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MERCY NYAMU: Importance of ethics in human resource management

HR professionals must ensure that they do not exploit their positions for personal gain.

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by MERCY NYAMU

Opinion23 January 2025 - 13:47
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In Summary


  • Inconsistent or unjust compensation structures can lead to dissatisfaction and resentment among employees.
  • It is crucial for HR to ensure that all employees are compensated fairly for their contributions.

MERCY NYAMU


What is Ethics in Human Resource Management (HRM)?

This refers to the process by which HR professionals or business leaders integrate the company’s core values into the day-to-day operations of the organization.

This approach ensures that ethical principles are embedded at all levels of the organization, helping to build, sustain, and enhance employee trust and morale.

Ethical Issues in Human Resource Management

Some of the most prevalent ethical dilemmas in HRM include:

1. Unfair employee benefits and compensation plans: Inconsistent or unjust compensation structures can lead to dissatisfaction and resentment among employees.

It is crucial for HR to ensure that all employees are compensated fairly for their contributions.

2. Discriminatory practices based on factors such as gender, race, disability, or age can significantly damage an organization’s reputation and employee relations.

HR managers must enforce equal opportunity policies to avoid bias in hiring, promotions, and other areas.

3. Biased Recruitment Practices such as when HR managers favor certain candidates based on personal relationships or recommendations rather than qualifications, it undermines the recruitment process.

4. Intrusion into Employees’ Personal Lives: Employees should have the right to privacy regarding their personal lives, including their religious beliefs or political affiliations.

It is unethical for HR managers to intrude into or make judgments based on these personal aspects unless they affect job performance.

The Role of Ethics in Human Resource Management

Key roles that HR ethics serve in business include:

1. Abiding by employment law: Ethical HR practices ensure compliance with employment laws, such as minimum wage standards, overtime pay, and anti-discrimination policies.

By doing so, organizations create a fair and lawful work environment that protects both the business and its employees.

2. Protecting the employer’s brand and reputation: Ethical conduct in HR practices is vital for preserving the company’s reputation.

Unethical behaviors, such as sexual harassment, discrimination, or unfair policies, can quickly tarnish a business’s image.

Negative perceptions can spread rapidly, causing the company to lose clients and struggle to attract top talent.

3. Promoting employee retention: Organizations that operate with strong ethical principles inspire trust and loyalty among employees.

When employees believe they are treated fairly and ethically, they are more likely to stay with the company long-term, reducing turnover rates and recruitment costs.

4. Encouraging better decision-making: Ethical behavior in the workplace fosters a culture of collaboration, accountability, and transparency.

When employees adhere to ethical standards, they are more likely to make responsible decisions, reducing workplace conflicts and enabling HR managers to make better organizational choices.

A harmonious workplace also ensures that employees work efficiently towards the company’s goals.

Examples of Ethics in Human Resource Management

1. Mentoring and Guiding Employees: HR managers should take an active role in guiding employees, ensuring they understand and adhere to workplace ethics.

By providing clear expectations and mentoring employees, HR helps establish a strong ethical foundation within the company.

2. Respectful Communication: HR professionals should engage in respectful and private conversations when addressing unethical behavior.

This approach ensures that employees are treated fairly and with dignity, which helps maintain a positive working relationship.

3. Transparency and Honesty: HR managers should prioritize transparent communication to build trust with employees.

Being open about company policies, changes, and expectations fosters a sense of security among employees, encouraging ethical behavior.

4. Promoting social responsibility: Encouraging employees to engage in socially responsible activities, such as community service or sustainable business practices, promotes a sense of ethical responsibility within the organization. This aligns the company’s values with positive societal impact.

5. Avoiding conflicts of interest: HR professionals must ensure that they do not exploit their positions for personal gain.

Unethical practices, such as favoritism or financial improprieties, can damage the integrity of the HR function and the overall business.

Final thoughts

Ethics are a cornerstone of effective Human Resource Management.

Whether in a small business or a large enterprise, HR managers must be vigilant in creating, maintaining, and enforcing ethical policies and practices.

By doing so, they ensure a positive workplace culture, improved employee relations, and long-term organizational success.

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