Rules play an important role in the efficient functioning of an organization. They define the rights and duties of the workers. They also help the workers to become aware of their job limitations. The rules are made for the people and should be changed when required. Unnecessary restrictions can not only affect the performance of workers but also weaken the bond between employee and the employer. Consequently, it will produce harmful results for the organization. Only those rules should be made which are easy to follow. Otherwise, violation of a single rule can lead the violation of the all. Nobody likes excessive restrictions. Outdated rules should be discontinued. Otherwise it can damage the foundation of the organization.