When is Fraud OK? Ask HR

By Michelle Malay Carter on September 17, 2008 

I’m picking on HR this week to make a point about the general lack of systems thinking within organizations, most particularly in the area of “people systems”.

Executive Ignorance is Costly
As I’ve stated before, I think the tarnished reputation of?Human Resources?is a result of a lack of collective consciousness on the part of executive leadership?on how to design and staff strategic HR roles.? Many HR professionals are victims of the broader systems within which they operate as well.

What Values Does the System Telegraph
One of the things I like to do is look at specific operational processes, step back and ask, what values does this telegraph?? A while back, I did this with Jack Welch’s practice of hacking the bottom ranked 10% of GE employees,?and it is one of my most visited posts.

Tying Back to?My Last?Post
In my last post, Performance Evaluations, Rating Scales and Fraud,?I discussed a manager who had a performance review returned to him from HR.? He was told to lower the ratings he gave his employee because, you can’t rate every line item a 5 out of 5.

What Values Does this Telegraph?
We in HR expect you to act with integrity and honesty when it suits the company.? When acting with integrity is judged?(rightly or wrongly) ?to adversely affect the organization, we will expect you to commit fraud.?

If you are in doubt about when you should act with integrity or when you are expected to commit organizationally-approved acts of fraud, please see your HR representative.

I’m OK.? You’re OK.? Let’s fix the system.?
Relatively speaking, the HR Discipline is still in its infancy, and it will become more complex and sophisticated with time.?

I look forward to the day when HR has made the shift from policing and enforcing dysfunctional systems to questioning and ensuring?the comprehensive integrity and efficacy of an organization’s people systems.

Your thoughts?

Filed Under Accountability, Corporate Values, Employee Engagement, Executive Leadership, Managerial Leadership, Requisite Organization, Strategy, Talent Management

Comments

One Response to “When is Fraud OK? Ask HR”

  1. Talent Management - What HR Should Have Done | Mission Minded Management on September 23rd, 2008 6:38 pm

    […] In other words, he was expected to commit an organizationally-sanctioned form of fraud.? If you’re confused about when to commit fraud, ask HR. […]