Records Management Functions and Life Cycle

MANAGEMENT OF ADMINISTRATIVE RECORDS 1 OSM 451
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Chapter 1 The Concept Of Records Management
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In this chapter, you will be able to:
1) Discuss the challenges of the information explosion to records
management
2) Describe the importance of records management to an
organization
3) Describe how records are classified and categorize in
businesses
4) Describe the records management functions management
functions necessary to operate a records in an organization
and a record life-cycle
5) Identify what is a registry, the programs for managing records
and the records problems
6) Be familiar with some terms in records management and
examples of basic records types
7) Identify the phases of records activity
LEARNINGOBJECTIVES

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CHAPTER OVERVIEW
This chapter describes the field of records management and the nature and purpose of
records. In this chapter also, you will discover what records are and how they are used and
classified.
1.1 How Has Information Grown Lately?
Today's workers are increasing their use of information. This time in our history is
frequently called the Information age. Did you know that the amount of new information
in the world has almost doubled in the past 3 years? How much new information do you
receive every day from the newspaper, radio, television, mail, electronic-mail, the
internet, magazines, and telephones? This world is in the middle of an information
explosion in the Information age. Information explosion is a term that describes the
rapidly increasing amount of published information and the effects of this abundance of data.
As the amount of available data grows, the problem of managing the information becomes
more difficult, which can lead to information overload.
At this stage you are already
achieved learning objectives 1:
To discuss the challenges of the
information explosion to records
management

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1.2 What Is Records Management?
Management is the process of using organizations resources to achieve specific goals
through the functions of planning, organizing, leading and controlling. Information is an
important and valuable business resource. To survive; businesses and organizations
must have up-to-date information in the right form, at the right time, and in the right
place to make management decisions.
Records management is the systematic control of all records from their creation or
receipt, through their processing, distribution, organization, storing and retrieval, to their
ultimate disposition. Because information is such an important resource to organizations,
the records management function also includes information management. Therefore,
records management is known as records and information management (RIM).
ISO (the International Organization for Standardization) is a worldwide federation of
national standards organizations. ISO 15489 is a standard for records management
policies and procedures. The purpose of this standard is to ensure that appropriate
attention and protection applies to all records, and that the evidence and information they
contain can be retrieved efficiently and effectively using standard practices and
procedures1
. These international standards help the records management function of an
organization clarify its purpose and prove its value by managing important information.
1.3 What Are Records?
ARMA International (an association for information management professionals) defines a
record as stored information, regardless of media or characteristics, made or received by
an organization that is evidence of its operations and has value requiring its retention for a
specific period of time2
.
1
International Organization for Standardization, ISO 15489-1:2001, Information and Documentation-Records
Management, Part 1: General (Geneva, Switzerland: ISO, 2001).
2
Glossary of Records and Information Management Terms (ANSI/ARMA 10-1999) by ARMA International and A
Glossary for Archivist, Manuscripts Curators, and Records Managers, compiled by Lewis J. Bellardo and Lynn L.
Bellardo and Lynn L. Bellardo (Chicago: The Society of American Archivists, 1992)

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ISO 15489 defines a record as ‘a record is information created, received, and maintained
as evidence and information by an organization or person, in pursuance of legal
obligations or in the transaction of business3
.
1.4 How Are Records Used And Classified?
Records are classified in three basic ways:
a) Classification by Use
b) Classification by Place of Use
c) Classification by Value of the Records to the Firm
a) Classification by Use
Classification according to records use includes transaction documents and reference
documents. A transaction document is a record used in an organization's day-to-day
operations. These documents consist primarily of business forms which can be
created manually, electronically, or generated via e-commerce systems on the Internet.
Examples like invoices, requisitions, purchase and sales orders, bank checks,
3
Ibid: ISO 15489-1: 2001, Information and Documentation- Records Management, Part 1: General.
To describe the importance of
records management to an
organization

