Ethical Practice Flashcards
Treatment of personal information that has been disclosed to another person or organization.
Confidentiality
An individual’s right to freedom from intrusion (by viewing, monitoring, reading, etc.) into matters, actions, or information that is personal.
Privacy
Principles that guide decision making and behavior in an organization.
Code of conduct
Maintaining consistency between one’s values and one’s actions
Integrity
Extent to which organization’s agreements, dealings, information, practices, and transactions are open to disclosure and review by relevant persons.
Transparency
Exchange of anything of value to gain greater influence or preference.
Bribery
Ability to stay true to values and maintain integrity in both personal and professional lives and, from an organizational perspective, approach to forming and maintaining relationships with colleagues and others in the organization.
Authenticity
An HR manager is scheduled to receive a salary merit increase that is significantly above average compared to peers in similar positions. The employee’s manager decides to implement the increase but fails to consult the corporate compensation function, who reviews such decisions. The increase is effective in the next performance cycle. The manager has not notified the employee.
The issue arises during the annual salary merit review and performance appraisal process. All employees are reviewed for possible merit increases in accordance with merit budget guidelines and applicable compensation policy. Each manager is expected to comply with the guidelines before communicating salary increase decisions to employees.
Should the merit increase be implemented, it will create a negative salary equity impact based on race, gender, length of service, and scope of responsibilities of other HR managers. In the context of HR policy and practice, this action reflects a poor management decision, lacking the collegial and collaborative behavior expected of senior managers at this level. The senior manager of corporate compensation is a member of the HR leadership team and is responsible for the application of compensation policy. The senior manager’s team identifies this issue and is awaiting instructions on how to proceed.
Which immediate step should the senior manager take to address the team’s concerns?
Request an immediate meeting with the responsible manager to discuss the concerns about this decision and explore options to resolve the problem.
An HR manager is scheduled to receive a salary merit increase that is significantly above average compared to peers in similar positions. The employee’s manager decides to implement the increase but fails to consult the corporate compensation function, who reviews such decisions. The increase is effective in the next performance cycle. The manager has not notified the employee.
The issue arises during the annual salary merit review and performance appraisal process. All employees are reviewed for possible merit increases in accordance with merit budget guidelines and applicable compensation policy. Each manager is expected to comply with the guidelines before communicating salary increase decisions to employees.
Should the merit increase be implemented, it will create a negative salary equity impact based on race, gender, length of service, and scope of responsibilities of other HR managers. In the context of HR policy and practice, this action reflects a poor management decision, lacking the collegial and collaborative behavior expected of senior managers at this level. The senior manager of corporate compensation is a member of the HR leadership team and is responsible for the application of compensation policy. The senior manager’s team identifies this issue and is awaiting instructions on how to proceed.
Which approach should the senior manager take to address the issues of greater consistency and equity in adhering to compensation policies and procedures?
Review the current policy to determine whether it is clear enough in conveying organizational expectations, and modify it as necessary to ensure consistent compliance.
The president of a company instructs the HR director to quickly hire a new executive assistant for the organization. The president informs the HR director that the president has a preferred candidate for the role who has worked for the company before and is skilled and capable. However, the candidate will be relocating from another region of the country.
The president discloses to the HR director that there is discussion with the board of directors that the president will retire from the organization as part of the pending organizational restructuring. The revised hierarchy does not include a place for the new executive assistant, and the offer to the executive assistant will not include relocation assistance or a severance package.
The HR director wants to provide the potential candidate with this necessary information during the interview so the candidate can make an informed decision whether to accept the offer. The HR director is concerned that there is potential risk for not following the organizational staffing and selection policy and the absence of transparency. The president is adamant about maintaining the confidentiality of the retirement/restructuring, which the HR director knows is not in line with the organization’s values and culture.
What is the best course of action for the HR director to take?
Counsel the president, focusing on the benefits of making decisions that reflect the organization’s mission and values while supporting the organizational culture.
The president of a company instructs the HR director to quickly hire a new executive assistant for the organization. The president informs the HR director that the president has a preferred candidate for the role who has worked for the company before and is skilled and capable. However, the candidate will be relocating from another region of the country.
