Importance of the Office

Subject: Accountancy

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Overview

The office of an organization is the most important unit. It is regarded as the main spring of a watch and steering of a car. It is equally important to a government unit, business organization as well as service motive organization. This note provides the information about importance of office and formation of office.
Importance of the Office

The office of an organization is the most important unit. It is regarded as the mainspring of a watch and steering of a car. It is equally important to a government unit, the business organization as well as service motive organization. It essential to perform a number of administrative as well as clerical functions in the process of achieving the organizational objectives. There is some importance of the office, they are:

  1. Planning and decision-making center: The office formulates various types of plans and policies regarding production, sales, cost, profit, and loss. It makes different types of the decision like changing the amount of capital, objectives, rules and regulations of the office.
  2. Coordinating and communicating center: The office is important due to its coordination and communication functions. It links the activities of different persons and department and directs them towards the attainment of organizational goals. It passes useful information to the staff and departments inside the organization and to the concerned parties outside the organization as per their requirements.
  3. Controlling center: The office is regarded as the controlling center of the organization. It supervises and evaluates the performance of different staff and departments. It compares the actual performance of different staff and departments with the standard performance and takes corrective action to minimize the variations in future.
  4. Public relation center: The office maintains good public relation for operating its business successfully and increasing the goodwill of the organization. It provides accurate and reliable to all the concerned parties as per their requirements. It provides better services to customers, suppliers, lenders, owners, competitors and government in order to maintain good relation with them.
  5. Proof of existence: The office is the proof of the existence of an organization. It gives the identity of the organization. It gives evidence that the organization is operating its business in the society.
  6. Record center: The office is considered as a storehouse of information. It records important and useful information for future reference. It maintains a systematic record of information and documents in files, books of accounts, computer, etc.
  7. Service center: The office is regarded as a service center of an organization. It provides necessary materials and information to the employees and departments increase the efficiency of employees and department.

Formation of Office

Every organization forms an office to perform its activities in an efficient manner for achieving the organizational goals. Nature, size and duration of the office depend upon the volume of activities and objectives of the organization. The organization which has limited human and other resources forms a small sized office. Similarly, the organization which has the objectives of producing and distributing good and services over a long period of time from a permanent office.

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  • Permanent office

    A permanent office is also known as the long term office. It is established for the production and distribution of goods and services over a long period of time. Its activities are not time bounded and its objectives are not sought within the specified time frame. Usually, the size of the permanent office is large with a large number of employees, a huge amount of capital and assets. Its files and transactions are voluminous. Ministries, departments, public enterprises, joint stock company, hospital, school, etc. from the permanent offices for operating their activities.

  • Temporary office

    The temporary office is also known as short term office. It is established with the objectives of producing and distributing goods and services over a short period of time or completing a particular job within a specific number of employees, a small amount of capital and assets. Its transactions are limited. Such office can be as follows:

    1. Temporary office for completing a particular job: It is such type of temporary office which is established for the completion of a specific job. After the completion of such specified job, the office is automatically closed. The office formed for constructing building, canal, road, bridge is some examples of the temporary office.
    2. Temporary office for a specific period: It is such type of temporary office which is established for the specific period of time. After the expiry of such specific duration, the office is automatically closed. Hence, such office exists till the period exists. The offices are formed for conducting seminar; workshop and training are some of the examples of such temporary office. The office of different commissions established for investing and reporting about different incidents within specified time frame are other examples of such office.

A temporary office is one which is completing a particular job or producing and distributing goods and services for a specific period of time.

Things to remember
  • The office of an organization is the most important unit. It is regarded as the mainspring of a watch and steering of a car. 
  • It essential to perform a number of administrative as well as clerical functions in the process of achieving the organizational objectives. 
  • It includes every relationship which established among the people.
  • There can be more than one community in a society. Community smaller than society.
  • It is a network of social relationships which cannot see or touched.
  • common interests and common objectives are not necessary for society.
Questions and Answers

The office of an organization is the most important unit. It is regarded as the mainspring of a watch and steering of a car. It is equally important to a government unit, business organization as well as service motive organization. It essential to perform a number of administrative as well as clerical functions in the process of achieving the organizational objectives. There is some importance of the office, they are:

  1. Planning and decision-making center: The office formulates various types of plans and policies regarding production, sales, cost, profit, and loss. It makes different types of the decision like changing the amount of capital, objectives, rules and regulations of the office.
  2. Coordinating and communicating center: The office is important due to its coordination and communication functions. It links the activities of different persons and department and directs them towards the attainment of organizational goals. It passes useful information to the staff and departments inside the organization and to the concerned parties outside the organization as per their requirements.
  3. Controlling center: The office is regarded as the controlling center of the organization. It supervises and evaluates the performance of different staff and departments. It compares the actual performance of different staff and departments with the standard performance and takes corrective action to minimize the variations in future.
  4. Public relation center: The office maintains good public relation for operating its business successfully and increasing the goodwill of the organization. It provides accurate and reliable to all the concerned parties as per their requirements. It provides better services to customers, suppliers, lenders, owners, competitors and government in order to maintain good relation with them.
  5. Proof of existence: The office is the proof of the existence of an organization. It gives the identity of the organization. It gives evidence that the organization is operating its business in the society.
  6. Record center: The office is considered as a storehouse of information. It records important and useful information for future reference. It maintains a systematic record of information and documents in files, books of accounts, computer, etc.
  7. Service center: The office is regarded as a service center of an organization. It provides necessary materials and information to the employees and departments increase the efficiency of employees and department.

The act of establishing an office to perform all the administrative as well as clerical activities of an organization either permanently or temporarily is known as formation of the office.Every organization forms an office to perform its activities in an efficient manner for achieving the organizational goals. The nature of business, size and duration of the office depend upon the volume of activities and objectives of the organization. The organization which has limited human and other resources forms a small sized office. An organization which has the objectives of producing and distributing good and services over a long period of time forms a permanent office. Similarly the organization which has the objectives of producing and distributing goods and services over a short period of time or completing a particular job within a specific period of time required to form a temporary office.

permanent office:

A permanent office is also known as the long term office. It is established for the production and distribution of goods and services over a long period of time. Its activities are not time bounded and its objectives are not sought within the specified time frame. Usually, the size of the permanent office is large with a large number of employees, a huge amount of capital and assets. Its files and transactions are voluminous. Ministries, departments, public enterprises, joint stock company, hospital, school, etc. from the permanent offices for operating their activities.

Temporary office:

The temporary office is also known as short term office. It is established with the objectives of producing and distributing goods and services over a short period of time or completing a particular job within a specific number of employees, a small amount of capital and assets. Its transactions are limited. Such office can be as follows:

  1. Temporary office for completing a particular job: It is such type of temporary office which is established for the completion of a specific job. After the completion of such completion of the specified job, the office is automatically closed. The office formed for constructing building, cannel, road, bridge is some examples of the temporary office.
  2. Temporary office for a specific period: It is such type of temporary office which is established for the specific period of time. After the expiry of such specific duration, the office is automatically closed. Hence, such office exists till the period exists. The offices are formed for conducting seminar; workshop and training are some of the examples of such temporary office. The office of different commissions established for investing and reporting about different incidents within specified time frame are other examples of such office.

A temporary office is one which is completing a particular job or producing and distributing goods and services for a specific period of time.

A permanent office is also known as the long term office. It is established for the production and distribution of goods and services over a long period of time.

The following are the importance of office: -

  1. Planning and decision making center
  2. Co-ordinating and communicating center
  3. Controlling center
  4. Public relation center
  5. Proof of existence
  6. Record center
  7. Service center
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