HRM_Ethics and Fair Treatment_Final.pptx

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    Principles of HRM

    Business Ethics

     Aradhna Malik (PhD)

     Assistant Professor 

    VGSoM, ! "hara#pur 

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    Sources

    $hrist%, R& ' $hrist%, G& (*)& Ethics ' hu+anresource +ana#e+ent& n S& Gil+ore ' S&

    illia+s (Eds&)& Human resource management

    (Indian Edition)& -e. Delhi/ 01ford 2ni3ersit%

    Press, 45645&

    $rane, A& ' Matten, D& (78)& Business ethics

    (3rd  Ed.) (South Asia Edition)& -e. Delhi/

    01ford 2ni3ersit% Press&Go+e96Me:ia, ;& R&, Balkin, D& B& ' $ard%, R& ;&

    (7)& Managing human resources (7 th Ed.)&

    -e. Delhi/ PH ;td&

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    Business ethics ' the la. ($rane ' Matten, 78)

    +ini+u+ accepta=le standards of =eha3ior&>

    ■ Business ethics is pri+aril% concerned .iththose issues not co3ered =% the la., or .here

    there is no definite consensus on .hether

    so+ethin# is ri#ht or .ron#& Be#ins .here thela. ends&

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    Definin# +oralit%, ethics and ethical

    theor% ($rane ' Matten, 78)■ Moralit% is concerned .ith the nor+s, 3alues,

    and =eliefs e+=edded in social processes

    .hich define ri#ht and .ron# for an indi3idualor a co++unit%&

    ■ Ethics is concerned .ith the stud% of +oralit%

    and the application of reason to elucidatespecific rules and principles that deter+ine ri#ht

    and .ron# for a #i3en situation&

    !hese rules are called ethical theories&

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    Relationship =et.een +oralit%,

    ethics ' ethical theor% ($rane ' Matten, 78)

    Moralit%

    Ethics

    rationali9es

    Moralit%?

    Ethics

    ?to

    produce

    ethical

    theor%? Ethical

    theor%

    ?that can

    =e applied to

    an% situationPotential

    solutions

    to ethical

    pro=le+s

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    h% is =usiness ethics i+portant($rane ' Matten, 7)

    ■ !he po.er and influence of =usiness in societ% is #reaterthan e3er =efore

    ■ Business has the potential to pro3ide a +a:or contri=ution toour societies in ter+s of producin# the products and ser3ices

    that .e .ant, pro3idin# e+plo%+ent, pa%in# ta1es, andactin# as an en#ine for econo+ic de3elop+ent, etc&■ Business +alpractices ha3e the potential to inflict enor+ous

    har+ on indi3iduals, co++unities and the en3iron+ent■ !he de+ands =ein# placed on =usiness to =e ethical =% its

    3arious stakeholders are constantl% =eco+in# +ore co+ple1and challen#in#&■ @e. =usinesspeople ha3e recei3ed for+al =usiness ethics

    education or trainin#■ Ethical 3iolations continue to occur in =usiness, across

    countries and sectors&

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    Differences in =usiness ethics across

    or#ani9ational t%pes ($rane ' Matten,7)Lar geCorporati on

    s

    S mallBusin

    esses

    CivilSoci etyOrganizat ions

    PublicSec torOrg aniz 

    ations

    Mai n pri 

    orit iesinad dressi 

    ngeth

    Financ ialintegrit y,em ployee /custome

     m pl oy eeissues

    !eliv ery o"missi on toclient s#integr ity o"tactic s#legiti macy$

    %uleo"la&,corr upti on,con" lictso"inter est# proc edur 

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    Glo=ali9ation ' =usiness ethics($rane ' Matten, 7)

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    Ethical i+pacts of #lo=ali9ation on different

    stakeholder #roups ($rane ' Matten, 7)St 

    a* ehol ders

    thical impacts o"

    globalization

    Shar e( holders

    +lobalization provides potential "or greater pro"itability, but alsogreater ris*s- Lac* o"regulation o" global"inancial mar*ets,leading to additional"inancial ris*s $instability-

     m pl oy ees

    Corporations outsource production todeveloping countries inorder to reduce costs inglobal mar*etplace .this provides obs, butalso raises the potential

    "or eploitation o"employees through poor

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    $orporations ' =usiness ethics($rane ' Matten,7)

    ■ "e% features of a corporation/◻ $orporations are t%picall% re#arded as artificial persons

    in the e%es of the la.◻ $orporations are nationall% o.ned =% shareholders

    ◻ Mana#ers ' directors ha3e a fiduciar% responsi=ilit% toprotect the in3est+ent of shareholders

    ■ !he de=ates/◻ ◻ ◻

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    !he role of ethical theor% ($rane ' Matten, 7)

    ■ Ethical a=solutis+/◻ !here are eternal, uni3ersall% applica=le +oral principles◻ Ri#ht and .ron# are o=:ecti3e Cualities that can =e rationall%

    deter+ined■ Ethical relati3is+/

    ◻ Moralit% is conte1t dependent and su=:ecti3e◻ !here are no uni3ersal ri#ht and .ron#s that can =e rationall%

    deter+ined it si+pl% depends upon the person +akin# thedecision and the culture in .hich the% are located

    ■ Pluralis+◻ Accepts different +oral con3ictions and =ack#rounds .hile at

    the sa+e ti+e su##estin# that a consensus on =asicprinciples and rules in a certain conte1t can, and should, =ereached

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    -or+ati3e ethical theories ($rane ' Matten, 7)

    ■ !he de=ates/◻ ndi3idual 3ersus institutional +oralit%◻ uestionin# 3ersus acceptin# capitalis+◻ Fustif%in# 3ersus appl%in# +oral nor+s

