Effective Safety Culture and Safety Management: Schneider Electric North America - Case Study Example

Effective Safety Culture and Safety Management: Schneider Electric North America Case Study Effective Safety Culture and Safety Management: Schneider Electric North America Case Study Operations and projects in a wide range of industries accompany considerable hazards and risks. Firms dealing with food, manufacturing and biochemical production among other activities can attest to this, explaining the heightened emphasis on Occupational Health and Safety Administration (OSHA) and Process Safety Management (PSM). Such firms have had to establish safety management programs, and as Cook (2011) argues, the top management plays a pivotal role in establishing a safety culture within all organizational activities. This study will utilize the example of Schneider Electric North America Operating Division (NAOD) to evaluate safety management processes and document the strengths and weaknesses of such safety programs and generate recommendations that may be undertaken to establish a safety culture in the firm. A brief background on the firm will precede the safety analysis. Schneider Electric is a global specialist in energy management, with operations in over 100 countries providing leadership positions in energy and infrastructure, industrial processes, building automation and data networks, and residential energy applications. The firms North America Operating Division (NAOD), markets products in the USA, Canada and Mexico and has a total of 19,000 employees (RWC, 2009). The operations descriptions and large size of the firm mean that safety is a main issue; hence justifying its selection for this study. Evaluation of Safety Management Processes at Schneider Electric NAOD An overview of the firm’s safety profile that will guide this exploration into the strengths and weaknesses in the safety management processes, in the firm, indicates many issues. First, safety is a priority and is integrated into the firm’s overall strategy. Second, there is a commitment from the top management on safety. Third, efforts are made towards making safety part of the organizational culture. Fourth, there are both internal and external approaches to safety management by the firm. Fifth, there are a set of key performance indicators regarding safety management. Lastly, the firm links its commitment to safety management with business results. Strengths in Schneider Electric NAOD Safety Management Systems The first and perhaps most notable strength in the firm’s safety management is the commitment towards safety. This is evidenced by the CEO’s actions, where he includes a safety and health message in all organizational communication and his drive towards making Schneider Electric NAOD the safest workforce in its industry. The Chief Operations Officer (COO) is also a manifest of top leadership’s commitment to safety in the firm; he has set the goal of zero accidents in the organization. This commitment is a considerable strength since it not only influences budgetary allocations towards safety issues, but also has the effect of rubbing off on the rest of the workforce. This, therefore, helps in developing organizational safety culture. Another aspect of strength lies in the program for safety itself, where emphasis has been placed in doing more than the minimum required by standards. The program is double-pronged, being composed of internal and external safety systems. Internally, safety assessment and measurement are practiced at all levels. Safety communication is also emphasized with monthly safety updates carried out through Safety and Environmental Updates newsletter. There is also 12 hours annual training for all employees, Off–The–Job safety Initiative that encourages safe lifestyle not just within the organization but also in respect to online safety training. Externally, the firm practices its beyond-compliance approach to safety through engaging the community via programs such as the National Electrical Safety Month and the Home Safety Month. The firm’s safety program is its strength as it is a sure way to promote safety as part of the organizational culture, besides encouraging continuous improvement by committing towards doing more than the minimum. Measurement is another source of strength since it is an area in which most other firms fail. A number of key performance indicators have been established; the Medical Incident Rate, the Lost Time Accidents, the Lost Time Days and safety training hours per employee. Externally, the firm utilizes the Bureau of Labor Statistics to benchmark their safety efforts against industry competitors with a guiding goal that the firm seeks to be the safest in the world. Achievement is also a form of KPI; ISO 14001 certification in all its 33 manufacturing and logistics sites and OHSAS 18000 certification. Measurement is a critical issue in safety management since it is indicative of SMART goal-making, helps to establish direction, review and adjust where necessary and motivate employees on the results of their efforts. Weaknesses The particularly comprehensive safety management system implemented in the firm has followed a top-down approach. It is more of a prescription to the employees rather than consensus. An important element in making anything acceptable as organizational culture is ensuring that participative management is adopted in its implementation where the views, input, concerns and criticism from the employees are sought. Lack of this is perhaps the reason that there is still complacency within the workforce which the management identifies as a major obstacle to their safety program (RWC, 2009). The entire safety program revolves around the employees as evidenced by training requirements, involvement in community initiatives, off-the-job initiative and other safety processes; hence, it is unfortunate that they have not been involved in the conceptualization of the program. Another key weakness is the lack of particularly rewarding returns to the employees from their adherence to the safety management system. The firm has experienced stellar results from its safety initiatives. However, the firm has not accompanied this with highlighting and rewarding employees’ efforts which are of importance if at all safety is to be integrated into the organizational culture. Recommendations The efforts in place are quite commendable, and from the discussion just undertaken, the following are actions that can improve the firm’s safety profile: The firm should involve the employees in formulation of safety policy as appropriate in order to establish a safety culture. Establish a formal reward and recognition system that will help to boost safety culture in the organization. Undertake exchange programs with other industry players to exchange ideas on safety. This is important since in such an industry, poor reputation and compromise of safety by one firm may create apprehension towards the entire industry. Explore alternative approaches towards pursuing the same safety strategy since structured approach may become monotonous and even counteractive. For instance, the firm could adopt informal communication of the safety messages to the workforce in an appealing manner. References Cook, T. A. (2011). World class process safety management for power generation. T.A Cook Conferences. Retrieved 11 November 2011 from http://www.tacook.co.uk/media/pdf/00132_pro.pdf RWC, (2009). World class environmental, health and safety: Schneider Electric North America. The Robert W. Campbell Award. Retrieved 11 November 2011 from http://www.campbellaward.org/images/uploads/Schneider_Electric_North_America_ES_Text_REF.pdf Read More