ARM 55 Chapter 6 - PrepAdemyprepademy.com/.../09/ARM-55-Chapter-6-Notes-Pages.pdf · –Turner Broadcasting Systems ... employees had carpal tunnel surgery. From 1998 –2002, only

9/6/2012

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Associate In Risk Management

ARM 55 –Assignment 6

Controlling Personnel Loss Exposures

Presented by:

Lynne Lovell RHU CLU ChFC CIC CRM ARM CPCU AFSB ASLI AINS MLIS CRIS

Learning Objectives

1. Describe the human resource potential of an organization and the factors that affect it

2. Describe the following causes of loss

a. Work-related injury & illness

b. Retirement & resignation

c. Work-related violence

3. Explain how avoidance, loss prevention, loss reduction & separation & duplication can control work-related injury and illness

Learning Objectives

4. Explain how to control employee retirement

& resignation cause of loss

5. Explain how to control work-related violence

cause of loss

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LO#1 Human Resource Potential &

Factors Affecting It

HUMAN RESOURCE POTENTIAL

Collective capacity of that group to

produce goods or services of value

by using present skills and knowledge

or the skills and knowledge

developed in the future

OR

Knowing how to coordinate and direct

the efforts and good will of the people

who work in a business is critical

to business success



• Essential factors to maximize human

resource potential

– Good health

– Freedom from disabling injuries or illnesses

– Workplace free from violence and threats

• Retirement or resignation of key personnel

reduces human resource potential until a

replacement can be found and trained



• Human resource potential affected by

– Health & education of general population

• Quality & potential productivity of current & potential employees

• Organization more able to select employees with promising human resource potential

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– Proper personnel selection

procedures

• Identify talented/skilled people

to choose best

• Screen out those not likely to

perform, susceptible to injury or

illness or who might resign to

reduce hiring and training costs

• Ensure state or federal

employment laws are not

violated



– Have sound processes

for placing, developing

& promoting employees

– Preserve existing

productive capabilities

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– Rehabilitation of injured or ill employees

• Speeds recovery, restoring as fully as possible physical, intellectual, social & interpersonal skills

• Produce positive net financial returns for an organization

– Retention of productive employees

• Keeping employees on the job as long as they remain productive & forestalling premature retirement & resignation

• The loss of institutional knowledge & future potential contributions to the organization’s success

Quiz Question

LO#2 Personnel Causes of Loss

• Work related injury & illness, retirement &

resignation, & work-related violence

– Physical consequences

– Psychological consequences

• Most prevalent are work

related injury & illness

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– Work related injuries – disabilities arising from sudden external events

– Work related illness – disabilities arising from prolonged exposure to harmful conditions or a sudden harmful condition not immediately manifesting itself

– Work related injuries occur most often in manufacturing & retail produced by four factors

• Machinery & equipment use

• Materials handling

• Vehicle fleet operations

• Physical conditions of premises


– Work related illnesses often result of prolonged exposures to chemical, biological, ergonomic & physical forces or from a sudden event causing illness to manifest itself over time

• Long-term chemical exposures

• Noise levels

– Ergonomic stress

• Physical stress on joints, bones, muscles & nerves created by environmental factors such as lighting, glare, noise, color & temperature

• Applies scientific disciplines to improve the fit between people and their jobs

www.osha.gov

• Success with Ergonomics

– Turner Broadcasting Systems (Georgia, 10,000+ employees)

– Success Brief: from 1993-1997 only three employees had carpal tunnel surgery. From 1998 – 2002, only one employee had surgery for carpal tunnel syndrome and two had diagnoses and non-surgical treatments. The report of claims for tendonitis has also decreased.

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www.osha.gov

• The Problem

– Experiencing a high incidence of carpal tunnel

syndrome (CTS), especially among "Type A"

personalities who "don't like to take breaks" &

work long hours, as often is required in the

television industry

www.osha.gov

• The Solution

– Implemented a four-part ergonomics program to

focus on: workstation analysis

• Employee education and awareness

• Medical treatment

• Consulting with ergonomics equipment and furniture

manufacturers

• A task force that includes employees, doctors, risk

management professionals and members of interior

services, legal and human resources department

www.osha.gov

• Task force results:

– Potential risk is identified through workstation evaluations and periodic employee evaluations.

– Ergonomics training and education begins with new employee orientation that teaches warning signs and appropriate exercises.

– Existing employees receive training through Departmental meetings and/or one-on-one evaluation and assessment.

– The company also works closely with medical professionals to help diagnose and treat injuries.

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www.osha.gov

• The Impact

– The frequency of claims for tendonitis has decreased.

