A. The Purpose of Business Firm manager is hiring.

Employee hire people who will

maximize the efficiency of the firm, which is an
 Garrett (1980) identifies two points of views organizational ideal.
relating the firm:
2.1 Screening
 Social Point of View - Firms exist to supply - When done properly, screening ensures a qualified pool of
goods and services to consumer as candidates and guarantees the everyone been dealt with
efficiently as possible. fairly. Selection begins with a job description and
specification.
 Individual Perspective - The company
exists to provide income, power, prestige, 2.2 Tests
creative satisfaction. - Testing is an integral part of the hiring process. Test are
designed to measure the applicants verbal, quantitative and
- Manager is obliged to run the firm as efficiently as
logical skills.
possible within the limits set by the primary ethical
standard. 3 Types to determine the tests:

- Profit though they motivate some individuals, are not  Aptitudes tests
the only goal of the corporation/firm itself so much as  Skill tests
a possible measure of its performance.
 Personality tests
B. Ethical Considerations in Transaction With  Successful hiring starts from using a valid test
Employee
1.Validity
1. Identifying ethical concerns in employee transactions
2.Realiability
- Supervisors and managers are continually involved with
employees and prospective employees. They are 2.3 Interviews
responsible for numerous decisions that affect the self- - When ethical issues arise in interviewing, they almost
esteem, personal growth, morale, and economic well-being always relate to the manner in which the interview was
of those they manage. conducted.
- The literature of personnel management rightly cautions
 1.1 Selective new employees against rudeness, coarseness, hostility, and condescension
in interviewing job applicants.
 1.2 Awarding merit increases

 1.3 Setting goals and performance standards 3. Promotions

- In theory, the same essential criterion that applies to
 1.4 Evaluating performance hiring also applies to promotions: job qualification
- How long you have been with a firm, how well you are
 1.5 Giving performance feedback liked, whom you know, even when you were last promoted
– all these influence promotions.
 1.6 Disciplining
- the key moral ideal here is fairness.
 1.7 Selecting personnel for promotion
3.1 Seniority
 1.8 Terminating employee services - refers to longevity on a job or with a firm.

 1.9 Communicating - individuals with the most longevity automatically receive

the promotions.
 1.10 Supporting employee ideas and efforts
3.2 Inbreeding
 1.11 Delegating work - which is the practice of promoting exclusively from
within the firm.
 1.12 Arranging, training and development - the most competent, whether within or outside the firm,
opportunities should receive the position. In this way, responsibilities to
 1.13 Providing healthful, safe working conditions owners are the best served.

