Office Management Made Simple 0385418043, 9780385418041

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James H. Green The one complete source for innovative and practical solutions to most challenges in office management for every business.

7803851141 8041

7 NOE VALLEY/SALLY BRUNN

JVL s o

SAN FRANCISCO PUBLIC LIBRARY

1223 03172 1252

Office Management Made Simple James H. Green P

DUE DATE

TUG 2 ! : 1993 All fi 1

A

Inc.

1994

SFP if OLr > l?94

SEP

5“ 1f95

Printed In USA

RJ

Edited and prepared for publication by The Stonesong Press, Inc. Executive Editor: Sheree Bykofsky Series Editor: Sarah Gold Production Consultant: RECAP: Publications, Inc.

NOE VALLEY SALLY BRUNN BRANCH LIBRARY

A MADE SIMPLE BOOK

SAN FRANCISCO PUBLIC LIBRARY Published by Doubleday, a division of Bantam Doubleday Dell Publishing Group, Inc. 666 Fifth Avenue, New York, New York 10103

MADE SIMPLE and DOUBLEDAY are trademarks of Doubleday, a division of Bantam Doubleday Dell Publishing Group, Inc.

Copyright © 1992 by Doubleday, a division of Bantam Doubleday Dell Publishing Group, Inc.

All Rights Reserved Printed in the United States of America October 1992 First Edition in the United States of America

Green, James H. (James Harry) 0 f f i c e rn an a gemen t made simple s impl / □1992„

Library of Congress Cataloging-in-Publication Data Green, James H. (James Harry) Office management made simple/Harry Green. — 1st ed. p.

cm.

“A Made Simple Book” Includes bibliographical references. 1.

Office management.

HF5547.G738

2.

Personnel management.

I. Title.

1992

651.3 — dc20 ISBN 0-385-41804-3

91-41113 CIP

3 1223 03172 1252

S.F. PUBLIC LIBRARY

CONTENTS

PART ONE: THE HUMAN SIDE OF OFFICE MANAGEMENT Chapter 1:

9

The Office Manager’s Job

10

The Roles of Office Managers

12

The Elusive Quality of Leadership

15 15

The Human Side of the Office The Technical Side of the Office Summary

Chapter 2:

15

Managing Your Time 16 Solving Problems and Setting Objectives Delegation 24 Personal Time Management Summary

Chapter 3:

26

28 30

Your Management Style

Relationships with Subordinates Managing Your Boss

Chapter 4:

30

35

Relationships with Peers Summary

36

37

Managing Office Productivity Productivity Concepts Simplified An Office Productivity Model

38 39 40

Techniques for Increasing Productivity Summary

16

51

48

4

CONTENTS

Chapter 5:

Setting Standards

53

Managing by Objectives

56

Rewarding Performance

57

59

The Office Policy Manual Summary

Chapter 6:

52

Building an Effective Work Team

59

Evaluating Performance 60 Why Performance Evaluation?

60 61

Why People Find Evaluations Uncomfortable Employee Evaluation Methods

62 65

Conducting the Evaluation Interview

67

Dealing with Problem Employees Summary

Chapter 7:

69

Hiring, Transferring, Promoting, and Demoting Employees The Employment Process Hiring Office Personnel Transferring Employees

70 71 73 77

Promoting and Upgrading Employees

79

The Critical First Six Months

Demoting and Discharging Employees Summary

Chapter 8:

80

81 83 84 84 89

Organizing Office Work Organizational Principles Organizational Structures Principles of Work Design

Organizing for Special Projects Budgeting Expenditures

95

98

Rethinking Office Organization Summary

78

101

105

PART TWO: THE TECHNICAL SIDE OF OFFICE MANAGEMENT Chapter 9:

Office Records Management

109

110

Office Filing Systems

What to Keep and How Long to Keep It Storage Strategies Summary

120

116

112

CONTENTS

Chapter 10:

122

Office Design

123

The Physical Environment of the Office Office Wiring Systems

126 128

Selecting Office Furniture Summary

Chapter 11:

130 131 132

Automating Your Office Office Computer Systems

Components of a Computer System Managing Personal Computers Local Area Networks Summary 142

Chapter 12:

135

137

140

143 144

Managing the Office Telephone System Overview of the Public Telephone System Types of Telephone Systems 146 Improving Telephone Effectiveness Balancing Telephone Costs and Service Summary

148 154

157

Appendix A:

Resources

Appendix B:

Bibliography of Books Referenced

158 159

5

PART

ONE

THE HUMAN SIDE OF OFFICE MANAGEMENT

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CHAPTER

ONE

The Office Manager’s Job

KEY TERMS FOR THIS CHAPTER occupational work managerial work leadership style objectives

planning organizing directing controlling

productivity efficiency effectiveness completed staff work

It is not quite accurate to speak of “the” office

perhaps replace you when you move to a higher

manager’s job because no two jobs are alike.

position.

Office managers supervise clerks, typists,

The second thing all office managers have in

bookkeepers, customer service agents, order

common is the need to understand the

takers, and dozens of other employees. They

company’s product. (We use the term company

work in medical offices, factories, universities,

in this book to include government and non¬

hotels, car dealerships, city halls, and countless

profit organizations, the word product to in¬

other organizations.

clude services, and the word customers to

Although every job is unique, all office man¬

include clients and patients.) The product your

agers have several things in common. First, and

company produces is the lifeblood of the firm.

most important, they must get their work done

The more you understand how and why the

through others. You may not have chosen the

product is important to the company’s custom¬

people on your staff, but your primary job as an

ers, the more effective you will be as an office

office manager is to weld them into an effective

manager.

team. Your greatest satisfaction on the job will

The third tiling you have in common with

come from seeing your people grow and

other office managers is the need for a collec¬

develop their skills to reach the point where

tion of management skills and techniques. Of¬

they can assume greater responsibility — and

fice managers must solve problems, set

10 OFFICE MANAGEMENT MADE SIMPLE

objectives, control budgets, and manage work

may be working at a computer keyboard pro¬

loads. As an office manager, you should never

ducing reports and preparing budgets, but the

be satisfied with the way things are being

work is managerial because it involves making

done — there is always a better way. This is not

decisions that affect the operation of the entire

to say that you should change for the sake of

unit.

change, but don’t fall into the trap of doing something simply because it has always been

As the office manager, you may sometimes be called upon to do occupational work. If

done that way. This leads to corporate dry rot.

there is not enough work to justify a full-time

One final bit of advice before we get down

office manager, you may spend part of your

to the specifics of how to manage an office:

time doing the same work as your occupational

Don’t look for magic formulas for every prob¬

subordinates. There is nothing wrong with

lem. You are different from other office man¬

this, particularly in small offices where people

agers, and your office is different from every

must fill several roles. You must be aware, how¬

other office. A good manager looks for what

ever, of whether you are acting in a managerial

works. If something you learn from this book

or occupational role, because success is mea¬

or from another manager works well, do it; if it

sured differently in each case. Occupational

doesn’t, look for something else. With that

workers are measured by the quantity and qual¬

advice on the table, let’s look at some of the

ity of their output. Office managers are judged

things that office managers do.

by the output of their work group. Your job as a manager is to see that the entire group is successful. If you have no time to manage be¬

The Roles of Office Managers

cause you are doing occupational work, your group will have difficulty meeting its goals.

Occupational Versus Managerial Work

Senior to Freshman: Learning New Skills

Most companies make a distinction between

occupational and managerial work. Some¬

Throughout our lives we find ourselves making

times the difference isn’t entirely clear, but

backward jumps from senior to freshman. We

generally occupational work produces some

move from the top of the heap in grade school

kind of tangible output that has a direct market

to junior high, where we find ourselves at the

value or is used by the people who produce the

bottom again. The same thing happens be¬

company’s goods and services. For example,

tween junior high and high school, and be¬

typing, filling customer service orders, process¬ ing invoices, and operating the office computer

tween high school and college or the working world.

system are occupational jobs. Occupational

Once you accept a job and begin to work

employees are responsible for their individual

your way through the corporate structure, you

output.

find that success indicators change with every

In contrast, managers are responsible for the

promotion you receive. The talents that made

performance of other people. To a casual ob¬

you successful in your previous job will help

server, managerial work often resembles occu¬

you on the next rung of the company ladder,

pational work. An office manager, for instance,

but each promotion demands that you learn

Chapter 1: The Office Manager's Job new skills. The change is especially difficult

11

when you move from occupational work or

“You have several options,” Janice replied. “Your job now is to get work done through

school into your first management job. Cathy

your staff. When you do the work yourself you

Barnes’s experience is like that of hundreds of

have just one pair of hands. As good as you are,

others who have made the senior-to-freshman

there is a limit to how much you can do. In

transition.

your group you have ten other brains and ten pairs of hands to get the work done. If you can stay after work tonight, I’ll help you figure out

Cose: From Top Typist to Brand New Supervisor

what to do.” That evening, Janice helped Cathy review her options for getting the work done without

Cathy was the top typing student in Valley

doing it herself. They separated the backlogged

High School. She won the state typing contest

work into groups of identical items so the op¬

with a speed of 92 words per minute with no

erators weren’t required to bring up a new

errors. After high school she accepted a job as

screen for each new application. Cathy esti¬

a data entry clerk, entering welfare applications

mated a reduction in the data entry time of six

in the state Human Resources Division com¬

seconds per application. Janice suggested that

puter. In her first year on the job, Cathy’s name

Cathy divide the applications into modules of

was on the division’s plaque as the top data

one hour’s worth of data entry work for an

entry operator for 11 of 12 months.

average clerk. The principle, she explained, was

When Cathy’s boss retired the following

to keep work visible and organized so the

year, the division manager offered Cathy the

amount to be done could be evaluated at a

job, which she eagerly accepted. Because the

glance. When she finished, Cathy was surprised

budget was tight, Cathy was not permitted to

to learn that the backlog, in terms of work

hire a replacement for herself, and the work

hours, was much smaller than she had thought.

began Co pile up. Cathy’s solution was to do what she knew

Over the following week, Cathy concen¬ trated on her management job. She organized

best. She moved her old data entry terminal to

and assigned work, and she reviewed the prog¬

her desk at the head of the room and began

ress her staff made in completing it. She

keying the backlogged applications. Within a

worked with the slower data entry operators to

few days she was again the top performer in the

give them suggestions on how to increase their

group, but curiously, the backlog didn’t

speed and accuracy. She managed the work

disappear. A few days later Cathy’s boss, Janice

load by visiting caseworkers and arranging for

Thomas, paid her a visit. She handed Cathy a

pleted instead of bunching them up and send¬

piece of paper and said, “This is a complaint

ing them all at once.

them to send applications as they were com¬

from the public employees union. They’re ob¬

In less than a month, the backlog problem in

jecting that you are doing work that should be

Cathy’s unit had disappeared, and she discov¬

done by union members.” “But that’s not fair,” Cathy protested. “I

ered that her staff even had time to handle

don’t have enough people, and you won’t let

jump from top achiever in an occupational job

me hire my own replacement. What other

to brand new supervisor because Janice helped

choice do I have?”

her understand the senior-to-freshman rule.

additional work. She successfully made the

12 OFFICE MANAGEMENT MADE SIMPLE

Senior-to-Freshman Rule: Every job has

chance of success for different courses of ac¬

its indicators of success. Your skills and ex¬

tion. They know there is a chance of failure, but

perience made you a successful senior in

they do not let that paralyze them.

your past jobs; now look for the new skills that will lead you to master this job.

Another characteristic of good leaders is a set of closely held values. You must test all decisions and courses of action against your standards. Good leaders are flexible enough to

The Elusive Quality of Leadership

change their standards if the expected outcome is worthwhile, but they also know when not to bend. The most effective leaders are situa¬ tional — they are capable of adjusting their

There are some traits that are easy to recognize yet hard to define. Leadership is one of these.

method of operation when the situation de¬

No one can suggest a formula for leadership,

Leaders have the ability to organize a group

because we’ve all seen people who are effective

for top performance. They know how to create

leaders in one situation but failures in another.

the kind of atmosphere that inspires their staff

We’ve also seen people with vastly different

to accomplish more than they think they can.

approaches succeed or fail in similar situations.

They know how to separate important matters

We’re talking here about a concept called

from trivial and how to set priorities for dealing

leadership style. If you don’t have a frilly de¬

with issues that affect the well-being of the

veloped style now, you will adopt one as you

entire organization.

mands it and standing firm when it does not.

practice management. We’ll have more to say

Finally, leaders are self-confident, a charac¬

about management style later, but for now, let’s define leaders as those who can persuade

teristic that often comes only from achieving

others to follow them. How does a person

their objectives and have had enough experi¬

become a leader? There is no single way to

ence that they can predict the outcome of a

develop leadership ability, but leaders have cer¬

particular course of action.

tain characteristics that most people can learn.

success. Confident people know how to reach

Much of what we define as leadership is

First, leaders have vision. They understand

intangible. If you practice the techniques that

what the current situation is, and they have a

result in success in management, however, your

firm idea of what it should be. They may be

leadership ability will develop.

somewhat hazy about how to get there, but they have a process that they have honed with experience. In the business world there are no

Setting Objectives

guarantees of success, but to become a strong leader you need a method for guiding your

Every manager has problems, and every man¬

work team to meet its goals.

ager sets objectives. A manager who lacks

Leaders also have courage. Sometimes you

problems and objectives is not managing. Visu¬

must act, even when the right course to follow

alize problems and objectives as the rim of a

is not clear; other times you may decide to do

wheel — they are part of the same process (see

nothing when others are urging you to act.

Figure 1.1). The problem is where the wheel

Management is never free of risks. The best

touches the ground; it is where you now are.

leaders calculate the degree of risk and the

The objective is where you will be when the

Chapter 1: The Office Manager's Job

13

• Directing. Managers assign work to their subordinates and review how well it is com¬ pleted. Managers remove roadblocks when they occur, as they always do, and develop ways to prevent them from recurring in the future. • Controlling. Plans and objectives are never completed by themselves. Managers take specific actions to carry them out. They eval¬ uate the quality and quantity of work the people in their groups do, and they interact with other work groups, customers, and

Figure 1.1: The Problem/Objective Process

higher management to reach their group’s objectives.

wheel makes its revolution to bring you to where you want to be. When you grasp the meaning and the methods of identifying prob¬

Achieving Productivity in the Office

lems and setting objectives, you will be well on your way to effective office management.

As an office manager, you are responsible for

As we will see in Chapter 2, both personal

your group’s productivity. Productivity is sim¬

and company objectives are appropriate and

ple enough to define: It is work produced per

necessary for you to pursue in order to become

unit of time. Service orders completed per

a well-rounded manager.

hour, pages typed per hour, and bills processed per working day are all typical measurements of office productivity. Simply measuring the

Getting Work Done Through Others

amount of completed work is not enough, however. You must measure the quality of work. If much of the work must be done over

Managers get work done through other

because of poor quality, the worker is not

people. All managers perform the following

productive. You must also distinguish between effi¬

functions.

ciency (doing things right) and effectiveness • Planning. Managers plan for ways to assist

(doing the right thing) when evaluating pro¬

their work groups in reaching their objec¬

ductivity. If a typist spends two hours produc¬

tives. Managers know that picking targets is

ing a report that no one reads, the work is not

not enough — they must also plan the meth¬

productive regardless of how efficiently the

ods for getting the work done.

typist produced it. Every organization has a their

product or service that serves as its reason for

employees to accomplish work goals and

being. If you cannot trace the work your group

they organize the work itself for efficient

does directly to this product, the work may be

completion.

nonproductive even though it is being done

• Organizing.

Managers organize

14 OFFICE MANAGEMENT MADE SIMPLE

with marvelous efficiency. Thus, the effective¬

strengthens your ability as a manager. There are

ness rule for office management.

as many kinds of bosses in the world as there

The Effectiveness Rule: Find out how

are people, and you will learn early that it’s

work relates to the company’s product; then

easier to adapt yourself to what the boss wants

worry about doing it efficiently. If it

than it is to change your boss. You will go a

doesn’t support the company’s goals, it

long way toward becoming both an effective

probably should not be done at all.

boss and an effective subordinate if you learn the principles of completed staff work. Staff work is completed when your boss can adopt it in the form presented as his or her own viewpoint. Completed staff work doesn’t re¬ quire your boss to make any decision or take

Being an Effective Subordinate

any action other than to sign (or reject) it. Regardless of your boss’s style, he or she will

It isn’t enough to learn to be a good boss —

appreciate your acceptance of the burden of

you must also learn to be an effective subordi¬

completed staff work. If you require the same

nate. Most office managers have a boss, and

level of performance from your subordinates,

understanding how to be a good employee

you will help them become valuable employees.

COMPLETED STAFF WORK

The effective employee always presents to higher management work that is completed to the best of his or her ability. The work is prepared so the boss can accept the product with nothing more than a signature. When the document is signed, the subordinate’s views be¬ come the boss’s views. By following this principle of completed staff work, you can achieve results greater than the limits of your own authority permit. In the course of completing a project, you accumulate a great deal of information to sup¬ port your conclusions. Resist the temptation to include excessive supporting details in your reports. If the boss wants more details, he or she will request them. Strive, above all, for simplicity and clarity — the time you spend clarifying your conclusions will reduce the time higher management must spend reviewing and understanding them. The concept of completed staff work does not prevent you from offering drafts for com¬ ment if it is clear that they are not intended to be the finished product. You are free to ask your boss for opinions; just do not try to get him or her to make the tough decisions that have been delegated to you. Accept each instance of delegated work as an opportunity to demonstrate your abilities. By assuming the burden of completed staff work, the subordinate frees the boss to do his or her own work. Expect no less from your subordinates. The supervisor who accepts less than completed staff work deprives the subordinate of the opportunity to grow.

Chapter 1: The Office Manager's Job

15

The Human Side of the Office

aspects of office management are discussed in

The modern office is a social system. It involves

budgeting techniques and methods of organiz¬

human beings, all of whom have hopes, fears

ing the office furniture and equipment for the

and aspirations. Your job as office manager is to

most efficient work flow are key aspects of a

create a climate in which your staff can grow

manager’s ability to increase work productivity.

and mature. You have a dual responsibility: to

As office manager, you will also undoubtedly

higher management, who offers the opportu¬

be responsible for managing the personal com¬

nity to work and pays the salaries, and to your

puters that your people use. The personal com¬

subordinates, who bring their time and skills to

puter is a vital part of nearly every office; unlike

help the company grow and prosper. As office

other office machines, such as typewriters and

manager, you assign work, evaluate how well it

calculators, it demands more than a nodding

is done, and inspire and motivate your

acquaintance with its technical operation. You will probably inherit the office tele¬

employees. Not all of them will always behave the way you want, so you must develop

later chapters. Most office managers prepare budgets and forecast work loads. Effective organizing and

methods for coping with less-than-satisfactory

phone system at some point in your career. Office workers don’t want to know how the

performance.

telephone system works — they just want it to

Most of this book is devoted to dealing with

work when they need it. If you understand

the human side of the office. We will discuss

some of the essentials of office telephone sys¬

how to motivate, reward, and, on occasion,

tems, it will be less of a mystery when the

discipline employees. We will also offer sugges¬

company gives you responsibility for its

tions for developing your individual employees

operation.

into an effective team, much as a coach creates a winning team from a group of individual athletes.

Summary The job of the office manager is a challenging one that involves organizing and motivating

The Technical Side of the Office

subordinates, achieving productivity, and over¬ seeing the technical side of office processes. You may be overwhelmed by how much you need to know — you may feel like a freshman

While individuals in an office offer the greatest

again — but rest assured that the job can be

challenge, and learning to manage them well is

learned. This book will not teach you every¬

the most important part of the office manager’s

thing you need to know in order to manage an

job, every job (office management included)

office successfully — the most lasting lessons

also has a technical side. You will need to learn

come from solving real-life problems and from

enough of the technical aspect of the office to

making mistakes and correcting them. What

train and evaluate your employees, and you will

you will gain from this book is a collection of

need to learn the technical parts of your own

ideas and techniques to help you make the

job to be a successful manager. These technical

transition from freshman to senior.

CHAPTER

TWO

Managing Your Time

KEY TERMS FOR THIS CHAPTER

success problem 80-20 rule activity trap

backward delegation time management priorities

musts wants feedback delegation

We all have 24 hours each day to use as we see

definition, however, for this discussion. Let us

fit. If we all have equal time, why are some

assume, then, that a successful person is one

people more successful than others? Do some

who can set and reach sound objectives. The

people become top managers, eminent scien¬ tists, or skilled professionals because they have

first secret of time management is to have a clear idea of your objectives; then make sure to

been dealt more brains and talent than the rest

spend a significant part of each day on activities

of us? Perhaps, but one thing all successful

that are specifically directed at achieving those

people share is the ability to manage time. The

objectives.

best managers realize that their time is one of

To make this definition of success work,

the most valuable resources the company has,

we need a process for deciding which objec¬

and they spend it carefully.

tives to select and how to reach them. Top management usually takes the lead in deter¬ mining the company’s major objectives,

Solving Problems and Setting Objectives

which are broad in scope and lack the details that describe how to achieve them. Objec¬ tives that top management sets might be expressed in phrases such as “achieve a 10

We speak of “success” as though there were a

percent increase in net earnings next year”

universal definition of a successful person; of

or “introduce two new product lines by the

course there is not. We will need a working

end of July.” These objectives are precise and

Chapter 2: Managing Your Time

17

measurable, but they fail to spell out the meth¬ ods the organization will use to reach them.

their fingers on the pulse of the organization by

As we move down the organization, each

many sources. Information may arrive in the

level sets objectives that are increasingly action-

form of financial data, customer surveys, man¬

oriented and concrete. Some objectives are di-

agement reports, or dozens of other such

recdy aimed at meeting top management’s

sources.

gathering and evaluating information from

objectives; others are less direct, while still

Some information requires but a glance for

pointing in the direction set by top manage¬

you to see that all is well. Targets are being met,

ment. Divisions might set supporting objec¬

customers are satisfied, orders are rolling in,

tives such as “reduce travel expenses compared

and everything appears to be on track. Other

to last year by 10 percent” or “prepare a mar¬

indicators, however, may show areas that need

keting plan for introducing a new toiletries

management attention. We’re all acquainted

product line by the end of May.” At the office

with indicators that signal that things are not

manager’s level, typical objectives might be “re¬

going as well as we would like — we call them

duce average typing turnaround time from eight

problems. Problems are not something to be

to six hours” or “develop a plan for measuring

avoided. On the contrary, solving or prevent¬

office productivity by the end of March.”

ing problems is the primary reason companies

Note from these examples that there are two

need managers.

different types of objectives. The first is numer¬

Objectives usually originate from problems.

ical and is expressed in quantitative terms. Nu¬

A manager or team reviews results, finds an area

merical objectives require some form of data

that is less than satisfactory, and sets objectives

collection, preferably an existing report that

to correct the problem. In fact, as we shall see

requires little or no additional effort. The sec¬ ond type of objective is an event. The company

later in this chapter, a problem statement and

or work group commits itself to complete a task

an objective statement are almost identical. A problem describes where you are now and an

by a certain date. The task is often part of a

objective, where you will be when the problem

larger objective set by a higher level in the

is solved (see Figure 1.1 for the problem/ob¬

management team.

jective process). To solve problems you must

No single objective insures success, but the cumulative effect of many individuals setting

take specific actions that move toward the objective.

and reaching their objectives propels the com¬ pany toward a common goal. This process of setting objectives and developing programs for meeting

them

is

the very essence

of

management.

Decide Which Objectives to Set The next logical question is how to select your

How Objectives Originate

objectives. Having too many objectives pulls your attention from the most pressing prob¬

Every level of a smooth-running organization

lems. Focus your energies on a manageable few

regularly sets objectives and directs its efforts

that will bring the greatest returns. The Italian

toward reaching them, but it isn’t always clear

economist Vilfredo Pareto stated a principle

how to direct those efforts. Managers keep

that has become famous as the 80-20 rule.

18 OFFICE MANAGEMENT MADE SIMPLE

The 80-20 Rule: 80 percent of the results

The agency also handles annual license re¬

come from 20 percent of the effort and 80

newals. Renewal cards are mailed to owners in

percent of the effort yields 20 percent of the

December of each year. In order to renew their

results.

licenses, the owners return the cards to the

The 80-20 rule is simply a rule of thumb, but

agency. The office staff keys them into the

it applies to many situations. Look at it as

agency’s computer. The data entry clerks then

cream-skimming. Identify those activities that

key the license number to pull up the owner’s

will return the greatest immediate benefit with

record to key in the renewal fee amount. Some

the least amount of effort. Normally, you

renewal forms arrive with address changes and

should review results and set objectives for

some owners enclose an incorrect fee, but the

cost, productivity, customer service, and em¬

majority arrive with no changes required.

ployee relations.

Jim felt that his staff could process the re¬

Pay particular attention to areas that are

newals more quickly by separating them into

causing complaints or drawing the unwanted

two stacks: those with changes and those with¬

attention of higher management. Be aware of

out. The license number and fee amount could

how your objectives will affect other parts of

be encoded on the renewal card with a bar code

the company. If you need the help of another

similar to that used by grocery stores. The

work group to achieve an objective, discuss the

forms could be quickly entered by using a bar

situation with the managers of that group so

code reader to read the license number and fee.

you can set supporting objectives.

He found that nearly 90 percent of the renew¬ als could be handled with a bar code reader. When Jim made this change, it reduced the clerical work involved with handling renewals

Case: The 80-20 Rule in Action

to a fraction of its former level.

Jim Sheppard is office manager of a state boat

Identify the Problem

licensing agency. State law prohibits the use of new boats until a temporary permit has been

How does a manager decide what objectives to

issued. Applications for temporary permits

set? A good manager reviews the important

were badly backlogged from May to August,

aspects of the job and for each one asks the

when the majority of new boats were pur¬

question, “How are things?” If things in one

chased. In looking for a way to make immedi¬

area are just fine, turn your attention some¬

ate improvements with a minimum of effort,

where else — you don’t need to spend much

Jim sampled the backlogged applications. He

time managing things that are going smoothly.

found that at least three fourths of them were

This doesn’t mean you can ignore them — few

submitted by the top 15 boat dealers in the

parts of a manager’s job run automatically —

state. Jim received permission to appoint the

but to be a successful manager you should

large dealers as agents who could issue permits

spend most of your time on problems; that is,

at the time of sale. With this part of the work

on areas where things aren’t running well.

load removed, the licensing agency was able to

Define the Problem. When the answer to

handle the remaining applications with no

the question “How are things?” is unsatisfac¬

additions to the staff.

tory, you have, by definition, a problem. If the

Chapter 2: Managing Your Time problem is severe enough, that is, if it is keep¬

19

Set Objectives

ing you from meeting your objectives, you should devote time and effort to solving it.

After you have identified the problem clearly,

It isn’t enough just to say you are dissatisfied

it’s easy to set an objective. Always assign an

with the present situation. The more precisely you can define the problem, the better the job

objective to a specific individual, perhaps your¬ self, and establish a completion date. For exam¬

you’ll do of solving it. Ask yourself:

ple, assume the problem statement is “6.3 percent of die invoices we issue have errors that

• Why is this problem worth working on?

result in customer complaints.” A reasonable

• What is it costing the company in terms of

objective might be “no more than 2.0 percent

money, time, or customer dissatisfaction? • Exactly what is the problem (for example, when does it happen, and to whom)?

of the invoices issued by December 1 will con¬ tain errors, and no more than 0.5 percent of the invoices issued by July 1 will contain errors.”

• What is the problem not? (In defining a

Note that we haven’t discussed how to reach

problem it is often useful to describe what it

the objective. We’ve just stated the result we

is not as well as what it is.)

want and when it should be completed.

• What is the penalty for doing nothing about

Machinists use tools called go and no-go

the problem? (Many problems solve them¬

gauges to check the quality of their work. If the machinist has turned a metal bar to the correct

selves if we simply ignore them.)

diameter, a go gauge slips over the bar; a no-go It pays to spend time understanding prob¬

gauge does not. The bars that fail the test must

lems in detail. Ineffective managers often start

be further machined or discarded. You can

working on solutions before they understand

create go/no-go gauges to test potential solu¬

the problem. When you spend time working on

tions to your problems by deciding on a list of

activities that are not aimed at solving a specific

musts. These are the tests that the alternative

problem and reaching a specific objective, you

must pass to be acceptable. Any alternative that

are caught in an activity trap.

does not fulfill all the musts is discarded. If

State the problem in precise but simple terms. Avoid vague problem statements such as

none of the alternatives passes the must test, you may have to redefine your objectives.

“costs are too high.” A valid problem state¬

If several alternatives meet the list of musts,

ment discusses what costs are too high and by

you can select from among them by developing

how much; also, ask how far out of line costs

a list of wants, which are the added values that

are. Usually there are only a few parts of the job

you would like to obtain. You can assign a

that are out of control — keep digging until

numerical weight to the wanted feature and a

you find them.

numerical rating to the alternatives to express

Determine the Cause. You’ll usually find it impossible to solve a problem without deter¬

the amount of added value each alternative brings.

mining the cause. A good problem solver

Figure 2.1 shows the process of using musts

probes, asks questions, tests, and analyzes re¬

and wants to select alternatives. Alternatives

sults until the cause of the problem is clear. The

that do not meet the musts are rejected; those

cure is often obvious once you understand the

that do are scored to see which one returns the

cause, so the time you spend in diagnosis re¬

greatest added value. First, the wants are

duces the time you spend solving the problem.

weighted from 1 to 10, depending on how

20 OFFICE MANAGEMENT MADE SIMPLE

Figure 2.1: Scoring Musts and Wants

highly we value them. Next, each alternative is

are recorded, but not evaluated, on the spot.

rated on a scale of 1 to 10, based on how much

Though an idea may sound absurd, it may

value that alternative brings. The value is mul¬

trigger another idea in someone else’s mind.

tiplied by the rating to arrive at a weighted

After the session is over, the group begins to

score for each want and each alternative. The

evaluate the suggestions, discarding those that

weighted scores are added to derive the final

are obviously unworkable.

score for each alternative. In the example, Al¬

When the list is narrowed to a few alterna¬

ternative E has the highest score and brings the

tives that appear practical, test the alternatives

greatest value.

against the objectives. Keep only those that meet the must criteria; then test them against the want criteria. The one that best fills your

Identify Alternatives and Select the Plan

needs and wants becomes the plan. When you have selected the plan, document it and break it into tasks if it is too large for one

When you know what you want and the condi¬

person to handle alone. As work progresses,

tions the solution must satisfy, it is time to

continue to ask the question “How are

begin identifying alternatives for reaching the

things?” When the answer is “Things are fine,”

stated objective. Many managers make the mis¬

the problem is solved, but your job as a man¬

take of choosing alternatives too early, before

ager isn’t over because you’ll keep your eye on

they understand the problem and before they

the situation to make sure it doesn’t slip out of

set objectives. Working on an alternative that

line again. In fact, managers are people who

has little or no chance of solving the problem is

literally make problems for themselves. We’ve

another form of activity trap — it occupies your

all known people who create their own prob¬

time without leading you to a solution.

lems and suffer as a result. The difference be¬

It usually pays to involve several people in developing alternatives. One technique some

tween them and effective managers is that effective managers also create solutions.

problem solvers use is called brainstorming, or

Figure 2.2 shows how the problem-solving

green-lighting. In a brainstorming session,

process works. The figure reduces problem solv¬

people are encouraged to offer suggestions that

ing to a loop with seven steps. Not all problems

Chapter 2: Managing Your Time 21

ORGANIZING OBJECTIVES INTO MUSTS AND WANTS Sarah Sherman’s company was moving to new quarters, and she was assigned responsi¬ bility for selecting new office furniture. When she met with the other managers in the office to develop objectives for the furniture, she found a consensus among them and created the following list of objectives. Musts: 1. The furniture must be affordable. Management budgeted an average of $1,200 per person for workstations and an additional $3,000 per work group for common equipment such as file cabinets. 2. The furniture must be attractive and complement the office decor. 3. Chairs and keyboard shelves must have adjustable height and tilt. 4. Furniture must be specifically designed to support computer terminals on every desk, including those for top management. 5. The workstations must provide a satisfactory method for wire management. Wants: The group concurred on an additional list of features that were desirable, but products lacking these features would not be rejected out of hand. Each desirable feature was rated by group consensus on a scale of 1 (low) to 5 (high). Some of the rated wants included: 1. Chairs should have fabric covers instead of vinyl (3); 2. Chairs should automatically adjust to the occupant’s weight, size, and posture (5); 3. Wood furniture is preferred to metal (4). Sarah checked the list of objectives with top management and received their approval. She then gave the requirements to five vendors, four of whom submitted proposals. The fifth ven¬ dor was unable to supply products that met the budget limits. Of the other four, one did not meet the staff’s requirement for blending well with the office decor and was eliminated from further consideration. Using the three remaining proposals, the staff agreed on a rating of how well the product met the desirable criteria. A weighting scale was developed to determine which vendor had the most effective proposal. Weighting Scale Feature

Vendor A

Vendor B

Vendor C

Rating Points

Rating Points

Rating Points

Weight

Covers

3

5

15

5

15

4

12

Adjustments

5

2

10

5

25

3

15

Wood vs Metal

4

5

20

4

16

3

12

Total Points

45

56

39

All three products met the requirements, but the rating method showed that Vendor B clearly offered the greatest additional value for the money. The team recommended to higher management the purchase of furniture from Vendor B.

22 OFFICE MANAGEMENT MADE SIMPLE

STEP 1 HOW ARE THINGS?

STEP 7 REVIEW PROGRESS

^

STEP 6 DOCUMENT THE PLAN ROLES RESPONSIBILITIES TASKS STEP 5 SELECT THE BEST ALTERNATIVE GO / NO-GO VALUE ADDED

NOT A PROBLEM

STEP 3 DEFINE THE OBJECTIVES MUSTS WANTS STEP 2 DEFINE THE PROBLEM WHAT IT IS WHAT IT IS NOT

STEP 4 DEVELOP ALTERNATIVES

Figure 2.2: The Problem-Solving Loop require a process as elaborate as this. If you

sponsible for customer billing and collecting,

have only one or two alternatives and if the

purchasing, and the office telephone system.

solution to the problem is clear, you can pro¬

Jackie Kelly is the parts manager. She and Dean

ceed direcdy from problem identification to

are peers; both are part of the team responsible

the plan. Most problems, however, aren’t that

for keeping customer service at a high level.

easy. The problem-solving process helps you man¬

Jackie stated in an office staff meeting diat her

age time in two ways. First, it helps avoid wasting

telephone customers were beginning to com¬

time by indecision. Second, it helps you target die

plain about difficulty reaching a sales agent at

important aspects of your job — die ones on

the parts counter. There were too many rings

which you should spend much of your time.

before calls were answered, then callers were often put on hold and left for an excessive length of time.

Cose: Solving o Customer Service Problem

Jackie recognized that the problem was hers to solve, but she wondered if there was a way the office telephone system could be reconfig¬

Dean Birch is the office manager for a heavy

ured to help the situation. Together, Jackie and

equipment sales and service company. He is re¬

Dean observed how calls were handled in the

Chapter 2: Managing Your Time 23

parts department, and they developed the fol¬ lowing diagnosis of the problem.

•

•

•

•

•

•

What the problem is: During the busiest hours, 8:00 to 10:00 A.M. and 1:30 to 3:00 P.M., the department re¬ ceives an average of 36 calls per hour. The average call is answered on the fifth ring; the longest wait is 10 rings, which is so long that many callers assume the office is closed and hang up. When parts people answer calls and put them on hold, they cannot tell the order in which the calls arrived. The average call is on hold for 55 seconds. About 10 percent of the calls are on hold for as long as 6 minutes. There is no way to tell which calls have been holding the longest, so calls cannot be han¬ dled on a first-come, first-served basis. Fifteen percent of the callers hang up with¬ out being served.

What the problem is not: • A staffing problem. There are enough parts people to handle the work load if the calls didn’t arrive so unevenly. • A lack of interest on the part of the staff. On the contrary, they are very concerned. • Malfunction of the telephone equipment. It works as designed. The penalties for doing nothing are: • Loss of customers • Demoralization of the department staff. The primary cause of the problem, Jackie and Dean decided, was the lack of information available to the parts people. Their telephone equipment provided no way of telling which call arrived first, so when agents finished one call and several line buttons were blinking with callers on hold, they had no way of knowing

which line had been holding the longest. Parts people were also reluctant to interrupt a call in progress to answer the telephone — during flurries of calls, the telephone often rang several times before someone could break away from a transaction long enough to answer it. In the course of their investigation, Dean and Jackie learned much more about the prob¬ lem. The above items, however, were enough to enable them to establish an objective: “In the parts department calls will be answered no later than on the third ring, and die average caller will wait no more than 45 seconds before being served.” Dean and Jackie decided that two alterna¬ tives could satisfy this objective. Jackie could add a departmental receptionist to answer the telephone, keep track of calls on hold, and direct calls to the first available parts agent. This alternative would work, but it required that the reception desk be staffed continu¬ ously. It also required adding another staff person, with a total cost to the company, including benefits, of $30,000 per year. After consulting with Jackie’s boss, a second objec¬ tive was added: “The solution to this problem should not increase costs by more than $10,000 per year.” The second alternative was to add an auto¬ matic call distributor (ACD) to the office. An ACD answers calls automatically, puts them on hold, and connects them with an available staff member in the order in which they arrive. The ACD added only $125 per month to the cost of the telephone system, so it met the cost objective. An added benefit of the ACD was the availability of reports detailing exactly how long callers had to wait before being served. There was little question that die ACD alter¬ native was more effective than adding staff. It met both of the must objectives and satisfied Jackie’s want objective of obtaining more in¬ formation about customer calling patterns.

24 OFFICE MANAGEMENT MADE SIMPLE

J

t

*,_l

Figure 2.3: 1:1 Leverage

Figure 2.4: 1:N Leverage

Jackie used this information to schedule the

them the right to act on your behalf, but you

work force more effectively.

cannot escape responsibility if something goes

Dean also gained from the new equipment.

wrong. Many managers make a fatal error by

No longer was it necessary for his telephone

failing to delegate work to their subordinates.

attendant to hold people at the console when all lines to the parts department were busy. The

Instead, they either do the work themselves or it doesn’t get done. When a manager fails to

ACD held the calls in queue and played a

delegate, several unfortunate tilings happen.

recording informing callers of specials while they waited for a parts agent. The final step in the process was to establish a feedback path to see how well the plan was meeting the objectives. The reports from the ACD provided information Jackie needed to

• The manager becomes overworked. • Important parts of the manager’s job don’t get done. • The manager’s people are deprived of an opportunity to grow.

see if the objective was being met. Jackie also called two customers per day to see if they were

Consider the teeter-totter in Figure 2.3.

satisfied with service. The results are excellent,

When you place the balance point in the center,

but follow-up is needed to be sure the problem

you can balance only one other person. When

stays solved.

you move the balance point over, as shown in Figure 2.4, you have leverage enough to bal¬ ance several people. We’ve all used the principle

Delegation

of leverage in a physical sense, but some man¬ agers don’t realize that the same principle ap¬

There is an old saying among managers that

plies when they delegate. If you work a job

you can delegate authority but not responsibil¬

yourself, you have one-to-one leverage. One

ity. This is another way of saying that you can

brain and one pair of hands are doing the work.

assign your subordinates to do work and give

When you delegate work to others, you have

Chapter 2: Managing Your Time 25 one-to-n leverage, with n being the number of

subordinate’s action before mistakes are made.

people to whom you delegate. Instead of one

Delegate in this way when you can be inter¬

brain and one pair of hands, you multiply your

rupted and want to test the subordinate’s judg¬

effectiveness by the number of people you have available. Delegation is an office manager’s

ment before he or she proceeds with the work. Type 3 delegation (act, but inform me im¬

most powerful tool to gain time for important

mediately) is appropriate when you want the

projects such as work improvement. Managers

subordinate to take immediate action, but you

who fail to delegate may find themselves mired

need to know about it right away, perhaps so

in an activity trap.

you can inform higher management. For exam¬ ple, an important customer might call with a complaint. You have given subordinates au¬

Levels of Delegation

thority to handle the complaint, but you must be informed immediately so you can initiate

Now that we understand the reason for dele¬

follow-up action.

gating, let’s discuss how to delegate. There are

Use Type 4 delegation (act on your own

five levels of delegation. The level you choose

and inform me routinely) for situations when

for a particular task depends on how much

you want to encourage subordinates to ac¬

control you are willing to release. The higher

cept responsibility, but you want to know

the delegation type, the less control you have

what they have done. This is an excellent

over the outcome. But remember, releasing

form to use when you and the subordinate

control shows that you trust your people, and

have set an objective together. You want to

it helps them grow. In short, by delegating you

know what your subordinate is doing, but

gain leverage. Delegation also helps you gain

you both have a firm understanding of the

time to manage. Here are some guidelines for

objective and guidelines within which the

using different types of delegation.

subordinate is free to act. The report can be

Type 1 delegation (wait until I tell you what to do) is often used with a project that is so

saved for a future time, perhaps during a routine progress review.

important that you want to retain total control,

Use Type 5 delegation (act on your own

not only of what must be done but how it is to

initiative) when you trust the subordinate so

be done. Delegate in this way to employees

completely that you know he or she would do

who are new, untrained, and lack the ability to

it as you want. This is an excellent form of

work on their own without close supervision.

delegation when you want to test a person or

Remember, however, that close supervision of

convey confidence in his or her ability. Before

the job limits their opportunities to learn by

doing so, however, consider whether the risk is

making mistakes. Be prepared to spend a lot of

worth the reward. If the reward is helping a

time on a project when you use Type 1 delega¬

subordinate develop his or her abilities, and the

tion, and remember that if you are not available

risk of failure is acceptable, this type of delega¬

to assign tasks, your subordinates will sit idle.

tion will help you gain time for other parts of

Type 2 delegation (ask before proceeding) is

your job. Also delegate in this way when the

also suitable for high-risk projects or to test

task is so insignificant that the outcome makes

abilities the subordinate is just beginning to

little difference. You don’t need to know every¬

develop. It takes more of your time but offers

thing that goes on in the organization, so don’t

you

waste time getting reports on activities that are

a

checkpoint

for

redirecting

the

26 OFFICE MANAGEMENT MADE SIMPLE

of little consequence. Subordinates sometimes

solve the daily problems that confront you on

feel the need to inform you of actions that are

the job, you still need a collection of work

completely within their authority. If you find

habits that assist you with time management.

your time being wasted in this way, explain

These habits are not easy to learn, and many

Type 5 delegation and encourage them to con¬

managers are effective without practicing

tinue to take independent action.

them, but until you develop your own manage¬ ment style, these hints can help you manage your time.

