Human Resource Management (HRM) deals with work force management, manpower planning and other

employee related activities in an organization. Therefore, we can say that it is a special branch of
management where ethics play a crucial role. HRM concerns human issues, especially those related with
compensation, development, industrial relations, health and safety issues. However, there are sufficient
disagreements in managing HRM issues that stem from various quarters.

Ethics and Market System

Various types of market systems affect business and HR ethics differently and hence, business ethics
becomes negotiable. Occupations in which the market conditions do not favor the employees, it becomes
necessary to have government and labor union interventions for controlling the possible exploitation of
employees.
 Free market systems empower employees and the employers equally; negotiations are used to create
win-win situations for both of these parties. Government or labor union interventions are often harmful
in free market systems because they stall the operations and create unnecessary hindrances.
 With the growth of globalization, the concept of globalizing labor has gained importance. Trade unions
have ceased to exist and the role of HR as such in issues like employee management, desirable
policies and practices has become debatable topics.
 Many people now have the opinion that HR is nothing but a part of the stakeholders, which initiates
major strategic and policy decisions to divulge the organization and gear it towards profit making.
There cannot be a single opinion about ethics in HR that is completely convincing. Market is neither an ethical
institution nor an unethical one; no policies and procedures can govern and align the markets for human well-
being. However, the need of these policies and procedures cannot be denied or ignored because human
development is the ultimate aim of all human initiatives.

HRM Ethics
Out of all organizational issues or policies, ethical considerations are the most difficult to deal with. Issues
arise in employment, remuneration and benefits, industrial relations and health and safety.

Important Clusters of HRM related with Ethics

Some HRM issues are more important than the rest because we, as human beings, are more responsible for
the development and empowerment of the human resources involved in the operation and management of
organizations. Some of these issues are discussed below.
Cash and Compensation Plans
There are some general ethical issues pertaining to the employee salaries, executive perquisites and
compensations and the annual incentive plans, etc. The HR department is often under pressure to increase
the band of base salaries. There is always an increased pressure upon the HR function to pay out more
incentives to the top management and provide justification for the same to retain them.
Further, ethical issues arise when HR deals with long-term compensation and incentive plans by consulting
with the CEO or an external consultant. There is a pressure on the HR managers on favouring the interests of
the top management in comparison to that of the other employees and stakeholders.

Race, Gender, and Disability

There are several examples of organizations where, until recently, the employees were treated differently
based on the race, gender, origin, and their disability. This is not the case anymore since the evolution of laws
and a regulatory framework standardized for the employee behavior. In ethical organisations, the only factor of
appraisal is performance.

Employment Issues
Human resource managers face many dilemmas in hiring employees. One particular dilemma stems from the
pressure of hiring one, who has been recommended by a friend or someone from the family of a top
executive.
Another major dilemma arises due to employees who are later found to have fake documents. Both of the
issues are critical. In the first case, the person may have been trained and filling the position is critical. In the
second case, the person may be efficient in his work and have the right kind of attitude. Both the situations are
tough and HR managers face such cases day in and day out.

Privacy Issues
All human beings working with any organization have their personal life. An employee needs the organization
to directly or indirectly protect his/her personal life. This personal life includes things like the religious, political
and social beliefs etc.
There are many ethical issues in HR that are related to health and safety, restructuring and layoffs and
employee responsibilities. A debate is still going on whether some activities are ethically permitted and why
some are not. Layoffs, for example, are not considered unethical as they were thought of in the past.
We often talk about work ethics and employee contribution towards the success of an organization. It is
important to understand what we mean by these issues. Why some organizations have better work culture
than others?
Do modern organizations need to consider something specific to revive their work cultures? To learn all this,
we must look at the problem of ‘work ethic’ and then try to apply it in the culture of an organization.

What is Work Ethic?

