MBA Corporate Culture

Managing Corporate Culture In Nando Fast-Food Company

This post discusses corporate culture in great length. The operation of business on a global scale requires that firms should cultivate their international business by respecting the national differences in the countries where they expand to. This is what Nando had failed to observe. It has rigidly and excessively stuck to its corporate culture exhibited in South Africa. It failed to note that South African’s national culture is not the same thing as what applies in countries in European and Asian states.

Also, the Nando’s management in the South African headquarter had given no room for the management of its firms in other countries to operate freely; this has given them no room for innovative strategic marketing planning in observance to the environment in which they operate in. the national culture of South Africa has greatly influenced the corporate culture of the Nando’s organization and it thus constituted a negative impact when its adherence and transfer to other national culture that is not compatible, led to the unprofitable business operations in these countries.

The level of competition in the fast food industry in contemporary times is getting tense, with expansion in big firms and new entrants to the business. Thus for organization like Nando the need to observe people’s custom, taste, national culture in carrying out its strategic marketing this is germane for their effective and successful operations as they expand the business.

Introduction

The dynamic environment where modern businesses operate pose challenges for them to maintain effective management of innovation. These environments are also characterized by uncertainties. The managements of contemporary business and their resources are becoming ever tasking because of changes in management, which emanates from the introduction of new strategies, keen competition, and improvement in technology, inter-alia. Change is a constant phenomenon that is bound to occur, but in a situation where its vicissitudes become a frequent occurrence managers of business are put in a tight corner to adequately strategize in order to follow the trend in the industry and the environment where they operate. The external environment in which an organization operates goes a long way in influencing its strategic management. Hence, changes in these environmental segments- the demographical segment, economic segment, political/ legal segment, technological segment, socio-cultural segment, and global segment- these need to be inculcated in the organization strategic management for the organization to compete adequately with its rivals. In this view Peter (2005:7), argue, “Dynamic in nature, the strategic management process is the full set of commitments, decisions and actions required for a firm to achieve strategic competitiveness and earn above average returns”.

As an organization continues to expand in its operational base, it is a noticeable fact that these expansion tend to affect the pattern of existing corporate culture the organization had hitherto operated on. This becomes more prominent when the organization is venturing into a different environment or country with different corporate culture from the exhibited national culture.

Strategic marketing is thus, faced with high challenges in the aspect of cultural harmonization of an organization operating with several units and outlets in trans-nationals and across borders operations. In an ever increasing competitive global business arena, the need to strategies and be in tune with current trends in an industry, this is very germane to the success level the organization would attain.

This study looks at Nando a medium scale business enterprise with its problem in operations of its franchised business, as a result of the difference in environmental corporate culture where the firm plans to extend its operations.

Background of Nando

Nando is a South African fast-food firm with restaurants that operate in many outlets in the country. The restaurants have over the years operated an organizational and corporate culture that depicts the South African environment in which it operates. The local South African dishes are widely served. Nando’s corporate culture is built around preparing chicken delicacy with a corporate culture that reflects the ‘Nandocas’ (Nando’s people) attitude, values, pride, passion and their courage. Nando believes in 100 percent satisfactions of its customers. Thus, as an organization, it has embraced the phrase that “100 percent” and “GEES’ which means ‘spirit’ in Afrikaans language, to build a corporate culture in giving satisfaction to its numerous clients.

Nando started operating in South Africa since 1987, and has used its marketing strategy to effectively ensure growth for the firm, thereby making the firm to begin franchising its operation to other countries, outside South Africa.

Nando’s Corporate Culture and Failure to Franchise to International Markets

The Nando’s organization has sought for drive for its expansion into the international fast-food market. Thus, it has embraced the plan to expand its operation through franchising to other international countries. From the Rothwell’s five generations of innovation, Nando is currently applying the second-generation Innovation process (Rothwell 1994, pg 8). The firm wants to diversify its operations by making its appearance in new international market. However, it has placed more emphasize on static scale of economies by holding tight to its corporate culture. Thus, the pattern of Nando organizing new restaurants operations in the same old South African fashion and technology has made the organization fail in its franchising and plan to gain market share in international market.

The expansion of Nando organization to other countries, this has adopted strategy of management the organization in a way where it focused greatly and concentrated on its national organization’s corporate culture. The marketing strategy introduced into its operation in European and Asian countries have towed the culture in South Africa. Hence, the over concentration on the existing South African culture, with little or a little (insufficient) focus on existing cultures in countries where the Nando’s expansion operations are directed to, this has being a major reason why the attempt at the franchising the organization’s concept failed. The sticking to past way of conducting business in South Africa, is not enough to see its foreign operations to success; there is the need to carry out a thorough research and analysis on the corporate culture existing within a country where the organization intend to expand its operation to. In this view, Oden (1997:3) argues that “many of today’s most successful organizations continue to survive because many years ago they offered the right product at the right time. Most product, market and process venture decisions of the past were made without the benefit of strategic thinking or planning. However, present-day managers increasingly recognize that venture decisions must be made in the context of a venture strategy. As they find themselves in ever more complex and turbulent environments, their past internally oriented, reactive approach to decision making is giving way to an externally oriented proactive approach that requires more analysis”.

The need for Nando to analyze both its internal and external environments is a needed strategic framework for the organization to thrive in international corporate venture and strategy. Hence, this long-range strategic and proactive orientation to decision making is an important element of the innovation culture (ibid). The need for an organization to adapt to the corporate culture in the environment where it operates goes a long way to show how successful it would be. The strategy in place should take into cognizance those cultural variables that would blend with the environment and people’s life style and taste. This is where the management of Nando International has missed the mark. There is the intention to transfer the Nando’s South African corporate culture to countries that has no cultural similarities; such as Israel, England, Australia, Japan, and Canada. The reason why Zimbabwe could thrive is adduced to the fact that it shares the same cultural similarities with South Africa; Nando’s home country.

To buttress this argument Ulijn et al (2000), illustrated that, “when a multinational firm, such as Philips, operates in the United States, it is accepted almost as a U.S. firm since it is loosely related to the individualistic U.S. society where interaction is explicit, low context, and monochromic. On the other hand, to be successful in Japan, Philips should behaves as a Japanese firm, where national culture and corporate culture overlap in a tight, collectivistic society where interaction is implicit, high context, and polychromic”. The above illustration shows that every country has its own cultural characteristics and variables that would compact with the environment in which business operation is done.

Also, the head office of Nando in South Africa has no flexible guide on the operation of its international businesses outlets, setting rules and guidelines for their operations. This has prevented the management in the different international countries from considering the variables and existing corporate culture where they operate, and strategize towards this line for effective operation. These tend to constitute hindrance to a successful implementation of Nando’s franchising attempt of its concept internationally.

The Role of National Culture in Nando’s Expansion

National culture is a great reckoning force which the Nando’s organizations have greatly imbibed in. the emphasis on maintaining the South African culture, in the organization, this is shown in every aspect of the business. To make this national corporate culture to be retain every new staff are adequately orientated on the existing cultures they are recruited., and it is expected they keep to this culture. The adaptation to national culture by the Nando outlets and operation in South Africa, this can be say to be a major factor that has resulted in the success story recorded in the country. As the organization’s activities are built round the national culture, this is reflected in the management style, relationship between staff and management, selection of partners. The inherent national culture in Nando is a factor that has made its Zimbabwe operations to succeed. This is adduce to the fact that South Africa and Zimbabwe have similar national culture

Corporate identity is an important factor to enable an organization competes favorably in an industry. “Based on this notion the effective management of an organization’s identity result in the acquisition of a favorable corporate image and, over time, of a favorable corporate reputation which leads an organization’s key stakeholders and stakeholder groups to be favorably disposed towards it” (Balmer & Wilson, 1998). According to Balmer (1997), cited in Balmer & Wilson (1998), an important pre-requisite for a corporate reputation to contribute to business survival and success is that it offers a distinct advantage in relation to the organization’s external environment”. For Nando South African operations, it has greatly utilized its corporate identity and culture in building a favorable reputation for itself. And this has led to the success and expansion of the business. It can be said here that the corporate identity exhibited by the organization operations in South Africa, this is very conformable to the national culture of the country’s environment in which the organization operates. To show the level in which national culture plays in the success of Nando’s operations in South Africa, when the expansion of the organization gets to European and Asian countries, with the dogged move of the management to inculcate the same corporate culture in a different environment made the operation there unprofitable and unsuccessful.

