CHAPTER 11

FILING & INDEXING

 Concept and Purpose of Filing

 Importance of Filing
 Types of Filing System: Tradition and Modern
 Methods of Filing / Bases of Classification of Files: Alphabetical, Numerical, Geographical,
Chronological and Subjective
 Qualities of Good Filing System
 Concept and Purpose of Indexing
 Types of Indexing
 Qualities of Good Indexing

CONCEPT AND PURPOSE OF FILING

Meaning of Filing
It is the process of classifying, arranging and storing record so that they can be located when required. It is
also the process o collecting and arranging records or their copies in such a way so that whenever it is
needed it could be found very easily. All office receives letters and dispatches that are kept for the future
use. They are to be stored in a safe place. For that filing is required. It is an important part of management
that helps to decide about any thing in a legal and systematic way. It is the process of arranging and
protecting records so that they may be found and delivered easily when needed for future.

Purposes of Filing
The main purpose of filing is to provide security to important records. It is the smaller for information. From
a quick reference regarding the past activities its objectives can be taken. Its objectives can be extracted as
below:-

i. Collection of documents
The first purpose of filing is to collect documents from internal as well as external sources. Such
documents are required for future reference and collected at one place.
ii. Systematic arrangement of records
The documents collected from various sources need to be classified and grouped according to their
nature and properties. Nest purpose of filing department is to arrange records in a systematic manner
for future reference.
iii. Preservation of records
The major purpose of filing is to protect the records from fire, rats, insect, theft, dust, water etc.
Therefore, filing is safeguarding of important records for future reference.
iv. Evidential purpose
Some records are kept for proof purpose. Filing department preserves some records so that they can
be presented as proof at the time of dispute between two parties.
v. Quick and easy retrieval
Systematic filing helps in easy location of records whenever required. Quick obtaining of records
assists in quick decision so that the prestige of office can be boosted high.
vi. Guiding purpose
Many plans are formulated on the basis of past records. The past records are available in the filing g
department. So filing is kept to have a guidance in planning.

IMPORTANCE OF FILING
Filing is the memory center of a business concern. It facilitates quick reference of past and present records
of business transaction. Its further importance can be explained as below:

i. Efficiency
Filing avails the required document and information at the right time. It prevents from loss of time
and energy in searching the document. Therefore, it increases the efficiency of staff.

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 ii. Protection of records
Filing preserves records from its physical damage and loss. The files are kept in the safe custody in
the cabinets and in this way valuable data and information can be protected for longer period.
iii. Reference for correspondence
Filing provides reference for the correspondence with suppliers, customers, government, etc.
previous letters like circulars, references, orders, complaints, inquires, etc. are taken as reference
while making decision with stated parties.
iv. Guideline for planning and control
Filing makes past and present records available to the management. The management formulates
future plans on the basis of those records. The management also evaluates enterprise activities and
takes corrective action on the basis of filing system.
Legal formalities
Filing fulfills various legal obligations of an organization as it maintains records as prescribed by
law.
v. Increase goodwill
As filing facilitates quick and efficient performance, it contributes to increase the goodwill of
organization.
vi. Evidential proof
Filing is important to settle bilateral disputes. The records can be presented as proof so that
misunderstanding can be minimized.

TYPES OF FILING SYSTEM: TRADITIONAL AND MODERN

1. TRADITIONAL SYSTEM OF FILING

It is old method of filing. It is used in small and medium scale organizations. There are 4 types of
traditional filing. They are:

i. Spike/Rod/Wire Fling
It is also known as spike filing. It is the oldest filing method. In this method a piece of wire is fixed
in wooden stand and that stand is kept on table or hanged somewhere. The letters and documents are
inserted inside the spike. Whenever letters and documents are required for reference all subsequent
letter are taken out. It used to be used in banks, retailer shop, hospitals etc.

Advantages of Wire Filing

 It is very simple.
 It is cheapest method.
 It uses less space.
 It uses less time.

Disadvantages of Wire Filing

 Used only in small and medium scale organization.
 Limited number of documents can only be filed.
 The documents are not protected by fire, dust, water etc.
 It is inconvenient.
 There is possibility of leakage.

ii. Docket or Pigeon Hole Filing

This filing is also known as docket filing. A small cabinet is used for filing. The holes look like
pigeon hole and each hole is given alphabet label. Letters and documents are kept into related holes.
It is usually kept in post office. Here, the unnecessary files are destroyed.

Advantages of Pigeon Hole Filing

 It is simple and easy.
 It protects files from dust and water.
 It is economical.
 It takes less time.

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 Disadvantages of Pigeon Hole Filing
 It is only suitable for small organization.
 The cabinets are small.
 Only limited number of documents can be kept.
 It is difficult to keep old records.

iii. Cardboard Filing

It is one of the popular traditional methods of filing. In this, a thick cardboard file and folding sheet
are placed one upon another. The two ends are tied with each other with the help of rubber. The
papers are kept in chronological order. It is used for few transactions. The files can be kept in cabinet
for protection.