Backward Delegation

Set Daily Priorities.

At the close of every

work day, when the day’s problems are This discussion wouldn’t be complete without

firmly in your mind, make a list of things to

considering backward delegation, which hap¬

do the following day. Write them on a cal¬

pens when you delegate and your subordinate

endar or to do list. Assign them priorities

tries to bounce the decisions back to you. You

depending on how they will help you reach

will be asked questions that sound innocent

your objectives. A priority work is directed

(such as “What would you do in this case?”,

at your objectives. B priority work is im¬

“What do you think?”, “Can you give me your

portant even if not specifically directed at

ideas on this?”), and it’s tempting to give into

your group’s objectives (for example, it

these since you may be able to make a decision

may help coworkers reach their individual

immediately about a problem that has your

objectives). C priority work is something

subordinate stumped. Before you take over,

that probably should be done, but if it’s

however, remember the principle of finished

delayed, nothing serious will happen.

staff work. When you let your subordinates

Make three files to store the papers that

delegate back to you, you deprive them of an

relate to A, B, and C priority work. If the

opportunity to learn and grow. And you lose

priority is any lower than C, consider throwing

the most precious commodity you have: time.

the paper away and ignoring the problem.

One final thought on the topic of delegation:

Many problems disappear of their own ac¬

A major cause of conflict between bosses and

cord. In deciding whether to work on a prob¬

subordinates is a lack of understanding about

lem, test it against the effectiveness rule. If it

the level of delegation the boss intends. When

doesn’t affect customer service or the welfare

your boss delegates to you, find out the level of

of the company or its employees, it’s probably

delegation he or she has in mind — it elimi¬

not worth your time.

nates confusion and helps you meet your boss’s expectations.

When you set priorities, expect them to change. A flexible manager reviews priorities regularly, and always asks the question, “Is what I am doing now helping me reach the

Personal Time Management

objective?”

Manage Paper Flow.

This is supposed to

You can become the best problem solver and

be the age of the paperless office, but it hasn’t

delegator in the world and still not use time

happened yet, and it may never come to pass.

effectively. When you have gained control of

Most of us are buried under a flood of

your time to the point where you have hours to

paperwork and need some process for coping

spare for work improvement projects and to

with it. The ideal is to handle each piece of

Chapter 2: Managing Your Time 27 paper only once. When it comes in, read it, delegate it, file it for future action, or throw it

could get all the information they need from reading the minutes.

away. This doesn’t always work, however, so

• Is it necessary for everyone to attend the en¬

the paper remaining should go into your A, B,

tire meeting? If the agenda is well planned, it

or C priority baskets for handling as time per¬

may be possible to hold the meeting in

mits. Go through die C basket occasionally and

phases and release some people early.

ask yourself if the work still needs to be done. If not, throw the paper away.

Keep Your Work Area Uncluttered. This

• Is the schedule appropriate? If it is vital that certain people attend, check the schedule against their calendars.

is the hardest lesson many of us have to learn. There never seems to be enough time to file things, and when we do have time we can’t find

Control Time Waste and Frittering. Most

them. Many effective managers work from a

of us waste several hours each week by fritter¬

cluttered desk, and they know exacdy where

ing. Frittering gives the appearance of pro¬

every piece of paper is, but most of us waste

ductive work while accomplishing little or

hours every week shuffling through piles to

nothing. We are frittering when we shuffle

look for lost documents. Develop the habit of

papers without dealing with them, waste time

an organized work area to save precious hours

in social meetings with our peers, make per¬

for productive work. Make file folders or stor¬

sonal telephone calls or run personal errands,

age areas for the important items and keep

play games at the personal computer, and

them visible. When they are out of sight, we

other such activities. At times, all these activi¬

tend to forget about them.

ties can have a legitimate business purpose,

Manage Meetings. A common complaint spend countless hours in unproductive meet¬

such as relieving stress or easing strained inter¬ personal relations; but we owe it to our em¬ ployers and ourselves not to pretend we’re

ings. Meetings are a fact of organization life,

working when our activities do not result in

and without them it is difficult to exchange

service to the customer or an improvement in

information. There is little question, however,

reaching company objectives.

among most organization people is that they

that most companies waste a great deal of time

Control the Telephone. The telephone is

at meetings that are held at the wrong time, for

one of the greatest tools we have for saving

the wrong reason, and with the wrong people

time. Information is available in the seconds it

in attendance.

takes to dial. The telephone can save travel time

Before you attend a meeting, or before you

and expenses, substitute for face-to-face meet¬

call one yourself, ask these questions.

ings, and allow us to cement relationships with

• What is the purpose? The most effective

a few friendly words. It can also interrupt highpriority work with triviality, waste hours in the

meetings are for exchanging information and

unproductive game of telephone tag, and frus¬

solving problems.

trate caller and called persons alike with busy

• Is there an agenda? Without exception, all

signals and mechanical messages that substitute

meetings should have an agenda and the

for people who can help you. To get control of

people attending should know what it is.

your time, you must prevent the telephone

• Who should attend? Often, people are in¬ vited to meetings as a courtesy, but they

from becoming your ruler instead of your ser¬ vant. Here are a few suggestions.

28 OFFICE MANAGEMENT MADE SIMPLE

• When you place a call to a person who is not

distracted from important work. Here are

there, suggest times when you will be avail¬

some suggestions for keeping an open-door

able for them to return the call.

policy while not letting your time be controlled

• Instead of leaving callback messages, try to

by someone else.

communicate through the other person’s re¬ ceptionist or voice mail so a callback will be unnecessary. • See if a third party can handle the call and avoid the need for a callback. • Select the best time to return calls. Often, the most likely time to find people at their desks is just before the workday starts or after the close of business.

• Tell your staff when you have work that can¬ not be interrupted except for emergencies. • When you have work that requires your un¬ divided attention, schedule time for inter¬ ruptions. Tell your staff, the receptionist, and peers when you will be available. • If work requires uninterrupted concentra¬ tion, try doing it outside working hours.

• Try to leave an action message instead of a

• Welcome others when you have time, and

callback message. For example, the message

give them your undivided attention so they

“Please fax me your best and final offer,” may

will understand your desire to be helpful.

eliminate the need for a callback. • Plave an agenda for telephone calls and tick off die points as you talk. When you have left

• Inform everyone of circumstances for which you are always willing to be interrupted, such as when a customer or the boss calls.

a message for another person, you can add items to the agenda until the call is returned.

Don’t Let Low-Priority Work Distract You.

• Plave the receptionist bring you messages

The computer world has given us a term to

when you are on the telephone and someone

describe many managers: interrupt-driven. Lit¬

is waiting on the line. That way you can indi¬

tle fires erupt every day, and it’s tempting to

cate whether it is worthwhile for them to wait.

drop everything to put them out. When you

• If the party you called is not available, find

do, you lose momentum, and chances are good

out when it would be productive for you to

that you’ll lose time getting back to more im¬

call again.

portant problems. Don’t be a compulsive fire¬

• Leave word with your receptionist of the

fighter. Most problems will wait for an hour

important calls you expect so you can inter¬

while you finish higher priority work.

rupt a call in progress to avoid missing a

Learn to Do More than One Thing at a Time. The most effective managers have

vital call. • When calls go on too long, terminate them

learned to use the time that others waste. For

politely with a statement such as “I have a

example, catch up on office reading on the

deadline I’m working against on another

train or bus, and learn to use tools such as the

project.”

laptop computer to work while you ride to meetings or commute to the office.

Control Interruptions from Subordi¬ nates. Most effective managers have an opendoor policy, which means they are available to

Summary

their subordinates for guidance and counsel. Beneficial though this policy is, it may result in

If you observe both effective and mediocre

interruptions when you would rather not be

managers at work, you will invariably find that

Chapter 2: Managing Your Time 29

the best managers control their time. The

priority work are most often of our own mak¬

weakest performers let themselves be con¬

ing. The suggestions in this chapter can help

trolled by events, interruptions from their

you remain focused on your objectives. Re¬

subordinates and coworkers, and brush fires

member that you are looking for techniques

that erupt unexpectedly. All of us are con¬

that set you apart from the rest of the crowd

trolled to some degree by external events,

and give you what you need in the business

but the factors that divert us from higher

world: a competitive edge.

CHAPTER

THREE

Your Management Style

KEY TERMS FOR THIS CHAPTER management style Theory X Theory Y

motivation authority

All managers hold certain beliefs about how

requires some form of action on your part. As

their peers, subordinates, and bosses respond

a manager you must choose your behavior,

to their leadership. What you believe, however,

tailoring it to the situation and to the styles of

is not nearly as important as how you behave. If

the other people involved.

you are consistent in your actions, other people begin to make observations about your man¬ agement style and respond accordingly. Remember that not all people respond in the same way. If you issue harsh and direct orders,

Relationships with Subordinates

for example, some people may be intimidated, some may feel comfortable, and others may

More than 30 years ago, a psychologist named

bristle and fight back. If you ignore a

Douglas McGregor published a book called

subordinate’s misdeed, some people may see

The Human Side of Enterprise. This book has

your lack of reaction as a sign of weakness and

formed the basis for much of today’s thought

take it as license to commit further infractions.

on management styles. McGregor stated that

Others may see your approach as a sign of

there are two competing theories about why

tolerance and work harder to show gratitude

people work. The first, which he called Theory

that no punishment was given.

X, suggests that people dislike work and accept

Your management style is the way you deal

employment primarily to gain personal secu¬

with others — subordinates, peers, and boss —

rity. According to Theory X, people are inher¬

when you are confronted with a situation that

ently lazy and work most effectively when their

Chapter 3: Your Management Style 31

Figure 3.1: Maslow's Hierarchy of Needs

supervisors tell them what to do and check regu¬

Motivation

larly to see that they are performing. Theory X holds that workers avoid accepting responsibility

Let’s consider what motivates people to work.

and prefer to be directed and controlled by their managers. A Theory X manager believes that

Many managers believe it is their job to moti¬ vate their subordinates, not realizing or believ¬

workers must be forced to adopt organizational

ing that motivation largely comes from within.

goals through coercion, control, and sometimes

A behavioral psychologist named Abraham

the threat of punishment. Theory Y, on the

Maslow developed a theory about the hierar¬

other hand, suggests that people find satisfaction

chy of needs, shown in Figure 3.1.

in working. A Theory Y manager believes that

According to Maslow’s theory, people work

workers will direct and control themselves when

to satisfy their needs from the bottom up.

they are committed to achieving the company’s

When people satisfy one level of needs, they

goals. Instead of closely controlling work, a The¬

move to the next until they reach the level of

ory Y manager explains what is expected and

self-actualization. If a lower level need is threat¬

concentrates on removing roadblocks and solv¬

ened, however, people usually hasten to protect

ing problems so workers can achieve. If you

it and momentarily drop their quest for higher

accept this theory, you believe that people find

levels of satisfaction. Maslow suggested that

work as satisfying as leisure, and that they have

people are not motivated by needs they have

potential that is waiting to be tapped by the

already satisfied; it is only the unsatisfied needs

organization that does not impose tight controls.

that propel us to a higher level of achievement.

32 OFFICE MANAGEMENT MADE SIMPLE

Our most basic needs are physiological:

many of them have more than they need. They

food, drink, sleep, and sex. When these crav¬

work because they enjoy it and find a path to

ings are satisfied, we seek security. When we’re

self-actualization through their company roles.

feeling safe from attack, we form social attach¬

The key question is whether only top managers

ments and satisfy a need for love and belong¬

can gain satisfaction from their work.

ing. All managers agree that a person’s job

In his book Work and the Nature of Man,

helps satisfy both security and social needs and

psychologist Frederick Herzberg summarized

provides the finances to support physiological

his experiences and observations of people at

needs. Money buys food, shelter, and security,

work. Many businesses organize on the as¬

and working in an office fulfills an important

sumption that people work for external factors:

social goal. Neither of these is likely to inspire

money, a company car, a plush office, a fancy

people to the kind of performance that makes

title, or a desk by the window. Herzberg found

them exceptional employees.

that these rewards, which he calls dissatisfiers,

Many managers see the fourth need, ego and

do not truly motivate people. When workers

self-esteem, as a human characteristic that they

lack these trappings they can become unhappy,

must control. They expect workers to give up

but by themselves these rewards do not moti¬

some of their independence in exchange for the

vate people to more productive work. The true

security offered by the company’s wages and

motivators, Herzberg found, are far more sig¬

benefits. This form of bargain, which compa¬

nificant to managers: responsibility, recogni¬

nies and their employees enter into every day,

tion, achievement, opportunity for growth and

forms the basis of Theory X leadership.

advancement, and the work itself.

The top level on Maslow’s scale is more

These theories lead us to some interesting

abstract and difficult to understand. Every¬ one has a need to make a meaningful contri¬

conclusions. The more we can enable our peo¬

bution to society. Maslow calls this need

ple to manage themselves, the more satisfaction they will get from the job, and the more time

self-actualization; others refer to it as reach¬

we’ll have to manage.

ing one’s potential, creativity, and continued self-development. All of these comprise the

Does this mean you should take a hands-off approach and let the job run itself? Not at all.

fifth level of need. If you can create an atmo¬

As the office manager, you are responsible

sphere in which people fulfill themselves

for what happens. Since you do your job

through their jobs, you can tap resources that

through other people, it follows that you need

employees otherwise withhold for their pri¬

to know something about what mobilizes

vate lives.

them. Consider these points in thinking about

Many managers make the mistake of

how to run your job.

designing jobs that lack meaning, forcing their employees to find purpose outside working

• Not everyone responds to the same needs.

hours. Most people naturally attempt to lift

Some people want security, and they may not

themselves, to grow and become more than

yet know how to handle more freedom.

they have been in the past. They find self-actu¬

• People need guidelines. Tell them the limits.

alization in hundreds of ways: sports, politics,

• Performance must be evaluated regularly.

hobbies, and business. Why do top managers

People want to know where they stand, and

devote a maximum of time and energy to their

your responsibility as a leader is to keep them

work? Not just because they want more money;

informed.

Chapter 3: Your Management Style 33 • People may not have the knowledge, expe¬

McConnell, office services manager. As soon as

rience, or information to make informed

they were seated around Frieda’s desk, Ron

decisions.

pulled out his pipe and began looking for a

• The situation may force a certain leadership

place to knock out the dottle.

style. For example, Theory X may be a much

“You won’t find an ashtray in here any

better style than Theory Y for saving passen¬

longer,” Frieda told him. “That’s what this

gers on a sinking ship or leading troops into

meeting is about. The cabinet met this morn¬

combat. Such emergency situations are rarely

ing and decided to ban all smoking on school

found in the office, however.

property.”

Although McGregor proposed only two

Judy had been about to light a cigarette, but she shoved the pack back in her purse and

competing theories, there are many other styles

snapped it shut.

that managers may adopt. Some managers sim¬

“Even in private offices?” she asked. The

ply take a hands-off attitude and avoid taking

district had always allowed smoking in the

any hard stands on controversial issues. Yet

teachers’ lounges, private offices, and the out¬

while it is not necessary that you react to every

side fenced areas called bull pens that were set

situation that comes along, if you avoid taking

aside for students to smoke.

action when your goals, the company’s goals,

“Not only in private offices, but also in the

or the welfare of your subordinates is threat¬

bull pens,” Frieda said. “Let me explain. First,

ened, you may well be perceived as a weak

we have to set an example for our students.

manager. The style that is perhaps the most dangerous —

Second, we can’t ignore the health effects of smoking. Our health insurance costs are getting

because it is so appealing — is that of always

out of hand, and we’ve proved that employees

seeking the middle ground. Compromise is

who smoke cost the district thirty percent more

necessary in any office because there is no clear-

for health insurance and absence. Then there are

cut answer to every problem. A good leader

the extra costs of cleaning up after smokers. Our

knows when to compromise, but he or she also

fire insurance will go down ten percent if we

knows when to stand firm on principles.

prohibit smoking on school property.”

Let’s consider a typical problem to illustrate

Judy sighed. “This will be difficult. I can’t

how managers react differently to situations

make it through the day without a cigarette.

that arise in the office.

Isn’t there a phase-in period?” “The policy goes into effect next Monday,” Frieda said. “However, the district is bringing

Case; A Contrast in

in a stop-smoking consultant. The program

Management Styles

also starts next Monday night for both students and adults.”

Frieda Hoffman, vice principal for administra¬

After tire meeting the three administrators

tion in the Fairwoods school district called her

went back to their offices to deliver the news to

staff together at 1:00 P.M. to deliver an an¬

their subordinates. Here’s how each of them

nouncement that was being released simulta¬

handled it.

neously to all departments. Her staff consisted

Ron Ackerman knew he’d have a tough time

of Ron Ackerman, facilities manager; Marie

with the policy. His pipe was his trademark. It

Rathbone, data processing manager; and Judy

helped him think over problems, and his

34 OFFICE MANAGEMENT MADE SIMPLE

mouth would feel lopsided without it. In addi¬

“In this office the policy begins now,” Marie

tion, many of his staff would object strenuously

said. “The first time you light up it costs you a

to the new policy, particularly the evening cus¬

day off without pay. The second time it costs

todians. There were several heavy smokers in

you your job.”

the group, and Ron felt they’d never under¬ stand why they couldn’t smoke when the stu¬ dents weren’t even in the building. He dreaded

“I don’t think you can make that stick,” Joe said. Marie narrowed her eyes. “Try me.”

talking to them about the policy. He went back

Judy called the office service staff together for

to his office and pulled out his pipe. At least the

a short meeting in the conference room. She

policy didn’t take effect until Monday. He la¬

knew that several of her people would be un¬

bored for several minutes tamping, filling, and

happy with the new policy, but she was deter¬

lighting the pipe, leaned back and filled his

mined to do her best to answer all objections as

lungs with smoke. Then he wrote a notice.

fully as possible. She explained the new policy

EFFECTIVE MONDAY, APRIL 22, THERE WILL

and related the cabinet’s concern with control¬

BE NO SMOKING PERMITTED ON SCHOOL DIS¬

ling costs and setting an example for the students.

TRICT PREMISES. THIS APPLIES TO EVERYONE,

“I know this will be hard for some of you to

He instructed his secretary to make 24 cop¬

accept,” she said, “but the district is trying to make it as easy as possible. You have a few days

ies of the notice and post them in all janitorial

to adjust. I know it won’t be easy. No one is

closets and maintenance work rooms. As he

suggesting that you can’t smoke off the school

expected, he got an angry reaction from the

grounds, but there are classes starting next

smokers.

week to help you stop smoking.”

EVERYWHERE, WITH NO EXCEPTIONS.

“Don’t talk to me,” he said. “If you have

Judy opened her purse and took out her

complaints, take them to the superintendent.

cigarettes. “Right now I want one of these so

It’s his policy.”

badly I can taste it.” She crumpled the package

Marie Rathbone was delighted with the new policy. She detested smoking and had little

and threw it in the wastebasket. “Who’ll be in class with me next Monday?”

tolerance for smokers, including her two peers,

Of the three managers, is there any question

who always fouled the air in Frieda’s staff meet¬

which one will command the loyalty of her

ings. Marie’s people couldn’t smoke in the

subordinates? Ron hoped to avoid the issue by

computer room, so several of them wasted time

handing out a memo instead of facing his peo¬

going to the lounge for smoke breaks.

ple, some of whom he knew would be upset

When Marie returned to her office she called her staff in for a stand-up meeting.

with the new policy. When this proved to be true, he shrugged it off by casting the blame on

“We have a new policy in the district,” she

the superintendent. Marie used the Theory X

announced. “Effective immediately there will

principle that locked her in a power struggle

be no more smoking on district premises, in¬

with her subordinates. Judy’s Theory Y ap¬

cluding lunch rooms and lounges.”

proach balanced the needs of the organization

Joe Kelly, who was a heavy smoker, had already heard about the policy from a co¬ worker. He stuck a cigarette in his mouth. “At least the policy doesn’t go into effect until Monday,” he said, thumbing his lighter.

with those of her people. Theory Y isn’t invariably the best technique to use. Sometimes there simply isn’t enough time to explain the situation and permit subor¬ dinates to discuss alternatives; not every em-

Chapter 3: Your Management Style 35 ployee responds to a Theory Y approach. Some

• Know your job. Your peers expect you to

people interpret explanations and the participa¬

speak for your part of the organization, and

tive approach as signs of weakness and prefer to

you can’t do that unless you understand

receive unambiguous orders. The key to good

your job.

management is to become a situational man¬

• Cooperate. You and your coworkers have the

ager. That is, adapt your style to fit the situa¬

responsibility to cooperate for the good of

tion. Effective managers develop a tool kit of

the total organization. Don’t trap yourself

techniques that allow them to be harsh, forgiv¬

into defending your interests when it costs

ing, tolerant, and directive as the situation de¬

the company as a whole.

mands. Observe the Tool Kit Principle.

• Serve the customer. Never forget that the

The Tool Kit Principle: When your only

customers (constituents, clients, patients,

tool is a hammer, you tend to treat every

etc.) are the reason your group exists. Their

problem as a nail.

interests must be served or the company will not survive. The path of American business is

Relationships with Peers

littered with the remains of companies that have expired because they lost touch with their customers.

Effective leadership involves getting along with people on your own level: your peers. Part of your job as office manager is to participate as a member of the company’s management team.

How to Get Peers to Do What You Want

In your work group you are the leader; with your boss you are sometimes the leader, but

Authority is a wonderful thing in a company.

most often not; with your peers, your role

When you wear the badge of authority people

shifts — sometimes you are a leader, sometimes

follow your instructions — sometimes without

you are a supporter. Always, you are assisting

question (which can be risky). But what of

the company to achieve its goals.

relations with your peers, over whom you have

On the job, you will interact with your co¬ workers to serve customers, solve problems,

no authority? How do you get them to do what you want?

exchange information, plan changes, and col¬

The name most people give to this area of

laborate in other ways to make the job go

interaction is office politics. Many people are

smoothly. Your style is likely to be different

dismayed by the fact that every organization

with your coworkers than with your subordi¬

has politics, but it’s an inevitable aspect of

nates. For one thing, unless the company has

organizational life. Politics is a broad and am¬

specifically given you authority, you must use

biguous term, but generally it is the art of

different techniques to get peers to follow your

getting people to do what you want. The pro¬

lead. Suggestions, persuasion, and sometimes

cess is not scientific; it is a case of knowing

pleading are necessary to get your peers to do

people and establishing relationships with them

what you want. Your coworkers expect certain things of you

that you can draw upon when necessary.

as a manager. If you meet their expectations,

politics. Look at your company structure to

your reputation as a manager will be enhanced.

determine whose jobs are closely entwined

Keep these points in mind.

with yours, and get to know those people well.

Don’t be put off by the idea of company

36 OFFICE MANAGEMENT MADE SIMPLE

Make it a point to understand their problems

ing good news or bad. They watch your man¬

and objectives. Enlist them as informal mem¬

agement style and approach you confidently or

bers of your team, and learn how you can

gingerly, depending on how they believe you

support their objectives.

will receive them. Consciously or not, all work¬

Competition is the driving force of world¬

ers develop theories on how to get what they

wide enterprise, but it is a tricky thing to bal¬

want from their bosses. Whether their goal is a

ance competition inside an organization with

raise, time off, a promotion, or any of the other

the need to raise the performance of the total

elements of organization life, your people are

organization. Healthy competition is easy to

constantly trying to figure out how the system

recognize. If the company’s goals are enhanced

(and their boss) works.

by the fact that everyone is striving for a com¬

There are no universal rules for managing

mon goal, the competition is good. If one

bosses, because every boss is different, but here

group wins and the other loses, however, com¬

are some suggestions that will ease your life as a subordinate.

petition is unhealthy.

Understand and Use Your Authority.

Here are some ways that you can enlist your peers as part of your work team without com¬

When your boss delegates to you, determine

peting with them.

the level of delegation (see Chapter 2) and handle the task accordingly. If it is Type 4 or

• Get to know your peers on a personal basis. It is much easier to request assistance from a friend, and the request is more likely to be granted. • Respond promptly to their requests for assis¬ tance. Plan to give at least as much as you get.

Type 5 delegation, act on your own without seeking your boss’s opinion.

Find Out Your Boss’s Objectives. Your boss has certain goals and objectives. The more you know about these, the more effectively you’ll be able to support them.

• Discuss objectively how the company’s inter¬

Define Your Boss’s Expectations. Most

ests can best be served when problems arise.

difficulties between boss and subordinate occur

A manager with a reputation for objectivity

because of poor communication. Use simple

will find that others cooperate more readily.

techniques, such as summarizing the conclu¬

• Learn as much as possible about others’

sion of a meeting or telephone conversation, to

problems and offer your assistance where

make certain you haven’t misunderstood. If the

appropriate.

subject is important enough, sometimes an in¬

• If conflicts arise, always consider what is best

formal memo crystallizes your thinking and

for the company, not what is best for your

keeps the boss informed. Be careful with these,

own work group.

though. It may look as if you’re building defenses.

Choose Your Behavior Carefully. Just as

Managing Your Boss

you behave differently toward subordinates than toward peers, you must also carefully se¬

To speak of managing your boss may sound like

lect the way you behave toward your boss.

a contradiction of terms, but it isn’t. If you

Learn the best approach for different situations

don’t believe it, observe closely the way your

and act accordingly. Most bosses dislike both

people manage you. They are conscious of your

arrogance and apple polishing in their subordi¬

moods and carefully choose the time for bring¬

nates. Train yourself to be sensitive to your

Chapter 3: Your Management Style 37

boss’s reactions to different behaviors, and

it much easier to change yourself than to

adopt or avoid those behaviors as appropriate.

change those with whom you must work.

Evaluate Your Performance Through the BOSS’S Eyes. Self-evaluation is one of the

Here are several traits that good leaders share.

hardest tasks we have to perform, but if you can

• They know their jobs.

look at your job from your boss’s viewpoint, it can help you manage him or her.

• They have the ability to make complex and difficult decisions. • They treat people evenhandedly and do not show favoritism. • They take a long-range view of the company

Summary: A Portrait of an Effective Leader

and its objectives. • They remain impartial and on balance, and they avoid making judgments until the facts are known.

Leadership can be learned, but reading about it

• They are able to create an atmosphere where

isn’t enough. Most leaders learn by trial and

people feel free to exchange ideas and

error, starting in childhood. We try to lead, and if it doesn’t work we try something else. If a

information. • They avoid reacting to a situation until they

technique does work, we adopt it as part of our

understand it and have considered alternate

personal leadership style. We soon learn, how¬

ways of responding. Sometimes doing nothing

ever, that behavior that worked in sports and

solves a problem more quickly than action.

school is often unsuccessful in business. As an effective manager, you must constantly observe the results of your behavior, and if you’re not satisfied with the outcome, change. You’ll find

• They do not hesitate to rectify unfavorable situations. • They keep the good of the total organization above their personal and group goals.

CHAPTER

FOUR

Managing Office Productivity

KEY TERMS FOR THIS CHAPTER

total factor productivity quality index

roadblocks queuing theory queue discipline

There is a well-known fable about the three

(We’ll explain later how money and materials

blind men and the elephant. Each formed an

can contribute to productivity.)

opinion of the elephant based on what he

When the government talks about national

could feel, but none of them perceived what

productivity, the concept is entirely different.

the whole beast was really like. Productivity is

Our national productivity is a statistical index

rather similar: It is perceived one way by a

factor that is derived from many sources. There

person at one level of an organization and

is nothing that you as an office manager can do

another way by someone at a different level. If

to affect national productivity, but your actions

you speak of productivity to your staff, they

have a substantial effect on the productivity of

may conclude that you’re telling them to work

your company and your work group.

harder for the same amount of money. Owners

We will begin our discussion of productivity

of companies may see productivity in a differ¬

by explaining what it is and how it is measured

ent light. They are concerned with something

in a company. Next, we’ll discuss how your role

called total factor productivity which consid¬

as office manager affects the productivity of the

ers not only the productivity of people but also

company. We will develop a working produc¬

the productivity of money and materials.

tivity model that you can use to measure your

Chapter 4: Managing Office Productivity 39 group and enlist your staff’s help in improving

divide them by the number of lathe operators,

productivity. Finally, we will explore ways in

and we have a measure of the average produc¬

which you can improve productivity by remov¬

tivity per operator.

ing roadblocks that prevent your people from

In thinking more deeply about the measure¬ ment, however, we consider other factors. Not

working at their capacity.

everyone in the shop is running a lathe; some people are supervising, some are sweeping the

Productivity Concepts Simplified

floor, some are packaging the product for ship¬ ment, and some are working in the office tak¬ ing orders, answering customer inquiries, sending out bills, and handling other similar

The technical definition of productivity is easy to

office functions. These people are vital to the

understand. It is defined as work produced per unit of time. The productivity formula is

business, but they are not directly involved in production. Their time is classified as overhead.

units of work units of time

Overhead workers are frequently called non¬ productive workers because they are not di¬ rectly involved in production. Don’t be misled

Since the time unit is usually expressed in

by the idea that the office staff is nonproduc¬

hours, productivity is often measured as units

tive. They work just as hard as production

of work per hour. This is easy enough to under¬

workers, and their contribution to the com¬

stand in most manual operations. In manufac¬

pany is no less valuable.

turing, productivity might be measured as

The Effects of Quality on Productivity.

garments finished per hour or tons of steel

Suppose our shop discovers a way to produce

produced per hour. It isn’t enough, however,

lamp bases in half the time, but some of the

to consider only the number of labor hours

bases are rejected with flaws. Does this increase

needed to produce an item. It is also necessary

productivity? The answer depends on several

to consider the cost of the machinery and the

other factors. Discarding a few completed bases

raw materials that go into the effort.

may offset the cost of the labor saved by the

To illustrate this point, let’s consider an ex¬

new process and indeed improve productivity,

ample of manufacturing productivity, since

but we’re not concerned only with the cost of

manufacturing deals in tangible products, and

labor. What about the cost of the wasted mate¬

it is easier to visualize productivity there than in

rial? Also, what if some of the defective bases

an office.

find their way into customers’ hands? Com¬ plaints increase and some of the product is returned. These defects increase the company’s overhead costs. It’s clear that productivity isn’t

How Manufacturing Productivity is Managed

just a matter of measuring labor costs. There is

Assume that we have a woodworking shop that

most effective for the product. For example, if

uses wood lathes to turn out lamp bases. Mea¬

the lamp bases are painted, it might be uneco¬

suring productivity seems easy enough: We

nomical to use teak when a less expensive wood

count the lamp bases completed every hour,

such as maple is equally acceptable. Managers

also a quality component. We must ask whether the material used is the

40 OFFICE MANAGEMENT MADE SIMPLE

must, therefore, also be concerned with the

Measuring Office Productivity

productivity of materials.

How Labor-Saving Equipment Affects Productivity. To carry the analysis a step fur¬

What does this manufacturing example have to

ther, suppose we find that productivity can be

principles (such as controlling waste and ensur¬

improved by investing in new computer-con¬

ing that workers have enough to keep busy)

trolled lathes. Instead of assigning one opera¬

apply whether the work being performed is

tor to each lathe, this new equipment allows

production work or overhead work. Yet office

one operator to tend three lathes simulta¬

jobs are also different from factory production

neously. If we make the investment does this

floor jobs because the environment is different,

improve productivity? Again, the question cannot be answered with¬

and much of the work, such as answering the telephone and answering customer inquiries,

out more information. The money required for

has no tangible output. Except for companies

the new equipment has a cost. If it is borrowed,

such as secretarial services, no one buys the

the lender requires interest. If it comes from the

output of the office; it goes to support the

owners’ pockets, they expect to realize a return.

productive sector.

do with office productivity? Many of the same

If the labor saved is greater than the cost of

So how can we measure office productivity?

money, the investment may improve productiv¬

This question has troubled office managers for

ity. If not, an investment in equipment may cause

many years. It is easy to measure keystrokes per

total factor productivity to drop.

second with people operating word processors,

We also must consider other factors that are

and many companies have done just that. The

less tangible. For example, if the company in¬

difficulty is that one keystroke is not like an¬

vests in machinery that displaces workers, what

other. It is much easier to type from printed

will the company do with those whose jobs are

text than from handwriting. And what about

eliminated? If it continues to pay them but they

operator errors that result in the need for cor¬

do not produce marketable goods, productivity

rections? These are not so easy to evaluate.

will drop. If it lays them off, morale will drop

Even if you develop a crude productivity mea¬

and the productivity of the remaining workers

surement based on keystrokes per hour, you

may be affected. These issues are important,

will find it difficult to measure the productivity

and we will deal with them in a later chapter.

of other office workers such as the receptionist,

For now, let’s focus on the technical side of

whose effectiveness isn’t measured by quantity

productivity.

but by quality.

It should be clear from this discussion that productivity is a complex issue that has little to do with merely asking people to work harder.

An Office Productivity Model

When we talk about improving productivity, we’re talking about management actions that

So far we have suggested that people’s effec¬

control the use of money and materials to in¬

tiveness on the job will increase if we can:

crease die ability of the work force to turn out high-quality goods and services. We’re also

• give them added responsibility

talking about removing roadblocks that cause

• give them more freedom to manage

people to lose time that would otherwise be spent on productive work.

themselves • let them know clearly what is expected

Chapter 4: Managing Office Productivity 41 • keep them informed of how they are doing PRODUCTIVITY FORM

• give them an opportunity to participate in

Stricdy speaking, it is not a method for measur¬ ing productivity directly. It is a method of identifying and measuring specific objectives

C/1

section can meet all of those requirements.

° § CRITERIA m

The productivity process we describe in this

8 PRODUCTIVITY

decisions that affect them.

which, when they are reached, will result in measurable improvement. The productivity form in Figure 4.1 can be reproduced and used to manage productivity in

9 8

your office. Although the form appears com¬

7

plex, it is easy to complete.

6 5 4

Step 1: Identify Problem Areas The first step is to identify areas needing im¬

3

2

provement. At the top of the form is a horizon¬

1

tal column labeled “productivity criteria” for

0

tracking up to seven items. Identify only as

SCORES

many as you feel comfortable working on. You

WEIGHT

could track more than seven, but trying to

VALUE

improve too many things at once may dilute your effectiveness. It is better to manage a few high-priority items well than to try to fix all your problems immediately. The productivity model is intended to track improvement pro¬ jects until the objective is reached; then you have the option of dropping an item and re¬ placing it with something else. The problem-solving model we discussed in Chapter 2 is an excellent way to identify im¬ provement projects. Consider involving your office staff in identifying problems to work on. If they take part in selecting the projects, they will feel more committed to achieving diem and will be more interested in your feedback about progress. The problems you choose do not have to correspond directly with the conventional def-

Figure 4.1: Productivity Form

42 OFFICE MANAGEMENT MADE SIMPLE

inition of productivity (units of work per hour).

sample may enable you to collect enough infor¬

Remember that we are attempting to improve

mation to measure results.

anything that influences cost or service, be¬

Enter a short description of the problem in

cause these almost invariably affect one of the

one of the productivity criteria boxes. Assign

three parts of total factor productivity — man¬

the present numerical result a performance

power, money, and material. For example, you

score of 3, and enter it in the box at that level.

may identify an absence problem as a primary

The present level on any criterion is always

cause of delays in meeting work schedules; or,

arbitrarily set at the level 3 to give you room to

a telephone problem could be adversely affect¬

improve and even drop somewhat. Figure 4.2

ing customer satisfaction. It takes a lot of time

shows how the form is filled out. Note that we

and money to cultivate a customer. If dissatis¬

have stated the invoice error objective as

fied customers take their business to a compet¬

“error-free invoices.” This wording has a more

itor, a drop in productivity will inevitably

positive impact than stating the objective as

result. Almost any problem that is worth work¬

“invoices with errors.” We could have done the

ing on is directly or indirectly involved in pro¬

same with percent absent time, but we want to

ductivity and lends itself to this process.

illustrate the point that the productivity chart works equally well when the productivity im¬ provement is stated as an increasing or a de¬

Step 2: Identify Present Status

creasing number. For our purposes it doesn’t matter whether improvement is represented by

The second step is to find out where you pres¬

a larger or smaller value because it will not be

ently stand and express the results numerically.

the number but the score from the first column

Some situations can easily be expressed numer¬

of the chart that will generate the index.

ically. For example, if you find that absent time is 6 percent of total work time for the group, you may identify this as one problem to work

Step 3: Set the Objective

on. In Chapter 2, we stated one problem as “6.3 percent of the invoices we issue have er¬

Develop objectives using the techniques we

rors that result in customer complaints.”

discussed in Chapter 2. If you involve the office

Results that cannot be expressed numerically

staff in setting the objectives, they will feel

do not lend themselves to the productivity

more committed to achieving the result. Enter

form, but they are no less important. An objec¬

the objective at the 10 level. For example, if the

tive such as “develop a new procedure for han¬

objective for incidental absence is 2.5 percent

dling customer complaints by June 15” is

and the objective for error-free invoices is 98.0

tangible and should be expressed as a separate

percent, enter these as shown in the top row of

written target.

the chart.

Look for ways to collect information with a minimum of effort. Company payroll reports usually show the amount of absent time. A count of customer contract forms should show

Step 4: Develop Remaining Scores

the number of billing complaints. For some objectives it may be necessary to make a special

Fill in performance scores for the remaining

study to get the information. If so, a random

steps by dividing the interval more or less

Chapter 4: Managing Office Productivity 43 evenly. Extend the scores downward for the

PRODUCTIVITY FORM

first two levels. Figure 4.2 shows how two the method using the incidental absence col¬ umn, we subtracted 2.5 (the objective) from 6.0 (present results). The difference is 3.5,

l

I

-T*

WJ

Step 5: Develop a Weighting Scale Not all objectives are equally important. We need to assign them a weighting value to ex¬ press how important we consider them to be. You have 100 weighting points to distribute among the criteria you are tracking. If you are tracking seven criteria, you could give each one 14.3 points, but that is usually not realistic because some items are more important than others. The criteria of most value to the com¬ pany should be weighted more heavily than the objectives of lesser importance. Let’s assume that we give the absence objec¬

°

C/5

which is then divided by 7 to obtain an interval of 0.5.