As earlier stated corporate culture is a reflection of the national culture and the environment in which the organization operates. The national culture of a state should be adapted onto by the corporate culture for the organization to thrive in its operation.

The role of national culture in Nando’s expansion can be said to be effective and successful at the national level, i.e. in South Africa. But internationally, the excessive emphasis place on the national culture in the expansion operation in Europe and Asian countries, this is a negative aspect that has affected the successful outcome of operations in these countries. The Nando’s have concluded that the Nando’s national culture could be transferred to international operation; hence, there is the disregard for the inherent cultures existing in these international countries. Thus, this incompatible corporate culture and the existing national cultures in the international countries is a factor responsible for the unprofitable operations at this level.

Hence, as a way out of this, it becomes a difficult challenge for the Nando to blend its South African corporate-cum-national culture with what operates internationally. The advertisement of Nando’s product, services, and organization’s operations, this also goes to buttress the role of national culture on the organization’s operations; adverts done for the South African outlets cannot adequately be utilize for operations in European and Asian countries. This also goes to show that the Nando organization’s success in South Africa is greatly tied to its ability to compact with its national culture and the effective utilization of this for the organization’s advantage.

Industrial Analysis and How It Affected the Corporate Culture of Firms like Nando

The level of global competition in the fast food industry is always on the increase. This is adduced to the in flock of new entrants, the expansion of existing firms to other countries. Big name in the industry such as McDonald, which has over 23,000 restaurants in 110 countries, a close rival to MacDonald is Burger King which operates a total of 9,644 restaurants in 110 countries, followed by Wendy; second largest rival to MacDonald, with a total of 6776 restaurants in 32 countries, Hardee operates 3080 restaurants in 20 countries (McDonald. ca, 2005). With this high level of expansion of major players in the fast food industry, coupled with the springing up of new firms entering the industry, these have led to the increase in the competition level in the industry. An organization operating in this industry need to adequately strategize in its marketing activities for it to curve a niche for itself.

The high competition level in the industry can be analyzed using Porter’s five forces. The threat of new entrants in the fast food industry is significantly high, as there are new entrants springing up every moment. This is due to low capital outlay required in setting a small fast food business, also the basic skills required to run a fast food restaurant is basically not to high that would require long term training. And there are abundant of skill labour that can be recruited to man the fast food joint when created. These f actors are responsible for the ease at which new entrants flock the industry and this has helped in increasing the level of competition in the industry. According to Porter (1985), the intensity of rivalry among existing competitors depends on the balance of competitors, industry growth, the size of fixed or storage costs, the amount of differentiation or switching costs, the minimum size of investment, the types of competitors, the strategic stakes, and the size and type of exit barriers.

Another threat in the industry is the threat of substitute product or services. In recent times, most fast food restaurants have come up with innovative pattern of preparing there food and service delivery; some have developed services for a targeted group in the society such as busy workers. This innovative way of operating leaves the customers, and those who patronize fast foods, many room to choose from the available substitutes. The treat of substitute product and services tend to reduce the level of profit that is available for the organization operating in the industry. In this industry there are firms that produce similar products; this also tends to constitute a threat to the operations of firms in the industry.

The bargaining power of suppliers, who supply raw materials for processing the food in this fast food industry, is very high, since there are many firms operating in the industry they would have many buyers wanting to buy from them; thus increasing the demand level. Many big firms like McDonald, have engage on their own backward linkages programme, whereby they produce most of the food stuff and livestock use in operating their fast food restaurants. Buyers also may have high bargaining power in this industry, since there are different substitutes and operators in the industry; thus forcing the price down for buyers.

The strategic challenges thus facing firms in the industry has to do with how they ca n strategize and carry out their marketing function in a way to make them have competitive advantage in the mist of the high competition in the industry. And profit maximization tend to be low if the marketing strategy is not effective enough to increase the level of sales made available to a firm operating in this industry.

Recommended Ways Nando Could Develop Its Business Operation

As earlier stated the competitive level in fast food industry is very tense; thus, for a firm to operate adequately in this industry there is the need that an effective marketing strategy is put in place; which would be goal oriented and enthusiastically pursued. For firms like Nando that is expanding, its operation to foreign countries there is the need that the issue of environment where the expanded business is position, this is critically considered in line with the organization existing corporate culture. “…a number of theoretical perspectives related to the role of firm-specific knowledge in competitive strategy-resource-based view of the firm, dynamic capabilities knowledge-based view of the firm, organizational learning-have began contributing to our understanding of international strategic alliances” (Simonin, 1999). And it is germane that modification to existing corporate culture is made to be in tune with the features of the environment that are on g round. The importance associated with paying attention to a country’s culture and environment in the management of business operation, especially as applicable to fast food business, this is for the organization to operate effectively and adequately apply its resources in order to adapt to the environment and also to meet set objectives at the most efficient manner. “Given the global strategic perspective, the corollary that it should be accompanied by a universal standardization is difficult to sustain as such a stance is product oriented and in defiance of the marketing concept. It is also apparent that different nationalities buy similar products for different reasons and different versions of a product for reasons of values, custom and preference as well as price” (McCall & Stone, 2004:5).

From the fore going, organization such as Nando as should strategize in a way where the custom in a country, that the national culture is respected. It is not as if one is saying that they should lose their cooperate corporate culture and concepts, due to expansion, but people’s custom, taste, preferences, reasons for patronizing a firm’s product and service, all these are different. So it becomes germane that for the firm to operate adequately well in the international arena, these considerations need be put in place for proper marketing strategy.

The model below is modified to shows a full recognition to the external context environment and how it should Nando’s business units are coordinated to operate; and it identifies a two- way rather than a one – way relationship with organisational strategy. There is also important recognition of the impact of the role of the personnel function on the human resource strategy content.

Corporate Culture MBA
Corporate Culture MBA

Source: Original by Henry and Pettigrew, (1992:139) “Model of strategic change and human resource management” in ‘Patterns of strategic change in the development of Human Resource management’ in British Journal of Management.

The model above diagram shows the effects of Nando’s corporate culture on its outlets, in other international countries where the business is franchising. It shows that franchised business should be allowed to operate uniquely, but not totally out of the parent organization’s corporate culture. Certain environmental influences from political, economic and cultural and social segments of the environment should be recognised for the Nando’s outlet to operate adequately in the country there are established.

Suggested Innovation Approach for Nando

Scenario Building

Having looked at the failed bid of Nando to actually succeed in its expansion and franchising bids, it is recommended that the organization embrace a scenario building approach in studying the environment in which it wants to expand it business to before implementing the plans. This would enable the organization to be able to build up the right corporate culture and curtail challenges and uncertainties.

One way of managing the uncertainties associated in frequent change is through scenario planning. According to Ringland (1998), scenario planning is a tool for business to cop with the unpredictability of constant change and help them find better solutions for the future. Scenario are often thought of as a management development tool, which is use for creating shared vision, as well as better plans, in organization. Thus, it is utilized in facilitating strategic planning and helps in influencing people’s attitude towards questioning assumptions and accepting change (ibid). Scenario planning tends to be a better tool than other traditional management tools for the tackling high uncertainties and complexity in modern business management. Shoemaker (1991) defines scenario planning as a script- like characterization of a possible future presented in considerable detail, with special emphasis on causal connections, internal consistency, and concreteness. According to him, the focus is not on forecasting the future, or fully characterizing its uncertainty, but rather on bounding the uncertainty.

