Identifying and Hiring. The interviewee considered recruiting and identifying the right candidate as the biggest challenge a human resource professional faces. They need to be good at identifying and securing the services of the best candidates. Resourcefulness and adeptness in how to locate and attract individuals with the best fit in an organization are challenging for a human resource professional.
Employee Terminations or Layoffs. The interviewee also considered the legal issues that arise as a result of carrying out employee terminations or layoffs as a major challenge facing human resource professionals. The process is stressful as even a single misstep can expose the company to the possibility of an expensive lawsuit.
Compensation
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Management with metrics allows an organization to have a true measure of how it has reached its goals and objectives as well as act as an evaluation and analysis tool (Rees & Smith, 2014).
Ethical Issues Faced by HR Professionals
Some of the ethical issues faced by human resource professionals include:
Cash and Compensation Plans. There exist ethical issues pertaining to remuneration, executive compensation, and incentive plans. There is pressure to raise the base of salaries or pay more incentives to executives for the human resource managers.
Gender, Race, and Disability. Most organizations differentiated employees based on gender, race, origin, status or disability until recently as the laws and regulations have standardized the conduct of employers and employees. An organization should only differentiate employees on the basis of performance and should avoid discriminatory practices.
Privacy. Individuals working in an organization have personal sides to their existences, which they would want to be respected and not intruded. An employee might prefer that some details about their lives are private and this might clash with an employer’s need to do so. For instance, mail scanning might be done if an employee is suspected to be misusing company resources.
Some of these ethical issues will not see changes in the near future. For instance, an issue like compensation will always be a challenge as long as a company pays for labor. The issue of
As long as it is not sexual, racial or discrimination because of any disabilities which has no connection with the performance of the job, the organization can differentiate between different groups through job qualifications, skill sets education levels, interviews, , and many other conditions required by certain jobs.
discrimination based on race, color, religion, sex, or national origin. So, employment discrimination includes age discrimination, sex discrimination, religious discrimination, racial discrimination and more.
carefully planned out and considered, the total closure or failure of the organization could be at hand in the near future. In our modern age, employers know that salary is not the only factor that should be considered and that salary alone will not lead to better or more highly profitable workers alone. This is why compensation planning is important and why pay should have some connection between performance and compensation. This is why the human resources department should consider many monetary and non-monetary factors when considering how to properly compensate and motivate employees (Dessler, 2013).
The right compensation program will depend on the organization’s business strategy and goals. To achieve these, an organization must recruit and select the best possible employees. To attract such employees, there must be an attractive compensation plan. Competitors will be offering different payment options, this may be based on pay rate or special perks, and a company’s stock options. Organizations must be aggressive yet reasonable to compete with competitors. Retaining and encouraging employees to perform at their best may be achieved through an immediate incentive award
Secondly, human resource is an important aspect of business; most of organizations nowadays view people as their most valuable resources. In fact, the part that intrigued me was the challenges derived from the changes in function and structure of HR department. HR is becoming a need for every aspects of day-to-day management, and job-seekers would find their jobs require more of generalists with more skills and competencies to perform multi-tasking (Larsen & Brewster 2003). Those are challenges as well as potential, on which you could learn and develop yourself.
The intent of this assignment is to develop a user-friendly tool that may be applied in the workplace to document Compensation processes and to guide a practitioner in completing the critical steps of each process. The purpose of this assignment is to assist in describing each component of a compensation management system, to develop a practitioner's guide for several of the key compensation management tasks covered in HR511 Total Rewards.
When an organization is not ethical, this will be seen through their work, employees, etc. A customer will lose confidence in a company quickly if they realize ethics are not a main priority for that particular business. If an organization wants to be in business for the long-run, they will realize their priorities should not be on getting rich quick but on setting standards and maintaining them; by following this rule, customers will continue to roll in, and the company will prosper.
A well-articulated compensation philosophy drives organizational success by aligning pay and other rewards with business strategy. It provides the foundation for plan design and administration and anchors current and future plans to the company's culture and values (Kaplan, 2006, p.32). Recognizing and rewarding achievement is the cornerstone of the company A’s compensation philosophy. The mission of the company is to attract, select, place and promote all individuals based on their qualifications. The company believes that performance-based compensation helps attract, develop and retain talented professionals. In addition to base pay which based upon local market conditions and targeted to be above market, the company provides the following types of potential compensation to reward performance:
Sears, Roebuck, and Co.’s management team had to have been aware of the negative issues this type of compensation program was creating for the business, overall. The managerial team evidently did not follow any type of ethical standards by allowing this type of incentive plan to be implemented. First of all, managers have an obligation to learn and model ethical standards every single day, because their
(Panza & Potthast, n.d.) Ethics is very important to a company’s success. Ethical behavior can bring benefits to a business. They can attract customers, which can lead to a boost in sales and profits. It can attract the right employees and increase productivity. It can also attract investors and keep the company’s share price high. Unethical behavior on the other hand can damage a company’s reputation and make it less appealing to stakeholders. It could also result in lower profits.
As Director of Human Resources my goals are to formalize the recruitment and selection process, establish policies regarding compensation, provide job analyses and determine descriptions for new jobs as the need arises. I anticipate that the challenge will be to lead the organization through a cultural shift away from its current recruitment and selection model and to successfully manage organizational change across a global workforce. Currently we are in the middle of a recruitment and selection campaign for two administrative assistants to support the Human Resources unit as we lead organizational change.
2. Ethical Issues in Business. It seems that every day in the news we are hearing of new company that has acted at least unethically and possibly illegally in the operation and financial reporting of their company's business dealings. There are many ethical issues in business. One major issue that we see is over and under reporting net income. Companies like to show that every quarter the net income of the business has an increase or profit. In order to show this they adopt unethical or illegal means in the operation and financial reporting. One such method is the indiscriminate use of stock options for employees that enable companies to take employment costs off balance sheet and inflate earnings. With the recent ethical issues we have
Ø Give some specific examples of ethical issues that confront businesses and how these might be addressed.
A company must administer Equal Employment Opportunities (EEO) to those who apply, which means in no way should an employer base a candidates skill on their ethnic background, religion, sex, national origin, disability, or age. During the recruitment process, affirmative action policies make it a requirement that employers show initiative in hiring a diverse pool of applicants to fill positions available. We have a diverse pool of applicants that come and apply with my company. Most of the applicants will get hired regardless of their race, nationality or age, the best factor that prohibits one from getting hired on is language barrier.
Generally, employers are concerned about the various issues that could transpire in the workplace such as poor performance, viewing of inappropriate and derogatory things on the organization's equipment, lower productivity, and injuries on the job (“Managing Workplace Monitoring”, 2016). Therefore, “employers also have a duty to their employees to protect the privacy and confidentiality of the personal information gathered and maintained in the course of employment (“Managing Workplace Monitoring”, 2016, para. 1). Moreover, the main reason for monitoring employees is solely tied into limiting the amount of litigation the organization can potentially be subjected to. Therefore, to minimize exposure and risk to