The Ethical Dimension of Human Resource Management

Dr. Radhika Kapur

Abstract

The main objective of this research paper is to understand the ethical dimension of
human resource management. Within the organizations, it is comprehensively understood that
individuals need to augment their knowledge and competencies in terms of various factors.
The augmentation of knowledge and competencies will enable the individuals to carry out
their job duties in a well-organized manner. Apart from possession of knowledge and
competencies, it is essential for the human resources to inculcate the traits of morality and
ethics and put into practice the ethical dimensions. Implementation of ethical dimensions
enables the human resources to carry out their job duties satisfactorily, form good terms and
relationships with others within as well as out the organization, acquire promotional
opportunities, augment their career prospects and retain their jobs. The main areas that have
been taken into account in this research paper include, significance of ethical dimension of
human resource management, ethical dimensions of human resource management, features of
ethical dimensions of human resource management, and principles of ethical dimensions of
human resource management.

Keywords: Conduct, Ethical Dimension, Human Behaviour, Human Resource

Management, Organization, Principles

Human resource management is the business function that is concerned with

managing relations between the groups of individuals in their capacity as employees,
employers and managers. Ethical dimension is concerned with inculcation of ethics among
individuals, which are principles and values that are necessary to emerge into principled and
truthful human beings. Business leaders and decision makers often have to balance different
demands and ethical imperatives (Ray, n.d.). Inevitably, this process may raise questions
about what the respective responsibilities and rights of each party are in this relationship and
regarding what constitutes fair treatment. The HR practices have an ethical foundation. HR
deals with the practical consequences of human behaviour. The organizations and businesses,
which are ethical as well as profitable prosper. As ethics are considered as indispensable in
the achievement of desired goals and objectives and in leading to well-being of the human
resources and organization as a whole. Ethical organizations creates a positive environment,
in which they buy and sell. Factors such as, corruption, poverty and lack of respect for the
environment creates problems for the business community in the long term (Rose, 2007).

Organizations are bound to treat the workforce and make provision of equal rights and
opportunities to all. Furthermore, there should not be any type of discrimination on the basis
of any factors, such as, caste, creed, race, religion, ethnicity, gender, age, education and
socio-economic background. Legislation is referred to the codification of accepted moral
principles and acts to moderate standards within the community. The greatest good for the
greatest number. Ethics is the key branch of philosophy, concerned with analysing what is
right and wrong, particularly in terms of the behaviour of the individuals and conduct. Ethics
and morality are terms that are often used interchangeably in discussions, which involves
both positive as well as negative concerns. Philosophy presents with the suggestions in terms
of the nature of morality and ethics. It also makes provision of the set of tools for analysing
and exploring morality (Rose, 2007).

Significance of Ethical Dimension of Human Resource Management

The members of the organization have to focus upon the ethical dimension of human
resource management. The major emphasis is put upon the overall improvement of
population quality, optimal allocation and utilization of human resources and co-ordination
and integration among the individuals, belonging to various categories and backgrounds and
the individuals need to follow the ethical principles of human-orientedness, collectivism and
fair-mindedness. Social ethics are concerned with the new moral system consistent with the
practical situations concerning talent recruitment and promotion and salary distribution
within the firms. When the candidates are recruited within the organization, they are provided
with ethical training, moral evaluation and other ethical control means on potential candidates
of recruitment or promotion. The main aspects that establish the ethical dimension of human
resource management are, cultivation of people-centred philosophy, optimizing resource
allocation, identifying the factors concerning HR development, putting emphasis on talent
management and training, executing moral incentives, perfecting income distribution,
establishing appraisal system and promoting cultural cohesion (Feng & Guo, 2010).

The significance of ethical dimension of human resource management is recognized

in advocating the philosophy of humanity to establish the ethical values of people-oriented,
implementing moral motivation to achieve ethical goals of optimal performance, improving
the system of welfare and assessment to reflect upon the equity and equality of value of
ethical dimension of human resource management. Ethical management has a positive impact
upon the development of human resources (Feng & Guo, 2010). It is apparent that apart from
generating information in terms of aspects regarding the performance of job duties, it is vital
for the members of the organization to augment their understanding in terms of ethics. The
implementation of ethics is regarded as one of the essential aspects that proves to be
beneficial to the individuals in terms of various areas. These are, maintaining effectual terms
and relationships with others, retaining one’s job and generating the desired outcomes.