Thus, for Nando scenario building is a germane tool that would ensure cultural uncertainties from environments where it want to expand its fast-food operations are taken care of before the firm’s outlets are established.

Modelling as a way of improving innovation management for Nando

Corporate Culture Dissertation
Corporate Culture Dissertation

The above diagram shows the circular flow of innovative modelling. A model formulation is ensured through the desire to come up with a better model so as to gain more competitive advantage over rivals, and this need for improvement brings about the better allocation of resources that would result in the derivation of vital information for the effective operation of the organization. The derivation of better information would make Nando to see its previous innovative model as asymmetric and the desire to future improve this lead to another circle of innovative turn around and the engagement on new modelling session.

Two key aspects underlying this information innovation cycle are transparency and accountability. The transparency of information is in fact closely tied to accountability. Transparency can be defined as the ability of the public and of external regulatory bodies to view the actions, procedures, and outcomes of a particular business entity (or department within). Public access to information concerning the operations of a business or an entire industry facilitates independent evaluation (Ceres, 2003). Transparency translates to accountability when these independent evaluators have a significant influence over the fate of the company or industry in question. This influence might come in the form of policy making or buying power. When inferences made by the public have the ability to affect its welfare, such an entity becomes more than just morally or ethically accountable to that public. It also becomes incumbent upon that business or industry to perform in ways that are favorable and fair. Without transparency, therefore, there can be no accountability and without accountability, modelers will not have the motivation or incentive to take ownership of the models and therefore the cycle. However, with accountability and transparency working in tandem, model validation will foster an information innovation cycle, which in turn will lead to a lasting competitive advantage.

Conclusion

Corporate culture has a great effect on way an organization operates. It gives the organization its uniqueness, i.e., in other words corporate culture of an organization gives it corporate identity. The corporate culture may constitute a hindrance to the successful operation of the organization when the organization is operating a rigid corporate culture with no room for modification or change; this is more specially noticed when the organization is operating and expanding its business to different countries. As each country has its unique national culture, it then requires that when the organization is carrying out its strategic marketing planning this should be adequately taken into cognizance. Modification to existing corporate culture should be made so as to make the organization operates effectively and profitably well.

References

Balmer, J.M.T. & Wilson, Alan (1998) “Corporate Identity: There Is More To It Than Meets the Eye” in International Studies of Management & Organization. Vol.28, No 3

Ceres (2006) “Information transparency and corporate accountability” Ceres Benchmarking Electric Cost

McCall, J.B. & Stone, M.A. (2004) International Strategic Marketing: A (N) European Perspective. New York: Routledge

Oden, Howard W. (1997) Managing Corporate Culture, Innovation and Entrepreneurship Westport, CT: Quorum Books pp. 51

Porter, Michael E. (1985) Competitive Advantage: Creating and Sustaining Superior Performance. New York

Proctor, Tony (2000) Strategic Marketing: An Introduction London: Routledge

Ringland, Gill (1998), Scenario Planning: Managing For the Future. John Wiley & Sons Limited

Rothwell, Roy (1994) “Towards the Fifth-generation Innovation Process” International Marketing Review, Vol. 11 No. 1

Shoemaker, Paul J.H. (1991) “When and How to Use Scenario Planning: A Heuristic Approach with Illustration” in Journal of Forecasting. Vol. 10

Simmonin, Bernard L. (1999) “Transfer of marketing Know-How in International Strategic Alliance: An Empirical Investigation of the Role and Antecedents of Knowledge Ambiguity” in Journal of International Business Studies Vol. 30, No 3

Ulijn, Jan et al (2000) “Innovation, Corporate Culture and Strategy. What is the Mission for International Business Communication?” in The Journal of Business Communication .Vol. 37, No 3. pp. 293

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Organizational Structure

Organizational Structure and Behavior

The fundamental intention of the study is to focus on the behavior of individuals and groups and how it affects the organizations. This study helps one to survey the links and relationship between the culture and constitution of organizations and how both the factors manipulate the behavior of workforce within the organizations. The impact of culture and structure can be measure with the ways and regularities being applied in organizations. These values basically conclude the functional prototype of behavior of organizations personnel. The structure and culture which are being applied within the organization structure are important aspects which stimulate the workforce at all echelon of the organization.

Understand the relationship between organizational structure and culture

The organizations are basically developed up on the base of communication and culture of any organization is a communicatively accomplished part of the organization which saturates it. According to Anne Maydan Nicotera (2003, p.1) the “organizing is a communication process” and an organization is an entity which is basically embedded in cultures. The relationship between culture and organizational structure is a vast and comprehensive dilemma to discuss because the organizational members create and recreate the organization cultures and organizational structure entities are embedded in this cultural environment. In other words it can be said that members of an organization is a culture part of the organization and this organization is a cultural part of society.

Culture is basically the combination of disciplines, norms, values, customs, beliefs, attitudes, practices, and several other aspects. These factors are not culture itself but culture underlies them in it (Marcia J, 2003, p.2). Culture is a conferred set of communal emblematic systems those direct individuals’ behaviors and incline them to play a role as an assemblage (Chen and Starosta, 1998).

Compare and contrast different organizational structures and culture

Organizational structures

The “organizational structure identifies the responsibilities for each position and relationship among these positions”. A firm basically establishes a structure which determines the job and responsibilities of each individual within the organization under the supervision of someone above all of them who monitors and guides them to perform their job efficiently. In some organizations where the jobs and responsibilities are not supervised by some other position the workforces are not contributed to the production of organization due to not getting proper guidance about their responsibilities towards their organization. In other cases, where the positions are supervised by more than one person the chances of conflicts are much higher (Jeff Madura, 2007, pg. 277 to 278).

Types of organization and associated structures

Different organizations use different organizational structures. The organizational structure is particularly based on the nature and specification of business. Basically the following types of tools are used to build up the organizational structure.

Functional

Rob Dransfield (2004, p.74) stated that the organizations based on the functional structure basically apply the grouping of workers in order to bring the different individuals and groups of workers altogether so they can help and support each other’s in specific projects and jobs. In this structure the individuals and groups mutually share their expertise and ideas with each other so they can produce something innovative and progressive.

Product-based

The product based organizational structure is completely the customer oriented structure. This structure is being organized in product line and each line reports to the CEO or an organization. And these product lines lend themselves in centralized and decentralized decision making process (Sandra M. Reed and Anne M. Bogardus, 2012, pg.77).

Geographically based

Geographically based organizational structure is basically the country based structure in which an organization widens its scope of business at international levels. The organization establishes its business in different countries or merged with other multinational organization globally. It often gets complicated if an organization has a large number or competitors. In other cases, the geographical based structure works successful where all the organizations are organized along product lines (Sharan Jagpal and Shireen Jagpal, 2008, pg. 552).   

Multi-functional and multi-divisional structures

Rob Dransfield (2004, pg. 76) demonstrated that some organizations basically use the formal organizational structure while in large firms the multidivisional and multifunctional organizational structures are being applied. To combine the different areas and expertise of organizations such types of structures are used.  

Span of control

Management is responsible for the organizational structure span of control. In span of control some individuals are being supervised by any individual manager. In large firms one manager supervise several employees while in small scale organizations, the numbers of employees are less. These spans are also called as narrow span of control and wide span of control (Jeff Madura, 2007, pg. 278).

