5 Primary Stakeholders: Employees
• Employees represent the human resources available to a company dedicated to achieving
its goals.
Hiring and Terminating of Employees
Hiring, Recruitment, and Selection
• Hiring process is one of the critical ways that companies relate to employees as
stakeholders.
• Five step job screening process:
1. Set legal ground rules
2. Seek behavioral information
Terminating Employees
• Termination: involuntary separation of company from employee.
• Employment-at-will means that an employer may terminate its employee for a good, bad,
or no reason at all.
• Proponents of employment-at-will provide a number of reasons to justify its use:
o First, employment-at-will is seen as being central to the free market economy where
both employers and employees have the freedom to choose.
• Despite the support, employment-at-will has an equal share of critics:
o Employees should be treated with respect and dignity and be provided reasons for
their termination.
• Just-cause dismissal: employers must provide reasonable notice of termination of an
employee.
o Employee misconduct can include “habitual neglect of duty, incompetence, willful
disobedience, insubordination, dishonesty or intoxication”
• Just-cause requirements can be satisfied with two options:
o The employer gives notice to employees for a reasonable amount of time and allows
them to work during that time.
Diversity and Affirmative Action
• Diversity refers to hiring workers who are different in race, color or religion compared to
the traditional Caucasian male workforce.
• Benefits of diversity:
o Diversity enriches the workplace whereby employees of different perspectives can
• Diversity is also very beneficial for multinationals.
o As most companies enter foreign markets and engage in trade with such markets, a
• Uniform guidelines on employee selection procedures:
o Companies need to publish an affirmative action policy to show their commitment.
• Criticisms toward affirmative action program:
o Because specific races or gender are given preference, some critics see affirmative
action as violating the principle of equality.
• Equal opportunity uniform guidelines
1. Have a diversity advisory board and diversity officer.
2. Establish diversity networks for mentoring.
• Suggestions when implementing global affirmative action programs:
o The local requirements should dictate the appropriate form of affirmative action
programs.
Sexual Harassment
• Sexual harassment is unwelcome sexual advances, requests for sexual favors, and other
verbal or physical conduct of a sexual nature.
• Two forms of sexual harassment:
women feel uncomfortable and abused in the workplace.
• Sexual harassment can be destructive:
o Sexual harassment can have job-related consequences.
• Steps to reduce the incidence of sexual harassment:
o Determine the extent to which the problem currently exists.
o Employee training and education.
Whistle-Blowing
• Whistle-blowing refers to the activities involved when current or former employees
• Is whistle-blowing a beneficial activity?
o Whistle-blowing can benefit society as whistle-blowing can prevent faulty or
• Despite these advantages, many see whistle-blowing as an unethical behavior on the part
of the employee.
o A company expects that its employees will be loyal and behave in ways that will
protect the employing company’s interests.
Strategic role of Human Resource Management Enforcing Ethics
• The human resource management (HRM) department is the critical link between a
company and its employees.
o The HRM department is in charge of ensuring the welfare of employees while also
ensuring that the rights of these employees are being respected.
• Human resources management functions:
o Recruitment and selection
• Performance appraisal relates to how employees’ productivity and other performance
components are assessed.