INTRODUCTION
In this unit you will find out about the following things:

ELECTRONIC FILING

ELECTRONIC STORAGE

ENTRY OF ELECTRONIC INFORMATION

ELECTRONIC FILE MANAGEMENT

DATABASES

USES OF DATABASES

BENEFITS OF DATABASES

SPREADSHEETS

USES OF SPREADSHEETS

BENEFITS OF SPREADSHEETS

ADVANTAGES OF ELECTRONIC FILING

DISADVANTAGES OF ELECTRONIC FILING

SUITABILITY OF ELECTRONIC FILING ©

MANUAL (PAPER BASED) FILING

MANUAL (PAPER BASED) STORAGE

MICROFILMING

ENTRY OF MANUAL (PAPER BASED) INFORMATION

MANUAL (PAPER BASED) FILE MANAGEMENT

ALPHABETICAL, NUMERICAL and CHRONOLOGICAL FILING

ADVANTAGES OF MANUAL (PAPER BASED) FILING

DISADVANTAGES OF MANUAL (PAPER BASED) FILING

SUITABILITY OF MANUAL (PAPER BASED) FILING ©

CENTRALISED v DECENTRALISED FILING ©

SYSTEM EVALUATION ©
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UNIT 3b – METHODS OF FILING
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WHAT ARE THE MAIN METHODS OF STORING FILES?
There are 2 main methods for storing files:

ELECTRONIC FILING SYSTEMS
Here information is stored and organised on a COMPUTER SYSTEM.

PAPER BASED (or MANUAL) FILING SYSTEMS
Here original copies of documents are stored and organised BY HAND.
or
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ELECTRONIC FILING SYSTEMS
How is information stored on an electronic filing system?
Information in an electronic filing system is stored by a COMPUTER on:
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2
3
4
5
FLOPPY DISK

3.5” plastic covered REWRITABLE magnetic storage disk.

Stores up to 2 MB of information (1 MB = 200 pages).

Disk is portable and can be used in machines with floppy drive.
ZIP DISK

3.5” plastic covered REWRITABLE magnetic storage disk.

Stores up to 200 MB of information (100 floppy disks).

Disk is portable and can be used in machines with ZIP drive.
COMPACT DISC

Usually READ ONLY (but some can be REWRITTEN).

Stores 650 MB of information (325 floppy disks).

Disk is portable and can be used in machines with CD drive.
DVD (Digital Versatile Disc)

Usually READ ONLY (but some can be REWRITTEN).

Stores 16 GB of information (8,000 floppy disks).

Disk is portable and can be used in machines with DVD drive.
HARD DISK (on PC or NETWORK)

REWRITABLE magnetic storage (usually) built into a computer.

Stores many GB of information (1 GB = 500 floppy disks).

Disk is (usually) NOT portable.
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How is information put into an electronic filing system for storage?
Information can be put into an electronic filing system in any of the ways below.

CREATE THE FILE ON THE COMPUTER USING SOFTWARE.

SCAN INFORMATION INTO THE COMPUTER USING A SCANNER.

DOWNLOAD INFORMATION FROM AN INTRANET.

DOWNLOAD INFORMATION FROM THE INTERNET.

UPLOAD INFORMATION FROM FLOPPY, ZIP, CD or DVD.
How is information in an electronic filing system organised?
Information saved on a computer is called a FILE. The way that files are
organised by a computer in an electronic filing system is known as FILE
MANAGEMENT. The main points about file management can be seen below.

Every file created should have a sensible name so that it can be easily found
again at a later date.

Once files are created, the OPERATING SYSTEM (the main programme that
runs the computer) of a computer will allow the user to:
o DELETE unused or unnecessary files to save confusion and wasted space;
o RENAME files more appropriately;
o COPY files as a back up;
o MOVE files from one place to another.

Related files (eg files on the same topic) can be stored together in a folder
(which is also known as a DIRECTORY). Folders can make it quicker and
easier to find files at a later date.
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How is information in an electronic filing system managed?
Information in an electronic filing system can be managed (ie used and changed)
through the use of SOFTWARE. A piece of software is a computer programme
that tells the computer how to prepare and manage information.
There are many different types of software and each one can prepare and
manage a different type of information. Examples of the different types of
software available can be seen below.