The president discloses to the HR director that there is discussion with the board of directors that the president will retire from the organization as part of the pending organizational restructuring. The revised hierarchy does not include a place for the new executive assistant, and the offer to the executive assistant will not include relocation assistance or a severance package.
The HR director wants to provide the potential candidate with this necessary information during the interview so the candidate can make an informed decision whether to accept the offer. The HR director is concerned that there is potential risk for not following the organizational staffing and selection policy and the absence of transparency. The president is adamant about maintaining the confidentiality of the retirement/restructuring, which the HR director knows is not in line with the organization’s values and culture.
What dilemma could the HR director face if the president’s request is ignored and the pending restructuring is shared with the candidate?
Confidential information will be breached
The president of a company instructs the HR director to quickly hire a new executive assistant for the organization. The president informs the HR director that the president has a preferred candidate for the role who has worked for the company before and is skilled and capable. However, the candidate will be relocating from another region of the country.
The president discloses to the HR director that there is discussion with the board of directors that the president will retire from the organization as part of the pending organizational restructuring. The revised hierarchy does not include a place for the new executive assistant, and the offer to the executive assistant will not include relocation assistance or a severance package.
The HR director wants to provide the potential candidate with this necessary information during the interview so the candidate can make an informed decision whether to accept the offer. The HR director is concerned that there is potential risk for not following the organizational staffing and selection policy and the absence of transparency. The president is adamant about maintaining the confidentiality of the retirement/restructuring, which the HR director knows is not in line with the organization’s values and culture.
Rather than relocating a candidate from another region, what alternative can the HR director offer that has minimal disruption for the organization?
The president could be counseled on the advantages of hiring a local temporary employee who does not require relocation.
A high-tech U.S. employee from California is on the organization’s leadership fast track. The employee is in the final stages of consideration for a significant promotion that would involve a transfer to Hong Kong. This would be the employee’s first-ever expatriate assignment. The employee has never lived or worked abroad, but has successfully participated in several of the organization’s global leadership programs, including several extended international business trips. The employee has worked for the organization for almost four years and is married with three young children.
The organization’s director of global mobility (GM) is the final due diligence assessor for expatriate assignments. Creating the short list that is now in front of the GM is a very careful process, fully defined in several of the organization’s standard operating procedures.
A few notable questions remain about the California employee:
The employee’s mother-in-law is a widow, and is seriously ill. The employee’s spouse is an only child.
The employee’s child is in a junior Olympic figure skating program.
The employee’s spouse also works in the high-tech sector and is unlikely to find a comparable job in Hong Kong.
How should the GM proceed to resolve the remaining concerns about this employee’s assignment?
Host an information session with the employee’s spouse to determine the family’s perspective on the assignment.
A high-tech U.S. employee from California is on the organization’s leadership fast track. The employee is in the final stages of consideration for a significant promotion that would involve a transfer to Hong Kong. This would be the employee’s first-ever expatriate assignment. The employee has never lived or worked abroad, but has successfully participated in several of the organization’s global leadership programs, including several extended international business trips. The employee has worked for the organization for almost four years and is married with three young children.
The organization’s director of global mobility (GM) is the final due diligence assessor for expatriate assignments. Creating the short list that is now in front of the GM is a very careful process, fully defined in several of the organization’s standard operating procedures.
A few notable questions remain about the California employee:
The employee’s mother-in-law is a widow, and is seriously ill. The employee’s spouse is an only child.
The employee’s child is in a junior Olympic figure skating program.
The employee’s spouse also works in the high-tech sector and is unlikely to find a comparable job in Hong Kong.
If the global assignment takes place for the employee only, how can the organization best keep the employee connected to their home and family during the assignment?
Coordinate leaves and visits home for the employee.
A high-tech U.S. employee from California is on the organization’s leadership fast track. The employee is in the final stages of consideration for a significant promotion that would involve a transfer to Hong Kong. This would be the employee’s first-ever expatriate assignment. The employee has never lived or worked abroad, but has successfully participated in several of the organization’s global leadership programs, including several extended international business trips. The employee has worked for the organization for almost four years and is married with three young children.
The organization’s director of global mobility (GM) is the final due diligence assessor for expatriate assignments. Creating the short list that is now in front of the GM is a very careful process, fully defined in several of the organization’s standard operating procedures.
A few notable questions remain about the California employee:
The employee’s mother-in-law is a widow, and is seriously ill. The employee’s spouse is an only child.
