Role of Risk Perception - Coursework Example

Student’s Name: Role of Risk Perception Instructor’s Name: Course Code & Name: Date of Submission: Risk perception occurs when individuals subjectively perceive the risk involved in an activity. Risk perception enables individuals to identify the benefits associated with a risk, the potential of a catastrophic occurrence and this increases the individual’s knowledge about the risk. In addition, risk perception increases individuals risk management ability by providing them with an opportunity to lay down measures for minimizing and preventing the occurrence of the risk. Providing information regarding risk increases the risk perception of people and this is essential for risk management. Therefore, risk perception is necessary for the identification and control of risk. This paper will thus discuss the role of risk perception. This section will look at how risk perception influences companies to control the risks in their environment. According to Sorensen and Bach (2006, p. 1045) small enterprises have problems in their work environment in terms of controlling their risks. This means that they do not perceive the existence of risk that they are exposed to. According to their findings, small firms have increased accidents and this was attributed to lack of prior control mechanisms. Hopkins (2006, p. 587) notes that by anticipating risk individuals are able to come up with ways of eliminating or reducing the risky occurrences that cannot be controlled through modification techniques. Risk perception creates attention on individuals and this enables them to come up with a variety of risk control techniques that need to be implemented in order to reduce or eliminate the risk. Furthermore, risk perception provides an opportunity for firms to identify the least expensive risk control strategies to employ so as to manage the risk. Quinlan (2007, p. 22) notes that the lack of management control led to the collapse of Rock fall mine where one person lost his life. The Tasmanian workplace Health and safety act requires a company to monitor the working conditions at the workplace and implement appropriate measures to control the risk that maybe identified. The Organization for Economic Co-operation and Development helps companies to control risks associated with their activities hence ensure employees safety (Gibson at el 2012, p. 5) This section will explore how risk perception plays an important role in making it necessary for firms to carry out a comprehensive risk assessment. According to Takala and Schneider (2008, p. 26) risk awareness motivates individuals to undertake risk assessment in order to identify the degree of risk they are exposed to. This is essential towards creating a safe working environment. Risk perception necessitates evaluation of the risk and this is due to the uncertainty involved in handling risk. Insufficient evidence that occurs as a result of risk perception requires firms to undertake in depth risk assessment in order to understand the perceived risk (Gibson at el 2010, p. 5). Evaluating the risk through risk assessment changes the opinion of the employees and their perception about the risk. According to Hopkins (2004, p. 21) through risk assessment individuals are able to gain more information pertaining to the risk and this acts as a means of fulfilling the inadequacy created during risk perception. Reyes and Beard (2008, p. 21) note that the lack of risk assessment in the MODU facility for drilling officers and personnel to comply with written rules and standards relating to safety in the workplace. The Australian health and safety act requires drilling superintendants to undertake in depth risk assessment before commencing with the drilling process. Moreover, they are required to set rules based on risk assessment to assist in reducing the probability of risk occurrence. The European Industry Council publishes several documents that guide organizations on risk assessment (Gibson at el 2012, p. 55). This section will discuss how risk perception influences individuals and firms to set rules in order to prevent the occurrence of a risk. Heiler (2006, p. 17) found out that risk awareness plays an important role in influencing mining firms to set rules, regulations and code of standards so as to ensure the safety of their employees. Risk perception requires the firm to come up with rules of ensuring the safety of the employees while performing their tasks. The rules provide a means through which the employees can control the risk as well as the measures to put in place so as to control the risk. Roberts (2010, p. 65) notes that the accident that happened at Pike river coal mines occurred because the managers failed to set rules to guide the miners after being aware of the risk that their miners were exposed to. The health and safety act requires managers to develop rules pertaining to mining health and safety standards. Moreover, the managers have a responsibility of enforcing the rules at the mines. Gibson at el (2012, p. 56) notes that the European Agency for Safety and Health requires organizations to set regulations in the workplace so as to ensure the safety of workers. This section will explore how risk perception influences employees to demand for paid sick leave. Asfaw, Cryan and Rosa (2012, p. 5) found out that the negative perception held about high risky industries has influenced this industries to offer their employees paid sick leave in order to reduce occupational injuries. According to their studies, the perception held by the employees about the risks in these industries made the managers to come up with paid sick leave in order to minimize the pressure that the employees felt while working. Studies conducted by Bourbonnais et al (2005, p. 502) indicted that the psychological working environment that nurses are exposed to increased their incidence and duration of certified sick leave hence this made them to demand for sick leave pay. Their