Ethics provide a pivotal role in the decision making process. Is it the right thing to do? This question must be answered in every case. Some decisions, it is easy to answer this question and other might not have an immediate answer. For those decision that the answer is ‘no’ it is not the right thing to do should give decision-makers solid ground for deciding to terminate a decision. Ethics provides a check to the process and gives justification for making a decision.
At ITT Industries there are many decision that are made with considerations given to the ethical implications. ITT Industries hires new employees at a salary range that is competitive to the market. This policy in itself is not the problem, but the process of performance review and the distribution of available funds in the budget for the next year. The process can be fair as long as the manger performing the process is ethical in their decision.
The existing ground rules are satisfactory regarding salary levels for the following reasons. The company does have employee reviews, which determines the level of the salary increase. The employee receives a performance review that is completed by the employee’s manager. Then the manager receives the
The process as it stands today in my opinion has an ethical dilemma for the managers. Does one employee deserve a larger increase? Do I give one employee a larger percentage to bring to employees’ closer in salaries? If so, is this punishing the employee with the higher salary? These questions need to be answered to the satisfaction of the manager. Another issue that must be looked at is the ethical standards of the manager standards as the employee? The annual increase process at ITT is flawed from the point that there is no standard held to managers for the division of funds.
The ethical decision mangers make when rewarding employees need to be reviewed by parties outside the particular department involved. Managers should ask themselves if it’s the right thing to do. The decision should be based on valid points. Some managers have the tendency to reward their employees on how well the like them regardless of performance. These mangers should step back and look at the decision from the employee’s point of view. Is the decision fair from the employee’s point of view?
The ethical questions that arise from the decision making process of annual increases should give warning to managers that this might not be the proper pro