Impact of Occupational Safety and Health on Organizational Performance in East Africa Bottling Sh. Co.

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1 Impact of Occupational Safety and Health on Organizational Performance in East Africa Bottling Sh. Co. By Muluken Legesse Advisor: Associate Professor Eshetie Berhan (Dr. Ir.) Co-Advisor: Mr. Kassu Jilcha (PhD candidate) A Thesis Submitted to Addis Ababa University, School of Mechanical and Industrial Engineering, Addis Ababa Institute of Technology, in Partial Fulfilment of the Requirement for the Degree of Master of Science in Industrial Engineering June, 2016

2 ADDIS ABABA UNIVERSITY ADDIS ABABA INSTITUTE OF TECHNOLOGY SCHOOL OF MECHANICAL AND INDUSTRIAL ENGINEERING Impact of Occupational Safety and Health on Organizational Performance in East Africa Bottling Sh. Co. By Muluken Legesse Approved by Board of Examiners Chairman, Dept. Graduate Committee Advisor Internal examiner External examiner Signature Signature Signature Signature

3 DECLARATION I, the undersigned declare that this thesis is my original work, and has not been presented for degree in this or any other university and all sources of material used for thesis have been fully acknowledged Muluken Legesse Name... Signature Addis Ababa, Ethiopia June 2016 Place Date of submission This thesis has been submitted with my approval as a university advisor Associate Professor Eshetie Berhan (Dr. Ir.)... Advisor Name Signature Date Mr. Kassu Jilcha. Co-Advisor Name Signature Date

4 ACKNOWLEDGMENT Firstly, I would like to thank God for granting me the power and courage to finish my thesis. I wish also to express my profound and heartfelt gratitude to my advisor Associate Professor Eshetie Berhan (Dr.Ir) and my Co-Advisor Kassu Jilcha (PhD Candidate). I am exceedingly grateful to them for their constructive suggestions and criticisms and valuable contributions for making this work what it is today. All their contributions put this work to its rightful perspective. My undeserved thanks also goes to the supervisors and respondents, who were randomly selected for the study, for their maximum support and co-operation for making data available which contributed to the success of this work. I would be ungrateful if I don t mention my family members and friends, Zeritu, Mintesenot, Azmeraw and Muluken. What you have done for me is immeasurable and cannot be quantified. Thank you so much and God bless you all. i

5 ABSTRACT The study assessed the impact of occupational safety and health management practices on organizational performance in East Africa Bottling Sh. Co. The objectives were to assess the existing occupational safety and health management practices, to identify major safety and health problem employees encountered due to the nature of their work and to assess impact of occupational safety and health on organization performance. The study was focused on production and warehousing shop floor workers. Primary data was collected using a questionnaire from 106 randomly selected workers from both departments. Though the company had a nicely crafted OSH policy and procedure, the study revealed that workers in these areas had high injury rates. In the last two years, from all respondents, 82.1% faced minor injuries with 67.9 % of them being hospitalized with a 1 to more than 10 days of sick leave. These had a negative impact on production performance of the company and contributed 2.75% from the company s total performance losses. The main sources of injuries in the case company were broken glass, repetitive job and workload and slippery floors. The main reason why employee faced these issues were due to carelessness of employee, lack of awareness and training, poor OSH implementation supervision and lack of PPEs. In addition, work related OSH training was not adequately given to temporary workers. To benefit from OSH management, the company should close all gaps related to OSH administration and training. Moreover, the company should work with first line managers to diffuse ownership of OSH implementation. As a one-time-off approach will not be effective, OSH management should follow a PDCA approach. Key words: Occupational Safety and Health management, organizational performance, productivity ii

6 TABLE OF CONTENTS ACKNOWLEDGMENT... i ABSTRACT... ii TABLE OF CONTENTS... iii LIST OF TABLES... vi LIST OF FIGURES... vii LIST OF ACRONYMS... viii 1 INTRODUCTION Background of the Study Statements of the Problem Objective of the Study Significance of the Study Scope of the Study Organization of the Study LITERATURE REVIEW Concepts of Occupational Safety and Health Definition of Hazard and Risk History of Occupational Safety and Health History of Occupational Safety and Health Practice in Ethiopian Occupational Safety and Health Factors Occupational Safety and Health Measurements Impact of OSH Management in the Organization Performance Business Benefits of Occupational Safety and Health RESEARCH METHODOLOGY iii

7 3.1 Introduction Research Design Target Population Sample Size Sampling Procedures Data Collection Instrument Data Collection Procedures Method of Data Analysis Study Variables DATA ANALYSIS AND PRESENTATION Introduction Socio Demographic Characteristics of the Respondents Employee Safety and Health Awareness Measurement Assessment of Availability Personal Protective Equipment s (PPEs) Occupational Safety and Health Management in the Organization Common Safety and Health Problems Employee Face Due to the Nature of their Work Prevalence of Occupational Injuries Behavioral Characteristics of the Respondents Secondary Data Analysis and Presentation Bivariate Analysis of Dependent and Independent Variables RESULTS AND DISCUSSIONS Respondents Demography Employee Awareness on Occupational Safety and Health iv

8 5.3 Occupational Safety and Health Implementation Occupational Injury Characteristics Performance loss in East Africa Bottling Sh. Co. due to injuries CONCLUSION AND RECOMMENDATIONS Conclusion Recommendations REFERENCES APPENDIX A v

9 LIST OF TABLES Table 2.1 Risk assessment matrix example... 9 Table 2.2 Major events in history of OSH Source (WHO, 2001) Table 2.3 Conventions ratified by Ethiopia (Source Takele, 2006) Table 3.1 Staff distribution (source: case company data base 2016) Table 4.1 Gender of respondents (Source: survey data 2016) Table 4.2 Age of respondents (Source: survey data, 2016) Table 4.3 Educational backgrounds of respondents (Source: survey data, 2016) Table 4.4 Work experiences of respondents (Source: survey data, 2016) Table 4.5 Employment Pattern (Source: survey data, 2016) Table 4.6 Employee Safety and Health Awareness level (Source: survey data, 2016) Table 4.7 Level of employee awareness on Safety and health policy (Source: survey data, 2016) Table 4.8 Employees Awareness on their right and obligation (Source: survey data, 2016) Table 4.9 PPEs required for operation staff (Source: survey data, 2016) Table 4.10 OSH implementation in the organization (Source: survey data, 2016) Table 4.11 Sources of injuries (source: survey data 2016) Table 4.12 Behavioural characteristics of employee (Source: survey Data, 2016) Table 4.13 The case company three years occupational injury report (Source: company data base, 2016) Table 4.14 Performance losses in production lines (Source company data base) Table 4.15 Selected Demographic determinant of occupational injuries (Source: SPSS output) 43 Table 4.16 Selected work related and behavioural determinant of occupational injuries Table 5.1 Time lost calculation summary Table 5.2 Yearly performance loss in Birr vi

10 LIST OF FIGURES Figure 2.1 Benefits of OSH Figure 4.1 Reasons not to wear always PPE s (Source: survey data, 2016) Figure 4.2 Frequencies of injuries (Source: survey data, 2016) Figure 4.3 Frequently injured body parts (Source: survey Data, 2016) Figure 4.4 Severity of occupational injuries (Source: survey Data, 2016) Figure 4.5 Case company three years Medical expense (Source: company data base, 2016) Figure 4.6 Frequently affected body parts (Source: company data base, 2016) Figure 4.7 Source of Injuries (Source: company data base, 2016) vii

11 LIST OF ACRONYMS PPE = Personal Protective Equipment ILO = International Labour Organization MOLSA = Ministry of Labour and Social Affairs OI = Occupational Injuries OSH = Occupational Safety and Health WHO = World Health Organization NIC = Negative Immediate Consequences PIC = Positive Immediate Consequences PDCA = Plan, DO, Check, Act SHE = Safety Health Environment viii

