Assignment on Human Resources and Annual operating plans – Role in ethical and legal Decisions

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Human Resources and Annual operating plans – Role in ethical and legal Decisions


Human resources operating plans and their adherence to the right policies and practices make up important aspects will decide the adherence of the organization to the ethical and legal decision making. If the organization does have right strategies and procedures then it is possible to have systematic procedures in place for the organizational functionality. When there is ambiguity or no guidelines there is proximity to chaos and confusion, which can lead to improper practices and with ultimate legal complications, penalties, business and image loss to the organizations. The following part of the discussion is focused on a particular discussion where in a legal case study is made as per the availability of the same in legal cases databases and focus is done on few HR aspects. The following part of the discussion is the case review of the Gucci flagship company unfair and unethical practices in China and legal consequences of the same (Lexis).

Overview of the case and the complaints:

Gucci in china is complained of operating a sweat shop in the country. It is a MNC and is operating in the country with the local labor. As per the recent allegation of one of the employee who resigned from the company and came out, unethical and illegal practices happening in the company are reported. It is vividly indicated that the company is operating without any tolerance of the employee ethics. Overtime working has become very common. There is no adherence and honor being given to the established work practices. Employees are not getting the right remuneration to the work practices they are following there in the company. There is no respect and the treatment is unbearable. It looks like slave market and has does not have any similarity with civilized work environment. These are some of the complaints of the employees who came out from the company. A legal action is sought by these employees in the local civil and labor courts.

? Key points of the case

? There are regulations but not followed.

? The company has not undertaken any review of the practices 

? There is no provision to put before grievances or complaints over the company

? The company is totally failed in the ethical compliances

? Not an isolated case, several employees complained the case

? Labor rules are not followed.


? Involvement of the HR department

If incase the HR department has designed an appropriate annual operational plan with all the features necessary to support the organizational operational framework with appropriate ethical and legal framework of operations, then it is possible for the organization to avert such phenomena in the organization. Further operational plan of the HR department would have the necessary features to monitor and day to day operations of the organization and to ensure that all the operations are there occurring in accordance with the operational strategy. Further the annual HR plan would have been made to endorse the local labor laws and monitoring mechanism. If all these actions are properly performed, the organization would have averted the follow-up of the law suits and international criticism and brand image loss.


? Annual plan and short and long term implications

At the outset there is no such ethical HR Annual plan in the organization. The organizational personnel are not committed to have such a mechanism. Infact they do not have the moralities. The practices are too bad, and there is no moral, ethical and legal values seen observed. The annual plan at the outset would have been implemented to take care of the daily proceedings and further it would have been audited from time to time. The strategy would have averted the short and long term immediate complications to the company. And the company never would have lost the brand image in the international community. Infact it is mandatory for the company to adhere to the federal regulations in this regard. Deviation from adherence will not serve any purpose of the organization and infact if it deviates the compliance the consequences will include financial loss as well. If right AHOP was in place such damage would not have occurred to all stakeholders.

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