AM T&T Spirit
Tobago
R111003T1
Mon, Oct 03, 2011
07:30AM T&TExpress
Port of Spain
X111003P1
Mon, Oct 03, 2011
02:00 PM WARRIOR SPIRIT
Port of Spain
W111003P1
Mon, Oct 03, 2011
05:00PM T&TExpress
Tobago
X111003T1
Mon, Oct 03, 2011
05:00PM T&T Spirit
Port of Spain
R11 1003P1
Mon, Oct 03, 2011
11:00 PM WARRIOR SPIRIT
Tobago
W111003T1
Tue, Oct 04, 201 1
06:30AM T&T Spirit
Tobago
R111004T1
Tue, Oct 04, 2011
07:30AM T&TExpress
Port of Spain
X111004P1
Figure 7 .4 .3 Part of a Trinidad inter-island ferry schedule
How to use schedules on the internet
The websites of most major carriers feature electronic schedules
similar to the one shown in Figure 7.4.4. The user must enter the
required information, such as proposed date and time of travel, place
of departure and destination and class of service. The computer
then searches the carrier's database of schedules and displays the
requested information.
Make your booking
c.i Round Trip O One-way
To :
I·•-Select a location or search below--I·--Select a location or search below---
Depart :
( 19/10/20 11
,[I] !+t- Oda_ys _
Return :
j 19/ 10/20 11
r!ll
Adults :
E:JEl Children : ro-fil Infant s : IO !EI
From :
Most airlines stop checking in
passengers 45 minutes to an
Multi- destination
!E]I
Alternativ~ly, you can book senior citizens
Class: .
IEconomy
hour before the flight departs . .
Figure 7.4.4 The Caribbean Airlines online schedule
--
-
Search I
-
7.4 Schedules and itineraries 7
Preparing an itinerary
A word-processing or spreadsheet program on a computer may be
used to prepare a travel itinerary (Figure 7.4.5). T his enables the user
to easily make changes such as insertions and deletions. A copy of the
proposed itinerary should be printed out for the traveller to peruse
and make changes, if necessary. The amended itinera1y may the n be
printed.
Matteson Davis
Tri p to Trinidad
23 to 26 July 2012
23 JULY 2012
TIME
EVENT
DETAILS
0645
Akbar Ali from Davis Car Company will pick you up
and take you to the airport
Akbar's cell: 1 234 555 6789
Car company tel: 1 432 765 7654
Car reservation number: WR 201 M
0745
Check in at the Caribbean Airlines counter. Verify gate
number and go to departure gate
Caribbean Airlines local 24-hour helpdesk
tel: 1 121 323 0900-8
Your ticket number: CA23X431
0830
Caribbean Airlines flight CA747 departs.Terminal 3 for
Piarco Airport
Seatno:2A
0910
1145
1430
. Flight CA?47 arrives at Piarco Airport
A car has been reserved for you at Kelly's Car Rental.
It is located at Room 32, Building 6, Piarco Airport
Turn left when you exit the arrivals building
Kelly's is located the sixth doCJr down
Kelly's tel: 1 868 786 3207
I requested a car that is equipped with a
navigation system. However, I have also
included a road map from Piarco to Port of Spain
in your travel folder
Room 23 has been reserved at the Imperial Hotel, 19
Royal Avenue, POS
Hotel tel: 1 868 767 3423 Ext: 23
Remember to confi rm the conference room for
your Sunstar meeting at 1430 today
Lunch meeting with Ste phen Roy
CEO of CRD Distributers
178 Abercromby Street, POS
Mr Roy's personal assistant, Andre, w ill meet
you in the hotel lobby at 1130
Mr ~oy's office: 1 868 300 9921 Ext: 1212
Meeting with representatives of Sunstar Promotions
in conference room 4 at the Imperial Hotel
Sunstar's tel: 1 868 444 2917
The information package is in a 10 x 17 manila
envelope labelled 'Sunstar' in your briefcase
..
1,.
It
1,. ,
-
Figure 7.4.5 Part of an itinerary
To prepare the travel itinerary
• Type the name of the traveller, and the date and destination of the
trip.
• Type all important contact information for the hotel and
transportation providers.
• Type specific travel details - how1 when and where. Ensure that
times are for the count1y in which the event will take place. Apply
-
7 7.4 Schedules and itineraries
the knowledge about time zones and the 24-hour clock that you
gained from Unit 7.3.
• Put in appointment details:
• names and titles
• organisations
• start and finish times
• venues
• contact n umbers.
• Include emergency contact numbers.
• Type in important reminders.
Exam tip
Activity
You must be able to present
information in different
formats, such as to-do lists
and checkl ists.
Assume that you are Alicia Howell and that you work in the general office
of Baltic Trading Company. You have received the following memo from the
public relations officer.
To: Alicia Howell
From: Arthur Morris
Date: 22 September
Subject: Travel arrangements for October trip
I'm travelling to St Lucia on Monday (7 Oct) and returning on Thursday
night at 11.55. Please prepare my itinerary using the 24-hour clock.
Meetings
Tuesday 10am with Chris Foster at his offices in Castries . 2.30pm with
Susan Rabourne at her office on Centre Street.
r
Key points
Office personnel must be
knowledgeable about the
preparation, interpretation
and use of schedules and
itineraries .
Train, bus, ship and
airline schedules
provide information on
destinations, arrival and
departure times and
services provided by the
carrier.
A travel itinerary should
include the dates,
times and details of all
arrangements, such as
transport, meetings and
accommodation.
Wednesday 9am with a management team at Royal Caribbean
Industries.
I'm supposed to meet with Thomas Hardy some time duri ng the visit
(please confirm arrangements).
Lunches and dinners
Wednesday at Captain Hook Restaurant Hotel with Chris Foster (1pm)
at La Caribe. I'm with Jenny Blake, Gail Nicholson, James Rawlins and
Marcus Henry (7.15pm) on the night of my arrival.
1 Prepare the itinerary.
2 What are TWO ways in which the travel plans can be improved?
Test yourself
1 List THREE types of information that you can get from a bus or train
schedule.
2 Identify a program that can be used to prepare an electronic itinerary.
Why would you choose this program?
3 List THREE important facts that should be on an itinerary. Briefly explain
why each is important.
7.5 Travel documents
OBJECTIVES
Several documents may be required for travel abroad, including
a passport, visa or entry permit, and health certificate. It is
recommended that these documents be valid for at least six months
past the proposed date of travel.
By the end of this unit you
should be able to explain the
necessity for various travel
documents.
Passport
A passport is a document issued by the government to a citizen to
allow travel abroad. The passport contains information about the
traveller, including:
• name
• date of birth
• citizenship
• country of residence
• physical features, such as height, eye colour, skin colour,
distinguishing marks
• signature.
The applicant is usually asked to provide:
• a completed application form
• proof of citizenship, such as a birth certificate
• proof of identity, such as a national identification card
• two identical passport photos
• the reg uired fees.
Did you know ... ?
l
A transit visa may be
required when the traveller
must stop over or change
planes in a country other than
his or her destination. Travel
agencies are usually able to
inform their customers about
whether they must obtain
transit visas.
Visa
_j
Some countries require that visitors must have a visa (a stamp in
the passport that indicates that a person is authorised to enter the
country from which it was issued). The visa is obtained from the
embassy or consulate of the country to which the person will be
travelling. A visa may be issued for a single visit or for multiple
entries and allows entiy for a specific purpose (e.g. study, vacation,
business) for a specified period of time. A visa does not guarantee
that the traveller wilJ be permitted to enter the country. The final
decision is made by the officers at the port of entiy.
Travel permits
Some governments require an entry permit for persons visiting
either the country or specified sections of the country. For example,
a traveller must obtain an entry permit from the Chinese government
before going to Tibet. The following information may be required by
the authorities:
• purpose of entry
• description of business to be transacted
• name and address of company, firm or business you represent
• products or services invotved
... ..
.J..... ................ . - _ _ _ _
_
.......
-
#
. -......... - ~
_ _, _
.. ~
7 7.5 Travel documents
•
•
•
•
•
names and addresses of persons to be contacted
places to be visited
proposed duration of visit
expected date of entry
carrier.
Some countries require a re-entry permit for their nationals and
residents who spend an extended period of time abroad.
An exit permit may be required before a traveller is allowed to leave
a country.
CARICOM travel card (CARIPASS)
The CARI COM Heads of Government has approved the
implementation of a regional travel card system called CARIPASS
that will facilitate regional travel for its citizens. The CARIPASS card
will be issued by the national immigration offices. The countries that
are presently participating in the CARIPASS system are:
• Antigua and Barbuda
• Dominica
• Guyana
• St Kitts and Nevis
• St Vincent and the Grenadines
• Barbados
• Grenada
• Jamaica
• St Lucia
• Trinidad and Tobago.
There are several anticipated benefits, including:
• the use of a credit card-sized pass rather than a passport (although
the CARIPASS applicant must have a passport that is valid for at
least six months)
• no need to present passports for stamping
• automated recording of entry and exit at the CARIPASS gates
• express lines for cardholders, reducing waiting times.
Health certificate
Figure 7.5.1 International Certificate
of Vaccination or Prophylaxis
The World H ealth Organization requires that an International
Certificate of Vaccination or Prophylaxis (Figure 7.5.1) be obtained
for persons travelling to or from some regions where there is the risk
of contracting yellow fever. The vaccine may be required, depending
on:
• country of departure
• countries visited in transit
• countries visited within six days before the planned trip
• destination country.
7.6 Monetary instruments 7
The International Certificate of Vaccination or Prophylaxis must be
signed by an authorised health worker and must have the official
stamp of the centre at which the vaccine was given. This certificate
should be kept with the traveller's passport.
Some countries may also require proof of vaccination for other
communicable diseases, such as cholera or malaria. Travellers should
check with the embassy or consulate of the destination country to get
their specific vaccination requirements.
Exam tip
Ensure that you can correctly
interpret the information
on travel documents such
as tickets, itineraries and
passports.
Passengers who need to use prescription medicines are advised to
have a medical declaration in order to avoid difficulties with the
customs or securi ty authorities of some countries. It is recommended
that only the amount of medications needed for the trip should be
carried. The drugs sho uld be kept in their original containers.
Tax clearance
Some governments do not allow travellers to leave the country until
they pay all the taxes they owe. The tax clearance certificate is a
document that is issued by the country's revenue department as proof
that all taxes have been paid.
Key points
Documents that may be
required for travel include:
• passport
• visa
• entry permit
• health certificate
• tax clearance certificate.
Test yourself
1 When applying for a passport, applicants are asked to submit some
important documents. List FOUR of these documents.
2 List FOUR types of information on a passport . .
3 To travel to some countries you may require proof of vaccination. What
are the communicable diseases that you have to be vaccinated against?
4 Explain ,the major differences between a visa and an entry permit.
7.6 Monetary instruments
OBJECTIVES
By the end of this unit
you should be able to
determine the monetary
instruments needed for
travel.
Travellers to a foreign country usually purchase money in that
country's currency. The currencies of various countries have different
values. The exchange rate is the amount by which the currency of one
country is multiplied to get its equivalent value in another currency.
How are the different exchange rates used? If a person wishes to
purchase currency from the bank, the bank's selling rate is used. If the
person wants to change USD currency into TTD, then the bank's buying
rate is used. The bank therefore makes a profit by converting currency.
It is unwise for a traveller to carry large amounts of cash because of
the high risk of loss or theft. Monetary instruments, such as traveller's
cheques, credit cards, letters of credit and bank drafts, offer a safer
alternative to cash.
-
7 7.6 Monetary instruments
Activity
Traveller's cheques
1 Visit a bank or check online
A traveller's cheque is a pre-printed cheque, worth a fixed amount,
that is bought at a financial institution. The purchaser must sign each
cheque at the counter where it is purchased. It is signed once more
when it is used to make a payment. T he two signatures are compared
to ensure that they match. The customer is asked to provide some
form of identification. It is convenient to use traveller's cheques
because they are:
• issued in a wide variety of currencies ( e.g. US dollars, yen, euros)
• accepted in most parts of the world
• easily replaced if lost or stolen.
for the exchange rate of
your local currency for the
currency of:
• USA
• Japan
• Canada
• UK
• European Union
• any THREE Caribbean
countries.
2 Calculate how much of
each currency a traveller
will get for $1,500 (your
local dollars).
Some institutions are now offering pre-paid foreign exchange (Forex)
cards as an alternative to traveller's cheques. The customer must visit
the institution to be validated for the sum of money paid. A service
fee is also required. The card may then be used to withdraw money
from automated teller machines (ATMs) abroad.
3 If the traveller returns
home with 100.00 of each
currency, how many local
dollars will the bank give in
exchange?
Credit cards and debit cards
Did you know ... ?
Banks do not normally
exchange foreign coins.
J
The Bani<
1234 5618 1234 5618
1
·• "'" "
CreditCard
UlRDHOLOER NRME
Figure 7.6.1 Credit card
Credit cards and debit cards are pieces of plastic with a magnetic
strip that holds coded information, such as the cardholder's name .
and the card number. Debit cards allow the user electronic access to
the funds that are in his or her account. Credit cards allow the user to
borrow up to a predetermined amount to pay for transactions.
Credit cards are the most popular alternative to cash when travelling
abroad. There are a number of advantages to using credit cards, one
of the most important being t~at it offers a degree of th'eft. protection.
If the theft is reported immediately, the card holder may not have
to pay for any unauthorised purchases. Additionally, credit card
companies may offer incentives, such as:
• cashback on purchases
• travel benefits, such as frequent flier miles
• bonus points that may be redeemed for discounts at_stqres and
restaurants
• insurance coverage in case of accidental death or dismemberment.
Letters of credit
Exam tip
You should be
knowledgeable about the
methods of payment that
can be used by a traveller
and the advantages and
disadvantages of each
method.
-
:
Letters of credit are used to facilitate trade, especially internationally. A
letter of credit is a document issued by a bank, on behalf of its customer,
that guarantees payment to a seller when it is confirmed that the goods
have been sent within the specified time limits. The letter of credit
protects both the buyer and the seller. The buyer is protected because
the bank will release the funds only when preset conditions have been
fulfilled. The seller is protected because payment is guaranteed once the
specified conditions have been met. The abbreviations LC or LOC are
payment terms used to signify a letter of credit.
-- --.-- ... . .....----~
.
...
..........,
.
7.6 Monetary instruments 7
Bank drafts
A bank draft is a cheque that is guaranteed by a bank. A bank draft
is also called a cashier's cheque. The sum on the cashier's cheque
is immediately take n from the buyer's account when the cheque is
prepared. Therefore, the recipient of a bank draft is assured that the
cheque will not bounce.
~
r r r- ,,,..
Key points
Monetary instruments
used when travelling
abroad include:
• traveller's cheques
• credit/debit cards
• letters of credit
• bank drafts
• cash.
Test yourself
1 List THREE monetary instruments that can be used instead of cash
when travelling. What are TWO benefits of each?
2 If the exchange rate is $1 USO = $8.50:
a How much will you get for $300 USO?
b How much will $1 ,600 USO cost you?
3 Copy and match the correct answer in column B to the word in column
A
Column A
Column B
Passport
An instrument that enables its holders to buy products and
obtain credit
Visa
A paper or book giving a citizen official permission to travel
in a foreign country
Itinerary
An official signature or endorsement on a passport offering
the bearer entry into another country
Travel agent
An organisation that provides land, sea or air transportation
Entry permit
A booking for a room or a flight
Credit card
'
A business that arranges trips, tickets, hotel reservations
and other appointments for travellers
Carrier
A record of all travel arrangement details
Travel agency
Written permission to enter restricted parts of a country
Reservation
A person who arranges for travel, accommodation and
opportunities
End-of-unit multiple-choice - Unit 7
6
1 Which one of the following would NOT be needed by
a travel agent when making bookings for someone
who is travelling for work?
2
A
Details of where they are travelling to
B
What the traveller's preferences are
C
The itinerary for meetings
D
Dates of travel
Which of the following is the most risky method of
taking money to a foreign country?
A
1.40pm
B
11.30am
C 9.30pm
D 10.40am
Structured questions
1
A
Dis.tinguish between a travel agent and a carrier
organisation.
A
Foreign currency
B
State SIX ways travel agencies facilitate travel.
B
Traveller's cheques
C
~
Bank draft
Letter of credit
What information would a travel agency request
from a traveller when booking a flight?
D
3
It is 8.30 on Monday morning and you wish to call
Algeria. Algeria is 45° east of your country. What time
is ii in Algeria?
2
What is an itinerary and what information does it
contain?
3
Identify and explain at least THREE documents
required for travelling overseas. .
4
Identify THREE items that a travel folder should
contain.
5
Assume that you are a personal assistant in an
organisation. Outline some of your responsibilities
and roles in preparing an executive for a business
trip aboard.
6
State THREE privileges that CARICOM citizens have
when travelling to that organisation's member states.
What is an itinerary best described as?
A
A travel agent's schedule
B
A list of current transport rates
C The confirmation of all bookings
D A list of all travel and meeting arrangements
4 . Which of the following workers is usually responsible
for making travel arrangements in an organisation?
A Tour guide
B
Sales clerk
C Personal assistant
D
5
Accounting assistant
Laura has sent an itinerary to her supervisor who is
travelling the next day. The time for check-in is 2045.
Identify this time using the 12-hour clock.
A
6.45
-S
12.45
9.45
o· 8.45
C
ID
OBJECTIVES
By the end of this unit you
should be able to describe
the role and functions of
the human resources office
in needs analysis and job
description.
Human resource management (HRM) plays a vital role for all
employees and potential employees. It enables the business to
recruit, train and retain the right people, so that the organisation's
goals are achieved. HRM recognises that the people who work in an
organisation are its most important assets, in that the organisation's
success is dependent on their performance. As Figure 8.1.1
illustrates, HRM involves a number of related functions.
Needs
analysls
Induction
Figure 8.1.1 Functions of the HRM office
Did you know ... ?
The HR officer has a legal
and moral duty to disclose
knowledge of criminal
activity, such as theft or child
molestation. In these cases
the employee must be urged
to go to the authorities first,
before the HR worker takes
further action.
The human resource (HR) department is essential for the successful
operation of all departments, because its main purpose is to ensure
that there is an adequate supply of suitable personnel throughout the
business. The HR department is responsible to both management and
each employee, and must maintain good relationships with both. In
being responsible to management, the HR officer must make decisions
to ensure the success of the organisation. This includes advising on
policies concerning issues such as health and safety, absenteeism and
work scheduling. On the other hand, the HR officer must also protect
the interests of workers. For example, the HR officer may not disclose
information an employee provides about personal problems.
m
8 8.1 Human resource management
This unit will focus on needs analysis and job description. Subsequent
units will deal with the other aspects of HRM.
Needs analysis
It is important for the HR department to maintain good
communication with the other departments so that accurate,
timely data can be obtained. The first steps in workforce planning
include the performance of a needs analysis and the preparation of
a job description and job specification. A needs analysis is done by
investigating:
• what jobs must be done
• what is done to perform each job
• how and why it is done
• the type and level of knowledge and skills that are needed to
perform each job
• the physical demands and environmental conditions of each job.
Exam tip
You need to understand
tbe difference between the
job description and the job
specification.
The data gathered from the needs analysis is used to prepare job
descriptions and job specifications. Both the job description and
job specification are important when recruiting workers. The job
description helps the organisation to determine the nature of the
position and lets the applicant know what he or she is required to do.
The job specification helps the organisation to determine how well
a potential employee will fit in with the organisation's structure and
objectives, and tells the applicant what qualities he or she needs to have.
Job description
A job description is a list of the duties and tasks that must be done in
a job. It provides an overview for the job by outlining its features and
requisites. A job description is written using headings such as:
• Title: Job title of the position being advertised
• Summary: A brief.description of the job
• Accountability: The person to whom the employee will be
reporting
• Responsibility: The people for whom the employee will be ·
r~sponsible
• Location: The place where the job will be based; environmental
conditions under which the job will be done
• Pm·pose of the job: What the post holder is expe_c ted to achieve
• Main duties: A brief description of the post, stating the main
areas of responsibility'
• Equipment: A list of the tools, equipment and machinery that
must be used to do the job
• Terms of employment: Hours of work, remuneration, holiday
entitlement and benefits
.
.
A job description is used for several purposes, including to:
• plan the worktorce needs of an organisatio n
D
8.1 Human resource manage
•
•
•
•
advertise for prospective employees
provide a basis for the selection of an individual to fill the position
identify the skill levels and qualifications required
determine the level and type of training that the organisation must
perform to enable workers to perform their jobs effectively
• calculate the amount of compensation that must be provided,
given factors such as required qualifications, responsibilities and
work environment
• evaluate the performance of workers.
Activity
Collect job advertisements
from the newspaper.
1 Identify the job
descriptions.
2 Identify the job
specifications.
Key points
HRM enables the
business to recruit, train
and retain the right people,
so that the organisation's
goals are achieved.
The HR department
is essential for the
successful operation of all
departments.
It is important for the HR
department to maintain
good communication with
the other departments so
that accurate, timely data
can be obtained.
A Job description is a list
of the duties and tasks
that must be done in·a
job.
-A job specification
outlines the human
characteristics needed for
the position.
\
Job specification
A job specification outlines the human characteristics needed for
the position. It identifies the knowledge, skills, abilities, attitudes
and experience needed for an applicant to successfully complete the
duties. These requirements may be classified in the following ways:
• Essential attributes: Skills, knowledge and attitudes that are
absolutely necessary for the job
• Desirable attributes: Additional attributes that will enhance job
pei'formance
·
• Contra-indicators: Attributes that will hinder job performance
The job description and job specification may be combined and
published as an advertisement when a firm is recruiting employees to
fill a position.
Test yourself
1 HRM is critical to the success of a business. If HRM fails, the entire
business suffers.
a List FIVE functions of the HR department.
b Explain THREE ways in which the HR department contributes to the
success of a business.
c Discuss TWO reasons why there must be good communication
between the HR department and other departments.
2 a Explain the difference between a job description and a job
specification.
b State FIVE types of information that are provided in a job description.
c List THREE sets of information that the job specification contains.
d The job description is used to advertise vacancies. State THREE other
uses of this docl'..Jment.
·
e State THREE ways in which the job specification is used.
OBJECTIVES
By the end of this unit you
should be able to describe
the role and functions
of the human resources
office in recruitment and
interviews.
Recruitment
Recruitment is the process of searching for, attracting and selecting
candidates for a job or jobs. The recruiter may be the employer or
manager. Large.organisations may have trained recruiters in their
human resource (HR) department. Some businesses hire recru iting
agencies. The recruiter serves as a representative of. the employer.
Internal and external recruitment
Internal recru itment occurs when persons who work with an
organisation ate given the opportunity to apply for a vacant position .
There are a number of advantages to internal recruitment:
• usually less expensive
• takes less time
• increases the opportunity for employees to advance
• the employer already knows the strengths and weaknesses of the
applicant
• current employees may be rewarded with promotion for their
good work
• staff may be encouraged to remain with the organisation
• reduced training costs, as the employee is already familiar with the
organisation.
Employe rs may choose to do external recruitment for a number of
reasons:
• ·c urrent employees may not have the required attributes for the
job.
..
• It allows employers to select from a larger number of candidates. ·
• It brings new ideas and abilities into the organisation.
Exam tip
Ensure that you understand
the term 'shortlist', the criteria
that are used for shortlisting
and the stage in the
recruitment process at which
shortlisting is done.
I
The recruitment process entails a number of steps:
1 The employer establishes selection criteria (job analysis,
description and specification).
2 The position is advertised using selected communication channels;
such as newspapers, company newsletters, websites or word of ·
mouth.
·
3 The prospective employee responds to the advertisement,
providing information about his or her attributes by submitting
documents such as a completed application form or letter of
application, resume or curriculum vitae (CV).
4 The employer prepares a shortlist by selecting the candidates who ·
best meet the job requirements.
5 The selected candidates are interviewed and assessed.
6 T he employer makes a decision to appoint.
7 A job offer is made to· the chosen applicant.
.
8 If the offer is accepted, the prospective employee is invitee! to meet
with the employer to negotiate and finali_se terms of employment.
9 The employment begins.
8.2 Recruitment and interviews 8
Interviews
The main purpose of an interview from a human resources
management (HRM) perspective is to assess an applicant's suitability
for a position. The interviewer prepares for an interview in this way:
1 Read the job description, job specification, resume and application
form to identify the requirements for the position and to
determine the areas in which further details will be required.
2 Plan the questions, based on the requirements for the position.
3 Set up an interview panel, if necessary.
4 Prepare for potential _questions from the job applicant. An
applicant may want to get further information about issues such as
the organisation's culture.
5 Prepare an interview schedule.
Interview questions
It is important to prepare interview. questions that will cover all
relevant a reas, such as details about the candidate's work experience.
The interviewer should avoid closed-ended questions. A closedended question limits the respondent's answer to 'Yes', 'No', or a
simple, sp·ecific response. For example, asking how lo ng an applic;mt ·
stayed in the previous job wiJI elicit only the number of years. In
contrast, an open-ended question encourages the respondent to talk
about the issue under discussion. For example, a respondent may be·
asked: 'Would you please tell me more about your responsibilities in
your previous job?' (See also Unit 3.5.)
Panel interview
There are several interviewers present in' a panel interview (Figure
8.2.1). Panel interviews are designed to get different points of
view, so it is wise to select interviewers from different levels of the
organisation. 'Typically, an interview panel consists of the manager
of the hiring department, another manager in a related field, and
another experienced worker. Usually the interviewers take turns
in asking questions, as decided beforehand. For example, one
interviewer may ask about skills, another about work history a nd
so on. At the end of the interview, each panel member rates the
interviewee. An additional advantage of the panel interview -is that it
helps determine how well a candidate can handle pressure.
Periodic interviews
• T he HR department also conducts periodic inte1views with existing
staff. These interviews help the HR department to:
• update their records where there have been changes in the
workers' personal data, education and training, a nd so on
• determine training needs
• determine the most appropriate deployment of staff
. .......... __ - ..
..___
I
8 8.2 Recruitment and interviews
• evaluate the leve l of employee mo tivation
• identify staff welfare needs
• obta in the employees' viewpoint on differen t issues in the
organisation .
Figure 8.2.1 Panel interview
Test yourself
Key points
Recruitment is the
process of searching for,
attracting and selecting
candidates for a job or
jobs.
The main purpose of an
interview from an HRM
perspective is to assess
an applicant's suitability
for a position.
1 What is recruitment?
2 Differentiate between:
a Internal and external recruitment
b Recruiting and periodic interview
3 Compare the advantages and disadvantages of internal and external
recruitment.
4 State THREE tasks that are performed by the HR department during the
recruitment process.
5 You are responsible for guiding Aduke Haynes, a new worker in HR,
through the recruitment process. Prepare an interview preparation
checklist for Aduke.
6 One task in the recruitment process is the preparation of a shortlist.
a What is a shortlist?
b State THREE criteria that can be used to shortlist applicants.
8.3 Induction and deployment
OBJECTIVES
By the end of this unit you
should t;:>e able to describe
the role and functions of the
human resources office in the
induction and deployment of
workers.
Think about when you first started secondary school. How did
you feel? How long did it take you to get accustomed to your new
environment? Did anyone help? Was there a structured programme
to help new students to get familiar with the school's practices and
policies? Could anything have been done to make it easier for you to
settle in to your new school?
Induction
Induction is the process of introducing new employees in the
organisatio n, providing guidance and support to adjust or acclimatise
to their jobs and working environment. An.effective induction
programme is structured and standardised and will:
• communicate the organisation's objectives, policies and •
procedures
• help the new workers to understand their rights and responsibilities
• provide specific training for the role
• build the new employee's self-confidence
• foster confidence in and loyalty to the organisation
• help promote a harmonious working relationship among employees.
Induction activities should begin before the new staff members
arrive. Some pre-arrival induction activities include:
• preparation and organisation of all necessary forms to be
completed ·
• organisation of workspace, ensuring that all necessary furniture,
equipment and supplies are in place
• informing the departmental staff of the expected arrival of new
workers, including their names, positions, reporting relationships
and so on
• assigning team members to welcome and assist the new staff
members
• preparation and availability of induction materials, such as
the printed code of conduct, health and safety directives and
equipment instruction manuals.
The first day is particularly important because first impressions
endure for a long time. The new arrivals should be welcomed and
helped to get settled. They should be given a tour of the ir work area
and facilities, such as the washroom, cafeteria and emergency exits.
Other first-day activities include:
• meetings with key persons, such as immediate supervisors and
subordinates
• discussion of the terms and conditions of employment, including
shift timing, casual, sick and vacation leave, the quantity and
quality of output that are required
..
8 8.3 Induction and depl9yment
• explanation of the organisatio n's culture, such as values and
ethics, corporate social responsibility, dress codes and personnel
practices.
Did you know ... ?
lI
An effective induction
programme has great positive
impact on the long-term
performance of an employee.
I
Other induction activities might be spread over a few days, including:
• provision of an overview of the organisation, its history, structure,
operations and strategic plan (e.g. its vision, mission and goals)
• clarification of their role in the achievement of organisational
objectives and the functions and responsibilities of the role
• identification of the inductees' training and developmental needs
and explanation of how these will be fulfilled
• provision of initial job-specific training
• informing inductees about safety measures and standard operating
procedures.
Exam tip
You should be able to give
reasons for the redeployment
of staff, such as overstaffing,
understaffing and disciplinary
action.
Causes of overstaffing
• A decrease in the demand
for the organisation's
product
• The mechanisation or
automation of operations,
thereby red ucing the need
for human labour
• The introduction of
techniques that increase
the efficiency of prod~ction
• Management's failure
to properly assess the
• staffing needs of the
organisation
Causes of understaffing
• Increase in demand for the
organisation's products
• Reduction in the number
of workers, for example, if
persons quit or retire
• Unavailability of workers,
for example, if the job
requires skills that are in
short supply
• Poor management
Deployment
Human resource (HR) managers are responsible for ensuring that
there are the right number of workers with the necessa1y knowledge
and skills to achieve tpe strategic goals of the organisation.
Deployment is the process of allocating workers to positions in an
organisation. Effective deployment involves finding the best possible
match between the requirements of a job and the abilities of a
worker. The HR manager must identify:
• the requirements of each job and the number of persons required
to achieve the desired o utcomes
• the qualificatio ns, skills and experience of each employee and
their limitations
• the goals and aspiratio ns of the workers
• the way in which work assignments are structured, such as
teamwork
• variatio ns in staff requirements as a result of fluctuatio ns in
demand for the organisation's products and services.
Effective deployment improves worker performance, as employees
are assigned jobs for which they are best suited. It reduces costs, such
as work sto ppage due to inj ury. It supports the ongoing improvement
of work practices, thereby increasing efficiency. It can also be used to
deal with issues such as lack of punctuality, absenteeism and interstaff conflict.
One major challenge for the HR department is the calculatio n of
appropriate staff levels. This must be done to prevent overstaffi ng
and understaffing. Overstaffing occurs when there are too many
workers in an organisation. Overstaffing results in higher o perating
costs and lower profitability. Understaffing occurs when there are
insufficient workers for the organisation's workload. U nderstaffing
can result in stress, worker dissatisfaction and unsafe work practices.
8.4 Appraisal and trair1.
HR solutlons to overstafflng
Rede ployment: Transfer of staff to
another department or branch where
there is a need for additional workers
Rescheduling: Having employees
work for fewer hours
Termination: Workers may be
dismissed or offered early retirement
'"'
HR solutlons to understafflng
Redeployment: Transfer of workers
from other departments
Recruitment: The hiring of new
employees, including temporary
workers
Training: Helping workers improve
productivity by teaching them more
efficient and effective work methods,
including how to use new equipment
Table 8.3.1 HR solulions lo overstaffing and understaffing
Test yourself
Key points
Induction is the
process of introducing
new employees in the
organisation, providing
guidance and support
to adjust or acclimatise
to their jobs and working
environment.
Deployment is the
· process of allocating
workers to positions in an
organisation.
1 List THREE effective induction programmes.
2 Induction is not a one-day event. Rather it spans a period of time and
can be divided into two distinct stages.
a State the TWO types of inductions.
b Explain THREE differences between the two.
c List THREE of the activities that take place during each stage of
induction.
3 List THREE reasons for overstaffing in a company.
4 Discuss how deployment can be used to help with each of the following:
a Overstaffing
b Understaffing
c Disciplinary issues
5 Define these terms:
a Redeployment
b Rescheduling
c Termination
8.4 Appraisal and training
OBJECTIVES
By the end of this u nit you
should be able to describe
the role and function of the
human resou rces o ffice in
appraisal and training.
Appraisal
The basic purpose of appraisal is to review the worker's performance
against preset goals. It is also a two-way process, as it gives the
employee the opportunity to discuss the job content and talk about
future career plans.
Performance appraisal is a continuous cycle rather than an isolated
event (Figure 8.4.1). The human resources (HR) department is
usually responsible for the development of the appraisal form (Figure
8.4.2). T he relevant departmental managers-should have an input
into the design of the form.
-
8 8 .4 Appraisal and training
I
Performance
appraisal
process
Figure 8 .4.1 Performance appraisal process
Appraisal
Employee _ _ _ __ _
Dept _ _ _ __ _ __
Supervisor _ _ _ _ _ _ __
Date of hire _ __ _ __
Date of review _ _ _ __
Date of last review _ _ _ _ __
Rating system
Exceptional
Exceeds requirements
Rating
Item
Meets requirements
Needs improvement
Comment
Quality of work
Quantity o f work
Timeliness
Attendance
Exercise of good judgement
Job knowledge and expertise
Communication skills
Dependability
Management of responsibilities
Overall performance rating _ _ __ __
Activity
Comments - - --
- - - -- -- - -- -- -- - --
Areas of strength
Each element in the appraisal
form should be:
• measurable
• achievable
• understandable
• verifiable
• equitable.
Areas for Improvem ent
Oate _ _ __ __ __
Supervisor's signature
Employee's comments
1 Explain what each of these
terms mean.
2 Briefly explain the
importance of each
element.
Date _ _ __ _ __
Employee's signature
Figure 8.4.2 Sample appraisal form
~ - -- -- -
8.4 Appraisal and training 8
Performance appraisal steps
1 The manager and employee meet at the beginning of the
appraisal period to review past performance and plan for future
expectation,s, in keeping with the employee's job description,
responsibilities and goa ls.
2 The employee works towards the goals. There is ongoing
discussion with and feedback from the manager. This feedback,
also known as progress review, enables the manager to:
• assess the employee's progress
• discuss with the employee his or her performance in comparison
with the established goals
• hear from the employee about the factors affecting
performance
• identify ways in which the employee may improve, providing
help if needed
• adjust the performance goals, if necessary.
Feedback might also be obtained from the employee's peers,
customers and subordinates.
3 At the end of the appraisal period the manager evaluates the
employee's performance:
4 The outcome of the appraisal is discussed with the employee and
presented to management.
5 According to the results of the appraisal, the worker may be:
• rewarded, for example, pay increase, bonus, promotion
• reprimanded
• given a different job
• trained
• demoted
• d ismissed.
llii,ffl
I
Workers tend to stay with an
organisation that includes
relevant training in the
performance management
plan. Loyalty usually
increases when employees
recognise that they are being
helped to develop skills that
improve their job performance
and enhance their careers.
Appraisals are.effective for managing performance' because they:
• help to clarify standards, goals and responsibilities
• serve to identify and correct problems
• enable management to positively influence employee attitude and
behaviour
• provide a basis for decisions about rewards, such as promotions,
salary increases and other incentives
• allow managers to identify the level and type of training the staff needs
• improve communication between supervisors or managers and
subo rc;linates
• recognise the woi·k efforts of employees.
Training
One of the results of performance appraisal is that managers and
employees are able to recognise the training, development or
coaching needs of each individual. These data can then be analysed
to determi~,e the training needs of the entire organisation.
8 8.4 Appraisal and training
Training can take many forms:
• Induction ( discussed in Unit 8.3)
• Lectures, seminars and workshops: Groups of employees are
trained by qualified persons
• Mentoring and coaching: A highly rated employee teaches skills
to other employees, either one-on-one or in groups
• Online training: Employees use the internet to access training
materials, information and activities, such as games and quizzes
• Self-study: The employees are provided with the relevant printed
materials and they study independently
• . Audiovisual training: Employees are taught via audio or videorecordings
• Hands-on training: The method of doing a task is demonstrated
and taught, then the workers practise under supervision
• Simulation: Machinery or computers are used to represent reallife work situations
·n-aining is important because it:
• helps new employees develop the skills they need to fulfil their
responsibilities
• enables existing workers to improve their performance
• prepares workers for advancement in the organisation
• keeps workers up to date with changes in technology
• increases productivity and profitability
• builds team spirit and cooperation
• increases innovation
• helps to build a positive organisational culture
• improves the health and safety of employees.