8 PRODUCTIVITY Sm CRITERIA

columns of the form would look. To illustrate

2.5% 98.0%

9

3.0% 97.4%

8

3.5% 96.8%

7

4.0% 96.1%

6 5 4

4.5% 96.5%

3

6.0% 93.7%

2

6.5% 93.1%

1

7.0% 92.5%

0

7.5% 91.9%

5.0% 94.9% 5.5% 94.3%

SCORES WEIGHT

3

3

16

20

VALUE

48

60

tive 16 points and the invoice quality objective 20 points. Enter these in the weighting blocks as shown in Figure 4.2.

Step 6: Calculate the Index The final step is to calculate an index number for the month. The index number is obtained by following these steps. 1. Determine the actual results. 2. Circle the actual results on the chart. 3. Enter the performance level in the score block on the chart. 4. Multiply the score by the weight to de¬ velop the value for each criterion. 5. Add the values to obtain the index number.

Figure 4.2: Productivity Form Example

44 OFFICE MANAGEMENT MADE SIMPLE

Since we arbitrarily enter the present re¬ sults at the 3 level when we start the produc¬ tivity chart, the score will be 3 times the weighting factor. The starting value for the

Case: Using the Productivity Model in an Appliance Company Office

absence objective is 3 x 16, or 48. The start¬ ing value for the invoice quality objective is

Rita Alvarez manages the office for a large

3 x 20, or 60. The total score is 48 + 60, or

appliance service company. Her staff answers

108. The actual index number is meaningless

service calls from customers, maintains records

by itself. We know, however, that if the index

of customer accounts, renders bills from work

number is increasing, the results are getting

orders prepared by the repair forces, handles

better; if it is decreasing, they are getting

office correspondence, and answers all cus¬

worse.

tomer complaints. An automatic call distribu¬ tor routes calls from customers to answering

To get your staff involved in the process,

positions, and gives her statistical information

post the productivity chart where everyone

to evaluate the work load and call-handling

can see it. Not everyone will have an interest

results. Customer records are maintained on a

in all items on the chart, but they will soon accept the index number as an indicator of

file server, which is a specialized computer that

what everyone wants to know: How are we

she and all her staff can access from their per¬

doing? You may want to use the chart in

sonal computers. To identify key objectives, Rita held a series

Figure 4.3 to plot the monthly results of each

of meetings with her staff, her boss, and other

of the criteria you are tracking.

managers in the office. They identified six ob¬ jectives to work on.

At the end of the year it is time to review

Incoming Calls to Switchboard. Callers

the objectives and the results. If you have

sometimes complained that the switchboard

reached the objective of a criterion, you

took too long to answer calls. In checking the

should consider either raising the objective or

attendant console results from her telephone

dropping the item from the chart. If you have

system, Rita found that the average call was

other problems to work on, you can safely

answered in 26 seconds, which is four rings.

drop an item that does not require close

The group identified two primary causes of the

attention.

problem. When users were away from their desks, the calls returned to the attendant to

Some people feel that it is manipulative to

answer. Twenty-five percent of the calls han¬

raise the objective when it has been reached,

dled on the switchboard were calls that the

but don’t be misled by this line of thinking.

attendant transferred, but the call returned

A high jumper would never better previous

when the user did not answer. The attendant

records without raising the bar a notch after

wrote message slips and on their return, users

each successful jump, and it is the same in the

called the attendant to read out messages.

office. If you aren’t improving, you are prob¬

These activities took time away from the

ably getting worse. Most people want to be

attendant’s primary job of transferring calls.

part of a successful team, and they enjoy the

To deload the attendant, Rita established

challenge of knowing they are part of a team

departmental answering positions to handle

that is getting better.

calls that were not answered by the user. She

Chapter 4: Managing Office Productivity 45

10 9 8 7 6 5 4 3 2 1 0 V

F M

A M

J

A

S 0

N

D

10 9 8 7 6 5 4 3 2 1 0 J

F M

A M

J

J

A

S 0

N

D

D

10 9 8 7 6 5 4 3 2 1 0 J

F M

A M

i

V

A

S

0

N

D

D

10 9 8 7 6 5 4 3 2 1 0 J

F M

A M

Vi

V

A

S

0

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10 9 8 7 6 5 4 3 2 1 0 V

10 9 8 7 6 5 4 3 2 1 0 J

F

M

F M

A

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A M

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S 0

S 0

N

N

Figure 4.3: Chart for Plotting Productivity Results

46 OFFICE MANAGEMENT MADE SIMPLE

also set an objective of answering calls within

know information about warranty status and

12 seconds, which is the second ring. This

purchase date, and they needed names of sales

objective was assigned a 10-point weighting.

representatives and alternative telephone num¬

Work Order Accuracy. Rick Hudson, su¬

bers. The information was contained in the file

pervisor of the repair forces, stated that clerks

server, but to reduce complexity of the form, it

answering trouble calls were not getting

wasn’t printed on the work order. Technicians

enough information for him to estimate his

called a different number than customers use,

work load accurately. His dispatchers used the

but they often waited on hold while the order

repair tickets to estimate the time it took to

clerks processed customer requests. There were

complete the repair. He showed Rita that 34

an average of only 12 such calls per day, but the

percent of the repair tickets had additional

technicians calling waited for an average of five

work that Rita’s clerks did not obtain informa¬

minutes, which, as Rick pointed out, wasted an

tion about from the customer. Rita designed a new customer contact form

hour per day. Rita obtained approval to try a voice re¬

to assist the clerks and planned additional train¬

sponse unit (VRU) so the technicians could use

ing. Rita and Rick agreed that reducing the

a push-button telephone to access information

number of write-in corrections from 34 per¬

directly from die computer. The VRU did not

cent to 22 percent was a reasonable intermedi¬

answer all requests, but Rita believed it would

ate objective. This criterion was weighted at 15

handle three fourths of them, which would

points.

repay the cost of the unit. Her objective was to

Order Processing Time. From her auto¬

reduce the total waiting time to 15 minutes per

matic call distributor statistics, Rita found that

day, which Rick agreed was acceptable. This

the average repair order took 3.2 minutes to

factor was weighted at 15 points.

Incidental Absence. Rita’s group, includ¬

complete. Since one of her clerks planned to take maternity leave in six months, Rita wanted

ing herself, consisted of 15 people, with an

to avoid replacing her if possible. If she could

average payroll of 2,600 hours per month. She

bring the average processing time down to 2.5

was concerned because during an average

minutes per order, she could absorb the addi¬

month last year, her group had an incidental

tional work load without adding staff. At the

absence rate of 245 hours per month, or 9.4

same time, however, she and Rick agreed to

percent of total work time. In terms of equiva¬

improve accuracy, which tended to increase

lent employees, absence reduced her staff by

order processing time. Rita also had two new

1.4 people.

people who required 50 percent more time

The company defined incidental absence as

than the average worker. Nevertheless, she be¬

unplanned and unexcused absence of two

lieved that with a concentrated training pro¬

hours or more. Incidental absence included

gram and redesigned ticket, an objective of 2.5

absence for illness, child care, transportation

minutes was an achievable goal for order pro¬

problems, accidents, and other such absence

cessing time. This criterion was weighted at 25

that the company cannot plan and control.

points.

Rita realized that it was not reasonable to

Service Technician Waiting Time. Part of

expect that incidental absence would never

Rita’s responsibility was to provide information

occur, but she believed that part of their cur¬

to service technicians who called to inquire

rent absence rate was the result of employees

about a customer’s account. They needed to

not understanding or caring about the burden

Chapter 4: Managing Office Productivity 47 it put on the rest of the group. In a group

PRODUCTIVITY FORM

meeting her people suggested that 6 percent incidental absence to total work time was a reasonable objective. Rita believed that 6 per¬ cent was too high, but she accepted that factor as an immediate goal. This criterion was weighted at 25 points.

£ > o £ id tr O LU

s

f § |

1 |

J

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1 J I GO

f

—

t 3

O

i J

SCORES 10

12

22

2.5

15

6.0

92

9

14

23.7

2.6

21

6.4

90.6

8 7

16

25.4

2.7

28

6.8

89.1

18

27.2

2.8

34

7.3

87.7

6

20

28.9

2.9

40

8.0

86.2

5 4

22

30.6

3.0

47

8.5

84.8

24

32.3

3.1

54

9.0

83.4

3

26

34

3.2

60

9.4

82

2

28

35.7

3.3

66

9.8

80.6

initiated would increase customer satisfaction

1

30

37.4

3.4

72

10.2

79.2

to at least 92 percent — the goal she and her

0

32

39.1

3.5

78

10.6

77.8

group have set for the coming year. She

SCORES WEIGHT VALUE

6

8

3

6

10

1

10

15

25

IS

25

10

60

120

75

90

250

10

Percent Satisfied Customer Contacts. Each month an independent research company selects at random 20 completed service orders, and it calls the customers to find out how satisfied they were with the total job. Rita’s portion of the survey deals with contact han¬ dling. For the past four months, die results have ranged from 79 percent to 86 percent satisfied, with an average of 82 percent. The dissatisfied customers primarily complained about too many rings before the telephone was answered and too long on hold during the contact. Rita felt that the other programs she

weighted this factor at 10 points. Rita completed the productivity form, set¬ ting the present results at the 3 level on all six

O tz DC CL

DC O

XL

| —

columns. The starting index was 300. Figure 4.4 shows the results her group achieved after the plan had been in effect for three months. As Rita expected, incidental absence dropped below 6 percent almost immediately and has remained there. She doesn’t plan to adjust the target until next year, however, because the group needs successes to offset other objectives that haven’t been reached so easily. The most disappointing result has been cus¬ tomer contact satisfaction, which continues to hover below 80 percent. At first, Rita ques¬ tioned the validity of the measurement, but after reviewing the comments the auditors re¬ corded, she has pinpointed part of the difficulty and has plans to correct it. The remaining items are progressing toward the objective.

Figure 4.4: Productivity Measurement in an Appliance Company

48 OFFICE MANAGEMENT MADE SIMPLE

Group and Individual Feedback This process of managing productivity sup¬ ports all of the elements that lead to increased employee satisfaction. People have targets to aim for, and they receive feedback on their progress in reaching them. The process allows people to participate in setting the targets and to help diagnose the cause when progress is slower than expected; it gives everyone a single index number that not only demonstrates progress but also acquaints them with the com¬ ponents that comprise the index. In this example we have assumed that all objectives are group objectives, but there is no reason people cannot be given individual re¬ sults so they can view their personal contribu¬ tions to the group effort. For some objectives, such as the customer satisfaction criterion, in¬ dividual results are impractical because the base is too small and it may be difficult to identify the worker who handled the contact. For other objectives, such as customer contact handling time, the results come directly from automated equipment that produces individual results. Since these figures are printed daily or even hourly, it is easy to give people accurate and instantaneous feedback. One of the best features of this plan is its simplicity. Though it takes some initial thought to organize the plan, it is easy to administer and understand. If you post the form, or better yet, plot the results on a chart, everyone will see the answer to the question “How are we doing?”

Techniques for Increasing Productivity Managing a staff of people for maximum pro¬ ductivity is a lot like moving a length of rope

along the floor: It is easy to pull but almost impossible to push. When you are ahead of your people, clearing the path and anticipating the difficulties they will encounter, productiv¬ ity will improve. This section discusses some techniques you can use, but bear in mind that your group’s productivity will be affected by your actions and attitudes more than by any other factor.

Removing Roadblocks to Good Performance If you subscribe to Theory Y, you assume that workers want to do a good job, take pride in their work, and are frustrated when circum¬ stances they cannot control prevent them from reaching their performance objectives. Al¬ though this isn’t true of every individual, oper¬ ating under Theory Y is a way for you to discover the factors your staff cannot control. We call these factors roadblocks. Your job as office manager is to identify roadblocks and take steps to remove them. A helpful attitude for you to adopt is that your management role is to release the power of your staff to work productively. How do you find the roadblocks? Start by asking your staff. They will probably be more than happy to tell you, because they endure the frustrations every day. Sometimes workers are so accustomed to roadblocks that they assume that management has accepted them. To iden¬ tify these institutionalized roadblocks, observe the job closely or do the work yourself. Find out why people lose time. Is it because they must wait for work to arrive, or do they per¬ form the job inefficiently because of the way it is organized? Ask yourself how long, under ideal condi¬ tions, it would take a well-trained individual to do the task if everything went smoothly. Com-

Chapter 4: Managing Office Productivity 49 pare that to how long it actually takes, and

of after-call work time to wrap up the con¬

determine the changes you should make to reach the ideal.

tact. Sometimes this was too much and other times not enough. Rita configured the sys¬ tem so the representatives could press a but¬ ton on their telephones when they were

Case: Shaving Time from Customer Contacts

ready to receive another call. Each of us is a major source of our own

Rita Alvarez used a roadblock study to help

roadblocks. We don’t create them deliberately;

determine how to shave half a minute from her

we simply don’t foresee what will happen, or don’t know that there is a better way. You will

staff’s customer contacts. She began by learn¬ ing the job thoroughly. She sat with the best and the poorest customer service representa¬

find few activities as an office manager that will pay better returns than identifying and remov¬

tives, and carefully observed the differences in

ing the roadblocks that frustrate your staff.

their contact-handling techniques. After ex¬ plaining to her staff what she was doing, Rita spent a whole day at a service representative’s

Work Assignment Procedures

desk handling contacts herself. At the end of her analysis, Rita made the

Productivity can be improved in many offices

following observations and changes.

by changing work assignment procedures. If

• Everyone was frustrated by slow response

people know how long you expect a task to take, they usually work to meet that goal. You

time from the computer when they pulled up

can assign some types of work in modules of

customer screens. Rita called a technician

one hour. For example, an experienced data

who reviewed the file server statistics. She in¬

entry operator can review incoming work and

stalled additional memory and reconfigured

batch it in one-hour modules. Other types of

the network operating system to improve the

work, such as lengthy typing jobs, cannot be

fixed disk access time. Although Rita did not

batched, but an experienced typist can estimate

completely understand what the technician

how long the work will take.

did, she observed that the changes solved the response time problem.

The amount of work in a batch should not be adjusted to match the workers’ capabilities.

• The fastest service representatives guided die

Instead, estimate the time an average, fully

customer through the contact, while the

qualified worker would require to do the

slower representatives allowed the customer to

work. By maintaining records of actual versus

control the contact. Rita arranged additional

estimated time, you can evaluate the produc¬

training for the slower half of her group.

tivity of each individual. If everyone in the

• The contact form was poorly organized, and

group consistently overruns or underruns the

even the best representatives skipped around

expected work time, the estimating process is

the form to enter information. Rita rede¬

flawed, and the estimates should be adjusted

signed the form to follow the preferred flow

up or down.

of the contact.

Some office jobs lend themselves to auto¬

• The automatic call distributor was config¬

matic work delivery. Service jobs where calls

ured to give representatives one-half minute

can be delivered by an automatic call distribu-

50 OFFICE MANAGEMENT MADE SIMPLE

tor are one example. Collections departments

tire line of products. With this method of orga¬

and telemarketing organizations can be served

nization, the counter staff would know their

by equipment that places calls automatically

product lines thoroughly and could serve cus¬

and connects the call to an agent when the

tomers efficiently except for one thing: Cus¬

called party answers. Systems such as inbound

tomers don’t organize themselves to arrive

and outbound call distribution equipment usu¬

according to which person at the counter is

ally produce productivity information that

least busy. At times the refrigerator line will

managers can use to evaluate both groups and

have several people in it, while the other lines

individuals.

have no one waiting. Management analysts use a technique called

Many office jobs have significant peaks and valleys of work load. These variations may be

queuing theory to describe how people be¬

seasonal. For example, the start of a school

have in queues or service lines. Queuing theory

term causes a huge work load peak in the

makes it possible to calculate how long people

school district office. Peaks may be related to

must wait in line to be served or how long the

time of month, time of day, or just the random¬

line will grow, based on three variables: the rate

ness of incoming work. The telephone console

at which people arrive to be served; the length

operator’s work load is a good example of the

of time it takes to serve each person; and queue

latter.

discipline, which is the way the queue is

Where the nature of the work results in large

organized.

variations, consider some form of work load

As a manager, you will quickly realize that

leveling. An effective leveling tool is to divide

you have limited control over the arrival rate of

work into priorities. Demand work is always

customers. There are a few things you can do

high priority, but you may be able to save some

to affect customer arrivals, such as setting your

low-priority work to fill in the valleys. In a job

working hours and offering specials during

such as a console attendant or a receptionist,

hours that are traditionally light, but usually

you should consider some form of fill-in work,

customers arrive at their convenience, not

like folding letters and stuffing envelopes, that

yours.

can easily be interrupted.

You have more control over the service time variable. By giving your people the right tools, sufficient training, an attitude that customer

Work Group Size

service comes first, and an efficiently designed work flow, you can reduce the service time per

One factor you must consider in designing

transaction to a minimum.

work for maximum effectiveness is the higher

The third variable, and one that many man¬

efficiency of large work teams in any situation

agers overlook, is the queue discipline. In our

where work arrives from random sources. This

parts counter example, it is obvious that by

situation exists in most centers that receive calls

cross-training the counter agents to handle

or visits from the general public.

parts requests for other appliances, we can re¬

Consider, for example, a parts counter for an

duce the probability that customers will have to

appliance company such as Rita’s. The counter

wait in one line while service staff for other

could be specialized with one person for refrig¬

products have nothing to do. As a general rule,

erators, one for washing machines, one for

the more people that can handle a service re¬

ranges, and so on through the company’s en¬

quest, the less likely it is that customers will

Chapter 4: Managing Office Productivity 51

have to wait. Often, you can improve customer service by cross-training people and increasing

Summary

the number of people who can respond to

Your attitude toward productivity improve¬

service requests.

ment is an important measure of your ability as

Another waiting line issue to be resolved is

an office manager. Weaker managers assume

how many queues or waiting lines to have.

the role of caretaker, which means accepting

For example, some banks have a waiting line

the status quo and not introducing improve¬

for each teller. If a teller becomes bogged

ment until the boss or someone else suggests it.

down in a lengthy transaction, such as count¬

The most effective managers are constantly

ing a large bag full of cash, the customers in

looking for ways to improve the job. Whether

that line may have to wait longer than those

you seek ways to do the same amount of work

who chose another line. When any server can

in less time, or make your product or service

handle any transaction, a single queue is more

more attractive to the customers, you will im¬

effective than multiple queues. Banks that use

prove total factor productivity. Constant im¬

the single waiting line principle have one

provement should be a byword for your staff,

teller line that people enter to wait for the

one in which they can take pride because it is

first available teller.

their plan, and you are helping them achieve it.

CHAPTER

FIVE

Building an Effective Work Team

KEY TERMS FOR THIS CHAPTER standards policies behavior

code of conduct management by objectives

rewards performance

Consider how a championship athletic team in

analogy begins to break down. In an athletic

action serves as a model for your office. Each

event the customers pay their money, are enter¬

player is assigned a role and executes it to the

tained for a few hours, and return home with

limits of his or her ability. The coach fits the

nothing but a memory and loyalty to the team.

players to roles based on their preferences and

In business the customers have more alterna¬

talents and the needs of the organization.

tives. They want to be served, not entertained,

You’ll see outstanding individual perfor¬

and they may have little loyalty if the team

mances, but the players put the team goals

seems to be having a bad season.

ahead of their individual objectives. The coach’s role is different from the

In the most effective offices, workers act as a team in which all the players

manager’s role. A manager for a baseball team, for example, handles the team’s property, fi¬ nances, and logistics. The coach’s role is to develop plays that outpace the opposition, to help players develop their abilities, and to orga¬

• understand and are trained for their assigned role; • have responsibilities that mesh clearly with those of the other team members;

nize die team so the plays and players fit to¬

• know the team’s goals;

gether seamlessly.

• know how the team is performing;

As office manager, you have the dual role of

• know how they, as individuals, are contributing.

manager and coach of your work team. The opposition, of course, is the competition. The

We can learn a lot by observing offices

customers are the spectators, although here the

staffed by ineffective work groups. We’ve all

Chapter 5: Building an Effective Work Team 53

seen such offices and perhaps even worked in

cult to manage the office. Any of us can occa¬

one. The employees lack training and don’t

sionally be delayed by unexpected traffic con¬

seem to care about customer satisfaction. Peo¬ ple avoid responsibility with “That’s not my

gestion, a family emergency, a car that won’t start, or a snowstorm that snarls public trans¬

job,” or “I don’t know, you’ll have to talk to

portation. You can expect and tolerate these

Sally when she comes back on Wednesday.”

occasional bouts of tardiness, but you should

Files are always lost, records are often wrong,

not permit chronic offenses to continue.

and the staff wastes time wandering aimlessly

Chronic tardiness usually indicates a problem

about.

with the employee’s attitude. People who in¬

When you are assigned to manage an office,

tend to be on time are rarely late. Frequent

if you inherit a staff that functions like a well-

offenders recite a litany of excuses that have the

oiled machine, congratulations! You can use the principles in this chapter to keep it moving

hollow ring of overuse. Absence is an even more serious problem

smoothly. If your office needs to improve, as

because it affects the rest of the staff for the

most do, practice the principles that effective

duration of the absence. As with tardiness,

managers use to develop a top-notch work

some absences are unavoidable, and it is for this

team. Your reputation will grow, and your staff will find more satisfaction in their work. Every¬

purpose that employee benefit plans have been created. You do not want people to come to

one enjoys being part of a winning team.

work with contagious illnesses because the dis¬ ease could spread. Again, however, people who intend to come to work manage to make it even

Setting Standards

when they don’t feel at the peak of their form.

People function most effectively when they

away when they are no longer paying attention

know what the company expects of them.

to it.

Sometimes, miraculously, the problem goes

Every organization has some standards and

At the extreme, some people are too chron¬

policies, although they may not be formally

ically ill to be employable. After consulting

documented and may rarely be communicated

with medical authorities and higher manage¬

to the staff. In this section we will discuss the

ment, you and the employee may conclude that

kinds of standards that every office should

retirement, reassignment, resignation, or an¬

have. You may be free to set some of these

other option is appropriate. These cases are rare

yourself; others may be a matter of company

and require special attention and understanding.

policy. If you have doubts about what the stan¬

The first essential to controlling absence and

dards are or what you are free to choose, con¬

tardiness is an absence policy. Explain, prefera¬

sult your supervisor. If the company sets clear

bly in writing, the conditions under which ab¬

standards, part of your job is to communicate

sence and tardiness are excusable. For example,

them to your subordinates.

most companies excuse employees following the death of a close family member, but how close? Certainly a parent, child, or spouse qual¬

Attendance and Promptness

ifies, but what about an aunt or uncle? Com¬ pany policy should explain the conditions

If you can’t rely on having your staff in place

under which employees may be excused and

when the work day starts, you will find it diffi¬

how their pay will be treated.

54 OFFICE MANAGEMENT MADE SIMPLE

The next requirement is a good set of re¬ cords. If you do not currently maintain such

• conflicts of interest between company and personal affairs;

records, start them at once. Memories are too

• use of alcohol and controlled substances on

fragile to rely on for something as serious as

the job or reporting to work under their

correcting an attendance problem. With reli¬

influence.

able records, you can begin to pursue several avenues for correcting such problems (we will discuss these solutions in Chapter 6).

If your company lacks a code of conduct, consult with your supervisor about it. Com¬ pany policies or collective bargaining agree¬ ments may cover many of these items. If not,

Quality and Productivity

there may be legal or other reasons that the company prefers not to document such a pol¬

As we discussed in Chapter 2, your team needs

icy, but you still may be able to communicate

both group and individual goals for quality and

to your staff the standards of behavior you

productivity. Remember the fundamental prin¬

expect them to display.

ciples for managing productivity in your office: Pick a method for measuring it and let people know the results. If they participate in setting the objectives, they will be more committed to

Appearance and Personal Hygiene

reaching them. An employee’s appearance is a personal matter that is difficult for employers to control. If the

Standards of Personal Behavior

job is not affected, there is probably little reason for you to be concerned about an

Every office should adopt a code of personal

employee’s personal appearance. In jobs that

behavior for its employees. The code should be customized for the organization and deal

involve customer contact, appearance does be¬

with matters such as:

cult for an employee with slovenly habits to

come a matter for company concern. It is diffi¬ convey an impression of competence and con¬

• personal honesty with respect to company money and property; • standards of behavior toward the property of other employees and customers;

fidence. Likewise, personal habits that become offensive to other employees may adversely af¬ fect morale and, therefore, may become a mat¬ ter for company concern.

• respect for the ethnic origins, religious be¬

If appearance and hygiene are not a prob¬

liefs, and other matters of a personal nature

lem, there is little reason to make an issue of

on the part of coworkers;

them. If they do become a problem, you

• conduct toward customers’ property and in¬

should communicate the standards. If one or

terests, including returning a fair value for

two employees are offending, it is usually best

customers’ money;

to deal with the individuals involved rather

• adherence to company policies such as atten¬

than treat it as a group concern. When the

dance, smoking only in designated areas, and

majority of the group is out of line, deal with

horseplay on the job;

it as a group matter.

Chapter 5: Building an Effective Work Team 55

A MODEL CODE OF CONDUCT

XYZ Company wishes to provide a working environment in which the company, its managers, and its employees work together in an atmosphere of mutual respect and harmony. To that end, we have adopted the following code of conduct that all company employees are expected to observe. Transactions with Customers

Our customers are the source of our livelihood, and their interests shall be placed ahead of personal and company concerns. Employees shall treat customers with respect. No employee shall do anything that would jeopardize customers’ property or dignity, or compromise their inter¬ ests in any way. Equal Employment Opportunity

XYZ Company is an equal opportunity employer and is proud of its record of providing a work place that is free of bias and discrimination. All job assignments, promotions, and other forms of per¬ sonnel action shall be carried out without regard to race, color, creed, religion, or national origin. Respect for Company Property

All employees shall guard the use of company property with the same diligence with which they manage their own property. Property includes office supplies, office equipment, money, vehi¬ cles, and other items that are necessary to carry out the company’s business. No employee shall convert to personal use any item of property without express permission from a higher manage¬ ment level. Employees shall not use company long distance telephone facilities, postage meters, copy machines, or other such facilities for personal use without express permission from a higher level of management. Employees shall guard proprietary information, trade secrets, and other such intellectual property of the company with due diligence. Use of Time

XYZ Company pays salaries that are competitive in the marketplace and expects to receive a fair return from its employees in the use of their time. Working hours, relief periods, and lunch pe¬ riods are established by departmental policy and shall be observed by all employees. Employees are expected to arrive on time and work on scheduled days unless excused by management or prevented from attending by illness or family emergency. Personal Conduct

Besides meeting the company’s standards for basic honesty and integrity, employees also shall adhere to published company policies on personal conduct. The following are specific policies. • Smoking is not permitted on company premises except in designated areas. • The use of alcohol and controlled substances on company premises, or reporting to work while under the influence of chemical substances, is prohibited. • Employees shall not permit their personal affairs to conflict with the interest of the company or its customers. • Employees shall not engage while on the job in any speech or activities that could be considered offensive or demeaning to any employee or ethnic or racial group.

56 OFFICE MANAGEMENT MADE SIMPLE

Courtesy and Conduct with Customers

favors and award privileges equally to everyone. Most people understand and accept this, but consciously or not, they keep score. If one

There are few standards more important than

person gains a lopsided advantage, others may

those for informing employees how to deal

show their resentment in subtle ways.

with customers or the public. The amount of

The most effective way of defusing such con¬

emphasis you give this matter depends on the

cerns is an open-door policy. Let your staff

degree of public contact your staff has. If public

know that you are willing to discuss their legit¬

contact is incidental, the standards probably do

imate concerns and grievances without threat

not extend beyond courtesy on the telephone

of reprisal. You do not have to permit them to

and offering to assist people who have been misdirected to your department.

interrupt you at any time, but the more acces¬

If public contact is an important part of your

sible you are, the less likely it is that unfounded grievances will cause morale to deteriorate.

group’s responsibility, emphasize it clearly and

Morale in a company or work group is a

frequently as an important part of the job. Deal

fragile commodity. When morale sags, the rea¬

not only with telephone courtesy and customer

sons can be intangible, but they usually result

assistance, but cover matters such as

from a feeling that an unfair situation exists, that the workers have little control, and that

• company policy on refunds and exchanges;

management is being unreasonable or simply

• how to deal with customer demands that seem unreasonable;

does not care. These perceptions do not have

• ethics and procedures in dealing with errors

problems — they are fed by uncertainty, se¬

such as overcharges and undercharges; • how to handle work peaks that result in ser¬ vice delays.

to be based on facts to cause employee morale crecy, and rumors. By setting an example of openness, accessibility, and high integrity, you can go a long way toward keeping your staff productive and its morale high.

Setting Standards by Personal Example

Managing by Objectives

Policy manuals, codes of conduct, and rules

In past years, management by objectives

will be ineffective unless you observe them

(MBO) gained favor as a way to inspire a group

rigorously yourself. Your personal example is

to achieve. A few cynics, however, claimed that

the best guide your subordinates have to the

MBO meant “my boss’s objectives,” and asked

behavior you expect of them. If you display

the reasonable question, “Managing by whose objectives?”

honesty and integrity in dealing with colleagues and customers, your staff is more likely to act the same way. You must avoid any appearance of prejudice or favoritism in dealing with your staff. Few

Inviting Team Participation in Goal Setting

things damage a manager’s credibility more quickly than subordinates’ perception of unfair

All cynicism aside, MBO is an effective way to

treatment. It is not always possible to bestow

develop a work team. To carry our analogy of

Chapter 5: Building an Effective Work Team 57 the athletic team a bit further, can you imagine

reluctant to accept. The team may see the ob¬

a team that disagrees on the goals? What if the

jectives in a different light than you do. They

forward line in a football team refuses to accept

may question whether the techniques you are

the objectives of the backfield? If one faction

using will reach the objective. They may even

were to insist that the objective is to average 45

set the objective higher than you believe is

yards on punts, and another to maintain that

achievable. Inviting participation involves risk,

converting at least 50 percent of the third down

but remember that progress in the world re¬

situations into first downs is the objective, die

sults from people who accept risk as part of the

results would be disastrous: The opposition

normal course of business.

would trample them. Yet a similar situation exists

The productivity form is an excellent vehicle

in many organizations today. Some people do

for organizing an MBO program. Begin by

not understand the objectives, some do not ac¬

forming a few ideas of your own on what

cept them, and others are working on their own

subjects are important enough to track. Set

objectives without understanding how or

aside time when your group can meet, either as

whether they support the company’s objectives.

a whole or as smaller groups if demands of the

In Chapter 4 we introduced a productivity

job won’t permit releasing them all at once. As

model that lends itself to the MBO process. In Chapter 2 we advanced the idea that objectives

with every meeting, prepare an agenda. In the first meeting, introduce the MBO concept and

must share certain characteristics.

demonstrate the use of the productivity form. Give people an opportunity to ask questions

• They

must

be

measurable, preferably

and become accustomed to the idea of partici¬

through data from an independent source.

pating in setting their objectives. Your degree

• They must be realistic so that anyone who

of enthusiasm for the process will probably be

has a part in reaching them would agree that

infectious. If you express confidence that it can

the objective is attainable.

and will help the group solve its problems and

• They must be tangible because objectives that you cannot touch, smell, see, or feel tend to be merely ideals.

accomplish more than they have in the past, your staff should respond to your lead. In subsequent meetings you can extend the

• They must be stretching. Objectives that do

criteria list, develop the objectives, and set up

not force you to extend your reach will not

the measurement process. Post the results

help you grow.

where your staff can see them, and hold prog¬

• They must be acceptable to the team. Objec¬

ress meetings to develop plans of action for

tives that the team does not support become

results that are lagging. Most managers who

“my boss’s objectives” and may receive little

have tried MBO and who practice techniques

more than lip service from the staff.

that will permit it to succeed have found that it improves the results more than they had be¬

MBO will test your managerial abilities. If you

lieved possible.

want to build a work team, your staff needs a role in setting the objectives. If you set them yourself and present them to your subordinates, you will

Rewarding Performance

build a work group but probably not a team. To invite the team to participate involves

There are two management principles that are

risk, and it is a risk that many managers are

difficult to dispute. One suggests that you get

58 OFFICE MANAGEMENT MADE SIMPLE

what you measure, and the other, that you get

performance must be rewarded because with¬

what you reward. The productivity form helps

out it, the individual is ineffective. Following

people respond to measurements by focusing

the principle of random rewards, it is acceptable

their attention on what is important. In this

to reward die team or the individual without

section we will discuss principles of rewarding

rewarding the other, or to reward them both.

performance. We began responding to rewards when we

Vary the Reward Program Occasion¬ ally. Recognizing the employee of the month,

were children, and most of us still do. A reward

say with a parking space by the door, may be an

is a form of recognition, and recognition is a

effective reward when it is introduced. After a

powerful motivator.

few years the practice may be outworn and lose its value as a motivator.

How to Reward A reward needn’t be tangible to be effective,

Case: A Study in Rewards

but if it is tangible, the reward’s value often far outweighs its monetary cost. For example, en¬

In Chapter 1, we met Cathy Barnes, who was

graving a name on a plaque may cost only a

troubled by a backlog in her data entry unit.

dollar or two, but its symbolic significance is

After reorganizing to make the work more

greater than a more costly, but more ephemeral

visible and its contents more easily evaluated,

reward, such as a lunch, that is soon forgotten.

Cathy instituted an MBO program. Two ob¬

In rewarding employees, look for ways that

jectives the group adopted were to count

have lasting visibility — the effect endures.

equivalent applications processed per hour and

Observe the following principles when select¬

to improve the percent estimated-to-actual

ing rewards.

work time in keying applications. The esti¬

Reward Unexpectedly.

Predictable re¬

mated-to-actual objective was 1.0 and reflected

wards may lose their effect. If employees know

both Cathy’s accuracy in estimating die work

they will go to a lunch every time the index

content and the team’s productivity in com¬

improves 10 points, the reward has an undeni¬

pleting the work. A factor of 1.0 meant that

able motivating effect. It is more effective,

Cathy estimated accurately, and her team deliv¬

however, to celebrate an unexpected jump in

ered according to her expectations.

the index by announcing a spontaneous invita¬ tion to lunch.

To achieve continual growth, the team es¬ tablished the principle of counting equivalent

Reward Only Favorable Performance.

applications per hour. Not every application

If you hand out a reward as a consolation when

was equal in the amount of time it took to

the group tries but fails, it may make everyone

complete. Initial applications, which involved

feel temporarily satisfied, but the team knows

entering the entire name and address and qual¬

they didn’t earn it. The most effective rewards

ification information, took 2.5 times as long as

are given for performance that you want to

subsequent applications, and 4 times as long as

encourage the team to repeat.

applications with minor corrections. There¬

Use Both Group and Individual Rewards Selectively. Individual performance must be

fore, Cathy developed the following weighting

rewarded because it pulls the team along; team

scale to identify the factor of equivalent applications.

Chapter 5: Building an Effective Work Team 59 Initial Applications

4.0

Subsequent Applications

2.5

Corrected Applications

1.0

• extent to which personal telephone calls are permitted • use of company facilities such as the copy ma¬ chine and facsimile for personal business

The group agreed that by the end of the year

• process for applying for transfer or promotion

they could achieve an 8.0 percent increase in the number of applications completed per hour.

Every written policy and procedure takes away

Cathy did not discuss rewards with the

some of the individual’s freedom to act. Often,

group, but she continued the practice of recog¬

this is exactly what you intend and the policy

nizing the top operator each month by engrav¬

manual is an effective tool. When you want

ing his or her name on a plaque that hung on

people to exercise initiative and judgment, a

the unit wall. When one operator was named

restrictive policy manual may inhibit their performance.

top operator four months in a row, Cathy had

Use care not to overdo the policy manual.

a special trophy engraved and presented to the operator to take home and keep. By the end of four months, the team had reached 50 percent of the year’s improvement

Summary

objective. Cathy received permission from her

An office is a collection of individuals who all

supervisor to take the group to lunch at depart¬

have ideals, problems, aspirations, hopes, and

ment expense.

abilities. They do not automatically come to work prepared to function effectively as a team — it is your job to create an environment where

The Office Policy Manual

the team spirit thrives. If you can build them into a successful team, they will get more en¬

We have stated frequently in this book that

joyment from their work, and you and the

employee performance is improved if your

company will profit accordingly. Just as an ath¬

subordinates know what is expected of them.

letic coach can weld a group of average individ¬

They also need to know what they can expect

uals into a championship team, you can do the

of the company. The office policy manual, if

same with your staff.

used sparingly, can be an effective communica¬

Management analysts speak of synergy,

tion tool. Employees need to know what to

which is the process by which the whole be¬

expect when they are absent, have a family

comes greater than the sum of its parts. Syn¬

emergency, or just want to take a few days off.

ergy happens in well-run organizations when

They need to know what kind of benefits the

individuals feed one another with the

company provides and what the eligibility re¬

challenges and the support that they need to

quirements are. The following is a list of items

become more effective than they can be by

that you may want to include in your manual.

themselves. The task of creating this synergis¬ tic effect is one of your greatest challenges

• how and when overtime is authorized

and becomes one of your greatest satisfac¬

• what kinds of absences are authorized and paid

tions as a manager.

CHAPTER

SIX

Evaluating Performance

KEY TERMS FOR THIS CHAPTER performance evaluation

expectations

All employees need to have their performance evaluated, but few managers feel comfortable in the combined role of judge and jury. Most

halo effect

Why Performance Evaluation?

of us want to know how we are doing, but we’re reluctant to hear the truth if we think the

Before you begin a performance evaluation

evaluation will be less than favorable. Whether

program, be clear about why you are doing it.

you are receiving or giving an evaluation, you

Some possible motives include the following.

should recognize that most people share your

To Improve Performance.

Employees

feelings of discomfort. If the performance of

whose performance is not meeting standards

one of your subordinates is less than satisfac¬

are not likely to improve unless they are in¬

tory, you must decide what to do about it.

formed of how they stand. Employees who are

Correcting unsatisfactory performance is far

meeting standards can be inspired to higher

more difficult than detecting it.

levels of performance by an evaluation that

In this chapter we will help you understand your feelings about performance evaluation

focuses on strengthening their abilities.

To Convey Your Expectations.

The eval¬

and what you can do to make the evaluation

uation process requires you to be specific about

exercise as valuable as possible. We will also

your expectations, and it offers an excellent

discuss techniques for taking and documenting

opportunity to convey those expectations.

disciplinary action. These activities are not among the most pleasant tasks a manager has,

To Keep Your Employees Informed of Their Performance. Most employees want to

but your people will not grow and mature on

know how they are doing; all employees, in¬

the job unless they receive honest and fair ap¬

cluding the ones who do not want to know,

praisals of their performance.

should be kept informed.

