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CHAPTER 13

Risk Management and Worker Protection

Learning 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

Learning Objectives (continued)

Recognize the activities that constitute effective safety management

List three workplace health issues and highlight how employers are responding to them

Define workplace security concerns and discuss some elements of an effective security program

Describe the nature and importance of disaster preparation and recovery planning for H R

Risk Management

Involves the responsibility to consider physical, human, and financial factors to protect organizational and individual interests

Involves the following essential issues:

How big is the threat to our organization?

How likely is the threat to occur?

What options do we have to reduce its impact?

What is the preferred course of action to prevent a major loss?

Risk Management (continued)

Risk management concerns

Preventing accidents and health problems at work

Protecting against workplace violence

Ensuring H R data are secure

Preparing for terrorist attack, natural disasters, and global disease outbreaks

Key Facets of H R-Based Risk Management

Health: General state of physical, mental, and emotional well-being

Safety: Condition in which people’s physical well-being is protected

Security: Protection of employees and organizational facilities from forces that may harm them

Safety and Health Regulations

Major legal concerns

Workers’ compensation legislation

Americans with Disabilities Act (A D A)

Child labor laws

Civil rights nondiscrimination provisions

Collective bargaining laws

Workers’ Compensation

Employers purchase insurance to compensate employees for injuries incurred while on the job

Laws require payments be made to an employee:

For time away from work because of an injury

To cover medical bills

For retraining if a new job is required as a result of the incident

Elements of Workers’ Compensation Benefits

Medical care

Medical treatment

Physical therapy

Prescription medications

Replacement income

Short term during recovery

Long term for permanent injuries

Elements of Workers’ Compensation Benefits (continued)

Retraining costs

Occupational rehabilitation

Skill training and education

Survivor benefits

Payment to families of workers killed on the job

A D A and Safety Issues

Employers try to return injured workers to restricted duty work to reduce workers’ compensation costs

When making accommodations for injured employees through restricted duty work, essential job functions may be undercut

H R professionals understand A D A guidelines as they affect physical disabilities

It becomes difficult when mental illness is an issue

Child Labor Laws

Fair Labor Standards Act (F L S A)

Child labor provisions set restrictions on minimum age for employment

Penalties for violating restrictions can be costly

Work-related injuries of teenage workers are a significant issue

Proper training of managers and employees in permissible tasks for younger workers and safe practices is critical

Child Labor Law Restrictions

Children of all ages

Permitted to deliver newspapers

Permitted to work as entertainers

Permitted to work for a family-based farm or other business that is owned and operated by their parents

Cannot work in manufacturing or mining jobs regardless of ownership

Child Labor Law Restrictions (continued 1)

Children between ages 14 and 15

Can work a maximum of 3 hours/day up to 18 hours/week when school is in session

Can work between the hours of 7:00 a.m. and 7:00 p.m. when school is in session

Can work a maximum of 8 hours/day up to 40 hours/week when school is not in session

Can work until 9:00 p.m. when school is not in session

Child Labor Law Restrictions (continued 2)

Children between ages 16 and 18

Can work unlimited hours in permissible jobs

May perform any farm job

May perform any nonhazardous job

May not drive on public roads or perform duties of a delivery driver

Children aged 18

Minimum age for employment in hazardous occupations

No longer subject to child labor provisions

Legal Issues Related to Work Assignments

Reproductive Health

Employers should not prevent employees from working in hazardous jobs because of reproductive concerns, but they should:

Use the safest working methods

Comply with safety laws

Inform employees of known risks

Document employee acceptance of any risks

Legal Issues Related to Work Assignments (continued)

Employees can refuse unsafe work

Conditions for refusing work because of safety concerns:

The employee’s fear is objectively reasonable

The employee has tried to have the dangerous condition corrected

Using normal procedures to solve the problem has not worked

Global Safety, Health, and Security Issues

Risk management must be considered for employees around the world

Safety and health laws and regulations vary greatly from country to country

Importance on health and safety is affected by level of regulation and other governmental and societal factors present in each country

Occupational Safety and Health Act

Enacted to ensure that the health and safety of workers is protected

Established three agencies within the Department of Labor to oversee various aspects of workplace safety

Occupational Safety and Health Administration (O S H A)

Administers the provisions of the law

Conducts workplace inspections

Works with companies to improve worker safety

Occupational Safety and Health Act (continued)

National Institute for Occupational Safety and Health (N I O S H)

Conducts research and develops safety standards

Occupational Safety and Health Review Commission (O S H R C)

Reviews O S H A enforcement actions and addresses disputes between O S H A and employers that are cited by O S H A inspectors

