Unethical practices by a few have given HR firms a bad nam

Human resource management (HRM) has been gaining importance in organizations amid growing competition in the domestic market. However, matching the right candidate with the right workplace is still a challenge. There are more than 15 companies to help employing organizations find the appropriate personnel. The Post talked with Shailendra Raj Giri, managing director of Real Solutions, and Mohan Ojha, chairman of Growth Sellers Consultancy, regarding the HRM culture in the country. Excerpts: Please explain the scenario of HRM in the country. Shailendra Raj Giri: Despite HRM’s importance for the success of any organization, in Nepal, it has been overlooked in the past. However, with the growth of competition in the market, organizations are gradually considering HRM aspects with much importance. But professional service in this sector is still at an infant stage. Mohan Ojha: The trend of regarding HRM with importance is growing in the country, though it had been overlooked in the past. In recent days, both new and established organizations are giving equal priority to professionalism in their services. Being an HR consultancy firm, what can organizations and jobseekers expect from you? Shailendra Raj Giri and Mohan Ojha: We are an outsourcing firm which handles recruitment on behalf of our clients. If necessary and we receive a request from our clients to train their recruits, we provide the necessary training too. So far, we have set up proper HR systems and manuals in a few organizations. We have been providing training and skill developing programmes to both our clients’ employees and individuals. Besides that, we have a customized package for individuals to enhance their competencies. Shailendra Raj Giri: Besides that, we have been providing a platform for individuals to find jobs free of cost via our website merojob.com, which works as a databank from which individuals and firms can choose the right job and the right candidates to meet their respective requirements. Moreover, we are trying to remove the deep-rooted and unfair system of recruiting employees in our country based on nepotism and place the right person in the right job at the right time.

some specific sectors in the country had to face a scarcity of . we have provided employment to more than 2. we have bridged the gap in a few organizations. In your endeavour to promote HRM concepts in Nepal. Meanwhile. Through our customized packages. As a result. As a result.000 individuals in more than 153 different firms. INGOs and NGOs to trading companies and industries. Due to lack of a controlling and monitoring mechanism in the country. how many individuals and firms have benefited from your firm’s services? Shailendra Raj Giri: In our eight years of experience.Mohan Ojha: As part of our initiative to increase awareness and to provide a common platform to discuss HRM aspects in the country. Mohan Ojha: Due to the political uncertainty in the country. something must be done from the government’s side. Hence. lack of proper computer skills and IT related problems prevail in the established organizations where most of the employees are of advanced age. the trust and professionalism we have been providing are on the verge of collapse. Mohan Ojha: Since our inception in 2008.000 individuals in more than 2. a number of HR firms have been established in Nepal. we have been organizing an annual event titled HR Meet which is being attended by executives from the business sector. we are losing a large number of potential manpower each day. What are the major problems for HR consultancy firms in Nepal? Shailendra Raj Giri: Though the sector is new and at an infant stage. What kinds of challenges and hassles have you found during your work with the organizations? Shailendra Raj Giri: We have found that there is a communication gap between higher level executives and lower level employees in most organizations. Besides that. such firms are openly carrying out their business. we have found jobs for more than 40. a majority of our client firms are banks and financial institutions. unfair and unethical practices conducted by a few firms have given HR consultancies a bad name.500 firms ranging from banks and financial institutions. However.

How is business for HR consultancy firms? What are their future prospects? Shailendra Raj Giri and Mohan Ojha: Although we had to struggle to introduce the concept of HRM in the market in the beginning. we cannot do anything in this regard. < inconsistent disciplinary measures.manpower. lying to supervisors. Increasing work stress. < training and promotion. < sex discrimination in promotion. The unethical practice of HRM itself has also hit public attention: • • • • • • Off-shoring and exploiting ‘cheap’ labour markets. Using child labour. Longer working hours. accepting kickbacks or bribes. employees receiving gifts or entertainment in violation of the organisation’s policies. lying on reports or falsifying work records. and < non performance factors used in appraisals. employees engaging in fraud. we are satisfied with the present situation in terms of business. Being an emerging sector in the country. abusing drugs or alcohol. . favouritism in hiring. < sexual harassment. Reneging on company pension agreements. and pay. < not maintaining confidentiality. conflicts of interest. The use of disputed and dubious practices in hiring and firing personnel. we see lot of potential. Until and unless the political situation improves.

