BUSN3032 - Semester 2: Code of Conduct for HR Managers

This report provides a comprehensive overview of the Code of Conduct for HR Managers, emphasizing the importance of ethical principles in performance management and strategic compensation. It examines the evolving economic landscape and the increasing need for organizations to attract and retain top talent through competitive compensation and benefits programs. The report delves into key ethical considerations such as respect for individuals, procedural fairness, transparency in decision-making, and mutual respect, guiding HR managers in their decision-making processes. It also discusses the elements of compensation, including base pay, incentives, and benefits, and explores the role of HR in ethical performance management. The report further analyzes performance evaluation of employees, addressing its aims, legal and ethical issues, and the expectancy motivation model. Finally, it highlights the significance of maintaining an ethical organizational culture and the role of HR in addressing ethical conflicts.

Code of Conduct for HR Managers 0
Title: Code of Conduct for HR Managers
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Code of Conduct for HR Managers 1
Introduction
The economy will be recovering and demand for the capable and experienced industry
professionals will grow. This will be particularly done at the executive and management levels.
Competition needs to keep high performing and valuable employees at all time is high. Reward
system and strategic performance of employees will be considered high. This is one of the most
effective ways to keep the enterprise top management and performers grow profit. A balanced
ownership plan and compensation will incentivize the performance and improvise the retention
and recruitment efforts and company will be able to achieve its goals. Key economic
Perspectives from different organizations like CFMA have predicted the relatively robust
economic growth.
The retention and hiring gap is the continuous impact of economic downturn. During the
time of recession, projects may get slowed and businesses will be required to downsize the
workforce. Companies need to assess the own operations for the development of production and
positive work environments will be retaining the high level and attracting performers. Reward
system is an effective strategy which is fundamental towards business performance. Most of the
professionals realize the need for robust high performance and reward strategies and must not
reward one behavior when there is a different outcome.
Professional and Ethical Principles that Guide Performance Management in
the Organization
Traditional models and approaches towards performance management has presented a
methodology for the development of mission, goals and objectives and management of
performance. Existing approaches will not meet with the objectives and this is due to flaws in

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implementation (Schmidle, 2011). Action must be taken towards the demotivated staff and
different forms of control are inappropriately known as the police performance. There are
different alternative approaches used in strategic compensation. The companies need to make
attempts in incorporating the ethical concerns over the stakeholder and performance management
approaches. This will be having a lot of impact over the dialogue and performance measure and
performance improvement design used. The main ethical principles are respect for individual,
procedural fairness, decision making transparency and mutual respect (Curseu, 2015).
The manager finds themselves in the position where the decision is to be taken on a
regular basis. The guidance takes place through own principles and morals and each situation
must be viewed objectively and proper ethical decisions taken. The first principle-respect for
each individual-All the team members must be treated respectfully (Schwartz, 2011). People
need to work with different cultural belief system and different religiously and this must be
treated fairly. Desired performance must be defined in the actionable and tangible goals. Right
measurements must be done for measuring the things right. Rather than having intangible vision
and mission statement, management must look at the hard activities that will drive the
performance results and this is ultimately economic results. Procedural fairness requires
having control over the policies and methods that can be implemented within the team (Taylor,
2014). It is essential that all the processes must be fair to all the employees. Another ethical
principle-transparency in decision making-The employees need to have an understanding of what
the decisions are to be taken. The employees do not need to make the arbitrary choices based on
the decisions and working together as the team. In mutual respect-the manager need to treat
every employee equally and have proper respect for everyone (Eremin, Wolf and Woodard,
2010).

