Records Management System - Essay Example

 Executive Summary: The purpose of this report is to examine the problems in data base maintenance of Justafaye, which is running out of space to store the huge volumes of paper data that have been generated over the years. Moreover, the existing available space is in danger of being flooded in the future just as it was in the past, which could result in the loss of large volumes of data. As a result, this report seeks to highlight the importance of effective database management and to propose some ways and means by which Justafaye can improve its own system of records management, based upon the lessons gleaned from the forays of other firms into this area. In carrying out the analysis for this report, a primarily library based, research study approach is used. The best source of information about the benefits and pitfalls of database management and the manner in which it can be successfully implemented is through the wisdom gleaned from the efforts of other corporations in this area. Moreover, another aspect that arise sin connection with the generation and maintenance of records of data is the ethical aspects, since records helps to keep track of the activities of individuals in the firm and helps to introduce higher levels of accountability and good governance within a firm. Destruction of such data that traces a person’s activity could give rise to issues of ethics, since fraudulent activity may be masked by destruction of documents. Therefore it is vital that data be preserved. However with the constraints of space, it is also necessary to seek those kinds of measures and methods that will help in the maximum efficiency in utilization of space for storage while also ensuring that data is protected and remains accessible. Significant findings presented in this report are the link between corporate governance and data/records management. Furthermore, there is a need to streamline and reduce the generation of paper documents and to seek alternative methods of offline storage such as microfiche or other devices where large volumes of data can be compressed and stored in small spaces. Another important aspect that is highlighted in this report is the need or accuracy in data generation, since wrong data could prove harmful to an organization and also result in colossal wastes of effort, time and money. Introduction: This report has been commissioned by the Board of Directors of Justafaye Industries in order to deal with the problems of database management and maintaining records of data. This report therefore focuses upon the need for records management and its close link with corporate governance. The main sources of data are the existing literature that has taken into account case studies that have been carried out in other organizations, where the value of good information management has been emphasized and principles outlined in order to carry out an efficient process of data management. Corporate governance is concerned with ensuring accountability to the internal and external shareholders of the firm. It ensures that performance standards are also maintained at a level where the organization’s shareholders are protected and the strategic objectives of the firm are achieved. It has been defined as a term that includes “specific issues arising from interaction among senior management, shareholders, boards of directors and other corporate stakeholders.” (Cochran and Wartick 1994, pp 9). The question of accountability is a vital one within any organization because it is based upon the principle that individuals, corporations as well as the community are all responsible for their actions and there may come a time when they will be required to explain those actions to others.(ASISO) . The maintenance of an accurate set of records on individual and corporate actions will ensure that the stream of activity can be traced clearly and responsibility for mismanagement can be placed clearly at the right doorstep. * ASISO 15489, Part 1, pp2 and 13 * Cochran, P. L. and Wartick, S. L, 1994. “Corporate Governance – A Review of the Literature”. IN R. Tricker (ed.) “International Corporate Governance” Prentice Hall In a large organization such as Justafaye, its future progress will depend upon a clear identification of past mistakes in order to introduce better accountability and thereby improved performance in the future. However, there is a great element of risk involved in the improper storage of documents and the possibility of their being destroyed due to sheer lack of space to store them. This could result in the loss of valuable information that could be of relevance to future generations of corporates at Justafaye, who can learn from their predecessors and improve upon those practices. Bettington (2005) has pointed out that about 10-30% of all corporate data is unreliable and there is an information overload that creates liabilities which impact negatively upon enterprise value. Bettington also points out that the assumption that decisions on informational assets are a purely managerial decision is a false premise. Such decisions must be made by the information management department , which also needs to be equally vigilant about corporate governance and the need for ethical codes of conduct in maintenance rather than destruction of valuable documents that could point to wrong doing, as was the case in scandals such as Enron. * Bettington, Jackie, 2005. “Memo to the Board: Good information governance leads to good corporate governance.” Governance and Ethics, 21(2) . Therefore information management and corporate governance play a vital role in ensuring the availability of such information to directors. This is also governed by a code of ethics, wherein the destruction of incriminating documents would representation a violation of ethical conduct. As pointed out by Farrar (2001: 408-415), it is the “tone at the top” that is crucial in shaping corporate behavior and culture. Therefore, according to Farrar, corporate governance is basically concerned with the manner in which the Board of Directors oversees the organization through transparency, accountability, responsibility and fairness. On this basis, therefore he divides corporate duties into three sections; (a) nominations, such as hiring or firing of the CEO (b) risk management or performing the audit process and implementing other measures to minimize risks and (c) arranging remuneration. * Farrar, J. H. (2001). Corporate Governance in Australia and New Zealand. Singapore: Oxford University Press. The maintenance of a sound records management system is closely linked to good corporate governance and risk management, because it provides a system of record keeping and tracking of all the activity that takes place within an organization.