What are the managerial responsibilities?

Managerial Responsibilities 

Managers are the responsible person in an organisation. They are responsible to maintain the relationship with the stockholders and investors, maintain the relation of employees, consumers, interrelated businesses, government, and community interest.

The management is responsible and answerable to many groups. Management is taking a fair decision for all the parties. These interested parties are:-


(i)   Responsibility Towards Stockholders and Other Investors:- 

Stockholders invest their funds in an organisation for making a reasonable profit. They are the owners of the company who have invested capital in the organisation.
They are interested in the stability, growth, and the image of the company not for quick profits. The company must create an image of quality and service.

In addition, it is the management's duty to inform the shareholders about the company's financial position from time to time and all other relevant matters regarding objectives, policies, and procedures, so that the stockholders can give some necessity input time to time.

The stable growth of a company will help the stockholders in two ways:-

1. They will share a part of the total profits in the form of dividends
2. The value of their share will appreciate. 

(ii)   Responsibility Towards Employees:- 

Employees who put in their time and efforts are many folds. Some of the responsibilities of management towards employees are :

• Responsibility in Relation to Employment:-  Employment is meant to be mutually beneficial for the employees as well as for the employers.  Accordingly, the importance should not only be on what the employee can do for the company but also on what the company can do for the employee. 

The employees must be assigned the right jobs as per their knowledge, experience, attitudes,          and interests.

Additionally, employees must be made aware of company policies, procedures, and objectives. 

• Responsibility in Relation to Working Conditions:-   The employees spend their major part of the day in the work environment. These working conditions refer to physical facilities which must be adequate and acceptable. These must meet the accepted standards of cleanliness, light, heat, air conditioning, ventilation, safety, and sanitation facilities.

They should also be given the proper tools and machines to work with. Whenever the job requires some extra degree of risk or difficulty, then additional benefits and incentives must be offered. These conditions include:- 

1. Night duty 
2. Working with chemicals
3. Working underground in coal mines 
4. Heavy machinery 

• Responsibility in Relation to Economic Security:-   The economic security implies the flow of the job in good times as well as bad times. This sense of jobs security greatly improves the sense of dedication to the company.

Lifetime employment brings about a shared responsibility which helps to build loyalty to the company.

 In addition to job security, the remuneration and fringe benefits must be adequate and encouraging. Some of the fringe benefits in addition to the salary are:- 

1. Life insurance 
2. Medical insurance
3. Maternity leave 
4. Sick leave 
5. Provision for other emergencies 
6. Profit sharing plans
7. Stock options. This is a provision to buy the stock shares of the company at a price lower than the price paid by the public.
8. Pension plans and retirement benefits
9. Free education for workers, if necessary, and for their children.

• Responsibility in Relation to Job Satisfaction:- 
  
  Job satisfaction refers to the employee's self-fulfilment and happiness at the job. The conceptual environment should be such as to enhance the employee' confidence and faith in the company. 

The workers should be encouraged to participate in company affairs as much as possible, especially in the formulation of procedures and policies affecting them.

(iii)   Responsibility Towards Consumers:- 

The customers expect a quality product at a reasonable price with guaranteed satisfaction. The quality of the product can be guaranteed by offering facilities for returning the defective product either for a refund of the purchased price or for a new unit. 

The product should be simple to operate and be made easily available through proper distribution channels and customer satisfaction should be the best rule of sales. 

"The customer is always right, " has proved to be a good policy for initiating sales and keeping the customer.


(iv)   Responsibility Towards Inter-Business Relations:- 

All industries buy raw materials or semi-finished products from other industries. All business buy some supplies from vendors. All companies sell their products to other companies like distributors and wholesalers.
It is the responsibility of the management to maintain the inter-business relationship at a level of high ethical standards.
 They should have fair trade practices regarding their:-

• Prices
• The quality and quantity of the product 
• Methods of payment
• Time and mode of delivery
• The quality of service 

For example, General Motors buys steel from steel mills, tires from Firestone or General Tyre, and some other parts of the cars from other companies and sells the cars to dealers. These inter-business relationships demand a fair code of conduct from all parties concerned.


(v)   Responsibility Towards Government:- 

The management must operate within the legal system, adhering to all laws which may be local, state, or federal laws. These laws include, but are not limited to:-

(a)  Paying proper taxes and paying them on time.

(b)  Respecting laws pertaining to the social environment. These may be relating to air pollution, water pollution, noise pollution, dumping of chemical wastes, respect for zoning laws etc.

(c)  Affirmative action. This means that the management makes special provisions for hiring, training and promoting employees belonging to such minority groups who have been discriminated against previously.

(d)  Equal opportunities for all.

(e)  Respect for anti-trust laws.

(f)   Truth in advertising. This means that the public should not be false claims about the benefits of the product.

(vi)   Responsibility Towards Community Interests:- 

Some of these interests may be protected by law such as areas of air pollution and water pollution. Other interests may be the outcome of social environments. Some of the community interest are:-

(a)  Providing jobs with within the community

(b)  Hiring the handicaps

(c)  Assisting in church and school activities

(d)  Organising sports tournaments and other cultural functions for the community

(e)  Raising funds for public activities such as the opening of hospitals or other charitable activities

(f)  Taking an active interest in all community affairs.

Thus, these are the major responsibilities of managers.







Happy reading :)