Page 164 - DMGT517_PERFORMANCE_MANAGEMENT_SYSTEM

Unit 13: Ethics in Performance Management

Value Creation Notes
I am reminded of a bill-board advertisement of a popular brand of two-wheeler some 20
years ago. It read: “Fill it, Shut it and Forget it!” This was to communicate how easy it was
to handle the bike.
Looking at the way in which some organisations handle performance management, one is
reminded of a similar approach. Organisations are more concerned with filling it, closing

it and filing it away without much thought being given to the action that should follow a

good appraisal session.
The appraisal process conducted along the staircase model promises clear value creation.
Until then, McGregor taking an uneasy look at appraisals is well justifi ed!
Source: www.thehindubusinessline.com

13.6 Summary

The major concern of performance management is performance improvement in order to
achieve organizational, team & individual effectiveness
A performance management system should work on principles of ethical considerations
leading to transparency and respect for all.

Ethics is a system or code of moral standards of a particular person, group or profession.
An ethical performance management system is designed to make transparency in its
operation. All the parties involved in performance management system respect each
other’s needs, values, and preoccupations.
The HR professionals are responsible for developing and maintain the code of ethics for
performance management in the organisation.

MNCs operate in a number of countries for various business and competitive reasons.
Effective performance management is important as a competitive advantage. Therefore,
performance management system assumes critical importance in the competitive priority
of MNCs.

13.7 Keywords

Corporate ethical programme: A corporate ethics programme is made up of values, policies, and
activities which impact the propriety of organisation behaviour.’

Ethics: Ethics is a system or code of moral standards of a particular person, group or profession.
MNC: MNC is a company that has business activities beyond its domestic borders.

13.8 Self Assessment

Fill in the blanks:
1. Ethics is a system or code of ......................... of a particular person, group or profession.

2. Ethics is called a ........................., because it presents the principles of morality in a systematic

form and seeks to find the basis upon which they rest.
3. ......................... is a company that has business activities beyond its domestic borders.
4. Effective performance management is important as a ......................... advantage.

LOVELY PROFESSIONAL UNIVERSITY 159