Advantages of Cardboard Filing

 It is simple and easy.
 It is economical.
 It helps in fast recording of documents.
 It requires less space.

Disadvantages of Cardboard Filing

 It is useful only for few records.
 It needs cabinet for protection.
 It is time consuming.
 There is chance of loss of documents.

iv. Box Filing

In this filing method, boxes are made up of wood or cardboard. The spring clips are fixed inside the
box to hold papers. Whenever letters and documents are required for reference all subsequent letters
are taken out. The documents are kept chronologically one upon another.

Advantages of Box Filing

 It is simple and easy.
 It protects the documents from fire, dust, insects, water and so on.
 It is cheap.
 It is convenient.

Disadvantages of Box Filing

 The spring becomes very loose because o constant use
 Sometimes papers cant be held properly
 It is difficult to locate documents timely.

2. MODERN FILING SYSTEM

Filing system is very simple. Traditional system of filing didn’t fulfill the requirement of the
business. So it has been replaced with modern filing system. Modern filing system is the
improvement of traditional method of filing. It can be classified into 2 types. They are:

A. Horizontal Filing
In this system, the documents or letters are chronologically placed in folders one upon another in a
horizontal way. It is of two types. They are

i. Flat File
It is made up of cardboard or thick paper. Each flat file is attached with a pair of metal clips
or laces on the left hand side of it to tightly hold the papers. Pair of holes is made on the left
hand side of the paper using a punching machine. Then the papers are inserted into the clips
or laces and the clips are locked or the laces are tied up to tightly hold the papers. The papers
are chronologically placed one upon another in a flat position in a file.

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 ii. Lever Arch File
It is made up of cardboard or thick plastic. The metal arches are made for holding papers or
documents. Pair of holes is made on the left hand side of the paper using a punching machine.
Then the papers are inserted into the arches and the arches are locked to tightly hold the
papers. The papers are chronologically placed one upon another in a flat position in a file in
alphabetical order. In this papers can be taken out or inserted without disturbing other papers.

Advantages of Horizontal Filing

 It is simple to understand and easy to operate.
 The papers are chronologically placed in alphabetical order which helps in easy location of
documents.
 The documents are protected by fire, dust, water etc.
 It requires less space.

Disadvantages of Horizontal Filing

 The files are kept one over another so they are difficult to locate.
 It is time consuming.
 It is difficult to take papers out and insert them in.
 It has less expansion and flexibility.

B. Vertical Filing
It is the most popular type of filing in modern offices. In this method, documents are kept on upright
position in especially pre prepared folders or files. The folders or files are made up of cardboard or
papers which are folded in the middle to hold the documents in them. Documents are placed in a
chronological order without punching and typing them up in a pair of clips. It requires following
tools and equipments.

1. Folders
They are made up of strong cardboard papers to hold the documents. The back of the folder is higher
than the front part. They are placed in cabinet and their external part is visible.
2. Cabinet or drawer
It is necessary to keep the folders properly. Folders are kept vertically inside it. The size of drawer is
dependent upon the number of papers to be kept in it. Generally 5000 papers are kept in one drawer.
3. Guide cards
The files are kept in a drawer of filing cabinet. A guide cared is placed between the folders to divide
the drawer.

Advantages of Vertical Filing

 It is easy to file the documents.
 It is economical.
 It is flexible.
 It provides safety to the documents.
 It maintains the secrecy of the documents.

Disadvantages of Vertical Filing

 It is costly compared to horizontal filing.
 There is more chance of wearing and tearing of letters and documents.
 There are chances of mixing up of files.

Different forms of vertical filing are as below:

i. Suspension Filing
It is an improved form of vertical filing. In this filing, drawer containing documents are fitted metal
frames in which folders are fitted with hinges or hooks to suspend the file. Here, the headings or
caption are found in the folder. It is the best method of filing. It contains all the merits of vertical
filing method. In this filing when the drawer is opened all files names can be clearly seen. It contains
folders and cabinet which is expensive. Therefore, it is its disadvantage.

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 ii. Lateral Filing
It is modified version of suspension filing; it is one of the most popular forms of filing system used
in modern offices. In this filing system, envelop type of folders are used which is made up of metal
strip. It uses hinges or hooks that can hold papers better than shelf. The top of the folder is fitted with
an indicator. It is useful for larger organization. It uses less space and folders are also quickly
located. It is less expensive and can also expand its space
iii. Open Shelf Filing
In this stage, high shelf is used to keep folders. The files are laterally kept in open shelves in
numerical order. In some cases, files are horizontally kept in the shelves. Guide cards can be used in
between folders. The open shelves may be of any height. It may even touch the ceiling of 9-10 feet.
It includes all merits of lateral filing. The main disadvantage is that it lacks secrecy and safety. It is
not suitable for small offices.

