Share:


Business ethics in human resources management practices and its impact on the organizational performance

Abstract

There is a growing interest in BEs at present, because it has become an important necessity in all business functions in organizations, particularly HRM. Human resources function deals with one of the most important resources in the company to improve performance and gain competitive advantage. Therefore, HRM practices should be applied based on ethical principles such as fairness, transparency and equal opportunities. This study aimed to determine the extent of commitment to BEs within the HRM activities in the industrial companies listed on Amman Stock Exchange and its impact on the performance of those companies. The results of the study showed that there is a high degree of commitment to BEs in all HRM practices. The results of the study showed that there is a high degree of commitment to BEs in all HRM practices in terms of recruitment, selection, training, compensation, and appraisal employees’ performance. The results also showed that there is an impact of practicing BEs in all activities of HRM except compensation on the OP. At the end of the study, the researcher developed a set of recommendations that he considered they are necessary to achieve a higher level of commitment to BEs in order to improve OP.

Keyword : business ethics, human resources management, organizational performance, industrial companies, human resources management practices, Jordan

How to Cite
Al-Tarawneh, K. I. (2020). Business ethics in human resources management practices and its impact on the organizational performance. Business: Theory and Practice, 21(1), 402-411. https://doi.org/10.3846/btp.2020.11344
Published in Issue
Jun 8, 2020
Abstract Views
3295
PDF Downloads
3215
Creative Commons License

This work is licensed under a Creative Commons Attribution 4.0 International License.

References

Al-Amoudi, A. (2015). Business ethics and its importance in promoting social responsibility in SMEs (Unpublished Master Thesis). KasdiMerbah University, Ouargla, Algeria.

Abu Odeh, M. (2017). Business ethics and it’s relation with job satisfaction (Unpublished Master Thesis). The Islamic University of Gaza, Gaza, Palestine.

Alfaris, S. (2010). The role of knowledge management in raising the efficiency of the organizations’ performance: Applied study on the manufacturing companies in Damascus. Damascus University. Journal for Economic Sciences, 26(1), 20–31.

AlGhalbi, T., & Alameri, S. (2010). Social responsibility and business ethics, business and society (1st ed.). Dar Wa’el for Publishing, Amman, Jordan.

Al Sakarneh, B. (2009). Business ethics. Dar Al-Massira for publishing and distribution, Amman, Jordan.

Alzinati, A. (2014). The role of business ethics in enhancing the social responsibility Palestinian governmental hospitals (Unpublished Master thesis). Management and Politics Academy for Graduate Studies, Gaza, Palestine.

Arulrajah, A. (2015). Contribution of human resource management in creating and sustaining ethical climate in the organizations. Sri Lankan Journal of Human Resource Management, 5(1). https://doi.org/10.4038/sljhrm.v5i1.5626

Attiany, M., & Abu Salma, A. (2014). The impact of ethical human resource applications on employee satisfaction: empirical study in the Jordanian cellular communications companies. Dirasat Journal, University of Jordan, 41(2), 388–401.

ASE. (2020). www.ase.com.jo

Attiany, M., Al-hawajreh, K., & Abu-Hussain, A. (2016). Social responsibility and business ethics in the Context of operation function and its influence on business performance: an empirical study in Industrial companies. Dirasat Journals, University of Jordan, 43(1). https://doi.org/10.12816/0028455

Berenbeim, R. E. (2010). Utilizing HR and ethics and compliance collaboration to promote an ethical culture. Employment Relations Today, Spring, 17–26. https://doi.org/10.1002/ert.20281

Chen, L. F. (2013). Denis Collins: essentials of business ethics – creating an organization of high integrity and superior performance. Journal of Business Ethics,113, 557–559. https://doi.org/10.1007/s10551-013-1664-8

Dessler, G. (2015). Human resource management (14th ed.). Saffron House, London, UK.

Gama, N., McKenna, S., & Peticca-Harris, A. (2012). Ethics and HRM: theoretical and conceptual analysis: an alternative approach to ethical HRM through the discourse and lived experiences of HR professionals. Journal of Business Ethics, 111, 97–108. https://doi.org/10.1007/s10551-012-1479-z

Jawad, Sh. (2011). Organizational behaviour in business organizations (1st ed.). Dar-Alhamed for publishing and distribution, Amman, Jordan.

Kaplan, R., & Norton, D. (2004).The balanced scare card. Harvard Business Review, 70(1), 71–79.

Loraibi, A. (2018). The role of human resource management functions in establishing business ethics (Unpublished PhD Thesis). University of Mohamed Khider Biskra, Algeria.

Mathenge, D. (2011). Ethical considerations in human resource management in Kenya: Theory and practice. Public Policy and Administration Research, 1(4), 8–20.

Mihailović, B., Cvijanović, D., & Simonović, Z. (2015). Role of business ethics in management of human resources. Economy 61(1), 85–96. https://doi.org/10.5937/ekonomika1501085M

Nejem, A. N. (2006). Management ethics and business responsibility in business organizations (1st ed.). Al-wrrak for Publishing and Distribution, Amman, Jordan.

Pallant, J. (2011). SPSS survival manual: A step by step guide to data analysis using the SPSS program (4th ed.). Allen & Unwin, Berkshire.

Pimenta, M. (2015). Ethics in human resource management: a study on ethical perceptions of HRM practices (Unpublished Master Thesis). ISCTE Business School, Lispon, Portugal.

Sekaran, D. (2006). Research methods for business: a skill building approach (4th ed.). Willy, New Delhi.

Shawish, M. (2005). Human resource management (1st ed.). Dar Al-Shorok for Publishing, Amman, Jordan.

Tabachnick, B. G., & Fidell, L. S. (2007). Using multivariate statistics (5th ed.). Allyn and Bacon.

Vazquez, P. (2018). Family business ethics: at the crossroads of business ethics and family business. Journal Business Ethics, 150, 691–709. https://doi.org/10.1007/s10551-016-3171-1

Wendell, F. (2007). Human resource management (international edition). Houghton Mifflin, Boston, USA.

Wiley, C. (2000). Ethical standards for human resource management professionals: a comparative analysis of five major codes. Journal of Business Ethics, 25, 93–114. https://doi.org/10.1023/A:1006230214847