hrm chapter

download hrm chapter

of 13

Transcript of hrm chapter

  • 8/7/2019 hrm chapter

    1/13

    Chapter 12: Ethics in Human Resource Management

    INTRODUCTION

    Human Resource Management is the process of acquiring, training, appraising and compensating

    employees and attending to their labor relations, health, and safety and fairness concern. The policies and

    practices involved in carrying out the People or HR aspects of a management position, including

    recruiting, screening, training, rewarding and appraising. HR management activities like recruiting,

    hiring, training, compensation, apprising and developing employees is part of every manager job. Its also

    a separate staff function and that the H.R. managers assist all managers in many important ways. As faras HRM is concerned, what is ethical and what is unethical in general may not be easy to answer. As we

    know that ethics is the discipline dealing with what is good or bad and with moral duty and obligations.

    An organizations human resource policies and practices represent important forces for shaping employee

    behavior and attitudes. Thus there is a close linkage between HRM and ethics. Ethics in HRM can be

    defined as Functioning and Performing HRM policies and practices with some standards norms,

    managing human resources so that mutual benefits can be achieved. To understand the role of ethics inHRM, we go through the separate parts of human resource management and see how each one is related

    with ethical implications.

    ETHICS IN JOB DESIGN

    An understanding of job/work design can help executives to design and redesign job in such a way that it

    positively affects employee motivation. It includes work simplification, job rotation, job enlargement, andjob enrichment, job sharing, independent work teams, dejobbing and empowering the workforce.

    Job Rotation

    Job rotation takes place when any employee suffers from over reutilization of his work. Then the

    employee is rotated to another job, at the same level that has similar skill requirements but sometimes we

    find some unethical issues like rotating the worker in the kinds of jobs where no innovative perspectives

    are present and the periodic shifts of workers may be the outcome of some conflicts among workers and

    employees who are involved in job design.

    Work Simplification

    It means simplifying the work of the employee, so they can understand it well and perform to full of their

    skills. The unethical issue has come in to the picture when work is over simplified that lead to boredom,

    more mistakes, less interests and tendering resignations.

    Job EnlargementJob enlargement is nothing but the horizontal expansion of jobs. This concept was introduced ground 40

    years back. It increases the number and variety of tasks that an individual has to perform. Though

    motivational impacts are there of job enlargement, yet it may sometimes result in much more boring

    tasks.

    Job Enrichment

    Job enrichment is nothing but the vertical expansion of job. In fact to deal with the short comings of job

    enlargement, it has been introduced to deal with the shortcomings of enlargement. In an enriched job, an

    employee would do the work with complete activities, more freedom and increased responsibility. The

    only thing which should be handled carefully is to take care while selecting the employee whose job

    should be enriched.

    Job Sharing

    Job sharing is simply the practice of having two or more people split a 40 hour week job. So people find itas an opportunity to get an experience of two heads. The unethical issue involve here is to intentionally

    involve two person to do single job who do not successfully coordinate.

    Dejobbing

    Dejobbing is the practice in this global environment which checks the companies from overstaffing to

    prepare committed employees. But it is more suitable for the competitive markets. It is not ethical to go

    for dejobbing if not required at all.

    Empowerment

    In this option employees go for requiring skills and additional knowledge to do the job in which they have

    their interest and aptitude.

    ETHICS IN HUMAN RESOURCE PLANNING:

  • 8/7/2019 hrm chapter

    2/13

    BUSINESS ETHICS

    Human resource planning is a wide process; before entering into ethics prevailing in it there is need to

    understand the planning process clearly.

    Human resource planning can be considered as:

    One of the strategic steps for building the strong foundation of an efficient workforce in an

    organization

    The term includes, its management, which primarily involves issues related to the workforce.

    The human resource planning process, demands the HR manager to first understand the business

    requirement. Only if he comprehends the nature and scope of the business, will he be able to employ

    those who will deliver the required performance. When it comes to engaging the manpower, the manager

    should have a keen eye for spotting the talent. It ensures that the workforce is competent enough the meet

    the targets.

