Human Resource Management Assignment for MBA students

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MASTER OF BUSINESS ADMINISTRATION
INTERNATIONAL PROGRAM
ASSIGNMENT
HUMAN RESOURCE MANAGEMENT
Submitted to: Dr. Pham Quoc Hung
Submitted by: Huynh Thi My Dieu
ID No.: CGSVN00014998
Class: MBAOUM0313 – K08A
Ho Chi Minh City, March 2014
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Acknowledgements
A completed report would not be done without any assistance. First of all, I would
like to express my endless thanks to lecturer Dr. Pham Quoc Hung. His kindly
support and continuous advices went through the process of completion of my report.
Without his motivation and instructions, the report could not be done effectively.
My special thanks approve to my parents for their endless love, care and have mos t
assistances and motivation me. I also would like to explain my thanks to siblings,
brothers and sister for their support and care me all the time.
As last, my deeply thanks come to all colleagues. Their kindly help, care, motivation
gave me strength and lift me up all the trouble for the rest of my life.
With kindest regards,
Huynh Thi My Dieu
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Table of Contents
Question 1: What is a coporate wellness model and why is it used? 1
1.1. What is coporate wellness model? 1
1.2. Why do we use coporate wellness model? 4
Question 2: What outcomes can occur when employers begin implementing restrictions
on personal behaviour, especially as they occur outside the workplace 7
2.1. Before employment 8

2.2. After employment 9
Question 3: How can employees be advantages or disadvantages through employer
practices 10
Question 4: What are the ethical consideration in implementing such a
restrictiive organization policy 16
References 19
List of Tables:
Table 2.1: Outcomes can occur when company start doing restriction policy 6
Table 3.1: Advantages and disadvantages for employees when company start implementing
restriction policy 12
Table 4.1: Ethical consideration on employers practices 16
List of Figure:
Figure 1.1: Example of saving healthcare cost after wellness program implementation 6
1
Question 1: What is a corporate wellness model and why is it used?
1.1. What is a corporate wellness model?
There are many studies defined about wellness. Wellness was described as the active
process through which the individual becomes aware of all aspects of the self and makes
choices toward a more healthy existence through balance and integration across multiple life
dimensions (Corbin, Lindsey, Welk, & Corbin, 2002; Hermon & Hazler, 1999; Hettler, 1980;
Lent, 2004; Ryff & Keyes, 1995; Witmer & Sweeney, 1992). Wellness may be an indicator of
ones self concept or sense of psychological harmony as successively and iteratively one attains
satisfaction of needs (Maslow, 1999) from the basic physiological to those at a higher level of
self-actualisation.
This wellness model was adapted from Hettler’s six dimensional models and incorporates
the notion of balance and flow (Goss, Boyd & Cuddihy). The
permeable borders symbolise the interconnectedness of
dimensions with each other and of the whole with external social
and environmental influences. However, the model does not
clearly show the roles of culture, environment and resources and

the parts they play in the lives of all individuals. Therefore, in
order to further develop the construct of Wellness, the nautilus shell symbol was developed to
reflect these elements.
UCR (Univwrsity of California, Riverside) proved seven dementions of Wellness as the
following organce pie. Accordingly, wellness is much more than merely physical health,
exercise or nutrition. It is the full integration of states of physical, mental, and spiritual well-
being. Each of these seven dimensions act and interact in a way that contributes to our own
quality of life.
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- Social Wellness is the ability to relate to and connect with
other people in our world. Our ability to establish and
maintain positive relationships with family, friends and
co-workers contributes to our Social Wellness.
- Emotional Wellness is the ability to understand ourselves
and cope with the challenges life can bring. The ability to
acknowledge and share feelings of anger, fear, sadness or stress; hope, love, joy and
happiness in a productive manner contributes to our Emotional Wellness.
- Spiritual Wellness is the ability to establish peace and harmony in our lives. The ability
to develop congruency between values and actions and to realize a common purpose that
binds creation together contributes to our Spiritual Wellness.
- Environmental Wellness is the ability to recognize our own responsibility for the quality
of the air, the water and the land that surrounds us. The ability to make a positive impact
on the quality of our environment is it our homes, our communities or our planet
contributes to our Environmental Wellness.
- Occupational Wellness is the ability to get personal fulfillment from our jobs or our
chosen career fields while still maintaining balance in our lives. Our desire to contribute
in our careers to make a positive impact on the organizations we work in and to society
as a whole leads to Occupational Wellness.
- Intellectual Wellness is the ability to open our minds to new ideas and experiences that
can be applied to personal decisions, group interaction and community betterment. The

