Organizational Ethics and Management...

Organizational Ethics and Management  Ethics refers to the principles, rules and standards of moral behaviour that are accepted by society as right or wrong. It tells the difference between the right and wrong. It guides the employees of the organization to decide on the best course of action in situations where it is difficult to make the right choice, or at least the best choice from among competing alternatives. Organizational ethics is also known as corporate or business ethics. It is a form of applied ethics or professional ethics that examines ethical principles and morals or ethical problems that arise in an organizational environment. It applies to all aspects of organizational conduct and is relevant to the conduct of its management and employees as well as the organization as a whole. It can be both a normative and a descriptive discipline. The range and quantity of ethical issues reflects the degree to which organizational working is perceived to be at odds with non economic social values. Organizational ethics lay emphasis on commitment of the organization in promoting non economic social values. They are tied to the ethics of the society as well as the ethics of the individuals who work for, and buy products from, the organization. Ethics is not a recent phenomenon. Ethical codes have been prepared along with the development of human civilization. The word ethics is derived from the Greek word ‘Ethikos’ and Latin word ‘Ethicus’. The word means custom, norm, ideal, or character. In the words of Peter.F.Drucker, ‘Ethics deals with right actions of individuals’. The term ‘business ethics’ came into common use in the USA in the early 1970s. Organizations started highlighting their ethical stature in the late 1980s and early 1990s, possibly trying to distance themselves from the business scandals of the...

Corporate Social Responsibility...

Corporate Social Responsibility The present century is characterized by unprecedented challenges and opportunities, arising from globalization, the desire for inclusive development and the imperatives of climate change. Globally it is being recognized now that integrating social, environmental and ethical responsibilities into the governance of businesses ensures long term success, competitiveness and sustainability. This approach also reaffirms the view that businesses are an integral part of society, and have a critical and active role to play in the sustenance and improvement of healthy ecosystems, in fostering social inclusiveness and equity, and in upholding the essentials of ethical practices and good governance. This also makes business sense as companies with effective corporate social responsibility (CSR), have image of socially responsible companies, achieve sustainable growth in their operations in the long run and their products and services are preferred by the customers. The idea of CSR first came up in 1953 when it became an academic topic in HR Bowen’s ‘Social Responsibilities of the Business’. The term “corporate social responsibility” became popular in the 1960s and has remained a term use since then. Definitions of CSR Although the idea of CSR has been around for more than half a century, still there is no single universally accepted definition of CSR. All the definitions which are prevalent these days underpin the impact that businesses have on society at large and the expectations of the society on them. Various definitions which are prevalent today are given below. The European Commission (EC) has previously defined CSR as ‘a concept whereby companies integrate social and environmental concerns in their business operations and in their interaction with their stakeholders on a voluntary basis’. In October 2011 the EC published a new policy on corporate social responsibility. The Commission defines corporate social responsibility...

Human Resource Management...

Human Resource Management All organizations need resources of manpower, money, material and machinery to function effectively.  The resources by themselves cannot fulfill the objectives of the organization, they need to be collected, coordinated and utilized through human resources who in turn are to be managed effectively and efficiently. Hence human resource management (HRM) is a major activity in an organization that deals with issues related to people. It is the process of recruitment, selection of employee, providing orientation, induction, and training as well as the development of skills, performance appraisal of employees, providing proper compensation and benefits, motivating, communication, administration, maintaining proper relations with employees as well as with trade unions, maintaining employee’s safety, welfare and health by complying with labour laws and organization development. HRM is a multidisciplinary subject. It involves management functions like planning, organizing, directing and controlling. It includes the study of management, psychology, communication, economics and sociology. It involves team spirit and team work. It is a continuous process. The core purpose of the human resource management is to make efficient use of existing human resource in the organization.  The ten ‘Cs’ of HRM are (i) cost effectiveness, (ii) competitive, (iii) coherence, (iv) credibility, (v) communication, (vi) creativity, (vii) competitive advantage, (viii) competence, (ix) change, and (x) commitment. Definitions Edwin Flippo has defined HRM  as  ‘planning, organizing, directing, controlling of procurement, development, compensation, integration , maintenance and separation of human resources to the end that individual, organizational and social objectives are achieved’. The National Institute of Personal Management (NIPM) has defined HRM as ‘that part of management which is concerned with people at work and with their relationship within an enterprise. Its aim is to bring together and develop into an effective organization of the men and women who make up enterprise...

Industrial Relations

Industrial Relations The term of industrial relations (IR) covers the relationship of employees with the management and the organization and also with each other. Industrial relations is concerned with anticipating, addressing and diffusing workplace issues that may interfere with an organization’s business objectives, as also with resolving disputes between and among management and employees. Traditionally, the term industrial relations is used to cover such aspects of industrial life as trade union activities, collective bargaining, employees participation in management, discipline and grievance handling, industrial disputes and interpretation of labor laws and rules and code of conduct. It includes the processes of analyzing the employer-employee relationship, ensuring that relations with employees comply with applicable central and local laws and regulations, and resolving workplace disputes. The practice of counseling, disciplining and terminating employees falls within the domain of this discipline. In the words of Lester, “Industrial relations involve attempts at arriving at solutions between the conflicting objectives and values; between the profit motive and social gain; between discipline and freedom, between authority and industrial democracy; between bargaining and co-operation; and between conflicting interests of the individual, the group and the community.” Industrial relations differs from traditional human resource management since it focus on the collective aspect of relations such as labour laws, collective bargaining, the right to strike and trade union activities etc. In short, IR consists of management of collective relations between employers and the employees. Collective bargaining is a process through which employee issues are settled through mutual discussions and negotiations through give and take approach. If the issues are not settled through collective bargaining they should be referred to voluntary arbitration but not to adjudication in order to maintain congenial relations. The three main participants in the industrial relations activities are employer’s management, employees and...

Performance Appraisal...

Performance Appraisal Performance appraisal (PA), also known as employee appraisal, is the systematic evaluation of the performance and productivity of an employee on the job in relation to certain pre-established criteria and organizational objectives. It is carried out to understand the potential of the employee for further growth and development. It is a formal, structured system of measuring, evaluating job related behaviours and outcomes to discover reasons of performance and how to perform effectively in future so that both the employee and the organization get benefitted. Performance appraisal is a management tool which is used for effective utilization of the employees as well as for planning their career development and consists of regular review of employee performance within organizations. An effective PA system will have the following. It correlates with the organizational mission, objectives and value system. It covers the assessment of performance as well as potential for development. It takes care of organizational as well as individual needs. It helps in creating a clean environment by linking rewards with achievements, generating information for the growth of the employee as well as of the organization, and suggesting appropriate employee task matching and career plans. Feedback is an important component of performance appraisal. While positive feedback is easily accepted, negative feedback often meets with resistance unless it is objective, based on a credible source and given in a skillful manner. Main component of a PA system is shown in Fig.1. Fig 1 Main component of a PA system Objectives of performance appraisal Performance appraisal system in an organization has the following objectives. To maintain records in order to determine compensation package, wage structure, and salary increments etc. To identify the strengths and weaknesses of employees to place right person on the right job. To maintain...