    Additionally, the existing 'talent pool' in the workplace should be taken into consideration, so that people

    with complimentary skills can be employed. The functions of the HR manager are varied; he has to assess

    the currently employed workforce and their shortcomings. Identifying these shortcomings goes a long

    way in choosing an efficient workforce. While recruiting the new employees, the HR manager must

    calculate the expected workload. This way the HR department can design an accurate job profile and job

    expectations.

    Benefits of HR planning:

    There are numbers of benefits listed for HR planning process:

    It highlighting opportunities for strategic partnerships in organization to share the benefits, risks

    and training cost.

    By going through HR process it become easy to encourage and motivate the different activities

    proceeding under it and provide a balance check that either the programme is on track or not.

    It makes the easier to evaluate the progress ( by taking feedback from clients).

    Major challenges:

    A real very need to see results makes planning seem wasteful of time. Impatience with planningis always a challenge.

    Careful assessment may turn up more human resource development need than the projected or

    existing resources and funding can handle, and this may require challenging choice.

    ETHICS IN RECRUITMENT ANDSELECTION:

    Ways of recruitments:

    There are following ways of recruiting:

    Short listing

    Other forms of assessment

    The interview

    References

    Equal opportunities form

  • 8/7/2019 hrm chapter

    3/13

    BUSINESS ETHICS

    ETHICS IN RECRUITMENT AND SELECTIONS:

    Recruitment is the process of searching for prospective employees and stimulating them to apply for job

    in an organization. In corporate world we have two kind of recruitment

    Internal Recruitment

    External Recruitment

    First any organization search for a suitable person for its requirement internally, so people say it is been

    ethical towards the employee, they would get good changes of their promotion if the company opts

    internal recruitment.

    But as we know, now the world demands highly skilled and talented people. So suppose if the internal

    sources are not as skilled as required, the company should hunt for suitable candidates outside, if the

    company recruits internal candidates, even though they are not suitable to the job requirement. It would

    be unethical.

    Though people say that an organization is more ethical if it goes for internal recruitment and further

    provides training and development to the employees, if required. But how far is it ethical to make

    compromises as far as skill and talent concern? In any organization so many selection devices have been

    used like interviews written tests, performance simulation tests etc.

    Unethical practices during selection:

    There are also some practical ethical questions arise like.

    (a) Sometimes the organizations select unsuitable employees due to pressure from top level, some internal

    politics etc. If it happens in selection process, it directly Leads towards inefficiency and then has impact

    on organization growth and productivity.

    (b) Selection of a candidate as he/she suits the job is ethical but when people make some adjustment in

    job specification according to the suitability of the candidate just because of any corrupt activity, it iscalled as unethical!

  • 8/7/2019 hrm chapter

    4/13

    BUSINESS ETHICS

    (c) The practice of taking more employee than the need is also a common unethical practice in selection

    procedure.

    Ethics in Training & Development

    Training and development are planned learning experiences that teach workers how to effectively perform

    their current or future jobs. Training focuses on present jobs, while development prepares employees for

    possible future jobs. Training and development practices are designed to improve organizational

    performance by enhancing the knowledge and skill levels of employees.

    Ethical Issues In Training & Development:

    1- Lack of interest & qualification:

    Most of the time it happens that trainers qualification is not up to the mark. He does not have

    sufficient knowledge that is required to be delivered to the trainees. Sometimes they do not show

    interest in delivering the desired knowledge to the trainees which is the biggest discrepancy in the

    training program. It results in the employee distrust on the officials and the company. So trainers

    should be loyal and transparent in delivering the required knowledge to their employees so they can

    prove to be a better performer.

    2- Trainees have been selected not as per needs, but based on favoritism and nepotism:

    Another issue during training is that mostly trainees are selected not on the basis of their capability

    and performance. Instead managers choose them based on their own choice and biasness. This may

    create a discriminatory environment in the organization and most of the deserving employees dont

    get the chance of enhancing their skills. So managers should treat all the trainees equally and reward

    them on the basis of their abilities.