(ASISO, pt1:13). Therefore a good data and records management system is vital. * ASISO 15489, Part 1, pp2 and 13 Body Irene Edge (2006) has highlighted the importance of maintaining good documentation because (a) it serves to maintain an accurate record of the activities going on in an organization and (b) provides guidance to those who follow in the corporate pipeline about what their predecessors have been doing. In the case of Justafaye, since the Company has been operational for more than 20 years and has more than 375 employees, it is likely that huge volumes of data are being generated and as per the current policy of the Company, the records that will be immediately available will be only for the most recent three year period. Moreover, storing such volumes of data as hard copies means that there is a tremendous amount of space that is taken up in storing files and papers. Furthermore, storing large quantities of paper records is neither cost effective nor is it efficient.(AS4390-1996). Therefore, there is a need to take up an exhaustive appraisal process in order to determine which are the records that serve the needs of the business and therefore need to be stored and which records can be disposed of. * (AS4390-1996). * Edge, Irene E, 2006. “Write it down! The importance of good documentation.” Tech Directions, 66 (3): 16-19 However, all documents that will be required to ensure accountability of the employees of the organization must not be destroyed. Unless the records are appraised and disposed, they will only continue to accumulate and since the only area available in the building for storage of further materials is the basement which could flood any time, there is a danger that the papers could be destroyed in the future, in which case, the records would vanish. Kwasi (2006) discusses data management in a library where huge voluminous amounts of data have to be maintained, some of which may also be repetitive. This author has detailed the process whereby through effective cataloguing and management of records, automation of records can produce efficiency in usage and storage of data. In a similar manner, it is likely that there may be duplication of records occurring in the case of Justafaye. Therefore it may be necessary to transfer documents from one record keeping system into another, including migration or transmission of records. Initiating a document appraisal process will ensure that duplicate records are compacted, useless records are disposed of and a more efficient method of document storage is initiated. * Kwasi, Dwarko Ampem, 2006. “Retrospective conversion of serials and card catalogue records: A case study of project management in academia libraries.” Library Management, 27(3): 121-155 Project management is the key to better records storage and data utilization. For example, Brown (1988), in a discussion of historical records, has pointed out how the availability of the microfiche format has facilitated the storage of data that goes back several decades. Such alternatives can also be considered by the Justafye database management team. For example by arranging for the storage of documents relating to past years on microfiche as it is done in libraries, there will be less utilization of space, since microfiches occupy much less space than files of bulky documents. Therefore transcribing old data into the electronic format and then storing it in an outside mode of storage such as microfiche where data is compressed into a small space, is likely to be helpful to the Company. * Brown, William, 1988. “Microform Reviews” The Journal of American History, 74(4): 1401 Schroeder Jr (2006) has discussed all the logistical problems associated with the transformation of a paper backlog of data into an effectively stored electronic database of information with additional storage provided for older data on offline storage devices, for easy retrieval. His report is based upon a real case study that was carried out using a real estate firm that is not named in the report. He points out that what is required is preparation, organization, taxonomy and the elimination of all forms of redundancy through exhaustive document analysis. Furthermore in order to achieve these objectives, it is necessary to allocate the relevant personnel, budget and administrative measures. * Shroeder, Jr, Alan T, 2006. “Digitizing a real estate document library.” Records Management Journal, 16 (1): 34-51 Other procedural measures that must be adopted include the selection of a document management system, the allotment of storage space within the premises of Justafaye and the construction of a design story board. All these measures would also apply in the case of Justafaye, because the large volumes of paper data that are currently being stored offline will have to be converted into an electronic format and stored in compact systems that will allow the facility of access while also saving space so that future data storage devices may also be accommodated within the existing premises of Justafaye. Johnston and Bowen (2005) have examined several case studies on records and database management and have concluded that there are clear quantitative benefits to be achieved through the implementation of an electronic document management system. Records are resources that contain information, which are an invaluable asset in any kind of business, because it maintains a record of the activities that have taken place there (AS Records Management, 2007:13). It is especially useful in an organization such as Justafaye which is a large organization with a large activity and employee base. * Johnston, Gary P and Bowen, David, V, 2005. “The benefits of electronic records management systems. A general review of published and some unpublished cases.” Records management journal, 15(3): 131-142 However in order to carry out the process successfully, Johnston and Bowen (2005) identify the following steps that must be followed: (a) The system that is developed must take into account the policy makers and users of the corporation. The Corporations Act (Commonwealth) 2001 also states clearly that directors must be free to make legitimate decisions and if they are to satisfy the necessary criteria (as per section 180(2)) then they must be reasonably informed. This further highlights the link between information management and corporate governance and the necessity for provision of accurate information to make legitimate decisions. Therefore, any system that does not take into account, the needs of the policy makers such as directors and owners or the staff who will need to use and operate the system, is not likely to be a successful venture. (b) Secondly, the electronic database management system must be integrated with the processes of the organization itself. It must be formulated in such a manner that it suits the needs