Exam tip
You should be able to
discuss how appraisal and
training are beneficial to
the employee and to the
business.
-
-
Workshops
Figure 8.4.3 Some methods of training
Mentoring
employees
8.5 Staff welfare 8
Appraisal should be part of a systematic process of performance
management that includes:
Key points
The basic purpose of
appraisal is to review the
worker's performance
against preset goals.
Performance appraisal is
a continuous cycle rather
than an isolated event.
One of the results of
performance appraisal
is that managers and
employees are able to
recognise the training,
development or coaching
needs of each individual.
Training can take many
forms, including:
• · mentoring
• coaching
• lectures
• workshops
• simulations.
• job analysis and description
• establishing performance goals and standards with measurable
outcomes
• ranking of each job responsibility and goal in order of importance
• monitoring employees using ongoing observations and measurements
• providing ongoing constructive feedback about employee performance
• conducting· a periodic performance appraisal
• providing training/coaching if the employee is not meeting expectations
• maintaining a record of performance results
• establishing a system of motivation and rewards.
Test yourself
1 a What is 'performance appraisal'?
b Use the appraisal form in Figure 8.4.2 to appraise yourself as a
student or member of a club.
c Discuss THREE ways in which appraisals can be effective tools in
managing HR.
d List the main steps fn the performance appraisal process.
2 a Explain the importance of training for the following.
i
New employees
ii Existing workers
b Describe THREE training methods.
8.5 Staff welfare
OBJECTIVES
By the end of this unit you
should be able to describe
the role and function of the
human resources office in
staff welfare.
Staff welfare
Staff welfare involves all the activities associated with producing
an environment that protects, promotes and supports the health
and well-being of the workers in an organisation. Welfare involves
physical, mental and social well-being. An important part of staff
welfare is the creatio n of a working environment that is free·from
fear, threat or intimidation. This will enable workers to communicate
openly about their concerns or difficulties. The human resources
(HR) department must liaise with all other departments to ensure
the best possible work conditions for employees.
8 8.5 Staff welfare
Amenities
Amenities are facilities and se1v ices that make working conditions
more comfortable and enjoyable. The labo ur laws of many countries
- specify the minimum amenities that employers must provide,
particularly with regard to. drinking water, toilet and washroom
facilities. Other amenities might include:
• changing rooms
• cafeteria/lunchroo m
• recreational, sporting or physical fitness facilities
• day-care facilities for wo rking parents.
Exam tip
Staff welfare is not the same
as ergonomics. Be sure you
learn the difference.
Safe work conditions
Poor working conditions, including high stress levels, can result
in accidents, injuries and ill healtQ. Workers become sick or
occupatio nally disabled less frequently when employers create
healthy, safe working conditions. E mployers are responsible
for providing a safe and healthy working environment for their
employees. This includes the elimination of risk and accident factors
and training of workers in safe practices (also see Ergonomics in U nit
1.9). Some measures to create safe wo rking environments include:
• removal or reduction of health hazards
• prevention of overcrowding
• the use of personal protective equipment
• provision of safety guards on equipment
• establishment of guidelines and provision of training in the
handling of hazardous materials
• safe access to and outlet from the workplace, including emergency
exits
• information, instructions, training and supeivision about codes of
practice for the specific industry or occupation
• providing an adequate·number of persons trained in first aid
• well-stocked first-aid boxes or cupboards.
"
Physical, emotional and mental well-being
Figure 8.5.1 Workers sometimes
need professional c.ounselling
I
There is a close correlation between employee health and work
performance. If staff problems are no t solved, the organisation will
be adversely affected. The HR department advises management
o n methods of providing for .the well-being of employees. These
inclucje:
·
• arrangements for pre-employment and periodic medical
examinations
• access to health care facilities
• holding of worksho ps that focus on wellness and safety
• provision for employees ·to receive temporary allowances if they
become pregnant, ill, unfit for work o r unemployed
• counselling se1v ices, with the assurance of strict confidentiality.
8.5 Staff welfare 8
Activity
Research and prepare a
staff welfare policy for an
organisation of your choice,
using these subheadings:
• Amenities
• Safe work conditions
• Physical, emotional and
mental well-being
• Working hours and rest
periods
• Non-discrimination, gender
equality, equal treatment
The HR department is also responsible for providing information to
management and staff on a wide range of issues, including:
• legislation relating to staff welfare issues
• statutory benefits programmes such as National Insurance and
unemployment relief
• support groups, such as the HIV/AIDS Hotline and Alcoholics
Anonymous.
Working hours and rest periods
Many countries have legislation ·concerning how long employees may
work per day arid when they are entitled to a break. This is important
because--employees must have the opportunity to replenish their
physical and 'mental energy. Generally employees should not work
more than five hours without a break. On average~a normal workii;ig
week consists of 40 to 45 hours (8 to 9 hours per day), and overtime
pay must be given if this limit is exceeded.
Non-discrimination, gender equality, equal treatment
It is important for workers to be confident that they will not be
discriminated against or harassed on the basis of age, religion,
ethnicity, gender, sexual orientation, marital status and so on.
Employers concerned about equal treatment also make provisions
for the hire of physically challenged workers where possible,
including facilitating ease of access to the workspace and amenities
(Figure 8.5.2).
Did you know ... ?
Most Caribbean countries do
not have laws to ensure equal
access to employment for
disabled persons.
Figure 8.5.2 Staff welfare includes non-discrimination in the workplace
-
8 8.6 Disciplinary procedures
,.
("
(
("
("
('
Key points
·staff welfare involves all
the activities associated
with producing an
environment that protects,
promotes and supports
the health and wellbeing of the workers in
an organisation. Some
aspects of staff welfare
include:
• provision of amenities
• safe working conditions
• physical, emotional and
mental well-being
• set working hours and
rest periods
• non-discrimination,
gender equality, equal
treatment.
Test yourself
1 Safe working conditions are important to the effective operations of
an organisation. List FIVE measures needed to create a safe working
environment.
2 An effective staff welfare programme requires the investment of time,
money and resources.
a State THREE ways in which the HR department can promote staff
welfare.
b Identify FOUR features of a good staff welfare programme.
c State THREE ways in which the business benefits from its investment
in staff welfare.
3 Religion is one basis on which discrimination can occur. State THREE
others.
I
8.6 Disciplinary procedures
.OBJECTIVES
By the end of this unit you
should be able to describe
the role and function of the
human resources office in
d isciplinary proceedings.
At times action must be taken against workers who do not meet the
organisation's standards of performance. What actions de you think
might be taken for each of the following offences?
• Habitual lateness
• Absenteeism
• Drunkenness on the job
• Drug abuse
• Fighting
• Theft
• Harassment of co-workers
• Wilful destruction of company property
Disciplinary procedures are a written set of steps that identify
the actions an employer will take when they consider that there
have been problems with an employee's conduct or performance.
Employers should have a written disciplinary policy that outlines:
• the disciplinary procedure
• what performance or conduct might result in disciplinary action
• the actions that may be taken
• provisions for appeal.
8.6 Disciplinary procedures 8
N1 M1H,Mtiiill 7
1
The disciplinary procedure is
a legally enforceable contract
between the employer and
employee.
J
Conduct that can result
in informal action
• Ineffective use of time on
the job
• Improper or careless use
of equipment
• Absenteeism or
unpunctuality
• Bullying
• Indecent conduct
Conduct that can result
in immediate formal
disciplinary action
• Possession or use of
alcohol on premises
• Buying, selling, using,
possessing or being under
the i_nfluence of any illegal
drugs
• Theft' or fraud
• Fighting on the premises
• Possession of
unauthorised weapons on
the premises
• Wilful violation of safety
rules
• Deliberate damage to
property
• Negligence that causes
an unacceptable loss,
damage or injury
• Gross insubordination
• Harassment or
discrimination on the
grounds of race, religion,
sex, disability, age
Exam tip .
-
You should be able to
discuss how both the
business and the employee
benefit from having a clearly
stated disciplinary procedure.
The disciplinary policy sho uld be made available to all employees.
Some countries have laws that set out disciplinary procedures. If
an employer fires an employee witho ut following the disciplinary
procedures, the employee may claim for unfa ir dismissal.
Where there are minor cases of misconduct or poo r performance,
the employer may choose not to invoke the formal disciplinary
procedures. Instead, the case may be handled with informal advice,
coaching and support or reprimand. If poor performance is caused
by a lack of requisite knowledge or skills, training may be provided.
The goal is to help workers to improve. A review of the worker's
performance may be done within a specified period of time.
Failure to improve, or gross misconduct or negligence can result in
the employer taking formal disciplina1y action. Normally, disciplinary
decisions are not made by the same person who has investigated the
complaint.
Generally, formal disciplinaiy procedures involve the following steps:
1 The manager must find out the full facts of the case, arranging for
an investigation if necessa1y. Usually the investigatio n is not done
by the person who will be making tha disciplina1y decisions.
2 The employee is given a written statement identifying the specific
problems concerning conduct or performance and asking them
to meet to discuss t~ issue. The meeting must be arranged at a
reasonable time and place. The employee must be given sufficient
advance notice (usually at least seven working days).
3 The meeting must be held and the employee must be given the .
opportunity to make a respo nse. The employee has the right to
have a work colleague or trade union representative present at
the meeting. It is advisable to have a senior member of the human
resources (HR) department present at disciplinary hearings.
4 After the meeting, the employer must no tify the employee in
writing about the decision and the right to' appeal. This shoulc;I be
done as early as possible, for example, within three working days.
5 T he employee must notify the employer if they choose to appeal.
6 The employer must arrange an appea l hearing, preferably in the
presence of at least one more senio r manager.
7 The employee is informed of the final decisio n within a reasonable
period of time .
Some organisations may give written warnings before dismissal. In
the first written warning the employee is informed of the issue, the
required improvement and the time period within which the problem
should be corrected. If there is not satisfactory improvement, a
second or fi nal written warning may be given. These written warnings
may be removed from the employee's file if there is satisfactory
performance over a long period (usually 12 to 24 months). Continued
failure to meet required standards may result in suspension,
demotion or dismissal.
I
8 8.7 The human resource clerk
r
Key points
Disciplinary procedures
are a written set of steps
that identify the actions an
employer will take when
they consider that there
have been problems with
an employee's conduct or
performance.
Test yourself
1 What are 'disciplinary procedures'?
2 State THREE conditions under which formal disciplinary action can be
taken.
3 Sometimes an employer can choose other alternatives to the formal
disciplinary procedures.
a State TWO offences that might result in informal disciplinary action.
b State THREE informal disciplinary methods.
4 List the steps to be followed during a formal disciplinary proceeding.
Where there are minor
cases of misconduct or
poor performance, the
employer may choose
to handle the issue
informally, by using
advice, training, coaching
and support or reprimand.
8. 7 The human resource clerk
OBJECTIVES
By the end of this unit
you should be able to
identify the duties and
resp onsibilities of a clerk in
the human resources office
and to prepare records in a
human resources office.
A clerk in the human resources (HR) department is required to
assist with the functions of the human resource management (HRM)
office. This involves performing the diverse range of office functions
that you have already learned, including:
• pre paring various forms of business communication
• handling mail
• routing telephone calls and taking messages
• managing appointments
• organising meetings.
Additionally, the HR clerk must perform a number of specialised
functions, including:
• keeping personnel records
• pre paring for interviews
• attending to staff welfare
• assisting with the functions of the HRM office.
In fulfill ing these duties, the HR clerk will have to:
• prepare, organise and interpret HR records
• use the telephone, fax o r computer to communicate with persons
and de partments throughout the organisation
• prepare documents relating to training courses and engagement of
staff
• keep information confidential.
8.7 The human resource clerk 8
/
Did you know ... ?
i
A contract is usually a written
document. However, its terms
may also come from other
sources, such as:
• an oral agreement
• the job description and job
specification (see Unit 8.1)
• the original job
advertisement
• an employee handbook
• a legal requirement, such as
the minimum wage law
• a collective agreement
negotiated by a trade union
o r staff association
• information an employee
provides, such as academic
qualifications or work
experience.
If an employee gave false
information in a job application,
resume or inteNiew, this may
be considered a breach of
I
contract.
)
Keeping personnel records
The HR cle rk is responsible for the preparation, organisation,
storage and retrieval of personnel records for the entire organisation.
This can be done manually or on a computer database. Unit 4 gives
a detailed treatment of the processes, duties and responsibilities
involved in records management. Table 8.7.1 summarises the main
records maintained by the HR department.
The records maintained by the HR department can be used by:
• the HR department to perform functions such as the management
of salaries and benefits, provision of training and administratio n of
staff welfare
• the employee's manager or supervisor, to help in managing
and guiding performance and career enhancement (however,
confidential information, such as medical records and family data,
may not be accessed witho ut the employee's express permission)
• the emp loyee, who can request that informatio n, such as salary
and length of service, is sent to agencies such as banks, credit
unions or insurance companies
• govern mental autho rities, such as the Ministry of Labour,
National Insurance Board and Board of Inland Revenue, who
may require information concerning terms of employment such as
salaries and benefits.
Record
Description
Contract of employment
A legally binding agreement between employer and employee. It is created when there is an
offer of employment, acceptance of the offer and an expression of terms of employment.
SeNice record
An official summary of an individual's employment history with the organisation. It contains
information such as position, status (temporary, permanent, acting and so on), salary
increases, transfers, commendations, warnings and promotions. The data are arranged in
chronological order and are usually updated annually.
Personal history
This usually includes data such as the employee's name, nationality, marital status,
education and contact information (see Figure 8.7.1).
Leave record
This is used to document an employee's absence from work. It shows the dates and type of
leave taken, as well as whether supporting documents, such as medical certificates, were
submitted. Types of leave include:
• sick leave
• occasional or casual leave
• vacation
• maternity, paternity and adoption leave
• bereavement leave
• compensatory time off.
Appraisal form
(See Unit 8.4.)
Job specification and
description
(See Unit 8.1.)
Table a.7 .1 Main records for which the HR clerk is responsible
8 8.7 The human resource clerk
Preparing for interviews
The HR clerk prepares for interviews by:
• contacting candidates
• organising all necessary paperwork and suppUes
• booking the interview room
• organising any aptitude tests
• arranging refreshments.
On the day of the interview, the duties of the HR clerk can include:
• greeting candidates a nd ensuring they have somewhere to wait
• showing them to the interview room
• collecting a nd organising all the paperwork used in the inte1view
• notifying the successful candidate.
Attending to staff welfare
An HR employee who specialises in assisting workers is usually called
a s taff welfare officer. The staff welfare officer provides confidential
advice and assistance to staff on issues that influence performance
and well-being (see Unit 8.5 for more details). The HR or staff
welfare officer should carry out research in order to determine the
areas of need within the organisation.
, Attributes of an HR clerk
Activity
You have already learned
the meaning of the attributes
of confidentiality, patience
and tact. Explain why the HR
clerk needs each of these
attributes.
You have already learned the desirable attributes of office personnel.
An HR clerk must have the following qualities:
• confide ntiality
• patience
• tact.
Please review Unit 1.12 to ensure that you understand each of these
attributes.
A person specification for an HR clerk might also include the
following:
• knowledge of the manpower requirements of all departments
• maintaining confidentiality in dealing with personnel records
• th~ ability to organise well, including strong time management
skills
• addresses issues objectively and candidly
• able to adapt quickly to changing circumstances
• excellent interpersonal skills
• treats others with dignity and respect
• always maintains the highest standards of ethical conduct
• ability to be balanced and fair when dealing with conflicts between
management and staff.
D
8.7 The human resource clerk 8
Personal history form
1 Family name
Given names
Title
2 Gender
Mr/ Mrs / Ms
M
4 Natlonallty
3 Date of birth (dd/mm/yy)
B Marital status
Daytime telephone
Single
Cell
Separated
Facsimile
Email
Divorced
12 Education
a University
Name of university
Place
Country
□
□
□
□
9 Number of dependants
Married
Widow(er)
Attended from/to
Mo/Yr
F
6 Mailing address (if different)
5 Residentlal address
7 Contact information:
□
Mo/Yr
□
□
10 National insurance no.
11 Income tax file
Degrees and academic
distinctions obtained
Main course of study
b Other training Including professional qualifications or specialised training and part-time study
Name of school
Place
Country
Attended from/to
Qualifications obtained
Mo/Yr
Main course of study
Mo/Yr
13 Previous employment
From
To
Gross annual
salary
Name and address of employer
Type of business
Title of post
l'leason for leaving
Description of duties performed
14 References Please give details of three people, not related to you, who are familiar with your working experience, working style, qualifications, attitude
and so on, and whom we may contact at any lime, preferably your direct supervisors.
Full name/Position/Relationship
Full address
Emall and telephone contacts
Figure 8.7 .1 Personal history form
Activity
Activity
Research the layout of a work
contract. Prepare a contract
for an HR clerk for your
school.
The type and amount of leave allowed to a worker will vary from one
employer to another. Interview THREE different types of workers (e.g.
teacher, factory worker, office clerk) and find out the type and amount of
leave to which they are entitled.
I
8 8.8 Legislation affecting workers
Exam tip
Do not confuse the duties of
the HR clerk with those of the
HR manager.
Test yourself
1 a Identify the duties and responsibilities of a clerk in the HR office.
2
Key points
Duties and responsibilities
of an HR clerk in the HR
office:
• maintain database of
personnel records
• prepare for interviews
• attend to staff welfare
• assist with the functions
of the HRM office.
Attributes of an HR clerk:
3
4
5
6
b Discuss the importance of each of the following attributes for a clerk
in the HR department.
i Confidentiality
ii Tact
iii Patience
State what data are contained in each of the following kinds of records:
a Personal history
b Service
c Appraisal
Describe THREE ways in which the personnel records kept by the HR
department might be used by other departments.
Create and complete a form to be used by the HR manager to collect
personal data for the HR clerk.
Why is it necessary for the HR department to keep leave records?
Data from records kept in the HR department can be requested by
external organisations. List THREE organisations that might request data
from the HR department.
• confidentiality
• patience
• tact.
'I~•
. 8.8 Legislation affecting workers
OBJECTIVES
By the end of this unit you
should be able to identify
the benefits of legislation
related to workers' welfare.
Workers should have safe, healthy and fair working conditions. The
governments of most countries have enacted legislation to govern
employer/employee relations. Employers, employees and persons
preparing for employment should familiarise themselves with the
statutory provisions that affect workers in their country.
Statutory provisions for employee protection
Table 8.8.1 shows some of the laws concerning workers' welfare that
have been enacted in different Caribbean countries. As is shown,
the re is legislation to govern a wide range of work-related issues.
CARICOM has also established model labour laws governing:
• Equality of Opportunity and Treatment in Employment and
Occupation
• Occupational Safety and H ealth and the Working Environment
• Registration Status and Recognition of Trade Unions and
Employers' Organisations
• Termination of Employment.
D
8.8 Legislation a ffecting workers 8
Leglslatlon
Country
Antigua and Barbuda
Industrial Court Act; Labour Commissioner Act: Workmen's Compensation Act; Labour Code
Act; Workmen's Compensation (Amendment) Act, 1994
Barbados
Domestic Employees Act; Accidents and Occupational Diseases (Notification) Act; Recruiting of
Workers Act; Protection of Wages Act; Severance Payments Act; Trade Disputes (Arbitration and
Enquiry) Act
Belize
Factories Act; International Labour Organization Conventions Act; Labour Act;
Protection Against Sexual Harassment Act; Public Safety Act
Dominica
Apprentices Act; Employment and Training Act; Employment o f Children (Prohibition) Act;
Employment Safety Act; Labour Contracts Act; Labour Standards Act; Shop Hours Act
Grenada
Employment Act, 1999; Labour Relations Act, 1~99; Labour Relations (Amendment) Act, 2003
Guyana
Equal Rights Act, 1990; Holidays with Pay Act; Occupational Safety and Health Act, 1997;
Prevention of Discrimination Act, 1997; Trade Union Recognition Act; Wages Councils Act
Jamaica
Employment Agencies Regulation Act; Employment (Equal Pay for Men and Women) Act;
Foreign Nationals and Commonwealth Citizens (Employment) Act; Labour Relations and
Industrial Disputes Act
St Kitts and Nevis
Labour Ordinance, 1966; Protection of Employment Act, 1986; Protection of Wages Ordinance,
1967; Protection of Wages (Amendment) Act, 1972; Social Security (Amendment) Act, 1988;
Trade Unions Act
St Lucia
Contracts of Service Act; Employees (Occupational Health and Safety) Act; Equality of
Opportunity and Treatment in Employment and Occupation Act
St Vincent and the
Grenadines
Equal Pay Act 1994; National Insurance (Employment Injury Benefits) Regulations, 1997; Trade
Union Rules; Wages Regulations
Trinidad and Tobago
Industrial Relations Act; Occupational Safety and Health Act: Employment Injury and Disabilities
Benefit; Retrenchment and Severance Benefit Act; Minimum Wages Act; Children (Amendment)
Act, 2000
Table 8.8.1 Examples of legislation affecting workers
T hree pieces of legislation that deserve special mention are the
Factories Act, Workmen's Compensation Act and Occupational
Safety and Health Act. The names of these laws may vary from one
country to another, but the principles remain the same.
Factories Act
T he Factories Act regulates working conditions to ensure the safety
of workers, including:
• safe means of approach or access to and exit from any factory or
machinery
• life-saving and first-aid appliances
• proper ventilation
• sanitation, including the provision of lavatory accommodation,
having regard to the number of workers employed
• number of hours per week to be worked, the period of
employment in any one day and the intervals for rest and meals.
8 8.8 Legislation affecting workers
Workmen's Compensation Act
The Workmen's Compensation Act requires compensation to be
paid to workers who suffer incapacity, injury or death by accident on
the job, or occupational disease. It also requires employers to insure
themselves against workmen's compensation claims.
Occupational Safety and Health Act
Did you know ... ?
l
The ILO maintains a
comprehensive database
of labour laws in different
Caribbean countries at www.
ilocarib. org. tt/projects/cariblex
Activity
Research and summarise
the grievance procedures for
teachers in your country.
ILO
The activities of the ILO are
governed by the principle that
'universal and lasting peace
can be accomplished only if
it is based on social justice'.
This organisation gives equal
voice to representatives of
government, employers and
workers in the formulation of
its policies.
The main imperatives of the
ILO:
• The formulation and
adoption of international
labour standards to
be implemented by its
member countries
• The provision o f technical
assistance to developing
countries for:
- human resource
development
- vocational training
and management
development
(cont.)
T he Occupational Safety and H ealth Act (OSHA) provides laws
designed to ensure that workplaces are as safe as possible. It
focuses on setting standards and conducting inspections to ensure
that employers are providing a safe and healthy workplace. OSHA
standards make it the responsibility of employers to:
• become familiar and comply with the standards that apply to their
activities
• establish policies and practices to protect workers on the job
• eliminate hazardous conditions to the extent possible
• ensure that employees have and use personal protective
equipment when required.
International Labour Organization conventions
The International Labour Organization (ILO) was established by the
United Nations in 1919. The ILO sets international labour standards
that consist of conventions and recommendations. A convention is
a legally binding international agreement. A country that ratifies,
or signs in agreement to a convention, is under obligation to fulfil
it. A 1·ecommendation is a guideline on how a convention may be
implemented.
Some conventions that have been established by the ILO are:
• Right to Organise and Collective Bargaining Convention, 1949:
Protects workers from discrimination on the basis of union
involvement and contains measures to promote collective bargaining
• Minimum Age Convention, 1973: Establishes a general minimum
admission to employment age of 15 years (13 years for light work)
• Equal Remuneration Convention, 1951: Requires the provision
of equal pay.and benefits for work of equal value, regardless of
whether a worker is male or female
• Discrimination (Employment and Occupation) Convention,
1958: Requires the establishment of a national policy to eliminate
discrimination on the basis of race, colour, sex, religion, political
opinion, national extraction or social origin
• Termination of Employment Convention, 1982: Requires
valid reasons for termination; provides for workers to defend
themselves against allegations leading to dismissal; requires the
provision of unemployment insurance and severance pay
(Source: ILO (2009) Rules ofthe Gam e: A brief introduction to International Labour
Standards, International Labour Organization, Switzerland)
8.9 Employee turnover 8
Collective agreements
- employment planning
and provision
A collective agreement is a legally binding agreement between an
employer and the trade unio n or association that represents the
workers. Collective agreements set o ut terms and conditions, such as:
• wages, salaries and other compensations
• hours of work
• working conditions
• grievance procedures.
- development of social
institutions, such as
labour relations and rural
development
- improvements in living
and working conditions,
such as social security
and occupational health
and safety
Grievance procedures are the established steps by which an employee
can express complaints and seek solutions. They are usually prepared
through consultation and negotiation between the employer and the
trade union.
• Research, education,
training and publication on
labour issues
Exam tip
Ensure that you understand
that the words statutory
provisions refer to legislation
or government regulations.
'
I
Generally, statutory provisio ns protect the rights of workers to:
• receive a written statement of their terms and conditions of
employment
• join trade un ions that represent workers, independent of the
influence of government or employers
• be pro tected from all forms of forced labour
• receive equal pay for doing like or similar work
• be safe from victimisation, discrimination or harassment
• be protected from unfa ir dismissal.
Test yourself
1 a What is the purpose of the International Labour Organization (ILO)?
Key points
Legislation and guidelines
related to workers' welfare
are outlined in:
• statutory provisions for
employee protection
• ILO conventions
(Factories Act protective clothing
and gear, workmen's
compensation)
• Occupational Safety and
Health Act (OSHA)
• collective agreements.
b How does the ILO protect workers?
c State the names of THREE ILO conventions that protect the rights of
workers.
d Summarise the purpose of each of the conventions you named in (c).
2 List TWO provisions of each of the following pieces of legislation:
a Factories Act
b Occupational Safety and Health Act
c Workmen 's Compensation Act
3 a What is a 'collec tive agreement'?
b State THREE working conditions that are established by a collective
agreement.
4 Explain TWO ways in which the HR department can help ensure that
workers' rights are protected.
8.9 Employee turnover
OBJECTIVES
By the end of this unit you
should be able to describe
th e factors that contribute
to employee turnover in an
organisation.
Employee turnover is the rate at which employees voluntarily leave
an o rganisation. E mployee turnover is different from layoff or
retrenchment, which is when employment is terminated because
of management's decision. Sometimes it is beneficial for some
employees to leave an enterprise, for example, when an employee
is underproductive or difficult to manage, or if there is overstaffing.
8 8.9 Employee turnover
Activity
Interview someone who left
a job. List the factors that
influenced their decision.
However, turnover will be a disadvantage to an organisation if:
• there is a shortage of labour
• replacement is expensive, for example, paying for advertising,
recruitment services and training the new worker
• the organisation has spent considerable resources training the
employee
• the departing worker takes valuable knowledge and skills to a
competitor
• customers know and depend on the employee.
There are several different formulas for calculating employee turnover rate.
One easy to use formula is:
M
on
thl t
t
Number of separations during the month
Y urnover ra e = Average number of employees during the month X 1OO ·
J
Internal factors
Internal factors are factors within an organisation, over which
management can have some control.
Exam tip
Ensure that you can
discuss the causes
and consequences of
employee turnover. You
---,
should also be able to
make recommendations for
reducing turnover rates.
Activity
Look back at the list of fact9rs
you made for the previous
activity. What could the
company have done to retain
the employee?
Working conditions
Employees might choose to leave if there is an organisational
climate of mistrust, hostility or disrespect. There is usually a higher
level of turnover where there are high levels of noise, hazards or
stress, or if the work is monotonous. Employees usually remain with
organisations when there are favourable working conditions and the
work is stimulating, fun and exciting. Turnover rates are usually lower
where there are positive relationships among employees and between
workers and managers, with high levels of cooperation, collaboration
and teamwork. (Also see Unit 1.9 on ergonomics and Unit 8.5 on
staff welfare.)
Low salary
An employee may leave an organisation if the compensation package
is not as attractive as one offered elsewhere. The amount of salary
paid is an important consideration. However, other aspects of
compensation also affect turnover. These include housing, transport,
retirement benefits and pension plans, health insurance, employee
discounts, paid vacation and sick leave, bonuses, profit-sharing and
other performance incentives, dependent care and so on.
Lack of job satisfaction
Job satisfaction refers to the individual's general attitude towards
the job. It is influenced by a large number of factors, including the
extent to which the job matches the individual's disposition, abilities
8.9 Employee turnover 8
and interests. For example, a shy person whose job entails a great
deal of interaction with the public might experience low levels of job
satisfaction. Job satisfaction is also influenced by the level of respect,
recognition and appreciation that is shown by employers. Therefore,
employers can help improve job satisfaction by recognising work
efforts, for example, through employee of the month awards.
Lack of training opportunities
Employees are more likely to remain with an organisation that
provides ongoing training and opportunities to upgrade their skills.
Loyalty increases when workers perceive an organisation as being
willing to invest money for staff training and development.
Limited possibility for advancement
Workers may opt to leave an organisation if there are limited
opportunities for advancement. For example, women may observe
that the firm does not promote women to positions in the higher
levels of management. Therefore, they may choose to accept
employment in another organisation or industry where that 'glass
ceiling' does not exist.
Redundancy
Fewer workers might be needed because of changes in the workplace,
such as the introduction of automated systems. Some may choose to
leave because they feel that their time, knowledge and skills are being
wasted.
External factors
External factors exist outside the organisation and are normally
outside management's range of control.
·
State of the economy
In times of economic recession, there is usually concern about
job security. Workers tend to remain in less satisfactory working
conditions because they are not sure that they will get long-term
employment elsewhere. In times of economic growth, there is usually
greater confidence in the job market; employees are more likely to
accept the risks associated with taking employment with another
organisation. On the other hand, organisations may have to resort
to severe cost-cutting strategies, such as reductions in wages and
benefits when there is a recession. If this is not handled properly,
cost-cutting may result in the loss of valuable employees. Some firms
have been able to retain employees during periods of economic
hardship by having open communication and consultation with staff.
For example, employees may opt to work shorter shifts or for fewer
days each week.
8 8.9 Employee turnover
Activity
Better opportunities
The loss of educated workers
because of migration 1s called
a 'brain drain'. Research the
extent to which your country
has experienced a brain
drain. What are its effects?
Employees may move to.organisations that they perceive as offering
better opportunities. Employees may be attract~d by higher salaries
and better compensation packages, more flexible working ho urs,
greater opportunities for advancement, and so on.
Key points
Employee turnover
'is the rate at which
employees voluntarily
leave an organisation.
Internal factors that
contribute to employee
turnover include:
1
• working conditions
• low salary
• lack of job satisfaction
• lack of training
opportunities
• redundancy.
External factors that
contribute to employee
turnover include:
• state of the economy
• better opportunities
• competition for job
placement
• migration
• globalisation.
D
Competition for job placement
There are some situations in which the supply of workers is so limited
that there is a great deal of competition among firms. For example,
in some countries there is a great demand for workers with higherlevel skills in information technology. Companies that actively recruit
workers from their competitors contribute to higher turnover rates.
Migration and globalisation
Some'workers leave because they have the opportunity to live in
another country. The free movement of labour within CARICOM
can result in higher employee turnover in some countries.
Globalisation is the ongoing integration of economic activities,
such as production and trade, throughout the world. People are
becoming increasingly aware of employment opportunities in other
countries. Some countries recruit workers from Caribbean countries.
For example, the US hires trained nurses and teachers to work in
understaffed hospitals and schools.
Test yourself
1 Define the term 'employee turnover'.
2 Explain the difference between employee turnover and retrenchment.
3 State THREE internal and THREE external factors that could initiate
employee turnover.
4 Under what conditions can a business benefit from high employee
turnover?
5 Discuss THREE negative effects high employee turnover can have on a
business.
A
End-of-unit multiple-choice - Unit 8
What term is used to describe the rate at which
workers voluntarily leave a job?
1
C B) Suggest THREE conditions that might contribute
What is the document called that lists the duties and
tasks that must be done in a specific work position?
A
to so many workers quitting their jobs at
Kambika's Fashions.
Job analysis
·:~
B Job description
C
Job specification
D Job advertisement
Discuss THREE negative effects that this high
rate can have on the business.
~ Suggest THREE strategies that might help the
/
manager to retain workers.
2
What is the allocation of workers to a task or
department called?
A Recruitment
B
Planning
C
Deployment
D Routing
3
What is the legislation called that seeks to protect
workers from injury?
A International Labour Organization convention
B
Occupational Safety and Health Act
C Workmen's Compensation Act
D
The HR office must maintain close communication
with all other departments in the org~nisation .
2
is essential to the effective functioning of the
<.~)
1 @)
1
-
Equality of Treatment Law
Which of the following is classified as staff turnover?
A
®
B
5
used by the HR department.
State THREE essential preparatory tasks that
List THREE essential attributes the clerk must
C Identify THREE pieces of equipment the HR
after an injury
clerk will be required to use, stating the purpose
A secretary retires on her sixtieth birthday
of each.
An accountant is fired for defmuding the
You have decided to use a panel interview. '{VJiat
business
are the main features of this interview method?
Which of the fol lowing is considered a form of onthe-job training?
A
State THREE training methods that might be
possess.
B A factory worker is reassigned to the stock room
D
List FIVE staff records tha~ are usually
maintained by the HR office.
you must perform.
A clerk accepts a better paying offer from
another company
C
business.
You work with the HR department and you are
preparing to conduct an interview to select a new HR
clerk.
2
J'
4
€) Discuss THR EE ways in wh i_ch the HR office
t(
E
c!" What is the purpose of a stress test?
'I.
r ii How might one be performed during the
\
Interviewing
\
./ .
.
?
1nterv1ew.
B Mentoring
3
C Appraising ,
rf ~ What is meant by 'staff welfare'?
D
/ l
Reprimanding
The welfare of the people is the ultimate law.
(B . List THREE statutory provisions that are
designed to ensure staff welfare.
Structured questions
ri·c\
t
State THREE amenities that should be provided
for the workers in any organisation.
1
The manager of Kambika's Fashions has observed
that many workers quit after a few months, although
their wages are higher than at competing garment
factories.
Describe FOUR ways in which the HR office can
promote staff welfare.
4
When Javon Noel started to work at Caribbean Food
Processors Ltd, he had to participate in a three-week
\ ~ uction programme.
\" ~ Define the term 'induction'.
B
Ii
\ {1
\)
~
.
6
Processors Ltd should perform.
programme.
Erianna Adams was recently hired by Aunt Jobe's
supermarket as an HR clerk. Within the first week,
she was asked to witness disciplinary procedures for
a cashier.
i;/
disciplinary procedures.
Staff appraisal is part of a continuous cycle of
( )?erformance management activities.
zt~......,
Describe FOUR typical first-day induction
activities.
Outline the essential steps in conducting
disciplinary procedures.
/1( E ) Identify THREE possible outcomes of the
'--
State THREE pre-arrival induction activities
that the HR department of Caribbean Food
~ Explain the importance of an effective induction
5
D
7. r B
Define the term 'appraisal'.
List the steps that are followed in conducting a
Q staff appraisal.
ZJ't) Identify THREE reasons why there should be
I(
regularly scheduled staff appraisals.
7( 0
Ztf,~
Define the term 'disciplinary procedures'.
?TJ B . Explain the difference between formal and
xplain THREE essential characteristics of an
effective appraisal form.
State THREE possible actions that an employer
might take if an employee has :
A positive appraisal
ii A negative appraisal
informal disciplinary action.
l~G) List FIVE actions that can result in formal
f
disciplinary procedures.
......,__
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.,._
OBJECTIVES
By the end of this unit you
should be able to describe
the· role and functions of the
accounts office.
An accounts office plays the very important role of keeping and
managing the financial records of a business. This section examines .
six important functions of the accounts office (see F igure 9.1.1).
Figure 9.1.1 The accounts office
F irst, it is important to give a brief overview of accounting.
Accounting is the process of recording, classifying and reporting and
interpreting the financial data.
We can see what this means in the case study example.
Case study Lavinia's work
Activity
1 What types of skills and
attributes do you think
that someone would need
to have to work in an
accounts office?
2 The case study showed
that an accounts clerk
might record figures for
purchases and sales. What
other figures can you think
of that an accounts office
might deal with?
Lavinia works for a company (the St Lucia Trading Company) that buys and
sells cloth in St Lucia ..Her job is to keep a record of the purchases and
sales made by the company. She records these data on her computer in
the purchases ledger and the sales ledger. The.term 'ledger' refers to books
in which accounting records were kept in the past. Today, many firms have
replaced the book entries with computer entries, but the principles are the
same.
Using her recording system she can classify the entries into different types.
For example, some Qf the sales her company makes are for cash payment
and some are for credit payment (e.g. to be paid for one month later).
On a regular basis, Lavinia is required to produce reports for managers,
setting out the current balances of individual accounts. Using these reports,
managers are able to see how much each of their clients owes and if any of
them are late in making payment.