    3- Failing to provide training :To comply with the wide range of laws and regulations, companies are required to show that

    employees not only have complete knowledge about the regulations but also when and how to apply

    them. Most of the time companies fail to train employees about such issues which is mainly becauseof the reason that managers dont give much attention to rights and regulations or sometimes

    organizations willingly ignore such trainings in order to keep employees ignorant about their rights

    and employment regulations. Organizations should train their employees about Civil Rights Act, The

    Age discrimination in employment act, or health insurance portability and accountability act.

    4- Incurring employee injury during a training activity:

    On the job training and simulations often involve the use of work tools and equipments that could

    cause injuries if incorrectly used. Managers should explain and ensure that (1) employees are warned

    and trained about that usage and dangers associated with equipments. (2) Safety measures to be used

    while operating equipments.

    5- Incurring injuries to employees outside a training session:Managers should ensure that trainees have the necessary knowledge of competence in knowledge,

    skills and abilities before they are allowed to operate equipment or interact with customers. A

    company that contracts out vendors or consultants should ensure that it has liability insurance. Alsotrainers should be sure to keep copies of notes, activities and training manuals that show that training

    procedures were correct.

    6- Incurring breach of confidentiality or defamation:

    Trainers should ensure that the information they place and share with the trainees about other employees

    or their own organization should be accurate. Also before using any employees information managers

    should take them into confidence and tell them openly that in what way their information will be used.

    7-Reproducing and using copyrighted material in organizations without permission.

  • 8/7/2019 hrm chapter

    5/13

    BUSINESS ETHICS

    Most of the time in training sessions the manuals and learning aids are being used without seeking

    permission of the creator which is illegal. Managers should ensure that the material they are using is

    being purchased or being used after complete consent of the creator or in case of reproducing they havebeen granted permission by the owner.

    8-Excluding women, minorities and older employees from training programs:

    Women, minorities and older employees are often illegally excluded from the training programs either by

    not being made aware of the opportunities or purposeful exclusion from the enrolment programs. To

    avoid this managers and trainers should ensure that organizational culture and policies are neutral.

    Decisions should not be made on the basis of stereotypes; in fact it should be on the basis of job relevant

    factors.

    9- Workforce diversity:

    The future success of any organizations relies on the ability to manage a diverse body of talent that can

    bring innovative ideas, perspectives and views to their work. The challenge and problems faced of

    workplace diversity can be turned into a strategic organizational asset if an organization is able to

    capitalize on this melting pot of diverse talents. . Thus, a HR manager needs to be mindful and may

    employ a Think Global, Act Local approach in most circumstances. many local HR managers have to

    undergo cultural-based Human Resource Management training to further their abilities to motivate a

    group of professional that are highly qualified but culturally diverse. In order to effectively manage

    workplace diversity, Cox (1993) suggests that a HR Manager needs to change from an ethnocentric view

    ("our way is the best way") to a culturally relative perspective ("let's take the best of a variety of ways").

    This shift in philosophy has to be ingrained in the managerial framework of the HR Manager in his/her

    planning, organizing, leading and controlling of organizational resources. . Usually, such a program will

    encourage organizations members to air their opinions and learn how to resolve conflicts due to theirdiversity. More importantly, the purpose of a Diversity Mentoring Program seeks to encourage members

    to move beyond their own cultural frame of reference to recognize and take full advantage of the

    productivity potential inherent in a diverse population.

    Ethical Issues In Development:

    1- Glass ceiling :

    Major development issue faced by companies today is glass ceiling i.e, barrier to advancement to the

    higher levels of organizations. This barrier may be due to stereotypes that adversely affect the

    development of women or minorities. This is mostly caused by lack of access to training programs or

    developmental job experiences etc.

    2-Plateauing:

    It is the likelihood of the employee receiving future jobs assignments with incresed responsibility islow. it may be due to

    Lack of ability

    Lack of training

    Unfair pay decision

    Confusion about responsibilities

    Reduced developmental opportunities

  • 8/7/2019 hrm chapter

    6/13

    BUSINESS ETHICS

    in order to reduce this employees should be motivated to participate in the developmental [programs

    and decision making. This will increase the confidence of employees their performance will also be

    improved.

