Submitted by: Submitted by mjojo
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Pages: 5
Category: Business and Industry
Date Submitted: 01/02/2011 11:19 AM
Ethical Issues in Management
Whilst society is essentially based upon performance and profit, it is not unusual to find that ethical issues abound in the process of the performance review. Social, moral, and economic pressures can also influence the ethical issues which are bound up in the performance review. To further complicate matters, there are often legal aspects that have to be considered, along with the ethical issues, that are influenced by the social, moral, and economic pressures, that are all bound up in the process of the performance review. It is hardly surprising that most managers and supervisors dread this part of their job. The following will describe a workplace example of the performance review process, including two ethical issues faced by the managers, the social, moral, and economic pressures that could influence the ethical issues, and some legal aspects faced during this process.
Performance Review Process
The Company, a successful retail corporation, has a policy of annual reviews for in store hourly employees on their anniversary dates. The reviews are on preprinted forms with number scores ranging from 1-poor to 4-excellent in twenty-five different categories. Annual raises are based on performance and the Company does not have an annual cost of living raise. Most in store hourly employees, in position for more than four years, will reach a raise cap for the position and then only receive a $0.05 an hour raise unless they have an excellent score of ninety or above on their performance review. The Company considers that this is a fair policy which encourages hourly employees to excel at their jobs and actively seek promotions within the Company. The store executives’ response to this policy is to hand management a total number score and then leave it up to the manager to fit the review around the score.
Ethical Issues
One of the ethical issues facing management during this performance review process is whether to...