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Mgmt 383. Chapter 15 Risk Management and Worker Protection Spring 2009. Results of Exam III. X = 76.56 (75.11) Rng = 48 - 97 S x = 11.11 Omit the following questions: Version A: #54 Version B: #56 Version C: #33. Components of Risk Management. Risk Management. Workplace Safety &

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mgmt 383

Mgmt 383

Chapter 15

Risk Management and Worker Protection

Spring 2009

results of exam iii
Results of Exam III

X = 76.56 (75.11)

Rng = 48 - 97

Sx = 11.11

Omit the following questions:

Version A: #54

Version B: #56

Version C: #33

components of risk management
Components of Risk Management

Risk Management


Safety &






& Worker




& Recovery


nature of health safety security
Nature of Health, Safety & Security
  • Health - general state of physical, mental, and emotional well-being.
    • Keeping people free from illness or injury.
    • Keeping people free from metal or emotion problems.
  • Safety - protecting the physical well-being of employees.
    • Focuses on work-related injuries and accidents.
  • Security - protecting the employer’s facilities and his/her employees while they are at work.
hr dept s responsibilities
HR Dept’s Responsibilities
  • Coordinates the Health & Safety Program
  • Develops Safety Reporting System
  • Provides Accident Investigation Expertise
  • Provides Expertise in Accident Prevention
  • Develops Restricted Access Procedures
  • Trains Managers in Policies/Procedures
  • Trains Managers to Recognize and Deal with Dangerous Employees
managers responsibilities
Managers’ Responsibilities
  • Monitors Daily Health & Safety in the Workplace
  • Coach Employees on Safety Consciousness
  • Preliminary Investigation of Accidents
  • Observe the Health and Safety Behavior of Employees
  • Monitor Workplace for Security Violations
  • Identify Potentially Dangerous Employees
  • Recommend Changes as Needed
legal requirements for safety health
Legal Requirements for Safety & Health
  • Workers Compensation
  • ADA
  • Child Labor
  • Occupational Safety & Health Act
workers compensation
Workers Compensation
  • Wisconsin had first workers compensation law in 1911.
  • Objective: to compensate employees for injuries sustained on the job.
workers compensation9
Workers Compensation
  • Costs:
    • National average: $19,500 per claim.
    • Costs of claims have risen by 300% since 1985.
    • Costs can run 2-10% of total payroll expenses.
    • Major cause for increased workers comp costs: Increased litigation expenses.
  • Fraudulent claims account for an estimated 25% of all workers’ comp claims (as much as $5B annually).
ada warning
ADA Warning
  • If you make accommodations for injured workers by keeping them in their current jobs but placing them on light duty, you may be undermining the essential functions of the job as defined under the ADA.
child labor flsa
Child Labor (FLSA)
  • FLSA requires employees to be >16 for unlimited hours.
    • Employees in the ages 16 to 17 are only permitted to work in nonhazardous jobs
  • “Hazardous” jobs are open only to employees who are > 18.
    • What is a “hazardous job is determined by the Secretary of Labor.
examples of hazardous jobs
Examples of Hazardous Jobs
  • Manufacturing or storing explosives
  • Driving a motor vehicle and being an outside helper on a motor vehicle
  • Coal mining
  • Logging and saw milling
  • Power‑driven wood‑working machines
  • Exposure to radioactive substances and to ionizing radiations
  • Power‑driven hoisting equipment
  • Power‑driven metal‑forming, punching, and shearing machines
  • Mining, other than coal mining
examples of hazardous jobs13
Examples of Hazardous Jobs
  • Meat packing or processing (including power‑driven meat slicing machines)
  • Power‑driven bakery machines
  • Power‑driven paper‑products machines
  • Manufacturing brick, tile, and related products
  • Power‑driven circular saws, band saws, and guillotine shears
  • Wrecking, demolition, and ship‑breaking operations
  • Roofing operations
  • Excavation operations
occupational safety health act osha
Occupational Safety & Health Act (OSHA)
  • Covered Employers:
    • Engaged in interstate commerce (>1 employee).
    • Farmers with > 10 employees.
    • Federal, State, and local governments.
  • Agencies
    • Occupational Safety & Health Administration (OSHA) enforces the act.
    • National Institute of Occupational Safety (NIOSH) develops safety & health standards.
    • Occupational Safety and Health RevisionCommission (OSHRC)- dispute handler.
osha audits
OSHA Audits