Ethical Dimensions of Human Resource Management

The ethical dimension of human resource management covers those ethical issues
arising around the relationship between the employer and employee, such as rights and duties
owed between the employer and employee. The ethical dimensions of human resource
management in various organizations are identified in terms of areas, which have been stated
as follows: (Velentzas & Broni, 2010).

General Business Ethics

General business ethics overlaps with the philosophy of the business, one of the aims
of which is to determine the fundamental purposes of the organization. If the primary
objective of the organization is to maximize productivity and profitability, it is vital for the
members of the organization to put into operation the measures and approaches that would
render a significant contribution in maximising productivity and profitability. The members
of the organization at all levels need to work in co-ordination and integration with each other
in the achievement of desired goals and objectives and in enhancing the standing of the
organization. They need to put into practice the ethics, strategies, procedures and principles
that would promote goodwill and well-being.

Ethics of Finance

Fundamentally, finance is the social science discipline. The discipline shares its
border with the behavioural science, sociology, economics, accounting and management.
Finance being a discipline is concerned with the technical issues, such as, debt and equity
financing, dividend policy and the evaluation of alternative investment projects and more
recently, the valuation of options, futures, swaps and other derivative securities, portfolio
diversification and so forth. Finance ethics are overlooked for another reason. The issues in
finance are often addressed as matters of law rather than ethics. It is held that the liberation
financial systems would ensure appropriate and suitable economic growth through
competitive market system, safeguarding the promotion of high levels of savings, investment,
employment, productivity, foreign capital inflows and thereby capital. The organization
within the finance paradigm is observed as the complex network of contractual relations,
mostly implicit, between various interest groups. Within this finance paradigm, a rational
agent is simply one, who pursues personal material advantage. In essence the meaning of
relational finance can be understood as individualistic, materialistic and competitive.

Ethics of Human Resources

The ethics of human resource management (HRM) covers those ethical issues arising
from the terms and relationships that develop among the employers and employees. The
employers and employees have certain rights and duties towards each other. In order to carry
out their job duties in a well-organized manner, it is vital for them to implement ethics and
generate information in terms of various aspects. Within the organization, human resources
are different from each other in terms of number of aspects. But there should not be any type
of discriminatory treatment on the basis of caste, creed, race, religion, gender, educational
qualifications, ethnicity and socio-economic background. In some organizations, when the
employees are to get engaged in manual jobs, it is a fact that they should be healthy and
should not suffer from any ailment or health problems. When the employees are suffering
from any health problems and illnesses, in such cases, they would not be given manual job
duties. Hence, it needs to be ensured when employees are hired that they should be capable
for the performance of job duties.

Ethics of Sales and Marketing

Marketing, which is beyond the mere provision of information about and access to a
product, may seek to manipulate values and behaviour. To some extent, the society regards
this as acceptable. Marketing ethics overlaps strongly with the media ethics, the reason being,
marketing involves extensive use of media. However, media ethics is the much
comprehensive topic and extents outside the business ethics. Marketing ethics is the sub-set
of business ethics. Ethics in marketing is concerned with the norms, principles and values
which may facilitate the implementation of tasks and functions by the members of the
organization. Discussions in terms of ethics of sales and marketing are focused on two major
concerns. These are, concern from the political philosophy and concern for the transaction-
focused business practice. Ethical discussion in sales and marketing are still in the nascent
stage. Marketing ethics emerged in the 1990s. The sales and marketing ethics are approached
from the ethical perspectives of virtue, deontology, consequentialism, pragmatism and also
from the relativist positions. These ethics are not only concerned in terms of fields of sales
and marketing, but they also apply to other fields, such as, interacting, forming social
identities and so forth.

Ethics of Production

The ethics of production deals with the duties of the organization to ensure that
products and production processes are carried out in a well-organized and suitable manner.
Particularly in manufacturing and production organizations, when the workforce is engaged
in the production processes, they need to generate awareness in terms of methods and
procedures that are necessary. The workforce are required to get enrolled in training and
development programs within the organization in order to augment their understanding in
terms of methods and procedures. Research has indicated that usually individuals develop
interest in terms of the fields, they want to pursue from the initial stage. Hence, they get
enrolled in educational institutions and training centres to acquire the essential skills and
abilities. When they have completed their education and training, they apply for jobs in
organizations, related to their field. When they get recruited, they are able to render an
efficient performance in the implementation of their job duties. Therefore, it can be stated
through education and training, the individuals are able to acquire an understanding regarding
production of ethics.

