Case Study HRM

Download as docx, pdf, or txt
Download as docx, pdf, or txt
You are on page 1of 2

Members:

Limheya, Melvin Lloyd R.


Manalang, Raebellyn Joy D.
Mendigoren, Marie Tonie
Salvador, Jomilyne S.
Semillano, Celine S.

CASELET#1 – THINKING ETHICALLY


The ethics of offshoring

1. When a company moves jobs to another country, who benefits? Who


loses?
Companies move jobs to another country through offshoring with the intention
of lowering their cost. When the employees are moved to a less developed
country, they earn lower than what they are suppose to if they are in their own
country. Though the employees that will be sent to the other country will lose at
least they will experience new things and it could also be their training to be
better on their field. Some of the advantages the company can get from
offshoring are research and development, cheaper production cost, increase in
profit margins, cheaper product for consumers and capital can redirect to
domestic economy. So employees are the ones who lose and the company is the
one who benefits.

2. Given the mix of winner and loser, do you think offshoring is ethical?
Why or why not?
In some areas, offshoring is ethical in the sense that if the company would
provide benefits and compensation for the employees sent outside their country.
It would also be nice if the employees have at least time to make their decision
about the matter. But in our opinion, it is unethical because employees are forced
to leave their own country to earn less in a foreign country. This is surely not fair
to their part. Employees will have to adjust to their new environment and working
place. They will work far away from their families and loved ones. Lastly, their
wages will decrease if they will be sent in a less developed country.
3. Imagine you are an HR manager at a company that is planning to begin
offshoring its production or customer service operation. How could you
help the company proceed as ethically as possible?
If I'm the HR manager I will help the company’s offshoring to be ethical as I
would only remove those employees that are only efficient not those who are
effective in the operations of the company and I suggest that the company should
wait for the end of contract. I would also consider briefing them. I would discuss
about what the employees could expect when they are offshored, their benefits
and possible loss. With this the employees would have time to prepare
themselves if ever they are the ones chosen. Also proper training will lessen the
employee’s cultural shock or an introduction on what may happen in the future.
But I would still ask them if it is okay for them to be offshored as ethical as
possible and I'll make sure to whoever will be affected by offshoring right terms,
conditions, proper guidance and support of the company will be given to them.
It is noticeable that most of these are for the good of the employees. The
reason for offshoring usually leads to employees' loss, so why not make the best
out of it. If the ever the employee loses at least they have compensations and
they are properly briefed about what to expect. This I would say in my opinion is
the most ethical way possible in offshoring.

You might also like