– The severity of CTS claims has decreased.

– Significant financial savings from reduced workers’

compensation costs have been realized from early

treatment, standardizing furniture and educating

employees.

– Employees are requesting and receiving assistance

early on, which also helps morale.


– Radiation

• Ionizing radiation by X-rays & gamma, alpha & beta

radiation from radioactive materials

• Nonionizing radiation produced by microwaves, radio

waves, visible light, infrared light & ultraviolet light

– Microwaves, infrared light & radio frequency radiation can cause

overheating & burns at close distances

• Industrial lasers emit

concentrated visible light

causing possible eye damage

www.osha.gov

• RADIATION

• Training Materials

• Ionizing

– Introduction to Ionizing Radiation [PPT*]. OSHA Slide Presentation, (2001), 54 slides.

• Non-Ionizing

• General

– Non-Ionizing Radiation: Standards and Regulations [PPT*]. OSHA Slide Presentation, (2002), 141

slides.

• Radio Frequency (RF) and Microwave (MW) Radiation

– OSHA Regulation for RF Radiation Exposures [PPT*]. OSHA Slide Presentation, (1995), 16 slides.

– OSHA Requirements for Tower Construction Related to RF Radiation [PPT*]. OSHA Slide Presentation,

(1999), 42 slides.

– Suggested Update to RF Standards Related to Wireless Communications [PPT*]. OSHA Slide

Presentation, (2001), 90 slides.

– Update of RF Radiation Protection Standards [PPT*]. OSHA Slide Presentation, (1999), 29 slides.

• Laser Radiation

– Introduction to Laser Safety [PPT*]. OSHA Slide Presentation, (2001), 48 slides.

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– Temperature extremes• Must maintain constant internal

body temperature

• Too hot or cold endanger productivity & health

– Poor air quality• Humidity, oxygen content,

cleanliness, movement & ionization of air is substandard

• Pollution can enter from outside or originate within the buildings

• Per OSHA inadequate or improper ventilation is cause of about half of all indoor air quality problems in nonindustrial workplaces

www.osha.gov• Tips To Protect Workers In Cold Environments

• Prolonged exposure to freezing or cold temperatures may cause serious health problems such as trench foot, frostbite and

hypothermia. In extreme cases, including cold water immersion, exposure can lead to death. Danger signs include uncontrolled

shivering, slurred speech, clumsy movements, fatigue and confused behavior. If these signs are observed, call for emergency help.

OSHA's Cold Stress Card provides a reference guide and recommendations to combat and prevent many illnesses and injuries.

Available in English and Spanish, this laminated fold-up card is free to employers, workers and the public. Tips include:

How to Protect Workers

– Recognize the environmental and workplace conditions that may be dangerous.

– Learn the signs and symptoms of cold-induced illnesses and injuries and what to do to help workers.

– Train workers about cold-induced illnesses and injuries.

– Encourage workers to wear proper clothing for cold, wet and windy conditions, including layers that can be adjusted to

changing conditions.

– Be sure workers in extreme conditions take a frequent short break in warm dry shelters to allow their bodies to warm up.

– Try to schedule work for the warmest part of the day.

– Avoid exhaustion or fatigue because energy is needed to keep muscles warm.

– Use the buddy system - work in pairs so that one worker can recognize danger signs.

– Drink warm, sweet beverages (sugar water, sports-type drinks) and avoid drinks with caffeine (coffee, tea, sodas or hot

chocolate) or alcohol.

– Eat warm, high-calorie foods such as hot pasta dishes.

– Remember, workers face increased risks when they take certain medications, are in poor physical condition or suffer from

illnesses such as diabetes, hypertension or cardiovascular disease.

– For free copies of OSHA's Cold Stress Card in English or Spanish, go to OSHA's website, www.osha.gov, or call 1(800) 321-

OSHA.


– Retirement or resignation

temporarily reduces human

resource potential & depends

upon how easily employee can be

replaced

• Key personnel perform critical

service for organization

• Group(s) may represent key

personnel loss exposures

• Loss is future value individual would

have added to organization

• Only some reasons for leaving are

within employer’s control

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• Increasing frequency of employees

leaving should be a concern

– Determining why could indicate other

problems

– Exit interview to identify problems

– One manager or is it pervasive

throughout division or company

• Manager’s behavior illegal could

result in long-term potential of more

sever loss exposure with employment

liability

Sculpture “stop violence” in Petah Tikva, Israel

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• Work-related violence

– Workplace violence – physical/verbal assaults,

threats, coercion & intimidation

• Employees may be fearful or depressed

• Can still occur despite employer’s best efforts to

comply with legal duty to provide safe working

environment

• Employees handling money or dealing with public

• Consequences severe – serious injury or death

• Disability losses dependent upon severity of injuries

• Ongoing verbal/non-verbal harassment or threats

www.osha.gov

• What is workplace violence?