    3-Skills Obsolescence:

    It is the reduction in employees competence resulting from the lack of knowledge of new processes

    and technology due to rapid advancements. Mostly organizations do not emphasis on training

    employees about new technology which in turn prove to be a hurdle in their development. So it is the

    responsibility of organizations to conduct training programs and offer courses for teaching employees

    about the usage of new technology.

    4-Work life conflict:

    Work life conflict arises when employees at any organization tend to show negative attitude against

    any particular employee. This may be due to stereotypical nature or discriminatory attitude which can

    be against women or minorities. Such conflict results in blocking progress of that person.

    Organizations should take measures in resolving such kinds of conflicts by conducting mentoringprograms and different kind of activities.

    Example:

    WALMART:

    Wage And Hour Violations :

    Not only does the company have a history of methodically violating workers right to join a union, the

    Wal-Mart record on worker rights is a laundry list of abuse. Wal-Mart has racked up a striking

    number of wage and hour violations.

    Decreased health care coverage:

    Wal-Mart has decreased health care coverage to employees while touting its commitment to offering

    affordable care. Evidence suggests that Wal-Mart may have even adopted a strategy of eliminating long

    time workers and discouraging overweight or otherwise unhealthy workers from applyingboth as

    measures to reduce payroll and health care costs.

    Payment of low wages:

    Wal-Mart pays low wages and appears to aggressively seeks to keep wages down.

    Gender Discrimination

    The company faces the largest gender discrimination case in the history of this country.

    Discriminatory policies are as follows:

    1. Denied Training: Women had been denied training and promotion opportunities that are offeredto men.

    2. Under payment: women are underpaid in relation to men.

    According to Hoovers handbook of American business, in June 2001 a group of six current

    and former female Wal-Mart employees filed a sex discrimination lawsuit (seeking to represent up

    to 500,000 current and former Wal-Mart workers) against the company . The suit was filed becauseWal- Mart failed to provide equal employment for women.

  • 8/7/2019 hrm chapter

    7/13

    BUSINESS ETHICS

    Less Managerial positions to women:

    In fact, there are over 70 percent of women working at Wal-Mart, but only a small amount of those

    women are managers. So, men are holding more management positions than women.

    Less dignity and respect to women:

    Wal-Mart is the nation's largest employer of women, but unfortunately they are being treated

    without dignity and respect." (www.arkansasnews.com)

    Wal-Mart injury developed cancer - Wal-mart does not care *rebuttals

    In a unfortunate incident an employee was hurt and compensation was asked but was completely

    denied and the small wound was converted into cancer because she was poor and couldn't afford

    medical treatment. So in wall mart employees are not treated as a part of the family and business and

    have no values in the eyes of management and board as was reported by the ex-employee.

    HRM ethics is a root cause of many important problems in business ethics, and may represent the solution

    to even more

    Ethics in Performance Evaluation

    Performance evaluation lends itself to ethical issues. Assessment of an individuals

    performance is based on observation and judgment. HR manager are expected to observe the

    performance in order to judge its effectiveness. Ethics should be the cornerstone of

    performance evaluation, and the overall objective of high ethical performance reviews should

    to provide an honest assessment of the performance and mutually develops a plan to improve

    the ratees effectiveness

    Many HR professionals will be involved in regular performance evaluations of their co-

    workers. Because these appraisals are made for co-workers, the professional may be tempted

    to make their evaluations based not solely on the employee's performance, but on personal

    feelings about the employee as well. An HR professional may have a bias towards a friend in

    the office and a prejudice against an office rival.

    POST-HIRING PHASE

    Through the performance evaluation process, organizations measure the adequacy of their employees' jobperformances and communicate these evaluations to them. One aim of evaluation systems is to

    motivate employees to continue appropriate behaviors and correct inappropriate ones. Management

    also may use performance evaluation as tools for making HRM-related decisions, such as

    promotions, demotions, discharges, and pay raises

    Ethical Dilemmas in Performance Evaluation /Appraisal Revisited

    "Janus-headed" evaluation of inaccuracy in performance

    In managers' dynamic, real-world environments, they often feel it is necessary to exercise some creative

    discretion over employee ratings. Most managers do not describe their ratings of subordinates in

