Ethical Challenges in Human Resource Management

Running head: HUMAN RESOURCE MANAGEMENT
Human Resource Management
Name of the Student
Name of the University
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Introduction
The essay helps in analysing the ethical challenges that are faced by the different kind
of organizations relating to the human resource management in the organization in the
international kind of context. Proper analysis is required to be done in order to understand the
different kind of main challenges in the organization. The different kind of macro
environmental factors has to be analysed in an effectual manner as this will help in reducing
the different challenges in an effectual manner.
The main aim and purpose of the essay is to understand the ethical challenges in the
human resource management of the organization effectually. The proper analysis is required
to be done in order to understand the macro environmental factors as this will help in
analysing the issues effectually and solve them as well.
The structure of the essay will include the analysis of the different kind of macro
environmental factors and the ethical challenges in the HRM of the different kind of
companies as well. Proper analysis of the main challenges has to be done in order to reduce
such challenges and make the system more effective in nature.
Ethical Challenges regarding Human Resource Management
There are different kind of ethical challenges relating to the human resource
management of the different organizations. The different kind of macro environment factors
wherein it affects the business environment along with the HRM. There are different kind of
ethical challenges that affect the entire human resource management. The different kind of
external factors that affect the HRM are as follows:
The regulations of the government are one of the external factors that affects the
Human Resource Management of different organizations. With the different kind of
introduction of the new compliances of the workplace, the human resource management

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department is under pressure constantly and this is required to stay under law as well. These
kinds of regulations influence each process of the entire HR department that includes the
hiring of employees along with training of employees along with termination and
compensation policies (Al Ariss, Cerdin & Brewster, 2017).
It is one of the biggest challenges in the organizations as this is the sole responsibility
of the HR managers to justify the levels of the basic salaries and increase the retaining of the
employees in the organization. Without adhering to the different kind of rules and
regulations, this is not possible for the HR of the company to expand their company and this
cause the organization to shut down. The ethical issues that pertains is related to the executive
perquisites along with different kind of other compensation plans that has to be provided to
the employees in different organizations (Bratton & Gold, 2017).
The other ethical issues that cropped in the Human Resource activities included that
when the incentive plans along with long term compensation are designed in regards with the
consultation with CEO or the external consultant of the respective organization. While the
employees decide on the pay-out, it creates pressure on favouring the different kind of
interests of the entire top management in comparison to the other companies in the market as
well (Albrecht et al., 2015).
One of the biggest external factors that influences the human resource department of
the different organizations are related to the economic conditions (Clark et al., 2016). The
current shape of the entire economy is the biggest economic factors and it affects the talent
pool and it gradually affects the entire ability to hire the different individuals at all in the
organization. Proper creation of proper plan is essential in nature as this will help in
understanding and analysing the economic downturn and understand the happenings around
the world as well (Banfield, Kay & Royles, 2018).