Human Resource Management

STUDENT NAME Student ID University Name

October 14

2011
An Essay

HUMAN RESOURCE MANAGEMENT Contents

Introduction ............................................................................................................... 3 Human Resource Management .................................................................................. 3 Role of HRM in Management ..................................................................................... 4 Goals and functions of HRM ....................................................................................... 5 Definition of Ethics ..................................................................................................... 6 Importance of ethics in business ................................................................................ 6 Importance of ethics from HRM's perspective ............................................................ 7 Contrast between HRM and Ethics ............................................................................. 8 Usefulness of both these theories and disadvantages ................................................ 9 Practical implications of ethics for HRM ..................................................................... 9 Impact of Ethics and HRM on business environment ................................................ 10 Conclusion and recommendation .............................................................................10 References ............................................................................................................... 11

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Introduction
Human resource management is a very important topic in business. It deals with the employee management and therefore it is a function of the management. Every firm in today s world has its own HR department which deals with the HR related issues and formulates HR policies. Basically HRM is more concerned with the objectives of the firm and shareholders who actually appoint them to perform organizational activities. Ethics on the other hand deals with the well being of the employees as well as the society which provides the environment for a business. Ethics tells that every employee in a firm should be treated equally and be provided a satisfactory work environment and benefits so that their well being is ensured. But HRM mostly tries to reduce cost of firm and optimize the use of human capital by unfair means. For this reason HRM is unethical from the point of view of ethics. Kantian theory of ethics suggests that HRM is unethical because it uses human capital of a firm like a machine and does not ensure well being of them as well as the society. This essay critically analyzed the topic of unethical practices in HRM and established arguments why HRM is unethical from ethical perspective from theory of ethics by Kant. The essay started by discussing HRM s role, function and its importance. Later theory of ethics and its importance and implication in management is critically analyzed. Conception of ethics and HRM are contrasted then and arguments are established to show that HRM is unethical from the Kantian ethics perspective.

Human Resource Management

HRM is probably one of the most crucial issues in the world of business and management. Human are the most vital parts of management who formulate and implement the goals of management in a firm. So, proper management of human being is very important for management of the firm to become successful. In today s world well being of a person working in an organization is ensured by HR of that firm (Kerr & Glinow 1997). Therefore HRM is the concern of the HRD of a firm. Success of Page 3 of 12

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a management entirely depends upon the well managed HRM policy of that management. Theoretically HRM may be defined as the policies and practices in carrying out the people or human resource aspects of a management position, including recruiting, screening, training, rewarding and appraising (Dessler 2009). Alternatively it can be said that HRM helps a firm to create human capital, which are the most valuable assets of a firm. Most of the cases due to lack of human capital a firm faces difficulty to grow, become stagnant and ultimately loses its market share to the rivals in the market place (Boselie, Dietz & Boon 2005). So, Human capital is the most valuable assets of a firm not the products or brand value. In some cases well managed employees of a firm through favorable HRM policies can help enhance the brand value of a company and thus perform internal marketing to amplify the overall image of the company (Arthur 1994).

Role of HRM in Management

Role of HRM in management is changing continuously (Hiltrop, Despres, & Sparrow 1995). The aspect of globalization has added new dimension to HRM. HRM is the process which deals with the well being of the employees and eventually ensures the functionality of management. Well functional management can easily achieve organizational goals. So HRM s role is very important in an organization in the following ways: Strategic Planning: HRM helps the firm to select suitable employees and train them to make them human assets. Well trained employees who are accustomed with the organizational culture and goal can help the management of firm to formulate plan. When plans are formulated in a tactical way then it is called strategic planning. So HRM helps a firm to formulate strategic planning. Creating high performance work environment: By training the employees HRM ensures that high performance is delivered from them. So creating high performance work environment is another role of HRM.

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Managing technology: Almost all the firms in today s world are engaged in using technology. So adaptation of technology to the employees has become a vital role of HRM. With growing techno investment of modern era and up to dating employees to this feature has increasingly becoming a crucial role of HRM (Kalata 1999). Motivating team performance: HR managers in HRD of a firm always try to motivate employees as individual and as team players in a firm. So this is another important role of HRM. Increasing efficiency: By developing skills of employees HRM increases the efficiency of a firm. Various studies found that motivation and work efficiency has higher degree of positive correlation. So this is another important role of HRM.