The employee’s child is in a junior Olympic figure skating program.
The employee’s spouse also works in the high-tech sector and is unlikely to find a comparable job in Hong Kong.
How should the GM proceed once all final selection assessments have been completed?
Offer the assignment to the employee asking for consideration, and include time to determine if the assignment should proceed.
The global HR director at a multinational manufacturing company receives a complaint from an employee working in an overseas operations center. The complaint alleges that the employee was unfairly denied a promotion for an open team lead position and was treated inappropriately by the on-site HR manager. According to the complaint, the employee reported the promotion issue to the on-site HR manager, who responded by inviting the employee to meet over lunch. Instead of resolving the issue, the HR manager forced the employee to pay for their lunch bill and to buy the manager a new pair of expensive shoes. A few days later, the employee’s supervisor placed the employee on a performance improvement plan based solely on the HR manager’s recommendation. After reviewing the complaint, the HR director reviews the employee’s personnel file but does not find any record of performance issues in the past. In addition, there are no prior reports from other employees in the operations center indicating that the on-site HR manager has a history of inappropriate behavior.
What should the HR director do to establish credibility with the employee on behalf of the global HR team?
Notify the employee that HR will take all appropriate actions to resolve the complaint quickly.
The global HR director at a multinational manufacturing company receives a complaint from an employee working in an overseas operations center. The complaint alleges that the employee was unfairly denied a promotion for an open team lead position and was treated inappropriately by the on-site HR manager. According to the complaint, the employee reported the promotion issue to the on-site HR manager, who responded by inviting the employee to meet over lunch. Instead of resolving the issue, the HR manager forced the employee to pay for their lunch bill and to buy the manager a new pair of expensive shoes. A few days later, the employee’s supervisor placed the employee on a performance improvement plan based solely on the HR manager’s recommendation. After reviewing the complaint, the HR director reviews the employee’s personnel file but does not find any record of performance issues in the past. In addition, there are no prior reports from other employees in the operations center indicating that the on-site HR manager has a history of inappropriate behavior.
What should the global HR director do to determine the extent to which cultural differences are contributing to the problem?
Review information about the dominant cultural values of the region in which the operations center is located.
The global HR director at a multinational manufacturing company receives a complaint from an employee working in an overseas operations center. The complaint alleges that the employee was unfairly denied a promotion for an open team lead position and was treated inappropriately by the on-site HR manager. According to the complaint, the employee reported the promotion issue to the on-site HR manager, who responded by inviting the employee to meet over lunch. Instead of resolving the issue, the HR manager forced the employee to pay for their lunch bill and to buy the manager a new pair of expensive shoes. A few days later, the employee’s supervisor placed the employee on a performance improvement plan based solely on the HR manager’s recommendation. After reviewing the complaint, the HR director reviews the employee’s personnel file but does not find any record of performance issues in the past. In addition, there are no prior reports from other employees in the operations center indicating that the on-site HR manager has a history of inappropriate behavior.
The global HR director initiates an investigation of the employee’s complaint. Which approach should the global HR director take to share sensitive information about the investigation with senior leaders at the operations center?
Conduct a web-assisted group meeting with the operations center’s senior executive team at the beginning and end of the investigation.
A new construction company is growing rapidly and hires its first HR director. To date, the construction company’s hiring managers have been basing salary offers on candidates’ salary demands because the company does not have a salary structure in place. Large pay disparities are emerging among employees in the same positions.
Despite the salary disparities, the company’s employees seem to be satisfied with their work and compensation, are highly engaged, and are excited about the opportunities that are provided through the company’s growth. When questioned about it the issue, the CEO indicates that as long as the employees are happy, the CEO is happy, and indicates that the HR director may be better served addressing other issues than pay discrepancies, which would likely cost the company additional money to address.
The new HR director is concerned about the inconsistencies in compensation and worries that the company’s current pay practices may be discriminatory. Additionally, the HR director fears the situation will eventually result in both negative relations among current employees as well as future recruiting challenges.
What step is most crucial for the HR director to take first?
Benchmark the company’s salaries against those of other construction companies in the area.
A new construction company is growing rapidly and hires its first HR director. To date, the construction company’s hiring managers have been basing salary offers on candidates’ salary demands because the company does not have a salary structure in place. Large pay disparities are emerging among employees in the same positions.
