2 WHAT ARE RECORDS?Records are the memory of any business organization.A record may be any material thing which serves to perpetuate or preserve knowledge of acts, events, facts, or ideas.
3 WHAT IS AN IMPORTANT CHARACTERISTIC OF RECORDS? An important characteristic of “RECORDS” is that they usually consists of material that can be classified and arranged in a methodical manner for preservation and ready reference.
4 WHY MUST RECORDS BE MANAGED 1. To regulate the great volume and variety of documents and papers currently received and created in transacting business.2. To accommodate and control natural increase in volume and variety due to growth of population, new function, and related activities.3. To provide methods to ensure prompt attention, rapid movements, guide finding, safe storage, and proper disposal of documents and papers.4. To control and reduce cost of paperwork.
5 WHAT IS FILING?Filing is the process of classifying and arranging of records in a systematic way so they will not only be safely stored but also quickly retrieved or located when needed.
7 The Principles of Indexing and Filing, a 1932 text, provides the following retrospective on filing equipment: "Filing is the disposing of papers in such a manner that they may be found easily. The early methods of storing correspondence cannot be called filing, as we use the term today. In former times, letters were often folded, with the name of the correspondent or subject on the outside, and stored in pigeon-holes in desks or cabinets.
8 Spike or spindle files were also used Spike or spindle files were also used. Papers of various kinds were hooked on a spike placed on the wall or on a desk. When the spike or spindle became full, the papers were removed, tied together, and stored. The box file was an improvement. In the box file papers were laid flat between sheets of stiff paper, each sheet having a tab. A letter or a division of the alphabet was printed on the tab.
9 A filing cabinet with shallow drawers or trays was later used instead of many different box files. Each drawer or tray was labeled with a letter or division of the alphabet, and the papers were laid flat in the drawer. This method of filing often made it necessary to lift up many papers before the one desired could be found. The old methods of filing papers flat often led to an endless search and the waste of valuable time.
10 The flat file, therefore, has been discontinued for general correspondence filing. The result was the development of the various systems of vertical filing in use at present. The bellows file was an improvement on the box file when only a few papers had to be filed. Papers were placed upright in the bellows file and were more easily located. Papers in a modernly equipped office are put in folders and placed behind guides in a vertical filing cabinet.
11 Records Management is the systematic control of records over the record life cycle. This life cycle has 5 distinct phases:Creation of the recordDistribution of the record to internal and external usersUse of the recordMaintenance of the record (filing and retrieving)Disposition (retain or destroy)
12 IMPORTANCE OF MANAGING FILES 1. In filing, the emphasis is more upon the “finding” rather than the “storing” aspect.2. Since the written information is being retained or filed for future possible use, the so-called “finding” aspect is essential in paperwork management.3. The safekeeping of records is important, but being able to find them promptly, when needed, is more important.
13 4. Remember needed paper when lost or misplaced can delay the work of a dozen employees or even the entire office.5. Management is not only interested in the files as such, but more in the information which can be obtained from them.6. Establishing and managing an effective system and arranging the records that an office must maintain, and placing them at their proper locations, will help promote operational efficiency in the office.
14 OBJECTIVES IN FILING1. Efficiency2. Economy3. Simplicity
15 PURPOSES OF FILING1. To make records available when they are needed whether for reference or evidence.2. To keep all related materials together so that the history of the dealings of one office with other offices or individuals will be available in one place.3. To provide a permanent and safe place for records of business information and transactions during the time the records are not in use.
16 HOW ARE RECORDS BEING FILED? 1. By the name of individual or organization2. By the subject matter they contain3. By the location or geographical area a record may cover4. By the number assigned to a record5. By the date
17 WHAT ARE THE DIFFERENT KINDS OF FILING SYSTEM: 1. ALPHABETIC NAME FILE (by name of individual or organization)Records that are referred to by name of an individual organization be arranged by name in strict alphabetic sequence or successive continuity.2. ALPHABETIC SUBJECT TITLE (by subject)Records which are referred to by the subject matter they contain should be arranged alphabetically by subject title or caption.All records on a particular subject should be kept together in as much as each related fits somewhere to complete a story.
18 3. ALPHABETIC LOCATION FILE (by geographic location) Records which are referred to by geographic location should be alphabetically arranged by location name which may be by country, region, province, city/municipality, barrio, or barangay.4. NUMERICAL FILE (by the number assigned to record)Record which are identified by numbers assigned to them and are referred to by their respective number should be arranged in numerical sequence.A numerical file is often used for records pertaining to bank checks, invoices, insurance policies, presidential decrees, tax declaration and the like.