Hierarchal levels

The organizational division is also an important factor of organizational structure. The organizations which apply the wide span of control use the flat organizational structure because it doesn’t have several layers to determine the workforce and its responsibilities while the other organizations which use narrow span of control have to adopt the tall organizational structures and cultures consisted of many layers (Mason Carpenter, Talya Bauer and Berrin Erdogan, v. 1.0).

Organizational charts

Sakthivel Murugan (2007) defines, “The organizational charts are the useful mean of providing the information about the organizational relationship”. Theses charts are also used as the tools of management controls. They graphically represent the managerial positions and interpretation between them. The charts are the blue print of organizational structure of an organization. There are several kinds of organizational charts, the vertical charts, horizontal chats, circular charts,

Matrix organization

Jeff Madura (2007, pg. 293) stated that organizations are often tackled with some specific conditions which demand some inputs from employees. In matrix organization structure, several parts of the organization interact on specific projects. These projects normally based on the short span of time so these individuals can perform their normal routine work under the supervision of same boss. The matrix organization is combination of product based and traditional functional structure (Carpenter et al, 2012).

Centralization and de-centralization

The centralization is an organizational structure which refers to the organization which is held under the authority of high leveled managers. The middle managers and supervisors monitor and control the day to day task of the organization and then reporting to the top managers. In this type of organizational structure, the middle managers are not liable and allowed to take decisions (Jeff Madura, 2007, pg. 288).

While in decentralization structure, the organizational structure functions are ruled under the supervision of several managerial and supervisions divisions. The self-government organization is the basic illustration of decentralization structure in which the managers and supervisors are responsible to make decisions where necessary (Dave Needham, 1999, pg. 232).

Internal and external network structures

The internal network structure consists of the information which is organized, processed, analyzed and reported to all levels of managerial position within an enterprise. Whilst the external organizational structure encompasses at international level as well as with the parent departments of an organization (F. L. Harrison and Dennis Lock, 2004, pg. 70).     

Flexible working

The flexible working organizational structure allows workforce and managerial positions to work in flexible and relaxant working environment within the organization. It helps to adopt and deal with the modern economical and financial business pressures. Every firm basically needs the functional, financial and numerical flexibility working structure (Rob Dransfield, 2004, p.85).

Organizational Structure
Organizational Structure

Organizational cultures

Culture is the way of life for individuals or particular group of society. It is consisted of norms, beliefs, customs and values for those specific social groups. People learn values from the environment where they live or work and this culture determines the way of life for these people. The behaviors and responses are being adopted by the environment. In an organization the culture is a personality of an organization. The way of working, rules, norms and values upon which the organization based and workforce is pressurized to act upon is the culture of an organization (Rob Dransfield, 2004, p.87). 

Classification of organizational culture

The organizational culture is further divided into different classes according to the culture and social styles. Following are the four main classifications of organizational culture.

Power culture

Power cultures can be illustrated as the spider web, which has a main central power point from which it influences and controls the workforce in outward direction from its center of power.

Role culture

Role culture is most identical culture class, which easily can be determined by the specific role or job rather than the performance of specific individuals or groups.

Task culture

In task culture, the management is basically responsible for all the problems and the solutions of an organization. The main concern is the job or project, not the individual because it is team working culture.

Personal culture

It is purely based on the individual’s performance and job. The talent, education, expertise and skills of an individual for his organization matter here.

Explain how the relationship between an organization’s structure and culture can impact on the performance of the business

Cultural norms and symbols

The cultural norms, beliefs and values are the ways and standards the organizational management or HRM settled up for all the levels of workforce. These values and norms basically motivate the workforce to perform best for their organization in order to make it well developed and progressed. The cultural norms are structured in decision making process according to internal, external behaviors and situations the organization has to deal with.

Development of organizational culture diagnosing behavioral problems

Psychology is the study of human behaviors and organizations take deep interest in studying the psychology because it helps them in seeking about the behaviors of their workforce and managerial positions. The main two concern often make organization complex in knowing ne is why people behave as they do and how can organization tend their workforce to behave as they want them to. The psychology basically helps organizations in behavioral problems and provides deep insight into different strategies such as absenteeism, group interaction, intelligence, stress management, resistance to change and levels of motivations.

Concepts, Principles, Perspectives and Methodology

Cognitive, behaviorist and psychoanalytical are three main approaches of psychology. These approaches assume different methods of researches according to the area of study for an organization. The qualitative, quantitative and action researches, survey and experimental design, psychological assessment, diaries, of an organization are some essential strategies of these concepts and approaches.

Perception

Perception is most identical organizational behavior because it is based on the judgments or decision making according to the given or immediate situations of an organization. The decisions are taken on these perceptions and misperception often leads towards the wrong and inappropriate decision making. Three main elements of a perception process are the perceived, the perceiver and the circumstances or situations. The understanding of individual’s perception of an organization is an essential part for the management. It helps in understanding that the perceptions of individuals are differ from each other so overcoming procedure must be vary from a person to person or specific groups.

Conflict

Organizational structure conflicts cause several internal and external issues for organizations and also for individuals of that organization. Wrong assumptions, perceptions, negative attitudes, opinions, rumors, and several other reasons cause conflicts in an organization. The conflicts are not always negative; they might of productive or destructive nature. They often rise on introducing new working protocols and environments, repositioning of goals, and developing new organizational structure and strategies.

Discuss the factors which influence individual behavior at work

Individual behavior at work

Personality of a worker of an organization is the main factor of determining the individual behavior at work. A worker have two types of personality aspects, one is stable characteristic, while other is distinctive characteristic. The stable characteristic of an individuals’ personality always remains same all time while the distinctive characteristics make him identical among crowds. The traits and types of the worker’s personality depend on the current situations and circumstances in an organization. An individual’s behavior at work is purely based on his traits and types of personality.

Intelligence Significance and nature of individual differences

The intelligence is an entity which is still not defined in any universal term because of its unique diversity. Few groups suppose it as an intellectual power while others takes it as the sense of understanding the environment. However, intelligence plays a vital role in understanding and responding towards the society, people and work. While the personality of an individual worker predicts the success of that person and how he will be working with other workers in an organization. It is a combination of behaviors and mental characteristics of a person which depict the person’s altitude and aptitude. It also has an important impact on how people behave at work.

Attitudes

Attitudes are the likes and dislikes of an individual, we all have some specific attitudes towards our environment and society. Attitudes are basically developed according to the personal experiences and environmental or social effects. When a person get anything positive and good in an organizational environment, it seems he must have a positive attitude towards is work or organization while the person who always make issues and stay annoyed have a negative attitude towards his work and place.

Aptitude or ability

The aptitude or ability is the individual capability of a person to learn something positive from his surroundings. In an organization the employers take much interest in the aptitude or ability of worker rather than his attitude.

Understand different approaches to management and leadership

Different approaches to management and leadership

Michael Armstrong and Tina Stephens (2005, pg. 4) stated that the main purpose of the management and the leadership in an organization is to provide direction, arrange changes and attain results through the accurate, proper and responsible use of resources. The management process is divided into the different methods which are used in achieving the organizational structure objectives. The main processes of the management and leadership approaches are planning, motivating, organizing and controlling.

Mangers are always leaders, while leaders are not always managers” (Michael Armstrong and Tina Stephens, 2005, pg. 5). But there is a clear distinction between the management and leadership processes. Management basically concerned about the achievement of organizational objectives by using all the available resources, while leadership focus on one an ultimate resource which is the “people”. It is essential for the managers to be a good leader as well.