desire to learn new concepts, improve skills and seek challenges in pursuit of lifelong
learning contributes to our Intellectual Wellness.
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- Social Wellness is the ability to relate to and connect with
other people in our world. Our ability to establish and
maintain positive relationships with family, friends and
co-workers contributes to our Social Wellness.
- Emotional Wellness is the ability to understand ourselves
and cope with the challenges life can bring. The ability to
acknowledge and share feelings of anger, fear, sadness or stress; hope, love, joy and
happiness in a productive manner contributes to our Emotional Wellness.
- Spiritual Wellness is the ability to establish peace and harmony in our lives. The ability
to develop congruency between values and actions and to realize a common purpose that
binds creation together contributes to our Spiritual Wellness.
- Environmental Wellness is the ability to recognize our own responsibility for the quality
of the air, the water and the land that surrounds us. The ability to make a positive impact
on the quality of our environment is it our homes, our communities or our planet
contributes to our Environmental Wellness.
- Occupational Wellness is the ability to get personal fulfillment from our jobs or our
chosen career fields while still maintaining balance in our lives. Our desire to contribute
in our careers to make a positive impact on the organizations we work in and to society
as a whole leads to Occupational Wellness.
- Intellectual Wellness is the ability to open our minds to new ideas and experiences that
can be applied to personal decisions, group interaction and community betterment. The
desire to learn new concepts, improve skills and seek challenges in pursuit of lifelong
learning contributes to our Intellectual Wellness.
2
- Social Wellness is the ability to relate to and connect with
other people in our world. Our ability to establish and
maintain positive relationships with family, friends and

co-workers contributes to our Social Wellness.
- Emotional Wellness is the ability to understand ourselves
and cope with the challenges life can bring. The ability to
acknowledge and share feelings of anger, fear, sadness or stress; hope, love, joy and
happiness in a productive manner contributes to our Emotional Wellness.
- Spiritual Wellness is the ability to establish peace and harmony in our lives. The ability
to develop congruency between values and actions and to realize a common purpose that
binds creation together contributes to our Spiritual Wellness.
- Environmental Wellness is the ability to recognize our own responsibility for the quality
of the air, the water and the land that surrounds us. The ability to make a positive impact
on the quality of our environment is it our homes, our communities or our planet
contributes to our Environmental Wellness.
- Occupational Wellness is the ability to get personal fulfillment from our jobs or our
chosen career fields while still maintaining balance in our lives. Our desire to contribute
in our careers to make a positive impact on the organizations we work in and to society
as a whole leads to Occupational Wellness.
- Intellectual Wellness is the ability to open our minds to new ideas and experiences that
can be applied to personal decisions, group interaction and community betterment. The
desire to learn new concepts, improve skills and seek challenges in pursuit of lifelong
learning contributes to our Intellectual Wellness.
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- Physical Wellness is the ability to maintain a healthy quality of life that allows us to get
through our daily activities without undue fatigue or physical stress. The ability to
recognize that our behaviors have a significant impact on our wellness and adopting
healthful habits (routine check ups, a balanced diet, exercise, etc.) while avoiding
destructive habits (tobacco, drugs, alcohol, etc.) will lead to optimal Physical Wellness.
Corporate wellness programs are designed to nurture wellness in workers, regardless of the
work environment. Corporate Wellness programs could be found in factories, corporate
offices, large corporations, and small corporations alike. Company did not only want to reduce
healthcare expenses they were compensating for employees, but many forward thinking

