What is meant by bumping in business organization? How the process of bumping leads to ethical dilemma in administration? Explain (200 Words)
Refer - Financial Express
Enrich the answer from other sources, if the question demands
IAS Parliament 3 years
KEY POINTS
· Bumping is a practice employed by many companies to reserve talent pool during downsizing, wherein a senior-level employee whose position has been selected for removal is offered the option of accepting an alternative position of lesser seniority.
· Redundancy can set in due to various reasons, such as commercial, employee morale, HR policy, etc.
· Bumping is a point to be considered under corporate governance of what principles should employers follow while identifying the selection pool for redundant employees.
· Companies often warp their own ethical climate by pushing too much change from the top, too quickly and too frequently.
· Bumping results in a hurried process to implement staff reduction targets, dispose of big businesses in major markets, and lead mergers and acquisitions. Such actions create inherent conflicts of interest.
· When assessing if an organisation is being fair or reasonable in deciding on a selection pool of redundant employees, it is worth fixing a panel to decide parameters to term employees ‘redundant’.
· A survey conducted by the non-profit Ethics & Compliance Initiative, the National Business Ethics Survey, has found that the pressure employees may experience to compromise their organisation’s ethics standards.
· Every employee in an organisation is exposed to the risk of facing an ethical dilemma at some point in time, and some ethical decisions can be more challenging than others.
