record management bab 1

MANAGEMENT OF ADMINISTRATIVE RECORDS 1 OSM 451

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Chapter 1 The Concept Of Records Management

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In this chapter, you will be able to:

1) Discuss the challenges of the information explosion to records

management

2) Describe the importance of records management to an

organization

3) Describe how records are classified and categorize in

businesses

4) Describe the records management functions management

functions necessary to operate a records in an organization

and a record life-cycle

5) Identify what is a registry, the programs for managing records

and the records problems

6) Be familiar with some terms in records management and

examples of basic records types

7) Identify the phases of records activity

LEARNING OBJECTIVES


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CHAPTER OVERVIEW This chapter describes the field of records management and the nature and purpose of

records. In this chapter also, you will discover what records are and how they are used and

classified.

1.1 How Has Information Grown Lately? Today's workers are increasing their use of information. This time in our history is

frequently called the Information age. Did you know that the amount of new information

in the world has almost doubled in the past 3 years? How much new information do you

receive every day from the newspaper, radio, television, mail, electronic-mail, the

internet, magazines, and telephones? This world is in the middle of an information

explosion in the Information age. Information explosion is a term that describes the

rapidly increasing amount of published information and the effects of this abundance of data.

As the amount of available data grows, the problem of managing the information becomes

more difficult, which can lead to information overload.

At this stage you are already

achieved learning objectives 1:

To discuss the challenges of the

information explosion to records

management


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1.2 What Is Records Management? Management is the process of using organizations resources to achieve specific goals

through the functions of planning, organizing, leading and controlling. Information is an

important and valuable business resource. To survive; businesses and organizations

must have up-to-date information in the right form, at the right time, and in the right

place to make management decisions.

Records management is the systematic control of all records from their creation or

receipt, through their processing, distribution, organization, storing and retrieval, to their

ultimate disposition. Because information is such an important resource to organizations,

the records management function also includes information management. Therefore,

records management is known as records and information management (RIM).

ISO (the International Organization for Standardization) is a worldwide federation of

national standards organizations. ISO 15489 is a standard for records management

policies and procedures. The purpose of this standard is to ensure that appropriate

attention and protection applies to all records, and that the evidence and information they

contain can be retrieved efficiently and effectively using standard practices and

procedures1. These international standards help the records management function of an

organization clarify its purpose and prove its value by managing important information.

1.3 What Are Records? ARMA International (an association for information management professionals) defines a

record as stored information, regardless of media or characteristics, made or received by

an organization that is evidence of its operations and has value requiring its retention for a

specific period of time2 .

1 International Organization for Standardization, ISO 15489-1:2001, Information and Documentation-Records Management, Part 1: General (Geneva, Switzerland: ISO, 2001). 2 Glossary of Records and Information Management Terms (ANSI/ARMA 10-1999) by ARMA International and A Glossary for Archivist, Manuscripts Curators, and Records Managers, compiled by Lewis J. Bellardo and Lynn L. Bellardo and Lynn L. Bellardo (Chicago: The Society of American Archivists, 1992)


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ISO 15489 defines a record as ‘a record is information created, received, and maintained

as evidence and information by an organization or person, in pursuance of legal

obligations or in the transaction of business3.

1.4 How Are Records Used And Classified? Records are classified in three basic ways:

a) Classification by Use

b) Classification by Place of Use

c) Classification by Value of the Records to the Firm

a) Classification by Use

Classification according to records use includes transaction documents and reference

documents. A transaction document is a record used in an organization's day-to-day

operations. These documents consist primarily of business forms which can be

created manually, electronically, or generated via e-commerce systems on the Internet.

Examples like invoices, requisitions, purchase and sales orders, bank checks,

3 Ibid: ISO 15489-1: 2001, Information and Documentation- Records Management, Part 1: General.



To describe the importance of

records management to an

organization


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statements, contracts, shipping documents, and personnel records such as

employment applications, time sheets, and attendance reports.