    ■ estern +odernist theories/ start .ith anassu+ption a=out the nature of the .orld, and+ore specific assu+ptions a=out the nature ofhu+an =ein#s& -or+all% pro3ide us .ith a fairl%uneCui3ocal solution to ethical pro=le+s&◻ -on conseCuentialist◻ $onseCuentialist/ Moral :ud#+ent is =ased on the

    outco+es, ai+s of #oals of a certain action& Also

    referred to as teleolo#ical theories

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    Ma:or nor+ati3e theories in =usiness ethics($rane ' Matten, 7)

    goism

    5til itar iani sm

    thi cso"duti es

    %ig htsand6ustice

    Co

    ntr ibut or s

     'da

    mSmit h

    6er 

    emyBentham,6ohnStu 

    artMill 

    )mm

    anu el7ant 

    6oh

    nLoc *e,6ohn%a& ls

    Focu s

    )ndiv idualdesir es orinter 

    ests

    Coll ecti ve&el" are

    !uti es

    %ig hts

    Mai 'ct/ Cate %es

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    $onseCuentialist theories ($rane ' Matten, 7)■ E#ois+/

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    E1a+ple of a utilitarian anal%sis in the case of

    child la=or ($rane ' Matten, 7) 'ction :;!oing thedeal 

     'ction

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    Principles of HRM

    Ethical aspects of HRM acti3ities

     Aradhna Malik (PhD)

     Assistant Professor 

    VGSoM, ! "hara#pur 

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    Sources$hrist%, R& ' $hrist%, G& (*)& Ethics ' hu+an

    resource +ana#e+ent& n S& Gil+ore ' S&

    illia+s (Eds&)& Human resource management

    (Indian Edition)& -e. Delhi/ 01ford 2ni3ersit%

    Press, 45645&

    $rane, A& ' Matten, D& (78)& Business ethics

    (3rd  Ed.) (South Asia Edition)& -e. Delhi/

    01ford 2ni3ersit% Press&Go+e96Me:ia, ;& R&, Balkin, D& B& ' $ard%, R& ;&

    (7)& Managing human resources (7 th Ed.)&

    -e. Delhi/ PH ;td&

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    Ethical aspects of HRM acti3ities($hrist% ' $hrist%, *)

    ■ histle=lo.in# /

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    Ethical aspects of HRM ($ontd&)($hrist% ' $hrist%, *)

    ■ E+plo%ee re.ards/ @air and o=:ecti3e s%ste+s

    ■ @airness ' @at6cat pa%/ ssues re#ardin# the

    e1or=itant salaries paid to senior officialsIconsultants in li#ht of the =enefit their

    contri=utions ha3e =rou#ht to the or#ani9ation

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    Ethical aspects of HRM ($ontd&)($hrist% ' $hrist%, *)

    ■ +plications of fairness in re.ard/◻ !ransparenc%◻ $o+prehensi=ilit% 3s& co+ple1it%◻ ECualit% of opportunit%/ @airness and Fustice/ Fohn Ra.ls◻

    ECual opportunit%/ Shareholder 3alue perspecti3e/

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    $onflictin# strate#ies for fair e+plo%+ent(Go+e96Me:ia, Balkin ' $ard%, 7)

    ■ @air e+plo%+ent 3s& Affir+ati3e action◻ @air e+plo%+ent/

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    Discri+ination (Go+e96Me:ia, Balkin ' $ard%, 7)

    ■ Meanin#/

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    Differences =et.een disparate treat+ent '

    ad3erse i+pact (Go+e96Me:ia, Balkin ' $ard%, 7)

    !isparate

    8reatment 

     'dverse)mpact 

    !irectdiscrimi nation

    )ndirectdiscrimination

    5ne9ual

    treatment 

    5ne9ual

    conse9u ences orresults

    !ecisio

    n rules&ith a

    !ecision

    rules&ith

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    Mana#in# discri+ination char#es(Go+e96Me:ia, Balkin ' $ard%, 7)

    ■ De+onstrate :o= relatedness as the reason for therespecti3e decision

    ■ Bona fide occupational Cualification/

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    Reasona=le acco++odation for differentl%

    a=led e+plo%ees (Go+e96Me:ia, Balkin ' $ard%, 7)■ ■ or unless the or#ani9ation is ph%sicall% or

    financiall% una=le to pro3ide reasona=leacco++odation e& eCuip+ent for paraple#ice+plo%ees in ndia

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     Affir+ati3e action plans(Go+e96Me:ia, Balkin ' $ard%, 7)

    Steps/■ 2tili9ation anal%sis/

     K factor a3aila=ilit% anal%sis deter+ines the percenta#e of

    protected class +e+=ers for/

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    Steps in +akin# affir+ati3e action

    plans continued (Go+e96Me:ia, Balkin ' $ard%, 7)■ Goals and ti+eta=les/ Should take into

    account/

    ◻ Si9e of underutili9ation◻ Ho. fast the .orkforce turns o3er 

    ◻ hether the .orkforce is #ro.in# or contractin#

    ◻ !%pes of actions e+plo%er intends to take

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    Steps in +akin# affir+ati3e action

    plans continued (Go+e96Me:ia, Balkin ' $ard%, 7)■ Action plans/

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    A3oidin# pitfalls in eCual e+plo%+ent

    opportunit% (Go+e96Me:ia, Balkin ' $ard%, 7)■ Pro3ide trainin#

    ■ Esta=lish a co+plaint resolution process

    ■ Docu+ent decisions

    ■ Be honest

    ■ Ask onl% for infor+ation %ou need to kno.

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     Thank You