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Tuesday, August 13, 2024

Moral challenge of Success: Treating Employees as Resources

 MARLON D. MACALMA

Divine Word College of Laoag, Ilocos Norte, Philippines

Abstract

 

This reflection paper realizes the ethical issues of treating employees as mere resources and assets in organizations, emphasizing the significance of balancing and harmonizing business goals with respect for individual dignity. It discusses how Human Capital Theory views employees as valuable assets and the risks of seeing them only as tools for productivity. The paper draws on real-world examples like Google’s “20% Time” and IBM’s development programs to illustrate ethical practices that support employee growth. It also examines and analyzes how companies like Ayala Corporation and Jollibee Foods Corporation use ethical leadership and Corporate Social Responsibility (CSR) to ensure fair and objective treatment of employees. The paper concludes that recognizing employees as individuals, rather than just resources, leads to a healthier work environment and greater organizational success.

 

Keywords Ethics, Human Resources, Human Capital Theory, Kantian Ethics, Motivation, Corporate Social Responsibility, Ethical Leadership

 

Introduction

 

This reflection paper determines the ethical issues of treating employees as resources or assets in an organization. It focuses on finding the right balance between achieving business goals and respecting each person's dignity. Human Capital Theory views employees as valuable assets, proposing that enhancing their skills and knowledge benefits both the individuals and the organization (Becker, 1964). However, this view can sometimes lead to seeing people as just tools, which raises ethical concerns. Kantian ethics argues that people should be valued for who they are, not just for what they can do for the company (Kant, 1785). This idea is important to prevent treating employees in a way that exploits or degrades them. Motivation theories by Maslow and Herzberg emphasize the need to meet employees' higher needs for personal growth and recognition to keep them engaged and satisfied (Maslow, 1943; Herzberg, Mausner, & Snyderman, 1959). Moreover, ethical leadership and corporate social responsibility (CSR) emphasize the importance of treating employees fairly and with respect, supporting their well-being (Brown, Treviño, & Harrison, 2005; Freeman, 1984). Combining these views helps organizations balance ethical practices with achieving their goals, creating a workplace that values employees as individuals while striving for success.

 

Human Capital Theory and Ethical Considerations

 

Human Capital Theory, introduced by economist Becker (1964), suggests that investing in employees’ education and development can make them more productive, benefiting both the employees and the company. A real-world example of this is Google’s “20% Time” policy. This policy allows employees to spend 20% of their workweek on projects they are passionate about, even if they are not directly related to their job. This investment in employees' personal interests and professional growth not only encourages innovation but also respects their individual goals and well-being. It shows an ethical approach by supporting employees' development, which in turn helps the company succeed.

On the other hand, the ethical challenges arise when the focus changes from valuing employees as individuals to seeing them only as assets. For example, if a company pushes for maximum productivity and financial gain without considering employees' needs, it might treat them as mere tools to achieve business goals. This can lead to serious ethical issues. A company that demands long hours and high output without addressing job satisfaction or work-life balance might create a stressful environment where employees feel overworked and unappreciated. This approach risks exploiting workers and failing to support their overall well-being.

 

Consider a company that prioritizes high performance but cuts back on employee support programs to save costs. Employees might face stress from increased workloads, reduced job satisfaction, and limited personal development opportunities. Such a company might see a short-term improvement in productivity but could suffer from higher turnover rates, lower employee morale, and a damaged reputation in the end. This scenario highlights the importance of balancing performance goals with ethical treatment, ensuring that employees are valued and supported as individuals, not just as means to achieve business outcomes.

Balancing Performance with Ethical Treatment

Balancing performance goals with ethical treatment of employees can certainly be challenging. Human Capital Theory suggests that investing in employees—through training, development, and support—should ideally benefit both the organization and the employees. However, when this investment is solely aimed at maximizing productivity without regard for employees' well-being, it can lead to significant ethical issues.

 

For example, consider a company that prioritizes digging out the maximum output from its employees. Management might push staff to work longer hours, cut breaks, or increase workloads without considering their health or work-life balance. Although this might yield short-term productivity gains, it often results in burnout, decreased job satisfaction, and higher turnover. Such an approach disregards employees' overall well-being and raises ethical concerns.

 

In contrast, IBM exemplifies a more balanced and ethical application of Human Capital Theory. Through initiatives like the “Think Academy” and other development programs, IBM demonstrates a commitment to both employees' professional growth and personal well-being. The Think Academy offers continuous learning opportunities that help employees advance their skills and careers, reflecting IBM’s belief that supporting their development benefits both the company and ultimately the employees.

 

Moreover, IBM fosters a positive work environment by providing resources for mental and physical well-being, promoting a culture of inclusion, and encouraging work-life balance. This focus on employee satisfaction ensures that the company’s practices align with ethical standards. Furthermore, IBM’s approach is centered on long-term benefits rather than immediate productivity. By investing in a satisfied and well-supported workforce, IBM reduces turnover and retains valuable skills within the organization. IBM’s approach illustrates that it is possible to achieve high performance while maintaining ethical treatment of employees. By investing in employees' growth and well-being, IBM not only enhances productivity but also upholds a commitment to ethical practices, demonstrating that performance goals can be balanced with a genuine concern for employees' holistic needs.

Ethical Leadership and Corporate Social Responsibility

 

In the Philippines, ethical leadership and Corporate Social Responsibility (CSR) are crucial for ensuring that employees are treated with dignity and fairness. Ethical leaders in Filipino businesses prioritize transparency, fairness, and the overall well-being of their employees, setting an example that echoes throughout the organization. For instance, Filipino companies like Ayala Corporation have demonstrated a commitment to ethical practices and social responsibility, integrating these values into their business strategies to support fair labor practices and community development.