19 5. CHRONOLOGICAL FILE (by the date of records) Records to which primary reference is made by date of the record should be filed chronologically (in the order of time) by year, month, or day as reference indicates.The chronological filing system simply arranges material according to its time sequence, that is, month or weeks are its main division with days for its subdivisions.Some correspondence, bills, and pending accounts payable can be handled on a chronological plan.The advantage of this plan are:1. It is very simple.2. Filing is easy.3. It is convenient reminder of unfinished work.
20 Alphabetic storage ADVANTAGES DISADVANTAGES It is a direct access systemDictionary arrangement is simple to understandMisfiling is easily checked by alphabetic sequenceLess costlyOnly one sorting is requiredPapers relating to one originator are filed in the same locationMisfiling may result when rules are not followedSimilarly spelled names may cause confusionRelated records may be filed in more than one placeExpansion may create problemsExcessive cross-referencing can congest the filesConfidentiality of the files cannot be maintained.ADVANTAGESDISADVANTAGES
21 numeric storage ADVANTAGES DISADVANTAGES Expansion is unlimited It is confidential (a card file is consulted before papers are located)Once an index card is prepared and a number is assigned, filing is quickerMisfiled folders are easily located because numbers out of place are easier to locateIt is an indirect method: the card file must be consulted before a paper can be filedMore equipment is necessary, so the cost is higherADVANTAGESDISADVANTAGES
22 subject storage ADVANTAGES DISADVANTAGES Records about one subject are grouped togetherThe system can be expanded easily by adding subdivisionsIt is difficult to classify records by subjectLiberal cross-referencing is necessary since one record may contain several subjects.The system does not satisfactorily provide for general recordsIt is necessary to keep an index of subject headings contained in the fileIt is most expensive method to maintainPreparation of materials fro the subject files takes longer than other methodsADVANTAGESDISADVANTAGES
23 Geographic storage ADVANTAGES DISADVANTAGES It provides for grouping of records by locationThe volume of records within any given geographic area can be seen by glancing at the filesIt allows for direct filing if the location is knownAll the advantages of alphabetic filing are inherent in this methodMultiple sorting increases the possibility of error and is time-consumingThe arrangement of guides and folders make filing difficultReference to the card file is necessary if the location is not knownIt takes longer to set upADVANTAGESDISADVANTAGES
24 TYPES OF OFFICE RECORDS TO BE FILED 1. ADMINISTRATIVE FILES – a file material related to overall policy mission of organization, direction of the office, including management improvement programs, formal rules and regulations, guides, maintenance of service, supplies and other administrative matter which have no direct bearing on the operation of the office.2. PERSONAL FILES – any paper containing the service appointment and the other records related to the individual employees.3. LEGAL FILES – consist of administrative case of personnel land cases, civil cases, investigation records and the like.4. SUPPLY FILES – consist of records of supplies, equipment, purchases, contracts, etc.5. FISCAL FILES – materials on budget preparation, submission of allotments, and control of funds.
25 4. Tickler file or follow-up file 5. Sorting table and racks TOOLS IN FILES OPERATION1. Folders and fasteners2. Charge-out cards3. Requisition slip4. Tickler file or follow-up file5. Sorting table and racks6. Stapler7. Filing cabinets andshelves8. Tapes
28 SELECTING THE APPROPRIATE FILING SYSTEM CHARACTERISTICS OF A GOOD FILING SYSTEMA filing system can only be good on if it is tailor-made to fit the condition or situations prevailing in a particular organization.Filing system is good if it can meet the three points success formula of efficiency, economy, and simplicity.
29 Filing system is good if it can meet the three points Filing system is good if it fills the needs of the operating personnel and serves them satisfactorily.
30 REQUISITIES OF A GOOD FILING SYSTEM ARE: 1. It serves the needs of the office2. It has the simplest identification of file contents3. It use minimum indexes and codes.4. It has maximum safeguard against filing errors5. It is not dependent on the memory of the clerk.
31 GUIDES IN SELECTING APPROPRIATE FILING SYSTEM A certain amount of creativeness is necessary in adapting a filing system to the situation at hand. There are many different types of filing procedures ranging from manual to mechanical to electrical.
32 The following guidelines are suggested in choosing a filing system: 1. Know the types of records and files created and maintained by the office.2. Know how the records are requested from the files.3. Know why, how, and where the materials to be filed originates.4. Know the procedure steps from post of origin to files.
33 STEPS IN FILING HOW TO PREPARE THE MATERIAL TO BE FILED Incoming correspondence once received should be time and date stamped and given to proper person for action.1. INSPECTINGInspecting the material to make sure it has been released for filing.Look for a special mark as release signal like the word FILE plus the initials of the person releasing it.
