HRM AT CROSSROADS

Koushik Sarkar (0334/55)

Omkar Kumbhar (0335/55)
Lakshit Bansal (0336/55)
Mahanthi Naveen (0337/55)
Manideepa Rana (0338/55)
Tanishq Mehra (0339/55)
Monica Rawat (0340/55)
Ronit Nadar (0341/55)
Naveen Reddy (0342/55)
Nikhil Nirhali (0343/55)
How strong was Bharat Dubey’s Ethical Stamina -Tanishq

Ethical Stamina is the existence of a set of governing moral values, and the existence of the
strength within an individual to adhere to this set in all situations

At first he followed the code of conduct, but soon gave in to unethical practices

He used a Utilitarian approach to solving his problem, which is not always ethical ( e.g. Cylinder
division conflict)

Moved from taking unethical decisions while problem solving to unethical practices for personal
benefit ( e.g. Tome Hydraulics' foreign inspection)
Is Ethics at home different from Ethics at work? -Tanishq

By definition, Ethics should not be relative to the situation ( Although in reality the same may
not apply)

There is a problem of misplaced loyalty ( e.g. Bharat in college vs at work)

Success at work is more tangible, hence shortcuts seem more lucrative

Another surprising fact is that formal policies against unethical behaviour exist in the workplace
and not at home, and yet a majority of the times ethical lapses take place at work
How effective was Business Ethics in Tome Hydraulics?
-Manideepa

A large part of the administration was using unethical means to make money by doing undue favours
to the Union while compromising the gain of the organization.

The divisional managers not only broke the rules by leaking confidential official data but also
encouraged new comers to do the same.

The higher management was more concerned about their own benefit than the greater good of the
organization.
Can Bharat Dubey be an effective CEO? -Monica

At the very core, Bharat Dubey has a hard time making up his mind on a moral code to follow
(easily influenced)

He lacks a sense of integrity

His actions directly or indirectly led to December 1991 strike ( negligence towards Ethic of care)

CEO needs to look beyond his personal benefit and focus on the company, and Bharat failed to
do so on multiple occasions
Can Bharat Dubey be an effective CEO? -Monica

Defining an effective CEO in terms of Business Ethics

◦ Being Fair and Just: An ethical CEO must refrain from favouritism or being partial towards any individual,
be it their own self

◦ Leading by example: Due to the heightened sense of visibility this post offers, a CEO needs to walk the
talk

◦ Adherence to the Code of conduct: It is imperative that the CEO upholds the company’s values and code
of conduct at all times

◦ Balance between the wellbeing of the subordinates and the wider community, and the organisation’s
profitability
Options for Tome Hydraulics -Naveen Mahanthi

Alternatives possible
1. DM of machine division
2. Roshan Dastur
3. Ranjith Rajvansh
DM of machine division:
He should be ruled out in the first place because its given that he is well known for contradictory
and opportunistic behavior. But ideally a CEO should maintain integrity in the company and
should possess healthy relationships with his subordinates rather looking out for his personal
interests.
 Options for Tome Hydraulics -Naveen Mahanthi

2. Roshan Dastur
Although its mentioned that she has maintained good relationships with the unions. That rapport
with the union was built by leaking confidentiality reports with the unions. So she should be ruled
out.

3. Ranjith Rajvansh
He openly stated that if a union leader complained against any officer with enough evidence, the
officer would be sacked. This shows his authoritativeness and a concern for the union who are
ultimately responsible for production of the company. Apart from this, not much has been mentioned
about his relations with different stakeholders in the company. But he is the only option left for
consideration for the CEO position with the given data.
What, if any, are the inter-relationships between
ethics and strategy? - Omkar