Ethics of Intellectual Property, Knowledge and Skills

Intellectual property, knowledge and skills are indispensable factors that are given
first and foremost consideration by the members of the organization. These traits are acquired
by the individuals through education, training, job experience and communication with
others. In educational institutions and training centres, the individuals go through various
types of teaching-learning methods and instructional strategies, which help them to generate
awareness in terms of implementation of job duties. Job experience is one of the factors that
enriches the intellectual property, knowledge and skills among individuals. They are able to
acquire an efficient understanding in terms of the factors through practical job experience.
Communicating with others is also regarded as one of the essential aspects in enriching
intellectual property, knowledge and skills. Research has indicated that within the
organizations, the employees are encouraged by their employers to get engaged in group
discussions and promote teamwork. In this manner, the employees are not only able to
augment intellectual property, knowledge and skills, but also are able to incur the feeling of
job satisfaction. The members of the organization are required to enhance the ethics of
intellectual property, knowledge and skills throughout their jobs.

Ethics and Technology

Ethics and technology have a close interrelation with each other. When it is stated the
members of the organization are required to augment their skills and knowledge, it is of
utmost significance for them to become well-equipped in terms of usage of technologies. In
various types of organizations, the individuals make use of technologies to carry out various
tasks and activities at all levels. The various technologies that are used within organizations
are, computers, lap-tops, scanners, printers, photo-copiers, I pads, smartphones, gadgets, and
so forth. These technologies are primarily used when the human resources are engaged in
office job duties, such as, managerial, clerical, administrative, financial, technical and so
forth. Whereas, when the individuals are engaged in production of goods, they are
implementing other technologies that are used in the production processes. In the present
existence, technologies render an indispensable contribution in conducting research. When
the individuals are required to generate information in terms of various concepts and areas,
they usually make use of internet. Furthermore, technologies have also rendered an
indispensable contribution in generating information in terms of their utilization in an ethical
manner.

International Business Ethics

International business ethics are the ethics that generate information among the
members of the organization in terms of methods, approaches and strategies that are essential
to carry out one’s job duties in a well-organized manner and attain the desired outcomes.
Within the organization, the members cannot work in isolation. It is essential for them to get
engaged in effective communication with others. In some cases, there may be occurrence of
conflicting situations and disagreements. In such cases, it is vital for the individuals to
communicate with each other in a calm manner. Development of effective listening skills are
vital aspects that would enable the individuals to come to agreements. The workforce needs
to inculcate the traits of diligence, resourcefulness, conscientiousness, morality, honesty and
truthfulness. When they put into operation, these traits, they are able to obtain the desired job
outcomes and incur job satisfaction. The employees usually require promotional
opportunities. Therefore, knowledge in terms of business ethics and job duties will help the
individuals in acquiring promotional opportunities. In order to enhance one’s career
prospects, it is vital for the members of the organization to augment one’s knowledge and
understanding in terms of business ethics.

Ethics of Economic Systems

Ethics of economic systems are primarily focused upon the strategies, which need to
be implemented in terms of effective utilization of economic resources. There are some
organizations, which are financially not very strong. In such cases, they need to plan their
financial resources before bringing any improvements and changes within the organization.
Within the course of time, there are number of transformations that are to take place within
the organization. These are related to infrastructure, civic amenities, technologies, equipment,
materials, tools, job duties, training and development programs, implementation of
management and administrative functions, and in terms of the overall working environmental
conditions. In making improvements in all these areas, the individuals require finances. When
the organization possess limited finances, they need to organize meetings and get engaged in
discussions regarding how to make use of finances in an appropriate manner. On the other
hand, when the organization possess sufficient financial resources, then they are not required
to go through financial problems. In such cases, the members can spend financial resources in
making improvements on a regular basis. Therefore, it can be stated that ethics of economic
systems enables the members of the organization to plan financial resources suitably.

