Presented by: CHANISHA Roll no.

5926

Ethics refers to well-founded standards of right and wrong that prescribe what humans ought to do, usually in terms of rights, obligations, benefits to society, fairness, or specific virtues.

Being ethical should not be equated with: Following one s feelings Religion Following the law Doing whatever society accepts

Human resource management (HRM) is the strategic and coherent approach to the management of an organization s most valued assets - the people working there who individually and collectively contributes to the achievement of the objectives of the business.

All HR practices

have an ethical foundation. HR deals with the practical consequences of human behavior. HRM Ethics is the affirmative moral obligations of the employer (business) towards the employees to maintain equality and equity justice

Hard HRM: where employees are viewed instrumentally as a means to achieve organizational goals

Soft HRM: where employees are viewed as a subject-in-themselves. Soft HRM promotes employee rights, empowerment, involvement, participation, etc

ETHICAL APPROACHES
Relativism and absolutism; Consequentialist approaches (e.g. utilitarianism); Non - consequentialist approaches (deontological or duty ethics); The ethics of human rights; Virtue ethics; The stakeholder approach.

Cultural relativism
The issue of relativism holds the idea that morality varies with culture, time and circumstances. The opposite position is that of absolutism, the notion that there are universal truths in morality that apply at all times and in all circumstances.

Consequentialist approaches (utilitarianism)

Its main premise suggests that the morality of an act is determined by its consequences: people should do that which will bring the greatest utility to the greatest number affected by a given situation.

CONTD

 Non-consequentialist approach
This approach is sometimes referred to as duty ethics. The defining characteristics of this approach are the universal applicability of principles to all humanity, and basic respect for humans. A key notion for this approach was that of intentionality. It might well be that the outcome of an act leads to very bad consequences for people.

Human rights
In this view, there is recognition of a core set of human rights. Where a human right exists, there must also be a duty or responsibility to recognize, support and acknowledge that right. An appreciation of the fair and equal treatment of all people, enshrined in the recognition of basic human rights is important to morality.

Contd.

 Virtue ethics
It suggests that neither good intentions nor outcomes, codes and the recognition of basic rights will necessarily ensure goodness. In the final analysis, the effectiveness of an ethical system depends on the nature of the people who employ it.

The Stakeholder Approach

Stakeholder analysis sees morality as evolving within a community of equals, where rights and needs are recognized as residing within all individuals and groups that partake in business life. Employees, customers, suppliers and the wider community should all be considered when decisions are made, and they should be consulted accordingly. companies that follow a stakeholder approach are actually more profitable.

CSR can be defined as, all the ways in which a company relates to society from purchasing to product disposal, from human resources to human rights. Current CSR policies include an attempt to involve employees in voluntary community work.

AREAS OF HRM ETHICS

Basic human rights, civil and employment rights. Ex: Job security, feedback from tests, openness and consultation over matters which affect the employees Social and organizational justice. Ex: procedural justice, egalitarianism, equity and equal opportunity (Egalitarianism (derived from the French word gal, meaning equal) is a political doctrine that holds that all people should be treated as equals and have the same political, economic, social, and civil rights) Equity/Distributive justice - (Proportionate pay for proportionate contribution), autonomy and respect Safety in the workplace Respect, fairness and honesty based process in the workplace Privacy

Ethical dilemma is a complex situation that will often involve an apparent mental conflict between moral imperatives, in which to obey one would result in transgressing another. This is also called an ethical paradox.

The four main types of human resource issues are as follows:

HIRING AND TERMINATION ISSUES DISCRIMINATION PERFORMANCE APPRAISAL DISCIPLINARY ISSUES

 Consistency and objectivity during the recruitment process are very important. Criteria used for evaluating candidates should be stated and explained to order to avoid unnecessary claim of biasness in the recruitment process. Objective evaluation results in the best employees being recruited while consistency ensures high morale among employees. When an employee is asked to leave, it is also of vital importance that it is handled with fairness and care. If it is a case of poor performance or disciplines, the employee has to be given prior warning (unless it is violation of a well stated policy or is of a very serious nature) and fair hearing. In any case, do not hurt the dignity of the employee and offer to provide the necessary assistance where appropriate. Before an employee leave for any reason, provide him/her with an opportunity to provide feedback on the overall state of the organization by conducting exit interviews.

 Discrimination can be on the basis of one or more uncontrollable characteristics, including race, gender, age, color, religion, or national origin, as well as handicapped or pregnancy status. Discrimination against others in the workplace can impair the ability to perform our job according to company expectations.

While evaluating subordinates, one has to remain consistent and objective. It is unethical to base salary adjustments upon performance problems that have not been brought to the employees attention. For employees being evaluated, honesty and acceptance of responsibility for performance problems are important ethical considerations.

 Disciplining employees both ensures productivity and sets standards for the future. Discipline should occur immediately after a problem has occurred. It is imperative that the disciplinary actions remain consistent for all employees. A serious disciplinary issue is sexual harassment where female employees (less so for male employees) are subjected to an unwanted sexual behavior that creates hostile work environment. This conduct is not only unethical, but illegal as well.

EMPLOYEES RIGHTS AND DUTIES

RIGHTS To work For just compensation To free association and strike For privacy For freedom of speech To due process For participation For safe and healthy working conditions To job satisfaction DUTIES Loyalty to the firm Respect for current legal and moral norms Respect the rights of the employer Just contribution to the organization Maintain secrecy/confidentiality Cooperation with boss/subordinates

EMPLOYERS RIGHTS AND DUTIES

RIGHTS DUTIES

Demand minimal productivity from No discrimination in rules for employees recruitment and conditions for firing Loyal cooperation from employees Requirement of correct behavior at the work place No disruption in work Peaceful ways of settlement Fair compensation Work oriented code of conduct Acceptance of criticism from workers Acceptance of labor court jurisprudence in conflicts Improving QWL

Examples of ethical misconduct in HR activities

IMPACT OF UNETHICAL PRACTICES

perception of the ethics of a company can affect sales.
 Due to this its share price will be affected.
 Consumers

 Poor

standards of conduct emanating from the top management affect employee motivation and commitment to organizational goals.

ETHICS AND HR MANAGEMENT

Firms with High Ethical Standards Are more likely to reach strategic goals. Are viewed more positively by stakeholders. Are better able to attract and retain human resources. Ethics and Global Differences Different legal, political, and cultural factors in other countries can lead to ethical conflicts for global managers. Foreign Corrupt Practices Act (FCPA) Prohibits U.S. firms from engaging in bribery and other practices in other countries.

It is the human resource professional, who has, resting on his shoulders the role of ethics guardian and monitor for todays enterprise. And it is a

responsibility that one can succeed only with a grasp and clarity of his/her worldview, a focus on ones beliefs, and an understanding of the role Human Resources plays in todays business issues and ethics.

Ethics

sometimes

fall

by

the

wayside

when

organizations do not have a solid value-based culture starting from the top and working its way down. When this occurs, it is typically HR that is called to get involved.