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statements, contracts, shipping documents, and personnel records such as
employment applications, time sheets, and attendance reports.
A reference document, on the other hand, contains information needed to carry on the
operations of a firm over long periods. These records are referenced for information
about previous decisions, quotations on items to purchase, statements of
administrative policy, and plans for running the organization. Common reference
documents that are most frequently used category of records maintained in an office
are like business letters, reports, and interoffice e-mail. Other examples include
catalogs, price lists, brochures, and pamphlets.
b) Classification by Place of Use
Classification by place of use of the records refers to external and internal records.
An external record is created for use outside an organization. Examples of such records
are letters, faxes, or e-mail sent to a customer, client, supplier, or to the various
branches of the government.
Internal records are a larger group of records classified by their place of use. An
internal record contains information needed to operate an organization. Such a
record may be created inside or outside an organization. Many internal records are
created through the use of e-commerce systems using databases and web server
applications. Examples are communications between a firm and its employees (payroll
records, bulletins, newsletters, and government regulations) and communications
among a firm's departments (inventory control records, interoffice memos or e-mail,
purchase requisitions and reports).
c) Classification by Value of the Records to the Firm
From an inventory and analysis of the use of each major record category, a manager
determines the value of the record to the firm. This evaluation is used to develop a
records retention schedule specifying how long to keep the records in an
organization. Some records are so valuable to a firm that they require special
measures of protection. Each record maintained by a firm falls into one of four
categories used to determine how records should be retained and the level of

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protection they require. These categories are (1) vital, (2) important, (3) useful,
and (4) nonessential as shown in figure below:
Category Examples
Vital Records
a. Necessary for the continuing
operation of the organization
b. Usually not replaceable
c. Highest degree of protection necessary
Legal papers, articles of incorporation, titles
to property, reports to shareholders
Important Records
a. Assist in performing business
operations
b. Usually replaceable but at great cost
c. High degree of protection necessary
Personnel records, sales records, financial
and tax records selected correspondence
and reports, contracts
Useful Records
a. Helpful in conducting business
operations
b. Usually replaceable at slight cost
c. Low to medium degree of protection
General correspondence and bank statements
Nonessential Records
a. Records have no predictable value
after their initial use
b. Lowest degree of protection
Announcements and bulletins to
employees, acknowledgments and routine
telephone/ e-mail messages
Categories of Records
To describe how records are
classified and categorized in
businesses

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1.5 Why Records Are Used?
Records serve as the memory of a business. They document the information needed for
complying with regulations and the transactions of an organization. For example,
management policies are developed and recorded to furnish broad guidelines for
operating a business. Each department (for example. Finance, Marketing, Accounting,
and Human Resources) bases its entire method of operations upon records. Usually,
records are used and retained because they have one or more of the following values to a
firm. The following are the Records Values and Types
Value and Record Type Examples
Administrative
a. Records that help employees perform
office operations
b. Fiscal records used to document
operating funds and other financial
processes
Policy and procedures manuals
Handbooks
Organizational charts
Tax returns
Records of financial transactions:
purchase and sales orders, invoices,
balance sheets, and income
statements
Legal
a. Records that provide evidence of
business transactions
Contracts
Financial agreements that are legally
binding
Deeds to property owned
Articles of incorporation
Historical
a. Records that document the
organization's operations and major
shifts of direction over the years
Minutes of meetings
Corporate charter
Public relations documents
Information on corporate officers
Records Values and Types
According to Rusnah (2003), there are another 3 additional values that are:
Fiscal value, informational and evidential value

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1.6 The History of Records Management
What are the earliest records of civilization? Hieroglyphics drawn on rock walls and caves
reflect ancient humanity's need to tell stories. Museums of the world tell the story of
ancient civilizations with artifacts and relics.
Early Records
Most of the business records before 1600 were based upon simple trade transactions that
provided evidence of money received and spent, lists of articles bought and sold, and simple
contracts. These records and any copies were created by hand until the printing press and
later the typewriter were invented. Records were almost entirely paper documents, until the
1950s when computers were first used in business. The most important emphasis during
this stage in history was getting the records properly placed in the files. Emphasis on
retrieval surfaced later. Little importance or status was granted to records and to records
management functions at this time.
1.7 Trends in Records and Information Management
Electronic Record
An electronic record is a record stored on electronic media that can be readily accessed
or changed. A piece of equipment is required to view and read or listen to electronic
records. With the development and use of application software on personal computers,
letters, memos, and reports were created electronically; however, the purpose of these
systems was to facilitate the creation of paper records. As technology has advanced, true
electronic records are in use today; i.e., records created, distributed, used, and stored in
electronic form.. The contents of these records are accessible by machine.
Electronic Mail
Electronic mail (e-mail) is a system that enables users to compose, transmit, receive, and
manage electronic documents and images across networks. A variety of electronic mail
systems allow users to write and send messages via computers and software.

