NEBOSH International Diploma in Occupational Health & Safety Unit IA INTERNATIONAL MANAGEMENT OF HEALTH AND SAFETY
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1 NEBOSH International Diploma in Occupational Health & Safety Unit IA INTERNATIONAL MANAGEMENT OF HEALTH AND SAFETY element IA5: ORGANISATIONAL FACTORS Sample material (Material correct at 1/11/2011) RRC Training St George s Road London SW19 4DS United Kingdom T +44 (0) F +44 (0) info@rrc.co.uk Skype ID rrctraining
2 Types of Organisations Key Information Most organisations have both a formal and an informal structure. The systems approach to management views the organisation as an integrated complex of interdependent parts which interact among themselves and within their environment. The structure of an organisation is determined by its general activities, size, location, business interests, customer base and the way in which its personnel are configured. Formal and Informal Organisation General Perspective Jargon Buster Organisation An organisation is a group of persons who interact with each other in an effort to attain certain predetermined goals or objectives. At a very basic level, the employee goes to work to earn money. The earning of money, then, is a specific goal common to everyone in that particular organisation. There will be many other shared goals and objectives. There will also be many goals which are not shared, which lead to conflict, and which, ultimately, may have a bearing on the success or failure of the organisation. A work organisation, then, is an organisation which has been established for a specific purpose and within which work is carried out on a regular basis by paid employees. Examples of such are: businesses, hospitals, educational institutions, government departments, etc. Formal and Informal Structures All organisations have a formal and informal structure. Within each organisation there is a formal allocation of work roles and the administrative procedures necessary to control and integrate work activities. However, you will also be aware, from your own work experience, of an informal arrangement or power structure within your company which is based on the behaviour of workers - how they behave towards each other and how they react to management instructions. The foreman or supervisor will have specific instructions from management aimed at achieving certain goals or production targets. In many cases, he often adjusts those instructions in accordance with his personal relationships with individual, or groups of, workers. This takes us some way towards being able to make a distinction between formal and informal organisations. There is a blurring at the edges between the two - a cross-over point where the distinction between the formal and informal at the actual point of action becomes obscured and is the subject of a great deal of sociological argument and discussion. For our purposes, it is sufficient to describe or explain them in the following way. Formal Organisational Structure Most organisations describe their structure in the form of an organogram. This shows the reporting relationships from the chief executive, president or managing director of the company down to the staff carrying out the most basic tasks. The following figure illustrates a typical formal structure for a small company. In an organisation, all employees should be aiming at the same goal Unit IA Element IA5 5-4 RRC Training
3 SALES MANAGER SALES STAFF PRODUCTION DIRECTOR PRODUCTION EMPLOYEES In theory, every person within the structure has a well-defined role with clear lines of reporting and clear instructions as to standards of performance. These roles will be clearly understood by others in the organisation so that everyone acts together to achieve the organisational objectives. Informal Organisational Structure An organisational chart cannot identify all the interactions which occur between staff. Invariably, it will be the quality of personal relationships which determines how communications flow within a company and how things get done. In most organisations, the formal structure represents the model for interaction, but in reality the informal relationship is of considerable importance in understanding how organisations work. The informal structure cannot replace the formal structure, but works within it. It can influence relationships and effectiveness in both positive and negative ways. An understanding of it is an invaluable aid to good management. Take another look at the Formal Structure (see the figure above) and then compare it with the Informal Structure (see the figure that follows). Look at the superimposed informal structure shown by the dotted lines. DIRECTOR Formal Structure QUALITY MANAGER FINANCE DIRECTOR ACCOUNTS STAFF RRC Training Unit IA Element IA5 5-5
4 SALES MANAGER SALES STAFF PLAY GOLF TOGETHER PRODUCTION DIRECTOR PRODUCTION EMPLOYEES DIRECTOR WENT TO SAME SCHOOL An awareness of these informal relationships would obviously influence how communications are made. The effective manager will use such knowledge to break down resistance to new measures (including health and safety). A simple way of making a distinction between formal and informal organisation structure is: Formal - represented by the company organisation chart, the distribution of legitimate authority, written management rules and procedures, job descriptions, etc. Informal - represented by individual and group behaviour. QUALITY MANAGER MEMBERS OF COMPANY SOCCER TEAM Informal Structure BROTHERS-IN-LAW AT UNIVERSITY TOGETHER FINANCE DIRECTOR ACCOUNTS STAFF Concept of the Organisation as a System Jargon Buster Definition of a System There are a number of definitions of a system. A simple but useful one is: A system is a regularly interacting or interdependent group of items forming a united whole. This is one of several definitions which can be applied to systems. At this point, it is sufficient for you to know what a system is. The systems approach to management is, basically, a way of thinking in which the organisation is viewed as an integrated complex of interdependent parts which are capable of sensitive and accurate interaction among themselves and within their environment. Unit IA Element IA5 5-6 RRC Training
