Concept, Importance, Types, Principle and Retention of Record management

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Concept of Record Management

Record management is the combination of record and management. The record is written matter which is prescribed for future reference and management is related to the way or the technique which are used to manage the different types of records. Therefore, record management is the management and control of records. Letters, invoices, cheques, vouchers, price lists, personnel records, tax records, costing records are the examples of records.

According to Little Field, "Record management broadly defined,includes forms, reproduction of written materials, filing records, retention, microfilms and related services."

According to S.P Arora, "Record management in its broadest sense concerns itself with the records creation, distribution, maintenance, retention, preservation, retrieval, and disposal."

According to J.C. Denyer, "Modern record management involves much more than the methods of the filing or the system of classification , important though these are: indexing, central filing, records retention, follow-up and micro photography, all these receive attention in the present day office."

In conclusion, record management is the systematic process of collecting, utilizing, preserving and disposing of the record of the office.

Importance of Record Management

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source:slideplayer.com

Record management is important for all types of office. Some of the importance of the record management are as follow:

  • Helpful to make progress report:

Record management helps to make progress report of an organization. It helps to record by writing and preserving various papers, letters, and documents, memorandum of different types of records.

  • Used as an evidence:

Records management helps to maintain evidential proof in the court of law for the settlement of disputes and misunderstanding between individuals and organizations.

  • Basis for decision making:

Decision making is a very important function of management. It is important tools for decision making. Without the necessary facts and data obtained from the records, the management cannot take a right decision.

  • Help in planning:

Planning is one of the most important project management and time management techniques. An organization should prepare the plans and policies of the business. The plans and policies are the guidelines of the business.

  • To detect errors and wastages:

Record management helps to eliminate errors and wastages. So, record management helps to increase the efficiency of an organization. It also helps to maintain internal control system.

Types of Records

Records can be collected from two sources i.e. internal and external sources. The records can be classified into the following types:

  • Correspondence record:

Correspondence record includes letters, circular, notice, memo, inquiries, order etc. which are either sent by the organization or received by it. It is the written matter of office.

  • Personnel record:

The records which are related to the personnel or employees of the organization are known as personnel records. Personal history, admission, salary, grade, promotion, retirement and other relevant information of the employees are kept in such record.

  • Accounting record:

The records which are related to financial aspects of the organization is called accounting records. Invoices, cash memos of different departments and units are included under it.

  • Legal records:

The records which are kept to meet the legal formalities as per the government rules and regulation are called legal records. A copy of a contract, mortgage deed, business commencement letter, income tax, sales tax are included under it.

  • Miscellaneous records:

The records which are not covered by the above type of records are included in the miscellaneous records. Record of social activities, advertisement campaign, and new product feasibility report are included under it.

Principles of Record Management

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Source:slideplayer.com

The following are the main basic principles of the record management:

  • Principles of purpose:

Principles of purpose help to keep record for future reference and decision making so that it should be maintained with a justifiable and clear purpose. Hence, record management must be based on managing the records having certain objectives.

  • Principles of verification:

There must be evidence of all the documents which are preserved in an office. The maintenance of records without any evidential proof will be worthless because they cannot fulfill the legal requirement.

  • Principles of retention:

The main objective of record management is to preserve the required document for future reference. Therefore, all the records should be maintained in a proper way.

  • Principles of flexibility:

The flexibility of principle states that an accounting information system should be able to adapt to changes in the company based on its needs, operations, and management.

  • Principles of cost:

The accounting principle that goods and services purchased should be recorded at their historical costs and not at their current market value. So, only needy records are kept for future reference.

Retention of Records

Records retention is the process of creating, preserving, transferring the inactive records for storage and destructing the dead records to minimize cost and maximize the benefit of the organization. Records are written documents in the form of letters, bills, vouchers, books of accounts, minutes etc. They are necessary for making prompt decision.

According to Littlefield, “Record retention is the activity designed to control the life cycle of the record from its creation to its disposition.”

Importance of Record Retention

  • It preserves active records for future reference
  • It helps in taking prompt decision
  • It provides written legal evidence in the court
  • It enhances the efficiency of the office as essential records are readily available

Disposal of Records

Disposal of records means the process of destroying the dead records. It involves collection, preservation, classification and protection of records for future reference. Such records can be maintained in files, computers, open drives etc. It is also major part of record management.

References;

Khanal, Soma Raj, Surendra Thapa Aslami and Sitaram Dhakal. Business Studies. Kathmandu: Taleju Prakashan, 2067.

Pant, Prem R., et al. Business Studies. Kathmandu: Buddha Academic Publishers and Distributors Pvt. Ltd., 2010.