companies wanted to make the work space a more inviting and relaxing environment for their
employees as well. An employee wellness program also called “worksite wellness program”, is
a program that promotes and supports the health, safety, and well-being of its employees.
 Types of Corporate Wellness Program:
There are different levels of Corporate Wellness programs. One level is offering basic
services and another one is referrals online. The Internet permits access to major sources of
information, but many people are confused about what information is reliable and where to
find specific information resources.
Online Corporate Wellness programs can be set up to allow employees access to certain
types of pre-screened information that is reliable and easy to find. In addition to internet based
tools, many Corporate Wellness programs can modify resources and data to each employee.
Treating each employee and their concerns sensitively and in a timely manner, can help them
see the importance of their health issues as well.
Just because an individual has diabetes does not mean they have all the most up-to-date
information on how to best live with diabetes. Oftentimes, diet and exercise alone can control
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diabetes and eliminate the need for medication or more invasive treatments. Corporate
Wellness programs are most successful when the business and workers are fully engaged in the
program with good health in mind. A successful workplace isn’t about the bottom line alone. It
also means creating a safe and healthy workplace for each individual.
A wellness program may include some or all of the following components:
- Wellness newsletter
- Health risk assessments
- Health screenings
- Workshops on wellness issues
- Walking groups
- Health fairs
- Healthy potlucks and healthy snacks for meetings and breaks
- Physical activity breaks
- Fitness classes

- Smoking cessation classes
- Incentive such as water bottles, insulated lunch bags, tote bags, stress balls, pedometers,
and cookbooks.
1.2. Why do we use Corporate Wellness Model?
- Corporate Wellness is among the most vital investments that a company can make.
Businesses that start Corporate Wellness programs aren’t only investing in the physical
wellness, safety, and mental health of their employees, but are also taking preventive
measures by creating a healthier environment.
- By starting a Corporate Wellness program, corporations are able to improve the overall
productivity and are able to save money on health care expenses. Often, corporations are
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concerned about the actual wellness ROI (return on investment) but the fact is that by
encouraging healthier lifestyles, corporations are creating healthier employees who will
work more diligently and miss fewer days of work due to illness.
- It is imperative that companies not only provide Corporate Wellness solutions for their
staff members, but that they also maintain ongoing knowledge about safety and wellness
techniques. Businesses need to keep up to date on health statistics and stay aware of ways
to encourage specific wellness issues like use of tobacco cessation or weight loss.
- It’s often helpful for a company to consult with physicians who participate in medical
CME so that they’re up to date with how they can assist their employees in maintaining
wellness.
- Also, when a corporation maintains an on-site fitness club, it’s necessary that the
corporation employs person who have received the proper training and certification,
which makes up the fitness club management, for assist workers with exercising safely.
- Although businesses may establish a comprehensive Corporate Wellness program with
many options, an incentive Corporate Wellness program is often necessary for encourage
employees to actually participate in the programs. Providing incentives for employees,
In June 27
th
, 2012 - Scottsdale, AZ - In honor of National Employee Wellness

Month, a survey was conducted by Workforce Management magazine and Virgin
HealthMiles to assess the perspectives of both employers and employees regarding
health & wellness programs. Organizations are increasingly using employee health
and wellness programs as a key strategy to create healthier, less costly, and more
productive workforces. According to the survey, more employers are offering health
and wellness programs, and top priorities for doing so include reducing healthcare
costs (81%), creating a culture of health (70%), and improving workforce productivity
(40%). [Source: Woldatwork.org, 2014].
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such as a free lunch or gift cards, may be simple enough rewards to encourage employees
to participate in Corporate Wellness.
Figure 1.1: Example of saving healthcare cost after wellness program implementation.
Back to the case of the Cleveland Clinic, they applied a program of wellness is the concern
for employee health by the “smoking cessation”. To complete the mission of the company is
that “as a leading healthcare organization dedicated to fighting disease and advocating healthy
living, our policies and procedures reflect that commitment”. The policy is that “applicants
who test positive for tobacco products will not be considered for employment and will be
referred to tobaco cessation resources paid for by Cleveland Clinic. After 90 days, applicants
successful in quiting will be encouraged to reapply. However, existing personnel are not
covered by this policy and The Clinic continues to offer existing personnel extensive support
and guidance to quit using tobacco”.
[Source: , 2014]
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The purpose of the wellness model is: to reduce the demand and subsequent cost of
healthcare and to promte a healthier and more productive work-force. The concern for
employee health is appreciated. But there are some risen questions are that How can one
implement such a policy and be fair? And if it’s illegal in so many states, is a restrictive policy
on personal behaviour ethical? In America, 21% of citizents adults smoke and could not work
at the Cleveland clinic. There are also the individual differnces such as young people that
smoke rarely while having a few beers with friends versus reformed older people that smoked

