Ethics and Organizational Development: HRM's Role

Introduction to Ethics in Organizational Development

Organizational development is a practice known for carrying out effective change within any organization, and ethics plays an important role in this practice. Such change is applicable at different levels — to the individual, to the team, or to the organization as a whole. The changes that are deliberately focused upon are called "interventions." Change at the individual level is aimed at the advancement and growth of specific members of the organization. Interventions at this level are designed using tools such as personality development workshops, career counseling, training programs, internship classes, 360-degree feedback, and executive coaching.

Conducting regular programs on company ethics and training for stakeholder management are significant solutions for dealing with individual administrative or managerial issues in the organization. These issues typically arise when managers attempt to meet the competing and often conflicting expectations of various stakeholders (Wood, 121–122).

Achieving organizational development is fundamentally based on the concept of drawing the best from employees while keeping within the boundaries of the organizational code of conduct. An ethical administrator or consultant can improve both employees' and managers' working lives by showing them the right approach. When commencing a project, ethical leaders typically commit to avoiding layoffs as part of their ethical principles. This approach enables the organization to achieve higher productivity and profitability without resorting to job cuts. The key elements that constitute a successful organization include quality improvement, job enhancement, and organizational development. The responsibility of the organizational consultant should be to allow employees to give their finest effort and to provide them with the capacity for change. Focus should be placed on the system rather than on individuals — problems within the system and technology should be resolved, which results in higher quality and productivity. Organizational strategy and vision should be transparent to every employee, as this motivates the work environment (The Ethics of Organizational Interventions).

Team-Level and Organizational Ethical Interventions

Team-level intervention helps in the formation of high-performing teams. When members of an organization collaborate and generate excellent ideas for change, results consistently improve. An executive supports team development by using a variety of tools, including ethical training for the team, team-building programs, strategy alignment, mission clarification, and process consultation. Ethical training at this level includes examination of the processes followed for supplier demands and contract proposals. The distinction between a gift and a bribe should be clearly explained within such programs (Wood, 121–122).

Organizational ethics can, in other words, be regarded as a tool that binds an organization into a unified society. The focus of organizational ethics is on honoring the outstanding past, addressing the present effectively, and using both to drive future progress. It treats the individuals within an organization as a family, developing the capacity and competitiveness of each member, assigning them to appropriate teams, and enhancing their determination and capability. Organizational ethics thereby paves the way for organizational integrity. Improving and shaping the system promotes organizational development. The results of effectively introducing ethical values into an organization include lower rates of unethical or illegal behavior, a more favorable disposition toward seeking legal guidance, greater willingness to report misconduct, broader familiarity with legal and ethical issues, and more effective fulfillment of stakeholder expectations (Essential Aspects of Corporate Responsibility Programs).

Managers recognize that organizational development results from the effective identification of tasks and their assignment based on the abilities of individuals or groups — making even the "division of labor" a matter of organizational ethics. Managers must draw a clear line between social responsibility and organizational ethics to maintain their morale and commitment to the organization's future. Ethics is undoubtedly part of organizational life, encompassing techniques and models essential for achieving an organization's mission and shared purposes. People who share common beliefs are better able to withstand pressures from stakeholders. Ethical leadership requires ethical thinking, action, knowledge, and communication. When organizational ethics properly establishes power and authority alongside trust and knowledge, there is no cause for fear (Integrating Applied Ethics and Social Responsibility).

Human Resource Management and Ethical Performance

In the present era, business and organizational development depend considerably on Human Resource Management (HRM). In this area, HR personnel serve as key facilitators. The contribution of HRM to organizational ethics is extensive. Human resource management provides models and theories for implementing an ethical environment that supports organizational development.

Foremost among these is performance management — a framework that encompasses performance appraisal, compensation, selection, and training. Improvements through this process lead to greater employee motivation. Performance management therefore drives effective ethical behavior and advances employees' ethical conduct. HRM implements performance management with the help of tools such as the "ethical values matrix," which demonstrates the importance of establishing and applying ethical values. It conveys the message that pursuing productivity without ethics puts one's position at risk. The most significant long-term effects of adhering to ethical values include sustained profitability, productivity, and business continuity. Many governmental regulations also incorporate codes of ethical conduct for organizations (Deckop, 75–78).