Chapter 6: Evaluating Performance 61 To Distribute Rewards Equitably. Where

than when they are alone, or they may drop bad

the company or union contracts permit paying

habits and appear to be a better worker than

or promoting based on performance, an evalu¬

they actually are. This problem does not exist

ation system can be an important way of dis¬ tributing the incentives.

in offices where work samples can be evaluated

To Maintain a Performance Record. As

where a significant portion of the jobs cannot

people move to new assignments, the evalua¬

be evaluated at all, you may need to build an

tion system ensures that new managers are

atmosphere where employees face the most

informed of their past performances. A docu¬

demanding judge of all — themselves. We will

mented performance history also provides a

discuss how to do this in a later section.

record of conduct that entitles an employee to rewards or discipline.

for both quantity and accuracy. In other offices

The “I’m Better Than You Are” Problem. In our society, in which people are presumed equal, the evaluation process thrusts one per¬ son into a position where he or she is superior

Why People Find Evaluations Uncomfortable

to the other. This makes us particularly uneasy when we are judging the work of someone who is older or more experienced. Oftentimes per¬ ception is rooted in your attitude, so it can be

There is a great deal of hypocrisy about evalu¬

cured only by adjusting your outlook toward

ations in the business world today. Higher level

the evaluation process: Learn to accept it as a

managers establish evaluation plans and insist that their managers use the plans to evaluate

requirement of the management job. The problem is probably much less of a concern to

their subordinates, but when it comes time to

your staff than it is to you.

deliver evaluations themselves, they suddenly

The “Playing God” Problem. When we

find other matters to occupy their time. Em¬

evaluate others, we realize that what we say has

ployees profess to want feedback on how they

an important effect on their lives. People may

are doing, but they do not want to hear reports

make a misguided career shift based on our

that are less than glowing. Let’s discuss why

evaluation. Our words may cause depression or

evaluations make us uncomfortable and what

unwarranted elation. The best way to deal with

to do about it.

this problem is to be as objective and fair as

The Limited Sample Problem. We often

possible. Involve your staff in setting the cri¬

base our judgments about people on a very

teria and objectives by which they will be eval¬

small sample. Unless you are able to review a

uated (we will discuss later how to do this).

significant portion of a subordinate’s work, you

And remember that your employees are re¬

are judging from limited observations. This is

sponsible for their lives and their reactions to

particularly true in office jobs that require cus¬

your evaluation. This does not, however, ab¬

tomer contact. You can sample a staff’s work

solve you from problems caused by an unfair

only by monitoring — by eavesdropping unob¬

evaluation.

served on a telephone conversation (which may

The “Halo” Problem. Being human, we all

be illegal in some states), or by actually being

find it difficult to be objective in evaluating

present during contact with a customer. If em¬

people we particularly like. We are afraid that

ployees are aware you are observing, they may

our evaluation may not only damage a fragile

become nervous and perform more poorly

ego but may also result in a loss of friendship.

62 OFFICE MANAGEMENT MADE SIMPLE

This inability to be objective about people we

tendency to base evaluations on those events.

admire, known as the halo effect, is one reason

If recent events indicate a true change in the

most companies discourage their employees

employee’s behavior, they are a valid basis for

from becoming socially involved with their staffs.

evaluation. Be careful, however; avoid being

The opposite of the halo effect might be called

swayed by a few incidents that happened in the

the horns and pitchfork effect. It is equally diffi¬ cult to be objective about people whom we dis¬

last month. The best way to handle this prob¬ lem is to keep a record of critical events that

like, no matter how competent they may be.

demonstrate behavior you want to recognize or

The first thing you must do to overcome this problem is to recognize that it exists. List your

modify. Base the evaluation on the total period, not just the last few weeks.

subordinates in order of your personal attrac¬

The “Inflated Appraisal” Problem.

tion to them. The middle 70 percent or 80

common hazard in employee evaluations is in¬

percent will cause you little difficulty in terms

flated appraisal. Sometimes the culture of the

of the halo effect, but pay particular attention

company encourages managers to raise the ap¬

to the top and bottom 10 percent or 15 per¬

praisal level on the theory that all employees are

cent. When evaluating someone in those cate¬

highly satisfactory (or better). Less-than-satis-

gories, write down what you particularly like or dislike about the person, and ask yourself how

factory employees are “damned by faint praise.” Some managers inflate their subordinates’ ap¬

each trait affects the job. If it is job-affecting, it

praisals to avoid the confrontation they expect

is a legitimate topic for evaluation; if it is not, try

would result from telling the truth. Inflated ap¬

to ignore it. In a later section we will discuss

praisals can be controlled by group evaluations,

several other evaluation strategies, such as

which are discussed in a later section.

A

evaluations of groups and ranking people by their attributes, that can help overcome the halo effect.

The “I’m Partly Responsible” Problem. Office managers who are objective recognize

Employee Evaluation Methods

that they bear a responsibility for part of their staff’s performance, whether it is favorable or

As we review different strategies for employee

unfavorable. Employees may act in a particular

evaluations, bear in mind that the perfect, uni¬

way because they think that is what you want.

versal evaluation system has not been devised

You may have failed to provide the necessary

and never will be. Ideally, evaluations would be

tools, assistance, instructions, or training to

based entirely on factual and objective criteria.

enable them to perform at peak effectiveness.

Our human limitations, however, ensure that

All of these feelings are valid and may be a cause

evaluations will always be colored by opinions

of your employees’ poor performance. The

and personal preference. We all attach different

best way to deal with these feelings is to en¬

meanings to words, and despite our best efforts

courage your employees to evaluate your per¬

to be objective, no two people will rate

formance and to share with you ways in which

another’s job performance exactly the same.

you can make them more effective.

The imperfection of our methods should not

The “What Happened Yesterday” Prob¬ lem. The most recent events are fixed most

make us timid about making the attempt. It should lead us to try that much harder to

firmly in our minds, so most of us have a

produce a balanced and objective result.

Chapter 6: Evaluating Performance 63 Many evaluation systems have been devised with varying degrees of success. In this section

sonnel evaluation form. The rating scale may

we will discuss four methods. If your company uses one of these methods, you should be

ing, satisfactory, and needing improvement, or it may have multiple gradations. A checklist has

aware of its strengths and drawbacks. If you

a structure that helps ensure that everyone is

have the freedom to choose any method you

evaluated against the same criteria and that a

like, this section will help you decide which is

record of the evaluation is retained. A checklist

the most effective for your operation.

focuses the interview and effectively conveys

be as narrow as three grades, such as outstand¬

the criteria against which employees will be judged.

Informal Evaluation

The checklist has drawbacks that limit its

An informal evaluation system has little or no

effectiveness in some situations. First is the question of whether the evaluation criteria

structure. The supervisor meets with the sub¬

apply in all parts of the company. For example,

ordinate and discusses parts of the job. An

the ability to communicate well might be

informal evaluation may be appropriate in a

highly important for customer service employ¬

small company that lacks an evaluation plan. It

ees but have no relevance for an accounting

takes a minimum of preparation and may re¬

clerk who works alone and does not contact the

lieve some of the anxiety that the interview

public.

causes both parties. If you and your subordi¬

Second, some criteria may be so subjective

nate have a clear understanding of the job

that they are difficult to evaluate. For example,

requirements, an informal evaluation may be

relationships with the public may be difficult to

adequate.

evaluate because of different ways people react

An informal evaluation system is usually bet¬ ter than none, but it has many drawbacks. First,

to an individual’s style. An employee who seems flippant to you could get along well with

without structure it is easy to develop the cri¬

customers who may appreciate his or her style.

teria on the fly and to apply different standards

A third difficulty is the high degree of rela¬

to different people. Although a low-key evalu¬

tionship among the rating criteria that may

ation is good for relieving anxiety, it may be so

cause you to rate an employee low in several

informal that employees do not even know

criteria because of one problem. For example,

they have been evaluated. Also, no record of

an undesirable personal work habit may cause

the evaluation is likely to exist without some

an employee to rate low in all criteria.

format for documenting it. It is best to put some structure in the system, even if it is as simple as listing the criteria and your thoughts

Evaluation against Objectives

about the employee’s performance. Conforming to the theories we have discussed about management styles and employee partic¬

Checklist

ipation in matters that affect their performance and careers, this third form of evaluation —

Some evaluation plans ask the supervisor to

evaluation against objectives — may be the

rate the employees against a checklist of attri¬

most effective. The manager and the subordi¬

butes such as those shown on the sample per¬

nate agree on specific improvement targets.

64 OFFICE MANAGEMENT MADE SIMPLE

SAMPLE PERSONNEL EVALUATION FORM

This form can be used to develop a numerical rating scale for personnel evaluations. By add¬ ing the numbers in the left margin of each rating chosen and dividing by the number of rating cri¬ teria, people can be rated from 1 (low) to 5 (high).

Relations with Other Employees

5. One of the top producers in the group □ 4. A higher-than-average producer □ 3. An average producer □ 2. A lower-than-average producer □ 1. One of the lowest producers in the group □ Not applicable or too new to rate □ Work Quality

Evaluates the accuracy and neatness of work 5. Produces the highest quality in the group 4. Produces higher-than-average quality 3. Produces average quality 2. Produces lower-than-average quality 1. Produces the lowest quality in the group Not applicable or too new to rate

□ □ □ □ □ □

Personal Work Habits

Evaluates whether employee is absent, tardy, makes good use of time on the job, etc. 5. Uses time exceptionally well; always on the job □ 4. Use of time is better than average; rarely absent or late □ 3. Average in use of time; dependable and punctual □ 2. Use of time is poorer than average; some¬ times absent or late □ 1. One of the weakest in the group; fre¬ quently absent or late □ Not applicable or too new to rate □

Evaluates how well employee functions as a member of a team, supporting other employ¬ ees for the overall good of the organization 5. A top team member; other employees look to him/her for support □ 4. An effective team member; supportive of others 3. An average team member 2. Has some difficulty working with others; weak in team support 1. One of the weakest team members in the group Not applicable or too new to rate

□□ □ □□

Evaluates the quantity of work produced

Relations with the Public

Evaluates how well employee communi¬ cates with and supports customers and the public in their dealings with the company

□□ □□□□

Production

5. Works exceptionally well with customers 4. Better than average in customer dealings 3. Average in dealing with customers 2. Has some difficulties handling customers 1. Often mishandles customers; causes re¬ sentment Not applicable or too new to rate

Chapter 6: Evaluating Performance 65 These may be developed through the produc¬

In a group session, people with similar jobs

tivity matrix or they may be more personal

can be evaluated by either a rating or ranking

objectives. For example, an employee might

process or both. A rating process uses a scale

have self-development objectives that are not

such as outstanding, satisfactory, or needs im¬

directed toward a job problem, but through

provement. A ranking scale orders a group of

them the employee may hope to gain a better chance for promotion.

employees from top to bottom without regard

This method is less structured than the

ranking of employees is an effective tool for

checklist method. It provides flexibility for cus¬

improving the fairness of the evaluation

tomizing the evaluation to the needs of the job.

process.

to their rating. Sometimes both rating and

The evaluation process becomes an extension

Group evaluation is useful only in larger

of the periodic reviews that the MBO process requires. It focuses the boss and subordinate

companies where managers have enough con¬ tact with one another’s subordinates to have

on specific criteria they have jointly developed,

informed opinions about their performance. In

thus reducing the chances of misunderstanding

smaller companies, or those where work

the evaluation criteria or of overlooking the

groups have little contact with one another,

critical incidents that affect the rating.

this method will not apply.

Group Evaluations

Conducting the Evaluation Interview

Large companies sometimes use a group evalu¬ ation process in which several managers meet to rate their subordinates. This method is par¬

No matter how often you have conducted an

ticularly effective where members of one work

evaluation interview, you will undoubtedly feel

group provide services for another so that all

apprehensive about the next one. These

managers are acquainted with everyone being

twinges of anxiety are natural. There are several

evaluated. For example, employees in an office

techniques you can use to improve the quality

services group often provide typing, filing, and

of your evaluation interviews.

reception services for other groups in the com¬ pany. The group evaluation session gives man¬

Schedule the Interview with Plenty of Advance Notice. Advance notice gives both

agers feedback on how the members of their

you and the employee a chance to prepare.

groups are seen through the eyes of the people

Prepare Adequately for the Interview.

they serve. A group evaluation session also helps calibrate

The end of one evaluation cycle is when you

each manager’s evaluation yardstick. The leveling

particularly well-done work or work that was

that occurs in a group evaluation session helps

poorly done. Make notes on critical incidents as

some managers avoid die halo effect. In a group

they occur during the year. The more specific

session, managers become familiar with how

you make the review and the more valid exam¬

their peers rate their subordinates and can adjust

ples you have to support your points, the more

their own rating scales accordingly.

likely it is that your subordinates will accept it.

begin preparing for the next. Save copies of

66 OFFICE MANAGEMENT MADE SIMPLE

EVALUATION DOS AND DON’TS Do keep the evaluation interview on a positive note. Your job as manager is to build people up,

not tear them down. Do deal with specifics. Show the employee exactly what is wrong with the quality of his or her work. Use phrases such as “26 percent of your typing jobs have been returned for rework be¬ cause they contained typographical errors.” Do attempt to balance your evaluations to form a reasonable statistical profile. If all of your em¬ ployees are rated as outstanding, you are probably being overly lenient in setting standards. If your evaluations tend to be below average, perhaps your expectations are too high or your staff is not adequately led. Don’t save for the evaluation session incidents that should be corrected on the spot. If you want performance to improve, it is much better to correct deficiencies immediately while they are still fresh in your mind. Don’t directly discuss salary at the performance evaluation. Although salary and performance may be closely related, discussing them both in the same interview is likely to dilute the message you hope to convey. Don’t spring surprises during the evaluation interview. If your subordinate has shortcomings, he or she should be well aware of your concern before the interview. Don’t use evaluations as a weapon or threat. Treat the evaluation interview as an opportunity to cement relationships and improve performance. Don’t compare one employee with another during the evaluation. Such comparisons can cre¬ ate resentment. Employees should be rated against their own capabilities and objectives. It is per¬ fectly acceptable, however, to compare an individual’s work to the group average.

Always Ask How We Can Improve. Any

Be Sure the Employee Understands the Evaluation Criteria. This, too, is another

operation can be improved, and it is in the

matter that should start at the beginning of an

nature of organizations that improvement is a

evaluation cycle. If a structured evaluation is

team effort. Even though an employee’s work

used, give the employee a copy of the criteria

results are directly tied to his or her own per¬

well in advance of the interview.

formance, there is always a way you can assist in

Give the Employee an Opportunity to Participate in the Interview. Ask him or her

improving that performance. Do not let the

for an opinion about performance as compared

sponsibility than is your due, but don’t over¬

to each evaluation criterion. You will find that

look your own role in the level of results your

most employees are more strict with them¬

workers achieve.

selves than you are, usually because they see a

Encourage the Employee to Evaluate Your Performance. Only the most secure

much wider sample of their own work.

employee off the hook by accepting more re¬

Chapter 6: Evaluating Performance 67 managers are willing to expose themselves to

you follow is prescribed by company practice

evaluation from their subordinates. In the most

and is applied evenhandedly.

open atmosphere employees feel free to offer criticisms of their boss’s performance. (See “Evaluation Dos and Don’ts” for a list of hints for conducting evaluation interviews.)

Obtain Guidance from the Experts Discuss the company’s recommended process

Dealing with Problem Employees

with your supervisor, and be certain that you understand the procedures. In most cases, when you set about to improve performance, you will achieve the desired result and much of

Eventually, every office manager must deal

the detail of the company’s formal process will

with an employee who is not meeting perfor¬

be unnecessary. In the minority of the cases,

mance standards. The process for dealing with

however, the employee may continue to fall

unsatisfactory performance is exactly the same

short of standards. The result may be demo¬

as the process we have discussed for solving

tion, dismissal, or other disciplinary action. Be¬

other types of problems.

cause you cannot predict the outcome, it is important to begin each case as if it would

• Determine the current state of affairs.

inevitably result in dismissing the employee.

• Define the problem.

Although it usually will not, follow the correct

• Develop the objectives.

procedure to ensure that you have a case that

• Define the alternatives.

can be taken to arbitration, or even to court, if

• Select a plan.

necessary.

• Manage the plan to completion. Dealing with problem employees is usually

Analyze the Problem

unpleasant, often rewarding, and always an es¬ sential part of your management job.

Begin the problem analysis by determining pre¬ cisely what behavior or result is unsatisfactory. Avoid vague statements such as “the quality of

Objectives of the Process

your work is poor.” Instead, quantify the unsat¬ isfactory result with statements such as “Last

Once you have determined that an employee’s

week five of your jobs were returned by the

performance is not meeting standards, you

originator because they were smudged or con¬

must be clear about the objectives for correct¬

tained typing errors or misspelled words, and

ing the situation. In almost every case, your

the final draft was printed on the wrong kind of

objective is to improve performance. Our soci¬

paper. Over the past three months my records

ety today is highly litigious. Employees who

show that one third of the projects you type are

feel they have been wronged carry their cases

returned because the originator is not satisfied

to courts that are increasingly sympathetic to

with the quality. The average reject rate at this

the employee. To avoid exposing your organi¬

company is less than 10 percent. You have the

zation to a lawsuit, be certain that the process

highest reject rate in the work group.”

68 OFFICE MANAGEMENT MADE SIMPLE

The preceding statement is specific enough

recting the problem. Schedule the next evalua¬

that the employee should have litde difficulty

tion interview and the level of performance or

understanding the nature of the problem. Bring

behavioral change to which you have both

samples of the rejected work product to the

agreed. It’s a good idea to step up the fre¬

interview, and, for contrast, bring copies of com¬

quency of the evaluations to provide more cur¬

pletely satisfactory work the employee has done.

rent feedback.

Be sure the employee understands what the problem is (poor quality) and what the prob¬ lem is not. When you initiate a corrective action program, a natural defensive reaction of many

Document the Results of All Interviews

employees is to focus on something that is peripheral, but easy to correct. For example, in

Document each interview while it is fresh in

the course of the interview you might also

your mind, and record as thoroughly as possi¬

mention a problem of excessively long relief

ble what each of you said. Handwritten notes

periods. The employee focuses on that as the

are best. It is usually inadvisable to use a re¬

problem, when it is only a symptom. If you do

cording machine, because it tends to put both

not both understand the nature of the prob¬

parties on the defensive. Be certain that the

lem, it is unlikely that it will be corrected.

employee understands the consequences of failure to improve. There are three ways to deal with the inter¬ view record.

Probe for the Cause of the Problem

1. Retain it for your files without asking the employee to review it.

If the employee has not previously understood

2. Give it to the employee to review, and

that a problem exists, it may be difficult to

make your own notation that it was re¬

determine the cause. Try to find out whether

viewed.

any action on your part will help. For example,

3. Ask the employee to review your notes

does the employee need additional training,

and sign them, confirming that he or she

guidance, or more frequent feedback, or is the

understands.

problem entirely within his or her control? Is poor performance caused by attitude or lack of

The option you choose depends on company

motivation? If so, it may be difficult for you to

policy and your perception of how forcefully

control the problem until the employee decides

the employee needs to be reminded of the

to change.

agreement. Also, depending on the situation, it may be prudent to review the case with an employee representative, such as a union stew¬ ard. Stress that you are concerned about the

Set Objectives for Improvement

employee’s welfare, but you cannot tolerate substandard performance. Ask for suggestions

The employee must, at this point, agree to a

or assistance in solving the problem. This ac¬

specific level of performance by a reasonable

tion may be appropriate at later stages of the

date. Together you can develop a plan for cor¬

process if other measures fail.

Chapter 6: Evaluating Performance 69

Follow-Up

problem and the consequences of failure to correct it, and that management followed an

Far too many cases of chronically substandard

even, consistent, and nondiscriminatory pat¬

performance can be traced directly to

tern of action that was genuinely designed to

management’s failure to follow up after start¬

correct the situation. Any action that fails to

ing a disciplinary case. Personnel jackets, or

conform to the standards of good personnel

files, are bare of documentation, or the record

practice can result in legal judgments against

shows that a performance improvement pro¬

the company or in having your actions over¬

gram was started but not carried out because of

ruled by higher management or by an arbiter if

a change in supervision or lack of follow-

the case goes to arbitration.

through. If you identify a performance prob¬ lem and develop a corrective action program, and then fail to follow through, the employee

Summary

may eventually decide that you are not serious or that the consequences of failure will not be severe.

Organizations use both formal and informal procedures for evaluating their employees’ per¬

Once you begin a program, you must meet

formance. The process is less than perfect in all

every promised follow-up date. Hold the inter¬

organizations and often results in tension for

views and evaluate the employee’s progress

both the boss and the subordinate. Despite its

until you are satisfied that the problem no

imperfections, an evaluation process is neces¬

longer exists. Discuss each action with your

sary to inspire employees to higher levels of

supervisor or the company’s personnel special¬

performance. It also creates a record that helps

ist. If the problem persists, attach increasingly

management determine which employees de¬

severe consequences to the employee’s failure

serve rewards, such as promotions and special

to correct the situation, and be sure he or she

recognition, which need improvement, and

understands the next step in the program. For

which are average satisfactory employees.

example, in a behavioral problem such as com¬

In all personnel actions, it is imperative that

mitting a dishonest act, the first offense might

records be made and retained according to

result in an official reprimand; the second of¬

company practice. Evaluation forms and re¬

fense might result in suspension without pay;

cords of commendations or disciplinary action

and the third, in dismissal.

will be useful to an employee’s future managers

Be certain that the record of disciplinary

and could be required to demonstrate that

action is clear. Each step must show an impar¬

management has followed consistent, nondis¬

tial observer that the action was appropriate for

criminatory procedures in its treatment of

the offense, that the employee understood the

employees.

CHAPTER

SEVEN

Hiring, Transferring, Promoting, and Demoting Employees

KEY TERMS FOR THIS CHAPTER

hiring placement discrimination job descriptions

screening testing interviewing references

transferring promotion upgrading demotion discharge

Many personnel problems can be avoided by

you probably have considerable influence on

assigning people to jobs that match their skills

the outcome, perhaps more than you realize.

and desires. If you do not have hiring authority

This responsibility is a sobering one because it

in your company, there may be little you can do

affects people’s futures. Although it may not

to influence which people are assigned to your

seem so at the time, it is just as damaging to

work group. In many companies, however,

award jobs to people who lack aptitude for

even if another department does the actual

them as it is to deny jobs to qualified people.

hiring, you are permitted to interview candi¬

As with the evaluation process, there are few

dates and express your opinion about their

absolutes in placing personnel. Aptitude for

suitability.

manual work, such as typing, is not difficult to

After people are hired, it is equally important

test, but few office jobs are entirely manual any

that they continue to be placed in the right job

more. Yesterday’s typist has become today’s

when opportunities for transfer and promotion

word processing operator. The effective word

arise. Your company may have a formal process

processing operator combines the mechanical

for handling reassignments and promotions, or

function of keystroking with other skills, such

it may be left to the individual managers to set

as the ability to compose pages, create graphics,

their own policies. However the hiring and

and manage computer files. Keystroking work

placement process works in your company,

is easy to measure, but the rest of the job is far

Chapter 7: Hiring, Transferring, Promoting, and Demoting Employees 71

less tangible. This chapter discusses principles

tive than federal laws, so knowledge of the law

and techniques you can use to sharpen your

is essential to any employment process.

ability to hire, transfer, promote, and demote employees.

In office jobs it is practically impossible to show that factors such as race, sex, and national origin have any effect on job performance. Such attributes should not even be considered

The Employment Process

in the placement process. Job assignments should be based on the applicant’s personal

The first requirement for an effective hiring

suitability, which is often difficult to measure.

process is to conform to the law. One reason

If you have any doubt about the legality of an

most larger companies have a professional per¬

action you are about to take, consult with

sonnel staff is that employment laws are com¬

someone who knows, such as your company’s attorney or personnel director. Errors can be costly.

plex and change frequently. Unless you are a specialist you will find it difficult to keep up with the requirements of the law. In this book we do not attempt to cover all aspects of em¬ ployment law, but we will discuss the major elements you should be aware of.

Job Descriptions: Necessary or Not?

Avoiding Discrimination

Some organizations use job descriptions to spell out the requirements of the job. If the job

The first objective in any personnel matter is to

requires a skill such as typing or the ability to

avoid the fact, or even the appearance, of dis¬ crimination. Federal laws protect employees

use a particular computer graphics program, the job description should specify it.

and job applicants from discrimination based

Nearly all public agencies require job de¬

on race, sex, age, religious beliefs, and national

scriptions. Large companies may be required to

origin. The law also protects the handicapped

have job descriptions to demonstrate to the

from discrimination, although you are not re¬

government that they do not discriminate in

quired to award a person a job when a handicap

job classifications. Other organizations use

prevents him or her from performing it. If you

them occasionally or not at all.

do not hire a handicapped applicant, however,

Whether the company uses job descriptions

you must be certain that his or her disability

for setting salary ranges or not, a job descrip¬

would have interfered with performance, be¬

tion fills a vital function when hiring new em¬

cause you could be accused of discrimination and be required in a court of law to show that

ployees. With an honest description of the duties of the job, candidates can decide early in

the job requirements are not unreasonably re¬

the hiring process whether or not they are

strictive. The law does not require you to bend

interested in the position.

your job requirements to fit an applicant, but

The content of a job description varies with

the larger the company, the more difficult it is

the organization, but it usually contains the

to show that you are unable to adjust to a

following elements.

handicap when the applicant is otherwise qual¬ ified. State requirements are even more restric¬

Title.

The title often offers a clue to the skill

level the job requires. Civil service jobs, for

72 OFFICE MANAGEMENT MADE SIMPLE

SAMPLE JOB DESCRIPTION: RECEPTIONIST Duties and Responsibilities: The receptionist performs the following functions:

• operates the telephone switchboard and routes callers to the appropriate department; • greets office visitors and directs them promptly and courteously to the appropriate department; advises visitors of when the person they wish to see will be available; • takes messages for absent employees and relays messages to employees; • decides when the call or visitor is important enough to interrupt employees who are in meetings or have telephone in do-not-disturb mode; • types office correspondence. Job Requirements: The person who holds this position must have a pleasing manner, both in person and over the telephone. Fie or she must enjoy assisting customers and have a personal in¬ terest in seeing that they are served. The receptionist is the first person most callers meet when calling or visiting the company, so good grooming and a courteous manner are essential. The in¬ cumbent must have a high degree of initiative to ensure correct routing of calls or visitors who are unsure of whom they need to talk to within the company. The incumbent must know how to op¬ erate the telephone switchboard and be able to operate a word processor. Supervision: The receptionist reports directly to the office manager; however, the position is in direct contact with all office employees and receives instructions and requests directly from all other employees. Scope and Limits of Authority: The receptionist receives little or no direct supervision on the job. The incumbent has the authority to decide how to route calls and visitors, when to interrupt meetings or override telephones that are placed in the do-not-disturb mode, and other such ac¬ tions to ensure that callers are dealt with promptly and courteously. Pay Grade: This position is rated at the top level of the three-step secretarial/clerical pay scale.

example, use titles such as Clerk Typist I, II, III

ability to run certain office machines, and abil¬

to denote the entry level, intermediate level,

ity to handle arithmetic calculations.

and fully qualified level of the position.

Duties and Responsibilities.

Supervision. This section shows to whom the

This section

position reports and where the supervisor is lo¬

comprises the body of the job description and

cated. Closely supervised jobs tend to carry lower

describes the major responsibilities of the posi¬

pay scales than jobs that have little direct supervi¬

tion. Usually, the first word of each item is a

sion. Employees who report to a supervisor in

verb. Job classification analysts use these verbs

another building or another city generally have

as one way of determining how highly the job

more autonomy and are more highly classified.

should be rated. For example, “creates” would

Scope and Limits of Authority.

This sec¬

be rated more highly than “copies” because it

tion shows how much latitude the employee has

requires a higher skill level.

in acting on his or her own authority. Employees

Job Requirements.

This section discusses

who have approval authority are usually more

skills and attributes the employee must have. It

highly classified than those who submit their

might include such factors as typing capability,

work to higher management for approval.

,

Chapter 7: Hiring Transferring, Promoting, and Demoting Employees 73 Pay Grade. Closely related to the title is the pay grade or salary range that the job carries. Job descriptions fill a useful function in many organizations, particularly larger ones that have a personnel department. Job descriptions have three major purposes: 1. To convey job expectations to employees and to delineate the limits of their authority. 2. To guide managers and employment spe¬ cialists to match applicants to job vacancies. 3. To fix how much the position is paid. Despite the value of job descriptions, there are hazards associated with their use. Perhaps the biggest danger is the use of terms that inflate the importance of the job beyond its actual requirements. You must be careful to choose words that reflect what the job requires, or distinctions between that job and jobs of higher classifications will be lost. A second hazard is the use of job descriptions as a shield. Some people use the phrase “it’s not in my job description” to avoid responsibility. Employees should not be led to believe that the job description sets absolute limits to their du¬ ties and responsibilities. Instead, it is a guide to describe the type of work the position entails. In the most effective businesses, anything workers can contribute is considered part of their jobs. A third hazard is the inclusion of unreason¬ able requirements in the job description. For example, if someone in the office must lift a 50-pound box of copy paper once or twice a week, it is not reasonable to include a lifting requirement in the job descriptions of every position that calls for loading paper in the copy machine. Nor would it be reasonable to require high typing speed for someone who occasion¬ ally operates a word processor. Whether to use job descriptions or not is largely a matter of company policy. If your

company does not use them, you may still find value in creating descriptions for jobs under your jurisdiction. The exercise could help you decide how much you expect of the position.

Hiring Office Personnel Most office jobs are unique because the work in every office is unique. As an office manager you face the problem of determining the suit¬ ability of job applicants for the openings in your office. Applicants usually come with some experience that relates to your needs, but they fail to meet all the requirements. An applicant may be skilled in operating one word processor but untrained in the type your office uses. He or she may have had no experience since high school in arithmetic operations, which your job opening requires, but in every other way ap¬ pears to be the ideal employee. Most managers acknowledge that they take risks with people who appear to have the fundamental attributes but lack some of the necessary skills. They also admit that they follow their instincts to a large degree, and that sometimes they are wrong in their judgments. If professional interviewers and people with years of experience in selecting people still make mistakes in hiring, you may wonder how you can be sure of picking the right people. The answer is, you can’t; but a systematic pro¬ cess will yield better results than the alternative of simply hiring die people you find personally appealing.

Screening Prospective Employees Companies that have many applicants will un¬ doubtedly have screening techniques that re¬ duce the number of applicants to a manageable

74 OFFICE MANAGEMENT MADE SIMPLE

EMPLOYMENT APPLICATION FORM

Name_Soc. Sec. No. Address_City_ State_ Zip_Home Phone Position Desired_ Date Available_ Are you presently employed?

Salary Requirements _ OK to contact employer?

Education Name and Location High School_ College_ Business School_ Other__ Employment Dates

Position

Graduated?

Employer

Year

Major Subject

Salary Reason for Leaving

Office Skills (typing, knowlege of photocopy machines, etc.)

References

Do you have any physical handicaps?

If so, please describe

Signature

Date

Chapter 7: Hiring, Transferring, Promoting, and Demoting Employees 75

few. The application process is analogous to the

Testing

process of screening sand from rocks. The coarsest screen eliminates the large rocks, the

If the job requires a skill that the applicant can

next sorts out the gravel, and so on down to the

readily demonstrate, testing is a useful tool.

finest screen, which filters the tiny grains of

For example, typing tests are easy to devise,

sand. Just because applicants are rejected at one

administer, and score. Most other tests, how¬

level of the filter does not mean that they are

ever, should be designed by someone trained in

not valuable; it only means that they do not

testing procedures. Testing specialists use sta¬

meet that particular specification. Conversely,

tistical techniques to confirm the value of the

placing overqualified individuals in a job can

test. Tests are checked for validity and reliabil¬

lead to high turnover in the future. The objec¬

ity. Validity means that the test measures what

tive of the application process is to screen out

it is designed to measure. For example, a test to

obviously unsuitable applicants so you can in¬

select office receptionists is valid if it has been

vest your time in the ones with the best chance

demonstrated to select people who are success¬

of being selected.

ful in the job and reject people who are unsuc¬

If you work in a company that uses screening

cessful. A test is statistically reliable if it

techniques, you will probably interview only

consistently gives the same results. Testing

qualified people and select from among the best

firms validate their tests by reviewing the onthe-job performance of applicants who were

of the applicants. Smaller companies advertise in the newspaper or employ a search firm to obtain applicants. Such applicants will be less thor¬

selected by the test. Tests you devise yourself are likely to be flawed and may cause you to

oughly screened, so you will need to find out

select unqualified applicants or reject qualified

which are deserving of detailed consideration.

people. You should put your faith in only those

The first step in the screening procedure is to have a clear idea of the areas in which the appli¬ cant should be evaluated. These might include

tests that an expert has demonstrated are valid and reliable. Testing agencies provide tests that have been validated for certain jobs. Before you use such

• education;

a test, however, you should be certain that the

• relevant experience; • personal characteristics (such as telephone

jobs against which the tests were validated are

voice);

the same as the jobs for which you are testing. Continuing with the example of testing for an

• flexibility in working hours and conditions;

office receptionist, if the job includes require¬

• salary range expected;

ments, such as typing and filing, that were not

• work history.

included in the standard test, the test might produce misleading results.

Many of these factors can be determined

A test is best used to measure manual skills.

from an application form. The application must

Many tests have been devised to measure mental

not include any questions that could be con¬

skills, such as work organization, decision mak¬

strued as prejudicial to a particular group of

ing, and creativity; however, such tests are useful

applicants. The law regarding what constitutes

only when they are administered by someone

discrimination changes frequently, so either use

who has been trained in their interpretation.

a form prepared by an expert or get expert

Testing should not be considered a replacement

assistance in creating your own.

for judgment in hiring new employees.

76 OFFICE MANAGEMENT MADE SIMPLE

Interviewing

• What do you find most appealing about this job as you understand it? What do you think

The next step in the screening process is nor¬ mally an interview. In larger companies, per¬

you would like the least about it? • Tell me about each of your previous jobs.

sonnel professionals will conduct the interview;

What did you like about them? What did you

in smaller companies you or your supervisor

dislike? Why did you leave?

may do the interviewing. Smaller companies

• Look ahead five or six years. What do you see

should interview an applicant at least twice.

yourself doing? Are you satisfied with your

The first interview screens out a candidate who

job? Why or why not?

obviously does not fit. The second interview is

• Tell me about a typical weekend. How do

only for a qualified candidate, with the objec¬

you spend your time? What are your objec¬

tive of choosing the best qualified from the

tives in spending time outside working

pool of applicants.

hours?

The purpose of interviewing is to find out information that the application form does not

There are no right or wrong answers to such

cover. The application asks for information that is a matter of record, such as education, work

questions, but they show you a lot about the

history and training. Use the interview to learn

answers tell you about what motivates the ap¬

about the applicant’s motivation, integrity, and

plicant. People who speak about motivating

other characteristics that are important for suc¬ cess on the job.

factors, such as achievement, creativity, and self-development, probably will exhibit these

Most applicants will be nervous when the in¬

characteristics on the job. People who focus on

terview begins. You should expect that, and take

money, working conditions, and security are

steps to put them at ease. An informal setting

valuable in many positions, but probably will

where you can face each other without a desk or

not be outstanding performers.

applicant’s character. Concentrate on what the

table between you is less intimidating than most office arrangements. Before the interview begins, think about what you want to ask. Ask about

Checking References

previous work experience as a way of delving into the applicant’s motivations. If the person has not

The application form should provide space for

been employed before, your questions could

applicants to provide references, including

center around school or home activities. For

previous employers. Don’t expect persona! ref¬

example, the following questions cannot be an¬

erences to provide much useful information. In

swered with a simple yes or no, and should draw

the first place, most applicants do not include

applicants into talking about their motivations.

names of people who would give an unfavorable reference, and in the second place, a personal

• Tell me about a time when you did your best and felt particularly satisfied with your performance.

reference may not provide useful information that relates directly to job performance. Past employment history can provide much

• Tell me about a time when you did not do as

worthwhile information. Look for gaps in em¬

well as expected. What caused your

ployment, and question the applicant about

performance to suffer? What did you do

these during the interview. The explanation of

about it later?

a gap of a few months may put the applicant in

Chapter 7: Hiring, Transferring, Promoting, and Demoting Employees 77 a favorable light if, for example, it represents absences for child rearing or returning to

the terms of employment discussed in the in¬ terview, including the job title, hours of work,

school to complete an education. A gap may

and starting date and pay. If there is an initial

cover a period of employment that the appli¬

probationary term, as we will discuss later in

cant does not want to reveal. Be sure you have

this chapter, state so in the letter.

a complete understanding of the applicant’s full work history from the end of school to the present. Call the applicant’s last two or three employ¬

Transferring Employees

ers. To prevent an awkward situation for the applicant, be certain you have his or her per¬

Most companies have policies for transferring

mission before calling the present employer.

employees laterally (without promotion)

Many companies decline to say anything about

within the organization. Transfers may be initi¬

an ex-employee except to confirm employment

ated by the company or the employee. In either

dates and position. You may be able to find out whether the company would reemploy the per¬

case, the company will be well served if all managers observe the Problem Case Rule.

son or not and whether the person was pro¬

The Problem Case Rule: Solve personnel

moted or transferred while employed there.

problems in the present job. Managers do

The company also may be willing to divulge the

not transfer their problem cases to another

applicant’s attendance record, which is an im¬

manager except where the transfer can rea¬

portant indicator of future performance.

sonably be expected to cure the cause of the problem and both managers agree that the

Making the Job Offer

transfer will be beneficial. Sometimes placing an employee in the wrong job causes a personnel problem that did not exist before. If die individual is a satisfac¬

When you have decided which candidate to

tory employee, but is simply miscast, a transfer

hire, you have the pleasant task of informing

may solve the problem. Otherwise, irreparable

the successful person, and the more difficult

harm to the organization can be caused by

one of letting down the unsuccessful candi¬

bouncing an employee from one job to an¬

dates as gently as possible. It is usually advisable

other, leaving it to the next manager to solve a

to say no more than necessary to the unsuccess¬

personnel problem that previous managers

ful applicants. If there is a possibility of their

should have dealt with.

fitting a future job opening, there is nothing

A liberal transfer policy is good for both the

wrong with telling them that their application

company and the employee for several reasons.

will be kept on file. If the company is unlikely ever to consider them again, don’t hold out

• Employees are able to develop additional skills.

false hope simply because it is easier than telling

• Employees understand the details of how

them that they should continue their job search

other departments function and can make

elsewhere. To avoid any misunderstanding, consider

more effective judgments and decisions. • The company develops a more skilled work

making the job offer in writing to the person

force and enhances the pool of people avail¬

you intend to hire. The letter should state all

able for promotion.

78 OFFICE MANAGEMENT MADE SIMPLE

• Turnover may be reduced because employees can control their destinies to a greater degree. • Morale is improved because employees see greater opportunity.

of the screening process is unnecessary, because enough information is already at hand. Satisfactory performance on the present job is the first prerequisite for employees request¬ ing transfers to fill job vacancies. Employees should understand that the company will not

Company-Initiated Transfers

honor transfer requests from anyone whose current job performance is less than satisfac¬

Companies may initiate transfers at their con¬

tory. Such a policy can work only if you have an

venience for a variety of reasons, including the

evaluation plan and if you inform your people

following:

of their level of performance.

• to fill job vacancies; • to solve problems of force surpluses and shortages; • to train personnel in more than one job; • to prevent people from growing stale as a re¬

Promoting and Upgrading Employees

sult of being on one job too long; • to match personal aptitude more closely with job requirements; • to develop more skills in valued employees

Promoting from within is usually a good policy for several reasons. First, a great deal is known about

who are earmarked for future advancement.

the attributes, motivations, and work habits of employees. Second, the possibility of promotion

Companies sometimes transfer people into

can strongly motivate people to develop their skills and make themselves valued employees.

jobs that the employees would not have chosen

Some companies distinguish between pro¬

had they been given the option. Some union

motions and upgrades. An upgrade is recog¬

contracts may permit employees to refuse

nition of a higher skill level within the same job

transfers, in which case the employee must be

classification. For example, a company might

sold on the benefits of the transfer. In any case,

have three grades of clerical employees with the

most companies reimburse the employee for

titles of entry level clerk, clerk, and senior clerk.

the costs of the transfer, such as moving costs if

An employee might earn an upgrade by reach¬

it involves a household move.

ing a particular skill level, by spending a re¬ quired amount of time on the job, or by being assigned tasks of higher complexity. A promotion usually involves a change in job

Employee-Initiated Transfers

responsibilities. For example, the title of com¬ puter operator might be more highly classified

Many companies make a practice of posting job

than clerical titles, such as secretary or clerk-

openings on a bulletin board, giving employees

typist. Most organizations consider a change

an opportunity to apply for the positions before

from any nonmanagement job into a manage¬

they are advertised outside the company.

ment or supervisory job to be a promotion

Choosing from a pool of current employees is

because of the higher level of authority that

similar to the hiring process except that much

comes with directing the work of others.

