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Are there moral limits on how far a prospective employer should delve
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Student Name: Natalie FungStudent Number: 3418091
MGMT1001 s1 2012 – ‘Spot Collection’
Bring to tutorials week beginning 26 March
Topic 4: Strategy & Human Resource Management
Textbook: Answer Question 2 in the ‘Thinking critically about management issues section’ on page
259
Are there moral limits on how far a prospective employer should delve into an applicant's personal
life by means of interviews or tests? Explain. (max. 200 words)
There are moral limits on how deep into an applicant’s personal life should a prospective employer
investigate by conducting interviews or tests.
Selection devices such as application forms, written tests are not sufficient enough to provide a
thorough view on whether the applicant suit the job or not. Therefore interviews and performance-
simulation tests are usually carried out as further assessment tools.
It is legal and moral if the information collected does not invade the applicant’s privacy and
interviews and tests are conducted without any discriminatory elements.
However, it becomes ‘too far’ if the employer collect personal information that is irrelevant to the
job and the applicant’s ability in completing the job or could possibly affect a fair selection under the
basis of Equal Opportunity or anti-discrimination.
For example, it is moral for an employer to ask if the applicant has a history of mental disability, but
it will become immoral if he or she asks if the family has a history of mental disability, as it becomes
discriminative and will potentially gives a false judgement on the applicant’s ability to work.
Another example, it is moral if the employer wants to know the marriage status of an applicant, as it
might affect the availability of work, but it becomes immoral if the employee ask a divorced
applicant the reason of separation, as it is irrelevant to his or her ability to perform a job.
Choose two organisations that you believe possess a “competitive advantage”. Explain where that
competitive advantage comes from and make 1 recommendation for each organisation as to how
they could strengthen their competitive advantage (max. 200 words).
The competitive advantage of Woolworths Ltd is its size. As a large retail chain, Woolworths own
almost half of the market share, and it is able to achieve economies of scale, lower unit cost, through
the size of operation and bargaining power. Woolworths could eliminate its competitors through
continuously lowering the price while maintaining the profit margin, as it could transfer the cost
pressure onto its suppliers. The unbeatable size ensures the ability of the company to compete in
the market. And through strengthening its strategic alliance with Coles, they could eliminate more
competitors, grow even bigger in size and create a market of duopoly.
The competitive advantage of Jetstar is its price range. The low-price flight options Jetstar offers to
its customers result in an exponential growth of revenue generated from the domestic flights. Facing
competition from the new low-cost domestic airlines such as Virgin Australia, Jetstar should
strengthen its competitive advantage through building a strategic network, including code sharing of
planes, in order to further reduce its price.
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