Various parties, which are involved with the company, have many expectations from the company. Among these, maintenance of their interest and increase in it are main expectation. It is not possible for the company to satisfy claims of each party. There are two limitations, (1) Limitation of company’s capability and (2) Contradiction among claims of the parties.
(1) Limitation of company’s capability: Limitations of internal capacity of the company known as capability limitation of the company. In which, limitations of resources, limitation of production capacity, limitation of employees force, limitation of facilities, location, financial resources, authority etc. are included. Sometimes, even management has desire to support claims of the parties and to satisfy them, they are unable to implement because of financial limitation and limitation of power. Such matters can be obstructive for providing special facilities to the employees.
(2) Contradiction among claims of the parties: Many claims, out of various claims of many parties, involved with the company come into clash with each other, e. g. if more facilities are provided to the employees of the company, some portion of the profit used for welfare activities, profit for distribution may reduce. Because of this, it is difficult to pay reasonable return on investment to the investors. If profit is used more for reinvestment, ratio of taxes may be reduced, and it makes claim of government useless. More than expected exports, may help government for foreign exchange earning, but it may create scarcity of the materials in the local market and public has to pay higher prices for the materials. Therefore expectation of customers for reasonable rate is not satisfied.
Keeping above limitations into consideration, after making proper analysis of claims of all parties, it is necessary to make reconciliation of their Claims.