Law and Business Ethics

Within the organization, it is essential for the members to form laws and rules, which
would have the main objective of bringing about well-being of the human resources and
organization as a whole. With the formulation of laws and measures, the members of the
organization are able to acquire an efficient understanding in terms of ways in which they
have to conduct themselves, carry out their job duties and deal with others. The laws and
rules need to be related to number of aspects. The major ones include, behaviour and conduct
of the members, working hours, usage of technologies, such as, one has to avoid excessive
printing, providing equal rights and opportunities to all members of the organization,
promoting discipline, implementation of anti-discriminatory policies, imposing severe
penalties for any types of criminal and violent acts, such as, sexual harassment, theft,
robbery, dishonesty and so forth. When the laws and measures have been formulated, it is
vital for the individuals to follow them. All the members within the organization aspire to
bring about improvements in their career prospects. But for the achievement of this purpose,
it is vital for them to work diligently and conscientiously. Furthermore, they need to inculcate
the traits of righteousness and honesty.

Features of Ethical Dimensions of Human Resource Management

The features of ethical dimensions of human resource management have been stated
as follows: (Unit – 1. Business Ethics, n.d.).

Discipline – Ethical dimensions of human resource management is a guiding

discipline. In this discipline, there are number of other areas as well, which are taken into
consideration. It is referred to as the knowledge through which human behaviour is learned in
a business situation. The human resources are required to conduct themselves appropriately
in a given situation.

Ancient Concept – This concept has an ancient origin. It originated with the
development of the human civilization. In ancient India, when the workforce were to get
engaged in any occupations, they were required to inculcate the traits of morality and ethics.
As these were regarded as indispensable traits, which enabled them to retain their jobs.

Personal Dignity – The ethical dimensions of HRM led to the development of

personal dignity. Many of the problems of ethics take place, when dignity is not provided to
the individuals. All the business decisions need to be taken by giving dignity to the
customers, employees, distributors, shareholders, creditors, employers and so forth.

Related to Human Aspect – The ethical dimension of HRM studies those activities,
decisions and behaviours, which are concerned with the human aspect. It is necessary to
notify the decisions in terms of customers, owners of business, government, society,
competitors and others on positive, negative, appropriate and inappropriate conduct of
business.

Study of Goals and Means – The study of goals and means are regarded as rational
selection of the sacred objectives and their fulfilment. In other words, when the information is
acquired in terms of ethical dimensions of HRM, it is vital to formulate goals and means. In
other words, to achieve goals, it is vital to obtain means. The goals and means are important
aspects that enable the individuals to carry out various tasks and activities.
 Different from Social Responsibility – Social responsibility primarily relates to the
procedures and programs of the organization. Whereas, ethical dimensions are appropriate to
the conduct and behaviour of the organization. In order to carry out social responsibility in an
appropriate manner, it is vital to generate awareness in terms of ethical dimensions. But it is
the fact that social responsibility of organization and its rules and policies are influenced by
ethical dimensions.

Greater than Law – Although law approves various social decisions, the law is not
greater than ethics. Law is usually related to the minimum control of social customs.
Whereas, ethics gives importance to the individuals and social welfare. In other words, when
laws and programs are being formulated, major focus is put upon their implementation in an
effectual manner.

Code of Conduct – The ethical dimensions of HRM usually follows the code of
conduct. In other words, when the human resources are engaged in the implementation of
tasks and activities or when they have to deal with others within as well as outside the
organization, they need to ensure they implement decorousness and civility.

Based on Moral and Social Values – Within the organization, it is vital for the
individuals to conduct themselves based on moral and social values. Moral values make
provision of knowledge to the individuals that they need to be principled. Whereas, social
values make provision of information to the individuals that they need to socialise and form
effective communication terms with others, within as well as outside the organization.

Protection to Social Groups – The social groups are the individuals, such as,
customers, employees, distributors, shareholders, creditors, employers and so forth. The
organizational goals can be achieved when these individuals are well-aware of their job
duties. It is vital for them to not only generate information in terms of performance of job
duties, but they also need to be aware in terms of their rights, laws, rules, responsibilities and
programs.

