BE - MODULE 4 Business Ethics in HRM & IT
BE - MODULE 4 Business Ethics in HRM & IT
BE - MODULE 4 Business Ethics in HRM & IT
BUSINESS ETHICS
Definition of HRM
According to Invancevich and Glueck, "Human Resource Management is concerned with the
most effective use of people to achieve organizational and individual goals. It is the way of
managing people at work, so that they give their best to the organization".
Objectives of HRM
1. Societal Objectives
● To manage human resources in an ethical and socially responsible manner
● To ensure compliance with legal and ethical standards.
● To minimize the negative impact of societal demands upon the organization.
2. Organizational Objectives
● Human Resource department, like any other department in an organization,
should focus on achieving the goals of the organization first. If it does not meet
For this purpose, the Human Resource department cannot exist in the long run.
● Human Resource department should recognize its role in bringing about
organizational effectiveness.
● Human Resource Management is not an end in itself. It is only a means to assist the
organization with its primary objectives.
3. Functional Objectives
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2. Operative Functions
• Procurement: Procurement is the process by which an organization appoints candidates
to the job. Through the process of recruitment and selection, the HR manager identifies the
right type of people required in the organization and puts in some effort to develop to get
better performance.
• Maintenance: Maintenance is one of the important functions to perform in HRD. HRM
undertakes all the activities which includes maintaining people in the organization. All the
facilities must be given to the employees and also ensure that they feel satisfied puts
to work in an organization.
• Development: It is known that the development of employees leads to the overall
development of organizations. Through training and development the present and future
skills which are required are imparted to employees. All the employees must be
encouraged to improve their skills.
• Work Culture: Work culture is defined as the cumulative effect that leader practices,
employee behaviour, workplace amenities and organizational policies create on a work or
internal stakeholder. It can be measured as either positive or negative work culture. HRM
introduces to pattern, the procedures in which the carries out its function. It is this definite
way of word that created a definite work culture in the organization.
• Educating the Managerial Personnel: Personnel Development programs tries to educate
the managerial executive of the market situations and trends which helps in forming new
plans and strategies of products.
• Conducting Research: The main focus of HRM is to come up with different ways in
order to control and regulate the personnel towards the right direction thereby achieving
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the organization's objectives. In order to attain HRM, it should focus towards continuous
innovative methods which help to communicate, understand and integrate the workforce.
Research plays a pivotal role.
• Developing a Communication System: HRM promotes free flow of communication in
organization, that is, upwards, downwards and lateral communication, which helps in
building a suitable environment of work and builds culture link in the organization.
• Compensation: Compensation is concerned with securing adequate and equitable
remuneration to persons working in the organization. It should be fixed in such a way that
it attracts and retains suitable persons in the organization.
• Employment: Employment is concerned with stabling and employing the people
possessing the required kind and level of human resources necessary to achieve the
organizational objectives. It includes functions like job analysis, human resource planning,
recruitment, selection, placement, induction and internal mobility.
• HR Development: HR development efforts are described in terms of the training and
educating programs and the number of people who are exposed to these programs. Unless
a systematic and constant monitoring of these programs and a systematic appraisal of the
actual effect of these programs, in terms of actual results achieved, can be determined. It
may not be possible to understand whether the real purpose is served by these programs.
• Human Relation: This process leads to the human relations movement with its emphasis
on the fact that employees need to be understood in order to be satisfied and productive.
The idea that good human relations in and of themselves will increase productivity failed
to be consistently supported and many of the movement's ideas were abandoned.
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6. Violating Company Internet Policies: Cyber slackers and Cyber loafers are the terms
used to identify people who surf the web when they should be working. A survey
conducted found that every day at least 64% of employees visit websites that have nothing
to do with their work.
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5. Safety and Health: Industrial work is often hazardous to the safety and health of the
employees. Legislations have been created making it mandatory on the organizations and
managers to compensate the victims of occupational hazards. Ethical dilemmas of HR
managers arise when the justice is denied to the victims by the organization.
6. Restructuring and layoffs: Restructuring of the organizations often result in layoff and
retrenchments. This is not unethical, if it is conducted in an atmosphere of fairness and
equity and with the interests of the affected employees in mind. If the restructuring
company requires closing of the plant, the process by which the plant is chosen, how the
news is to be communicated and the time frame for completing the layoffs is ethically
important. During restructuring and layoffs employers have to refer to values like
empathy, patience and integrity.
7. Performance appraisal: Performance appraisal means evaluating the performance of
employees based on performance standards. It aims at performance improvement The
technical problems likely to occur are unclear standards, halo effect, leniency and personal
bias.
Workplace Ethics
Meaning
Ethics in the workplace refers to the moral code that guides the behaviour of employees with
respect to what is right and wrong in regard to conduct and decision making.
