Management Chapter 13 Risk Management And Worker Protection Risk Management And Worker Protection

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Chapter 13: Risk Management and Worker Protection

Chapter 13: Risk Management and

Worker Protection

Table of Contents

Chapter Summary

Learning Objectives

Lecture Outline

Critical Thinking Challenges

Case: Companies Partner to Promote Active Work Cultures

Supplemental Cases

Extra Teaching Video

Chapter Summary

Chapter 13 is the first chapter in the Employee Relations section. The chapter begins with a description of

safety and health regulations followed by a section focused on OSHA’s role in keeping employees safe.

Safety management, covered in section 3, looks at the cost associated with occupational safety incidents.

Employee health problems (section 4) can occur without workplace accidents. Workplace security is

reviewed in section 5, and planning for disaster recovery closes the chapter.

Learning Objectives

After students have read this chapter, they should be able to accomplish the following objectives:

• Understand risk management and identify its components.

• Discuss important legal areas regarding safety and health.

• Outline the basic provisions of the Occupational Safety and Health Act of 1970 and

recordkeeping and inspection requirements.

Chapter 13: Risk Management and Worker Protection

Lecture Outline

HR Headline: Industries Pushed Around by Workplace Bullying

Workplace bullying involves different counterproductive acts that target individuals in

organizations. Such misconduct includes generalized rudeness, hostility, sarcasm, teasing, and

meanness. But it can also involve more serious forms of negative interaction such as spreading

gossip, social isolation, aggression, intimidation, threats, and sabotage. Certain industries

appear to be particularly susceptible to workplace bullying, and this may be caused by a

combination of the work and the individuals attracted to the jobs.

• Risk management involves the responsibility to consider physical, human, and financial

factors to protect organizational and individual interests.

• HR departments are included in the prevention, minimization, and elimination of workplace

13-1. Safety and Health Regulations

13-1a. Workers’ Compensation

• Figure 13-2 shows the typical elements of benefits paid to injured workers or their

13-1b. Americans with Disabilities Act and Safety Issues

• When employers try to return injured workers to restricted duty work to reduce

13-1c. Child Labor Laws

• Figure 13-3 details the permissible and prohibited work schedules and duties for young

13-1d. Legal Issues Related to Work Assignments

• Two primary areas where work assignments and concerns about safety and health

intersect are reproductive health and unsafe work.

• Based on standards specified in the Civil Rights Act and the Pregnancy Discrimination

Act, employers should not prevent women (or men) from working in hazardous jobs

HR Ethics: What Is the Real Cost of Your iPhone?

Companies try to find low-cost suppliers. In some cases, this leads to suppliers in developing countries

that take advantage of local workers.

1. How can consumers learn about supply chain issues and worker safety concerns when shopping

for electronic devices? How could an HR department help?

Students’ answers will vary. News agencies and the Internet can provide information about

problems, such as earthquakes and political unrest that could cause supply chain issues. HR can

track events in places where suppliers are located.

2. What can companies do to ensure that their suppliers comply with worker safety and health

regulations? How should HR professionals ensure that safety and health are key issues in the

workplace?

evaluate the workplace facilities.

13-2. Occupational Safety and Health Act

13-2a. OSHA Enforcement Actions and Results

• A major responsibility of OSHA is to enforce safety regulations in an effort to reduce

13-2b. Workplace Safety Standards

• While many industries, like construction and health care, have specific workplace

requirements, all companies must adhere to two key provisions:

o General duty: The act requires that the employer has a general duty to provide

safe and healthy working conditions, even in areas where OSHA standards have

not been set.

• Hazard communication standards require manufacturers, importers, distributors, and

users of hazardous chemicals to evaluate, classify, and label those substances using

standardized symbols.

• Standards for personal protective equipment (PPE) require that employers analyze job

hazards, provide adequate PPE to employees in hazardous jobs, and train them in the

use of PPE items.

• OSHA has established a standard regarding exposure to bloodborne pathogens such as

the hepatitis B virus (HBV) and the human immunodeficiency virus (HIV).

13-2c. OSHA Recordkeeping Requirements

• Employers are generally required to maintain a detailed annual record of the various

types of injuries, accidents, illnesses, and fatalities for inspection by OSHA

13-2d. OSHA Inspections

• The Occupational Safety and Health Act provides for on-the-spot inspections by OSHA

compliance officers or inspectors.

• Dealing with an inspection:

o When an OSHA compliance officer arrives, managers should ask to see the

inspector’s credentials.

o Next, the company HR representative or safety professional should insist on an

initial conference with the compliance officer.

• Many types of violations are cited by OSHA. Ranging from the most severe to

minimal, including a special category for repeated violations, the most common are as

follows: imminent danger, serious, other than serious, de minimis, and willful and

repeated.

13-3. Safety Management

• Figure 13-7 shows that the direct costs of accidents and illnesses are only a small part of

Chapter 13: Risk Management and Worker Protection

the total costs, and organizations should estimate all the expenses associated with health

and safety issues, particularly any indirect costs that might be overlooked.

