Designing Key HRM Plans and Policies - Example

Name A Report Submitted Institution Course Date: Being ethical and socially responsible is not just the right thing for an organization to do: it is a critical factor for business success while ensuring its sustainability. Executive summary This is a report that aims to provide reasons as to why ethical and social responsibility is a critical issue for organizations. It also touches on the commitment and implementation of their sustainability agenda. The main basis is to highlight key issues that can be addressed when preparing Human resource policies and plans. It also provides strategic recommendations that will help organizations when designing HRM plans and policies. Table of Contents Table of Contents 3 Introduction 4 Main body 5 Business associations 6 Communications 7 Fairness and Honesty 7 Conflict of interest 8 Abusive and intimidating behavior 8 Privacy issues 9 Financial mismanagement 10 The role of business in promoting sustainable development 10 Responsible consumption 11 Employee benefits 11 Intellectual property theft 12 Conclusion 12 Recommendations on designing key HRM plans and policies 13 References Lists 14 Introduction Human resource managers play an instrumental role in the achievement of organizational goals. Human resource managers who perceive corporate social responsibility as a main driver to success can be very influential in the realization of targets and objectives. It is the responsibility of HR managers to communicate and also implement policies, plans and behavioral changes in the organizations. Such managers make it a mandate to fulfill an organization’s objectives through integration of CSR. Strategic areas such as succession planning, organization design, design of recruit strategies and retaining talent all fall in the Human resource docket. The human resource manager must therefore, develop a strategy that will aim to avoid problems in the implementation of plans and policies (Holbeche, 2012, p. 447). The report provides a discussion of the key strategies that should be addressed when preparing policies and plans of an organization. Recommendations will provide an insight on how the strategies will help the organization achieve its goals and objectives. Organizations operate in order to make profits. Their operations depend on the resources available in the society. The society represents the groups that interact with the organization such as employees, customers, competitors, shareholders, suppliers, and government. Organizations therefore, have a social obligation to give back to the society. Corporate responsibility includes all the duties organizations do to protect the interests of the society; such activities and duties may be social activities or routine business. Development of social responsibility comes with added operational and cost changes. The changes are often beneficial than otherwise hence it is a significant factor to consider in an organization. Main body Strategy is a long-term approach that is usually based on a shared vision in order to achieve stated outcomes. Policy provides a framework, guidance or principles that aim to determine actions, decisions and other matters of the organization. Social and ethical aspects feature highly in an organization. A sustainability strategy is an extraordinarily vital tool especially in the context of an organization where core business activities are carried out. Well established strategies are effective especially when an organization wants a change of behavior. An effective strategy requires input from all departments across the organization (Wilson & Dunn, 2007, p. 6). Implementation of plans and policies requires dedicated staff that will promote the policy, keep it active and relevant and also monitor its performance. Business ethics are standards and principles that find out acceptable conduct in any organization. Behavior that is acceptable, is always determined by each individual’s personal, moral principles and values, competitors, customers, government regulators and the public (Ethisphere, p. 38). Some organizations give room for employees to bend the rules. It is for this reason that unethical activities are being reported in organizations. In business, it is not only profit that should be considered but also social implications of the activities being done. Social responsibility is an obligation that aims to maximize the positive impacts and reduce the negative impacts on the society (Ethisphere, p. 39). It concerns the impact that the entire business activities have on the society as a whole. Regulations and laws have codified the basic social and ethical issues. This encourages businesses to conform to the standards, attitudes and values set by the society. Ethics go beyond legal issues of any society or organization. Ethical conduct builds trust among persons and business relationships. This promotes and validates confidence, and commitment in business relationships. Organizations that have had cases of unethical behavior, find it difficult to establish confidence and trust (Ethisphere, p. 40). Ethical issues are not only limited to for-profit organizations but to all the businesses and organizations. Any decision in an organization is judged as being ethical or unethical, right or wrong. Negative judgments affect the ability of an organization to build relationships with suppliers and suppliers, retain employees and attract investors. Ethical and social issues are the most important and should be recognized during the early stages. Many business issues are sometimes straightforward and easy to tackle, but in reality, they are very complex. An individual needs to be a professional in order to understand what is ethical and acceptable (Ethisphere, p. 41). The major cause of unethical behavior in many organizations is aggressive business objectives and financial goals. Many of the issues relate to the concerns and decisions that human resource managers have to deal with daily. There are many ethical issues in business and can be categorized in the context of relation. The issues include business associations, conflicts of interest, abusive and intimidating behavior, communications, fairness, and honesty. Business associations The behavior of businesspersons towards suppliers and customers and their fellow employees generate ethical concerns. Ethical behavior in an organization involves meeting obligations and responsibilities, avoiding undue pressure that could force others to act in an unethical way and keeping secrets of the organization (Ethisphere, p. 48. Managers have the tendency to influence employees to perform actions that are contrary to