ROLE OF HRM IN MANAGING BUSINESS ETHICS

PRESENTED BY: Ishank Richa Swati SARTHAK

INTRODUCTION OF ETHICS AND HRM

Ethics is the study of morality Morals are the standards used to judge right and wrong Values are the degree of conviction about the way to conduct life

CONT
HRM is a management function involving the recruitment of suitable manpower ,training ,developing and sustaining their competencies ,motivating them and offerings rewards on a rational and equitable basis.

SCOPE OF HRM
Determining human resource needs Attracting potential employees Choosing employees Teaching/preparing Rewarding Evaluating performance Creating a positive work environment

EMERGING CHALLENGES OF HRM

The increased globalization of markets and intensification of competition Merger and acquisition that are to consolidate competencies and to enjoy economics of scale in the global arena bring own problem of cultural shock Changing job profiles and the need for ability to get adjusted to them

CONT.
Newer organizational designs and strategies pose their own challenges to workforce Increasing role of women employees in organizations even in developing countries that is questioning many traditional HR practices Increasing use of information technology that is altering the very nature of work delivery in organization

CHANGING ROLE OF HR PROFESSIONAL

In an knowledge based economy ,the HR function is not only gaining considerable ground in industry but also but also going metamorphosis. The transition from locating talent to retaining talent has now moved to creating talent It is the responsibility of HR to identify and review the industry requirements of skills

CONT
Attitude value and motivation of employees have become more important EXAMPLE:- Retaining talent ,TATAS shows the way Tata group has drawn up a six point initiative to retain and grow in competitive environment for people with the right set of skills and attitude

That 5 points are

Making merger and acquisition Get to know Gen Y Create internal job market Think global ,hire global Build talent pipeline

HR RELATED ETHICAL ISSUES

CREATING AN ETHICAL ORGANISATION

The top management should be committed to ethical behavior and should be the role models to their employees in this respect The organization should evolve codes of ethics for managers ,executives, and employees and enforce them Ethics committees should be formed with top executives as members to advice on ethical issues

CONT.
Company journals may publish articles on ethical issues and pose hypothetical ethical dilemmas Create an ethical climate in the organization is to organize employee ethics training . An ethics office with ethics officers can be created to oversee the process ,and help to communicate policies to employees.

CASE STUDY ON ETHICAL ISSUES

JET AIRWAYS LAYOFF- WHAT TYPE OF ETHICAL DRAMA OF HRM The case is about the retrenchment drama that unfolded in one of Indias 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.

The retrenchment drama unfolds..

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 layoff of 1100 employees, mainly from departments like flight attendant, cockpit crew etc.

Some salient issues

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.

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

Protest against management