Chapter3- Office Mgt in Org

7/27/2019 Chapter3- Office Mgt in Org

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Office Layout andWorking Condition


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LOCATION


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A point or extent inspace.


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The choice of location is one of the key factorsthat influences the success of a business.


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Location Factors


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Nature of the product

Proximity to sources of raw materialsAvailability of laborNearness to marketsNearness to transportationNearness to the source of powerProximity to firms in smaller fields

Location Factors


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To a certain extent, this factor helps

determine where the plant should belocated. This is so since each productrequires a combination of rawmaterials, workers, machines, anddistribution system if it is to bemarketed successfully.

Nature of the product


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Nearness to raw materials is a primary

factor if the materials are perishable, ifthey are of such bulk that they areexpensive to transport, or their weightcan be substantially reduced byprocessing.

Proximity to sources of

raw materials


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The labor requirements of the process ofproduction are also another important factorto consider. While doubtless it goes withoutsaying that a fully automated industry canlocate just about anywhere, however, if many

workers are required to run the machines, theavailability and adequancy of a givennumber of skilled workers would be verynecessary.

Availability of labor


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Some businesses fail because they wereout of the beaten path. That is thereason why in the case of book stores,they are generally located near if notwithin the university belt.

Nearness to markets


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If the business is one that requires

continued transportation, either of rawmaterials in or of finished products out,or of both, then the convenience oftransportation facilities exert aprofound impact on the economicalconduct of the business through itsgood location.

Nearness to transportation


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Since power is an indispensable

resource to the operation of any plantor industry, it follows that thecompanys proximity to its source is amajor advantage that will redound toits benefit. (e.g. electricity and water)

Nearness to the source of

power


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Competitive industry already in thearea may at first seem to be adrawback, but there are benefitsderived from such a situation.

Proximity to firms in

smaller fields


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Within the factory building;

In a separate building but near to if notadjacent to the factory building itself;and

In an office building far removed from

the factory building.

Most offices are located in

any one of the following places:


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PURPOSE.

The purpose for which the office isintended is a limiting factor to the choiceof location. Thus, location should be takeinto account not only the interests of the

company but also those of its employees,customers, suppliers or servicemen ifconditions permit.

In selecting s site for the use of office, a numberof important factors must be considered.


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OWN or LEASE.

The issue of own or lease is a problem offinance.

Financing by business enterprisesordinarily has the purpose of acquiringadditional assets. It is not essential,however, to purchase assets in order to usethem. They may be rented instead, andpayments for their use are then distributedover the period during which the servicesof the assets are being provided.


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Next :OFFICE LAYOUT

Chapter3- Office Mgt in Org

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