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Document Imaging
Document imaging is an automated system for scanning, storing, retrieving, and managing
images of paper records in an electronic format. A paper document is scanned into a
computer file, thus creating an electronic image of the document. Scanned files are
usually large; consequently, optical disk storage is recommended. Textual data can be
converted electronically using optical character recognition (OCR) software. Lists of key
words are created for each, scanned file. An image and text database is developed
enabling a search by key words to find a document in a matter of seconds. Once found,
the document can be sent to the requester by fax, computer-to-computer
communication, or a hard (printed) copy.
The Internet
The Internet is a worldwide network of computers that allows public access to send, store,
and receive electronic information over public networks. The multimedia center of the
Internet, the World Wide Web, is a worldwide hypermedia system (a network of computers
that can read documents containing hyperlinks) that allows browsing in many databases.
Companies, organizations, and individuals create locations, called web sites that can be
accessed by anyone who has an Internet connection.
Electronic Commerce
Companies use these sites to share information about themselves and their products.
They also conduct business using these sites. A broad definition of e-commerce is an
electronic method to communicate and to transact business over networks and through
computers. In other words, e-commerce is the buying and selling of goods and services
using the Internet and other digital communications such as electronic funds transfer,
smart cards, and digital cash.
Electronic fund transfer (EFT)
EFT provides for electronic payments and collections. It is safe, secure, efficient, and less
expensive than paper check payments and collections. Many organizations deposit their
employees' pay by using EFT.

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Electronic data interchange (EDI)
EDI is a communication procedure between two companies that allows the exchange of
standardized documents (most commonly invoices or purchase orders) through computers. If
the two companies have compatible systems, the computers talk to each other through a
connection. For example, Company A sends a purchase order to Company B by EDI. When
Company B ships the order to Company A, an invoice is created and sent to Company A,
again through EDI. Company A can then pay Company B by electronic funds transfer.
Thus, no paper documents are exchanged. Records and information managers should
ensure that the records transmitted in this business process are authentic, correct, and
usable.
Enterprise Content Management (ECM)
Is the term used to describe the technologies, tools, and methods used to capture, manage,
store, preserve, and deliver content or information across an enterprise or organization.
1.8 Records Management Functions in Organizations?
The four functions of management
1) Planning involves establishing goals or objectives and the methods required to
achieve them.
2) With the firm's goals in mind, organizing involves arranging the tasks, people,
and other resources needed to meet the goals set in the planning stage.
3) Leading refers to managerial behavior (such as training, supervising, and
motivating) that supports the achievement of an organizations goals.
4) Finally, controlling involves measuring how well the goals have been met.

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The Life-Cycle of Records
The record life cycle is the life span of a record as expressed in the five phases of creation,
distribution, use, maintenance, and final disposition. The phases of the life cycle often overlap.
Note how this cycle is carried out. Whenever a letter is produced, an e-mail written, a form
completed, or a pamphlet printed, a record is created. This record is then distributed (sent)
to the person responsible for its use. Records are commonly used in decision making,
for documentation or reference, in answering inquiries, or in satisfying legal
requirements.
When a decision is made to keep the record for use at a later date, it must be stored,
retrieved, and protected—three key steps in the maintenance of records. During this
phase, the records must be stored (filed), which involves preparing and placing records
into their proper storage place. After a record is stored, a request is made to retrieve (find
and remove) it from storage for use. When the retrieved record is no longer needed for
active use, it may be re-scored and protected, using appropriate equipment and
environmental and human controls to ensure record security. Also involved in the
maintenance phase are activities such as updating scored information and throwing away
obsolete records that are no longer useful or that have been replaced by more current
ones.

