7/30/2019 Agam Grp EthicsPPT
1/68
7/30/2019 Agam Grp EthicsPPT
2/68
The only virtue I claim is the truth and
non- violence
2
7/30/2019 Agam Grp EthicsPPT
3/68
3
Law
Morals
Moral issue Decision
Judgment
7/30/2019 Agam Grp EthicsPPT
4/68
Deontological
Theory
4HRM Environment
Utilitarianism
Stakeholder Theory
Discourse Theory
7/30/2019 Agam Grp EthicsPPT
5/68
5
Social Justice
Natural JusticeProcedural
Justice
Distributive
Justice
7/30/2019 Agam Grp EthicsPPT
6/68
EthicalIssues
EmployeeResponsib
ility
Employment issues
Cash and
incentiveplans
Privacyissues
Race anddisability
Restructur
ing andlayoffs
Performa
nceappraisal
Safety andhealth
7/30/2019 Agam Grp EthicsPPT
7/68
7/30/2019 Agam Grp EthicsPPT
8/68
MostlyIndustrialWork is
hazardous
Extensive useof high speed
and noisymachinery
ProductionProcesses
requiringhigher
temperature
Increasingreliance onchemical
compounds
7/30/2019 Agam Grp EthicsPPT
9/68
Where does the issues arises
Construction
Undergroundand
underwatertunneling
Drilling Mining
Video DisplayTerminal and
ComputerKeyboards
7/30/2019 Agam Grp EthicsPPT
10/68
Health Issues
Stress causing trauma and disorder rising productivity pressure
Escalating job demands
Wrist pain by meat cutters, keyboard operators, Super
market checkers
Legislations by govt. to compensate victims
Solution
7/30/2019 Agam Grp EthicsPPT
11/68
Dilemma
7/30/2019 Agam Grp EthicsPPT
12/68
RESTRUCTRING AND LAYOFF ISSUES
Restructuring and consequent layoffs have
become relevant because of poor management .
If restructuring requires to close a plant, in this
case layoffs are ethically important.
7/30/2019 Agam Grp EthicsPPT
13/68
Restructuring
Parts of the organization are
significantly over or under staffed
Workforce productivity is
stagnant or deterioratingMorale is deteriorating
ADVANTAGES
Improved productivity and
morale
Reduced personnel turnover
Increased organizational
effectiveness and efficiency
Layoff
Loss of wages and benefits
Loss of role as worker and
provider
Loss of dignity and self
esteem
Loss of trust
Loss of the pattern of daily
life
7/30/2019 Agam Grp EthicsPPT
14/68
Solutions
VoluntaryReductions inremuneration
Voluntary time-off
Redundancy
training
Supplementalemployees
7/30/2019 Agam Grp EthicsPPT
15/68
EMPLOYEE RESPONSIBILITY
7/30/2019 Agam Grp EthicsPPT
16/68
Rights vs. Responsibilities
RIGHTS-are owed to people according to some legalsystem, social convention or ethical theory.
RESPONSIBILITIES- something for which oneis responsible, a duty ,obligation, or burden.
7/30/2019 Agam Grp EthicsPPT
17/68
Responsibilities are:-
Be compassionate
Honor patient wishes
Maintain confidentiality
Adhere to safe practice
Adhere to professional standards Maintain professional relationships
Report unethical behavior
Protect patients from harm
Report patient abuse
7/30/2019 Agam Grp EthicsPPT
18/68
Contd
Do early homework- understand work and determine skillsrequired
Plan with manager- time management and meeting deadlines
Use available resources and take responsibility
Participation- good team player
Be punctual and regular
Cost effectiveness
Creative thinking and innovative
7/30/2019 Agam Grp EthicsPPT
19/68
Incentive Plans
7/30/2019 Agam Grp EthicsPPT
20/68
Incentive Scheme
An incentive scheme is a plan or program to
motivate individual or group performance. An
incentive program is most frequently built on
monetary rewards but may also include a
variety of non-monetary rewards or prizes
7/30/2019 Agam Grp EthicsPPT
21/68
Pay influences employees
Reinforcement theory-Behavior that is rewarded
will be repeated.
7/30/2019 Agam Grp EthicsPPT
22/68
Expectancy Theory
ExpectancyIf I attempt this level of
performance, am I likely to
succeed?
InstrumentalityIf I achieve this level of
performance, am I likely to be
rewarded?
ValenceWhat value do I place on the
rewards available to me?
Motivational Force =
E * I * V
7/30/2019 Agam Grp EthicsPPT
23/68
Performance Related Pay (PRP)"Performance Related Pay" is the formalizing of the linkbetween personal performance and remuneration. It isan attempt to bring the traditions of "piece-work"associated with the Agricultural Age to the late stages
of the Industrial Age and the early stages of theInformation Age.