A reference document, on the other hand, contains information needed to carry on the

operations of a firm over long periods. These records are referenced for information

about previous decisions, quotations on items to purchase, statements of

administrative policy, and plans for running the organization. Common reference

documents that are most frequently used category of records maintained in an office

are like business letters, reports, and interoffice e-mail. Other examples include

catalogs, price lists, brochures, and pamphlets.

b) Classification by Place of Use

Classification by place of use of the records refers to external and internal records.

An external record is created for use outside an organization. Examples of such records

are letters, faxes, or e-mail sent to a customer, client, supplier, or to the various

branches of the government.

Internal records are a larger group of records classified by their place of use. An

internal record contains information needed to operate an organization. Such a

record may be created inside or outside an organization. Many internal records are

created through the use of e-commerce systems using databases and web server

applications. Examples are communications between a firm and its employees (payroll

records, bulletins, newsletters, and government regulations) and communications

among a firm's departments (inventory control records, interoffice memos or e-mail,

purchase requisitions and reports).

c) Classification by Value of the Records to the Firm

From an inventory and analysis of the use of each major record category, a manager

determines the value of the record to the firm. This evaluation is used to develop a

records retention schedule specifying how long to keep the records in an

organization. Some records are so valuable to a firm that they require special

measures of protection. Each record maintained by a firm falls into one of four

categories used to determine how records should be retained and the level of


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protection they require. These categories are (1) vital, (2) important, (3) useful,

and (4) nonessential as shown in figure below:

Category Examples

Vital Records a. Necessary for the continuing

operation of the organization b. Usually not replaceable c. Highest degree of protection necessary

Legal papers, articles of incorporation, titles to property, reports to shareholders

Important Records a. Assist in performing business

operations b. Usually replaceable but at great cost c. High degree of protection necessary

Personnel records, sales records, financial and tax records selected correspondence and reports, contracts

Useful Records a. Helpful in conducting business

operations b. Usually replaceable at slight cost c. Low to medium degree of protection

General correspondence and bank statements

Nonessential Records a. Records have no predictable value

after their initial use b. Lowest degree of protection

Announcements and bulletins to employees, acknowledgments and routine telephone/ e-mail messages

Categories of Records



To describe how records are

classified and categorized in

businesses


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1.5 Why Records Are Used? Records serve as the memory of a business. They document the information needed for

complying with regulations and the transactions of an organization. For example,

management policies are developed and recorded to furnish broad guidelines for

operating a business. Each department (for example. Finance, Marketing, Accounting,

and Human Resources) bases its entire method of operations upon records. Usually,

records are used and retained because they have one or more of the following values to a

firm. The following are the Records Values and Types

Value and Record Type Examples

Administrative

a. Records that help employees perform office operations

b. Fiscal records used to document operating funds and other financial processes

Policy and procedures manuals Handbooks Organizational charts Tax returns Records of financial transactions:

purchase and sales orders, invoices, balance sheets, and income statements

Legal

a. Records that provide evidence of business transactions

Contracts Financial agreements that are legally

binding Deeds to property owned Articles of incorporation

Historical

a. Records that document the organization's operations and major shifts of direction over the years

Minutes of meetings Corporate charter Public relations documents Information on corporate officers

Records Values and Types

According to Rusnah (2003), there are another 3 additional values that are: Fiscal value, informational and evidential value


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1.6 The History of Records Management What are the earliest records of civilization? Hieroglyphics drawn on rock walls and caves

reflect ancient humanity's need to tell stories. Museums of the world tell the story of

ancient civilizations with artifacts and relics.

Early Records

Most of the business records before 1600 were based upon simple trade transactions that

provided evidence of money received and spent, lists of articles bought and sold, and simple

contracts. These records and any copies were created by hand until the printing press and

later the typewriter were invented. Records were almost entirely paper documents, until the

1950s when computers were first used in business. The most important emphasis during

this stage in history was getting the records properly placed in the files. Emphasis on

retrieval surfaced later. Little importance or status was granted to records and to records

management functions at this time.

1.7 Trends in Records and Information Management Electronic Record An electronic record is a record stored on electronic media that can be readily accessed

or changed. A piece of equipment is required to view and read or listen to electronic

records. With the development and use of application software on personal computers,

letters, memos, and reports were created electronically; however, the purpose of these

systems was to facilitate the creation of paper records. As technology has advanced, true

electronic records are in use today; i.e., records created, distributed, used, and stored in

electronic form.. The contents of these records are accessible by machine.