personable. the integrity of her character would be brought into question in an alarming way. Mamie was obviously perturbed by the customer's needs because she found it extremely inconvenient to walk to the back storage room to retrieve the specific kind of bread the customer requested.org/free_files/Pages%20from%20Chapter%202%20Ethics %20and%20Human%20Resource%20Managementced48f14eea2a5b20df2e2c60376c3a1. but the co-worker that would leave the biggest impression on him was Ms. the story is real and disturbing. Although the names in this story are false. She proceeded to the nearest trashcan. who had been working in the bakery department for two years. http://www. of 81 years. One evening. altering the results of product tests. They would occasionally share shifts and engage in casual conversation at work. and engaging with the customers and knew intimate details of their lives. and personal ambitions can have the potential to affect many. Ms.download-it.pdf Dealing with unethical behavior on the job Dealing with unethical behavior on the job How do you measure ethics on the job? How far would you go to succeed and reach your personal goals? What would you sacrifice without hesitation? The following is a personal account of how one person's greed. was anxious to earn some extra cash before attending a prestigious arts school. behind the scenes. . In less than a week. picked out a piece of bread. Michael.stealing. Ms. She was very approachable. He worked in a team that consisted of employees with rotating shifts. a young up-and-coming artist. Mamie. Mamie was a sweet old lady. negligence. and served the sandwich as usual. a customer enters the bakery department eager to be severed a good sub sandwich. He decided to serve as a Deli Clerk in the bakery department for a well known grocery store that is a part of a national chain. misusing insider information.

2) Address the issue assertively. Michael confronted Ms. Soon thereafter. sell. Ms. Mamie was well acquainted with wanted to purchase some meat. Mamie never received a bonus. One day. He confronted her in a passive manner while she remained apathetic. a 91. and business carried on as usual. she proceeded to wrap the meat and serve it to the customer as usual. Michael was aware of the chaos of the incident and witnessed her being reprimanded for her actions. Ms. Mamie inventoried the meat selection and located what the customer requested and tested the quality of the meat with her sense of smell. He did not allow intimidation to prevent him from coming forward. At this point the tension began to build in Michael and Mamie's working relationship. Ms. Instead of being patient and waiting to use the next available meat cutter. You may ask yourself in the case of Ms. .Luckily for the oblivious customer. "Productivity up. Ms. Mamie about her unethical behavior. there were two meat cutters available and both were in use. The department was subject to inspection from time to time and it received a sanitation rating of 71. was taken aback. Also. a customer with whom Ms. sell. Ms. Mamie was so driven by greed to the point where she would rather sell soiled bread. however. he changed his mind about the sandwich. Mamie made a vain attempt to wipe off any residue and began cutting thick slabs of meat without properly cleansing and sanitizing the equipment upon contamination. While the team supervisor was preparing meat on one of the electric meat cutters. and blood contaminants than face the possibility of losing the prospect of a sale. Michael. The injury was so substantial that the bone was visible and the supervisor was rushed to the hospital. management's refusal to act on unethical circumstances and even encouraging certain behaviors also reflects corruption. rotten meat. waste percentage down" with the promise of bonuses to those who sell. Steer clear of businesses that are focused on increasing profits without regard of the customer or client's wellbeing and the quality of the goods and services being provided. Suggestions for dealing with unethical behavior on the job: 1) Avoid unethical management. he cut off the tip of his finger.what was the motive? What could she have gained from her actions? Michael stated that once in a while management would encourage sales in the meat department by saying. Mamie insisted on taking matters into her own hands by replacing the new rating with the old one. The quality of the management tends to reflect the quality of workers that are being hired. After concluding that the meat was rotten. Mamie .

meaning character) – and ‘morality’ to acts and behaviour (moral comes from the Latin moralis. HR claims to have done it all to remove the figurative “thorn in the flesh” at the workplace.3) Inform a Supervisor. 1989. personable. If the behavior continues and management does not act accordingly. smiling. concerned with analysing what is right or wrong in people’s behaviour or conduct. For example. no one is exempt from the possibility. baker had no reservations about jeopardizing the quality of service and the health of others for personal gain. warm. Ethical problems arise almost continually in human resource management (Hosmer 1987: 313). a survey of 747 human resource professionals by the Society for Human Resource Management (1998) found that 54% of the human resource professionals had observed conduct in the workplace that violated the law or the ethical standards of the professional’s organisation. Unethical behavior can result in legal issues if it continues to go unaddressed and is discovered. Also. Ethics is a key branch of philosophy. it is best to find another job. The term ‘ethics’ is usually applied to persons (ethics comes from the Greek ethos. Hanson. Also state that you have spoken to this individual about their behavior and they are not yielding. by following media coverage of many scandals of accounting and accountability. The management of human resources can generate some of the most challenging ethical dilemmas in business. the elderly. Ethics and morality are terms that are often used interchangeably in discussions of good and evil.Ethics the missing piece in HR WHEN FINALISING YOUR HR STRATEGY. DON’T NEGLECT TO ADDRESS THE MATTER OF ETHICS. Feature . The missing link however is ethics in human resource practices. 2007:5) THE DISCERNING PUBLIC DEMANDS ETHICS FROM HR Budd & Scoville (2005) maintain that in recent years. you will be guilty by association. In this case. but to simply expose the realities of the working world. the public has gained a greater understanding of what can happen when business do not adhere to ethical practices. 1985 cited in Schumann (2001:94) argue that the perceived lack of ethics in business is a subject of considerable concern to the public. You do not want to be apart of an environment that does not reflect your character and integrity. It is now time for the human resources and industrial relations communities to explore the application of ethics to the . 4) Change jobs. Speak with a supervisor and explain the situation. When it comes to greed. meaning customs or manners) (Rose. My intent is not to make you ill or paranoid. if you stay and are aware of the corruption. Bird & Waters.