O S H A Enforcement Actions and Results

O S H A enforces safety regulations to reduce injuries and illnesses in the workplace

Incidences of nonfatal occupational injuries and illnesses and fatal work injuries have declined since 2003

Employers must:

Provide safe and healthy working conditions

Inform employees of O S H A safety and health standards through notification and posters

Workplace Safety Standards

O S H A enforcement standards

Hazard communication standards

Standards regarding exposure to bloodborne pathogens

Personal protective equipment standards

Standards regarding pandemics

Categories of Recordable Injuries

Death

Injuries causing days away from work

Injuries or illnesses causing job transfer or restricted duty

Other recordable cases

Figure 13-6: Determining Recordability of Cases under the Occupational Safety and Health Act

O S H A Inspections

Compliance officers conduct on-the-spot inspections

Dealing with an inspection

Managers check inspector’s credentials

H R representative or safety professional has an initial conference with the compliance officer

Officer reviews safety records and conducts on-the-spot inspection

Officer issues citations for any violations

O S H A Inspections (continued 1)

Most common violations

Imminent danger: Reasonable certainty that the condition will cause death or serious physical harm if not corrected immediately

Serious: Condition that could cause death or serious physical harm, where the employer should know of the condition

Other than serious: Violations that impact employees’ health or safety but may not cause death or serious harm

O S H A Inspections (continued 2)

De minimis: Condition not directly and immediately related to employee safety or health

Willful and repeated: Issued to employers that have been previously cited

Related to fall protection, hazard communication, scaffolding, respiratory protection, and powered industrial trucks

Examples of Direct Costs of Accidents

Direct Costs

Medical treatment (medication, rehabilitation, surgery)

Disability benefit payments for lost time

Durable medical equipment

Workers’ compensation premiums

Fines for safety violations

Damage to work equipment

Examples of Indirect Costs of Accidents

Indirect Costs

Decreased/lost productivity

Management time for accident investigation

Claims administration

Time and production lost by coworkers

Reduced work group efficiency

Time lost by supervisor

Cost to replace injured workers and train new workers

Examples of Immeasurable Costs of Accidents

Immeasurable Costs

Negative publicity and damaged reputation

Negative influence on employees’ esprit de corps

Safety Management

Steps to reduce accidents

Organizational commitment to safety

Top management support is critical

Safety policies, discipline, and recordkeeping

Frequent reinforcing of safe behavior is important

Safety training and communication

Regular training sessions along with effective communication can help reduce accidents

Effective safety committees: Composed of workers from a variety of levels and departments

Safety Management (continued)

Best practices

Senior leaders must endorse efforts and managers must actively assist the committees

Safety advocates should be assigned to committees

Management and employees should be represented

Inspection, investigation, and evaluation

Regular inspections should be performed, and research on prevention should be arranged

Accident reduction using ergonomics

Ergonomics: Study and design of work environment to address physical demands placed on individuals as they perform their jobs

Accident Investigation Process

Emergency response; secure the accident site

Initial investigation; review site

Collect data from injured worker, witnesses, historical records

Analyze data and determine root cause

Institute corrective measures

Approaches for Effective Safety Management

Organizational approach

Design safe jobs

Develop and implement safety policies

Use safety committees

Coordinate accident investigations

Create a safety culture

Establish reward and recognition programs

Engineering approach

Design appropriate work settings and equipment

Approaches for Effective Safety Management (continued)

Utilize proper guarding and alert systems

Evaluate and use equipment and assistive devices

Apply ergonomic principles

Implement safety procedures in the workplace

Individual approach

Reinforce safety motivation and attitudes

Provide employee safety training

Reward safety through incentive programs

Discuss safety in meetings and at worksites

Measuring Safety Efforts

Accident and injury statistics should be compared with previous accident patterns to identify any significant changes

Common metrics

Workers’ compensation costs per injury/illness

Percentage of injuries/illnesses by department, work shifts, and job categories

Incident rate comparisons with industry and benchmark targets

Substance Abuse

Use of illicit substances or misuse of controlled substances, alcohol, or other drugs

Companies should consider utilizing an employee assistance program (E A P) for support and counseling related to substance abuse

Types of drug tests

Urinalysis, radioimmunoassay of hair, surface swiping, and fitness-for-duty tests (impairment)

Common Signs of Substance Abuse

Physical

Fatigue, slurred speech, flushed cheeks, difficulty walking, and tiredness

Psychological

Depression, emotional instability, helplessness, insecurity/low self-concept, and difficulty remembering details