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The last phase in the record life cycle is disposition. After a predetermined period of time
has elapsed, records to be kept are transferred to less expensive storage sites within the
firm or to an external records storage facility. At the end of the number of years indicated
in the retention schedule, the records are disposed of, either by destruction or by transfer
to a permanent storage place. The facilities where records of an organization are
preserved because of their continuing or historical value are called the archives.
The record life cycle is an important concept for you to understand. It shows, for
example, chat filing is only one part of records and information management. Many
interrelated parts must work together for an effective records and information
management program. Knowing the meaning and importance of each part of the entire
record life cycle, you will be able to understand what is needed to manage all records—
those on paper and those stored on other media such as magnetic media or microforms.
achieved learning objectives 4: To
describe the records management
functions management functions
necessary to operate a records in
an organization and a record life-
cycle

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1.9 Programs for Managing Records (Features)
A records program must be in place to manage all phases in the record life cycle.
Such programs generally have these features:
1. Well-defined goals chat are understood by all workers
2. A simple, sound organizational plan
3. Efficient procedures for managing each of the five stages in the record
life cycle
4. A well-trained staff
Who is responsible for implementing and maintain effective life-cycle records management
system in an organization?
The records manager is the one who is responsible in implementing and maintain effective life-cycle
records management system in an organization that will ensure the provision of the right records (or
the right information from them) to the right person at the right time.
Records management is essential for the administration of an agency with the objectives of
making records and information processing: More effective, more efficient and more
economical
And the above objectives can be achieved through systematic control over the records
creation, distribution, use, maintenance and disposition.
The basic elements of records management program are:
• Mail operations
• Classification operations
• Files operations
• Use, storage, retrieval and circulation operations and,
• Disposition operations
Why records need to be managed?
1. To reduce the volume of records
2. Improve storage and retrieval systems
3. Increase efficiency of records processing
4. Identify and protect vital records
5. Meet legal requirements

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6. Protect the organization, customers, personnel and stockholders
7. Improve productivity
8. Cut cost
9. Improve profits
What are the goals of records management?
1. To create the right information and records
2. To make records available for the right individuals
3. To ensure records are created and maintained in appropriate formats
4. To ensure records are available at the right times and at the right places.
5. To ensure records are managed efficiently and at low cost
6. To ensure the right records are used in making decisions
7. To ensure records with value are transferred to the archives and those without value
are eliminated.
1.10 Registry And Record Control (2 Types):
The current records management includes the mail and file management. The activities of
mail management and file management are carried out in the registry of an agency.
What is a registry?
A registry is a unit within an organization. It is basically responsible for managing the records
of that particular organization. Its exact function may keep on changing with the times. But
basically, a registry ensures that there is a good flow of recoded information in the
organization.
Registry – Functions
a) To house the entire series of records kept in a particular department and to have
intellectual control over these records.
b) Officially dispatching and receiving all letters. It registers all letters received from both
internal as well as external sources. Incoming letters are stamped ‘received’ on a

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particular date. The date of receipt and the name of the sender is entered into a
register.
c) Monitor the movement of records or files. This is to ensure that all file movement is
properly recorded, and those borrowing or keeping a particular file returns it to the
registry at the right time.
d) Ensures that the action to be taken on a file is brought to the attention of the staff
concerned.
e) Keeps track of all the 4 phases of the records life cycle- creation, distribution, use
and maintenance.
f) Prepare an updated list of files to be destroyed.
A registry may be either centralized or decentralized.
i) Centralized program
Records are physically located and controlled in one area.
ii) Decentralized program
Records are physically located in the departments where they are created and used.

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1.11 Problems in Records System
Problems Symptoms
Management • No overall plan for managing records problems
• No plan for retaining or destroying records
• No standards for evaluating workers
Human Problems
• Lack of concern about the importance of records
• Hoarding of records
• Assuming that people know how to use the files for storage
and retrieval of records
Inefficient filing
procedures
• Computer files not organized into folders
• Overloaded and poorly labeled drawers and folders
• Failure to protect records
• Misfiles resulting in lost records or slow retrieval
• Records removed from and placed in files without proper
authorization
Poor use of equipment
• No equipment standards
• No use of fire-resistant equipment
• Improper type of storage containers for records
• Lack of or improper use of automated systems
Inefficient use of space • Crowded working conditions
• Poor Layout of storage area
• Resistance to the use of magnetic media
Excessive records cost
• Inefficiency due to the above problems

