Page 160 - DMGT517_PERFORMANCE_MANAGEMENT_SYSTEM

Unit 13: Ethics in Performance Management

5. Taking Unnecessary Credit: Many managers show their employees work as their own. They Notes
take unnecessary credit of their employees work. These managers are either incompetent or
dislike to work, and manipulate their subordinate’s good work as their own. These kinds
of issues adversely impact the performance of employees.
6. Illegal and Unethical Practices: These kinds of activities include feudal treatment given to
employees, bribery, backstabbing, office politics, etc. All these activities affect the outcome

of performance management. According to a survey of Ernst and Young, India maintains
comparatively higher fraud levels at 42 per cent with global level of 27 per cent. Such
unethical managerial behaviour has a devastating impact on the morale, motivation,
commitment, and the performance of employees.
7. Multiple Loyalties: Many people feel an obligation to promote the interests of special
groups or friends. Loyalty is an ethical value. However, the primary loyalty is to the code
of ethics and the public good. The obligation can become unethical when it extends to
making sure that a special group or individual benefits at the expense of other groups.

Task Make a list of key ethical issues and dilemmas in Dell India Ltd.

13.4 Developing Code of Ethics

The HR professionals are responsible for developing and maintain the code of ethics for
performance management in the organisation. Therefore, it must be realized by HR professionals
that they should follow certain ethical principles for ensuring credibility of performance
management system in their organizations.
The given below are the key guidelines to maintain an ethical performance management system
in the organisation.

1. HR Responsibility: HR professionals are responsible for adding value to their organisations
by developing HR functions. HR professional are responsible for maintaining the balance
between the performance improvement and ethical behaviour in the organisation. The
HR professionals shall act as ethics custodian for the organisation and train and develop
human resources for dealing effectively with relationship issues of morality, integrity, and
honesty with other stakeholders particularly customer, suppliers, and society at large.
2. Developing Standards: Human resource professionals must strive to meet the highest
standards of competence and ethics and keep abreast of organizational strategy, mission,
and objectives on a continuous and consistent basis. They must drive ethics training of top

managers and employees on a wide scale and educate them on the significance of ethics
in attaining high performance standards. Through performance management system, HR
professionals shall transmit ethics to employees, managers, and external stakeholders.
3. Ethical Leadership: Human resource professionals must exhibit individual leadership
in making performance management a truly business aligned, transparent, and
credible management endeavour. They should act as an ethics communicator for their
organisations.
4. Fairness and Justice: There should be fairness and justice in respect of rewards and
recognitions for employee’s work achievements and their contribution in improving the
organisational competence and performance. Human resource professionals are ethically
responsible for promoting fairness and justice in the organisation. They must enable a
culture where ethical behaviour and action is a key performance criterion.

LOVELY PROFESSIONAL UNIVERSITY 155