Business Studies XI Content
Retention and disposal of records
Retention is defined as the preservation of records for future reference. It involves collection, preservation, classification and protection of records for future reference. It is maintained in files, computers etc. Every record has a life span. It is protected according to its importance. Retention of record depends upon nature of organization.
- Records are preserved for future reference. The records should be accurate because human mind may forget the information but recording the records is perpetual
- Hearsay records cannot be taken as record. Real records and hard copy of records should be maintained that will be helpful in the time of legal disputes.
- Human minds cannot store all the information in their brain therefore records are to be maintained. They help in future reference.
- Records provide various types of information which help in making decision
- Retention helps to delete errors in a record.
- It helps in making comparison
Procedure of record retention
1. Classification of records
It helps to determine the value and volume of all the records. It classifies the records according to its importance and usefulness
2. Determination of record retention schedule
It helps in development of retention schedule. The retention period should be pre determined. The period depends on usefulness and legal requirement
3. Transfer of records
It means transferring of records from active file to inactive files. It is useful because the less important files are transferred. The inactive records are shifted to the least expensive storage area.
4. Protection of vital of records
The important records must be protected. They should be protected from firing, damage by water, dust, insects etc.
5. Destruction of records
The useless records are destructed. The records which have values are stored and others are disposed. This helps in creating space
Disposal of records
Once created and used records must be destroyed. The destruction of useless records is called disposal. The records are not retained forever. Office manager must wisely dispose all unnecessary ad useless records. It helps in creation of space.