5 Characteristics of Systems The following are common characteristics of systems: Every system is part of a still larger system and, itself, encompasses many subsystems ( circles within circles ). Every system has a specific purpose to which all its parts are designed to contribute. A system is complex - any change in one variable will effect change in others. Equilibrium: a system strives to maintain balance between the various pressures affecting it, internal and external. Of course, some systems experience more pressures to change than others, giving rise to stable and unstable systems. Initial reaction to pressure is often what is called dynamic conservatism - the organisation fights like mad to stay just as it is! However, sooner or later homeostasis takes place activities which serve to stabilise and vitalise the organisation as a whole in an evolving state of dynamic equilibrium. Open and Closed Systems One systems concept commonly used is the distinction between open and closed systems. Closed Systems A closed (or impervious ) system is one in which there is no interaction between any part of the system and the external environment. You will realise that, nowadays, in the organisational sense, such a situation does not arise - the concept is used purely for debating reasons. An example where a relatively closed system is possible is in general engineering, where the system monitors its own behaviour through a feedback loop, as shown in the following figure. INPUT ERROR Element IA5: Organisational Factors SYSTEM FEEDBACK OUTPUT This type of system is incorporated into classic control systems for industrial processes. Feedback Loop RRC Training Unit IA Element IA5 5-7
6 Open Systems The vast majority of organisations are open-loop, rather than closed-loop, systems. This is shown in the following figure. The inputs and outputs can be materials, knowledge and ideas, or even people (as in the education system). The employees who carry out the processing within the systems are, themselves, drawn from outside, and so they are influenced at work by environmental factors. The organisation must, therefore, deal with the demands and constraints imposed by the environment on raw materials, money and consumer preferences, and it must also deal with the expectations, values and norms of the people who must operate the work organisation. INPUTS ENVIRONMENT Three major characteristics of open systems are: They receive inputs of energy from their environment. They convert these inputs into outputs. They discharge their outputs into their environment. The Organisation as an Open System In relation to an organisation, the inputs include people, materials, information and finance. These inputs are organised and activated so as to convert human skills and raw materials into products, services and other outputs which are discharged into the environment, as shown in the following figure. People, information, finance, materials, etc. CONVERSION Open System ENVIRONMENT Production and marketing activities. Planning, organising and control. Research and development, etc. OUTPUTS ENVIRONMENT Products, services, ideas, waste, etc. INPUTS CONVERSION Open System Organisation OUTPUTS Unit IA Element IA5 5-8 RRC Training
7 The open system concept, in relation to the study of organisations, carries with it some optimism for the likelihood of change and the introduction of new ideas and behaviour into the organisation. As well as having this important facility of importing new energy and ideas from its environment, the open system provides for adaptation to take place which, some would argue, is one of the crucial factors in the survival of any organisation. Organisational Structures and Functions The structure of an organisation is determined by its general activities - its size, location, business interests, customer base, etc. It is also determined by the way in which its personnel are configured. Organisation Charts and the Role of Management Manage Jargon Buster The Oxford Dictionary defines to manage as to organise, regulate and be in charge of a business. Management It describes management as those engaged in these functions. The organisational pyramid mentioned earlier (Formal Structure) is probably the principal model for most organisations with management at its apex and the workforce at its base. The total management structure can be represented as a pyramid but within it each separate department has its own pyramid with its own power structure and departmental goals. With its own head, senior, middle and junior members of staff, each departmental pyramid has to be climbed by the aspiring, career-minded employee. If the organisation is very large then considerable problems involving communication, efficiency, effectiveness, etc. will be encountered. Management will lead through issued instructions, policies and procedures, and supervision to ensure that these are being adhered to. There is normally a line of responsibility with different functions at each level. Line Management A typical line management function in a factory is represented by the following figure: Works Director Works Manager Foreman Chargehand Shop-Floor Operative A Typical Line Management Function From