Behavioral

Inconsistency, missed deadlines, high absenteeism (especially Mondays/Fridays), frequently borrowing money, and poor job performance

Common Signs of Substance Abuse (continued)

Interactional

Irritability, overreacting, argumentative behavior, bullying, and violence

Other Employee Health Concerns

Emotional/mental health

Specific events can affect individuals who otherwise have been coping successfully with life’s pressures

Affected employees can be referred to outside resources through employee assistance programs

Stress and burnout

Stress: Harmful physical or psychological reaction that occurs when people are subject to excessive demands or expectations

Workplace Stressors

Increased volume of work

Longer work hours

Increased pace of work and tight deadlines

Increased performance expectations and pressures

Ways to Combat Workplace Stress

Learn coping strategies

Get enough sleep

Get regular exercise

Relax

Eat healthy, nutritious meals

Seek support from sympathetic colleagues

Other Employee Health Concerns (continued)

Smoking at work

Many employers have instituted no-smoking policies throughout their workplaces

Organizations refuse to hire smokers or nicotine users because they want to:

Improve job performance

Reduce health-related expenses

Promote healthier lifestyles

Legal status of e-cigarettes is complicated because of the lack of F D A oversight

Health Promotion

Health promotion: Supportive approach of facilitating and encouraging healthy actions and lifestyles among employees

Wellness programs: Programs designed to maintain or improve employee health before problems arise

Employee assistance program (E A P): Provides counseling and other help to employees having emotional, physical, or other personal problems

Health Promotion (continued)

Helps improve employee performance

Reduces expenses associated with benefits

Enhances organizational well-being

Addresses the following most common employee issues:

Child care and elder care

Mental health and substance abuse problems

Relationship issues

Legal and financial problems

Career advice

Health Promotion Levels

Level 1: Information and Awareness

Brochures and materials

Health risk screenings

Health tests and measurements

Special events and classes

Level 2: Lifestyle/Wellness

Wellness education program

Regular health classes

Employee assistance programs

Health Promotion Levels (continued)

Support groups

Health incentives

Level 3: Health Emphasis

Benefits integrated with programs

Dedicated resources and facilities

Continuous health promotion

Health education curriculum

Workplace Security Concerns

Security concerns

Security management

Employee screening and selection

Security personnel

Workplace violence

Security Management

Involves:

Performing a security audit

Security audit: Comprehensive review of organizational security

Controlling physical access to facilities of the organization

Controlling access to H R and other sensitive data

Screening job applicants

Providing trained security personnel in sufficient numbers

Security Management (continued)

Providing violence prevention training

Managers, H R staff members, supervisors, and employees should be trained on:

How to recognize signs of a potentially violent employee

What to do when violence occurs

Workplace Violence

Perpetrated by such categories of individuals as criminal, customer, coworker, or domestic

Incivility: Rude behavior that offends other employees

Bullying: Behavior that the victim perceives as oppressive, humiliating, threatening, or infringing on the target’s human rights and that occurs over an extended period of time

Workplace Violence (continued)

Dealing with workplace violence

Develop policies and practices that aim to prevent and respond to it

Train managers and others

Create a violence response team

Develop post-violence response plans

Levels of Workplace Violence Warning Signs

Level 1: Early Warning Signs

Intimidating/bullying

Discourteous/disrespectful

Uncooperative

Verbally abusive

Level 2: Escalating Situation

Argumentative with customers, coworkers, and management

Insubordination

Levels of Workplace Violence Warning Signs (continued)

Sabotage of equipment or stealing property for revenge

Verbal or written threats to hurt coworkers or managers

Level 3: Further Escalation

Threats of suicide

Physical altercation

Destruction of property

Extreme rage

Brandishing weapons to harm others

Crisis Management

Effectively managing a crisis faced by a company in three basic steps:

Pre-crisis: Identify how crises can be avoided through proper preparation, risk assessment, and disaster prevention

Crisis: Craft a plan that enables the firm to adequately identify and respond to a crisis

Post-crisis: Identify how the organization can better respond to the same or a similar crisis if it were to happen again

Elements of a Disaster Plan

Organizational assessment

Includes establishing a disaster planning team whose goal is to conduct an organizational assessment of how various disasters might affect the organization and its employees

Disaster recovery plan is then developed to identify how the organization will respond to various situations

Human impact planning

Involves assessing the impact of events on people and putting contingency plans in place

Elements of a Disaster Plan (continued)

Disaster training

Covers a wide range of topics, including the following:

First aid/CPR

Hazardous materials containment

Disaster escape means

Employee contact methods

Organizational restoration efforts

H U M A N R E S O U R C E

MANAGEMENT

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