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Class : 11
Unit : Business

Describe the importance of records management.

Ans : The importance of record management are described below with the help of following point: i. Source of decision making:- Decision making is the most important part of managerial function full stock manager tax decisions on the basis of past information and future estimation. Record management institutes to provide factual data and figures of past performance of the organization at the time of requirements. ii. Helps to evaluate performance:- Record management helps to evaluate business performance within the defined time. It facilitates to evaluate performance of other organizations of the same life. Timely evaluation of performance helps to manager to take corrective measures actual performance is not in accordance of plan. iii. Brings efficiency in performance:- Record management helps to increase efficiency in official work. It provides records of past and present performance without delay and difficulty at the time of requirement. The manager can take important decisions with the help of past information and implement them in appropriate time. iv. Help to settle disputes:- Record management plays the role of evident proof if any disputes or miss understanding evolved between the parties. The records may also be presented in court if disputes are not settled. Therefore, records are the source of settling disputes. v. Source of control:- All the incoming and outgoing information is recorded in systematic way. It helps to provide response of any enquiry within a specified time. Therefore, record management facilitates to control business operation by providing timely information about future expectation and present achievement. vi. Helps in planning and policy making:- A good record management system provides all kinds of important information of past and present to the management as and when needed. The managers can prepare future plan and policies by getting information from record management. vii. Helps to detect and rectify errors:- Record management helps to detect error if any occurred in the course of regular performance. When any error is detected that can be rectified in time which is essential to bring smoothness in office works. viii. Fulfill statutory obligation:- According to legal process, business organization has to keep records of all the legal documents like contract agreement, financial statement and other legal documents for long duration of time. In some cases, organizations need to present some valuable documents.
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