Managers find the reports that Lavinia produces very helpful. They are able
to interpret (make sense of) what js happening in the business by referring
to the reports. For example, looking at monthly figures for sales they may be
able to see that the business is increasing its sales each month.
9 9.1 The role and functions of the accounts office
Types of financial records
To get a 2,ettei understanding of how an accounts office works, it
is first necessary to have an understanding of the basic eleme nt of
~ping accounts:- making l~ntries. Accounti~
rq_s are
kept in a number of books (ledgers). As we have seen already there
is a purchases and sales ledger. In addition, there are other types of
books for recording transactions that a business engages in.
A transaction is an exchange between two or more parties. For
example, the St Lucia Trading Company sells 100 reams of cloth to
the Grenada·Importing Company for $200.00. The exchange contains
two elements - the sale of the cloth and the payment for the cloth.
The goods are sold on a credit basis, so that Grenada Importing
Company becomes-a debtor until it pays for the goods in one month.
Lavinia would set out the information in the ledgers of the St Lucia
'Il·ading Company - first in the ledger showing the account of
Grenada Importing Company.
Grenada Importing Company
10 April
Sales
$200.00
She would also place the following entry into her sales ledger.
Sales account
10 April
itt1 M101H,
1
1
7
The term 'spreadsheet'
.
originally referred to a very
large sheet of ruled paper on
which accounting information
was written. Now the term is
more·commonly used to refer
to a computer program.
__,
Grenada
Importing
Company
$200.00
Lavinia makes ledger entries to show these transactions. Because
of.their shape, they are referred to as 'T accounts'.' You can see that
Lavinia has made two entries - one in her sales account and the other
in the account for Grenada Importing Company. We shall explain the
keeping of ledger accounts further in Unit 9.2.
The information outlined above provides a useful introductory
picture of the work that is carried out in the accounts office. Next we
will look at the range of activities carried out in the accounts office.
•
Preparation of payroll
Employees working for a company are described as being on the
payroll. One of the important functions of the accounting department
is to keep accurate records of wages and deductions from wages for
those on the payroll.
It is essential that details of pay are recorded accurately and that the
correct payments are made to employees. In many companies pay
will be paid directly into an employee's bank account by the payroll
department. However, for some employees, payment will be paid in
the form of a pay packet.
9.1 The role and functions of the accounts office 9
Employers are required by law to keep details of employees,
including their names and addresses. Payroll must also help the
government to administer income tax systems by deducting taxes
from wages. Payroll is also required to provide accurate records of
wages earned to employees and to make adjustments for sick pay
and other benefits, such as payment of pension and any form of
compulsory govern ment insurance scheme to be paid out of wages.
Many employees are paid a set monthly salary, which makes it easy
for the accounts department to calculate the wage to be paid.
This would simply be:
Gross pay - Income tax - National Insurance = Net pay
Gross pay is pay before tax deductions.
Income tax is paid to the government as a percentage on wages
earned.
National Insurance is a contribution that employees pay as a
percentage of wages and that will later help to pay for their state
pensio n and other benefits.
Net pay is the sum the employee receives after income tax and
National Insurance have been deducted from gross pay.
Other employees are paid according to the number of hours they
work. They might use a time card to clock in to work each day. They
push their card into a machine at the start and end of the day and it
records the number of ho urs worked (see F igure 9.1.2).
Time card
Name: E. Cumberpatch
Week no: 36
Ending: 10 September 2012
On
Off
0900
1200
Monday
0800
1200
1300
1800
9
Tuesday
0800
1200
1300
1900
10
Wednesday
0900
1200
1300
1800
8
Thursday
0800
1200
1300
1800
9
Friday
0800
1200
1300
1800
9
Saturday
On
Off
Total (hours)
3
Sunday
Total
48
Hours entered by: CMD
Checked by:
CKY
Figure 9.1.2 Time card
The data set out in the time sheet can then be entered into a wage
sheet by the accounts office. It would look like Figure 9.1.3.
I
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"':""
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9 9.1 The role and functions of the accounts office
Week36
Hours worked
Wage sheet
Name
Sat
Sun
Mon
Tue
Wed
Thu
Fri
Total
Rate
of
pay
($)
Basic
earnings
($)
Bonus
Gross
pay
($)
($)
E. Cumberpatch
3
9
10
8
9
9
48
5.00
240.00
20.00
260.00
A. Weekes
3
6
8
9
10
9
45
5.00
225.00
10.00
235.00
9
10
8
10
9
46
4.00
184.00
S. Rampaul
184.00
Total
679.00
Figure 9.1.3 Wage sheet
This information could then be presented in the form of a payroll sheet (see Figure 9.1.4).
Payroll sheet
Name
Week 36
a
b
C
d
e
f
Gross pay
Tax
deducted
National
Insurance
deducted
Total
deduction
Net pay($)
Employer's
National
Insurance
contribution
($)
($)
($)
($)
($)
E. Cumberpatch
260.00
26.00
19.50
45.$0
214.50
18.00
A. Weekes
235.00
23.50
17.50
41.00
194.00
16.00
S. Rampaul
184.00
18.40
14.50
32.90
151.10
13.00
679.00
67.90
51.50
119.40
559.60
47.00
Figure 9.1.4 Payroll sheet
You can check that your figures are accurate by doing the.following:
1 To check the figure for total deductions, add tax deducted and
National Insurance deducted: b + c = d
2 To check the figure for net pay, take total deduction from gross
pay: a - d = e
The fi nal figure in the column shows that the employer may have to
pay some of the National Insurance themselves rather than deducting
it from the employee's wage.
Credit control
Because the accounts department keeps ledger aecounts of all
.
customers' accounts, clerks are able to report regularly on the state of ·
. individual accounts.
,.,f Cl
,,.\
·
.
·
It is sfandard practice to sePa credit limit on1individual accounts and also
to seta..::Payment period (e.g. payment is expected within one month).
9.1 The role and functions of the accounts office 9
/
Did you know ... ?
You should always use a
calculator when making
calculations from rows of
figures set out in accounting
information.
l
Therefore, the accounts department plays an important part in
allowing credit to customers and making sure that they keep within
cred it limits.
Case study Controlling credit
The St Lucia Trading Company has established the following credit limits for
three of its customers:
Windward Island Importers
$1,000.00
Small Island Traders
$800.00
Roseberry Brothers
£1,200.00
The sales ledgers for these three companies for this month show the
following information (the starting figure shows the balance owed from the
previous month by these companies). Note that no payments have yet been
received for goods supplied.
Windward Island Importers
Activity
1 You have to produce
a report to managers,
setting out if any of your
customers' accounts are
close to the credit limit at
any time during the month.
What information would
your report contain?
2 Why is credit control such
an important function of the
accounts office?
1 April
Balance c/f
400.00
5April
Sales
300.00
7 April
Sales
250.00
1 April
1 Balance c/f
150.00
3 April
3 Sales
150.00
Small Island Traders
5 April
Sales
50.00
8April
Sales
20.00
10 April
Sales
100.00
13 April
Sales
20.00
Roseberry Brothers
1 April
Balance c/f
20.00
5April
Sales
900.00
7 April
Sales
280.00
None of the ledger accounts shown in the case study about credit
control are currently over the limit, but some are quite close.
When a customer exceeds their limit they are described as a •
delinquent debtor. A company may refuse to give further credit
to a delinquent debtor. Should a delinquent debtor fa il to pay up
in the longer term the accounts department may take legal action.
Initially this would involve sending a notice of late payme nt and
that court proceedings might follow. Should they still fail to pay,
final no tice will be given and then court action will follow sho ulq
the debtor still fail to pay up.
Larger companies have a specialist credit control department that
manages customer credit. The credit controller will use an accounting
measure known as 'debtor days' to find out whether the average
length of de bts is rising, falling or staying the same.
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9 9.1 The role and functions of the accounts office
For exampie, if debtor days rise from 20 days in June to 22 days in
July this would show that, on average, debtors are taking two more
days to pay up.
The accounts department can take the following actions to reduce
debtor days:
1 Offering discounts for quick payment of debts ( e.g. 'Terms - 5%
one month' is an offer that if the account is settled within one
month there will be a deduction of 5 per cent from the sum owed).
2 Charging late payers interest on money owed.
3 Refusing to allow further credit for late payers.
Collection of accounts
Many businesses sell good_s on credit. This gives rise to what the accounts
office refers to as 'accounts receivable'. Accounts receivable sets out
how much particular customers owe. Goods are sold and shipped, an
invoice is sent to the customer, and later the payment is.collected. The
'receivable' exists from the time the goods are sold to when the goods
are paid for. The accounts office is responsible for the whole process of
ensuring that accounts receivable are collected from debtors.
The main document used when supplying goods is an invoice.
An invoice is a document sent by the seller ( creditor) to a buyer
( debtor) when goods are supplied on credit. Several copies will be
made of the invoice (usually between three and five copies). One copy
is sent to the buye r, another is kept by the sales department of the
selle r (sales record), and another is kept by the accounts department
(accounting record). An invoice is a contract of sale in law.
Figure 9.1.5 is a n example of an invoice.
Invoice
Invoice no : 2468
Island Sugar Traders
Queen Street
Bridgetown
To:
Sunrise Supermarket
High Street
Saint Lawrence
Date: 6 September 2012
Quantity
Description of goods
Unit price ($)
Total ($)
5
Cases of molasses
300.00
1,500.00
8
Cases of refined sugar
450.00
3,600.00
5,100.00
Less trade discount 10%
510.00
4,590.00
Terms: 2% 14 days, net 28 days
Figure 9.1.5 Invoice
E&OE .
9.1 The role and functions of the accounts office 9
Points to note from the invoice in Figure 9.1.5.are that the buyer
is being offered a trade discount of 10 per cent. This is a discount
offered to business customers, typically to encourage them to buy
regularly and also because they are likely to buy in large quantities.
The foot of the invoice shows a cash discount of 2 per cent offered if
payment is made within two weeks.
The invoice shows:
• the seller's name (Island Sugar Traders) and address
• · the buyer's name (Sunrise Supermarket) and address
• the date of sale (6 September 2012)
• details of goods - quantity, description and price
• the terms of payment (2 per cent 14 days or net within 28 days)
• the abbreviation E&OE (errors and omissions excepted - if any
mistakes have been made on the invoice they can be put right
later).
·
Business customers in particular like to buy from other firms on
credit. It is important for the accounts department to keep a record
of when it expects to be paid and which customers are late payers.
Case study Accounts receivable
St Lucia Trading Company has offered the following terms on goods it
supplies on cred it: 'Net 30 days from invoice'. This means that it expects
payment to be made within 30 days of issuing an invoice.
,, Activity
1 How does the spreadsheet
shown in the case study
help a business to manage
its collection of accounts?
The collections department for St Lucia Trading Company has set out
the following customer ageing profile on its computer. It is a spreadsheet
showing the amounts due on invoices from five of its c lients. For example,
Client 1 owes $500.00 for an invoice that was sent out less than 30 days
ago (within the terms offered). However, Client 2 owes $750.00, with the
debt being older than 30 days but under 60 days. Therefore, Client 2 has
broken the payment terms.
Customer
ageing
0-30
days
Client 1
$500.00
2 What does the
spreadsheet reveal about
which customers are
paying or failing to pay on
time?
Client 2
3 What actions could the
business take to improve
its collection of accounts?
31- 60
days
61- 90
days
91- 180
days
To.tal
$500.00
$750.00
$750.00
Client 3
$500.00
Client 4
$300.00
Client 5
$?00.00
$200.00
$200.00
$200.00
$800.00
Total
$1,500.00
$950.00
$1,200.00
$700.00
$4,350.00
$1 ,000.00
$500.00
$2,000.00
$300.00
As well as sending out reminder notes to clients, the business might
employ a debt collection officer (debt C:haser) to visit the premises of
those with outstanding debts.
Alternatively, a business may employ a 'debt collection agency' to
collect the debts on its behalf. The debt collection agency will receive
-
9 9.1 Hie role and functions of the accounts office
a commission for its work. A business can also sell its debts at a
discount (less than their face value) to a factoring company, which
then collects the debts for itself. The problem of having to use a
factoring company or debt coll~ction agency is that you receive less
than you originally intended when you supplied the items.
Treatment of debit and credit notes
Did you know ... ?
Credit and debit notes are
produced and sent by the
seller's accounts department.
The terms E&OE on an invoice indicate that mistakes are sometimes
made in preparing invoices. The invoice will typically be made by
the sales department, but it is the accounts department that takes
responsibility for making sure that money is collected for invoices
and for putting right mistakes made in sending out invoices.
Credit and debit notes are a very useful way of putting these m.istakes
right. They are created and administered by the accounts office.
·
A credit note will be sent out by the seller's accounts department
(creditor) to the buyer ( debtor) in the following circumstances:
• when goods are returned ( e.g. they are the wrong goods, they are
faulty, etc.).
• the buyer is given an allowance ( e.g. for repair of damaged
goods)
• when the invoice was wrongly calculated so that the amount shown
was too high.
Case study Sending _a credit note
Earlier (Figure 9.1 .5) we looked at an example of an invoice sent out by
Island Sugar Traders. The invoice showed that five cases of molasses were
being delivered at $300.00 per unit. The clerk making out the invoice made
a mistake. The price should only have been $200.00 per unit. Therefore, the
buyer (Sunrise Supermarket) had been overc harged by $500.00.
The fol lowing credit note was sent out to rectify the situation.
Credit advice no: 756
Credit note
Island Sugar Traders
Queen Street
Bridgetown
To Sunrise Supermarket
High Street
St Lawrence
Date: 15 September 2012
Re. Invoice number: 2468
Overcharge on 5 cases of molasses at $100.00 per case
$500.00
Total
$500.00
A credit note will often be printed in red to clarify that it is a credit
note. In contrast, a debit note will be printed in black. It is called a
debit note because the account of the debtor needs to be debited .
Debit notes will be sent out by the accounts office when:
9.1 The role and functions of the accounts office 9
• there is a n undercharge on the invoice
• when charges, such as transport costs, have been paid by the seller
when really they should have been paid by the purchaser.
For example, if Island Sugar Traders had mistakenly failed to set out
a delivery charge of $50.00 on invoice number 2468, it would send
Sunrise Supermarket a debit note to rectify this situation (see Figure
9.1.6).
Debit note
Debit advice no:
312
Island Sugar Traders
Queen Street
Bridgetown
To: Sunrise Supermarket
High Street
St Lawrence
Date: 16 September 2012
Re. Invoice number: 2468
Transport charges
$500.00
Total
$500.00
Figure 9.1.6 Debit note
Earlie r we identified two ledger accounts - the sales and the
purchases account. You should now be able to see that accounts.
clerks also need to make entries in two additional ledger accounts sales returns, and purchases returns accounts.
Did you know ... ?
An audit is a check on the
accuracy of financial records.
l
·
Preparation of audit
You should now be a ble to see that accounting requires a lot of care
and checking to make sure that figures are accurate and to check for
mistakes. The accounts office regularly carries out checks on financial
recordkeeping within an organisation.
An audit is a check tha t is carried o ut by a n independent person to
find o ut whether financial records are accurate. Large organisations
will carry out internal audits on a regular basis, whereby one section
of the'accounts department will check the financial records kept by
others within the orga nisation to make sure that they are accurate.
An external audit is where auditors (accountants) from outside the
organisation check the financial statements that have bee n prepared
by accountants within an organisation. Auditors check whether
invokes, receipts and other do.cuments match with the accounting
records.
Audits can take place at very short notice, so it is essential for those
keeping record~ to make sure that they are always up to date and
accurate.
Managing bank accounts
The accounts office has frequent dealings with banks. For example,
suppliers will need to be paid by cheque a nd o ther forms of money
-
-
9 9.1 The role and functions of the accounts office
transfer. Money received by the business will also need to be
deposited at a bank.
Businesses usually have more than one type of bank account. Here
are the main types of account that a business might choose to have:
• Current account: For day-to-day business transactions, payments
and receipts. The bank usually charges for services that it offers
with this account (e.g. for handling cheques or for providing a card
service).
• Deposit/savings account: For funds not immediately needed and
not likely to be needed at short notice. Interest is paid to the
depositor by the bank.
• Foreign currency account: For companies trading overseas and
who are likely to make payment in foreign currency.
• Loan account: For loans taken out.
• Merchant account: To enable a business to accept and process
debit and credit card transactions.
Exam tip
Ensure that you know the
difference between a credit
note and a debit note.
The accounts office can manage the bank account more easily by:
• making sure that only authorised people are allowed to make
payments from the bank account
• keeping records of all transactions in the bank account
. • keeping and examining bank statements and comparing the bank
statements with records kept in the ledger accounts
• cross-checking statements with business records to make sure they
match.
Unit 9.3 will examine a range of widely used bank documents.
Test yourself
Key points
The role and functions
of the accounts office
include·:
•
•
•
•
preparation of payroll
credit control
collection of accounts
treatment of debit and
credit notes
• preparatio'n of audit
• management of different
types of bank accounts.
1 List THREE types of financial records.
2 Explain in your own words the difference between a c redit note and a
1
debit note.
3 List FOUR types of bank accounts.
4 Explain TWO o f the most effic ient ways of making ~nd receiving
payments.
5 Imagine you are an accounts clerk at Home Decors Ltd of Dennis Street,
Georgetown, Guyana, a supplier of interior decorating items. Your sales
c lerk miscalculated the cost of 12 ceramic ornaments, overcharging
John Brown of Mora Point, Guyana by $100.00. Prep are an appropriate
note to resolve the error.
6 Explain the importance of each of the following to the success of a
business.
a Payroll preparation
b Credit control
c Audit
'.
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·- - - - - ~ ~ -
~-~ ~
__,._--r:-~~-~--
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: .-1
, 9.2 Duties of a clerk in the accounts of·f•!1ce
-•
I
•
OBJECTIVES
_J
•
•
•
In Unit 9.1 you were introduced to the role and function of the
accounts office. In this 1,1nit you will learn about the duties of an
accounts clerk, as well as the essential attributes for this position.
By the end of this unit you
should be able to identify the
duties, responsibilities and
attributes of a clerk in the
accounts office.
Preparing payroll
The payroll sets out the names of all of the employees of a company and
how much they are paid in particular time periods. The_payroll clerk will
need to make sure that the pay packets are accurately calculated each
week or month. Deductions from gross pay will need to be calculated
and the correct amounts sent on to the tax collection authorities.
The payroll clerk will first calculate gross pay. This may be a fixed
sum per month or it may be calculated according to the number of
hours worked. Gross pay may need to be calculated from a time card
(see Figure 9.1.2).
Once pay has been calculated, the accounts clerk will create a
payment slip like the one illustrated in Figure 9.2.1.
Pay Advice:
Name:
Qate
Reference number
Port of Spain
Cycles
Leroy Rosenior
27 October 2012
NY21214C
Basic pay/additions
Deductions
Pay cumulatives
Basic pay: $1 ,000.00
Overtime: $200.00
Tax: $200.00
Nat Ins: $70.00
Pension: $60.00
Union: $10.00
Pay period: 8
'
Gross pay: $1,200.00
Your net pay has been
credited to your bank as
stated below:
Bank: Standard
Bank sort code: 06 17 32
'
lncome tax year:
2011/12
'
:Total deductions: $340.00
'
.
Account no: 1436872
I· Net pay: $860.00
Figure 9.2.1 Payment slip
Column 1
1 The name of the company
2 The employee's basic month's pay
3 Leroy has worked some overtime
4 Basic pay (2) + Overtime (3) = Gross pay
Column 2
5 The employee's nalJle
6 Income tax deducted by accounts office
-
9 9.2 Duties of a clerk in the accounts office
7 National Insurance deducted by accounts office
8 Leroy has paid $60.00 into his company's pension scheme
9 Leroy has money automatically deducted for his trade union
subscription
10 The pay slip is for the year 2011/2012
11 The pay slip is for the eighth month of the tax year
12 Tax (6) + National Insurance (7) + Pension (8) + Union fees (9)
= Total deductions from gross pay
Column 3
13 Gross pay (4) - Total deductions (12) = Net pay
Column 4
14 Leroy banks with Standard Bank in Port of Spain - you can also
see details of his bank account number
In addition to the above details, the pay slip would typically show
the overall amount of gross pay, tax, pension and National Insurance
paid in the financial year up to that date.
Where an employee earns a standard rate of pay it is fairly easy for
payroll to generate monthly pay slips. Where pay is more variable, a
computer spreadsheet package will be employed for calculating pay
and deductions from pay.
Modes of calculating pay
Did you know ... ?
l
Remember that gross pay is
before deductions. Net pay is
after deductions such as tax
have been taken away from
gross pay.
_.....,....__
)
There are several modes of calculating and paying wages. A flat
rate is where employees are paid a set amount for carrying out a
particular job of work. An hourly rate is where the worker is paid
a set rate per hour worked (e.g. $5 per hour). Overtime rate is an
increased rate paid for working more than the contracted number
of hours. For example, if an employee is contracted to work eight
hours per day at $5 per hour, they may be paid at time and a half for
working additional hours. Time and a half would be $7.50 for each
hour above eight worked on a particular day. Some workers ( e.g.
sales staff) receive a commission on sales they make ( e.g. 5 % of the
selling price of every pair of shoes sold). Commission is typically
additional to the standard hourly wage rate.
There are a number of deductions that are taken away from wage
payments. Income tax may be levied on a Pay As You Earn basis.
The employer will deduct a given percentage of the worker's wage
in income tax, which is paid over to the government. National
Insurance is another form of deduction paid to the government and
administered by the accounts office. It is deducted as a percentage of
income. National Insurance is a form of social protection that funds
future pensions of employees, as well as sickness, and other forms of
work insurance such as accident insurance.
9.2 Duties of a clerk in the accounts office 9
Writing cheques
The accounts office is responsible for making payments and a number
of these will be paid by cheque.
Did you know ... ?
A crossed cheque is more
secure than an open cheque
because it cannot be
endorsed (i.e. signed on the
back) and paid over to a third
party.
I
A cheque is a written instruction by the accoun t holder (the drawer)
to the bank (drawee) to make payment to somebody else (the
payee).
The main entries on a cheque are the date, the name of the payee,
the amount in figures and the signature of the drawer.
The most common form of cheque used by a business is a crossed
cheque, which takes up to three banking days to clear. The crossed
cheque has two lines drawn down it. A crossing on its own is called a
'general crossing' (see Figure 9.2.2).
Standard Bank PLC
Main Street
Kingston
Sort code
12-02-04
Date
1 October 2012
Pay: Allied Suppliers
One hundred
nly
1
s,oo.oo
Hortense Williams
For Pearl Clothing Co
Account no. 13879042
The payee
The crossing
The drawer
Figure 9.2.2 General crossing
It is woi"th noting some special crossings that can be used by the
accounts office.
• A supplier might ask its customers to write 'A/C payee only' in
the crossing. This is to ensure that the mo ney is paid only to the
account named on the cheque (i.e. the supplier). The cheque
then cannot be signed over to someone else. This he lps to protect
against cheques being stolen and cashed in by someone who is not
entitled to do so.
AJC
1•yee only
• The second crossing, shown below, means that the cheque can
only be paid in at a specific branch of Standard Bank, in this case
in Kingston.
St_andard Jank
King~ton I
9 9.2 Duties of a clerk in the accounts office
• The third crossing, shown below, is a warning to the person that
the cheque is paid to. It warns them to check the identity of the
person making the payment. If the cheque is stolen or dishonestly
used then the person who accepted it must refund the money to
the rightful owner.
Not 1egoti~ble
i ,ffl, HH&N
1
The person making out the
cheque is called the drawer,
the bank is called the drawee,
and the person receiving the
cheque is the payee.
l
In some countries cheque guarantee cards are used to provide
evidence that the person making payment by cheque is a trusted and
reliable account holder and that the bank will honour the payment of
the cheque.
Cheques are now becoming less widely used as a means of payment.
Increasingly, companies make payment by credit or debit card. T he
cards are made from plastic, with a magnetic chip inside. Payment
is made by inserting the card into a recording device that is able to
recognise the card and, through electronic connections to a computer
terminal, transfer money from a payer's account to the account of the
person supplying goods or services.
A debit card is a means of making payment whereby funds are
automatically transferred from the account of the person or business
making a payment to the account of the business that is supplying
goods or services. The funds are exchanged electronically.
A credit card is a means of making payment whereby the payer is
effectively borrowing from a credit card company to make a payment.
The credit card company sends a statement to the borrower at the
end of each month and charges a high rate of interest if payment is
not made within a short period of time.
When using cards to make payments, the accounts clerk must always
keep receipts provided by the business they are making payments to
for their accounting records.
Reconciling accounts
Reconciliation involves comparing two sets of records to ensure the
figures are in agreement and are accurate. For exam pl~, it would
be possible to check that the money leaving an account (e.g. the
purchasing account of a business) is equivalent to the money spent
(i.e. by checking receipts for purchases made).
T he accounts office also carries out a reconciliation between the
bank statement received from the bank each month and the accounts
office's own records of spending during the month.
A business keeps a cash book recording receipts and payments
each month made in cash. One column in this book is for bank
transactions.
T herefore, each month the accounts office will have two statements
covering the same set of details in a slightly different way. In U nit 9.8
II
9.2 Duties of a clerk in the accounts office 9
we provide examples of how figures in the cash book (bank column)
can be reconciled with figures appearing in a bank statement.
Making ledger entries
In Unit 9.1 we saw how ledger accounts provide _the basis for an
accounting system. One of the most important tasks of an accounts
clerk is to post accurate ledger entries.
However, ledger entries are not the.starting point for an accounting
system. The first step is to record transactions as and when they
occur. These transactions are recorded in what are referred to as
books of 'first entry'. These books of first entry include the:
• sales day book (records sales)
• purchases day book (records purchases)
• sales returns book (records sales returned)
• purchases returns book (records purchases returned)
• cash book (records cash transactions)
• general journal (records other items such as purchase of
machinery).
Typically these entries would be made daily. Entering these details is
called journalising, from the French word 'jour', meaning day.
Stage 1: Enter details of transactions into books of original entry
(journalising)
Stage 2: Post entries from journals into the ledgers
A transaction will either increase or decrease the total amount held
in a ledger account.
Account
Debit (dr)
Credit (er)
Increases (value received)
Decreases (value released)
The system that accountants use to record transactions is known
as double-entry bookkeeping. This is based on a basic accounting
rule - the dual aspect rule. This recognises that every transaction
has a twofold effect, so that each transaction is recorded in two
places within the accounting records of a company - once as a
debit (on the left-hand side) of an account, and once as a credit
(on the right-hand side) of another account.
For example, if a business called Office Enterprises buys $1,000.00 of
furniture on credit from Interior Design Ltd, then this will appear in
the following way in Office Enterprises' ledger entries:
Furniture account
dr
1 March 2012
er
Interior Design Ltd
1,000.00
9 9.2 Duties of a clerk in the accounts office
Interior Design Ltd account
dr
er
1 March 2012 Furniture 1,000.00
You can see from this entry that the Furniture account has been
debited, while the Interior D esigns Ltd account has been credited.
If on 15 April Office Enterprises pays £500.00 towards the furniture
it has bought on credit, then its ledger accounts will show the
following:
Furniture account
dr
er
1 March 2012 Interior
Design
Ltd
1,000.00
Interior Design Ltd account
dr
15 April 2012
er
Bank
500.00
Furniture
1,000.00
Bank
dr
er
Interior Design Ltd
500.00
You can see from the example aoove the process of double-entry
bookkeeping. Each time you make an entry on the credit side of an
account, you need to make a corresponding entry on the debit side of
another account for the same amount.
Preparing a statement of account
Accounts clerks will send out statements on a regular basis (often
at the end of each month to customers). This provides customers
with details of how much they owe and the payments they have
recently made. From the point of view of the company sending out
the statements, it helps them to communicate how much is owing
and helps them to keep track of customers who are slow in making
payment. The statement should itemise all the seperate transactions
and payments. Accounts clerks will send out statements on a regular
basis (often at the end of each month) to customers.
Case study Island Records
You work in the accounts office of a music studio called Island Records.
,.
Let us consider the steps taken in preparing a statement for Johnstown
· Music Store, which regularly buys CDs from Island Records.
9.2 Duties of a clerk in the accounts office 9
Every time Island Records supplies CDs to Johnstown Music Store you will
record this in your sales ledger (as a credit) and in Johnstown Music Store's
ledger account as a debit. When you receive payment by c heque you will
post this on the credit side of Johnstown Music Store's ledger account
(reducing the amount it owes).
Any discount given to Johnstown or sales returns will be credited to its
account.
Let us examine Johnstown Music Store's transactions for January.
• On 3 January Johnstown bought $400.00 of worth of CDs from Island
Records. You sent Johnstown an invoice offering a 5 per cent cash
discount if it paid within 28 days.
• On 10 January it paid $400.00 by cheque for these.
• On 12 January it returned $ 100.00 worth of CDs because some of them
had been damaged in transport.
• On 18 January it bought $ 1000.00 worth of CDs.
• On 27 January it paid $500.00 as part payment.
Your job is now to send them a statement after balancing the account at the
end of the month.
Note that the term 'b/d' refers to brought down - bringing the balance of an
account down from a previous month or page in a ledger.
The term 'c/d ' refers to carried down - when an account balance is to be
carried down on the next day after the entry is made - or carried down from
one page of the ledger to the next.
Figure 9.2.3 shows how we can now balance the account.
Johnstown Music Store
dr
Date
er
Details
Amount($)
Date
Details
Amount($)
3 January
Sales
400.00
10 January
Bank
400.00
18 January
Sales
1,000.00
12 January
Sales returns
100.00
· 27 January
Bank
500.00
31 January
Balance c/d
400.00
1,400.00
1 February
Balance b/d
1,400.00
400.00
Figure 9.2.3 Balancing the account
To balance the account, add together the debits (total $ 1,400 on the lefthand side), then take away the credits ($1,000 on the right-hand side) . This
then needs to be balanced on the credit side with a figure of $400. This is
then carried down as a debit balance at the start of February, showing that
Johnstown Music still owes $400.
We can now send out a statement to Johnstown Music. The statement will
look like Figure 9.2.4.
·
(cont.)
-
9 9.2 Duties of a clerk in the accounts office
Island Records
Port of Spain
Trinidad
Statement
To: Johnstown Music Store
Port of Spain
Trinidad
Debits($)
Credits($)
Balance($)
Date
Details
3 January
Invoice no. 754
10 January
Cheque
400.00
0.00
12 January
Credit note 356
100.00
100.00 (er)
18 January
Invoice no. 762
27 January
Cheque
400.00 (dr)
400.00
900.00 (dr)
1,000.00
500.00
400.00 (dr)
Figure 9.2.4 Statement
Activity
Exam tip
You need to know the
difference between a
statement of account and a
bank statement.
You work in the accounts office of a manufacturing company p roducing
spicy sauces. The address of your company is Sea View, St Kitts. One of
your best customers is Value Supermarkets, whose head office is in Main
Street, Bridgetown, Barbados. You are required to produce a statement for
Value Supermarkets based on the following transactions:
• 1 January it bought $3,000.00 worth of spicy sauces on credit
• 3 January it bought a further $2,000.00 worth of spicy sauces on credit
• 18 January it bought $6,000 .00 worth of spicy sauces on credit
• 12 January it sent a cheque for $4,000.00
• 15 January it returned $500.00 worth of sauces that had been damaged in
transit and you sent them a credit note on the same day
• 23 January it sent a cheque for $3,000.00
1 Balance the account for Value Supermarkets.
2 Create a statement showing the transactions and balances.
Writing up the cash book
A cash book is one of the busiest parts of a business's accounting
system. The cash book contains two main ledger accounts set side by
side - cash and bank. Because these accounts are used so frequently
they are kept separately from other ledger accounts in the cash book.
There are three main types of documents that an accounts clerk will
use to make entries in the cash book. These are:
• cheques (see Figure 9.2.2)
• receipts - business documents that are given to acknowledge the
receipt of cash)
• statements (see Figure 9.2.4) - business documents summarising
the transactions between debtors and creditors in a month.
9.2 Duties of a clerk in the accounts office 9
The cash book is set o ut as shown in Figure 9.2.5.
CASH BOOK
Debits
Date
Details
Discount
Cash
Bank
($)
($)
Date
Credits
Details
Discount
Cash
Bank
($)
($)
-
-
-
Figure 9.2.5 Layout of cash book
You can see there are three types of entry:
• discount
• cash
• bank.
The debit side shows receipts of cash (cash) or cheques (bank).
The credit side shows payments made. If the payment is made by
cash it is entered in the cash column, if it is made by cheque then it
appears in the bank column.
The details column is used for listing the accounts that must be debited
or credited in order to complete the double entiy for a transaction.
For example, if we post into the cash book that Simone Williams has
paid a cheque for $50.00 in payment for goods she bought earlier on
credit, then this appears in the debit side of the cash book, and will
also be posted onto the credit side of Simone's ledger account. This is
shown in Figure 9.2.6.
CASH BOOK
Debits
Date
15 Jan
Details
Discount
Cash
Bank
($)
($)
S. Williams
Date
Credits
Details
Discount
Cash
Bank
($)
($)
50.00
dr
Simone Williams
1 January Balance b/d
200.00
er
15 January 50.00
Figure 9.2.6 Recording a payment
When writing up the cash book each week you should start out with
an opening balance in the cash and bank columns. At the end of the
week you should also put in your closing balance (see the example in
Figure 9.2.7).
CASH BOOK
Debits
Date
Details
Discount
Cash
Bank
($)
($)
2012
Balances b/d
5 Jan
P Tomkins
7 Jan
Sales
-
Details
Discount
Cash
Bank
($)
($)
2012
1 Jan
8 Jan
Date
Credits
500.00
800.00
3 Jan
Postage
10.00
200.00
6 Jan
Wages
200.00
7 Jan
Expenses
7 Jan
Balance c/d
400.00
Balance b/ d
690.00
-
Figure 9.2.7 Recording cash book transactions
880.00
-L---------
120.00
690.00
880.00
-
a
9 9.2 Duties of a clerk in the accounts office
Activity
You work for Island Records
and are required to enter the
following details into the cash
book:
• 1 January - Opening
balances, cash $1,000.00,
bank $600.00
• 2 January - Receive cheque
paid by W. Hall for goods
bought on credit at earlier
date - value of cheque
$400.00
• 3 January - Make cash sales
for $200.00
• 4 January - Pay postage
$20.00
• 4 January - Pay expenses
$50.00
• 6 January - Make cash sales
for $100.00
Set out the cash book entries
for the first week in January
and the opening balance ·at
the start of the second week
in January.
What you can see from the entries in Figure 9.2.7 are that:
• the cash book started with balances of $500.00 in cash and $800.00
in the bank
• on 5 January P. Tomkins paid a cheque for $200.00 that he owed
the business
• on 7 January the business made sales that were paid for in cash,
worth $400.00
• on 3 J anuary the business paid $10.00 for postage stamps in
cash
• on 6 J anuary it paid wages in cash of $200.00
• on 7 J anuary a cheque was made to an employee for expenses
• at the end of the week the cash account had a balance of $690.00
and the bank account had a balance of $880.00; these balances
were then carried down to the second week
• these balances were brought down into week 2, so the process of
recording could start for the next week.
Preparing final accounts
Another duty of accounts clerks is to help prepare the fin al accounts
of a business.
The final accounts consist of three elements:
• trading account
• profit and loss account
• balance sheet.
Trading account
The trading account shows the gross profit made by a trading
business. This would be calculated by calculating the value of sales
made by the business and deducting from this the cost of sales (i.e.
the cost of buying items to resell).
This information could be obtained from the sales ledger and
the purchases ledger. Total sales and total purchases can be
calculated.
In a trading account this is shown as:
Turnover (sales revenue) - Cost of sales = Gross profit
For example, if a bookshop buys $10,000.00 worth of books, which it
resells for $20,000.00, the trading account would show.
Trading account as at 31 December 2012
$
Turnover
20,000.00
Cost of sales
(10,000.00)
Gross profit
10,000.00
Note that in accounts negative figures are shown in brackets.
9.2 Duties of a clerk in the accounts office 9
Profit and loss account
Did you know ... ?
The net profit of a business
is the gross profit minus
expenses.
The profit and loss account shows the true profit (or loss) made
by a business. To produce a profit and loss account it is necessary
to include the expenses of running a business. These are the costs
of running the business on a day-to-day basis. For example, the
bookshop will have to pay electricity bills, property rental charges and
other expenses. Assuming that these expenses amount to $5,000.00,
we can now show the profit and loss account of the bookshop. (Note:
the profit and loss account includes the trading account.)
Profit and loss account as at 31 December 2012
$
Sales revenue
20,000.00
Cost of sales
(10,000.00)
Gross profit
10,000.00
Expenses
(5,000.00)
Net profit
5,000.00
The accounts office records accounting data, analyses the data, and
is then able to produce financial reports such as the profit and loss
account.