Chapter 7: Hiring, Transferring, Promoting, and Demoting Employees 79

How to Promote the Right People

• They are effective team players and recognize the value of group performance. • They can communicate clearly, both orally

It is much better to promote people who want promotions than to promote those who would prefer to remain at their present level. Just

and in writing. • They are confident of their abilities and in¬ spire a feeling of confidence in others.

because a worker is happy and productive doesn’t mean that he or she automatically wants more responsibility.

Most of these characteristics are difficult to measure, and can be demonstrated only by actual

Choosing people for promotion to higher-

job performance. Unfortunately, nonmanage¬

level nonmanagement jobs is similar to the

ment office jobs seldom provide an opportunity

hiring and transfer process we discussed ear¬

for employees to demonstrate these attributes,

lier: Past performance is the best predictor of

which makes the selection process difficult.

success in future assignments. You must

Sometimes employees can demonstrate their

know what characteristics the employee

managerial abilities by working on special pro¬

needs to perform adequately on the job, and

jects or holding acting supervisory assignments.

match these to the skills and attributes the

These tasks lack the depth of true management

applicants possess. Employees who are good

jobs, however, so often the best way to screen

performers in their present jobs will likely

management applicants with no experience is to

perform well in more highly rated jobs, un¬

give them the assignment on a trial basis.

less the new job requires an essential skill that the individual lacks. Promoting people into supervisory positions

The Critical First Six Months

is an entirely different matter, because success as an individual performer is no guarantee of

No one is infallible in selecting and promoting

success as a supervisor. As we discussed in

people, but the first few months of perfor¬

Chapter 1, employees often must learn to

mance on the new job should reveal any prob¬

throtde the traits that made them outstanding

lems. The first six months on any job are the

individual performers before they can become

most critical; this is the time when you can

successful supervisors. Most authorities agree that successful super¬

determine whether you made an error in plac¬ ing the employee. Employees should under¬

visors share common attributes.

stand when they are hired, transferred, or promoted into a job that it is provisional. If

• They have the ability to organize work and

they fail to demonstrate the required capabili¬

their staffs to accomplish tasks efficiendy and

ties, they will be terminated or reassigned to

harmoniously. • They make effective decisions and stick to a course of action once they have selected it, but they are flexible enough to change if necessary. • They have a high degree of integrity and in¬

their previous position within the company.

Helping Newly Assigned Employees Adjust

spire confidence in their subordinates and

The first few days on a job are stressful for every

coworkers.

newly hired or newly assigned employee. Re-

80 OFFICE MANAGEMENT MADE SIMPLE

membering your own need for support on a

whether the following fundamentals have been

new job, consider setting up an informal pro¬

covered.

gram to ease the transition for your people. Introduce them to all their coworkers, and

• The employee must know what is expected.

consider assigning someone as the new

• The supervisor must have provided adequate

employee’s mentor for the first few days. Review any important company policies and procedures with new employees. Such policies as hours of work, filling out time sheets, locker assignments, reporting absences, honesty on

job training. • The employee must have received feedback on job performance. • The employee must have been given enough time to do the job right.

the job, and parking space assignments should

• The employee must understand job priorities.

be made clear while the new employee is recep¬

• The obstacles encountered by the employee

tive. Many companies have an orientation

must be within his or her control.

booklet that new employees are required to read and, in some cases, sign.

Despite the most careful screening processes,

New employees are eager to learn what is

there are personal failures on the job. If the

expected of them on the job. Explain the

wrong person has been placed on the job,

company’s employee evaluation process, how it

management should take early steps to correct

works, when evaluations are administered and

the error.

by whom. Give the employee a copy of the evaluation form and explain the criteria you will use to make the evaluation. Older employees might be evaluated only annually or semiannu¬ ally, but new employees benefit from more

Demoting and Discharging Employees

frequent evaluations. Employees on a sixmonth probationary assignment will want to

Sometimes your best efforts to improve perfor¬

know early in the process how you rate their

mance fail, and you must deal with the issue of

performance. You should hold the first evalua¬

an employee demotion or a discharge from

tion no more than one month after hiring an

the company. Always consult with your super¬

employee and at least every two months after

visor and follow his or her suggestions as to the

that during the first six mondis.

company’s procedures for demotion or dis¬ charge. When such action is taken, outside organizations, such as unions, may enter the

How to Keep Office Workers from Failing

picture, and you may be required to demonstr¬ ate that your action was your only reasonable recourse.

When office workers are less than satisfactory

For example, many companies have agree¬

on a new job, it is often as much a case of

ments that permit a union representative to

management failure as personal failure. If the

review personnel actions. If union officials dis¬

worker has the basic qualities you are looking

agree with your actions, you will find yourself

for, a few simple steps will go a long way toward

involved in a grievance procedure that may lead

preventing failures. Before you conclude that a

to arbitration. An arbiter is an impartial person,

new office worker is unsatisfactory, consider

trained in labor law and practice, who reviews

Chapter 7: Hiring, Transferring, Promoting, and Demoting Employees 81 the facts and contentions in the case. If your

for both of you as possible. Honesty is the best

actions are reversed by an arbiter, the employee

policy. Avoid the temptation to mask the action

may be reinstated to his or her previous posi¬

as something other than it is. For example, a

tion. Sometimes the arbiter or the courts may

discharge should not be characterized as a lay¬

also grant back pay and allowances to the em¬

off just to ease the impact on the employee and

ployee. Governmental agencies also may review discharges, particularly if there is any evidence

to make it easier for you to impose. Face the employee in a private setting and make the

of discrimination.

following points.

Although employees have several means of protection against wrongful discharge or de¬

• Briefly summarize the problem.

motion, you must not let the fear of outside

• Briefly summarize the remedies you have

organizations deter you from taking such ac¬

tried. • State the consequences (demotion or dis¬

tion when other efforts to rectify a situation have failed. Both the company and the worker are harmed when that worker is allowed to remain in a job for which he or she is unfit. Be sure the actions you take are reasonable, that

charge). • Tell the employee when it is effective. • Tell the employee what to do with his or her

the employee knows what is happening, and

personal property. • In case of discharge, ask for any critical com¬

that you document carefully what you have said

pany property, information, keys, or identifi¬

and done at each step of the company’s pre¬

cation badges.

scribed process. The decision whether to discharge or de¬ mote depends on several factors.

Summary

• Does the employee have good work habits?

The importance of placing die right people in

• Is the problem primarily one of placement

the right jobs can’t be overemphasized. The

rather than an unsatisfactory personal trait of

most successful companies hire or place people

the employee? • Does the company have lower rated jobs for

based more on their attitudes than on their

which the employee is qualified? • Does the employee have skills that are valu¬ able to the company in other areas?

skills. People can learn skills, but adjusting un¬ satisfactory attitudes is often an impossible task. The best candidates for most office jobs have certain key characteristics such as energy,

• Is the employee willing to accept a lower rated

enthusiasm, a desire to learn, and, above all, a

job as a condition of continued employment?

high degree of personal integrity. These charac¬ teristics aren’t always easy to detect, particu¬

If the answers to the above questions are yes, the employee should probably be retained in a

larly in people who are skilled at telling interviewers what they want to hear.

lower position. If the answer to one or more

No one is infallible when hiring, transferring,

questions is no, and if you can demonstrate to a

and promoting people. The best you can do is

disinterested third party that you have tried other

follow a process to choose the most likely can¬

remedies, discharge may be the best option.

didate from among the pool of available peo¬

When an employee is to be demoted or

ple, then be prepared to correct any errors

discharged, take several steps to make it as easy

before serious damage is done to either the

82 OFFICE MANAGEMENT MADE SIMPLE

employee or the company. The first step in

The most effective companies have a process

selecting employees is a screening process that

for selecting people from within for transfer

compares applicants with the job requirements

and advancement. If employees know they

and selects the applicants who appear to be the

have an opportunity to advance, they usually

best match.

will have higher morale and will be more effec¬

Next, applicants should be interviewed to

tive employees.

find out whether their motivations match the

Despite your best efforts, you will make mis¬

requirements of the job. You don’t necessarily

takes in selecting employees. Everyone should

want to choose only the most highly motivated

understand that job assignments are probation¬

employees. Conversely, if you place employees

ary. If it is clear, after performance evaluation

who are eager for advancement in jobs with

and counseling, that the job and the employee

limited advancement potential, the result prob¬

are not suited for each other, the best course is

ably will be turnover or dissatisfied employees.

to demote or terminate the employee.

CHAPTER

EIGHT

Organizing Office Work

KEY TERMS FOR THIS CHAPTER organizing span of control hierarchical matrix functional work design

flowcharting job sizing work time standards project tasks capital budget

expense budget expense revenue zero-based budget centralization job enrichment

The principles discussed in this chapter deal

The structure of the organization has a large

with two aspects of organization life. The first

impact on its effectiveness. You may have little

is organizing people to accomplish it effec¬

authority to change the organizational struc¬

tively. The second is organizing work so people

ture itself, but as office manager the authority

can accomplish it effectively. The distinction

to organize work is probably within your con¬

between these two may seem subtle, but there

trol, at least in the units you manage. We will

is a definite difference. In the first case we determine how the orga¬

discuss organizational structure in this chapter; not with the view that the office manager can

nization itself is structured: who reports to

change it but to help you understand different

whom, how large organizational units are, how

organizational strategies and the effect they

the lines of authority are structured, and how

have on the way internal business is conducted.

the organization’s work is distributed among

The key point to remember in office organiza¬

its units. In the second case, die structure of the

tion is that the structure should match the

organization is already determined, and the

culture and character of the company and its

question of how the work is done now arises.

product. An organizational strategy that is

The practice of organizing work involves how

highly effective in one company may be a total

work flows from one position to another until

failure in another. If you understand the meth¬

completion, and how office budgets are

ods by which people and their work can be

structured.

organized, you can determine which method

84 OFFICE MANAGEMENT MADE SIMPLE

most closely matches die way business is con¬

over-control, which is equally inhibiting to

ducted in your company.

subordinates. In most offices, managers can effectively supervise 7 to 12 people.

Organizational Principles

One Person, One Boss

Organizational theorists have developed some principles that must be considered when struc¬

The military has a principle called unity of

turing any business group. It is useful to bear

command, which states that each individual

in mind a few standards which, if they are

should have only one boss. Requests flow up

violated, can reduce the effectiveness of the

through the chain of command, and orders

organization.

flow down through channels. The chain of command is sometimes violated in the military, but only if there is a clear reason for doing so.

Span of Control

Many companies observe the same principle, but in others the one-boss principle is impracti¬

The span of control is the number of subordi¬

cal. In many companies, as we will explore in a

nates one person can effectively supervise. The

later section, a secretary may report to an office

quantity varies widely, depending on the type of

services supervisor but serve several internal

work and the degree to which subordinates are

clients. The secretary receives job assignments

self-sufficient. It also depends on the proximity

from the clients, but the office services super¬

of the boss and subordinates. It is much easier to

visor evaluates performance, trains employees,

supervise a group of people who are all in the

covers absences, and assumes other such super¬

same room than subordinates who are in differ¬

visory functions. In every sense of the word,

ent buildings or even different cities. In most

the secretary has multiple bosses. In matrix

offices, subordinates are within easy reach, which

organizations, which are popular in many high-

means that the span of control can be broad.

technology industries, bosses shift, depending

Another factor that affects span of control is the complexity of the work. If you supervise a

on the function the subordinate is performing at the moment.

group of people who are typing or entering

Like most other organizational principles,

simple orders where quality is easy to check,

the one-boss rule is frequently and successfully

your span of control can be broad. If your

violated, but you must be aware of the hazards.

subordinates require close supervision, consid¬

The primary problems are the possibility of

erable assistance, and constant inspection of the

receiving conflicting instructions and a strong

quality of their work, your span of control

likelihood that the priorities of the various

should be narrow.

bosses will clash from time to time.

It is important that the span of control be carefully matched to the situation. A supervisor with too many subordinates is stretched among

Organizational Structures

competing priorities, and people may fail to develop because they do not receive enough

With the possible exception of the top person

attention. If the span is too narrow, however, a

in a company, all workers have a boss to whom

supervisor may not have enough to do and may

they are ultimately accountable. Even the top

Chapter 8: Organizing Office Work 85

Figure 8.1: A Hierarchical Organization

86 OFFICE MANAGEMENT MADE SIMPLE

person may report to a board of directors, the

tion shown in Figure 8.2. Matrix organizations

members of which in turn are accountable to

are typically found in high-technology compa¬

share owners. The structure of the organiza¬

nies where people work together on such pro¬

tion describes these reporting relationships.

jects as developing computer software or designing new products. A company may still have traditional departments, such as sales,

Hierarchical Organizations

marketing, engineering, and manufacturing departments, but as projects arise management

Most companies have some degree of hierar¬

assigns people based on their particular talents.

chical organization. Even companies with

In a matrix organization, people have a su¬

other types of organization have some elements

pervisor to whom they report for such matters

of top-, middle-, and low-level management

as pay, evaluations, and work assignments when

with occupational people reporting to them.

they are not working on projects. In Figure

Figure 8.1 shows an abbreviated chart of the

8.2, for example, the six people in the first row

traditional hierarchical organization structure.

all report to the administrative sales manager.

The hierarchical organization is divided into

When people are assigned to projects, they may

levels of authority. Each person on the chart

be responsible to a project manager who gives

can trace a clear path through lines of authority

them day-to-day assignments and assists the

to the top. There is usually a dividing line, as

administrative manager in evaluating their per¬

Figure 8.1 shows, between managerial and oc¬

formance. In Figure 8.2, all the people in the

cupational positions.

first column report to the manager of Project 1

The main advantage of a hierarchical organiza¬

for work pertaining to that project, which, in

tion is the clear line of authority it presents. There

the case of an architectural firm, might be to

is little doubt about who is responsible for each

design a new building for a customer.

job function within the company. The primary

The matrix organization is excellent for allo¬

drawback of hierarchical organizations is the de¬

cating forces where they are most needed, but

velopment of many management levels. To pre¬

it also has drawbacks. The primary disadvan¬

vent a boss from having an unwieldy span of

tage is its violation of the one-boss principle.

control, multiple levels evolve between the top

The departmental boss may do the formal eval¬

and bottom of large organizations. The function

uation of an employee, but the project boss is

of middle management tends to become one of

in the best position to observe day-to-day

buffering orders from the top and relaying prob¬

work. A person may be assigned to more than

lems upward from the bottom. To avoid exces¬

one project and therefore have multiple bosses

sive layers of management, many companies

which further compounds the problem.

form smaller autonomous business units.

Functional Organizations Matrix Organizations Many companies have several product or ser¬ Hierarchical organizations do a poor job of

vice lines with a separate organization for each.

using the full range of talents their workers

Figure 8.3 shows how such a functional orga¬

have. When companies have a staff of creative

nization might look, with the same functions

people, they often adopt the matrix organiza¬

repeated in each of the business units. Below

Chapter 8: Organizing Office Work 87

Figure 8.2: A Matrix Organization

the top organizational structure, the company

uals also may be deprived of the opportunity to

could be structured as a matrix or hierarchy. In

advance because openings for which they are

some companies units are organized primarily

qualified may occur in another functional area

to do business with each other, but each is a

than the one they are presently working in.

profit center under separate management. A functional organization has the advantage of grouping specialists into the part of the

Geographical Organizations

organization where their talents can best be used. People are focused on narrower goals and

Many national or regional companies organize

can direct their energies toward becoming an

by geography. A regional company might have

expert in a particular field. This may result in a

a president for State A, another for State B, and

disadvantage for some organizations, however,

so on. A national company might have Eastern,

because the talents of an individual may be

Central, and Western divisions, each of which

confined to one function and may not be avail¬

has a separate president and its own profit and

able to the rest of the company. Some individ¬

loss responsibility. Like functional organiza-

88 OFFICE MANAGEMENT MADE SIMPLE

Figure 8.3: A Functional Organization

Chapter 8: Organizing Office Work 89

tions, the geographically organized company

The answers to these questions comprise a

may have a hierarchical or matrix organization within it.

field called work design. A formal work design program may be a job for specialists, but in this

Geographical organizations are effective

section we will explore issues that will help you

when the company is widely dispersed, for in¬

determine whether or not your office is prop¬

stance, nationally or internationally. People are

erly structured. Some of these principles may

often deterred from moving from one part of

help you restructure your office jobs to im¬

the company to another because it would re¬

prove efficiency and staff satisfaction.

quire them to relocate. The geographical form of organization may permit people to spend their careers in one location without the threat

Flowcharting Office Work

of a move to another location to accept an advancement. This may work to the disadvan¬

Office managers should be proficient at

tage of both the company and the individual,

flowcharting work. Figure 8.4 is a form that

however, since people with the most talent for

shows one method of flowcharting. The form

an opening may be overlooked because they are

uses five symbols to designate certain work

in the wrong part of the country.

operations.

O Operation — a work operation that

Principles of Work Design

changes the characteristics of the media (such

Few office jobs are structured by someone who

as orders to be processed) in some way □ Inspection — an examination of the

understands the principles of work design.

media to determine quantity or quality

Most often an office job starts small and picks

^ Transportation — movement of the media to another work location

up added responsibilities as a business grows until the person who occupies the position can no longer cope with the quantity of work. Someone else is then hired and part of the work is carved off to form a new job. Responsibilities

D

Delay — an interruption between one

operation and another

V Storage — holding the media under con¬ trolled conditions

are assigned based on the skills and preferences of the workers. As the business continues to

To use the form, break down the work oper¬

grow, more jobs are spun off while managers attempt to balance their work loads and

ation into its component steps, assign a name to each step, number the steps sequentially, and

budgets.

enter them in order in the Process Steps por¬

Eventually, the time comes when someone

tion of the form. Determine the time in a

needs to take a close look at the office organi¬

convenient interval — usually minutes; and

zation. Are jobs properly sized? Are they struc¬

enter in the Time column of the form. If the

tured to take advantage of the skills that exist

step involves transporting the media (such as

in the local marketplace, or does each case of

mail orders to be processed) to another loca¬

turnover result in a massive retraining job? Are

tion, indicate the distance in feet in the Dist.

people being paid salaries that match their

column of the form. If the step requires a given

skills, or are some people underpaid while oth¬

amount of floor space, indicate the number of

ers receive more than the job is worth?

square feet in the Space portion of the form.

90 OFFICE MANAGEMENT MADE SIMPLE

SUMMARY

NO.

TIME DIST. SPACE

O

OPERATION

□

PRESENT

□

INSPECTION

□

PROPOSED

O

TRANSPORTATION

SUBJECT

D V

DATE PREPARED BY

DELAY STORAGE

STEPS Persons contacted POSSIBLE ACTION

TOTALS

E

WHY? IS IT REALLY NECESSARY?

L 1 M 1

WHAT? WHEN? WHERE? WHO? HOW?

STEP

of

Page

FLOW PROCESS CHART

SYMBOL

DO D O □ O D O □ O D o □ o D o □ o D o □ o D O □ O D O □ O D o □ o D D o □ O □ O D O DO D O DO D O DO D O □ O D O □ O D O □ O D O □ O D o □ o D O

TIME

DIST.

SPACE

PROCESS STEPS

V V V V V V V V V V V V V V V V V V V

Figure 8.4: Flow Process Form

N A T E

CHANGE c 0 M B

1

s

N E

E Q.

P L A C E

P E R

S 0 N

1 M P R

0 V E

Chapter 8: Organizing Office Work 91

When all steps have been identified, draw a

time it took for orders to be filled, Gloria

line connecting the symbols. The most efficient

questioned how the process might be stream¬

work flows usually have a minimum number of

lined. She developed the flowchart in Figure

delays and storages, and the transportation dis¬

8.5 as the first step in evaluating the process.

tance is short. Count how many steps there are

As orders arrive, a machine slits the envelopes.

in each category, and add the totals. Post these

A clerk removes the contents, clips the contents

in the Summary section in the upper left block

together, and separates them into batches of 100.

of the form. The form provides space for indi¬

Separate credit card and cash (check) batches are

cating which operations can be combined, sim¬

created. On cash batches a clerk compares the

plified, changed, or eliminated. It also provides space for indicating other people widi whom

check and order amount. If the amounts do not agree, an error batch is created and set aside for

you discuss the steps. It is effective to make a separate form showing the work flow after im¬

another clerk to handle. The cash batch runs through a machine that

provements have been introduced.

stamps a control number on both the checks

To flowchart a process, you need to put aside

and the order form. The control number is

everything you believe you know about the work

stamped on only the order form of credit card

and its purpose and follow its flow through the

batches. The cash and order forms are sepa¬

organization. Ask difficult questions.

rated at this point, and a control total is run on the order amount and the amount of cash

• Who does the work?

received. Separate clerks do this work to reduce

• Who needs the output?

the chance of error and fraud.

• Why is the work needed at all? In most organizations someone is doing work that was once important but no longer is. If you determine that the work is needed, ask other tough questions.

If the batches balance, another clerk prepares a deposit slip and sends the checks to be depos¬ ited. If the batch does not balance, the clerk clears the discrepancy before the checks are deposited. The completed orders flow to an¬ other department for processing. Many steps in Gloria’s order process were

• Should the work be done in this sequence?

required because company auditors demanded

• Should it be done by someone else?

cross-checks to minimize fraud. When Gloria

• Is there a more efficient way to do it?

charted the steps, it became apparent that work flow was interrupted and jobs were degraded

might identify a work operation for which the

by the amount of checking that was required. After receiving approval from the auditors,

flowchart process might be used.

Gloria made the following changes.

The following case study illustrates how you

• When mail clerks found a discrepancy be¬

Case: Job Enrichment in the Order Department Gloria Sanderson supervises a group of order pro¬

tween the order amount and the amount of the check, they were permitted to call the customer or create and sign a form letter re¬ turning the order.

cessing clerks for a large mail-order house. When

• Clerks who totaled the cash and order forms

customers began to complain about the length of

were also permitted to verify whether the

92 OFFICE MANAGEMENT MADE SIMPLE

SUMMARY

TIME DIST. SPACE

NO.

FLOW PROCESS CHART

O

OPERATION

7

69

Kf PRESENT

□

INSPECTION

4

40

□

O

TRANSPORTATION

1

20

DELAY

1

8

STORAGE

0

D V

109

13

TOTALS

PROPOSED

28

i 2 3 4 5 6 7

pOO () □ ^ Q □ O O Qa o 0)D O 5 □ O

D >=> D O D ^ D O D O D &

V V V V v V V V V V V V V V V V V V V

DIST.

6.S.

1 Redwing »tdei

STEPS Persons contacted POSSIBLE ACTION 10

TIME

ofJ

DATE PREPARED BY

Jm Black, Auditing

WHAT? WHEN? WHERE? WHO? HOW?

SYMBOL

l

SUBJECT

WHY? IS IT REALLY NECESSARY?

STEP

Page

SPACE

PROCESS STEPS

15

Slil uwtUptt

10

Return unienU

8

Clip unienU Isgeike*

7

Sepaiutle eiedti ca*d and cask

3

Fmm hatchet el 100

12

Cewpau check and vide*

0

l{ wim, neale e**M hoick

E L 1 M 1 N A T E

CHANGE C

0 M B 1 N E

1

1

S E Q.

P L A C E

P E

1 M P

R R 0 0 V S

N

E

,

X

II

4

Slump unhd munhm

5

SepimU coik and udm

22

Run unbid Itlah

16

Ptepau depuU tlipt

X X

8

Hold Bul-el-halance hoi the*

20

himaid e*de*t (m puimauq

Figure 8.5: Process Form Example

Chapter 8: Organizing Office Work 93

batches balanced, provided they verified only

erly loaded. Usually, they will appear busy even

batches prepared by someone else.

if they are not.

• Error batches were eliminated, removing one step of the process.

Work Priorities. Another factor to consider in sizing jobs is ordering the priority of work. Work never flows in an even stream: Every job

Gloria’s changes, while not complex, im¬ proved efficiency to the point that she avoided

has work load peaks and valleys. Assign priori¬ ties to different tasks to even the flow of work.

filling a vacancy that occurred a few weeks later.

Using the same principles we discussed for

The clerks reported some improvement in job

organizing your in-basket, try dividing work

satisfaction because of their added authority.

for your staff into A, B, and C priorities.

When Gloria established a policy of making the

Priority A work is needed today or is part of

mailroom job an entry-level position, mail-

a longer project that should have few, if any,

room clerks were placed in the upgrade path

interruptions. Priority B work is needed in the

leading to the higher rated job of order pro¬

next few days, but if it is deferred for a while,

cessing clerk.

the organization won’t suffer. Look at the B basket daily to see if an approaching deadline means the priority should be raised to A. Prior¬

Job Sizing

ity C work includes tasks such as filing that almost anyone can do. Prioritize work in this

Amount

Work. Frequently during your of¬

way to not only improve scheduling for an

fice management career you will face the ques¬

individual, but to help you equalize work for a

tion of job sizing; that is, how large to make a

large group. Be careful that Priority C work

particular job. The task is complicated by the

doesn’t stack up, however, because unfiled

fact that people vary widely in how much work

documents can cause a problem for the rest of

they can do. A job that taxes one person may

the office. If deferring Priority C work doesn’t

leave another with time to spare. As we dis¬

cause problems, consider whether the work can

cussed earlier, most people are motivated by

simply be eliminated.

Of

additional responsibility. Giving the job a little

Work Time Standards. Some office work

more work than the average person can com¬

can be assigned based on work time stan¬

plete in a work shift is often a good strategy

dards; that is, the length of time a fully quali¬

because it helps people stretch and grow.

fied operator would need to complete the

Growth is good for both the worker and the

work. For example, if you have a group of

company. A few years ago the writer C. Northcote

people who are doing a repetitive task such as

Parkinson proposed a principle that most man¬

time for each class of document by timing a

agers agree is valid. Parkinson’s Law: Work expands to fill the

fully qualified group of operators or by count¬ ing the average number of keystrokes in a doc¬

time available for its completion.

ument and comparing them to the keystrokes

Parkinson’s law simply means that people

data entry, you can develop a standard work

per hour you expect.

will pace themselves to stretch out whatever

Standards can also be developed for tasks

work they have been given. This means that

such as filing, handling office mail, running

you cannot simply look to see if people are busy

the copy or facsimile machines, handling cus¬

in order to determine whether they are prop¬

tomer orders, and completing other such jobs

94 OFFICE MANAGEMENT MADE SIMPLE

TIME REQUIRED TO PROCESS BATCHES (IN MINUTES) Standard Mary

Joe

Susan

Sally

Average

Average)

No Changes

22

31

27

33

28

25

Minor Changes

34

40

43

46

41

37

Extensive Changes

52

65

62

59

60

54

Table 8.1: Establishing a Work Time Standard where the duration can be predicted. Standards

suggested that the sales department fax the

are difficult, if not impossible, to develop for

orders to service and data entry simultaneously.

nonroutine or creative work. For example, work such as writing instruction manuals, an¬

That way, the delay of the company mail would

swering telephone inquiries, and generating

initial information before the orders were

sample designs do not lend themselves to time

completed.

standards.

be eliminated, and his people could key in the

Following this change Jack observed the work flow for several weeks and arrived at two key conclusions.

Case: Applying Work Design to an Order Bureau

1. The length of time it took to process an order was highly variable. Some orders

Jack Schaeffer works for a large cable television

had no changes and required a simple

company. One unit under his supervision is a

entry into the computer. Others were al¬

group of five people who process completed

most completely rewritten in the field.

service orders sent in from the field. The sales

2. Customers were grouped by last name

department takes the orders for installing new

into 10 billing periods. Some orders con¬

hookups, but when the technician arrives on

taining changes were not billed until the

the job, there are often changes in the order

following month because they had not

that must then be entered in the company’s

been entered into the computer in time.

computer. Jack’s group does the data entry, and the computer bills the customer for the

Jack changed the work flow as a result of his

monthly service charges and one-time installa¬

observations. First, he assigned one clerk to

tion charges.

separate the orders from the field into four

On a flowchart form Jack first charted the

categories.

steps in completing orders. He found that the initial order forms were stored for several hours before the company mail carried them from the

1. Orders in which the billing period closed within the next two days

sales department to the service department.

2. Orders with no changes

The delay often resulted in customers receiving

3. Order with extensive changes

service a day later than they had requested. He

4. Orders with minor changes

Chapter 8: Organizing Office Work 95

Jack gave top priority to the first group of orders. Each day he assigned an equal number of

zation may simply not fit for one of several reasons.

high-priority orders to everyone and made it clear that they were to be completed before other work. By developing high-priority orders, all changes were billed during die current month. Next, Jack set work time standards for the three remaining piles of orders. He developed the standards by batching the orders into groups of 25 and by keeping track of the time

• There is not enough time for both routine and project work. • The project may require skills and talents of people from outside the group responsible for it. • The project may have to be completed in a short time frame.

it took to process them over the course of a week. He set the production standard just below the top producer’s results by arbitrarily picking 90 percent of the average work time as

When a special project arises, someone may be detached from his or her regular job and assigned to manage the project. Some compa¬

the new standard. Table 8.1 shows the method he used.

work is the usual way of doing business, but in

Jack began assigning work to the clerks by

most companies special projects are rare. If you

batching orders into the amount of work they

are assigned to manage such a project, or to

could complete in one hour at the standard

work on one as a team member, you are fortu¬

rate. Within three months of working under

nate because it is an opportunity to learn new

the new procedures, everyone in the group

skills and to demonstrate your abilities in a

was performing at the standard rate or better.

highly visible atmosphere.

Jack considered raising the standard but in¬

Project work differs from routine work in several important ways.

stead settled on a plan that everyone liked. All clerks were rated according to percentage of

nies are organized in such a way that project

the top producer, consistently produced at 88

• Projects are temporary activities with a defi¬ nite beginning and ending.

percent of standard, which means that it took

• Project work normally cuts across organiza¬

her only 88 percent as long to complete the

tional lines and involves a team of people

work as the average performer needed before

from all parts of the company.

standard they achieved. For example, Mary,

the new standard was set. At the time the

• Project work rarely has established procedures.

standard was set, she was performing at 93

The project team often must develop its own

percent of standard.

procedures to fit the nature of the project. • Project work has a timetable and budget that are set apart from the routine organization.

Organizing for Special Projects

The Process of Executing a Special Project

Organizations are usually designed to accom¬ plish routine work. When a special project

Although project management is, by defini¬

comes along, such as an office move or devel¬

tion, nonroutine work, the project manage¬

oping a new procedure, the traditional organi¬

ment process usually follows a well-defined set

96 OFFICE MANAGEMENT MADE SIMPLE

TASKS REQUIRED FOR AN OFFICE MOVE

Move Office Equipment Assign Floor Space to Employees Determine Departmental Move Sequence Order Workstation Dividers Determine Local Area Network (LAN) Requirements Order LAN Place LAN and Telephone Wiring Install LAN Train Users on LAN Train Users on Telephone

Form Project Team Develop Floor Plans Determine Furniture Requirements Order New Furniture Deliver Furniture Determine Telephone Requirements Acquire New Telephone System Order Telephone Service Install Telephone Service Pack Office Contents Unpack Contents Hire Moving Company

Figure 8.6

of steps. In this section we will briefly explain

tasks must be performed. Often, the project

how to organize and control project work.

manager will not be aware of everything that

Assemble the Project Team.

The first

must be done to complete the project. Team

step in the project management process is to

members develop a list of required tasks from

assemble the team of people who will be in¬

their knowledge of the project and the organi¬

volved. In large projects the team members

zation. For example, Figure 8.6 is an abbrevi¬

may be full time; in smaller ones team members

ated list of tasks required to move an office.

may work part time. Team member are chosen

The team arrays the tasks in the required se¬

to represent the interests of their part of the

quence, taking into consideration which tasks

organization or to contribute special skills they

are dependent on one another. Each task is

may possess.

assigned to a team member, or someone out¬

Develop Objectives and Responsibili¬ ties. Higher management will usually have

side the project team is identified as responsi¬

some of the project objectives already estab¬

shown in Figure 8.7 is developed to show

lished. Projects are normally approved by

dependencies among tasks. In the diagram an

higher management as part of a business ex¬

arrow represents a task to be performed and a

pansion or major reconfiguration. Two key ob¬

circle represents an event, which may or may

jectives, the timetable and the budget, may

not be named.

ble. A network diagram similar to the one

already be set before the team is assembled.

When arrows are in parallel with one an¬

Beyond these, the team should assign specific

other, the tasks can be worked on simulta¬

tasks and responsibilities to each of its

neously. For example, in Figure 8.7 the

members.

telephone and local area network (LAN) tasks

Define and Sequence Tasks.

One of the

can be started independendy of furniture ac¬

team’s major functions is to determine what

quisition. When an arrow follows an event, all

Chapter 8: Organizing Office Work 97

Figure 8.7: Sequence of Tasks for an Office Move the tasks leading up to that event must be

Estimate Time Required for Completion.

developed before the following task can start.

The team members next estimate how long

For example, the furniture requirements must

each task will take in terms of two factors: the

be developed before ordering furniture.

amount of work time and the amount of

Some arrows on the chart do not involve any

elapsed time required from start to finish of the

physical work, but they are included just to

task. Work time estimates are needed to keep

show the sequence in which tasks must be

the project within the budget. Elapsed time

worked. Such tasks are called dummies. For

estimates help keep the project on schedule.

example, there is a dummy, labeled d in Figure

Elapsed time estimates are usually shown on

8.7, leading into the task of placing LAN and

the chart, as they are in parentheses in Figure

telephone wiring. This dummy indicates that

8.7. The estimates can be in work days, as they

the telephone system must be acquired before

are in this example, or in weeks.

the wiring can begin; however, there is no

The series of tasks that requires the longest

activity between the two tasks. A project network such as this can be config¬

time to complete is known as the critical path.

ured in dozens of different ways. There are no

heavy line. The length of the critical path deter¬

right and wrong answers to the task sequence.

mines the total duration of the project; in this

The diagram simply shows how the team de¬

case it is 52 days, which is determined by add¬

cided to structure the project.

ing the figures in parentheses for each of the

In Figure 8.7 the critical path is shown with a

98 OFFICE MANAGEMENT MADE SIMPLE

tasks on the critical path. If it is necessary to

any difficulties they expect in meeting the re¬

shorten the total project time, you must begin

quired due dates. These difficulties are either

by looking at the critical path because shorten¬

resolved by team action or, if the team is unable to

ing the other tasks will not reduce the overall

correct them, referred to higher management.

time required to complete the project. It is also important to monitor tasks on the critical path because any slippage in meeting due dates will

Budgeting Expenditures

extend the completion date. Tasks not on the critical path have more leeway

Office budgets are a tool for communicating

as far as completion dates are concerned. For

financial objectives to everyone. In small offices

example, the total task sequence at the bottom of

the manager is often responsible for assembling

the chart, from choosing the moving company to

and managing the entire budget. In larger of¬

making the actual move, requires only eight days.

fices that have an accounting or finance depart¬

The time that can be allowed for completing

ment, you may be responsible only for a few

noncritical tasks is called slack.

line items relating to the expenses of your own

Develop Reporting Requirements.

The

department. In either case, is essential that you

project manager must have information flow¬ ing in routinely to help him or her monitor

understand budgeting techniques so you can

progress. Early in the project the team should

The budgets in most offices are apt to be based

agree on what kinds of reports are required and

on some generally accepted principles. Every of¬

how often they should be submitted. One form

fice will have its own practices, but they will

of reporting is called exception reports. These

probably be based on one or more of die types

permit the project manager to assume that the

discussed in this section. Remember that person¬

tasks will be completed as scheduled unless the

nel costs are a major expense, and that, regardless

task manger reports to the contrary.

of budgeting techniques, expenditures are likely

Manage to Completion.

The project and

lead or participate in the budgeting process.

to be driven by the number of personnel.

task managers are now equipped to manage the project to completion. The project manager has a collection of controls that can be used to

Capital Budgets

keep the project on track. These include Most offices distinguish between capital bud¬ • a work schedule and task assignments that the team agrees on;

get and expense budget. A capital expenditure is any purchase of furniture or equipment that

• regular project meetings to evaluate progress;

is not consumed in the course of business.

• a process for resolving roadblocks that put

Some minor items such as staplers and pocket

the project in jeopardy; • a reporting structure to keep information flowing to those who need it;

calculators are not consumed, but their cost is so low that they are purchased under expense instead of capital budgets.

• higher management support to release the re¬

When the company files its tax return, it

sources needed to keep the project on schedule;

deducts its expense during the current year.

• a budget that is allocated to task leaders.

Capital equipment is not immediately charged to operating expense. Instead, its cost is depre¬

The project manager holds regular meetings in

ciated over a span of several years. For example,

which task leaders report on progress and discuss

a personal computer that costs $2,000 might

Chapter 8: Organizing Office Work 99 be depreciated at $400 per year for five years.

owners estimate the profit requirements, and

The funds for capital expenditures may come

whatever is left can be budgeted for expenses.

from a different source than the funds for op¬ erating expense. Many companies borrow

Most operating budgets are rewritten several times before being accepted.

money for major capital items, such as vehicles

The budgeting process consists of a series of

and computer systems, but plan to pay operat¬

negotiations, with departmental managers bar¬

ing expenses from revenue, which is the money

gaining for their projects, top management

they collect from selling goods and services.

bargaining with the marketing department for

Capital budgets are usually not direcdy re¬

an increased volume of sales, and operating

lated to factors that drive expense budgets,

departments bargaining to hold down ex¬

such as numbers of personnel and revenue

penses. The budgeting cycle starts with top

growth. Capital budgets are more typically re¬ lated to factors such as

management expressing assumptions on which the departments can base their calculations. The assumptions might include

• growth and expansion plans; • upgrade and modernization plans, such as re¬

• expected amount of salary increase;

placing outdated equipment or adding a LAN; • office relocation;

• expected price-level change (inflation or deflation);

• redecorating programs.

• major programs planned that will change the need for personnel;

The method of justifying capital expendi¬ tures is usually different from the method of

• expected level of business activity for the year;

justifying operating expenses. A certain level of

• expected productivity increase;

operating expense is inevitably required to sup¬

• management policies that will affect the budget.

port a particular level of business activity. Cap¬ ital expenditures are often more discretionary. They can be advanced or deferred with less effect on the operating budget.

Factors that affect the company may not affect your part of the operation as directly. Ideally you and your boss will set objectives that also affect the budget. For example, you

Operating Expenses

might agree on a 10 percent productivity in¬ crease in exchange for permission to purchase

Profit is the driving factor behind all companies

new capital equipment that will make the im¬

except for those organized to be nonprofit. Net

provement possible. The effect of your objec¬

profit is what remains after expenses are de¬

tives should be factored into the budget. After

ducted from revenues.

they are, you will create the budget by one of several different techniques.

Net Profit = Revenue - Expenses Most companies budget both revenue and

Percent of Revenue

expense. The revenue forecast is rarely the of¬ fice manager’s responsibility. Typically, the

Figure 8.8 shows a typical revenue-based bud¬

sales or marketing department estimates the

get. From historical data you can calculate what

amount of revenue the company expects. The

percent of gross revenue is required to support

100 OFFICE MANAGEMENT MADE SIMPLE

OFFICE SERVICES DEPARTMENT

(All figures are thousands of dollars) a. Expected Revenues — Current Year b. Percent Increase Next Year c. Expected Revenues Next Year [a + (axb)] d. Office Services Budget Current Year e. Office Services Budget Percent of Revenue Current Year (d 4 a) f. Office Services Budget Percent of Revenue Next Year g. Office Services Budget Next Year (cx f) h. Personnel 68.9% i. Supplies and Services 31.1% j. Personnel (gx h) k. Average Cost per Employee 1. Office Services Personnel Authorized for Next Year (y 4 k)

$1,000.0 10.1 $1,101.0 $99.0 9.9% 9.8% $107.9 $74.3 $33.6 $74.3 $21.8 3.4

Figure 8.8: Revenue-Based Budget

your office. You can adjust the percentages up

office services manager and higher manage¬

and down to reflect known changes. In the example shown, the company anticipates gross

ment negotiate a budget for the following year, as shown on line g.

revenues of $1 million this year. The office staff

The company’s financial reports or the office

has historically required 9.9 percent of the

services department’s records show how much

company’s gross revenue. For next year your

of the budget goes for personnel (line h) and

boss has requested that you budget for 9.8

how much for supplies and services (line i). By

percent of gross, which establishes the level of

calculating a cost per employee for the coming

your budget. By using last year’s figures and

year (line k), the budget is converted to num¬

making adjustments for next year, the entire

bers of people (line 1).

budget is developed.