In other words, workplace ethics refers to a set of behavioural rules that create a positive
environment at work. A strong work ethic can lead to employees being fairly treated, which
in turn motivates them and develops a sense of loyalty towards the organization
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On the contrary, they will be self-driven to adhere to the timelines and quality parameters of
the task assigned to them. They will be willing to put in extra effort to meet the project
deadlines whenever needed. Such a committed approach will increase the company’s
productivity and market share. Further, the company management would feel assured that its
personnel will support them through any situation and remain committed to the growth of the
business.
3. Ethic breeds team spirit: Work ethic also helps cultivate a healthy, collaborative and
pleasant company culture. When employees feel valued, respected and inclusive, they focus
on being active contributors to the organization’s success. Such a work ethic fosters a spirit of
bonding and collaborative working among teams. Instead of credit-hogging, the mindset
moves towards credit sharing. People start seeing themselves as a collective force and focus
on the welfare of the team and not just on individual growth. This team spirit further
enhances the company’s performance in a long-term sustainable way.
4. Brand value and public perception: It goes without saying that ethical work culture will
help in boosting the company’s public image and the market value of the brand. When people
come to know of a company that has employee integrity, commitment and professionalism
built into its processes, they will automatically view it as a responsible brand. The ethical
hygiene of a company is also reflected in its products and customer service as it becomes
synonymous with transparency, quality and responsive consumer support. Such companies
gain a lot of goodwill by way of word of mouth and acquire customers organically.
5.Embracing change: One of the most important aspects of ethical work practices is that
employees become adaptive to changes. They don’t remain confined to conventions and
develop out-of-the-box thinking. They become understanding, dependable, trustworthy, self-
driven and highly responsible. Whenever the situations demand a change or there is a
challenge, they proactively adapt to the changed scenario and take steps to prevent any
disruption or drop in the performance of the organization. In companies where such ethical
working is not encouraged and employees don’t align themselves with the organization; it is
common to see them leave the ship as soon as it starts sinking.
6. Smooth implementation of decisions and policies: Major decisions in ethical companies
are usually taken after consultation with employees and taking into account their benefits and
well-being. This leads to employees respecting and welcoming decisions wholeheartedly.
This is how a strong work ethic influences the harmonious functioning of the management,
which leads to faster growth of the organization.
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1. Personal Code of Ethics: A man’s personal code of ethics that is what one considers
moral is the foremost responsible factor influencing his behaviour.
2. Legislation: It is already stated that the Government will intervene and enact laws only
when the businessmen become too unethical and selfish and totally ignore their responsibility
to the society. No society can tolerate such misbehaviour continuously. It will certainly exert
pressure on the Government and the Government consequently has no other alternative to
prohibit such unhealthy behavior of the businessmen.
4. Ethical Code of the Company: When a company grows larger, its standard of ethical
conduct tends to rise. Any unethical behaviour or conduct on the part of the company shall
endanger its established reputation, public image and goodwill. Hence, most companies are
very cautious in this respect. They issue specific guidelines to their subordinates regarding
the dealings of the company.
5. Social Pressures: Social forces and pressures have considerable influence on ethics in
business. If a company supplies sub-standard products and gets involved in unethical
conducts, the consumers will become indifferent towards the company. Such refusals shall
exert a pressure on the company to act honestly and adhere strictly to the business ethics.
Sometimes, the society itself may turn against a company.
6. Ethical Climate of the Industry: Modern industry today is working in a more and more
competitive atmosphere. Hence only those firms, which strictly adhere to the ethical code,
can retain its position unaffected in its line of business. When other firms, in the same
industry are strictly adhering to the ethical standards, the firm in question should also perform
up to the level of others. If the company’s performance is below than other companies in the
same industry, it cannot survive in the field in the long run.
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computer tools. Ethics in IT aims at the construction of tools that can be applied in systems
development and use for the consideration of significant ethical aspects.
To begin with, it seems that there are four big areas of computer ethics. They are "(1)
computer crime; (2) responsibility for computer failure; (3) protection of computer property,
records and software; and (4) privacy of the company, workers and customers”.
With the changing social landscape that naturally follows changes in technology comes a new
wave of ethical issues. These issues must be addressed and resolved for computers,
technology and the Internet to have a positive influence in society. Internet privacy,
electronic communication and computer crimes add a new layer of ethical issues that plague
those who use computers and technology on a daily basis. By identifying the main societal
issues in computer usage, you can take a stand for electronic ethics.
Information security refers to the processes and methodologies which is designed and
implemented to protect print, electronic, or any other form of confidential, private and
sensitive information or data from unauthorized access, use , misuse, disclosure, destruction,
modification or disruption.
By definition, security policy refers to clear, comprehensive, and well-defined plans, rules,
and practices that regulate access to an organization's system and the information included in
it. Good policy protects not only information and systems, but also individual employees and
the organization as a whole.
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departments discuss what is included in this policy. An example that is available for fair use
can be found at SANS.
