SECTION 4: RECORDS AND INFORMATION MANAGEMENT

Objective: Describe the characteristics of an information management system

Records play an important role in our lives and in the running of a business. Business keeps a wide range
of information in order to use them from time to time. The method of storing this information must be
economical for the business and have several advantages.

Information management is the application of a records management system or technique to the

creation, collection and storage of information in a systematic manner for preservation on paper, disk,
CD, DVD, flash drive or tape for a specified period to facilitate easy and quick retrieval

Categories of records

 Essential records – these contain vital information crucial to the management and development
of a business and cannot be replaced if damaged, e.g. legal documents such as title deeds and
patents, financial records, tax records etc
 Valuable records – these contain important information, sometimes of a confidential nature,
and can be replaced if damaged but only at great cost, e.g. information on shareholders,
personnel records, company policies and contracts.
 Current records – these contain specific information that helps in the smooth daily running of a
business and can be replaced if destroyed, e.g. correspondence, transactions and journal entries
 Reference records – these contains information about the business to which reference is made
from time to time

Characteristics of an information management system

 Data input / data storage

 Database management system
 Data processing
 Batch processing
 Online, real time or transaction processing
 Data storage
 Data retrieval

Characteristics of an effective records management system

 It is simple
 Easy to access
 Suitability
 Expansion
 Security
 Retention policy
 Charge- out -procedures

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Importance of filing

 To preserve records for future reference

 To keep records safe, clean and in good condition
 To obtain feedback for decisions and policies
 To retrieve information or records easily when wanted for queries
 To prevent unauthorized access to confidential information

Duties of a records management clerk

Objective: Describe the duties of a records management clerk

1) Preparing documents
 Organizing records for filing and correctly place them in folders
 Drafting, creating and saving documents using the computer
2) Processing data
 Sorting documents into sections or departments
 Classifying documents, e.g. urgent, routine or confidential
3) Managing records
 Selecting the most appropriate filing system, supplies and equipment
 Using different filing systems, supplies and equipment effectively

4) Retrieving information/records
 Maintaining confidentiality concerning information about the business and its
employees
 Safe guarding files from unauthorized persons from destruction

Classifications of Records Management Systems

Objective: maintain a records management system by electronic and other means

There are six basic systems of filing: alphabetical, geographical, subject, chronological, numerical and
electronic.

Rules for arranging names in alphabetical order

 The surname of a person is written before the other name(s) and is separated by a
comma,
E.g. Robert Louis Stephens is written as Stephens, Robert Louis

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 If there are several names with the same surname, the other names are sorted in
alphabetical order
E.g. James Karim Aberdeen and James Kamal Aberdeen are written in the order:
Aberdeen, Kamal James
Aberdeen, Karim James
 Titles are written before the first name or in brackets at the end, e.g. Dr. Colin Simon
can be written as Dr. Colin or Simon, Colin (Dr.)
Ms Lena Ali as Ali, Lena (Ms)
 The word The at the beginning of a name is written at the end separated by a comma,
e.g. The Mouse Pad is written as Mouse Pad, The
 When a firm’s name includes several surnames, the first surname determines the
alphabetical position
E.g. William & Simon Ltd, Jason, Brown and Long Electrical Ltd these are filed as
Jason, Brown and Long Electrical Ltd
William & Simon Ltd
 The first word in a hyphenated name determines the alphabetical position, e.g. Jennifer
Roger-Collins is filed as
Roger-Collins, Jennifer
 A single name with nothing else at the end or beginning is filed before a name with
something at the end e.g. Patterson, H Patterson, Harold Patterson are filed as
Patterson
Patterson, H
Patterson, Harold
 A surname with a prefix is considered as part of the surname, e.g. Raymond De Silva is
filed as – De Silva Raymond
 The prefix St is regarded as if spelled Saint
 A name with an initial is placed before a name with whole words e.g. Abacus Business
Consulting Ltd and ABC International Couriers (T&T) are filed in the order
ABC International Couriers (T&T)
Abacus Business Consulting Ltd

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  The key word in the name of government departments or ministries is written before
the other word and separated by a comma, e.g. Ministry of Education, Ministry of
Finance, Ministry of Works, Ministry of Foreign Affairs
Education, Ministry of
Finance, Ministry of
Foreign Affairs, Ministry of
Works, Ministry of