12 1 INTRODUCTION The proper implementation of Occupational Safety and Health at work places is equally important to both individuals and organizations and also indirectly to countries. Safe and healthy work environment is one of the parameters that ensures workers wellbeing and contributes positively to the national economies and organizational performance through improved productivity, consistent product quality, employee motivation, job satisfaction and overall improved quality of workers life and society (ILO, 2010). The risk of occupational diseases and injuries has become by far the most prevalent and major health problem (ILO, 2014). According to the International Labour Organization ILO (2014) every day, 6,300 people die as a result of occupational accidents or work-related diseases and more than 2.3 million deaths per year. 317 million accidents occur on the job annually; many of these resulting in extended absences from work. The human cost of this daily adversity is vast and the economic burden of poor occupational safety and health practices is estimated at 4% of global Gross Domestic Product each year. As part of the study on OSH impact on organizational performance on a beverage industry, this section is organized by putting, background of the study, statement of the problem, objectives of the study, scope the study and organization of the study. In the next section, a review of literatures is presented with an in-depth discussion about what OSH means and how it affects organizational performance. The third section contains the methodology used to gather all the relevant information and the analysis used to make the necessary conclusion. Then it is followed by data analysis and presentation which comes before results and discussion. The last section of this research paper is conclusions and recommendations. 1.1 Background of the Study Working people spend most of their daily lives, up to about seventy percent, within a work environment or thinking about their work, which could affect their mental status, actions, abilities and performance (Sundstrom, 1994). As a substantial amount of time is being spent thinking about work or engaged in a work environment, it would be illogical if companies could not work on improving the quality of their employees work life. Chetty (2006) citing the work of McCormick and Sanders (1982) indicated that it has been 200 years since the introduction of 1

13 the concept of ergonomics into a workplace. Though ergonomics does not necessarily mean safety and health, it has a connotation of comfort and wellbeing of individuals. Safety and health of employees in a workplace is called Occupational Safety and Health (OSH) of employees. A report by WHO in 2003 citing the work of James & Lewis (1986) & Selwyn (1982) shows the birth of OSH legal support, which was around 1802 in England. The main aim of the first legislation on occupational safety and health was to protect workers (particularly children and women) against hazards and unreasonable work conditions in, for example, factories and mines. Some writers have indicated that the wellbeing of employees is related with a better performance in their workplace. According to Webb (1989) people perform better when they are physically and emotionally ready to work, which in return leads to higher productivity. Webb (1989) also indicated the benefits of having a convenient and safe work place in terms of level of motivation and performance of employees, which leads to higher levels of employee engagement and reduced degree of error rate, absenteeism and turnover rate. As workers are motivated and engaged in a healthy work environment, poor safety and health in a work environment is costly. Roxanel (2009) on his research on the Irish economy, indicated how much the country is losing due to occupational injuries and illnesses, which was estimated at about 3.6 billion or about 2.5% of the Gross National Product per year. Similarly, he indicated how much Britain spent in 2001/02 on workplace accidents and work-related illnesses, which was estimated to be between 17.1 and The cost does not include the indirect costs that can arise from injury. In Ethiopia, OSH has come to a stage where more and more employers and employees understand their roles and responsibilities in order to ensure hazards at the work places are identified, assessed and controlled. Attention has been given to the case and it is also included in the country s constitution since the 1940s (Takele, 2006). The labour proclamation of Ethiopia on No 377/06 article 92 clearly states the fundamental obligations of an employer with regard to putting in place of all the necessary measures in order to ensure work places are safe, healthy and free of any danger to the wellbeing of workers (MOLSA, 2006). According to a paper published by the Ministry of Labour and Social Affairs of Ethiopia, 2006, manufacturing industry has the most hazardous workplace. That is mainly due to lack of safety 2

14 leadership, the nature of the industry and lack of enforcement of labour proclamation No 377/06 article 92. In Ethiopia, one of the manufacturing industries that is visibly booming is the beverage industry. More and more international companies, like Heineken, Diageo, Sab-miller and Bavarian, are investing in Ethiopia as the country has a good potential for development. According to Tomoda (1993) the beverage industry has a bad records of OSH related issues. A beverage industry has been selected by the researcher to investigate where things are going wrong in safeguarding employees in work related safety and health problems. The company under consideration is a non-alcohol beverage manufacturing company. At a later stage of this research paper, the details of the findings are presented and the expected next steps of the company are also indicated. 1.2 Statements of the Problem The beverage industry is one of the manufacturing industries that are expanding very fast in Ethiopia. In Ethiopia, in addition to the well-known companies like Pepsi, Coca Cola, Heineken, Diageo and Sub Miller, there are more than handful of water bottling companies, juice producing companies and other carbonated beverage producing companies; both local as well as international. Some of the reasons that international markets are being interested to invest in Ethiopia is, as the government calls it cheap and abundant labor, big population and a growing economy. Like other developing countries in the World, the boom in the manufacturing industry brings risks associated with the workplaces. Eijkemans (2004) wrote how developing countries are particularly being affected by higher injury rates as a large part of their population has no choice but to engage in dangerous activities to earn their living. Some of the risks associated with the beverage industry, which is typically high paced, demanding, involving relatively complex machineries with conveyors covering large areas and with high rate of human intervention and manual handling include: - hit by exploding bottles - cut when handling broken bottles - getting caught in a moving part of a machine, like conveyors 3

15 - back sprains during manual handling of raw materials or finished products - hearing impairment due to high noise levels - hit by a forklift or other trucks - burns when handling chemicals and others - slips and trips due to wet floor and disordered items Motbainor (2007) indicated lack of clear approaches on how to manage OSH, inadequate accident and disease recognition, poor recordkeeping and reporting mechanisms in Ethiopia have led to a rise in work related injuries. In the beverage company considered, there is a thinking that injuries would be prevented by using PPEs. However, PPEs can only prevent a very small proportion of work related injuries; majority of injuries can be prevented by safe behaviors, which includes a behavior of PPEs usage whenever handling tasks that require PPEs. Injuries affect injured individuals and family and friends and companies, with high injury rates, in addition to a bad reputation in the market lose their capacity due to the injury and the trauma. Currently, even international beverage companies are seen struggling to fully implement OSH and create a zero injury environment, which means there is a need to see in depth why it has become challenging to sustainably implement OSH and create a zero injury environment. East Africa Bottling Sh. Co., with relatively longer experience in the Ethiopian market, will be considered to look how OSH practices are implemented in a relatively advanced beverage industries. To investigate more about OSH practices in this beverage industry and its impact on performance, the research answers the following questions: What are the existing OSH practices in East Africa Bottling Sh. Co.? Who is being affected most by the existing OSH practice the company? What are the gaps in OSH implementation in East Africa Bottling Sh. Co? How is the organizational performance being affected due to injuries? 1.3 Objective of the Study General Objectives The main objective of the study is to investigate the impact of occupational safety and health management practices on organizational performance in East Africa Bottling Sh. Co. 4

16 Specific Objectives To assess the existing occupational safety and health management practices. To identify major safety and health problem employee encountered due to the nature of their work To assess the gaps in occupational safety and health implementation To assess the impact of work place of injuries on the organization performance 1.4 Significance of the Study This study will be used as an input for top managers for evaluation of their existing safety policy, procedures and practice by understanding the impact of occupational safety and health on the organizations performance. In addition, it gives a suggestion for the concerned policymakers to examine the impact of occupational safety and health on the organizations performance. Besides, it can be used to other interested researchers as a reference. 1.5 Scope of the Study This study was conducted on the production and warehousing departments of the East Africa Bottling Sh. Co. These departments represent majority of shop floor workers who are engaged in routine labour intensive activities. East Africa Bottling Sh. Co. is located in the capital city of Ethiopia, Addis Ababa. The study covers identification of work related injuries and illness, time lost due to injuries, related expenses and finally suggest improvement approach for a sustainable implementation of OSH. The time scope of the study is nine months; i.e. from September 2015 to June Organization of the Study With the above brief introduction, the remaining part of this research is organized as follows. Chapter two presents review of literature, chapter three presents methodology and chapter four data presentation and analysis, chapter five result and discussion and chapter six conclusions and recommendation. 5