for decades but have stopped.
Question 2: What outcomes can occur when employers begin implementing restrictions
on personal behaviors, especially as they occur outside the workplace?
One of the most difficult issues in the workplace is concern about when employers start
applying new policies related to personal behaviour. Often people are hesitant to say anything.
However, the best approach is to address the concerned issues early, before the problem
impacts the safety of the employees or of others. A common perception of a problem is when
an individual cannot live without his or her personal life, is often under the influence, uses
daily, or is irresponsible and cannot hold down a job.
When employers start doing such policies restriction related to personal behaviour, there
may some aspects of this issue as listed in the following summarized table:
Restriction policy
implemetation
Employees concern purposes
Objective aims of employers
Before employment
- Good for employees, they know
what to do and do not, just follow
the rules.
- Company can hire quality human
source.
- May loose a group of good
people to work with.
- Less trustworthy
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After employment
- Create an unfair working
environment, employees may have
the feeling that they are being not
respected.

- Neutral reaction, not cooperation.
- If there is good policy and
implementing well, employees get
benefits.
- Company is going to replace
employees; such restrictions are a
relatively new development.
- Due to financial reasons, costly.
- Lead to the results of less
effective in work or employees
performance.
- Cause illegal or un-lawfull.
Table 2.1: Outcomes can occur when company start doing restriction policy.
2.1. Before employment:
This means that such restriction policies have been noticed before or as soon as candidates
apply into any position of the company; or as after being hired. Since then, candidates have
known about company’s policies in advance. In this case, the resuts may come out with some
points which are considerred at two aspects:
 For employees concern purpose:
- Being noticed in advance is good for employees, they have known about the policies and
regulations of the company. Evenwhen there may have some strict rules/policies but once
candidates wish to joint into the company or being hired, they just follow the rules and
obey to the policies as required.
- On the other side, company can hire quality staff. It means that if company informed
such restriction policies in advance, those meet their requirements and be able to obey
the policies should be qualify for being hired. Therefore, company at from the beinging
time of searching for qualify staff, they surely can get those.
 Due to objective aims of employers:
- At this point of view, company may loose a group of good people to work with. Due to
some may meet requirments of the company such as good qualification, working

experiences or specific skills but do not meet such restriction policies, then they may not
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be interested in apply into the company. For example, people have their bad habit like
smoking and one of the requirements of company said that: “You are not allowing to
smoking during working time”, then surely, he/she will skip this position.
- Less trustworthy: Even company can hire good people to work for but they do not work
for long time and may move up soon due to this restriction policies are disturbing and
make them feel uncomfortable.
2.2. After employment:
This means that employers start implementing such restriction policies after a working
period. Since then, we also considers the outcome based on two criteria:
 For employees concern purpose:
- This may create an unfair working environment; employees may have the feeling that
they are not being respected. For instant, from the case of Cleveland Clinic, policy
ammounce that: “Applicants who test positive for tobacco products will not be
considered for employment … But existing personnel are not covered by this policy”.
- Reflect a neutral or un-cooporation reaction from employees. Some may do not agaisnt
but also do not follow this policy, then finally there will lead to the case that employees
working with no motivation, and do not pay most efford to complete the job well. For
example, some staff currenltly working for Cleveland Clinic, when employers have
imposed restrictions on employee smoking, some have gone so far as to terminate
smokers or ban them from employment, some still enjoy tobacco with a group of friends
standing outside workplace, etc. The environtment at workplace where people have their
own reaction on company policy but there is not cooperation between those staff will
bring an uneffective results of outcome.
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- However, if there is a good policy and implementing well, employers have good
communication to translate to each staff, employees may absorb and follow up. In this
case, employees will get benefits.
 Objective aim of employers:

- Company is going to replace employees or restructure, so the restriction policies are a
relatively new development policy, they must start release some policies to suit with their
current situation. The outcome of this case is that company may loose some staff who
step away by themselves or do not meet new implementing policies of the company.
- Secondly, when company is
facing with financial issue, they must
reduce cost to maintain business
operation, such restriction policies
will be applied. For example,
allowed working time in routine is
from 8am – 5pm. After this duration,
staff do not allow to stay at the
office. Any case of leaving office late after 5pm should be noticed in advance or report
with reasonnable reason. Othewise, such breach case will be deducted directly from
monthly salary. Since then, employees must leave office ontime, and in some case, they
cannot finish work on time or remaining work have to skip. This will lead to the results
of less effective in work or employees performance.
In the long run, there may lead to the situation of un-coropation between employers and
employees, cause illegal or un-lawfull. From the case of Cleveland Clinic, for example:
Weyco fired four employees in 2005 that refused to subject themselves to a test to prove that
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- However, if there is a good policy and implementing well, employers have good
communication to translate to each staff, employees may absorb and follow up. In this
case, employees will get benefits.
 Objective aim of employers:
- Company is going to replace employees or restructure, so the restriction policies are a
relatively new development policy, they must start release some policies to suit with their
current situation. The outcome of this case is that company may loose some staff who
step away by themselves or do not meet new implementing policies of the company.
- Secondly, when company is

