Ethical Performance Management System

Decisions in organizations should be value-driven

It is important to adopt a respectful as well as ethical performance management system because it improves organizational decision-making. The destiny of a person is the combination of the decisions which they take in their lifetime. This is the same case in organizations as the decision-making process plays a vital role in promoting the organization’s shared value (Kerr, 2019). The decisions that are made in organizations are usually driven by their values (Widagdo et al., 2021). For instance, a company that does not value competition in market place will be fierce in its activities or operations. Its major objective will be to eliminate its competitors and establish a monopoly.

Companies guided by ethics and respect realize profits

Organizations guided by respect and ethics are usually profitable in the long run. Companies that are guided by respect and ethics usually tend to be more successful in the long run although in the short run they seem to be losing money. Employees have a great role in improving the performance of a company which is partially measured in terms of profitability (Chamtitigul & Li, 2021). Therefore, employees and the management should conduct themselves in a respectful and ethical manner to ensure significant lantern gains for the company (Huda et al., 2020). The benefits of such behavior may not be seen in the short run in terms of profitability but, in the long run, such benefits are visible.

Leaders and Employees enjoy a common platform

Respect and ethics bring the employees and management on a common platform. One of the key benefits of an ethical and respectful performance management system is that its employees and leadership are united and work towards a shared value of the organization. Organizations driven by a respectful and ethical performance management system is revered by its employees (Dirani et al., 2018). In this case there is a common link that joins the leaders and the employees. This is very important in aligning the behaviors in an organization and ensuring that every employee and leader is committed towards a common mission or goal (Widagdo et al., 2021). Additionally, organizations that are founded in respect and ethics are focused towards an established norm which results in a company realizing most of its targets.

Community values organizations driven by respect and moral values.

Organization driven by ethics and moral values are respected in the community. Another importance of applying a respectful and ethical performance management system is that it develops credibility for the company. Companies that adhere to moral values are respected by members of the society (Dirani et al., 2018). Even individuals who do not have information about the operations of the organizations, they still respect such companies due to their attractive moral values (Huda et al., 2020). For instance, Infosys is perceived as a company for social corporate responsibility initiatives and good corporate governance. This perception is held far and wide even by individuals who have no idea of the company’s businesses or operations.

The basic human needs are being fair, honest and ethical

Each employee desires to be fair, ethical and just. Similarly they desire being around people who observe these values. They also like being in organizations that are ethical and respectful in all their practices (Fee & Michailova, 2020). No employee would like working in an organization that is dominated by discrimination based on aspects such as race, religion, social class, ethnicity or level of education (Sharma et al., 2016). Therefore, organizations that apply an ethical and respectful performance management systems satisfy these basic human needs and are desired by most employees. Satisfaction of the basic human needs of workers also plays a critical role in promoting their motivation levels and therefore workers are more dedicated to the organization objectives and goals (Kerr, 2019). The organization benefits as it can reap high profits and a more dedicated workforce.

Employees are motivated to work in a respectful and ethical environment.

Another significant benefit of adopting an ethical and respectful performance management system is improved employee performance. When an organization observes ethics and moral values, the employees are motivated to work harder since they feel comfortable in the organization and valued. It is worth noting that employees are demotivated when working in organizations where they are not respected or valued (Chamtitigul & Li, 2021). Lack of motivation and morale at work significantly lowers the performance of employees (Fee & Michailova, 2020). An organization that puts efforts to enhance employee ethical environment and respects them is able to thrive and outdo their competitors in a business setting. This can be evidenced by the high profits they will reap from worker motivation

Fair procedures and transparency

A respectful and ethical performance management system with my current employer will be characterized by fair procedures as well as transparency. Under fair procedures, the systems are operated and managed with a high level of fairness (Fee & Michailova, 2020). Transparency involves giving the people to be affected by the decisions arising from the performance management process a chance to scrutinize as well as examine the basis upon which such decisions were made. Fair procedures and transparency also play a vital role in assisting to motivate workers towards realizing a shared value. This helps an organization realize its goals and objectives in general.

Mutual respect and committed employees

A respectful and ethical performance management with my current employer will be characterized by committed employees and mutual respect. The employees are committed to the goals and objectives of the company and are driven by the core values of the company (Huda et al., 2020). Under mutual respect, all parties involved in the performance management system respect all the preoccupations as well as the needs of one another (Dirani et al., 2018). Performance management is a much broader and a complicated function of HR, as it encompasses activities such as joint goal setting, continuous progress review and frequent communication, feedback and coaching for improved performance, implementation of employee development programs and rewarding achievements.

References

Chamtitigul, N., & Li, W. (2021). The influence of ethical leadership and team learning on team performance in software development projects. Team Performance Management: An International Journal.

Dirani, K. M., Nafukho, F., & Irby, B. (2018). Talent Development in international contexts. Global Issues and Talent Development: Perspectives from Countries Around the World, 1(3).

Fee, A., & Michailova, S. (2020). How host organizations prepare for and learn from expatriate assignments. Thunderbird International Business Review, 62(4), 329-342.

Huda, M., Nor Muhamad, N. H., Isyanto, P., Muhamat, R., Marni, N., Ahmad Kilani, M., & Safar, J. (2020). Building harmony in diverse society: Insights from practical wisdom. International Journal of Ethics and Systems, 36(2), 149-165.

Kerr, W. R. (2019). The new HR challenge. An International Journal, 10(3), 116-132

Widagdo, A. K., Murni, S., & Nurlaela, S. (2021). Corporate social responsibility, earnings management, and firm performance: Are the companies really ethical?. In IOP Conference Series: Earth and Environmental Science, 8(1), 12-118. Web.

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BusinessEssay. 2024. "Ethical Performance Management System." December 21, 2024. https://business-essay.com/ethical-performance-management-system/.

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