Centralized filing system has various advantages and disadvantages. For a list of its advantages, refer this article: Centralized filing system | Explanation | Advantages.
There are also certain disadvantages with centralized filing which are briefly explained below.
Disadvantages or Limitations of centralized filing
1. Records may become more vulnerable since they are stored in one central location.
2. It may cause great delay in bringing records if most office staff required several documents at a time.
3. The risk of loss due to fire, theft and the like is more since all the documents are stored in only one place.
4. The filing department may enforce rules and procedure rigidly regarding receiving and returning the files. This may affect the smooth functioning of functional department operations.
5. More human resources and time are spent on the locating and returning the files at precious time.
6. Sometimes, the same documents or records are required by more than one department. It creates strained relationship among staff.
7. It is very difficult to maintain secret and confidential documents.
8. If specialized staffs are not appointed in the filing department, there may be a large number of misfiling.
9. The filing department may become a storage place of unwanted and unnecessary documents.
10. If some papers or pages are missed, it is very difficult to find such papers and no possibility of fixing responsibility on any body.
11. The centralized filing is not suitable if the organization has its functional department in different geographical areas.