Ethics vs Profit Making - PART 1

Hi participants,

Throughtout the last class, I had one ear on the lecture about the bargaining power of either parties engaged in a relationship, the role of market forces and institutional forces, employment models and other issues related to Theme 01 and 02.

But my mind was constantly wandering if I would have done the same had I been an employer and, if I would have differed in my actions, how and under what circumstances. The Organisational Structure and Design sessions are to racy for me to grasp the organisational skeletons that determine the form and flow of a decision making process, but I certainly think that there is one question that would help us if not solve, understand better the decision making behind HR decisions like retrenchment eulogized as a regular Performance Review process, deferred job offers and even regret letters, etc.

The question is:- What would have compelled the managers to take such decisions ? If the flow of a decision is top-down then, aren't we naive enough to think that the decision makers were oblivious to the possible repercussions as discussed in the case?

• I think they certainly would have, but they had very limited choices. May be, the limited number of alternatives was a sap of their own misgivings in the past or could be that the competitive forces were too rude to allow them a better one!
• But, when profit making is one of the primary functions of a company, can it always go by ethics ? It certainly has to go by laws, though ! Vexed by such thoughts, I sometimes wish the Business law had been taught to us.
• And, if each one of us, concentrate for a minute and simulate such a situation, put yourself in the employer's shoes, I am pretty sure that we would first double check if the pay-off are a reconciling positive figure AND then check(I know not how many times) and affirm if the loopholes in the law system has been pinned down.
• So, " Think like a manager, not like a lawyer" is something around which I jump hither and thither, contemplating how would I have avoided a marriage between the two in my oblate skeptic mind.

So, meanwhile I did dig some information relating to Retrenchment Issues, discussed that with some of my friends studying and practicing HR (funny their first line of thinking is how the law books would treat a decision!) and prepared a 2-page write-up(a rough one). In fact, I did carry it to the class, but never got enough space to park my car!

1. It discusses when should a company by law, pay retrenchment compensation,
2. When and under what circumstances can a company retrench an employee,
3. The difference between "Workman" and "non-workman" , since protection against unjustified retrenchment is offered to only workman cadre employees.
4. How IT companies enjoy a free ride in the absence of a specific law pertaining to the sector?,
5. And, certain sections of the ID Act 1947, the definition of "industrial establishments" and can IT services companies be classified as "industrial establishments"

Here is the attachment

Awaiting some responses or comments regarding the issues discussed in the 1st part of this post.

Hope, it does make sense.