of the organization for which it is intended. For example, Justafaye may not require such an exhaustive system of cataloguing that would be required by a library, rather it would require a more efficient means of secondary storage such as microfiche, where large volumes of data can be stored within the limitations of space. (c) Thirdly, these authors emphasize the link between accountability and data management. The need for maintenance of records arises precisely because it keeps a tab on all organizational activity, and allows others access into the actions of corporates, for which they can be held responsible. (d) The authors also point out that an efficient document appraisal process must be implemented in order to facilitate the process of weeding the documents and eliminating paper records that do not serve a useful purpose. This will also help to conserve and reorganize the existing storage space more efficiently (d) The authors also point out that good records management is linked to good decision making. The maintenance of records serves not only as a record of fraud or embezzlement or such kinds of bad activity by corporates, it also provides a record of steps and actions that were taken which were helpful to the organization. Moreover, the records can provide excellent guidance to future generations, including directors, who will be able to draw upon the wisdom of their predecessors in making their decisions, thereby aiding the Company in the context of present day problems. * Johnston, Gary P and Bowen, David, V, 2005. “The benefits of electronic records management systems. A general review of published and some unpublished cases.” Records management journal, 15(3): 131-142 Conclusions: On the basis of the above, it may therefore be concluded that Justafaye cannot continue upon the path that it is now taking. Not only is there a real danger of running out of space, the greater risk is that valuable documents may be destroyed in order to conserve space. This could prove to be a loss to the organization and is to be avoided at all costs. Therefore more efficient methods have to be outlined for management of data. One of the first things that need to be done is a document appraisal so that the Company can ensure that the existing data is only that which is needed. Since a large part of existing data records for previous years are now available only in paper format, it is necessary that the appraisal is carried out as soon as possible and valuable information converted into a form of digital storage that will ensure it is not lost. The process of conversion and reorganization of the records is also likely to involve considerable man hours and the task must be handled by the information department rather than being viewed solely as a management problem. One of the important conclusions that are revealed through this situation is the necessity to ensure that the records management system of an organization is properly streamlined, in order to ensure accountability of all of Justafaye employees and management. This will also help to improve Company efficiency and provide for an ethical framework within the organization, where destruction of incriminating documents is not permitted. Recommendations: On the basis of the problem situation that Justafaye has, it is recommended that a document appraisal process is set into motion to filter out unnecessary papers, which may be disposed. During this process of appraisal, some general guidelines must also be determined to set out a time frame for which the documents must be retained, before they may be disposed of. Any duplication of data must be checked and eliminated. The records system must be made more efficient by transferring data between different branches or files as may be required, in order to streamline the data that is available. Redundant and unnecessary paperwork must be weeded out. Subsequently, steps must be taken to transfer the retained paper records back into electronically stored format. However this time, the transfer must be done utilizing sources such as microfiche, which will allow for storage of large volumes of data. This method also allows for storage of data offline in a form that is accessible and yet allows for back up storage. A central database may be created to store information such as sales figures or marketing/research information that may be utilized by all departments and will therefore be more accessible if stored within a large, centralized database. Access to confidential information can be restricted through the creation of passwords such that only authorized people from Justafaye can access it. In this way, the security of the data can also be maintained, since the passwords can also be changed periodically in order to ensure that hackers do not find their way into the system. Above all however, the preservation of records will help to introduce accountability into the organization, so that it will elevate the status of the Company in the eyes of the community. Accountability and ethical standards in a company go side by side, therefore ensuring accountability through an efficient records management system will ensure that ethical standards are maintained at Justafaye. For these and other reasons of efficiency and facilitating good decision making by the present and future directors of the corporation, records management is highly recommended. To ensure good corporate governance, the problem of records management should not be conceived of only as a management problem, since this process must be handled by the information services department. Bibliography * ASISO 15489, Part 1, pp2 and 13 * Australian Standard, 2007. Records Management, Part 1: General * Bettington, Jackie, 2005. “Memo to the Board: Good information governance leads to good corporate governance.” Governance and Ethics, 21(2) * Brown, William, 1988. “Microform Reviews” The Journal of American History, 74(4): 1401 * Cochran, P. L. and Wartick, S. L, 1994. “Corporate Governance – A Review of the Literature”. IN R. Tricker (ed.) “International Corporate Governance” Prentice Hall * Edge, Irene E, 2006. “Write it down! The importance of good documentation.” Tech Directions, 66 (3): 16-19 * Farrar, J. H. (2001). Corporate Governance in Australia and New Zealand. Singapore: Oxford University Press. * Johnston, Gary P and Bowen, David, V, 2005. “The benefits of electronic records management systems. A general review of published and some unpublished cases.” Records management journal, 15(3): 131-142 * Kwasi, Dwarko Ampem, 2006. “Retrospective conversion of serials and card catalogue records: A case study of project management in academia libraries.” Library Management, 27(3): 121-155 * Shroeder, Jr, Alan T, 2006. “Digitizing a real estate document library.” Records Management Journal, 16 (1): 34-51 Read More