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1.12 Introduction to Records Management
In records management there are several terms that students should be familiar with as
these words are very important as they are the basic parts that constitute records
management. Among the definition of important terms in records are highlighted below:
Terms Definition
Data Representation of information in a formalized manner suitable for
communication, interpretation and processing, generally by a
computer system. Raw data refers to unprocessed data
Information Information is something that can lead to knowledge regardless of the
medium of its conveyance to one or more persons
Knowledge A body of understanding and skills that is constructed by people and
increased through interaction with other people and with information.
(Australian Standard for Knowledge Management AS 5037-2005)
Document A medium through which information is imprinted for conveyance to
one or more than one person. Defined as the smallest unit for filing. It
can also refer to other non paper-based items, such as computer files
Records Recorded information in a form of document regardless of form or
medium made or received by an organization and that is useful in the
operation of the organization. It provides evidence of a business
transaction. Thus a record is a document with evidentiary value
Archives Records, usually but not necessarily non-current records or enduring
value selected for permanent preservation. Archives will normally be
preserved in an archival repository
To identify what is a registry, the
programs for managing records
and the records problems

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Records Center Records center is a building designed or adapted for the low-cost
storage, maintenance and communication of semi-current records
pending their ultimate disposal. It is an intermediate storage facility
Archival
Repository
A building or part of a building in which archives are preserved and
made available for consultation also known as an archives
Public Records Records created or received and maintained in any public sector
agency
Private Records Records created, received and maintained by non- governmental
organizations, families or individuals relating to their private and public
affairs
Evidence An indication, sign, testimony, in support of a conclusion. In order to
become "evidence'', records must have the following characteristics:
Essential Characteristics of Records (Read & Ginn, 2007):
• Permanence –
Recorded information should be permanent so that it can be
used as evidence. If record keeps on changing all the times, it cannot
be used with certainty to show that something had actually taken
place or that someone has been responsible for it. Different versions
of the records will be used by different parties to illustrate conflicting
points of views. Records will then become a source of division and
contention among parties representing claims.
• Value as official sources of information –
Records should have authority so that they should be considered to
be the true, official account or report that will have universal
validity as the one true record. The manner in which records have
been created and cared for will demonstrate their value as
undisputed sources of information
• Authentic –
Records are supposed to be authentic in that they document
accurately what actually transpired, and indicate what was actually
the state of affairs at a particular point on time. They cannot be
changed or altered as an afterthought. Any changes should only
result in adding on to the existing documentation, and not removing
or deleting existing information.
• Unique –
Records are unique in that they are documents of a single or
individual event or transaction that will not be repeated in the same
time, at the same place or for the same actions
Essential Characteristics of Records (Rusnah, 2001):
• Authenticity (original)
• Reliability (can be trusted)

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• Integrity (not separated)
• Usability (can be used as evidence)
Creators and users of records
Government and private sectors created and used records on a daily basis to:
1) Document actions
2) Confirm decisions
3) Identify rights
4) Implement responsibilities
5) Communicate information
Records can be used to:
1) In pressing for claims due to a person
2) To s how that someone is responsible for a particular action
3) To tell us the story of what has happened in the past
4) To boost the corporate image of a particular firm by showing the success in its long
past
5) To tell past mistakes and provides continuity in charting the future.
Government employees rely on
records to provide core
information for conducting their
public administration on behalf
of the citizens. While the
companies employees (private
sector) rely on records to
provide core information for
conducting their business
transaction.
Note:

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1.13 Basic Record Types
There are some basic records types used in organizations such as the following:
a) General Correspondence
b) Transitory Correspondence
c) Case Reports
d) Case Working Papers
e) Technical Ref. Materials
f) Extra Convenience Copies
g) Films, Tapes and Disk Records
h) Cartographic Materials and Drawings
i) Cards
To be familiar with some terms in
records management and
examples of basic records types

