Tuesday, 14 June 2016

BUSINESS RECORDS MANAGEMENT PROCESS


BUSINESS RECORDS MANAGEMENT PROCESS


Nurul Hafiza Adnan
Faculty of Information Management, Universiti Teknologi Mara,
Selangor, Malaysia

Abstract
Records are the backbone of organisations. Without them, organisations cannot function. An organisation relies on the records and information it creates to ensure for the smooth running of business activities and for knowledge and monitoring them. Records Management is the control of your business records from their creation to their disposition. The process of managing records systematically include capture the record, registration, classification, access and security classification, identification of disposition status, storage, use and tracking and implementation of disposition.
Keyword : Records management, Business records, Private sectors

Introduction

            Records management was applied to many organizations since long time ago. It is a professional discipline that applies systematic and efficient controls to the recorded information in organization of records through the stages of their life cycle. The process of managing records systematically include capture the record, registration, classification, access and security classification, identification of disposition status, storage, use and tracking and implementation of disposition. According to Sari and Pekka (2011) and ISO (2001), records are information created, received, and maintained as evidence and information by an organization or person, in pursuance of legal obligations or in the transaction of business. Meanwhile records management is the field of management responsible for the efficient and systematic control of the creation, receipt, maintenance, use and disposition of records, including the processes for capturing and maintaining evidence of and information about business activities and transactions in the form of records. (Sari and Pekka, 2011)
According to Aliza and Jamal (2009), records are controlled from their creation to their ultimate disposition. However, according to Desilva Nishan and Vednere Ganesh (2008), records management has traditionally been considered a support function within legal and compliance departments. They also indicated that records management is not just about long term storage, but rather end to end management of company records from creation, use and storage, to final disposition. It means that good practicing of records management in an organization will ensure the quality of the record itself which they are needed when making right decisions and what actions to take. In compared with Martine (2006), she said that records management cannot be assumed to be the same as “document” but it implies the idea of selection, that is those documents produced or received by an individual or organization in the context of their professional responsibilities and whose capture and preservation, in the context of its creation, are necessary for the smooth running of business activities and for knowledge and monitoring them.

Records Management Process
Records management process is the core components of a records management program. It is a process of managing records systematically which includes capture the record, registration, classification, access and security classification, identification of disposition status, storage, use and tracking and implementation of disposition. According to John (2010), in order to provide a corporate perspective to the management of documents, records managers have developed tools such as the subject file classification system and the retention and disposal schedule. In order to follow this process, records management team must work with each department in company to know what are the records they kept and the function of each records.

Capturing the data
In order to manage the records we need to capture the data of the records itself. Capture means the process of determining that a record should be made and kept. Capturing data also ensure that their content, structure and context of creation are fixed in time and space. It includes both records creation and received by the organization such as correspondence and memos. According to Good Record Management Practice, (2011), an organization should determine which documents created or received during business processes should be captured as records into a recordkeeping system, and how long they should be maintained within the system, based on an analysis of the legal and regulatory environment, business and accountability requirements and the risk of not capturing or retaining the records.
In business management, it also involves deciding which documents are captured, which in turn implies decisions about who may have access to those documents and generally how long they are to be retained. According to John, (2010), decisions about which documents should be captured and which are not needed are based on an analysis of the organizations’ business and accountability. The purpose of capturing a record into a recordkeeping system is to establish a relationship between the record, the creator and the business context that originated it, and to link it to other records. The captured records should be complete, and contain the content, structure and contextual information which are necessary to document an official activity or transaction as evidence of business. (Good  Record Management Practice, 2011)

Registration
            After capturing the document, the documents need to be registered. Its purpose is to provide evidence that a record has been created or captured in a records system. It involves recording brief descriptive information about the record in a register, and assigning the record a unique identifier. According to Guidelines and Functional Requirements for Electronic Records Management Systems, (2008), to verify their existence within the system, every record and associated aggregation must have a unique identifier persistently linked to it. This allows the user to locate records and helps them to distinguish between versions. Registration specifies metadata and unique identifier assigned from the system such as document name or title, text description or abstract the date and time of registration, title or abbreviated description or the author of the records.

Classification
Classification is an essential tool in records management. It is used to provide links between records that originate from the same activity or from related activities; to determine where a record should be placed in a larger aggregation of records; to assist users in retrieving and interpreting records; and to assign and control retention periods, access rights and security markings (Schellenberg, 1975; Smith, 2007 ; Pekka and Kimmo, 2011). Seitsonen (2009) examines the relationship between organizational structure and functional classification in her master’s thesis.
There are many type of classification exist. Example of them is hierarchical classification, functional classification and subject classification system. One of the oldest classification systems known to exist was a subject classification system. Today, classification schemes are usually functional and based on what an organization does. Since the 1990s functional classification has been strongly promoted. (Johanna, 2012)  As stated in Good Record Management Practice, (2011), a records classification scheme includes a coding system expressed in symbols (e.g. alphabetical, numerical or alpha-numerical) to show the logical relationship amongst the records. A records classification scheme should allow modifications such as addition of new records series/groups to cater for changing circumstances.
      Many organizations maintain standard record series and type. Classifying records into series and types results in a hierarchy of the records within the organizations and serve as a template to store them in the appropriate folders and sub folders in the records repository. It also provides improved access, retrieval and dissemination of its records as appropriate. The structure of a classification system is usually hierarchical and reflects the analytical process as follows.
·         The first level usually reflects the business function
·         The second level is based on the activities constituting the function
·         The third and subsequent levels are further refinements of the activities or groups of transactions that take place within each activity