WORD PROCESSING SOFTWARE (text based information).

SPREADSHEET SOFTWARE (number based information).

DATABASE SOFTWARE (all types of information).

DESK TOP PUBLISHING [DTP] SOFTWARE (text and graphics information).
From the above list, the pieces of software most commonly used to manage
electronic information are DATABASE and SPREADSHEET. Details about these
pieces of software can be found on the next few pages.
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DATABASE
An electronic database is a computer program that STORES and
ORGANISES a collection of related information.
Structure of a database
The structure of an electronic database is as follows:
1
FILE:
this is ALL of the information in the database (eg every
name in the phonebook).
2
RECORD: this is ALL of the information about ONE thing in the
database (eg your entry in the phonebook).
3
FIELD:
this is ONE piece of information that appears in EVERY
record (eg your phone number in your phonebook record).
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What are electronic databases used for?
In today’s workplace, electronic databases are being used more and more often
for many things. Examples include electronic PERSONNEL RECORDS (Personnel
Department), SUPPLIER RECORDS (Purchasing Department), CUSTOMER
RECORDS (Sales Department), etc.
Why are electronic databases being used more often?
Electronic databases are being used more often for the above tasks because
they have many advantages when compared to traditional manual databases (eg
card indexes, etc).
Some of these advantages are:

corrections are easier to make though simply making changes on screen;

information can be easily changed using the FORMATTING functions;

information can be more easily found due to FIND function;

information is quicker to find due to FIND function;

information can be reorganised more easily due to SORT function;

information can be reorganised more quickly due to SORT function;

electronic security can be easily put in place;

space is saved as a computer takes up less room than filing cabinets;

saving space can save an organisation money;

information can be MAIL MERGED to produce personalised info very easily.
Are there limits to the use of electronic databases?
The use of electronic databases are only limited by the following:

lack of money for the necessary hardware and software;

lack of relevant employee skills;

lack of time or money to train staff.
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SPREADSHEET
A spreadsheet is a computer program that STORES and MANAGES
numerical information.
Structure of a spreadsheet
A spreadsheet looks like a grid of boxes. Each of these boxes is known as
a CELL, and each cell has its’ own name which is known as its’ CELL
REFERENCE. Cell references are made up of the COLUMN (down) and
ROW (across) that the cell is in. So, for example, the cell that is made
where column D and row 5 meet is known as D5.
When working on a spreadsheet, you can use one cell at a time, and you
can put any of the following in it.

TEXT (words)

NUMBERS

FORMULA (instructions to calculate something automatically)
Examples of these CELLS, COLUMNS and ROWS that make up a
spreadsheet can be seen below.
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What are spreadsheets used for?
In today’s workplace, spreadsheets are used in many areas, but especially by the
FINANCE DEPARTMENT for almost all of their work, eg preparing wages, etc.
Why are spreadsheets being used more often?
Spreadsheets are being used more often for tasks because they have many
advantages when compared to traditional manual methods (eg calculators).
Some of these advantages are:

corrections are easier to make though simply making changes on screen;

information can be easily changed using FORMATTING functions (eg £ %);

information can be made easier to understand through use of CHARTS;

information can be quickly copied using the FILL FUNCTIONS;

formula carry out calculations very quickly;

formula carry out calculations very accurately;

formula carry out calculations automatically making changes easy to make;

information can be reorganised more easily due to SORT function;

information can be reorganised more quickly due to SORT function;

electronic security can be easily put in place;

space is saved as a computer takes up less room than filing cabinets;

saving space can save an organisation money;

information can be MAIL MERGED to produce personalised info very easily.
Are there limits to the use of spreadsheets?
The use of spreadsheets are only limited by the following:

lack of money for the necessary hardware and software;

lack of relevant employee skills;

lack of time or money to train staff.
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Advantages of electronic filing systems
The main advantages of electronic filing systems are as follows.
 Electronic filing saves space and therefore money.
 Documents/info can be ORGANISED quickly using sort commands.
 Documents/info can be FOUND quickly using search commands.
 No copies of files required as a single file can be accessed by many staff.
 Security codes can be used to restrict access to confidential documents.
 Back up files can be easily prepared to prevent lost work.
Disadvantages of electronic filing systems
The main disadvantages of electronic filing systems are as follows.