17 2 LITERATURE REVIEW The literature review of the study has been organized into five main parts, namely concepts of OSH, OHS history, OSH measurement, OSH factors and effect OSH management on organization performance. 2.1 Concepts of Occupational Safety and Health The literal meaning of safety and health of people implies the wellbeing of people at a certain setting. World health organization (WHO, 1999) define occupational health as state of complete physical, mental and social wellbeing and not merely the absence of disease or infirmity, to achieve this it need preventing ill-health, controlling risks, and generally creating high quality work environment for the workers. The above WHO definition consistent with the international labour organization (ILO, 1996) definition which stated as: Promotion and maintenance of the highest degree of physical, mental and social well-being of workers in all occupations; Prevention among workers of adverse effects on health caused by their working conditions; protection of workers in their employment from risks resulting from factors adverse to health; Placing and maintenance of workers in an occupational environment adapted to physical and mental needs; and Adaptation of work to humans. In general safety means freedom from the occurrence or risk of injury or loss. According to Lucas, (2001) work place safety is the protection of workers from the danger of industrial accidents and also referred to as the absence of injuries due to the interaction of the employee and the work environment. In a general perspective, safety means a condition of being safe from undergoing or causing hurt, injuries or loss. The term health means a state of complete physical, emotional, mental, and social ability of an individual to cope with his environment, and not merely the absence of disease or infirmity (Hippocrate, 1981). Lucas, (2001) also define health is the art and science of preventing disease, 6

18 prolonging life, promoting physical and mental health, sanitation and personal hygiene, control of infections and organization of health services. A healthy workplace also defined by WHO, (1999), it is one in which workers and managers collaborate to use a continual improvement process to protect and promote the health, safety and well-being of workers and the sustainability of the workplace by considering the following identified needs: Safety and health concerns in the physical work environment; Health, safety and well-being concerns in the psychosocial work environment including organization of work and workplace culture; Personal health resources in the workplace; and Ways of participating in the community to improve the health of workers, their families and other members of the community. Work place safety and health should be managed well by taking as one part of organization core activities. Proper management of occupational safety and health will help to improve the performance of the organization and to achieve high profit. (WHO, 1999) Organizational health refers to an organization s ability to achieve its goals based on an environment that seeks to improve organizational performance and support employee well-being Organizational health is made up of two aspects; employee well-being and organizational performance. Although they are independent variables, they influence each other and gain from each other. This in turn affects the organization s ability of achieving its goals through the interaction between these two variables (Alman, 2010). Employee Well-being It refers to the structures in an organization which address matters relating to employee satisfaction and employee health (physical, mental and social) improvement. The aim of employees health is the promotion and maintenance of the highest degree of physical, mental and social well-being of workers by departure from health and controlling risks (ILO & WHO). These aims highlight three aspects, these include: Well-being described as physical, mental and social 7

19 Well-being involving the promotion, maintenance and prevention of departures The controlling of risks that could interfere with the well-being of workers Currently, occupational safety and health activities are an essential part of business and according to the World Health Organization WHO (1995) it is employers who carry the primary responsibility for health at work. 2.2 Definition of Hazard and Risk Hazard is the inherent potential to cause injury, harm or damage to worker s health. It can come from many sources, for example intrinsic properties, situations, potential energy, the environment or human factors and risk is the likelihood that a worker will be harmed or experience adverse health effects or that property will be damaged if exposed to a hazard.the relationship between hazards and risks is dependent on the nature of the exposure, including the length of time and intensity, and the effectiveness of control measures. The basic process of hazard and risk reduction is the core principle governing OSH. For all areas of human activity, a balance has to be struck between the benefits and the costs of risk-taking. In the case of OSH, this complex balance is influenced by many factors, such as scientific and technological progress, changes in the working environment and economic trends. (Burton, 2010; ILO, 2014) Risk Assessment The essential purpose of OSH is to prevent occupational accidents, injuries and diseases by managing occupational hazards and risks. Procedures for hazard identification and risk assessment have to be conducted to identify what could cause harm to workers and property and the environment, especially the working environment, so that appropriate preventive and protective measures can be developed and implemented. The five-step generic risk assessment steps are listed as shown below :( ILO, 2014) Identify the hazards Identify who might be harmed and how Evaluate the risk identify and decide on the safety and health risk control measures Record who is responsible for implementing which control measure, and the time frame Record the findings, monitor and review the risk assessment, and update when necessary 8

20 Identified risks should be assessed using a risk methodology, for example using the below a risk matrix, to determine the level of risk on the basis of the probability of occurrence and the seriousness of the consequences. Assessment of occupational risks is a crucial element in selecting effective preventive and protective measures to plan and organize work and to reduce exposure to hazards. (United Kingdom Safety and Health Commission, 1993) Table 2.1 Risk assessment matrix example Probability(lik elihood) of Potential severity or consequences of an event Slightly harmful Moderately harmful Very harmful Low probability Low risk Low risk Medium risk Probable Low risk Medium risk High risk Highly probable Medium risk High risk High risk Principle of Prevention According to Burton, (2010) and ILO, (2014) preventive principles involve combating risk at the source, adapting work to the individual especially in the design of workplaces and replacing the dangerous by the non-dangerous or the less dangerous. Prevention should take precedence over protective the principle of preventive measures, while personal protective equipment (PPE) is considered a last resort when exposure to risks cannot be prevented, minimized or eliminated. Prevention principles are based on collective, rather than individual, preventive methods with the following sequence or hierarchy of collective risk control measures such as elimination, substitution, isolation, technical or engineering control and organizational measures Technical control measures could include automation, closed systems, ventilation, local extraction and encapsulation of the workplace. The choice of working methods and tools also has a major impact on the level of exposure and organizational measures could include separating a workplace from other workplaces, appropriate maintenance of equipment, provision of special instructions and limiting working time on a job. In addition use of PPE depends upon human response and should only be used as a sole measure when all other options have been exhausted. It should be: Properly assessed before use to make sure it is fit for purpose; Maintained and stored properly; 9

21 Provided with instructions on how to use it safely. 2.3 History of Occupational Safety and Health Every major religion and philosophy since the beginning of time has stressed the importance of a personal moral code to define interactions with others. The most basic of ethical principles deals with avoiding doing harm to others this is moral and legal obligation of the employer. Working to have healthy workplace that does no harm to the mental or physical health, safety or well-being of workers is a moral imperative (ILO, 1995). Long history of major and frequent accidents at workplaces such as; disasters in mines, explosions and fires at workplaces and buildings that collapsed all with a high death toll Bohle et al. (2000) created the first awareness of the importance of OSH. As this realization that working conditions could influence health and cause health problems emerged, the introduction of OSH legislation began. It was argued that an employee should have the right to a safe and healthy work environment and that poor OSH resulted in costs for both the state and the employer (Drake; Wright, 1983). The first legislation was developed in England in 1802, which was later followed by many other developed countries, to protect workers (particularly children and women) against hazards and unreasonable work conditions in, for example, factories and mines by report by WHO in 2003 citing the work of James & Lewis (1986); Selwyn (1982) and to compensate workers for injuries (Smith et al., 2003). Costs and other issues related to occupational accidents and illnesses induced governments to continue introducing laws and policies to protect the working population. This legislation led to more OSH practices, but also to lawsuits and jurisprudence about compensation claims (Schabracq et al., 2003). Coming some 140 years after the Factory Act of 1833, the Robens Report was a genuine watershed, enabling the modernizing Act of 1974 to introduce a fundamentally different, less prescriptive regulatory system based on general goal-setting duties in a framework supported by regulations, codes of practice and guidance, all developed in an open, consultative process with stakeholders whereby employers and employees could become co-operatively engaged in self-regulation. The below table show summary of major OSH events. (WHO, 2001) 10