    performance appraisals as completely honest or accurate. The inaccuracy is often in the form of inflated

    ratings. They justify the inaccuracy by sighting, among other things, the need to avoid confrontation with

    subordinates, damaging working relationships, and creating permanent written documents which may

    later harm a subordinate's career. Many of these motives are not only well intentioned, but are designed toenhance individual, unit, and organizational performance (some of the ultimate objectives of performance

    appraisal systems.) This paper examines the ethics of this sort of deliberate manipulation of performance

    appraisal systems. It suggests that at the organizational level, performance appraisal is usually seen as an

    end in itself, and a formalist ethical critique is applied. At the managerial level, performance appraisal orevaluation is usually seen as a means to an end, and a utilitarian critique is applied. Since both

    perspectives are essential, we conclude that a Janus-Headed analysis is needed. We suggest some duties

    and obligations for both the organization and the manager engaged in performance appraisal.

  • 8/7/2019 hrm chapter

    8/13

  • 8/7/2019 hrm chapter

    9/13

    BUSINESS ETHICS

    Devel

    Ethics in layoff

    Discharging the unneeded workers temporarily but sometimes termination becomes permanent.

    Layoff is common for industries where goods are produced on seasonal basis. For example in

    construction, where building activity typically slows or stops in the winter months and resumes in

    spring.

    Layoffs also take place in times of economic down-turn because overall demand declines.Producers will cut back from three shifts to two or one or release some employees even when

    only operating one shift. It can be due to lack of resources needed; hence production goes down

    resulting in layoffs.

    In still other situations, layoffs are conducted to improve an already good situation. Such layoffs

    may come about in mergers or acquisitions. Here two companies become one, and frequently

    plants or offices are closed and their employees lay off to reduce duplication. These layoffs are

    also conducted to reduce labor costs, but the motivating factor (or at least the precipitating factor)

    is the merger or acquisition.

    Another circumstance in which layoffs are conducted to improve an already good situation

    involves outsourcing. The theory of core competency suggests that a company can perform best

    by identifying its core competency, concentrating its efforts and its employees on performingcore functions, and contracting with other companies to perform other functions. In practice, this

    can lead to layoffs if a company decides to stop performing certain functions and not to employ

    those people who formerly carried them out.

    Based on statistics collected by the U.S. Department of Labor (DOL), extended mass layoffs haveaffected on average 1.9 million employees in the period 1996 through 2008.

    Layoff examples in Pakistani context:

    Gas shortage in Punjab may cause big layoffs

    You all are well aware of energy crises in Pakistan. All Pakistan Textile Mills Association (APTMA)

    fears massive layoffs in case the textile industry in Punjab is refused gas availability. Prime Ministerissued instruction on December 23, 2010 not to subject at least the textile industry to gas load shedding

  • 8/7/2019 hrm chapter

    10/13

    BUSINESS ETHICS

    for more than two days a week even during severe winter months.

    The President of Pakistan declared 2011 as year of textiles on February 8, 2011. The SNGPL, he added,

    gave the first ''gift'' after this announcement by announcing a cut in gas supplies to five days a week.''How could we survive and execute export orders by working two days a week?''. Around million textile

    workers are fired in Punjab because closed mills are not able to pay their salaries. The decline in

    industrial activities is being experienced in other provinces as well but workers in Punjab suffer the more

    as most labor intensive industries are in Punjab. Over 80% of textile units are in Punjab. This industry is

    in deep trouble, over 40% of the knitwear and garment units have closed down while the spinning and

    weaving activities have gone down by 30%, rendering at least a million workers jobless. The textile

    sector accounts for 38% of the total industrial workforce in the country.

    The majority of car assemblers are located in Sindh while the auto vending industry is based in Punjab.

    The auto assemblers have a workforce of only 7,000 to 8,000. The auto vendors employ a workforce of

    over 250,000. After a decline in car sales, the number of workers removed by car assemblers has reached

    3,000 while the number of worker relieved from jobs by the auto vending industry is around 125,000.