Alphabetical records management system

Advantages of alphabetical records management system are:

 It is simple to understand and manage

 It is quick for filing correspondence
 It is less expensive than other systems to maintain

Disadvantages of alphabetical filing

 Locating a named file, especially one with a common name, takes time
 Expansion is difficult
 Cross-referencing is sometimes required

Geographical records management system

In this system each folder is labeled with the name of a correspondent and the folders are
placed in alphabetical order according to the location of the correspondents

Advantages of geographical filing

 It is suitable for firms with operations or business located in different places or countries
 It can be expanded to accommodate more papers without difficulty when necessary
 Correspondence relating to a particular area can be placed in groups

Disadvantages of geographical filing

 Knowledge of geography is necessary to manage a large system, especially when searching for a
document
 Cross-referencing is sometimes necessary

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  It takes longer to file and to find documents

Subject records management system

In this system each folder is labeled with the name of a subject or title and the folders are
placed in alphabetical order according to the subject heading.

Advantages of subject filing

 Correspondence relating to the same subject can be grouped together

 It can be expanded to accommodate more papers without difficulty when necessary
 It is adapted to the alphabetical, geographical and numerical systems

Disadvantages of subject filing

 It is unsuitable for firms with a large volume of correspondence and where filing is centralized
 There can be difficulty in deciding under which title to file a given item of correspondence when
the subject matter is not stated

Chronological records management system

This is a system in which documents are placed in folders in reverse chronological order. In this
system each folder is labeled with a date and the folders are placed in reverse date order meaning the
most recent is placed at the top.

Advantages of chronological filing

 It is suitable for documents or matters that require attention or follow-up, e.g. when to evaluate
an employee
 It can be expanded to accommodate more papers without difficulty when necessary
 It is suitable for cross-referencing

Disadvantages of chronological filing

 It must be used with another filing system, e.g. files are arranged alphabetically then by date
 This is not really a primary system except when it is used for a tickler file

Numerical records management system

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 In this system, each folder is marked with a number and the folders are placed in numerical
order. Guide cards are used to group folders into sets of tens. With this system, the name and address of
each person are written on an index card, which is marked with a number corresponding to that on the
relevant folder.

Advantages of numerical filing

 It is easy to locate a numbered file

 File numbers may be used as references on correspondence
 It is suitable for confidential records

Disadvantages of numerical filing

 It takes time to consult the index cards to identify a file number

 Transposition of figures on folders can cause papers to be misplaced
 It is not a direct system and is costly to maintain

Card index system – in this system each index card is labeled with the name of a person and a number.
The address of the person is also written on the index cards and placed in alphabetical order. The
number that is placed on the index card corresponds to the number of the file in the numerical records
management system.

Electronic records management system

In this system, documents are typed on a computer keyboard and stored on a computer hard
drive, flash drive, CD-ROM, DVD or file server. Files can be created using:

 Word processing – all departments of a business can use word processing to create
correspondence and reports
 Spreadsheets – can be used by the accounts department to prepare data for wages, budgets
and accounting statements
 Databases – can be used by the human resources management department to store employee’s
data, customers’ data and suppliers’ data
 Presentations – can be used by the sales department for promoting goods and services and for
training by the human resources department

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Advantages of electronic filing

 It results in optimum use of office space

 Documents can be retried very quickly
 Data is safe guarded against unauthorized access by a password

Disadvantages of electronic filing

 It takes time to format a document scanned into the computer and to print hard copies
 Equipment software and training are very expensive
 Back-up copies are required as files can be accidentally deleted
 It can be frustrating when there is a breakdown of equipment or system or if there is a power
failure, and there is no back-up power supply.

Procedures for preparing records for filing

 Inspecting – examine each incoming document to ensure that it has been released for filing
 Indexing – decide the title under which each document should be filed

 Coding – marking on the document the correct indexing order in which the units of the name
should be written e.g. 3 2 1
Dale Peter Roberts
 Cross-referencing – preparing a cross-reference for each document that may be requested
under more than one title, stating where the document is filed and placing the cross-reference
in any folder where the document is likely to be requested.
 Sorting – arranging the documents in a concertina file or document sorting equipment with
lettered suspended folders for placing them in
 Storing – inserting the documents at the front in the appropriate folders in the filing cabinet.