22 Table 2.2 Major events in history of OSH Source (WHO, 2001) Major OSH events Health and Morals of Apprentices act, 1802 British Factory Act 1833 Factory Act of OSHA Act 1970 Industrial Safety Act of 1964 Major effects Covered textiles mills with Poor Law apprentices only It were intended to provide compensation for accidents rather than to control their causes. The first industrial safety legislation that fit the definition of factory were included. Health care organizations, however, were not covered by OH&S legislation until OSHA develops and sets mandatory occupational safety and health requirements For the first time, the safety of the worker was its focus. Safety was defined as freedom from injury to the body or freedom from damage to health. Despite the focus on workers safety, workers were not given any opportunity to participate in developing or enforcing the law until 14 years later. Occupational Safety & Health Act of 1980 Workplace Safety and Insurance Act 1997 (Bill 99) In brief, the passage of the Occupational Safety and Health Act (OHSA) in 1980 gave workers the right to participate in occupational safety and health, the right to know about on-the-job hazards and the right to refuse work that they believe to be unsafe this legislation still includes provisions for compensation to workers whose injuries or illnesses are caused by their work History of Occupational Safety and Health Practice in Ethiopian The attention to occupational safety and health have been given legal basis in Ethiopia since 1940s when the first legal instrument Proclamation No. 58/1945 was promulgated. The bases of this legislation was a result of the introduction of industrialization that took place in the country. This 11

23 legislation was framed itself on the basic principles underlined by the two notable ILO conventions on Labour Inspection. A more comprehensive legislation on occupational Safety and Health management replaced this in 1964 i.e. Proclamation 232/1964 in order to address the change occurred. All the laws of that period were adopted from most of the European countries especially of the British taking in to account of the prevailed condition of the country s industrialization and the pre maturity of the development of Labour administration system, recently the country has specific OSH related rules under the Labour proclamation number 377/06 article 92 which clearly stated fundamental obligations of an employer with regard to putting in place of all the necessary measures in order to ensure, work places are safe, healthy and free of any danger to the wellbeing of workers. In addition Ethiopia has been a member state of the ILO since 1923 and has ratified 19 conventions which stated in below Table 2.1. According to labor proclamation No. 377/2003, the Ministry of Labor and Social Affairs of Ethiopia is the organ charged with the responsibility to inspect labor administration, labor conditions, occupational safety and health (Takele, 2006) Table 2.3 Conventions ratified by Ethiopia (Source Takele, 2006) No. Convention Date of Ratification 1 Unemployment convention No.2/ Rights of Association (agriculture) conv11/ Weekly rest (Industrial) Convention No.14/ Freedom of Association and protection of the right to organize conv / Employment service conv. No 88/ Fee-charging employment agencies Conv. No. 96/ The right to organize and bargain Collectively Convention No / Equal remuneration Convention No. 100/ Abolition of forced labour No.105/ Weekly rest commerce Convention No. 106/ Discrimination(employment) Convention No. 111/ Minimum age convention No. 138/

24 13 Occupational safety and health and working environment Convention No 155/ Workers with family responsibilities /equal opportunity & treatment/ Convention No. 156/ Termination of employment /employers initiative / Convention No / Vocational rehabilitation and employment /disabled persons/ Convention No 159/ Private employment agencies convention No. 181/ Forced labour convention No. 29/ Worst forms of child labour No. 182/ Occupational Safety and Health Factors The effectives of occupational safety and health management depends on some of the following factors such as organization safety and health culture, way of OSH management system, management commitment Organization Safety and Health Culture Safety and health is incorporated with other disciplines of industrial Good Manufacturing Principles (GMP) that affect employees, product quality and other related persons at workplace. Even though, there is considerable working place improvement in recent times, but occupational accidents still occur (ILO, 2014). The prevention of work related injuries and illness still remains as a major problem faced by all employers. Every organization has some common internal characteristics that identified as its culture. These characteristics have often become invisible to those inside, but may be startling to outsiders coming from a different culture. Safety and health culture within a company is closely linked to the workforce s attitudes in respect to safety as they share the company s risk, accidents and incidents. According to ILO (1995), effective safety management is both functional and humanistic. The role of management and the involvement of all employees as important key players in safety and health culture are important in order to cultivate the positive beliefs, practices, norms and attitudes among all in the company. Building a safety culture on so many diversities is not an easy task. But it had been proven that companies with good safety and health cultures have employees with positive patterns of attitude towards 13

25 safety and health practices. Companies with good safety and health culture have shown improvement on reducing work place injury and illness. Way of Occupational Safety and Health Management System There are different occupational safety and health management systems which affect the effectiveness of safety and health management such as safe person control strategy which is the prevention strategy focused on the control of employee behavior, safe place control strategy which is prevention strategy focused on the control of hazards at source through attention at the design stage and application of hazard identification, assessment and control principles. On the other hand traditional management is the key persons in safety and health is the supervisor and/or any OHS specialist it has a low level of integration of safety and health into broader management systems and practices (for example, integration of OHS within general procedures or inter functional activities). Employees may be involved, but their involvement is not viewed as critical for the operation of the OHSMS, or alternatively a traditional safety and health committee is in place. (Erickson, 2000). At last innovative management is senior and line managers that have the key role in safety and health which has a high level of integration of safety and health into broader management systems and practices (which connect OHS to business planning, or quality/best practice management initiatives), in this case employee involvement is viewed as critical to system operation and there are mechanisms in place to give effect to a high level of involvement (Erickson, 2000). OSH management systems may also provide a means for assessing and improving organization safety and health through the management of occupational hazards and risks. They can be based on the principle of the plan-do-check-act (PDCA) approach, designed to continuously monitor performance. (Burton, 2010) (1) Plan involves the setting of an OSH policy, including the allocation of resources, acquisition of skills and organization of the system, and hazard identification and risk assessment. (2) Do refers to the actual implementation and operation of the OSH programs. (3) Check means measuring both the active and reactive performance of the OSH implementation in the organization. 14

26 (4) Act closes the cycle with a review of the system for the purposes of continual improvement and priming of the system for the next cycle. The PDCA approach supports the implementation of OSH management systems in organizations by helping them to adapt on changing circumstances and make continuous safety improvements and the PDCA principles can be applied to OSH management, assignment of responsibilities, demonstration of skills and competence, and compliance with safety regulations on board ships. ILO documentation and other industry guidance provide information on detailed risk-assessment procedures. The principles and systems described above apply to all workplaces. Occupational risk-assessment processes are essential to OSH laws, regulations and other guidance whose ultimate objective is to protect the safety and health of workers. To ensure continuous improvement in safety, the competent authority should ensure the development of OSH management systems and riskassessment procedures to provide a safe occupational environment for workers. Management Commitment Proper implementation of occupational safety and health make business successful. Employers and supervisors have legal and moral responsibilities to assure the wellbeing of workers at working place. They have significant role for proper implementation of OSH policies and practices to get everybody attention and to develop the proper OSH culture. Research shows that the way in which safety and health is led and integrated into an organization can impact significantly on wellbeing at work (EU-OSHA, 2012).Commitment of senior managers is essential in order to sustain the proper OSH culture (Erickson, 2000). Without such commitment, failure will follow. Commitment is demonstrated by the value that employees can see their senior managers assign to safety. Safety should be prioritized over other competing goals. Leaders need to be visible at the worksite and authentic in their safety behaviour. They need to act as role models who consistently live the corporate safety policy and lead by example (HSE, 2005). They should allocate sufficient manpower and financial resources to safety, safety and health training and support to employees. They should provide and use sufficient opportunities to communicate safety messages (HSE, 2005). If leaders can generate enthusiasm for OSH among employees, it can help them implement their vision and shape a new culture. Erickson (2000) states 15