Objectives of PRP:
Control over income
Engagement/Role ownership
Performance Management
7/30/2019 Agam Grp EthicsPPT
24/68
Types of incentive scheme Individual incentives
Group incentives
7/30/2019 Agam Grp EthicsPPT
25/68
Individual incentive schemes Individual payment schemes include payment by results, piecework and
bonuses, work measurement and appraisal and performance related pay
Many sectors of employment use pay systems that contain direct links to
individual performance and results. On an individual basis this may be via:
1. payment by results (PBR) e.g. bonus, piecework, commission2. work-measured schemes and pre-determined motion time systems
3. measured day work (MDW)
4. appraisal/performance related pay
5. market-based pay
6. competency and skills based pay.
7/30/2019 Agam Grp EthicsPPT
26/68
Important Wage Incentive PlansHalsey PremiumPlan
Rowan Premium
Plan
7/30/2019 Agam Grp EthicsPPT
27/68
Halsey Premium PlanA wage incentive program established as
the first in the US industry. The incentive
program was created by Frederick A.Halsey as a method for improving the
straight piece rate system in an effort to
reduce wage rate cutting by management
7/30/2019 Agam Grp EthicsPPT
28/68
Rowan Premium PlanIn the Rowan Plan, the time saved is expressed as a
percentage of the time allowed, and the hourly rate of
pay is increased by that percentage so that totalearnings of the worker are the total number of hours
multiplied by the increased hourly wages. The plan
aims at ensuring the permanence of the premium rate,
which is often cut by the employer when the workersefficiency increase beyond a certain limit.
7/30/2019 Agam Grp EthicsPPT
29/68
BenefitsTo business retain existing employees
increase their motivation, morale
and loyalty
boost productivity
link individual and business
performance
focus employees on achieving
targets build teamwork
Indirect benefit, e g free health
assessments may reduce absences.
To employees enhance the quality of
working life
reward employee efforts
add value to the
employment contract
7/30/2019 Agam Grp EthicsPPT
30/68
Group IncentivesCompensation system which links pay to a
group's combined performance measured by
reduction in costs, increase in productivity,
progress in attaining firm's objectives, etc.
7/30/2019 Agam Grp EthicsPPT
31/68
Advantages & DisadvantagesAdvantages Better co-operation among workers
Less supervision
Reduced Absenteeism
Leads to improved communication and employee relations.
Shorter training time
Disadvantages Weakens relationship b/w individuals effort and performance. Intra-group conflict
The incentive may not be strong enough to serve its purpose
7/30/2019 Agam Grp EthicsPPT
32/68
Performance Appraisal
7/30/2019 Agam Grp EthicsPPT
33/68
Ethical Dilemma 1:Use of Trait Oriented or SubjectEvaluation Criteria Favoritism or Vengeance
Ethical Dilemma 2: Problems in the writing of performance standardsand measurement indicators. quantitative, time-oriented, realistic, and job-related
Easier said then done
rewards/bonuses dispensed on the basis of 'outstandingperformance' (as measured qualitatively) can go to reallyinadequate performers who have the 'good numbers', whilebypassing the truly effective performer.
7/30/2019 Agam Grp EthicsPPT
34/68
Ethical Dilemma 3:The use of different PA systems within the sameorganization From an ethical standpoint, cet. par., it is unfair to rate
one group of people objectively and another groupsubjectively.
Ethical Dilemma 4: How are the results of PA to be used?
subject to abuse
Ethical Dilemma 5: Who determines the objectivestandards? designing of appropriate standards or objectives
for specific jobs issue of fairness
7/30/2019 Agam Grp EthicsPPT
35/68
Ethical
Issuesin HRM
Race
Gender
Age
Disability
7/30/2019 Agam Grp EthicsPPT
36/68
Ethical Methods to safeguard employee against
prejudice of Race, Gender, Age and Disability
Monitor the principles and norms of enterprise toendure reflection of values(TATA)
Monitor, selection, reward, devt and appraisal systems
Vigorously defend/against violations
Protect women against workplace exploitation
7/30/2019 Agam Grp EthicsPPT
37/68
Employment issues
7/30/2019 Agam Grp EthicsPPT
38/68
Common Types of Problem BehaviorIn general, problem employees fall into two
categories:
employees causing problems- for example bystarting fights or leaving earlyemployees with problems -such as an employee
whose money worries are a distraction from
work.
7/30/2019 Agam Grp EthicsPPT
39/68
Those most likely to be encountered bysupervisors are
absenteeism and tardiness
insubordination and uncooperativeness
alcohol and drug abuse
employee theft
7/30/2019 Agam Grp EthicsPPT
40/68
1. Absenteeism and tardiness
This is an expensive problem.
