ETHICS IN HRM

BECG

LECTURE 7.1

PROF SOUMITRA MOOKHERJEE

 Significance of HRM

• HRM as a source of competitive advantage

• Prudent HRM practices boosts motivation,

commitment and productivity

• Treatment of employees and work conditions of

paramount importance –

• Adds value to any organization – as conducive HR

practices stimulates employees morale
 Significance of HRM
• Equally important is the organization culture

• Ethical HR Practices and employee engagement is

the order of the day

• Critical HR interventions warrants ethical behavior

to avoid conflicts and arrogance in the workplace

• Position profiling, appraisal, training and

development, promotions and compensation
structure – key to stimulating employee
commitment
 Significance of HRM

- Employing people.

- Allocation and utilization of resources

- ,Justified compensation structuring in tune with

the job requirements

- Facilitating the path to fulfillment of organizational

requirements and contributing to the goals of the
organization.
 Ethics in HRM

• Indicates the treatment of employees with

decency and distributive justice.

• Employees will feel motivated and they will work

with efficiency, sincerity and dedication

• Deals with the affirmative moral obligations

of the employer towards employees

• The concept of equality and equity

 Areas of Ethics in HRM

1. Justifiable treatment of employees (Eg:-Equity

and equal opportunity)

2. Respect to employees

3. Fair and non biased treatment

4. Structured processes in the workplaces.

 Areas of Ethics in HRM

1. Job security, employment rights

2. Safety and security in the workplace

3. Adhering to the moral commitments and mutual

expectations

4. No stigma and being stature conscious

 Role of HR in promoting ethics

 1. No discrimination in the recruitment and

selection tests.

 Adhere to the policy, selection criteria and eligibility

 No bias in terms of gender, race, religion,

country of origin.
 Role of HR in promoting ethics

 HR to conduct training:

 Training given to HR of the organization to do their

work in adherence to the ethical code of conduct.

 Advantages: Increased productivity,

higher employee morale
 Role of HR in promoting ethics

 1. No shortcomings in the performance appraisal

mechanism

 2. Performance appraisal should not have any degree

of partiality or bias

 3. Fair Opportunities to all in terms of prospects,

promotions and training deliverables
 Role of HR in promoting ethics

 4. Fair and equitable Rewards – no unnecessary

wage disparities

 5. Information dissemination – communicate

clearly the goals of the organization – clear two
way communication

 6. Avoid any kind of discrimination based

on caste,colour,creed,religion, gender, etc.
 Role of HR in promoting ethics

- Employee Safety

- Employee Treatment

- Inclusive workforce

- Diversity of workforce

- Employment rights to disabled for specific function

and roles
 Unethical Practices of HRM

 BY Employers:-
1. Aggravating unions

2. Biased attitude in selection, transfer, promotion etc

3. Exploitation of cheap labor

4. Encouraging use of Child Labour

5. Non adherence to pension payouts

 Unethical Practices of HRM

BY Employers:-
6. Violence, impolite and rude behaviour

7. Longer and unearthly working hours

8. Exerting stress on employee for increasing

productivity and contribution

9. Frequent arguments and conflicts

 ROLE OF GOVERNMENT

1. No action on vacancies announced

2. Prudent hiring practices – without any impartiality

3. Functioning of government offices is not

transparent and reliable.

4. Selection commitees aware of reservation

quotas rather than gaining through the
responsibilties.
 Ethics IN HRM

 How to promote fairness and justice:

 1. Realise the capabilities and intrinsic value of the

employees.

 2.Treat people with dignity and respect

 3. Develop mutual trust and faith and fulfill unspecified

obligations
 Ethics IN HRM

How to promote fairness and justice:

4. Reduce harassment and discrimination

5. Opportunity to employees equally to develop

their competencies, skills.

6. Fosterthe spirit of team work, group

dynamics and commitment .

7. Specifying code of conduct, policies and procedures

which will ensure equitable treatment for all.
 Alignment of Goals

• Individual goals of employees should not

cause hindrance to achievement of the
organizational goals.

• Fairness and honesty is of great significance

• Decisions taken by management must be ethical

and legal.