Despite the salary disparities, the company’s employees seem to be satisfied with their work and compensation, are highly engaged, and are excited about the opportunities that are provided through the company’s growth. When questioned about it the issue, the CEO indicates that as long as the employees are happy, the CEO is happy, and indicates that the HR director may be better served addressing other issues than pay discrepancies, which would likely cost the company additional money to address.
The new HR director is concerned about the inconsistencies in compensation and worries that the company’s current pay practices may be discriminatory. Additionally, the HR director fears the situation will eventually result in both negative relations among current employees as well as future recruiting challenges.
What is the best approach for the HR director to take to communicate concerns about the salary structure to senior leadership, given that the CEO has a general awareness of the issue but other senior leaders do not?
Deliver a presentation outlining potential steps to address the issues and ask for leadership’s input.
A new construction company is growing rapidly and hires its first HR director. To date, the construction company’s hiring managers have been basing salary offers on candidates’ salary demands because the company does not have a salary structure in place. Large pay disparities are emerging among employees in the same positions.
Despite the salary disparities, the company’s employees seem to be satisfied with their work and compensation, are highly engaged, and are excited about the opportunities that are provided through the company’s growth. When questioned about it the issue, the CEO indicates that as long as the employees are happy, the CEO is happy, and indicates that the HR director may be better served addressing other issues than pay discrepancies, which would likely cost the company additional money to address.
The new HR director is concerned about the inconsistencies in compensation and worries that the company’s current pay practices may be discriminatory. Additionally, the HR director fears the situation will eventually result in both negative relations among current employees as well as future recruiting challenges.
Managers say that they need to be flexible with salary during the hiring process because it is difficult to find enough talent. Which action would be most effective for the HR director to take?
Provide managers with a salary structure to follow, but tell them HR is open to discussing special situations.
An HR director is hired at an airline. On the first day, the HR director calls to get directions to the location and the receptionist answers the phone in an unprofessional manner. When the HR director arrives, everyone is in a panic because the last flight team had a “hard landing.” No one is physically injured in the incident, but the airplane is beyond repair. When arriving at the landing site, the HR director overhears the crew saying something about the junior pilot’s substance abuse problems. The pilot in charge tells the HR director to report the incident as a “hard landing” and not a crash and to report that the junior pilot is not at fault. The HR director looks at the junior pilot’s employee file to discover three other recent similar events, all noting substance abuse as a possible cause. The HR director also learns that the junior pilot had a pre-existing relationship with the pilot in charge, outside of work. Protocol requires all pilots to submit to drug tests immediately following an incident. The junior pilot does not do so until the next day.
The HR director suspects that substance abuse may have been the cause of the incident. Which action should the HR director take?
Place the junior pilot on probation for not following the drug testing protocol after the incident.
An HR director is hired at an airline. On the first day, the HR director calls to get directions to the location and the receptionist answers the phone in an unprofessional manner. When the HR director arrives, everyone is in a panic because the last flight team had a “hard landing.” No one is physically injured in the incident, but the airplane is beyond repair. When arriving at the landing site, the HR director overhears the crew saying something about the junior pilot’s substance abuse problems. The pilot in charge tells the HR director to report the incident as a “hard landing” and not a crash and to report that the junior pilot is not at fault. The HR director looks at the junior pilot’s employee file to discover three other recent similar events, all noting substance abuse as a possible cause. The HR director also learns that the junior pilot had a pre-existing relationship with the pilot in charge, outside of work. Protocol requires all pilots to submit to drug tests immediately following an incident. The junior pilot does not do so until the next day.
What action should the HR director take regarding the receptionist’s lack of professionalism?
Discuss the service experience with the receptionist’s supervisor.
An HR director is hired at an airline. On the first day, the HR director calls to get directions to the location and the receptionist answers the phone in an unprofessional manner. When the HR director arrives, everyone is in a panic because the last flight team had a “hard landing.” No one is physically injured in the incident, but the airplane is beyond repair. When arriving at the landing site, the HR director overhears the crew saying something about the junior pilot’s substance abuse problems. The pilot in charge tells the HR director to report the incident as a “hard landing” and not a crash and to report that the junior pilot is not at fault. The HR director looks at the junior pilot’s employee file to discover three other recent similar events, all noting substance abuse as a possible cause. The HR director also learns that the junior pilot had a pre-existing relationship with the pilot in charge, outside of work. Protocol requires all pilots to submit to drug tests immediately following an incident. The junior pilot does not do so until the next day.
