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Question 3

HR policies are essential for corporate governance, ensuring transparency and accountability while protecting against legal liabilities. When policies are not consistently enforced, it can lead to organizational failure, procedural injustice, and erosion of trust among employees. The failure to implement these policies effectively transforms strategic assets into liabilities, undermining organizational success.

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4 views2 pages

Question 3

HR policies are essential for corporate governance, ensuring transparency and accountability while protecting against legal liabilities. When policies are not consistently enforced, it can lead to organizational failure, procedural injustice, and erosion of trust among employees. The failure to implement these policies effectively transforms strategic assets into liabilities, undermining organizational success.

Uploaded by

Duncan Kazonga
Copyright
© All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd

HR POLICIES, GOVERNANCE AND THE COST OF FAILURE

HR policies serve as the operational backbone of corporate governance by translating high level
board directives into enforceable workplace standards (Armstrong and Taylor 2020). These
polices help ensure transparency and accountability. From legal perspective, documented HR
policies are primary defence against vicarious liability (Dessler 2020). Standardization of
procedures for recruitment, wage and hours of work help avoid non-compliance risks.

HR policies codify abstract values into a formal code of conduct (Greenwood 2013). Effective
policies help organization to be ethically committed and work with [Link] policies help
employees act as ethical guardians. This ensures that professional integrity is maintained even
under commercial pressure

The gap where policies exist on paper but are ignored in practice is a primary driver of
organization failure (Kaptein 2011). When policies regarding fairness and promotion are not
applied consistently, it creates procedural injustice. Procedural injustice lead to toxic office
politics. In addition to that, if confidentiality has been breached organization faces a total
collapse of psychological contract. This may lead to departure of top talent.

Failure to implement policies professionally, imply that rules are optional for certain individuals.
This lead to individuals normalising misconduct which erodes trust. Erosion of trust makes it
hard to sustain a high performance culture among employees . This undermine the foundation of
organization success as strategic assets transforms into a liability (Mello 2019).

References

Armstrong, M, and S Taylor. Armstrong's Handbook of Human Resource Management Practice. Kogan
Page Publishers, 2020.

Dessler, G. Human Resource Management. Pearson, 2020.

Greenwood, M. "Ethical Analyses of HRM: A review and Research agenda." Journal of Business Ethics,
2013: 355-366.

Kaptein, M. "Understanding unethical behavior by analysing ethical culture." Journal of Business Ethics,
2011: 601-627.

Mello, A J. Strategic Human Resource Management. Cengage Learning, 2019.

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