The stages involved in getting to final accounts are:
1 Make initial journal entries
2 Post these entries into the appropriate ledger accounts
3 Balance off the ledger accounts and create what is known as a trial
balance to check that the debits equal the credits
4 Create the final accounts - such as the trading account and the
profit and loss account
Table 9.2.1 shows you where to place ledger accounts in the trading
account and the profit and loss account.
Trading account
Profit and loss account
Purchases
Gross profit
Sales
Debit balances for ~xpenses such as rent and
insurance
Purchases returns
Sales returns
Credit balances for interest received, discount
received and commission received
Table 9.2.1
Balance sheet
Th e accounts office also helps to provide the information for the
company balance sheet. This is an annual statement showing how
much the business owns or owes on a particular date.
The things that a business owns are called 'assets'. These include
furniture, vehicles and machinery. They would appear as debit
balances in its own ledger accounts, such as the furniture account.
9 9.2 Duties of a clerk in the accounts office
What a business owes is referred to as its 'liabilities'. For example,
this might be a bank loan or overdraft. These liabilities would appear
as credit balances in a business's ledger accounts.
You can see from the notes set out in this section that accounting is a
very important and detailed office function requiring a lot of careful
and detailed work.
Attributes of staff working in the accounting office
T here are three main attributes required by someone working in an
accounts office:
• integrity
• confidentiality
• reliability.
Working in the accounts office you will be handling money on a
regu lar basis. Therefore, absolute integrity is required to handle
the money in a professional way so that it is used for the purposes
intended and that detailed records are kept of what happens to that
money.
In addition, yo u are handling information that is of a personal
nature ( e.g. details of pay given to employees, the state of customers'
accounts, such as how much they owe and how long it takes them to
pay debts). This information should not be shared with others outside
the accounts office. Details sho uld be kept private at all times.
F inally, reliability is an essential feature of the accounts clerk.
Working in accounts you need to produce accounts on time
and witho ut mistakes (wherever possible). This requires a lot of
organisational skill - to make sure that ledger and other entries are
made in the appropriate places and that they are set out clearly.
Did you know ... ?
l
The idea for the first
accounting computer
program, the VisiCalc, was
developed in 1978 by Daniel
Bricklin, a Harvard Business
School student.
m
Fortunately, today there are accounting packages that can be bought
with computers that make it much easier to enter inform ation.
T he computer program allows you to make journal entries that are
automatically formed into ledger accounts. T he ledger accounts can
then be set out in a trial balance and in the final accounts. However,
the fin al accounts are only as accurate as the information that is first
fed into journal entries. The accounts clerk who makes clear and
correct entries into the journals is thus the foundation sto ne of an
effective accounting system.
9.2 Duties of a clerk in the accounts office 9
Test yourself
Key points
Duties of a clerk in the
accounts office are:
• preparing payroll
• writing cheques
• reconciling accounts
• making ledger entries
• preparing statement of
accounts
• writing up the cash
book.
An accounts clerk must
have the following
attributes :
• integrity
• confidentiality
• . reliability.
1 List FIVE duties of the clerk in the accounts office.
2 Name THREE attributes that are required for someone working in an
accounts office.
3 Assume you are a clerk in the accounts office and your duty is to
prepare the payroll.
a Explain what the payroll consists of.
b Explain what will be deducted from the gross earnings of workers.
4 Interpret the two documents below.
Credit note no: 586
Due date: 15 January 2012
To: Sony's Store
Plantation Road
Antigua
CREDIT NOTE
United Dairy
Sundial Avenue
Antigua
Quantity
Description
Unit Price ($)
Value($)
1
Container goat's cheese
20.00
20.00
2
Containers ewe's milk
12.00
24.00
Refunded amount
44.00
Reasons for returns:
Container of goat's cheese not delivered.
Ewe's milk not part of the original order.
Reciept: 586
Due date: 15 January 2012
To: BM Marley
Beach Road
Antigua
RECEIPT
25 SUNNY ROAD
Plantation Road
Antigua
Payment for the following items:
Goods
Payment
Mr B M Marley 10th January
TV set
$158.00
Payment with thanks:
I $158.00
'--- - -- - - -~
5 Explain the following terms:
a Cheques
b Bank charges
c Cash book
6 State the purpose of each of the following accounting tasks:
a Reconciliation
b Double-entry bookkeeping
c Preparation of final accounts
7 List THREE types of equipment that a clerk in a modernised accounts
office will be required to use.
OBJECTIVES
In this section we will be looking at four key documents used in the
accounts office. You will need to interpret the informatio n provided
in these documents by answering a series of simple questio ns.
By the end of this unit you
should be able to interpret
simple documents in the
accounts office.
Payroll
- ---
Activity
The wages sheet shown in Table 9.3.1 records the hours worked by four employees working for the Southern
Electric Company in a week in February.
Wages sheet
Week&
Hours worked
Sat
Michael
Harrison
5
Sun
Mon
Thu
Fri
Total
Pay
rate
Basic
earnings
($)
($)
Bonus
($)
Gross
pay($)
9
8
8
8
48
5.00
240.00
240.00
9
9
9
9
8
44
5.00
220.00
220.00
9
9
9
9
9
50
6.00
300.00
8
8
8
8
8
40
4.50
180.00
5
Seema
Singh
Wed
10
Hovill
Lawes
Pritesh
Patel
Tue
30.00
330.00
180.00
Table 9.3.1
1 Present the information in the form of a payroll sheet (see Table 9.3.2) , assuming that income tax is charged
at 15 per cent and National Insurance at 10 per cent. The first line of the payroll sheet for Michael Harrison has
already been filled in for you.
-
Payroll sheet
'
~
Week&
Name
Michael Harrison
Gross pay ($)
Tax deducted
240.00
36.00
($)
National
Insurance ($)
Total
deduction ($)
24.00
60.00
Hovill Lawes
Pritesh Patel
Seema Singh
Total
Table 9.3.2
2 a What is the difference in meaning between the terms 'gross pay' and 'net pay'?
b Explain how net pay is calculated.
Net pay($)
180.00
9.3 Interpret simple documents in the accounts office 9
3 Calculate the net pay of each of the following :
a Hovill
b Pritesh
c Seema
Debit and credit notes
.r-
Activity
Figure 9.3.1 shows a credit note sent by United Dairy (milk producer) to
Sony's Store (shop selling milk and other household goods).
United Dairy
Sundial Avenue
Antigua
CREDIT NOTE
Credit note no: 586
Due date:
15 January 2012
To: Sony's Store
Plantation Road
Antigua
Quantity
Description
Unit Price ($)
Value ($)
1
Container goat's cheese
20.00
20.00
2
Containers ewe's milk
12.00
24.00
Refunded amount
44.00
Reasons for returns:
Container of goat's cheese not delivered.
Ewe's milk not part of the original order.
Figure 9.3.1
1 What is the purpose of the credit note and why is it printed in red?
2 The credit note wou ld have been sent after the delivery of goods and
receipt of an invoice. Why would the term E&OE have been printedon
the invoice?
3 What errors and/or omissions are mentioned in the credit note shown?
4 How would the sums shown in the credit note appear in United D airy's
ledger accounts for Sony's Store (credits or debits)?
9 9.3 Interpret simple documents in the accounts office
Activity
Figure 9.3.2 is a debit note sent by United Dairy to Sony's Store. Study the
debit note and answer the following questions.
United Dairy
Sundial Avenue
Antigua
DEBIT NOTE
Debit note no: 176
Due date:
25 January 2012
To: Sony's Store
Plantation Road
Antigua
Re. invoice no. 2896
$
Transport charges
60.00
Insurance on goods
20.00
Total
80.00
Figure 9.3.2
1 Why do you th ink that Sony's Store has been sent a debit note for
transport and insurance on goods?
2 What other reasons can you think of for sending out debit notes from a
supplier to a retailer?
Simple statements of account
Activity
The statement shown in Figure 9.3.3 was sent out by United Dairy to Sony's
Store at the end of January.
United Dairy
Sundial Avenue
Antigua
Statement of account
To:
Sony's Store
Plantation Road
Antigua
Date:
31 January 2012
Debit
Credit
Balance
Date
Details
1 January
Balance b/f
5 January
Invoice 674
220.00
640.00
8 January
Invoice 679
120.00
760.00
15 January
Credit note 586
42.00
718.00
24 January
Cheque payment
218.00
500.00
25 January
Debit note 176
420.00
580.00
80.00
Amount now due
Figure 9.3.3
580.00
9.3 Interpret simple documents in the accounts office 9
~
l
1 Explain each of the items on the statement and how the balance is
calculated.
2 What is the purpose of the numbering system shown in the~etails column?
Activity
1 Use the following information to prepare a statement of accounts for
Brewster's Auto Supplies from Adams Bros Ltd:
• On 4 September Brewster bought $800.00 worth of brake pads. The
invoice offered 6 per cent cash discount if payment was made within
20 days.
• On 18 September $200.00 worth of damaged brake shoes were
discovered and returned to Adams Bros Ltd.
• On 16 September Brewster paid $800.00 by cheque.
.
• On 21 September Brewster bought $600.00 worth of brake shoes on
credit.
• On 24 September Brewster paid $300.00 cash as part payment.
• On 28 September a cheque for $1,000.00 was received with a
purchase order for $700.00 worth of brake shoes.
Balance Brewster's Auto Supplies account.
Cheques
-
"Activity
-..._
In response to the statement shown in Figure 9.3.3, Sony's Store sends two
cheques to United Dairy on separate dates in February. The cheques are
shown in Figure 9.3.4.
Scotiabank
St John's, Antigua
Sort code
12-02-04
Date 3 February 2012
Pay: United Dairies
~
Two hundred dollars only
I $200.00
0..
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-
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S.01-1.1 11cC!ath
Sony McClain
Cheque no. 01 98989
Account no. 13879042
Cheque 1
Sort code
Scotia bank
St John's, Antigua
12-02-04
Date 10 February 2012
Pay: United Dairies
-
Four hundred dollars only
iI
Cheques are becoming
obsolete as most businesses
and customers prefer to use
credit and debit cards.
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I $400.00
UC
S ou., 11cC!ath
Sony McClain
Cheque no. 0198990
I
Account no. 13879042
Cheque 2
Figure 9.3.4
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9 9.4 Equipment and software
Exam tip
Many students have difficulty
with the calculations needed
to interpret and prepare
business documents.
Practise these until you
can do them quickly and
accurately.
Key points
You must be able to
interpret the following
documents:
• payroll
• debit and credit notes
• statements of account
• cheques.
1 What is the purpose of the crossing in the first cheque shown in Figure
9.3.4?
2 What would be the significance of writing 'ale payee only' in the crossing?
3 Why does the second cheque say 'not negotiable'? What are the
implications.for the person receiving the cheque?
- - - - - - - ---------
Test yourself
Malvern Soft Drinks Factory supplies a range of bottled drinks each week to
Sol Hotel, which is situated in Discovery Bay in Jamaica. The addresses of
the two companies are:
Malvern Soft Drinks Factory
Ocean Heights
Jamaica
Sol Hotel
Discovery Bay
Jamaica
In the first two weeks of October, the accounts office of Malvern Soft Drinks
Factory sent out the following invoices and other documents to Sol Hotel
relating to goods supplied.
• 1 October - Invoice number 658, for 10 cases of orange drink at $40.00
per case; two cases of mango juice at $45.00 a case; and one case of
lemon drink at $50.00 a case.
• 8 October - Invoice number 672, for eight cases of orange drink at
$40.00 per case; three cases of mango juice at $45.00 a case; and two
cases of guava drink at $55.00 a case.
• 6 October - Credit note 124, for an overcharge on the lemon drink, which
should only have been charged at $40.00 a case, and a refund for one
case of orange drink that had been damaged in transport on 1 October.
• 10 October - Debit note for $50.00 for transport costs. The cost should
have been paid by the hotel rather than Malvern Soft Drinks Factory.
1 Set out the following:
a Credit note for 6 October
b Debit note for 1O October
2 Produce a statement that would be sent by Malvern Soft Drinks Factory
to Sol Hotel at the end of the two-week period.
9.4 Equipment and software
OBJECTIVES
Can you name the accounting resources shown in Figure 9.4.1?
By the end of this unit you
should be able to state the
functions of equipment and
computer software used in
the accounts office.
In the past, an accounting clerk would have to use handwritten
spreadsheets, ma nual adding machin es and a lot of paper to perform
the required duties. In the modern office, it is far more likely that the
accounts clerk will use a computer with accounting and spreadsheet
programs for most of the tasks. In this unit you will learn about the
traditional and modern resources tha t are used in accounting.
m
9.4 Equipment and software _9
Figure 9.4.1 Resources used for accounting have changed considerably
Adding and billing machines
Some of the accounting equipment used until the mid-1980s was
very slow by modern standards. In those days accounts clerks used
some very basic machine1y for doing calculations. An adding machine
was a machine designed to add numbers and cany out other simple
operations. The accounts clerk identified the numbers he or she
wanted to add up and then pulled a handle, which brought up the
right answer. These machines were designed to make calculations in
dollars and cents. A billing machine was really a modified typewriter
that could be used to line up figures accurately when creating
invoices.
Accounting machines
In many ways, accounting machines were the forerunners of early
computers. They were designed to put figures into tables and to
prepare invoices. Electronic accounting machines (EAMs) were
also known as tabulating machines. They were as commonly used
in offices in the first half of the twentieth century as computers are
today. Typically, an accounting machine would operate using holes
punched into cards. A key punch operator would punch holes into
cards. The holes would represent data that could then be calculated
and put into tables by the machine. All of this was to change with the
arrival of calculators and computers.
Calculators
A calculator is a small electronic device used for carrying out
mathematical calculations. It is particularly useful for accounting. For
example, it is important to regularly balance off ledger accounts and
then carry the balance down to the next period of the next page in a
ledger. In seconds the calculator can tally up a list of balances and
produce an accurate total.
9 9.4 Equipment and software
Some calculators are ve1y small and flimsy, the size of a small card.
Others are more sturdy and are built like early adding machines, with
a built-in printer. Eve1yone working in an accounts office should have
a calculator on th~ir desk so that they can check figures on invoices
and documents when journalising and posting entries to ledgers.
Computers
Invoicing
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Figure 9.4.2 Invoices can be generated on a computer system, saving time and
enabling more accurate recordkeeping
Computers have revolutionised the accounting industty . Computers
are able to cany out many of the operations previously carried out by
a skilled accounts clerk - making accurate calculations, filing reports,
analysing figures and presenting financial information in an attractive
way. Computers are the modern version of the early adding and
billing machines. However, they are much faster, more accurate and
easier to use.
Businesses of whatever size can purchase off-the-shelf accounting
programs very cheaply. Larger businesses are likely to have
computerised accounting packages designed specifically for their own
purposes.
A typical computer accounting package will carry out a number of
operations:
• on-screen creation of and then printout of invoices
• automatic updating of customer accounts in the sales ledger
• recording suppliers' invoices
• automatic updating of suppliers' accounts in the purchase ledger
9.4 Equipment and software 9
• recording bank payments
• making payments to suppliers and for expenses
• automatic calculation of payroll and printing of payslips.
Did you know ... ?
Although most accounting
today is done using
computers, it is still
essential to understand the
fundamentals of accounting
principles if you are to work in
an accounts office.
A computer accounts package only requires the user to make one
entry - unlike the traditional double-entry system. The package will
automatically credit one account and debit another.
I
Some main advantages of using a computerised accounting system
are:
• Accuracy: Only one accounting entry is necessary.
• Speed: The computer carries records of customers and suppliers
that can be accessed very quickly. Then information can be
recorded instantly.
• Automatic document production: A computerised package has
ready-prepared templates of invoices, credit notes, debit notes,
statements and so on. The accounts clerk simply enters the data.
In some cases the data are automatically transferred from one
document to another ( e.g. details from invoices will automatically
be transferred into statements).
• Availability: The data are instantly available, in the same way that
documents can be instantly called up on a computer.
• Readability: Because the information is printed directly from the
keyboard to the screen and then to paper, it is clear to read.
• Cost-saving: Computerised packages are easy to operate, saving a
lot of time and money.
Photocopiers
A photocopier is a machine that makes paper copies of documents
and pictures. To copy a document you simply need to place it on
the glass plate inside the machine and then set the·machine to print
the number of copies required. Most photocopying machines will
carry out a number of operations, such as stapling sheets together,
changing the size of a document, printing documents back to back
and other functions. In a modern office a photocopier can be linked
directly to desktop computers, so that it serves as a printer.
The photocopier is particularly useful for producing multiple
copies of accounting statements. For example, if a customer sends
an invoice, the purchases ledger clerk in the accounts office can
photocopy the invoice for the firm's own records.
Figure 9.4.3 Photocopiers enable
multiple copies of accounting
documents to be generated
Modern photocopiers use digital technology. This enables highdefinition copying of documents. Some digital copiers can operate
as high-speed scanners and make it possible to send documents via
email.
Facsimile machines
A facsimile (abbreviated to fax) is a document sent over a telephone
line. Since the mid-1980s fax machines have become very popular
-
9 9.4 Eguipment and software
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Figure 9.4.4 Fax machines enable
the rapid transmission of accounting
documents
across the world. The fax machine is the machine used to transfer a
copy of the document from the sender to the receiver over a phone
line. T he fax machine will typically have a built-in telephone. The
fax number is the number of the fax machine when accessed by
telephone link. T he fax is particularly useful for sending copies of
accounting documents that need to arrive quickly. For example, a
supplier might send a copy of an invoice prior to sending goods to a
client that it is dealing with for the first time, wanting payment before
it will deliver the goods. T he fax can also be used to send copies of
accounting documents when proof is required relating to original
documents or documents that have been lost.
Did you know ... ?
Spreadsheets
Although the first fax
machines were invented in
the nineteenth century, it
took more than a century
before the Xerox Company
developed a machine that
could be connected to a
telephone line and was small
enough to fit into any office.
A spreadsheet is a table set out on a computer that replicates an
accounting worksheet. It sets out a sheet of cells making up a grid of
columns and rows. The user can input numbers, words or formulas
into the cells. The formulas are very important because they specify
how the figures in the various cells on the sheet relate to each other.
T he formulas enable calculations to take place automatically altering
the numbers in some or all of the rows and columns.
Spreadsheets are frequently used for financial recordkeeping and
making financial calculations. Changing the number in a particular
cell can lead to changes occurring in several other cells or across the
whole spreadsheet.
A widely used spreadsheet is Microsoft Excel, which is part of
Microsoft Office, and can be fou nd on most Windows-based
computers.
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9.4 Equipment and software 9
Another advantage of a spreadsheet for accounting purposes is that
charts can be automatically generated from selected figures on the
spreadsheet.
A value on a spreadsheet can be entered from the computer
keyboard by typing directly into a cell. Alternatively, the value may
be based on a formula that performs a calculation. For example, the
spreadsheet can calculate the value of all sales made by a company if
the formula for adding a particular column of figures is created using
the SUM formula and the + sign.
Spreadsheets, like calculators, are very useful for carrying out
accounting calculations, such as addition, subtraction, multiplication,
divisio n and working out percentages.
Accounting packages
Exam tip
You should be able to
apply all the concepts that
you learned in previous
sections when discussing the
benefits of using computer
technology in the accounts
office.
An accounting package is a specific accounting package that a
company can purchase for its accounts office for the purpose
of recording acco unting information. A good example of this is
QuickBooks accounting software. QuickBooks is a simple accounting
package that enables a small business to keep a track of where the
business stands. With QuickBooks the accounts office can spend less
time on reconciling payments and invoicing because the software
carries out these operations automatically. Every sale and expense
can be stored in the package and then set out in summary statements
that enable a business to quickly create an accounting system that
is user-friendly. Businesses can also purchase online accounting
software that enables them to operate their accounting function.
Test yourself
Key points
Hardware resou rces used
in the accounts office are:
• calculators
• adding machines
• computers
• printers
• scanners
• copiers.
The main software
resources used in
accounting are:
• accounting packages
• spreadsheet packages.
Gino's is a company specialising in office furniture, which it sells across
the Caribbean area. The company employs 20 staff in its accounting office
and handles the accounts of several hundred businesses, some of which
manufacture furniture for Gino's and many more of which are customers
buying small quantities of furniture.
State what types of equipment and software will be helpful to support
Gino's accounts office in the following situations. In each case justify your
choice of equipment.
1 Gino's has supplied a hotel in Barbuda with five office desks and chairs.
The hotel believes that it only ordered four desks, but has lost its original
order form and wants verification of what the order form originally stated.
2 Gino's wants to create an easy-to-operate purchases and sales ledger
that will automatically update sales and purchases and periodically print
off balances.
3 Gino's has received a debit note from one of its suppliers. The debit
note arrived through the post and Gino's needs to make several copies
of the debit note for its own records.
4 Gino's office staff need to carry out regular additions, subtractions,
multiplications and percentage calculations when making ledger and
balance entries.
5 Gino's accounts department wishes to provide regular statements to its
customers, using the very latest figures from its ledger accounts.
\
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9.5 Procedures for making and receiving
payment
OBJECTIVES
By the end of this unit you
should be able to outline the
procedures for making and
receiving different types of
payments.
There are a number of ways that the accounts office can make and
receive payments through banks, credit bureaux and post offices.
These are shown in Figure 9.5.1.
Figure 9.5.1 Methods of making payment
Cash/cheques
An easy way to pay for goods or services, or to settle a debt, is to use
cash in the form of notes and coins, or to pay by cheque. Paying by
cheque is a safer option as it does not involve canying cash around
or putting cash in the post where it could go missing. We will look at
different types of cheques and the information on cheques in Unit
9.6.
Credit cards
A credit card is a payment facility offered by a bank. The customer is
provided with a credit card. This enables the user of the card to buy
goods and pay for them later. Eve1y month users receive a statement
showing how much they owe the bank. If they pay the bill by a given
date, they will not have to pay interest. However, if they do not pay
the bill in full, they are charged a high rate of interest. Businesses
may use credit cards to buy goods or make other payments to help
them manage short-term cash-flow problems where they are short of
funds in the immediate period.
Money orders
Money orders are a popular way of paying bills that some companies
prefer to using a cheque.
A money order is literally an order to pay a sum of money to
someone else. It would work in the following way. Your company
wants to purchase $200.00 worth of goods from a supplier for the first
time. The supplier wants to be paid before it delivers the goods. In
order to make an acceptable payment you go to your local post office
and ask it to make out a money order for $200.00 to the supplier. You
pay the $200.00 to the post office, which then sends the money order
9.5 Procedures for making and receiving payment 9
to the supplier. The supplier can now cash the money order at its
local post office .
A money order does not expire, so the payee (your supplier) can cash
it at any time. Money orders are made out for larger sums of money
than postal orders (see Postal orders below).
Electronic transfers
Modern business transactions involve many different types of
electronic payment, including payment by a cash or cheque card
for goods in a supermarket or cash-and-cany wholesaler. Many
businesses use electronic cash cards for making payments. Where
it has regular payments to make to suppliers it can arrange for the
funds to be transferred electronically from its bank account to the
supplier's bank account.
Figure 9.5.2 Electronic scanning
reader
A growing form of electronic transfer is the chip and pin system.
An electronic chip is located in a cash or credit card. The chip can
be read by a scanning device belonging to the supplier. A customer
enters their personal identification number (PIN) on the keyboard of
the scanning device (see Figure 9.5.2). The device recognises that the
PIN and the electronic chip on the card match and so authorises the
transfer of funds from the purchaser to the supplier.
Postal orders
These are not used very often in business transactions because the
sums involved are usually small. The accounts office would tend to
make payments by money order (see Money orders above). The post
office sells postal orders for set amounts, such as $5.00 or $10.00. A
purchaser can use a postal order to pay for goods by sending postal
orders to a supplier. This is a safer way of transferring funds than
cash because the postal order needs to be taken to the post office
to be cashed in. The cashier in the post office will ask for proof of
identity.
Standing orders
This is an order given by a bank's customer to make set payments at
set intervals, for example, to pay $100.00 to a supplier on the fifth day
of every month for two years. The order stands until the end of the
second year. The bank charges a fee for providing this service:
An alternative to the standing order is the direct debit. In this
instance a customer allows the supplier to instruct the bank how
much should be paid into their account from the customer's account
at set intervals.
A standing order is most suitable when the payments are predictable
in amount. A direct debit is suitable where the amount the customer
needs to pay each month is likely to vary.
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9 9.5 Procedures for making and receiving payment
Credit transfer
This is a means of transferring money from one account to another.
It is widely used by business because it is so simple to operate. Single
transfers ca n be made by a purchaser to a specified supplier. The
purchaser fills in a form, either in writing or electronically, setting
out the details of the account to be paid into and the sum. The bank
then transfers funds from the purchaser's account to the supplier's
account.
Businesses also use this system for making multiple transfers. For
example, on a set date (perhaps the end of the month) a business
electronically transfers a range of payments to its creditors.
Bank drafts
This is a means of making a large payment when the supplier wants
to be sure that it will receive payment. The bank draft looks like a
cheque. However, the cheque/bank draft is made out by the bank. In
effect, the bank is paying the supplier. The supplier knows that the
bank draft will be honoured. The purchaser then has to pay the bank
the sum shown on the bank draft. Typically, the bank will take this
money out of the customer's bank account.
Letters of credit
Letters of credit are used to support payment mainly in international
trade. When you buy goods from a company overseas it will want
to be sure that you can pay for them. For example, a company
called West Indies Spice Importers wants to buy some spices from a
supplier in Sri Lanka. It has agreed to pay within 60 days of delivery
of the spices. The supplier wants to be sure of payment, so it asks
the importer to provide a letter of credit from its bank. The bank in
the West Indies agrees to do this and produces a letter guaranteeing
to pay on condition that the spices are delivered and that the
appropriate documents are presented, asking for payment on the due
date.
Activity
Pardeep's book store purchases books for resale from two main publishers
in Guyana. It then sells these books to individuals and to schools and
colleges. What payment methods do you think that Pardeep should set up
for the following transactions?
1 He supplies the Superior Academy of Learning with exactly $200.00
worth of exercise books every month of the year as part of a fixed
contract.
2 Pardeep has had a request from an up-country customer to send him by
post two expensive books. He does not know the customer and is not
sure whether the customer will pay for the books.
9.5 Procedures for making and receiving payment 9
3 Pardeep wants to buy a case of rare books from the US. He wishes to
buy the books on credit and pay for them later. The US company
is reluctant to ship the books until it can be sure that he will pay for
them.
4 Pardeep wishes to purchase an expensive new delivery van for
transporting books to customers. The company selling the van to
Pardeep is not happy receiving a cheque in payment because it cannot
be sure that it will be honoured. It is therefore seeking some other form
of payment from Pardeep.
5 Pardeep wants to set up a system whereby he can automatically pay his
suppliers at the end of each month through his bank.
6 A customer has phoned Pardeep asking for an urgent delivery of a book
through the post. How can Pardeep get the customer to pay before he
sends the book?
Types of financial institutions
Key points
The accounts office
makes and receives
payments through banks,
credit bureaux and post
offices.
An easy way to pay is
using cash or cheques.
There are a number of
ways of making payment,
by ordering a bank, credit
bureau or post office to
make a payment on your
behalf (e.g. a money
order by a post office, or
standing order through a
bank).
The accounting office is likely to deal with a range of financial
institutions. Examples of financial institutions include:
• High Stt·eet banks (commercial banks)- taking deposits from
customers and lending them to other customers or to businesses.
Commercial banks offer a range of financial instruments, such as
cheques, and means of payment, such as direct debits and standing
orders.
• Building societies - lending funds for the purchase of houses,
buildings and land.
• Credit unions - cooperative financial institutions owned and
controlled by their members. Credit unions make loans to
businesses and individuals.
• Pension funds - companies that collect savings from people when
they are younger and pay o ut funds to these people when they
reach retirement age. Where a company runs an occupatio nal
pension scheme, the accounts office will make deductions from
employees' wages and pay these into an insurance fund.
• Insurance companies - enabling businesses and households to
have risks and losses covered in return for a regular payment of
a premium. The accounts office will be respo nsible for making
payments and claims to insurance companies.
Test yourself
1 Give definitions for SIX types of payment.
2 You wish to utilise the NINE forms of payment within your business.
Explain the procedures used for each form of payment.
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9.6 Types of" cheques
OBJECTIVES
By the end of this unit you
should be able to interpret
information on cheques.
To demonstrate that you can meet this section's objective you need to
be able to prepare cheques accurately. There are six main aspects of
cheques that you should be familiar with.
Open cheques
An open cheque is one that does not have a crossing. This is a
relatively unsafe way of making a payment. When you make out
an open cheque it can be endorsed by the receiver, who can sign
it over to a third person. Therefore, if an open cheque is stolen
there is the danger that the cheque might be signed over in favour
of a dishonest person. Open cheques are described as ' negotiable
instruments' - this refers to the fact that they can be used as a form
of money; the recipient simply signs the payment instrument over to
a third party.
know ... ?
l"o
st-datedcheques should
only be accepted when the
seller is sure that the person
drawing the cheque will be
able to honour the debt at the
time payment is due.
Post-dated cheques
When you want to purchase an item or make a payment so that your
account is debited at a later date, you can make out a post-dated
cheque. For example, a purchaser might make out a cheque for
31 December, which it hands over when it receives the goods on 1
December. The funds will only leave the account after 31 December.
You might make out a post-dated cheque if you are short of current
funds, or because you want to make sure that a good is delivered
to you in suitable condition before the payment is taken from your
account.
Certified/manager's cheques
This is a cheque signed by a bank manager or other senior officer in
a bank on behalf of one of its customers. The customer will ask for
a manager's cheque in order to purchase goods in situ ations where
the supplier wants a cast-iron guarantee that cheque payment
will be honoured. It is thus similar to the bank draft described in
U nit 9.5.
Counter cheques
A customer can ask for a cheque to be made up on their behalf at the
counter of their bank. Their account will only be debited when the
receiver of the cheque pays the cheque into a bank and the cheque is
sent on to the bank where the cheque was drawn.
In this way, a counter cheque is very similar to a bank draft. However,
with a bank draft the bank making out the draft immediately deducts
funds from its customer's account.
9 .6 Types of cheques 9
' Crossed cheques
A crossed cheque is a non-negotiable method of payment. The
crossing indicates that the sum shown on the cheque can only be paid
into a specific account.
You can see in Figure 9.6.1 an example of a crossed cheque. It
is non-negotiable and can only be paid into the account of Fred
Smith. The crossing means that the cheque cannot be endorsed (see
Endorsements below).
Date
Pay:
Fred Smith
The sum o!
I
or bearer
$300.00
Signature _ _ _ _ _ __
Figure 9.6.1 Non-negotiable crossed cheque
Endorsements
To endorse a cheque means to write a written instruction on the back
and sign it. For example, if Pearline Dean receives an open cheque
for $20.00, she could write on the back of it:
r
(""'
r
Key points
Cheques can be set out
in a number of different
ways, depending on
whether you want to
make it easier or safer
for the payee to cash the
cheque.
Open cheques enable
the payee to cash a
cheque or to pay it over
to someone else (by
endorsing it).
Crossed cheques
are safer methods of
payment. They can only
be paid into a named
account.
I endorse this cheque in favour of the Boot and Shoe Company.
The Boot and Shoe Company has effectively received a payment
worth $20.00 that it can deposit in its bank.
Activity
The purchasing department of Plastic Mouldings Ltd needs to make a
number of cheque payments on 1 January 2012. Plastic Mouldings Ltd
banks at the Standard and General Bank. The purchasing clerk's name
(the person making out the cheques) is Wilbur Smith. The bank manager at
Standard and General Bank is Gloria Harrison.
1 Make a cheque out for $50.00 to be paid to Plastic Supplies Ltd. The
cheque should be protected against theft.
2 Plastic Mouldings Ltd needs to pay the Office Furniture Company
$200.00. The Office Furniture Company requires a manager's cheque.
3 Plastic Mouldings Ltd needs to pay Sunny Window Cleaners $30.00.
Sunny Window Cleaners would like a cheque that is a negotiable
instrument.
-
9 9.7 Identification and interpretation of entries in a bank statement
Test yourself
1 What motive might a purchaser have for making out a post-dated
cheque?
2 A small business wants to purchase a car for business purposes. What
payment instrument might its bank supply it with, enabling the business
to purchase the car d irectly? Give TWO examples.
3 Star Insurance receives two cheques for $20.00 each. One of the
cheques is an open cheque and the other is a crossed cheque. Which
of these cheques can the business endorse, and why?
9. 7 Identification and interpretation of entries
in a bank statement
OBJECTIVES
By the end o f this un it yo u
should b e ab le to interp ret
e ntries in a bank statem ent.
In this section we show you how to read a bank account statement.
It is very important for an accounts clerk to be able to do this. One
of the jobs of an accounts clerk is to check that the bank statement is
accurate. Another task is to compare the statement with the records
of bank transactions that the accounts clerk should have posted to the
Standard Bank
Nevis
Business account statement
Account name: Nevis Car Radio Company
Account no:
11033325
Sort code:
321689
Starting balance:
Top credits
Government of Nevis
Nevis Exporting Company
Top debits
Nevis Machine Co.
Debits($)
Credits($)
$4,000.00
$2,500.00
$2,000.00
Transaction
Description
1 September
Opening balance
1 September
(Nevis Machine Co.) Cheque
123
2,000.00
1,000.00
3 September
(Nevis Electricity)
so
180.00
820.00
10 September
(Government of Nevis)
CT
11 September
Deposit
Cash
16 September
(Nevis Machine Co.) Cheque
124
23 September
(Nevis Exporting Company)
CT
30 September
Service charge
30 September
Interest received
Figure 9.7.1 Bank statement
Details
$3,000.00
Balance($)
3,000.00
4,000.00
4,820.00
12.50
4,832.50
4,632.50
200.00
2,500.00
12.00
7,132.50
7,120.50
10.00
7,130.50
9.7 Identification and interpretation of entries in a bank statement 9
cash book. An important point to remember is that the appearance of
debits and credits will be the opposite way round in a bank statement
(produced by the bank) from the way it appears in your own records
(the bank column of your cash book). We will return to that point in
Unit 9.8. Now let us look at the various entries in the bank statement.
Figure 9.7.1 is an example of a bank statement sent by Standard Bank
to the Nevis Car Radio Company (which manufactures car radios).
Reading the bank statement
• The bank statement shows the account number of the Nevis
Car Radio Company 11033325. The bank is able to recognise
this number for payments into and out of the account. This is
coupled with the sort code for the Nevis branch of 321689. These
two numbers combined (sort code and account number) enable
payments to be directed into Nevis Car Radio Company's account
at the Nevis branch of Standard Bank.
• The top credits and debits for the month of September show the
largest payments that went into the account (credits) and the
largest sums leaving the account (debits).
• The statement consists of debit entries, credit entries and the
balance on the account. A debit entry is one where money leaves
the account of Nevis Car Radio Company. For example, you
can see that the Nevis Car Radio Company buys machinery
from Nevis Machine Co. Nevis Car Radio Company pays two
cheques and the money leaves the account on 1 September and 16
September. The details column shows the number of the cheques
as printed in Nevis Car Radio Company's cheque book.
• The final column of the statement is the balance column. At the
start and finish the balance is shown. Each time a transaction is
made it will either increase the balance (credits) or decrease the
balance (debits).
• When Nevis Car Radio Company deposits cash into its bank
account this shows as a credit. You can see that $12.50 was
deposited on 11 September.
. • The statement is also debited when a standing order is taken from
the account. Nevis Car Radio Company pays its electricity bill by
standing order on the 3rd of the month. This is shown as 'SO' in
the details column. Standing orders are for regular payments on
regular dates. The bank will then send the funds electronically to
the electricity company's bank.
• Another type of entry shown is a credit transfer (CT). Two of the
largest credits have been received by credit transfer. This simply
means that payments have been made electronically into the
account on 10 and 23 September. In both cases this would have
been payment for car radios supplied.
• Finally, there are payments that need to be paid at the end of the
month. First of all the bank has a service charge to account users.
The service charge is for carrying out work for customers, such
-
-
9 9.8 Procedures for reconciling
as paying standing orders at regular intervals. Interest payments
are also included in the statement. Because Nevis Car Radio
Company has been in credit throughout the month it will earn
interest from the bank (credit). However, if the balance had been
negative in the statement then interest charges (debits) would
have been taken from the account.
Activity
You have been given the task of training a new accounts clerk who is
required to check the monthly statements. The new clerk has asked you the
following questions. What answers would you give on each case?
1 Is there always a new balance after every transaction?
2 If we pay the telephone bill by standing order will this appear as a debit
or credit on our bank statement?
3 Will we always receive interest on our business account?
4 When our business pays a cheque for purchases made, is this a debit or
a credit?
5 If I deposit cash at the bank, will this be counted as a credit or a debit?
r rr-,.. ,,,.,.,
Key points
An accounts clerk should
know how to check
a bank statement for
accuracy.