  • Presence of a formal safety/health plan.
  • Documentation of safety and health training.
  • Presence of a hazards communication program.
  • First aid/CPR training for employees.
  • Employees trained in personal protective clothing (PPE).
  • Accident investigators have been trained.
  • Evidence that the organization has made a good faith effort to improve safety/health.
osha s general duty clause
OSHA’s General Duty Clause
  • Refers to any areas in which no published OSHA standards exist.
  • Employers have a “general duty” to maintain a safe working environment.
osha record keeping requirements
OSHA Record-Keeping Requirements
  • Who must keep OSHA records:
    • Organizations with frequent injuries, hospitalizations, and illnesses.
    • Organizations with a work-related death.
    • Organizations selected by OSHA to participate in its annual labor statistics survey.
osha reporting requirements
OSHA Reporting Requirements
  • Record RequirementsforOSHA form 300 - occupational injuries, accidents, or fatalities.
    • Injury or illness related death.
    • Lost time or disabling injuries when the following day is missed.
    • Medical-care injuries if it requires a physician’s treatment but did not miss work the following day.
  • Not required for minor injuries requiring first-aid and no lost time
osha inspections
OSHA Inspections
  • Marshal v. Barlow’s, Inc. permits employers to refuse entry to OSHA compliance officers.
    • However OSHA can get a search warrant from any federal district court without probable cause.
    • Will also want to inspect safety records to insure that they are being maintained.
  • A company representative may follow the compliance officer during the inspection.
osha citations and violations
OSHA Citations and Violations
  • The Five OSHA Citations:
    • Imminent Danger
    • Serious
    • Other Than Serious
    • De Minimus
    • Willful and Repeated
osha citations and violations21
OSHA Citations and Violations
  • Imminent Danger- if not corrected immediately, death or serious bodily harm is likely to occur. [Unsafe scaffolding]
  • Serious- condition could probably cause death or serious bodily harm. [Failure to have a hand guard on a metal press].
  • Such citations could result in a maximum penalty of up to $7,000 for each violation.
osha citations and violations22
OSHA Citations and Violations
  • Other Than Serious- could adversely affect employees’ health or safety but wouldnot cause death or serious bodily harm [Extension cord across the floor]
  • De Minimus- not likely to directly endanger employees safety or health [no door on toilet stalls, e.g.]
osha citations and violations23
OSHA Citations and Violations
  • Willful and Repeated-employer has been warned of an unsafe condition and has not corrected the violation [6 months imprisonment if death occurs]
    • A willful citation might have a maximum amount of $70,000 per violation.
    • Repeat citations also have a maximum penalty amount of $70,000 per violation.
osha hazards communication
OSHA Hazards Communication
  • Process Safety Management (PSM) standards have been established for hazardous chemicals
    • Requires employees to notify employees of their presence.
    • Information on hazardous substances must be made available in a material safety data (MSD) sheet.
safety management components
Safety Management Components
  • Organization Commitment (must be supported by management)
  • Safety Policies Discipline and Recordkeeping
  • Safety Training and Communication
  • Participation by Employees (Safety Committees)
  • Inspection Investigation, and Evaluation of Safety Efforts
engineering approach to safety and health
Engineering Approach to Safety and Health
  • Designing physical work settings.
    • Temperature considerations.
    • Light levels.
    • Enough work space.
    • Materials used.
    • Noise levels.
    • ADA accommodations.
  • Ergonomics - designing work environments that consider the physiological and psychological well-being of experienced employees.
    • Designs for video display terminals.
    • Computer keyboards.
    • Office chairs that reduce back strain or fatigue
    • Focuses on reducing cumulative trauma and repetitive stress.
cumulative trauma disorders ctd
Cumulative Trauma Disorders (CTD)
  • Cumulative Trauma Disorders (CTD) in juries to the muscle and skeletal systems due to workers’ repetitive use of the same muscle to perform work tasks.
    • Carpal tunnel syndrome is the most widely known form.
    • The meat processing industry has the highest incidents of CTD per employee.
health issues in the workplace
