Business Ethics in Hrm

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Business Ethics
In
Human Resource Management

HRM Ethics :
People learn business management automatically even before knowing what ‘Management’ is- Peter Drucker. To many people management is synonymous with business management, but business management is only a part of management. For a better understanding of HRM Ethics, it is essential to know what Management is, what is HRM, what is Business, what is Ethics and what is Business Ethics.

Definition-HRM :
HRM means a process of planning, organizing, directing and controlling of procurement (recruitment & selection), development (training), compensation (salary, wages & other benefits), appraisal (actual performance & potential performance), maintenance (welfare & record-keeping), and separation (retirement, resignation, retrenchment, etc) of employees or personnel or HR of the organization in order to achieve personal, organizational and social goals effectively and efficiently. In this definition, there are two types of functions for the HR Manager Managerial functions-planning, organizing, directing and controlling Operative functions- procurement, development, compensation, appraisal, maintenance and separation

Here, the HR Manager is applying all managerial functions positively in each of the operative functions to maintain equity, equality and justice. In some operative functions (compensation, appraisal, maintenance and separation) s/he has to maintain equity, while in some others (procurement, development, etc) s/he has to maintain equality and individual and social justice. It is also implied that HR (employees) must play their duties to achieve the organizational and social goals effectively and efficiently.

What is Ethics?
Ethics is a set of moral principles or values. Ethics are the principles, norms and standards of conduct governing an individual or group. Ethics is a rational inquiry into how to act and how to lead one’s life.

What is Business Ethics?
Business ethics are moral principles that define right and wrong behaviour in the world of business. Business ethics is the evaluation of business activities and behaviour as right or wrong. Business ethics is the application of general ethics to business behavior. These definitions say that business ethics is nothing but an extension of individual/group ethics to business situations. Also it can be understood that there can’t be different moral standards for personal life and business life. Business ethics is essentially an applied ethics.

What is HRM Ethics?
HRM Ethics is “the affirmative moral obligations of the employer (business) towards the employees to maintain equality and equity justice” Do not treat people (employees) simply as a means for our own purposes without their full and free consent, because they are ends in themselves.

Is HRM as a function full of conflicts? Yes

Rhetoric of HRMReality of HRM
FlexibilityMgt can do what it wants
De-layeringReducing the no. of middle mgrs
Downsizing/RightsizingRedundancy
New working patternsPart-timers to replace full-timers
EmpowermentMaking people take risk/responsibility
Training & DevelopmentManipulation/Exploitation
EmployabilityNo job/employment security
Recognizing individual contributionUndermine the trade union and collective bargaining Teamwork/synergyReducing the individual’s discretion

Employees’ rights and duties :

RightsDuties
To workLoyalty to the firm
For just compensationRespect for current legal and moral norms To free association and strikeRespect the rights of the employer For privacyJust contribution to the organization
For freedom of speechMaintain secrecy/confidentiality
To due processCooperation with boss/subordinates
For participation
For healthy and safe working conditions
To job satisfaction

Employers’ rights and duties :

RightsDuties
Demand minimal productivity from employeesNo discrimination in rules for recruitment and conditions for...
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