The number of personnel required is calcu¬

The process usually starts with the finance

lated from die average cost per employee, the

department’s estimate of the current year’s rev¬

expected increase in salary costs, and the num¬

enues, as shown on line a, and an estimated

ber of dollars budgeted for salaries. Do not be

percent increase (or decrease) for the next year

concerned about a fractional number of em¬

(line b). From this figure an estimate of next

ployees. Force changes during the year, over¬

year’s revenues is developed (line c). The office

time, and the use of part-time employees will

services portion of the budget is entered on line

usually make the number of employees some¬

d, and a percent of revenue for the current year

thing other than a whole number.

is calculated on line e. After calculating the

This process is valid for companies that have

projected percentage of revenue (line f), the

expense levels that are closely related to reve-

Chapter 8: Organizing Office Work 101 nues. Many service companies use this basis for

gotiates with lower management for the re¬

budgeting because much of their expense is

sources needed to maintain that level. Expenses

personnel-related, and the major source of rev¬

such as travel, office supplies, and utilities are

enue is from delivering personal services. This

usually based on historical trends.

budgeting method would be unsatisfactory for an organization such as a research and develop¬ ment department that has costs that are unre¬ lated to revenue.

Personnel-Based Budgeting

The advantage of this budgeting method is

Many organizations that are primarily person¬

that it can quickly be recalculated if the revenue forecast changes. The budget should be built in

nel-related, such as service companies and gov¬ ernment agencies, begin the budgeting process

a spreadsheet using factors that are known or assumed at the time of the first draft. If assump¬

with an assumption about the number of full¬ time equivalent (FTE) personnel required to

tions change, the factors are changed and the

perform a service. The budget usually begins

spreadsheet is recalculated.

from the present organization chart, with addi¬ tions and deletions based on expected changes in emphasis. Expenses for incidentals, such as

Work Load-Based Budgeting

travel and office supplies, are usually based on historical trends, with adjustments made for

If office work can be based on work load indi¬

special programs.

cators, you can make a budget with minimum

Many organizations start with a base budget that assumes that existing programs will be con¬

effort. For example, a telemarketing operation might have a budget resembling the one in Figure 8.9. The level of business activity is measured as the projected number of calls.

tinued. Additional positions and their associated costs are funded if the program can be justified. Personnel-based budgeting gives manage¬

Historical information tells us the amount of

ment some flexibility in determining whether

time per call, which in turn develops the num¬

to fund programs above the base budget.

ber of employees needed.

Often, the decision hinges on whether the rev¬

A budget such as this is driven by work load

enue to support the program is received or not.

indicators. Productivity improvements are fac¬ tored in by changing the number of minutes per contact.

Rethinking Office Organization

Zero-Based Budgeting As we move through the 1990s the structure of zero-based budget is calculated from

the office is changing in many ways. In the past

scratch every year. Management does not as¬

it was necessary to physically pool people in

sume, as they do with other types of budgets,

order to use expensive equipment such as word

that programs will continue at last year’s level.

processors. Now, inexpensive equipment can

Each program is reevaluated annually and is

be pooled logically over office networks. Secre¬

funded only if it is justified. Management de¬

taries can function as part of a common orga¬

termines the level of activity required and ne¬

nization, be equipped with an inexpensive

A

102 OFFICE MANAGEMENT MADE SIMPLE

workstation, and remain colocated with the

such as operating the facsimile machine, creat¬

people they serve. New services and equipment

ing computer graphics, operating a desktop

even make it possible for some classes of employees

publisher, creating and editing spreadsheets,

to work from home yet have most of the conve¬

maintaining the office’s customer data base,

niences of a centralized office. The distribution of

and performing countless other tasks that re¬

work and the effects of having employees away from a central core will have an increasingly im¬

quire specialized equipment, software, and knowledge. As recently as 1980 these services

portant impact on how the office is organized.

were foreign to most offices, and if they existed at all, they were largely manual. In an office with several secretarial employ¬

The Need for Specialized Secretarial Services

ees, it isn’t feasible to train and equip everyone to perform these functions. Software is versatile but it is also expensive, and it may take weeks

A new generation of office managers is emerg¬

or months of practice for an operator to be¬

ing, managers who have keyboard skills and are

come proficient. All of this argues for special¬

more comfortable and far more productive

ized secretaries and services.

with a word processor than with pencil and

Centralization involves uniting the clerical

pad. Traditionally, a secretary’s time was spent

staff under specialized supervision, as opposed

on tasks that were largely mechanical (see Fig¬

to assigning secretaries or other clerical staff to

ure 8.10). This is changing with the introduc¬

individual managers. In offices with a large

tion of smart, fast, and inexpensive office

enough clerical staff to justify specialized su¬

equipment. The secretary now has functions,

pervision, there are several reasons that cen-

OFFICE SERVICES DEPARTMENT a. Expected No. of Calls per Month b. Average Minutes per Call c. No. of Minutes of Work (axb) d. Hours per Day per Employee 8.0 e. Relief Breaks 0.5 f. Training 0.2 g. Administrative Time 1.1 0.4 h. Absence and Vacation i. Productive Minutes per Day per Employee [(cf--e-f-g-h)x 60] j. Productive Minutes per Month per Employee (/' X 21 daV^mo.) k. Employees Required (c f j) 1. Cost per Employee m. Payroll cost (kxl)

Figure 8.9: Work Load-Based Budget

8,900 4.3 38,270

348 7,308 5.2 $22,400 $116,480

Chapter 8: Organizing Office Work 103

Source: James H. Green, Automating Your Office: How to Do It, How to Justify It. (New York: McGraw-Hill, 1984), 21.

Figure 8.10: How Office Clerical Workers Spend Their Time

tralization may be a benefit to the total orga¬

Despite the advantages of centralizing the

nization. For one thing, an office services pro¬

office clerical staff under common supervision,

fessional can provide better secretarial

you must be aware of the potential hazards.

supervision than a group manager whose pri¬

First of all, it is clear that many offices are too

mary concern is not with support services but

small to centralize the secretarial staff. In keep¬

with sales, purchasing or another specialty.

ing with span of control objectives, centraliza¬

Other benefits of centralization are improved

tion is probably not feasible in companies with

work load equalization and improved access to

fewer than 8 to 10 clerical people. Second, this

specialized skills, hardware, or software.

form of organization means that many secretaries

104 OFFICE MANAGEMENT MADE SIMPLE

have at least two bosses: the office supervisor

Defining Limits of Authority

and the supervisor of the client organization. In larger companies there are further risks of centralization. If the secretaries are taken from

Employees need to know the extent of their personal authority. To avoid legal entanglements,

under the supervision of the client organiza¬

certain functions must be reserved for manage¬

tion, they may feel detached and less a part of

ment. For example, personnel matters such as

the group. Pooling and specialization may re¬

firing and discipline should not be delegated.

sult in jobs that are repetitious and boring. To

Many companies have had excellent success,

many people, one attraction of secretarial work

however, in giving nonmanagement employees

is the variety it offers. Confining workers to a

authority for actions that once were reserved for

single job, such as data entry, often results in

supervisors. Here are examples of changes that

physical complaints of eyestrain, back strain, and

have been successful in some companies.

carpal tunnel syndrome, a painful wrist condition that often requires surgery to correct.

• Clerks are given the authority to accept re¬ turns or make adjustments up to a particular dollar level without supervisory approval.

Job Enrichment

• Work teams are encouraged to set produc¬ tion goals and are permitted to interview and

Many office jobs are dull, using only a fraction

approve new team members.

of a person’s abilities, and the situation can be

• Clerical people are permitted to compose let¬

aggravated by attempts at increasing efficiency.

ters of reply to customers and share owners and

Office analysts often use industrial engineering

to sign them without management review.

techniques in an attempt to improve office productivity. They monitor eye and hand

By broadening the limits of authority, com¬

movement, use mechanized and electronic de¬

panies accept a greater risk in exchange for

vices to bring work to the person, and simplify

enriching their employees’ jobs and reducing

the job. While industrial engineering tech¬

management overhead. Does this mean that

niques may improve efficiency, they often re¬

management loses control? Not at all. There

sult in jobs that people dislike. Specialization

are several ways management can extend au¬

too, while it may increase the utilization of

thority, while still retaining control.

expensive equipment and trained people, can

Personnel Selection.

By selecting people

result in absenteeism, high turnover, and em¬

who demonstrate the judgment and maturity

ployee complaints as a result of dull and bor¬

to accept responsibility, companies not only

ing jobs.

gain the benefits of improved productivity, they

With imagination, and perhaps some help from your staff, you may be able to make jobs more satisfying by job enrichment. As we dis¬

also create a career path for developing future managers.

Training.

By giving employees additional

cussed in Chapter 3, additional responsibility is

coaching and training, companies are equip¬

a strong source of motivation for most people.

ping them to advance to more responsible po¬

By combining functions, giving people added

sitions of authority.

authority, or removing a layer of inspection,

Quality Assurance.

By randomly sampling

you can often reduce cost and improve satisfac¬

each person’s output, the supervisor can be as¬

tion at the same time.

sured that people are following company policy.

Chapter 8: Organizing Office Work 105 Clearly Defined Limits.

Management must be clear about where the limits of au¬

authority to her subordinates. A carefully de¬

thority are drawn.

where everyone wins: employee, supervisor, and the company.

You must be careful in any job enrichment program to not enlarge the job to the point that

signed job enrichment program is an example

you have exceeded the bounds of the job’s clas¬ sification or salary level. Review union rules, job classification documents, job descriptions, and

Summary

other such documents to see how the work you

Some people seem to have natural skills when

are assigning is currendy classified. If the work is

it comes to organization. They instinctively

done by another employee of the same job clas¬

know what must be done and how to organize

sification, you should be on firm ground to in¬

a group of people to do it. If you are such a

clude it in the position you are expanding. If the work is normally done by someone of higher

person, the principles in this chapter should help you develop and enhance your skills. If

classification, consult with the proper authorities before you make changes.

work organization does not come naturally to you, do not despair; organization skills can be

If you have the latitude to increase the au¬

learned with study and practice. This chapter

thority your people have, you will likely share

has given you an idea of where to start.

Gloria Sanderson’s experience of enriching

The difference between a well-organized of¬

jobs in the order department. Her people expe¬

fice and one that suffers from lack of organiza¬

rienced greater job satisfaction because they

tion is immediately apparent to anyone who

were given added authority. Everyone wants to

enters it. A lack of organization is reflected in

feel that his or her job is important and that it

untrained workers, lost documents, and tasks

makes a difference to the company whether it

that remain undone. In an office that is organ¬

is done well or not. By using job enrichment to

ized according to tested principles, each person

create a path to more responsible positions,

knows his or her role. Information flows natu¬

Gloria found that her people felt more optimis¬

rally from desk to desk, and papers are rarely

tic about their chances for advancement in the

misplaced or lost. Effective office organization

company. At the same time, she gained more

does not happen accidentally. It results from

time to manage because she delegated more

effective management direction.

PART

TWO

THE TECHNICAL SIDE OF OFFICE MANAGEMENT

CHAPTER

NINE

Office Records Management

KEY TERMS FOR THIS CHAPTER records indexing retrieve bar coding storage

microfilm microfiche micrographic computer output microfilm magnetic storage medium

floppy disks hard disks file server optical disk image

For more than a decade, experts have been

records will enhance office productivity. The

promising the paperless office, but it has not

technology that brought us the ability to create

yet arrived, nor is it likely to soon. On the

enormous quantities of paper has not, unfortu¬

contrary, modern technology has brought us

nately, kept pace by offering economical ways

more paper than ever before, and with it, the

to manage it. Many storage techniques are

problem of how to manage it. In an earlier age, extra copies of a document

available, but most are either expensive, diffi¬ cult to use, or both.

meant more typing and faint carbons, and peo¬

There are six critical decisions that every

ple requested no more copies than they

office manager must make with respect to of¬ fice records:

needed. Now, with high-speed copiers available to everyone and laser printers attached to many greater paper volume than they did in the past.

1. How to index records for easy storage and retrieval.

As a result, records management is more nec¬

2. Which records to keep.

essary today than ever before. Records management has an important ef¬

3. How long to retain them in active files. 4. What filing medium to use.

fect on office productivity. Studies have shown that the typical executive spends 150 hours per

5. When and how to destroy obsolete re¬ cords.

year looking for mislabeled or misplaced files,

6. When and how to archive records that

office networks, offices generate a much

so any system that reduces the number of lost

must be retained in inactive storage.

/10 OFFICE MANAGEMENT MADE SIMPLE

Office Filing Systems

01 - Shareholder Correspondence 01 - General Correspondence

There are three main types of filing or index¬

02 - Product Complaints

ing systems in general use: alphabetic, numeric,

03 - Replacement Stock Certificates

and alphanumeric. Most offices will use one of

02 - Estate Files

these methods, sometimes with minor

03 - Security and Exchange Regulations

variations. The files could be further subdivided by sub¬ ject or date. For example, letters from a share¬

Alphabetic Filing

holder explaining that a stock certificate was destroyed in a fire would be filed under the

An alphabetic filing system is the simplest to

number 103.01.03.

devise and use. Files can be sequenced by cus¬

Other numeric filing systems use a number

tomer name, subject matter, personal name, or geographic area. The very simplicity of the

such as a social security number or a companyprovided customer number as the filing key.

system makes it highly important that the office

This system would logically be used in an orga¬

follow a clear set of rules on filing, or docu¬

nization such as an insurance company, univer¬

ments may easily be lost. For example, you

sity, or other such institution that uses a

must specify whether to exclude titles, such as

numeric system for identifying clients.

Ms., and articles, such as the, from the alpha¬

Numeric filing systems have a logical struc¬

betizing system. You must decide how to treat

ture, but judgment is still required in deciding

business names that are sometimes spelled out

where to file documents. For example, a letter

and sometimes abbreviated. For example, In¬

from a shareholder might cover more than one

ternational Business Machines is commonly

subject, which would make it logical to file the

abbreviated as IBM. The Association of Re¬

letter in several locations. Again, a set of filing

cords Managers and Administrators offers a

rules is necessary to prevent misfiling or to

set of 25 filing rules that are easy and logical

reduce the need to file multiple copies in

to use.

separate files.

Numeric Filing

Alphanumeric Filing

Many companies use a series of numbers to

This method uses a combination of alphabetic

organize files. One common method is a mas¬

and numeric filing keys. The best example of this

ter series of numbers for each department and

kind of filing system is the card file in public

a second set of numbers for subject matter

libraries. The card file is indexed alphabetically by

within the department. Such a filing structure

both author and subject. Books are filed alpha¬

might resemble the following example.

betically by author under numeric headings. Many organizations devise their own alpha¬

100 - Executive Department

numeric filing systems. For example, a service

101 - President’s office

company might have a filing structure that lists

102 - Treasurer

its clients alphabetically but lists the services

103 - Shareholder Relations

numerically.

Chapter 9: Office Records Management 7 7 7 Alpha Company

documents and where to search to retrieve

100 Sales

them. Once you have set up the system, evalu¬

200 Repairs

ate its effectiveness regularly. Determine

300 Service Contracts

whether people are making extra copies and

400 Trouble reports

filing the same document in several files just so

Beta Company 100 Sales 200 Repairs, etc.

it can be located later. Files should be separated by some kind of guide to enable people to quickly determine where the file is located. The guide can be a

Retrieving Documents

heavy divider with space for an index tab. When a file or document is removed, it is good prac¬

It is easy to decide where to file documents.

tice to replace it with a marker that shows who has it and when it was removed. The file

The problem is how to find, or retrieve, a file

marker, which can be a brightly colored heavy

when someone wants it. Some large companies

divider, serves three purposes.

print or type the file name or number direcdy on die document, and ask recipients to refer to the file in any return correspondence. Other organizations feel that this is in bad form and put the file name or number only on the file copy, relying on good filing practice to find it when responses are received.

1. When files are out, file clerks can quickly find out who has them. 2. File clerks can easily scan the file for doc¬ uments that have been out too long. 3. File clerks can more quickly and accurately locate where to refile documents.

One technique that many offices use is the personal chronological file, often referred to as

Office managers often use two ratios to de¬

the chrono file. This file is a copy of the first

termine the effectiveness of the filing system.

page of each document that the author creates,

The accuracy ratio determines how accurately

kept in date sequence, and with the file identi¬

people file and retrieve documents. This ratio

fication written on it. The author usually can

should be 95% or higher. The activity ratio

remember approximately when the document

expresses how often documents are requested

was created and can flip through the chrono file

after they have been filed. If fewer than 10% of

to determine where the master record is filed.

the documents in a file are requested in the

Another technique that most offices use is the correspondence log, which lists all incom¬

course of a year, you should consider archiving them in an inexpensive storage space.

ing and outgoing correspondence. The log

Finding these ratios is not difficult. To deter¬

shows the addressee, author, date, subject, and the file number. If the log is kept on a personal

mine the accuracy ratio, set one week of each quarter as the study week and have file clerks

computer (PC), it may be possible to find doc¬

tally how often they find documents on the first

uments by searching for key words.

try. To find the activity ratio, have file clerks fix

Most offices keep a card, paper, or compu¬

a colored dot on file folders the first time they

terized file index. The index shows what sub¬

are removed from the file each year. Change

ject or geographical area a file is located under.

the color of the dot annually. At year end, tally

The index together with a correspondence log

the number of folders that have been removed,

should help you decide where to file most

and calculate the ratio by dividing the number

7 72 OFFICE MANAGEMENT MADE SIMPLE

of folders that have been removed by the total

on the way to and from files. If everyone in the

number of folders in the file.

office cooperates in stroking the document or folder each time it is moved, the system can save significant amounts of time, particularly in

Color Coding and Bar Coding of Files

locating lost documents.

As we mentioned earlier, misfiled documents waste time and cost the average company hun¬ dreds or thousands of dollars every year. Two techniques that aid in filing and retrieving doc¬

What to Keep and How Long to Keep It

uments are color coding and bar coding. Color-coded documents use different colors

In some ways, deciding what to retain is the

on the file folders to show their designated

most important record management decision.

location. The shelves or file cabinets are coded

Government regulations, company policy, de¬

with the same color as die document folder.

sires of the office staff, and sometimes just plain

Colors are assigned to folders to correspond to

indifference are factors that determine the de¬

the filing system. For example, a geographical

cision. If the decision is wrong, the company

filing system might have a different color for each part of the country. A subject filing system

may find itself in trouble with its public, busi¬ ness opportunities may be lost because no one

might have a different color for each major subject. A break in the color field makes a

can find the necessary paper, or the company may waste time and money on equipment to

misfiled folder immediately visible. A color fil¬

store unnecessary records.

ing system also reduces the time it takes to file

Sometimes the length of time records must

documents because the file clerk quickly sees

be kept is dictated by external factors. Brad

the section in which the folder belongs.

Taylor is an office manager for a large public

With a bar coding system, coded patches are

utility that is regulated by both state and federal

affixed to file folders or documents to identify

authorities. The company has a comprehensive

them before they are filed. Corresponding

manual on preservation of records that pre¬

patches are fixed to the file shelves and loca¬

scribes the retention period for documents that

tions such as employees’ desks to which files are

must be kept to satisfy regulatory authorities.

delivered. Each time the document is moved,

Ail customer bills, for example, are retained for

the file clerk strokes it with a wand so the

3 years, all financial records are retained for a

current location of the document is recorded.

minimum of 10 years, and records of com¬

A computer keeps track of the document along

plaints to the utilities commission are kept for

with any other information that was recorded

7 years. On the other hand, individual depart¬

with it such as cross references, author, and

ments are free to set their own retention peri¬

destruction date.

ods for internal correspondence. Brad retains

Bar code patches can be created with most

correspondence in active files for one year, then

laser printers, and inexpensive readers are avail¬

passes the files across the authors’ desks to

able for any IBM-compatible PC. All that is

obtain approval for destruction. If the author

needed is an office procedure that requires all

wants the document retained, Brad has it mi¬

documents to pass the bar code reader station

crofilmed and indexed.

Chapter 9: Office Records Management 113

• Keep files in their appointed places. Files on

FILE

desks and in storage baskets are difficult to find. The time-to-live stamp is an effective tool

RETAIN UNTIL _

that many managers should consider. The stamp not only tells where the document

□ ARCHIVE

should be filed, it also tells the filing staff how

□ DESTROY

arrives, the file is sent to the author to review,

long to keep it. When the Retain Until date and he or she checks the Archive or Destroy block. Use a red stamp for the file copy, so the

Figure 9.1: Time-to-Live Stamp

stamp will be black on any photocopies made from it. This allows people to determine at a

The vast differences in organizations make it impossible to offer absolute guidelines for

glance which is the master file copy and which are duplicates that can safely be discarded.

which records to keep and for how long. This section discusses considerations that are com¬ mon to most organizations.

Personnel Records

Correspondence

All offices are required by law to keep certain personnel records. The federal government re¬ quires companies to retain such records as pay¬

The decision of how long to keep correspon¬

roll records, citizenship certification forms, and

dence is a matter of judgment. Often, if corre¬

tax withholding forms. As laws change, other

spondence requires no response, it can be

records may be required as well. These and

discarded immediately. Every office receives

employees’ original application forms should

volumes of junk mail that fit into this category.

be kept as long as the person is employed, and

If action is required, incoming and outgoing

then archived for at least seven years; longer if

correspondence should be kept together in a

company policy dictates. The retention period

single file. The correspondence file in many offices is

for other records is a matter of company policy

messy. Here are some techniques for keeping it

on how long personnel records are retained.

under control.

and judgment. Many companies have policies Training records, employment history re¬ cords, and salary records are important tools

• Develop a filing system using one of the techniques discussed in the last section.

for management decisions. Personnel evalua¬ tions and disciplinary records tend to have a

• Stamp each document with a time-to-live

shorter useful life, and retaining them may even

form, such as the one shown in Figure 9.1.

be contrary to the employees’ best interests.

• Review files at least annually and discard or ar¬

Recent appraisals are essential for showing

chive any that have outlived their usefulness.

whether an employee is making progress.

• Choose the least expensive storage medium

Older appraisals may be valuable if they show

from among those discussed later.

the employee in a favorable light, but they may

114 OFFICE MANAGEMENT MADE SIMPLE

do harm if used as a history of shortcomings that the employee corrected a long time ago. Keep records of disciplinary action in an active file until the problem has clearly been cor¬

• Every bill and invoice should be approved by the appropriate authority. • A record should be kept of when each bill was paid and the payment check number.

rected. Then, if company policy permits, dis¬ card them. Employees should not have to live

Many companies use a purchase order sys¬

with the stigma of an error for the rest of their

tem to control purchases. A purchase order

careers.

document is an excellent way to ensure that an

Some personnel files are properly kept in central

expenditure is preauthorized. Some companies

files, while others should be kept on the

use a purchase order for every expenditure

supervisor’s desk. The supervisor needs current

except for fixed and recurring costs such as

personal information such as birth date, home

salaries, utility bills, and rent. Other companies

address, persons to notify in case of emergency,

do not use a formal purchase order form, but

and other personal data. The supervisor also needs

instead use a purchase number that is kept in a

a copy of the most current appraisal and a record of any discussions that require further action.

central control file. That way, if a bill arrives without the name of the person who incurred the expense, the purchase number identifies the department to which it belongs.

Financial Records

Most companies have a bill authorization procedure established by the accounting or

In small offices the office manager usually is

auditing department. If your company has such

responsible for handling bills, invoices, and ex¬

a procedure, you need the external controls to

pense vouchers for everyone. Specialized

ensure it is followed. Lacking such a procedure,

groups in larger offices may handle financial

you should establish controls for your office.

records, with each unit responsible for control¬

The retention period for financial records

ling a portion of its own records. However

varies with the type of record. If your company

these records are handled in your office, certain

lacks a policy for retention of financial records,

controls are necessary.

consult an authority, such as the company’s accounting firm, about how long to keep them.

• No expenses should be incurred without prior approval. Purchases may be approved case by case, by a previously authorized bud¬ get, or by a company policy that authorizes

Office Furniture and Equipment Records

certain levels of expenditure by job title or position.

Office furniture and equipment are capital as¬

• All bills should be reviewed by someone who

sets that are depreciated under IRS accounting

has knowledge of whether the amounts

rules. This means that their original purchase

stated are correct.

price is deducted as an expense over several

• On every bill and invoice, the account code should be recorded.

years. The amount of depreciation expense is a matter for the accounting department to deter¬

• A record should be kept of when bills are due

mine, but every office needs to maintain prop¬

for payment, and payment should be made in

erty records. Figure 9.2 shows a sample of a

strict accordance with company policy.

property record kept in a PC spreadsheet. The

Chapter 9: Office Records Management 115

Property Item

Purchase

Office Equipment

Serial No.

Tag No.

Date

Cost

IBM PS/2 Personal Computer

AS5498034

5483A

3-19-89

$2495.00

HP LaserJet III Printer

HV56980A54

5484C

5-22-90

$1895.00

Toshiba Laptop Computer

T5490G57849

5485A

6-11-90

$1995.00

Sharp Model 88 Facsimile

6593245

5488J

7-14-90

$ 595.00

Canon Model 2345 Copier

65890A548

54901

9-22-90

$5545.45

Compaq 386 File Server

896450HH48503

5491P

9-16-91

$7565.95

Toshiba P351 Printer

86503098EF543

5495Q

2-29-92

$ 995.99

Figure 9.2: Property Record

method of keeping the record is unimportant.

time for an IRS audit has passed because these

Some companies maintain a card file, others a

can be useful for demonstrating the validity of

ledger or computer data base.

expenses that the government may challenge.

All but the smallest companies should con¬ sider a property tag system for keeping track of

They are also useful for answering questions from customers and suppliers.

individual items. The tag is made with some

Unless there is a good reason for retaining

form of labelmaker and fixed to the item so it moved. Most companies inventory capital as¬

other personal records, they should periodically be cleaned out. Personal notes, duplicate files, obsolete publications, and other records that

sets regularly. The inventory shows if items are

accumulate in desks and file cabinets should be

missing so the company can start a search or

cleaned out at least annually.

can used for inventories but not be easily re¬

write them off the books. Bills and payments for capital items require special handling to ensure that the inventory is

Customer and Client Records

kept up to date. The accounting department verifies purchases and sales of capital equipment

Customer and client records should generally

at least annually to detect any discrepancies.

be stored indefinitely. Professional firms such as attorneys, architects, engineers, and certified public accountants will undoubtedly have pol¬

Personal Records

icies on retention of client records. These are not necessarily maintained in active files, but

Most personal records can be destroyed when

they may be needed long after a case or project

they have oudived their usefulness to die indi¬

is completed. Service companies may retain cus¬

vidual, but there are certain records that should

tomer records as long as the account is active.

be retained. For example, most managers retain

Companies that sell merchandise for cash usually

should retain their personal calendars until the

have limited need for customer records.

; 16 OFFICE MANAGEMENT MADE SIMPLE

Libraries

and offers general guidelines for what should and what should not be kept in each.

Some form of library can be found in most offices. These range from massive collections in many professional organizations to a small se¬

Physical Storage

lection of trade publications in retail compa¬ nies. The job of managing the office library is

Bookcases and Shelving.

likely to fall to the office manager. If you have

shelves and bookcases has two primary advan¬

this responsibility, it is important to develop

tages: It is inexpensive and documents are visi¬

policies for retaining information. It is impossi¬

ble. It is the preferred storage medium for

ble to generalize about this. Some information

books, videotapes, notebooks, directories, cat¬

may never expire; for example, a law office

alogs, or any material that is identified by a

would retain publications of statutes indefi¬

label on its spine. Unbound documents can be

nitely. Trade publications, on the other hand,

punched and filed in notebooks or folders and

tend to have a short life and can be discarded

stored on a shelf.

Open storage in

after a few months. Publications arrive so fre¬

Though bookshelves are inexpensive, re¬

quently in most offices that without a policy for

member that if they are filled to capacity and

destroying old information, the need for stor¬

the volume of stored material is still growing,

age space grows and requires expensive file

you will be forced to rearrange shelves every

cabinets, bookshelves, and floor space.

time something new is added. Each shelf must have some vacant space so new material can be easily shelved.

Storage Strategies

Suspended Shelf Files.

For document

storage, open shelving that provides for sus¬ For every type of record there is an appropriate

pended file folders is an economical storage

storage strategy that balances cost and accessi¬

medium. File folders are labeled on the end so

bility. In virtually every office, a variation on

the contents are clearly identified. Index tabs

Parkinson’s Law, which we discussed earlier,

identify major categories of documents. Color

holds true for records storage.

coding makes it easy to find documents and

Storage Principle: Paper accumulates to fill the space available for storing it. If you have a procedure for destroying obso¬

return them to the correct section. Some prod¬ ucts have hinged lids that pull out to cover the face of the cabinet and lock for security.

lete records, the next consideration is the ap¬

File Cabinets. File cabinets are an expensive

propriate medium for storing the records you

storage medium. Documents must be double-

keep. The guiding principle is to store records

indexed, once for the folder and once for the

in the least expensive space that offers conve¬

storage drawer. As with bookshelves, drawers

nient access and fits the office decor. (In the

cannot be filled with documents, or extensive

next chapter we will discuss the matter of

rearrangements will be required to add files

decor, which should not be taken lightly.) For

when a drawer is full. Only one person can

example, open steel shelving is inexpensive, but

safely work in a file cabinet because of the

it is appropriate only in warehouses and back

danger of cabinets tipping forward or of others

rooms where appearance is unimportant. This

rising beneath a full drawer and injuring them¬

section discusses the storage media available

selves. File cabinets are expensive compared to

Chapter 9: Office Records Management 117

OFFICE SAFETY TIPS • Bolt file cabinets together to give them stability when drawers are open. The weight of the other cabinets keeps them from tipping forward. • Wait until others are out of a file cabinet before opening a second drawer. Two drawers open at once can cause cabinets to tip forward. There is also a danger that the person below will rise up into an open drawer. • Be sure the round grounding pin is present on the plugs of all office equipment that requires it. The grounding pin should never be cut off to fit a three-pronged appliance in a two-pronged outlet. • Keep a first aid kit handy, and immediately treat small paper cuts and other minor injuries when they happen. • Hold regular meetings to discuss accident prevention with the office staff. • Correct on the spot any infraction of good safety practice that could result in injury. Show others by your actions that you consider a safe workplace to be the highest priority.

most other storage media, not only in their

Electronic Storage

initial cost but also in the floor space they require. (See Office Safety Tips for precautions

Microfilm and Microfiche. Microfilm and

in using file cabinets and for tips on controlling

microfiche are members of the same family of

other hazards in the office.)

micrographic document storage equipment.

Nevertheless, file cabinets are ideal for some

Microfilmed documents are stored on a reel or

applications. They fit well into the decor of

cartridge of film that is accessed by winding the

most offices. They are sturdy, may be fire resis¬

film until the desired document appears. Li¬

tant, and can be locked for secure storage of

braries often use microfilm to store book in¬

sensitive documents. Equipped with rails to

dexes, newspapers, and magazines. Microfiche

hold hanging folders, file cabinets offer a con¬

consists of a transparent card on which re¬

venient method for indexing and retrieving

duced-size images of multiple document pages

documents.

are reproduced. Special equipment is required

Motorized Files. Motorized files hold file folders in bins that rotate or revolve to bring

to read both microfilm and microfiche. The main drawback to using microfilm and

documents to the user. The primary advantage

microfiche storage is their access method. To

of such files is the saving in floor space that

find a microfilmed document you must se¬

results from storing documents in space that is

quentially wind through the pages to reach the

otherwise unusable. Motorized file cabinets

one you want. Microfiche offers a random ac¬

can be ceiling-high, which is impossible with

cess method. The fiche is placed in the reading

drawer-type cabinets. Also, filing can often be

area of a viewer. The operator moves a stylus to

done from a sitting position, with the cabinet

the desired document, which can be located

bringing files to the file clerk rather than vice

based on its row and column. Microfiche is

versa. The considerations in using them are

somewhat more difficult to use than microfilm,

essentially the same as for ordinary file cabinets.

but a proficient operator can locate documents

118 OFFICE MANAGEMENT MADE SIMPLE

quickly. Some micrographic viewers have print¬

(bytes) of information. Disks with much higher

ing capability to produce a hard copy of the

capacities are being developed and will change

document.

the applications of floppy disks in the future. Compared to other storage media, floppy

Micrographics is an excellent way of storing large quantities of documents in a greatly re¬

disks are slower to access and hold but a fraction

duced space. If the documents are adequately

of the information. They are excellent for archiv¬

indexed, microfilm and microfiche are easier to

ing records from a hard disk because they are

use than paper storage because a large quantity

inexpensive, and information will last indefinitely

of documents can be stored within easy reach.

on a properly stored and handled disk. The lim¬

Computer output microfiche (COM) pre¬

ited storage capacity and slow access time make

pares film or fiche documents directly from a

floppy disks unsatisfactory for most office appli¬

computer without printing them first. Micro¬

cations today, except for loading software on a

fiche is an excellent way to archive documents because they only take a fraction of the volume

hard disk and backing up hard disks. Hard disks locally attached to a PC have

of paper records, and older records can be archived in the office instead of being sent to a

become the standard storage device for soft¬ ware and files. The price of hard disks has

records center for storage. Micrographic docu¬

dropped in die past few years to the point that

ments, when properly stored, can last as long as

PCs without them are rare, and the storage

100 years, making them more durable than

capacity continues to increase. Most PCs have

most storage media.

at least 40 megabytes of capacity, with many

Document retrieval can be mechanized

climbing toward 100 megabytes of storage.

through computer-assisted retrieval (CAR)

Hard disks are fast and reliable, though they

equipment. The cost of the equipment may be

must be backed up regularly to ensure that data

justified by using micrographics for active files.

is preserved in case of a failure. Hard disks are

Magnetic Disk Storage.

The personal

an expensive medium for storing files that are

computer has brought magnetic storage me¬

rarely used. Such files should be archived on

dium to virtually every office. The storage

floppies or removable storage media.

medium is usually one of the following:

There are several removable storage devices on the market that hold large quantities of data,

• a floppy disk; • a hard disk attached to an individual PC;

typically 20 or more megabytes (a megabyte is

• removable bulk storage;

cartridge. These devices are a cross between a

• a hard disk attached to a file server.

floppy and a hard disk, with some of the storage

about 1,000,000 bytes) on a removable storage

and retrieval capability of a hard disk and the Each medium has its applications, but not all

ease of removal of a floppy. They are more

are appropriate for every office. Each medium

effective than floppies for storing important

also has administrative complications that require

files, because they hold so much information.

management attention. Hard disk storage is con¬

The disk drive is expensive, but the removable

siderably more expensive than micrographic stor¬

storage media offers an economical way of stor¬

age, but records are easier to access.

ing seldom-used software and important files.

Floppy disks are inexpensive and reasonably

A file server is a specialized computer con¬

reliable storage devices if handled carefully. The

taining a high-capacity hard disk that can be

largest floppies hold 1.44 million characters

shared by multiple users over a local area net-

Chapter 9: Office Records Management 119 work (LAN). The disk may be identical to disks

the original data in much the same manner as a

used on individual workstations, except that its

magnetic disk drive.

speed and capacity are usually greater. The

Image Technology.

typical file server has 100 to 1,000 megabytes

Image technology may finally usher in the paperless office. An

of storage — a considerable amount of infor¬

image system consists of a scanner, personal

mation. File server disks require monitoring to

workstations, printer, a file server using mag¬

avoid filling them with information that should

netic or optical storage devices (or both), and a

be stored on a less expensive medium. We will

LAN to tie them together. Workstations have

discuss file servers in more detail in Chapter 11.

high-resolution monitors to capture the detail

Optical Disks.

Optical disk technology is in

of the original document. They decompress the

its infancy today, but it will fill an important

document for viewing and compress it before

spot in future document management systems.

sending it across the network to another device

Optical disks are similar to audio compact disks; but, instead of sound, data is stored on

such as a printer. In an image system documents are scanned,

and extracted from the disk as a series of binary digits. Up to 10,000 pages of information can

much as they are with facsimile, and stored as millions of tiny dots. A scan server compresses

be scanned, stored, and retrieved quickly on a

the data to reduce storage requirements and

single 6-inch optical disk. Large jukebox-style

sends it over the network to the file server,

optical disk systems can store as much as six

where it is stored in a high-capacity magnetic

million pages of information; 150 to 300 four-

or optical storage device. The recipients are

drawer file cabinets would be required to store

notified by electronic mail of the document’s

a comparable amount of information on paper.

arrival, and they can retrieve it from the file and

Optical disks can be reproduced inexpen¬

display it as an image on their PCs.

sively, which makes them ideal for application

Records management in the paperless office

by organizations such as libraries. They can also

will require entirely different techniques from

be indexed for rapid search and retrieval. Each page or image is indexed with information such

management of paper documents. The docu¬ ment is stored only once. After that, all action

as subject matter, author, key words, recipient,

on the document such as writing, abeyancing,

and date. Users can sit at their desks and search

annotating, and forwarding to someone else

for or retrieve information from their PC over

for review takes place electronically.

a network. The average search and retrieval

Except for a few special applications, imag¬

takes 10 to 30 seconds. The file can also be

ing is not generally economical yet. Imaging

searched from multiple locations over a wide area

will become common as storage costs drop,

network, which eliminates the need to store the

labor costs rise, and LANs and PCs become

same information in more titan one location.

more versatile. Until then, we will have to cope

There are three main types of optical disk

with the mounds of paper that arrive daily.

devices on the market. A read-only device is incapable of creating disks: You can use them only to read disks. A WORM (write once, read many) device writes information to a disk that

Case: Records Management in a Hospital

can be read indefinitely, but once it is written the information cannot be changed. A rewrit¬

Judy Prentiss works for a large hospital in a

able optical disk drive is capable of writing over

major metropolitan area. The hospital requires

120 OFFICE MANAGEMENT MADE SIMPLE

countless records, the volume of which is

from more sophisticated devices that must be

growing so large that a considerable amount of

transported to physicians’ offices for review.

space is required to store them. The hospital

These records should be scanned and stored in

administrators asked Judy to develop a policy

image form as soon as budget permits. The

for records storage. They emphasized that they

primary advantage of image storage is that with

do not plan to implement her recommenda¬

proper authorization, staff members and physi¬

tions all at once, but will gradually introduce

cians can retrieve records over a network in

new equipment and procedures as the budget

their own offices. All notations will be visible in

permits.

the handwriting of the person who entered

Judy inventoried the records and concen¬ trated on the following major categories that

them. To convert the records, the hospital can either invest in a scanner or hire an outside firm

comprise the bulk of the records volume.

to scan them.

Medical Journals and Publications. • Correspondence with patients, physicians, and insurance companies

These records must be stored in the hospital’s library to support our research efforts and to

• Patient records

provide a resource for physicians. The volume

• Medical journals and other publications

is growing, so these cannot be stored indefi¬

• Employee records

nitely in their original form. We recommend microfilming them after two years on die shelf.

Judy summarized her recommendations in the following way.

Employee Records.

Nearly all important

records are now contained in the hospital’s

Correspondence.

All outgoing corre¬

computer system. We recommend using com¬

spondence is initially created on word proces¬ sors and stored on a file server. The file server

puter output microfiche to store these records without printing them first. Exceptions are

is an expensive storage medium. All files that

paychecks and payroll records that must be

are more than one year old should be off¬

supplied to the government. These will be

loaded to floppy disks and indexed so that, if

printed, but the hospital’s master copy will be

necessary, they can be retrieved in the future.

kept on microfiche.

After floppies have been stored for five years,

The hospital administrators reviewed Judy’s

they can either be erased for reuse or discarded.

recommendations and plan to implement them

Paper copies of incoming and outgoing cor¬

over the next five years. The physicians are so

respondence should be kept in active files for

interested in the use of image technology, how¬

one year. After that time, they should be stored

ever, that it may be implemented earlier than

on microfiche and indexed for easy retrieval.

Judy had anticipated.

Patient Records.

