Chapter 8 - Case study: Voluntary resignations at Orbolay
Textbook page 193
Answers to case study questions in textbook, page 194
1. Identify and discuss the implications of Joe’s dual roles as employer
representative and employee activist.
When an individual is confronted by divergent role expectations, the result
is role conflict. It exists when an individual finds that compliance with one
role requirement makes it difficult to comply with another role requirement
or when two or more role requirements are mutually exclusive. The issue
of dual loyalty demonstrates an area of role conflict sometimes
experienced by HR managers. Dual loyalty is a term used to describe a
situation where a person has loyalty to two separate interests which
potentially conflict with each other.
Joe Mercer is an HR manager for Orbolay, a large multinational in the
resources industry that is faced with the need to drastically cut its
workforce in order to remain competitive. He has a number of roles that he
fulfils in that job – a member of the HR department, a member of middle
management, employee advocate and member of the HR profession. Off
the job Joe is a member of a cricket club where he has formed a
friendship with Peter Briely, an employee of Orbolay who unbeknown to
him is facing a forced redundancy at the same time he is negotiating a
major financial commitment.
While some of these roles are compatible, Joe is finding that some create
conflicts. In particular, Joe’s superior, the Director of HR, expects Joe and
his HR colleagues to be responsive to the needs and requirements of the
organisation. This includes ensuring that the right people are employed
with the right skills. Moreover, the Director has indicated that it is in Joe’s
career interests to implement her directives. However, doing so seems to
be incongruous with best HR practice, fair and ethical treatment of
employees and the values of honesty, professionalism, collegiality and
friendship.
All HR managers will face role conflict at various times. The critical point is
how the different role expectations, including those imposed by
organisational requirements, affect our decision making and behaviour.
There are a number of responses Joe might make. These include:
deciding in favour of the HR Director’s policies;
withdrawal;
redefining the facts and situation to avoid cognitive and ethical
dissonance;
negotiation;
advocacy;
1
, questioning the relevance, validity and ethicality of the historically-
based ‘no firing’ pledge;
advising senior management, including the HR Director, on the
implementation of reforms in HR activities, particularly those related to
performance management programs and redundancy policies;
referring to Orbolay’s corporate values and any written standards of
ethical business conduct the company might have; and
referring to the HR professional code of conduct or an ethics/HR
consultant for advice.
The problem of dual roles and loyalties also raises questions about the
consideration of moral responsibility. For example,
what do we really owe to others (some suggest that corporations are
not deserving of our loyalty and that loyalty is the domain of
relationships while others argue that loyalty to ‘the hand that feeds us’
is at least a prima facie duty);
what is our ultimate responsibility;
what is the limit that we owe to people within our group; and
should we stop to help those in need, particularly if we have the
capability and are their last resort?
Students might also consider that it is much easier to suggest forceful
actions to solve an ethical problem when one is an observer or student
than when one is a manager with many personal obligations including a
mortgage on the family home, university fees and a career that might be in
jeopardy. Consideration could also be given to how one identifies a
company’s values and ethical standards before one goes to work for a
particular company.
Sections 8.2.1 (The problem of dual loyalties), 8.2.2 (HR professional
codes of conduct) and 8.2.3 (An integrity-oriented approach to strategic
business partnership) provide a theoretical context for further discussion
of this question.
2. Analyse the ethical issues and dilemmas faced by the HR
managers at Orbolay from utilitarian, Kantian, rights, and justice
perspectives.
Section 8.3 of the chapter presents the argument that there are first order
principles such as beneficience, consistency, respect for autonomous
persons and justice or liberty that are essential for a good society and that
from those principles we can rationally determine second order rules, that
is, our ethical beliefs, values and standards about right and wrong
behaviour. Section 8.3 also summarises four major ethical systems based
upon a first principle or superordinate value: utilitarianism, Kant’s
universalism or duty, justice and rights.
2
Textbook page 193
Answers to case study questions in textbook, page 194
1. Identify and discuss the implications of Joe’s dual roles as employer
representative and employee activist.
When an individual is confronted by divergent role expectations, the result
is role conflict. It exists when an individual finds that compliance with one
role requirement makes it difficult to comply with another role requirement
or when two or more role requirements are mutually exclusive. The issue
of dual loyalty demonstrates an area of role conflict sometimes
experienced by HR managers. Dual loyalty is a term used to describe a
situation where a person has loyalty to two separate interests which
potentially conflict with each other.
Joe Mercer is an HR manager for Orbolay, a large multinational in the
resources industry that is faced with the need to drastically cut its
workforce in order to remain competitive. He has a number of roles that he
fulfils in that job – a member of the HR department, a member of middle
management, employee advocate and member of the HR profession. Off
the job Joe is a member of a cricket club where he has formed a
friendship with Peter Briely, an employee of Orbolay who unbeknown to
him is facing a forced redundancy at the same time he is negotiating a
major financial commitment.
While some of these roles are compatible, Joe is finding that some create
conflicts. In particular, Joe’s superior, the Director of HR, expects Joe and
his HR colleagues to be responsive to the needs and requirements of the
organisation. This includes ensuring that the right people are employed
with the right skills. Moreover, the Director has indicated that it is in Joe’s
career interests to implement her directives. However, doing so seems to
be incongruous with best HR practice, fair and ethical treatment of
employees and the values of honesty, professionalism, collegiality and
friendship.
All HR managers will face role conflict at various times. The critical point is
how the different role expectations, including those imposed by
organisational requirements, affect our decision making and behaviour.
There are a number of responses Joe might make. These include:
deciding in favour of the HR Director’s policies;
withdrawal;
redefining the facts and situation to avoid cognitive and ethical
dissonance;
negotiation;
advocacy;
1
, questioning the relevance, validity and ethicality of the historically-
based ‘no firing’ pledge;
advising senior management, including the HR Director, on the
implementation of reforms in HR activities, particularly those related to
performance management programs and redundancy policies;
referring to Orbolay’s corporate values and any written standards of
ethical business conduct the company might have; and
referring to the HR professional code of conduct or an ethics/HR
consultant for advice.
The problem of dual roles and loyalties also raises questions about the
consideration of moral responsibility. For example,
what do we really owe to others (some suggest that corporations are
not deserving of our loyalty and that loyalty is the domain of
relationships while others argue that loyalty to ‘the hand that feeds us’
is at least a prima facie duty);
what is our ultimate responsibility;
what is the limit that we owe to people within our group; and
should we stop to help those in need, particularly if we have the
capability and are their last resort?
Students might also consider that it is much easier to suggest forceful
actions to solve an ethical problem when one is an observer or student
than when one is a manager with many personal obligations including a
mortgage on the family home, university fees and a career that might be in
jeopardy. Consideration could also be given to how one identifies a
company’s values and ethical standards before one goes to work for a
particular company.
Sections 8.2.1 (The problem of dual loyalties), 8.2.2 (HR professional
codes of conduct) and 8.2.3 (An integrity-oriented approach to strategic
business partnership) provide a theoretical context for further discussion
of this question.
2. Analyse the ethical issues and dilemmas faced by the HR
managers at Orbolay from utilitarian, Kantian, rights, and justice
perspectives.
Section 8.3 of the chapter presents the argument that there are first order
principles such as beneficience, consistency, respect for autonomous
persons and justice or liberty that are essential for a good society and that
from those principles we can rationally determine second order rules, that
is, our ethical beliefs, values and standards about right and wrong
behaviour. Section 8.3 also summarises four major ethical systems based
upon a first principle or superordinate value: utilitarianism, Kant’s
universalism or duty, justice and rights.
2
