The following are the chief methods of classification of files

The problem is not in filing records, but in finding them. The object of classification is to enable the managers to select any one paper from among all the papers stored in the office, without loss of time and at the least cost.

In order to make files promptly available, it c is necessary that they should be given proper titles and classified or grouped according to some fixed basis.

Classification is the process of selecting headings under which documents are grouped or classified on the basis of common characteristics before filing takes place, the following are the chief methods of classification of files.

1. Alphabetical Classification

Under this system letters are filed in the alphabetical order of the names of parties. This classification is the most commonly followed of all. The telephone directory is an example, which requires no explanation.

This is good when the headings of files can be expressed in one word, name of people or products, etc. Files containing letters are arranged; according to the alphabetical order. The first set of files may contain the papers of customers whose names begin with A; those having their names beginning with B, in another file and so on.

If there are more names under A, dictionary method will be followed:

Advantages of Alphabetical Classification

(1) Training is not needed for the clerks to perform the filing.

(2) It is easy and convenient to group papers by names of persons, firm, products, etc.

(3) Direct filing is possible without the help of an index. It is self-index.

(4) Files can be located immediately.

(5) Number of files can be reduced or introduced without disturbing the classification.

Disadvantages of Alphabetical Classification

(1) Mistakes creep in under common names, i.e., when there are several persons having the same name.

(2) There is also difficulty if the names are mis-spelt.

2. Numerical Classification

In this system a number is allotted to each customer and the same number is put on all papers or documents relating to transactions with him. The file is also numbered and the papers are filed on the basis of numbers. Thus, the number allocated to each correspondent becomes his file number.

If one file contains records of more persons, decimal system may be used e.g., 21.1 denotes one person; 21.2 denotes another and so on. And these are file No. 21. To locate a particular file, it is necessary to refer to an index.

Therefore index cards are prepared and the file numbers are written on them and arranged in alphabetical order in a safe place or drawer. Whenever a file is needed, one will consult the index card, obtain the number of the files and then take out the file required.

Merits of Numerical Classification

(1) Accuracy in filing system is greater.

(2) Reference is made by numbers.

(3) Expansion facilities are there.

(4) It is simple to understand.

(5) If files are misplaced, it can be noticed promptly.

(6) It is easy to operate; numbered files can easily be located and arranged serially in comparison to alphabetical index.

Demerits of Numerical Classification

(1) A separate index is a must.

(2) More time is required to locate a file. One has to refer to index and then search for the files.

(3) Transposition of figures causes miss-filing.

The system of classification is useful for mail order houses, banks, advertising agencies, departmental stores etc.

Out of many variants of the numerical classification, three systems are worthy-noting. (A) Consecutive Classification, (B) The Dowey Classification System and (C) Terminal Digit System.

3. The Alphabetical-Numerical or Alpha-Numerical Classification

Now a day this system is very popular. It has the advantages of both the above said systems. It is a combination of the alphabetical system and the numerical system. In this system each letter or sub-letter is given its own number and an index card is placed behind the guide card for each alphabetical section.

The names and numbers of all the folders are mentioned in numerical order behind each card. The colored guide cards are used to sub­divide for folders into groups to facilitate their speedy location.

For instance, all files are arranged alphabetically and the first group is Aa-Ag. The folders of ABC firm, Agra book stores are first and second in order within this group; the first folder will bear the number A/1 and the second folder will bear the number A/2 and so on.

Merits of above Classification

1. It has all the advantages of the alphabetical and numerical classification.

2. It is an elastic classification.

3. It facilitates quick reference.

4. Geographical Classification

Geographical filing is an arrangement of countries, towns, other areas in an alphabetical order. It is convenient to use the geographical system for major groupings and then introduction of alphabetical order.

This is a good system and is being adopted by the concerns. The area over which the activities of a firm are spread may be divided into a number of regions and the papers are filed on the basis of locality. This is a good system, when a firm has many branches or business throughout a country.

The files which contain the correspondence of one locality are arranged state wise, city wise, etc. This system is generally profitably used by banks, insurance, departmental stores, etc.

Merits of Geographical Classification

Statistical data can be collected easily.

It is simple to operate.

Demerits of Geographical Classification

(1) Geographical location must be known.

(2) Addresses of the persons must be known.

(3) Clerks must be trained.

(4) Index is required.

5. Subject wise Classification

In this, records are filed according to the nature of their subjects or contents. This system can be profitably adopted by a concern which may classify correspondence into well-defined groups. Papers are first arranged subject wise and then in alphabetical order.

There may be order file, invoice file, complaint file, etc. Papers on a particular subject are arranged and put together, rearranged alphabetically or numerically and filed accordingly. This system is more important where subject-matter will be given more weight than the name of the correspondence.

6. Chronological Classification

Various records are identified and arranged in strict date order and sometimes even according to the time of the day. For examples, newspapers, current prices, market reports etc. It is a useful system if dates are known.