How should the HR director respond to the account of the incident provided by the pilot in charge?
Explain to the pilot in charge that the HR director will conduct an independent investigation.
A member of the senior leadership team comes to HR stating that a manager on the senior leader’s team needs to be demoted. The senior leader says that the manager has struggled in the role for several years and the company can no longer afford to have the manager in a leadership position. Understanding that this is an issue that should be addressed, the HR manager reviews the struggling manager’s past performance appraisals. Despite what the senior leader says, the struggling manager has no documentation in their file to suggest that they are not performing to standards. In fact, all of the manager’s reviews fall into “meets or exceeds expectations.” Citing these reviews, the HR manager informs the senior leader that the appropriate first step is for the senior leader to develop a performance improvement plan (PIP) for the employee.
The senior leader responds that reviews in the senior leader’s area have generally been lax, and employees have generally been given sufficient ratings regardless of their actual performance. However, the senior leader indicates that if they must implement a PIP before demoting the employee, they will, though they doubt that the PIP will be effective.
The senior leader wants to track the manager’s progress toward the goals outlined in the PIP. Which action should the HR manager recommend to the senior leader?
Hold a weekly meeting with the manager to touch base about the manager’s progress.
A member of the senior leadership team comes to HR stating that a manager on the senior leader’s team needs to be demoted. The senior leader says that the manager has struggled in the role for several years and the company can no longer afford to have the manager in a leadership position. Understanding that this is an issue that should be addressed, the HR manager reviews the struggling manager’s past performance appraisals. Despite what the senior leader says, the struggling manager has no documentation in their file to suggest that they are not performing to standards. In fact, all of the manager’s reviews fall into “meets or exceeds expectations.” Citing these reviews, the HR manager informs the senior leader that the appropriate first step is for the senior leader to develop a performance improvement plan (PIP) for the employee.
The senior leader responds that reviews in the senior leader’s area have generally been lax, and employees have generally been given sufficient ratings regardless of their actual performance. However, the senior leader indicates that if they must implement a PIP before demoting the employee, they will, though they doubt that the PIP will be effective.
HR is concerned that the senior leader is not able to objectively define the manager’s performance metrics. How should HR ensure that the PIP written by the senior leader is not biased against the manager?
Meet with the senior leader to create a PIP that is clear, concise, and measurable, completely removing the possibility of bias.
A member of the senior leadership team comes to HR stating that a manager on the senior leader’s team needs to be demoted. The senior leader says that the manager has struggled in the role for several years and the company can no longer afford to have the manager in a leadership position. Understanding that this is an issue that should be addressed, the HR manager reviews the struggling manager’s past performance appraisals. Despite what the senior leader says, the struggling manager has no documentation in their file to suggest that they are not performing to standards. In fact, all of the manager’s reviews fall into “meets or exceeds expectations.” Citing these reviews, the HR manager informs the senior leader that the appropriate first step is for the senior leader to develop a performance improvement plan (PIP) for the employee.
The senior leader responds that reviews in the senior leader’s area have generally been lax, and employees have generally been given sufficient ratings regardless of their actual performance. However, the senior leader indicates that if they must implement a PIP before demoting the employee, they will, though they doubt that the PIP will be effective.
After the manager is placed on the PIP, the manager approaches HR with questions concerning the plan. Specifically, the manager has concerns about being judged unfairly and being terminated no matter what improvements are made. How should HR handle this situation?
Explain the PIP review process with the manager and outline the role HR plays in ensuring fairness and equity.
A firm discovers that a parts supply vendor does not provide sanitary facilities for factory workers. What should HR recommend the organization do to address this situation?
The organization should request that the vendor provide sanitary facilities and begin looking for another vendor.
This is an ethical responsibility that transcends legal requirements and local norms/practices. If the contract does not require these minimum work conditions, the firm can request them and make clear that humane workplace conditions constitute a criterion for future contracts.
Which is a critical aspect of personal integrity in terms of supporting an ethical workplace?