Compare the effectiveness of different leadership styles in different organizations

Talha Iqbal (2011) stated in his book “The impact of leadership styles on organizational effectiveness” that leadership is an important part of any organization, but often leaders get confused on initial stages about how to do leadership. However, leadership is itself a quite comprehensive approach which has divertive aspects according to all field of life. The leadership styles basically portray the impact and application of leadership process and its effects on an organizational structure. The main three styles of leadership are autocratic, participative, and free rein. In autocratic style of leadership, all the decisions are taken only by leaders while in participative style the leader makes decisions with team involvement. The free rein leadership style is completely different because in this style leader leave all the decision making processes on the team.

Explain how organizational structure theory underpins the practice of management

Development of management thought

Rob Dransfield (2004, pg. 174) stated that the main concern of the managers is to secure maximum profitability and prosperity of the organization and providing the job satisfaction to the employees. The empowerment of employees by giving them responsibility to manage them is being developed to lower down the organizational and managerial responsibility. This hierarchal top down management trend was used in twentieth century for scientific managers.

The scientific management and the classical administration are the hierarchal structure of an organization. Managerial positions are responsible in this organizational structure for specific group of employees while the bureaucracy is a hierarchical authority and goal oriented system of an organization.

Evaluate the different approaches to management used by different organizations

Human relations, systems and contingency approach

The human relation approach is however necessary to get positive and expected outcomes form workforces of an organization rather than just pressurizing them to produce. It is necessary to respect the human forces of an organization by giving them incentive to motivate them for their organizational progress. The system approach refers to the organizational structure systems which are specifically introduced for the wellness and betterment of workforce so they can return the positive production.

Andrew J. DuBrin (2011, pg. 27) demonstrated that the contingency approach basically attained when not any other approach or structure is being applied. In an organization, sometimes such situation occurs when HRM have to decide something on immediate basis according to the current circumstances, so the contingency approach thus applies.

Understand ways of using motivational theories in organizations

Motivation is basically related with the most important question, why people do what they do. Motivation is a key to understand the various types of organizational behaviors. What factors and strategies motivate the employees are some basic considerations an organization supposes first. The organizations with clear motivational protocols always generate the positive outcomes (Steve M. Jex, 2002, pg. 209).

Discuss the impact that different leadership styles may have on motivation in organizations in periods of change

John Darling and Anita Leffel (2010) stated that different leadership styles influences the organizational structure functions in various ways. The team leader affects the other team members through this decisions and practices to motivate and facilitate the competence in organization. The leadership styles adopted by the team members are based on the behaviors, thoughts, communication, and interaction of team members. Organizations get benefited from the well-established leadership styled system among team members and the leader. It inspires the collective and entrepreneurial spirit to the organizational team.

Compare the application of different motivational theories within the workplace

Motivation is a process to stimulate a person to perform his action or role in achieving the goal. Motivation has several kinds, thus the motivational theories are also diverse in numbers. The motivation is becoming more important in present era of competition at work place. The organizational management implies several motivation theories to stimulate themselves as well as to its employees. The scientific management was fir introduced by Fredrick W Taylor and known as the most important motivational theory for organizational structure development. He also introduced the Piece Rate motivational theory through which the employee gets salary according to the production average. This theory better stimulate the workforce to struggle more to increase the organizational productivity so they can get more salary (Friederike Hertel, 2003, pg. 3).

Evaluate the usefulness of a motivation theory for managers

(Dave Needham, 1999, pg. 263) As it is mentioned before that the managers are only concerned about the productivity and profitability of the organization by applying all the resources available, while leaders are responsible for the people of his team members not about the resources. The leadership is an important motivational theory for the managers to make them able to stimulate themselves for their organization. For progressed organization, the manager must be a good leader also. The scientific management is ne mot highlighted motivational theory which better stimulate the managers to boost up themselves and their personnel to struggle more for the profitability of an organization.

Understand mechanisms for developing effective teamwork in organizations

The system of developing the effective teamwork in an organization develops the respect, trust, and support to the leadership environment and thus improves the individually as well as collectively performance and attitudes for the organizational structure achievements by motivating the team members to perform at high levels.

References

Nicotera, A. M., (2003) Understanding organization through culture and structure: Relational and other lessons from the African American organization. Routledge.

Marcia J. (2003) E‐learning: emerging uses, empirical results and future directions. International Journal of Training and Development, 7(4), 245-258.

Chen, G. M., & Starosta, W. J. (1998) Foundations of intercultural communication. Boston, MA: Allyn and Bacon.

Madura, J. (2007) Impact of the QQQ on liquidity and risk of the underlying stocks. The Quarterly Review of Economics and Finance, 47(3), 411-421.

Dransfield, R., (2004) Leeds United scores own goal. Teaching Business and Economics, 8, 20-22.

Reed, S. M., & Bogardus, A. M. (2012) PHR/SPHR: Professional in Human Resources Certification Study Guide. John Wiley & Sons.

Carpenter, M. A., Li, M., & Jiang, H. (2012) Social Network Research in Organizational Structure Contexts A Systematic Review of Methodological Issues and Choices. Journal of Management, 38(4), 1328-1361.

Carpenter, M. A., Bauer, T., & Erdogan, B. (2009) Principles of management. Flat World Knowledge.

Needham, D. (1999) An Innovative Method for Evaluating Strategic Goals in a Public Agency Conservation Leadership in the US Forest Service. Evaluation Review, 23(1), 77-100.

Jagpal, S. (2008) Fusion for Profit: How Marketing and Finance Can Work Together to Create Value. OUP Catalogue.

Murugan, M. S. (2007) Management principles and practices. New Age International.

Harrison, F. L., & Lock, D. (2004) Advanced project management: a structured approach. Gower Publishing, Ltd.

Armstrong, M., & Stephens, T. (2005) A handbook of employee reward management and practice. Kogan Page Publishers.

DuBrin, A. J. (2011) Impression management in the workplace: Research, theory and practice. Routledge.

Jex, S. M. (2002) Organizational structure psychology: A scientist-practitioner approach. John Wiley & Sons.

Hertel, F. (2003) Motivation in the Workplace.

Darling, J., & Leffel, A. (2010) Developing the leadership team in an entrepreneurial venture: a case focusing on the importance of styles. Journal of Small Business & Entrepreneurship, 23(3), 355-371.

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Project Management Standardization

Standardization of Project Management

View This Dissertation Here

Project Management Standardization Dissertation – Poor project performance has led to industry calling for Standardized Project Management tools, yet it is the organizations themselves who have chosen to overlook or ignore the tools while implementing organization strategy that exists for their assistance. This paper investigates the implications change management practices have on individuals as a result of strategy change, whilst challenging the poor Project Management knowledge and understanding of individuals within project based organizations.

It also identifies the currently poor application of Project Management theory including the alarming levels of academic qualifications many practicing Project Managers currently hold. The purpose of the dissertation was to explore this call for standardization by conducting a review of the knowledge, understanding and opinions of individuals regarding: change management implications of organization strategy implementation; and organizations? application of Project Management theory.

Project Management Standardization
Project Management Standardization

However, while conducting the review, offering discussion points or arguments, it is important to recognize when talking about Project Management Standardization, it is not an exact science and there are several fundamental floors such as the theory is relatively abstract and many parameters are difficult to be measured as they are usually based upon the opinion of industry personnel with predetermined beliefs.

The aim of the dissertation was to identify and understand evolving management theory and how it aligns with organization strategy as it was believed that with such a large amount of capital being spent on projects, organizations did not place a high enough level of priority on Project Management processes or academic qualifications. Whether this is a result of ignorance, or just a pure lack of understanding of the implications on the behalf of executive level management, was the basis for discussion throughout the dissertation. Finally projects are aimed solely at either increasing profit in line with organizational mission requirements or increasing efficiency through productivity. So the dissertation is written with the intention of raising awareness to improve project performance and not just to highlight organizational short comings.

The dissertation aim is to investigate how evolving Project Management theory, organizational strategy and change management implementation and Project Management academic levels influence individual’s perceptions and actions within project based organizations.