34 2. INDEXING (process of determining the name to be used in storing) the name by which correspondence or record is most likely to be requested from files.Determine the most likely the heading under the paper to be filed.The possibilities are:name of on the letterheadname addressedname in the signaturename or subject included in the paperfile or reference numberThere are rules for alphabetic indexing that should be followed.
35 3. CROSS-REFERENCINGCross-referencing is used when it is difficult to know which of two or more name is importantCross-referencing is accomplished by filing the original under one name and cross reference sheet under the otherFor cross-referencing, you may use cross-reference sheets, or plain sheets of paper, or a paper with distinctive color.
37 You may consider cross-referencing under the following situations: a. When some word other than the first in a company of situation name clearly identifies the organization. For example, University of San Carlos would be filed as written but should be cross-referenced to San Carlos University.b. When it is difficult to decide which part of an individual’s name is the surname. In the case of Manolo Herbert you might index the name as normally written and use a cross-reference under a transposition of the name.
38 c. When an organization is better known by initials than by its complete name, material should be filed under the complete name and then cross-reference to the explanation, like:NATIONAL COLLEGE (of) BUSINESS AND ARTSCross ReferenceNCBASee: National College of Business and Artsd. When a record is likely to be called for most often by subject, should be filed under the subject caption but cross-referenced to individual or company name.e. When a difficult name is indexed, you may use a cross-reference.f. When a married woman is indexed, you may use the maiden name as the original file but cross-referenced it under the married or legal name.
39 Underline or encircle the caption to be used on storing. 4. CODING (marking the units of the filing segment by which the record is be stored)Underline or encircle the caption to be used on storing.This is marking the file to indicate how they have been indexedCoding highlights the indexing caption and thus speeds up filingFor alphabetic coding, the indexing caption may be check marked, encircled, or underlined on the record being coded.
40 For numeric coding follow these three steps: 1. Selecting the name under which a paper is to be filed2. Referring to the card index to determine the number to be assigned.3. Marking the number in the upper margin of the paperFor subject coding follow these steps:1. Write the subject in the margin of each record.2. Re-sort in each category for more exact sequence.3. Assemble all the materials in proper sequence.
41 4. A folder chargeout may be either be an out-folder or an out-guide. 5. The OUT-FOLDER is a folder with a tab marked OUT and ruled spaces on the front for recording chargeout information. It replaces a removed folder. Incoming items are filed in it until the regular folder is returned.6. The OUT-GUIDE has a pocket into which a copy of the requisition slip made out by the borrower may be inserted. When out guides are used, incoming items are accumulated in a For File Folder until the regular folder is returned.
42 REQUISITION SLIP1. To control requests for files, use a special form called the REQUISITION SLIP.2. Prepare the slip in triplicate to save time and control safe return of files.3. These slips become the chargeout record.4. The original is put into the pocket of the OUT GUIDE.5. Copy 2 goes into a follow-up file box where it is filed by date.6. Copy 3 goes clipped to the items that were taken from the files to identify them to remind the user of the due date.
43 HOW TO SEARCH FOR MISSING FILES The following clues help to uncover many misfiled papers.1. ON SOMEONE’S DESK?Look first through your own desk when tracking a misplaced record. Then the executive’s desk. Still not there? Look in the “FOR FILING” folder.2. THE FOLDER BEFORE OR THE ONE BEHIND THE RIGHT FOLDER?Look into the folder immediately ahead of or immediately behind the folder in which the paper belongs. This type of filing error usually occur.3. BETWEEN OR UNDER FOLDER?Look between the folders on either side of the folder in which the missing paper should be. Not there? Then look under the folders. Single papers and even folders have been known to slip gradually under the other folders when the guides are not attached by a rod.
44 4. TRANSPOSITION OF NAMES Some names such as Santos Ricardo, are easily transposed. A letter to Danilo Manuel Enterprises may turn up in the Danilo folder.5. SIMILAR NAMESLook under similarly spelled names. The Joana paper may be in Jones, Johns, Joens, or even folder.6. CROSS-REFERENCESLook under the cross-references. Original may sometimes filed with cross reference folder.
45 7. PAPER CLIPSPaper clips have a way of picking up neighboring papers. This is one of the reasons you are advised from the start not to use paper clips.8. ASK YOUR BOSSIf all the solutions were made and still you can’t find the record, ask your boss. He might have taken it and brought home without informing you.
46 TRANSFER AND RETENTION Transferring files is the process of removing old and inactive items from files. However, transferred materials are not automatically destroyed. You may do the transferring of files during free times when the boss is away.
47 TWO GENERAL TRANSFER METHODS 1. PERPETUAL TRANSFERmoves records to the inactive area as they become inactive.2. PERIODIC TRANSFERfiles are moved at stated intervals, once or twice a year.REMEMBER: See to it that you get the approval of your boss before you transfer any record.