Goals and functions of HRM

Goals of HRM are numerous and these goals ensure well functioning of HR personnel to achieve organizational objectives. Recently HRM is severely criticized by various researchers for using employees as a means and not treating them as a human being. So currently ensuring proper work environment and keeping employees happy by not putting excessive pressure on them has become a major goal of HRM. Because reputation is very important for a company and well reputation of a company in the market place depends on the well defined HRM policies so HRM these days is more focused on building human capital in an effective way. Morality of HR managers is another issue here. HR personnel of firm should be ethically strong and give effort to achieve organizational goals (Pinnington, Macklin & Campbell 2007). Organizational success or failure depends on the devotion of the employees of that organization while they should be treated as human not a means to achieve organizational goals. So apart from other goals HRM s main focus is now on ensuring proper treatment of employees and thus building the reputation of the firm in the market place.

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Definition of Ethics
Theoretically ethics means doing the right things and maintaining morality in such a way so that society gets benefitted from the activities. From the perspective of business ethics means doing right kind of business in an honest way so that all the stakeholders related to the business gets benefitted and eventually which will put a positive impact on the society (Vickers 2005). In business ethics is very important from various perspectives. Ethics is a part of organizational culture and it helps a firm to grow reputation. Good ethical conduct is not important for organization as a whole but also important for the employees when dealing with the internal factors of the firm. Like a firm must behave ethically to its employees and proper ethical treatment is very important to maintain satisfactory work environment. If there relics satisfactory work environment in firm employees will be motivated even more to work for the prosperity of that firm and goal of HRM will be achieved.

Importance of ethics in business

Ethics is very important in business because good ethical practice shapes the organizational culture of a firm and provide good working environment for the employees. In business good ethical practice is important from various perspectives. These are as follows: Maintaining reputation: Market value of a firm has several determinants among these good ethical practice is the most important. Good ethical practice increases the intangible asset value of the firm and thereby increases the reputation of the firm. In today s global business world brand value is more important that products and brand value can be increased by dedicated employees and to get optimum devotion from the employees ethical practice and rational HRM policies are very important. Practicing good organizational culture: Ethics is also very important for establishing fair and good organizational culture. If ethical treatment is present in all kinds of Page 6 of 12

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dealings of the firm then culture of that firm will be a very sound one and its reputation will certainly enhance. So for maintaining good and fair organizational culture importance of ethics is very significant. Following legal bounds: Ethical conducts helps to follow all the legal obligations. This is true for a business as well. In the world of business there are many legal obligations which must be followed by the firm to ensure well being of the society and the employees. Good ethical practice helps the firm to obey legal obligations. Maintaining employee satisfaction: Employees are very important for a firm to achieve its goals. Prosperity of a firm depends on the efforts of the employees. If satisfactory work environment is maintained and if employees are treated as human being rather means of business only then the employees will give their optimum service to the prosperity of the firm (Wright & McMahan 1992). Treating employees like anything but human being is a burning issue in today s world of business. Many firms treat their employees like machines thus hamper satisfactory work environment which is very much reproached from the point of view of ethical conduct (Wooten 2001). Many cases HRM formulates the policy to get the maximum out of the employees by doing inhuman consideration to them. This should be stopped and a firm must maintain satisfactory work environment from ethical perspective. Maintaining CSR activities: Corporate social responsibilities are to be performed by a firm to fulfill its social liabilities. So, performing CSR activities arise from the ethical consciousness of the management of a firm. Thus good ethical practice is very important and motivates the firm to perform its social liabilities in the form of CSR activities (Matten & Moon 2004).

Importance of ethics from HRM's perspective

HRM deals with the employees of a firm by recruiting, training and developing their skills. If HRM does not train the employees to maintain ethics then the employees will engage in unethical conducts. This is one aspect of thinking about the Page 7 of 12

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importance of ethics in HRM. Such unethical practice of HRM to the employees of a firm can create organizational unrest and reduces the effectiveness of the employees (Greenwood 2002). Again, If HRM of a firm treats its employees beyond the scope of ethics then HRM can be said unethical. HRM can make an employee resource if it treats them in a proper ethical way or else employees will become a burden for the firm (Inkson 2008).

