Ethics in Human Resource Management

ETHICS IN HUMAN RESOURCE MANAGEMENT

                                                                Human resource management deals with manpower planning and development related activities in an organization. Arguably it is that branch of management where ethics really matter, since it concerns human issues specially those of compensation, development, industrial relations and health and safety issues. There is however sufficient disagreement from various quarters.

 there are different schools of thoughts that differ in their viewpoint on role of ethics in HR Management.the two groups of thought are:-

 1. One group of thought leaders believes that since in business, markets govern the organizational interests and these interests are met through people, the latter are therefore at the highest risk. They believe that markets claim profits in the name of stakeholders and unless we have protocols, standards and procedures the same will develop into a demon monopolizing markets and crushing human capital; HR ethics are become mandatory.

2. There is another group of ethicists inspired by neo-liberalism who believe that there are no business ethics apart from realization of higher profits through utilization of human resources. They argue that by utilizing human resources optimally, there is more value creation for the shareholders, organization and the society and since employees are part of the society or organization, they are indirectly benefited. Nevertheless ethics in human resource management has become a perennial debate of late!

Ethics provides guidelines to HR. which makes it a mandatory thing to follow.

the guidelines or the rules which ethics provides to HR are :-

1. Professional Responsibility

Like many other kinds of business people, human resources professionals must contribute to their organization with ethical integrity. Human resources professionals must also comply with the law, make ethical decisions, positively impact their organization and advocate for employees. They are required to commit to a high standard of professional responsibility. They must also, as a function of their profession, be familiar with many types of labor law.

2. Professional development

Human resources professionals should be regularly training to update their legal knowledge, to advance their understanding of the business they are working with, and to learn how to improve their practices. Most HR people pursue certifications and/or graduate degrees. Common practice is also to become an HR specialist in a particular field (like recruitment, payroll or benefits). HR generalists will need to continue to update their knowledge through workshops, education and training. Regardless, new HR professionals should assess their progress with their supervisors to find next steps.

3.Ethical leadership

Human resources professionals are tasked with being ethical and moral role models. They must be familiar with "right or right" decision-making. They must also know how to be leaders. This is especially important, due to the fact that a poor ethical decision made by an HR person can affect an entire organization.

4. Conflicts of interest

There are many different kinds of conflicts of interest, affecting almost all types of businesses, not only those on Wall Street. Favoritism, cronyism and nepotism are actually common if not actively discouraged by business professionals. Usually, producing an employee handbook can help to establish policies on some of these issues. Also, human resources employees should refrain from using bias themselves.

5. Use of Information

Confidentiality is a major issue within human resources. A great deal of information needs to be considered confidential, such as social security numbers, medical records and/or credit background checks. A lot of information in employee personnel files should be kept locked in HR. FER PA, HIPAA, the national labor relations act, and many other laws affect confidentiality, and these laws should be reviewed by HR professionals. Other than paperwork, electronic systems also need to be taken into consideration when it comes to confidentiality.  

   

 Importance of Ethics in HR Management

1. Legal Considerations

    Breaches of ethics in human resources can lead companies into a world of legal trouble, in both the civil and criminal arenas. Breaches of ethics in the HR department are more likely to be reported by victims to the Better Business Bureau, the Equal Employment Opportunity Commission or other regulatory agencies than those committed in other areas, such as product development or accounting. Companies with comprehensive ethics programs in place can avoid costly trouble regarding discrimination and hostile-work-environment issues, resulting in lower costs for litigation and out-of-court settlements.

2. Company Reputation

   In the business world, legal trouble can introduce additional challenges to employers, as news outlets and ethics watchdog organizations spread the word about companies' misdeeds. Discrimination issues, sexual harassment and unfair employment policies can land companies on the front page of consumer or business-focused publications, damaging a company's reputation among consumers, potential strategic partners and potential future employees.

3. Promoting Ethics

     A solid reputation as an ethical employer does not happen on its own. Savvy, ethics-conscious business owners put comprehensive ethics programs in place to display a firm commitment to ethics in every area of business, including human resources. Put HR ethics policies in place regarding discrimination, sexual harassment and the treatment of employees, and put each of your managers and supervisors through ethics training programs to make sure they are fully aware of your expectations. Most importantly, lead by example in your organization to create a culture of mutual respect and dignity, where ethical decision-making is valued and rewarded.

4. Employee Loyalty

              Treating employees ethically can garner long-term employee trust and loyalty, which conveys a range of distinct benefits to employers. Loyal employees gain more experience working with their employers, allowing them to master production processes and more fully understand the inner workings of the firm. This can increase employees' productivity and efficiency over time in addition to keeping recruiting and training costs under control.

Sellers of consumer goods can gain marketing advantages from loyal employees, as well. Loyal employees often act as champions for a company's products, purchasing goods from their employer and spreading positive word-of-mouth advertising to friends, family and acquaintances over the years.