b e 10 ethical issues in hrm

7/28/2019 B E 10 Ethical Issues in HRM

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ETHICALISSUESIN HRM

The manner in which the business deals with itsemployees is a clear indication of its ethicalcharacter

Decisions that do not flout law, but raise severalethical questions

Employees spend most of their time producing

goods and building relations with customers

If a business is to maximize long-term owner valueit must behave ethically towards its employees


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Treating employees ethically does not mean that

the business should work towards maximizing of

employee satisfaction but

Employees should be given their due reward for

contributing towards achievement of business

objectives

Ethics in personnel function deals with all the

issues in the relationship between the employee

and the business


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NATUREOFEMPLOYMENTCONTRACT

Legal document governs the relationship

Spell out tasks and responsibilities of the employee,remuneration, location, travel requirements

Terms of employment contract tend to be clear formanual worker than a professional

Business has obligation to continue to provide work toits employee , as long as it is viable for the business

This moral obligation was widely practiced by Japanesebusiness


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Life time employment stability than growth leadsto higher employee loyalty, and productivity

Whether this policy helps business to fulfill its

obligations to other stakeholders

Just as business has moral responsibilitiesemployees have certain responsibilities to business

The responsibility depends on the nature ofemployment


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A casual laborers responsibilities may be limited to

doing the work for which he is paid

A permanent employee is expected to have somedegree of loyalty to the business which gives him

job security, a sense of belonging, and prospects

growth and well being while in employment


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HIRINGTHEPRINCIPLEOFETHICAL

SELECTION

most important step in hiring is selecting the personwho should be selected

Right principle of selection would be to hire that

individual who is perceived as having the abilities tocontribute to the long term ownership value

Applies to other activities of personnel like promotingable employees and deciding who is to be fired

Ethical selection - honest, fair, non-coercive and legal

Based on the same criteria


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All the requirements and benefits of a job areclearly conveyed to the applicants

Ethical principle is not followed wrong candidate

may hired leads to dissatisfaction amongemployees valuable resources wasted growthof business gets affected

Selecting the right candidate not just to eliminateunsuitable persons

Not possible to find the best person always forcedto accept the best among the available


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Unethical practices in hiring are: discrimination on thebasis of age, gender, religion and nationality

Discrimination

Functional qualities require to do the job;

Painter, actor, driver

Some times character of a person plays an importantrole in the selection for a job eg. Purchase Officer,Policeman, Cashier etc., demands a high level ofhonesty and integrity

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Irrelevant criteria limits the pool of talent

Referrals for hiring:

referral network is extremely beneficial

depending solely is unethical as good candidates have noaccess

over qualification:

managers feel subordinate may be a threat

ageism:

youngsters perceived to be more capable of adopting to newcircumstances and more willing to learn new skills

older people are considered for jobs that demand experienceand responsibility


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CREDENTIALS

Degrees, Certificates or Citations

Simplifies the job of recruiter but fails to differentiate

between academic qualifications and intelligenceand vocational, expertise in a particular field

May not always reflect the applicants functional

abilities to do a job


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TESTING

Better method of assessing an applicant

Objective tests focus on specific aptitude,

psychological characteristics to effectively performa job

Directly test the proficiency in the job( typing,

writing, programming etc.)

Out come of the test may be defective some times

unless well designed


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EQUALITYOFOPPORTUNITY

Important principle of ethical selection

Rules apply equally to all the prospects

No prospective applicant is prevented from subjecting to rules,

using coercive means

No applicant is rejected for reasons other than those laiddown by the rules for hiring

Screening every applicant with the same criteria

Quotas are reservation for some communities is considered acase of reverse discrimination even though such practicesare aimed at providing social justice


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EMPLOYEESWITHPROBLEMSIN PERSONAL

LIFE

Either part with the person or help him out

Counseling, rehabilitation

Remedial benefits loans, grants, medical

assistance etc

The business helps itself by helping its employeesin need


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ETHICALREMUNERATION

SENIORITYANDLOYALTY

Experience that does not translate in to a higher

degree of contribution is of no use

Down playing the senioritys importance does notmean that employees putting in best efforts should

not be rewarded

Employees who understand long term goals ofbusiness, prepared to forego rewards in order to

achieve the goals are the employees who can

make the greatest contribution to business


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ETHICSINRETRENCHMENT

Common at times of recessionlean and mean

style of management

Downsizing


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FIRING

Employers include at-will clause in the contract

Fire the employee at-will or for a cause-unethical

Firing may have a devastating effect

firing-honest, fair, legal and without coercion-

is a critical decision

Poor performance, acts of sabotage, dishonesty, misuse ofauthority

Lay offs right sizing, down sizing,

Who should be fired first least productive


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ETHICAL REMUNERATION NEED, EFFORT

AND ABILITY

Principle of ethical remuneration:

Should not reward any thing other than contributions to

long-term owner value

Need is not a consideration

Effort, talent and abilities are desired in a person,

possessing them alone will not lead to rewards

Ethical business does not reward any thing other than

results


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Remuneration s not driven by employees need

Mere possession of superior skill and abilities willnot automatically qualify for greater remuneration

(remuneration depends solely on results)

Employees who work hard to perform a task neednot be rewarded more than those who do it

effortlessly

A person who works hard but fails to achieveresults, deserves no reward but sympathy

b e 10 ethical issues in hrm

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