Principles of Ethical Dimensions of Human Resource Management

The ethical values, translated into active language establishing standards or rules
describing the kind of behaviour an ethical person should and should not get engage in, are
ethical principles. In other words, the principles of ethical dimensions make provision of
information to the individuals in terms of the traits that are necessary to emerge into good
human beings and generate positive outcomes in the performance of job duties. The
principles of ethical dimensions of human resource management have been stated as follows:
(Unit – 1. Business Ethics, n.d.).

Honesty – Ethical executives are honest and truthful in all their dealings and they do
not deliberately mislead or deceive others by misrepresentations, overstatements, partial
truths, selective omissions, or any other means. These are regarded as dishonest acts, which
may even compel the individuals to get suspended from their jobs. Within the organization,
all the members need to ensure that they are honest in their dealings. Honesty is regarded as
one of the important traits that helps the members of the organization to maintain their image
within the organization. It has to be depicted in the implementation of job duties as well as in
dealing with others.

Integrity – Integrity is referred to truthfulness, reliability and uprightness. When the

employees are acquiring knowledge regarding the organization through training and
development programs, they also generate awareness in terms of integrity. One can
successfully work towards the achievement of organizational goals and objectives, when they
put into practice the trait of integrity. Ethical executives demonstrate personal integrity and
the courage of their convictions by doing what they think is right even when there is immense
pressure to do otherwise. Integrity enables the individuals to depict honourableness and
uprightness. They will struggle for their rights and will not be deceitful or unprincipled in
their tasks and functions.

Promise-keeping and Trustworthiness – Within the organization, the individuals need

to keep their promises and develop trustworthiness. Especially, when they are working on
research projects or when they need to deal with customers, they need to uphold their
promises and develop trustworthiness. In some cases, when they are providing services to the
customers, they may take money in advance. Therefore, promise-keeping and trustworthiness
are vital principles of ethical dimensions of HRM. The employees are frank and forthcoming
in supplying relevant information and modifying apprehensions of fact. They make all kinds
of efforts to fulfil the letter and spirit of their promises and commitment. They do not
interpret agreements in an unreasonably technical or legalistic manner in order to rationalize
non-compliance or create justifications for evading from their commitments.

Loyalty – Ethical executives are worthy of trust, demonstrate fidelity and loyalty to
the individuals and institutions by friendship in adversity, support and devotion to duty. They
do not use or disclose information learned in confidence for personal advantage. They
safeguard the ability to make independent professional judgments by conscientiously
avoiding undue influences and conflicts of interest. They are loyal to their organizations and
members. If they make decisions regarding acceptance of other employment, they provide
reasonable notice, respect the proprietary information of their former employer, and refuse to
participate in any activities that would compel them to take advantage of their previous
positions.

Fairness – It is of utmost significance for the members of the organization to be just

and fair in their dealings. They need to make provision of equal rights and opportunities to all
the members. When the individuals have made any mistakes or encountered any flaws or
inconsistencies in their performance, they are required to accept those mistakes and bring
about improvements. Fairness enables the individuals to manifest a commitment to justice,
the equal treatment of individuals, tolerance for and acceptance of diversity, they are open-
minded and are willing to admit their mistakes. When appropriate, they bring about changes
in their positions and beliefs.

Concern for Others – In order to achieve the desired job outcomes, retain jobs and
incur the feelings of job satisfaction, it is vital for the members of the organization to develop
concern for others. They need to be kind, benevolent and compassionate. When the
individuals are working at the same level and are colleagues, they need to lend a helping hand
towards their colleagues, particularly when they experience problems in the implementation
of job duties. Whereas, the individuals, who are in leadership positions, they too need to
inculcate the traits of generosity, kindness, and helpfulness. Therefore, it can be stated that
development of concern for others is one of the essential ethical principles that need to be put
into operation.

Respect for Others – It is apparent that all individuals need to be treated with respect
and courtesy. The employees want their employers to communicate with them in a respectful
manner. When the supervisors are providing information to the workforce regarding the
implementation of job duties, they need to communicate in a respectful manner. Having
respect for others enables the individuals to accept others irrespective of categories and
backgrounds. Respect and courtesy are important factors that enable the individuals to work
with each other and carry out various tasks and activities in an appropriate manner. The
individuals are able to effectively work in co-ordination and integration with each other.
 Formulation of Measures – In order to ensure that the functioning of the organization
takes place in an appropriate manner, it is vital to formulate measures. When the measures
are formulated, it needs to be ensured that they promote well-being of the organization and its
members. The measures formulated have to be regarding number of aspects. These include,
working hours, timings, usage of technologies, materials and equipment, discipline and
conduct, implementation of job duties and dealing with others. Therefore, it can be stated that
to be successful in the implementation of job duties and form appropriate working
environmental conditions, it is necessary for the members of the organization to not only
formulate measures, but also follow them.