Diagram showing the information cycle

Collecting

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Destroying Using
The first step in this cycle is:

 Collecting the information needed

 Using the information
 Retaining the information that is needed or seen as important
 Storing the information for future use
 Retrieving the information when it is needed in the least time possible
 Transporting the retrieved information as quickly as possible to the person who asked for it
 Returning the information to the storage
 Destroying the information when it is no longer being used or of value

Indexing: methods and procedures for cross-referencing

Indexing – is a way of pointing out or indicating where to find something.

A cross-reference – is a note or indicator on one document referring a person to another document or

location. There are two methods of cross-referencing, that is using a cross-reference card and
photocopying.

Cross-referencing is done when:

 The name of the firm is changed

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  A person’s name is changed by deed poll
 The name of a lady change through marriage
 The correspondence relates to more than one subject and can be searched by looking for any
one of them

Charge-out procedures

To lend a file is to charge it out. The charge-out procedures are:

 A request is received for the file

 Details of the request are recorded in an out files register
 The file is retrieved from the cabinet drawer
 An out guide or sheet or a suspended out wallet is prepared and inserted where document or
file is removed
 A memo is placed in the tickler file
 If the file is not returned on the specified day, following-up action is taken
 When the file is returned, a record is made of this, the out guide is removed and the filed
replaced.

Types of out markers/cards/sheets

 An out guide
 An out wallet

Follow-up systems

A follow-up system is used to monitor the progress of something or trace a charge-out file and ensure it
is returned when due.

 Calendars - are used to jot down notes against the dates as reminders of coming events
 Card indicators – are used to show the filing clerk matters upon which action is needs to be
taken at some future time,
 Diaries – are used to write details of current events and also events that are to take place in the
future
 Out guides or sheets – are used to record information about who has files out on loan so that
these can be obtained when they are not returned on time
 Color coding – as signals is used to distinguish one document from another, e.g. in alphabetical
filing each letter is assigned its own color so that if a file labeled with a particular color is
wrongly put into another letter with a different color, it is easy to locate
 Year planners – are used to record details of activities or events planned for the whole year

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  Tickler files – are used to place reminders of matters that need to be dealt with on specific days
of each month
 Searches – searching for files and folders can be done manually for paper records or by using
the search command of the relevant program for electronic files and folders
 Shared databases – sharing files on computers with others if there is no password and if you are
working on a network.

Methods and procedures for dealing with inactive files

As business progress, expands and grows, new records are created in the filing system. It is therefore
necessary to create space for additional records. This is done by removing inactive and dead files from
the system. However there are some files that have to be retained in the system longer than others,
while others must remain as long as the business exists.

 Microfilming – is the photographing of documents such as drawings, plans and business records
at a reduced scale using microfilm cameras or employing high speed recorders to transfer
electronic data on computers onto microfilm

Microfilm formats

 Roll film – a roll of 16mm microfilm with images of letter size documents. The film is placed in a
cartridge or cut and loaded into jackets for viewing by a microfiche reader
 Microfiche – a sheet of microfilm with photographic images of a multi-page document arranged
in grid pattern.
 Aperture card – a card with a rectangular window into which is mounted a 16mm or 35mm
microfilm image of a large document, such as an engineering drawing.

Advantages of microfilming

 It saves storage space and economizes weight

 Inexpensive duplicates of enlarged documents can be made very quickly
 More durable and permanent copies of documents can be made and stored safe

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Disadvantages of microfilming

 It needs expensive equipment

 Microfilming and retrieval cannot be done when there is a power failure
 Inferior filming can be difficult to read.

Classification of records

 Active records – records that are used frequently.