Project Management Standardization Dissertation Objectives

  • To identify and introduce evolving management theory
  • To analyze the role that Project Management has within organizations strategic management processes
  • To investigate the level of understanding individuals within organizations have of Project Management processes
  • To investigate the academic levels of individuals within project based positions
  • Conduct a questionnaire based on the aims, objectives, and literature review formulating a strategic set of questions to challenge senior managers with an interview in relation to the concerning trends

If you enjoyed reading this post on standardization of project management, I would be very grateful if you could help spread this knowledge by emailing this post to a friend, or sharing it on Twitter or Facebook. Thank you.

Health and Safety Management

Health and Safety Management Essay

Health and Safety Management – The British Airways Company being a member of the European airlines’ royal family, carries cargo and passengers to destinations exceeding 150 in some 75 states from hubs at the city of London’s Heathrow, Gatwick and airports in London city. The carrier does its operations to a fleet of aircraft exceeding 240, which consist mainly of Boeing jets and Airbus.

BA (British Airways) stretches its network and services to destinations that exceeds 400 in total, through agreements of joint business and relationships that are code shared with AMR’s airlines from America and Oneworld alliance members, for instance, Qantas. Iberia, which was Spain’s number one airline, merged with the BA (British Airways) in 2011 that led to the formation of IAG (International Airlines Group).

The company comprises of a workforce personnel who add up to approximately 57,000, who happen to be distributed to several sectors or sections, for instance, the management, customer service, grounds operations, security, finance, and so on. However, BA being a well recognized airline company, my company is an affiliate of it whereby it deals with clearing and forwarding of goods that are being transported.

The company does its operations on ground level only mainly for BA airlines, and it has a workforce of about 450 employees. The employees are spread across and all over within the airline’s are of work (grounds only). The company mainly deals with luggage on transport or that are imported or exported, cleaning of the aircraft, luggage inspection and so on.

Health and Safety Management

For every company that has employees or workforce that exceeds five in number, should come up with health and safety management measures as required by law in addition to several other management of safety that are subjected as legal requirements. The British Airways (BA) is one of the companies that are subjected to this. Every year, over 200 people get killed and over a million get serious injuries every year at their work stations or places.

Those who suffer from illnesses made worse by or caused by their work are over two million. Forestry industries are the industries that are well known to be more dangerous, and workers in this sector are prone to more dangers that can result to death and/or illnesses when they are at work compared to any other industry or company, for instance, in construction sites or even airports in this case. However, no danger is greater than the other, provided that it can maim or even kill, it is still danger and for that reason, safety and health measures should to be put to safeguard the lives of the workers at the work premises.

Health and Safety Management
Health and Safety Management

The provision of health and safety management training and information has its importance to every individual in instances where it helps to; ensure that workers or employees is not made ill or/and injured by the kind of works that they engage themselves in, developing of a culture that is safe and of positive health, whereby healthy working and safety becomes every worker’s second nature, realizing and finding out how to manage safety and health better and finally, meeting the legal obligation of protecting the health and safety management of workers.

Training the workers effectively also has its significance, whereby; it contributes towards enabling the workers to be experienced in safety and health, assists companies to keep away from stresses that ill health and accidents cause, and finally, help the companies to stay away from financial expenses that are likely to be caused due to ill health occupations and accidents. In addition, it is important to consider that, not all losses are covered by the insurance company. Products that are damaged, production that are lost and workforce that lacks motivation can all be the cause.

Health and Safety Management at Airports

Health and safety management in airports is paramount in the delivery of every project, and operate a system of safety management. The system of system management adopts the main beliefs of the guidance on successful health and safety management and is controlled in full observance with every current legislation safety. Young and Wells (2011 p. 78) give out a suggestion that, highlighting that is done is normally based on regulations on construction, design and management (2007) with airports gratifying the role of contractor or principal contractor, the assessment of risk for the purposes of identifying hazards, risk evaluation, implementation of harmless and secure systems of work and related controls, providing training and awareness for every employee from every level and finally, controlling of the sub contractors.

Like in most airports, according to Fuller and Varssie (2004 p. 112), the health and safety management and systems, replicates detailed approach to in the provision of work for every employee and the company’s duties to others. The company has a safety record that is of excellence, managers who normally attend course of safe management, are usually trained with perfection. The monitoring and the enforcement of the policy regarding health and safety management performance across every business activity through:

  • Toolbox talks
  • Safety audits and inspections
  • Reporting of accidents and near miss
  • Regular reports about safety
  • The involvement of a member of staff and communications
  • Regular meetings regarding management team, with a resilient stress on performance of safety
  • Regular meetings on management with a resilient highlighting on management, safety and performance

Accident assessment at workplace

According to Ludwig and Ayres (2007 p. 67) they suggest that, there are various common accidents that do occur in workplace. Injuries at places of work that are suffered by workers who work in the airport, are not restricted to scrapes, paper cuts and other negligible issues. A good number of workers (probably thousands) — whether they conduct their work inside an office or at a site that construction is underway — put up with incapacitating, life-changing injuries every year. If anyone or a loved one for that matter, became ill withed an injury when he was on his place of work, he should seek out for the assistance he needs as soon as possible.

According to Ludwig and Ayres (2007 p. 76), waiting excessively for so long to file an allegation, could put one’s capability of obtaining full reimbursement at jeopardy. For example, Hank Barnett of The Barnett Law Firm has important familiarity of helping workers who are injured to obtain their compensation via the compensation system of Georgia’s workers’. As of 1983, he has assisted a lot of clients file winning claims or appeals a refutation of reimbursement benefits of workers’. He figures out the functionality of the system, has familiarity in dealing with companies that handle indemnity (insurance companies) and works hard to defend the rights of his clients at any given time.

Common Injuries Due to a Workplace Accident

A number of law firms, among them, The Barnett Law, Firm have assisted workers with injuries who are from the range of syndrome of carpal tunnel and injuries of repetitive stress to accidents that have caused a catastrophic death of a cherished one. It is understood that that a number of injuries may have need of an employer to create accommodations for instance, an impermanent change in duties of work, at the same time as others averts the injured worker from working for extensive periods of time. Whatever the state of affairs, According to Fuller and Varssie (2004 p. 134), the law will make sure that the injured worker is given the care and reimbursement he necessitates. Other common workplace injuries include:

  • Neck and back injuries
  • Injuries of the spinal cord
  • Brain trauma (TBI) and head injuries
  • RSD (reflex sympathetic dystrophy) and chronic pain
  • Ankle, knee and leg, injuries
  • Occupational / workplace disease
  • Burns or injuries those are chemically-related
  • Psychological disorders
  • Aggravation of pre-obtainable injuries

The law is conscious that one is going through a traumatic time. Therefore, it concentrates on getting results fast and provides the clients with the kind of respect they ought to have (National Research Council 2012 p. 89).

Common examples of accidents at work – Health and Safety Management

Accidents at places of work can occur at whichever time and to any person whether an individual is working in an office, a warehouse or a shop. According to Fuller and Varssie (2004 p. 167), scores of these will rely on the kind of working surroundings, for example, recurring Strain Injury is more probable to occur in an office like place of work and injuries of the back from physical work. Despite the fact that it is the employer‘s responsibility of anyone to minimize the risk of accidents, they do unluckily take place from time to time. There are scores of injuries of dissimilar types that can come to pass in the places of work including:

Trips and Slips

Just about a third of accidents that come about in the places of work are a consequence of trips and slips. Trips and slips injuries take place mainly for the reasons that are relating to wet floors because of bad weather poor or housekeeping, or objects hindering the footpath for example cables or floors that are uneven. Young and Wells (2011 p. 126) suggest that these injuries can vary from negligible bruises and bumps to main fractures. To minimize such incidences or accidents then some measures have to be put to combat injuries that are liable to be brought about by trips and slips. Ensuring that there should be no wet floor and incase of any, then it should be dried up immediately. The floors should be rough like to enhance grip while walking hence no trips will be likely to occur, and finally, doing a thorough housekeeping and ensuring that no object is hindering the footpath. If this is followed, least amount accidents will be witnessed.

