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TERM PAPER

OFHUMAN RESOURCE

MANAGEMENT

TOPIC: ETHICAL DILEMMA IN

HRM

SUBMITTED TO: SUBMITTED BY:

JATIN KHURANA

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ACKNOWLEDGEMENTWith the blessing of almighty god we are able to finish our term paper. We wouldlike to thanks our class lecturer honorable Gurneet maam for her wonderful co-operation, without which this work cant be completed. And I m also thankful tothat it gave me chance to work on this project, as it gave me knowledgeableexperience regarding my subject.

JATIN KHURANA

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INTRODUCTION:

Ethical dilemma is a complex situation that will often involve an apparent mental conflict between moral imperatives, in which to obey one would result in transgressing another. This isalso called an ethical paradox since in moral physiology; paradox plays a central role in ethicsdebates. For instance, an ethical admonition to "love thy neighbor as thy self" is not always justin contrast with, but sometimes in contradiction to an armed neighbor actively trying to rape you:if he or she succeeds, you will not be able to love him or her. But to preemptively attack them or restrain them is not usually understood as loving. This is one of the classic examples of an ethicaldecision clashing or conflicting with an organism decision, one that would be made only fromthe perspective of animal survival: an animal is thought to act only in its immediate perceived

bodily self-interests when faced with bodily harm, and to have limited ability to perceivealternatives.

What Is an Ethical Dilemma?

Ethical dilemmas, also known as moral dilemmas, have been a problem for ethical theorists asfar back as Plato. An ethical dilemma is a situation wherein moral precepts or ethical obligationsconflict in such a way as to make any possible resolution to the dilemma morally intolerable. Inother words, an ethical dilemma is any situation in which guiding moral principles cannotdetermine which course of action is right or wrong.

ETHICAL DILEMMA IN HUMAN RESOURCE MANAGEMENT

Human resource management (HRM) is currently undergoing rapid professionalization. Onearea, which has not been fully examined from a scholarly nor practitioner perspective, is that of

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ethical dilemmas. Ethical dilemmas in HRM can be seen as multifaceted, involving personal, professional, and organizational considerations. A general model of five ethical dilemmas [Acad.Manage. Rev. 8 (1983) 690.] Is applied to HRM in general and to eight HRM functions,illustrating 40 specific examples of potentially unethical behavior. Ethical codes of five

professional associations are reviewed in relation to general categories of ethical dilemmas, andtheir coverage is discussed.

Human Resource management is a business function that isconcerned with managing relation between group of people in their capacity as employees,employers, and managers, inevitably, this process may raise question about what the respectiveresponsibilities and right of each party are in the relationship and about what constitutes fair treatment. These questions are ethical in nature and this chapter will focus ondebates about the ethical basis of human resources management.

THE ETHICS NATURE OF HRM All HR practice has an ethical foundation. HR deals with the practical consequences of

human behavior.

- JOHNSON, 2003

The entire concept of HRM is devoid of morality

- HART, 1993: 29

The core concern of business- proponents of the market economy argue- is in attempting to

secure the best possible return on any investment. Any dilution of this focus will lead to thecorruption of as well as profitable will probably fail economically. Following which the wholecommunity may suffer. Invisible hand guides the market and all will prosper, like someevolutionary force. The best will always service, wealth will trickle down from successfulenterprise and humanity will be best served.

CONVICTION:-

The degree of conviction of values can be described as primary values, can be described as

primary, secondary or peripheral.

DEGREE OF CONVICTION

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PRIMARY SECONDARY PERIPHERAL

- Core values - Important -Values that are know but

- Unchanging - Changeable not lived .

ISSUES OF ETHICAL DILEMMAS IN HRM

Human resource issues

Human is the most important resource to an organization. Issues associated with human

resources occur as a result of employees working together. These issues are by far the

largest category of ethical dilemmas in business.

The four main types of human resource issues are as follows:

Hiring and Termination Issues

Recruitment or hiring process is the first step in selecting human resource into an

organization, and will significantly influence the successful performance of the organization.

Ethics plays a very important role during the recruitment of new employees. Law and

regulations dictate that we have to be ethical in hiring. However, ethical hiring practice goes

beyond them as well. It has been widely reported by many researchers that ethical hiring

practices actually result in better employees being recruited.

It is therefore important that sound ethical rules are followed when hiring a new employee.

It is of vital importance that candidates are to be selected based on merits. Applicants are

to be hired based purely on merits such as knowledge, skills, and ability in accordance to the

needs of the organization.

If a company provides any special considerations, for example affirmative action, where

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certain groups are given special considerations, these considerations should be well stated

in the company's policy statement. In any case, any preferential treatment should be one

that is legally allowed.