Tyco. accepting kickbacks or bribes. and outright grid. not just numbers. The shop foreman in one of our divisions is disregarding quality standards in an effort to keep costs under control. and misusing insider information. WorldCom and to “be popular symbols of wilful corporate fraud and corruption”. Schumann (2001:94). During the 2010 World Cup in South Africa some public departments and state-owned-enterprises bought with millions of rands . raised the following examples: < Should management hide from employees the dangerous nature of chemicals used in a production? < Should a corporation shut down a plant. conflicts of interest. stealing.employment relationship and discover the importance of treating employees. lying to supervisors. Ethical problems cause some hurt or harm to others that is undeserved. that makes these adverse consequences of our managerial decisions and actions so disturbing to most of us (Hosmer 1987: 314). Also Satyam in India failed as a result of ethical issues. and Hyundai Motor Distributors. Moberg and Romar (2007) confirm that 2002 saw an unprecedented number of corporate scandals: Enron. Lack of ethics caused organisations such as Enron Corp. Many South African companies have been fined huge sums of money because of price fixing and involvement in uncompetitive acts. In South Africa we witnessed the total collapse of SAMBOU. altering the results of product tests. What should a young trainee do? The chief engineer in another division has falsified some test results to make a product appear more reliable than it is. abusing drugs or alcohol. and motivation – have some ethical content DISTINGUISHING FACTOR What distinguishes ethical problems from other managerial issues? Ethical problems have a negative impact upon people in ways that are outside their own control. the lack of individual control. and relocate to another location offering lower pay and fewer governmental regulations? and < At what point does an organisation’s attempt to fight theft by employees begin to infringe on the privacy rights of the employees? What moral obligations do managers have to deal with discrimination in employment. Global Crossing in USA due to failed corporate governance. OBSERVED UNETHICAL CONDUCT Schumann (2001:94). accounting abuses. properly. fire all the employees. It is the undeserved nature. training. Hosmer (1987: 314) concluded that all of the basic human resource processes: selection. employees engaging in fraud. including sexual harassment? Hosmer (1987: 314) further poses certain questions about unethical conduct. the survey respondents reported observing misconduct that included: employees receiving gifts or entertainment in violation of the organisation’s policies. In illustrating the range of issues that raise human resource management ethical issues. evaluation. HR deals with the practical consequences of human behaviour (Johnson 2003). what should a recent graduate of an engineering school do? All HR practices have an ethical foundation. lying on reports or falsifying work records. ETHICS INFLUENCE STRATEGIC ORGANISATIONAL SUCCESS Thompson and Strickland (1995:299) argue that a strong corporate culture founded on ethical principles and sound values is a vital driving force behind continued strategic success.