Electronic Mail Electronic mail (e-mail) is a system that enables users to compose, transmit, receive, and

manage electronic documents and images across networks. A variety of electronic mail

systems allow users to write and send messages via computers and software.


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Document Imaging Document imaging is an automated system for scanning, storing, retrieving, and managing

images of paper records in an electronic format. A paper document is scanned into a

computer file, thus creating an electronic image of the document. Scanned files are

usually large; consequently, optical disk storage is recommended. Textual data can be

converted electronically using optical character recognition (OCR) software. Lists of key

words are created for each, scanned file. An image and text database is developed

enabling a search by key words to find a document in a matter of seconds. Once found,

the document can be sent to the requester by fax, computer-to-computer

communication, or a hard (printed) copy.

The Internet The Internet is a worldwide network of computers that allows public access to send, store,

and receive electronic information over public networks. The multimedia center of the

Internet, the World Wide Web, is a worldwide hypermedia system (a network of computers

that can read documents containing hyperlinks) that allows browsing in many databases.

Companies, organizations, and individuals create locations, called web sites that can be

accessed by anyone who has an Internet connection.

Electronic Commerce

Companies use these sites to share information about themselves and their products.

They also conduct business using these sites. A broad definition of e-commerce is an

electronic method to communicate and to transact business over networks and through

computers. In other words, e-commerce is the buying and selling of goods and services

using the Internet and other digital communications such as electronic funds transfer,

smart cards, and digital cash.

Electronic fund transfer (EFT) EFT provides for electronic payments and collections. It is safe, secure, efficient, and less

expensive than paper check payments and collections. Many organizations deposit their

employees' pay by using EFT.


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Electronic data interchange (EDI) EDI is a communication procedure between two companies that allows the exchange of

standardized documents (most commonly invoices or purchase orders) through computers. If

the two companies have compatible systems, the computers talk to each other through a

connection. For example, Company A sends a purchase order to Company B by EDI. When

Company B ships the order to Company A, an invoice is created and sent to Company A,

again through EDI. Company A can then pay Company B by electronic funds transfer.

Thus, no paper documents are exchanged. Records and information managers should

ensure that the records transmitted in this business process are authentic, correct, and

usable.

Enterprise Content Management (ECM) Is the term used to describe the technologies, tools, and methods used to capture, manage,

store, preserve, and deliver content or information across an enterprise or organization.

1.8 Records Management Functions in Organizations? The four functions of management

1) Planning involves establishing goals or objectives and the methods required to

achieve them.

2) With the firm's goals in mind, organizing involves arranging the tasks, people,

and other resources needed to meet the goals set in the planning stage.

3) Leading refers to managerial behavior (such as training, supervising, and

motivating) that supports the achievement of an organizations goals.

4) Finally, controlling involves measuring how well the goals have been met.


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The Life-Cycle of Records

The record life cycle is the life span of a record as expressed in the five phases of creation,

distribution, use, maintenance, and final disposition. The phases of the life cycle often overlap.

Note how this cycle is carried out. Whenever a letter is produced, an e-mail written, a form

completed, or a pamphlet printed, a record is created. This record is then distributed (sent)

to the person responsible for its use. Records are commonly used in decision making,

for documentation or reference, in answering inquiries, or in satisfying legal

requirements.

When a decision is made to keep the record for use at a later date, it must be stored,

retrieved, and protected—three key steps in the maintenance of records. During this

phase, the records must be stored (filed), which involves preparing and placing records

into their proper storage place. After a record is stored, a request is made to retrieve (find

and remove) it from storage for use. When the retrieved record is no longer needed for

active use, it may be re-scored and protected, using appropriate equipment and

environmental and human controls to ensure record security. Also involved in the

maintenance phase are activities such as updating scored information and throwing away

obsolete records that are no longer useful or that have been replaced by more current

ones.