24 | O S M 4 5 1
1.14 Phases of Records Activity
A) Active Records
Needed to perform current
operations
Used frequently
Located near user Accessed
manually or online
Accessed three or more times a
month
Stored in very accessible
equipment in active storage area
or online
B) Inactive Records
Do not have to be readily
available
Kept for legal, fiscal, or historical
purposes
Accessed less than fifteen times a
year
Stored in less expensive storage
area
C) Archive Records
Kept for their continuing or
historical value
Preserved permanently
Used to: Maintain public relations,
prepare commemorative
histories, preserve corporate
history, provide financial, legal,
personnel, product, or research
information, provide policy di-
rection, stored in less expensive
storage area, often off-site
(Read & Ginn, 2007)
A) Current Records
Records regularly used for the
conduct of the current business of
an organization or individual. Also
known as active records. Current
records will normally be maintained
in or near their place of origin or in a
registry
B) Semi-Current Records
Records required only infrequently in
the conduct of Current business.
Also known as semi-active records.
Semi-active records will normally be
maintained in a records center or
other offsite intermediate storage
C) Non-Current Records
Records no longer needed for the
conduct of current business. Also
known as inactive records
(Rusnah, 2001)

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1.15 ARMA International
ARMA stands for Association of Records Managers and Administrators, Inc. It is an
important professional group for records and information managers interested in:
i. Improving educational programs in schools and industry
ii. Providing on-the-job knowledge about records and information management
Learn more about ARMA
International at the
organization’s web site at:
http://armainternational.com
To identify the phases of records
activity

26 | O S M 4 5 1
This chapter introduces you to the concept of records management and defines the field of
records management and the nature and purpose of records. As you study this part, you will
learn what records are and how records are used and classified. These questions and more
are answered in this first part:
How has information grown lately?
What are records?
How are records used and classified?
What is the history of records management?
What are the records management functions in organizations?
What are the importance of records management to an organization
What is a registry and the records problems
What are the important terms in records management the examples of basic records
types
How many are the phases of records activity
By the end of this chapter, you are expected to understand the following:
Discuss the challenges of the information explosion to records management
Describe the importance of records management to an organization
Describe how records are classified and categorize in businesses
Describe the records management functions management functions necessary to
operate a records in an organization and a record life-cycle
Identify what is a registry, the programs for managing records and the records
problems
Be familiar with some terms in records management and examples of basic records
types
Identify the phases of records activity
CHECKLISTS
SUMMARY

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Information Age Today's workers are increasing their use of information. This time in our
history is frequently called the Information age.
Information Explosion is a term that describes the rapidly increasing amount of published
information and the effects of this abundance of data.
Information Overload As the amount of available data grows, the problem of managing the
information becomes more difficult, which can lead to information overload.
Management is the process of using organizations resources to achieve specific goals
through the functions of planning, organizing, leading and controlling.
Records Management is the systematic control of all records from their creation or receipt,
through their processing, distribution, organization, storing and retrieval, to their ultimate
disposition.
ISO (the International Organization for Standardization) is a worldwide federation of
national standards organizations. ISO 15489 is a standard for records management
policies and procedures.
Record Life Cycle is the life span of a record as expressed in the five phases of creation,
distribution, use, maintenance, and final disposition.
GLOSSARY

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1. Describe the information explosion.
2. What is the role of records and information management in an organization?
3. What is the purpose of ISO 15489?
4. What are the main classifications for records? What types of records are commonly
found in each classification?
5. Why are records used in businesses?
6. List the phases in the record life cycle and describe the activities that occur during
each phase. What phases, if any, do you eliminate in your own personal records
cycle? Why?
7. What are some common problems found in records systems?
1. Work in a team with two or three classmates to complete this application. Visit a
business. Ask the person you visit to share with you five examples of the records of
the business.
2. Analyze the records from the business. Why did the business develop each record?
How will each record help that company conduct business?
REVIEW AND DISCUSSION
APPLICATION

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Read, Judith & Ginn, Mary Lea. (2007). Records Management. 8th ed. US: South-Western
Thomson Learning.
Robek, M. F., et. al. (1996). Information and Records Management: Document-based
Information Systems. US: Glencoe/Mc-Graw Hill.
Rusnah Johare. (2001). Records Management Handbook: A Guidance to Records
Management in an Agency. Kuala Lumpur: Univision Press.
REFERENCES

30 | O S M 4 5 1
Study Notes

Records Management Functions and Life Cycle

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