The most important reason for following company rules and regulations is personal safety and the safety of your clients and co-workers. (Porket, 2003). Different types of regulations for business include those imposed by government, the market i.e. When regulations are made and implemented, then these companies are bound to follow it otherwise they’ll have to bear the consequences in form of penalty such are monetary fines or closure of business. Some regulations impact the ways in which businesses report income and pay taxes; others regulate how they dispose of their excess materials or waste. Obeying rules and regulations in the workplace provides accountability. Tucker has a BA and holds Ohio teaching credentials. (Porket, 2003). If you use foul language, consistently leave public work areas or break areas a mess, argue with customers, disregard parking policies or act inappropriately toward customers and co-workers, you may be putting your career in jeopardy. If there are no regulations, monopolies would exploit consumers at high prices, companies would not produce goods with quality standards and the harmful effects of using a particular product would not be mentioned if proper regulations were not in place. This is especially important if you work with dangerous machinery, maneuver heavy equipment or work in hazardous conditions. There are both sides to business regulations. Therefore regulations are beneficial as many businesses don’t tend to self-regulate them. Because these rules … Therefore, some regulation should be standardized worldwide in order for them to be effective. Rules are the most important as it completes a company: Companies nowadays are not just a mere entity but they are more than that. Some employers "write up" or give employees a written reprimand if they neglect to follow company rules or regulations. Importance of Workplace Incident Reports→, Can My Employer Require Me to Be Tobacco Free Off Duty?→, Reasons for Employers to Fight Unemployment Claims→. It often takes more than one minor violation to get fired, but a write-up is still a strike against your record. If you imagine doing business without any legal means to protect your best interests, you’ll understand why the rule of law is important to business. It is important for establishments to develop specific rules and policy examples that will allow them to have a smooth flow of operations without compromising the safety of the people that they work for or work with. Effective workplace safety rules are necessary so that people can put in mind that they do … Organizational leaders often leverage business rules to establish safety, in times of conflict resolution, to decrease errors, and to prevent the need for litigation. Obeying rules that govern employee conduct make the workplace a more pleasant and enjoyable environment. The Importance of Obeying the Rules and Regulations in the Workplace, United States Office of Personnel Management: Addressing and Resolving Poor Performance, Engineers International: Occupational Health and Safety in the Workplace. Even though some regulations in the workplace seem trite and insignificant, many protect the rights and safety of employees. For example, if restrictions on factory emissions are not imposed, many companies may not be concerned about the negative effect of factory advertising emissions to save the costs of safe emission systems. Along with advantages, there are also some drawbacks of regulations. Or if you're a medical insurance coder and carefully followed rules that require you to look up unfamiliar or questionable codes before submitting claims, you won't be held responsible if a claim comes back as uncovered or non-payable. On the other hand regulations are also important as some businesses do not self-regulate themselves and can therefore be involved in actions which are harmful to the society. Regulation is therefore one way to ensure that the company does not harm society. First, rules are important because they tend to protect the weaker class in the society as they might be disadvantaged if rules are broken. The rule of law If every so often you neglect to empty the coffee filter or forget to restock the copy machine with paper, your boss will likely overlook the offense. Regulations are successful at providing companies with a specific direction to pursue. In a struggling economy, job security is a highly valued commodity. The most important reason for following company rules and regulations is personal safety and the safety of your clients and co-workers. In these units, employees are paid very low rate and also they are forced to work for long hours under bad conditions (of health and safety like extremely hot temperature). . All government regulations on business require companies to comply with federal, state, and local statues and regulations administered by legislative bodies and carried out by regulatory agencies. Due to laws that protect individual rights, employers take sexual harassment very seriously, and refusal to follow harassment regulations could cost you your job. Without the Federal Code of Regulations, it would be difficult for individuals or businesses to transact businesses using banks. They tend to be helpful as they try to overcome different market failure, provide direction to companies, workers etc. Regulations which are stricter than what is actually required can unnecessarily add to the cost of the business. On the other hand regulations are also important as some businesses do not self-regulate themselves and can therefore be involved in actions which are harmful to the society. Copyright 2020 Leaf Group Ltd. / Leaf Group Media, All Rights Reserved. Moreover, implementation of regulations is more important than just forming rules just for the sake of having regulations. Obeying company policies and following company guidelines don't guarantee your job will last forever, but doing so helps ensure that you won't lose your job as a result of your own wrongdoing or misconduct. (Porket, 2003). Businesses need to make sure that they can provide the utmost safety and security to their stakeholders. the industry in which the business operates (like dairy industry will have different regulations than the banking industry) and international regulations (for businesses involved in trade/business in more than one country). over the years. Regulations are successful at providing companies with a specific direction to pursue. The Importance of Obeying the Rules and Regulations: 1. For example, if your bank teller drawer comes up short but you've carefully followed procedures and recorded every transaction, then your boss will know it was a mistake in the processing center. A common argument against overregulation and … For example, rules are used in … Regulations also help in preventing exploitation of consumers. Business rules must also be used to ensure an organization is abiding by local, state, and federal regulatory requirements and guidelines. You have entered an incorrect email address! For example, if restrictions on factory emissions are not imposed, man… According to the U.S. Office of Personnel Management, examples of misconduct include tardiness and absenteeism, insubordination and falsification.