27 that the safety performance of employees is higher if there is a congruence between management s values and those of the employees. 2.5 Occupational Safety and Health Measurements To determine the impact of OSH on organizations it must be understood how OSH is measured and how organizational performance is measured. Several common standards for OSH measurement are described in this section. According to Lamm et al. (2007) OSH literature can be classified into ergonomics, health, economics, environmental medicine, sociology, law and economics and literature with a multidisciplinary approach. These can be reduced to human resource (HR) related (indirect financial and productivity) aspects of OH&S (ILO, 2010). HR Related and Tangible Measurements The traditional measurements of OSH are related to the employees (the human resources) and to the objective and tangible indicators of OSH: statistics and the direct costs. These traditional HR related measurements often measure the tangible cost of safety and health of the past. Nonetheless, these concrete measurements can stand alone, or they can be included in the economic evaluation of OH&S. The first method to measure the effects of OH&S management is to use the data of accidents, illnesses and injury rates of the organisation (Taylor et al., 2003). Given that OSH management should reduce accidents and injuries, these can be counted to evaluate the progress of OSH. This can be calculated by incident rate, frequency and the average time lost rate (CCH, 2001) The second tangible HR related measure of OSH relates to absenteeism and turnover. These measurements need more explanation: absenteeism relates to the failure of employees to attend work on a given day; turnover is the decision of workers to terminate their employment (Wood et al., 2001). It is known that absenteeism and turnover can be used in OSH evaluation (Taylor et al., 2003). Moreover, absenteeism and turnover influence productivity and sick pay costs as well (Doke, 2004).In addition, absenteeism can be calculated by the number of days absent per employee, average number of days lost per absence or the average absence frequency rate. 16

28 HR Related and Intangible Measurements Besides the tangible measurements (costs and statistics), there are also intangible HR related indicators and are related to the hidden costs of OSH. These measurements can stand alone or can be clustered as part of the productivity assessment. The most mentioned intangible measurements in the literature are: performance (physical aptitude to carry out tasks), wellbeing (physical and mental health of the employee), motivation (mental drive and enthusiasm to work) and job satisfaction (the enjoyment in an occupation) (Clements-Croome&Kaluarachchi, 2000). To start with, performance relates to the perceptions of the employee of the level of load they are facing in task performance. For example, workers can report changes in their workload (a high perceived workload corresponds to poorer performance) and their work output. It is pointed out that good health is associated with better performance (Clements-Croome&Kaluarachchi (2000) and that ill health affects performance, hence performance measurement is important to measure the OSH effects. Secondly, it could be presumed that the effectiveness of OSH could be indicated by motivation. For example, it is found that paying attention to safety and health can influence employees motivation (Foster, 2000). The WHO (2002) also suggests that OSH can work as a reward or benefit to motivate employees. Thirdly, employees productivity also depends on well-being Clements-Croome&Kaluarachchi (2000); it is assumed that if a person s well-being is high, the work output (productivity) is high as well. In addition, healthy employees could reflect the presence of OSH management. Measuring well-being can be done by identifying predictors of well-being and then compare these predictors against the perceived perception of employees. A variety of techniques are available for this: interviewing, focus group sessions, questionnaire administrations and medical examinations. Fourthly, job satisfaction is seen as one of the links for OSH effectiveness Gyekye (2006) and influences absenteeism Ho (1997), turnover and job performance as well (Wood et al., 2001). Therefore, the measurement of job satisfaction is important for OSH. To assess employees satisfaction the most common method relies on employees self-report. Also, a standardized and widely used method to evaluate job satisfaction is the Job Descriptive Index (JDI). Furthermore, with an employee survey (using questionnaires, interviews or focus groups), job satisfaction can be measured over time (De Cieri&Kramar, 2003). 17

29 Organizational Measurements Organizational measurements relate to output measures, which is also an indicator of OH&S; the quantity and quality of work performance achieved (Wood et al., 2001). Examples of measurements are: sales per employee, output divided by labour input or the time required to produce products. This can be assessed objectively by dividing the outputs by the inputs of a job. It can be measured at individual, unit or organizational level and it is suggested that this can be applied for all types of jobs. The outputs relate to the goods and services produced that are usable, saleable and of good quality. The inputs relate to the resources consumed in producing the goods and services of a firm. Productivity can also be measured with survey instruments and questionnaires. Since OH&S correlates to productivity De Cieri&Kramar (2003), productivity measurement is useful as it objectively measures the effect of OH&S management. Economic Measurements OSH management primarily relates to costs, for example, the averted and real costs of accidents and illnesses, the costs of productivity losses, but also the expenditures for preventions Taylor et al. (2003), hence the key measurements are the monetary measurements. There are several approaches to the economic appraisal of OSH: the cost-effectiveness analysis, the cost-benefit analysis and studies that calculate the total costs incurred by work-related illnesses and accidents (Wynne, 1997). These methods are mostly related to the future costs and savings of OSH management. In a cost-effectiveness analysis the outcomes of an intervention are balanced against the costs of non-intervention (Wynne, 1997). This is applied to maximise the return from a certain budget and is measured in physical units (e.g. injuries averted and life years gained). Although, it is hard to estimate the future OSH savings, there are some ways to attempt to measure these savings: the reduced work output of an injured employee can be estimated; the level of the employer s willingness to pay for OSH measures can be estimated; the average monetary value of averted ill-health can be measured by the average value of every insurance policy. Despite the fact that it is difficult to measure the valuation of life and ill-health in monetary costs, these measures are useful to provide insight in the saved (averted) costs associated with OSH management. 18

30 2.6 Impact of OSH Management in the Organization Performance Many writers mentioned on their paper that there is significant correlation between OSH management and organizational performance. In order to get this benefit it is vital to involve workers in preparation OSH policy and procedures. Lim (2012) in his literature stated that when workers understand the safety and health rules and procedures of their job, it helps them to work effectively and efficiently resulting in better performance of employees. Supportive of this fact is the opinion of Akpan (2011), that employee s participation in decision making fosters corporate citizenship (belongingness), cordial management employees relations and high level of commitment to goal attainment. Maintaining effective safety and health management system and policy in organization can tremendously reduce the occurrence and level of safety and health hazards, as well as costs associated with them. Such firms would not incur much hospital bills and salaries for the hospitalized workers, or compensation to families of employees involved in work place accident or health hazards. It is important to note that incurring much of such bills and expenses can subject an organization to negative economic and profitability condition, hence decreasing its competitive advantage position in the marketplace. It is also stated on the literature provided by the Australian National Commission for Safety and Health (2002) on the benefit of promoting safety and health in organizations indicated that when employees are provided with safe working environment through the use of effective occupational safety and health management systems, it reduces employees absenteeism and this has direct effect on increase in productivity which the end result will be increase in profitability for the organization. Management commitment in providing very safe workplace and procedure serve as indication of employer s concern to employees safety, to enable them reach their highest potentials in the organization. This condition can help to reduce union grievances due to high exposure of workers to occupational hazards and accidents. Organizations with effective safety and health policy tend to have good corporate image, capable of attracting potential investors and customers.. A research provided by Ward et.al. (2008), support this idea, organizations which have management commitment enjoying direct benefit of occupational safety and health. To them in an organization where employees within feel that management cares for them, there is an indication of positive management of occupational safety and health system and as such results in safer working 19