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The last phase in the record life cycle is disposition. After a predetermined period of time

has elapsed, records to be kept are transferred to less expensive storage sites within the

firm or to an external records storage facility. At the end of the number of years indicated

in the retention schedule, the records are disposed of, either by destruction or by transfer

to a permanent storage place. The facilities where records of an organization are

preserved because of their continuing or historical value are called the archives.

The record life cycle is an important concept for you to understand. It shows, for

example, chat filing is only one part of records and information management. Many

interrelated parts must work together for an effective records and information

management program. Knowing the meaning and importance of each part of the entire

record life cycle, you will be able to understand what is needed to manage all records—

those on paper and those stored on other media such as magnetic media or microforms.


achieved learning objectives 4: To

describe the records management

functions management functions

necessary to operate a records in

an organization and a record life-

cycle


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1.9 Programs for Managing Records (Features) A records program must be in place to manage all phases in the record life cycle.

Such programs generally have these features:

1. Well-defined goals chat are understood by all workers

2. A simple, sound organizational plan

3. Efficient procedures for managing each of the five stages in the record

life cycle

4. A well-trained staff

Who is responsible for implementing and maintain effective life-cycle records management system in an organization? The records manager is the one who is responsible in implementing and maintain effective life-cycle

records management system in an organization that will ensure the provision of the right records (or

the right information from them) to the right person at the right time.

Records management is essential for the administration of an agency with the objectives of

making records and information processing: More effective, more efficient and more

economical

And the above objectives can be achieved through systematic control over the records

creation, distribution, use, maintenance and disposition.

The basic elements of records management program are:

• Mail operations

• Classification operations

• Files operations

• Use, storage, retrieval and circulation operations and,

• Disposition operations

Why records need to be managed? 1. To reduce the volume of records

2. Improve storage and retrieval systems

3. Increase efficiency of records processing

4. Identify and protect vital records

5. Meet legal requirements


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6. Protect the organization, customers, personnel and stockholders

7. Improve productivity

8. Cut cost

9. Improve profits

What are the goals of records management?

1. To create the right information and records

2. To make records available for the right individuals

3. To ensure records are created and maintained in appropriate formats

4. To ensure records are available at the right times and at the right places.

5. To ensure records are managed efficiently and at low cost

6. To ensure the right records are used in making decisions

7. To ensure records with value are transferred to the archives and those without value

are eliminated.

1.10 Registry And Record Control (2 Types): The current records management includes the mail and file management. The activities of

mail management and file management are carried out in the registry of an agency.

What is a registry?

A registry is a unit within an organization. It is basically responsible for managing the records

of that particular organization. Its exact function may keep on changing with the times. But

basically, a registry ensures that there is a good flow of recoded information in the

organization.

Registry – Functions

a) To house the entire series of records kept in a particular department and to have

intellectual control over these records.

b) Officially dispatching and receiving all letters. It registers all letters received from both

internal as well as external sources. Incoming letters are stamped ‘received’ on a


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particular date. The date of receipt and the name of the sender is entered into a

register.

c) Monitor the movement of records or files. This is to ensure that all file movement is

properly recorded, and those borrowing or keeping a particular file returns it to the

registry at the right time.

d) Ensures that the action to be taken on a file is brought to the attention of the staff

concerned.

e) Keeps track of all the 4 phases of the records life cycle- creation, distribution, use

and maintenance.

f) Prepare an updated list of files to be destroyed.

A registry may be either centralized or decentralized.

i) Centralized program

Records are physically located and controlled in one area.

ii) Decentralized program

Records are physically located in the departments where they are created and used.