Debits and credits appear
the other way round in a
bank statement to the way
they are set out in a cash
book.
A bank statement shows
the details of transactions
and whether they are
debits or credits.
The bank statement
shows a running balance
(i.e. the balance is
updated after each
payment or receipt).
6 On 3 September the business bank account showed a balance of
$500.00. On 4 September we received a credit transfer into our account
from a customer for $250.50. On 5 September two standing orders are
paid by our company for electricity supplies ($124.00) and telephone
charges ($66.00). What would be the balance at the end of 4 September,
and what would the balance be at the end of 5 September?
Test yourself
1 Explain which of the following would appear as credits and which as
debits in the bank account of Michael Harrison, who runs a music shop.
a A cheque that Michael makes out to his landlord for $100.00.
b A withdrawal of $50.00 made by Michael from his account.
c A deposit of $200.00 that Michael makes into his account.
d A standing order that Michael makes out for his electricity bill of
$35.00 per month.
e A cheque that Michael receives from a customer for $112.00.
2 a In what circumstances would Michael be expected to pay interest on
his bank account?
b In what circumstances would he receive interest on his bank account?
9.8 Procedures for reconciling
OBJECTIVES
By the end of this unit you
should be able to reconcile
b ank and cash book
balances.
Businesses keep a record of cash and bank transactions in their
cash books. At the end of each period it is balanced off. When it
is balanced off it is usually standard practice for accounts clerks to
check the details in the cash book with those presented in the bank
statement (see U nit 9.7).
9.8 Procedures for reconciling 9
When this check is carried out, differences often appear between the
bank statement and the cash book records.
Therefore, a bank reconciliation statement is prepared to reconcile
(bring together and adjust where appropriate) the two balances. The
reconciliation may identify errors in the bank statement and/or the
cash book.
Reconciliation between the cash book and the bank state ment final
balance simply means explaining the differences.
Cash book (bank columns)
Bank reconciliation statement (explains the differences)
Bank statement
Case study Island Hotels' bank reconciliation statement
Island Hotels' cash book shows that the bank balance is $1000.00.
However, when it receives the bank statement it shows $1,565.00. What has
caused the difference?
First, Island Hotels has made out two cheques to suppliers: one for $250.00
(cheque no. 1847) and the other for $350.00 (cheque no. 1850). When
the cheques were issued, Island Hotels recorded these in its cash book.
However, the suppliers who received the cheques kept them for a short
while before putting them into their banks, so Island Hotels' bank has not
paid the cheques yet.
Another difference between the cash book and the bank statement is that
the bank has taken off a service charge ($15.00) and an interest payment
($20.00) for handling Island Hotels' account and lending it money. The bank
knew about these charges, but Island Hotels' account clerks had not had
time to record them (because when they made up the cash book entries
they had not received the statement).
Figure 9.8.1 shows Island Hotels' bank reconciliation statement.
Island Hotels PLC
Bank reconciliation statement as at 31 January 201 2
$
Balance at bank shown in cash book
$
1000.00
Add: Unpresented cheques
Cheque no:
1847
250.00
Cheque no:
1850
350.00
600.00
1600.00
Minus:
Service charge
15.00
Interest debited
20.00
35.00
Balance as per bank statement
1565.00
Figure 9.8.1 Bank reconciliation statement
Two sets of records
Every week Island Hotels pays money into its bank account, for
example, cheques received from customers and cash deposits. Island
9 9.8 Procedures for reconciling
HoteJs' accounts clerks aJso record these bank transactions in the
bank column of Island Hotels' cash book.
Every day the bank updates its records for Island HoteJs' bank
account.
Island Hotels' cash book
(records kept by the hotel's own
accounts clerks)
Island Hotels' bank statement
(records kept by bank clerks)
Money deposited at bank
recorded as a debit in cash
book.
When Island Hotels deposits
money this appears as a credit.
Money taken out of bank
recorded as a credit in the cash
book.
When money is taken out of the
its account it is recorded as a
debit.
AJthough you have two different sets of clerks keeping records of the
hotel's bank transactions, in theory the two accounts should balance.
In practice, there are often differences between these two sets of
records, mainly because of the timing of entries by the two sets
of clerks. We saw how this can arise in the case study above. For
example:
1 When Island Hotels makes out a cheque to a supplier, it will
record this as a credit in the cash book. However, if the supplier
takes time to put the cheque into its own bank account, the debit
will not appear in the bank statement until Jater on.
2 The bank charges the hotel service charges for managing the
account. The bank statement may enter these as debits before the
clerks in the hotel know how much they will have to pay.
3 The bank may have charged the hotel interest and the hotel is not
aware of these charges until it receives the bank statement.
What the reconciliation statement shows
It is very important for accounts clerks to carry out a reconciliation
at regular intervals, to compare the bank column of the cash book
with the bank account statement. They create what is referred to as a
'bank reconciliation statement'.
T he reconciliation statement should identify:
• any differences between the two accounts
• if any mistakes have been made in recording transactions.
T he two procedures for reconciling bank and cash balances are:
• reconciling the bank statement with cash book balances
• reconciling cash book balances with bank statements.
Preparing the reconciliation statement
You work in an accounts department and have been asked to
reconcile the most recent balance on your bank statement with the
9.8 Procedures for reconciling 9
most recent balance in the bank column of your cash book. This is
what you should do:
1 Tick off the items that appear in both the cash book and the bank
statement.
2 Enter the unticked items on your bank statement into the bank
columns of your cash book. This will bring your cash book up to
date.
3 Balance off the bank column of your cash book to find a revised
figure.
4 Any unticked items in your cash book are now due to timing
differences (i.e. the bank has no t recorded them in the statement they should appear in the next statement).
5 The items that are timing differences can be used to prepare your
bank reconciliation statement.
Carrying out the reconciliation
To illustrate how bank reconciliation works we will examine the bank
statement and cash book of Forest Industries at the end of May.
First, we look at the cash book, shown in Figure 9.8.2.
Cash book
Receipts
Date
Details
Payments
Bank($)
2012
Date
Details
Bank($)
2012
1 May
Balance b/d
800.00 ✓
2 May
St Johns 00438
70.00 ✓
4 May
Wilson PLC
230.00 ✓
2 May
Ali Ltd 00439
120.00 ✓
16 May
Singh Bros
380.00 ✓
2 May
Walter 00440
15.00
30 May
Majithia
60.00
3 May
4 Plus 00441
30.00
15 May
City Council SO
90.00 ✓
16 May
P. Prest 00442
50.00 ✓
20 May
Pete Co 00443
250.00 ✓
27 May
AY Insure SO
120.00✓
31 May
Balance c/d
725.00
1,470.Q0
31 May
Balance b/d
1 470.QQ
725.00
Figure 9.8.2 Cash book
Next, we need to look at the bank statement (shown in F igure 9.8.3)
in order to make a comparison.
-
9 9.8 Procedures for reconcil ing
Statement
Standard Bank
Forest Town
Guyana
Account:
Forest Industries
Account no:
01875899
Statement number: 35
Date:
Date
31 May 2012
Details
Debit($)
Credit($)
Balance($)
2011
800.00 ✓
1 May
Balance
7May
Cheque
8May
00438
70.00 ✓
960.00
9 May
00439
120.00 ✓
840.00
15 May
City Council (SO)
90.00 ✓
750.00
16 May
Cheque
18 May
00442
50.00 ✓
1,080.00
22 May
00443
250.00 ✓
830.00
27 May
AY Insure (SO)
120.00 ✓
710.00
31 May
Bank charges
20.00
690.00
230.00 ✓
380.00 ✓
1,030.00
1,130.00
Figure 9.8.3 Bank statement
Carrying out the reconciliation
1 Tick off the items that appear in both the cash book and the bank
statement. This has already been done in Figures 9.8.2 and 9.8.3.
2 'Correct' the cash book before preparing the bank reconciliation
statement. In this instance, the only item that is missing in the cash
book (bank a/c) is the bank charges. So we write these into the
cash book, as illustrated in Figure 9.8.4.
9.8 Procedures for reconciling 9
Cash book
Receipts
Details
Date
Payments
Bank($)
Date
Details
Bank($)
2012
2012
1 May
Balance b/d
800.00 ✓
2 May
St Johns 00438
70.00 ✓
4 May
Wilson PLC
230.00 ✓
2 May
Ali Ltd 00439
120.00 ✓
16 May
Singh Bros
380.00 ✓
2 May
Walter 00440
15.00
30 May
Majithia
60.00
3May
4 Plus 00441
30.00
15 May
City Council SO
90.00 ✓
16 May
P. Prest 00442
50.00 ✓
20 May
Pete Co 00443
250.00 ✓
27 May
AY Insure SO
120.00 ✓
31 May
Balance c/d
725.00
1,470.00
1,470.00
31 May
Balance b/d
725.00
31 May
Bank charges
20.00
31 May
Balance b/d
705.00
31 May
Balance c/d
705.00
Figure 9.8.4 Cash book
All the items in the bank statement have now been recorded in both
the statement and the cash book.
The difference between the $705.00 balance in the cash book and
the $690.00 balance in the bank statement is caused by the items that
have not been ticked off in the cash book.
3 The final task is to prepare the bank reconciliation statement (see
Figure 9.8.5).
Bank reconciliation statement as at 31 May 2012
$
Balance shown in the bank statement 690.00
Add item not credited (1)
+60.00 (receipt from Majithia)
750.00
Less cheques unpresented (2)
- 45.00 (cheques Walter and 4 Plus)
Corrected cash book balance
705.00
Figure 9.8.5 Bank reconciliation statement
The bank reconciliation statement can also be prepared by starting
with the 'corrected' cash book balance (see Figure 9.8.6).
-
9 9.8 Procedures for reconciling
Bank reconciliation statement as at 31 May 2012
$
Balance per cash book
705.00
Add cheques unpresented (2)
+45.00
750.00
Less item not credited (1)
- 60.00
Balance per bank statement
690.00
Figure 9.8.6 Bank reconciliation statement
It is worth summarising what you need to do to create a bank
reconciliation:
1 Open the bank statement and the cash book in front of you.
2 Tick off the items that appear in both sets of documents.
3 Correct your cash book to include items missing from the bank
statement.
4 Prepare your bank reconciliation statement.
Activity
You have received the following bank statement.
Statement
Uptown Bank
St Kitts
Account:
The Pastry Company
Account no:
01498373
Statement no: 12
Date:
Date
31 June 2012
Details
Debit($)
Credit($)
Balance($)
2012
1 June
Balance
5 June
Cheque
5 June
00174
50.00
1,050.00
7 June
00175
202.00
838.00
15 June
Electric Co. (SO)
20.00
818.00
18 June
Cheque
26 June
0176
34.00
996.00
31 June
Bank charges
20.00
976.00
31 June
Interest
900.00
200.00
212.00
2.00
1,100.00
1,030.00
974.00
Figure 9 .8.7
In order to carry out a reconciliation you will need to compare the bank
statement with your cash book entries in the bank column. Remember to
first tick off items that appear in both sets of records.
Here are the cash book entries:
9.8 Procedures for reconciling 9
Cash book
Payments
Receipts
Details
Date
Bank($)
Details
Date
Bank($)
2012
1 June
Balance
900.00
2 June
BBQ 00121
50.00
3 June
Naysmith Bros
200.00
4 June
Jones Ltd 00122
202.00
16 June
Smith Co.
212.00
15 June
Electric Co. (SO)
20.00
23 June
Plumb Co. 00123
34.00
29 June
XYPLC
50.00
30 June
Balance c/d
956.00
1,312.00
30 June
Balance b/d
Figure 9.8.8
1,312.00
956.00
Once you have ticked off the items, you should then build a reconciliation
statement.
Use both methods of calculating the reconciliation - first start with the
balance on the bank statement, then do another reconciliation, starting with
the balance in the cash book.
Test yourself
Key points
An accounts clerk should
be able to reconcile
balances in the bank
statement and cash book.
1 Define the term 'reconcile'.
2 State the difference between a cash book and a bani< statement.
3 The final accounts consists of three elements; name the elements.
Reconciliation makes it
possible to identify errors
that have been made.
It is important to identify
differences between bank
and cash book figures
resulting from the timing
of entries.
Check that items match
in the cash book and
bank statement by ticking
off items that appear in
the cash book and the
bank statement. Then
identify differences so
that you can carry out a
reconciliation.
-
-
9.9 Procedures for the payment and control of
petty cash using the imprest system
OBJECTIVES
By the end of this unit you
should be able to prepare
petty cash records.
Working in the accounts office you need to be able to prepare petty
cash records. First we explain a few important terms and then show
you how to prepare these records.
Imprest system
In all offices cash is required to pay for small items such as postage
stamps, to pay for a taxi or for other small expenditures. The cash will
need to be kept in a safe place, such as in a safety box locked away in
a drawer.
The term 'imprest' simply means a sum of money set aside for
specific purposes - in this case to make small cash payments. The
imprest will be given by the chief cashier to the person in the office
responsible for petty cash. The cashier given this responsibility has to
record all entries in a petty cash book.
Petty cash vouchers
The first set of records that the cashier handling the imprest makes
are petty cash vouchers. Each time the cashier takes money from the
cash box for an expenditure, he or she must record this on a petty
cash voucher. This shows how the money has been spent.
Case study Gloria's first cash vouchers
Gloria Dean has been given responsibility for her company's imprest. She
has been given an imprest of $100.00, which she keeps in a safe box. On
the first day after receiving the imprest, the office manager (Eric Choi) asked
her to buy a jar of coffee and some milk and sugar for entertaining guests.
The cost of these items was $4.50.
Gloria made out the following petty cash voucher.
West Indies Trading Company
Port of Spain
Date: 1 July
Petty cash voucher no: 1
Required for:
Office coffee, milk and sugar
Received by:
Gloria Dean
Authorised _by:
Eric Choi
$4.50
Two days later, Eric asked Gloria to order him a taxi for a business meeting
and pay for it by petty cash. The cost of the taxi was $10.00.
Finally, at the end of the week, Gloria was asked by the post clerk if
she could have some money to buy $10.00 worth of stamps. This was
authorised by Eric Choi.
Gloria then entered these transactions in her petty cash book using the
petty cash vouchers that she had issued that week.
The petty cash book in shown in Figure 9.9.1.
9.9 Procedures for the payment and control of petty cash using the imprest system 9
Petty cash book
er
dr
Voucher
no.
Totals
Stationery
Postage
Travel
($)
($)
·($)
($)
Coffee, milk,
sugar
1
4.50
3 July
Taxi
2
10.00
5 July
Postage
stamps
3
10.00
10.00
24.50
10.00
Cash
received ($)
Date
Details
100.00
1 July
Cash
imprest
1 July
Sundries($)
4.50
10.00
10.00
4.50
75.50
Balance c/d
Figure 9.9.1 Petty cash book
At the start of the next week the chief cash ier would give Gloria $24.50 to
make the imprest back up to $ 100.
You can see from the petty cash book that:
•
•
•
•
•
The first column shows the imprest at the start of each period.
The second column shows dates when expendftures took place.
The third column gives a description of the item.
The fourth column g ives the voucher number.
The fifth column is used for adding up the total cash taken from the
imprest. All the clerk needs to do at the end of the week is to add up the
total of this column to find out how much cash has left the imprest. At the
end of the week the total column is added up to see how much has been
taken from the imprest ($24.50). This sum will need to be made up at the
start of the next week.
• The final four columns analyse the different types of expenditure.
~ctivity
1 Copy out the petty cash book shown below, which has been made out by Jerome. Explain to a fellow student
what the entries show.
Petty cash book
er
. dr
Voucher
no.
Totals
Coffee
24
5.00
Stamps
25
15.00
Cash
received ($)
Date
Details
200.00
1 Feb
Cash
2 Feb
2 Feb
($)
Travel($)
Postage
Coffee
Sundries
($)
($)
($)
5.00
15.00
-
9 9.9 Procedures for the payment and control of petty cash using the imprest system
2 Fill in the following entries for the rest of the week a nd balance off the
cash book.
• 3 February
• 4 February
• 4 February
• 6 February
Cash of $10.00 taken out for taxi fare
Cash of $5.00 taken out for postage
Cash of $7.50 taken out for stationery
Cash of $5.00 taken out for taxi fare
Cash disbursement sheets
As an alternative to entering details of petty cash into a petty
cash book, they may be set out onto a disbursement sheet. To
disburse simply means to pay out money. Figure 9.9.2 shows a cash
disbursement sheet for a small company. It records payments from
the imprest during the period of one week. The left-hand column
shows the details and date, the middle column shows the voucher
number and the final column the amount of the disbursement.
Cash disbursement sheet
No:
23
Date: For period 5 to 12 August
Description
Reference no.
Amount($)
Postage (5.8.2012)
V1245
23.00
Postage (6.8.2012)
V1246
15.00
Stationery (1 1.8.2012)
V1247
50.75
Total:
88.75
Figure 9.9.2 Cash disbursement sheet
The disbursement sheet can thus be used:
• as a record of cash payments
• to identify how much needs to be returned into the cash imprest.
Summarising expenses
The cash book and cash disbursement sheets both provide a quick
way of summarising expenses. The cash book, with its analysis
columns (separate headings for different types of expenses), makes
it possible to see how much money is spent on different types of
expenses (e.g. post, stationery) and how much is being spent in total
(total column).
Activity
Ramneek is preparing her cash book. She has started to set out the details (see below).
1 Put the correct figures in the analysis columns and provide total figures o f cash expenses.
2 Find out by how much the imprest should be made up at the end of the week.
'
9.9 Procedures for the payment and control of petty cash using the imprest system 9
Details known to Ramneek:
• Voucher743 = $18
• Voucher744 = $22
• Voucher745 = $10
• Voucher 746 = $3.00
• Voucher 749 = $20.00
• Two taxi fares = $10 each
Petty cash book
dr
er
Cash
received ($)
Date
(2012)
Details
Voucher
no.
Totals
Stationery
Postage
Travel
Sundries
($)
($)
($)
($)
($)
Cash
100.00
1 March
Office
paper
743
2 March
Cleaning
materials
744
3 March
Ottice
envelopes
745
4 March
Stamps
746
4 March
Taxi fare
747
5 March
Taxi fare
748
6 March
Office
paper
749
(
Key points
An imprest is a sum of
money that is kept aside for
making specific purchases.
A cashier handling the
imprest makes out vouchers
each time they take money
from the cash imprest.
Test yourself
1 What are the following statements definitions of?
a A sum of money set aside for a specific purpose.
b A record setting out individual payments made using petty cash.
c A record book showing details of sums of money taken out of the
imprest.
d A sheet showing small sums of money paid out of petty cash.
e A sum of money paid out of petty cash.
2 Describe the imprest system in your own words.
The sums corresponding
to the vouchers should be
entered into the petty cash
book.
On a regular basis it is
important to check that
the vouchers correspond
with entries in the cash
book, and that the sum
remaining in the cash
imprest is as it should be.
-
End-of-unit multiple-choice - Unit 9 ·
1
5
A
Which of the following facilitates the transfer of
money from one bank account to another without the
use of cheques?
A
Standing order
B
Credit transfer
C
Bank draft
D
Letter of credit
A bank reconciliation statement reconciles
differences between:
The cash column in the cash book and the bank
column
B
The cash column in the cash book and the bank
statement
C The bank column in .the cash book and the bank
statement
D The bank statement and invoices made out by
the company
2
Which of the following shows a summary of all the
transactions of a bank account?
A
Bank account
Which of the following records will a cashier handling
a cash imprest make out when disbursing cash?
B
Bank overdraft
A
Pretty cash vouchers
C
Bank draft
B
Standing orders
D
Bank statement
C A starting imprest
6
D
3
If a firm wishes to pay its many workers using just
one payment from its account, which of the following
bank services will it use?
A
Credit transfer
B
Direct debit
C
Standing order
D
Money order
Structured questions
1
George Jessop works for a basic pay of $1,500.00.
He had an overtime pay of $280.00. His deductions
are tax ($260.00), National Insurance ($50.00) and
union dues ($15.00).
·
A
4
Depositor
B
Drawer
C
Drawee
D
Payee
Prepare a pay slip for George for September
2012.
Whic h of the following is the bank on which the
cheque is drawn?
A
Cheques, notes and coins
B
Prepare a cheque for George using the above
information.
2
Why is it important for a business to reconcile its
accounts?
3
A
B
Define the term 'reconcile'.
State the difference between a cash book and a
bank statement.
10
Procurement and inventory
management
10.1 Purchasing functions
OBJECTIVES
What items to purchase?
By the end of this unit you
should be able to describe
the work of the purchasing
office.
Large organisatio ns will have a specialist purchasing office, with
1'esponsibility for buying items that an organisation needs.
. There are two main types of items that will be purchased:
• Items that the business purchases to keep: These are referred to
as capital items. For example, if you were going to set up a small
clothes shop you would need a cash till, display shelves, some
furn iture, a business co mputer, and perhaps a van for collecting
some of your stock. These items are referred to as the fixed assets
of the business.
·
• Items that the business buys to resell: In Unit 9.2 we mentioned
that a company makes a profit by buying items at a lower price and
then selling them at a higher price.
It is the job of the buying office to buy in stock that customers will
want to buy, and to buy it at a price that enables the business to make
a profit.
Activity
Think about a clothes shop
that you have used to buy
fashionable clothes. What
items did you notice that
could be regarded as
'statement items' and which
ones were 'stock items'? In
your view, do you think that
the purchasing manager or
buyer had achieved a good
combination of the two types
of item in the store?
The person who is responsible for choosing what items to purchase is
called the purchasing manager o r buyer.
Case study A fashion shop
In a fashion shop, skilful buying will involve purchasing two main types of
items:
• Statement items: These are not necessarily the best-selling items, but
they draw customers into the shop. They are usually displayed in the
shop window, for example, a dress designed by a leading designer.
• Stock items: These are items that are expected to sell in large
numbers. They need to meet most customers' expectations, for
example, this season's must-have pair of shoes.
The timing of purchases is very important. When items are purchased
and delivered they will then either be held in stock or put on display.
In U nit 10.5 you will read abo ut the impo rtance of stock control. The
skilled buyer is able to buy in stock just in time to sell, so that stocks
are never too high. The skilled buyer also needs to make sure that
there is not a shortage of stock so that custo mers look e lsewhere.
Skilled buyers are very selective in choosing suppliers. They will look
for suppliers who are reliable and who can supply quality stock, at
reasonable prices, at the right time.
1O 10.1 Purchasing functions
Relationships with other departments
The purchasing department interacts with the following departments.
Sales
Where goods are being bought to be resold, there needs to be 'very
close communication between purchasing and sales to make sure
that the right goods are ordered. The sales department will inform
purchasing about what goods are selling well.
Accounts
Purchases made by the purchasing department need to be recorded
in the purchases day book and purchase ledger. The same is true of
purchase returns. Order forms made out by purchasing should be
passed on to accounts for payment.
Production
In a manufacturing company, purchasing is responsible for buying in
the raw materials and components, as well as assets such as machinery.
Warehouse and stores
Careful checks must be kept on the stocks of items held in store.
Marketing
Marketing will carry out market research to find out about customers'
current and future requirements. This information will be passed on
to sales and purchasing in order to buy in the right goods and raw
materials to meet customer requirements.
Terminology and abbreviations used in purchasing
If you are going to work in a purchasing office, or work closely
with the purchasing office, you need to be familiar with a number
of important terms associated with purchasing. The terms in Table
10.1.1 are likely to appear on quotations that a company receives
when it seeks to purchase goods from a supplier.
Term or
abbreviation
Exam tip
Make sure that you can
explain different terms
and abbreviations used in
purchasing documents (e.g.
FOB, CIF, CWO, FAS, COD) .
m
Definition
FOB
Free on board. The price that the purchaser pays for goods is
the price at the point at which the goods are loaded on to the
final delivery vehicle. The purchaser will then have to pay the
airline, shipping company or road haulier for the final journey, in
addition to the price of the goods.
CIF
Cost, insurance and freight. The price quoted (and paid)
includes the insurance and transport charges. (Note: the term
CF would not include insurance.)
10.1 Purchasing functions 10
Definition
Term or
abbreviation
E&OE
Errors and omissions excepted. This term appears on many
purchasing and sales documents. It states that if any mistakes
have been made in compiling these documents, or if anything
has been left out, it can be put right later.
COD
Cash on delivery. When the goods ordered are delivered they
must be paid for immediately or the carrier may not release the
goods to the purchaser. COD would be used when supplying to
new customers or unreliable payers.
Ex works
Here the price quoted is the price of goods at the supplier's
premises. All other costs, such as transport and insurance, will
have to be paid by the purchaser.
Discounts
Discounts are taken away from prices quoted for goods. They
are usually offered on a percentage basis. There are several
types of discounts that you need to be familiar with:
Cash discount is given for paying promptly. For example, a cash
discount of 2.5% might be given for paying within seven days.
Trade discount is offered to traders who deal regularly with
the supplier. For example, builders who buy from a builder's
merchant selling building materials.
Bulk or quantity discount is given on large orders .
Loyalty discount is given to regular customers.
("'
cwo
Cash with order. Payment must be made with orders for goods
and services. These terms may be used when dealing with a
customer for the first time.
VAT
Value added tax. The buyer is required to pay the sale price
plus the sales tax levied by the government. VAT w ill be a
percentage of the sale price.
FAS
Free alongside ship. The seller bears the cost to deliver the goods
to the dock (alongside ship). The buyer pays all the costs related to
loading the goods, insurance charges and freight charges.
Ex ship
The seller pays all the costs of shipping up to the port of arrival.
Table 10.1.1 Terminology and abbreviations used in purchasing documents and
Key points
The purchasing office
purchases items that are
retained in a business
and items that are resold.
The buyer or purchasing
manager is responsible
for making purchases.
The purchasing
department interacts with
many other departments,
including sales, accounts,
production, stores and
marketing.
Abbreviations are used in
purchasing to show how
the price of items has
been calculated.
literature
Activity
The Plumber's Yard is a large warehouse selling plumbing equipment to
p lumbers. Plumbers can either phone in an order, send it by mail or visit the
warehouse in person.
1 What sort of discount would The Plumber's Yard offer to each of the
following?
a
Regular, reliable customers
b Customers who pay promptly
c Customers who buy large quantities of plumbing equipment
2 Everton asked The Plumber's Yard for a quote to supply bathroom
equipment. When he received the quotation it said that the prices
charged were 'ex works'. Explain what this means.
3 Everton phoned a rival plumbing company for a quote and they told him
that the prices they charge are FOB and they would accept payment
COD. Explain what this means.
-
10 10.2 Duties of a purchasing clerk
Test yourself
1 Identify the TWO types of items that can be purchased by a business.
2 Discuss TWO dep artments within a business that the purchasing
department should have a good relationship with.
3 a Identify TWO terms used by the purchasing department. Define both
terms.
b Identify TWO situations in which these terms will be put into use.
4 Discuss the main role of the purchasing department and its importance
to an organisation.
5 Discuss the importance of time in purchasing stock for the purchasing
department.
10.2 Duties of a purchasing clerk
OBJECTIVES
By the end of this unit you
should be able to identify the
d uties and responsibilities
of a clerk in the purchasing
department.
A purchasing clerk will carry out the following duties:
• preparing and processing purchase requisitions
• filing of purchasing records
• maintaining stock records
• maintaining a database of suppliers
• verifying orders made.
Preparing and processing purchase requisitions
Exam tip
Make sure that you
understand that a purchase
requisition is a requisition
made by a department within
an organisation, requesting
the purchasing department
to make out an order on their
behalf.
A purchase requisition is a request to purchase certain items. It
is made out by the department of an organisation that wishes to
make these purchases. For example, the maintenance department
in a fact01y might require some essential tools. So maintenance
fills in a purchase requisition, which it passes on to the purchasing
department. The purchase requisition will contain a description
of the goods required, the number of goods wanted, a required
delivery date, an account number (of the services department) and
the amount the purchasing department is authorised to spend on
making the purchase. Note that a purchase requisition form is not an
order form. The actual ordering will be carried out by the purch asing
clerk.
Department (e.g. maintenance) fills in purchasing requisition
! Sends to purchasing
Purchasing clerk processes the request using the details on the
requisition form. T hen creates an order.
t
Copies of order sent to supplier, another copy to accounts, and
another copy kept in purchasing clerk's files.
10.2 Duties of a purchasing clerk 10
Filing of purchasing records
The purchasing clerk will keep records of all purchases made. The
files will contain copies of requisition forms, order forms, invoices
supplied when goods are delivered, and statements from suppliers.
While the principal function of purchasing is to take responsibility for
supplies coming into the business, purchase office clerks should also
take responsibility for keeping records of purchasing transactions.
Keeping detailed pape1work enables checks to be made at a later
date. Typically, paper copies are filed in a filing cabinet, split up into
sections. Filing may be by date order, by types of purchase, or by
departments making purchase requisitions.
Increasingly, these records are filed in computer records. Using
computer records makes it much easier to make cross-references
between purchases made (e.g. checking on the date of purchase, the
purchase order number, the department making the requisition, the
supplier).
Maintaining stock records
Stock control is often a function of the wider purchasing department,
although it may be part of a separate function referred to as.stores
or warehouse. In Unit 10.5 we will look at stock control in more
detail. Purchasing records will indicate how much of given items are
in stock. Records then need to be kept of when stocks are used up.
When we subtract stocks used from the starting stock and stocks
purchased in a particular period, we should have an accurate record
of how much stock remains in store.
Maintaining a database of suppliers
A database is a store of files and records set up for a particular
purpose. The purpose of keeping a database of suppliers is to be
able to call up details, including addresses, phone numbers, email
addresses, account numbers, details of a contact person, as well as the
type of stock held by that supplier. You can customise the database to
include specific information that is helpful to your firm, such as which
suppliers offer discounts and how much, what sort of payment terms
are typical, and how reliable the supplier is.
Verifying orders received
When orders are received they need to be checked. Every company
must have a clear policy about the receipt of orders, including who is
responsible for receiving them, checking them and signing for them.
When orders are received they should be checked immediately by
the department that filled in the original requisition form, to check
that they are as expected. They will then pass on this information to
the purchasing department, which will compare the details of goods
-
10 10.3 Factors influencing procedures
received with the original order. These records can then be created
and sto red. Where mistakes are made or supplies are damaged, the
su.pplier must be informed straight away. Where appropriate the
supplier will then send a credit note to cover damages and so on.
Test yourself
Key points
A purchasing clerk
produces documef'lts and
records associated with
purchases made by a
company.
1 Explain TWO duties a purchasing clerk is expected to perform.
2 Identify THREE aspects of a purchase order that are determined by a
purchase requisition form.
3 Discuss TWO reasons why a purchase recquisition form is not
considered an order form.
4 Identify TWO types of forms that are kept in the records of the
purchasing department.
The documents include
those made for ordering
goods.
5 Identify TWO classifications of filing that can be used by the purchasing
department in the filing of its records.
These documents should
then be filed accurately.
6 Explain the processes that are used for verifying purchase orders that
have been received by a business.
The purchasing clerk
must keep records of
stocks and of suppliers'
names and addresses.
7 You are the secretary of the manager of the marketing department at
Wendell Publishing. Stationery is ordered on a monthly basis and, as
such, is ordered for the whole department. The manager requires the
following stationery to facilitate her day-to-day activities: one bottle of
correction fluid; one ream of A4 paper; one ledger book; three black
ink and two red ink pens. She submits her request to you. You have
taken the following order from the other members of staff: nine bottles
of correction fluid; 18 reams of A4 paper; four reams of AS paper; five
packs of C5/7 paper; two packs C4 paper; one stapler.
a Identify THREE steps that should be taken to fill the order.
b Identify ONE department that is involved in this transaction.
c Prepare a purchase requisition form and an order form for the
stationery.
d Suggest TWO steps that should be taken by the secretary when the
stationery arrives.
10.3 Factors influencing procedures
OBJECTIVES
By the end of this unit you
should be able to outline
procedures for purchasing
goods and acquiring
services.
-
Factors influencing the selection of procedures
How the purchasing department goes about ordering goods and
services depehds on the following three main factors.
Urgency
When supplies are required urgently, the purchasing department may
use the first available supplier, or one from their database that they
know can supply reliably and quickly. Rather than going through the
detailed processes involved in waiting for a requisition, then looking
through a variety of catalogues, asking companies to tender fo r a
10.3 Factors influencing procedures 10
contract, and other procedures, the purchasing department may
simply make a phone call to a supplier requesting urgent delivery.
Cost
Purchasing can be a costly a nd time-consuming business. A high
cost is worth it when the supplies are crucial to the success of a
business. For example, when a hotel company is looking for a taxi
business to provide an approved service, bringing guests _to and
from the hotel, it may seek tenders from rival companies. It will
want to look at the prices charged by rival companies, but also at
quality of service, a nd the presentation of the drivers and cars.
When the hotel wants to buy new beds, tables and chairs for its
rooms, it will want to look around for a supplier that can provide
furniture in keeping with the status of the hotel. To purchase high
quality, you would expect to have a more costly purchasing process.
If anything will do, the purchasing process will be much quicker and
costs will be lower.
Durability
In purchasing supplies it is important to evaluate the durability of the
stores being ordered, that is, how long they will keep for. Although
some supplies may be more costly, they may be more desirable
because they retain their value for a longer period of time.
Procedures for purchasing
There are a number of procedures to follow in purchasing goods,
seryices and stores.
Use of catalogues
Ma ny companies that supply to the trade (i.e. to o ther companies)
make substantial sales through the use of catalogues. A catalogue
is a book (usually paper-covered). It is split up into sections
for different product categories ( e.g. office furni ture, office
stationery, filing cabinets). Each page will contain photographs
or descriptions of items for sale. Each item will have a reference
number to simplify the o rdering process (e.g. catalogue no. OS24) .
An o rder form will be supplied with the catalogue. The order form
will list the products for sale, typically in the order they appear in
the catalogue and/or by catalogue numbe r. Catalogues are very
helpful for purchasing a nd should be kept in a safe place. If the
supplier does not a utomatically supply up-to-date_catalogues, you
should request them. Make sure that you have e nough copies of
the order form. Also, keep the supplier's telephone number in a
prominent place (perhaps in your database of contacts). Make
sure that you have ca talogues for all the items you are likely to
order.
-
10 10.3 Factors influencing procedures
Consulting price lists
You should not always buy
from the lowest-cost supplier.
Also consider the quality of
the purchase and the speed
and timing of delivery.
A price list simply sets out the identification number of a product, a
brief title describing the good, and the price (see Table 10.3.1). (Note:
discounts may be offered on some items for bulk purchases.)
Catalogue
no.
Description
Current price
per Item($)
Discount for
purchases over $100
Cat. no.
1785
White photocopying
paper
2.00 per
packet
10%
Cat. no.
1786
Yellow photocopying
paper
2.20 per
packet
10%
Cat. no.
1787
Grey photocopying
paper
2.25 per
packet
10%
Table 10.3 .1 Price list
The purpose of the price list is:
• to make it easy for customers to order - all the important
information for filling in an order form is located in one easy-toread document
• to enable suppliers to regularly update prices, by sending out a
new price list rather than reprinting the whole catalogue, which
will be expensive.
When using a price list, check carefully that you have recorded
the correct identification number when filling in your order form.
Compare the prices offered by one firm with those offered by another
and take into account the discount offered.
Issuing tenders
Part of the work of purchasing may be to issue tenders to prospective
suppliers. Rather than give a supply contract to a chosen supplier,
it often makes sense to ask prospective suppliers to tender for a
contract. Usually a selected number of suppliers are asked to tender
for the contract. They will be told the conditions, such as when
supplies need to be provided by, what quantities are required and
what sort of quality is wanted.
Rival contractors then put in their tenders by a certain date. The
purchasing department must then choose between the rival tenders
(bids). There are a number of criteria to bear in mind when deciding
which t~nder to accept:
• How quickly can the supplies be provided? Are there guarantees
associated with meeting deadline days?
• What is the price at which the supplier puts in their bid ? If cost is
a major factor, you might want to choose the lowest-cost supplier.
• What is the quality of the supplies and are there additional extras,
such as the supplier guaranteeing to pay transport costs?
10.3 Factors influencing procedures 10
Quotations
When purchasing expensive supplies or when seeking regular
supplies, it is a good idea to ask the supplier to send you a quotation
first. A quotation is an offer by the seller to provide goods and/or
services. The quotation will set out the prices and terms at which
goods will be supplied. Figure 10.3.1 is an example of a quotation by
a cosmetics supplier.
Colourful Cosmetics PLC
5 Silver Road
Bridgetown
Telephone: 07897625
Quotations: To
18 April 2012
Woodfield Stores
12 Hall Road
Bridgetown
Dear Sir/Madam
Following your enquiry of 12 March, we are able to provide you with the following
quote. I also include a copy of our current catalogue and price list. Please
contact me at the phone number above if you require further details.