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The incident response policy is an organized approach to how the company will manage an
incident and remediate the impact to operations. It’s the one policy CISOs hope to never have
to use. However, the goal of this policy is to describe the process of handling an incident with
respect to limiting the damage to business operations, customers and reducing recovery time
and costs. Carnegie Mellon University provides an example of a high-level IR plan and
SANS offers a plan specific to data breaches.
7. Email/Communication Policy
A company's email policy is a document that is used to formally outline how employees can
use the business’ chosen electronic communication medium. I have seen this policy cover
email, blogs, social media and chat technologies. The primary goal of this policy is to provide
guidelines to employees on what is considered the acceptable and unacceptable use of any
corporate communication technology. An example of an email policy is available at SANS.
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an emergency. Two examples of BCP’s that organizations can use to create their own are
available at FEMA and Kapnick.
Information Protection
Information protection applies security solutions and other technologies, as well as processes
and policies, to secure information. Information protection can be thought of as a sub-
discipline or component of information assurance.
Failure to design for inclusiveness and accessibility may constitute unfair discrimination.
● Avoid Harm
● Be honest and trustworthy. ...
● Respect privacy. ...
● Know and respect existing rules pertaining to professional work. ...
● Maintain high standards of professional competence, conduct, and ethical practice.
● Foster public awareness and understanding of conputing, related technologies and
their consequences.
Threats and risks to information technology (IT) systems and data are an everyday reality
for most modern businesses. You should put in place measures to protect your systems and
data against theft and hackers.
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Cyber laws contain different types of purposes. Some laws create rules for how individual
and companies may use computers and the internet while some laws protect people from
becoming the victims of crime through unscrupulous activities on the internet. The areas of
cyber law include:
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1. Fraud: Consumers depend on cyber laws to protect them from online fraud. Laws are
made to prevent identity theft, credit card theft and other financial crimes that happen online.
A person who commits identity theft may face confederate or state criminal charges. They
might also encounter a civil action brought by a victim. Cyber lawyers work to both defend
and prosecute against allegations of fraud using the Internet.
2.Copyright: The Internet has made copyright violations easier. In early days of online
communication, copyright violations were too easy. Both companies and individual need
lawyers to bring actions to impose copyright protections. Copyright violation is an area of
cyber law that protects the rights of individuals and companies to prof from their own
creative works.
3. Defamation: Several personnel use the Internet to speak their mind. When people use the
Internet to say things that are not true, it can cross the line into defamation. Defamation laws
are civil laws that save individuals from fake public statements that can harm a business or
someone's personal reputation. When people use the internet to make statements that violate
civil laws that is called Defamation law,
4. Harassment and Stalking: Sometimes online statements can violate criminal laws that
forbid harassment and stalking. When a person makes threatening statements again and again
about someone else online, there is violation of both civil and criminal laws. Cyber lawyers
both prosecute and defend people when stalking occurs using the internet and other forms of
electronic communication.
5.Freedom of Speech: Freedom of speech is an important area of cyber law. Even though
cyber laws forbid certain behaviours online, freedom of speech laws also allow people to
speak their minds. Cyber lawyers must advise their clients on the limits of free speech
including laws that prohibit obscenity. Cyber lawyers may also defend their clients when
there is a debate about whether their actions consist of permissible free speech.
7.Trade Secrets: Companies doing businesses online often depend on cyber laws to protect
their trade secrets. For example, Google and other online search engines spend lots of time
developing the algorithms that produce search results. They also spend a great deal of time
developing other features like maps, intelligent assistance and flight search services to name a
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few. Cyber laws help these companies to take legal action as necessary in order to protect
their trade secrets. agree
8. Contracts and Employment Law: Every time you click a button that says you to the
terms and conditions of using a website, you have used cyber law. There are terms and
conditions for every website that are somehow related to privacy concerns.
The Information Technology Act, 2000 or ITA, 2000 or IT Act, was notified on October
17, 2000. It is the law that deals with cyber crime and electronic commerce in India. The
Information Technology Act, 2000 provides legal recognition to the transaction done via
electronic exchange of data and other electronic means of communication or electronic
commerce transactions. This also involves the use of alternatives to a paper-based method of
communication and information storage to facilitate the electronic filing of documents with
the Government agencies. Further, this act amended the Indian Penal Code 1860, the Indian
Evidence Act 1872, the Bankers' Books Evidence Act 1891, and the Reserve Bank of India
Act 1934.
● Granting legal recognition to all transactions done through electronic data exchange,
other means of electronic communication or e-commerce in place of the earlier paper-
based communication.
● Providing legal recognition to digital signatures for the authentication of any
information or matters requiring authentication.
● Facilitating the electronic filing of documents with different Government departments
and also agencies.
● Facilitating the electronic storage of data
● Providing legal sanction and also facilitating the electronic transfer of funds between
banks and financial institutions.
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