 Semi-active records – files that have already been dealt with and are used less frequently.
 Inactive records or files – files that are no longer used but are retained for legal and
organizational purposes. They are removed from the original storage equipment to special
boxes and placed in an archive. These files are also known as dead files

Retention period

A file retention schedule is the length of time for which an organization decides to keep certain
documents. The records retention period depends on the following factors:

 The need for the record at some future time

 Legal stipulations for documents to be kept
 Accuracy of the records – for auditing
 The possibility of requirement of the original as evidence in a court of law or as proof of a
transaction
 The available storage space

Procedures for dealing with inactive files

The filing clerk should:

 Remove all inactive records from the filing cabinet drawer and close the files
 Place these records in different colored folders and stamp or label each one TRANSFER FILE
 Write the names or numbers and dates of the inactive files in a dead files register and state
where they are stored
 Put all the transfer files in specially labeled boxes and take them to a storeroom or the records
centre of the firm.

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  Or if the equipment is available, microfilm the documents, especially essential records, to save
valuable storage space, and archive them.

Disposal of files

Records that have been microfilmed or are no longer required by an organization for legal or
organizational purposes are destroyed on the authorization of the appropriate person.

A small firm can destroy its unwanted records by burning. A large organization can destroy its unwanted
records by:

 Shredding –confidential records

 Recycling –reference, non-essential and non-confidential records
 Electronic records are deleted from a hard drive or flash drive

Archiving

Papers and records that are selected for permanent preservation are placed in labeled boxes and
transferred to a new location known as the archive.

Electronic documents are archived on computers using Windows operating system by using the ZIP file
format to compress data

Backing up files

Some forms of external media and methods for backing up data are:

 External hard drives

 CDs and DVDs
 Flash drives
 File servers
 Online storage
 Offsite backup

Electronic documents

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An electronic document is data stored on a computer in the form of, such as. Word processing
documents, spreadsheets, presentations, databases, e-mail messages, portable documents format (PDF)
files and wage pages.

Records management systems

A records management system is the most effective way to create, organize, retrieve and access vast
amount of information that flows in a business. It must satisfy the requirements of the users as well as
the legal and operational requirements of the organization

Legal stipulations regarding documents

Objective: Describe the main legal stipulations governing access to and retention of documents

Your rights as a citizen are included in the laws of your country. You are entitled to see what information
others are collecting about you, e.g. you can request to see your personal file from your school or
employer. If you have access to confidential information, such information must not be communicated
to the public.

Importance of observing legal stipulations

The law stipulates that a firm must keep certain documents, some of which are displayed at its
registered office, e.g. its certificate of incorporation and value added tax (VAT) registration certificate. It
is important that a firm observes the law for several reasons. These are:

 To show that the firm is duly registered as a lawful entity

 To verify deductions from employee’s pay and sales tax are transmitted to the relevant
authorities.
 To satisfy the requirements of external auditors
 To provide proof of claims made in income tax returns.

Nature of the right of access

Organizations, including government collect information about people.

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Some of this information is personal, while other items relate to education, training, employment and
assets. It is the right of all persons to be aware of what is happening around them and how their country
is being governed, by having access to public documents and documents relating to information other
people or organizations have collected about them.

Technology has made it possible for people to access all sorts of information on databases via the
internet

Limitations on the right of access

Although it is your right to have access to public documents under the Freedom of Information Act,
there are limitations on the right to access, e.g. if you are working in an organization, you can ask to see
your own personal file but not those of another employee or files relating to the operation of the
organization if you are not authorized to do so.

Also limitations are enforced on the right of access to certain public documents. You have a right to
access certain public records but at the same time personal information on individuals must be
protected.

Documents kept by organizations are accessed only by authorized personnel, e.g. personnel files with
information on employees can be accessed only by the staff from the human resources department

Freedom of Information Act (FOIA)

The Freedom of Information Act is a law that entitles a person access to government records. Upon
written request, government offices are required to publish those records, unless they are withheld
from disclosure, by law. When they are withheld, the government must state why they cannot be
released to the public, e.g. for national security reasons.

Infringement of copyright

Copyright – is the exclusive legal right of a person or organization to the results of his or her creativity.

As soon as you have created an original piece of work as an employee, your employer has the right to
this creation.

Infringement of copyright is the use of someone’s original work without prior written permission of the
creator of the work.

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Plagiarism occurs when one tries to pass off someone else’s work as one’s own. Both are literary or
intellectual theft.

Defamation

Defamation – is an attack on the reputation of a person or company. Such an attack can be an oral or
written statement that is not true, malicious and injurious about a person or company. Oral statements
are considered slander, while written statements are considered libel. A person can be taken to a court
of law for slander or libel.