Description
Welhair shampoo: normal
Catalogue no.
Price($)
03421
3.20 per dozen
dry
03422
3.10 per dozen
greasy
03423
3.00 per dozen
Bath salts
A4210
2.15 per dozen
Luxury soap
B1010
1 .88 per dozen
Delivery:
Carriage paid 10 days from receipt of order
Terms:
2.5% 30 days
R. Thomas
Sales manager
Figure 10.3.1 Quotation
In reading the order form, you can see how much the goods are being
quoted at. You can also see that the transport cost will be paid by the
seller (Colourful Cosmetics PLC). The terms '2.5% 30 days' states
that if the buyer (Woodfield Stores) pays within 30 days, 2.5 per cent
will be deducted from the invoice price.
Using e-commerce
Nowadays a lot of purchasing takes place online. Therefore, the
purchasing department can search o n the internet to find suitable
suppliers. There are many advantages to purchasing online:
• Usually you can see the goods that you are buying in display pictures.
• You can choose from a wider variety of suppliers, each with its
own commercial website.
• The cost is usually lower because suppliers do not have to have
expensive premises to display their stock.
• Rapid contact can be made through email.
-
10 .10.3 Factors influencing procedures
When you purchase online from another business, this is referred
to as a B2B transaction (business-to-business). This contrasts with a
B2C transaction (business-to-consumer).
Another advantage of B2B onJine purchasing is that you have access
to suppliers across the globe. For example, the website Ali Baba is
a Chinese website that brings suppliers from across the globe into
contact with potentially millions of business customers.
Activity
Wilbur has the responsibility for purchasing in a small sportswear business
- Top Sports. Explain what you think would be the best purchasing
procedures to follow in these situations.
1 The company wants to hire the services of an advertising agency to do
some promotional work to make Top Sports better known. Wilbur wants
to contract an advertising agency that can do the work to a good quality
at a competitive price.
2 Top Sports is seeking to purchase some fashionable trainers from
overseas suppliers to act as statement items to attract customers into
the shop.
(
(
Key points
The choice of procedures
for purchasing depends
on the urgency with which
goods and services are
needed and their cost.
There are a number of
suitable procedures for
purchasing goods.
Goods can be purchased
from catalogues.
The purchasing clerk will
look at prices in price lists
and make tenders for
goods selected.
A quotation is the
supplier's offer for sale
of goods, showing
the prices they will
charge and the terms of
transactions.
Today many goods are
viewed and purchased
electronically by viewing a
website.
3 Wilbur wants to have information about the prices being offered by a
particular supplier.
4 Top Sports wants to have the details, including pictures, of the range of
items being sold by a sports manufacturer.
System of measurement
It is important to be aware of ways in which goods are measured
when placing orders. For example, when buying quantities of liquid
the order will typically be for litres. When ordering physical goods the
order will be in terms of the number of units required or by weight
(e.g. kilograms). It is very important for these measurements to be
accurate. For example, there is a considerable difference between
ordering 1,000 centimetres of cloth and 1,000 metres of cloth.
Test yourself
1 Examine the TWO main factors that determine what the purchasing
department considers before placing orders.
2 Identify TWO sources that can be used for finding goods and services.
3 Define 'e-commerce'.
4 Discuss TWO benefits of e-commerce.
5 E-commerce is a fast-growing industry. Using the internet, find and
discuss two popular sites that engage in this industry. Examine TWO
reasons why they are successful.
OBJECTIVES
By the end of this unit you
should be able to prepare
documents used in the
purchase of goods and
services.
You need to be able to prepare purchasing documents as well as to be
able to explain the information that appears on them. There are two
main types of purchasing documents, which are both ve1y simple in
layout:
• order forms (sent to external suppliers)
• requisition forms (sent internally within a business).
They need to be filled in ve1y accurately because it is essential to get
the right supplies, on time, and to eliminate mistakes.
Order forms
Essentially there are two main types of order forms:
• order forms produced by a supplier and sent out with catalogues
and price lists
• order forms produced by a business to request supplies from
suppliers.
Whatever the type of order form, the basic principles are the same.
On an order form you need to specify:
• where you want goods delivered to
• when you want them by
• the description of the goods
• catalogue numbers
• the quantity you want
• the prices you expect to pay, if you have been quoted prices.
Figure 10.4.1 shows what an order form would look like. It shows an
order for cosmetics made out by Woodfield Stores in response to the
quotation sent out on 18 April (see Unit 10.3). The order form is one
that is produced by Woodfield Stores, rather than one supplied by the
vendor (seller).
Activity
You have received a quotation from Tropical Fruit Juices (Sea Breezes
Avenue, Aruba) to supply your hotel (Island Bay Hotel, St Kitts) with a range
of bottled tropical fruit drinks. A summary of the quotation is:
• No. 184
Mango juice
$25.00 for 10
• No. 185
Pineapple juice
$30.00 for 10
• No. 186
Guava and apricot juice
$35.00 for 10
• No. 187
Coconut juice
$40.00 for 10
• No. 188
Mixed tropical fruit flavours
$45.00 for 10
The terms offered by Tropical Fruit Juices is 10 per cent discount for orders
over $200.00, provided that they are paid within 14 days. Terms are CIF.
Make out an order form for 200 bottles each of mango, pineapple, and
guava and apricot juice; 20 bottles of coconut juice; and 300 bottles of
mixed tropical fruit flavours.
,I
10 10.4 Preparation and interpretation of purchasing forms
Woodfield Stores
12 Hall Road
Bridgetown
Exam tip
You should know the
difference between an
order form and a requisition
form. When a department
in an organisation requires
fresh supplies of materials
or services, it will fill in a
purchase requisition form,
which is a request for these
materials or services to
be ordered (usually by the
purchasing department) . The
purchase order is a formal
request (order) for materials
or supplies sent (usually by
the purchasing department)
to an outside verdor.
30 April 2012
Tel: 894389
Order No 598
Colourful Cosmetics PLC
5 Silver Road
Bridgetown
To:
Description
Price($)
Catalogue number
Quantity
03421
48
Welhair shampoo for
normal hair
153.60
A4210
24
Bath salts
51 .60
B1010
12
Luxury soap
22.56
Total:
227.76
Please deliver the order to the above address
Terms agreed: 5% cash discount within one week
Delivery:
Carriage paid
Tarun Panwar
Purchasing clerk
Figure 10.4.1 Order form
Requisition forms
A requisition form is used to order stocks internally within a business.
Typical examples of requisitions will be for:
·
• supplies of stationery
• supplies of computer and photocopying materials, such as a new
printer cartridge
• supplies of furniture and hardware, such as a computer or desk.
The requisition may be made to a central store that holds supplies
(e.g. stationery in a stationery cupboard).
Sometimes the requisition is for supplies that have run out in the
stores, in which case purchase clerks will have to make out an order
to get new supplies in from outside the organisation. Where the
requisition is to purchase from outside the organisation, it is referred
to as a purchase requisition.
Organisations will print their own requisition forms. These forms will
be kept by staff in the various departments of an organisation (e.g.
accounts, sales).
In the past, many requisition forms were handwritten. However, in
most modern organisations the requisition will involve a computerbased requisition using a standard form. It is much quicker to use.
computer-generated requisition forms, which also provide records
that are safely stored.
10.4 Preparation and interpretation of purchaLg forms 10
/
/
Activity
The chief accountant has asked Janice to talk to everybody in the accounts
department to identify what new stationery stores they require. This
information has been entered into a requisition form, which will be sent to
office stores. This is what the requisition looked like:
Stationery requisition:
No. 753
From: Accounts department
To:
Stationery stores
Quantity
Description
10
Cash books
30
Reams of white A4 paper .
5
Boxes of pens·
Signed : A. Major
(Chief accountant)
Date: 25 May 2012
Make out another requisition form, requesting the following stationery from
the stationery store:
• five reams of accounts department letter-headed A4 paper
• two boxes of photocopying paper
'-'
• two new printer cartridges for a Hewlett Packard printer 4050N
• two boxes of coloured highlighter pens.
(
Key points
A purchase clerk can
order goods by filling in
an order or requisition
form .
The purchase clerk needs
to specify details of what
goods they want, when
they are required, at
what price, and in what
quantities.
A requisition form is
similar to an order form,
but is used internally to
requisition stocks.
Test yourself
Assume that you work in the purc hasing department of Globe Trading Ltd.
You received the following requisition from the accounts department.
Purchase requisition
To: _ _ __ _ __ _ _ _ _ _ _ _ Date: _ _ __ _
Quantity
Description
Catalogue no.
Unit price ($)
6
Reams letter-sized paper
001
750.00
3
Reams legal-sized paper
002
900.00
2
Packs paper clips
003
250.00
2
Boxes folder jacket (legal)
box
004
600.00
2
Boxes folder jacket (letter)
box
005
900.00
Remarks: _ __ _ _ _ __ _ _ Signature: _ __ _ _ _ __
1 Explain the difference between an order form and a requisition form .
2 Use the requisition inforri:iation above to complete an order form like the
example in Figure 10.4.1.
-
10.5 Importance of stock control
OBJECTIVES
By the end of this unit you
should be able to explain the
importance of stock control.
What are stocks?
Stocks are current assets that a business holds for the purpose of
selling or for reprocessing. For example, a business may hold stocks
of finished goods, or partly finished goods that it is still processing. It
also holds stocks of consumables (i.e. raw materials, such as rolls of
cloth for dressmaking).
Did you know ... ?
In medium to large
companies today, much of
the labour-intensive work
of checking on stocks is
reduced by automatic entry of
stock data into computerised
packages that give a readout
of the numbers of items in
stock and the value of stock
at any moment in time.
What are inventories?
Inventories are goods and raw materials that are held in stock,
waiting to be sold.
What is stock control?
Stock control is the management of inventories. If a business has
too many goods in stock then it can waste money (because its money
is tied up in the stock). If it has too little in stock the company may
not have the required items at the right time to meet the needs of
customers. Therefore, stock control is concerned with having just the
right amount of stock. It is also concerned with minimising the cost
of holding stock. The business that holds too much stock is tying up
money that might be better used doing something else.
A business may have too high stock levels as a result of holding stock
that has become obsolete. Obsolete stock is not usable because it is
out of date. For example, a company may hold printer carbon ribbons
for printers that it no longer uses. At some stage, these need to be
written off in the accounts and disposed of. Excess stock may also
arise when the demand for a company's products falls.
Careful stock management should be a structured process. New stock
should be reordered when it is required, that is, when it falls to a
certain level.
This can be illustrated in a diagram.
Stock
levels
---------
ai.C
u·..::;
~
C
0
Q)
Maximum
stock level
Reorder
level
CU
::,
a: CJ'
Minimum
stock level
I
I .
I
0
Lead
time
Figure 10.5.1 Managing stock levels
Lead
time
Time
10.5 Importance of stock control 10
Stocks are replenished just at the point at which the minimum stock
level is about to be breached. Stock is counted at regular inte1vals.
T he reorder quantity is the amount that is reordered when the
stock falls to the reorder level. The maximum stock is the maximum
quantity that is held at any one time. The minimum stock is the
lowest level that stock will be allowed to reach. The lead time is the
time taken to reorder new stock. The reorder level is the level at
which new stock will be ordered. The reorder quantity is the amount
of stock that will be ordered when stock reaches the reorder level.
Managing inventory is thus an important role of the purchasing
office. The purchasing office will seek to ensure that appropriate
levels of inventory are available within the company at all times.
Importance of stock control
Prevention of pilferage
Did you know ... ?
Accurate recording of stock
levels and withdrawals from
stock make it easy to identify
pilferage.
Pilferage is the stealing of stock. Stock control provides information
about:
• how much new inventory enters the stock
• how much inventory is in stock
• how much inventory leaves the stock.
Keeping stock records (see U nit 10.6) makes it possible to keep
track of stock. It is particularly impor tant to attach codes to stock so
you can track individual units of inventory that are held in stock. If
stock starts to disappear and is not accounted for, it is very likely that
pilferage is taking place.
Control of inventory
Stock controllers need to supply sales or production teams with
appropria te quantities of stock to make goods or sell to customers
at the right time. Planning the flow of inventory into stock at the
right time requires great care. For example, retailers know that
they require greater inventory levels in the period leading up to
Christmas and the New Year. Using records from previous years,
they can reduce stock at quieter times of the year. Figure 10.5.1
shows how stock can be managed to ensure that there is always
enough in stock. The objective is to make sure that stocks are never
above the maximum level and never below the minimum level. New
inventory is ordered when the stock falls to the reorder level. This
gives just enough time (lead time) to reorder. T he reorder quantity
is the quantity that is ordered whe n the reorder level is reached. The
reorder quantity will supply enough inventory for the business to
move from the minimum stock level to the maximum stock level.
Stock management is best carried out by computer-controlled stock
management systems (see Unit 10.6).
10 10.5 Importance of stock control
Signalling of market trends
Stock levels are a very good indicator of market demand. When
goods are popular, inventories will run down quickly. When goods
are less popular, inventories will build up. In this way, information
about stock levels is very helpful to the production office and
facto1y (so that they know which goods to make), the purchasing
office (so that they know what inventories to order), and to the
sales department (so that they know which goods are selling well).
Inventory levels also provide a good source of marketing information
for marketing purposes.
Monitoring availability of capital
'
Did you know ... ?
When too much stock is held,
it is likely to go out of date
and is much more likely to be
damaged than in situations
where stock is managed
effectively.
Stock is a form of working capital. The main forms of working capital
are cash, stock and debtors. A business uses cash to buy stock, which
it then sells either for cash or credit terms to debtors. If stock takes a
long time to sell, it ties up capital. This capital tied up in the stock is
working very slowly to generate profits for a business.
The ideal situation is for stocks to sell quickly, to generate new cash
for the business. The business then buys new stock, which hopefully
then sells quickly again. The faster the rate of stock turnover, the
easier it is to make profits.
Where stock only moves slowly, inventories can get damaged while
they are being stored, or they may be stolen, or they may go out of
date (particularly food and fashion items). So stock control is a very
important way of monitoring how much of a company's assets are
tied up in stock and for how long.
Monitoring of storage space
The quantity of stock a company holds will determine the amount
of storage space it needs. The more storage space that is tied up,
the greater the cost. The ideal situation is to have a relatively small
storage area, with a rapid movement of goods through the storage
area. The storage area needs to be well laid out to make it possible to
move goods easily in and out of the store.
Poor stock management leads to high stock levels and an increased
need for storage space. Therefore, stock controllers should develop
stock control systems that enable the company to have the right
inventories in stock for the minimum amount of time necessary.
Activity
A large supermarket has the following stock problems. Can you suggest
why each one might have arisen and what could be done about it?
1 The supermarket has a large refrigerator store for frozen meat and fish,
and frozen packet foods. It is expensive to run. The supermarket is
finding that it is having to stock more and more frozen meat and fish, so
the chillers and freezers are over-full.
10.6 Stock records 10
Key points
Stocks consist of goods,
semi-finished goods and
raw materials that are
waiting to be sold or to be
made into finished goods.
It is important to keep
sufficient stock to meet
customers' orders, while
not having too much
stock.
Stock controllers need to
check that stock records
are accurately kept and
that there is sufficient
stock to meet the needs
of stock users.
When stock is running low
it needs to be reordered.
2 The supermarket has found that some of the fresh fruit and vegetables
that it sells are running out very quickly, while others pile up and some go
rotten.
3 The profit level in the drinks section of the supermarket seems to be
falling unexpectedly, even though sales of drinks are as high as ever.
4 The supermarket has found that its overall profit is falling, even though its
sales are high. There are some gaps on the shelves, while other stock is
selling very slowly.
Test yourself
1 Explain the meaning of the term 'stock'. What is the difference between
stock and inventory?
2 Discuss THREE reasons for maintaining stock control.
3 Define the following terms:
a Reorder level
b Catalogue
c Pilfering
Accurate stock control
makes it possible to
check whether stock is
being pilfered.
10.6 Stock records
OBJECTIVES
By the end of this unit you
should be able to maintain
stock records.
It is very important to know exactly how much you have in stock and
what has happened to stock. This information can be found in stock
requisition forms and stock cards. The computerisation of office
functions has been very helpful in creating highly efficient computerbased systems for recording stock movements and for calculating
stocks.
Stock requisition forms
A stock requisition form is a request by a department within a
company for inventories of different kinds.
Details of stock requisitions can then be moni tored to find o ut
how much inventory has been taken out of the stock. When
stock falls below a minimum level, new inventory will need to be
ordered.
Typically, new inventory will be ordered when stock falls to a given
level. Computerising the system of stock requisition makes it pos~ible
to put in orders for new stocks automatically when the reorder
quantity is reached.
·
.a
10 10.6 Stock records
Stock cards
Stock cards reco rd invento1y, showing what has come in to store,
what has gone out and what remains in the stock. One stock card will
be kept for each type of item. The stock cards will be maintained by a
storeroom or stockroom clerk.
From time to time the clerk will need to do a stock check, to make
su re that the records match with the quantities that a re supposed to
be in stock.
F igure 10.6.1 shows a typical stock card fo r A4 white paper held in
the statione1y store.
Things to note:
• The ca rd gives a description of the ite m (A4 white paper), a
reference number (B3628) and where the item is located in the
stores (area B3).
• The card shows the maximum to be held in stock (200) and the
minimum (80). Before the stock falls to 80, fresh supplies are
ordered from the external supplier (Wenham Ltd) .
• The card is split into two sections: receipts ( of new stores) and
issues (of existing stores).
• The receipts side shows how much has been received on given
dates and the invoice number.
• The issues side shows quantities issued, the requisition numbers
and the departments to which the stores have been issued.
• F inally, the balance column shows the balance in store (number
of rea ms of paper) on each date. After a delive1y of paper the
balance will rise, ,\nd after being issued it will fa ll.
Stock control card
Item:
A4 white paper
Maximum: 200
Stores ref: 8 3628
Locatio n:
Minimum: 80
83
Date
2012
Receipts
Qty rcvd
Invoice no.
1 Sep
Issues
Supplier
.
2Sep
Qty issued
Requisition no.
Balance in stock
Dept
110
20
361
Accounts
90
10
362
Sales
80
,
3 Sep
4 Sep
100
45001
5Sep
Wenham Ltd
180
30
363
Accounts
150
Figure 10.6.1 Stock card
What you can see from the above is that on 1 September there were
110 reams in stock. There were withdrawals from the stock on 2,
3 and 5 September. On 3 September stocks fell to the minimum
10.6 Stock records 10
acceptable level, so new stocks were boµght in. You can see the
relationship between the requisition forms and the stock cards.
Requisition cards are used to request stocks within the organisation .
Storage of office supplies
In large organisations office supplies will be managed by a
departme nt specifically set up for this purpose. The supplies will be
organised within the storage space according to the type of item . The
recording syste m will also ma tch the physical layout. So, for example,
stock cards will be created for different types of paper using the same
code (e.g. A for stocks of white paper, B for stocks of a differentcoloured paper). The same principle will apply to different types of
pen ( e.g. ballpoint pens, highlighte r pens). It is essential to keep the
store tidy so that the inventory clerk knows exactly how much is in
store at a given time. Office supplies need to be kept in a convenient
location so that there is not too much lifting of heavy stores. Office
sta tionery is expensive to store, so office staff need to be aware of the
costs involved in simply printing materials o ut rather than reading
them on screen. There should also be strict rules about not taking
office statione ry home. The stationery should be ordered in bulk to
keep down the cost. It is also important to keep regular checks on
how much is in the stock a t a ny mome nt in time.
Did you know ... ?
The quantity of stock is the
physical quantity (e.g. 100
units). The value of stock is
how much it is worth - that
is, physical quantity x value
per item (e.g. 100 units x
$2 = $200).
Reporting on stock levels
Stock levels can be recorded in terms of the quantities of stock held
at a particular moment in time . Alternatively, they can be measured
by value.
When a company buys in new supplies it will find that the price they
have to pay will change over time. For example, the price of A4 paper
may be $5 per ream one month and then $5.10 the next mo nth. How,
then, do you value your stock? If the stores of a company holds 200
reams of paper, should it be valued at $1,000 (based o n the price
when some of the paper was bought) or $1,020 (the price of buying
200 rea ms today)?
In business the re are two main methods for handling stock and so for
valuing stock. These are the FIFO and the LIFO methods.
FIFO
FIFO means first-in, first-out. This is a sensible way of looking after
your stores. You issue your oldest inven tories first when you receive a
stores requisition. As a result you are not left with old stores.
In order to carry out this procedure you need to organise your
office space so that new deliveries of stock are always placed at
the back of the store, behind more recent stock. Staff working in
stores need to be h·ained to use the oldest stock when they receive
a requisition. When the FIFO method of managing stock is used, a
10 10.6 Stock records
higher percentage of stock will have been purchased at recent market
prices than using the LIFO method described below. The valuation
of the stock in the accounts will be closer to the current market price
(because much of the stock has been bought recently).
The FIFO method should be used for stocks that are likely to
deteriorate quickly (e.g. pens and highlighters held in a stationery
store where the ink is likely to dry out in the sun).
LIFO
LIFO means last-in, first-out. H ere you are using the most recent
stock to meet requisitions. You can use this method with stocks
that are not likely to deteriorate with storage. You can then just
organise your storage area so that you can put new stocks in at the
front of the storage space. This is often easier to do rather than
rearrange your stocks every time you have a delivery. However, you
must be confident that your oldest stocks are not becoming dated or
deteriorating.
When you use the LIFO method, the value of your stock will be
typically less than the FIFO method, because a lot of the stock that
you bought will have been purchased when prices where cheaper.
Valuing stock
An important function of the purchasing department is to report on
the value of stocks held at a particular moment in time. There are
different ways of valuing stock.
This can be illustrated by an example:
A company purchases four items of stock during the month. The
price of this stock is increasing over time. The pattern of purchases
and the cost of purchasing the stock is shown below:
8 May Purchase price $10
15 May Pu rchase price $12
22 May Purchase price $13
29 May Purchase price $14
Now assume an item of stock is taken out for use.
Using the FIFO method, the item of stock that is removed is valued
at $10, leaving stock valued at $39 ($12 + $13 + $14).
l
AVCO is a good way of
calculating the value of stock,
because rather than focusing
on the value of the stock
when it is first stored, or when
it is last stored, an average j
value is considered.
Using the LIFO method, the item of stock that is removed is valued
at $14, leaving stock valued at $35 ($10 + $12 + $13).
T here is a third method that you should be familiar with, which is the
Average Cost, or AVCO method. This values stock at the average
price that is paid for it. The average cost of buying the four items of
stock is $10 + $12 + $13 + $14 divided by four (the number of items
of stock purchased).
$49/4 = $12.25.
10.6 Stock records 10
If an item is taken out of the stock it will be valued at $12.25, leaving
$36.75 in the stock. AVCO is a good way of getting an average value
of stock, taking into consideration that the price of stock will vary
according to when it is purchased.
Use of computers in stock control
One of the areas of business life that has been most affected by
computers is stock control. The development of bar codes has helped
to transform the process of managing stock.
Case study Storing books
The bar code shown in Figure 10.6.2 is the bar code for this book. It
consists of a series of thick and thin lines. These lines represent the unique
code associated with this book.
Bookshops use this bar code to first record the number of purchases they
make of the book, which enters their stock. The bar code is then scanned
using an optical reader (scanning device), which recognises the code. The
optical reader is attached to a computer and to the till, so that each time
a sale is made, the sale is recorded and the processing of the transaction
can take place. A database in the computer then records the sale as having
reduced the stock by one. The computer can be programmed to identify a
reorder level. When the level in stock falls to the reorder level, new stocks
are ordered.
The bar code for this book is illustrated below. It provides unique details,
enabling Nelson Thornes to record sales of the book and where it has been
distributed. It also enables the bookshop or website that sells the book to
keep a record of how many sales they have made and how many copies
are remaining in stock.
I Activity
1 What are the benefits of
using computers in stock
control?
2 What sorts of businesses
are most likely to use
computerised stock control
methods?
ISBN 978-1-4085-1614-0
9
~LJJ IIUll
Figure 10.6.2 Bar code for this book
This bar code includes important details, such as the publisher, Nelson
Thornes, and the product number of the book Office Administration.
'-
Using bar codes enables up-to-the-minute management of stock.
Records are automatically updated on the central processing system.
The central computer database shows how many are in stock, as well
as providing information about how quickly stocks are selling.
Today, the bar code system is starting to be replaced by an even
cheaper system of recording stock information. This is a digital chip
recognition system, whereby each product has a tiny digital chip
attached to it that is recognised by a scanning device. Very large
organisations, such as the world's largest retailer Wal-Mart, now
require all their suppliers to use digital chips for coding products.
-
10 10.6 Stock records
Stock records enable
careful monitoring of
stock levels.
A stock requisition is
an order for stock by a
department in a company.
A stock card is a
means of recording the
movement of stock into
and out of a stock. It
also shows how much is
currently left in stock.
Stock levels can be
recorded in two ways.
They can be recorded in
terms of quantity of stock,
as well as in terms of the
value (in monetary terms)
of stock.
The FIFO (first-in, firstout) method involves
issuing stock in the order
in which items enter
stock. In contrast, LIFO
(last-in, first-out) involves .
taking out first the items
that have most recently
entered the stock.
An optical character reader (OCR) is the name used for a scanning
device that will recognise characters - whether they be lines (as
on a bar code), numbers or letters. The OCR then transfers the
information to a computer storage device that records stock
movements.
Test yourself
1 Use the following information to complete the stock card for a hardware
store selling cement.
Received
Issued
1 May
3 May
400 @$900
300 @ $900
3 May
500 @$1,500
5 May
500 @ $950
7 May
300 @ $900
9 May
10 May
Balance
650 @ $1 ,500
200 @ $900
2 List TWO methods that can be used to ascertain the value of stock.
3 Using the correct information from the stock card above, calculate
the value of c losing stock after the transaction on 1O May, using each
method below.
a FIFO
b LIFO
End-of-unit multiple-choice - Unit 1O
1
In the purchasing office, what does the abbreviation
FOB stand for?
A
2
3
First on board
B Freight on board
C Free on board
D First order book
A
Records management B Database
C
Information
Do you think that it would be more sensible for
the wholesaler to sell its drinks to retailers on a
CIF or FOB basis? Explain your answer.
B How would it benefit the wholesaler to write
E&OE on invoices it sends out?
C
Under what circumstances might the wholesaler
give trade and/or cash discounts?
D Folder
3
Make a list of the most important duties of a
purchasing clerk in a large department store.
4
Why might a mail-order company send out both a
catalogue and a price list to customers?
5
Who would send out a quotation? What details
would the receiver of the quotation want to check
carefully?
6
Why is e-commerce replacing many traditional forms
of buying and selling goods and services?
7
What do the following terms, which appear on an
order form, relate to?
What does the abbreviation 'B2B' stand for?
B Broker-to-business
D Business-to-business
What is the meaning of the abbreviation 'CIF', as
appears on an order form?
A
A wholesaler supplier in Jamaica supplies bottled
drinks to retailers on several other Caribbean
islands.
A
'A store of files and records set up for a particular
purpose' is the definition for which of the following?
A Boat-to-boat
C Buyer-to-buyer
4
2
Cash, insurance and freight
B Cash, insurance and faults
C
Carriage insurance and freight
D Cost insurance and freight
5
6
John Doe works for Globe Trading Company. On
exiting the premises his car was searched and a
large quantity of stock was found in his possession.
Which of the following best describes John's action?
A
3% discount within one week
B
Delivery: carriage paid
C
Terms: CIF
A
What is stock control?
In the valuation of stock, what should closing stock
always be listed at?
B
Who is responsible for stock control in a
business?
A
Cost price
B Selling price
C
List THREE reasons for carrying out stock
C
Catalogue price
D Discounted price
A
Pilfering
B Stock taking
C
Reordering
D Drawing
Structured questions
1
8
control.
9
Explain the difference between a stock requisition
form and a stock control card.
Julia owns a large clothes retailing business with
several shops.
A
What items might she purchase to improve
her business and what items might she buy to
B
For what reason might the purchasing
resell?
department in Julia's business interact with the
accounts and sales departments?
-
OBJECTIVES
By the end of this unit you
should be able to explain the
functions of staff involved in
marketing.
What are some of the popular businesses in your country? How do
they attract and keep customers? Can you list at least five strategies
they use?
The term 'marketing' refers to the range of business strategies
that are used to satisfy the needs of customers by creating,
communicating, delivering and exchanging products, that is, goods
and services. Marketing can be defined as all the organised efforts,
activities and expenditures that a business uses to acquire and retain
a customer (Figure 11.1.1).
Determining
the price
Arranging
for the
distribution
of the
products
and services
Promoting
the products
and services
Figure 11 .1.1 Marketing process
Marketing tasks
The marketing office is responsible for a wide range of activities
involved in effectively identifying and satisfying the needs of existing
and potential customers (Figure 11.1.2).
Designing marketing strategies
Effective marketing strategies require careful planning, creativity and
a good understanding of the target market, that is, the intended users
or clients. A marketing strategy is the overall plan of action to sell the
product or service. The marketing strategy is used to:
• define the business, outlining its vision, mission and goals
• describe its products or services
11 .1 The marketing office 11
• provide a description of the target market
• define the company's position in relationship to the competition.
The marketing strategy is used to prepare a marketing plan. A
marketing plan outlines the specific activities that will be performed
to achieve the goals that are o utlined in the strategy. To prepare a
marketing plan you must decide:
• how you will let people know that your business exists
• what the needs are of the customers you are aiming to satisfy
• what unique aspect of your products or services you will feature
• what makes your product different from, and better than, other
products
• how you will convince customers that yo ur product or service will
satisfy their needs.
Figure 11 .1.2 Marketing tasks
Activity
Prepare a brief report, on an
advertisement that appeals
to you, under the following
headings:
• Name of business
• Product or service name
• Communication medium
used
• Purpose of advertisement
• Advertising techniques used
• What you liked about the
advertisement
• What you disliked about the
advertisement
Organising promotional activities
Promotional activities are designed to attract customers and
convince them to purchase the product. Advertising is probably
the promotional strategy that is most famili ar to you. Advertising
is business communicatio n that is designed to attract and inform
the public and persuade them to choose the advertised product or
service. Advertisements use a variety of techniques to appeal to the
buyer, including appealing pictures, music and endorsements from
famous persons.
Advertising via the electronic media (television and radio) is
commonly used because it reaches the largest number of persons
at the same time . Advertisements in the print media, such as
-
11 11.1 The marketing office
newspapers, magazines and trade journals, also reach many persons.
Large businesses frequently use these forms of advertising.
Some businesses sometimes choose less expensive forms of
advertising, such as printed flyers, classified ads in the newspapers
or mailshots. Mailshots, or circular letters, are standardised letters
that are sent out to many recipients. The business usually maintains
a mailing list, that is, a collection of names and addresses to which
communications will be sent. This mailing list is most often saved on
a computer database.
The marketing clerk can use the mail merge feature of a wordprocessing program to automatically address letters and envelopes.
A form letter is prepared using placeholders, such as < <First_
Name >> <<Su rname>> to indicate where names and addresses
should be placed. The computer is then instructed to merge the
form letter with the names and addresses in the database, thereby
producing personalised letters.
Other promotional activities used by businesses include:
• prominent and attractive in-store displays
• signs, posters and:billboards
• trade shows and exhibitions
• personal selling
• telemarketing - the use of telephone calls to p1:omote a product
• free samples
• coupons and discounts.
Publishing
A catalogue is a commonly used marketing publication. The
catalogue lists and describes products, providing details such as size,
colour, special features and price. A lot of companies now publish
catalogues on the internet. Websites such as www.onlinecatalogs.com
show you some of the many products that can be purchased online.
Sometimes businesses publish magazines or brochures to market
their products or services, or supply articles to the newspapers,
trade journals and magazines. For example, your local newspaper
might have a business section in which companies can promote
their products and services or provide information about their
organisation. Articles written in trade journals are often very detailed
and use technical terms, because they are written for persons who
are knowledgeable about the topic. In contrast, articles published in
newspapers or magazines are usually much easier to ·understand.
Budgeting
One of the most important tasks of the marketing department is the
preparation of a budget. A marketing budget contains an estimate of
all expected expenses and costs that will be incurred to market the
products or services.
11 .1 The marketing office 11
Liaising with entities internal and external to the office
A marketing department must have excellent communication, both
within and outside the business. For example, the department must
communicate with the production department when deciding on the
design for the packages. Press releases may be sent out from the
marketing department to the newspapers, informing the public about
new developments or upcoming events (see Figure 11.1.3). Marketing
often involves a significant amount of travelling, and the holding of
meetings, conferences and seminars.
Duties of a marketing clerk
In addition to the general duties that you already know, a clerk in a
marketing office must perform the following specialised tasks:
• assisting in preparing advertising material
• assisting with promotional activities
• maintaining mailing lists and records
• assisting in preparing press releases
• organising travel.
Gametec 1ncorporated
1376 Production Lane, Trincity Industrial Estate, Trinidad
Phone/Fax: 555 5665 gametec@tstt.net
Embargo:
From:
NEWS RELEASE
For release upon receipt
Khelisa St David
Marketing manager
12 June 2012
GAMETEC LAUNCHES REVOLUTIONARY
NEW GAMING CONSOLE
,. Activity
You have developed a unique
range of personal care items
using local fruits and flowers.
Prepare an appropriate press
release.
Exam tip
Be sure that you are
familiar with the layout
and composition of press ·
releases.
1
GAMETEC Incorporated has once more
proven that it is at the leading edge of gaming
technology, with the launch of its revolutionary
new GPX-Pro portable projection gaming
console. Players have the option of using a
built-in screen or projecting game images onto
any light-coloured surface for larger-than-lite
gaming tun! With high-definition graphics and
fully layered sound effects, the GPX-Pro is
guaranteed to give you total gaming satisfaction. Visit our booth at Technology Fiesta,
Holiday Plaza, Port of Spain from 15 to 21 June
2012. Free gaming consoles will be presented
to 50 lucky visitors.
(END)
Encs
Four photographs of the GPX-Pro
Fig. 11 .1.3 Example press release
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11 11 .2 The sales office
r e-- r
<"
Key points
Functions of the
marketing office are:
• designing marketing
strategies
• organising promotional
activities
• budgeting
• advertising
• publishing
• liaising with advertising
entities, internal and
external to the office.
Duties of a marketing
clerk include:
• assisting in preparing
advertising material
• assisting with
promotional activities
• maintaining mailing lists
and records
• assisting in preparing
press releases
• organising travel.
Test yourself
1 Sumintra has been hired to work as a clerk in the marketing office of
Sureco, a food manufacturing company.
a Define the term 'marketing'.
b Briefly describe THREE activities that are part of the marketing
process.
c State THREE duties of a marketing clerk.
d List THREE marketing documents that Sumintra might be required to
type, explaining the purpose of each one.
e Explain why the marketing office must have good internal and external
communication.
2 When Cheng Li approached the Small Business Development Agency
for a loan to develop his leather craft shop, he was asked to develop a
marketing plan, a marketing budget and a marketing strategy.
a List the order in which these THREE documents are prepared .
b Explain the difference between a marketing strategy and a marketing
plan.
c State THREE items of information that are presented in each of the
following:
i
Marketing strategy
ii Marketing plan
d Describe TWO strategies that Cheng Li might use to promote his
products.
11.2 The sales office
OBJECTIVES
By the end of this unit you
should b e able to explain
the func tions of staff
involved in sales.
In Unit 11.1 you learned that marketing involves all the strategies
and activities that relate to the satisfaction of customer needs. Sales
is therefore one of the functions of the marketing office. However,
some businesses choose to have an office that focuses on specialised
activities related to selling their products or se1v ices. The sales office
performs the following functions:
• maintaining sales records
• stock control (see Units 10.5 and 10.6)
• liaising with other departments
• customer follow-up.
Sales records
Figure 11.2.1 shows that a number of different documents can be
produced by the customer (buyer) and business (seller) during the
sales process. A number of specialised terms and abbreviations are
used on these documents, as are shown in Table 11.2.1. E nsure that
you learn the meaning of each term.