Admitting one’s shortcomings
HR professionals show personal integrity by stricing to be ethical and by admitting their shortcomings. Learning about the organization’s ethical vulnerabilities is an example of professional integrity. Checking that HR policies are ethical is an example of being an ethical agent.
An employee is reinstated after being wrongfully terminated. The HR director is instructed to ensure restoration of the employee’s full leave accrual balances even though the employee received full payment for all applicable accrued leave balances at termination. Which is true of this request?
It is unethical and dishonest, but it is not illegal.
Although there are a few exceptions (FMLA leave, for example), employee leave accruals are determined, provided, and governed by an employer’s policies rather than by law unless the employer can create laws, regulations, or ordinances (as is the case with federal, state, or local governments). The request may not be a violation of HR policy or the organization’s ethics code.
During a nonwork group lunch, an HR manager overhears an HR staff member discussing a recent new hire’s previous job experiences with another staff member. The information is not sensitive, nor was the intention malicious. What should the HR person do?
Remind the colleague later that it is not ethical to divulge confidential information.
The colleague should be reminded that it is an HR professional’s ethical duty to maintain the confidentiality of information gained in this manner. The action probably does not merit immediate discipline and in itself does not pose a risk, although the colleague’s habitual sharing of confidential information could pose a risk. Warning the employee may cause unnecessary alarm since the information is not sensitive.
After meetings with different departments dealing with downsizing, the HR professional authors a document identifying affected individuals based on each department’s recommendations. A longtime friend of the HR professional will be impacted. How should the HR professional handle this situation?
Keep the workforce reduction information confidential.
In an effort to treat all employees with the same fairness and consistency, it is essential that the HR professional keep this information confidential. Any effort to inform one employee or adjust a policy for the benefit of one employee would be unethical.
An HR manager is asked by a senior manager to select an employee who has been mentored by the senior manager for an open position. This employee was not the manager’s first choice for the job. What would be the most useful question for the manager to ask in sorting out the ethical implications of this situation?
Is this action fair to everyone involved?
The manager is ethically obliged to be fair in this process, offering both candidates equal consideration.
Which practice best illustrates the principle of transparency?
Supporting promotions with specific examples of commendable performance.
Transparency commits an organization to providing information about how and why decisions have been made. Providing equal access to training is a matter of fairness, and involving staff members in decision making illustrates collaborative leadership. Sharing personal information does not create transparency about the organization’s actions.
Two years ago, a growing 250-person IT company was acquired by a global 10,000-person consulting firm. Prior to being acquired, the IT company had a strong, clearly identified culture that the employees were very invested in. The company consistently won “Best Place to Work” awards, and employee turnover was very low. In the first two years after the acquisition, the IT company continued operating fairly autonomously and kept its identity, with the company’s founder serving as its president.
Recently the consulting firm has begun integrating the IT company into its operating functions, which has included major policy changes, financial controls, and staffing reductions for the IT company. This has created a very adversarial relationship between the two groups. Employee morale at the IT company has plummeted, and turnover has increased significantly; employees believe that the consulting firm shares information poorly.
The consulting firm’s leaders are becoming frustrated with the IT company staff and views them as complainers. They ask the firm’s chief human resources officer (CHRO) to address these issues. Specifically, the CHRO has been asked to find ways to improve employee morale, sharply reduce turnover, and integrate the IT company staff into the larger company.
What action should the CHRO take to help with integrating the IT company employees into the consulting firm?
Ask executives from the consulting firm to hold listening sessions with the staff from the IT company.
Two years ago, a growing 250-person IT company was acquired by a global 10,000-person consulting firm. Prior to being acquired, the IT company had a strong, clearly identified culture that the employees were very invested in. The company consistently won “Best Place to Work” awards, and employee turnover was very low. In the first two years after the acquisition, the IT company continued operating fairly autonomously and kept its identity, with the company’s founder serving as its president.
Recently the consulting firm has begun integrating the IT company into its operating functions, which has included major policy changes, financial controls, and staffing reductions for the IT company. This has created a very adversarial relationship between the two groups. Employee morale at the IT company has plummeted, and turnover has increased significantly; employees believe that the consulting firm shares information poorly.