 1.14 Granting time off with or without pay 3.3 Nepotism

- is the practice of showing favoritism to relatives and close
2.Hiring friends.
- A primary function of the employer or personnel
4. Discipline and Discharge 5.3 What is the nature of the job itself?
- For an organization to function in an orderly, efficient, - Some jobs require more training, experience, and
and productive way, personnel departments establish education than others. Some are physically or emotionally
guidelines for behavior based on such factors as more demanding. Some jobs are downright dangerous;
appearance, punctually, dependability, efficiency, and other socially undesirable.
cooperation. - Risky or unskilled jobs often attract the least educated and
- Most ethical issues in this area relate to how the manager the most desperate for work, thus occasioning work
imposes the discipline. exploitation.
- Just cause refers to reasons for discipline or discharge that
deal directly with job performance. 5.4 Is the job secure?
- A job that promises little or no security offends a basic
4.1 Ethical approaches to maintaining discipline worker need. In such cases, employers should seek to
- It is a fundamental concept in organizations that managers compensate workers for this deprivation.
are responsible for maintaining discipline among the - Compensation could take form of higher pay, fringe
employees they supervise. benefits, or a sensible distribution of the two.
- It is helpful to remember the word discipline comes from - On the other hand, guarantees of job security are grounds
the same root as the word discipline and means to teach so for wage compromises by labor.
as to mold
5.5 What are the employer’s financial capabilities?
 Make sure your players know the standards of - A company’s profit margin may be so narrow that it
performance desired. cannot afford to pay higher than a minimum wage.
- Another’s may be so large that it can easily afford to pay
 Teach them how to maintain standards. more than it does.
 Encourage them as they progress in the direction 5.6 What is the law?
desired. - The law requires that businesses pay at least minimum
wage. Even when a particular company is exempt for the
 Compliment them when they attain standards and
law, this minimum can serve as a guide for setting wages.
continue to reinforce positive performance
- Naturally there are other factors that employers should
periodically.
consider in determining wages.
- Unfortunately, even the best managers will, at some point,
C. Ethical Implications in Choosing Between People
have an employee who does not follow the rules.
Consequently, this manager, as a coach, will have to  Managers continually choose between people
counsel the player. when making decisions such as which job seeker
- This disciplinary guideline may take the form of training, to hire, which employee to promote, or which
a warning, or reprimand. employee to lay off.
5. Wages The following questions are designed to promote
- Every employer faces the problem of setting wage rates objectivity:
and establishing salaries.
 1. Am I biased toward an employee for any
- There are so many variables involved that no one can say reason?
with mathematical precision what a person should be paid
for a job.  2. Am I evaluating demonstrated skills bona fide
- In general, because work functions to fill human needs, against job requirements?
companies should seek to pay a wage that significantly
helps individual satisfy their basic needs.  3. Am I overly influenced one way or the other
by irrelevant or surface characteristics?
5.1 What is the prevailing wage in the industry?
 4. Am I being pushed in a direction not of my
- Although this factor is not fool-proof or even a moral
choice but by someone else?
barometer, the salaries similar positions in the industry earn
can provide some direction for arriving at a fair wage.  5. Do I measure all people against the same
criteria?
5.2 What is the community wage level?
- This point recognizes that some communities have a  6. Is age or salary level influencing my thinking
higher cost of living than others. more than it should?
- The cost of living relates to basic maintenance needs and
must be considered very seriously in establishing a wage.
  7. Am I analyzing the essential elements of this G. Administering reward system
transaction or am I just following past practice
that should be tested?  Incentives systems are designed to reward people
by performance and their overall contribution to
 8. Would I be willing to have my decision the organization. Manager must be honest.
criteria applied to me under similar
circumstances?  They must understand the work being performed
and be able to differentiate clearly between levels
D. Ethics and Performances Appraisal of performance by individuals.

 Business Managers, sometimes resist doing  They must also have some personal convictions
performance appraisals on the grounds they do about what is right and wrong, as well as the
not want to be judge and jury on an employee’s courage to strand behind their decisions.
career. Some feel positive feedback will cause
employees to let down, Others think that negative
feedback is demoralizing, demeaning, and
SUCCESSFUL MISERABLE
perhaps unethical, so they give an employee
APPRAISERS FAILURES
better performance appraisals than they deserve.
Leader who engage in Those who establish
 Ethics become a matter of honesty and fairness in mutual goal setting and arbitrary, unilateral
open communication performance goals or
dealing with issues both the manager and the
standards. They may or
employee understand.
may not communicate
E. Improve your Ethical Batting Average them to employees
Leaders who establish Those who have not
 An Ethical Appraisal is a fair and honest clear, measurable thought through what
assessment of performance against mutually expectations and provide they expect or don’t
established and understand goals and standards a climate conducive to know how to measure
that leave both parties feeling they have gained success success, thereby creating
a threatening atmosphere
something.
in which to work
 Successful Appraisers - You can be successful at
performance and have clear conscience. Leaders, who ask Those who never seek
questions, listen carefully the opinions of others or
 Miserable Failures - That filled with doubt and and appreciate and use listen, yet have a solution
remorse the ideas of others for everyone else’s
problem
Leaders who publicly Those who spend too
F. Ethics and Communication With Employees recognize positive much time looking for
performance and things that are wrong and
 When employees discuss how trust is built in privately correct too little looking for
work groups, they stress the importance of open improper performance things that are right
and honest communication. They refer to this when it occurs
kind of communication as leveling, or telling it Leaders who give honest Those who accept
like it is. feedback on performance substandard performance
against mutually or misrepresent it in
 Managers wanting to be more fair and open in understood concern providing feedback
their communication should ask themselves Leaders who follow Those who do not take
these questions frequently: through on their their responsibilities
commitments seriously
 What do employees working for me need to
know?

 What do employees working for me want to

know?

 How do I provide it?

 When do I get someone else to provide it?