Indexing - Its Importance, Types, Advantages and Disadvantages | Business Studies Class 11

Notes | Business Studies
HSEB Notes on Indexing
Class : 11

Indexing:

The process of pointing out the proper location easily and quickly is called indexing. Indexing means to inform or to guide the person for the easy and quick location of required files. For example, the table of content on the book. Indexing is used to facilitate the filing. Filing only keeps the record safely but indexing facilitates to find out the records easily and quickly. It means it keeps easy access to the records. 

 Indexing is an important part of office which helps to increase efficiency. So, some purposes of indexing are listed below:

• To increase efficiency of office:
• To facilitate filing.
• To facilitate easy and quick location of files or records.
• To save the time of office.
• To promote the image of organization.

Importance of indexing:

Record management carries significant importance in the organization. Record management is concerned with keeping record safely and providing as per the requirement. Indexing is an instrument of record management which makes possible to find out the records easily and quickly. Filing without indexing is meaningless. In this respect, some importance of indexing can be explained as follows:

• Easy location: Indexing points out the required records or file and facilitates easy location.
• Saves time and efforts: Indexing gives the ready reference to the records and saves the time and efforts of office.
• Efficiency: Indexing helps to find out the records easily and quickly which enhances the efficiency of office.
• Cross reference: A particular record can be maintained through two ways. Indexing facilitates to find out such records through cross reference.
• Reduce cost: Indexing helps to reduce the cost of office by saving time and efforts.

Essential qualities of good indexing:

Indexing is maintained with the purpose of locating required files or documents easily or quickly. It should fulfill its objectives. So, it requires following important qualities:

• Simplicity: It should be simple so that every member can understand and operate it easily.
• Economical: The selected indexing system should be economical in installation and operation. Its benefit should exceed its cost.
• Flexible: The indexing system should be flexible enough to adjust as per the requirement or increase as per increase in information.
• Speed: The effective indexing system should give rapidity to locate required files or documents.
• Suitable: The good indexing system should be suitable according to size and nature of organization and the nature of filing.
• Safe: The selected filing system should be safe enough from being damaged.

Types of indexing:

Indexing can be classified into two types as follows:

• Invisible indexing: Under this indexing, the files and records are maintained in such a manner that the records related to one file only can be found at a time. Invisible indexing can be of following types.

1. Simple book index: It is the simple type of indexing. In this indexing a bound register with many pages is used. The pages of register are separated into many alphabets. It means into 26 alphabets. Each alphabet carries two or more pages and necessary information is recorded in the respective alphabet based on alphabetical order. The edge of each page is successively cut off from right top of the first page to the right bottom of the last page in such a manner that the alphabet that is printed in pages orderly can be seen clearly at a time.

Merits:

a) It is simple to install and operate.

b) It is economical because only a register is used in this indexing.

c) As it is maintained in bound register it is safe.

Demerits:

a) It is inflexible because change cannot be made on it.

b) It is very difficult to make proper alphabetical arrangements.

c) It creates problem in searching required records.

• Loose leaf index: It is an improved form of book index. It means it is introduced to avoid the drawbacks of book index. In this index pages are not stitched up but they remain loose. Pages are maintained according to the alphabet and when a page is filled that another page is added there. Loose leaf index is characterized by merits and demerits of book index except the inflexible demerits of book index. It is flexible because necessary page can be added on it.
• Card index: Card index is the modern and advanced form of index introduced by a Frenchman Abbe Jean Rozier. Under this system separate cards are repaired for every organization, individual and subject matter and information such as name, address and telephone number are written in the cards and the cards are placed in the drawers. The required cards can be taken out from the drawer easily and quickly. Card index requires some important equipments and materials mentioned below:

1. Cabinet with drawers: Card index requires the cabinet with deep drawers to keep the cards safely. A long steel rod is fitted in the drawer which helps to hang the cards. The alphabet of the name of organization, person and subject is posted in the drawer.
2. Name cards: Cards with special side as per the requirement to write name, address, telephone number, etc. are used in card indexing. Cards are made up of thick paper or cardboard.
3. Guide cards: Another important instrument used in card index is guide card. Guide cards are used to divide the cards in a drawer in various alphabetical sections. It helps to find out the cards easily and safely.

Merits of card index:

a) Simple to understood and operate.

b) It is flexible because cards can be added or removed easily.

c) It is economical because it can be conducted by an ordinary person.

d) It is also useful to write additional information in the cards.

e) It is useful to the big organization.

Demerits of Card index:

a) It is expensive as well because the equipment used on it carries high cost.

b) It creates problem or difficulty due to the misplacement of cards.

c) It takes some time to operate because only one card is visible at one time.

Visible Index:

Visible indexing method is introduced to avoid the drawbacks of invisible indexing methods. Some important method of visible indexing are as follows:

Visible card index:

It is an improved form of card index. In card index only one card is seen but in visible card index all the cards are seen at a time. Under this method, cards are placed in a metal tray in an overlapping manner. The top of the each card is visible in which required information is written. Cards can be arranged alphabetically or numerically. A tray is fitted with rolling channels with help to move the tray backward and forward easily.

Merits:

a) It saves time because all the cards in a tray are visible at a time.

b) It requires minimum space because cards are placed in an overlapping manner.

c) It is facilitated with over merits such as simple, flexible, quick reference, etc.

Demerits:

a) It is expensive because tools and materials of these indexing are costly.

b) It requires special training and instructions to operate.

c) Other demerits of card index are also available in these indexing such as card damage, card misplacement, etc.

Strip index:

It is also a method of visible indexing. Under this method, metal holder or board is fitted with stand is used in which stripes of paper are fixed in which name, address, telephone number, etc. of customers are written and they are arranged alphabetically in a frame. All the stripes are visible at a time and it doesnot require the support of guide cards.

Strip indexing facilitates quick reference, economical, flexible and occupies minimum space but it is not suitable to write long information. It is only used in small organization.

Rotary card index or wheel index:

It is an advance form of visible card indexing. It gives quick reference than other methods of indexing. In this method, a rotating wheel with many steel rods in a circumference of wheel is fitted to a stand and cards are stored there. Cards are arranged in the circumference of wheel and the wheel is rotated to find out the required cards. Guide cards are used to find out the required cards.

Easy and quick reference, prestige and occupies less space are the merits of these indexing. Cost bearing, and difficult to operate are the demerits of wheel indexing.

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