Contrast between HRM and Ethics

According to the Kantian theory of ethics HRM is unethical because it treats employees of a firm like any other means instead of human being. This theory is quite right and in modern era because HR department of a firm tries to get the most out of an employee and to do so HRM uses the employee like a machine. So implication of modern HRM actually violates human right which is very unethical. Contrast between these two conceptions and why HRM is unethical is shown below: Result oriented: HRM is result oriented and to get the best possible performance from the employees it uses them in an unethical way. In most of the cases HRM tries to maximize the output from the employees without thinking about the well being of them (Lewis & Heckman 2006). So HRM is result oriented which put pressure on employees and that s why it is unethical. Goals: Goals of HRM are to managing the employees optimally so that they become an asset for the firm. Employees capacity and well being are not a concern here. Which is completely opposite from the conception of ethics and so HRM is unethical. Prosperity of the employees: Increased productivity is very important for a firm and HRM of the firm ensures that (Wharton on human resources 2009). While form ethical standpoint prosperity of employees is crucial HRM does not bother about the satisfaction and prosperity of the employees that s why it is unethical. Work load: HRM basically focuses to reduce the cost of the firm and thus put work load to the employees (Tichy, Fombrun and Devanna 1981) where ethics say that

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employees should not be given too much pressure and congenial atmosphere should be provided. So again it can be said that HRM is unethical. Remuneration policy: HRM tries to get the work done in lowest possible cost where ethics tells to give fair remuneration to the employees for the work done. As HRM looks for best effort at a lower cost so it is unethical.

Usefulness of both these theories and disadvantages

Both these theories are important and useful when HRM focuses on reducing cost ethics ensure employees well being. HRM is useful for a firm to maximize profit on the other hand Ethics is useful to perform social obligation and employee s well being. Ethics hampers the cost reduction strategy of firm when strict HRM policies reduce employee satisfaction to reduce cost. So Although HRM is useful for the profitability of a firm but it is unethical for its behavior to the employees.

Reasons: Why HRM is unethical

According to the Kantian theory of Ethics HRM treats people as a means, a tool, an instrument, a devise, a resource and not as a human being and person. So HRM basically violates human rights of the employees and any violation of human right is unethical. So HRM can be said unethical for its treatment to the employees. HR s role has been changing for the last several years due to addition of new dimensions like globalization but its function is still the same which is using the employees in an inconsiderate way (Mackavey 2006). So from HRM s functions unethical issues arise and make the whole HRM unethical. Most often HRM tries to optimize the welfare of the firm or the shareholders at the cost of the welfare of the employees (Johnsen & Gudmand-Hyer 2010). This is a very unethical activity performed by HRM and therefore proves that HRM is unethical. HRM often takes stern actions against the employees and reduces their benefits or even fire them for silly mistakes. This is also against the ethical conception of Kant (White 2009). Page 9 of 12

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Employees should be treated as human being because such treatment will motivate those to work for the betterment of the firm and eventually shareholders wealth will be maximized which is the ultimate goal of the HRM. So in practice ethical conducts should be integrated with the treatments of the HRM and HR policies of the firm should be formulated accordingly. But some actions, where appropriate needs to be taken to prevent the reckless behavior of the employees as well.

Impact of Ethics and HRM on business environment

Impact of Ethics and HRM in the business environment is very important because ethical implication of HR policies can lead a firm towards success. If employees are treated in an ethical way then business environment will be good enough and congenial for the business. So, ethical treatment of HRM is very important to ensure a sound business environment.