Training will be required which costs time and money.

Computer, network or power faults may temporarily prevent access.

Possibility of damage to files from ERRORS, HACKING or VIRUSES.

Businesses have to follow the Data Protection Act.
Suitability of electronic filing systems
Electronic filing is very popular in most businesses, but it
particularly suits LARGE businesses as this system can
store their many files in a small space and can also find and
organise them quickly and easily
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PAPER BASED (or MANUAL) FILING SYSTEMS
How is information stored in a paper based filing system?
Information in a paper based filing system is stored by hand as follows:
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VERTICAL FILING CABINET

A4 size files are stored from front to back (in suspended pockets).

Filing cabinets have several drawers.
LATERAL FILING CABINET

Files are stored side-by-side (in suspended pockets).

Filing cabinets have several shelves.

Takes up little space as there are no drawers.
LEVER ARCH (or RING) BINDERS

4
Folders for files that are used regularly.
MICROFILMING
Microfilming involves copying and shrinking A4 pages down to the size of a
stamp, and then storing them on a special film as MICROFICHE or a ROLL.
Benefits of this system (over other manual storage) are as follows.

Takes up little space as films are small and contain many pages.

Back ups can be easily made.

Film lasts longer than paper.
However, this system is expensive due to the need for a CAMERA AND
PROCESSOR (to prepare films) and a READER AND PRINTER (to view and
copy info), and so many businesses today prefer to SCAN their paper
records and store them electronically.
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How is information put into a paper based filing system for storage?
Information is put into a paper based filing system by hand. This means that
somebody has to take the ORIGINAL document that needs to be filed and place
it in the correct place.
How is information in a paper based filing system organised?
The paper files in a paper based filing system can be organised in any of the 3
following ways.

ALPHABETICAL FILING

NUMERICAL FILING

CHRONOLOGICAL FILING
The system that will actually be used will depend upon the business itself, but
the details of all 3 can be seen over the next few pages.
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ALPHABETICAL FILING
Description

Customers’ files are arranged in alphabetical order.

Guide cards (showing letters or subdivisions) may be used for speed.
Advantages

STRAIGHTFORWARD form of filing – easy to understand and use.

DIRECT REFERENCE method means that an index is NOT required.

MISCELLANEOUS files can be easily kept for each letter of the
alphabet to store info from customers who do not write frequently.
Disadvantages

Requires THOROUGH KNOWLEDGE of the alphabetical filing rules.

May be SLOW to find files where many customers have the same surname.

Cabinet space can be WASTED as some letters need a lot of space
while others don’t.

If extra space is required for a particular letter of the alphabet then
the system MAY REQUIRE A LOT OF REARRANGEMENT.
Suitability

Suitable for SMALL to MEDIUM sized businesses.

NOT suitable for LARGE businesses with many customers due to space
needed and time to keep files organised.
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NUMERICAL FILING
Description

Files are arranged in NUMERICAL order.

A new customer is given the next number and added to the end of the files.

An alphabetical INDEX is kept to show the number used to file information.
Advantages

Files are less likely to be misplaced due to the simple use of numbers.

Easily expanded (provided that additional filing cabinets are available).

Index can be used for finding other information, eg phone numbers.
Disadvantages

INDIRECT method of filing (you must prepare and use an alphabetical index).

The alphabetical index needs to be constantly updated for new customers.

Difficult to provide for MISCELLANEOUS files/folders.
Suitability

Suitable for LARGE businesses due to ease of expansion.

Suitable for businesses where it is useful to have a REFERENCE
NUMBER for each customer, eg insurance companies.
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CHRONOLOGICAL FILING
Description

Documents are filed in chronological order (date order).
Advantages

Most up to date files are easily available.
Disadvantages

Requires extensive index as it would be very difficult to remember
when a document was sent/received and so very difficult to retrieve
the document from the filing system
Suitability

May be suitable where dates are the key feature of info to be filed.

Usually NOT SUITABLE alone as the main method of filing.

Usually ONLY USED within alphabetic or numerical to arrange papers
WITHIN files.
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How is information in a paper based filing system managed?
Information in a paper based filing system should be managed (ie used and
changed) through the use the following filing procedures.

