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Business organizations will exists without their employee. Different employees prform different
functions. Think about it: without them…..
Business organizations need their employees to ensure that they will be able to perform what
they promise to their customers, and more.
In a business organization, one will have to make decisions on how to treat others in the
workplace and how he or she wants to be treated. It is very similar to the setting in the
classroom, there are written and unwritten rules on how you should talk, work, and deal with
your classmate.
For example
If your teacher divides you into several groups and you are grouped with people you do not like,
you have to set aside your differences and make it work. You have to respect each other and understand
that you are in that group to work on a project, not to hate each other.
Business organizations face ethical challenges in the workplace in managing their employees.
Research shows that business organizations that place employees at the core of the companies’
strategies produce higher long-term returns to shareholders.
One of the most talked about employment-related ethical issue in the Philippines is the
contractualization of employees. Employees under this arrangement do not enjoy the social
protection benefits that a regular employee receives such as
SSS
PhilHealth
Pag-Ibig fund
Security of tenure
Contractual employees are given a five-month contract to work in a company. When the
contract expires on the fifth month, after a few weeks they will be rehired by the company
under the same arrangement, circumventing the law-mandated employment regularization
status, which is required upon staying with a company for six months.
Reports noted that the greatest influence on employee work commitment is fairness at work,
followed by care and concern for employees, which are all key components of an ethical work
environment. Employees who are disengaged and not motivated to commit to work tend to
violate company standards.
The immediate supervisor or manager handling the employees also plays a key role in the
happiness of the subordinates. They are seen as the representatives of the company; if they
treat the employees with respect, honesty, fairness, and trust, the subordinates feel valued in
the company which more likely will motivate them to do better.
Rewards and a compensation benefits that the employees receive from the company also
impact the attitude and motivation of employees to do things better and more efficiently.
Employment Relationship
(Employer Responsibilities and Employee Rights)
Companies have a responsibilities to take care of their employees and provide for their
workplace needs. When an employer hires an employee, an employment relationship is formed.
Employment already raises ethical issues of power, authority, obligation, responsibility, fair
treatment and expectations.
There are times when an employee commits a mistake, and the employer will have to take
action to give the employee a sanction commensurate with the mistake committed. However,
before that takes place, the employees will have to undergo due process, which is defined as the
“rule that a legal case must be done in a way that protects the rights of all people involved”. In
business context, it is the process that an employee facing a disciplinary action undergoes to
ensure fair treatment and trial.
For example
If your classmate tells your teacher that you cheated on an exam, the teacher must not give you a
sanction without du process. The teacher will have to investigate further ask student who reported you
about the instance, what was the manner of cheating done, and in which exam. The teacher will most
likely talk to you, too, to ask if it is true, and if it is, probe into what motivated you to do it. if it was your
first offense, depending on the guidelines of the school, you will probably receive a verbal warning and
the teacher will most likely talk to the student who reported you and ask him or her why he or she lied
about you.
In business organizations, due process includes effective mechanisms and procedures to ensure
that there is justice and fairness among employees when disciplinary action is taken against
them. It gives the employee the right to appeal the disciplinary action, present his or her
position, and be treated impartially. If a sanction will be given, the company has a set rule of
guidelines, called the code of conduct or employee manual, which contains sanctions given for
Downsizing
There are times when a company needs to downsize, that is to terminate employees to limit
costs du to financial difficulties, closure of offices or branches, automation and use of
technology that replace human resource, and other reasons that the management may deem
fit. Terminating workers is not necessarily an ethical decision; however, companies must act
ethically in the process of downsizing.
When laying off employees, the management must maintain respect, dignity, transparency, and
consistency. The stakeholders that will be affected by the action must be informed about the
decision regarding downsizing. This should not come as a surprise for the employees as they
should be aware of the current business conditions, but the notice should be given as soon as
the need is determined.
The feeling of uncertainty among the employees may bring about demotivation in the
workplace, so letting a worker remain in a position for a period of time after notice of
termination may not be the best option. The cost and benefits of downsizing must be weighed
intently to provide a smooth transition. Normally, a termination pay is provided to the
terminated employee to help the employee cope with the expenses while looking for a job.
Employers have the responsibility to protect the employees’ health and safety while at work.
Health and safety are intangible assets that employees have and are valued both as a means for
attaining other valuable ends and as ends in themselves. They both have instrumental and
intrinsic values. Instrumental value is defined as a means to an end.
For example
you value your shoes because they protect your feet when you walk. Intrinsic value pertains to
the value of something in itself. If your pair of shoes protects your feet, is that a good thing?
if you say yes, you can conclude that shoes are a good thing because it help you get to where
you need to go, and help you reach your goals. Having a shoes makes you happy.
Instrumental and intrinsic values may be viewed in business perspective this way. If, for
example, a construction worker dies at work in an accident, the instrumental value of the
employee can be measured in part by the lost wages have been earned had that person lived.
However, the intrinsic value is much more abstract, what is a person’s worth and how do you
measure it?
group
age
social class
gender orientation
race
religion
or any category which that a person belongs rather than on individual merit.
In the Philippines, age discrimination is forcing Filipinos to find work abroad. According to Susan
Ople of the Ople Policy Center, many companies are reluctant to hire “older” job applicants.
People above 30 yrs old are considered “old” and are being discriminated against no matter how
good their work ethics are or how skilled they are in their field.
Diversity refers to the presence of differing culture, race, religion, language, ethnicity, gender, ability,
experience, age, social class, and other categories in the workplace. Workforce diversity is important in
organizations because it helps enhance competitiveness, expand organizational capabilities, encourage
sharing of expertise and skills from past experiences, and diversity is beneficial to the company, conflicts
may also arise due to the differences of the employees.
You learn to deal with people with different backgrounds, work styles, or capabilities, and you
try to balance each person’s characteristics in order for you to finish the task assigned to you.
One Australian company that hires Filipino employees to serve its diverse market from different
countries emphasizes the importance of workforce diversity.