31 practices and also have positive impact on employee outcomes.such condition can also help in attracting and maintaining competent and safety-conscious workforce, therefore, helping to boost competitive position of the organization, by way of contribution to increased performance, quality output and efficiency Business Benefits of Occupational Safety and Health According to the report by European Agency for Safety and Health, (2007) Occupational Safety and Health (OSH) is an advantage for business as well as being a legal and social obligation. Enterprises appreciate that OSH prevents people from being harmed or made ill through work, but it is also an essential part to make a business successful. Some of the benefits of OSH shown on the below diagram. Investor confidence Brand value and goodwill Winning and retaining business customers Lower costs of accidents and illness Benefits of OSH Corporate social responsability Managed insurance costs Productivity Employrr motivation and commitment Figure 2.1 Benefits of OSH (Source: EASH,2007) On the same leaflet it was mentioned that every enterprise can enjoy significant benefits by investing in OSH. Simple improvements can increase competitiveness, profitability and the motivation of employees. The implementation of an OSH management system provides an 20

32 effective framework to prevent or minimize accidents and ill health. The cost of accidents at work and occupational diseases in the EU-15 ranges from 2.6% to 3.8 % of gross national product. As well as reducing accidents and ill health, production and efficiency benefits can follow as a result of: Enhancing the levels of motivation, cooperation and morale in the workforce, More productive workers and more efficient working methods, Minimizing unplanned costs through effective business continuity planning, improving the quality of employee recruitment and retention, Cutting insurance premiums, and reducing the potential exposure to criminal or civil litigation. Returns on investment as high as 12:1 (EUR 12 profit for every EUR 1 invested) can be achieved through investing in good OSH. Summery From the literature review presented above, the safety and health management is identified as it is a factor of organizational performance. The chapter outlined various concepts which links safety and health to the productivity and organizational performance. It also showed poor OSH management practice has direct and indirect impact on the productivity and organization performance. The methods of measuring of OSH performance have some common parameters to the organization productivity measurement. Good performance of safety and health management, reflected by organization productivity through the reduction of injury, illness, death, compensation costs and the suitability of the environment for human activities. 21

33 3 RESEARCH METHODOLOGY 3.1 Introduction This chapter describe the methods and procedure used to collect and analyze data in order to study the impact of occupational safety and health in East Africa Bottling Sh. Co. It covers the research design and methodological procedures that was used in data collection and analysis. The coverage includes the research design, location of the study, population of study, sampling procedure and sample size, instrumentation, data collection, and data analysis. 3.2 Research Design This study employs a descriptive research design to agree on the effects of occupational safety and health programs on employee performance in East Africa Bottling Sh. Co. Saunders (2009) says that descriptive research portrays an accurate profile of persons, events or situations. This design offers to the researchers a profile of described relevant aspects of the phenomena of interest from an individual, organizational and industry-oriented perspective. It presents data in a meaningful form that helps the researchers to understand the characteristic of a group in a given situation, to think systematically about aspects in a given situation, offer ideas for further research and helps to make certain simple decisions. Miller's (1991) descriptive research is the process of collecting data in order to answer questions concerning the current status of the subject study. Therefore, the design enabled the researcher to gather data from a wide range of respondent on the effects of OSH on organization performance. 3.3 Target Population According to Fraenkel and Warren (2002), population refers to the complete set of individuals (subjects or events) having common characteristics in which the researcher is interested. The target population of this study includes both manufacturing and logistics department shop floor workers, machine operators and maintenance teams of East Africa Bottling Sh. Co. Totally the company has more than 1000 worker, from which 160 employee are work in these selected sections of the company. 22

34 3.4 Sample Size A simple random sampling method was used to select respondents for the study. Simple random sampling ensures that each member of the population has an equal chance for selection. A sample of 112 employees was derived. The determination of the sample was done using Cochran's (1977) formulas. In Cochran's formula, the alpha level is incorporated into the formula by utilizing the t-value for the alpha level selected (for example, t-value for alpha level of 0.05 is 1.96 for sample size above 100). For categorical data, 5% margin of error is acceptable (Krejcie& Morgan 1970). Cochran's sample size formula for categorical data is: t n 2 ( p)( q) 2 ( d ) (0.5)(0.5) n = (0.05 ) Where: n = the desired sample size t 2 = value of selected alpha level of.025 in each tail =1.96 (the level of.05 indicates the level of risk the researcher is willing to take. True margin of error may exceed the margin of acceptable margin of error (p)(q) = estimate of variance = 0.25 (p-maximum possible proportion (.5)* 1- maximum possible proportion (.5) produces maximum possible sample size) d= acceptable margin of error for proportion being estimated =.05 (the error the researcher willing to accept) Therefore, for a population of 160, the required sample is calculated as follows: 23

35 n n f, where nf is the target sample size 1 n population 384 n f = Sampling Procedures The study applied stratified random sampling in order to achieve the desired representation from the various employees' subgroups in the population. The subject was selected in such a way that the existing subgroups in the population are more or less reproduced in the sample. After sampling at each subgroup, simple random sampling proportional to size based on the relative number of employees in each department was used. A sample should be optimum; fulfils the requirements of efficiency, representativeness, reliability and flexibility (Kothari, 2004).Proportionate allocation was used by sampling fraction in each of the strata that is proportionate to that of the total population. Table 3.1 Staff distribution (source: case company data base 2016) No. Department category Competence Total number of staff Sample size 1 Manufacturing Production crew *(112/160)=7 2 2 Manufacturing Machine operators 3 Manufacturing Engineering Logistics Warehouse Total Data Collection Instrument Basically two primary data collection instruments were used.these are observation and questioners; open and closed ended questionnaires was prepared with Amharic version and the 24

36 concepts were taken from occupational safety and health guidelines, standards and other studies with some modification. According to Kothari, (2004) the questionnaire method is the most suitable tool for collecting data. It is economical in terms of time and cost compared to other methods. The Questionnaires facilitated easy and quick responses within a short period. In addition, it gave respondent freedom to express their views or opinions and to make suggestions. 3.7 Data Collection Procedures The study relied on primary data using a questionnaire, which was administered by giving orientation and explanation for selected respondent about the purpose of the questioner with help of the supervisors and collecting the paper on the box to give confidence for the respondents. The study also relied on secondary data from the company three years monthly accident report, performance loss and other relevant data. Questionnaires were distributed to the sampled population by the researcher for filling by the respondents. The questionnaires are simplified as much as possible so that all respondents have a clear meaning of each of the question. 3.8 Method of Data Analysis The collected data was cleaned, entered and analyzed using SPSS for Windows ver 20. Descriptive statistics, binary logistic and multivariable logistic regression analysis were applied to see the effect of predictor variables on the frequency of occupational injuries. 3.9 Study Variables Dependent variable: occupational injuries resulted in working days lost and hospitalization. Independent variables: 1. Socio demographic factors: Sex, age, educational level, work experience and employment pattern. 2. Work environment factors: work place safety, workplace supervision, safety and health training, employee awareness on their right and obligation. 3. Behavioral factors: alcohol use, chat chewing, job satisfaction and personal protective equipment. 25

37 4 DATA ANALYSIS AND PRESENTATION 4.1 Introduction This chapter analyze and presents the views of respondents which were selected to find out the effects of safety and health practices on organizational performance of beverage industries. Primary data was collected through questionnaires and observation of the researcher and was aimed at addressing the objectives of the study, which were To assess the existing occupational safety and health management practices. To identify major safety and health problem employee encountered due to the nature of their work To assess the gaps in occupational safety and health implementation To assess the impact of work place of injuries on the organization performance In addition to the primary data, a secondary data was also collected which contains a three year trend of work related injuries and time lost in treating those affected by it. The data collected is presented at the end of this chapter. It starts with background information of the respondents and covers all parts of the questionnaire; including safety knowledge of respondents, implementation of safety practices and occupational injury severity. 4.2 Socio Demographic Characteristics of the Respondents In this section the background information the respondents were presented by mentioning the importance of the collected data. It includes the respondents gender, ages, educational back ground, work experience and employment patter. Gender of Respondents The respondents were asked to indicate their gender by writing the appropriate category they belonged. The purpose was to find out the number of males and females who actually participated in the study. Table 4.1 shows that out of the 106 respondents who participated in the study, majority (99) of the respondents representing 93.5% were males, while the remaining 7 respondents representing 6.6% being females. 26

