Case Study: Ethical Dilemma of Salary Sacrifice at Halo Disability

This case study analyzes an ethical dilemma at Halo Disability Services, a non-profit organization providing support services. The case revolves around salary sacrificing arrangements offered to management-level employees, where the organization does not deduct income tax. The assignment outlines courses of action, including meetings with managers and employees, addressing the salary structure, and declaring mistakes to maintain transparency. It details reasons for actions such as better communication and improved trust, along with how to implement changes through integration of departments and revised communication strategies. The expected outcomes involve consensus among managers, better coordination within the organization, and a clearer, more ethical payment structure. The assignment references key literature on organizational ethics, ethical leadership, and HRM ethics to support its analysis and recommendations. The case study highlights the importance of ethical practices in leadership and finance within organizations.

ETHICAL DILEMMA
Case Study

Courses of actions for now
◦ Arrange a meeting with all the manager
◦ Arrange a meeting with managers and the finance teams
◦ Discuss the issue with the salary sacrificing arrangements
◦ Declare the mistakes in the salary structures

Courses of actions for now
◦ Call team meeting to inform of the issue
◦ Ask for the cooperation of the employees
◦ Holding a larger meeting with all the affected employees and the Finance/payroll
department
◦ Change the salary structure and make it more transparent
◦ Roll out a plan for the new salary structure

Reasons for actions
◦ More meetings would ensure better communications
◦ Less opportunity for miscommunication
◦ Declaration of mistakes to pacify the audiences

Reasons for actions
◦ Team meetings would make matters clear
◦ Finance team meeting would establish better trust
◦ Changing the salary structure is the most important step
◦ Will provide better resolution to disputes

How to do it
◦ Integration of finance/payroll and HR department
◦ Communication team
◦ Special finance team to make revised salary structure
◦ Handing issue with diplomacy

How to do it
◦ Better communication from the leadership
◦ Better team integration
◦ Review of the tax laws

Expected Outcomes
◦ Managers reach consensus about the decision making requirements
◦ All the members of the organization coordinate together to form effective plans
◦ The payroll/finance department is able to identify the areas of improvement

Expected Outcomes
◦ Better understanding between the organization and the employee
◦ Clearer more effective payment structure
◦ Revision of all unethical aspects of payment
◦ Maintenance of better cooperation between people

Bibliography
Ferrell, O. C. (2016). A framework for understanding organizational ethics. In Business
ethics: New challenges for business schools and corporate leaders (pp. 15-29).
Routledge.
Neves, P., & Story, J. (2015). Ethical leadership and reputation: Combined indirect
effects on organizational deviance. Journal of Business Ethics, 127(1), 165-176.
Scott, E. (2016). Ethics and human resource management. In Practicing professional
ethics in economics and public policy(pp. 215-221). Springer, Dordrecht.