An absent employee may be paid for the time off
replaced with a less productive person
Also, missing work is often a sign of a deeper
problem. such as
a family crisis,
anger about something at work, or
plans to leave the organization.
7/30/2019 Agam Grp EthicsPPT
41/68
2. Insubordination and
Uncooperativeness Insubordination: Deliberate refusal to do what the
supervisor or other superior asks.
Poor performance may result from not understanding
how to do something. This is corrected by training.
Sometimes an employee performs poorly or breaks
rules because he or she chooses to do so.
This may be uncooperative behavior or deliberate
refusal to do what he or she is told
7/30/2019 Agam Grp EthicsPPT
42/68
Many kinds of negative behavior fall into the following
categories:
General poor attitude
criticizing,
complaining, and showing dislike for the supervisor and organization
Making an art out of doing as little as possible
Spending most of the day
socializing,
joking around, or
moving as slowly as possible
7/30/2019 Agam Grp EthicsPPT
43/68
3. Alcohol and drug abuse Some poor performance such as unsafe practices,
sloppy work, or frequent absences may be a
symptom of alcohol or drug abuse on or off the
job. These employees are expensive to the
organization.
7/30/2019 Agam Grp EthicsPPT
44/68
They can hurt the organization by lower
productivity.
They are more likely
to quit,
to cause accidents,
to have a higher use of disability and sick
benefits, and
to increase insurance costs.
7/30/2019 Agam Grp EthicsPPT
45/68
4. Employee theft Employees take companies inventory, supplies,
and money as well as steal time by giving the
employer less work than they are paid for. A supervisor should take measures to prevent and
react to theft.
7/30/2019 Agam Grp EthicsPPT
46/68
PRIVACY ISSUES
It is an issue to protect a personspersonal life from intrusive andunwarranted actions.
7/30/2019 Agam Grp EthicsPPT
47/68
Privacy has emerged as an important social as
well as organizational concern.
Privacy has emerged as an issue because of fast
expandinginformation technology that hasmade it possible to intrude into the privacy of
individuals.
7/30/2019 Agam Grp EthicsPPT
48/68
Concept of Privacy
Definedas control over transactions between personsand others.
Aim- to enhance autonomy or to minimize vulnerability. 2 main theories of privacy
one that focuses on privacy as a process of regulating
levels of social interaction
other that focuses on the states and functions of privacy.
7/30/2019 Agam Grp EthicsPPT
49/68
Employee Privacy
The main issue of employee privacy relates to the employeerecords maintained by organization .
These are maintained in relation to
1. Selection2. Placement
3. Promotion
4. Assessment etc.
While the employees may approve such practices, there is aconcern about the handling and us of such information.
7/30/2019 Agam Grp EthicsPPT
50/68
Employee Privacy
Few facts related to privacy issues are:
The American Management Association found
that :-
19 % - companies taped phone conversations
15% - stored and reviewed e-mails 34% - used video cameras to monitor employee
activities
7/30/2019 Agam Grp EthicsPPT
51/68
Managing Ethics
Be sure you are right, then go ahead!!
7/30/2019 Agam Grp EthicsPPT
52/68
Managing ethics
1. Recognize that managing ethics is a process. Ethics is a matter of values andassociated behaviors. Values are discerned through the process of ongoingreflection. Therefore, ethics programs may seem more process-oriented than
most management practices. Managers tend to be skeptical of process-oriented
activities, and instead prefer processes focused on deliverables with
measurements.
2. The bottom line of an ethics program is accomplishing preferred behaviorsin the workplace.As with any management practice, the most importantoutcome is behaviors preferred by the organization. The best of ethical values
and intentions are relatively meaningless unless they generate fair and just
behaviors in the workplace.
3. The best way to handle ethical dilemmas is to avoid their occurrence in thefirst place.
7/30/2019 Agam Grp EthicsPPT
53/68
4. Make ethics decisions in groups, and m ake decisions public, asappropriate. This usually produces better quality decisions by including diverseinterests and perspectives.
5. Integrate ethics management with other m anagement practices.6. Use cross-functional teams when developing and implementing the ethicsmanagement program. Its vital that the organizations employees feel a sense ofparticipation and ownership in the program if they are to adhere to its ethical
values. Therefore, include employees in developing and operating the program.
7. Value forgiveness. People are more sensitive therefore increase in no. ofethical issues. Consequently, there may be more occasions to address peoples
unethical behavior. The most important ingredient for remaining ethical is
trying to be ethical. Therefore, help people recognize and address theirmistakes and then support them to continue to try operate ethically.