  1. Record is written matter which is prescribed for future reference and management is related to the way or the technique which are used to manage the different types of records.
  2. Record management is the management and control of records.
  3. Letters, invoices, cheques, vouchers, price lists, personnel records, tax records, costing records are the examples of records.
  4. Records can be collected from two sources i.e. internal and external sources.

Record management is the combination of record and management. It is an art of handling and maintaining office records. The record is written matter which is prescribed for future reference and management is related to the way or the technique which are used to manage the different types of records. Therefore, record management is the management and control of records. Letters, invoices, cheques, vouchers, price lists, personnel records, tax records, costing records are the examples of records. It also helps to remove unnecessary files and preserves all important files and documents safely.

According to Little Field, "Record management broadly defined,includes forms, reproduction of written materials, filing records, retention, microfilms and related services."

According to J.C. Denyer, "Modern record management involves much more than the methods of the filing or the system of classification , important though these are: indexing, central filing, records retention, follow-up and micro photography, all these receive attention in the present day office."

In conclusion, record management is the systematic process of collecting, utilizing, preserving and disposing of the record of the office.

The importance of record management are mentioned below:

  • Source of decision-making
  • Help to make progress report
  • Helps in planning
  • Helps to detect errors
  • Help to evaluate the performance

 

The importance of records management are described below:

  •  Source of decision-making: 
    Decision making is a very important function of management. It is important tools for decision making. It provides the fact and reliable information which helps for effective decision making.

  • Helpful to make progress report:
    Record management helps to make a progress report of an organization. It helps to record by writing and preserving various papers, letters, and documents, memorandum of different types of records.

  • Helps in planning:
    Planning is one of the most important project management and time management techniques. Plans and policies of business should be prepared by the organization. A good management system provides the  information which helps for preparing plans and policies.

  • Helps to detect errors:
    Record management helps to eliminate errors and maintain internal control system. So, record management helps to increase the efficiency of an organization.

  • Helps to evaluate performance:
    It helps to evaluate the performance of an organization. It provides the financial, human resources, and other information which helps to compare the actual performance with the standard performance of an organization.

The following are the basic principles of record management:

  • Principle of purpose
    Records should be maintained with justifiable and clear purpose. Principles of record help to kept a record for future reference and decision making so that it should be maintained with a justifiable and clear purpose. Hence, records management must be based on managing the records having certain objectives. 

  • Principles of verification:
    There must be evidence of all the documents which are preserved in an office. The maintenance of records without any evidential proof will be worthless because they cannot fulfill the legal requirement.

  • Principles of retention:
    The main objective of record management is to preserve the required document for future reference. Therefore, all the records should be maintained.

  • Principles of flexibility:
    Record management should be flexible. The flexibility of principle states that an accounting information system should be able to adapt to changes in the company based on its needs, operations, and management.

  • Principles of cost:
    The accounting principle that goods and services purchased should be recorded at their historical costs and not at their current market value. So, only needy records are records for future reference.

Records retention is the process of creating,preserving,transferring the inactive records for storage and destructing the dead records to minimize cost and maximize the benefit of the organization.  It is created with storage of required records for future reference. Such records can be maintained in files, computers, pen drives and microfilms.

According to Littlefield,"Record retention is the activity designed to control the life cycle of the record from its creation to its disposition."

Disposal of records

Disposal of records means the process of destroying the dead records. It is created with storage of required for future reference. It involves collection, preservation, classification and protection of records in future reference. Such records can be maintained in files, computers, open drives etc. It is also major parts of record management.

 Importance of Record Retention

  • It preserves active records for future reference
  • It helps for taking prompt decision
  • It provides written legal evidence in the court
  • It enhances the efficiency the efficiency of the office as essential records are readily available

 

Records can be collected from two sources i.e. internal and external sources.The records can be classified into the following types:

On the basis of Nature

On the basis of nature of document, the records can be classified as below:

  • Correspondence record:

Correspondence record includes letters, circular, notice, memo, inquiries, order etc which are either sent by the organization or received by itIt is the written matter of office.

  • Personnel record:

The records which are related to the personnel or employees of the organization are known as personnel records. Personal history, admission, salary, grade, promotion, retirement and other relevant information of the employees are kept.

  • Accounting record:

The records which are related to financial aspects of the organization is called accounting records. Invoices, cash memos of different departments and units are included under it.

  • Legal records:

The records which are kept to meet the legal formalities as per the government rules and regulation are called legal records. A copy of a contract, mortgage deed, business commencement letter, income tax, sales tax is included it.

  • Miscellaneous records:

The records which are not by the above type of records are included in the miscellaneous records. Record of social activities, advertisement campaign, new product feasibility report is included under it.