– Any act or threat of physical violence, harassment,

intimidation or other threatening disruptive

behavior that occurs at the work site

• Who is at risk of workplace violence?

– Nearly 2 million American workers report having

been victims of workplace violence each year –

many cases go undetected

www.osha.gov

• How can workplace violence hazards be

reduced?

– Risk factors can be identified, risk of assault can be

prevented or minimized if employers take

appropriate precautions

• Best is to establish a zero-tolerance policy toward

workplace violence & covers anyone who may come in

contact with company personnel

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• Kidnap & ransom if operating in high-risk

overseas location

– Severe financial & emotional consequences to

employee & organization

– Severity depends if key person

– Higher price for executive/important personnel &

will target them

– Critical needs determine to temporarily replace

– Consider paying cost not covered by insurance


– May need to permanently

relocate

– May suffer psychological harm

reducing ability to perform

– Other employees may be

negatively affected by

kidnapping

– May need to cease operations if

loss exposure is too great

Quiz Question

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LO#3 Risk Control Techniques

• Avoidance – never undertaking

or ceasing an activity that

presents a loss exposures

– Reduce probability of future loss

to zero

– Ceasing activity more difficult

than never undertaking activity

• Previous exposure can still produce

work-related illnesses (latency

period)


• Loss prevention – reduce frequency by

reducing or preventing loss exposures

leading to work-related injuries &

illnesses

– Safety Engineering Experts

• Two basic causes of loss

– Physical causes of loss resulting from incorrect physical

conditions

– Procedural causes of loss resulting from improper work

procedures


– Risk controls

• Physical controls

– Engineering controls

– Physical workplace features that

can prevent/reduce effect of a

cause of loss

• Procedural controls

– Process change, education &

training, SOPs, property

supervision, medical controls, job

rotation

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– Workplace design -Coordinates physical features, devices & working conditions with capabilities of people• Combine with

ergonomics, human factors engineering or biomechanics

• Reduce injuries &maintain product quality & operating efficiency when applied to six major areas of ergonomic concern

Manual

materials

handling

Cumulative

trauma

disorders

Physical layout

of workstation

Display &

controls

Fatigue

Accommodating

disabled

employees


• Human factors engineering – applying knowledge of

human behavior to design equipment people use on

& off the job

• Biomechanics – views people at work as special kinds

of machines functioning within environments filled

with other machines

Page of the one of the first

works of Biomechanics


– Ergonomic workplace design

programs – enable employees to

perform jobs better, safer & with less

effort; reduce injuries, accidents, WC

costs & accidental losses; increase

profits/reduce operating costs

• Senior management commitment

• Outside experts to supplement internal

resources

• Training for employee awareness

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• Loss reduction – reduce losses by restoring health & productivity of temporarily disabled by injury or illness

– Rehabilitation – reduces severity of disability or employee income losses – limits financial costs of incurred claims by – physical, psychological or vocational

• Avoiding litigation

• Providing quality medical care

• Prompt return to work

• Vocational rehabilitation


– Rehabilitation strives to restore as much as is medically, psychologically & economically feasible

– Reduces losses & liability claims for long-term medical treatment & loss of income

• Cost/benefit advantages decrease proportionately with time between onset of injury/illness & rehabilitation

• Any influence is valuable for controlling rehabilitative & legal liability costs

• Focuses on restoring productivity of employee as soon as possible


– Early involvement ensures establishment &

maintenance of control of administrative

procedures, persons involved & costs

• Encourages good rapport & may prevent development

of disabling psychological reactions

• Failure of involvement can result in prolonged

recovery, loss in production & related financial losses

for all

– Variables for rehabilitation potential (p. 6.22)

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– Important relationships affect rehabilitation

potentialEmployer &

injured employee

Physician &

patient

Claimant & insurerInjured employee

and family

Disabled person

and rehabilitation

specialist

Injured employee

and attorney


– Rehabilitation program

• Many people with legitimate but conflicting interests

in recovery of injured or disabled person

• Rehabilitation management must be seen as

interdepartmental activity

• Rehabilitation management begins before injury or

illness

– Guidelines - more likely to respond correctly & use of

appropriate funds & resources to return person to work

– Better control, monitoring medical care & other services

that could raise costs of rehabilitation


• Appropriate first response

– Immediate medical attention and

documenting injury by trained person

– Documentation to avoid existing physical

problems being associated with injury

– Encouraged to see physician & not

return to job until they can perform all

motions necessary for job without pain

– Within first 2 -5 days after injury, nurse

or designee should request information

– X-rays results, diagnosis, medications

& anticipated return-to-work date

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Factors

influencing

success of

rehabilitation

management

Extended hospitalization

Readmission

Uncoordinated medical treatment

Extensive medication

Lack of clear diagnosis

Lack of clear prognosis

Round-the-clock nursing care

Non-goal-oriented physical therapy

Lack of discharge planning

Lack of a specific date for returning to work


• Separation – goal that no single event can cause simultaneous losses to all activities & resources

