Location means the place and site where the office of an organisation is situated. Proper location of the office is of great importance to every organisation. While taking a decision on this issue, the management must take into consideration the present as well as future needs. An unsuitable location adversely affects the efficiency of operations.
Factors Determining office Location
The following factors should be taken into consideration while determining office location:
(a) Availability of sufficient space
The office should have sufficient accommodation and facilities i.e., rooms, storage space etc. Future expansion and requirements should also be kept in view.
(b) Proximity to other departments
The office should be located in a central place so as to be easily accessible to other sections, units and departments of the organisation.
(c) Proximity to other offices
The office should be located in or near an existing office complex which will enable it to derive the benefits of common services like Post Office, Bank, Transport etc. available in the locality.
(d) Availability of transport facilities
Every office requires adequate transport facilities for the convenience of office workers and outsiders dealing with the office.
(e) Service facilities
Besides transport, availability of banking, postal, internet, telephone and telegraph facilities are also necessary for the efficient conduct of office functions. The services of insurance agencies are also needed for various purposes. The office should, therefore, be located where such facilities exist.
(f) Availability of office employees
It is desirable to locate the office where it may be easier to recruit and retain different categories of office staff e.g., stenographers, computer operators, accountants, clerks, typists, peons, etc.
(g) Healthy environment
Every office requires healthy surroundings. The place must be free from dust and noise. It should not be located in a congested area. Unhealthy surroundings adversely affect the efficiency of the employees.
In short, the location chosen must be one from where the entire organisation can be served efficiently at a reasonable cost.