METHODS OF FILING: ALPHABETICAL. NUMERICAL, GEOGRAPHICAL,

CHRONOLOGICAL AND SUBJECT WISE

Bases of Classification of Files

Classification of files refers to the process of selecting heading under which documents are grouped or
classified on the basis of common characteristics. The bases of classification are as follows:

1. Alphabetical classification
The filing method under which files and folders are arranged in order of alphabets of the names of person or
institution concerned with such file is alphabetical classification. It is most popular and common method of
filing. In case name of more than one person starts with same letter then second letter of name is taken into
consideration. It is flexible method. It is used in both small and large organization.

Advantages
 It is simple and easy to understand.
 It doesn’t need separate index.
 It is flexible.

Disadvantages
 Time consuming
 Difficult to arrange files
 Difficult to locate in case of common names

2. Numerical classification
The filing method under which files and folders are arranged in order of number is called numerical
classification. All files and folders are given separate numbers. It is indirect method of classification of
filing. In this filing alphabetical index is required. It includes name, address, phone number, subject and
other information along with file number.

Advantages
 Suitable for large offices having large number of files and folders
 Accurate method of filing
 It is flexible
 Separate index can be easily developed using numbers.

Disadvantages
 It is expensive
 It is time consuming
 Not suitable for small organization
 It is not easy to operate
 Separate alphabetical index is required.

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3. Subjective classification
In this filing method, records are classified according to their subject; letters and documents are classified
and arranged in files and folders into subject or sub-subject wise. In this filing, subject must be arranged
alphabetically. It is widely used in those cases where subject is more important than the name of the person
or organization. All documents relating to same subject are filed together in one file. Subjective filing is
very useful in courts, police station, libraries, etc. where different subjectives are to be arranged.

Advantages
 Simple to operate
 Flexible
 Convenient
 Easy to locate

Disadvantages
 Not applicable for filing miscellaneous subject
 Time consuming
 Difficult to locate when subject matter is not properly understood

4. Geographic classification
In this method, files are grouped according to the geographical location of firm, organization or person.
Under this method name of places are written in file and are arranged in drawer either in alphabetical or
numerical order whichever is suitable for organization. It used in multinational companies or those
organization whose business and branches are locate din many places of the nation or the world.

Advantages
 Easy to understand and use
 Can be arranged in alphabetical and numerical order
 It used in those organizations whose business is engaged in correspondence with the businesses all
over the globe or the nation.

Disadvantages
 Expensive
 Not suitable for small scale organization
 Time consuming
 No use of card or index

5. Chronological classification
In this method, files and folders of documents are arranged in an order of their date, day, and time. In an
office, several letters and documents may be received and dispatched. They all are arranged according to
time and date when they were received and dispatched.

Advantages
 Simple to understand and easy to operate
 Quickly located if their dates are known.
 Less expensive

Disadvantages
 Not suitable for large offices.
 When clear dates are not mentioned then there can be difficulty.

QUALITIES OF GOOD FILING SYSTEM

1. Simple: It should be easy and simple to be understood by the entire employees.
2. Economy: Filing should be cheap and must come under the budget of the organization. The
installation and operation cost should be low.
3. Compactness: It should be compact and should not take unnecessary space
4. Accessibility: Files and folders must be preserved for future and must be easily accessible.

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 5. Suitable: It should be suitable for any kind o organization. It should meet the requirement of
business
6. Flexible: It should be flexible enough. It must be dynamic and changeable according to the needs of
an organization
7. Safety: A good filing system must preserve all the necessary documents from insects, dust, fire,
water and so on
8. Indexing: A good filing system must have proper indexing
9. Classification: The files should be classified in a proper way so that it helps in easy location.

CONCEPT AND PURPOSE OF INDEXING

Concept of Indexing
Simply, index means indicator or guide. It is anything that indicates guides or points out something. In
record management, indexing is defined as indicator or guide for locating, files folders or records. It is the
list of names, subjects, or dates which indicate the exact location of letter and documents preserved in files
and folders. It helps to provide required information in time. An index should not be confusing. It should be
easy to access records.

Purpose of Indexing
Indexing can be compared with the eyes of filing. It ensures easy and quick reference to the required record.
Its main purpose can be listed below.

1. To increase efficiency
Indexing helps in speedy location of records. It saves time and effort in searching records, efficiency
of staff is increased.

2. Guide to the filing

One of the major aims of indexing is to guide the location of records. It serves an essential guide to
the filing system.