7/30/2019 Agam Grp EthicsPPT
54/68
8. Note that trying to operate ethically and making a few mistakes is better thannot trying at all. Some organizations have become widely known as operating in ahighly ethical manner, e.g., Ben and Jerrys, Johnson and Johnson, Aveda,
Hewlett Packard, etc. Unfortunately, it seems that when an organization achieves
this strong public image, it's placed on a pedestal by some business ethics writers.
It's the tryingthat counts and brings peace of mind -- not achieving an heroic
status in society
7/30/2019 Agam Grp EthicsPPT
55/68
ETHICAL ISSUES
7/30/2019 Agam Grp EthicsPPT
56/68
Cash and Compensation PlansIssues pertaining to salaries, executive perquisites and the annualincentive plans etc.
Pressure on HR- both waysFurther ethical issues crop 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
pressure on favouring the interests of the top management in
comparison to that of other employees and stakeholders.
7/30/2019 Agam Grp EthicsPPT
57/68
Race, gender and DisabilityIn many organisations till recently the employees weredifferentiated on the basis of their race, gender, origin and their
disability.
Differentiating factor is performance!In addition the power of filing litigation has made put
organisations on the back foot. Managers are trained for aligning
behaviour and avoiding discriminatory practices.
7/30/2019 Agam Grp EthicsPPT
58/68
Employment IssuesHiring issue- 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:
First Case-the person has been trained and the position is critical.
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.
7/30/2019 Agam Grp EthicsPPT
59/68
Resolving Ethical Dilemmas
1. Obtain the relevant facts.
2. Identify the ethical issues from the facts.
3. Determine who is affected.
7/30/2019 Agam Grp EthicsPPT
60/68
Resolving Ethical Dilemmas
4. Identify the alternatives available to the
person who must resolve the dilemma.
5. Identify the likely consequence
of each alternative.
6. Decide the appropriate action.
7/30/2019 Agam Grp EthicsPPT
61/68
Know the PrinciplesIn ethical decision making there are three basic principles that can
be used for resolution of problem. These three principles are thatof intuitionism, moral idealism and utilitarianism.
1) Principle of intuition
2) Principle of moral idealism-abide by the rule of law without anyexception.
3) Principle of utilitarianism - There is no clear distinction
between what is good and what is bad; the focus is on the
situation and the outcome
7/30/2019 Agam Grp EthicsPPT
62/68
Balance Sheet ApproachIn balance sheet approach, the manager writes down the pros and
cons of the decision. This helps arrive at a clear picture of things and
by organizing things in a better way.
Engage People Up and Down the HierarchyOne good practice is to announce ones stand on various ethical issues
loudly such that a clear message to every member of the organizationand to those who are at the greater risk of falling prey to unethical
practices.
Debate Moral ChoicesBefore taking a decision, moral decisions need to be thought uponand not just accepted blindly. It is a good idea to make hypothetical
situations, develop case studies and then engage others in
brainstorming upon the same.
7/30/2019 Agam Grp EthicsPPT
63/68
7/30/2019 Agam Grp EthicsPPT
64/68
Solution for Ethical Dilemma
1
Develop an objective-based system(specific, quantifiable, time-oriented
objectives for the rating period)
Develop a standards-based system (keyperformance standards for a job as
determined from a job analysis),
supplemented by a valid, reliablemeasure of subjective job factors suchas BARS (Behaviorally Anchored RatingScales) (Barrett, 1966 and Campbell et
al, 1970). The BARS technique usessome form of job analysis to determine
what specific behaviors, andsubsequently what behavioraldimensions actually constitute job
performance (Smith and Kendall,1963)
Back
7/30/2019 Agam Grp EthicsPPT
65/68
Solution for Ethical Dilemma
2
Much time and care must be placed
on writing performance standardsthat accurately and fairly reflect
both the quantitative and thequalitative dimensions of the job
Back
7/30/2019 Agam Grp EthicsPPT
66/68
Solution for Ethical Dilemma 3
The resolution to this dilemma is todevelop consistency through the
establishment of organization-wide
objectives or the implementationof a standards-based system
Back
7/30/2019 Agam Grp EthicsPPT
67/68
Solution for Ethical Dilemma
4
(1) Adequate steps
must be taken toensure that anappropriate
amount of time isspent in developing
performancestandards;
(2) Steps must betaken to ensure
that the standardsare objective,
reliable, and valid;
(3) Informationgathered from PA
should not be usedcapriciously or
arbitrarily(measures toprotect the
employee fromsuch abuse would
include amechanism for
grievance and andombudsman's
office); and
(4) Each employeemust be informedas to how the
information fromthe PA is to be
used.
Back
7/30/2019 Agam Grp EthicsPPT
68/68
Solution for Ethical Dilemma 5
The optimal solution seems to be the useof 'knowledge experts' (both subordinatesand superiors) who collectively specify the
key dimensions of job performance and
measurements of those dimensions
Back