Access and security
According to Guidelines and Functional Requirements for Electronic Records Management Systems, (2008), organizations need to control access to their records. Typically, access to records and aggregations is limited to specific users and/or user groups. In addition to controlling access by user and user groups, some agencies will need to limit access further by using security classifications. An organization should ensure that timely access to records is provided to authorized users or staff for conducting business. On the other hand, to provide sensitive information with adequate protection, records should be classified according to their level of sensitivity at a particular time. An organization should also lay down guidelines on the protection, processing and transmission of classified records.
. Good practices (Good Record Management Practice, 2011)
·         Records should be kept in a recordkeeping system with systematic indexes and classification to facilitate their easy retrieval.
·          Access to personal data - An organization should refer to the Personal Data (Privacy) Ordinance for arranging access to personal data held by them.

Identification of disposition status
According to John (2010); Susan (2010), the identification of disposition status usually can be done before records created, before records keeping system are designed, before disposal and when required. The process requires reference to a disposition authority of a more or less formal nature depending on the size and nature of the organization and its accountabilities. A records retention and disposition schedule is a management tool used to prescribe the time to retire records to inactive status and eventually the time to destroy or dispose of the records.  Every record series on a schedule must be evaluated for its purpose and value before a retention period is assigned. The scheduling process is ongoing and involves close cooperation between department personnel, Departmental Records Officers, and the Records Management Analysts in an organization. Evaluation for retention periods is bases on statutory or regulatory requirements, audit requirements, and practical need or value. (John, 2010)

Storage
According to Aliza and Jamal (2009), records must be stored in such a way that they are both sufficiently accessible and are safeguarded against environmental damage. In addition, for electronic records, storage management is about file format and storage medium. The format adopted should be accessible for the years to come and the selection of storage medium should be the choice of mainstream media that comply with industry standards. Meanwhile in Good Record Management Practice (2011), stated that records should be stored in such a manner so as to facilitate user access and ensure that they are protected from unauthorized access, use, disclosure, removal, deterioration, loss or destruction. An organization should lay down guidelines on the storage of records including sensitive or classified records.
For records in paper form, organizations should note that paper deteriorates rapidly in an environment of high temperature and humidity. Furthermore, mould growth on paper can be a health hazard to staff. For storage of electronic records, the selection of storage media (e.g. optical disc and tape), storage system, storage environment and handling procedures should be based on records management and business considerations, e.g. volume and growth rate of records, records security needs, retrieval requirements and preservation needs. (Good Record Management Practice, 2011)

Use and tracking
      Location can refer to the physical location for hybrid records or the location within a classification structure or file structure for electronic records. Movement refers to changing the location of both electronic and physical records. An organization should decide the type of information that needs to be maintained to facilitate tracking of records, and to adopt means to track the whereabouts and movement of records.
      In a recordkeeping system, tracking of the movement and use of records is required to : Good Record Management Practice, (2011)
·         identify outstanding action required;
·         enable retrieval of records;.
·         prevent loss or missing of records;
·         monitor usage for recordkeeping system maintenance and security (e.g. growth of records, disposal of records); and
·         identify the operational origin of individual records where the recordkeeping systems have been amalgamated or migrated.

      To minimize the risk of losing records during bulk relocation of files, it is necessary for an organization to make appropriate arrangements to ensure that the relocation process is properly supervised and conducted. For reference, government B/Ds are required to put in place such arrangements as designating an officer not below the rank of Executive Officer II or equivalent to oversee the task; taking stock before the relocation exercise; conducting a file inventory check after relocation; documenting the inventory check; and updating the new storage location immediately afterwards.
      Record information about movements including:
·         unique identifier of the aggregation or record;
·         current location as well as a user-defined number of previous locations (locations should be user-defined);
·         date item sent/moved from location;
·          date item received at location (for transfers); and
·         user responsible for the move (where appropriate).

Implementation of disposition
According to Smith (2007); Susan (2010), disposition is the action taken with regards to records as a consequence of their appraisal and the expiration of their retention period.  The implementation of disposition will be effective and successful if the organization could refer to the records retention, records inventory and destruction schedule of the organization. The implementation of disposition is based on the preservation, destruction and transfer of custody or ownership records. Records can be disposed of only upon authorization. This is true for all records, whether stored in the department or in the State Records Center. Furthermore, only scheduled records can be destroyed. (Good Record Management Practice, 2011)
According to Guidelines and Functional Requirements for Electronic Records Management Systems, (2008), disposition authorities are policies that authorize the disposal of records, whether by destruction, transfer of control or applying a review period. Disposition/disposal authorities consist of disposal actions and retention periods for aggregations of records that may have a legislative or organizational use or requirement source. Organizations should review disposal actions when the relevant retention periods have expired.

Conclusion
            Companies that have developed to a certain scale of operation need to establish records management that is adapted to a long-term development framework. Records management is the the whole range of activities which an organization should perform to properly manage its records. The key activities in records management include setting records management policy, assigning responsibilities, establishing and promulgating procedures and guidelines, as well as designing, implementing and administering recordkeeping systems. The whole process of managing records systematically need to perform include capture the record, registration, classification, access and security classification, identification of disposition status, storage, use and tracking and implementation of disposition. When followed this process, it an improved access, retrieval and dissemination of its records as appropriate.

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