 

CSR initiatives in the Philippines focus on enhancing working conditions, ensuring fair compensation, and offering opportunities for employee growth. An example is the approach taken by companies like Jollibee Foods Corporation, which is known for its CSR efforts that include providing safe working conditions, fair wages, and career development programs. Jollibee’s initiatives reflect a commitment to treating employees as valuable contributors to the company’s success rather than mere resources.

 

The alignment with stakeholder theory is misleading in these practices. Stakeholder theory, introduced by R. Edward Freeman in 1984, suggests that organizations should account for the interests of all stakeholders, including employees, in their decision-making processes. This theory advocates for a broader view beyond solely maximizing shareholder value, emphasizing the importance of considering the well-being of all those affected by business operations.

 

For instance, the approach of companies like Globe Telecom includes providing comprehensive benefits, educational opportunities, and fair wages for employees. This demonstrates a dedication to valuing employees as crucial stakeholders, fostering a positive work environment, and contributing to long-term success.

 

Ethical leadership and CSR are vital in promoting respect and fairness towards employees in the Philippine business landscape. Leaders who champion transparency and fairness set a positive example, while CSR programs that focus on employee welfare reflect a commitment to recognizing employees as essential stakeholders. This approach aligns with stakeholder theory, underscoring the importance of considering the interests of all stakeholders in organizational decision-making.

 

 

 

Effect on the Human Person

 

When employees are regarded merely as resources, they face significant risks of exploitation, misuse, and manipulation. This often leads to overworking, underpayment, and undervaluation, as seen in companies where unrealistic productivity targets are imposed without adequate breaks or fair compensation. In Philippine companies like Jollibee Foods Corporation, where workers might be pressured to meet high demands without proper support, employees can experience severe stress and burnout, manifesting in physical symptoms like fatigue and headaches, and mental health issues such as anxiety and depression.

 

On the other hand, treating employees as valued individuals fosters a healthier work environment. For instance, a Philippine company like BDO Unibank prioritizes its employees’ well-being by offering flexible work arrangements, extensive benefits, and a supportive atmosphere. This approach makes employees feel appreciated and motivated. BDO Unibank’s focus on wellness programs and professional development emphasizes its commitment to valuing employees as key to its success. Such a positive environment enhances creativity, productivity, and loyalty, as employees are more engaged and contribute effectively when they feel respected.

 

Likewise, a company like San Miguel Corporation places significant emphasis on employee well-being through comprehensive support programs that address mental health, work-life balance, and career growth. This commitment to employee welfare not only boosts job satisfaction but also fosters a sense of community within the organization. Employees are encouraged to share ideas and take ownership of their roles, which leads to innovative solutions and a more engaged workforce.

 

Treating employees as mere resources can lead to exploitation and health issues while valuing them as individuals creates a positive work environment that enhances job satisfaction and overall well-being. When employees feel respected and valued, they are more motivated and contribute more effectively, resulting in better outcomes for both the employees and the organization.

 

Conclusion

The ethical implications of viewing employees as resources or assets are reflective and complex. While recognizing employees as valuable assets emphasizes the importance of investing in their development, it is equally critical to uphold their inherent dignity and worth.

 

Viewing employees solely as resources can lead to a focus on efficiency and productivity at the expense of individual well-being. This perspective might result in treating employees simply as tools to achieve business goals, overlooking their needs and rights. For example, in a factory setting, pushing workers to meet strict deadlines without proper rest or safety measures can cause high turnover, injuries, and decreased job satisfaction, reflecting a troubling disregard for employees' intrinsic value.

 

On the other hand, ethical theories and organizational behavior research support treating employees as "ends in themselves" rather than mere means to an end. This approach involves valuing people’s unique contributions and ensuring their well-being. Companies like Ben & Jerry’s and Microsoft exemplify this perspective. Ben & Jerry’s is noted for its fair wages, comprehensive benefits, and commitment to personal growth, fostering a positive work environment where employees feel valued. Similarly, Microsoft promotes a balanced work-life environment through flexible hours, mental health resources, and a supportive culture, demonstrating respect for employees' individual contributions and enhancing overall engagement.

 

Research highlights that organizations recognizing employees as valuable individuals enhance job satisfaction, the performance, and create a more ethical and positive work environment. Employees who feel respected and valued are more likely to be committed and innovative, benefiting both themselves and the organization.

 

In conclusion, while treating employees as resources can highlight the need for development investments, it is essential to balance this view with respect for their dignity and intrinsic worth. Ethical theories and organizational behavior research support the notion that recognizing employees as valuable individuals leads to a more positive, ethical work environment, ultimately benefiting both employees and the organization.

References

Becker, G. S. (1964). Human Capital: A Theoretical and Empirical Analysis, with Special Reference to Education.

Brown, M. E., Treviño, L. K., & Harrison, D. A. (2005). Ethical leadership: A social learning perspective for construct development and testing. Organizational Behavior and Human Decision Processes, 97(2), 117-134.

Freeman, R. E. (1984). Strategic Management: A Stakeholder Approach.

Herzberg, F., Mausner, B., & Snyderman, B. B. (1959). The Motivation to Work.

Kant, I. (1785). Groundwork of the Metaphysics of Morals.

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Maslow, A. H. (1943). A theory of human motivation. Psychological Review, 50(4), 370-396.

 

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