While preferential treatments to certain specific group may be allowed, there should be no

discrimination to people from any other group due to race, religion, gender, marital or even

pregnancy status.

Consistency and objectivity during the recruitment process are very important. Criteria,

including any changes in the criteria, used for evaluating candidates should be stated and

explained to order to avoid unnecessary claim of biasness in the recruitment process.

Objective evaluation results in the best employees being recruited while consistency ensureshigh morale among employees.

When we recruit new employees, we should tell the applicants about the true state of the

organization. We should not mislead the applicants. In particular, the applicants should be

told all pertinent information, including those information that are not publicly known but that

will materially affect the new employee's future employment prospect with the organization.

We can learn from the case involving Phil McCaskey. Phil McCaskey was recruited but he was

not aware that the company was in the process of being taken over by another entity. One

year after joining the company he lost his job with the new company. He sued the company

for with-holding important information from me during the recruitment process. He won the

case and was awarded $10 million.

We should never place misleading job advertisement in order to get applications if we are

offering a job contract different from what we advertised for. For instance, if we want to

engage independent contractors instead of normal salaried employment. The reason why

we choose to engage independent contractors is that we do not have to be burdened with

high salary cost for employees that are not competent, but we are willing to compensate

employees according to performance. We should always state clearly our terms of

employment. In any case, we do not want to be accused of any job scam.

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We have to be extra careful when we are recruiting employees from organizations that have

material dealing with us include our suppliers, customers and competitors. If we are not

careful ethical issues very damaging to us can arise.

When we employ somebody from our suppliers, the suppliers may feel that we have

unethically poached their good employee. After all, it is through the working relationship we

have with the suppliers that we can to know the quality of this employee.

When we employ somebody from our customers we can be accused of returning favor to that

person. This rule applies especially when employing a former senior government employee

that has an influence on the awards of contracts to an organization like yours. The case of Ms. Darleen Durum at the Department of Defense and Mr. Michael Sears at Boeing is a good

illustration of the importance of such a rule. In this case, employment favor was apparently

granted by Boeing in exchange for favorable consideration for the awards of contracts by

Department of Defense. Also, be careful not to employ former government employees for the

purpose of lobbying for contracts from their previous government departments. At least, do

not do so within the first two years of the employee leaving the government service.

It is also not very wise to employ somebody from our competitors because we can be

accused of stealing trade secrets from our competitors. If that employee can pass on his

previous employer's secrets unethically, what is there to stop him from passing your trade

secrets to others?

Even though it may not be considered as unethical by some employers, as a matter of

courtesy and good public relationship to inform an unsuccessful applicant.

When an employee is asked to leave, it is also of vital importance that it is handled with

fairness and care. If it is a case of poor performance or disciplines, the employee has to be

given prior warning (unless it is violation of a well stated policy or is of a very serious nature)

and fair hearing. In any case, do not hurt the dignity of the employee and offer to provide

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the necessary assistance where appropriate.

Before an employee leave for any reason, provide him/her with an opportunity to provide

feedback on the overall state of the organization by conducting exit interviews.

Discrimination

Discriminations the unfair or preferential treatment of a person on the basis of one or more uncontrollable characteristics, including race, gender, age, color, religion, or nationalorigin, as well as handicapped or pregnancy status.

Discrimination against others in the workplace can impair your ability to perform your jobaccording to company expectations.

In most countries, there are laws that protect potential and current employees fromdiscrimination based on age, race, color, national origin, religion, and gender, as well as

pregnancy or handicapped status.

Performance Appraisal

Performance appraisal is conducted to evaluate an employees performance over a set

period of time.

When evaluating subordinates, one has to remain consistent and objective. Consistency iseven more important when evaluating an existing employee than a prospective employee.

Consistency requires that you treat every employee's misbehavior the same way. For example, it would be wrong to punish one employee's tardiness while leaving another employee's tardiness unchecked.

In order to maintain objectivity, the companys standardized evaluation forms should beused. In this way, uniform criteria can be used for the appraisal of all employees under you.Also, all employees in the company are evaluated based on the same criteria.

Constant feedback and communication between you and your subordinates is necessary tofacilitate a positive and productive working relationship. Dont wait until periodic performanceevaluations to express your observations and suggestions. In fact, it is unethical to base

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salary adjustments upon performance problems that have not been brought to the employees attention.

For employees being evaluated, honesty and acceptance of responsibility for performance problems are important ethical considerations .

Disciplinary issuesDisciplining employees are one of the most difficult parts of a managers job. Nevertheless, itis vital to the growth and overall success of the organization.