this you can see a direct line of authority from the works director to the shop-floor operative. Staff Relationship The managing director s secretary reports to the managing director (MD) and carries out his/her instructions by passing on his/her wishes to other directors and senior heads of department, but there is no line relationship between the secretary and those departments. There is no instruction from the secretary as her/his authority stems from the MD. A health and safety consultant reporting directly to an MD is not in a position to instruct heads of departments to carry out health and safety policies or instructions. Again, his/ her authority stems from the MD and, in practice, he/ she would advise heads of department of any changes in policy agreed with and authorised by the MD. Functional Relationship In many larger organisations, certain members of staff have a company-wide remit to carry out activities across the board. Human resources departments often implement company appraisal plans which affect every department; internal auditors visit every department to carry out their work; and quality control inspectors and health and safety managers have a company-wide role in order to inspect and check procedures. In such circumstances, any defects discovered would normally be dealt with by reporting them to the departmental head rather than dealing directly with any individual members of the department. The various hierarchies and line, staff and functional relationships can create huge problems for any organisation. Office politics and protocols often obstruct communication, which is one of the keys to efficient management. RRC Training Unit IA Element IA5 5-9
8 Revision Question 3. What is the difference between a formal and informal organisational structure? 4. List some inputs and outputs of an organisation. (Suggested Answers are at the end of Unit IA.) Unit IA Element IA RRC Training
9 Organisations and Health and Safety Management Key Information Management of health and safety is no less important than the management of production, purchasing, sales or human resources. Organising for health and safety involves establishing responsibilities and relationships which promote a positive health and safety culture to include control, co-operation, communication and competence. The potential for conflict exists between organisational goals and those of the individual. In setting and achieving health and safety targets, the organisation should consider the needs of the individual. The Role of an Organisation in the Development of a Positive Health and Safety Culture The management of health and safety is a function of management no less important than the management of production, purchasing, sales, human resources, etc. In Element IA1 we identified the key typical components of a range of health and safety management systems. These are: management commitment, policy, organising, planning and implementing, performance review, audit and continual improvement. Anyone familiar with management training will recognise these concepts as tried and true standards for the effective management of any activity, department or organisation and they apply in full measure to the management of health and safety. According to the UK HSE: Organising for health and safety involves establishing responsibilities and relationships which promote a positive health and safety culture and secure the implementation and continued development of the health and safety policy. So, key to implementing your health and safety policy is creating and maintaining a culture that motivates members of staff (so that they are committed), involves members of staff and effectively controls all risks. This is usually referred to as a positive safety culture. In order to achieve these ends, the organisation must concentrate on the four Cs: Control. Co-operation. Communication. Competence. RRC Training Unit IA Element IA5 5-11
10 ORGANISATION CONTROL COMMUNICATION PREMISES (PLACE OF WORK) The 4Cs help embed doing things safely within the culture of the organisation. Control In order to achieve control it is necessary to secure the commitment of all employees - managers and shopfloor alike - to clear and well-defined health and safety objectives. These objectives will be set out in the policy, and managers will be empowered to take responsibility for controlling the working environment with the cooperation of all employees. This serves to encourage the development of a safety culture which is based on enlightenment and self-awareness with rules as a fall back measure in the event of slippage from accepted safety cultural norms. If we take a typical manufacturing organisation as an example, we can see that good health and safety management can be divided into three stages where control needs to be exercised: Input. Work processes. Output. PEOPLE PROCEDURES JOB The Four Cs PLANT & SUBSTANCES CO-OPERATION COMPETENCE At each stage it is necessary to have in place agreed and acceptable standards of performance for: hazard identification; risk assessment; risk control; and implementation and maintenance of control measures. Stage One - Control of Input Standards of performance to be applied to: Design and selection of premises. Design and selection of plant and substances. Plant and substances used by others. Acquisition and purchasing. Human resources. Information. Stage Two - Control of Work Activities Standards of performance to be applied to: Risk assessment. Safe working methods. Work instructions. Personal protective equipment. Accident prevention procedures. Unit IA Element IA RRC Training
