2. Ethics is the backbone of an organization and all its activities
Ethical performance management is defined as the ‘process
of planning, managing, appraising, and monitoring employee
performance based on the principles of fairness, objectivity,
transparency and good corporate governance
3. Ethics in Performance Management
• Ethics is a process of rational thinking aimed at establishing “What values to
hold and when to hold them”
• A Moral principle or a set of moral Values held by an individual or group
1. Ethical- of or Based on a system of moral beliefs about right and wrong, in
accordance with principles of professional Conduct.
2. Managerial Ethics - Standards and Moral Judgment managers use in their
Business.
4. Ethical Behaviour
• Higher employee loyalty
• Encouragement of personal sacrifice
• Honouring of Organisational policies
• Reduction in Turnover
• Satisfied Customers
Unethical Behaviour
• Manufacturing- Use of inferior quality of material
• Marketing- Misleading customers about product features or service differentiations.
• Distribution- Changing priority of booked orders without informing customers.
• Customer Care- Not keeping commitment on Guarantees.
5. Objectives and Significance of Ethics in
Performance Management
Building a better society
Cultivates high-performance teams
Attracts and retains talent
Maintains legal sanctity
Improves reporting
Promotes a strong corporate image
6. Ethical Issues and dilemmas in
Performance Management
Managerial malpractice
Value Conflict
Moral Mazes
Corporate goal achievement
Employee engagement
Managerial favoritism
Peer Pressure
Workplace politics
Violation of ethics
7. Ethical Strategies in Performance Management
1. Education and training on ethics
2. Employment Accountability
3. Communication
4. Resolving value conflict
5. Increasing employee engagement
6. Culture of dissent
