HRM Enhances Employee Loyalty
Good Ethics in Human Resources Management Enhances Employee Loyalty
Human Resource Management, also known as HRM or HR is the term that is generally used to depict all the organizational activities that are associated with hiring and picking, planning work for, educating, training and developing, evaluating and recompensing, guiding, triggering off, and managing human resources/employees. In other words, Human Resources Management refers to the outline of ideas, guiding principles, modus operandi and performance for the administration and supervision of the bond that is present between a company/manager and member of workforce (Wilton 2011).
Boxall and Purcell (2003) have described the term human resource management as "anything and everything associated with the management of employment relationships in the firm" (as qtd. In Wilton 2011). According to Price (2007), on the other hand, HRM is "a philosophy of people management based on the belief that human resources are uniquely important in sustained business success. An organization gains competitive advantage by using its people effectively, drawing on their expertise and ingenuity to meet clearly defined objectives. HRM is aimed at recruiting capable, flexible and committed people, managing and rewarding their performance and developing key competencies" (as qtd. In Wilton 2011).
Ethics in HRM
The term "ethics" does not have a unanimously approved definition. It simply deals with the character and behavior of morality of individuals. According to The Charter for the Public Service in Africa, ethics is a standard that includes values and principles such as competence, professional obedience, self-respect, impartiality, open-mindedness, sprite, and courteousness in the fulfillment of assigned tasks (Ssonko 2010).
Today, ethical, fair and moral thoughtfulness is turning out to be an ever more essential aspect to Human Resource departments in industries worldwide. Time and again, a strain is observable between a corporation's pecuniary targets and tactics for improvement of profits, and ethical concerns with appropriate conduct considerations. In view of the fact that human resources departments of any organization are most attentive on employees and employee behavior, it automatically becomes their responsibility to define ethical conduct, communicate specifically-designed moral codes, and keep the working staff informed or elaborate on expected right-behavior. In short, human resource management structures are expected to be in touch with the employees in order to communicate ethical values for improving company performance and ensuring employee loyalty ("Human Resource Information Systems" 2009).
It means that if human resource management systems practice inappropriately and design improper and wrong policies, such malpractices can intimidate professionalism, moral behaviors and intelligibility resulting in low levels of loyalty and commitment from the workforce. Such malpractices take place when there are institutional deficiencies in the Human Resource Management systems. For instance, if the human resource management department of an organization is unsuccessful in stating and enforcing fundamental ethical principles in its general strategy and policies, it could leave HRM void of providing reliable direction. Also, if HRM fails to sketch out and restrict opinionated and individual influences in order to preserve lucidity, failures like this can permit such influences to pierce the decisions of HRM. Similarly, if a clearly stated and obligatory policy to encourage professionalism in Human Resource Management is absent, it allows the entire organization to be defenseless to unprofessional conduct, negligence, mismanagement and corruption (Ssonko 2010).
To cut a long story short, the lack of a code of ethics for providing guidance to the employees and putting the standards of HRM units and employees into effect can direct to a lack of answerability and responsibility. Thus, a lack of direction and good ethics can give rise to non-professionalism and consequently would result in lowered employee loyalty. Therefore, it is exceedingly necessary for every human resources management department to formulate a system of measures in order to build up an environment that allows the promotion of ethics, liability, veracity, precision and professionalism (Ssonko 2010).
In other words, a professional and ethical environment can only be created if the human resources management systems of an organization make use of reasonable and crystal clear policies and practices. An ethical environment can only be created if the Human Resources Departments maintain "the merit principle in recruitment and promotions, transparency in the selection process, sound performance management and setting a good example by managers" (Ssonko 2010). Moreover, the implementation and enforcement of well-designed and just HR policies on suitable salary, training opportunities, corrective measures etc. can be helpful in the promotion of a culture of professionalism and satisfaction (Ssonko 2010).
Importance and Impact of Employees
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