13-3a. Organizational Commitment to Safety

13-3b. Safety Policies, Discipline, and Recordkeeping

13-3c. Safety Training and Communication

• Accidents in the workplace are often reduced with safety training that is conducted in

13-3d. Effective Safety Committees

13-3e. Inspection, Investigation, and Evaluation

13-3f. Accident Reduction using Ergonomics

13-3g. Approaches for Effective Safety Management

• Companies typically use elements from each of three basic approaches to manage

Chapter 13: Risk Management and Worker Protection

safety.

• Figure 13-9 shows the organizational, engineering, and individual approaches and their

13-3h. Measuring Safety Efforts

• Organizations should monitor and evaluate their safety efforts.

HR Competencies & Applications: Calculating Incidence Rates

Key Competencies: Critical Evaluation, Business Acumen; HR Expertise:

Organization/Technology & Data, Workplace/Risk Management

Incidence rates can be calculated to compare safety results of two organizations.

incidence rate = (number of injuries and illnesses × 200,000) ÷ employee hours worked

1. How might safety committees use this information when working on accident prevention

programs? Could an HR department provide any assistance?

Students’ answers will vary. Students could consider that the ability to compare incidence

rates will help determine when improvement efforts are working. HR departments track

incidents.

2. How might reward programs for managers take into account incidence rates for injuries

and illnesses? What could HR professionals do to facilitate any changes made to the

reward system?

information.

13-4. Employee Health and Wellness

13-4a. Substance Abuse

• Substance abuse is the use of illicit substances or misuse of controlled substances,

alcohol, or other drugs.

• Figure 13-10 shows common signs of substance abuse that HR professionals and

13-4b. Emotional/Mental Health

13-4c. Stress and Burnout

• Stress is the harmful physical or psychological reaction that occurs when people are

13-4d. Smoking at Work

• In response to health studies, complaints by nonsmokers, and resulting state laws, many

13-6. Disaster Preparation and Recovery Planning

13-6a. Disaster Planning

• Disaster planning should include consideration of organizational factors, human impact

analysis, and disaster training.

• Organizational assessment includes establishing a disaster planning team, often

Critical Thinking Challenges

1. What can first-line supervisors do to help control workers’ compensation costs, and how

might they be rewarded for doing so?

A key to keeping workers’ compensation costs low is to take preventative steps to reduce

accidents and work-related illnesses. Safety programs, health programs, and security

measures (particularly those that prevent workplace violence) all help provide a safe and

2. What should an employer do when facing an OSHA inspection?

OSHA provides for on-the-spot inspections by compliance officers or inspectors. The

Chapter 13: Risk Management and Worker Protection

employer, however, should decide whether to insist on a search warrant before permitting

entry, or to invite the inspector to undertake the safety inspection. Whether OSHA’s

admission into the workplace is immediate or delayed while obtaining a search warrant,

3. As the HR manager of a distribution and warehouse firm with 600 employees, you plan to

discuss a company wellness program at an executive staff meeting next week. The topics to

cover include what a wellness program is, how it can benefit the company and employees,

and the process for establishing it. To aid in developing your presentation to the executives,

consult the website www.welcoa.org and other applicable websites you can locate.

A wellness program is a company initiative to promote employee health. There are six

reasons for worksite wellness:

• Containing and decreasing health care costs

A wellness program can also provide the following benefits to the organization:

• Improved morale

A wellness program can include the following:

• Activity incentive plan

Chapter 13: Risk Management and Worker Protection

• Health fair/blood screenings

• Volunteer community programs

• Sponsoring organized sports activities

• Bringing in speakers to discuss different wellness topics

The following are the seven benchmarks of success:

• Capturing senior level support

4. What should be included in disaster planning for a large employer in Annapolis, Maryland,

that is concerned about natural disasters such as floods and snowstorms that might shut

down the company and parts of the city?

5. The number and magnitude of data breaches have been increasing at retailers, banks,

government agencies, and other institutions. The management team at your company has

decided to develop plans for dealing with data security breaches. Because your company

has many employees who telecommute and you employ a high percentage of contract and

temporary employees, there are many factors to consider.

A. What policies would you recommend to help ensure that insiders (including direct

and indirect workers) do not steal sensitive corporate data or compromise the integrity

of the computer system?

B. Write a suggested procedure for dealing with computer and data access when an

employee (including direct and indirect workers) terminates employment. What steps

should be taken to protect the company’s IT data?

Case: Companies Partner to Promote Active Work Cultures

Employee wellness is tied to business growth—a realization that is making a number of

corporations promote employee health by changing the sedentary lifestyle of employees through

the use of activity-permissive workstations in their offices, thus creating a win–win situation.

1. What are some of the major benefits of using office furniture and workstations to promote

employee health? Are there any associated challenges?

Students’ answers will vary. Some students may say that companies that have installed

innovative furniture and workstations in their offices have observed an increase in

2. What rewards might be offered to employees for using sit-stand desks and treadmills to

promote fitness in the workplace? How could you further motivate them to focus on these

health and wellness initiatives?