Health Issues in the Workplace
  • AIDS
    • Covered under ADA.
    • Guidance offered under OSHA’s bloodborne pathogens standards.
  • Smoking at Work
    • Smoke-free workplaces
    • Smoking cessation workshops
    • Note: New York’s State Court of Appeals has ruled that workers who become ill due to “second hand smoke” are eligible for worker’s compensation.
health issues in the workplace30
Health Issues in the Workplace
  • Obesity
    • Approximately two-thirds of US adults are obese.
    • Economic costs to employers due to health insurance claims:
      • Doctor visits
      • Diabetes
      • High blood pressure
    • Additionally lost days of work result from unhealthy workers
    • Incentives for wellness and fitness programs.
air quality issues
Air Quality Issues
  • Sick Building Syndrome- a creation of the EPA.
    • Acute health problems or discomfort that appear to be linked to employees’ time in the building.
    • Lack of ventilation.
    • Fumes from:
      • Carpets
      • Copy machines
      • Adhesives
      • Molds and fungi
substance abuse
Substance Abuse
  • Substance Abuse
    • Alcohol and drug abuse are defined as disabilities under 45 C.F.R. § 84-3 (J)(2)(I).
      • Illegal alcohol and drug abuse is not a disability.
      • In the case of alcohol and drug rehabilitation accommodation may have to be made.
    • Drug Free Work Place Act of 1988 - federal contractors and subcontractors must maintain drug-free work environments.
      • Inform employees of drug-free policies.
      • Outline actions taken against violators
      • Establish awareness programs.
substance abuse33
Substance Abuse
  • Types of Drug Tests
    • Urinalysis – generally accurate and well accepted.
    • Blood tests – generally accurate and well accepted.
    • Radioimmunoassy of Hair – one strain of hair provides a 90-day profile.
      • Faking is more difficult than urinalysis.
      • Cannot detect recent drug use (not good for accident investigations
    • Fitness-for–Duty - tests usually hand and eye coordination sobriety tests to insure safe performance of machinery/vehicles.
emotional mental health
Emotional/Mental Health
  • Stress – only excessive stress that effects employee’s ability to function normally.
    • Covered under Workers Comp in MA.
  • Wellness programs and employee assistance programs (EAP) are means to preclude or identify stress-related emotional and health problems.
wellness programs
Wellness Programs
  • Emerging employer responses to health concerns.
    • Wellness programs
      • Screenings
      • Exercise programs
      • Education programs(weight control, stress reduction)
      • Skills programs (CPR, first-aid)
  • Increased concern over workplace violence.
    • Employees are 18 times more likely to be killed during a workplace robbery than by a disgruntled coworker!
      • About 70% of workplace killings involve high risk jobs: law enforcement, taxi drivers, convenience store clerks.
    • Only 20% of workplace murders involve someone the employee knew (former coworker, spouse, domestic partner, customer, employee).
  • Profile of potentially violent employees.
    • History of aggression
    • Exhibits frustration
    • Loner
    • Handles stress poorly
    • Temper/anger
    • Work is their sole major activity
  • Watch handling of workers fired for making threats.
    • Postal worker recovered $75,000 (plus back pay) for work-related stress under the ADA after being terminated for threatening supervisor. Lussier v. Runyon, 1994 U.S. Dist. LEXIS 4668 (D.C. Me. 1994)
  • Security Audit(Vulnerability analysis) assesses potential security problems.
    • Surrounding neighborhood
    • Lighting in parking lots
    • Location of emergency response services
    • Current security capabilities
    • Disaster plans
  • Controlled Areas
  • Computer security
employee screening selection
Employee Screening & Selection
  • Employee Screening & Selection (job-related) security issues:
    • Psychological testing
    • Reference checks
    • Background investigations
  • Quality of Security Personnel
disaster preparation and recovery planning
Disaster Preparation and Recovery Planning
  • Disaster Planning is required by FEMA
    • Organizational Assessment – determines how various disaster may affect operations (earthquake, weather, terrorist attack).
    • Human Impact Planning – communication with employees during the crisis (contact lists).
    • Disaster Training
      • First Aid/CPR
      • Hazardous material containment
      • Employee contact methods
      • Organizational restoration efforts.