Lifting

Yet again this is an additional major reason of accidents in places of work. Accidents that are resulted by lifting are more possible to take place amongst those staff members who have to take on manual management including pulling, pushing, lowering, lifting or carrying huge items on a customary basis. An injury can take place if the maneuver is not done in the approved manner or when an individual has not been shown how to perform the task as it should be in line with health and safety management course of action. People in this particular of environment should be well taught on how to perform these tasks appropriately in order to avoid injuries at work. In addition, the use of machinery should come to place in order to make their work easier when it comes to lifting of heavy objects, for example, the use of fork lifts

Falls

According to National Research Council (2012 p. 109), this kind of accident can consist of falling from stepladders or other platforms that are raised from the ground, for example, scaffolding. Injuries that are obtained from falling can array from slight strains or sprains to major back or head fractures and injuries. In this scenario, there is only one simple step that can keep individuals in the places of work safe, and that is simply them being watchful and careful

Workplace Traffic Accidents

These can take place in any place of work that makes full use of motorized vehicles like for example, in warehouses, and airports for that matter. Injuries can take place if the automobile that is being used, crashes or overturns or when items descend from it. The safety measures for this case are quite strict and should be followed in order to avoid such cases. As Ludwig and Ayres (2007 p. 89) suggests that the staff using the automobile, should acquire appropriate training on how to use the machinery, in terms of the required speed, maximum weight to be lifted (commonly in forklifts) and so on, because when it comes to automobiles, it is required that care and watchfulness should be the order of the duty.

Burns

Young and Wells (2011 p. 117) suggest that individuals who do their works in the kitchen, are not the only ones who can go through major or minor burn injuries, but even those perform electrical work are also capable of suffering from burns typically because of shock caused by electricity. The only safety measures to be put to practice in this situation, is the wearing of gloves at all times and never handling hot or naked wires with bare hands.

Neck and Back injuries

Despite the fact that working in an office can appear safe enough, having the same sitting position from time to time can occasionally result to neck and back injuries. According to Reese (2009 p. 113), this can take place if an individual is not in the appropriate sitting position, for instance, when the chair too low or high for the desk, no support of the back, when the computer too low so drooping over the desk. Getting the appropriate office furniture is the solution on top of sitting in the correct position, normally, 90 degrees and eyes straight to the screen.

Driving accidents – these take place to those individuals, who engage in driving as part of their work, for instance, taxi drivers, dispatch riders, sales rep, fast food delivery and so on. Following traffic rules is the only solution to avoid accidents, which is common sense.

Heavy apparatus – members of staff who work with heavy and plant apparatus for instance industries that deal with construction can put up with major work accidents. The use of machinery should be put to practice and weight balancing should also be put in mind to avoid accidents that are being caused doe to overload.

The RSI (Repetitive Strain Injury) – is mainly resulted by excessive use of the arms or hands to do a recurring job for so long without taking a break, for instance, factory work, typing, writing, driving, and so on. Taking a break is important n this case and this allows the body to coordinate well.

Problems with Vision– this injury can frequently take place to the individuals who make use of computers as their working toll on a daily basis. This injury is becoming the most widespread injury because of the frequent exploit of computers in the place of work.

PTSD (Post-Traumatic Stress Disorder) – according to Taylor (2005 p. 167), it is a type of a concern disorder that is able to arise after an individual has experienced or witnessed a shocking and disturbing event that drew in the risk of injury or death. Post-Traumatic Stress Disorder is more frequent in jobs of, for example, driving as one could possibly be involved in a dreadful car accident, or working in a business that may possibly be held up, for example, banks, post office or bookmakers.

Example of an Accident That Occurred

Not much time has passed since one of the mentioned accidents happened to one of the workers and sustained serious injuries that he obtained from burns caused by electric shock. The worker and his colleagues left their respective places of work late in the night and were headed for the engineering department where all the repairs are done. They normally hang out there as they catch up on old time stories, because apparently, they happened to be friends who were united together by the job that they were doing.

It rained heavily that night that the drainage system was becoming a nuisance, so the rain water flooded everywhere and water managed to find its way in the room. Peter accidentally dropped his phone and rushed to pick it up, but without knowing, he supported himself with the wall and his other hand reaching for the wet phone and got an electric shock that was caused by a naked cable that was being used for welding. The burns were so serious that his hand had to be amputated. Following this incident, the colleagues also developed PTSD (Post-Traumatic Stress Disorder) that made them to develop fear of that particular place for the reasons that, it reminds them of that incident.

In such cases, according to National Research Council (2012 p. 78), there are measures that if were put into practice, the occurrence would not have happened. The first thing that should have been done is making sure that all the apparatus that use electricity especially of high voltages, should have been properly checked, managed and repaired, for the reason that any naked wire can result to serious damage as experienced by the staff member. The second thing that should have been done, is ensuring that water drainage system should be regularly checked and corrections should be done upon being spotted, because apart from the shocking incident, water can make floors slippery hence casing someone to trip and fall, something that can bring about head, back or even spinal injuries, and as known, these are deadly injuries with severe results. Lastly, tools must never be left in the open, especially electric tools; they should be disconnected from any source of electricity and be stored and kept in dry places in order to reduce such cases.

References

Fuller, C., & Vassie, L. H. (2004). Health and safety management: principles and best practice. Harlow (Essex), Pearson Education.

Ludwig, D. A., & Ayres, M. (2007). Safety management systems for airports. Washington, D.C., Transportation Research Board. National Research Council (U.S.), Airport Cooperative Research Program, United States,

Ricondo & Associates, Planport GMBH., Two Hundred, Inc, & Flughafen Zürich.      (2012).Airport apron management and control programs. Washington, D.C., Transportation Research Board.

Reese, C. D. (2009). Occupational health and safety management: a practical approach. Boca   Raton, CRC Press.

Taylor, B. (2005). Effective Environmental, Health and Safety Management Using the Team Approach. Hoboken, John Wiley & Sons.

Young, S. B., & Wells, A. T. (2011). Airport planning and management. New York, McGraw-Hill Professional.

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Workplace Health and Safety

Application of Risk Management: In the Perspective of a Workplace Health and Safety Manager

Introduction

The objective of this paper is to discuss the problem related to workplace health and safety. Workplace health and safety hazards are mostly preventable provided proper precautions are taken in proper time to avoid costly losses of life and property. A hazard can be anything causing injury or disease, e.g. a health hazard, a safety hazard or an environmental hazard. The paper discusses about an organization dealing in petrochemicals. It proceeds with the identification of hazards related to the industry and designing a system to manage the heat problem.

Application of Risk Management

Starting in 1987 the US petrochemicals is a Texas Corporation operating in over 30 countries now. The company is operating successfully in meeting the demands of its customers across the globe which is beneficial for the company itself in many ways. The company is known for its timely delivery at an edge cutting price. The company has earned a worldwide reputation for its workplace health and safety management. Common workplace health and safety hazards include: transportation accidents, slipping and falling, communicable diseases, toxic events, chemical and gas exposure, workplace violence, electrocution, getting struck by objects, explosion, repetitive motion, hearing loss and ergonomic injuries, heat stress, etc.

Heat Situation is the most common incident at any chemical industry and the US Petrochemical is not an exception and there is a well-defined and established system to manage risk at the US Petrochemicals which is discussed in detail in the following paragraphs (Crockford and Neil, 1986).