facing with financial issue, they must
reduce cost to maintain business
operation, such restriction policies
will be applied. For example,
allowed working time in routine is
from 8am – 5pm. After this duration,
staff do not allow to stay at the
office. Any case of leaving office late after 5pm should be noticed in advance or report
with reasonnable reason. Othewise, such breach case will be deducted directly from
monthly salary. Since then, employees must leave office ontime, and in some case, they
cannot finish work on time or remaining work have to skip. This will lead to the results
of less effective in work or employees performance.
In the long run, there may lead to the situation of un-coropation between employers and
employees, cause illegal or un-lawfull. From the case of Cleveland Clinic, for example:
Weyco fired four employees in 2005 that refused to subject themselves to a test to prove that
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- However, if there is a good policy and implementing well, employers have good
communication to translate to each staff, employees may absorb and follow up. In this
case, employees will get benefits.
 Objective aim of employers:
- Company is going to replace employees or restructure, so the restriction policies are a
relatively new development policy, they must start release some policies to suit with their
current situation. The outcome of this case is that company may loose some staff who
step away by themselves or do not meet new implementing policies of the company.
- Secondly, when company is
facing with financial issue, they must
reduce cost to maintain business
operation, such restriction policies
will be applied. For example,
allowed working time in routine is

from 8am – 5pm. After this duration,
staff do not allow to stay at the
office. Any case of leaving office late after 5pm should be noticed in advance or report
with reasonnable reason. Othewise, such breach case will be deducted directly from
monthly salary. Since then, employees must leave office ontime, and in some case, they
cannot finish work on time or remaining work have to skip. This will lead to the results
of less effective in work or employees performance.
In the long run, there may lead to the situation of un-coropation between employers and
employees, cause illegal or un-lawfull. From the case of Cleveland Clinic, for example:
Weyco fired four employees in 2005 that refused to subject themselves to a test to prove that
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they had quit smoking. From a legal standpoint, the question is not whether smoking is a good
or bad thing, but whether an employer should have the right to fire people for off-duty
activities that have no impact on the employee’s job. Around half the states have decided that
employers do not have the right to dismiss employees for smoking off the job. Many
employers have begun charging employees different amounts on the employee contribution
toward health insurance depending on whether the employee uses tobacco products (or have
other unhealthy lifestyles, such as being overweight). If they are charging differential rates, the
matter apparently has not been decided in court yet. Are differential rates potentially illegal?
That is, does a clear determination await future court decisions?
Such restrictions (and the regulations) are a relatively new development. Second, contrary to
the propaganda espoused by corporations, most people are reluctant to initiate lawsuits (even
against a prior employer based on the fear that their current employer will deem them an
undesirable, litigation-happy employee). Third, there are a number of cases where the evidence
suggests that companies - including those of substantial size – have been aware of the law, but
for financial reasons have made a decision to proceed with a decision notwithstanding the law.
Finally, even if employees seek and obtain advice that a particular regulation affecting current
employees who smoke violates the law and regulations, those employees are often reluctant to
file a lawsuit against their current employer (for the obvious reason that they fear retaliation,
which can be difficult, uncertain, expensive and time-consuming to prove and the remedy, if

any, will occur years later and is unlikely to truly restore the employee to the position he would
have been in but for the retaliation).
Behaviour within the workplace can contribute positively to creating a productive and
harmonious environment in which staff can be inspired and achieve their full potential.
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However, when behaviour is inappropriate or dysfunctional it can have serious consequences
on productivity, job satisfaction and on the physical and psychological well being of staff.
Question 3: How can employees be advantaged or disadvantaged through employer
practices?
As mentioned in previous question, when companies start implementing such restriction
policies, the outcome of doing this would consider at two aspects: employees concern purpose
and objective aims of employers. In term of employees, such restriction policies implementing
will bring to them the advantages and disadvantages as the following:
Advantages
Disadvantages
- Develop themselves with new change.
- Healthier.
- Better employee morale.
- Prevent diseases.
- Benefit on health care, feel care and valued.
- Enhance knowledge, improve behavior positive,
create awareness, develop skills, and provide
social interaction through classes, training
program.
- Lower absenteeism
- Higher employee productivity
- Break old habit, be boring, must have will.
- Be required behavior changes are new,
challenging, sustain difficultly.
- Must drive long term engagement.

