Importance and Key Contribution This is a discussion paper on the ethics of performance management (PM) practice and its implications for the workplace. The paper draws on a number of international research papers and attempts to put forward a case for specific research in Ireland. The paper will refer to primary research on the comparative perceived impact of PM practice in Ireland between the private and public sectors. It will then explore its possible connection to ethical practice in the workplace. A number of other countries are cited, including the United Kingdom (UK), the United States of America (USA), Canada and India. The paper seeks to explore the link between the perceived impact and effectiveness of PM in Ireland and the ethical considerations as researched by a number of international commentators.
Theoretical Base PM has been defined as the continuous process of improving performance by setting individual and team goals which are aligned to the strategic goals of the organisation, planning performance to achieve the goals, reviewing and assessing progress, and developing the knowledge, skills and abilities of people. For a meaningful and worthwhile approach to be made worthwhile regarding ethics to be built into this PM process or system, the following four principles have been recommended: (i) respect for the individual, (ii) mutual respect, (iii) procedural fairness and (iv) transparency of decision making. Of course PM is not a perfect system and has its inhibitors. This paper will examine how to overcome these inhibitors as well as explore if ethical principles can assist HR and line managers in optimising their organisations’ PM process.
Research Question The aim is to see if PM can be made more effective if ethical considerations and responsibilities are factored into it in practice.
Findings: Data from Ireland showed that a combined total of 92% claimed that the PM process had been effective. Furthermore, a clear majority in the private sector over their public equivalent state that the process was effective. ‘Lack of follow up’, ‘lack of managerial support’ and ‘failure to review/monitor the system’ were the three greatest inhibitors overall. Under bivariate scrutiny, ‘lack of follow-up’ and ‘subjectivity or bias in appraisal’ rank higher in the private sector, while in the public sector ‘failure to review the PM process’ and ‘lack of managerial support’ feature quite strongly. In many organisations the impact of the various obstructions was alleviated by the presence of formal evaluation systems. In a further Irish quantitative study, it is indicated that the codes of internal conduct amongst indigenous Irish organisations in most industries has increased significantly in recent years. However, it was found that these codes focus primarily on issues surrounding company and employee protection, as opposed to society protection with employee confidentiality, adherence to the law, health and safety and the protection of company information to the fore. A third and earlier Irish study, this time of a qualitative basis, analysed Irish manager’s perceptions about the degree of wrongness of ten types of unethical conduct. Results indicate that only a few of those independent Irish owned businesses have a formal business code. This study also found that trade unions are important in setting ethical standards for indigenous Irish firms. It advocates that those without strong unions might articulate their own organisational values.
In the UK, a case-study undertaken in the mid-1990’s on the British School of Osteopathy (BSO) the research sought to identify how stakeholders would define quality of teaching in their clinics. It showed the benefits of bringing together organisational, group and individual concerns for performance measurement into one framework. It argued that the policing concepts and activities that have become known as PM in the area of human resource management (HRM) need to be seen as outdated at least for the management of professional activity. The Chartered Institute of Personnel and Development (CIPD), London, in a recent review of ethical decision-making describes eight ethical ‘lenses’ or ways of seeing and re-imagining our ethical predicament. They are: fairness, merit, markets, democracy, well-being, rights and duties, character, and handing down.
In India, a cross sectional study involving secondary data collection and the use of content analysis technique has found that corporate social responsibility is now presented as a comprehensive business strategy, arising mainly from performance considerations and stakeholder pressure. Indian organisations consider their interaction with stakeholders and the impact of its business on society as significant issues. Meanwhile in the United States of America (USA), it has been found that the key difference in business ethics between the US and the rest of the world is its emphasis on the individual while other capitalist nations focus on the corporation or organisation as whole. Secondly, business ethics in the US tends to be more legalistic and rule-oriented. Thirdly, American management are more likely to consider their own ethical rules and standards to be universally applicable.
Implications This paper seeks to establish a case for a study of the Irish experience concerning PM practice and ethical considerations in the workplace. It looks at examples from the UK, the US and further afield, and shows how PM has a credible role to play in Ireland when ethical considerations are being made by employer, employee, and trade union or worker representatives alike.
References Chartered Institute of Personnel and Development (CIPD) (2015); Gautam and Singh (2010); Harrison and Freeman (1999); O’Dwyer and Madden (2006); Stohs and Brannick (1999); Winstanley &Stuart-Smith (1996); Vogel (1992).
Key words: performance management, ethics, private and public sector, codes of internal conduct, corporate social responsibility, [ view full abstract ]
Key words: performance management, ethics, private and public sector, codes of internal conduct, corporate social responsibility,