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Benefits and compensation are key principles for retention and recruiting the best talent
for every job in the industry. Employers find this tough and retaining the best talent. Maximum
number of companies will be offering the competitive packages. A small company may find it
difficult to compete with big companies as small company may not have the financial measures.
Businesses need to strategically plan for competing with benefits and compensation programs.
Identification of employee objectives-Corporate culture will be attracting similar type employees
(Sum Chau, 2008). An important aspect is to understand what the different workers want by
talking to existing employees and industry data. Older employees are concerned with health care
benefits and retirement and few employees want growth opportunities like education funding.
Wherever possible, check for the competitor benefits and compensation program contain.
Everyone is intended to make as much money possible (Yang, 2011).
Setting the budget-A realistic approach is required for the company’s budget.
Determination of total amount that can be spent on any employee is required to be calculated by
the management. Valued employees will be paying for work efficiency. A factor which costs for
the employee that includes the payroll costs, compensation, taxes and bonuses is necessitated.
Determination of what is affordable in immediate benefits and compensation is deemed
priorities. For instance- a vacation package or a retirement plan to the employees must be given
for a specific period of time. This is known as vesting and promotion of loyalty amongst the
personnel can be evaluated. If an employee do not wish to stay with the company after the given
minimum time, the company can have access to funds that have been spent on vested plans
(Folz, Abdelrazek and Chung, 2009). There are annual reviews and employees are provided with
performance metrics that can qualify for the rise in pay.

Code of Conduct for HR Managers 4
Plan Implementation-The implementation of a compensation plan requires incorporating
and writing a new and updated personnel manual. Compensation numbers will be private and the
rules of receiving the strategic compensation benefits will be listed to everyone for reviewing it.
Everything must be stated in detail. Listing of vacations and sick days must be listed. A
discussion can be taken place what changes are required to be made for the schedule change and
approval made for the overtime. The benefit packages like retirement plans and health care plans
with eligibility rules must be stated. The new plan must be told to the employees as they can
review the same. The management needs to share the plan with new personnel’s and clarity must
be focused.
The competitors can have a broader compensation and benefits program. The
company needs to be creative in the strategy building. For instance-a flexible schedule must
be offered to the employee and how to get the commitment. Lower wages can be offset
through high bonus package for having the successful sale. The management must have a
strategic view of how to do the performance appraisal of the employee.
HR’s Role in Ethical Performance Management-Performance has been understood as the
achievement in any organization with relevance to set goals. This includes achieved outcomes
and accomplishments through the contribution of teams and individuals to the achievement of
strategic goals. This term performance will encompass the behavioral and economic outcomes
(Auden, Shackman and Onken, 2006). Performance can be viewed comprehensively by
incorporating results and behaviors. The role of a manager is seen in different parts-Doing, Being
and relating. Doing focuses on effective management of activities and Being focused on the
different competencies which are relevant to the performance. Performance can be linked with
the potential of the individual and how productive processes can be managed in output. The

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potential of a manager can be determined when set of task will be assigned and this is in
relevance with performance standards. Task related activities refer to the achievement of
allocated tasks and meet the expectation in a task environment (Koliba, Campbell and Zia,
2011). Performance refers to the achievement of managers and how this role is created for the
achievement of a purpose. The actual performance comprises of several forces. These are
internal and external to the organizations. Few organizations will not take forces systematically
(Lyons, 2009).
Effective Performance Management-Transparency in decisions related to performance
measurement and improvement are followed. These include work planning, guidance,
performance review, monitoring and work allocation. All these variables must be effectively
communicated to the managers in the organization. Effective participation of personnel in
decision making process and managing their talent rewards and merit is necessary. Providing
more responsibility and authority to the managers in a matter of key concern. Values involve
ensuring and treatment to key stakeholders of the organization (Kapucu, 2009). Treating the
people as living forms rather than just employees forms the foundation. Congenial work
environment-the environment must be conducive and people must be able to share the
experiences. The employees must be well informed about the mission, values and objectives for
management and development of individuals for better performance. External environment needs
to be effective and overcome the impediments and obstacles in the pathway of managerial
performance (Breul, 2007).
Performance Evaluation of Employees-This serves the number of aims in organizations.
Management will utilize the human resource evaluation for personnel decision. Evaluation
techniques will provide input for essential decisions like promotions, terminations and transfer.