11.2 The sales o ffice 11
Carriage
Delivery expenses, that is, the cost of or charge for
transporting items
Carriage
forward
Delivery will be paid for by the buyer
Carriage
Inward
The delivery costs that are paid by the customer or p erson
buying the product
Carriage
outward
The delivery costs that are paid by the business that is selling
the items
Carriage paid
The seller is responsible for paying the transportation costs of
the item that was sold
CIF
An abbreviation meaning cost, insurance and freight, which
indicates that the final price on the invoice includes the cost
of the products, the insurance charges , and the freight or
shipment costs to the foreign port
Consignment
A sale of goods in which the seller is not paid until the buyer
resells the items. Consignment agreements usually exist
between wholesalers and retailers
DDP
An abbreviation meaning delivery duty paid, which indicates
that the seller will deliver the products to the buyer's premises
and pay all costs involved , including taxes and import
charges
E&OE
An abbreviation meaning errors and omissions excepted,
which is written at the botto m of a bill of sale (invoice),
indicating that the amounts shown can be corrected by the
business if there was an error or omission (see Unit 9.1)
Ex works
The business w ill provide the products at its premises. The
buyer is responsible for moving the goods and must pay all
charges, such as freight and insurance
Export
Products sold to a buyer in another country
FOB
An abbreviation meaning free on board, which shows that the
price quoted includes all costs until the products are loaded
on the ship for export. The seller is responsible for loading
the goods on the ship. The purchaser or importer must pay
all further charges
On approval
A sales agreement in which products are sent to a potential
buyer, who has the option to examine and purchase or
return them. This type of agreement is usually made when a
business is introducing a new product
Retail
The sale of products in relatively small quantities directly to
the consumer
Wholesale
The sale of products in large q uantities at a lower price,
usually to a business that will then resell to consumers
Table 11 .2.1 Terms associated with sales
The maintenance of accurate sales records is essential to the
successful operation of the business. Some of the documents
prepared and received by the sales department are described in Table
11.2.2. Review U nit 4.1 to ensure that you understand the importance
of maintaining and managing business records, including documents
related to sales.
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11 11.2 The sales office
Buyer
Seller
Enquiry
Price list
Estimate
Quotation
Order
Proforma invoice
Invoice
Statement
Delivery note
Payment
Receipt
Debit note
Credit note
Figure 11 .2.1 Documents exchanged between buyers and sellers
Description
Document
Enquiry
Request from a customer or potential customer for information
about a product or service - usually made in the form of a letter
Price list
Itemised list of the products or services offered for sale by the
business, and their prices - easily amended if prices change
Estimate
Statement of likely costs of items that can be used as a guide
when making decisions
Order
Request for the seller to supply a specified amount of products
or services
Statement
Business document summarising the transactions between
debtors and creditors in a month (see LJi'its 9.2 and 9.3)
7
Statement of the quantity, number ana product description of
the goods delivered by the seller
Delivery note
Receipt
Written acknowledgement that money was received
Credit note
Document issued by a sr ller to a buyer if the amount owed
is less than was originally stated in the invoice. For example,
if a buyer was overcharged for an item, the business will
acknowledge the debt by preparing a credit note (also see Unit
9. 1)
Debit note
Document issued by a seller to a buyer if the amount owed is
greater than was originally stated in the invoice. For example, if
items delivered were omitted from the invoice, the business w ill
prepare a debit note (also see Unit 9. 1)
Did you know.... ?
A growing number of
businesses are choosing
to market their pr9ducts
via Facebook and other
social media.
Table 11 .2.2 Sales documents
11.2 The sales office 11
Duties of a clerk in the sales office
You have already learned about the different types of equipment that
are used in offices. A clerk in a sales office might be required to use
equipment such as a computer, calculator, cash register and bar-code
scanner. The main duties of a sales office clerk are as follows.
Preparing sales documents
Sales documents, such as the quotation, invoice and proforma
invoice, are legally binding agreements. This means that a buyer or
seller who fails to fulfil the agreement can be sued. Therefore, these
documents must be prepared accurately, in keeping with specific
guidelines (see Unit 11.3).
Invoices and proforma invoices are usually prepared in triplicate,
that is, three copies are made. The original is given to the customer,
one copy is retained by the sales department and the third is sent to
the accounting department. In some businesses additional copies are
made.
Filing sales records
Businesses are required to keep books or computer files that
document all purchases and sales, as well as the source documents,
such as receipts and invoices (see Units 4.2 and 4.3 for guidelines on
filing and indexing records).
Sales records are used for planning and decision-making throughout
the organisation. The sales office clerk must ensure that these records
are accurately calculated and properly organised. Several copies are
made and distributed to the departments that use the information.
For example, in Unit 9.1 you learned that a business must prepare
accounts of all transactions, including ledgers, sales returned
and customer statements of accounts. Orders must be quickly
communicated to the purchases and production departments, so that
the products can be supplied to the buyer. Information about slowerselling items must be communicated to the marketing office, so that
promotions, such as special offers or sales, can be organised.
' Activity '
Review Units 9.1 to 9.3. List
the accounting items that are
based on records obtained
from the sales office.
More and more businesses are choosing to use computers with
database programs to file their sales records. This makes it easier to
locate records and produce reports. For example, the chief executive
officer of a large clothing retailer might want to determine which
of its 10 branches has the best sales figures on Fridays and the day
before a holiday. It will take a long time for a sales office clerk to
produce this information manually. However, it can be done quickly
with just a few computer commands.
The sales rec~rds can be analysed to produce reports, such as:
• daily, weekly, monthly, quarterly and annual sales
• periods when sales are highest (also known as peak periods) and
lowest
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11 11 .2 The sales office
• r.ates of sale per product
• sales figures per department, branch or region.
Maintaining mailing lists
Exam tip
Ensure that you know the
purpose of each of the sales
documents discussed in this
unit.
The marketing office often depends on information gathered by
the sales office clerks to ensure that marketing material is sent
out to suitable recipients. These data are gathered from various
communications, such as:
• enquiries made in letters, telephone calls or in person
• requests for estimates and quotations
• orders
• purchase documents, such as invoices, proforma invoices and
delivery notes.
A rapidly growing manufacturing company is hiring clerks for its sales office.
/
Job descriptio,n
40 hours per Wi€ek, Monday to Friday, 9am - 5pm
The successful applicant wil l be required to:
• work wi th our sales team in a busy environment
• interact with customers
• enter, despatch and invoice sales orders
• effectively manage all sales records
• undertake administrative tasks as needed.
Required skills
• Sound secondary-l evel education, preferably in business studies
• Good computer skills, including Microsoft Excel and Word
• Working experience of a computerised accounts package will be an asset
Applications to the marketing manager, PO Box 2345, Kingston
'·
("
Key points
Functions of the sales
office are:
• maintaining sales
records
• stock control
• liaising with other
departments
• customer follow-up.
Figure 11 .2.2 Job advertisement for a sales office clerk
Test yourself
1 Write out each of the following abbreviations and explain what each term
means:
a E&OE
b FOB
c CIF
d DDP
Duties of a c lerk in the
sales office include:
• preparing sales
documents
• filing sales records
• maintaining mailing lists.
2 Explain the meaning of each of the fo llowing terrr:is :
a Proforma
b Ex works
c On consignment
d On approval
11 .3 Preparation of sales and marketing documents 11
3 . After completing school, you see the job advertisement in Figure 11.2.2
in the National Express newspaper of 23 October, this year.
a Write a letter applying for the position.
b You are selected for the job.
What are THREE documents you will be expected to produce?
ii State TWO types o f documents you are likely to receive from
consumers.
iii What are THREE types of equipment that you will be required to
use?
iv List THREE work ski lls not indicated in the advertisement that are
required to be effective in this particular position .
v
Describe TWO personal attributes that will make you an asset in
this position.
c Describe TWO ways in which the sales office clerk is essential to the
success of a business.
11.3 Preparation of sales and marketing documents
OBJECTIVES
By the end of this unit you
should b e ab le to prepare
documents u sed in sales and
marketing.
The sales clerk is required to prepare several different documents,
such as quotations, estimates and invoices. Most of these
require calculations such as addition, subtraction, percentages
and fractions. Consequently the sales clerk must have good
mathematical skills. Specialised documents related to international
sales, such as import and export licences and bills of lading will be
discussed in Unit 12.
Quotations
A quotation is an offer to sell products under stated terms and
conditions, including costs, delivery dates, methods of delivery, terms
of payment and the time period for which the quotation is valid. The
terms of a quotation are legally binding. This means that when a
quotation is supplied, the business is committed to honour its terms
and conditions. For example, if there are unexpected increases in
costs, the business is still legally required to supply the items at the
price printed on the quotation. Consequently businesses usually
indicate that the terms are valid only if purchases_are made within a
specified period.
A quotation shows the following (see Figure 11.3.1):
• name and contact information of the business
• name and contact information of the customer
• detailed costing of each item
..____ _ _ __ _ _ • overall price
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-
11 11 .3 Preparation of sales and marketing documents
• schedule of when the work will be done or the products will be
delivered
• terms of payment
• period for which the quotation is valid.
IEC Ltd
Industrial Electric Components Ltd
Pt Lisas Industrial Estate
1 June 2011
CoolT Retail Ltd
Kingston
Jamaica
Dear Sirs
We thank you for your enquiry dated 26th May.
Activity
We are pleased to offer the following quotation to supply these items.
Ten 5 KW air conditioning units Model No. 345/657 EH
David Sayers of 18A Sunset
Drive, Sangre Grande has
asked Caribbean Building
Supplies of 234 Industry
Lane, Macoya, for a quotation
for some products. The sales
clerk has noted the unit prices
after each item. All items are
subject to 15 per cent sales
tax. Prepare a quotation with
a 30-day validity period from
today's date.
2000TTD each
Please note that these prices, the terms and del ivery dates are those cu rrent at
the time of writing and are only valid for 3 months. After this time a revised
quotation should be requested.
Delivery is carriage paid 2 weeks from receipt of order
Terms: 5 per cent 7 days otherwise net.
Yours faithfully
For IEC ltd
,g ~
B. Manduca
Sales manager
1000 hollow clay blocks $4.95
50 sacks cement $48
1 load sand $850
Figure 11 .3.1 Sample quotation
' Invoices
An invoice is an itemised bill of sale that lists the quantities and
prices of products or services supplied by the business to a customer,
together with other charges, such as shipping fees or sales taxes. The
invoice is a legal document that establishes that the buyer has an
obligation to pay the seller. Figure 11.3.2 shows a sample invoice.
An invoice usually shows the following information:
• title 'invoice'
• invoice number
• date of the sale
• seller's name and address
11.3 Preparation of sales and marketing documents 11
Activity
Six weeks after receiving the
quotation from Caribbean
Building Supplies, David
Sayers telephones to place
an order for the quoted items.
However, the price of hollow
clay blocks is now $5.50
each.
1 Discuss what the sales
clerk should do.
• buyer's name and address
• description of the items sold, including quantity, unit price and
discounts, if given
• value added tax (VAT) or sales tax, if charged in that countly
• transportation or delivery costs, such as shipping, freight and
handling, if applicable
• total amount payable
• terms on which the goods are sold, such as the credit period that is
allowed
• letters E&OE (errors and omissions excepted, see U nit 11.2).
2 Prepare an invoice,
showing the new prices.
IEC Ltd
Industrial Electric Components Ltd
Pt Lisas Indust ria l Est at e
INVOICE NO. 11/2348
2 July 2 01 1
CooIT Reta i I Ltd
Kingston
Jamaica
Order No. 20 11/345
Despatch details: Ship and road; 5 cartons
Quantity
Descript ion
Price
10
5 KW air condit ioning unit s
345/657 EH
2000 TTD per unit
Gross invoice 20 OOOTTD
Less 20% trade discount 4000 TTD
Net invoice 16 OOOTTD
Delivery address:
CoolT Retail Ltd
Kingston
Jamaica
E & OE
Figure 11 .3.2 Sample invoice
Proforma invoices
A proforma invoice is an invoice that is issued before the actual sale
of an item. A proforma invoice is used for several reasons:
• It is considered an agreement between the buyer and seller for the
purchase and sale of products for a specified price.
• If goods are to be exported, it allows the customs authorities to
ascertain the value of the items.
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11 11 .3 Preparation of sales and marketing documents
It is cheaper for a business
to sell its products on the
internet than in stores, so
customers often receive a
discount for online purchases.
• It can be taken to a bank if the buyer wants to obtain a letter of
credit.
• It serves as evidence of the sales agreement when goods are sold
on consignment or on approval.
A proforma invoice looks like an invoice, except that it is prominently
labelled with the words 'Proforma invoice'.
Types of discounts
A discount is a reduction in the price of an item. Discounts are
usually expressed as a percentage of the selling price. Consider, for
example, some school bags that cost $450.00. They are being sold at
a 33 per cent discount. What is the dollar value of the discount? How
much will the buyer pay?
Trade discount
A trade discount is a reduction in the published price that is given by
the manufacturer to a retailer, so that the retailer can make a profit.
Cash discount
Businesses usually prefer to be paid immediately for products
sold, instead of having to extend credit for a period of time. A cash
discount is offered as an incentive for buyers to pay promptly, usually
within 10 days of the date shown on the invoice.
Special discount
A special discount is offered to promote the sale of selected items,
such as newly introduced products or items that are not in high
demand. Special discounts are also offered to certain groups of
buyers. For example, some motor insurance companies offer special
discounts to female drivers or to persons who display a 'Baby on
board' sticker on their vehicles.
Quantity discounts
It is more profitable for a business to sell its products in bulk instead
of as individual items. Businesses usually offer a quantity discount
when a customer buys large amounts of an item.
Goods on consignment
A consignment is a trading arrangement made between a business
( consigner) and a reseller of its products (consignee). The consigner
remains the owner of the product until it is sold. The consignee then
pays the selling price, less a specified amount to the consigner. Goods
that are not sold are returned to the consigner.
11 .4 Customer service 11
Exam tip
Ensure that you know the
differences between an
invoice and a proforma
invoice, including the
conditions under which each
is used.
Test yourself
1 Define the following terms:
a Quotation
b Invoice
c Proforma invoice
d Discount
2 Differentiate between a cash discount and a trade discount.
3 You have received a flyer advertising the following school supplies that
you know will be popular with your schoolmates:
(
Key points
Documents used in sales
and marketing include:
• quotations
• invoices
• proforma invoices.
Schoolbags: $99 each
Stationery sets: $7.99 each
Notebooks: 10 for $24.95
Portable DVD players: special introductory price $299 each.
Your drama club wants to raise funds. When you communicate with the
manufacturer you are told that you will receive:
• a trade discount of 20 per cent on all items
The main types of
discounts are:
• a cash discount of 1O per cent if you pay within 14 days of the invoice
date
• trade
• cash
• special
• quantity discounts
• goods on consignment.
• a discount of 5 per cent when you buy 100 or more units of any item.
Only trade discounts will be allowed for items shown on special. You
must pay all transportation charges.
a Prepare the invoices your drama club will expect to receive for the
following transactions:
12 school bags, 20 stationery sets and 40 notebooks
ii 200 notebooks and three portable DVD players
b After a year of successful trade, the manufacturer indicates that your
club can obtain goods on consignment.
What does 'on consignment' mean?
ii What kind of invoice will you receive if you purchase goods on
consignment instead of for cash?
iii State ONE disadvantage of buying on consignment.
iv What are THREE reasons why your club might agree to purchase
on consignment?
11.4 Customer service
OBJECTIVES
By the end of this unit you
should be able to describe
the duties of a clerk in
the customer services
department.
Good customer service (CS) is essential for the success of any
business, because it determines whether a shopper will buy and
continue buying its products. A business cannot survive without
customers. Therefore, all the workers in the business should perform
their duties with courtesy, concern, efficiency and professionalism, to
ensure that a customer has a positive buying experience. However,
many businesses find it advantageous to have a specialised CS
department. The term 'customer service' refers to a wide range of
activities undertaken by a business to ensure that the customer's
-
-
11 11.4 Customer service
Did you know ... ?
Many dissatisfied customers
do not complain to the
business, they simply do
not return. However, they
tell an average of 10 other
persons about their negative
experience. That is a lot of
bad publicity.
wants and needs are satisfied, by providing knowledge, technical
support and other services courteously, effectively and efficiently
(Figure 11.4.1). The CS department performs the following functions:
• e nsuring customer satisfaction
• handling customer complaints
• advising customers on product offerings
• answering questions and queries
• liaising with customers and the company.
Customer follow-up
The term 'follow-up' refers to a wide range of services and activities
that are designed to retain customers and ensure their satisfaction
after the initial transaction has been completed. Many of the
duties of the C:S clerk involve follow-up activities such as handling
' complaints, answering queries about product use, and informing
customers about o ther products and services offered by the business.
Activity
Figure 11.4.1 An aspect of customer service
Role-playing can help you
to develop the ability to
effectively handle chal lenging
situations. Demonstrate how
you wi ll handle a customer in
the following circumstances.
1 The customer visits your
department to complain that
an employee was rude.
2 The customer telephones
you, demanding an
immediate refund for a
defective appliance.
3 The customer spoils a
device failing to follow
the manufacturer's
instructions.
4 The customer is
disappointed arid angry
because a promised
delivery is three days late.
Duties of a CS clerk
Interfacing with customers
The CS clerk is responsible for interfacing with customers before,
during and after a purchase. The CS clerk should make it as easy
as possible for the customer to make a purchase. This includes
describing, discussing, explaining and demonstrating the product, as
required by the buyer. The CS clerk must be completely customerfocused and must consistently work towards ensuring customer
satisfaction. This involves paying careful attention to what the
customer has to say, and asking the right questions to obtain
informat_ion about what is required. The business can then be more
respo nsive to the specific needs of its customers.
T he effective handling of complaints is an important aspect of CS.
A customer can express dissatisfaction about a range of issues,
including the receipt of damaged items, delays in delivering a product
or the conduct of aQ employee. Under no circumstances should a
11.4 Customer service 11
Did you know ... ?
Both a guarantee and a
warranty provide written
assurance that a product
or service will meet certain
specifications. However, a
guarantee usually offers a
refund of the purchase price if
the product is unacceptable.
On the other hand, a warranty
usually offers repair or
replacement of the defective
item. A guarantee is always
free , whereas the buyer
may have to pay a fee for a
warranty. Both are usually
valid for a limited time only.
-
Exam tip
Ensure that you can discuss
the specific knowledge, skills
and attitudes required for CS
representatives.
CS clerk argue with a customer. Rather, the cle rk sho uld aim for
custome r satisfaction, by focusing on resolving the issue courteously,
reasonably and promptly.
Answering customer queries
The CS clerk must respond to customer que ries about the p roducts
and services offered by the business. Customers also require
information a bout issues such as require me nts for credit purchases,
product guarantees and warranties, po licies about the retu rn of
· products and afte r-sales service. An effective CS clerk must have a
thorough knowledge of the business's products, services and policies.
Liaising with customers
D epending on the type of business, the CS clerk can be required to
liaise with clients to make arrangements, such as:
• booking of premises such as hotel rooms and conference facilities
• transport and delive ry of products
• pick up and re pair of defective items.
The CS clerk can also be required to lia ise with customers on behalf
of other departments. For example, the marketing department might
require a CS clerk to provide the customer with specific details about
a product that is being promoted. The despatch and transport office
may ask the CS clerk to apologise to the custome r and explain the
reasons for a delay in delive ry.
Informing customers about promotions and offers
Key points
The main functions of the
CS department are:
• ensuring customer
satisfaction
• handling customer
complaints
• advising customers on
product offerings
• answering questions
and queries
• liaising with customers
and the company.
The main duties of a clerk
in the CS department are:
• interfacing with
c ustomers
• answering customer
queries
• liaising with customers
• informing customers
about promotions and
offers.
The CS cle rk usually informs customers about new products
introduced by the business, as well as promotions and offe rs on
existing items. It is less expensive to keep and develop exfating
customers than to acquire new ones. Therefore, some CS clerks
obta.in contact information from the sales office, a nd telepho ne,
e mail or fax custo me rs with promotional informa tion.
The re is a significant interconnection be tween the duties of
marke ting, sales and CS clerks. For this reason some businesses do
not separate these functions into differe nt depar tments. Instead
a clerk might be assigned to a product range or to a group of
customers. This clerk will then be responsible for all aspects of the
interactio n, from disseminating marketing informatio n to providing ·
a support service after the sale is completed. The customer develops
confidence in this clerk and the clerk becomes well informed about
the specific needs of the customer:
Test yourself
1 Define the term 'customer service'.
2 What are FOUR essential qualities of a good CS clerk? Give reasons for
your answers.
3 Explain THREE duties that a clerk in a CS department must perform.
4 Explain the importance o f good CS to the success of a business.
End-of-unit multiple-choice - Unit 11
Write to the school, cancelling the quotation.
ii Delay filling the order until the 60 days of the
1
quotation period has expired.
What is the document called that outlines the
specific activities that will be performed to achieve
the business's goals for a product? ·
iii Supply the computers at the quoted price
A
Marketing strategy
B
Marketing budget
iv Supply the computers, but charge a higher
C
Marketing proposal
D
Marketing plan
and accept a loss on the transaction.
price to cover the increased cost.
B
2
3
4
Which of the following is a duty of a marketing clerk?
A
Planning promotional activities
B
Providing after-sales seNice
prevent this problem?
C Preparing invoices and estimates
Write out the meanings of the following terms as they
are used on trading documents:
D
A
On approval
B
Free on board
2
Publishing vacancies
C Ex works
D Cost, insurance and freight
Which of the following is a reduction in the price of a
product because a quantity is purchased for resale
by a retailer?
A
Trade discount
B
Cash discount
C
Quantity discount
D
Special discount
3
Tropical Pleasures Limited has introduced Vitalife, a
new range of all natural fruit juices that are designed
for the health-conscious youth.
Which of the following is one of the primary
responsibilities of the sales office?
A
A Customer follow-up
B
B
Designing marketing strategies
B
Invoice
C Proforma invoice
D
Estimate
which the marketing clerk will communicate in
developing an advertising campaign for Vitalife.
C
Describe TWO promotional activities that are
D
Potential retailers have started asking for
information about the product. State THREE
documents that can be sent to the retailers to
suitable for this new product.
Structured questions
1
Bayview College asks Krishna, the owner of a
computer assembly business, for a quotation to
supply 25 computers. He prepares a quotation
based on the price list that he received last month
from his main supplier. The college accepts the
quotation, which is valid for 60 days, and places an
order within 45 days. However, when Krishna goes to
buy the parts, he discovers that there was a 25 per
cent increase.
A
answer their queries.
4
Ginelle has been hired as a customer seNice
representative for a telemarketing company.
A
legally open to Krishna, giving reasons for each
List THREE types of equipment she will be
required to use.
B
Outline THREE attitudes that Ginelle should
have.
C
Ginelle was told that she must have good oral
communication skills. Why are these skills
Discuss which of the following options are
answer.
A clerk in the marketing office is expected
to interact with persons throughout the
organisation. Identify THREE departments with
Which of the following documents is sent with goods
sold on consignment?
A Quotation
Prepare a press release (80 to 100 words) that
will appeal to the target market.
C Publishing
D Handling customer complaints
5
What actions could Krishna have taken to
essential in this job?
D
Describe FOUR duties Ginelle will have in this
job.
..
OBJECTIVES
Staff in the factory office
By the end of this unit you
should be able to explain
the functions of staff in the
factory or works control
office.
The purpose of the factory office is to support the production
department of a company. It will be responsible for carrying out all
the administrative tasks required to support production managers
and production planners. The office staff help to maintain and
update production schedules, and to process the job cards and other
documents involved in organising production activities. The forms
used in the production office are illustrated and explained in Unit
12.2.
The factory office can be found in companies that manufacture
products such as textiles, canned food and bottled drinks. In these
manufacturing companies, the factory office is particularly important,
because its staff carry out work including planning production
activities, making sure that there are the right types and quantities of
raw materials and equipment to make the goods, as well as managing
the quality control procedures.
The main functions of the factory office are:
• coordinating production activities
• protecting workers and the environment.
Coordinating production activities
Did you know ... ?
Production targets are set
out in figures showing what
quantities of products need to
be produced in different parts
of the factory, and by specific
machines, and/or teams of
workers.
The production department brings together:
• machinery
• raw materials
• consumables (e.g. machine oil)
• production workers.
A production schedule is created each week to identify what will be
produced and in what quantities. This involves setting production
targets. Production planners need to decide how much time they will
allocate to certain tasks. For instance, will a machine produce just
one type of product or will it have to be reset from time to time to
produce other related products.
The plan of what to produce is called the production schedule. The
facto1y manager has overall responsibility for creating the overall
work plan, and there will be individual work plans for the various
production lines in the fact01y. The production plan sets out the
resources required to get the work done on time, including the
number of machine hours required, the quantity of raw materials and
12 12.1 Functions of staff in the factory office
A master production schedule
gives the production
department control over
production activities. They
are able to p lan production,
and then regularly check that
production targ ets are being
met and where hold-ups are
occurring.
the labour hours. The overall plan is called the master production
schedule (MPS) and contains a detailed production plan, a plan to
provide enough staff to ensure targets are met, and a plan for the use
of inventory.
From the MPS it is possible to create a production plan for each
week. For example, Table 12.1.1 is a plan for a five-day week. The
company needs to produce 4,600 units of a particular type within a
month. There are 23 working days in the month.
Date
7/5/2012
8/5/2012
9/5/2012
10/5/2012
11/5/2012
Monthly
demand
4,600
4,600
4,600
4,600
4,600
Working days
In the month
23
23
23
23
23
MPS dally
production
200
200
200
200
200
Table 12.1.1 Production plan
Given the required daily production, it is then possible to create
schedules for the use of raw materials, labour and required machine
hours.
Protecting workers and the environment
Did you know ... ?
Health and Safety at Work
laws govern such issues as
maximum number of hours
that can be worked by an
employee and minimum
standards of hygiene (e.g. in
terms of the provision of clean
water and changing facilities).
__,,
Production activities must be designed in such a way as to guarantee
the safety of production workers. This requires staff in the production
office to know and be able to implement required health and safety
procedures. Production activities should be planned to ensure the
maximum possible safety of staff. This includes taking the following
into consideration:
• provision of safety equipment, such as protective goggles and
earplugs
• ensuring that machinery and equipment are regularly checked to
make sure they comply
• health and safety standards
• making sure that production staff are suitably trained to safely
carry out production activities.
Since the production department and production office is responsible
for planning production, it must build in health and safety
considerations into all production plans. Here the production office
will work closely with the human resources (HR) office, which is also
responsible for staff induction and training.
The production office also takes responsibility for making sure that
environmental safety is built into production planning. There are
many environmental laws that need to be complied with, including
the safe disposal of waste into water and into the air, as welJ as
disposal in drains and bins. Production must be planned so that, at
the very minimum, all environmental laws are complied with. The
production office will be responsible for checking that these rules
12.1 Functions of staff in the factory office 12
are complied with. Production will use a checklist to make sure that
environmental rules are being applied.
Importance of the factory office
Maintaining factory records
One of the most important tasks is to tum orders into job cards. The
job card specifies \'{hat needs to be done. For example, in a bicycle
manufacturing cdmpany, a job card will specify the type of bike, the
colour and the parts of the bike that need to be assembled. Once
the job card is made up it is passed on to assembly. The job card
(see Unit 12.2) will also be helpful to the parts department, so that
it can supply the appropriate components, and then the despatch
department, for packing and arranging the transportation of the
finished bicycle.
Ensuring quality control
Did you know ... ?
An electronic eye is a device
that scans materials and
products to check that they
meet specified standards
(e.g. that the correct measure
of fluid is contained in a
bottle).
The term 'quality' means fit for purpose. For example, you would
expect a racing bicycle to be light, with good aerodynamics for fast
movement. In contrast, a mountain bike would be sturdily built, so
that it can be ridden cross-country. Quality controllers are there to
check not only that the products are fit for purpose, but that they are
all made to the specified standards. For example, on a production
line producing carbonated drinks like cola, each can coming off
the line should contain a given quantity of liquid, with the same
consistency. The quality control office will take regular samples
to ensure that these quality standards are consistent. Today, many
factory processes can be monitored by computers and electronic eyes
that automatically check the consistency of products.
The production office is responsible for making sure that quality
control tests take place using the right procedures, at the right times.
The results of the tests need to be officially recorded and reported.
The documents will be stored safely and quality inspection reports
will be produced regularly for managers.
Costing of finished products
Products need to be able to sell for a profit. It is easy to know how
much a product sells for - this is the price. However, it is much
more difficult to find out how much a product costs to produce. The
production office will work out the cost of a product, working with
the accounts office.
There are two types of costs that go into making a product:
• Direct costs: Costs that can be associated with producing one
unit of a product, for example, the cost of the cloth that goes into
making one skirt.
• Indirect costs: Costs that cannot be associated with producing just
-
12 12.1 Functions of staff in the factory office
one unit. For example, the electricity used to power machinery is
used to produce many products. The lighting in a factory is spread
over many different production lines.
Did you know ... ?
Combining the direct and
indirect costs of individual
items enables a business
to calculate how much
an individual product is
contributing to profits.
Sometimes it reveals that a
product is making a loss and
thus needs to be cut out.
Costing involves:
• finding out the direct cost of producing one unit of a product
• finding out the indirect cost of producing one unit of a product.
The way to do this is to find some way of finding out what proportion of
the indirect costs of running a business can be allocated to one product.
This is a complex task and one that you will learn about if you study
accounts in the future or go on to work in a production office.
Liaising with other departments
From studying office practice you should now be aware that the
various offices that make up a business have to work very closely
together. The sales department and marketing departments of a
company are able to get a fairly good idea of how much they are
going to be able to sell of different products. This information is
then passed on to production, so that an MPS can be worked out.
Production then needs raw materials, components and consumables.
Therefore, production makes out requisitions for the purchasing
department. Production also requires employees to staff the
production line, so they liaise with HR. The production workers
need to be trained - hence liaison with the training department. In
addition, production constantly needs to work with the accounts
department, to work out costs, and to pass on invoices and other
documents. This is shown in Figure 12.1.1.
t
r
r
Sales and
marketing
prepare sales
plans
Key points
The factory office carries
out administrative working
for the operations/
production department.
The factory office keeps
records, including
production plans and job
cards.
The factory office makes
sure that the right
production documents
are sent to the right
departments.
The factory office also
takes responsibility for
handling important paperbased activities, such as
keeping quality control
records and details
setting out the costings of
various products.
I
+
Accounts office
keeps financial
records and helps
with costings
Information is
passed on
t
Production
creates MPS
!
Orders for parts,
raw materi als,
consumables and
machinery passed
on in requisition to
purchasing
department
Figure 12.1.1 Communication between different departments
+
Request human
resources from
HR department
12.2 Duties of a clerl< in the factory office 12
Test yourself
1 What details are recorded on a production schedule?
2 When a production plan has been set out, what other schedules can be
created for the use of resources?
3 What sorts of health and safety responsibi lities does the factory office
have responsibility for?
4 What is quality control? What steps can the factory office put in place to
ensure effective quality control?
5 What are the TWO main types of costs that are calculated in a costing
process? Who is responsible for calculating these costs?
6 What other departments does the factory office liaise with?
r::,- . ---.- ·~ - .
~
.
1.2.2 Duties of a clerk in the factory office
'
OBJECTIVES
By the end of this unit you
should be able to explain the
duties and responsibilities of
a clerk in the factory office.
A clerk in a production/factory office is responsible for the
paperwork involved in making sure that production is carried out
efficiently. Today, much of this work will be carried out on computers,
using software designed to produce information about production.
Preparation of a shift roster
A shift roster is simply a list of who is working when. The purpose
of creating the roster is to make sure that you have enough staff
working when they are required.
Table 12.2.1 is an example of a roster.
Employee
Monday
12
Tuesday
13
Wednesday
14
Thursday
15
Friday
16
W. O'Grady
9- 5
9- 5
9- 5
2- 5
9- 12
H. Distin
9- 5
9-5
9- 5
9- 5
9-5
M.Alibu
12- 4
12- 4
12-4
12- 4
12- 4
M. Cyrus
9- 5
9-5
12- 5
12-5
12-5
W. Pound
12- 3
12- 3
9- 5
9- 5
9- 5
P. Singh
9- 5
9- 5
9- 5
9- 5
9-5
G. Bush
9-12
9- 12
12- 5
12-5
9- 5
Table 12.2.1 Shift roster
Another way of setting out the roster that is helpful to the production
office is to show the hours that individual employees will be working.
An example of this is shown in Table 12.2.2.
12 12.2 Duties of a clerk in the factory office
Employee
9-10
10-11
11-12
12- 1
1-2
2- 3
3-4
4-5
W. O'Grady
✓
✓
✓
✓
✓
✓
✓
✓
H. Distin
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
✓
M.Alibu
M. Cyrus
✓
✓
✓
W. Pound
P. Singh
✓
✓
✓
G. Bush
✓
✓
✓
Table 12.2.2 Hourly roster
The roster format shown above makes it possible to identify where
there may be potential shortages of labour at work ( e.g. between
4pm and 5pm), and to make sure that there are enough employees
working to guarantee that production targets can be met. Only
O'Grady, Distin, Cyrus and Singh are rostered to work between 4
and 5. Should any of them fail to turn up to work, the production line
could be understaffed at that time.
Daily production reports
Production planners set daily production targets for different parts of
a factory. For example, they may plan to achieve given levels of daily
output from a particular machine or production line. The production
report compares numbers of products actually produced with those
that were planned. It is also possible to record the actual number of
hours machines worked, compared with planned hours, to identify
where problems have occurred.
Case study Using a production report to meet production
targets
Production report machines 1 and 2
>,
>,
IV
"O
C
0
>,
IV
IV
"O
m
C
"O
m
==
i=
I
Planned output (units)
1,000
1,000
Actual output (units)
1,000
Planned hours machine A
>,
IV
~:I
i;'
·c
"O
~
u.
1,000
1,000
1,000
800
1,200
800
800
10
10
10
10
10
Actual hours machine A
10
6
11
6
4
Planned hours machine B
10
10
10
10
10
Actual hours machine B
10
10
11
10
12
12.2 Duties of a clerk in the factory office 12
Activity
Try to explain what happens
on the Thursday and the
Friday. How useful do you
think a production report like
this would be?
The clerk is given a production plan for the week ahead. It is then the
job of the clerk to report production achieved compared with the plan.
Managers can then take actions to keep on track. You can see from the
production report above that the production target is to produce 1,000
units a day from two machines running for 10 hours a day. On the first
day this is achieved. However, the report shows that on the second day
there are problems with machine B, which is only operational for six hours .
Therefore, the production planner takes the step of increasing the hours
the two machines work on Wednesday, to get back to the production target
of 1,000 units a day.
Preparation of documents used in production
A clerk in the production office should be able to complete the
following forms that are used in the factory office:
• job cards
• job cost cards
• cost analysis
• planning masters
• time cards.
Job cards
A job card sets out the details of a job that needs to be completed.
A job is a one-off task of work, such as making a production run of
shoes or dresses, or the manufacture of a shipment of cars.
For example, a textile company may receive a n order from a retailer,
setting out the requirement to produce 200 polka-dot dresses. The
production engineers or designers working for a company will work
out the designs for the item. The production office (working with
the designer) will then organise job cards. The job card will then be
passed on to the production team that is responsible for creating the
job.
To produce 200 polka-dot dresses you would need to create a job
card and a cost card. The job card should contain:
• job number
• description of the job
• quantity required
• time required to complete the job
• materials required to complete the job.
Figure 12.2.1 shows what the job card would look like.
Where a job consists of a seque nce of operations ( e.g. assembling a
machine), the job card may list the sequence of activities and how
long each one should take. The job card will then accompany the job
of work as it is passed from one part of the factory to the next. When
a particular process is completed, it can be ticked off on the job card
so that the production supervisor can check on the progress along the
line.
-
-
12 12.2 Duties of a clerk in the factory o ffice
Guyana Dress Making Company
Job card
Date:
12 September 2012
Job title: Polka-dot dresses
Job no: 1258
Job description:
Cutting of material
Shaping of material
Sewing of finished garments
Finishing of garments
Materials:
Polka-dot 1 m width
Quantity: 500 m
Machinists required:
Quantity required:
Time taken:
Labour time per dress:
3
200 dresses
100 hours
30 minutes
Approved by:
S.Smith
Production manager
Figure 12.2.1 Job card for 200 polka-dot dresses
Job cost cards
Another important record that is kept by the production and
accounts office working together is the job cost card. These are used
for costing purposes, to identify how much it costs to make particular
products. Estimated costs can be worked out for the production of
items. The estimates can be compared with actual costs, which may
be different because of problems and difficulties associated with
making a good.
Date:
12 September 2012
Style:
48
Fabric:
Fabric cost:
Polka-dot dress
Cotton
$800.00 (200 X $4.00)
Estimate ($ per garment)
Labour
Cutting
1.00
Shaping
2.00
Sewing
5.00
Finishing
2.00
Material cost
Fabric
4.00
Buttons
0.50
Indirect costs
2.50
Basic cost ($)
17.00
Basic cost x 200% ($)
51.00 store price
Figure 12.2.2 Cost card for 200 polka-dot dresses
Actual cost
12.2 Duties of a clerk in the factory office 12
Figure 12.2.2 shows what the cost card for the polka-dot dress job
described above would look like.
The cost card shows the estimated costs of producing the garment. Of
course the actual cost may prove to be higher, for example, if there
are production problems leading to fabric being wasted, or if the
dress requires more labour time than is costed for.
