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ABB 10902 HUMAN RESOURCE MANAGEMENT

Chapter 8: Ethics01 April 2015EASA B1.2 : Module xx.xx - 142Ethics and Fair Treatment at WorkThe Meaning of EthicsThe principles of conduct governing an individual or a group. The standards you use to decide what your conduct should be.Ethical behavior depends on a persons frame of reference.Ethical DecisionsNormative judgmentsMorality

2143The Wall Street Journal Workplace-Ethics Quiz

Source: Wall Street Journal, October 21, 1999, pp. B1B4. Reproduced with permission via Copyright Clearance Center.3144Specific Observed Unethical BehaviorsAbusive or intimidating behavior toward employees 21%Lying to employees, customers, vendors, or to the public 19%A situation that places employee interests over organizational interests 18%Violations of safety regulations 16%Misreporting of actual time worked 16%E-mail and Internet abuse 13%Discrimination on the basis of race, color, gender, age, or similar categories 12%Stealing or theft 11%Sexual harassment 9%Provision of goods or services that fail to meet specifications 8%Misuse of confidential information 7%Alteration of documents 6%Falsification or misrepresentation of financial records or reports 5%Improper use of competitors inside information 4%Price fixing 3%Giving or accepting bribes, kickbacks, or inappropriate gifts 3%Source: From 2005 National Business Ethics Survey: How Employees Perceive Ethics at Work, 2005, p. 25. Copyright 2006, Ethics Resource Center (ERC). Used with permission of the ERC, 1747 Pennsylvania Ave., N.W., Suite 400, Washington, DC 2006, www.ethics.org. Reprinted in O. C. Ferrell, John Fraedrich, and Linog Ferrell, Business Ethics (Boston: Houghton Mifflin, 2008) , p. 61.4 2008 Prentice Hall, Inc. All rights reserved.145Ethics and Fair Treatment at Work (contd)A behavior may be legal but unethical.A behavior may be illegal but ethical.A behavior may be both legal and ethical.A behavior may be both illegal and unethical.Ethics and the Law5 2008 Prentice Hall, Inc. All rights reserved.146What Shapes Ethical Behavior at Work?Individual FactorsOrganizational FactorsEthical Behavior At WorkEthical Policies and CodesThe Bosss InfluenceThe Organizations Culture6 2008 Prentice Hall, Inc. All rights reserved.147Employees and Ethical DilemmasQuestions employees should ask when faced with ethical dilemmas:Is the action legal?Is it right?Who will be affected?Does it fit the companys values?How will it feel afterwards?How will it look in the newspaper?Will it reflect poorly on the company?7 2008 Prentice Hall, Inc. All rights reserved.148What Is Organizational Culture?Organizational cultureThe characteristic values, traditions, and behaviors a companys employees share.How is culture is revealed? Ceremonial eventsWritten rules and spoken commandsOffice layoutOrganizational structureDress codesCultural symbols and behaviorsFigureheads8 2008 Prentice Hall, Inc. All rights reserved.149The Managers Role in Creating CultureClarify Expectations Use Signs and SymbolsUse StoriesProvide Physical SupportOrganize Rites and Ceremonies9 2008 Prentice Hall, Inc. All rights reserved.1410Human Resource Managements Role in Promoting Ethics and Fair TreatmentEthics TrainingReward and Disciplinary SystemsHRs Ethics and Compliance ActivitiesSelectionPerformance AppraisalWorkplace Aggression and ViolenceHRMRelated Ethics Activities10 2008 Prentice Hall, Inc. All rights reserved.1411HRM-Related Ethics ActivitiesSelectionFostering the perception of fairness in the processes of recruitment and hiring of people.Formal proceduresInterpersonal treatmentProviding explanationsSelection toolsTwo-way communication TrainingHow to recognize ethical dilemmas.How to use ethical frameworks to resolve problems.How to use HR functions in ethical ways.11 2008 Prentice Hall, Inc. All rights reserved.1412HRM-Related Ethics Activities (contd)Performance AppraisalAppraisals that make it clear that the company adheres to high ethical standards by measuring and rewarding employees who follow those standards.Reward and Disciplinary SystemsThe organization swiftly and harshly punishes unethical conduct. Workplace Aggression and ViolenceTaking care that HR actions do not foster perceptions of inequities that translate into dysfunctional behaviors by employees.12 2008 Prentice Hall, Inc. All rights reserved.1413HRM-Related Ethics Activities (contd)HRs Ethics Compliance ActivitiesComplying with the Sarbanes-Oxley Act of 2002Requires that the CEO and the CFO of publicly traded companies personally attest to the accuracy of their companies financial statements and that its internal controls are adequate.Increased the need for ethics training and verification of training.Firms are using online ethics training programs to comply with the acts requirements.13END OF PRESENTATION14