The Office in a Changing Business World Chapter

The Office in a Changing Business World Chapter 1 Topic 1 -2

What is an Office? l l 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: l Creating information – – l 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: l Processing Information – l Managing Information – l Opening incoming communications, photocopying, preparing spreadsheets, orders, invoices Maintaining calendars, databases, files, financial records Communicating Information – Answering telephones, greeting callers and visitors, delivering presentations

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

Who Needs Office Competencies? l l l EVERYONE! Professionals (white collar workers) Blue collar workers

State-of-the-Art Technology l l 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.

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

Traditional Offices l Permanent –Located l where the company does business Hoteling –Assigning l 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: l Telecommuting – l 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: l l 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 l l 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 l l Why would a company choose to have nonterritorial workplaces? Do you know someone who works in a home office? What type of work does that person do?

Questions 2, 6 and 7 l What kinds of employees need office competencies? – l How does a traditional office differ from a virtual office, a mobile office, and a home office? – l EVERYONE, blue and white collar workers, office workers, factory workers, etc. 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 l l l 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 l l l 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 l l l 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 l National – – – l State – – l Department of the Treasury Bureau of Labor Environmental Protection Agency Department of Commerce Occupational Safety and Health Division Local – – Board of Education Marriage License Bureau

Goals l Not-For-Profit – – Provide necessary services to meet the needs of the people To stay in business l 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 l Revenue: income, money or other gain l Expense: financial cost, fee, charge l Profit: the difference between revenue and expenses shared among/distributed to owners l

Balance Sheet l Presents the financial condition of a company as of a specific date l Assets: goods and property owned l Liabilities: debt; money owed to creditors; creditor equity l Owner’s equity: owner’s share of the worth of a firm; owner’s claim to assets; capital l Accounting Equation: Assets = Liabilities + Owner’s Equity

Structure of Organizations l Hierarchical: in order of rank or authority l Different types of employees at various levels of the organization l Organizational charts help visualize the structure

Sample Organizational Chart Board of Education Superintendent High School Principal Teachers Junior High School Principal East Elementary Principal Treasurer South Elementary Principal West Elementary Principal Assistant Treasurer

Management Structure l Board of Directors – l Senior Management – – l Carry out the policies of the board of directors Chief executive officer Middle Management – l Establish the guiding policies of the business Direct the day-to-day activities of the organization Department Employees

Employee Empowerment l l 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