findings indicated that improving the risk perception of workers reduces the risk of sick leaves. The national employment standards require employers to offer their employees with paid sick leave in case they incur injuries or get sick while working. This section will look at how risk perception influences firms to educate and train their employees on safety and risk management. Quinlan (2007, p. 52) states that employees risk perception has necessitated the need for mining companies in Australia to educate their employees on safety management policies. This was aimed at making the employees to understand the concept of risk taking and risk management. Furthermore, risk perception is used to analyze the progress of the employees in understanding the risk that they are exposed to. Training improves employee’s confidence and reduces the degree at which the employees perceive the risk (Gibson at el 2010, p. 16). According to Heiler (2006, p.15) the lack of adequate employees training in BHP made the company to experience increased accidents in its operations hence this led high levels of employee’s turnover. The studies further indicated that the degree of risk perception increases with a decrease in employees training. The industrial relations act requires employers to train their employees on safety and risk management practices. Moreover, firms are required to continuously train and upgrade the skills of their employees in order to equip them with strategies for dealing with risk in their workplace. Niskanen, Naumanen and Hirvonen (2012, p. 1935) state that safety climate perception can be enhanced in an organization by developing training practices and this leads to the development of employees who are committed with the organization. The European Trade Union Institute organizes training courses and influences policy makers on matters relating to workplace safety (Gibson at el 2012, p. 58) This section will discuss how risk perception requires an organization to create a culture of safety so as to reduce the level at which employees perceive risk. Safety culture enables the organization to improve its risk handling skills and this changes the risk perception that the employees may hold (Transportation Research Board 2012, p. 20). According to Roberts (2010, p. 13) many coal companies in the U.S created a culture which was characterized by disregard of safety and health of the miners. According to him, Massey energy in the U.S was characterized by disregard for employees’ safety and this led to the death of 29 miners. This in turn made the employees to perceive that the management was responsible for exposing the miners to hazardous working conditions. To change this perception, the managers of this company were forced to adopt a new culture by producing safety policy documents. Legal provisions on health and safety in the workplace require companies to develop safety policies and through this a culture of safety can be enhanced in the organization. According to a survey conducted by the BP U.S refineries safety review panel (2007, p. 9) safety culture empowers the employees and this improves the way they view the risk in their workplace. Moreover, safety culture requires an organization to continuously undertake safety auditing and monitoring and this changes the way employees perceive risk in the organization. Furthermore, by adopting a culture of safety, an organization becomes an industry leader in safety and these acts as a means of changing the risk perception held by the public. This section will explore how risk perception influences the quality of work life. Employees risk perception concerning their jobs particularly about their motivation, wellbeing and productivity has an impact on the quality of their working life (Cooper and Worrall, p. 6). The employees at the top of the organization management perceive that their working environment is more challenging and risky hence this makes them to reduce the period of time at which they work in an organization. On the other hand, the employees on the lower level management perceive that their jobs are more insecure hence they believe that they are at a risk of losing their jobs. The risk perception that they hold reduces their job motivation and satisfaction. Studies conducted by Slopen at el(2012, p.7) indicated that the perception held that women working in high demanding jobs were at a risk of suffering from cardiovascular diseases made some women to avoid such jobs. A study conducted by Hansen and Lassen (2012, p. 555) indicated that women working Danish army were at risk of suffering from breast cancer due to their night shift work. The risk perception associated with a job can make individuals to refuse to undertake such a job. According to Ala-Mursula (2008, p. 856) the work stress that characterize public senior employees is perceived to place them at a risk of suffering from sicknesses hence this increases their sickness absence. The risk perception associated with public sector employment has necessitated the need to provide public sector employees with work time control with an aim of promoting their health and this will promote the quality of their work hence reduce their absence. Australian legal provisions require organizations to take proactive measures in order to protect the health of their employees. Moreover, organizations are required to provide counseling services so as to protect their employees from negative impacts that might result due to stress. In conclusion, risk perception influences organizations to train their employees and to control the risk that their employees may be exposed to. In addition, risk perception makes people to avoid certain jobs hence the need for an organization to adopt safety culture. Moreover, risk perception has forced organizations to come up with paid sick leave in order to reduce the pressure that the employees may be exposed to while performing risky tasks. 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