Disciplining employees both ensures productivity and sets standards for the future.

Discipline should occur immediately after a problem has occurred. It is imperative that thedisciplinary actions remain consistent for all employees.

A serious disciplinary issue is sexual harassment where female employees (less so for maleemployees) are subjected to an unwanted sexual behavior that creates an intimidating or hostile work environment. This includes unwelcome sexual advances, requests for sexualfavors, and other verbal or physical conduct of a sexual nature. This conduct is not onlyunethical, but illegal as well.

Some points which show poor ethical standards.

While short term goals may be achieved through the cutthroat tactics of free market

principles, in the long run business will served well if good standard of conduct aremaintained.

Ethical business creates a positives environment in which to buy and sell, as corruption, poverty and lack of respect for the environment generate problem for the businesscommunity in the long term.

Finally people neither hold moral values nor have religious beliefs to guide the conductof their lives.

EXAMPLE OF ETHICAL MISCONDUCT IN HR ACTIVITIES.

TYPES OF MISCONDUCT EXAMPLE OF EMPLOYEES, SUPERVISOR &

MANAGERIAL BEHAVIOUR

Compensation - Misrepresent hours & time worked.

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-Falsifying expense report.

-Personal bias in performance appraisal & pay increase.

-Inappropriate overtime classification.

- Employee lying to supervisors.

Employee Relations -P ersonal gains/gifts from vendors.

-M isusing/ stealing organizational assets & suppliers.

-Intentionally violating safety/ health regulations.

Staffing & Equal - F avoritism in hiring & promotion.

MOTIVATING ETHICAL BEHAVIOUR

STAGES

Self Interest The only crime is getting caught

Self Interest: whats in formed I will scratch back if scratch mine

Group norms are important: Do you duty to those whose opinions

Universal ethical principles

STAGE: 1 Self Interest, The only crime is getting caught.

Make it more likely to catch bad behavior.

Anticipate possible bad behavior.

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Create rules expectations: whats unacceptable?

Communicate rules & expectation.

Increase the penalties for bad behavior.

Have formal policies that describe the escalating sanctions.

STAGE: 2 Self Interest: whats in it formed- I will scratch back if you scratch mine.

Create incentives for good behavior & to avoid bad behaviors.

Punish bad behaviors.

Withhold benefits valued by the employed for bad behavior.

Create positive incentives for good behavior.

Tie rewards to good behaviors.

Watch for unintended incentives for bad behavior.

STAGE: 3 Group norms are important: Do you duty to those whose opinions.

Focus on co-workers & direct supervisors.

Monitors for workgroup with bad norms.

Screen applicants in hiring for the desired norms.

Use formal socialization, orientation & training sessions to teach the desirednorms.

Use self managed teams & coach them to have the desired norms.

Direct supervisors should formally praise good behaviors.

STAGE: 4 Universal ethical principles.

Create & use a moguls office.

Create method for employees to report illegal or unethical behavior.

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Ethics hotline.

Ethics webpage on company website.

Embeds office investigates complaints, reports findings, & helps to resolve issues.

Guided by independence, confidentially, objectivity & ethics.

REVIEW OF LITERATURE:

Articles No. 1

Lee, j (2000) analyzed that the most appropriate factor determines whether an issue or a dilemmacan be resolved or not. Employment and employees should have an inter-dependent relationshipthat is driven by belief in each other. While employees should believe that the decisions taken bythe employer would be in their best interest, employers should believe that employees work ethics are only for the development of the organization.

Articles No. 2

Karve, V (1998) analyzed that Ethical fitness of an individual before recruiting, promotion or assigning an important post or task to an individual. When recruiting new people, or promotingor appointing persons to senior or sensitive positions, a number of attributes ( hard skill and softskills) like professional competence, Managerial proficiency, Domain-specific or technical skill,and even physical and medical fitness are assessed, evaluated and given due consideration.Reference: - Vikram karve , Link: - http:// ezinearticles.com/? Ethical-fitness-assessment-for-recruitment-promotion-&-human-resource-management & type=sv&id=2577241.

Articles No. 3

Jain, R (2000) analyzed that Ethics are important not only in business but in all aspects of life because it is the vital part and the foundation on which the society is build. A business/ societythat lack ethical principles are bound to fail sooner or later. Ethics refers to a code of conductthat guides an individual in dealing with others. Ethics are related to all disciplines of management like accounting information, human resource management, sales and marketing,

production, intellectual property knowledge and skill, international business and economicsystem.

Reference: - Repel Jain, http:// ezinearticles.com/? Important-of-Ethics-in-business &type=su&id=1212419.

