1. INTRODUCTION TO BUSINESS
Subarjo Joyosumarto SE, MA, Ph.D
1 September 2016
Meeting 13:
OVERVIEW OF MEETING 12
CONDUCTING BUSINESS ETHICALLY AND RESPONSIBILITY (chapter 3)

2. OVERVIEW OF MEETING 12

3. HUMAN RESOURCES MANAGEMENT (HRM)
HRM is the set of organizational activities directed at attracting, developing, and maintaining an effective workforce
The effectiveness of HR function has a substantial impact on a firm’s bottom-line performance
Consequently, the chief HR executive is a vice president directly accountable to the CEO

4. THE HR PLANNING PROCESS
Conduct Job Analysis
Forecast Demand for Labor
Forecast Internal supply of Labor
Forecast External supply of Labor
Develop Plan To Match Demand With Supply

5. RECRUITING HR
Recruiting is the process of attracting qualified person to apply for the jobs that are open
Internal recruiting, considering present employees as candidate for opening
External recruiting, involves attracting persons outside the organization to apply for jobs

6. SELECTING HR
Once the recruiting process has attracted a pool of applications, the next step is to select someone to hire.
The process of determining the predictive value of information is called validation:
Application forms: fill out an application
Test: of ability, skill, aptitude, or knowledge relevant to a particular job
Interviews: having a conversation
Other techniques: physical exams, polygraph tests, drug tests

7. DEVELOPING THE HR On-the-job training:
Training, sometime informal, conducted while an employee is at work
Off-the-job training:
Training conducted in a controlled environment away from the work site
Vestibule training:
Off-the-job training conducted in a simulated environment

8. COMPENSATION AND BENEFITS
COMPENSATION SYSTEM
is a set of reward that organization provide to individuals in return for their willingness to perform various jobs and tasks within the organization
WAGES AND SALARIES
Wages are compensation in the form of money paid for time worked, are paid for time worked
Salaries are compensation in the form of money paid for discharging the responsibilities of a job, are usually expressed as an amount paid per month or per year

9. COMPENSATION AND BENEFITS
INCENTIVE PROGRAMS
Are special compensations designed to motivate high performance
Individual Incentives
Bonus: individual performance incentive in the form of special payment made over and above the employee’s salary
Merit salary system: individual incentive linking compensation to performance in non sales jobs
Company Wide Incentives
Profit sharing plan: incentive plan for distributing to employees when company profits rise above a certain levels
Gainsharing plan: incentive plans that rewards group for productivity improvement

10. COMPENSATION AND BENEFITS
BENEFIT PROGRAMS
Are compensations other than wages and salaries
Worker’s compensation insurance: legally required insurance for compensating worker injured on the job
Retirement Plans: benefit that is available for workers when they retire
Cafeteria benefits plan: benefit plan such as health-care

11. DEALING WITH ORGANIZED LABOR
Labor union: Group of individuals working together to achieve shared job related goals, such as a higher pay, shorter working hours, more job security, greater benefits, or better working conditions Labor relation: Process of dealing with employees who are presented by a union

12. CONDUCTING BUSINESS ETHICALLY AND RESPONSIBILITY

13. ETHICS IN THE WORKPLACE
ETHICS are beliefs about what is right and what is wrong, what is good and what is bad, in action that effect others
ETHICAL BEHAVIOR, behavior conforming to generally accepted social norms concerning beneficial and harmful action
UNETHICAL BEHAVIOR, behavior that does not conform to generally accepted social norms concerning beneficial and harmful actions

14. ETHICS IN THE WORKPLACE
BUSINESS ETHICS, ethical or unethical behavior by employees of commercial organizations
MANAGERIAL ETHICS, are the standards of behavior that guide individual managers in their work
*Wages and working conditions are areas for controversy.
Consider a manager who pays a worker less then he deserves because the managers knows that the employee can not afford to quit.
The behavior is unethical

15. COMPANY PRACTICES AND BUSINESS ETHICS
Many firms have taken additional seeps to encourage ethical behavior in the workplace
They set up codes of conduct and develop clear ethical positions on how the firm and its employees will conduct business
The most effective step that a company can take is to demonstrate top management support of ethical standard
This policy contribute to a corporate culture that value ethical standard and announces that the firm is as concerned with good citizenship as with profit

16. Organizational Objectives CORE PRINCIPLES AND ORGANIZATION VALUES
Strategies and Practices
Organizational Objectives
CORE PRINCIPLES AND ORGANIZATION VALUES
Unchanging
Changed infrequently
Revised frequently

17. SOCIAL RESPONSIBILITY
Social responsibility is related to overall way in which a business attempts to balance its commitments to relevant groups and individuals in the social environment

18. 4 AREAS OF SOCIAL RESPONSIBILITY
Responsibility toward the environment
Air pollution
Water pollution
Land pollution
Responsibility toward customers
Consumer rights of safety, information, to be heard, to choose, to be educated, courteous services
Responsibility toward its employees
Legal and social commitments
Ethical commitments
Responsibility toward its investors
Improper Financial Management
Insider trading
Misrepresentation of Finances

19. MANAGING SOCIAL RESPONSIBILITY PROGRAMS
Must start at the top, and be considered as a factor of strategic planning
Committee of managers must develop a plan detailing the level of management support
One executive must be put in charge of the firms agenda
Must conduct social audits, systematic of its success in using funds earmarked for its social

20. QUESTION FOR DISCUSSION
Supposed a manager cheats on an expense account. Into which of the following areas of managerial ethics does this behavior fall? a) organizational behavior toward other economic agents; b) employee behavior toward the organization; c) organizational toward the employee; d) individual behavior toward other economic agents; e) behavior of other economic agents toward the organization.
TRUE/FALSE every business is legally required to develop and publish a corporate code of ethics.
TRUE/FALSE thought closely related, ethics and social responsibility do not mean the same thing.
The stakeholder model of social responsibility generally includes which of the following? a) customers; b) employees; c) suppliers; d) investors; e) all of these.
Which of the following is not an area of social responsibility? a) responsibility toward the board of directors; b) responsibility toward the environment; c) responsibility toward the customer; d) responsibility toward employees; e) responsibility toward investors.
Distinguish social responsibility from ethics, identify organization stakeholders, and characterize social consciousness today
Show how the concept of social responsibility applies both to environmental issues and to a firm’s relationships with customers, employees, and investors
Identify four general approach to social responsibility and describe the four steps that a firm must take no implement a social responsibility program

21. Thank You