The dilemma of ‘work ethic’ is ubiquitous, but it has come to the focus since the turn of the millennium as
scandals came up that have sunk the entire organizations, such as those associated with Enron and
WorldCom. Ethics has now become a compulsory subject in many professional courses. Still, people find it
perplexing to face the challenges they call ‘work ethic’.
Max Weber first coined the term work ethic in 1904. He said that it did not matter whether you were a
woodcutter or a farmer, you could still find solace if you did your duty perfectly. There are genuine virtues such
as hard work, frugality, honesty, perseverance and integrity that form the core of work ethic.
All the values included in the set of ‘work ethic’ require us to have a degree of self-sacrifice, or dedicating
ourselves to the task.
Something Bigger Than the Self
When an organization wants to talk about the issues around work ethic, they will first need to ask how the
organizational culture is contributing. People will only offer their best when they dedicate them to a cause
which they believe in. They must see something, which is bigger than they are.
Organizations will need to understand this unspoken need of employees for something bigger, if they really
want to see people come to work and give their best unconditionally. Hence, organizations need to define their
vision, mission and strategies, which motivate the people. It is known as the benevolent intent of the
organization.
People, who are motivated, often find passion to work for their companies. These people come to work with
an intent to let their organization achieve its goals, to support their peers and the organization for success, to
empower their juniors and to grow themselves.
When employees feel that they are working for a greater purpose, they will automatically seek to maximize
their own contribution. They feel their importance of their contribution to the organization. They will not feel
that they are just working for the sake of compensation and it is a big achievement for the organization.

Conducting Personal Business during Office Time

Employees often spend most of their weekday hours on the office job. Sometimes, they often may be tempted
to do personal business during office hours. Such practices can include setting up doctor's appointments
using company phones, making tour-package bookings using their employer's computers or sometimes
arranging calls for a side freelance business during office time.

The imminent ethical dilemma is quite clear – the employees are abusing their employer to conduct own
business on company time. However, what if you know that your children are ill? Is it then fine for you to go for
a doctor's appointment using company lines? The most common rule of thumb is, therefore, to check with the
HR managers or supervisors to get an idea of what counts as an offense according to the company policies.

Taking Credit for Others' Work

Employees often have to work in teams to make up marketing campaigns, or develop new products for sale or
fine-tune creative services, yet everyone in a group do not contribute equally to the final product. If two
members of a three-person team did all the work, will this mean that, these two people need to demand to
receive proper credit while pointing out that the particular member did not do anything.
This is a very simple yet a thorny question. Singling out co-workers in a negative light could stimulate dislike.
A similar thing could happen if all employees accept equal share of honor even when only a select few did the
real work.
The best way to resolve this kind of issues is not to let it happen in the first place. Team members should
ensure that all members of a team perform some tasks to help complete a project.

Harassing Behavior
Employees often do not understand what they should do if they see one of their co-workers harassing
another, either mentally, sexually or physically. Employees have to worry for their jobs while attempting to
report a superior for harassment. They may fear that they might be labelled a troublemaker if they report
inappropriate behavior.
The best way rests with the staff members who generally develop the company's employee handbook. It is
their job to tell employees that, they will not be penalized for reporting the harassing behavior or inappropriate
actions.

The Solutions to Workplace Dilemmas

Morality and value-based issues in the workplace are often difficult to handle when the employees need to
choose between the right and wrong by their own principles. Smart employers who know how to implement
workplace ethics policies are usually well prepared for the potential conflicts of interest of opinion, values and
culture in the workforce.
However, managing ethical issues requires a steady and cautious approach to matters, which can potentially
be dangerous or illegal.

Step 1: Documenting the Issues

 Develop a workplace policy depending on your company’s philosophy, mission statement and conduct
guidance.
 Incorporate the policy into your performance management program to hold employees accountable for
their actions.
 Alert the employees to their responsibilities to follow professional standards in their job performance
and interaction with peers and supervisors.
 Revise the employee handbook to include any missing policy and provide revised handbook to
employees.
 Obtain written acknowledgement from employees that they have received and understood the
workplace ethics policy.

Step 2: Training and Guidance for Up-Keeping Values

 Provide ethics training to employees.
 Provide instructions in learning how to address and resolve ethical dilemmas.
 Experiential learning, or role-play, may be used as an effective way to facilitate workplace ethics
training.
 Provide examples of workplace ethics simulations, such as misappropriation of company funds,
improper workplace relationships etc.

Step 3: Taking Effective Measures

 Designate an executive in-charge of handling employees’ concerns pertaining to workplace ethics.
 Consider whether your organization also needs an ethics hotline, a confidential benefit service for
employees to contact whenever they need.
  Confidential hotlines assure employees’ anonymity, which is a concern for “whistle blowing” actions.

