Question

In: Economics

Can HRM be considered an "ethical" field of management if it is responsible for taking actions...

Can HRM be considered an "ethical" field of management if it is responsible for taking actions such as laying off or firing employees?

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Expert Solution

HRM and Ethics
Human resource management is the branch of management to deal with the manpower planning, development and welfare of both employee and the employer. This area of management demands higher ethics in functioning for the development of the organization. The department needs high concern and to follow morality in dealing with employees in compensations, development in productivity, health etc. The idea of human resource management itself is to make employees paid better and give them additional benefits for being a part of the production process.
Even though the management department focuses much on the welfare of employees, the department obviously has the pressure from above to encourage production with least cost. A complete ethical approach may give lose to the performance and profit of an organization or industry. Firing employee or taking actions against them, lay off from jobs can be considered unethical in the employee side, the department also has to take care of the company’s views. Employees who are inefficient in their jobs if are provided better welfare, benefits from the part of the company, may take the right to fire them when they are less productive in the work. At the same time, a company which exploits its employees cannot justify firing them. Also, the department cannot stay paying or keeping employees without having an optimal level of production. Human resource management always functions in between the employer and the employees for the welfare of the both. The management demand high ethical concern and follows that far better than ever, face limitations on various factors including dealing with inefficient employees whom are paid better, manage the crisis of the company or firm and balance the welfare between employees and employers. These all factors constituting, the department somehow finds it difficult to follow a complete ethical form of functioning.


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