    Similarly, Punjab is the hub of home appliances manufacturing whose sales are on the decline. There is a

    substantial decline in the production of television sets, washing machines, split air conditioners or

    microwave ovens. The decline in production was accompanied with reduction in workforce.

    Punjab accounts for 56% of the total population of Pakistan. Any decline in employment opportunities

    hits the people of Punjab more than other provinces because its industries are based on labor intensivejobs. The fear of job loss has created panic among all class of workers in the province.

    When is it ethical?

    Ethics is the branch of philosophy that deals with the morality of human decisions and actions, and

    business ethics deals with them in a business setting. One approach to determining the morality of a

    decision or action is utilitarianism, which holds that a moral decision or action is one that results in the

    greatest good for the greatest number of people. It is common to justify layoff on the basis thatterminating 500 people will save the company from bankruptcy and hence preserve the jobs of 2,500

    others.

    When is it unethical?

    Firing an employee without any notice when his performance is satisfactory or even exemplary

    Layoff is based on personal relations with employees.

    Random layoff, without considering potential of employee. John Dorfman, a Boston-based

    money manager, analyzed the post-layoff performance of a sampling of companies. The review

    included 11 to 34 months of data for the companies sample. His article Job Cuts Often Fail to

    Bolster Stocks reports an average performance gain by the companies that had announced job

    cuts at 0.4% while the performance for the S&P 500 during the comparable time period was a

    gain was 29.3%.

    Impact of layoffs:

    From the stock market's point of view, such a decision is usually a good thing - a company's stock

    price often rises on the day that a layoff decision is announced.

    From top management's point of view, such a decision can seem to be the best, or even the only

    one, available to solve serious problems that the top manager must address.

    From the point of view of the managers or supervisors assigned to deliver the news to individuals

    about to be terminated, the decision often produces sorrow or guilt, or both.

    From the point of view of the terminated employees, shock, disbelief, and anger are among the

    typical reactions.

    Alternative to layoff and ethical ways to handle layoff:

    http://www.afgen.com/layoffs3.htmlhttp://www.afgen.com/layoffs3.htmlhttp://www.afgen.com/layoffs3.htmlhttp://www.afgen.com/layoffs3.html
  • 8/7/2019 hrm chapter

    11/13

    BUSINESS ETHICS

    For ethical reasons, companies should avoid layoffs whenever possible by tightening the

    corporate belt in other ways. The community may be better served if everyone takes a pay cut or

    seize all benefits or a cutback in hours rather than having some people put out of work.

    One of the most effective and most immediate of these is restructuring. These often include

    things such as closing of obsolete plants or branches, administrative overhauls, selling of non-

    core operations, or improving internal processes.

    A company may lay off employees it considers the low end producers, but in doing so it creates a

    climate of personnel uncertainty. That uncertainty causes others to leave. The first people to leave

    due to uncertainty in the company are the best people, because they can always get another jobsomewhere else. The climate of uncertainty that follows a layoff, therefore, always guarantees a

    reduction in the quality of the staff, not just the quantity. In order to ensure innovative and stable

    environment, layoff system should be transparent.

    State clearly in contract that in case of any hard times to cut operating cost of organization layoffs

    can be the mechanism.

    Explain complete reason of layoff to the employee, not just straight away throw him out of job.

    Ethical guidelines:

    As we have seen ethics is involved in each and every corner of HRM. Thus here in the following section

    some guidelines have been provided to HR professional by which they would be able to handle it in much

    better ways.

    Ethical Leadership

    Human resource professional should exhibit individual leadership as a role model for maintaining the

    highest standard of ethical conduct. The intention behind ethical leadership is like

    To earn individual respect.

    To earn our credibility with those whom we serve.

    To set example and standard for others.Some guidelines have been developed for the HR managers which would help them to exhibit Ethical

    leadership

    1. be ethical and act ethically in every sphere of professional interaction.

    2. To check out individual and group actions regarding the ethical decisions are implemented in an ethical

    manner.

    3. To for expert opinion and guidance if any doubt about the ethicality of any situation.

    4. Generate more ethical leaders in organization by teaching and monitoring.

    Professional Responsibility

    In todays scenario the important responsibility of HR professional is to add value to the organization

    which they serve and contribute to the ethical success of the organization.

