Professional Documents
Culture Documents
HRM Ethics
• People learn business management
automatically even before knowing what
‘Management’ is- Peter Drucker
• To many people management is synonymous
with business management
• But business management is only a part of
management
• For a better understanding of HRM Ethics, it is
essential to know what Management is, what is
HRM, what is Business, what is Ethics and what
is Business Ethics.
Definition-Management
• Management is the process of planning, organizing,
directing and controlling of organizational resources in
order to achieve personal, organizational and social
goals effectively and efficiently
• This definition envisages the use of organizational
resources including HR very effectively and efficiently to
achieve ends without compromising individual or
organizational or social goals, i.e. there must be
equilibrium among these factors
• The HRM implication is that HR (People) can be used as
a means to achieve organizational and social goals, but
at the same time, it should not be forgotten that they
have their own ends, i.e. in certain aspects they are the
end in themselves, even in the organizational context
Definition-HRM
• HRM means a process of planning, organizing,
directing and controlling of procurement
(recruitment & selection), development (training),
compensation (salary, wages & other benefits),
appraisal (actual performance & potential
performance), maintenance (welfare & record-
keeping), and separation (retirement,
resignation, retrenchment, etc) of employees or
personnel or HR of the organization in order to
achieve personal, organizational and social
goals effectively and efficiently.
Definition-HRM
• In this definition, there are two types of functions for the
HR Manager
• Managerial functions-planning, organizing, directing and
controlling
• Operative functions- procurement, development,
compensation, appraisal, maintenance and separation
• Here, the HR Manager is applying all managerial
functions positively in each of the operative functions to
maintain equity, equality and justice. In some operative
functions (compensation, appraisal, maintenance and
separation) s/he has to maintain equity, while in some
others (procurement, development, etc) s/he has to
maintain equality and individual and social justice. It is
also implied that HR (employees) must play their duties
to achieve the organizational and social goals effectively
and efficiently
Definition-Business
• Business is a process of carrying out
economic activities (providing goods and
services) by any individual or organization
or corporation or partnership firm or
franchisee in order to generate profit
(return on investment) within the legal and
moral framework
• This definition implies that any business
activity/decision has three aspects:
Economic, Legal and Moral (ethical). One
aspect cannot be compromised for
another
The Organization
For participation
To job satisfaction
Employers’ rights and duties
Rights Duties