•Ethics are moral principles and values that govern a person's behavior when performing a
particular activity.
•Business ethics is the set of principles that influence the actions of an individual in a business
context. It has two dimensions-
1. Objective : Rules, SOPs, laws, regulations etc.
2. Subjective : Depends on the person taking action.
• Strategy is the master plan used by the top management in an organization to achieve specific
goals.
• It is decision making process through a birds-eye view of all the operations and divisions as seen
by the top management.
•Business strategy of the organization lays down the direction for lower level tactical and
operational decisions.
•Tome Hydraulics :
•Corporate strategy:
•Very rigid; individual initiative encouraged only if it was inline with corporate culture.
•Golden rule – ‘Do not show a personal file to any employee’.
•Individual subjectivity often overrode objective policies.
•Initially, Bharat tried to stick to the policy and was eventually transferred.
• Opportunistic behaviour from Divisional manager initially and later by Roshan Dastur influenced Bharat’s
actions.
•Even the GM Ranjit Rajvansh, made it evident that his focus was solely on productivity.
•This encouraged Bharat to indulge in several unethical practices later on(Staged the plant crisis by to get
promoted).
•As evident from the case, similar to business strategy, ethics percolate top down in an organization.
•In the case of Tome Hydraulics, if the top management had complied with the corporate strategy initially,
new comers like Bharat would definitely have been encouraged to behave ethically.
•Therefore, if interwoven with the corporate strategy ethics can get implemented across the organization.
What ethical orientations do CEOs need? - Naveen Reddy
Ethical challenges for executives and ways to approach • Social or personal values & Morality based values
them • Real task of leadership is to create a social structure
• Integrity of shared values.
• Perception • Ethical orientation of CEO in terms of traits &
• Accountability behaviour is key factor in promoting ethical
• Setting the example behaviour in organization.
• Make it official
• Responsibility for all
• Failure to align ethics and values to business strategies What ethical orientations & how?
and operating plans can potentially bear heavy costs • Walk the talk
• Remember the water cooler
• It is what you bring with you & happens on the edges in • Keep an ear to the ground
times of stress • Reward for principled performance
• Believe in the ethical principles in your core, and you • Build an ethical corporate ladder
have to exemplify them

Variances among individuals regarding their willingness and In our case:

ability to learn - CEO must be prepared to be ruthless in Ranjit Rajvansh
addressing deviation from the organization's values and Bharat
norms of behavior.
Young graduate

• You lead it, you live it, and people watch

What is your counsel to the new recruit from XLRI? -Lakshit
Maintain your individuality
Bharat Dubey was regarded as an intellectual by his peers. He was fond of reading and he was never shy of bringing
out his opinion. Despite his straightforward nature, he was considered affable by his peers. This is what makes him
different from the rest and he should continue bringing out his individuality as he used to do in college.
Never compromise on morals and values
Bharat learnt the values of trust and integrity at XLRI. He also had a mentor who taught him the notion of
“inculturation” while simultaneously urging to retain one’s individuality. However after reading other philosophies,
he developed ideas that one should work for the interest of organization even if it means that one has to kill his
conscience. Bharat is wrong in his thinking and he should never compromise on his values, because in the long run,
values determine an individual’s success and relationships.
Be honest and straightforward
When you enter a new organization, everyone around tends to judge you. Therefore, its important that you make
the right impression. Try to be honest with your seniors as well as juniors and clearly define what you want to
achieve.
Talk to people and maintain rapport
Familiarize yourself with other people in the organization, because you might need them at different junctures.
Develop intimate relationships with them, so that you can count on them in tough times.
What view should Tome’s international HQ
take? -Ronit

 Change the entire leadership at the Adityapur plant to regain the lost credibility
 Deploy a leader, from the HQ to head the turnaround of the personnel division
 Empower the new leader to evaluate and update policies and processes and provide feedback
to the headquarters
 Implement new whistle blower protection policies and strongly support its execution
 Create a position for chief ethics and compliance officer
Is ethics rewarding for the individual or for
the corporation? -Nikhil

Ethics are important not only in business but in all aspects of life because it is an essential part of the
foundation on which of a civilized society is build. A business or society that lacks ethical principles is
bound to fail sooner or later
Individual Ethics: These are values that guide individual in performing her job that isn’t spelled out in
the contract or job description.
Corporate Ethics: This is also known as “corporate social responsibility” which refer to a business’s
need to treat all of its stakeholders fairly. Corporate ethics seek to balance making a profit without
shortchanging or harming anyone.
It is rewarding for both
Individual: Maintains respect in the organization, maintains self esteem, gets respect in the family and
friends, doesn’t get into legal troubles
Corporations: Reduces chances of legal hassle, increases reputation among peers and clients,
increases brand that may increase profitability