1.

Discuss several areas in which HR can affect organizational culture positively or

negatively.

A human resources department plays a significant role in determining the culture of an

organization. Human resources cultivate and execute policies and procedures in key areas such
as hiring practices, compensation, management relations and employee conduct and behavior.
The decisions made by the human resources department can have significant positive and
negative implications for the overall cultural quality of the organization. Some of the affected
areas include creating awareness, compensation plans, hiring practices and behavior.

Company executives may not always have a true understanding of their corporate culture, as they
are often far removed from the "front lines" of the operation. Human resources personnel can
provide the benefit of instructing top management as to what the culture is really like. This may
lead to positive changes in the corporate culture, it could also lead to changes that meet with
resistance from employees, such as when management decides it needs to change or eliminate
popular employee programs that it deems wasteful or unproductive.

When it comes to compensation, the human resources department typically accepts the
responsibility of designing compensation programs for the organization. Depending on how they
achieve this, it could have a positive as well as negative impact on organizational culture. For
example, an incentive program for salespeople may provide the opportunity for these employees
to increase their compensation through greater productivity. Nevertheless, it could also create an
environment where the salespeople are competing against each other, leading to the deterioration
of teamwork and morale.

Human resources also determine the hiring and recruiting practices used by the organization,
which has a great impact on the organizational culture. Strong attention to characteristics of job
candidates such as education and experience can certify that the company hires employees who
are capable of performing the job. In contrast, if there is a lack of focus on characteristics like
personality and people skills, the company may end up hiring candidates who will have difficulty
being a sole member of the corporate culture. Another key area subsiding under human resources
is the conduct of the organization's members. In many organizations, particularly larger ones, this
involves the development of a code of conduct or ethics that specifics how employees should
treat each other and conduct their daily activities. An operative code of conduct that denotes the
core values of the organization and is strictly enforced can promote a culture characterized by
high levels of ethical behavior. On another note, a weak code or one that is only given lip service
by human resources could lead to a culture of dishonesty and distrust.

2. Give some examples of ethical issues in human resource management and justify
how HR managers can resolve the issues.

The Human Resources Manager is responsible for employee relations support. Other than Ethics,
the Human Resources Manager is also responsible for compensation management; recruitment
and selection; policy development and interpretation; training and development; workers'
compensation and benefits administration, among others. HR Managers use the Code of Conduct
chartered and agreed upon by the organization, as the guiding principles. There are many Ethical
Issues that HR Managers should observe in their dealing with employees:

Harassment

This is a very common form of vice in many organizations. HR Managers must always ensure
that relevant ambiance is available for employees maximum output. Intimidation and harassment
of employees by use of threats and unnecessary warnings would usually create a bad working
environment, and eventually low productivity. Sexual harassment is the most common and is
regarded as gross industrial misconduct which, if proven, calls for instant dismissal. Many
organizations have a harassment policy that guides employee relations. It’s the responsibility of
HR Managers to observe this when dealing with employees.

Discrimination

Another common ethical problem HR Managers must deal with is discrimination. This can
happen during hiring, promoting, disciplining, and even compensating. Discrimination can be
based on sex, creed or personal beliefs, race or physical abilities. These factors should never be a
consideration when relating to employees. HR Managers must always base their decisions on
principles, procedures and values, but not personal biases.

Discipline
When dealing with employees, HR Managers must ensure that there is uniformity of discipline,
as per the organizations’ laid down principles and procedures. Discipline should only be
undertaken in cases where good reason exists, and sufficient evidence is available. The discipline
should measure up to the offense and must follow the procedure, some of which would typically
include informal/formal warnings and disciplinary action. HR Managers must ensure that rules
and regulations governing the organization are updated and available to all the staff and that they
are understood, to avoid misinterpretation. HR Managers should not succumb to pressure from
senior managers who may wish to influence their decision; instead, they should be impartial and
firm.

Bribery

This refers to arrangements with employees, vendors, or consulting agents leading to personal
gain. HR Managers must always ensure that employees view them in the light that they deserve.
HR Managers should be at the forefront in ensuring that no such personal gain is received by
either themselves or employees.

Ensuring a Safe Working Environment

Human Resource Managers have a duty to ensure the working environment is safe for all
employees at all times. The recent fires in some firms in Industrial Area are a good example of
how the HR department in such a situation was negligent on workers safety.

3. Why it is important for HR management to transform from administrative to

strategic contributor?

Human resource management can be approached in two fundamentally different ways. Human
resources employees can fill purely administrative roles, simply facilitating the paperwork
involved for tasks such as hiring new employees and handling workers' compensation insurance.
Or HR employees can become strategic contributors to company success. Transforming the HR
function into a strategic contributor can take one's workforce strategies to the next level,
increasing the value of the human capital to accrue distinct competitive advantages.

Competitive Advantages
Strategic human resource management is all about creating a competitive advantage through a
company's workforce. Employing dedicated, experienced, motivated and well-trained employees
can increase efficiency and productivity in operations, as well as enhance product quality and the
customer experience.

Executive Succession

Strategic HR managers work with company owners to spot potential successors early, grooming
them through years of experience, advancement and mentorship to be ready to take the reins of
the company when the owner passes away or decides to retire. Strategic succession planning can
keep a company heading in the right direction after a major leadership change.

Labor Cost-Efficiency

Administrative HR departments dispense pay raises almost as a matter of course, using arbitrary
metrics such as the number of years an employee has been with the company to determine
compensation. A strategic HR philosophy ensures that the highest compensation is being paid to
employees with the largest contributions to the firm, rather than those who have warmed a chair
in the office longer than others.

Legal Compliance

Purely administrative human resources departments handle legal issues reactively, putting
policies in place to prevent costly incidents from re-occurring. Strategic HR managers
proactively put policies in place to keep their companies on the right side of employment laws,
including workplace discrimination issues and equal employment opportunity laws.

Therefore, it is quite important for HR management to transform their processes because

globalization is a rapidly growing concept throughout the world.