ETHICS IN PERFORMANCE

MANAGEMENT

Daliya Manuel

Ethics
- is a branch of philosophy.
- is a normative science because it is
concerned with the norms of human
conduct.
- as a science, it must follow the same rigor
of logical reasoning as other sciences.
- as a science, involves systemising,
defending and recommending concepts of
right and wrong behaviour.

Ethics

Ethics is a process of rational thinking aimed

at establishing what values to hold and when
to hold them.
A moral principle or set of moral values held
by an individual or group.
Ethical - Based on a system of moral beliefs
about right and wrong, in accordance with
principles of professional conduct.
Managerial ethics - Standards of conduct and
moral judgment mangers use in their business

Ethics

Ethics is a fine word to listen about. But it

is a hard nut to crack when comes to
practicing it.
Whether it be an individual, business,
society, nation, government or a
professional, ethics has its own significance.
It is immortal, universal and significant in all
walks of life.
Business or corporate world cannot be an
exception to this.

Ethics

Ethics is a fine word to listen about. But it

is a hard nut to crack when comes to
practicing it.
Whether it be an individual, business,
society, nation, government or a
professional, ethics has its own significance.
It is immortal, universal and significant in all
walks of life.
Business or corporate world cannot be an
exception to this.

Sources of Ethical Norms

What is Business Ethics?

Business ethics is the application of general

ethical ideas to business behaviour.
It is based on the principle of integrity and
fairness and concentrates on the benefits
to the stakeholders, both internal and
external.
Stakeholder includes those individuals and
groups without which the organization does
not have an existence.
It includes shareholders, creditors,
employees, customers, dealers, vendors,
government and the society.

Why should Businesses act Ethically?

To protect its own interest.

To protect the interests of the business community as a whole
so that the public will have trust in it.
To keep its commitment to society to act ethically.
To meet stakeholder expectations.
To prevent harm to the general public.
To build trust with key stakeholder groups.
To protect themselves from abuse from unethical employees
and competitors.
To protect their own reputations.
To protect their own employees.
To create an environment in which workers can act in ways
consistent with their values.

Performance management

Performance management is one of the

most important aspects in the
management of human resources.
However, made in an inappropriate way,
it can be harmful rather than useful.

Ethics in Performance
Management

Each of the above mentioned action has its ethical

dimension.

Ethical Performance Management

It is defined as the process of planning,

managing, appraising, and monitoring employee.
Performance is based on the principles of
fairness, objectivity, transparency and good
corporate governance to achieve the
organizational objectives.
It promotes effective self-regulatory practices and
management systems that foster a relationship
of confidence and mutual trust between
managers, employees and the organization.

Ethical Issues

Lack of objectivism
Hierarchy effect
Stereotype
Central tendency
Halo effect/Blinding effect
Mirror personality
Recency effect/Freshness mistake
Contact effect
Horn effect
Projection mechanism
First impression effect
Self-fulfilling prophecy
Culturally determined distortions

Negative Effects

Energy levels at work drop

Gossip and rumors
Attendance floats
Turnover excels
Clients lose trust
Profits decrease to the point of extinction
Morale can be destroyed overnight
Productivity becomes nonexistent

Setting objectives

SMART goals
Set appropriate goals
Universality
Continuity
Uniformity
Simplicity
Openness
Flexibility
Confidentiality

What can be done?

Performance appraisals are a great way for a

company to assess their employees.
In a perfect world, the appraiser would leave all
bias and unethical decisions away from the
meetings.
Since this is not always the case, implementing
training and awareness for performance
managers is a good way for them to become
familiar with the unethical possibilities so they
can prevent themselves from having them
occur during a performance appraisal.

Machine Learning

Machine learning can collect employee work and give a

more holistic picture of a workers performance,
without bias.
Its data collecting power can be used to improve
managers coaching skills.
While managers do more than just manage people in
todays work environment, they may be doing less to
engage employees in professional development.
Offering workers timely feedback and recognition
It can help managers to give constructive criticism and
praise when its relevant and warn when necessary.