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1.11 Problems in Records System

Problems Symptoms Management • No overall plan for managing records problems

• No plan for retaining or destroying records • No standards for evaluating workers

Human Problems • Lack of concern about the importance of records

• Hoarding of records • Assuming that people know how to use the files for storage and retrieval of records

Inefficient filing procedures

• Computer files not organized into folders • Overloaded and poorly labeled drawers and folders • Failure to protect records • Misfiles resulting in lost records or slow retrieval • Records removed from and placed in files without proper authorization

Poor use of equipment • No equipment standards • No use of fire-resistant equipment • Improper type of storage containers for records • Lack of or improper use of automated systems

Inefficient use of space • Crowded working conditions • Poor Layout of storage area • Resistance to the use of magnetic media

Excessive records cost • Inefficiency due to the above problems


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1.12 Introduction to Records Management In records management there are several terms that students should be familiar with as

these words are very important as they are the basic parts that constitute records

management. Among the definition of important terms in records are highlighted below:

Terms Definition

Data Representation of information in a formalized manner suitable for communication, interpretation and processing, generally by a computer system. Raw data refers to unprocessed data

Information Information is something that can lead to knowledge regardless of the medium of its conveyance to one or more persons

Knowledge A body of understanding and skills that is constructed by people and increased through interaction with other people and with information. (Australian Standard for Knowledge Management AS 5037-2005)

Document A medium through which information is imprinted for conveyance to one or more than one person. Defined as the smallest unit for filing. It can also refer to other non paper-based items, such as computer files

Records Recorded information in a form of document regardless of form or medium made or received by an organization and that is useful in the operation of the organization. It provides evidence of a business transaction. Thus a record is a document with evidentiary value

Archives Records, usually but not necessarily non-current records or enduring value selected for permanent preservation. Archives will normally be preserved in an archival repository



To identify what is a registry, the

programs for managing records

and the records problems


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Records Center Records center is a building designed or adapted for the low-cost storage, maintenance and communication of semi-current records pending their ultimate disposal. It is an intermediate storage facility

Archival Repository

A building or part of a building in which archives are preserved and made available for consultation also known as an archives

Public Records Records created or received and maintained in any public sector agency

Private Records Records created, received and maintained by non- governmental organizations, families or individuals relating to their private and public affairs

Evidence An indication, sign, testimony, in support of a conclusion. In order to become "evidence'', records must have the following characteristics: Essential Characteristics of Records (Read & Ginn, 2007): • Permanence –

Recorded information should be permanent so that it can be used as evidence. If record keeps on changing all the times, it cannot be used with certainty to show that something had actually taken place or that someone has been responsible for it. Different versions of the records will be used by different parties to illustrate conflicting points of views. Records will then become a source of division and contention among parties representing claims.

• Value as official sources of information –

Records should have authority so that they should be considered to be the true, official account or report that will have universal validity as the one true record. The manner in which records have been created and cared for will demonstrate their value as undisputed sources of information

• Authentic – Records are supposed to be authentic in that they document accurately what actually transpired, and indicate what was actually the state of affairs at a particular point on time. They cannot be changed or altered as an afterthought. Any changes should only result in adding on to the existing documentation, and not removing or deleting existing information.

• Unique –

Records are unique in that they are documents of a single or individual event or transaction that will not be repeated in the same time, at the same place or for the same actions

Essential Characteristics of Records (Rusnah, 2001): • Authenticity (original) • Reliability (can be trusted)


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• Integrity (not separated) • Usability (can be used as evidence)

Creators and users of records Government and private sectors created and used records on a daily basis to:

1) Document actions

2) Confirm decisions

3) Identify rights

4) Implement responsibilities

5) Communicate information

Records can be used to:

1) In pressing for claims due to a person

2) To s how that someone is responsible for a particular action

3) To tell us the story of what has happened in the past

4) To boost the corporate image of a particular firm by showing the success in its long

past

5) To tell past mistakes and provides continuity in charting the future.

Government employees rely on

records to provide core

information for conducting their

public administration on behalf

of the citizens. While the

companies employees (private

sector) rely on records to

provide core information for

conducting their business

transaction.

