ETHICAL ISSUES IN MANAGEMENT

Ethical Issues in Management

Ethical Issues in Management

Ethical & Moral Issues in Performance Evaluation

To abandon or abuse the performance appraisal process is a breach of business ethics. While some managers are skillful and genuine in reviewing an individual's performance, that does not appear to be typical (Cludts, 2009). The ethical ramifications of performance review have caused managers and employees at all levels to become frustrated, cynical, and withdrawn.

Relationship between Social Issues and Ethically Responsible Management Practices

Many managers talk about ethics but do not recognize or act upon ethical issues in their day-to-day managerial responsibilities. Most ethical questions arise from people relationships within the organization (Fleming, 2007). Managers must realize that ethics is the process of deciding and acting. Recent survey results in one large organization indicate that only 26% of managers believe they are recognized and reinforced for their ethical decisions and behaviors. Employees have a big stake in the way managers evaluate and operate (Goodpaster, 2001). Managers and nonsupervisory employees alike cite concern about "politics and lack of fair treatment, honesty, and truthfulness" in connection with the performance review.

Experience has clearly indicated that the handling of performance review sessions is usually far more critical than the decision made or information conveyed in the session. Frequently, when unsuccessful candidates for promotions are notified of the decision that someone else has been selected they are not told why (Higgs, 2009). Often they are not told anything, usually because the managers or supervisors do not feel equipped or skillful enough to explain the reasons in a systematic and rational way.

Sometimes, major miscommunications occur in performance review sessions due to basic differences in ethical orientation. For example, the reviewer may say, "That report is a requirement, and we need to follow the rules of the organization." The person being reviewed may reply, ...