A system and method for tracking articles and monitoring them on a real time basis comprising the use of a tag and one or more reader disposed within a locale being monitored and structured to communicate received data transmission to or from a host controller, for additional administrative processing in terms of determining the existence, location, state and/or movement of various articles with which the plurality of tags are directly associated. Depending on their category the tags may be activated by either entering an electric field of a predetermined first frequency or by receiving an activation signal from the reader assembly also transmitted at the first predetermined frequency. Communication between the tags and the reader occurs at a second frequency being different from the first frequency.