Various ethical issues in HRM, with some practical examples and case study

1. Ethical Issues In HR
Jastinder Pal Singh
MBA (2015-17)
School of Management Studies, Punjabi University, Patiala

2. Ethics
• Ethics are moral principles that govern a person's
behavior or the conducting of an activity.
• Its about being loyal towards your duty, organization
and society in terms of physiological contract.

3.  Leadership
 Values
 Integrity
 Respect
 Loyalty
 Concern
Characteristics of Ethics

4. Ethical culture in work life
• Honest communication
• Fair treatment
• Special consideration
• Fair competition
• Responsibility to organization
• Corporate social responsibility
• Respect for law

5. HR Dilemmas
• Right v. Right “Selecting the best option”.
• It’s right to tell the truth, but it is also right to be
kind and considerate of peoples’ feelings and
emotions.
• It’s right to apply rules and procedures equally,
without favoritism, but it
is also right to give special
treatment to hard-working,
dependable, and productive
employees.

6. • Public image
• Values: the cementing force
• Facilitates decision making
• Ethics and profits walk hand
in hand
• Low limits, Ethics stimulate
• Contribution to human
welfare
• Protection of social interest
• Recognition of neighbors and
competitions
• Respect to Employees
• Balancing all stake holders’
interests
Need of Ethics in HR

7. Types of corruption:-
– Nepotism
– Conformity
– Bribery
– Embezzlement
– Kickbacks
– Godfatherism.
Ethical Issues (Unethical Practices) in HR
Corruption

8. • Placing misleading advertisements for jobs.
• Misrepresenting the requirements of a particular position.
• Responding to a hiring manager who has asked you to find
a way “around” not hiring a qualified candidate for
discriminatory purposes.
• Not reviewing candidates based on their merits.
• Matching a job with person or vice-versa
• Role of out side pressures in selection of wrong ones
• Selecting more than required number of people
Recruitment & Selection
Ethical Issues (Unethical Practices) in HR

9. Training
• When training need of employee is
identified on the basis of a single or
nebulous factor.
• When there is absence of relativity
between training purposes and
training output.
• When the trainees consider attending
training programmes merely as a
change and a medium of gaining
pleasure.
• When there is absence of feedback
on training
• When training is considered as an
instrument of individual growth by
employees.
• When training programme has been
‘finished’ and not ‘completed’.
• When training infrastructure is not
fully utilised.
• When a trainer comes unprepared
and completes his task in a hampy
campy manner.
• When trainers are selected for
training programme under pressure
of favoritism or nepotism.
• When the feedback about the
training programme is featured as
‘dull’ ‘monotonous’ and ‘useless’.
Ethical Issues Arises :
Ethical Issues (Unethical Practices) in HR

10. Performance Appraisal
• Central tendency, halo effect, mirror personality
etc
• Method of appraisal is not proper
• Superfluous reporting of his traits to employee is
also unfair and unjust
Ethical Issues (Unethical Practices) in HR

11. Salary and Wage Administration
• Paying same remuneration to one who is serious,
sincere and hardworking and also to one whose
contribution is least.
• Loss suffering company being expected to declare
bonus.
• Paying at different rate
to man and a woman doing
the same kind of work.
• Getting an employee
signed on full pay and
actually paying him less
than that.
Ethical Issues (Unethical Practices) in HR

12. Privacy
It is ethical when HR manager do not disclose
publically
• Background Information
• Drug/Medical Testing Reports
• Monitoring on/off the job
• Employee records
Ethical Issues (Unethical Practices) in HR

13. Effective dismissal
(Factors)
– Legal and valid reasons for dismissal
– Explain the reasons
– Be firm with your decision
(Process)
—Informal action
—Disciplinary meeting
—First written warning
—Second written warning
It is not unethical when
Ethical Issues (Unethical Practices) in HR

14. To Create Ethical discipline
• Job description is clear
• ”What to do ” attitude compared to ”Don’t do
this” attitude
• Top managers example

15. Your senior officer highly recommend for a person during selection process, but that
person unfit for that job, what you will do ?
Will you select that person directly for happiness of your senior ?
OR Put that person in recruitment process with others ?
Some Practical Examples
Solution:
If the candidate does not meet the minimum criteria for selection go back to your
senior, provide evidence of the selection scores and feedback, state the reasons
why the candidate cannot be recruited and ask him/her to propose an alternative
candidate
You are told to fake appraisal documents to help someone get promoted. What do
you do?
Solution:
Introduce stringent procedures which require documents to be approved by a
number of different stakeholders so documents cannot be altered without
questions being asked.

16. Measures To control Unethical Practices
• The establishment of ethics codes
• Improved remuneration
• Administrative reform
• Compulsory disclosure of assets and gifts
• Policy and programme rationalisation
• Introduction of core values and competencies
• Ethical conduct by public servants
• Senior managers increasing and enforcing ethical awareness
and taking action against unethical conduct.

17. The Retrenchment Drama, Jet
Airways (India)
• The case is about the
retrenchment drama that
unfolded in one of India’s
leading aviation companies, Jet
Airways (India) Limited in Oct
2008.
• More than thousand
employees were laid off.
• It was a part of major Cost-
cutting exercise to tackle
Global slowdown and price
hike of Aviation fuel.
Case Study

18. Events of Case
• Oct 16, 2008, Jet announced that it would lay off nearly 1,100 of its
staffs to streamline operation.
• A day after it had already laid off around 800 of its cabin crew
members.
Simultaneously announced second phase of lay-off of 1100
employees, mainly from departments like flight attendant, cockpit
crew etc.
• Amidst great furor and opposition by various organizations and
political parties, Naresh Goyal , chairman of Jet, reinstated the
employees a day later the great emotional drama.
• November 2008, Jet decided on a 20% cut in the salaries of its
pilots, engineers, and some other staffs.
Case Study

19. Unethical Practices
• Employees were FIRED with no PRIOR NOTICE
• The entire force of unconfirmed staff was
being laid off on a 30-day compensation
package
• Company took action only against lower staffs.
Case Study

20. Why it was wrong
• The very existence of any company is because
of its employees.
• Company keeps on focusing on customer
satisfaction when its own people are so highly
dissatisfied.
• Employees are more than just-a-resource.
Case Study

21. Some most crucial questions unanswered….
• Where would those 1900 employees go?
• Why took action only against lower grade
staffs?
• Why Senior management was very less
affected?
Case Study
• What would be the
future of those students
currently taking courses
in cabin crew etc?

22. Thank you