Question

People have done some amazing things to get or keep money! Think of a potential or real issue of an ethical dilemma in compensation. Define the issue and think about what you did or might do under similar circumstances. What would an HR professional and company need to do to avoid or put systems in place to guard against this type of problem, especially with pay for performance plans.  

Answer 1

Answer: One ethical Dilemma in compensation is the appraisal of the sub ordinates based on political issues. Every workplace has its own type of politics and there are people who are able to get along well with some people while some others may not. At times managers make performance appraisals based on political factors like who favor them rather on the basis of performance. In such cases employees who may oppose a manager on some issues may not get a fair appraisal based on their performance. This is one of the most common forms of ethical dilemmas faced by nearly every manager and organization. If I were to do something then as a manager I will attempt to develop rationality in my decisions rather than emotions. As an employee I will report such behaviors to the higher authorities. I will also make the other employees aware about such incidence and motivate them to oppose such behaviors. At the level of organization it is important that objective performance appraisal systems are developed that are able to catch the actual performance of the employees. Such appraisal systems are purely based on performance of the employee rather than the opinion of the manager about them. Balance score card method is one example of such systems.