Commitment to Excellence – Commitment to excellence is vital for the individuals at

all levels. When the members of the organization are committed to excellence, they are not
only working towards enhancing their career prospects, but also promoting well-being of
colleagues, employers and communities as well. In other words, when they are performing
their job duties, they need to work to their best abilities. The members of the organization are
different from each other in terms of their educational qualifications, competencies, natures,
and behavioural traits. But they are committed to excellence. In some cases, they are
experienced and well-aware of the performance of their job duties, whereas, in other cases,
they need support and assistance from others. In some cases, when job duties are
complicated, the individuals acquire training regarding pioneering methods to render an
excellent job performance. Therefore, it can be stated that commitment to excellence is
indispensable for the successful performance of job duties.

Leadership – Leadership is an important aspect regarding which the individuals need

to be well-aware, particularly, directors, heads, supervisors and managers. It is their primary
job duty to adequately guide, direct and lead others in the right direction. Within the course of
performance of their job duties, they experience number of problems and challenges. In such
cases, supervisors or directors are the ones, who are approached and they need to provide
solutions to problems of their employees. It is the job of the leaders to create a pleasant and
amiable environmental conditions, in which the employees feel comfortable and are able to
carry out their job duties in a well-organized manner.

Reputation and Morale – Reputation of the organization and morale of the employees
are important aspects that need to be protected. The members of the organization have the
primary aim of carrying out the tasks and functions within the organization in such a manner
that would render a significant contribution in enhancing its reputation. On the other hand,
the morale of the employees too has to be augmented by making provision of rights and
opportunities to them. It is comprehensively believed that employees need to be diligent,
conscientious and loyal towards the organization. On the other hand, the organization also
has to form the environment and provide them chances to enhance their career prospects and
incur the feelings of job satisfaction.

Accountability – Decision making is an integral part of the organization and

individuals, who are in leadership positions are vested with the rights to make decisions.
They are accountable for their decisions. The accountability principle of ethical dimension
highlights that members of the organization are accountable for their job duties. When the
individuals are working in groups, then too they are assigned certain job duties, for which
they are accountable. Therefore, it is vital for the individuals to possess the essential
knowledge and competencies, which may enable them to carry out their job duties in a well-
organized manner and meet the expectations of their employers.

Conclusion

The ethical dimension of human resource management is primarily concerned with

the inculcation of morals and values among the individuals, so they are able to carry out their
job duties appropriately, maintain effective terms and relationships with the other members of
the organization and inculcate the traits of morality and ethics. The ethical dimensions of
human resource management in various organizations are identified in terms of areas, such
as, general business ethics, ethics of finance, ethics of human resources, ethics of sales and
marketing, ethics of production, ethics of intellectual property, knowledge and skills, ethics
and technology, international business ethics, ethics of economic systems and law and
business ethics. Within the organizational structure, it is essential for the individuals to
generate information in terms of these aspects, so they are able to render an important
contribution in enriching every field.

The features of ethical dimensions of human resource management are, discipline,

ancient concept, personal dignity, related to human aspect, study of goals and means,
different from social responsibility, greater than law, code of conduct, based on moral and
social values, and protection to social groups. The principles of ethical dimensions of human
resource management are honesty, integrity, promise-keeping and trustworthiness, loyalty,
fairness, concern for others, respect for others, formulation of measures, commitment to
excellence, leadership, reputation and morale and accountability. When the human resources
get recruited within the organizations, they need to generate adequate information in terms of
factors necessary to perform job duties satisfactorily. Apart from generation of awareness in
terms of job duties, it is vital to generate awareness in terms of ethical dimensions. This
information enables the members of the organization to maintain effective terms and
relationships with each other and retain their jobs. Finally, it can be stated that it is vital for
individuals to inculcate the traits of morality and ethics to achieve organizational goals.
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