Chapter 14

Ethics, Justice,
and Fair Treatment
in HR Management

Part Five | Employee Relations

Copyright 2011 Pearson Education, Inc.
publishing as Prentice Hall

PowerPoint Presentation by Charlie Cook

The University of West Alabama

LEARNING OUTCOMES
1. Explain what is meant by ethical behavior at work.
2. Discuss important factors that shape ethical behavior
at work.
3. Describe at least four specific ways in which HR
management can influence ethical behavior at work.
4. Employ fair disciplinary practices.
5. List at least four important factors in managing
dismissals effectively.

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142

Ethics and Fair Treatment at Work

The Meaning of Ethics
The 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.

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TABLE 141

Specific Observed Unethical Behaviors

Abusive 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%

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144

Ethics and the Law

A behavior may be
legal
but unethical.

Ethics and
Behaviors

A behavior may be
illegal but ethical.
A behavior may be
both legal and ethical.
A behavior may be both
illegal and unethical.

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145

FIGURE 142

Perceptions of Fair Interpersonal Treatment Scale

What is your organization like most of the time? Circle Yes if the item describes your organization,
No if it does not describe your organization, and ? if you cannot decide.
IN THIS ORGANIZATION:
1. Employees are praised for good work

Yes

No

2. Supervisors yell at employees (R)

Yes

No

3. Supervisors play favorites (R)

Yes

No

4. Employees are trusted

Yes

No

5. Employees complaints are dealt with effectively

Yes

No

6. Employees are treated like children (R)

Yes

No

7. Employees are treated with respect

Yes

No

8. Employees questions and problems are responded to quickly

Yes

No

9. Employees are lied to (R)

Yes

No

10. Employees suggestions are ignored (R)

Yes

No

11. Supervisors swear at employees (R)

Yes

No

12. Employees hard work is appreciated

Yes

No

13. Supervisors threaten to fire or lay off employees (R)

Yes

No

14. Employees are treated fairly

Yes

No

15. Coworkers help each other out

Yes

No

16. Coworkers argue with each other (R)

Yes

No

17. Coworkers put each other down (R)

Yes

No

18. Coworkers treat each other with respect

Yes

No

Note: R = the item is reverse scored.

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146

FIGURE 143

Some Areas Under Which Workers Have Legal Rights

Leave of absence and vacation rights

Employee distress rights

Injuries and illnesses rights

Defamation rights

Noncompete agreement rights

Employees rights on fraud

Employees rights on employer policies

Rights on assault and battery

Discipline rights

Employee negligence rights

Rights on personnel files

Right on political activity

Employee pension rights

Union/group activity rights

Employee benefits rights

Whistleblower rights

References rights

Workers compensation rights

Rights on criminal records

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147

What Influences Ethical Behavior

At
Work?
Ethical
behavior starts with moral awareness.
Managers strongly influence ethics by carefully cultivating
the right norms, leadership, reward systems, and culture.
The most powerful morality comes from within.
Offering rewards for ethical behavior can backfire.
Employers should punish unethical behavior.
The degree to which employees openly talk about ethics
is a good predictor of ethical conduct.
People tend to alter their moral compasses when
they join organizations.

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148

What Determines Ethical Behavior

at Work?
Individual
Factors

Organizational
Culture

Ethical Work
Behaviors

Ethical Policies
and Codes

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Organizational
Factors

The Bosss
Influence

149

What Is Organizational Culture?

Organizational Culture
The characteristic values, traditions, and

behaviors a firms employees share

How Managers Can Support an Ethical Culture

Clarifying expectations with respect to critical values
Providing physical support through the use of ethical

managerial values

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Fostering Ethical Work Behaviors

What Employers Can Do

Provide manager
and employee
ethics training

Establish
whistleblower
policies

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Adopt a strong
ethics code

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How Managers Use Personnel

Methods To Promote Ethics and
Fair Treatment
HRM Practices that
Promote Ethics

Emphasizing
ethics and
fairness in
personnel
selection

Providing
mandatory
employee
ethics training

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Ensuring fair
and objective
performance
appraisals

Disciplining
all instances
of unethical
conduct

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HRM-Related Ethics Activities

Selection
Fostering the perception of fairness in the processes

of recruitment and hiring of people:

Formal hiring procedures that test job competencies

Respectful interpersonal treatment of applicants

Feedback provided to applicants

Training Employees
How to recognize ethical dilemmas
How to use ethical frameworks to resolve problems
How to use HR functions in ethical ways

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HRM-Related Ethics Activities

(contd)
Performance Appraisal
Appraisals that make it clear that the company adheres

to high ethical standards by measuring and rewarding

employees who follow those standards.

Standards are clearly defined.

Employees understand the basis for appraisals.

Appraisals are objective.

Reward and Disciplinary Systems

The organization swiftly and harshly punishes unethical

conduct.

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Fostering Employees
Perceptions of Fairness
Perceptions of fair treatment
depend on:

Involvement in
decisions

Understanding
through
explanation

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Setting
expectations and
standards

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Managing Employee Discipline

Fair and Just Discipline Process

Clear rules
and regulations

A system of
progressive
penalties

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A formal unbiased
appeals process

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FIGURE 147
Disciplinary
Action Form

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1417

Managing Dismissals
Dismissal
Involuntary termination of an employees employment

with the firm.

Terminate-at-Will Rule
Without a contract, the employee can resign for any reason,

at will, and the employer can similarly dismiss the employee

for any reason (or no reason), at will.

Wrongful Discharge
An employee dismissal that does not comply with the law or

does not comply with the contractual arrangement stated or

implied by the firm via its employment application forms,
employee manuals, or other promises.

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1418

Grounds for Dismissal

Unsatisfactory
performance

Misconduct

Bases for
Dismissal

Lack of qualifications

Changed requirements of
(or elimination of) the job

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1419

Managing Dismissals (contd)

Fostering Perceptions of Fairness in Dismissals
Provide the employee with full explanations of why and

how termination decisions were made.

Institute a formal multi-step procedure (including warning)

and establish a neutral appeal process.

Have the employees direct supervisor inform

the employee of the dismissal decision.

Security Measures
Disable employee passwords and network access.
Collect all company property and keys.
Escort employee from company property.

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Interviewing Departing Employees

Exit Interview
Its aim is to elicit information about the job or related matters that

might give the employer a better insight into what is rightor

wrongabout the company.

The assumption is that because the employee is leaving, he

or she will be candid.

The quality of information gained from exit interviews is

questionable.

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FIGURE 1414
Employee Exit
Interview Questionnaire

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1422

The Layoff Process

Layoff Steps
Identify objectives and constraints.
Form a downsizing team.
Address legal issues.
Plan post-implementation actions.
Address security concerns.
Try to remain informative.

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1423

Layoffs and Downsizing

Alternatives
Voluntarily reducing employees pay
Taking voluntary time off
Releasing temporary workers
Offering early retirement buyout packages

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1424

KEY TERMS
ethics
organizational culture
ethics code
dismissal
termination at will
wrongful discharge
termination interview
outplacement counseling
exit interviews

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1425