Business Ethics Essay Example | Topics and Well Written Essays - 1500 words - 2

Business Ethics - Essay ExampleThroat cutting competition and proclivity for growth is pushing companies to make every possible effort to improve their feat. It was during the 1950s when experts used the consideration performance watchfulness to refer to the systematic and controlled make for with which organizations would monitor their performance in order to action their goals terminationively and efficiently. Today, performance have it offment is a crucial part of every big organization. Despite the circumstance that the Human Resource Departments are usu tout ensembley responsible for conducting the performance management functions and activities, entire organizations contribute to the process to make it successful (Dresner, pp. 214-219). There are five major pillars of performance management. First, planning the goals and objectives and deciding on the expectations. Second, performance management, as mentioned earlier is also about having a check and balance on the perfo rmance of the organization and its employees. Third, performance management also binds managers to ensure that there are enough resources available at the disposal of the comp all, departments, and employees to achieve those goals. Fourth, with the help of balance scorecards and performance appraisals forms, performance management also requires managers to rate and rate the performance of individuals and groups. Fifth, lastly, with different pay systems of contribution-based pay, performance based pay, skill based pay and others, and it rewards and appreciates employees for their performance (Cardy, Leonard & Newman, pp. 85-89). Managers all over the world are realizing that many decisions and processes required for performance management necessitate upholding of high estimable and moral standards. These ethical dilemmas are everywhere in the system of performance management. It becomes even more in-chief(postnominal) to answer and address because many decisions concerning the fu ture of the company and the future of its employees, remains depended on these performance management decisions. Companies use this data for recruitment, selection, layoffs, terminations, promotions, bonuses, pay increases, rewards, demotions, and others (Cardy, Leonard, & Newman, pp. 85-89). One ethical question, which comes up during the performance management of companies, is the fact that whenever companies manage performance of their employees, they are well aware of the fact that the element of bias is embedded deeply in the system. Experts have pointed out many forms of bias, which are present in the system when employees are being rated. First, folly wrongful conduct when the rater or the manager has the tendency to be lenient, nice, and kind to all the employees because he knows that these ratings would probably conciliate their future. Furthermore, in order to keep harmony within the group or the department, to gain support, to reduce any tensions or confrontations, ma nagers also try to give above average ratings to all the employees. Second, central tendency error occurs when managers do not want to give very high or very low ratings to anyone. legion(predicate) managers know that their high and low ratings would force employees to ask them a series of questions, explanations and proofs and the best way to avoid that conversation is by giving them all average rating (Luecke, Hall & Harvard Business School, pp. 321-324). Third, halo effect occurs when manag