Ethics is the backbone of an organization and its activities. Ethical performance management is defined as planning, managing, appraising, and monitoring employee performance based on principles of fairness, objectivity, transparency and good corporate governance. Ethical performance management builds a better society, cultivates high-performance teams, attracts and retains talent, maintains legal sanctity, improves reporting, and promotes a strong corporate image. However, it also faces ethical issues and dilemmas such as managerial malpractice, value conflict, moral mazes, workplace politics, and violation of ethics. Strategies for ethical performance management include education and training on ethics, employment accountability, communication, resolving value conflicts, and increasing employee engagement.

1. Ethics in Performance
Management
Sheetal Wagh

2. Ethics is the backbone of an organization and all its activities
Ethical performance management is defined as the ‘process
of planning, managing, appraising, and monitoring employee
performance based on the principles of fairness, objectivity,
transparency and good corporate governance

3. Ethics in Performance Management
• Ethics is a process of rational thinking aimed at establishing “What values to
hold and when to hold them”
• A Moral principle or a set of moral Values held by an individual or group
1. Ethical- of or Based on a system of moral beliefs about right and wrong, in
accordance with principles of professional Conduct.
2. Managerial Ethics - Standards and Moral Judgment managers use in their
Business.

4.  Ethical Behaviour
• Higher employee loyalty
• Encouragement of personal sacrifice
• Honouring of Organisational policies
• Reduction in Turnover
• Satisfied Customers
 Unethical Behaviour
• Manufacturing- Use of inferior quality of material
• Marketing- Misleading customers about product features or service differentiations.
• Distribution- Changing priority of booked orders without informing customers.
• Customer Care- Not keeping commitment on Guarantees.

5. Objectives and Significance of Ethics in
Performance Management
 Building a better society
 Cultivates high-performance teams
 Attracts and retains talent
 Maintains legal sanctity
 Improves reporting
 Promotes a strong corporate image

6. Ethical Issues and dilemmas in
Performance Management
 Managerial malpractice
 Value Conflict
 Moral Mazes
 Corporate goal achievement
 Employee engagement
 Managerial favoritism
 Peer Pressure
 Workplace politics
 Violation of ethics

7. Ethical Strategies in Performance Management
1. Education and training on ethics
2. Employment Accountability
3. Communication
4. Resolving value conflict
5. Increasing employee engagement
6. Culture of dissent