ROLE OF MANAGEMENT

1. ROLE OF MANAGEMENT Management (the people) has a critical role to play in loss management (the technique). What is that role? To whom is management responsible/accountable? Why should management be concerned with loss management? Wilson, p. 16; CCOHS

2. MANAGEMENT Main responsibility for safety lies with management Only managers can issue orders & direct work. Responsible for controlling unsafe (substandard) actions of employees and unsafe (substandard) work conditions. Unsafe (substandard) actions occur in course of employment that management creates and directs.

3. MANAGEMENT Managers are responsible to increase shareholder equity Make the company richer. All other considerations are secondary (!) Safety measures cost money Therefore managers may tend to look at safety as a secondary issue.

4. MANAGEMENT But consider safety as loss prevention Loss prevention of primary economic factors of land, labour and capital A company exists to make money By not investing in loss prevention Potential loss of a great deal of money May even destroy ability to make money in the future

5. MANAGEMENT Managers should invest in safety for three reasons: Moral, Legal, Economic. These reasons influence the economic viability of the company. The primary goal of a manager is to increase the wealth of the company. By not investing in safety, the manager puts the company at risk for financial loss.

6. MANAGEMENT These losses can be quick (e.g. destruction of workplace in an explosion). Or they can be slow (e.g. loss of productivity due to poor morale). And in the midst of all this financial reasoning, always remember that PEOPLE ARE THE MOST IMPORTANT ASSET IN ANY BUSINESS OPERATION.