On the basis of Retention

On the basis of records, record may be classified as follow:

  1. Permanent records:
    The records which are preserved over a long period of time are called permanent records. the following documents fall under permanent records:

    Memorandum of association
    Articles of association
    Registration certificate
    Permanent Account Number certificate
    Documents of properties

  2. Most important  records 
    The records which can be destroyed after 20 years of the  job competition are called the most important records.

  3. Important records
    The records which can be destroyed after 10 years of the job competition are called important records. The following documents fal under important records:
    Annual report
    document related to employee's vacancy
    contract etc.

  4. Most useful records
    The records which can be destroyed after 5 years of the job competition are called most useful records. The following documents fall under most useful records:
    Circulars and copy of letters sent for general information.

  5. Useful records
    The records which destroyed after 3 years of the competition is called useful records. The following documents fall under useful records:
    Documents relating to contracts and donations.
    Ordinary letters, inter-office letters, banking statements, etc.

  6. Less useful records:
    The records which can be destroyed after 1 year of the job competition is called less useful records.

Record management is the combination of record and management. It is an art of handling and maintaining office records. The record is written matter which is prescribed for future reference and management is related to the way or the technique which are used to manage the different types of records. Therefore, record management is the management and control of records. Letters, invoices, cheques, vouchers, price lists, personnel records, tax records, costing records are the examples of records. It also helps to remove unnecessary files and preserves all important files and documents safely.

According to Little Field, "Record management broadly defined,includes forms, reproduction of written materials, filing records, retention, microfilms and related services."

According to J.C. Denyer, "Modern record management involves much more than the methods of the filing or the system of classification , important though these are: indexing, central filing, records retention, follow-up and micro photography, all these receive attention in the present day office."

In conclusion, record management is the systematic process of collecting, utilizing, preserving and disposing of the record of the office.

The following are the basic principles of record management:

  • Principle of purpose
    Records should be maintained with justifiable and clear purpose. Principles of record help to kept a record for future reference and decision making so that it should be maintained with a justifiable and clear purpose. Hence, records management must be based on managing the records having certain objectives. 

  • Principles of verification:
    There must be evidence of all the documents which are preserved in an office. The maintenance of records without any evidential proof will be worthless because they cannot fulfill the legal requirement.

  • Principles of retention:
    The main objective of record management is to preserve the required document for future reference. Therefore, all the records should be maintained.

  • Principles of flexibility:
    Record management should be flexible. The flexibility of principle states that an accounting information system should be able to adapt to changes in the company based on its needs, operations, and management.

  • Principles of cost:
    The accounting principle that goods and services purchased should be recorded at their historical costs and not at their current market value. So, only needy records are records for future reference.

 

The importance of records management are described below:

  •  Source of decision-making: 
    Decision making is a very important function of management. It is important tools for decision making. It provides the fact and reliable information which helps for effective decision making.

  • Helpful to make progress report:
    Record management helps to make a progress report of an organization. It helps to record by writing and preserving various papers, letters, and documents, memorandum of different types of records.

  • Helps in planning:
    Planning is one of the most important project management and time management techniques. Plans and policies of business should be prepared by the organization. A good management system provides the  information which helps for preparing plans and policies.

  • Helps to detect errors:
    Record management helps to eliminate errors and maintain internal control system. So, record management helps to increase the efficiency of an organization.

  • Helps to evaluate performance:
    It helps to evaluate the performance of an organization. It provides the financial, human resources, and other information which helps to compare the actual performance with the standard performance of an organization.

Record management is the combination of record and management. It is an art of handling and maintaining office records. The record is written matter which is prescribed for future reference and management is related to the way or the technique which are used to manage the different types of records. Therefore, record management is the management and control of records. Letters, invoices, cheques, vouchers, price lists, personnel records, tax records, costing records are the examples of records. It also helps to remove unnecessary files and preserves all important files and documents safely.

According to Little Field, "Record management broadly defined,includes forms, reproduction of written materials, filing records, retention, microfilms and related services."

According to J.C. Denyer, "Modern record management involves much more than the methods of the filing or the system of classification , important though these are: indexing, central filing, records retention, follow-up and micro photography, all these receive attention in the present day office."

In conclusion, record management is the systematic process of collecting, utilizing, preserving and disposing of the record of the office.

Records can be collected from two sources i.e. internal and external sources.The records can be classified into the following types:

On the basis of Nature

On the basis of nature of document, the records can be classified as below:

  • Correspondence record:

Correspondence record includes letters, circular, notice, memo, inquiries, order etc which are either sent by the organization or received by itIt is the written matter of office.

  • Personnel record:

The records which are related to the personnel or employees of the organization are known as personnel records. Personal history, admission, salary, grade, promotion, retirement and other relevant information of the employees are kept.