- Lack of support.
- Discrimination.
Table 3.1: Advantages and disadvantages for employees when company start
implementing restriction policy.
Based on which policy will be implemented by company, in general, employees will take
advantages from this action, for example, IBM staffs have engaged to the policies applied that
“exercising, eating right, not smoking, and filling out a health risk questionnaire”. Workplace
wellness programs help staff get healthier, even if that simply means learning how to reduce
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stress and muscle strain when employees are on the job. Depending on what the company
offers, it might also help to lose weight, lower cholesterol and blood pressure, sleep better, and
save money on prescriptions. Sometimes, all we need is a little motivation to get the ball
rolling and a workplace wellness plan might be it.
A research from 12 companies with seriously impressive corporate wellness program by
James Harwood (2013) show that: “Corporate wellness program create safe work
environments, improve employees health and implement strategies that reduce medical costs
and increase moral and efficiency”.
Another great benefit of wellness programs is a built sense of companionship with co-
workers. Employees have a chance to experience activities with colleagues that aren’t related
to work, whether in a walking club or sports team, by having lunch together, or by going to the
gym. Social support is a very important part of weight loss and getting fit. By interacting with
[Source: www.totalhrmanagement.com, 2014]
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co-workers, they have others to give them encouragement when need it, as well as to hold them
accountable to their goals. Additionally, they will be motivated by seeing other’s positive
results. By using a wellness program, they will become an important part of the team.
As an employee, we should take advantage of a workplace implementing policies. Each
person has some sort of health risk to varying degrees, whether it’s unhealthy eating, lack of
exercise or sleep, drinking, smoking, or even something genetic. When using a program for
following, this can make positive change happen among staff. Not only will we be more able to

complete our job responsibilities, but we will have more energy and dynamism to give to
family and friends when we back home.
On the other hand, we cannot deny the disadvantages cause for employees when facing with
new implemented policies. In term of discrimination, many companies tie participations in a
program to reduced insurance premiums. However, there are employees who have pre-existing
health conditions that do not allow them to participate. Not letting them have a premium
reduction because of something that is not their fault or they have no control over may be seen
as discriminatory. Furthermore, employees’ habits are hard to change. Those who are health
conscious are already exercising and watching what they eat. Companies aren’t going to
change their habits with a restriction program. Those who need to change their habits may
avoid signing up because they are not truly motivated to make the changes necessary to be
healthy. In that case, unless employers do a good job with promoting and recruiting for their
program, they will have a great wellness program that no one uses. The basic obstacle for the
success of any given program is the constant lack of motivation. Only when the individual is
committed to fix his lifestyle can any such program be truly effective.
Another cons points when company doing such restriction policies are time constraints,
lack of support and privacy issues of employees. Many single parents who employees with
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large families and small children or those with a heavy workload may not have the time to
actively participate in such programs. If employee wellness is a true company priority, then
changes may need to be made in work flow and procedures in order to allow for participation
by employees. Maintaining an employee wellness program requires planning and commitment.
You may not have the resources to keep this program up and running. It is long term success
that gets you the cost and employee retention benefits. If you will not or cannot keep the
program running, then it may not be worth doing. Employees have real concerns about how
their private information will be handled. Many wellness programs require some kind of initial
assessment, and this assessment can reveal many health issues that the employee may wish to
keep private. If an employee has an embarrassing disease or one that could open him up to
discrimination, he may not participate for fear of disclosure.
Such restriction programs implemtning may have their advantages and challenges, as well.

