Contemporary Case Studies in HRM Report
Sam1994
EthicsinHR.pptxEthics in HR
Understand what is meant by ethics and ethical behaviour in the context of the HRM and employee relations agenda.
Critically discuss ways in which HR Management can influence ethical behaviour at work.
Spotlight on redundancy - approaches and good practice
What could ‘Ethics’ mean in this context?
Inside and Outside the Organisation
Executive Pay
Whistle Blowers
Integrity of Product
Worker Treatment in Supply Chain
Health and Safety
Legal compliance
Common understanding of ethics
Choosing to do the right things - irrespective of consequences
Demonstrate respect for all
Concern for human rights of individuals – fair treatment
Treating Employees Fairly
Perceptions of fairness relate to enhanced employee commitment, and enhanced satisfaction with the organization
Procedural justice - fair processes
Distributive justice - fair outcomes
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Perceptions of fairness relate to enhanced employee commitment, enhanced satisfaction with the organization, jobs, and leaders, and enhanced organizational citizenship behaviors
Ethics Focus
Primarily related to how the organisation treats its staff
- to whom does the HR department owe its loyalty: the individual or the organisation?
Internal aftershock of perceived poor behaviour relating to staff – not good for morale nor business
External perception of the organisation: e.g. the case of Byron Burgers in 2016 http://www.telegraph.co.uk/news/2016/08/01/byron-hamburgers-in-holborn-closes-following-immigration-swoop-p/
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HR’s role
Should HR be the ‘conscience’ of an organisation?
CIPD Podcast 108: HR and Business Ethics
Dilemma for HR: clinging to the rule vs holding on their principles
Podcast lasts
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Operationalising business strategy and impact on workforce
Business change results in changing workforce needs
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Redundant roles
Alternative skill sets
Alternative organisational structure
Cost reduction
Mergers and Acquisitions
Relocation of business
Re-focus of business objectives
Organisational Change and Redundancy
Does a business have an obligation to provide a living for its workers? Or does it merely have to treat them well while it employs them?
Does it have an obligation to prepare them for redundancy? Or just comply with the law?
Looking after survivors: impact on productivity
Redundancy is a special form of dismissal, and happens when an employer needs to reduce its workforce. An employee is dismissed for redundancy if the following conditions are satisfied:
the employer has ceased, or intends to cease, continuing the business, or
the requirements for employees to perform work of a specific type, or to conduct it at the location in which they are employed, has ceased or diminished.
If there is a genuine redundancy, employers that follow the correct procedure will be liable for:a redundancy payment, and notice period payment. (CIPD) https :// www.cipd.co.uk/knowledge/fundamentals/emp-law/redundancy/factsheet - accessed 16.03.2017
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Ethics and HRM: Dual nature of HRM
Greenwood (2002: 271)
‘Soft’ model – “purports to care” – so employees not seen as means to an end - but biggest concern from ethical perspective
Practices that follow – employee participation, skills development, broader roles, greater autonomy
Suggests that if ‘soft’ HRM cannot be guaranteed then employees better off with the reality of ‘hard’ HRM
Redundancy – avoidance
Avoid compulsory redundancy where possible
Natural wastage,
recruitment freeze,
early retirement,
retraining or redeployment
Pay freeze
Short-time working
(CIPD guidance https://www.cipd.co.uk/knowledge/fundamentals/emp-law/redundancy/factsheet)
Organisations should always attempt to avoid redundancies and many employers have adopted a wide range of alternative approaches, including:
natural wastage
recruitment freezes
stopping or reducing overtime
offering early retirement to volunteers (subject to complying with age discrimination law)
retraining or redeployment
offering existing employees sabbaticals and secondments
pay freezes
short-time working
other ‘alternatives to redundancy’ schemes where employees do not work for their employer for a specified period and are free to seek new work whilst receiving an allowance.
However, employers may be unable to implement such proposals without breaking their employees’ contracts, so they need to take care when considering alternative approaches.
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Ethical Decision-making: 8 perspectives on workplace dilemmas
CIPD Research Report August 2015 (CIPD website)
Fairness
Merit
Markets
Democracy
Well-being
Rights and Duties
Character
Handing Down
1. Fairness
Everyone in an organisation should be able to agree to it, whatever their place in it
2. Merit
Jobs and their rewards should track talent and hard work
3. Markets
Jobs and their rewards should follow from voluntary market exchanges
4. Democracy
No-one should be subject to a regime in which they have no say
5. Well-being
Work should be good for us
6. Rights and Duties
Everyone has rights to do some things and to be free of some things and everyone has duties not to violate others’ rights
7. Character
Each of us should work to develop the best of ethical character for our roles
8. Handing Down
We can’t reinvent or master the world, and are instead responsible for conserving and maintaining the small part of it over which we currently have stewardship, and for passing it on undamaged to our descendants
