The Office in a Changing Business World

Chapter 1

Topic 1-1

Topic 1-2

What is an Office?

The office is a place of work for many categories of workers

a place in which the affairs of a business, professional person, or organization are carried out

Offices Are Information Driven:

Creating information– Letters, reports, presentations– Making decisions based on information

Searching for information– Accessing databases, the Internet, the company

intranet– Using reference manuals and books

Offices Are Information Driven:

Processing Information– Opening incoming communications, photocopying,

preparing spreadsheets, orders, invoices Managing Information

– Maintaining calendars, databases, files, financial records

Communicating Information– Answering telephones, greeting callers and visitors,

delivering presentations

Thinking Critically

What do you think a bank president means when he says “…we are completely dependent on …office employees?”

Who Needs Office Competencies?

EVERYONE! Professionals (white collar workers) Blue collar workers

State-of-the-Art Technology

Exists in Modern offices Includes Intranets (within the business ONLY) Includes the Internet (world wide web and

beyond) Includes computers, fax machines, scanners,

security systems, etc.

Why do you think that being part of a world-wide business activity now is easier than it was even a decade ago?

Traditional Offices

Permanent–Located where the company does business

Hoteling–Assigning temporary office workspace to workers as needed

Non-territorial workspace:–Area not assigned to a specific person or task

What about a business that goes to where the customer is and/or isn’t permanent?

Alternate Choices:

Telecommuting– the practice of working and communicating with

others from a remote location. Virtual Offices

– the capability to perform work activities away from a traditional office setting; has no physical form but allows you to perform work activities as you would in a traditional office setting.

Thinking Critically:

What are some problem that could a telecommuter possibly encounter in their day to day career?

What are some possible technology that might be critical for effective and efficient telecommuting?

Do you know of any offices that continue to use technology of an earlier period, such as typewriters?

Why might the latest technology no lead to improved productivity?

Examples of Alternate Choices

Mobile offices like those found at construction sites.

Home offices for those who need to be at home, run the business from the home or who are self-employed (freelancers).

Thinking Critically

Why would a company choose to have non-territorial workplaces?

Do you know someone who works in a home office? What type of work does that person do?

Questions 2, 6 and 7

What kinds of employees need office competencies?– EVERYONE, blue and white collar workers, office workers,

factory workers, etc. How does a traditional office differ from a virtual office,

a mobile office, and a home office?– A traditional office is permanent, a virtual office has no

physical form but allows you to work as if in a traditional office setting, a mobile office moves when the work conditions move and a home office is space which allows you to remain at home and be productive.

What makes telecommuting a feasible way of handling office work?– Allows employees to be at remote sites but share necessary

information through alternate means.

Topic 1-2 Understanding the organization to help make sound decisions requiring judgment to successfully complete the work.

Types of Business Organizations

Single Proprietorship

Partnership

Corporation

Single Proprietorship

Also known as a Sole Proprietorship a business owned by one individual may be of any size sole legal and financial burden business usually ends when the owner dies or

sells

Partnership

a business that is not incorporated and has two or more owners

legal and financial burden shared must be legally recreated each time a partner

leaves or is added

Partnership

a business that is not incorporated and has two or more owners

legal and financial burden shared must be legally recreated each time a partner

leaves or is added

Corporation

a business organized under the laws of a particular state for which a CHARTER* was secured (*written grant of rights from a government)

many owners in the form of stockholder legal and financial burden fall to the business not

individual owners may be publicly or privately owned may be for profit or not-for-profit

Governmental Units

National– Department of the Treasury– Bureau of Labor– Environmental Protection Agency

State– Department of Commerce– Occupational Safety and Health Division

Local– Board of Education– Marriage License Bureau

Goals

Not-For-Profit– Provide necessary

services to meet the needs of the people

– To stay in business

For-Profit– To make money– To meet the needs of the

clients– To stay in business

“The Bottom Line”

Profit and Loss Statement or Income Statement shows the financial condition of a business

Revenue: income, money or other gainExpense: financial cost, fee, chargeProfit: the difference between revenue and

expenses shared among/distributed to owners

Balance Sheet

Presents the financial condition of a company as of a specific date

Assets: goods and property owned

Liabilities: debt; money owed to creditors; creditor equity

Owner’s equity: owner’s share of the worth of a firm; owner’s claim to assets; capital

Accounting Equation: Assets = Liabilities + Owner’s Equity

Structure of Organizations

Hierarchical: in order of rank or authority

Different types of employees at various levels of the organization

Organizational charts help visualize the structure

Board of Education

Superintendent

High School Principal

Teachers

Junior High School

Principal

East Elementary

Principal

South Elementary

Principal

West Elementary

Principal

Treasurer

Assistant Treasurer

Sample Organizational Chart

Board of Directors– Establish the guiding policies of the business

Senior Management– Carry out the policies of the board of directors– Chief executive officer

Middle Management– Direct the day-to-day activities of the organization

Department Employees

Management Structure

Employee Empowerment

Enabling employees to make decisions for the business without review by higher-level managers

Movement toward working in teams with all employees involved in the decision making process