One has to be very careful when creating documents to ensure that they do not contain statements that
seek to defame another person or company.

Breach of confidence

Confidence – is the firm acceptance of the reliability of a person or thing. An obligation of confidence
exists when there is an agreement or by the merit of a relationship between two parties when one
confides in the other.

Confidence is a duty of confidentiality imposed on any person who has access to private and personal
information about others, trade secrets, commercially valuable information or government secrets while
on duty.

Confidential information is information that would not, in normal circumstances, be exposed to persons
who should not have access to it.

Types of confidential information:

 Private and personal information

 Trade secrets or commercially valuable information
 Government secrets

A breach of confidence arises when information of a confidential nature is conveyed to a person in

confidence and it is disclosed or used by the recipient without permission and the disclosure or use of
the information is detrimental to the confider.

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The law of breach of confidence safeguards information that is confidential in nature. An actionable
breach of confidence safeguards confidential information by stopping recipients of confidential
information disclosing or using the information without being authorized to do so

Parliamentary privilege

Parliamentary privilege is a legal protection within the parliament of a country whose constitution is
based on the Westminster system. It enables members of parliament to express their views openly
during a parliamentary sitting without fear of being taken to a court of law for any statement made.

The disadvantage of parliamentary privilege or immunity is that a member of parliament can abuse the
privilege by making false allegations about another person or an organization

Secrecy provision

Organizations such as governments, learning institutions, business organizations, internet service

providers and owners of websites can collect personal information about people with whom they deal
so that they can determine how best they can serve the people from whom the information was
collected

The information collected is protected by law. Protected information is data about a person collected
during the course of doing business. Protected information may be communicated only to the persons
concerned.

Filing equipment and supplies

Objective: Explain the use of filing equipment and supplies in records and information management

The safe keeping of document in any office requires adequate, durable and appropriate equipment and
supplies. Suitable and safe equipment is used to store documents while sufficient supplies of the right
specifications are used to organize and identify the documents. Equipment that can be locked is
recommended to safeguard the confidentiality of information in certain documents.

Filing equipment

 Vertical filing cabinets

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  Horizontal filing cabinets
 Lateral filing cabinets, Shelf filing cabinets, Circular rotary filing cabinets, plan filing cabinets
 Box files
 Desk file
 Concertina or expanding file
 Folders
 Minute sheets
 Index cards
 Dividers
 Treasury tags
 Fasteners
 Microfilm and microfiche
 Charge-out cards, out guides
 Flash drives, CDs, DVDs, manila folders, suspension folders, maps, zips, hard drives, electronic
storage media, floppy disk

Centralized and departmental / decentralized records management system

Objective: Differentiate between centralized and departmental records management systems

A centralized filing system is one in which records for the whole organization is stored at one central
location, e.g. the registry or records department, usually under the control of a records staff supervisor
or several persons.

Advantages of centralized filing

 The filing procedure used is uniform or standardized

 Equipment, space and staff are used more effectively and economically
 It reduces the need to make several copies of the same document

Disadvantages of centralized filing

 It is not suitable for confidential records

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  Staff members employed in centralized filing may not be knowledgeable about matters
concerning the departments
 The procedures involved in requesting files may cause delays
 files may be needed in more than one department at the same time

Departmental or decentralized filing

A departmental or decentralized filing system is one in which records are stored in each department
under the control of the person authorized to do so. It is suitable for records containing confidential
information and those that are frequently used.

Advantages of decentralized filing

 Departmental records are readily available near the person who creates and uses them
 It is suitable for confidential, frequently used or specialized records
 The filing system is easier to manage

Disadvantages of decentralized or departmental filing

 Effective control of records cannot be maintained

 Equipment and space are not used economically
 There can be difficulty in locating information when a staff member is absent

Organization and operation of records management systems for small and large-scale businesses

In a small business, the records management systems used can be paper-based documents stored in a
single filing cabinet with some documents stored on a computer. This can be handled by one employee
or several assigned persons in a department

In a large-scale business, the records management systems used is complex. It is organized and operated
by staff members in each department or by clerks in the centralized records and information
management department

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