Responsibility of Manager
A firm is a social institution that has harmonious relationship with the various segments of society. This relationship can be better understood by understanding the responsibility of manager. These responsibilities are towards customers, employees, shareholders, suppliers, distributors and retailers, Competitors, unions, government and society. Let’s discuss the responsibility of manager one by one:
Responsibility of Manager towards customers
The starting point for the business firm is the understanding of the needs of the customer and the foremost responsibility of manager is towards the customers.
- He must ensure that the desired quality of product at a reasonable price is made easily available to the customers.
- It is the responsibility of the manager to provide the right match between quality and price.
- It is responsibility of manager to promote the products only on the basis of real and not imaginary benefits.
- The management of a firm should always, aim at marketing, the right product, at the right price and of the right quality
Responsibility towards Shareholders
All those people who contribute capital to a firm are known as its shareholders.
- The prime responsibility of the manager is to ensure the security of the shareholders’ capital.
- The manager must, at least, ensure the survival of the firm.
- He has to ensure that the shareholders are able to earn profit on their capital.
- He must keep shareholders regularly informed about all important decisions, activities and results.
- He must ensure that the information provided in reports.and balance-sheets is correct and authentic, and does not in any way mislead the shareholders
Responsibility towards Employees
Your employees are your most important resource. Their hard work, ingenuity, loyalty and dedication are critical contributions to the success of your firm.
- A manager must ensure that employees are given fair deal in terms of wages and salaries, and compliance with the statutory obligation of provident fund, gratuity, insurance, bonus, etc.
- The employees must be provided the provision of a safe, healthy environment which is conducive to work
- The responsibility of a manager is also to ensure that all dealings with the employees are fair.
Responsibility towards Suppliers
The Survival of Supplier depends upon the survival and growth of firm. Suppliers provide you the raw materials, components and parts necessary for the production of your products. A firm depends upon the supplier to for regular, timely supplies of the specified quality at the agreed price.
- A manager must try to make the payment of suppliers in time.
- The manager’s responsibility towards suppliers of funds, i.e. banks and other financial institutions, is that not only he has to make the interest payments, but make the repayment on time as per the agreed repayment schedules.
Responsibility towards distributors and retailors
Distributors and retailers are the link between the firm and the actual customers who consume the product.
- It is the responsibility of manager for ensuring regular supplies to distributors.
- The products that you supply to the distributor must be checked for quality to ensure that second grade or inferior quality goods are not shipped.
- The distributors must earn fair profit and apart from providing fixed percentage the target based incentives, commissions and rewards will motivate dealers to push your products harder.
- A manager must nurture and maintain cordial relationship with all dealers.
Responsibility towards Industry and Competition
Other firms are competitors in market but act as lobby to represent an industry by constituting industry associations.
- It is responsibility of manager to register his firm as a member of industry association and comply with all its rules and regulations
- The information provided to these associations must be correct so that the association can present a true picture of the industry.
Responsibility towards Union
- The first responsibility of manager is to acknowledge the employee unions as a friend rather than as a foe of the firm.
- A manager must understand and appreciate the fact that the management and union have a great degree of mutual dependence and the union cannot further its interests at the cost of the firm’s interests and vice versa
- The manager must recognise and acknowledge the bargaining power of the union arising out of its collective strength
Responsibility towards Government
- It is responsibility of the manager to ensure that the constitution and operations of the firm are within the legal framework as specified by the government.
- The manager should ensure that his firm is paying regularly and fairly all taxes, dues and duties.
- The manager must strive to make his firm a model corporate citizen
Responsibility towards Society
- The manager also has responsibility towards his surroundings and the people living in the vicinity of his factory and office.
- It is responsibility of manager to make sure that the operations of firm do not in any way obstruct, disturb, disrupt or destroy physical structures (historical buildings, monuments), the flora and fauna, and animal and human life
- A truly responsible manager not only takes steps to prevent or minimise any negative impact of his firm’s operations on the society, but also takes the initiative in playing a more positive role towards society
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