38 Age of Respondents Table 4.1 Gender of respondents (Source: survey data 2016) Gender Frequency (N) Percentage (%) Male % Female 7 6.6% Total Table 4.2 indicates the age distribution of respondents who participated in the study. The purpose was to find out the average age of the employees who are actively involved in the operations within the organization and the relationship of age with work related illness and injury. A closer look at the table shows the maximum difference between the three age groups is 11.3%, with the highest being the 18 to 25 years age group with 38.7% share. The mean (+SD) age of survey respondents was (+7.47) years while the minimum and maximum age are 19 and 56 respectively. Table 4.2 Age of respondents (Source: survey data, 2016) Age groups Frequency (N) Percentage (%) 18 to to and above Total Educational Background of Respondents The respondents were asked to indicate their educational background. The purpose was to find out the educational/academic qualifications of employees and its relationship with work related illnesses and injuries. Table 4.3 shows most respondents were high school graduates with 42.5% of the total respondents Table 4.3 Educational backgrounds of respondents (Source: survey data, 2016) Educational status Frequency (N) Percentage (%) Elementary (1-8) High school complete(9-12) college and above Total

39 Working Experience of Respondents Table 4.4 indicates the working experience of employees who participated in the study. The objective was to determine how long and consistent employees have worked in the organization and the relationship of experience with work related illnesses and injuries. The data gathered shows majority of the respondents, representing 56.6%, have worked between 1-3 years in the organization. The mean (+SD) of years of work experience of the respondents was 6.07 (+8) years while the minimum and maximum years of work experience was 1 and 38 respectively. Table 4.4 Work experiences of respondents (Source: survey data, 2016) Work experience Frequency (N) Percentage (%) 1-3 years years years and above Total Employee Employment Pattern The respondents were asked to select their employment pattern either permanent or temporary. The purpose was to find out the employment status of employees and its relationship with work related illnesses and injuries. Table 4.5 shows most respondents were permanent with 85.8% of the total respondents. Table 4.5 Employment Pattern (Source: survey data, 2016) Employment Frequency(N) Percentage (%) pattern Permanent Temporary Total Employee Safety and Health Awareness Measurement This section present and analyse data collected on the awareness level of employee on occupational safety and health. The variables studied here include: employee participation on safety and health training, level of employee awareness related to OSH policies and their knowledge about work 28

40 place safety and health workers rights and obligations. The result collected from the respondents have been presented in Tables 4.6 to 4.9 Safety and Health Training For employees to comply with safety and health regulations of a company and to take these matters seriously, they must be provided with relevant training and education. The research outputs observed in Table 4.6 reveal that majority, 64.1%, of respondents have received training or attend workshop or seminar on safety and health requirements of their workplace. However, 35.9% of respondents reported having no training on safety and health requirements of their workplace. Since a significant number of employees have not trained in safety and health requirements, they would not know the importance of observing safety and health rules and therefore may not take the necessary precautions to safeguard them self and others from safety and health hazards. It is also mention on several studies that employee which were not taken adequate OSH training they have high chance to expose to work place injury and illness (Chetty, 2006) Table 4.6 Employee Safety and Health Awareness level (Source: survey data, 2016) The company organize training, Frequency(N) Percentage (%) workshop and seminar on OSH? Totally disagree Disagree Indifferent Agree Totally agree Total East Africa Bottling Sh. Co. has a comprehensive occupational safety and health policy which was available in the company data base and it was also posted in the compound on the big banner. However, the collected data observed in Table 4.7 reveal that 18.1% of the respondents did not know the existence of the company s safety and health policy. From those that report to have known the existence of the company s safety and health policy 42.5% of the respondents did not know or remember the contents of the policy and also indicated the absence of some form of document that they can refer whenever necessary. 29

41 Table 4.7 Level of employee awareness on Safety and health policy (Source: survey data, 2016) Totally Disagree Indifferent Agree Totally Total disagree agree Statements N (%) N (%) N (%) N (%) N (%) N (%) The company has safety and health policy? I know the content of the company policy. It is also available near to my work place or in book form? 2 (1.91) 17 (16) 1 (0.9) 40 (37.7) 46 (43.4) 106(100) 7 (6.6) 28 (26.4) 10 (30.2) 32 (30.2) 29 (27.4) 106(100) Employee Knowledge of their Rights and Obligations and Compensation Packages for OSH related Matters The collected data, as can be seen from Table 4.8, on rights and obligations and compensation packages reveal higher levels, 81.1% and 87.8% respectively, of employee knowledge. Table 4.8 Employees Awareness on their right and obligation (Source: survey data, 2016) Totally Disagree Indifferent Agree Totally Total disagree agree Statements N (%) N (%) N (%) N (%) N (%) N (%) I Know employees rights and obligations related to OSH? I have awareness on work related injury compensation? 1 (.9) 13 (12.3) 6 (5.7) 37 (34.9) 49 (46.2) 106(100) 1 (.9) 11 (10.4) 1 (.9) 43 (40.6) 50 (47.2) 106(100) 30

42 4.4 Assessment of Availability Personal Protective Equipment s (PPEs) For operations staff working on the ground, wearing of personal protective equipment can mean the difference between personal safety and severe injury at work. For safety to be assured, employees must be provided with all the personal protective equipment necessary for security and safety at work. Respondents were asked to list the PPE required to them. Table 4.9 below shows that Safety suits, Safety shoes, hear net/cap, ear plug, hand gloves and eye goggle were the most important PPE for employees while, reflective jacket, helmet and leather apron were the least. Table 4.9 PPEs required for operation staff (Source: survey data, 2016) Most frequently used PPEs Frequency (N) Percentage (%) Safety suit Safety Shoe Hair net/cap Ear plug Hand glove Eye goggle Reflective jacket Helmet Lather Apron Occupational Safety and Health Management in the Organization In order to manage safety and health of employee, an employer need to show commitment and close follow up on the implementation of OSH policies and procedures. Proper OSH management on the work place assures the wellbeing of the employee and improve the quality work environment. To assess the level of work place safety employees were asked if employee working place is safe ; as indicated on Table 4.10 only 63.2% agree their working place is safe. As indicated in section 4.4, employees were asked to select the essential PPEs required for their job and the result was indicated shown in table 4.9. In this section respondents were asked if all 31

43 the necessary PPEs were available for use and 39.8% of respondents were unhappy with availability all the necessary PPE required for their work. In relation to PPE usage procedure, involvement of management with PPE compliance and supervision in the workplace was also considered in the study. The variables studied include, compliance, supervision and enforcement of safety rules and procedures. To assess the level of compliance with safety and health rules at the East Africa Bottling Sh. Co., employees were asked to respond to the question: I always wear essential PPEs while working. Unfortunately, only 32.1% totally agree to always use the necessary PPEs while working. The rest of the respondents only partially agree or disagree to varying degrees. Respondents were then asked to assess if Supervisors always ensure that the staff wears the necessary protective equipment s while working. The result, as shown on Table 4.10, indicates only 51.9% of respondents agree to the statement. The rest of the respondents were either neutral or disagree to varying degrees. As indicated in the literature part of this paper, healthy employees play a crucial role in organizational performance. One of the ways to assure this is to implement prevention action; part of this preventive action could be conducting employee medical checks at regular intervals. To check if the case company also considers the preventive action mentioned, respondents were asked to respond to the statement: The Company will arrange medical checkup at least once a year ; the result, as shown on Table 4.10, indicted (78.3%) of respondents agree with the statement. The rest of the respondents were either neutral or disagree to varying degrees. Table 4.10 OSH implementation in the organization (Source: survey data, 2016) Totally Disagree Indifferent Agree Totally disagree agree Statements N (%) N (%) N (%) N (%) N (%) Employee working place is safe 8 (7.5) 20 (18.9) 11 (10.4) 46 (43.4) 21 (19.8) There is lack of equipment, material 15 (14.2) 37 (34.9) 12 (11.3) 27 (25.6) 15 (14.2) and clothing for occupational safety and health 32