    The purposes and aims behind developing professional responsibility are

    To influence workplace and recruitment practices

    To assist the organizations in achieving their objectives and goals.

    To encourage professional decision making and responsibility.

    To build up credibility, respect and strategic importance for HR profession internal as well as external.

    Guidelines

    Some guidelines which make HR professional to discharge there professional responsibility

    1. Strive to achieve the highest levels of service, performance. and social responsibility.

    2. Achieve and maintain the highest standards of ethical and professional behavior.

    3. Practicing the appropriate use and appreciation of human beings as employees.

    4. Comply with the law.

    5. Consistency of work with the value of the profession should be maintained.

    6. To influence decision making and results, advocate open debate well within the established forums.

  • 8/7/2019 hrm chapter

    12/13

    BUSINESS ETHICS

    Fairness and Justice

    The care ethical responsibility of HR professional is to promote and faster fairness and justice for all

    employees and their organizations. The basic intention behind that is to create and sustain an environmentthat encourages all individuals and the organization to reach their fullest potential in a positive and

    productive manner.

    Guidelines

    1. Treat people with respect, dignity and compassion to develop an environment which would be free

    from harassment, intimidation and discrimination.

    2. Plan, develop, manage and advocate policies and procedure that foster fair consistent and equal

    treatment to all.

    3. The organizations decision legal and ethical irrespective of personal interests must be supported.

    4. Each individual has some uniqueness and intrinsic worth, so respect for it.

    5. An inclusive approach in the organization should be followed which ensure that each and every one in

    the organization has an opportunity to develop the skills

    6. If the organization deals in international businesses then sound management practices with full of

    responsibilities should be shown.

    Professional Development

    As professional development is a non-ending continuous process. The professionals must strive to meetthe highest standards of competence and commit to strong them the competencies. The basic purposes

    behind the development are (a) To broaden the understanding of how organization carry out the work.

    (b) To expand and advance the knowledge about HRM to better understand how the organization

    function.

    Guidelines

    Some guidelines for HR professionals for their professional development:

    1. Commitment for continuous learning and skill development.

    2. Try to pursue formal academic opportunities.

    3. Contribute to the evolution of the profession and the growth of individuals through research and

    development teaching.

    Conflicts of Interest

    The HR professionals must maintain a high level of trust with their stake holder. They should protect the

    professional integrity and the interest of all the stakeholders. They should not engage in the kind of

    activities which create potential conflict of interests. This principle has been developed with the intention

    to avoid conflicts which may appear with any of the provisions of this code of ethical and professional

    standards in HRM.

    Guidelines

    1. Make a list of priority obligations to identity conflicts of interest.2. Advocate the use of published policies on conflicts of interests within the organization.

    3. Never-ever indulge in giving or seeking preferential treatment in human resources.

    4. Using the power of the position for personal material or financial gain is unethical.

    Use of Information

    It is the basic duty of HR professionals to ensure that there is a flow of truthful communication and

    informed decision making in the organization where they serve. They should maximize the open

    exchange of information by this they would be able to build trust among all organizations constituents

    and it would reduce the worries about inaccurate and inappropriate information among the members of

    the organization.

    Guidelines

    1. Acquire and provide information through ethical and responsible means.

    2. Maintain up to date as well as accurate HR information.

    3. Proper investigation about the accuracy and source of information before it is to be used in decisions.4. Take care and safeguard measures for restricted or confidential information.

    5. Take proper steps to ensure the accuracy and competence of all communicated information about HRPolicies.

  • 8/7/2019 hrm chapter

    13/13

    BUSINESS ETHICS

    6. Take proper steps to make it sure that the above information is used in HR related training.

    Conclusion:

    A man without ethics is a wild beast loosed upon this world. Now we have seen importance of Ethics in

    all phases of HRM. The strength of any business is heavily reliant on the quality of its human resource.

    Also, how employees are treated will largely determine the extent to which they will perform. The HR

    professionals must therefore manage employees ethical conduct, in order to construct an organizational

    climate and culture to support and encourage ethical behavior.