Human Resource Management Report: Ethical Decision Making in Business

This report delves into the critical aspects of human resource management (HRM) with a focus on ethical considerations and their impact on business profitability. The report begins by addressing the ethical implications of business decisions, emphasizing the importance of adhering to legal and ethical standards, even if it means short-term profit reduction. It highlights the long-term benefits of ethical practices, such as enhanced corporate reputation and stakeholder satisfaction. The report then examines the significance of recruitment and selection processes, emphasizing their role in reducing future costs by selecting competent employees. Furthermore, the report contrasts HR practices in small businesses with those in large organizations, highlighting differences in resources, responsibilities, and recruitment methods. Small businesses often offer a more multifaceted work environment, while large organizations provide a more structured setting. The report utilizes case studies and references to support its arguments, providing a comprehensive overview of ethical HRM practices.

Running Head: MANAGEMENT 0
HUMAN RESOURCE
MANAGEMENT

MANAGEMENT 1
1. Being a manager, I will surely go up with the decision where the minimum profit
comes in the short run but it is bounded legally as well as contribute to stockholder
satisfaction. As business is known to be an entity itself, it must follow laws and rules
to operate within respective boundaries. These rules help the business for maintaining
balance and the greater good of society. Maximising the profit by harming the
environment reflects unethical behaviour of an organisation as a business always need
to be aware of activities and how do they impact the environment (Stubbs & Cocklin,
2008). For example, Volkswagen has to suffer heavy loss as the fallout from the
emission scandal and their net loss for last year stood at 1.582 billion euros ($1. 77
billion) (Matthews, 2016). In long term, this decision will surely maximise the profit
and also satisfy the stockholders as this decision will positively add to CSR practices
as well as enhance corporate reputation in the respective industry.
2. In my perspective, I consider recruitment and selection as one of the most significant
HR function that makes a great impact on profit margin and revenue growth of the
company in comparison with other practices such as onboarding, retention, managing
talent and leadership practices. In organisation, HR departments use the major portion
of their money and effort in managing their employees and this adversely impact firm
hiring needs. It is important for recruiter to ensure that only competent and capable
individual should be select for the particular vacancy as this will directly reduce the
cost of managing an individual in the future (Jiang et al, 2012).
3. Although all HR departments share the same goals however, size, resources,
responsibilities and recruiting methods are the major differences between HR
practices in small business versus an international setting. HR practices within small
business fill the niche needs better as they have less employees to deal with. In a
larger firm, one has to play more specific role, for example, payroll management or
employee training (Noble & Irwin, 2009). In small businesses, there are limited
resources, greater responsibilities, and elementary methods of recruitment, they
provide a multifaceted work environment with more flexibility. On the other hand,
large organizations need to offer targeted workloads, less room for creativity, and a
more structured work environment.

MANAGEMENT 2
References
Jiang, K., Lepak, D. P., Han, K., Hong, Y., Kim, A., & Winkler, A. L. (2012). Clarifying the
construct of human resource systems: Relating human resource management to
employee performance. Human Resource Management Review, 22(2), 73-85.
Matthews, A. (2016). https://www.cnbc.com/2016/04/22/vw-hikes-emissions-provisions-to-
181-192-billion-report.html. Retrieved from https://www.cnbc.com/2016/04/22/vw-
hikes-emissions-provisions-to-181-192-billion-report.html
Noble, C., & Irwin, J. (2009). Social work supervision: An exploration of the current
challenges in a rapidly changing social, economic and political environment. Journal
of Social Work, 9(3), 345-358.
Stubbs, W., & Cocklin, C. (2008). Conceptualizing a “sustainability business
model”. Organization & environment, 21(2), 103-127.