Agam Grp EthicsPPT

7/30/2019 Agam Grp EthicsPPT

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The only virtue I claim is the truth and

non- violence

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Law

Morals

Moral issue Decision

Judgment


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Deontological

Theory

4HRM Environment

Utilitarianism

Stakeholder Theory

Discourse Theory


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5

Social Justice

Natural JusticeProcedural

Justice

Distributive

Justice


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EthicalIssues

EmployeeResponsib

ility

Employment issues

Cash and

incentiveplans

Privacyissues

Race anddisability

Restructur

ing andlayoffs

Performa

nceappraisal

Safety andhealth


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MostlyIndustrialWork is

hazardous

Extensive useof high speed

and noisymachinery

ProductionProcesses

requiringhigher

temperature

Increasingreliance onchemical

compounds


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Where does the issues arises

Construction

Undergroundand

underwatertunneling

Drilling Mining

Video DisplayTerminal and

ComputerKeyboards


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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


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Dilemma


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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.


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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


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Solutions

VoluntaryReductions inremuneration

Voluntary time-off

Redundancy

training

Supplementalemployees


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EMPLOYEE RESPONSIBILITY


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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.


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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


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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


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Incentive Plans


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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


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Pay influences employees

Reinforcement theory-Behavior that is rewarded

will be repeated.


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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


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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


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Types of incentive scheme Individual incentives

Group incentives


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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.


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Important Wage Incentive PlansHalsey PremiumPlan

Rowan Premium

Plan


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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


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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.


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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


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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.


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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


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Performance Appraisal


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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.


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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


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Ethical

Issuesin HRM

Race

Gender

Age

Disability


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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


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Employment issues


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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.


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Those most likely to be encountered bysupervisors are

absenteeism and tardiness

insubordination and uncooperativeness

alcohol and drug abuse

employee theft


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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.


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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


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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


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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.


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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.


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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.


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PRIVACY ISSUES

It is an issue to protect a personspersonal life from intrusive andunwarranted actions.


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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.


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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.


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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.


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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


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Managing Ethics

Be sure you are right, then go ahead!!


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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.


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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.


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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


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ETHICAL ISSUES


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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.


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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.


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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.


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Resolving Ethical Dilemmas

1. Obtain the relevant facts.

2. Identify the ethical issues from the facts.

3. Determine who is affected.


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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.


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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


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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.


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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


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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


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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


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(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


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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

Documents

Agam Grp EthicsPPT