48 SOME “DO’S AND DON’TS OF FILING” 1. Do staple papers neatly together in upper left hand corners. If you must fasten you can use a fastener folder.2. Do file papers in an orderly fashion in folder.3. Do use individually tabbed folders with typed labels for ready reference.4. Do type all labels on folders. They are so easily read.5. Do lift the folder out to insert papers in proper place. You will be accurate and your file will be neat. Be a good housekeeper.6. Do file them in date order, keeping the latest date on top.
49 7. Do split the papers up according to date, customer, or subject so that no folder contains more than the capacity it is designed for (generally ½” to 1”)8. Do file material in one folder, placing a cross-reference sheet in folder for any other subject or customer include in the material. This will save many minutes in locating materials when the boss is in a hurry.9. Do keep all files in proper alphabetical sequence.10. Do file in back of guide. After all “guide” is what the name implies a guide indication the proper place to locate a folder.11. Do pre-arrange or sort your papers in exact order according to your file index. Then start to file.
50 12. Do keep your filing “rough sorted” from A to Z if you can’t take care of it immediately. You will be able to locate papers so must faster.13. Do charge out papers removed and place the “OUT” card in the file. Think of the arguments this will save.14. Do type labels in capital letters so they may be easily read and keep one on every drawer. Even you might forget which is which if you are busy.15. Do close each drawer as you finish with it. Open file drawer may cause a serious accident.
51 DON’T1. Don’t use pins, paper clips or rubber bands on file papers.2. Don’t file papers loose in a drawer.3. Don’t write captions on folders by hand. Perhaps you can read your writing but can the other person read your handwriting? You can write caption if your hand writing is very readable.4. Don’t jam papers down into folders. You can’t be sure they are in the correct place and anyway, think how messy they will look.5. Don’t allow papers to be all mixed as to dates within a folder.6. Don’t allow your folders to become cluttered and overcrowded.
52 7. Don’t allow your folders to become so full that they bulge, or the back sags down out of sight. 8. Don’t allow your files to become confusing when letters contain two or more subjects or customers.9. Don’t flounder around spending precious moments looking for a folder which had been filed under another name.10. Don’t pull a folder out of place alphabetically just because it may be large.11.Don’t file in front of guides.12. Don’t start to file with papers in haphazard arrangement.
53 13. Don’t let your new filing pile up. Update your files. 14. Don’t leave your new filing in a disorganized file.15. Don’t lend papers and then depend upon your memory to tell you who took them. Keep a record of borrowed file folder.16. Don’t allow the labels on your file drawers to be handwritten dirty or torn off.17. Don’t pull out more than one file drawer at a time.
54 FOUR CATEGORIES OF RETENTION SCHEDULES RECORDS KEPT PERMANNETLY: Two broad classes of business record are generally retained permanently: those that provide evidence of corporate and individual rights and those with historical implications. Such records are generally irreplaceable and are considered essential to the existence of the business. Photocopy duplicated of them should be stored in several locations as a precaution against destruction. Old documents may require special restorative or preservative methods to protect them against deterioration.
55 Some records that should be kept permanently are: 1. Capital stock and bond ledgers and registers2. Partnership papers3. Stockholder and director minutes4. Deeds and other title papers and mortgages5. General ledgers, journals, and cashbooks6. Records of cost and inventory value of plant equipment and fixtures7. Tax backup records
56 8. Audit reports9. Records relating to bills and accounts payable10. Paid drafts, checks, and cash receipts11. Correspondence about stop-payment orders and duplicate checks.12. Payrolls paychecks, and other evidences or payments of services13. Employee applications.
57 RECORDS KEPT SIX OR SEVEN YEARS RECORDS KEPT SIX OR SEVEN YEARS. Records in this category facilitates routine business operations and are replaceable only at considerable cost and delay. They should be transferred when inactive to secure storage. They include the following:1. List of security holders present at meetings.2. Records of interest coupons, paid and unpaid.3. Contracts, leases, and agreements (seven years after expiration)
58 4. Accounts receivable ledgers 5. Schedules of fire and other insurance and papers substantiating claims6. Deposit book and record stubs7. Inventories of materials with adjustment records8. Sales records9. Collection records10. Record of uncollectable accounts
59 RECORDS KEPT FOR THREE OR FOUR YEARS RECORDS KEPT FOR THREE OR FOUR YEARS. Many business papers are temporarily useful and replaceable at slight cost. They may be safely destroyed after three or four years. The following illustrate this category:1. Proxies of holder of voting securities2. Employee fidelity bond records3. Insurance records changes and cancellations of policies4. Records about employee salary adjustments and assignments