In situations where human resource management fails to develop effective polices targeting the creation of an environment that enhances equality and better working conditions, it is possible to lose in terms of human resource capacity at the organizational levels since most investors, potential partners and employees will seek the services of other organizations with better polices (Cornelius, 2011). Effective human resource management requires the creation of an environment that enhances employee loyalty.
The establishment of ethical policies and principles as part of organizational culture provides the management with a platform of creating a mutual relationship with employees with regard to the development of trust and loyalty (Köster, 2010). Loyal employees are considered important in a company because they have the ability of mastering the production process, which improves on their productivity and efficiency overtime. The development of a team of loyal employees whose activities are defined by high-level professionalism can help the human resource department to reduce recruitment and training costs hence enhancing the financial position of an organization (Saiyadain, 2009).
For human resource management to ensure that an organization is acting in accordance with existing ethical principles there is need to develop and display the organizations committees to ethics in every area of business (Saiyadain, 2009). Developing human resource ethical policies and developing training programs training the management to ensure that they are aware of organizational expectations with regard to ethics enhances the ability of the organization to create an en environment that promotes dignity, mutual respect, and ethical decision-making processes (Durai, 2010).
Analysis and evaluation Different theories have been espoused with regard to ethical decision-making processes. According to egoism, ethical decision should be made while considering self-interest. An action that benefits an individual, according to this school of thought is good and should be promoted (Ferrell et al, 2016). The theory however cautions against acting in selfishness, which entails the pursuit of individual interest at the expense of others. This ethical theory has been challenged based on the understanding that it enhances the development of selfish behavior.
In the context of human resource management, making decisions based on egoism is incompatible with the objective of acting in the interest of the organization (Luppicini, 2013). Ethical policies developed on egoism will not only be subjective but also damaging to the ability of an organization to ensure accountability and transparence. According to the utilitarian approach to ethical decision making, an action is considered appropriate if it promotes happiness to majority of people. According to this school of thought, the process of making an ethical decision is defined by the expected consequence (Arnold et al 2013).
A decision that produces the grates happiness to majority of those affected by a decision can be considered as ethical (Luppicini, 2013). One of the problems of this approach to ethics is that it encourages ambiguity with regard to the greatest number of people. In addition, using the consequence of an action to justify its morality affects the ability of organizations to engage in the development of objective ethical polices (Ferrell et al, 2016). The deontological theory assets that when individual are involved in situations of ethical dilemma, they have the obligation of acting in accordance with that which is right (Arnold et al 2013).
The moral obligation of an individual in the view of this theory should define the decision making process. The proponents of this theory argue that when acting the motive of an individual should be to do the right thing irrespective of the prevailing circumstances (MacKinnon, 2014). The development of ethical polices from the deontological school of thought encourages objectivity and the ability of different individuals to act in accordance with polices as a way of enhancing mutual relationships and trust within an organization (MacKinnon, 2014).
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