the practices of the company. The plans and policies of the company should be formulated in such a way to avoid such practices. It is the responsibility of the HR manager to create an environment, which helps the organization to achieve and fulfill its objectives and responsibilities. Communications This is an area where ethical concerns often occur. Deceptive selling tactics, misleading advertising make consumers angry and dissatisfied, and this could see the downfall of the organization (Ethisphere, p. 46). Truthfulness about the quality and safety of the product is imperative to consumers as well as the organization. Some organizations do not provide adequate information about the similarities and differences between products. An organization’s policies should provide for adequate information where consumers can tell the differences and similarities of products. This will mean that customers will have clear information on the organizations products and services. Fairness and Honesty This is at the heart of the business ethics and relate to the values of decision makers. The business individuals are expected to follow all regulations and laws. Besides obeying the regulations and laws, they should not harm employees, customers, competitors and clients. Honesty and fairness relate to the way employees use resources. The policies and plans made should focus on those actions that should be put in place to ensure proper use of resources. Competition is another aspect of fairness (Ethisphere, p. 45). Many laws have been passed to make monopolistic practices illegal and foster competition. Nevertheless, despite this, some organizations gain control over markets through the use of practices that are questionable and that could harm the organization. Conflict of interest This is the most common ethical issue, which exists when an individual chooses his or her own interest over those of others (Ethisphere, p. 44). The policies of an organization need to be implemented in a way that personal interests are separated from business dealings. Examples of conflicts of interest include taking bribes, which benefits some individuals at the expense of the society or organization. Abusive and intimidating behavior This is a very common ethical problem for organizations. The issue is specifically prevalent among employees. The concepts could include false accusations, physical threats, harshness, insults, and unreasonableness, ignoring someone and being annoying (Ethisphere, p. 43). Abusive behavior is very hard to assess and also manage. This is because of the diversity of lifestyles and cultures. Organizations should realize the depth of legal and ethical issues especially in a multicultural environment. Such behavior could threaten the productivity of the workplace. Sustainability appeals to the progressive self-interest and often invokes the social as well the economic performance of the organization. Organizations should operate in a manner that secures the long-term economic performance of the business. This can be achieved by avoiding behavior that is socially and ethically detrimental (Porter & Kramer, 2006, p. 4). Social responsibility has been noted to be a source of remarkable social progress as the organization applies its resources to the advantage of the organization and society as a whole. Some countries require that companies disclose social and ethical risks in its annual report. Through this, they are monitored in the way they operate and run their businesses. There are some justifications that are made for corporate social responsibility. They include sustainability, moral obligation, reputation and license to operate. The argument being the fact that, those organizations have a duty to do the right thing, which is often the goal of any business. Managers who do not have an understanding of CSR often postpone short-term costs of violations (Porter & Kramer, 2006, p. 5). What they do not know is that it can lead to greater costs when the organization is charged as having violated its social obligations. Organizations should choose the social and ethical issues to address. This is because no organization has the ability to solve all the issues or bear the cost of doing so (Porter & Kramer, 2006, p. 9). A consideration should be made on whether a cause of action is worthy in a way that presents an opportunity that benefits the society and the organization. Issues that widely apply in the economy have a great significance for some organizations than others. Human resource planning has several benefits that aid the organization realize its goals and objectives (Kumar, 2010, p. 50). The benefits include reduced labor costs, optimum utilization of the work force, creation of highly talented personnel, identification of gaps in existing work force, improvement in overall business planning, creation of awareness in the organization, and career succession planning. Key strategic issues to be addressed in preparing Human Resource policies and plans especially in the field of Ethics, Corporate Social Responsibility (CSR), Values and Sustainability include privacy issues, employee benefits, financial mismanagement, responsible consumption, intelectual property theft, and the role of business in promoting sustainable development. Privacy issues Including privacy issues in the plans and policies of an organization helps the organization to improve its reputation. Privacy issues should be taken critically in order to ascertain an environment of trust that attracts best employees and also keep customers loyal. An organization that establishes a comprehensive privacy policy is less likely to be involved in privacy disputes (PIPEDA, p. 2). Privacy policies should outline the way information was collected, how it was used and how the information was disclosed to any authorized party. Personal information of customers and employees should be given adequate security as this puts everyone at ease. Files and computers containing personal information should be protected using firewalls, passwords and encryption. Employees who are really in need of customer information for completion of their jobs should be noted and limited to those employees only. Financial mismanagement Financial management and the lack of it is always a major challenge in an organization. Some organizations have a core activity of spending money while others take money as an asset through which they perform their core-activities (Blokker, 1994, p. 302). The human resource manager should include a well laid out financial plan. The plan should contain financial regulations that govern the way financial resources are utilized. When managers have a conflict of