A document needs a RELEASE MARK when it is finished with so that filing
staff know that it is ready to be filed. Common release marks are:
o the letter ‘f’ or the word 'file' at the top right of the papers;
o a tick;
o an employee's initials.

Documents should be regularly to prevent loss or damage.

Documents should be sorted into order before they filed to make it quicker and
easier to place them in the system.

'Absent Markers' should be used when a file is being reused so that anyone
looking for it knows where it is.

'Cross-reference' cards should be used when a file could be placed in more than
one place so that people can find it no matter where they look.

Confidential files should be kept in a separate area to prevent them being seen
by unauthorised staff.

Old files should be removed when they are no longer needed to prevent the
filing system becoming too large and difficult to use.
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Advantages of paper based filing systems
The main advantages of paper based filing systems are as follows.
 Systems are straightforward and so files can be found quickly.
 Systems are straightforward and so LITTLE TRAINING is needed.
 Straightforward training SAVES MONEY.
 Filing cabinets provide some PROTECTION against fire, flood, etc.
 Metal filing cabinets last a long time which makes them ECONOMICAL.
 People often prefer reading original documents.
Disadvantages of paper based filing systems
The main disadvantages of paper based filing systems are as follows.

Lost files are hard to replace as there is usually no back up copy.

Metal filing cabinets are relatively expensive to buy.

Accidents can happen if filing cabinets are not used properly.

Can be slow to locate a document in large manual filing systems.

Storage may soon become overloaded and messy.

May take some time to go through files and remove old documents.
Suitability of paper based filing systems
On the whole, paper based filing systems tend to suit SMALL to
MEDIUM sized businesses. This is because the expense and
complication of computerised filing for these businesses may
not be justified due to the small amount of filing they do.
Paper based filing does NOT tend to suit LARGE businesses
because due to the large number of files that they have this
system requires too much space and is too slow in finding files.
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CENTRALISED FILING versus DECENTRALISED FILING
Centralised electronic or paper based filing systems have ALL of the files for
the business GROUPED TOGETHER in one shared CENTRAL LOCATION.
Decentralised electronic or paper based filing systems DO NOT have all files
grouped together – here the files for different Departments are kept
SEPARATELY (usually in the Department itself).
After deciding whether to use electronic or paper-based filing, a business has to
decide whether its filing system should be CENTRALISED or DECENTRALISED.
Today, many businesses use CENTRALISED FILING due to the following
advantages it has compared to DECENTRALISED FILING.

SAVES TIME as files will be in a central area that all staff can reach easily.

SAVES SPACE as equipment is only needed in one area rather than every dept.

SAVES MONEY as less space is needed.

SAVES MONEY as less equipment will be needed.

SAVES MONEY as you only need some specialist staff.

IMPROVES OUTPUT as specialist centralised staff become very good.

IMPROVES OUTPUT as standard procedures can be used to save time.

IMPROVES OUTPUT as training may be more efficient.

IMPROVES SECURITY as equipment is in one secure/supervised area.
However, some businesses may still decide to use DECENTRALISED FILING for
some files due to the following advantages it has compared to centralised filing.

SAVES TIME when a department needs almost constant access to files as it
stops staff having to go back and forward to the central area.

IMPROVES SECURITY as sensitive or private information can be more closely
monitored and so there is less chance of someone seeing it accidentally.
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SYSTEM EVALUATION
EVALUATION involves finding out the STRENGTHS and WEAKNESSES of
systems (ie ways of doing something). This is to make sure that a business
can develop systems that are as EFFICIENT and EFFECTIVE as possible and
so improve sales and profits.
Evaluation of a system will take place by examining the following system areas.

COST

TRAINING IMPLICATIONS

SPACE IMPLICATIONS

BENEFITS OF THE SYSTEM
An example of an evaluation for ELECTRONIC and PAPER BASED FILING
SYSTEMS (to provide info about which to use) can be seen below.
Factor
Cost
Electronic Filing System
Paper Based Filing System
 money for computers

money for cabinets
 money for software

time for any reorganisation
 money for maintenance of system

time to find info in big systems

little training required

large area required for cabinets

simple for staff to use
 money for training
 time for training
Training
 training on computer use
 extensive training on software use
Space
 small area for computers
 small area for back ups
Benefits
 easy to expand
 easy to find information
 easy to reorganise information
 multi user access to info
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