These vary from records

of treatment and medication to bills and pay¬ ment records. Most of these records are on

Summary

paper and must be retained for at least one year in active storage. After that time they should be

The typical office today is badly in need of

stored on microfiche. Within the next five years

records management. Files are misplaced,

we believe it will be more economical to store

paper abounds, and file cabinets are jammed

these records in image form on optical disks.

with records, many of which are obsolete.

This is particularly true of x-rays and images

Managers who are skilled at records manage-

Chapter 9: Office Records Management 121

ment can repay their salaries many times over

under the guidance of a skilled mentor. Most of

by making it easier for others to do their jobs.

the job, however, is the result of common sense

Part of the records management job is learned by experience; with good fortune you will learn

and a determination to develop procedures that others find easy to use and administer.

CHAPTER

TEN

Office Design

KEY TERMS FOR THIS CHAPTER

open space task lighting ambient lighting

modular furniture video display terminals (VDTs) twisted pair

coaxial cable fiber optic cable ergonomics

An office in the mid-1970s was a very different

• Filing will largely be done electronically. Pa¬

place to work than it is today. Printers were

pers will still be stored but for shorter times,

seldom found outside the computer center. Cop¬

because it will be less expensive to handle

iers were slower, larger, and more expensive.

them electronically.

Graphics were created and letters were drafted by hand. The term spreadsheet meant a large sheet

• Most information will move between offices as images over high-speed networks.

of yellow ledger paper on which figures were

• Groupware — software that enables groups

entered in pencil and rows and columns of figures

to work together on a problem over a com¬

were added and cross-footed by hand. Today,

puter network — will be widely used.

advanced and inexpensive electronic devices, such as personal computers (PCs), pocket calcu¬

• Video telephones will be inexpensive and in common use.

lators, and facsimile machines, have transformed the office environment.

Beyond this list, which is merely an extension

Let’s catch a glimpse of what the office may

of technologies that are already available but

look like in the future and what effect it will

not yet widely adopted, we can only speculate.

have on our working environment.

Whatever shape the future office takes, it is evident that the physical environment must be

• Nearly all office workers, whether clerical, professional, or managerial, will have some

adaptable and flexible enough to absorb de¬ cades of constant and unpredictable change.

type of data terminal on their desks. The ter¬

This chapter discusses how the physical envi¬

minal will likely be a fast PC with a high-res¬

ronment of the office harmonizes with the

olution color monitor.

physical, cultural, and technological needs of

Chapter 10: Office Design

123

office workers and their equipment. Although you may have inherited facilities that are less than ideal, the information in this chapter will help you segregate space and select furniture that is consistent with principles of good office design. We’re not attempting to provide you with the tools of the space planner. Office space planning and design is a specialized skill. But in keeping with the goals of this book, we are equipping you with the tools to make intelli¬ gent office design decisions.

good task lighting; comfortable seating; good overall room lighting; adequate heating, ventilation, and air conditioning; •easy access to tools, equipment, and materials; • an environment free from noise and distractions; • privacy for meetings and confidential discussions; • adequate storage space.

The Physical Environment of the Office

Some of these items may seem like luxuries that are difficult to justify until you study the consequences of doing without them. For ex¬ ample, comfortable seating may seem unim¬ portant until you consider that back problems comprise 25 percent of workman’s compensa¬ tion claims among office workers. Repetitive motion claims are on the rise, resulting in such disabilities as carpal tunnel syndrome, which is a wrist injury sometimes caused by having the wrong keyboard angle or by pounding keyboards too hard. Poor air quality' increases sickness which increases cost. Air quality often can be improved simply by adding plants which also, incidentally, improves the office’s attractiveness.

Facility studies have shown that office design has an important effect on productivity. The right design is a balance of • • • • •

the desired mix of open and closed space; life-cycle costs of the equipment; the company’s growth plans; the culture of the organization; the type of work being done, which deter¬ mines the need for privacy and group work space.

When we speak of life-cycle costs of office space, we’re considering a mix of initial plus recurring costs. We’ve all had the experience of purchasing a product that is inexpensive ini¬ tially but that fails prematurely or reduces the efficiency of its users. In selecting office furni¬ ture and equipment, the product with the low¬ est life-cycle cost is the one that costs the least in terms of both initial cost and ongoing costs as long as the company owns it. A major objective in creating the office envi¬ ronment is to make it pleasing to the people who work in it. Among the elements that office workers need are

• • • •

Open Space or Private Offices? In older office buildings space is generally of two types: closed private offices for managers and open space for clerical workers. In newer buildings open space is feasible for everyone, with modern system furniture that has work space dividers and storage space integrated with the desk. Open offices use moveable partitions or pan¬ els to mark work areas, circulation patterns, and public areas. Closed offices use fixed walls to divide the space into separate rooms. Highly

124 OFFICE MANAGEMENT MADE SIMPLE

OPEN SPACE OR CLOSED?

• • • • •

• • • • •

• • • •

Space considerations How much common space is needed for meeting rooms, files, reception areas, and other areas shared by all? How much privacy is needed by each class of worker? To what degree should each level of management be integrated with the rest of the work group? How often do tasks change during the day? How much natural lighting is available and how will it be shared among the workers? Use open space when people work in teams on group projects; visibility is needed so people can cover for one another on telephone and receptionist duties; the additional cost of closed space cannot be justified; the office will be rearranged frequently; there is a limited amount of window area (more people can enjoy natural light with open spaces than with closed). Use closed space when workers need privacy; the work people do could be distracting to others (for example, talking on the telephone frequently); the additional cost of closed space can be justified by need or by company policy; rearrangements are infrequent.

creative companies or departments within the

International Facilities Management Associa¬

company often prefer open areas because inter¬

tion states that 30 percent of an average firm’s

action with other people is improved. Closed

employees move each year. With open space a

offices offer more privacy and often are pre¬

person often can be moved to a new worksta¬

ferred by companies such as legal and account¬

tion, with the furniture, telephone, and PC left

ing offices, where the work is more apt to be

in place by the previous occupant.

done individually than in groups.

Another consideration that may be import¬

Most companies use a combination of both.

ant for some companies is the use of accelerated

Closed offices are provided for professionals or

depreciation to recover the costs of furniture.

higher level managers who need privacy. Open

Moveable partitions, raised flooring, wall pan¬

offices are used for secretaries, people who

els, and other such items are considered furni¬

work in teams, and supervisors who need to be

ture by the IRS; their cost may be recovered by

part of the work group.

accelerated depreciation, which often results in

The primary advantage of open space is the

reduced income taxes. Fixed walls and parti¬

ease of rearranging it when people move. The

tions, on the other hand, are considered part of

Chapter 10: Office Design

125

the building and are depreciated at a much

which illuminates the immediate work area,

lower rate. The company accountant can advise

and ambient lighting, which affects the sur¬

you on the importance of this consideration.

rounding office. Task light is often built into modular furniture in open offices. With good task lighting, the general or ambient light can

Office Space Requirements

be reduced to save energy costs and possibly improve the appearance of the office.

As office space costs increase, many companies

Since the lighting engineer does not know

are shrinking the amount of space per em¬

how open space will be arranged, ambient

ployee. An average of 150 to 200 square feet

lighting is usually designed for uniform general

per employee is reasonable. Of this, as much as

lighting. In the past, offices were provided with

50 percent will be used for common equip¬

ambient light that was strong enough to also

ment such as filing cabinets, libraries, statio¬

fulfill the need for task lighting, but today, the

nery lockers, shared printers, lunchrooms, and

use of video display terminals (VDTs) re¬

reception areas. This leaves an area of, perhaps,

quires close attention to task lighting. Glare on

8 to 10 square feet for the employee’s worksta¬

a VDT screen makes it difficult to work on

tion. Consider the amount of work surface required. A PC and draft printer, for example,

detailed drawings and documents. It also may lead to complaints of eyestrain, headaches, and

require some 6 square feet of work surface.

muscular strain as people position the head or

The height of work space divider panels has

body for minimum discomfort. Screen-based

an effect on the office culture. Lower panels,

tasks and paper-based tasks require different

between 30 and 42 inches high, promote team¬

levels of lighting. When the task requires work¬

work because people can talk over the partition

ing from documents, such as typing from

without sacrificing privacy. Higher partitions of 60 inches offer more privacy and also provide

handwritten correspondence, lighting should be 650 to 750 lux; but when the task is key¬

room for more overhead storage space and

boarding, lighting should be only 320 to 540

shelving hung from partitions.

lux. (There are approximately 10.8 foot-can¬

At first, it appears that an open office re¬

dles per lux.)

quires less floor space per employee. There is

A VDT acts like a mirror, so light should

little difference, however, in space require¬

come from the side to prevent glare and reflec¬

ments for fixed walls or moveable partitions.

tions. Daylight usually is best, not only to re¬

Setting aside a certain amount of floor space for

duce reflections but also for the feeling of

private offices does not necessarily increase the

well-being it conveys to employees. To prevent

amount of space required. It does, however,

reflections, users should not be positioned with

reduce the flexibility and increase the cost.

their backs to light when using a VDT. White or light-colored clothing or partitions tend to reflect off the screen and make it difficult to

Office Lighting

work. Generally, fluorescent light is superior to in¬

Office lighting also affects productivity. In the

candescent (from the standpoint of glare and

modern office, the quality of lighting is more

energy efficiency), but standard overhead fluo¬

important than the quantity. Designers must

rescent lights are not always desirable. Fluores¬

consider two types of lighting: task lighting,

cent bulbs that simulate sunlight are now

126 OFFICE MANAGEMENT MADE SIMPLE

available, providing a more pleasing effect than

tion project that brings PCs and other devices

stark white bulbs. Designers must consider the

to the desktop, be sure to consult a competent

lifecycle costs of lighting when selecting fixtures. Fluorescent bulbs are more energy

electrical designer as to whether the building systems will support them. The alternative is

efficient and generally have a lower replace¬

blown circuit breakers, overloaded air condition¬

ment cost over the life of the fixture, even

ers, and potential fire hazards. Most desktops are,

though the fixture may cost more initially.

or soon will be, wired to a central computer or to

Consider whether to use direct or indirect lighting. Indirect light is directed upward to a

a file server and shared printers through a LAN. (We will discuss LANs in Chapter 11.)

ceiling that has a high degree of reflectance.

Whatever the plan for linking desktop de¬

The light bounces to the work surface where it

vices, all share the need for some form of com¬

is diffused to reduce glare and shadows. When

munication wiring. The computer wiring plan

workstations with overhanging shelves are

may be shared or, at the least, may use a com¬

used, however, the shelves may reduce the

mon distribution method with the telephone

amount of indirect light that strikes the work surface. Most designers consider a combina¬

system. A pressing problem with electrical,

tion of direct and indirect lighting to be best.

of the wiring to the work area. New buildings

telephone, and computer wiring is the delivery can be designed with adequate conduits and circuits, but existing buildings provide one of

Office Wiring Systems

several methods of routing wire to the desktop.

An important job that most office managers inherit is the development of floor plans when

Types of Communication Wire

the office is rearranged or moved. A vital part of this task is to determine how to achieve the

There are three primary types of wiring found

necessary desktop power for office appliances

in offices: twisted pair, coaxial cable, and fiber

and communication wiring for telephones,

optic cable. Twisted pair is used for all tele¬

computer terminals, and local area networks

phone and many data applications. A twisted¬

(LANs). Wiring must be designed in new of¬

pair wire has two conductors that are tighdy

fices, and compromises must be made in older

wound together to suppress interference. Most

offices to compensate for designs that predate

workstations are wired with more than one pair

office computerization. Office managers are

of wires. Two pairs are a minimum require¬

not expected to be wiring system designers, but

ment, four pairs are more commonly used, and

they must understand enough of the principles

many older systems are wired with 25-pair

to be intelligent consumers.

cable. Twisted-pair wire is used for both voice

The wiring problem is particularly acute in older buildings. These are apt to have electrical

and data, but it is desirable to keep voice and data in separate wire runs if possible.

circuits that lack the capacity to support PCs,

Today, all workstations are wired with

copiers, facsimile machines, and other appli¬

twisted-pair wire. If the station is being newly

ances. Many managers forget diat each device

wired, it should be equipped with at least one,

dissipates its heat into the room, adding to the

and preferably two, four-pair cables. The cost

load the air-conditioning system must handle.

of placing more wire than is immediately

When your office embarks on an office automa¬

needed is not great, and the extra wire will

Chapter 10: Office Design

127

probably be needed for applications that can¬

it suffers from lack of flexibility. Workstations

not be foreseen now. The wire should be ter¬

must be placed where the conduit ends, which

minated in modular telephone jacks known in

limits your ability to move desks without incur¬

the industry as RJ-11 (two pair) or RJ-45 (four

ring expense or using long cords that may

pair). Face plates supporting dual jacks are

create a tripping hazard.

Suspended Ceiling Space.

available and provide for both voice and data connections.

ern offices route wiring through the space

Coaxial cable consists of a single wire that is

above removable ceiling tiles. Electrical wiring

surrounded by an insulator and a solid or

is usually in conduit to meet code require¬

braided shield. It is used for some LANs and all

ments, but communication wiring can be fas¬

closed circuit television systems within the office.

tened to structures such as pipes and ceiling

Fiber optic cable is rarely found in offices today, but in the future it will be provided for

supports. You must be aware, however, that some suspended ceilings are used for air return

almost all workstations. It is expensive to place,

for the heating system. Wiring placed in these

but it can carry voice, data, and video while

ceilings, which are called air plenum ceilings, is

remaining virtually free from corrosion and

required by the National Electric Code to ei¬

outside interference.

ther be in conduit or to have an outer coating,

Some LANs need coaxial cable; others use twisted-pair wire or fiber optics. The vendor or

Many mod¬

such as Teflon, that will not emit toxic smoke if it burns.

manager of computer services for your com¬

The primary problem with suspended ceil¬

pany will know what is required. Fiber optic

ings is getting the wiring from the ceiling to the

cabling is a specialized field that is beyond the

workstation. Here are the most common

scope of this book.

methods. • Telepower poles are square metallic conduits

Types of Office Wiring Systems

that mount between the ceiling and floor to provide separate channels for communica¬

A critical issue is getting wire routed from a

tion and electrical wiring.

central location, usually the computer or tele¬

• Poke-through wiring routes the wires

phone equipment room, to the workstations.

through holes drilled into the floor and into

This section discusses the methods found in

the ceiling of the story below. The wiring ter¬

most offices.

minates in a floor monument — a metal

Conduit.

Offices with fixed walls and ceil¬

ings often have conduit running from wall out¬

housing that fastens to the floor and supports both communication and power outlets.

lets to central locations: the telephone

• Fixed walls can be equipped with conduit, or

equipment room for communication wiring

communication wiring can be fished through

and the building power panel for electrical wir¬

the wall to outlets placed by the wiring con¬

ing. In some offices with suspended ceilings,

tractor.

communication conduits extend only from the

• Surface mounting is usually the method of

baseboard to the top of the wall, and wiring is

last resort because of its unsightly appear¬

routed above the ceiling to the equipment

ance. Decorative conduits can be purchased,

room. Where adequately sized conduit is in

however, that may make surface-mounted

place, it is a highly effective wiring method; but

wiring acceptable.

128 OFFICE MANAGEMENT MADE SIMPLE

Floor Cells. Many buildings are constructed

Ergonomics is the science of adapting furniture

with communication and power raceways or

and machines to the individual needs and comfort

cells built into the floor. Service is brought to

of humans so they may be as productive as possi¬

the workstation by core drilling into the cell

ble. There are no standards for ergonomically

and routing the wire from an access panel to a

designed furniture, so a manufacturer’s statement

monument mounted over the hole.

that its furniture is ergonomically designed does

Raceways In Moveable Partitions or Sys¬ tem Furniture. Most moveable partitions and

not necessarily make it so. The most preferable

system furniture have raceways that hold power

does not require the user to make adjustments.

and communication wiring as part of their wire management system. A lineup of panels is

Instead, the furniture (usually chairs) adjusts itself to the user’s size, weight, and posture. More

mounted near a conduit or over a floor cell, and

common, through less desirable, is furniture that

the wiring is routed from there to the workstation.

the user must adjust.

Under-Carpet Wiring. Flat wiring that can be run under carpet is available from several

type of furniture uses passive ergonomics, which

Ergonomically designed furniture generally has the following characteristics:

manufacturers. All types of communication and most power wiring can be provided as flat

• adjustable chair tilt and tension;

cable. Flat wiring is expensive and requires

• adjustable chair seat elevation and angle (the

special equipment to place it. It must be de¬

chair seat should not press on the backs of

signed carefully to avoid wiring crossovers, and

the thighs when the user sits with the feet flat

once placed it is expensive to move because the

on the floor);

carpet must be removed.

Raised Flooring. This method of wiring is

• desk surfaces about 30 inches from the floor with adjustable key shelf height and tilt;

common in computer rooms. If your office hap¬

• adjustable VDT tilt and azimuth so operators

pens to be equipped with raised flooring, it will

can move the terminal when they shift posi¬

be easy to rearrange power and communication

tions; the screen should be about 20 degrees

wiring. The initial costs are high, however, so this

below eye level and 24 to 28 inches from die

form of wiring is rare in office areas.

eyes; • curved back cushion in chairs to fill in the lower back.

Selecting Office Furniture In addition to ergonomic principles, several People do not sit quietly at their desks all day.

other considerations affect the choice of furni¬

They squirm, wiggle, shift positions, and scoot

ture. Wood and simulated wood surfaces have

across the floor in chairs to reach a file drawer.

a warmer feeling than metal, and surfaces that

They change positions when visitors arrive or

contact the skin should be warm to the touch.

the task changes. People come in a wide variety

The furniture should complement the office

of sizes, shapes, and weights, and it is not

decor to convey a comfortable feeling to work¬

reasonable to expect that one type and style of

ers and visitors. Furniture that is comfortable

furniture will fit everyone. Workers who are

and pleasing to the users often costs more than

uncomfortable are less productive; they find

the alternative, but most design authorities

reasons, such as trips to the water cooler, to

contend that it repays the cost in improved

justify being away from the desk.

productivity.

Chapter 10: Office Design

Case: Designing the New Office Layout

129

began the meeting by developing, with the committee’s help, the objectives of the move. The list of objectives included the cost and schedule the group would be expected to meet.

Bart Gibson was given an opportunity that

From the time schedule, Bart developed a

most managers rarely, if ever, receive. His boss, Vicky Strader, announced that the office would

PERT chart and furnished copies to everyone on the committee, with instructions to in¬

be moving to new quarters in three months,

form him immediately if anything changed.

and Bart was to work full time with an outside

For the duration of the project, the commit¬

space planning firm in laying out the office.

tee agreed to meet on a weekly basis in order

The new building had never been occupied, so

to review progress and remove any road¬

the new space was nothing but bare floors

blocks that arose.

without existing offices or partitions.

With the help of the space planner, Bart

“This is all Type 5 delegation except for the

worked with each department to arrange the

layout of private offices,” Vicky said. “I want to

private offices and the open space. Together

see how well you can handle it, so you’re in

they selected standard furniture from the ap¬

charge of coordinating the whole thing. You

proved supplier, and enlisted the assistance of

meet with the other departments and find out about their requirements. If you run into con¬

the company architect to select and specify placement of lighting fixtures. They decided to

flicts, I’ll help you resolve them; otherwise,

array the private offices in the center of the

you’re on your own.”

building and to allocate the window space to

The only restrictions Vicky imposed were the following.

clerical people, who needed the natural lighting for their data entry tasks. Bart met with data processing and tele¬

• Private offices were to be provided only for

phone staff to determine the wiring require¬

the top three levels of each department. The

ments for the project. They decided to bring

company had strict standards on how large

all wiring into the modular furniture through

private offices could be.

holes drilled into the ceiling space below the

• The decorating and color schemes would be specified by the company’s architect.

floor. The wiring would route through chan¬ nels built into the workstations. Bart selected

• Each department was assigned a particular

a contractor, who placed twisted-pair wiring

sector of the building. Bart was to guide the

for both the telephone system and a planned

departmental coordinator in laying out the

LAN. They decided to pull two four-pair

space. No department could exceed its allot¬

wires to each workstations to provide for fu¬

ted space without approval of the company

ture expansion. The building move went smoothly under

president. • The company had already selected modern

Bart’s direction. Costs were controlled by hav¬

system furniture for the open space offices.

ing company standards for the type of furniture

Departments could choose the furniture and

and the amount of space that each class of

dividers from the approved list.

employee would have. After the move, several people remarked to Bart how much they appre¬

Bart organized a committee consisting of one representative from each department. He

ciated the improved lighting and reduced glare compared to their old quarters.

130 OFFICE MANAGEMENT MADE SIMPLE

Summary

figuration. You may be appointed project man¬ ager, or your role may be confined to partici¬

Many of the tasks in laying out the office are

pating in the layout of your own work space.

jobs for professionals. Architects, space plan¬

To be an effective office manager, you need to

ners, electrical engineers, and decorators have

understand the principles of dividing and assign¬

specialized skills acquired through years of

ing office space, including the advantages and

training and experience. Major remodeling or

disadvantages of private space versus open space.

redecorating projects are well beyond the scope

As office tasks become more and more com¬

of an office manager’s job. To use the skills of

puter-supported, you need to understand light¬

others, however, you need a basic grounding in

ing and wiring principles. You also need to pay

what you can expect them to do.

particular attention to the principles of ergono¬

Nearly every office manager will, sometime

mic furniture design, not just because it makes

in his or her career, be called upon to partici¬

employees more comfortable, but because good

pate to some degree in a major office recon¬

furniture can make them more productive.

CHAPTER

ELEVEN

Automating Your Office

KEY TERMS FOR THIS CHAPTER

batch on-line mainframe multitasking application program peripherals controller front-end processor minicomputers

port personal computer local area network (LAN) network interface card network operating system memory random access memory (RAM) bytes terminal

terminal emulation teletypewriter line printer windowing electronic mail electronic document interchange (EDI) data base management system (DBMS)

Almost half a century has passed since the first

difficult to use. When workers were forced to

practical computer was demonstrated at Los

choose between changing their habits and al¬

Alamos, New Mexico. The Electronic Numer¬

tering the program, the workers usually lost.

ical Integrator and Calculator (ENIAC), first

Early systems used a batch process in which

demonstrated in 1945, was a far cry from even

input media was prepared outside the com¬

the cheapest personal computer on the market

puter, often on punch cards, and run into the

today. ENIAC filled a large room and con¬

computer through a card reader. The computer

sumed enough power to supply several houses.

processed the data and produced reports in the

After five decades of progress, its successors are

form of printed documents, a new deck of

transforming the office manager’s job.

punched cards, or a magnetic tape.

Office workers have long been affected by

The next computer generation offered on

computers. Office jobs changed as companies

line processing with video display terminals

computerized applications such as bookkeep¬

(VDTs) on workers’ desks. The computer ran

ing, payroll, and customer data bases, and of¬

one or more programs simultaneously, and

fice workers’ activities began to revolve around

users operated the programs interactively. In¬

the computer. Early applications were rigid and

stead of information being transported to the

132 OFFICE MANAGEMENT MADE SIMPLE

computer room for processing, the operator

Mainframe Computers

could now key it into the computer and get an immediate response instead of waiting until the next day for a report to be delivered.

The largest type of computer system is the

As computers became more powerful and

mainframe — a central system that many users

less expensive, office workers became even

share. If users can share the computer without

more directly involved in their use. The advent

interfering with one another, the computer is

of the personal computer changed the role of

called a multiuser computer. If the computer is

office workers from terminal operators to di¬

able to run more than one program at a time,

rect hands-on users of the program. Older

it is called multitasking. Nearly all mainframe

computers required a specialized operator to

computers today are both multiuser and multi¬

load programs, mount tapes, monitor perfor¬ mance, and perform other specialized tasks.

tasking. Most mainframes are set up for on-line appli¬

The personal computer requires the user to

cation. The users can either be in the same

double as the operator. These decades of progress led to the auto¬

building as the computer, or they can be re¬

mated office. Office automation doesn’t mean

computer over telecommunications lines. The

the office can run without people. It means

computer can be used for either batch or on¬

that office workers can use a collection of tools

line processing, depending on the application

to produce more work of higher quality with

program (the set of instructions that tells the

less effort, while the job itself becomes more

computer what to do.) More about application

interesting. Management of office automation

programs later.

motely located and communicate with the

equipment will never be more important than

The computer also has several peripherals

management of people, but to get the most

such as disk drives, magnetic tape drives, and

from people, managers must know how to use

terminals. Figure 11.1 shows a typical main¬

and control equipment. This chapter explains how computers oper¬

frame computer configuration. The terminals

ate: It is not intended to make you a computer

a controller, which permits several terminals

expert, but to give you the vocabulary and

to share a single telecommunications line.

enough details to become an intelligent man¬

The line often terminates in a front-end pro-

ager and consumer of office automation prod¬

cessdr — a special computer that handles re¬

ucts and services.

mote processing so the mainframe can

may be attached locally or remotely through

reserve its power for the application programs. A mainframe is admirably suited for central¬

Office Computer Systems

ized applications such as managing a large data base. Because mainframes are expensive, they

One or more of four main types of computers

are often not cost-effective for office automa¬

are found in most offices: mainframes, mini¬

tion applications such as spreadsheet or word

computers, stand alone personal computers,

processing. If the computer capacity is available

and networked personal computers. Each type

and the users are already equipped with termi¬

has a primary field of application and its own

nals, however, running office automation pro¬

advantages and disadvantages.

grams on mainframe may be feasible.

Chapter 11: Automating Your Office

Local Cluster Controller

133

Terminals

m

Mainframe Computer

F

Front-End Processor

| ET* L~~l r -i i— ~i [miiiiiiiim |m

KjV//////////////A

Telephone Circuit m

□

EH

Modem

Remote Cluster Controller

Figure 11.1: A Mainframe Computer

Minicomputers

Stand Alone Personal Computers

Minicomputers are similar in architecture and

When the IBM PC entered the market in 1981,

applications to mainframes. The main differ¬

it abruptly changed the jobs of millions of

ences between the two are size, cost, and pro¬

people, including office workers. A personal

cessing capability. Minicomputers are used on

computer, or PC, resembles a terminal, but

centralized applications where the mainframe’s

there is an important difference: Terminals can¬

power is not needed and its cost cannot be

not run application programs by themselves.

justified. A typical minicomputer arrangement

PCs, on the other hand, can run application

resembles the mainframe depicted in Figure

programs and are inexpensive enough that

11.1 except that minicomputers rarely have

companies provide them for individual users.

front-end processors, and terminals usually are

The main elements of a PC are the central

connected directly to ports on the computer. A

processing unit with fixed and floppy disk

port is a connection point for peripheral devices

drives, a video display device, and a keyboard.

such as terminals, printers, and telecommunica¬

A PC has the main features of a mainframe or

tions lines.

minicomputer, with several important differ-

134 OFFICE MANAGEMENT MADE SIMPLE

Figure 11.2: A Local Area Network

ences. PCs generally have less processing power

PCs can be made multitasking by using a

than mainframes and minicomputers, although

special program such as Microsoft Windows.

the gap between them is narrowing. PCs are

The right hardware configuration and a multi¬

not readily adaptable to remote processing

tasking program can allow you to run more

devices.

than one application and toggle between appli¬

Perhaps most important is die fact that most PCs are both single-user and single-processing

cations with a few keystrokes or clicks of a mouse.

devices. The single-user limitation is obvious: Only one person can use the keyboard at a time, making it difficult for users to share files. On stand alone computers, files are usually

Networked Personal Computers

shared by passing floppy disks among users. The single-processing limitation means that

A local area network (LAN) is a system that

users must quit one program before they can

ties multiple PCs together. Figure 11.2 shows

start another. This takes time and makes it

a typical LAN consisting of several elements.

difficult to move information from a file in one

The network interface card plugs into the

application program to a file in another. Fortu¬

PC and connects the computer to a shared

nately, there are solutions to both limitations.

transmission medium, which is wire, coaxial

Files and peripherals, such as printers and hard

cable, or fiber optics. A shared file server, which

disks, can be shared over a network of PCs.

is often a high-powered PC running file-server

Chapter 11: Automating Your Office software, is attached to the transmission me¬ dium. The special file-server software permits

135

Central Processing Unit

the file server to act as a multiuser device so

The central processing unit (CPU) is the

users can store and retrieve files without inter¬

computer’s brain. It is where the processing

fering with one another. They also can share

takes place. The CPU reads instructions from

printers that are attached to the network, either

the application program and executes them

directly or through a file server. Print jobs are

one at a time. The CPU in PCs and some

stored temporarily in a buffer and sent to the printer in priority order.

minicomputers is contained on an integrated cir¬

A PC network eliminates floppy disks except

cuit chip. In mainframes die CPU is most likely on a plug-in board that contains many chips.

where they are needed to load programs on the

The CPU’s speed and processing power af¬

file server or the PCs’ hard disks. A LAN also

fect how quickly it executes instructions and

has a network operating system that captures

how much time it takes to handle complex

instructions from the PCs’ operating systems.

tasks such as numerical calculation and word

The network operating system redirects in¬

processing.

structions to the network’s resources when appropriate. PC networks are not yet a replacement for

Main Memory

mainframe computers, but they can compete favorably with many minicomputers in the areas of cost and functions. The primary thing to remember about a PC network is that appli¬

The CPU uses its main memory, sometimes called random access memory (RAM), to store its application programs, scratch pad in¬

cation programs are run and all processing

formation, and operating system. The scratch

takes place in the individual PCs. Each PC can

pad contains the temporary information the

be running a completely different application

application program is currently using. For ex¬

program, yet its files are stored on and retrieved

ample, if the application is word processing, the

from a shared disk in the file server. Within

scratch pad portion of memory contains the

limits, the PC network is not affected by the

document that is currently being edited. Main

number of users or the programs they are

memory holds information only while the

using. What does affect the PC network is the number of times files are saved and retrieved.

computer is turned on. When the power is turned off, everything in main memory disap¬

This concept is explained in more detail later.

pears. To avoid losing information you are working on, the file must be saved to a disk. The amount of main memory is limited in all

Components of a Computer System

computers. To use a multitasking program you must have enough main memory to contain the operating system, all the application pro¬ grams, and their scratch pad files. Memory is

All computer systems share certain compo¬

measured in thousand of bytes, or characters,

nents that have become part of the jargon. In

and usually abbreviated simply as K. For exam¬

this section we will briefly explain the compo¬

ple, most IBM-compatible computers have at

nents of a computer system and how they

least 640K, which means they have at least

interrelate.

640,000 bytes of main memory.

136 OFFICE MANAGEMENT MADE SIMPLE

Mass Storage

operating system includes utility programs to permit you to delete, move, and rename files.

Since the computer’s main memory is volatile,

The features of an operating system are too

most computers have mass storage equipment

numerous to mention, but the program is one

to save files on a semipermanent medium. The

that every computer must have.

cheapest medium is the floppy disk — a remov¬ able disk of magnetic material that is protected by a plastic sleeve. A floppy disk drive spins the

Input/Output Devices

disk for reading and writing operations, and read heads in contact with the disk surface extract the information. Floppy disks are used

A variety of devices are available to enable

on most PCs, some minicomputers, and less

operators and users to communicate with the

frequently on mainframes.

computer. Mainframe and minicomputers use

All mainframes and mini-computers, and

a terminal — a combination of a keyboard and

most PCs, have a hard disk or fixed disk (the

a cathode ray tube (CRT) — that is equipped

terms are synonymous) for mass storage. They

to communicate with the host computer

are generally not removable and have much

through one of its ports. Terminals are some¬

greater capacity and a faster data transfer rate

times referred to as dumb, because they cannot

than floppy disks. Fixed disks are reliable, but

run application programs independently from

they do fail, so some provision must be made

the host computer. PCs can act as dumb termi¬

for backing up files; that is making another

nals by running terminal emulation software.

copy of the files with another storage medium

Not all terminals have CRT displays. Some

such as floppy disks. Most mainframe and minicomputers are equipped with magnetic tape drives. Magnetic tape is an inexpensive storage medium that can easily be removed. It is used as an input/out¬

terminals have a printer integrated with the keyboard. Such devices are often called tele¬ typewriters. The market offers a variety of other input/output devices such as

put device in many computers, and is widely used on all types of computers to back up

• plotters to draw large and complex images;

fixed disk files.

• graphic pads to enable operators to enter sketches or even handwriting; • track ball devices and mice to move the cur¬

Operating System

sor quickly around the screen; • bar code readers to read universal product codes;

A computer’s operating system is a complex piece of software that brings the computer life and furnishes a collection of program functions that users and application programmers can

• scanners to convert graphic information to computer files; • optical character readers to convert text to computer files;

employ. For example, the operating system

• computer output microfilm devices to

contains input and output routines that relieve

prepare micrographics directly from the computer;

the programmer of the need to write complex instructions to store and retrieve data. The

• optical disks for inexpensive mass storage.

Chapter 17: Automating Your Office

137

Printers

wheels. Daisy wheel printers are incapable of printing graphics.

The market offers a bewildering array of print¬ ers, most of which are used for a somewhat

Ink jet printers have a versatility approaching that of laser printers but at a lower cost. The

narrow range of applications. Line printers are

printer squirts tiny drops of ink on the paper to

usually associated with mainframe and mini¬

form characters and graphics. Color images can

computers. They print a line at a time at high

be printed with different colored inks. Ink jet

speed. They print on fanfold paper with tractor

printers are equivalent in speed and often have

drive holes on the edges. They are intended for

better quality than dot matrix printers for

mass printing projects, such as bills, invoices,

about the same price.

and reports, where speed and ease of handling are more important than print quality. Line printers cannot print graphics, and they usually have a narrow range of type fonts. To change fonts you must change part of the print

Managing Personal Computers

mechanism. For medium- to high-quality draft printing,

Some managers assume that PCs are managed

the dot matrix printer is widely used. A dot

with the same techniques they would use for

matrix printer forms letters by hammering tiny

typewriters: Give them to the staff, show them

pins against a ribbon to impress the image on

the on/off switch, and call repair when they

the paper. Dot matrix printers can print a wide

fail. In fact, PCs require a great deal more

variety of type fonts and styles. They can also

management than that. Someone in the office

print graphics of reasonable quality. The higher

must understand how to load programs, re¬

the quality of dot matrix printers, the slower

cover from errors, set up printers, and perform

the printer, because the printer must strike the

other such administrative chores. If PCs are

paper more frequently to increase the density

connected to a LAN, they require even more

of the printed image. Laser printers have become the standard for

administrative effort.

letter quality printing and graphics in the of¬ fice. They produce a high-quality image at a

Setting PC Standards

high speed and low cost. You can obtain virtu¬ ally any type style by downloading the fonts

The PC market is exploding, and each month

from the application program to the printer.

brings new products that are bigger, better,

Laser printers can also integrate text and graph¬

faster, and more expensive. Some of your staff

ics with quality that approaches that of a typeset

members are undoubtedly computer literate

page. Daisy wheel printers also produce excellent

and have a preference for a particular type of

quality but at a much slower speed than lasers.

issue: There are Macintosh advocates and

A daisy wheel printer has the type characters

IBM-compatible advocates, and it takes effort

attached to tiny spokes that radiate from the

to make the two systems coexist effectively. The

hub of a wheel. The wheel rotates to the proper

first issue to address, therefore, is the type of

position, where a hammer strikes it against the

computer your office will use and for what

ribbon. Type fonts are changed by replacing

applications. It is possible to have more than

machine. Compatibility becomes a critical

138

OFFICE MANAGEMENT MADE SIMPLE

one type of computer in the office, but to do so

other programs cannot use added memory

is usually more expensive because of increased

even if it is present, because the disk operating

training, software, and maintenance costs.

system (DOS) supports only 640Kof memory.

A second major issue is the identification of application programs your company will stan¬

The amount of RAM provided should be tuned to the applications.

dardize. PC management is easier if everyone

Processor speed is another important consid¬

uses the same application programs. It is possi¬

eration. In both the Apple and IBM product

ble to transfer word processing, spreadsheet,

lines, processor speed has been upgraded in

and data base files between application pro¬

more recent models. As with other decisions in

grams, but it takes time; usually something gets

managing PCs, the type of processor should be

lost in the translation.

matched to the users’ requirements. Faster

To make application program standards

processors are almost universally preferable to

work effectively, you also need style standards.

slower ones, but most companies have added

Most programs today are so versatile that users

PCs over the years and, as a result, have a

can print them with any combination of fonts,

combination ranging from the slowest to the

spacing, margins, and graphics. If you lack

fastest processors. By setting these standards,

standards, the results may be unprofessional in

you can make effective use of older hardware

appearance. Many word processors and some

without inhibiting the users.

spreadsheets use style sheets, which are special files that control document styles. Hardware standards are equally important.

Office Automation Software

Most people prefer color monitors, but the results from inexpensive color monitors are

Office automation is a broad term that encom¬

poor, and high-quality color monitors are costly. Some application programs, such as

passes a wide variety of applications. In this section we will discuss the major office automa¬

computer-aided drafting, require high-quality

tion applications and offer suggestions on how

color monitors. Other programs, such as word

to select and apply them.

processing, need only monochrome monitors.

Word Processing. In most offices word

The amount of storage provided by the PC

processing is the primary application. A word

should be geared to the users’ needs. Hard

processing system is much more than simply a

disks, the standard storage method for most

powerful typewriter — it offers a great deal

PCs, have dropped dramatically in price over

more flexibility. The basic purpose of a word

the past few years, but they are still expensive.

processor is to capture keystrokes so they can

Establish standards of disk size and density

be reused without repeating them. Once text is

when using floppy disks. Both 3.5-inch and

keyed it can be rearranged, corrected, deleted,

5.25-inch disks are available, and both formats

copied, formatted, and otherwise reorganized

have high-density and low-density options.

to create documents that approach typeset

Limiting the alternatives makes it easier to ex¬

quality.

change disks and saves on supply costs.

Many companies find that the enhancements

The amount of main memory or RAM in

offered by word processing are equally as im¬

your computer is another important factor. A

portant as the ability to create and revise docu¬

program that permits multitasking on an IBM-

ments. Most word processors have the

compatible PC requires a lot of RAM. Many

following features that add to their usefulness.

Chapter 11: Automating Your Office

139

• Mail merge marries a name and address list

send and receive data across telephone lines.

from one file to information in another file to create form letters.

The modem converts the Os and Is of a binary

• Spelling and grammar checkers lend expert

that, to the telephone system, resemble the

assistance in this problematic area.

computer signal to a complex set of signals human voice. Telecommunications programs

• Graphics features permit users to enhance

make it easy for users to communicate by PC.

their documents with graphs and images and

Under instructions from the keyboard, the PC

to import tables and graphs from spreadsheets.

dials the telephone, logs into a remote com¬

• Mathematics functions enable users to create tables without die need for manual arithmetic.

puter, and exchanges data from its application programs.

• Ouriining functions permit users to create an

Many enhancements are being developed to

oudine and expand and collapse it to show

make it easier for users to communicate by

the desired degree of detail.

computer. People using correct application

• Windowing permits users to view more than

programs can exchange files and work interac¬

one document at a time and to copy and

tively over telephone lines. These applications are making it increasingly possible for people to

move information between files.

work at home. Telecommuting — the name Unlike typewriters, which are largely used by

the industry gives to working at home by com¬

secretaries, word processors are intended for

puter — has important social implications for

use by everyone in the office. Most managers

the office. The home office is convenient, and

do not need a wide range of features. For people who have keyboarding skills and would

it provides employment for some who would otherwise be out of the work force. On the

otherwise compose documents on paper and

negative side, however, telecommuting may

have them typed by someone else, the word

cause people to feel isolated from the human contact that is such a vital part of the office.

processor is a productive substitute.