so the views of its investors will affect its share price. UNETHICAL PRACTICES IN HR Rose (2007). for business needs. SCOPA. Similarly.World Cup tickets for their customers and employees and the government organ. and < Deregulation – freedom of the marketplace has been imposed by global regulators such as the WTO. and < The use of disputed and dubious practices in hiring and firing of personnel. < inconsistent disciplinary measures. and pay. it has been suggested that poor standards of conduct emanating from the top management affect employee motivation and commitment to organisational goals. These include: < Increased job insecurity – arising from ‘flexible work practices. < Increase in surveillance and control – this ranges from the use of psychometric tests to electronic surveillance of work patterns through the application of ICT. < Longer working hours.. Covey in the Seven Habits of Highly . increased stress. < sex discrimination in promotion. < training and promotion. ETHICAL CONCERNS IN HR Winstanley and Woodall (1996). and < non performance factors used in appraisals. < Increasing work stress. < Reneging on company pension agreements. ETHICS CAN AFFECT EMPLOYEE MOTIVATION Schramm (2004) it has been shown that just consumers’ perception of the ethics of a company can affect sales. argues that the unethical practice of HRM has hit public attention and the following are examples: < Using child labour. With such unpalatable examples of gross disregard for ethics many people may be justified to believe we are suffering from an ethics crisis. and a wielding imbalance of power between management and workforce. fear of job loss due to outsourcing and off-shoring.000 US personnel managers (Danley et al. highlight a number of ethical concerns about standards of HR practice. short term and temporary conditions of employment. A survey of over 1. Ethical conduct in business practice and HR procedures is no longer a choice but a must in order to ensure sustainability and a motivated workforce. < sexual harassment. It is argued that by Winstanley and Woodall (2000) that HRM holds the moral ‘stewardship’ of organisations. and has led to what Storey (1993) has termed: ‘impatience with rule’ and ‘can – dooutlook’ amongst line managers. arising from strategic focus. 1991) found that the most common areas causing ethical concern were: < favouritism in hiring. found it difficult to justify such spending. which in practice may be seen to push HR into compromising ‘good’ practice. < not maintaining confidentiality.

HRM academics as well as practitioners have to develop a professional “ethical sensitivity”. almost 40% of the THB158. • r_ghadi@rediffmail. Expectations of what work/life balance would be like were completely exaggerated.2008) Pros Pay was decent for the market however the way mgmt. Cons Mgmt. There are conversations that occur that if HR knew were happening would fire them on the spot. treated anyone that they weren't related to was very unethical. BMI believes improved regulations and better education would control state expenditure on pharmaceuticals.78bn) state healthcare budget was spent on medicines.effective people. Secondly. treated anyone that they weren't related to was very unethical. IMS Health.com Drugmakers Criticised For Unethical Marketing Practices Thailand's public sector pharmaceutical spending is inflated by drugmakers' aggressive marketing tactics. Mgmt. Robust Growth AheadThailand's Pharmaceutical Marketf = forecast. alludes to an incident in an organisation where employees were demoralised as a result of a married manager who had an affair with a subordinate in the same organisation. ethical reasoning must become an integral part of theoretical and practical HRM (Winstanely and Woodall 2000 & 2001). needs ethics training to determine what they can and cannot say to employees. According to Koster (2007) there are two fundamental demands on HRM which are emphasised: First. BMI . TPI – “Very unethical practices outside of HR” 0 of 0 people found this helpful TPI IT Contracts Manager: (Past Employee . Last year. Advice to Senior Management Sr. Source: Association of the European Self-Medication Industry (AESGP).6bn (US$4. Expectations of what work/life balance would be like were completely exaggerated. according to research presented at a recent forum.

47% of GDP. Under the populist programme rolled out in 2001. the market will post a 10-year CAGR of 7. The corresponding figure for 1995 was 47.90) to receive medical treatment. it is well above the global average for this year. However. Due to the strengthening baht. Some sales representatives even wear 'inappropriate outfits' to boost interest.com/company-activities-management/sales-sellingsales/13709723-1. Thailand's pharmaceutical market is expected to grow by 7. Despite its critics.3% of healthcare spending in Thailand during 2007. Annual per-capita spending is US$58. the scheme survived the 2006 coup and continues to provide healthcare to many millions of people that would otherwise be unable to pay. the public sector accounted for 66.66% CAGR for pharmaceutical sales through to 2019.Sales representatives from pharmaceutical companies use several tactics to persuade doctors to prescribe their medicines. which have the resources and expertise to engage in intensive marketing campaigns. Manu Sawang-Jaeng of the Pharmaceutical Research and Manufacturing Association (PReMA). or 54% of the total market. Although this is below the 2004-08 compound annual growth rate (CAGR) of 12. http://www.0%. An industry representative.4mn population.7% in 2009. according to Dr Prasert Palittapongarnpim of Chiang Rai's Prachanukroh Hospital. According to the World Health Organization (WHO). public sector spending on pharmaceuticals reached US$1.80% in US dollar terms. people could pay a nominal fee of THB30 (US$0.91bn. In 2008.60 and the drug market accounts for 1. He also said that sales representatives from non-PReMA companies were to blame.allbusiness. Almost 50% was spent by doctors treating the country's 5mn civil servants. They range from giving branded stationery and hosting lunches to offering overseas holidays and cash bribes. is aware of the problem and revealed that uniforms for sales representatives had been suggested.4%. The result is greater sales of patented medicines made by foreign multinationals. while the remainder was expended by the '30 baht' scheme introduced by former prime minister Thaksin Shinawatra.html . We are forecasting a 5. these funds were not equally distributed among Thailand's 63.

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