You can see from the example given that the direct costs are the
labour and material costs, and the indirect costs will be other costs,
such as lighting, power and rent of the dressmaking business.
Activity
You are required to produce a job card and job cost card for the
manufacture of 400 pairs of men's grey trousers. You will make out these
documents using the following information.
The job number is 1259 and the date is 15 September 2012. The work has
been approved by the production manager, S. Smith. The job will require
1,000 m of grey woollen cloth. Five machinists will work on the job for a total
of 150 hours. The work will involve cutting, shaping, sewing on the buttons
and pressing the trousers.
The materials wi ll be the cloth and the buttons.
Each pair of trousers requires 2 m of fabric. The fabric costs $3.50 per
metre. The estimated labour costs are: cutting ($1.00); shaping ($3.00);
sewing buttons ($3.00); and pressing ($0.80). Indirect costs are $2.00 per
garment.
1 Produce a job card and a cost card.
2 Calculate the cost of producing each garment and the total cost of
producing 500 pairs of trousers.
3 What will be the store price of each pair of trousers if the shop marks
them up by 100 per cent (i.e. sells them at double the manufacturing
cost)?
Cost analysis cards
Cost analysis is largely the work of the accounts office, but
information about the costs of various jobs may be supplied by the
production office.
Essentially, cost analysis involves analysing the various costs that go
into a particular job. Comparison can be made between the costs of
carrying out different jobs. Cost analysis makes it possible to identify
where costs are too high.
It is helpful to look at the percentage of costs that go into a particular
job.
Table 12.2.3 shows a cost analysis card comparing two jobs.
The cost analysis table makes it possible to compare the cost of
producing different items. For example, you can see that the cost of
producing grey trousers is considerably higher than producing black
ones, largely because of the higher material cost as a percentage of
total cost (60 per cent compared with 46.6 per cent). However, the
labour cost is relatively lower for the grey trousers.
-
12 12.2 Duties of a clerk in the factory office
Grey trousers
Black trousers
Cost($)
% of total
Labour
1,000
10
3,000
20
Materials
6,000
60
7,000
46.6
Indirect costs
3,000
30
5,000
33.3
Total cost
10,000
100
15,000
100
Production total
1,000
3,000
Cost per unit
10.00
5.00
Cost($)
% of total
Table 12.2.3 Cost analysis table
Planning masters
A planning master is a plan setting out all the jobs that will be carried
out in a factory unit in a given week.
The purpose of the planning master is to show:
• what jobs will be carried out during th e week
• which machinery, materials and labour will be used to do those jobs.
For example, if a factory has three production lines and needs to
produce eight different products during the week, the production
lines will need to be altered at key times during the week to
concentrate on the different jobs.
For example, job 1 might be carried out on production line 1 on
Monday and Tuesday. The planning master will show how many
employees and what materials will be required by production line 1
on those days.
Each week the production team in a factory will prepare the planning
master for the following week. On Friday afternoon it is then possible
to set up the machinery for work to start on the following Monday. The
machine setters will be able to see when and where they are required
to alter machinery to produce new products. Stores will be able to see
which materials will need to be sent to which production line at set times
during the week. Human resources will be able to create time sheets
showing which workers should be working on which lines at which times.
Time cards
Time cards can be used to identify what tasks particular employees
should be doing at particular times of the week. T he data on the time
card can also be used for working o ut the cost of doing a particular
job. For example, if two production line workers are required to
be working on production line 1 for five hours each on Monday,
producing product A, then 10 hours of labour time will need to be
costed into the production of product A
12.3 Duties of a clerk in a transport office 12
Activity
A new trainee has started work in the production office and has asked
you the following questions about documents to be used. Suggest an
appropriate solution in each case.
('
Key points
A factory office clerk
is responsible for the
paperwork and electronic
records produced in the
factory office, typically
working with a computer.
Typical documents
prepared by the office
clerk include a shift roster,
production reports and
production documents.
A shift roster is a plan
of which employees will
work at what times.
A production report
compares what has
been produced with the
production plan.
Other production
documents include cards
setting out details of jobs
to be completed, costing
cards showing the cost
of carrying out particular
jobs, and time cards to
show when employees
should be doing what.
1 What paperwork do I need to fill in to show the various tasks that are
going to be involved in making a particular product?
2 How can I make a comparison of the relative costs of producing similar
items?
3 How do I find out the cost per unit of producing a new dress? The
designer has given me all the measurements and the expected labour
hours required.
4 What is the document that shows all the jobs that are taking place in the
factory next week, and what resources are being used to produce those
jobs?
5 What is the name of the document that enables me to calculate labour
costs based on hours worked on a particular job?
Test yourself
1 Set out a template showing the typical details that you would include in
a shift roster, using the names of 10 students in your class, working in
an office from 9am to 5pm each day.
2 Why is it important to compare planned output with actual output in a
daily production report?
3 Create a job card (no. 357) for the Guyana Dressmaking Company,
to produce 300 blue dresses, using 750 m of blue silk material of 1 m
width , in 150 hours.
4 What type of costs will typically be included in a job cost card set out to
produce 300 blue dresses?
5 Which department in a company typically produces a cost analysis
card? What part does the factory office play in working with these cost
analysis cards?
6 Why is a planning master so important?
12.3 Duties of a clerk in a transport office
OBJECTIVES
By the end of this unit you
should be able to identify the
duties and responsibilities o f
a clerk in the despatc h and
transp ort office.
Many large businesses need to prepare goods for despatch and to
arrange the transport of goods to customers. They may also need to
organise the transport of goods and raw materials into their own stores.
For example, a large company manufacturing textiles would need to
organise for the delivery of bales of cotton, machine parts into the
factory and finished garments out of the factory. Large retailers, such
as busy supermarke ts, will receive deliveries of goods eve1y day.
The process of organising the supply chain is referred to as 'logistics'
and requires careful planning.
a l
,.. .. r _ _
., • - • . ,
-
_,..
._-.,.- • •
-
12 12.3 Duties of a clerk in a transport office
Once goods have been manufactured, the despatch department will
need to organise:
• packaging of items, including suitable cases, palettes and so on, for
safe transport (this might also include the labelling of packages)
• preparatio n of suitable documents to support the despatch process
• a de livery schedule, setting out times and places for the delivery of
goods
• the insurance of the goods while they are being transported
• arrangements for payme nt and recording of transactions.
The sequencing of the organisation of these tasks will vary, but it
is essential to arrange the appropriate pape1work even before the
distribution process starts.
Preparation of documents for despatched goods
The first task of a clerk in the transport of office is to prepare suitable
transport documents.
We will look first at some of the important paperwork required for
local (within a country or region) distri bution of goods.
Delivery schedule
The delivery schedule is a document setting out the timing of
delive ries and the route the driver will take. The delivery schedule
should be worked out at the e nd of the week for the following week's
de live ries. It will set out where the drivers will deliver items to the
following week a nd at what times. Table 12.3.1 is a n example of a
delivery schedule.
Driver
Monday
Tuesday
PWilliams
Portmore 9am
Portmore 9am
Spanish Town
11 am
Spanish Town
1pm
Malvern 3pm
Malvern 3pm
Malvern 11 am
Malvern 11 am
K. Chanderpaul
Wednesday
Spanish Town
1pm
Spanish Town
11am
Hayes 3pm
Malvern 1pm
Hayes 1pm
S. Singh
Thursday
Spanish Town
9am
Hayes 10am
Hayes 10am
Table 12.3.1 Delivery schedule
Spanish Town
10am
Malvern 11 am
Malvern 11 am
Hayes 2pm
Spanish Town
9am
Spanish Town
9am
Portmore 9am
Havyes 1pm
Malvern 12pm
P Manley
Friday
Hayes 10am
12.3 Duties of a clerk in a transport office . 12
The delivery schedule is related to making sure that orders get to.
customers at the most convenient times. It needs to be organised
in such a way as to cover as many destinations as possible. Should
customers query an order, it is the n possible for despatch to
identify which driver should have delivered what goods and at
what time.
The despatch department will make out despatch documents that
are given to the driver, which they must get signed as proof of receipt
by custo mers. When delivering goods, the driver will ask the person
receiving the goods both to sign for them and to print their name.
Printing of the name is important so that it is possible to check later
on should any of the goods go missing.
Destination sheet and delivery note
The driver who delivers the goods will also be given a destination
sheet. This sets out the addresses where goods must be delivered and
the delivery note that goes with the goods.
The destination sheet shown in Figure 12.3.1 is for the driver Peter
Manley, who has to make deliveries at Hayes by 10am on Tuesday.
Destination sheet (for Peter Manley)
Did you know ... ?
l
Using modern technology,
many companies operate
an electronic system for
deliveries. The driver has
an electronic keypad, which
the person receiving the
goods signs on delivery.
This information can then be
transferred to the computer
system of the firm making the
deliveries, as proof of delivery.
Date:
Tuesday 11 September
Vehicle
no.
Driver
Location/time
Delivery
note
Customer's
name
14
P Manley
Brook Industrial Estate
1784
Brook
Industries
1785
Super Store
Builsbrook Road
Hayes (10am)
Lot 1
Newtown Square
Hayes (12.30pm)
Figure 12.3.1 Destination sheet
The delivery note is often just a copy of the invoice for the goods.
It will have the title 'Delivery note' stamped o n it and there will
be several copies. When the driver delivers the goods, the person
receiving them should check them before signing for the delivery. In
this way, there is proof that the goods have been delivered and what
condition they were in when received. The delivery note will look like
Figure 12.3.2.
-
12 12.3 Duties of a clerk in a transport office
Delivery note
From:
To:
The Office Stationery Store
Kingston Jamaica
Brook Industries
Brook Industrial Estate
Bullsbrook Road
Hayes
Jamaica
Catalogue no.
11 September 2012
Quantity
Description
Price($)
1784
20
Reams of white paper
60.00
2062
20
Reams of blue paper
100.00
2789
100
Highlighter pens
150.00
Total
310.00
Terms: Cash on delivery
E&OE
Customer's name:
Please write your name here:
Customer's signature:
Please sign here:
Figure 12.3.2 Delivery note
Advice note
Did you know ... ?
Today, many advice notes are
sent electronically by email,
or another form of electronic
transmission, from the
supplier to the firm expecting
delivery of goods.
The despatch department often also makes out an advice note before
sending goods to customers. Again, the advice note will normally be
a copy of the invoice, accompanied by a brief note to say when the
goods will be delivered, who the carrier will be and what time the
goods are expected to arrive.
It is very important to make out a clear advice note so that the
customer is ready and, where necessary, waiting to receive the goods
when they arrive. For example, the advice note might specify that the
goods are being sent cash on delivery, so the purchaser needs to have
the cash available at the agreed time (see Figure 12.3.3).
Office Stationery Store
Kingston
Jamaica
Advice note
To: Brook Industries
Brook Industrial Estate
Bullsbrook Road
Hayes
Dear Sir/Madam,
The paper and stationery that you ordered in your order form (no. 345) will be
arriving by our own transport at 10am on 11 September. Please find a copy of the
invoice which advises you of the goods to be supplied. Please note that the terms
are cash on delivery. We look forward to continuing to do business with you.
Yours faithfully
Pearline Dean
Despatch manager
Figure 12.3.3 Advice note
12.3 Duties of a clerk in a transport office 12
Insurance certificate
Another document that the despatch office will be responsible for
is the insurance certificate. It is essential to take out insurance for
goods in transit. The despatch office wilJ work regularly with a small
number of insurance underwriters to insure goods. Where goods
are being sent by the post, it is possible to take post office insurance
cover. Similarly, with other carriers, such as Wells Fargo or DHL,
insurance can be taken out to cover loss or damage to the goods.
Storage of information of couriers employed
A large company will deal with a number of couriers for the delivery
of different types of goods. For example, it may deal with couriers
for transporting urgent packages by motorbike or by air. It will deal
with other freight companies that deal with larger consignments of
goods. It may also work with freight-forwarding agents (i.e. specialist
businesses that handle all the details of transporting goods for their
clients).
It is important to keep a record of these carriers, so that the
information can be shared within the company. Ideally, therefore, the
information will be kept in a database that will be accessible within
the company's intranet communication system, for use by other
departments, such as sales.
The database should be organised into a number of records and
fields. The records will contain the names of the couriers, perhaps
arranged into different categories ( e.g. local, regional, national and
international). The fields should be those that are most relevant, for
example:
• reliability - performance in delivering on time
• speed of delivery
• cost of delive1y
• terms of delivery.
Once the database is set up, it will be possible to enter search details
to find the most suitable carrier. For example, if sales require a
carrier that can deliver the next day, with 100 per cent reliability
and a cash-on-delivery service, this information should be able to be
generated by the database.
Dealing with transport contractors and agents
The transport office is responsible for dealing with contractors and
agents for the carriage of goods. In order to understand how this
relationship works, it is helpful to identify the main participants in
the carriage of goods.
The term 'consignor' refers to the person/organisation from whom
the carrier receives the goods. The 'carrier' is the firm that carries the
goods. The 'consignee' is the person entitled to receive the goods.
12 12.3 Duties of a clerk in a transport office
Consignor sends
-
Carrier delivers
-
Consignee receives
The term 'freight' refers to the remuneration payable to the carrier
for the carriage of goods under contract. A 'contractor' is under
contract to provide a transport service for a shipper. Therefore, the
term 'contracting carrier' refers to the person entering into a contract
of carriage with the contracting shipper ( consignor).
CONSIGNMENT NOTE ..............
ABC
shipping
Consignor
Namo.........................
Address...............
Details ol goods
Figure 12.3.4 shows a typical consignment note.
Insurance
Many firms use agents to handle their transport for them. The
shipping agent arranges for goods to be collected and delivered to the
required destinatio n. The work of the transport office then involves
liaising with the transport agent to make sure that the instructions
relating to the consignment of goods are clear. The transport agent
will charge a fee for its services.
Consignee
Name.........................
Address .....................
Te,ms & Conditions
The contract for the transportation of goods is usually set out in a
consignment note and this will normally be produced by the transport
company (contractor). Usually this will be a standard form, setting
out:
• details of the consignor (name and address)
• details of the consignee (name and address)
• details of goods ( quantities, types)
• relevant insurance details
• legal conditions under which the goods are being transported (i.e.
who is responsible for what in the case of accident/damage, etc.).
Figure 12.3.4 Consignment note
Liaising with the sales department
An important part of the work of a clerk in the transport office
will be to liaise with sales with regard to the delivery of goods.
Sales will often arrange with customers to deliver by a certain
date and to set conditions. It is important then that transport
and despatch are clear about these requirements, and make sure
that goods are delivered as expected. For example, if sales have
agreed to deliver by air, it would be inappropriate for despatch
to send the goods by sea. Sales will always want to make sure
that despatch is using reliable carriers. D espatch will also need to
liaise with accounts to provide documentary evidence of charges
for transpo rting goods.
Adhering to statutory requirements
m
Transporting and despatch of goods involves some complex legal
requirements. Someone has to be responsible for the goods while
they are being shipped, including the insurance and ownership of the
goods while they are in transit. In addition, there are responsibilities
associated with making the correct customs declarations, and for
making sure that goods can be lawfully transported to the required
destinations. For example, there are restrictions on the transport of
explosive, flammable and potentially poisonous products. There are
12.3 Duties of a clerk in a transport office 12
restrictions on the transport of certain animals. T here are also import
restrictions - some goods may not be allowed to be transported to
certain countries. Working in the despatch department, it is essential
to know what can be sent where and what paperwork needs to
accompany goods in transit.
We can now look at some of the paperwork required for the
transportation of goods internationally.
Figure 12.3.5 Paperwork required for the transportation of goods internationally
Freight note
The freight note was described earlier as a consignment note (see
Figure 12.3.4). This is the charge for carrying the goods. It should be
signed on receipt to provide evidence that the consignee has received
the goods. Any breakages or missing items should be recorded before
the note is signed.
Bill of lading
Activity
Figure 12.3.6 (on the
following page) shows a
typical bill of lading. You can
see that the top part will be
made out when it has been
agreed what goods will be
sent. The bottom part will be
signed when the goods have
been received.
1 What does the term
'shipper' mean?
2 What does the term
'consignee' mean?
3 What does the term 'COD'
on the bill of lading mean?
4 What other alternative
payment methods to COD
could have been used?
To 'lade' means to load goods, typically onto a ship. The bill of lading
is a document that is issued by a carrier to a shipper, acknowledging
goods received for cargo. The document sets out where the goods will
be delivered to (a named place).
A bill of lading performs the following main functions:
• It is a valid contract for the carriage of goods.
• It is a receipt signed by the carrier to acknowledge receipt of the
goods for carriage.
It will include the following details:
• name of the company sending the goods to be shipped
• name of the company transporting the goods
• flag of nationali ty of the transporting company
• description of the goods
• weight of the goods
• terms under which the carrier agrees to transport the goods.
At least three copies will be made of the bill of lading.
Consignor keeps one copy -+ Carrier signs second copy -+
Consignee is sent the third copy as an advice note ahead of the
consignment
12 12.3 Duties of a clerk in a transport office
Bill of Lading
TRAILERIC"':.~~~~========
10
fROM
Shipper
Slleet
Origin
City/State/Zip
CityfSlate/Zlp
SpecW ln1troelloo1:
Route:
SltPPER'S INSTRUCTIOIIS
FOR PAYMI HT, H HD Slll TO
NO. SHIPPll'fC UHrTS
TIME
OUCRIPTIOH0# ARllCU:I
SPECW. MARKI & EXCf:POOIIS
C.OA A..'IIOUNT: S
l'.UUfC_O_D.
WOOHT
RATE
CHAAOU
C.O.D. fH
PREPAID
0
COllECT
0
TO!
AOORUS:
1 ~1r..\'lrwnlfle lt1eudfpa,r-~on,\<UM, Ahffl,etl-
~
io 1U'.e 5Pf(VA,-/"__,.V,,.~Jff':l«dtcll.W
viNtc,l~Poptr'tt. Th9~ot dtdhdvwtof11141
P!'llf)tl1ybhetcb'/l~f ...~1tdby lhoth'~Wbenol
e,uldnJ
$
pe,
CHECK 80)t. If PREPAID
JCatrief
f Per
Ptr
0
Date:
Find fflOfo foons ror your business et WW.Y eolctP<Ol)&U! oomlformnel
Figure 12.3.6 Bill of lading
Bill of exchange
Did you know ... ?
A bill of exchange is
essentially an IOU that is
used in international trade.
It basically says the 'I' (the
purchaser) agree to pay
'You' (the seller/trader) a
set amount of money in
30/60/90/180 days.
When goods are traded internationally there will need to be some
form of paying for the goods across borders.
While today most goods are paid for using international banking
tra nsactions for direct payme nt, many goods a re still paid for by a bill
of exchange . A bill of excha nge is a means of buying goods on credit.
An importer will want to receive goods, then sell them, and finally
pay for them. Typically, credit te rms given are for 30 days, 90 days
and even 180 days.
A bill of exchange is a document made out by the seller, requiring the
buyer to pay at some date in the future ( e.g. in 90 days' time).
A benefit of bills of exchange is that they are usually negotiable
instruments. T his means that the holde r of the bill of excha nge can
sell it to a third party for a discount. For example, if the Leeward
Islands Cherry Company sells $1,000.00 of maraschino che rries to
an importer in Florida (US) using a 90-day bill of exchange, the
Leeward Isla nds Cherry Company could the n sell the bill of exchange
to a bank for a d iscount, say of 2 per cent. Therefore, the bank would
pay $980.00 for the bill a nd wait the 90 days for payme nt. Each of the
three parties benefits:
12.3 Duties of a clerk in a transport office 12
• The US importe r receives ma raschino cherries on credit, which it
can the n sell and pay for afte r 90 days.
• The Leeward Isla nds Cherry Company sells goods for $980.00,
getting cash in hand almost imme dia tely.
• T he ban k earns $20.00 for buying the bill and collecting the payment.
Exam tip
Airway bill
Make sure that you know the
difference between a bill of
lading and a bill of exchange.
An airway bill is a form of
bill of lading used for the
transport of goods by air.
In the modern world many goods are sent by air rather than by sea
because of the speed of transport. The costs can also be quite low,
particularly for light consignments that are not very bulky. An airway
bill performs a simila r function to the bill of lading used in sea transpor t.
An a irway bill is also called an 'air consignment no te' or 'airway bill
of lading' .
The airway bill serves as a receipt for the goods and as evidence of a
contract of carriage; however, it is not negotiable. In other wo rds, the
goods will be de livered to the consignee and cannot be signe d over to
someone e lse. In many destinations the terms on the a irway bill may be
cash on de livery. Usua lly 12 copies are made of the a irway bill. The first
three copies are counted as original copies (rather tha n duplicates).
• Copy 1 will be signed by the consignor.
• Copy 2 travels with the goods and is signed by the carrier and the
consigno r.
• Copy 3 is signe d by the ca rrier and is handed to the consignor
after the goods have been accepted for carriage.
Sometimes goods will have to travel by more than one aeroplane to
the ir destina tion. The airway bill will be used to check tha t the goods
have bee n transfe rred from one shipper to ano the r. Copies will be
kept by each carrier.
Activity
When an exporter wants to send goods by an airline, such as Air Jamaica,
they will need to carry out a number of procedures. First, they will complete
the form 'Instructions for the despatch of goods', provided by Air Jamaica.
This note provides basic details of the exporter's name and address,
the seNices required (e.g. COD), and the insurance arrangements. The
airline then prepares the airway bill, which is the receipt from the airline,
acknowledging that it has received:
• consignment note from the shipper
• contract between the shipper and airline for moving goods
• instruction sheet
• customs declaration
• bill for the freight
• certificate of insurance.
1 Why do you think that so much paperwork is required for transporting
goods by air?
2 Explain why THREE of the documents listed are required in order to carry
goods by air.
-
12 12.3 Duties of a clerk in a transport office
Airway bills can be created using computer packages. It is then
possible to track the progress ofthe goods as they move from the
consignor to the consignee. For example, when they arrive at the
airport and are signed for, this detail can be recorded electronically
so that the computer records where the goods are.
Manifest
Exam tip
Make sure that you learn
some examples of goods
for which export and import
licences are required in your
home country.
A manifest is a document setting out what is being carried on a
ship or plane, and is used for customs o r immigration purposes.
Traditionally, the manifest was used to record the names of
passengers and details of cargo carried on a ship. It would set out the
nature of the cargo and details of the consignor and consignee. From
the point of view of the despatch office, the bills of lading and airway
bills provided would need to be an accurate record of goods sent so
that they can be accurately recorded in a ship's or aircraft's manifest.
Export and import licences
Activity
Why do you think that
Jamaica requires export
licences for these products?
Choose FIVE different types
of products and provide
explanations.
The despatch office may have to arrange for export and/or import
licences for certain goods. Eve1y country has regulations about what
can enter o r leave its country. For example, a country may require
export licences to restrict the movement of rare and important
products and resources. It may require import licences to prevent
unscrupulous people from importing dangerous, illegal or harmful
products.
Case study Export licences from Jamaica
Some items require an export
licence or perm it from customs
before they can leave Jamaica.
These include:
1
-
• ammunition (explosives and
firearms)
• crocodiles and crocodile eggs
• eggs
• antique furniture
• gold bullion
• paintings - antiques
• pimento
• plasma
• sugar
• petroleum products
• motor vehicles
• live animals
• jewellery - excluding those
from the earth metals
• shells.
Figure 12.3.7 An export licence is needed to export crocodiles from Jamaica
12.3 Duties of a clerk in a transport office 12
Customs forms
A customs form sets out:
• consignor's name and address
• consignee's name and address
• details of the carrier (sometimes)
• details of the goods being transported
• value of the goods.
These details are required because customs duties (taxes) need to
be paid when certain goods are exported or imported. The customs
department is then able to calculate whether any duties (taxes)
are required to be paid and how much these will be. The despatch
department of a company will be responsible for making out the
customs declaration.
Certificate of origin
For customs purposes it is essential to know where goods have
originally come from. This is because:
• the origin of goods determines whether they can be imported
into a country or not - for example, there are embargos (bans) on
imports of goods from certain countries, perhaps because of the
political situation in that country
• the amount of customs duty depends on the country of origin.
Many goods from the Caribbean can be exported to the EU
without import duties having to be paid. However, there are other
countries that will impose duties on Caribbean imports.
One of the first documents that customs will want to see is the
certificate of origin, so that they know how to treat imports and
exports for tax purposes.
T he certificate of origin shown in Figure 12.3.8 has been witnessed by
an official from a reputable body, such as a chamber of commerce, to
show that it is a genuine document signed within the West Indies.
Certificate of origin
The undersigned: Wilbur Williams
For: West Indies Exporting Company
Name and address of shipper: Ocean Line
For the following listed goods shipped on S.S. Sea Spray
Consigned to:
Boston USA
On the date of: 22 September 2012
Marks and numbers
No. of packages
065872-06590
18
..
.
Weight (kg)
Description
1,800
Cane sugar
sacks
Sworn to before me: Joseph Windle Dated at 15 September 2012
Signature of owner:
Wilbur Williams
Figure 12.3.8 Certificate of origin
..
-
12 12.3 Duties of a clerk in a transport office
Coordination of the local and overseas delivery of goods
Key points
A clerk in the transport
office needs to prepare
the paperwork for the
despatch of goods and
to organise transport
arrangements.
The despatch department
has responsibility for a
number of steps involved
in despatching goods,
from organising the
packing of the goods, to
sorting out the paperwork
and arrangements for final
payment.
A delivery schedule sets
out the timings and routes
of deliveries.
A destination sheet
instructs drivers where to
deliver to, and when they
deliver the goods they
must hand over a copy of
the delivery note, which
they will get signed as
proof of delivery.
Large companies will need to deliver goods both locally and
internationally. An important activity carried out by the despatch
and delivery department will be to ensure smooth coordination.
For example, goods may need to travel by road, rail, sea and air to
arrive at a final destination. T his will involve careful preparation of
the documentation to cover each stage of the journey. Sometimes
a specialist freight-forwarding agent will be employed to handle
complex paperwork required to get goods from A to B, and to
arrange for the bills of lading, customs declaration forms and so on to
be set out in an appropriate way.
Fortunately, today, much of the pape1work required for the exchange
of goods can be done using computer software. Online packages
provide the documentation, such as bills of exchange and customs
declarations. The computer will then store these records in fil es that
are easily accessible. The records can be shared across the organisation
by sales, accounts, despatch and so o n, so that they can be accessed for
each department's own purposes ( e .g. acco unts identifying charges
to be recorded, sales tracking where o rders have got to, and despatch
organising the smooth movement of goods to the consignee).
Test yourself
1 Outline FIVE major steps that a clerk in a transport office would be
responsible for in organising the chain of distribution activities.
2 What important details would you expect to find on a delivery schedule?
The transport office
also keeps important
records about transport
contractors and agents.
3 Why would a driver require both a destination sheet and a delivery note?
The transport office liaises
with a number of other
departments, including
sales.
5 When would a business that has ordered goods receive an advice note?
Some important
documents are used for
international despatch
and transport.
7 Explain the following terms:
A bill of lading sets out
where goods will be
delivered to by the shipper.
A bill of exchange is a
means of international
payment for goods that
allows a period of credit
before payment.
Export licences are
required when particular
goods are sent overseas
(e.g. ones that are
potentially dangerous).
4 What do the terms 'E&OE' and 'COD' mean when they appear on a
delivery sheet? Which of these details is particularly important to the
driver, and why?
6 When comparing different couriers, what factors should the transport
office take into account when choosing a particular courier for a
particular delivery?
a Consignor
b Carrier
c Consignee
d Freight
8 Identify the document defined in each of the following descriptions:
a A document giving permission for a good to be exported or imported
through custom s.
b A means of paym ent for goods that are being despatched
internationally.
c A document that is issued by a carrier to a shipper, acknowledging
goods received for cargo.
d A valid contract for the carriage of goods.
e An air consignment note acting as a receipt for the goods.
f A document setting out what is being carried on a ship or plane.
g A document setting out where goods first came from.
End-of-unit multiple-choice - Unit 12
B
Who is responsible for packing the goods
C How many of the goods have been damaged
1
What is the document called that is produced by
the factory office each week, setting out what will
be produced in a factory/department and in what
quantities?
D
7
Cost sheet
A
Description of the goods
B
Production schedule
B
Cost of making the goods
C
Weight of the goods
D
Name of the company sending the goods
D
Production report
Which of the following is LEAST likely to appear on a
job card?
A
8
Which of the following credit terms is most widely
used with a bill of exchange?
Description of the job
A
2 days
B
Quantity required
B
7 days
C
Time required to complete the job
C 10 days
D Where the job will be delivered to
3
Which of the following is LEAST likely to appear on a
bill of lading?
A
C Job card
.2
How often the goods will be delivered
Which of the following is true?
A
The store price of a good will be lower than the
indirect cost of production.
B
The store price of a good will be higher than the
basic cost of production.
D
9
30 days
An airway bill performs the same function as which
of the following?
A
Insurance certificate
B
Bill of exchange
C Bill of lading
D Certificate of origin
C The store price of a good will be higher than the
price the customer pays.
D
4
5
The store price of a good will be lower than the
direct cost of production.
1O What is the document called that sets out what is
being carried on a ship?
A company that has ordered goods will receive
an advice note in which of the following
situations?
A
In the form of a delivery note with the goods
B
After the goods have b een delivered
C
Before the goods are delivered
D
When they need advice about invoice errors
Certificate of origin
B
Manifest
C Licence
D Customs form
.1
Short-answer questions
1
List THREE resources that the production office
would need to keep records of.
2
Who is responsible for maintaining a shift roster?
What sorts of details should be entered into the shift
roster?
3
How can a daily production report help a company
to meet its production targets?
4
Explain the difference between a job card and a job
cost card.
Who is the consignor of goods?
A
The person who receives the goods
B The person from whom the carrier receives the
goods
C The person who carries the goods
D
6
A
The person who pays for the goods
A freight notes sets out which of the following?
A
The charge for carrying the goods
-
5
What sorts of comparisons does a cost analysis card
help a business to make?
6
When a driver delivers a consignment of goods, they
will ask the person receiving the goods to sign for
them.
A
deliveries of machine parts. The clerk consults
records kept in the transport office, showing couriers
that the company has used before. Should he
use Courier X, which charges the highest delivery
charges, will deliver quickly, but is unreliable? Should
he use Courier Y, which charges a little less than
courier X, takes two or three days to deliver, but is
reliable? Or should he use Courier Z , which charges
the lowest, takes two or three days to deliver and is
usually reliable, but not always?
What sorts of documents wi ll they ask them to
sign?
B
What is the purpose of asking the recipient to
sign for the goods?
9
7
Explain the different purposes of each of the
following:
A
Advice notes
B
Delivery notes
Explain the main similarities and differences between
a freight note and a bill of lading.
10 What is a bill of exchange? How does it help an
importer of goods to pay for essential stocks and
goods?
C Invoices
11 Give FIVE examples of goods for which an import
8
-
A clerk in the transport office is told by the
production department that they need urgent
licence may be required.
· lnllex
m
accounting 241- 94
accounts receivable 246-8
attributes, good office workers'
262
audit 249
balance sheet 261 - 2
bank accounts 249-50
bank statements 280- 2
cash book 258-60
cheques 253- 4, 267- 8, 274,
278- 80
credit control 244- 6
credit/debit notes 248-9, 265-6
equipment 268- 73
final accounts 260- 2
financial institutions 277
financial records 242- 6
imprest system 290- 3
ledger entries 255- 6
payment procedures 274-80,
290-3
payroll 242-4, 251- 2, 264- 5
petty cash 290- 3
profit and loss account 261
reconciliation 254- 5, 282- 9
review questions 294
software 272-3
spreadsheets 272-3
statements, bank 280- 2
statements of account 256- 8,
266-7
trading account 260
additional indicators, information
management 147- 8
addressing machines, mailing
activities 104
alphabetical systems, information
management 141 - 3
analytical skills 35
annual general meeting (AGM)
187- 9
answering machines, telephone
87- 8
appointments, managing 171 - 4,
195- 6
attire, job interviews 125
attitudes, desirable 36-8, 128- 30
attributes, good office workers'
38- 41, 169- 70,262
automating mail activities 103- 7
m
bar graphs 68
barriers, communication 73- 5
binding machines 24- 5
business letters 57- 61
buying see purchasing
m
cameras 28
card ind icators, information
management 147
cellular offices 18
centralisation/decentralisation
decision-making business
structures 72-3
filing 158- 60
organisational structure 16- 17
charge-out cards, information
management 146- 7
charts
organisational charts 11- 15
pie charts 69
chronological systems, information
management 144
classifying records, information
management 140- 5
clients, internal/external,
relationships 43- 4
colleagues, relationships 42- 3
colour-coding, information
management 148
communication
barriers 73- 5
climate 71- 2
decision-making business
structures 72- 3
electronic 49-53
flow 71-3
internet 49- 52
media selection 76-8
review questions 112
visual communication 65- 70
written communication 53- 61
Company's Act 187-9
computer literacy 34
computer technology 26- 30
see also office equipment
hardware 26-8, 30
peripherals 26-8, 30
software 28-9
stock control 315- 16
confidentiality 39, 40, 77
copyright, information management
153- 4
correspondence see business
letters; written communication
courier services 92- 4
transport office 349-50
cross-referencing, information
management 146
culture, school vs organisation
128- 30
customer service (CS) 331 - 3
see also marketing
clerk's duties and responsibilities
332- 3
review questions 334
m
data processing 2- 3
data security, information
management 138- 40
databases, information
management 139
decentralisation see centralisation/
decentralisation
decision-making business
structures 72- 3
deployment of employees
human resource management
(HRM) 218-19
organisational structure 15
deportment/conduct, job interviews
127
deportment/grooming 40
dictionaries, information source
107- 8
discounts, sales 330
distribution/exchange of goods and
services 2
-
Index
documents
meetings 180- 3
travel 205- 7
duties/positions/responsibilities 4-7
II
electronic communication 49-53
electronic filing, information
management 145
electronic records management
136- 40
electronic storage media 157
email 51- 2
employment see jobs/employment
envelopes 63- 5
environmental awareness 36- 7
equipment, office see office
equipment
ergonomics 30- 3
health and safety tips 32- 3
office equipment 31- 3
external clients, relationships 43- 4
II
factory office 335- 45
activities 337- 9
clerk's duties and responsibilities
339- 45
coordinating production activities
335-6
production documents 341-5
production reports 340-1
review questions 357- 8
shift roster 339- 40
staff 335- 7
filing 155-60
centralised/decentralised 158- 60
electronic storage media 157
inactive files 149- 51
supplies 156- 7
franking machines, mailing activities
104- 5
functions of the office 1- 3
m
geographical systems, information
management 143
graphs 65- 9
m
-
Hansard, information source 109
hardware, computer technology
26-8,30
health -and safety tips, ergonomics
32- 3
histograms 67-8
honesty 39
human resource management
(HAM) 211 - 40
appraisal 219- 21
clerk's duties and responsibilities
228- 32
deployment of employees
218- 19
d isciplinary procedures 226-8
employee turnover 235- 8
induction 217- 18
job descrip tion/specification
212- 13
legislation 232-5
recruitment 214
review questions 239- 40
staff welfare 223- 6
training 221- 3
D
inactive files, information
management 149- 51
indexing, information management
146- 8
information dissemination 3
information management 133- 64
additional indicators 147- 8
alphabetical systems 141- 3
card indicators 147
charge-out cards 146- 7
chronological systems 144
classifying records 140- 5
clerk's duties and responsibilities
161- 3
colour-coding 148
copyright 153- 4
cross-referencing 146
data security 138- 40
databases 139
electronic fi ling 145
electronic records management
financial records 242-6
geographical systems 143
inactive files 149- 51
indexing 146- 8
legal issues 151- 5
numerical systems 145
out sheets 146- 7
ft ♦
215- 16
inventory see stock control/inventory
II
jobs/employment 113- 32
choosing a job 116-1 7
finding employment 113-15
interviews 125- 7, 215-1 6
job applications 117- 20
job description/specification
212-13
job-related letters 121- 4
review questions 131 - 2
II
labour laws 128
laminators 24
layouts, office 17- 20
legal issues, information
management 151- 5
legal requirements
meetings 187-9
transport office 350- 1
legislation, human resource
management (HAM) 232- 5
letters
business 57- 61
job-related 121 - 4
line graphs 67
literacy and numeracy 34
m
136- 40
filing 155-60
•
review questions 164
stock records 31 1- 16
subject systems 143- 4
systems 133- 6
tickler files 147
information sources 107- 11
integrity 39
internal clients, relationships 43- 4
internet
communication 49-52
information source 109, 11 0
inteNiews/interviewing 46- 7
jobs/employment 125- 7,
h ,.,._ ____......__
mailing activities
see also postal seNices
addressing machines 104
automating 103- 7
collating machines 106
folding machines 106
franking machines 104- 5