Spreadsheets. The spreadsheet application

Telecommunications makes possible some of

first brought the PC to the attention of office

the most important functions in the office.

workers. Word processing in many companies

Facsimile has been so widely accepted that

was handled on centralized computers, but cre¬

there is no longer a question of whether an

ating spreadsheets was not a function that could be centralized or delegated to a secretary.

office needs one: It has become a business necessity. Presendy, facsimile documents are

Spreadsheet features have been gready enhanced

legible, but considerable quality is lost in trans¬

in recent years. Information can be exchanged

mission. New machines, known as Group 4

with word processors; multiple spreadsheets can

facsimile, are starting to enter the market.

be open simultaneously, and information can be

These machines have the speed and print qual¬

readily moved or copied among them; type styles

ity of the office laser printer.

can be selected, graphics can be imported, and

Some organizations make use of another

graphs can be plotted to enliven presentations

telecommunications technology: computer

that otherwise would be displayed in dreary rows

conferencing. Participants dial into a central

and columns of figures.

computer, where they can scroll through com¬

Telecommunications. In many offices

ments by others and add their own messages to

PCs need to communicate with the outside

the conference. The conference can either be

world. A modem is a device that enables PCs to

held in real time, where all participants are

140

OFFICE MANAGEMENT MADE SIMPLE

connected simultaneously, or it can be spread

occasional office use, PC-based graphics pro¬

over time with participants entering and leav¬

grams can produce impressive results. Most

ing the conference as they wish.

programs present the operator with a menu of

Electronic mail (E-mail) is a telecommunica¬

drawing tools that can be imported onto the

tions technology that promises to affect the lives

drawing surface. Lines and shapes of all kinds can

of most office workers. E-mail enables people to

be placed on the screen and stretched, twisted,

send messages between their terminals or PCs.

and rotated into the desired shape. Some pro¬

When the message cannot be delivered im¬

grams offer a library of images that can be trans¬

mediately, it is stored for future delivery. An

ferred to the drawing. All programs provide

E-mail program resides in a central computer

typefaces that can be used to label the drawing.

that is either privately owned by the company

Data Base Management Systems. A

that uses the service or publicly owned. Publicly

data base is any collection of information that

owned E-mail systems, such as AT&T Mail,

is stored in an organized fashion. The simplest

CompuServe’s Infoplex, and MCI Mail, are fur¬

data bases, which every office has, are name and

nished to the public as a utility.

address lists. More complex data bases may

E-mail services are either on line or accessed

contain inventories, parts lists, employee and

by dialing over the telephone system. On-line

customer records, and countless other files that

systems are the most convenient for users be¬

are found in most offices.

cause they are alerted immediately when a mes¬

The main thing that distinguishes a data base

sage arrives. Dial-up systems require users to

from other types of files is its structure. A data

dial into the system and log on to determine if

base normally has fields of information organ¬

they have messages.

ized in rows and columns, much like a

E-mail is very effective for fast communica¬

spreadsheet. Document files, by contrast, have

tion at moderate cost. If the document to be

a loose structure, with few defined fields and

transmitted is already stored in a computer, it

variable amounts of information in the body.

can easily be transmitted by E-mail. Docu¬

A data base management system (DBMS)

ments can be sent from a computer to an

is a computer program that provides tools for

E-mail bureau, where they can be reformatted

creating the data base and managing the flow

into facsimile form and transmitted to a facsim¬

of information in and out of it. The DBMS

ile machine.

typically has tools for generating input screens

Many companies are using a specialized form

and output reports. Most DBMSs can be linked

of E-mail known as electronic document inter¬

to a word processor to create form letters; some

change (EDI) to exchange business forms with

even include text editors that can be used to

their trading partners. EDI promises to grow

create form letters without a word processor.

rapidly in the next few years as companies replace paper bills, invoices, purchase orders, and other such business documents with electronic docu¬

Local Area Networks

ments that move quickly over a network.

Computer-Aided Graphics. In the hands

Every office has specialized equipment, such as

of a trained user, computers are capable of

printers or plotters, attached to one PC. People

creating graphics of excellent quality. For

share the equipment by copying a file to a

workers who create complex designs, special

floppy disk and taking it to the workstation that

terminals and workstations are needed. For

has the device attached, where the operator

Chapter 11: Automating Your Office

141

queues the jobs on floppy disk. For rush jobs,

obtain files from the larger computer and ma¬

the work in progress must be interrupted. Peo¬

nipulate them in their PCs, where the software

ple share files by passing floppy disks around

tends to be easier to use.

the office. Soon, no one is certain which disk contains the latest version of the file. Files are

Most offices that have more than a few PCs, and where the users share files and peripherals, should

easily lost, corrupted, and revised, and privacy

consider installing a LAN. It greatly improves the

and security are difficult to maintain.

users’ productivity and makes it possible to intro¬

LANs solve these problems by introducing discipline similar to that used in computer rooms.

duce greater security and file management dis¬ ciplines than floppy disks can provide.

A LAN consists of the following components: • a shared transmission medium that links all devices together;

LAN Management

• a file server that provides a high-capacity

LANs are reliable systems and rarely experi¬

hard disk that everyone can share;

ence hardware failures, but they must be ad¬

• a print server that provides access to shared

ministered by someone who has more than a

printers (print service may be provided by

passing acquaintance with computer technol¬

the file server);

ogy. After it is initially set up, a small LAN —

• network interface cards that plug in each PC

say, one with a dozen workstations, a file

and connect to the transmission medium;

server, and infrequent rearrangements —

• a network operating system that intercepts

should require only a few hours of adminis¬

commands to the PCs’ operating systems

tration each month. Larger LANs, with mul¬

and redirects them to the server.

tiple work groups and frequent changes, may require a full-time administrator. The

Not all networks have file and print servers.

administrator’s duties include

Some LANs, called peer-to-peer, permit PCs to communicate direcdy with one another. The

• managing network security;

workstation users can offer their disks and

• administering the rights of groups and indi¬

printers for sharing with others. On the surface,

viduals to access files and directories on the

a peer-to-peer LAN seems like an ideal arrange¬

file server;

ment. In practice, however, such a system calls

• handling trouble reports;

for more discipline on the part of the users,

• backing up files on the server;

who must keep their PCs running or files and

• adding and deleting users;

printers cannot be shared. If a PC hangs up just

• training network users;

when someone else is accessing it, files and

• managing software;

print jobs may be corrupted.

• administering shared disks, allocating file

A mainframe or a minicomputer can be con¬ nected to a LAN and then act as a file server. PCs can log onto the host computer by using

space and directories, and cleaning out obso¬ lete files; • administering shared printers.

terminal emulation software. Files easily can be transferred between devices if the right soft¬

A detailed discussion of network adminis¬

ware is running on the PC and the minicom¬

tration is beyond the scope of this book. Your

puter. Transferring makes it easier for users to

network vendor can train you or recommend

742 OFFICE MANAGEMENT MADE SIMPLE

classes that teach network administration

uses a network utility program to grant or

techniques.

revoke rights. Attributes are characteristics of files that per¬ mit the administrator to guard them more completely. For example, a hidden file is not

Network Security

listed when a user lists the files in a directory. A read-only attribute has the same effect in a file as

The first question most users ask about a net¬

read-write rights except that the attribute applies

work is “Can others read my private files?” All

to everyone, including the administrator.

good network operating systems provide secu¬

Security is one of the most important func¬

rity features that prevent unauthorized access.

tions the administrator has. If security is too

The network administrator structures the secu¬

loose the company risks the loss of important

rity system to meet the company’s objectives.

information. If it is too tight the network may

The primary tools are rights and attributes.

interfere with the users’ ability to function and

Rights describe the degree of freedom indi¬

may create extra work for the administrator.

vidual users or user groups have for accessing files and directories. Most networks provide the following restrictions.

Summary

1. Read-only. This restriction permits users

The personal computer has transformed the

to read files, but they cannot write, re¬

way office workers and managers think, work,

name, change, or delete them. This re¬

and act. The computer is no longer the exclu¬

striction is usually placed on shared

sive province of the computer professional; nor

programs and company master files for all

is it centralized in a detached word processing

but a select group of users.

center. Computers are finding their way to

2. Read-write. Some types of files, such as

every desk. For the price of yesterday’s electric

a budget record, are shared by users who

typewriter, companies can now purchase PCs

must add information. If users are limited

that are more powerful than yesterday’s main¬

to read-write they cannot rename or de¬

frames.

lete a file.

People are no longer used to enhance the

3. Change. This capability allows users to

function of the computer; we now use the

rename or otherwise alter files as well as

computer to help people work more effectively.

delete them.

Software will continue to improve as comput¬ ers grow more powerful and users become

Network operating systems provide several other restriction categories. The administrator

more demanding. All office managers must be prepared to adapt to the world of the PC.

CH.A PTER

TWELVE

Managing the Office Telephone System

KEY TERMS FOR THIS CHAPTER common carrier local exchange carriers (LECs) customer premises equipment (CPE) central office interoffice trunks exchange Local Access Transport Area (LATA)

interexchange carriers (IECS) private branch exchange (PBX) key telephone system (KTS) Centrex call coverage voice mail call accounting

automatic call distributor (ACD) grade of service busy hour traffic load hundreds of call seconds (CCS)

Office utilities are most effective when they do

need to involve themselves in the technical

not draw attention to themselves. No one no¬

details. A series of court decisions in the 1980s,

tices heat, lights, air conditioning, or the tele¬

designed to introduce competition into the

phone system until they fail to work; then they

telephone system, changed that. Now the of¬

become the focus of everyone’s attention. Util¬

fice telephone system must be managed as

ities such as light and heat are normally fur¬

closely as the office computer system; a job that

nished as part of the building and are managed

is often assigned to the office manager. Tele¬

under the lease agreement. The telephone sys¬

phone systems in some offices are complex, and

tem, however, is another matter. Some build¬

managing them requires knowledge that is be¬

ings offer a shared telephone service, but

yond the scope of this book; but most systems

usually the tenants supply their own. In the past, telephone companies furnished

can be managed by someone with a little tech¬

the entire service and relieved customers of the

terminology.

nical knowledge and an understanding of basic

144

OFFICE MANAGEMENT MADE SIMPLE

Overview of the Public Telephone System

The heart of the LEC’s serving plant is the central office. A central office is a computer that specializes in switching telephone calls. Every user has a unique telephone number

The public telephone system in the United

that consists of a three-digit area code, a

States is owned and maintained by a group of

three-digit central office code, and a four¬

companies, called common carriers, who offer

digit line number. This telephone number is,

to transport telecommunications services for a

to the telephone system, the address of each

fee. There are two major classifications of tele¬

station. When one station calls another, the

phone common carriers: local exchange careers

LEC switches a connection between the

and interexchange carriers.

stations. Stations are connected to the central office with twisted-pair wire that is identical to that used for office wiring, except that hundreds, even thousands, of pairs of wire are bundled in

Local Exchange Carriers

the same cable. The cables route through con¬ duits, are placed on poles, or are buried directly

Local exchange carriers (LECs) are the compa¬ nies most of us think of as “the telephone

in the earth between the customer’s premises and the central office.

company.” The LEC is granted a monopoly to

Each central office covers only a limited

furnish service in a particular franchised area,

geographic area. In a typical metropolitan

with most of their services regulated by local,

area, the LEC may have several central of¬

state, or federal authorities. The conditions

fices, each identified by unique three-digit

under which LECs offer service are described

codes. Calls are routed between offices over

in tariffs that are approved by regulatory au¬

interoffice trunks. Another division of LEC

thorities, Under the terms of the tariffs, LECs

territory is the exchange. An exchange is a

cannot bargain with their customers or offer

geographic region, usually a city and some

special discounts or incentives without regula¬

surrounding area, in which all services carry a

tory approval.

uniform tariff.

LECs are permitted to offer competitive

The next division, moving up the scale, is the

services through unregulated subsidiaries.

Local Access Transport Area (LATA). A

Most LECs have subsidiaries that offer cus¬

LATA is the area within which the LEC is

tomer premises equipment (CPE) — equip¬

permitted by law to carry long distance tele¬

ment that customers own and connect to the

phone calls and connect private circuits. Cir¬

telephone network. CPE includes all wiring,

cuits or telephone calls that cross the LATA

instruments and switching equipment on

boundaries must be carried by an inter¬

customer premises. Monopoly services are

exchange carrier. The more populous states are

those involved with delivering dial tone to

divided into multiple LATAs. Less populous

customers, setting up and switching calls

states, such as Wyoming and Alaska, have

within the franchised area, and furnishing

only one LATA, even though they are geo¬

the local exchange portion of private lines

graphically much larger than some other

and other special services, which we will

states. New Jersey has three LATAs because it

discuss later in this chapter.

is densely populated.

Chapter 12: Managing the Office Telephone System

145

TYPES OF LONG-DISTANCE TELEPHONE SERVICE Direct Dialing. This is the service you will get unless you specify to the IEC that you want something else. It is the most expensive service, but for users who do not place enough calls to justify the fixed monthly cost of other services, it is the best choice. The call duration is rounded up to next minute if the fraction is greater than 10 seconds; it is rounded down if the fraction is less than 10 seconds. For example, a 5-minute, 11-second call would be billed as 6 minutes, but a 5-minute, 9-second call would billed as 5 minutes. Wide Area Telephone Service (WATS). For years this was the only discounted long-distance service the carriers offered, and most people are familiar with it. The IEC extends private circuits, which carry a fixed monthly charge, from its point of presence to your premises. You can install as many WATS lines as you wish. Calls are billed in one-tenth minute increments, and are rounded to the nearest six seconds. Dial WATS. This service carries rates similar to WATS except that calls are carried over local telephone lines instead of dedicated lines. The IEC charges a fixed monthly fee regardless of the number of lines, and bills calls in one-tenth minute increments, rounded to the nearest six sec¬ onds. Most companies find this service more economical than WATS. T-1 Access Line. A T-1 line is a 24-channel service that runs from the lEC’s point of presence directly to the customer. T-1 service is intended for large users. It carries both incoming and out¬ going long-distance calls, and also can be used to carry the local exchange portion of private voice and data lines. The T-1 access line can also carry 800 calls. 800 Service. This service is like WATS except it is used for incoming calls only. Calls are billed to the called number. Business Line 800 Service. With this service, calls are billed to the called party over the regu¬ lar business line. This service is ideal for companies that do not have enough calls to justify the cost of an 800 line.

Interexchange Carriers

intraLATA calls to the IEC by dialing a carrier code of 10XXX, where XXX is the carrier’s

For local exchange service you usually have

unique code. For example, you can route calls

only one choice of common carrier; but inter¬

to AT&T by dialing 10288, to MCI by dialing

exchange service is competitive, and you have

10222, and to Sprint by dialing 10333.

many choices of interexchange carriers

When you order leased lines (such as data

(IECs). IECs may choose to provide service

circuits) that cross the LATA boundary, you

regionally, or they may be national carriers.

must contract with both the LEC and an IEC.

Regional carriers can accept switched calls for

There are often different LECs on opposite

any destination, but they usually do not market

ends of the circuit, requiring you to deal with a

private line services outside their serving area.

number of separate companies to order service

Each user must designate a preferred IEC.

or get the circuit repaired.

The LEC automatically routes interLATA calls

Although choosing the right IEC is import¬

to that carrier. In most states you can route

ant, it is more important to select the right

146

OFFICE MANAGEMENT MADE SIMPLE

service from your IEC. The types of long dis¬

which type of service is most effective for your

tance telephone service include direct dialing,

application.

Wide Area Telephone Service (WATS), Dial WATS, T-l Access Line, and 800 Service. Most IECs offer each of these types of long-distance

Key Telephone System

service under a trade name. IECs generally also offer 800 service, which is an economical way

Offices with as few as one or as many as 35 to

of reversing the billing on telephone calls.

50 users normally select KTS. The manager

Companies frequently contract for 800 lines to

decides how many telephone lines the office

entice potential customers to call at the

needs and how many station users the office has

company’s expense. Calls made on 800 lines

or will expand to include. The capacity of KTS

are much cheaper than collect calls. Many com¬

is usually expressed as a combination of how

panies also use 800 numbers to eliminate credit

many lines and stations it will support. For

card calls from the field back to the home

example, a 16 x 48 system would permit as

office. The IECs levy a substantial surcharge

many as 48 users to share up to 16 lines. When

for both collect and credit card calls, which may

the system is filled to capacity it will provide

quickly justify the cost of an 800 number.

one line for each three users. You don’t need to equip the system for its full capacity, however. Initially, the office might be only half that size,

Types of Telephone Systems

so you could purchase a system with 16 x 48 capacity, but equip it with ports for only 8 lines

Your office will be equipped with one of three

and 24 stations.

types of telephone systems: a private branch

In a KTS, users select outgoing lines by pressing a line button. A typical telephone

exchange, a key telephone system, or Centrex. The private branch exchange (PBX) and

would have a button for each line. When the

the key telephone system (KTS) are based on

user pushes the button, the telephone system

the principle of sharing telephone lines among

connects the user to a line. When the line is in

users. Telephone lines are expensive, and since

use, the button is illuminated with a steady

only some of the users are on the telephone at

light. The more buttons there are, the larger

the same time, the cost can be reduced by

the telephone set must be, so the ultimate size

providing switching equipment that permits

of the system is limited by the physical size of

people to share lines. Most users of either PBX

the telephone set.

or KTS will be provided proprietary telephone

Incoming calls cause the line button to flash

sets. The proprietary telephone instruments

at a particular rate, and the call is answered by

contain circuity that carries on a dialog with the

pressing the line button. If the office has an

central control unit to activate the system fea¬

attendant who screens all calls, he or she either

tures with the press of a button. In many ex¬

puts the call on hold and announces it to the

changes, the LEC offers a third type of

station over an intercom or transfers the call

telephone system called Centrex, in which all

directly to the station. A line on hold is indi¬

switching takes place on the LEC’s premises.

cated by a rapidly flashing lamp.

Each of the three services has an ideal range

Key telephone systems have many features

of applications. There is overlap between the

that make them handy to use. Some of the

applications, but it will probably be apparent

most important are

Chapter 12: Managing the Office Telephone System

147

• speed dial buttons to reach a personal direc¬ tory of frequently called numbers;

ple, if the station is busy the attendant can

• a button to redial the last number dialed;

cally when the user hangs up.

• hands-free intercom among stations; • a conferencing feature to tie lines together.

camp on a call so it rings a station automati¬ • Call coverage. Other stations, voice mail, or the attendant can be designated by the user to receive calls when the user is on the tele¬

KTS reaches a particular limit at around 35 to 50 users. With too many users, the tele¬ phone sets reach an unwieldy size because they have too many buttons. In addition, the recep¬ tionist may receive too many incoming calls to

phone or unable to answer. • Call forwarding. Users can send their calls to another location. • Direct Inward Dialing (DID). Users can have a private seven-digit telephone number

be able to announce them efficiently to the station users.

so they can be called directly from outside

Many manufacturers make KTSs that are

central office passes the dialed number to the

larger than the 50-line limit, but they are con¬

PBX. DID reduces the load on the console

figured as hybrids which are discussed in the

attendant and permits users to receive calls

next section.

outside working hours.

the PBX. When a DID number is dialed, the

The above list is only a sample of the features

Private Branch Exchanges

that modern PBXs offer. If users know how to

Larger offices fill their telephone needs with a

operate the features, they can greatly improve their productivity. As office manager, however,

PBX. Outside telephone lines no longer appear

you will find it far more efficient to teach users

on the instruments. Instead, each user is as¬ signed an extension off the PBX. Users reach

why to use the features because once they understand why, they will quickly learn how.

one another by dialing extension numbers;

In the last section we briefly mentioned Hy¬

they reach outside lines by dialing a digit such

brids, which are crosses between PBXs and

as 9, which causes the PBX to select an idle line

KTSs. Hybrids offer some features of each type

from its pool and switch it to the station.

of system. At a minimum, most hybrids provide

PBXs offer many features that KTSs do not provide.

dial-9 access to local lines, limited least-cost routing capability, some attendant features, and limited call coverage capability. Hybrids are

• Least cost routing. This permits the user to place long distance calls without concern about which service is the least expensive.

often cost effective for organizations for which KTS is too limiting, but for which the cost of a PBX cannot be justified.

• Station restrictions. The administrator can establish several classes of service and limit their ability to place long distance calls. For

Centrex

example, a reception room telephone might be restricted to local calls.

Centrex service has many of the characteristics

• Attendant features. The console attendant is

of a PBX built into the LEC’s central office.

given many features to enhance the efficiency

Centrex is not available from all central offices,

of transferring calls to extensions. For exam¬

so these guidelines for its use do not apply

148 OFFICE MANAGEMENT MADE SIMPLE

everywhere. LECs offer two types of Centrex service: digital and analog. Digital Centrex supports proprietary telephone instruments that permit users to push a button to activate features much as they operate in a PBX. Analog Centrex operates from dialing codes. For ex¬ ample, to put a call on hold a user might depress the switch hook momentarily to get second dial tone and dial a code such as *7. Special telephone sets or KTSs can be pro¬ grammed to dial the codes with buttons. Centrex has several advantages over PBX service. • The initial investment is lower. The customer purchases the telephone sets, but the LEC owns the rest. • Centrex requires litde or no floor space. • All the power is furnished by the LEC. Not only does this reduce electric and air condi¬ tioning bills, it also assures service continuity during power outages. • Reliability of the service is higher than with a PBX. • Maintenance of everything but the tele¬ phones is included in the monthly rate.

features, such as least-cost routing, that are included in the price of the PBX. These features may not be as easy to use, particularly in the case of analog Centrex.

Improving Telephone Effectiveness Modern PBXs are specialized computers. Many of them operate from microprocessors like those that form the heart of the central process¬ ing unit (CPU) in a personal computer (PC). PBXs operate under the control of a special applications program, usually called a generic program, that contains the call processing logic. The PBX has enough flexibility that it can perform many functions to increase the effectiveness of your office. Earlier in this chap¬ ter we discussed features of the PBX. In this section we will discuss other capabilities that are either part of the PBX’s generic program or add-on functions require separate processors.

Call Coverage Centrex lends itself naturally to some appli¬ cations. Any company that has multiple small offices served by the same central office can tie them together easily through Centrex. For ex¬ ample, a real estate company with a handful of people in several different locations could op¬ erate the telephone system as if everyone were in the same office. School districts often find that Centrex is a convenient way to bring a single telephone system to all locations. Do not assume from these advantages that Centrex is always more desirable than a PBX. First, Centrex usually costs more. It is often less expensive to purchase a PBX on a five-year payment schedule than to contract for Centrex. Second, many LECs charge a monthly fee for

All modern PBXs provide some method of per¬ mitting one user or a group of users to cover the telephones of others when they are on the tele¬ phone or away from the office. Call coverage features permit the telephone administrator to program a coverage path for every user. The coverage station can be a secretarial position, voice mail, or the console attendant. Users who regularly cover the telephone for several other users, some of whom may be in another part of the office, should have alphanumeric displays on the telephone. The display shows the extension number or name for whom the call was origi¬ nally intended, and a code such as BY for busy, to show why the call was forwarded to another

Chapter 12: Managing the Office Telephone System

149

CALL COVERAGE FEATURES Call Pickup. This feature permits users to press a button to pick up calls that are ringing on another telephone. Stations that can pick up calls for one another are assigned to a pool known as a pickup group. Call Forwarding. This feature enables users to press a button to send calls to another station. Some systems support call forwarding outside the PBX. For example, a user could forward calls to a cellular telephone or an outside answering service. Call Forwarding Busy Line. When a user is on the telephone, calls automatically jump to a designated answering position. Call Forwarding Don’t Answer. When the called person is away from the desk and does not answer the telephone, the call automatically forwards to another position after a given number of rings, usually three or four. Do Not Disturb. When this button is pressed, calls automatically jump to the answering posi¬ tion without ringing at the called party’s telephone. Display Telephones. An alphanumeric display on a telephone shows information about the in¬ coming call. For example, a person at a coverage position can tell whose telephone he or she is answering and why the call was not answered at the called telephone. Many systems have a data base to associate the called party’s extension with a name that is displayed on the telephone.

telephone. By using well-designed coverage

user returns. The call is retrieved at the press of

paths, outside callers receive an impression of a

a button.

smoothly operating office.

The key to maximizing the effectiveness of voice mail is to understand why it is needed. Many people visualize voice mail as a telephone

Voice Mail

answering machine. This is as limiting as think¬ ing of a word processor as a typewriter. Voice

Voice mail is a relatively new innovation for

mail can answer the telephone, but that is not

improving office productivity. A voice mail sys¬

its primary productivity-improving advantage.

tem consists of a processor and fixed disk that

The main advantage of voice mail is that it

connect to the PBX and are under the control

permits two-way communication between peo¬

of a special program. Users can forward their

ple without simultaneous telephone contact.

telephones to voice mail, either directly or

As with most other office technologies, voice

through a coverage path. The voice mail an¬

mail requires the user to make a change in behav¬

swers the telephone, usually with a personal

ior. As office manager, it is important that you

greeting, and prompts the caller to leave a

understand why and if people need voice mail. The

message. By pressing a particular code combi¬

most common reasons, in addition to die ones we have already stated, include the following.

nation, the caller can exit from the voice mail system and transfer to a personal attendant. If the caller leaves a message, the message waiting light on the telephone is illuminated when the

• User can send and receive messages outside working hours and across time zones.

150 OFFICE MANAGEMENT MADE SIMPLE

• Time is saved by eliminating the small talk John Black

that usually accompanies telephone calls. • Messages can be retrieved from a push but¬ ton telephone in any location without both¬

Karen White Dentist

8:00

ering a secretary. • By changing their personal greetings fre¬

9:00

quently, users can keep their coworkers in¬ formed about where they are and when they will return.

10:00

Staff Meeting

11:00

• Voice mail permits users to leave messages that are more concise and accurate than

12:00 Lunch

those conveyed through a secretary. • Users can respond or forward or broad¬ cast massages to others with a minimum of difficulty.

Appointment 2:00 Visit 3:00

Case: Using Voice Mail to Communicate When Schedules Conflict

Lunch

1:00

Shop Floor

4:00 Facilities 5:00

Meeting

John Black needs to discuss plans for next year’s budget with Karen White, who is in another city. It will take only a five-minute

Figure 12.1: Why Office Workers Play Telephone Tag

phone call because he wants to pass her some forecast data and get her ideas on the impact of the data on her budget. As Figure 12.1 shows,

With voice mail, John calls at 8:00 A.M.

both managers have unscheduled time during

Karen is at the dentist, so he leaves the follow¬

the day, but the only times they are available to

ing message.

talk on the telephone are a 30-minute period

“Karen, this is John. I want give you the

from 11:00 A.M. to 11:30 A.M. and another

following information about next year’s bud¬

15-minute period from 3:45 P.M. to 4:00 P.M.

get. We assume that salaries will increase eight

Without voice mail, the two would most

percent. We think supply costs will go up five

likely engage in a game of telephone tag. John

percent, and we’re expecting a ten percent

calls Karen at 8:00 A.M., discovers that she has

increase in utility costs. Can you let me know

a dental appointment, and leaves a callback

before noon what impact this will have on your

message. Karen returns the call while John is in

department’s bottom line? I’ll be in a staff

his staff meeting, and tells him that she will be

meeting until eleven o’clock and I’m leaving

free all morning. When he returns her call after

for an early lunch at eleven thirty, so if I’m not

the meeting, she is on the telephone. The day

in, just leave a message on my voice mail.”

ends without the two finding a mutually con¬ venient time for a five-minute call.

When Karen returns from the dentist at 9:00 A.M., she finds the message light blinking on

Chapter 12: Managing the Office Telephone System

her telephone. She retrieves the message, and

151

calls one of her analysts to enter the figures into

usage can be summarized by organizational unit for allocating cost. Call accounting systems

the budget model, which is in a spreadsheet.

can produce a variety of other reports such as

The analyst is out for a few minutes, so Karen

frequently called number lists, long-duration or

forwards the voice mail message into her voice

short-duration calls, and calls placed outside nor¬

mailbox with a short message: “Joan, will you

mal working hours, which might indicate unau¬

handle this please, and have a new figure on my

thorized use of long distance service.

desk by eleven o’clock?”

A major reason that many companies pur¬

When Karen returns John’s call at 11:00

chase call accounting systems is to control un¬

A.M., she learns that he isn’t available because

his staff meeting is running longer than ex¬

authorized usage. Without such a system it is difficult or impossible to determine who placed

pected. She leaves the following message.

long distance calls. A second reason for using

“John, Karen returning your call. Thanks for the figures.

I plugged them into our

spreadsheet and found that it will increase our

call accounting is to distribute costs among organizational units and to enable the company to budget telephone costs by organization.

budget by $28,000. If you want to look at my assumptions, they’re stored in the file server under a file named KB/BUDGET.WK1.” A two-way, nonsimultaneous conversation

Automatic Call Distribution

over voice mail sometimes takes longer than it would to talk to the other person over the

Any organization that receives calls to a com¬

telephone, but the pace of work in most offices

mon group of service positions can benefit

keeps people away from the desk a great deal of nicate despite schedules that do not permit a

from an automatic call distributor (ACD). When a call arrives, if there are agents (users staffing the service positions) available to ser¬

simultaneous discussion.

vice the call, the ACD routes the call to the

the time. Voice mail permits them to commu¬

least-busy agent. When all agents are occupied, the ACD answers the call with a recording to

Call Accounting Systems

inform the caller that the first available agent will handle the call. The call then enters a

A call accounting system is an add-on to most

queue, and the caller hears music or a recorded

PBXs and many KTSs. Most call accounting

message. If the waiting time exceeds a prede¬

systems run in a PC that is connected to a port on the PBX. Call details are forwarded from the

termined interval, a second message is played. The caller may be given the option of leaving a

PBX to the PC. The PC identifies the station

message on voice mail. The ACD sends calls to

that placed it, registers the called city and state

agents based on priority, which is usually on a

from the telephone number, and calculates the

first-come, first-served basis. Besides answering and queuing calls, an

cost. At the end of the processing period, the call

ACD provides numerous reports that manag¬

accounting system produces a variety of re¬

ers can use to administer the business more

ports. The basic report is a long distance state¬

effectively. An ACD typically tells a manager information such as:

ment for each station. The amount and cost of

152 OFFICE MANAGEMENT MADE SIMPLE

Grade of Service

Lines

Grade of Service P.01

P.03

P.05

P.10

Lines

CCS

CCS

CCS

CCS

4

26

611

698

754

860

P.01

P.03

P.05

P.10

CCS

CCS

CCS

CCS

1

0.4

1.1

1.8

2

5.4

10.1

13.7

21.6

27

641

731

788

898

3

16.6

26.9

32.4

45.7

28

671

764

823

936

4

31.3

45.4

54.7

73.8

29

702

797

858

974

5

49

67.7

79.9

104

30

732

830

893

1012

6

68.8

91.4

107

135

31

763

864

928

1050

7

90

117

135

168

32

794

897

963

1088

8

113

144

163

202

33

825

930

998

1127

9

136

171

193

236

34

856

964

1033

1165

10

161

199

224

270

35

887

998

1068

1203

11

186

228

255

306

36

918

1031

1104

1232

12

212

257

286

341

37

950

1065

1139

1281

13

238

287

318

377

38

981

1098

1175

1319

14

265

317

350

413

39

1013

1132

1210

1358

15

292

347

383

339

40

1044

1166

1246

1396

16

319

378

415

486

41

1076

1200

1281

1435

17

347

409

449

523

42

1108

1234

1317

1474

18

376

441

482

560

43

1140

1269

1353

1512

19

404

472

515

597

44

1171

1303

1388

1551

20

433

504

549

634

45

1203

1336

1424

1590

21

462

536

583

671

46

1236

1372

1459

1629

22

491

568

617

709

47

1268

1406

1495

1668

23

521

600

651

748

48

1300

1440

1531

1706

24

550

633

685

784

49

1332

1475

1567

1745

25

580

665

720

822

50

1364

1509

1603

1784

Table 12.1: Erlang B Traffic Tables

• how long each agent spends handling calls,

• the work load by the hour or by the day.

waiting for calls, or being unavailable for calls;

A manager can determine whether the

• how many callers hang up before they are served;

group is meeting its cost and service objec¬

• how long callers wait in queue before being

tives using information produced by an ACD.

put through to an agent;

The information permits the manager to

Chapter 12: Managing the Office Telephone System

Gr£ide of Ser\'ice

153

Griade of Senrice

P.01

P.03

P.05

P.10

Lines

CCS

CCS

CCS

CCS

51

1397

1544

1638

52

1429

1580

53

1462

54

P.01

P.03

P.05

P.10

Lines

CCS

CCS

CCS

CCS

1822

76

2221

2419

2549

2801

1674

1861

77

2254

2452

2585

2840

1613

1710

1901

78

2286

2488

2621

2880

1494

1649

1746

1940

79

2318

2524

2657

2920

55

1526

1681

1782

1980

80

2354

2560

2693

2959

56

1559

1717

1818

2020

81

2387

2596

2729

2999

57

1591

1753

1854

2056

82

2419

2628

2768

3038

58

1624

1786

1894

2095

83

2455

2664

2804

3078

59

1656

1822

1930

2135

84

2488

2700

2840

3118

60

1688

1858

1966

2174

85

2520

2736

2876

3157

61

1724

1890

2002

2214

86

2552

2772

2912

3197

62

1757

1926

2038

2254

87

2588

2808

2952

3236

63

1789

1962

2074

2293

88

2621

2840

2988

3276

64

1822

1994

2110

2333

89

2653

2876

3024

3316

65

1854

2030

2146

2369

90

2689

2912

3060

3352

66

1886

2066

2182

2408

91

2722

2948

3096

3391

67

1992

2102

2218

2448

92

2758

2984

3136

3431

68

1955

2135

2254

2448

93

2790

3020

3172

3470

69

1987

2171

2293

2527

94

2822

3056

3208

3510

70

2020

2207

2329

2567

95

2858

3092

3244

3550

71

2052

2243

2365

2606

96

2891

3125

3280

3589

72

2088

2275

2401

2646

97

2923

3161

3319

3629

73

2120

2311

2437

2686

98

2959

3197

3355

3668

74

2153

2347

2473

2722

99

2992

3233

3391

3708

75

2185

2383

2509

2761

100

3028

3269

3427

3748

Table 12.1: Erlang B Traffic Tables

schedule and size the work force. Based on

Data Applications

call-handling statistics, managers can tell which of their people need additional training

Digital PBXs are capable of switching both voice

or assistance in handling different types of

and data. In some PBXs station users can send

calls.

data at the same time they are carrying on a voice

754 OFFICE MANAGEMENT MADE SIMPLE

session. A terminal or PC can be connected to

Busy hour is the hour during the day when

an interface jack on the telephone set. The PBX

usage is at its highest. The volume of calls

can permit users to share ports on a computer

varies during the day in any organization. As

or access a feature such as modem pooling. A modem pool is a method of enabling users who

people settle in for the work day, telephone usage begins to increase, and, in most offices,

frequently use dial-up data to share a group of

reaches a peak about 10:00 A.M. The load

modems. A user needing to place a data call

drops as people leave for lunch and peaks again

dials into the modem pool, attaches a modem,

in the afternoon.

and dials out as if the modem were attached permanendy to his or her computer.

Traffic load is the number of hundreds of call seconds (abbreviated as CCS) that a group of lines can carry. For example, assume you have 100 users in the office, and they

Balancing Telephone Costs and Service

each average 220 seconds of outgoing calls during the busy hour, which is a little less than four minutes. Divide the 220 seconds by 100 to covert to CCS, which amounts to 2.2

The telephone lines in your office are shared

CCS per user. Since you have 100 users, the

among all users. Since users are not all on the

total load is 2.2 CCS x 100 users, or

telephone at the same time, the number of lines

220 CCS.

is some fraction of die number of users. Your

By using the traffic table shown in Table

task as system manager is to determine how

12.1, you can determine how many lines are

many lines to provide. If you have too few,

needed to achieve an objective level service.

customers will encounter busy signals when

Suppose the objective is to have no more than

dialing in, and users will be unable to dial out.

1 percent blockage with the 220 CCS load we

The penalty is lost business and reduced pro¬

determined previously. Place your finger at the

ductivity. On the other hand, too many lines

top of the .01 column and run down the col¬

will drive costs up.

umn of figures until you find a number that is equal to or greater than 220. The answer, in this case, is 13 lines.

Telephone Traffic Terms

At this point you are no doubt wondering where the number of CCS comes from. Figure

Fortunately, it is not difficult to determine the

12.2 shows the traffic statistics from an AT&T

optimum number of lines in most modern PBXs.

Definity PBX, which reports the CCS during

To do so you need to understand three terms:

the peak hour of the day. Not all PBXs print the

grade of service, busy hour, and traffic load.

peak hour. Some print the results every hour so

Grade of service is the probability that an

you must find the peak manually. Most PBXs

incoming or outgoing call will be blocked be¬

accumulate traffic usage every hour. Ask your

cause all lines are busy. The probability is ex¬

technician to print the statistics every hour for

pressed as a percentage of blocked calls. For

a week or show you how to do it. It’s a good

example, a P.01 grade of service is 1 percent

idea to collect traffic data for a full week at least

blockage, meaning one call out of 100 will be

once per quarter. The information you obtain

blocked. Most companies have an objective of

gives you an easy method of keeping cost and

P.01 to P.05 grade of service.

service in balance.

Chapter 12: Managing the Office Telephone System

155

TRUNK GROUP MEASUREMENTS List Measurements Trunk-group Last-hour Peak Hour For All Trunk Groups: 1200 -1300 Grp

Grp

Grp

Grp

Meas Total

Total

Inc.

Grp

Que

Calls

No.

Size

Type

Dir

Hour

Usage Calls

Call

Ovfl

Size

1

23

CO

two

1300

656

323

170

17

2

2

fx

inc

1300

24

70

70

3

7

fx

out

1300

143

48

4

4

WATS out

1300

73

81

Que

Que

Out

%

%Out

Qued Ovf

Abd

Serv

Abd

BLK

0

0

0

0

0

2

0

0

0

0

0

0

0

0

0

0

7

2

6

1

1

1

0

0

0

5

1

0

0

0

0

0

0

Note: The usage in CCS is shown in the Total Usage Column. The last two columns show the percentage of time that all trunks were busy (% ATB) and the percentage of outgoing blockage (% Out BLK). Both of these are important service measurements. From James H. Green, The Dow Jones-lrwin Handbook of Telecommunications Management (Homewood, IL.: Dow Jones-lrwin, 1989), 451. Reprinted by per¬ mission of the author.

Figure 12.2: Trunk Group Measurements from an AT&T Definity PBX

Checking Service With Key Telephone Systems

as manager in charge of the system, there are

What if you have a key telephone system that

gate them to someone else.

other tasks you should perform regularly. Many of these are simple enough that you can dele¬

usually does not produce traffic statistics?

Review Bills. Telecommunications bills, like

There are two good ways of determining the

all bills in the office, require regular review.

level of service. One way is to ask the LEC to

Examine the bills for the following.

monitor usage on the line for a week. (They may have a charge for the service.) The second

• Are all charges fully explained and in line

way is to have someone do a busy line tally.

with services you have ordered during the

Assign someone, such as the receptionist, to

past month?

count the number of busy (or idle) lines every

• Divide the cost of long distance calls by the

10 or 15 minutes. The busy lines are quickly

number of minutes. Is the cost close to pre¬

identified by the lamp buttons. If the person doing the count is alerted by a timer and writes down a number at regular intervals, you can quickly determine how often all lines are busy and decide whether or not to add more lines.

vious months? • Are credit card calls reasonable? Is the vol¬ ume in keeping with other monthly averages? (A sudden increase in usage indicate that someone is fraudulently using your credit card number.)

Other Telephone System Management Functions Although keeping cost and service in balance is one of the most important functions you have

Log Reported Troubles. When users report trouble, you first should attempt to resolve it yourself by determining whedier the system is being used correcdy. Many troubles are cleared by providing instructions or asking a few questions.

156 OFFICE MANAGEMENT MADE SIMPLE

BALANCING COST AND SERVICE

Marla Jacobsen is office manager at the headquarters of Prestige Savings and Loan. Part of her job is to manage the office telephone system, which is a PBX. The system has 22 central of¬ fice lines and 12 direct inward dial lines, which callers use to dial station numbers directly without going through the console attendant. There are also tie lines, which are private voice lines con¬ necting headquarters to three other branches. The tie lines are used for calls between branches and between branches and headquarters. Marla showed a clerk how to collect the peak-hour statistics daily for a week from the PBX’s management terminal. When she had a week’s worth of data, Marla averaged the daily peaks and entered the results in the following table. GROUP

1 2

3 4

5

TYPE

CO DID Tie Tie Tie

QUANTITY

CAPACITY

MEASURED

GRADE OF SVC.

REQ’D

22

491.0

533

2%

24

12

212.0

201