Note:


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1.13 Basic Record Types There are some basic records types used in organizations such as the following:

a) General Correspondence

b) Transitory Correspondence

c) Case Reports

d) Case Working Papers

e) Technical Ref. Materials

f) Extra Convenience Copies

g) Films, Tapes and Disk Records

h) Cartographic Materials and Drawings

i) Cards



To be familiar with some terms in

records management and

examples of basic records types


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1.14 Phases of Records Activity

A) Active Records Needed to perform current

operations Used frequently Located near user Accessed

manually or online Accessed three or more times a

month Stored in very accessible

equipment in active storage area or online

B) Inactive Records

Do not have to be readily available

Kept for legal, fiscal, or historical purposes

Accessed less than fifteen times a year

Stored in less expensive storage area

C) Archive Records

Kept for their continuing or historical value

Preserved permanently Used to: Maintain public relations,

prepare commemorative histories, preserve corporate history, provide financial, legal, personnel, product, or research information, provide policy di-rection, stored in less expensive storage area, often off-site

(Read & Ginn, 2007)

A) Current Records Records regularly used for the conduct of the current business of an organization or individual. Also known as active records. Current records will normally be maintained in or near their place of origin or in a registry

B) Semi-Current Records

Records required only infrequently in the conduct of Current business. Also known as semi-active records. Semi-active records will normally be maintained in a records center or other offsite intermediate storage

C) Non-Current Records

Records no longer needed for the conduct of current business. Also known as inactive records

(Rusnah, 2001)


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1.15 ARMA International

ARMA stands for Association of Records Managers and Administrators, Inc. It is an

important professional group for records and information managers interested in:

i. Improving educational programs in schools and industry

ii. Providing on-the-job knowledge about records and information management

Learn more about ARMA International at the organization’s web site at: http://armainternational.com



To identify the phases of records

activity


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This chapter introduces you to the concept of records management and defines the field of

records management and the nature and purpose of records. As you study this part, you will

learn what records are and how records are used and classified. These questions and more

are answered in this first part:

How has information grown lately?

What are records?

How are records used and classified?

What is the history of records management?

What are the records management functions in organizations?

What are the importance of records management to an organization

What is a registry and the records problems

What are the important terms in records management the examples of basic records

types

How many are the phases of records activity

By the end of this chapter, you are expected to understand the following:

Discuss the challenges of the information explosion to records management

Describe the importance of records management to an organization

Describe how records are classified and categorize in businesses

Describe the records management functions management functions necessary to

operate a records in an organization and a record life-cycle

Identify what is a registry, the programs for managing records and the records

problems

Be familiar with some terms in records management and examples of basic records

types

Identify the phases of records activity

CHECKLISTS

SUMMARY


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Information Age Today's workers are increasing their use of information. This time in our

history is frequently called the Information age.

Information Explosion is a term that describes the rapidly increasing amount of published

information and the effects of this abundance of data.

Information Overload As the amount of available data grows, the problem of managing the

information becomes more difficult, which can lead to information overload.

Management is the process of using organizations resources to achieve specific goals

through the functions of planning, organizing, leading and controlling.

Records Management is the systematic control of all records from their creation or receipt,

through their processing, distribution, organization, storing and retrieval, to their ultimate

disposition. ISO (the International Organization for Standardization) is a worldwide federation of

national standards organizations. ISO 15489 is a standard for records management

policies and procedures.

Record Life Cycle is the life span of a record as expressed in the five phases of creation,

distribution, use, maintenance, and final disposition.

GLOSSARY


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1. Describe the information explosion.

2. What is the role of records and information management in an organization?

3. What is the purpose of ISO 15489?

4. What are the main classifications for records? What types of records are commonly

found in each classification?

5. Why are records used in businesses?

6. List the phases in the record life cycle and describe the activities that occur during

each phase. What phases, if any, do you eliminate in your own personal records

cycle? Why?

7. What are some common problems found in records systems?

1. Work in a team with two or three classmates to complete this application. Visit a

business. Ask the person you visit to share with you five examples of the records of

the business.

2. Analyze the records from the business. Why did the business develop each record?

How will each record help that company conduct business?

REVIEW AND DISCUSSION

APPLICATION


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Read, Judith & Ginn, Mary Lea. (2007). Records Management. 8th ed. US: South-Western

Thomson Learning.

Robek, M. F., et. al. (1996). Information and Records Management: Document-based

Information Systems. US: Glencoe/Mc-Graw Hill.

Rusnah Johare. (2001). Records Management Handbook: A Guidance to Records

Management in an Agency. Kuala Lumpur: Univision Press.

REFERENCES


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Study Notes