Articles No. 4

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Buchanan, K (1987) analyzed that the role of the Human Resources Department has changeddramatically over the past 30 years and will become increasingly more strategic in nature in thefuture, said a leading light of the HR community in the recent 2006 Annual Conference andExposition of HR practitioners in Washington, DC.

Reference: - Kadence Buchanan, http:// ezinearticle.Com/? Trends-in-Human-resourcetype=su&id=320884.

Article No. 5

King, W (1999) in this article discusses the fundamental steps or techniques help towardsmaking your business competitive in the market. These are the steps used by businesses to knowtheir strengths and weaknesses. These help to identify problem, highlight areas of opportunity for improvement or stimulate discussion on how to make their business more efficient and effectiveto compete.

Reference: - William King, http:// ezinearticles.com/? Steps-Involved-in Making-your-Business-Competitive & type=su&id=344183.

Article No. 6

Shoemaker, D (1980) analyzed that as a leader, HR training can be useful in teaching you howto ensure ethical outcomes in the workplace. This should begin with an agreement betweenleaders and all team members that pledges to act in an ethical manner at all times. The agreementshould also mention the importance of making sure team members always discuss issues as agroup, rather than breaking into factions and holding discussions separately.

Reference: - David shoemaker, http:// ezinearticles.com/? Human-resource-TrainingHow-to-Implement-Ethical-practice&type=sv&id=4078444.

Article No. 7

Marti, C (2002) analyzed that companies spend huge amounts of money trying to be sociallyresponsible. Its consideration that concerned about why companies are "socially" and "ethically"active and what are the main issues involved in corporate social responsibility (CSR). CSR means a commitment by a company to manage its role in a society in a responsible & sustainable

manner.Reference: - Carlos Marti, http:// ezinearticles.com/? Corporate-social-Responsibility-and-HR-Implication & type=su&id=1601516.

Article No. 8

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Caliqiuri, P (1988) analyzed that the new free agent mentality for managing careers is forcingemployees to ask themselves some ethical questions about dual or outside employment. Thisarticle explores the question and offers standards to guide ethical decision-making when consider additional income streams.

Reference: - Paula Caliqiuri, http://ezinearticles.com/ ? You-did-not-take-a-vow-of-poverty-when-you-took-that-job&type=su&id=3995033.

Article No. 9

Sharma, V (1987) analyzed that the benefits business owners can and that many have derivedfrom outsourcing their bookkeeping tasks are obvious and are worth considering. The advantagesinclude their ability to focus their precious time on other core business activities. This mayinclude marketing their products, procurement, client liaison and relationships, human resourcemanagement and many others.

Reference: - Vish K Sharma, http://ezinearticles.com/ ? Benefits-from-outsourcingtype=su&id=4168950.

Article No.10

Gallagher C (1987) analyzed that borrowing" the money. Seems like famous last words fromsomeone who is living in denial. Being a "thief" is very real and has very real consequences. Asa Motivational Speaker, he shares experiences with audiences talking about choices andconsequences. Here's an example of what he hear about frequently.

Reference: - Chuck Gallagher, http://ezinearticles.com/?But-I-was-only-Borrowing-money---An-ethics-dilemma & type=su&id=648183.

Article No.11

Purdy, G (1986) analyzed that the Human resources are an integrated part of an organizationand it is one of the valuable assets. Effective human resource management is very important for

the success of any organization. In the modern world where companies are facing talent crunchand higher attrition threat, one cannot ignore the benefits offered by effective management as far as human resources are concerned .

Reference : - George Purdy, http:// ezinearticles.com/? Human-Resources-can-be-Managed-Effectively-using-conference-caltservice&type=su&id=701797.

Article No.12

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Morgan, E (1976) analyzed that the interesting role of a Human Resources (HR) Manager ranges from interviewing prospective candidates, to providing the best possible environment for task efficiency at a minimal cost to the company .

Reference : - Elizabeth Morgan, http:// ezinearticles.com/? Human-Resource-job-Description

type=su&id=139056.

Article No.13

Bustamants, M (1978) analyzed that the Degrees from Organizational Management Schoolsapply to all aspects of business and business administration. Graduates are prepared to conduct

business activities and make decisions; study designs and applications of computer supportsystems; and to take leadership roles in business organizations .

Reference : - Michael Bustamante, http://ezinearticles.com/ ? Organizational-Management-School-cover-all-Aspect-of-business&type=su&id=265419.

Article No.14

McGee, R (1990) analyzed that the performance appraisal process with performance-based 360-feedback and training and development programs. Credible and relevant feedback can helpemployees understand the consequences of their behavior and act as a catalyst for implementingneeded change. Organizations would do well to appraise performance in order to accelerate andmaximize it for the development of their people and to the ensure the viability of their organization .

