Professional Documents
Culture Documents
Ethical Issues in HR
Ethical Issues in HR
UMA BHARTI
MANJU BAGHEL
HR Ethics
⌂ No well-established mandatory professional
standards
⌂ Right v. Right
Selecting the best option
Examples of Right v. Right
Dilemmas
⌂ It’s right to tell the truth, but it is also right to
be kind and considerate of peoples’ feelings
and emotions.
⌂ It’s right to apply rules and procedures
equally, without favoritism, but it is also right
to give special treatment to hard-working,
dependable, and productive employees.
Examples of Right v. Right Dilemmas
(cont’d)
⌂ It’s right to spend more time adding more quality
to your work but it is also right to meet deadlines
and avoid “diminishing returns” on your efforts.
04/29/20
18
HR Ethics Activities
⌂ Staffing and selection
⌂ Fostering the perception of fairness in the processes of recruitment and
hiring of people.
⌂ Formal procedures
⌂ Interpersonal treatment
⌂ Providing explanation
⌂ Training
⌂ How to recognize ethical dilemmas.
⌂ How to use ethical frameworks (such as codes of conduct) to resolve
problems.
⌂ How to use HR functions (such as interviews and disciplinary practices) in
ethical ways.
©SHRM 2008 22
Training
⌂ To recognize ethical issues
©SHRM 2008 25
Compensation and Benefits
⌂ In addition to a base salary, compensation includes:
⌂ House rent allowance (HRA*).
⌂ Medical allowance.
⌂ Dearness allowance (DA*).
⌂ Leave travel allowance (LTA*).
©SHRM 2008 26
Compensation and Benefits
⌂ Retirement age:
⌂ 55-60 years (private sector);.
⌂ 60 years (public sector).
⌂ Retirement Benefits: Employees receive two lump-sum payments when they retire:
⌂ Provident Fund (similar to 401(k))
• Typical contributions: 10-12 percent of base salary (employer and
employee).
• Payable on retirement, voluntary separation, death.
⌂ Gratuity
• Only employer contributes (15 days salary per year of service).
• Tax-exempt for employees.
• Payable on retirement, voluntary separation, death.
©SHRM 2008 27
Compensation and Benefits
⌂ Organizations are seen as an extension of the family.
Personal loans for housing, car, home maintenance and family emergencies.
©SHRM 2008 28
Compensation and Benefits
⌂ Executives receive special benefits to reflect status such as:
• Club memberships.
• Overseas training.
• Company housing.
• Company cars.
⌂ Provided with drivers.
⌂ International cars.
⌂ Operational and maintenance costs.
• Phone bill reimbursements.
⌂ Organizations provide business and cell phones.
©SHRM 2008 29
Equal opportunity laws
⌂ Age discrimination
⌂ Disability
⌂ Ethnic/National origin, colour, race, religion,
gender
⌂ Fair labour standards
Reward and disciplinary
systems
⌂ Performance appraisal
⌂ Discipline system
Ethical discipline
⌂ People not employees
⌂ Job description is clear
⌂ ”What to do ” attitude compared to ”Don’t
do this” attitude
⌂ Top managers example
Effective dismissal
⌂ Factors
⌂ Legal and valid reasons for dismissal
⌂ Explain the reasons
⌂ Be firm with your decision
⌂ Process
⌂ Informal action
⌂ Disciplinary meeting
⌂ First written warning
⌂ Second written warning
Termination interview
⌂ Be straightforward
⌂ Explain the purpose of the interview
⌂ Benefits after losing the job
⌂ Document the exit interview
⌂ Be prepared for questions
A salary and benefit audit identifies a grading error which
advantages a high performing employee, but the manager
instructs that the error be concealed
⌂ Affirmative Action
⌂ An effort to give preference in employment to women or other minorities
⌂ Comparable Worth
⌂ Persons performing jobs of similar worth should receive comparable pay
• A worker having worked for 240 days @ one day for every
20 days and for a child one day for working of 15 days.
• Accumulation of leave for 30 days.
Sec. 79
Sec.92 to 106
OFFENCE PENALTIES
For contravention of the Provisions of the Act or Imprisonment upto 2 years or fine upto
Rules Rs.1,00,000 or both
On contravention of Chapter IV pertaining to Not less than Rs.25000 in case of death.
safety or dangerous operations. Not less than Rs.5000 in case of serious
injuries.
Subsequent contravention of some provisions Imprisonment upto 3 years or fine not less than
Rs.10, 000 which may extend to Rs.2, 00,000.
Wrongful disclosing result pertaining to results Imprisonment upto 6 months or fine upto
of analysis. Rs.10, 000 or both.
For contravention of the provisions of Sec.41B, Imprisonment upto 7 years with fine upto Rs.2,
41C and 41H pertaining to compulsory disclosure 00,000 and on continuation fine @ Rs.5, 000 per
of information by occupier, specific responsibility day.
of occupier or right of workers to work imminent Imprisonment of 10 years when contravention
danger. continues for one year.
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