3. Alternative use
Indexing not only provides location of records, it also serves as a reference for minor information
regarding the file. We can get name, address, telephone no., etc. of concerned person or organization
from the index.
OR,
 To indicate right position of files and folders
 To find files, folders easily
 To help in quick location of files and folders
 It provides future reference
 To increase efficiency of filing

TYPES OF INDEXING

1. Book index
It is mostly found in register books, note books etc. It is simple type of indexing. In this index, book is
market with alphabets in the right side of the paper in such a way so that all alphabets can be seen at a
glance. Here, name of persons or documents are arranges in alphabetical order. All the related files are kept
in same alphabetical section. For example, telephone diary.

Advantages
1. It is simple method to understand and operate.
2. It is less expensive method as no expensive instruments are needed.
3. It is a safe method as there is no chance of losing the pages.
4.
Disadvantages
1. There is no scope of expansion.

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 2. Cutting of unnecessary information makes index dirty.
3. Insertion of new information at its alphabetical order is not possible.
4. It is not suitable for bigger organization.

2. Loose leaf index

It is improved form of book index. In this type of indexing, instead of using hard hound register book, book
sheets or paper are used in which alphabets are market on the right hand side of the pages. It is very flexible
and cheap. It is simple to operate an easy to understand. New sheet can be easily added and can be removed
easily. But there is chance of misplacement of sheets.

Advantages
1. It is more flexible than book index.
2. It is a safe and easy method of index.
3. It is a simple and less expensive method of indexing.

Disadvantages
1. There is chance of misplacing the sheets.
2. There is possibility of learning baring out and loss of sheets.

3. Card index
To eliminate the drawbacks of ordinary page index, vertical card index is introduced. Abbe’ Jean Rozier
(1734-93), a French citizen is said to be invention of card index. The standard size of such cards is 3”×5”
(inch).

The card holds the information like name, address, phone no., subject, etc. Such cards are arranged
alphabetically, subject wise or geographically in the drawers. Guides are placed in between to indicate
proper location of cards.

A hole is punched into each card through which an iron rod is passed to hold the cards in standing position.
The cards can be moved on rod conveniently. The method of indexing is popularly used in libraries, banks
JSCs etc.

Advantages
1. This system is highly elastic as new cards can be inserted at any time and any place.
2. Any method of arrangement can be used to classify the cards.
3. Guide cards can be used to highlight certain important cards.
4. Additional information can be easily added on the cards.
5. The index cards can be easily cross referred.
6. Card index can be used for alternative purpose like getting name, address, telephone no., etc. from
the cards.

Disadvantages
1. Cards may be substituted to conceal fraud.
2. It is difficult to supervise continuously whether cards are at their proper place or not.
3. Cards get torn or soiled through constant handling.
4. This system of index is costlier to small concerns.
5. It is time consuming in comparison to visible index.

4. Vowel index
It is improved form of book index. It is generally used by large organizations. Index book is maintained on
the basis of vowels. Pages are firstly selected by initial letter and then by vowel occurred after the initial
letter. For example Gandhi will be recorded in section “g” and in vowel “a”. It is time consuming. It is
difficult to search when many names begin with each alphabet.

It is subdivided under the following headings:

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a. Visible card index
Here, cards are arranged in flat tray or metal frame. Each card is attached to metal hinge. Name,
address and other documents are visible by touching other cards. Trays are attached vertically to metal
stands. Details can be written or typed in front and back of cards. Less space is used and cards can be
easily located. It saves the time. It is flexible.

b. Strip index
Under this system one line entry is made in a narrow strip of card board paper. Usually each strip is put
in a frame in such a way that they can be taken out and replace easily. The frames can be fixed on the
walls or put on the table with stand.

Advantages
1. It is used for quick reference.
2. It saves time and energy, and increase efficiency.

Disadvantages
1. It is an expensive method.
2. It I useless for small business concerns.

5. Rotary/Wheel card index

It is modern form of visible index. It is suitable for big organization. Here, cards are mounted round the hub
of wheel. A single wheel can hold as many as 5000 cards. In this cards can taken out or inserted without
disturbing other cards. It is arranged alphabetically. Wheels are rotated to find card.

Advantages
1. It enables quick reference of cards.
2. It is less expensive as no expensive equipment is needed.
3. It is less space consuming.

Disadvantages
1. Information written on the cards is not secret.
2. It is not a safe method.
3. It is not suitable for small concerns.

QUALITIES OF GOOD INDEXING

1. Simple: It should be easy and simple to be understood by the entire employees.
2. Economy: Indexing should be cheap and must come under the budget of the organization. The
installation and operation cost should be low.
3. Flexible: It should be flexible enough. It must be dynamic and changeable according to the needs of
an organization.
4. Compactness: It should be compact and should not take unnecessary space.
5. Safety: A good indexing system must preserve all the necessary documents from insects, dust, fire,
water and so on.
6. Accessibility: Files and folders must be preserved for future and must be easily accessible.