Reference : - Renate McGee, http:// ezinearticles.com/? Align-your-Performance-Appraisal-Process-with-performance-Based-360-Degree-Feedback&type=su&id=220187.

Article No.15

Clinch, T (2005) analyzed that the Ten years ago many Australian small businesses didn't think they needed human resource management. In 2010, we are seeing businesses with only thirty

staff, employing a part-time HR Manager. HR management has obviously become an importantrole in small businesses.

Reference: - Taimi clinch, http:// outsourcing-HR-in-Australia-small-Businesstype=su&id=4162012.

Article No.16

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Gehrke, J (2008) analyzed that the A very common dilemma, which most managers experienceat one time or another in their career, occurs when they get a call from someone representinganother company's HR department, or perhaps a hiring manager, who is calling to ask for areference about one of our old employees or work colleagues. This article discusses this andother common dilemmas and whether or not we ethically should provide more information .

Reference : - James Gehrke, http:// The-Ethical-Dilemmas-of-Providing-or-Not-Providing-Reference&type=su&id=934024.

Article No.17

Pitts, D (2000) analyzed that the sitting at a local coffee shop enjoying the company of two business colleagues, a significant question was posed that caused time to stop for a brief moment: "Skipper, how does your organization measure leadership ROI in plain language for anexecutive to understand when considering hiring your team.

Reference: - Damian D. Pitts, http://ezinearticles.com /? Factors-that-Drive-positive-Impact-andROI-for-Executive-leadership-programs type=su&id=2599923.

Article No.18

Adebi, P (1990) analyzed that the Organizations face a tough challenge when key employeesexhibit disruptive behavior. Also known as top contributors, these employees possess specializedknowledge or skills that are critical to the success of the business or manage important clients or large accounts that might be lost if they left. The actions of key employees often have a directimpact on the bottom line.

Reference: - Peter Adebi, http:// ezinearticles.com/? Purning-Thorns-from-Roses-HRs-InManaging-Disruptive-Key-Employees&type=su&id=137384.

Article No.19

Miller, G (2007) analyzed that there are now increasing demands on members of the Board of Directors in companies to take steps to 'avoid risk', to be more 'aware' of how the company ismanaged and to do 'risk analysis'. The current trend in measuring the quality of governance inorganizations is to measure their success in applying good governance principles at the Boardlevel. However, we must remember that members of the Board do not lead or manage anorganization on a day-to-day basis and the overall general 'health' of the organization's integrityand ethics rests in the hands of the managers inside the company.

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Reference: - Gay Miller, http://ezinearticles.com/ ? Leadership-and-Integity-Ensuring-it-Exits-in-Your-company&type=su&id=2619108.

Article No. 20

Brown, J (1990) analyzed that the Physical attraction is a natural reaction, so it's no wonder youmight find yourself attracted to someone in the workplace. But is it a good idea to follow throughon those feelings? Sure, in a perfect world others would mind their own business leaving you towine and dine the object of your heart's desire with no worries. But the world isn't perfect, andwe need to get real: people will talk and there could be ramifications.

Reference: - J Blair Brown, http://ezinearticles.com/ ? Seemed-like-a good-idea-at-the-Time Whats-wrong-with-office-dating&type=su&id=132146.

CONCLUSION: -

Ethical conduct in business practice and HR procedure is no longer a matter of choicefor any organization and any company. In 2000, the European Union included a requirement for social and environment mental reporting in its fourth company law directive. Ethics are veryimportant in business as well as in HRM without ethics any company didnt work properly andeffectively. In HRM ethics is also very important because in HRM manager and worker doingvarious activity which is related with humanity so, ethics is important. All workers have sameright and duties so they work with them. Company has doing some CSR activity for the name of ethics. Whenever a company or organization required making a difficult decision especially onethat is ethically challenging, select an option that company would be comfortably work with thatdecision.

REFERENCE:

1) Brown, D. (2000) From Cinderella to CSR Management Vol.9, No. 16, P-21.2) Crowe, R. (2002) No. Scruples, London; Spiro press.3) Darnley, J. Harrick, E, Strickland, D and Sullivan, G (1991) HR ethics situation Human

Resource Management, Vol.26, pp 1- 12.4) Good aster, K,E (1984) Ethics in management Boston Harvard Business Book.

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5) Greenwood, M.R (2002) ethics and HRM: a review and conceptual analyzed.6) Klein, N (2002) No logo, Hammersmith Flamingo.7) Macintyre, A (1981) after virtue, London Duckworth.

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