Ethics in Performance Management

1. Ethics in Performance Management

2. ETHICS Ethics is a process of rational thinking aimed at establishing ‘what values to hold and when to hold them’. • A moral principle or set of moral values held by an individual or group. Ethical - Of or based on a system of moral beliefs about right and wrong, in accordance with principles of professional conduct. Managerial ethics Standards of conduct and moral judgment mangers use in their business

3. Ethical Behaviour • Higher employee loyalty • Encouragement of personal sacrifices • Honouring of organizational policies • Reduction in turnover • Satisfied Customers

4. Unethical Behaviour • Manufacturing - use of inferior quality of material • Marketing – misleading customers about product features or service differentiations • Distribution – changing priority of booked orders without informing customers • Customer care – not keeping commitment on guarantees

5. Ethical and Unethical Behaviour

6. Source of Ethics Organizational • Employer • Managers • Peer group Personal • Individual employee • Family • Friends • Profession

7. Source of Ethics Environmental • Society • Regions of country • Religious beliefs • Law

8. Objectives of ethics in Performance Management • Building a better society • Cultivates High-Performance Teams • Attracts and Retains Talents • Maintains Legal Sanctity • Improves Reporting • Promotes a strong Corporate Image

9. Ethical Performance Management • It is defined as the process of planning, managing, appraising, and monitoring employee. • Performance is based on the principles of fairness, objectivity, transparency and good corporate governance to achieve the organizational objectives. • It promotes effective self-regulatory practices and management systems that foster a relationship of confidence and mutual trust between managers, employees and the organization.

10. Principles of Ethical Performance Management • Employees are driven by the core values of the organization • Promotes fairness and justice in order to avoid ethical dilemmas • Recognizes individuals for assuming responsibility for actions • Operationalizes ethical culture • Robust Process

11. Ethical Issues & Dilemmas • Managerial Malpractice • Moral Mazes • Different Standards • Value conflict • Corporate Goal Achievement • Superior’s taking credit for subordinates’ work • Employee Engagement

12. Ethical Issues & Dilemmas • Managerial Favouritism • Peer pressure • Career Aspirations • Workplace Politics

13. Examples WIPRO- • Manifesting intensity to win, • Acting with sensitivity and • being unyielding on integrity all the time. Reliance Industries:Reliance believes that any business conduct can be ethical only when it rests on the core values.

14. Examples NTPC:A world class integrated power major, powering India’s growth, with increasing global presence. NTPC Core Values(BCOMIT) • Business Ethics • Customer Focus • Organizational & professional Pride • Mutual Respect and Trust • Innovation and Speed • Total Quality for Excellence

15. Examples Johnson & Johnson • High quality and prompt service at reasonable price with a view to making fair profit. • To respect individuality of employees keeping in mind their job security and means of fulfilling family responsibility. • Informal communication • Just and ethical action • Encourage community service