Identification of hazard

At the US Petrochemicals there are various ways for identifying hazards at workplace:

Inspection: A regular walk through the workplace with a hazard checklist is a direct way of identifying many hazards. The inspection should be for physical things as well as the systems of work and work procedures. The action can be taken immediately if any straight forward problem is detected. Sometimes simple matters like non-functioning of risk control or it is not being used  or not things not kept at appropriate place, be detected which don’t need formal risk assessment and immediate action can be taken to control or eliminate the risk. Sometimes the inspection walk-through detects a situation of immediate and substantial danger to working people (Hubbard and Douglas, 2009).

Finding and applying available information: There are many sources of information which can be made readily available for particular industry or job or type of activity. Many organizations which work for the health and safety of the people publish both hard and soft copies of information on a wide range of OHS topics and industries. Industry unions and associations can provide substantial information about industrial and job hazards, this is essential to the workplace health and safety manager.

Testing and measuring: Often measurements are required to decide about any action specially in case of hazards like noise and atmospheric contaminants. For estimating general noise levels simple comparisons can be made. Measuring and testing provide accurate information about the hazard. Simple machines like noise meters, atmospheric testing machine can be used for the purpose.

Surveys of employees and others at the workplace: Information about occupational stress, workplace bullying, muscle or skeletal aches and pains which may be signal for potential hazard, can be obtained from the people by conducting surveys at the workplace.

Analysing records and data: Another way of identifying hazard is to analyse data and records. Records and data of incidents and injuries are valuable source of information about hazards.  Some organizations mostly large ones even have records or data which show trends of injury or incident. There are many safety authorities which publish data and records about the common sources of injury for different industries. Data can also be shared from other similar industries which have it.

Workplace Health and Safety
Workplace Health and Safety

Risk Assessment

The process of developing understanding and knowledge of risks and hazards to take suitable decision to control them is called risk assessment. Existence of understanding and knowledge and understanding of risks and hazards minimizes the necessity of risk assessment. At the US Petrochemicals the objective of risk management is to determine;

  1. What is the level of harm that can occur
  2. How will the harm occur
  3. What are the chances of occurring harm

A risk assessment should be tailored to the organization and the situation in which it is to be conducted. It may be elaborate and formal or simple as structured discussion. It should be done when the knowledge and understanding about a risk or hazard is limited or there is uncertainty about its outcome or everything that may go wrong is estimated or there is uncertainty about the impact of hazards upon each other to produce greater or new risks (Deloach J. 2012).

Risk Control

The risk control strategies vary as per the need of the organization and the situation. The strategies mentioned below can be used in an appropriate combination or independently.  Normally they are used in a combination at the US petrochemicals. They are as follows:

Eliminating Risk – Elimination of risk is the most effective action which can be taken to control risk. This can be done by eliminating the hazard which may not be possible. In such cases as many risks associated with the hazards as possible can be eliminated (British Occupational Hygiene Society Technical guide).

Avoiding risk: Risk avoidance means to avoid activities which may lead to possibility of loss. This is a calculated decision which may also mean to avoid earning profits because no risk no gain.

Preventing Loss: For unavoidable risks, the methods of ‘prevent the loss’ should be used.  Preventing the loss means breaking the sequence of events which cause loss.

Reducing Loss: For unavoidable losses, the methods of ‘minimize the severity of injury or financial impact’ should be used. These methods include activities of pre-loss reduction or post loss reduction.

Reducing risks– Practically it is not possible in many cases to eliminate hazards or risks but steps can be taken for changing the risk to reduce it. It is the most effective way because it is comparatively less reliant on people performing faultlessly. It can be done by substituting the risk with a lesser risk, by changing the process of work, using technology and isolating people from exposure.

Duplication/Separation: The aim of the risk control techniques is to minimize high losses and not to prevent, avoid or reduce any single operation or asset. Separation means isolating one exposure from others, e.g. a business can occupy different buildings at different locations instead of one big building. Duplication means utilizing spares or backups, e.g. a business can store the spares or backup data at different location.

Transferring Risk: Transferring risk means making such contracts with parties, other than insurance companies, such as vendors, service providers, suppliers and contractors which include transferring risk to them. This is also termed as contractual risk transfer.

Changing exposure of people to risk– The behavior of the people or the way they expose themselves to the risk can be changed to control the risk. This does not change the risk but controls it by protecting the people. This can be done by improving the skills of the people which will limit the chance of failure, by limiting the time of exposure and by providing protective equipment to them.

Controlling the risk in heat situation– For heat situation some different and specialized steps are taken like reducing or removing the sources of heat if possible, controlling the temperature, providing mechanical aids for reducing work rate, regulating the duration of exposure to heat by providing breaks or rest facilities, preventing dehydration, providing protective clothing and equipment and by providing special training about heat stress.

Implementing control strategies and assigning responsibility

The responsibility of a workplace health and safety manager is not only to establish only a system to control risk or hazard but also to ensure its proper implementation according to a suitable approach of the organization. At the US petrochemicals there is a detailed guide for different departments of the company for the implementation of control strategies and assigning responsibilities. The guide has key questions like what does the department do, how is the department organized or managed, what is the size of the department, what are the numbers of hazardous processes and hazards, what are the types of risks or hazards, what levels of harm, risks or hazards do, etc. Being a large organization, the US petrochemicals has the benefit of established formal process of implementation which ensures certainty of results and consistency and this is possible due to availability of many hazardous processes, large number of employees and many layers of management (New and expectant mothers at work).

Risk Monitoring

A risk management system can only be effective if there is a structure of reviewing and reporting to ensure the effective identification and assessment of risks and hazards and proper control over it. Compliance of standards, review of standard performance and regular audit of the process is required for improvement. At the US Petrochemicals it is assured by the monitoring system that the controls are in place and procedures are clear to everybody to follow them adequately. Changes are made in the system with the changes in the environment and the organization. The monitoring also determines that the intended outcomes were achieved, appropriate information was collected and appropriated processes were implemented and the decisions taken were appropriate according to identification and assessment (A handbook for workplaces).

Conclusion

Workplace health and safety is a key issue for any organization and the US Petrochemicals is not an exception. The responsibility of a workplace health and safety manager is tremendous and keeps him on toes because the things in the business world are changing fast and with this organizations are also changing and it is a challenge to keep changing the risk management strategies according to the organization. The US Petrochemical is a big organization with large number of staffs and different layers of management which makes the implementation of risk management strategies accurate. The risk management involves various steps like identification of risk or hazard, assessment of risk and hazard, control of risk and hazards, implementation of strategies of risk and hazards and finally the monitoring of the process. All these steps require serious and careful attention to avoid any incident and ensure health and safety measures.

References

A handbook for workplaces, Controlling OHS hazards and risks, Edition No.1, November 2007

British Occupational Hygiene Society Technical guide, No 12 The thermal environment (Second edition) H and H Scientific Consultants Ltd 1996 ISBN 0 948237 29 5

Crockford and Neil, 1986. An Introduction to Workplace Health and Safety Management (2 ed.). Cambridge, UK: Woodhead-Faulkner, pp; 18, ISBN 0859413322.

Deloach J. 2012. Key Elements of the Risk Management Process and Workplace Health and Safety.

Dorfman and Mark S. 2007. Introduction to Risk Management and Insurance ,(9 ed.). Englewood Cliffs, N.J: Prentice Hall. ISBN 0-13-224227-3.

Hubbard and Douglas, 2009. The Failure of Workplace Health and Safety Management: Why It’s Broken and How to Fix It. John Wiley & Sons.,pp; 46.

New and expectant mothers at work: A guide for employers HSG122 (Second edition) HSE Books 2002 ISBN 0 7176 2583 4

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