  • Accounting record:

The records which are related to financial aspects of the organization is called accounting records. Invoices, cash memos of different departments and units are included under it.

  • Legal records:

The records which are kept to meet the legal formalities as per the government rules and regulation are called legal records. A copy of a contract, mortgage deed, business commencement letter, income tax, sales tax is included it.

  • Miscellaneous records:

The records which are not by the above type of records are included in the miscellaneous records. Record of social activities, advertisement campaign, new product feasibility report is included under it.

On the basis of Retention

On the basis of records, record may be classified as follow:

  1. Permanent records:
    The records which are preserved over a long period of time are called permanent records. the following documents fall under permanent records:

    Memorandum of association
    Articles of association
    Registration certificate
    Permanent Account Number certificate
    Documents of properties

  2. Most important  records 
    The records which can be destroyed after 20 years of the  job competition are called the most important records.

  3. Important records
    The records which can be destroyed after 10 years of the job competition are called important records. The following documents fal under important records:
    Annual report
    document related to employee's vacancy
    contract etc.

  4. Most useful records
    The records which can be destroyed after 5 years of the job competition are called most useful records. The following documents fall under most useful records:
    Circulars and copy of letters sent for general information.

  5. Useful records
    The records which destroyed after 3 years of the competition is called useful records. The following documents fall under useful records:
    Documents relating to contracts and donations.
    Ordinary letters, inter-office letters, banking statements, etc.

  6. Less useful records:
    The records which can be destroyed after 1 year of the job competition is called less useful records.
0%
  • ___________is the art of handing records from birth to termination of an office

    Multinational Company
    Partnership Firm
    Filing
    Record Management
  • According to_______,"Record management broadly defined,includes forms,reports,reproduction of written materials,filing records,retention,microfilms and relaed services".

    James Stephenson
    Y.K Bhusan
    Little field
    Keith Davis
  • According to_____,"Records management in its broadest sense concerns itself with the records'creation,distribution,maintennce,retention,preservation,retrieval and disposal."

    James Stephenson
    S.P Arora
    Keith Davis
    Y.K Bhusan
  • __________are the importance of Records Management.

    All
    Used as an evidence
    Helpful to make progress report
    Basis for decision making
  • The records which are related to the personnel or employes of the organization are known as_________________.

    Personnel Record
    Accounting Record
    Legal Record
    Correspondence Record
  • Personnel history,admission,salary,grade,promotion and other relevant information or detail of the employees are kept in_______record.

    Miscellaneous record
    Accounting record
    Personnel record
    Legal record
  • The records which are elated to financial aspects of the organizations are known as_________.

    Legal records
    Miscellaneous records
    Accounting recods
    Personnel records
  • The records which are kept to meet the legal formalities as per the governement rules and regulations are known as_____________.

    Personnel records
    Miscellaneous record
    Accounting Record
    Legal records
  • The records which are not covered by the above type of records are included under the_________________.

    Correspondance record
    Accounting records
    Miscellaneous records
    Legal record
  • Records of social activities,advertisement campaign,esearch and development etc ae included in___________________.

    Legal record
    Correspondence record
    Miscellaneous records
    Accounting records
  • The records such as copy of contract,mortage deed,business commencement letter,income tax,sales tax etc are included under___________.

    Personnel records
    Correspondence record
    Legal records
    Accounting records
  • Supporting vouchers for vaious transactions like invoices cash memos of departments and unit are included under_____________.

    Miscellaneous records
    Accounting recods
    Legal Record
    Correspondence Records
  • Under this _____________record,the organization keeps the record of letters,circulars and notices,inquiries,applications,complaints,order etc

    Legal records
    Personnel records
    Accounting records
    Correspondence records
  • _______are the principles of Records Management.

    Principle of purpose
    Pinciples of verification
    All
    Principles of flexibility
  • Which one is not the principles of Records Management ?

    Gain monopoly positions
    Pinciples of verification
    Principles of availability
    Principles of flexibility
  • _________is the process of creating,preserving,transferring the inactive records for storage and destructing the dead records to minimize cost and maximize benefit of the organization.

    Record Retention
    None
    Disposal Records
    Record Management
  • According to_______,"Record Retention is the activity designed to control the life cycle of the record from its creation to its disposition."

    Little field
    S.P Arora
    James Stephenson
    Y.K Bhusan
  • ________are the importance of Record Retention.

    It helps for taking prompt decision
    It preserves actives records for future reference
    It provides written legal evidences in the court.
    All
  • ____________means the process of destroying the dead records.

    Disposal of records
    Record Management
    Record Retention
    Correspondance records
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