Tenth Stop - Ethical issues faced by HRM

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Although in time ethics was defined in many ways, these fields were focused on the ethical principles and standards that should govern human interaction. Ethical ideals such as honesty, truth, fairness are standards for how people should treat each other. Ethical concepts such as rights, duties, and responsibilities build the structure of social relations. They define the field of individual authority and specify what exactly do individuals owe to each other and what they owe to the community (Carter, 2015).

Ethical issues faced by HRM
  • Employment issues
One of the major issues of HR professionals face is when hiring employees. For example, most of the companies tend to pressure to hire a friend or relative of a highly placed executive. Another problem is faked credentials are submitted by a job applicant (Deutsch, 2017). In one hand there can be situations that you are discovered that employee who has been with the organization for some time, is skilled and has established a successful record, had lied about his educational credentials.
  • Cash and incentive plans
This is an issue, more engage with basic salaries, annual increments or incentives, executive perquisites, and long-term incentive plans:

Basic salaries - HR managers need to justify a higher level of base salary or a higher percentage increase than their competitors to retain some employees (Rayburn-Trobaug, n.d.). This situation is particularly true in senior executives. The fear of losing some outstanding executives, HR managers are forced to give them more incentives than the individuals deserve.

Executive perquisites - In the name of executive perquisites, sometimes excessive engagement is involved, whose ethical burden falls on the HR managers. Sometimes the cost of these perquisites is in proportion to the added value (Anon., n.d.) For example, the CEO of a loss company buys a Mercedes for his personal use or wants a swimming pool built at his home.

Long term incentive Plans - Ethical issues arise when the HR manager is put to pressure to favor top executive interests over the interests of the other employees and the investors (Anon., n.d.).

  • Performance appraisal
Ethics should form the basis of performance evaluation. High ethical performance assessment requires that there be an honest assessment of the results and measures should be taken to improve the efficiency of employees (Anon., 2016). Some employees are, however, given low rates, despite their excellent performance based on factors like caste, religion or not being loyal to the appraiser.

References

Anon., 2016. UKESSAYS. [Online] 
Available at: https://www.ukessays.com/essays/management/ethical-issues-in-human-resource-management-management-essay.php
[Accessed 6 June 2019].

Anon., n.d. Reference for business. [Online] 
Available at: https://www.referenceforbusiness.com/management/Em-Exp/Executive-Compensation.html
[Accessed 6 June 2019].

Carter, A., 2015. Employment studies. [Online] 
Available at: https://www.employment-studies.co.uk/system/files/resources/files/mp111.pdf
[Accessed 6 June 2019].

Deutsch, M., 2017. Top Echelon. [Online] 
Available at: https://www.topechelon.com/blog/recruiter-training/unfair-recruitment-practices/
[Accessed 6 June 2019].

Rayburn-Trobaug, C., n.d. Chron. [Online] 
Available at: https://smallbusiness.chron.com/incentive-rewards-ethics-10851.html
[Accessed 6 June 2019].


Comments

  1. Prabath ChandrasekaraJune 8, 2019 at 8:44 AM

    Precisely described about ethical issues in HRM. Most of the companies are facing those issues but the type of issues might vary depending on the industry.

    ReplyDelete
  2. Sanjeewani AdikariJune 8, 2019 at 10:36 AM

    Ethics are usually crucial for the existence and well-being of any organization. Not only employer but also the employees are bound by ethics in carrying out day to day job tasks. managers however need to be extra careful when it comes to performance appraisals. They need to make sure the appraisals are free from any biases or false statements, so that employees are not discouraged due to employers shortcomings.

    ReplyDelete

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