– Key personnel travelling together

– Separate suppliers and/or customers

– Varying routes and time

• Duplication – backups to be used only if primary activity or asset suffers loss

– Cross training employees – can step in after loss

– Diversity of skills increases employee value

Quiz Question

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. . . Continuing Into the Future

Age of Workers

Percent Growth in U.S. Workforce by Age: 2000-2020

7% 8% 7%

-10%

3%

73%

54%

-20%

0%

20%

40%

60%

80%

under 14 15-24 25-34 35-44 45-55 55-64 65+

Source: U.S. Census Bureau

In 2000, A Fairly “Young” World . . .

Under 5% 5% to 12.4% 12.5% to 20% Above 20%


Percent of Population Age 60+ in 2000

. . . Rapidly Aging by 2025


Under 5% 5% to 12.4% 12.5% to 20% Above 20%

Percent of Population Age 60+ in 2025

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When I was growing up, my parents used to

say to me, "Tom, finish your dinner. People

in China and India are starving."

Today I tell my girls, "Finish your

homework. People in China and India are starving for your jobs."

Source: “The New York Times' Thomas Friedman on

Globalization,” CIO Magazine, March 25, 2005

—Thomas Friedman, The

World is Flat

Source: Based in part on “Meeting the Challenges of

Tomorrow's Workplace,” CEO Magazine, 2005

Four generations (cultures) are being asked to coexist in the early 21st century workplace

“Multi-Generational” Workforce

Traditionalist Boomer Generation X Generation Y

Born: 1928-1945 Born: 1946-1964 Born: 1965-1980 Born: 1980-2000

Skill Mismatch Ahead in the U.S.

• Over the next decade, only 30% of US 20 year/olds will obtain a college degree, but 2/3’s of new jobs will require a college degree

• Key skill sets will be in critically short supply:

– # students that declared their major in computer science has declined for past 4 years—now 39% lower than in 2000

– Other shortages: engineering, physical & biological sciences

• A growing number of high school dropouts

• Fewer high school graduates with vocational training

• Labor “imports” decreasing due to security restrictions and opportunities in rapidly developing countries

Source: In part, The Seventh-Annual Workplace Report, Challenges Facing the American Workplace, Summary of

Findings,” Employment Policy Foundation, 2002; India Daily, October 12, 2005, citing McKinsey & Co. Research;

Computing Research Association, March 2005; Information Week, August 16, 2004; Holding on to Global Talent:

Foreign-born stars are heading home. How to keep them working for you” by Anne Fisher, Fortune Magazine,

October 19, 2005. Organization for Economic Co-operation and Development

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Lower Alignment with the Organization

4539

32

4844

28

5752

35

6561

53

0

10

20

30

40

50

60

70

I really care about the fate

of this organization

(agree)

I’m willing to put in effort

beyond that normally

expected to help the

organization be

successful (agree)

I find my values and the

organization’s are similar

(agree)

Y X Boomer Traditionalist

Source: The New Employee/Employer Equation, The Concours Group and Age Wave, 2004

• to disappear

• to go away

• to withdraw

Source: Webster's New Twentieth Century Dictionary

Webster's Definition of Retirement

Aging Productivity

• Injury risk and its consequences differ in older workers

• Medical costs rise with age

– Estimated 25% increase from age 40 to 50 to 35% from age 50 to 60

• BUT, age is less a factor in health care costs than the presence of such risk factors as smoking, obesity, lack of exercise, and diabetes!

• There is such a thing as “aging productively” or “healthy aging”!

Have you seen this show?

