Human Resource Management - Case Study Example

Human resource management March 9, Human resource management The case identifies challenges that managers’ undergo in order to meet investors’ objectives of profit maximization, and effects of the challenges. Shareholders and managers benefit when a company’s employees focus on making the company more profitable. Under the objective, the company makes profit that stockholders earn in dividends and that is likely to earn managers bonuses for meeting expectations. Achieved profitability is also likely to improve the company’s financial image and therefore stock prices and these identify increased worth of investments or profits should an investor trade in his or her stock.

The benefit is likely to be short term as pressure is likely to overwhelm employees. Short-term goals conflict with long-term goals and ethical standards. Even though the goals may be consistent, short-term goals may undermine strategies for achieving long-term goals. Short-term goal and long-term goal for improved profitability illustrate the conflict. Focus on short-term profitability goal through reduced expenses and increased workload is likely to cause lack of motivation among employees and lead to underperformance and employee turnover after a period.

These will then lead to low level of production and high cost of personnel recruitment and training. High-level profitability may then be achieved in the short-run but it conflicts with long-term profitability objectives. Short-term profitability objectives may also force managers and employees to use unethical practices either to achieve desired targets or to misrepresent data to create the impression of achieved targets. As a manager in the described situation, I should resign from my position instead of deceiving people or harming the business.

This is because of ethical values of integrity, honesty, and beneficence, and ethical theories of utilitarianism and deontology that requires operations to be consistent with existing regulations and to avoid harm (Bredenson, 2011). ReferenceBredenson, D. (2011). Applied business ethics: A skilled-based approach. Mason, OH: Cengage Learning.