The consulting firm’s leaders are becoming frustrated with the IT company staff and views them as complainers. They ask the firm’s chief human resources officer (CHRO) to address these issues. Specifically, the CHRO has been asked to find ways to improve employee morale, sharply reduce turnover, and integrate the IT company staff into the larger company.
Which action should the CHRO take first to address the executive team’s request?
Meet with senior leaders in the IT company to discuss their concerns about the current situation.
Two years ago, a growing 250-person IT company was acquired by a global 10,000-person consulting firm. Prior to being acquired, the IT company had a strong, clearly identified culture that the employees were very invested in. The company consistently won “Best Place to Work” awards, and employee turnover was very low. In the first two years after the acquisition, the IT company continued operating fairly autonomously and kept its identity, with the company’s founder serving as its president.
Recently the consulting firm has begun integrating the IT company into its operating functions, which has included major policy changes, financial controls, and staffing reductions for the IT company. This has created a very adversarial relationship between the two groups. Employee morale at the IT company has plummeted, and turnover has increased significantly; employees believe that the consulting firm shares information poorly.
The consulting firm’s leaders are becoming frustrated with the IT company staff and views them as complainers. They ask the firm’s chief human resources officer (CHRO) to address these issues. Specifically, the CHRO has been asked to find ways to improve employee morale, sharply reduce turnover, and integrate the IT company staff into the larger company.
The CEO tells the CHRO of a heated argument that the CEO had with the president of the IT company. The CHRO is concerned that the president of the IT company may resign, which would likely lead to many other employees leaving. What should the CHRO do?
Meet with the CEO to explain the CHRO’s concerns and brainstorm possible paths forward.
Why should an organization document monitoring of the enforcement of its code of conduct?
Lack of monitoring or inconsistent monitoring can have legal implications.
The question focuses on the issue of documenting performance of monitoring, which may be required to prove that an organization has made a good-faith effort to enforce its rules. This documentation could include reviews of the way violations have been handled and proof that all employees have been informed of ethical expectations.
What is the best recommendation in developing a formal code of conduct?
Obtain the support of senior leadership in delivering and emulating the new code of conduct.
The code of conduct should reflect the values of the organization, which means that leadership must model and support the desired conduct. Addressing comprehension and awareness is important but is not sufficient if the organization’s values as expressed in leaders’ actions are not aligned with the code. A code of conduct supports not only legal compliance but also compliance with the organization’s values. These values can guide action when compliance requirements may be unclear.
An employee shared a customer’s social media profile with a client as an example of a good profile. The HR manager found that the profile is public and that the employee disclosed the name of the customer to the client. What is the ethical violation the HR manager identified?
Breach of confidentiality
An employee shared a customer’s social media profile with a client as an example of a good profile. The HR manager found that the profile is public and that the employee disclosed the name of the customer to the client. What is the ethical violation the HR manager identified?
Which option best describes the reason to develop a comprehensive organizational code of conduct policy?
Defining behavioral and judgement expectations for all employees
A written code of conduct can help an organization promote ethical behavior. A formal, detailed, written code communicates organizational commitments internally, defines behavioral expectations for all employees, and serves as a guide by which employees and managers can judge their actions.
An HR manager is scheduled to receive a salary merit increase that is significantly above average compared to peers in similar positions. The employee’s manager decides to implement the increase but fails to consult the corporate compensation function, who reviews such decisions. The increase is effective in the next performance cycle. The manager has not notified the employee.
The issue arises during the annual salary merit review and performance appraisal process. All employees are reviewed for possible merit increases in accordance with merit budget guidelines and applicable compensation policy. Each manager is expected to comply with the guidelines before communicating salary increase decisions to employees.
Should the merit increase be implemented, it will create a negative salary equity impact based on race, gender, length of service, and scope of responsibilities of other HR managers. In the context of HR policy and practice, this action reflects a poor management decision, lacking the collegial and collaborative behavior expected of senior managers at this level. The senior manager of corporate compensation is a member of the HR leadership team and is responsible for the application of compensation policy. The senior manager’s team identifies this issue and is awaiting instructions on how to proceed.
The corporate compensation team oversees the performance appraisal process. Which action should the senior manager take to identify and prevent excessive or inequitable salary increases from occurring in the future?
Review proposed salary increases tied to performance appraisals for compliance with guidelines prior to communicating them to employees.