Conclusion and recommendation

HRM is unethical because of the activities it performs. Most of the cases it tries to maximize profit in an unethical way by using the employees like a machine. So it is quite clear that ethics should be established in the activities of HRM. Ethics should be considered before making any HR decisions and formulate any kind of HR policies. Ethically formulated policies of a firm can ensure satisfactory work environment and provide safety to the employees. Once employees are satisfied they give their maximum effort for the betterment of the firm and try to enhance the value. But some strict actions also need to be taken in some special occasions where employees are required to be controlled and driven to the benefit of the firm. Ethical consideration is important to the every aspect of the firm because not only the employees but there are many other stakeholders apart from the stockholders who also have some implied interest in the firm. So to protect the rights of the employees and other stakeholders , ethical implication in HRM policy is very important. Although there are many criticism about the unethical treatment of HRM Page 10 of 12

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to the employees but in some cases HRM policies are quite fair and protect the benefits of the employees. Some ethical theories suggest that HRM treats employees like machine instead of human being and this kind of perception is very harmful for the reputation of the business. So implication of ethics in HR policies and ethical HRM practice can satisfy the needs of the employees and protect their rights thus provide them superior facilities.

References
1. Kerr, S. & Glinow, M.A.V. 1997, The Future of HR: Plus Ca Change, Plus C'est La Meme Chose , Human Resource Management, Vol. 36, No. 1, pp. 115-119. 2. Dessler, G 2009, Introduction to human resource management , Human resource management, 11th edition, Prentice-Hall, New Jersey, pp. 1-26. 3. Boselie, P. Dietz, G. & Boon, C. 2005, Commonalities and contradictions in HRM and performance research , Human Resource Management Journal, Vol. 15, No. 3, pp. 67-94. 4. Arthur, JB 1994, Effects of human resource systems on manufacturing

performance and turnover , Academy of Management Journal, Vol. 37, No. 3, pp. 670 687. 5. Hiltrop, J., Despres, C. & Sparrow, P. 1995. The changing role of HR managers in Europe , The European Management Journal, Vol.13, No. 1, pp. 91 - 98. 6. Kalata, E. D. 1999, The relationship between business strategy and human resource development in Fortune 500 companies , Ph.D dissertation, University of Illinois at Urbana-Champaign, United states, Illinois. 7. Pinnington, A.H. Macklin, R. & Campbell, T 2007, Human resource management: Ethics and employment , The morally decent HR managers, Oxford University Press, UK, pp. 265-281. 8. Vickers, M.R. 2005, Business Ethics and the HR Role: Past, Present, and Future , Human Resource Planning, Vol. 28, No. 1, pp. 26-32.

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9. Wright, P.M. & McMahan, G.C. 1992, Theoretical perspectives for strategic human resource management , Journal of Management, Vol. 18, No. 2, pp. 295320. 10. Wooten, K.C. 2001, Ethical dilemmas in human resource management an application of a multidimensional framework, a unifying taxonomy and applicable codes , Human resource management review, Vol. 11, pp. 159-175. 11. Matten, D. & Moon, J. 2004, Corporate Social responsibility , Journal of business ethics, Vol. 54, No. 4, pp. 323-337. 12. Greenwood, M.R. 2002, Ethics in HRM: a review and conceptual analysis , Journal of Business Ethics, Vol. 36 No. 3, pp. 261-78. 13. Inkson, K. 2008, Are humans resources? , Career Development International, Vol. 13 No. 3, pp. 270-279. 14. Lewis, R.E. and Heckman, R.J. (2006), Talent management: a critical review , Human Resource Management Review, Vol. 16 No. 2, pp. 139-54. 15. Wharton on human resources, 2009, The HR Contribution, Vol. 2, pp. 1-26. 16. Tichy, N. Fombrun, C. & Devanna, M.A. 1981, Strategic Human resource management , Division of research, Graduate school of business administration, The university of Michigan, pp. 1-36. 17. Mackavey, M.G. 2006, Practicing Ethics in Hr: Where s the Action?, The Journal of American Academy of Business, Vol. 9, Num. 2, pp. 244-249. 18. Johnsen, R. & Gudmand-Hyer, M 2010, Lacan and the lack of humanity in HRM , Organization, Vol. 7, No. 3, pp. 331-344. 19. White, M.D. 2009, In Defense of Deontology and Kant: A Reply to van Staveren , Review of Political Economy, Vol. 21, No. 2, pp. 299-307.

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