Organization of Filing

After planning a new system of filing, it must be properly organized under any of the
following systems:

I. Centralized System. The centralized filing system may mean keeping (a) all files in
one place (b) all files of general interest centrally, while those of purely departmental
interest are kept by respective department and (c) keeping most of the files in
departments but controlled and staffed from one central point. A centralized filing
system provides for the housing of all important records in one location within the
organization. In other words, it means that all papers about the same subjects from
different departments are filed together on common files in the central filing
department. All records that need to be retained are forwarded by each department
to a central records area. Those departments wishing to refer to papers then borrow
the files from the central filing department. Centralized filing is not suitable for a large
sized organization because placing the central records in a location convenient for all
departments is virtually impossible. However, for smaller organizations, a centralized
system is more appropriate.

Advantages of Centralized Filing

1. Effective Control. Control is exercised more effectively because of fixation of

responsibility on one individual. Effective control is also possible because of
closer supervision within the department.

2. Specialization. Specialization of staff results in efficiency in the filing system.

3. Uniformity. It leads to uniformity of equipment and filing procedure.

4. Elimination of Duplication. Duplication is eliminated as single copy of each

document is required for the central file.

5. Economy. This system results in the economy n terms of operating cost,

equipment, space and overhead expenses.

6. Continuity. This program operates continuously even in the absence of some

employees.

Disadvantages of Centralized Filing

1. Delay. There is considerable delay involved in obtaining the required documents

because of the distance involved between various departments and central filing
system.

2. Unsuitable Classification. Because of adoption of standard classification of

records under a centralized filing system, it may be entirely unsuitable for
documents received for the filing from other departments. For example,
correspondence from sales department might be more suitably filed by
geographical classification, but the centralized system of classification is an
alphabetical one.
 3. Accumulation of Records. Over a period of time, all unwanted documents
accumulate into a big heap.

4. Lack of Secrecy. The confidentiality of records may be very difficult to maintain.

II. Decentralized System. A decentralized filing system is one in which the records of
each department are housed within that department until it is finally disposed off. This
system is more widely used because it allows control over them and has immediate
access to their own records.

(a) Convenience: it facilitates independent filing system involving a single

filing cabinet which has easy access to the documents.

(b) Savings in Time: as it does not involve searching of documents (as in the
case with central filing system), it saves time in locating the records.

(c) Flexibility in Classification: depending upon the need of the departments,

the system of filing and classification can be adopted.

(d) Maintenance of Secrecy: as records are not exposed to others, it is

possible to maintain secrecy within every department of the organization.

Disadvantages of Decentralized Filing

1. Duplication of Equipment. It leads to excess investment on equipment as

each and every department must have its own filing equipment.

2. Occupies More Space. As filing function is involved in every department it

occupies more space. Thus, the available space is wasted under decentralized
filing.

3. Lack of Uniformity. As each department has its own record system, a lack of
uniformity exists in the total records system.

4. Duplication of Records. As each department may retain copies of the same

record, this practice encourages duplication in records.

III. Combination Records System. It is a compromise between centralized and

decentralized filing system. Under this system, a central filing department is used for
all documents of a general nature. All other documents will be filed in the
departments with which they are especially concerned. Under this system of filing,
the responsibility is assigned to the records manager who establishes the network for
the operational procedures of the system. This system combines the advantages of
both the centralized and decentralized system of filing.
 The choice of a particular system of filing depends upon certain important factors
such as (a) attitude of top management towards the storage of records, (b)
competence of personnel, (c) size and type of the organization, (d) philosophy of the
organization with regard to centralization and decentralization and (e) the number
and types of records stored.

Reference: Google Book – Office Organization and Management

by M.E. Thukaram Rao
“Records Management - Filing and Indexing”

Pages 186-188

Links:
http://books.google.com.ph/books?id=2SYgw9UZIMcC&lpg=PP1&ots=5W74NYvZjD&dq=Office%20Organisation%20and
%20Management%20by%20M.E.%20Thukaram%20Rao&pg=PA186#v=onepage&q&f=true

http://books.google.com.ph/books?id=2SYgw9UZIMcC&lpg=PP1&ots=5W74NYvZjD&dq=Office%20Organisation%20and
%20Management%20by%20M.E.%20Thukaram%20Rao&pg=PA187#v=onepage&q&f=true

http://books.google.com.ph/books?id=2SYgw9UZIMcC&lpg=PP1&ots=5W74NYvZjD&dq=Office%20Organisation%20and
%20Management%20by%20M.E.%20Thukaram%20Rao&pg=PA188#v=onepage&q&f=true