Page 173 - DMGT401Business Environment

Business Environment

Notes 7.7.2 Responsibility towards Employees

The Success of an organization is dependent on its employees. Gone are the days when employees
were the most neglected resource of the organization. Today, HRM is the Critical Success Factor
for the success of all industries, be it Old Economy industries like steel, cement or FMCG or New
Economy ones like BPOs and software services. Organizations have many responsibilities,
towards their employees:
1. Fair treatment
2. No discrimination on the basis of sex, caste or creed
3. Fair wages
4. Fair appraisal system
5. Healthy and safe working environment
6. Establishment of fair work standards and norms
7. The provision of labour welfare facilities

8. Fair opportunity for accomplishment and promotion
9. Proper recognition, appreciation and encouragement of special skills and capabilities of
the workers
10. Installation of an efficient grievances handling system
11. An opportunity for participating in managerial decisions to the extent desirable
12. Proper training and development programmes so that workers can develop themselves
according to a changing environment
13. Family Welfare: That is, if workers have lesser problems in their family life, their
productivity will be higher. It is for this reason that Tatas have invested a lot in family
welfare of its employees. JRD Tata has also won UNESCO's world population award. JRD
invested a lot in making his employees understand about family planning, which ultimately
resulted in happier families among the employees.
Most of India's work force is employed in the private sector. Imagine, if every private sector
pays attention on family planning, it would be a great born to the organisation, apart from
benefiting the country.

7.7.3 Responsibility towards Consumer

1. Providing products of proven quality
2. Regular R&D to augment the product and to innovate
3. To ensure that product reaches the customer and to check any sort of black marketing or
profiteering by middlemen and anti social elements
4. To supply goods at reasonable prices
5. To provide required after-sale services, and to ensure that spare parts should be available
in the market
6. To fulfil its commitments impartially and courteously, in accordance with sound and
straightforward business principles
7. To provide sufficient information about the product, including its adverse effects, risks
and the care to be taken while using the product

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