The Incredible Dr. Pol is 70

and still working as a Vet

in Michigan

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LO#4 RC for Retirement & Resignation

• Risk Control for retirement/resignation

reduces severity and frequency of personnel

losses

– Identify key people – individuals/groups

– Owners & manager skills depend on organization

– Organizational charts/job descriptions

• Exercise unique talents, creativity or special skills

• Make vital decisions

• Manage & motivate others


• Flowcharts – Identify people other than

owners, officers & managers

essential to the organization

– Chart each function or

operating division, analyze &

examine reliability of key

personnel at various

operational steps

– Personnel whose loss would

seriously affect quantity or

quality of organization’s

output


– Resignation unpreventable

• Succession plan to determine which

people can fill in

• Spread key functions among

number of employees

• Financial incentives to retain

employees & forestall retirement

• Reimburse for expenses incurred for

education

• Provide recognition or other non-

financial benefits

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Quiz Question

LO#5 RC Work-Related Violence

• Workplace violence leads

to injury or illness,

reduced productivity or

resignation – exposes

employer to liability loss

– Between co-workers,

customers, someone with

personal relationship with

employee, stranger


– Risk control measures

Hiring process

Supervisor training

Written policies

Procedural safeguards

Termination process

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• Kidnap and ransom

– Large, high-profile organizations most likely –

frequency low – severity high

• Prevention most effective measure

• If must operate use protection measures

• Trained to recognize potential kidnap situation

• Vary employee’s routine

– Changes in political & economic environment

– If kidnapping takes place, focus on bringing

employee safely home


• Tap local, national & international law enforcement for prevention procedures, conduct while in kidnappers’ custody, optimum strategies for negotiating with kidnappers, when to pay

• If payment appropriate arrange for sources of funds – mark payment for tracing & identification

• May not be easy to pay if money not available

Quiz Question

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Can a Business Case

Be Made for 50+

Workers?

The Aging Workforce:

Moving Forward in a New Age

OSHA Small Business Forum, July 2, 2009

Presented by Phyllis Cohn, Project Manager, AARP

Reinventing Retirement

� Boomers much less likely to associate retirement with the

traditional retirement age of 65.

� Nearly 70% of workers who have not retired report that they

plan to work into their retirement years or never retire.

� Almost half of workers 45-70 indicate that they envision

working into their 70s or beyond.

Myths about

older workers

� Can older workers adapt?

� Can they handle new technologies?

� Are their job skills up to date?

� Can they get along with younger bosses?

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Positive Perceptions of Older Workers

Loyalty and dedication to the company

Come to work on time; low absenteeism

Commitment to doing quality work

Someone you can count on in a crisis

Solid performance record

Solid experience in job/ industry

Basic skills in reading, writing, arithmetic

Getting along with co-workers

Are Employers Ready?

60% of CEOs indicate their companies do not account for workforce aging in their long-term business plans.

?

?

(Source: AARP, Business Executives’ Attitudes Toward the Aging

Workforce: Aware But Not Prepared? BusinessWeek Research Services,

October 2006.)

Employers are anxious about the

future

• Lost knowledge can hurt financially

• Harder to find qualified employees

• Need to do more to retain workers

• Need to establish formal programs to address retention and recruitment of 50+ workers

Uncertainty

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Looking at a Multigenerational Workforce

• Boomers will remain in the workplace longer

• Four generations in the workplace for the first time

• Need for meeting the needs of different generations

Four Generational Cohorts

� Each generational group has different needs shaped by

their collective experience.

� Each generational group has different expectations for

their managers.

� Challenge: Build management capability and culture to

respond to expectations of age cohorts

“Generations at Work” , Zemke, Raines and Filipczak, 2000.

Common Experience+ Shared Values

= Your Generation

CE + SV = YG

Four Generational CohortsSize - in

MillionsBorn Ages

1.

Veterans or

Traditionalists or

Silent Generation:

75

1922-1942 (86-66)

2. Boomers: 801943-1960 (65-48)

3. Generation X: 461961-1981 (47-27)

4.Millennials or

Generation Y:76

1982-2000 (26-)

“Generations at Work” , Zemke, Raines and Filipczak, 2000.

CE + SV = YG

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Communication

WWII Generation

Logical, linear,

conservative

Turn-off:

Profanity, slang, poor grammar,

disrespect

Baby Boom Generation

Personable;

Information =

Reward

Turn-off:

Brusqueness, one-upmanship

Generation X

Direct,

straightforward

results-oriented

Turn-off: Using time poorly, corporate-

speak

Millennial Generation

Positive,

motivational,

personal goal-

oriented

Turn-off:

Cynicism, sarcasm,

condescension

“If you want

happiness for a

lifetime, help the

next generation.”

- Chinese Proverb

Documents

ARM 55 Chapter 6 - PrepAdemyprepademy.com/.../09/ARM-55-Chapter-6-Notes-Pages.pdf · –Turner Broadcasting Systems ... employees had carpal tunnel surgery. From 1998 –2002, only