BBA 1st Year Business Ethics Long Question Answer

Globalization has brought about the concept of globalizing labour, trade unions have started to decline and the role of FIR as such in issues like employee’s policies and practices has become a debatable topic. In fact many people are of the opinion that HR is nothing but an arm of the stakeholders through which major strategic and policy decisions are divulged and are geared towards profit making.

Thought that there can be no single opinion on ethics in HR is convincing. Market in itself is neither an ethical institution nor un-ethical and no policies and procedures alone can govern and align markets to human well being. However the requirement of such policies and procedures can also not be denied. In lieu of this, HR ethics should take care of things like discrimination (sexual, religion, age etc.). compensation, union and labour laws, whistle blowing, health and safety of the employees etc.

Q.12. Write a brief note on Ethical issues in human resource management”.

Ans. Ethical Issues in Human Resource Management; Of all the organisational issues or problems, ethical issues are the most difficult ones to handle or deal with. Issues arise in employment, remuneration and benefits, industrial relations, health and safety.

(1) Cash and Compensation Plans: There are ethical issues pertaining to the salaries, executive perquisites and the annual incentive plans etc. The HR manager is often under pressure to

raise the band of base salaries. There is increased pressure upon the HR function to pay out more incentives to the top management and the justification for the same is put as the need to retain the latter. Further ethical issues crop up in HR when long-term compensation and incentive plans are designed in consultation with the CEO or an external consultant. While deciding upon the payout, there is a pressure on favouring the interests of the top management in comparison to that of other employees and stakeholders.

(2) Race, Gender and Disability: In many organisations, recently the employees were differentiated on the basis of their race, gender, origin and their disability. Not anymore ever since the evolution of laws and a regulatory framework that has standardized employee behaviours towards each other. In good organisations the only differentiating factor is performance. In addition, the power of filing litigation has put organisations on the back foot. Managers are trained for aligning behaviour and avoiding discriminatory practices.

(3) Employment Issues Human resource practitioners face bigger dilemmas in employee hiring. One dilemma stems from the pressure of hiring someone who has been recommended by a friend, someone from your family or a top executive. Yet another dilemma arises when you have already hired someone and he/she is later found to have presented fake documents. Two cases may arise and both are critical. In the first case the person has been trained and the position is critical. In the second case the person has been highly appreciated for his work during his short stint or he/she has a unique blend of skills with the right kind of attitude. Both the situations are sufficiently dilemmatic to leave even a seasoned HR campaigner in a fix.

(4) Privacy Issues Any person working with any organisation is an individual and has a personal side for his existence which he demands to be respected and not to be intruded. The employee wants the organisation to protect his/her personal life. This personal life may encompass things like his religious, political and social beliefs etc. However, certain situations may arise that mandate snooping behaviours on the part of the employer. For example, mail scanning is one of the activities used to track the activiries of an employee who is believed to be engaged in activities that are not in the larger benefit of the organisation.

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