For one, the basic success of any program is dependent on the enthusiasm of the participants.
Most individuals tend to not participate in such programs with the necessary motivation or
energy. It is often difficult for the individuals to take the time out for such initiatives. In
wellness programs for employees, the prime issue is the ability of the company to create an
atmosphere of active participation, while committing the required resources to sustain the
program. The set up investment is often significant and will take time before being actually
realized in the form of bottom-line savings. Many employees have privacy concerns, as well,
given that many of these programs entail a complete health assessment. Often times, the
employees who would benefit the most also lack the motivation to join.
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Question 4: What are the ethical considerations in implementing such a restrictive
organizational policy?
Mostly speaking, ethics is a branch of philosophy which seeks to address issues related to
concepts of right and wrong. It is therefore closely linked to morality in that it is about what
morally ought to be the case rather than how things necessarily are. It is about how we ought to
act towards one another and covers numerous decisions we make in everyday life, as well as
decisions with implications for life or death (Mattiasson and Hemberg, 1998). So that, when
company starts doing restriction policies on employees, they may reffer to the ecthical issue
and should be consider carefully before implementing. There are two sides of the ethical
consideration which are negative and positive:
Negative
Positive
- The corporate wellness model could be
the invasion of privacy.
- The employee feeling “to be forced” to
do this program.
- The company use the penalties instead of
incentives to make more pressures in
employees.
- Employers should keep secret on the

privacy of employees
- Earning potential.
- Employees productivities
- Employees moral
- Bring benefits for both related parties and
even for environment surrouding us.
Table 4.1: Ethical consideration on employers practice.
In details, general ethical consideration when employers is seeking implement restriction
policy on employees consist of:
- Identification of clear planning goals,
- Commitment to transparency,
- Public engagement and involvement,
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- Maximizing of preparedness,
- Sound guideliens based on the best available scientific eveidence,
- Global involvement and coopreation,
- Balancing of individual liberty and community interest,
- Diversity in ethical decision making,
- Fair process (procedural justice)
Ethical concerns about incentivizing wellness programs have arisen due to controversy over
employer discrimination. For example, Scotts Miracle-Gro fired an employee who
tested positive for nicotine and was subsequently faced with a lawsuit. To prevent
discrimination, legal guidelines have been established through the Health Insurance Portability
and Accountability Act (HIPAA) and the Americans with Disabilities Act (ADA) that must be
considered when implementing an incentive program. HIPAA provisions set criteria for
rewards provided to group health plan members who achieve a health standard. These rewards
are permitted only if the value is limited to 20% of the cost of the member’s coverage, if the
program is designed to promote health or prevent disease, if the member has the chance to
qualify for the reward at least annually, if alternative standards are set for those members with
medical conditions that impede their ability to meet the standard, and if these alternative

standards are disclosed in program materials.
However, HIPAA regulations do permit rewards that are provided solely on the basis of
participation, pursuing health related goals or program completion. “Benign discrimination” is
permitted; this is discrimination in favor of those with a health condition. For example, those
with a chronic condition may be rewarded for participating in a wellness or disease
management program. Health plans may also require the completion of a health-risk appraisal
18
(HRA) for benefits eligibility, provided that the information acquired is not used to restrict
eligibility or benefits or determine premiums.
The ADA requires that health insurance eligibility, benefits and costs can only be based on a
health factor if there is actuarial evidence to show that the factor increases the risk of incurring
medical expenses. Additionally, the ADA regulations allow the use of incentives for wellness
programs if participation is voluntary- and if information obtained is not used to discriminate
against an employee, is kept separate from personnel files, and is accessible only to wellness-
program personnel.
In conclusion, it is essential that people who make decisions affecting the lives, in particular
the freedom, for decisions to be ethical, that they are aware of and able to reflect on ethical
issues.
19
References
1. Elizabeth & Russ, 2014. Incentives for Health and Wellness Programs: Strategy, Evidence
and Best practice. Retrieved from
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3. Laura Bramble (2013). The disadvantages of employees Wellness programs. Retrived from
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from />5. Sparkpeople.com (2013). Advantages of Workplace Wellness Program. Retrieved from
/>6. Totalhrmanagement.com (2014). 12 Companies with Seriously Impressive Corporate
Wellness Programs. Retrieved from />with-seriously-impressive-corporate-wellness-programs.
7. University of California, Riverside - UCR (2012). Seven Dimensions of Wellness.

Retrieved from />8. Wellness Proposals (2013). Corporate Wellness/ What is Corporate Wellness? Retrieved
from />9. Worldatwork.org, 2014. National Employee Wellness Month and Measuring Program
Success. Retrieved from
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