44 I always wear all essential personal protective equipment while working Supervisors always ensure that staff wears the necessary protective devices while working The company will arrange medical checkup at least once a year 4(3.8) 27(25.5) 4(3.8) 37(34.9) 34(32.1) 4(3.8) 36(34) 11(10.4) 33(31.1) 22(20.8) 4(3.8) 14(13.2) 5(4.7) 35(33) 48(45.3) One of the tools to reduce work place injury and illness is to always wear essential PPEs while employees are at work. However as observed by the researcher not all was PPE compliant and respondents were asked to select their reasons for not always wearing personal protective equipment s. The reasons given for not wearing personal protective equipment, as shown on Fig. 4.1 include: Carelessness or ignorance of safety requirements (23.9%), lack of OSH awareness (22.6%), non-enforcement of safety rules (16%),PPE are not comfortable (13.6%) unavailability of the necessary safety equipment (13.2%), and lack of motivation (10.7%). Lack of Carelessness or ignorance, Lack of PPE are not comfortable, lack of OSH awareness, Lose control on safety implementation, Figure 4.1 Reasons not to wear always PPE s (Source: survey data, 2016) 33

45 4.6 Common Safety and Health Problems Employee Face Due to the Nature of their Work This section of the data presentation part covers injury frequency, frequently affected body parts, the source of injury and its severity Occupational Injuries Frequencies Figure 4.2 shows the last two years injury characteristics of the company. A total of 87 (82.1%) respondents were reported occupational injuries during the last 2 years. overall prevalence of 82 injuries per 100 exposed workers per two years. With definition of occupational injury in this study and after reviewing records the overall prevalence during the last 2 years was 49 (46.2%) injured respondents reported 1-2 times,19 (17.9%) of the injured respondents reported 3-5 times and 19 (17.9%) of the injured respondents reported more than 5 times. Frequency of injuries in (N,%) None, 19, 18% Above 5 times, 19, 18% 3-5 times, 19, 18% 1-2 times, 49, 46% Figure 4.2 Frequencies of injuries (Source: survey data, 2016) 34

46 Afected body parts Impact of OSH management in organization performance of Beverages industries in Ethiopia Frequently Affected Body Parts The analysis of frequent injured body parts of the respondents as indicated on Fig. 3 below hand fingers were the body part with the highest frequency of occupational injuries 39 (31.1%), Back pain 25 (19.8%), Lower leg 17 (13.5%), upper hand 11 (8.7%), upper leg 6 (4.8) and Toe, Eye and Ear 5 (4%). Frequently afected body parts by work place injury Hand fingers 39 31% back pain % Lower leg % Upper hand Lower hand % 8.7% Upper leg Toe Ear Eye % 4% 4% 4% Frequancy/percentage Figure 4.3 Frequently injured body parts (Source: survey Data, 2016) Sources of Injuries The main source of injuries reported were broken glass 51(26.7%), repetitive job and workload 28(14.7%), chemical 22(11.5%), slippery floor 21(11%), Disordered items 17 (8.9%), sleep disorder 15 (7.9%) machine14 and uncomfortable seat 14 (7.3 %) and noise 9 (4.7%) as shown on Table Table Sources of injuries (source: survey data 2016) Main sources of injuries Responses Frequency Percentages Percent of Cases Broken glass % 52.6% Work load and repetitive jobs % 28.9% 35

47 Chemical % 22.7% Slippery floor % 21.6% Disorder items % 17.5% Sleep disorders % 15.5% Uncomfortable seat % 14.4% Machinery % 14.4% Noise 9 4.7% 9.3% Total % 196.9% 4.7 Prevalence of Occupational Injuries Out of 87 injured respondents, 72 (67.9%) were hospitalized. Regarding the length of hospitalization, 26 (24.5%) were for 1-2 days, 16 (15.1%) were between 3 to 5 days, 19 (17.9%) were 6-10 days, and 11 (10.4%) were on sick leave for more than 10 days as shown on Fig 4.4. These were resulted lost time injury of 298 to 652 days when we calculate by taking the minimum and maxim range of day of sick leave days. Sick leave days (N,%) None, 34, 32% 1-2 days, 26, 25% more than 10 days, 11, 10% 6-10 days, 19, 18% 3-5 days, 16, 15% Figure 4.4 Severity of occupational injuries (Source: survey Data, 2016) 36

48 4.8 Behavioral Characteristics of the Respondents Fifteen (15.2%) respondents consumed alcohol, 3(2.5%) of the respondents chewed chat and 2(1.9) of the respondents smoking cigarette. The majority 81 (76.4%) of the respondents were satisfied by their current job as shown on Table Table Behavioural characteristics of employee (Source: survey Data, 2016) Statement Frequency(N) Percentage (%) Are you happy by your job? Yes No Which of the below habits do you have during working days? Drinking Alcohol Chewing Chat Smoking Cigarette Secondary Data Analysis and Presentation In this section secondary data collected from East Africa Bottling Sh. Co. database and monthly safety report are presented and analysed to support the findings identified by the primary data. The report included the three years; number of lost time injuries, number of minor injuries which was handled by first aid, number of lost days, performance loss of production lines and medical cost expensed to treat the lost time injuries, frequently affected parts by incident and source of injuries. As can be seen from Table 4.13, in last the three year the case company has not faced injuries that resulted in fatalities. In addition, the trend in the table shows there was a reduction in total injuries treated in the company clinic by more than half when comparing 2013 and 2014 data; i.e. from a total work related injuries of 1208 (82.1% were minor injuries) to 535(78.3% were minor injuries). As it was mentioned on different literature frequent work place injuries affect the performance of the organization by incurring additional cost and decreasing production volume. Some of the valid reasons are interruption production, slowdown of production, additional labour expense for replacement of injured worker, maintenance cost for replacement damage machine part. 37

49 Table The case company three years occupational injury report (Source: company data base, 2016) Year Injury report Units Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec TOTAL Number of Fatalities # Number of Lost Time Injuries # Number of first Aid cases # Number of Lost Days # ,967 Number of Fatalities # Number of Lost Time Injuries # Number of first Aid cases # Number of Lost Days # s Number of Fatalities # Number of Lost Time Injuries # Number of first Aid cases # Number of Lost Days #

50 Cost Related to Lost Time Injury Work place injuries could result in tangible and intangible expenses on organizations and on employees; this in return will have effect on organizational profitability, performance and employees moral. When work place injuries happen, organizations are expected to cover medical expenses, compensate the injured, cover vacant positions created due to injuries and/or including the replacement of damage machine parts. The three year medical expenses to treat injured employees of the case company are presented in Fig 4.5 the data shows only the direct expenses made to treat the injured, excluding the compensations, filling of vacant positions and expenses made on damaged machine parts. Medical expence In Birr 288, , , Figure 4.5 Case company three years Medical expense (Source: company data base, 2016) Frequently Affected Body Parts Figure 4.6 shows the three years period frequently affected body parts which resulted lost time injury. From the total 463 lost injuries, hand was the most affected body part with 165 injuries (35%), leg 125(27%), Eye or face 73(16%), trunk 60(13%) and head 40(9%). This information can give direction to management on where to focus to create accident free environment. 39

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