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Chapter Twenty-Eight – Promoting Safety
1. What messages should a company’s safety policy convey?
The policy should make it clear that safe work practices are expected of all employees at
2. Explain why promoting safety by example is so important.
Its credibility with employees will be determined by the example set by management,
3. What are the employer’s obligations regarding rules and regulations?
Employers must have safety rules that ensure a safe and healthy workplace.
4. Explain the concept of negligence as it relates to a company’s safety.
The law tends to view employers who do not meet these three criteria as being
5. What is the signi,cance of objectivity and consistency when enforcing safety rules?
Objectivity and consistency are critical when enforcing rules. Objectivity means that
6. Why is employee participation/involvement so critical in the promotion of safety?
They usually know better than anyone where hazards exist. In addition, they are the
7. If your task was to establish a safety committee, whom would you ask to serve on it?
The most eective committees are those that are composed of a broad cross-section
8. List three bene,ts companies gain from asking employees to sign a declaration of safety.
By their signature employees make a personal commitment.
9. What are the steps for ensuring that incentives actually promote safety?
De,ne objectives.
Develop speci,c criteria.
10. What problems can be caused by poorly designed incentives?
Employee taxes
11. What are the characteristics of eective teams?
Eective teams share several common characteristics: supportive environment, team
12. Explain the concept of persuasive communication.
© 2015 Pearson Education, Inc.
2 Gitman/Zutter • Principles of Managerial Finance, Fourteenth Edition
Use this approach when trying to get workers to buy into a concept and want to
Chapter Twenty-Nine – Environmental Safety and ISO 14000
1. BrieDy describe the progress made in cleaning up the environment between 1970 and the
present.
Carbon monoxide emissions
Volatile organic compounds
2. Describe the OSHA-EPA memorandum of understanding signed in 1990.
The two agencies agreed to conduct joint inspections, refer to each other any possible
3. What are the major goals of the Clean Air Act?
4. BrieDy explain the following titles of the Clean Air Act: Title I, Title II, Title III.
Title I: Urban Air Quality - Establishes ,ve classes for noncompliance with ambient
Title II: Mobile Sources - Increases the emission standards for automobiles in two
Title III: Hazardous Air Pollutants - Requires EPA to use maximum control technologies
5. Why is more research into the economics of a clean environment important?
Each time a state or federal agency gets involved in an environmental issue, the question of
6. Distinguish between the following types of environments: natural and induced; controlled and
arti,cial.
The natural environment is that which is not man-made. Induced environments are
those that have been aected in some way by human action.
8. List ,ve of the most common environmental hazards.
High humidity conditions
Low relative humidity
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9. What are the factors that most aect indoor environmental quality?
Heating, air conditioning, and ventilation systems
Air ,ltration
10. Explain the term sick-building syndrome.
11. Summarize brieDy the requirements of OSHA’s Hazardous Waste Standard.
Develop a safety and health program to control hazards and provide for emergency
response.
Conduct a preliminary site evaluation to identify potential hazards and select
appropriate employee protection strategies.
Implement a site control program to prevent contamination of employees.
12. What are the goals of hazardous materials regulations in general?
Encourage companies to minimize the amount and toxicity of hazardous substances
that are used.
13. De,ne the term hazardous waste reduction.
14. List and explain three hazardous waste reduction strategies.
Better Use of Technology - By purchasing a mechanical cleaning system to replace its
Better Materials Selection - Printed circuit boards are often cleaned with solvents that
Reclamation - One photo-processing company solved the problem of the hazardous
15. What are the steps involved in organizing a waste reduction program?
Gain a full commitment from the executive level of management.
16. List the minimum contents of a hazardous waste reduction plan and explain how you would go
about developing a comprehensive plan.
Statement of purpose
Goals with timetables
Strategies for accomplishing each goal
4 Gitman/Zutter • Principles of Managerial Finance, Fourteenth Edition
17. De,ne the term waste reduction audit.
A waste reduction audit is a procedure for identifying and assessing waste reduction
18. What are the most important steps in a waste reduction audit?
Target processes
Analyze processes
19. What are the EPA’s top environmental priorities for the future?
Habitat alteration and destruction
Species extinction
Loss of biological diversity
20. List four trends for the future regarding environmental protection.
Pollution prevention will get more attention than after-the-fact cleanup.
Intra-agency cooperation will increase.
21. What is an environmental management system?
EMS is the component of an organization with primary responsibility for leading,
22. What factors are behind the competitive advantage that can result from implementation of an
EMS?
Minimization of funds siphoned o into nonproductive activities such as litigation and
crisis management
23. List ,ve potential bene,ts of an EMS.
Ease of trade
Improved compliance with regulations
Credibility
Reduction in liability/risk
Chapter Thirty – TSM: Safety Management in a Quality Management Setting
1. De,ne QM.
Chapter 1 The Role of Managerial Finance 5
QM is an approach to doing business that maximizes the competitiveness of an
2. What are the critical characteristics of QM?
Customer focus
Obsession with quality
Scienti,c approach
3. How does QM relate to safety?
4. De,ne the term total safety management.
A performance and process oriented approach to safety and health management that
gives organizations a sustainable competitive advantage in the global marketplace by
5. List and brieDy describe the fundamental elements of TSM.
Strategically based
Performance and process oriented
Dependent on executive-level commitment
6. What is the rationale for TSM?
The correlation between work environment and job performance is strong. It is this
7. What are the three broad phases that make up the model for implementing TSM?
Planning and preparation
8. What is the most important step in the TSM implementation model? Why?
Step 1 is a critical preparation activity. Failure to complete Step 1 successfully can
Chapter Thirty-One – Establishing a Safety-Friendly Corporate Culture
1. De,ne the concept of the safety-,rst corporate culture.
A safety-,rst corporate culture exists when the tacit assumptions, beliefs, values,
2. Why is the term safety culture a misnomer?
3. List at least ,ve ways (evidence) to tell if an organization has a safety-,rst corporate culture.
It’s priorities
6 Gitman/Zutter • Principles of Managerial Finance, Fourteenth Edition
How people in the organization succeed
How decisions are made in the organization
4. Why is it important for organizations to have a safety-,rst corporate culture?
5. How does the concept of globalization factor into the need for a safety-,rst corporate culture?
Enhancement in key areas – the nature of work, transportation, and communication
–continues to enable ever-increasing levels of global competition. They also increase the
6. How does the concept of superior value factor into the need for a safety-,rst corporate culture?
All three elements – superior quality, cost, and service – in the formula for superior value
7. Describe how corporate cultures are established.
Corporate cultures in organizations are established based on what is expected, modeled,
8. What does a safety-,rst corporate culture look like?
It has the following characteristics:
Widely shared agreement among key decision makers that
providing a safe and healthy work environment is an essential competitive
strategy
Emphasis on the importance of human resources to the
organization and the corresponding need to protect them from hazards
Ceremonies to celebrate safety and health-related successes
Widely shared agreement that the work environment that is most
conducive to peak performance and continual improvement is a safe
and healthy work environment
9. List and explain each of the 10 steps for establishing a safety-,rst corporate culture.
Understand the need for a safety-,rst corporate culture
Assess the current corporate culture as it relates to safety
Plan for a safety-,rst corporate culture
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