Ethics in Human Resource
Management
PGDM-Session 8
Ethical Issues in HRM
• Recruitment
• Remuneration
• Training and Development
• Retrenchment
Ethics in Recruitment
• Recruitment is process of searching prospective
employees and stimulating them to apply for job
in an organization
• Employee Referrals
• Types of Recruitment
– Internal
– External
Ethical issues in Recruitment
• Discrimination occurs when a company uses
irrelevant criteria for hiring a candidate
• Basis of Discrimination
• Over qualification
• Ageism
• Sex
• Religion
• handicap
Equality of opportunity in Hiring
• It is concerned with screening every applicant
by same criteria
• A business must ensure that rules apply
equally to all the prospects under
consideration
• No applicant is rejected for reasons other than
laid down by rules for hiring
• When the principle of hiring is not followed a
wrong candidate may be hired
Principles of Ethical Remuneration
• Remuneration is not driven by employee’s
need
• Depends solely on results
• Employees who work hard to perform a task
need not be rewarded more than those who
do it effortlessly
• Seniority and loyalty should be rewarded
only when they result in contributions to
long term owner value
Ethics in Retrenchment
• Firing: Employers at time include an “at-will” clause
in employment contract that enable them to fire their
employees at will
• It is ethical when it is related to a worker’s poor
performance , acts of sabotage, dishonesty or misuse
of authority
• Lay offs: discharge of unneeded workers
Health and safety
• To ensure worker is not being unfairly
manipulated into accepting a risk
unknowingly
• Due compensation should be given
• Ensured against unknown hazards
Thank You