Step 4: The Legal and Private Angle

 Research and apply federal, state and municipal labor and employment laws pertaining to whistle
blowing.
 Refrain from making suspension, termination decisions, in connection with whistle blowing or when
employee’s right is protected under whistle blowing laws or public policy.
 Look for legal advice for the employee reports of workplace ethics issues that may increase your
organization’s legal liability.
The Legal Angle
Under the Texas Whistleblower Act, public-sector employees may be entitled to damages if an employer
engages in retaliatory actions based on an employee who, in good faith, files a complaint related to workplace
ethics.
The Act grants "[a] public employee who claims that his suspension, termination, or other adverse personnel
action was in retaliation for his good faith reporting of violations of the law the right to sue for damages and
other relief."

Step 5: Keeping the Standard Intact

 Apply workplace policy consistently while addressing employee concerns about workplace ethics.
 Use the same standard in every circumstance, regardless of the perceived intention, seriousness or
the position of employees involved.
 Communicate the same rules for all employees – whether executive or front-line production roles.
 Approach every issue with equal interpretation of the company policy.

Business Ethics - Workplace Violence

Workplace violence is an action of physical violence, harassment, intimidation, or any other type of disruptive
behavior that takes place at the worksite. It includes all forms of behavior, starting from threats and verbal
abuse to various forms of physical assaults and even the act of homicide. Workplace violence can affect and
engage employees, clients, customers and/or visitors.

Risk Prone Areas

Violence can occur anywhere, anytime, and everyone is at risk. There are various factors that may increase
the risk of violence for select workers or at certain workplaces. The factors include jobs that involve
exchanging money with the public and places where people have to work with volatile, unstable people.
Places where one has to work alone or in isolated sites are also vulnerable.
Places of providing services and care, and places where alcohol is served may also increase the potential
occurrence of violence. Working late at night or in areas with high crime rates are also more prone to violence.
Workers who exchange money with the public, delivery drivers, healthcare professionals, customer service
agents, public service workers, law enforcement personnel, and those who work alone or in small groups are
at higher risks.

Preventive Measures
The risk of assault can be prevented or minimized if employers take appropriate precautions. A zero-tolerance
policy for workplace violence is a good way to start with.
By taking their worksites into consideration, employers can find out the methods for reducing the likelihood of
incidents occurring. A well-written and implemented Workplace Violence Prevention Program, combined with
engineering controls, administrative controls, and training can help to reduce workplace violence issues.
Types of Aggressive Behaviors
We can categorize aggressive behavior into three types −
 Disruptive Behavior − It disturbs a normal workplace environment. Disruptive behavior may include
screaming, swearing, waving arms, punching gestures, verbally abusing colleagues, and denying
response to a legitimate request for information.
 Threatening Behavior − It includes moving very close to a person aggressively or making oral or
written threats to people or property.
 Violent Behavior − It includes physical assaults, which may be unarmed or armed. It also includes
any action, a reasonable person would believe is potentially violent.
For example, throwing stuff, pounding on a desk or door, smashing workplace objects, or threatening to hurt
or shoot another person fall within violent behavior.
In general, how to deal with employee performance problems or interpersonal conflict?
 Quick intervention is the key. Letting problems faster is a recipe for violence.
 Checking with the firm’s HR department to find the proper role in handling the situation is desirable.
 Determining all the facts of the situation is desirable. This information should be secured from all
parties engaged in the conflict.
 Set clear expectations for need of quick resolution of the conflict
 When all parties have agreed for a solution, monitoring its implementation and getting re-involved is
necessary.

Warning Signs
Always be on the lookout for the following warning signs of probable workplace violence. The signs of
troubling behavior include −

 Being upset over a recent work or personal incident

 Suspicious behavior
 Appearing unprepared at work
 Withdrawing from normal work and after-work activities
 Yelling or being verbally abusive to others
 Not following a supervisor’s directions
 Blaming workers for problems at work or at home
 Being suspicious of others
 Having grudges
 Using alcohol or showing up to work drunk
 Having an inappropriate romantic attachment at workplace
 Following a supervisor or colleague
 Threatening to take violent action against a supervisor
 Developing an unusual fascination with weapons
 Being fined or booked for a violent act outside work
 Disclosing plans to hurt or attack people at work
Attitudes that might suggest potentially violent actions include −

 Desiring to stay alone

  Acting morally superior or self-righteous
 Having a sense of personal entitlement
 Getting abused, or feeling wronged, or victimized
 Believing that no other options exist except violence
Knowing about imminent violence and violent behaviors can help minimize the occurrence of workplace
violence.