11 Stage Three - Control of Output Standards of performance to be applied to: Products and services. By-products of work activities. Information for external use. Co-Operation Co-operation is achieved through: Health and safety committees and other consultative arrangements. The preparation and circulation of safety committee minutes and action points. The holding of problem-solving meetings. Communication Communication is achieved through: The collection of information from external sources. The involvement of senior management in consultative arrangements. The involvement of senior management in accident, ill-health and incident investigation. The involvement of senior management in planning, monitoring, auditing and reviewing performance. Discussion of health and safety matters at management meetings. Providing systems for the cascading of information. Instituting toolbox talks. Provision of documentation of policy statements, organisation statements, performance standards, rules and procedures. Use of posters, bulletins, in-house newspapers and other similar publications. Preparation and dissemination of information to outside organisations and individuals. Competence Competence of employees is achieved through: Recruitment and placement procedures. Provision of information, instruction and training. Availability of competent cover for staff absences. General health promotion and health monitoring/ surveillance. Topic Focus Organisations should aim to achieve success in managing health and safety by maintaining a culture which motivates and involves all members of staff and effectively controls all risks. The main factors in this strategy are: Control by managers who lead by example. Clear allocation of responsibilities for: Policy formulation and development. Planning and review of health and safety activities. Implementation of plans. Reporting on performance. Allocation of health and safety responsibilities to line managers with access to specialist advisers. Allocation of health and safety responsibilities to competent persons who are given time and resources to carry out those responsibilities. Ensuring accountability of persons allocated health and safety responsibilities. Setting those persons realistic targets and providing positive reinforcement. Providing adequate supervision, instruction and guidance. Providing a payment and reward system which avoids conflict between production targets and health and safety requirements. Encouraging co-operation among employees and safety representatives by involving them in: Policy formulation and development. Planning, implementing, measuring, auditing and reviewing performance. Arrangements at operational level in support of more formal participative measures. Ensuring effective communication by means of: Visible behaviour. Written material. Face-to-face discussion. Ensuring competence by means of: Recruitment. Selection. Placement. Transfer and training. Provision of adequate specialist advice. RRC Training Unit IA Element IA5 5-13
12 Organisational Goals and Those of the Individual: Potential Conflict Goal Jargon Buster In this context, a goal can be defined as an object of effort or ambition. In order to be successful and progress, both an organisation and individuals have to have goals. For the organisation, the goal may be an aspiration to be the best in their field or to be the largest or to be renowned for outstanding quality. Clearly for the organisation to achieve these goals then the employees need to have their own goals and objectives to work towards the organisational goal. However, the individual may have other goals which may or may not impact on the organisation. For example, an individual may aspire to be promoted which would probably mean that the individual will work very hard to achieve their goals/ objectives within the organisation as this should help them to achieve their own personal goal of promotion. Another individual, however, may aspire to work less hours or have more time with their family. This may impact on their willingness to put in extra hours which may be required for the organisation to achieve their goal. Integration of Goals of the Organisation with the Needs of the Individual In setting and achieving health and safety targets, the organisation should consider the needs of the individual. Where health and safety tasks are delegated, at all levels from senior managers to shop-floor workers, the individual(s) given the responsibility for those tasks should be clearly identified and stated. This gives ownership to the individual concerned, and is an important factor in getting the individual to buy in to the organisation s goals. Many organisations give responsibility without the relevant authority to carry out the tasks. This can be a mistake as, without authority, the individual can feel frustrated at being unable to carry out the tasks. This, in turn, leads to a feeling of futility and results in tasks being done poorly or not at all. Where authority is given to enable the individual to carry out tasks, this can result in an increase in self-esteem and increases the possibility of the tasks being performed well. It is important that the limits of responsibility and authority are clearly defined so that individuals know the extent of what they can and cannot do. With responsibility comes accountability, and this must be made clear to all individuals given health and safety responsibilities. One important issue when giving responsibility is to ensure that the individual is capable of accepting it. Revision Questions 5. List the seven key typical components of successful health and safety management systems. 6. What are the key elements of organising for safety? (Suggested Answers are at the end of Unit IA.) Unit IA Element IA RRC Training
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