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Evaluations need to identify the development and training needs. Performance appraisal
pinpoints the competencies and employee skills which require programs to be developed to
remedy (Rivenbark and Kelly, 2006). Performance evaluations are used as criteria on which
selection and training programs will be validated. There are instances where newly hired
personnel cannot give effective performance and requires training effectiveness to be measured.
Evaluation can fulfill the purpose of giving feedback to personnel on how the organizations look
at the performance (Marcoulides, 2008).
Organizations and management staff may experience an array of pressures which can
create prerequisites for ethical conflicts and dilemmas. Economic pressure needs to be combined
with increased external and internal competition that is being starved by the people to achieve
more resources. This also implies reduced funding. Uncertainty and political upheaval are
leading towards increasing anxieties around staffing and job security. This also includes the
power dynamics and interaction patterns. Social factors are not properly managed through the
workers. Increased globalization requires enhanced cultural sensitivity among international
companies. Ethical and legislative changes in areas like privacy and data protection will create
new responsibilities. Environmental pressures involve needing to respond towards the climatic
change and conflicts with human behaviors and economic pressures.
There are other reasons which are identified as to why legal conflicts like inequalities
attempt of reducing the performance demands and stakeholder interests. However, performance
evaluation has been utilized as the basis for reward motivation and allocation. The expectancy
motivation model shall provide the linkage between effort and performance. In an expectancy
model, the individual performance evaluation is a must. To maximize the motivation, people will
be required to take in the effort which leads to favorable performance evaluation and leading to a

Code of Conduct for HR Managers 7
reward system. Adopting the motivation model, objectives needed to be achieved through and
measuring criteria must be clear. The organization needs to make performance objectives must
be clear and employees can lead the satisfactory payoffs on achievement of the organization
performance objectives. The individuals need to work considerably at potential levels and
achieving the desired level of performance (Pichler, 2012). The potential legal and ethical issue
confronted by the company has been illustrated in different international cases. By gaining
shared information, fairness, personal contacts and honesty and having supplier relations is
necessitated. Consideration of company value and track record of potential job personnel and
undermining of positioning of a company and credibility in marketplaces gain attention. Ethical
issues arise in different companies and have a potential negative consequence over the small and
medium enterprises.
Conclusion
Globalized business undergoes reputational damage and having the detrimental impacts
which are widely spread through the different channels. The role of a human resource manager
within the organization is measured at different points. This requires the nurturing of ethical
organizational culture. The staff recruitment which can set the organizational ethical tone and
uphold the ethical climate and resolution of ethical conflict is a must. Moral Maxims will be
provided with initial guidance to employees confronting the ethical dilemma on the spot. HR
managers will benefit through refinement of ethical reasoning and utilization of systematic
analysis for enhancement of ethical judgment. A process for analysis of ethical situation or
problem with the application of ethical protocol shall be made into the organizations. Specifying
the ethical issues and its reasoning to reach the ethical judgment is a must. The procedure will

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start with the cultivation of ethical sensitivity and awareness and take proceeds for identification
of ethical issues. Selection of ethical theory and specification of alternatives and justifying the
decisions and final monitoring of decision outcomes must be done by the HR managers.
Performance Appraisal is one of the tools for implementing Human Resource policies and follow
the ethics of rules will perceive the whole system as ethical

Code of Conduct for HR Managers 9
References
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management factor and firm performance. Team Performance Management: An International
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Breul, J. (2007). GPRA—a Foundation for Performance Budgeting. Public Performance &
Management Review, 30(3), pp.312-331.
Curseu, P. (2015). Team Performance Management – 2014. Team Performance Management:
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Eremin, D., Wolf, J. and Woodard, C. (2010). Systemic Bias in Federal Performance
Evaluations. Public Performance & Management Review, 34(1), pp.7-21.
Folz, D., Abdelrazek, R. and Chung, Y. (2009). The Adoption, Use, and Impacts of Performance
Measures in Medium-Size Cities. Public Performance & Management Review, 33(1), pp.63-87.
Kapucu, N. (2009). Performance Under Stress: Managing Emergencies and Disasters:
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