interest, the door to financial disaster and mismanagement is opened. Rules concerning financial use should be well laid to ensure effective supervision. Controls and financial reporting by external auditors may seem an effective way to overcome the conflicts of interest, but it does not fully solve the ambiguous issue of financial resources. The role of business in promoting sustainable development The role of business is central and critical to sustainable development. The main reason why the role of business is becoming critical is that many issues and priorities of sustainable development are entwined with business activities (Larderel, p. 1). For sustainable development to be attained, it has to be integrated into the plans and policies of the organization. Sustainable development means adoption of the business strategies and activities that meet the organizational needs and its stakeholders. Sustainable development is in itself good business. It makes the organization have a competitive advantage over its counterparts. It has the ability to change in response to the societies’ evolving priority and increased information. The sustainable development concept has to be incorporated into the plans and policies of an organization if it is to follow the principles of sustainable development. Responsible consumption Organizations and businesses provide the products and services that people consume. Organizations have a contribution to make especially in changing incentives provide to suppliers and staff, and also in social changes. Social change is required in the achievement of reasonable consumption. Some organizations undergo a transformation where they start seeing themselves as citizens. Through this, they see themselves as having duties to employees, society and their stakeholders (Michaelis, 2003, p. 920). The shift will require an inclusion of responsible consumption in their policies. The areas in which the changes will be made will include customer relations, personnel, remuneration, and social engagements. Employee benefits Without employees, an organization cannot achieve its goals. Employees expect organizations to pay them well for their work, listen to their grievances and ensure equal treatment for all. The plans and policies of an organization should include employee benefits and executive compensation. An organization should include a strategy through which their employees are compensated. The compensation could result because of retirement, retrenchment or any injuries at work. A proper strategy should be incorporated in the policies and plans of the organization. By so doing, such issues as bribe taking by employees will be avoided (Ethisphere, p. 44). The employees will have a sense of belonging because they are considered valuable by the organization. Taking bribes to cater for their own interests at the expense of the organization will be a thing of the past. Intellectual property theft Intellectual property is an innovation, method, symbol, unique name or logo that is used for commercial purposes. Trademarks, patents or copyrights are used to protect it. Taking another person’s work and making your own without mentioning the author or source is an ethical issue. In an organization or business, employees can copy reports or take other employees’ work and present like their won. Managers can also take credit for work performed by his juniors (Ethisphere, p. 48). The HR policies and plans should include a strategy to avoid such issues and also to prevent managers from taking advantage of their juniors. The policy should include measures to be taken in the case that the theft occurs. Conclusion Ethical and social issues arise very often in businesses. The recognition of an ethical issue often depends on the issue that is in practice. Most managers concern themselves with issues that have long-term consequences and those that affect those close to them. Ethical decisions in an organization are influenced by some three factors. The factors include the opportunity to engage in misconduct, individual moral standards and influence of managers and employees. It is therefore the responsibility of the human resource manager to see the smooth running of operations. This can only be accomplished through the establishment of rules and policies. They are critical in achieving consistent ethical compliance in the organization or business. A company that fails to provide direction gives a chance for conflict and confusion resulting in an opportunity for misconduct. The main social responsibility for any organization is the ability to provide equal opportunities for all employees regardless of their race, religion, age, sex or nationality. Recommendations on designing key HRM plans and policies There should be a strategic link of the department’s Human Resource management programmes to organizational objectives and mission. The top management should be committed to the philosophy that stakeholders are a key to the successful achievement of organizational goals and objectives. The plans and policies should therefore cater for the needs of all stakeholders. The organization’s top management should identify any ongoing HR issues. The issues should be identified because they could affect the organization’s effectiveness. The organization should prioritize the strategic and ongoing HR issues in order to determine the cause of action. Issues identified should be prioritized and actions taken in respect of each issue. This is only possible through the input of department’s top management. Any organization should be able to identify its strategic challenges. The challenges consist of both the external challenges such as responding to the ever-changing public issues and internal challenges such as internal organizational issues. References Lists Blokker, N 1994, Towards more effective supervision by international organizations, Volume 1, Boston: Martinus Nijhoff Publishers. Holbeche, L 2012, Aligning Human Resources and Business Strategy, New York: Routledge. Kumar, R 2010, Human resource management: Strategic Analysis text and cases, New Delhi: I. K International Pvt Ltd. Larderel, J, Sustainable development: The role of business, Public Administration and Public Policy- Vol. http://www.eolss.net/Sample-Chapters/C14/E1-34-09.pdfII. Michaelis, L 2003, The role of business in sustainable consumption, Journal of Cleaner Production 11 (2003) 915–921 PIPEDA, Privacy Guide for small businesses: the basics, http://www.priv.gc.ca/information/pub/guide_sb_e.pdf. Porter, M & Kramer, M 2006, Strategy and Society: the link between competitive advantage and corporate social responsibility, Harvard business review. . Read More