In a subject classification, all letters and documents relating to a subject are arranged in the same file. A separate file is maintained for each subject. The files can also be arranged alphabetically.
For example, Accounts, Audit, Bonus, Customers, and the like.
The subject classification is used mostly by the real estate business units. They are keeping documents under type of materials or contracts. Likewise educational institutions are also maintains books on the basis of subjects.
For example, Accounts, Commerce, Economics, Management, Computer Science and the like.
Advantages of Subject classification of files
The subject classification offers the following advantages.
1. It is very easy to locate the files if subject is known.
2. Every subject file gives complete information about a subject.
3. Unlimited expansion of file is possible under this method.
Disadvantages of Subject Classification of files
The subject classification seers from the following disadvantages.
1. It is very difficult to classify and identify the documents if the subject is not understood by the employee.
2. Subject classification requires cross reference frequently which leads to consumption of lot of time.
3. An index should be prepared if the volume of correspondence is large.
4. It is not suitable for miscellaneous papers.
5. Great care should be devoted to select a title for files. Titles must be short and self-explanatory.
Chronological Classification of files
In chronological classification, the records are filed and arranged in date wise. It is highly useful since the invoices and vouchers are associated with accounts and constitute a journal.
In correspondence filing, the letters are arranged in date wise. But this system cannot be used independently. First, the records are classified in subject wise and filed inside in date wise relating to the subject.
Advantages chronological classification of files
The chronological classification has the following advantages.
1. When dates are known, it is very easily to find out.
2. It is good for overall classification i.e. if the correspondences are maintained for many years.
3. Chronological classification of filing is very simple to operate.
Disadvantages of chronological classification of files
The disadvantages of chronological classification are discussed below.
1. Chronological filing is not useful for large scale business units.
2. It is very difficult to locate the documents if the date is not known.
3. Incoming letters might be separated from out going replies.