Ethical issues in Human Resource (HR) can be an interesting topic to be written about. From many HR Systems, some areas probably have ethical issues which are not handled well. In this paper we would like to bring up the ethical issues in the HR system. We can start to understand the corporate culture especially in Indonesia that probably affects the Ethical issues. Then we will talk more about Ethical or unethical practice in the HR System including if any justification in ethical culture.
The popular question is probably why we should understand about Ethical Issues in the HR System. Some HR Practitioners will do it for the good of the company without further thought about whether it is Ethical or not. As long as it's for the good of the company then there's always a justification to justify the action. Or probably they don't realize that it's an unethical action of HR practitioners.
Understanding of Ethic in Organization
Most definitions characterize ethics as concerns with moral judgement and standards of conduct (Angeles,1981; Lacey,1990). Ethics is a traditional area of philosophical inquiry that delves into normative rules of behavior. If we argue more about Ethical then it will lead us to the understanding of law and accountability in where the organization stands and runs their activities. The definition of Ethical in Organization should depend and lead by local law. It should be complied with the government regulation to create a standard of Ethic in Organization. A debate can be raised if we relate the ethical issue just related to the law of the state, because every state has a different law and perspective.
If we look to the theory of Ethical relativism then the perspective is less normative then other theoretical. According to Ethical Relativism right and wrong are determined by the ethics of some relevant groups. For example if a group of society believes that killing people in a fight is ethical then there's no way we can argue or try to say it's wrong. We can't even try to convince them to change their belief because for them it's the right thing to do. Most of the philosophers reject the theory of Ethical Relativism and I believe most of the readers of this article also reject it. But we can't avoid the reality that the theory exists and is still relatable in some group of society.
Another view that might be taken by researchers is John Stuart Mill's utilitarianism. According to utilitarianism theory, we have to calculate how much happiness various courses of action will generate, and to choose the course of action that generates the most happiness. By this ethical theory, then the ethical action will choose where to take the most for the happiness.
Why ethics become an important issue in HRM? Perhaps a focus on ethics may be a response to disenchantment, lack of commitment, dissatisfaction, or growing cynicism in the workforce (Bateman, Sakano & Fujita, 1992; Kanter & Mirvis, 1989). And sometimes we put lack of attention in Ethics because we think the unethical as ethical. So many aspects in the HR System can be a threat for unethical issues. We can say it in recruitment, performance appraisal, compensation, reward system, and organizational exit. These parts of the HR System can be potentially misconduct by unethical issues.
Ethical Consideration in Recruitment/Staffing
When we are doing a recruitment process, which contains some tests and interviews then the candidates should be treated fair and equal. If the candidate is successful and hired then it should be by fair and equal judgement. We can't let a biased perspective come in and ignore the facts of the candidate. Same thing for the unsuccessful candidate. In some companies, the recruitment process is sometimes already set up to hire a specific candidate. The other process is just a formality of the recruitment process. The unethical issue arises when we treat 1 candidate in a special way. The process of selecting people should be based on job qualifications, fit with organization's values, fit with organization needs and fit with organization's culture. These values can be communicated throughout the selecting process. Â So the candidate can get clarity on the organization values.
Ethical Consideration in Performance Appraisal
There is much literature concerning the performance appraisal process, which indicates that managers are less committed to accuracy and honesty and will oftentimes use the process for political purposes (Banner & Cooke, 1984; Longenecker, Sims & Gioia, 1987). The performance appraisal sometimes becomes a way of the manager if they want to put out their subordinates. In fact, Performance Appraisal is where the ethical issues may be the most important and ethical behavior may be severely tested. We have to be fair and objective in every point of the appraisal. We can't put down the performance appraisal based on like or dislike. That's an unethical issue and absolutely not professional. There should be two ways of communication between the manager and their subordinates to define the target in their performance appraisal. Both sides should agree related to individual performance appraisal. And when the time to score the performance appraisal comes, then the evidence should be presented by both sides.