Students’ answers will vary. Some students may suggest that employees be given

incentives for using sit-stand desks and treadmills. Employers can also conduct monthly

3. Using Zillow Group and Humana as examples, how would you promote health and wellness

by encouraging employees to be more active? What kinds of results would you expect to see?

Students’ answers will vary. Students may suggest that employers divide wellness goals

into three levels. The first level of health promotion (information and awareness) leaves

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much to individual initiative for following through and making changes in actions and

behaviors. For this, employers can provide information on topics such as weight control,

stress management, nutrition, exercise, and smoking cessation. At the second level,

employers may wish to impact employees’ health using more comprehensive programs and

actions (such as wellness programs and employee assistance programs) that focus on

employees’ lifestyle and wellness. The third level would require a total commitment to

wellness. At this level, employers may allocate dedicated resources and provide employees

with facilities that promote wellness.

Students may say that these initiatives may reduce employee work stress and increase the

attractiveness of employers for prospective employees. Students may further state that

these initiatives may also result in a decrease in the number of health claims and an

increase in worker engagement and retention.

Supplemental Cases

Building a Culture of Safety

This case investigates how a construction firm implemented a comprehensive safety program for

its employees and subcontractors. (For the case, visit MindTap® at www.cengage.com/login.)

1. What could be done to increase front-line workers’ reports of violations? Why might they

be reluctant to report violations they witness?

2. What rewards might be offered to front-line workers for working safely and preventing

injuries? What rewards might be offered to job site managers who safely lead projects?

3. Visit the Messer Construction company website at http://messer.com/process/safety4site.

How has the Safety4Site program impacted Messer’s business outcomes? Has the company

been awarded any recognition for its efforts?

Students’ answers will vary. Students might need to search for “safety” and “safety4site”

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at the Messer website. Messer uses its safety record and its partnership with OSHA as

selling points for the company. It has received awards for safety, including the Metro

Indianapolis Coalition for Construction Safety, Inc. (MICCS) prestigious 2012 Excellence

in Safety Award, better known in industry circles as the “Crystal Eagle.”

Wellness Programs Help the Bottom Line

This case explores the positive individual and organizational benefits of wellness programs. (For

1. What are some factors that you consider to be important predictors of successful wellness

programs?

Students’ answers could include the following points:

The success of wellness programs depends on the support provided by leaders of the

2. What types of activities should companies include in a wellness initiative to increase

employee participation?

3. Which of the success factors for wellness programs identified in the case do you think is

the most important? Which factor is the least important?

Chapter 13: Risk Management and Worker Protection

Data Security

This case explores the different challenges associated with managing data security. (For the case,

1. How would you communicate a data security policy that required software checking of

employees’ emails?

2. What elements should a data security policy for a bank include?

3. Employee data theft most frequently occurs with new employees or when an employee has

given notice and is leaving. How would you deal with these two very different issues?

To prevent data theft with new employees, it is critical that good screening procedures and

reference checking be done for each new employee. The new employee orientation should

What’s Happened to Bob?

Chapter 13: Risk Management and Worker Protection

This case concerns warning signs of possible alcohol use and the consequences at work. (For the

1. What actions, if any, should Jack Otto take?

Students’ answers will vary. Some students may say that Jack Otto should discuss the work-

related signs with Bob and indicate that the company is willing to assist Bob, provided that

2. Identify some ways that the company and Jack have contributed to the existing problem

with Bob.

The organization and Jack did not respond to personal problems that long-service,

Comments

This case illustrates the need for organizations to respond to personal problems that long–

service, productive employees have. Bob Hill is exhibiting a number of symptoms from

extreme stress or alcoholism. The “blow ups” and Monday absenteeism problem are

indications that Bob needs help.

By allowing the problems to build up over time, the company has contributed to a worsening

situation. At the same time, the case reveals a dilemma for the supervisor and the company—

when does the company have a right to interfere in a person’s private life? At this point Bob’s

behavior cannot be ignored.

The supervisor, or someone in the personnel department, should discuss the work-related signs

with Bob and indicate that the company is willing to assist Bob, provided that he also helps

Chapter 13: Risk Management and Worker Protection

ten years.

Communicating Safety and Health Success

This case provides information on the success of safety and health efforts in the workplace. (For

1. Identify how these two firms have incorporated elements of safety management and health

promotion described in this chapter into their programs.

Safety management includes safety policies, discipline, and recordkeeping. It also includes

safety training and committees. Health promotion is a supportive approach to facilitate and

2. Discuss how the reductions in injuries can be used to justify the expenditures on the various

programs in NorthStar and Cox.

A cost-benefit analysis could be conducted yearly to track any decreases in medical costs,

Extra Teaching Video

On the Job Video: Stew Leonard’s—Health & Safety

Chapter 13: Risk Management and Worker Protection

This short video will help reinforce key points and may prompt additional discussion from the

class.