The Relationship Between Security, Risk and Health in a Large Organisation - Coursework Example

The relationship between Security & Risk and Health & Safety in a large organisation "Assess the relationship between Security & Risk and Health & Safety in the context of a large organisation. Are they complimentary or the demands of one conflict with or inhibit the realisation of the other? Identify and discuss the implications of your assessment for the roles of the security manager". 1. Introduction The development of commercial activities worldwide has been extremely rapid; firms operating in various industrial sectors need to confront a series of challenges in order to ensure the limitation of risk related with their strategic initiatives. Within this context, the issues of security, risk, health and safety are very likely to appear when a firm’s strategic plan needs to be developed. When dealing with these issues, managers in modern organizations tend to use appropriately customized policies – in accordance with their firms’ needs and the resources (employees, funds, technology) available. Current paper focuses on the examination of the various aspects of security, risk, health and safety within large organizations; Particular emphasis is paid on the fact that the demands of each one of these factors may be differentiated under the pressure of the market conditions and the organizational priorities. The case of Shell in Nigeria has been used as an example in order to show the potential co-existence and interaction of these factors within a specific organizational environment. The measures required and the role of the security managers are also critically examined taken into consideration the fact that firms tend to perform differently in periods of financial crisis or political instability. Specific strategic options are necessary in order to minimize the risks related with a firm’s security or the health of its employees/ customers. Managers involved in the relevant initiatives need to be appropriately skilled and willing to communicate with employees in order to keep the competitiveness of their firm at high levels. Of course, all managerial plans are likely to face the risk of failure especially under the influence of strong financial turbulences in the local or the international market; the existence of appropriate plans could help to the limitation of the effects of this crisis on the performance of a particular organization. 2. Security and Risk in large organizations – definition and characteristics Risk and security are two concepts often identified in modern organizations. The aspects and the characteristics of these concepts are likely to be differentiated across organizations in accordance with the culture, the priorities and the mission of each business entity. In the literature the importance of these concepts has been highly emphasized. In the study of Bradford (2007) it is noted that when having to develop a firm’s strategic plan ‘balance, accuracy, security, integrity and communication are the key issues to be addressed’ (Bradford, 2007, 253). Organizational security is differentiated from the security involved in other human activities, for instance the environmental security (analyzed by Tennberg, 1995). The definition of security in business could be derived through the presentation of its most important aspects: a) physical security (doors, windows, etc.), b) computer security (access to the firm’s data), c) transport security (security when transporting the firm’s goods/ material required for the development of various organizational activities) (Hearnden et al., 199). At a next level, security would be involved in the protection from the acts of invaders as well as from the acts of employees. Terrorism is another threat for a firm’s premises; particular plans would be developed for the appropriate compensation of a business when its premises, goods, data suffer damages. Most commonly, organizational security and the control of risk in modern firms are depended on the support provided by third parties, e.g. the state. The specific issue is highlighted in the study of Brewer et al. (2004) where it is made clear that ‘risk management decisions by international business enterprises can be informed usefully by performance data related to the services provided by a host country‘s law enforcement agencies’ (Brewer et al., 2004, 77). On the other hand, the check on the employees’ criminal background (if any) cannot ensure the limitation of risk involved in business activities. From another point of view, it is noted by Overman that when having to hire employees, managers should have in mind that ‘past performance remains the best predictor of future performance, but discovering a job applicants history is becoming increasingly difficult’ (Overman, 1988, 34). Risk can be related with acts of persons that do not work in the firm – e.g. suppliers, customers; at a next level, the criminal record of employees cannot be a safe criterion for their future behaviour in the firm – people may react unexpectedly under specific conditions. Risk in business has a specific context. The specific concept has been analytically described in the literature. In accordance with Sadgrove (2005) risk has the following aspects: ‘a) risk – the possibility that a hazard will cause loss or damage, b) risk assessment – defining what can go wrong, c) risk management – a discipline for dealing with uncertainty’ (Sadgrove, 2005, 5). In accordance with Reuvid (2005) the management of risk in modern organizations would have more chances to be successful if the following activities are performed: ‘a) risk identification, b) risk management strategy, c) contingency planning, d) culture, training and awareness, e) exercising, maintenance and audit and f) implementation’ (Reuvid, 2005, 24). The limitation of risk involved in the activities of modern organizations is a challenging task. At a next level, even if a case of violation of a firm’s premises or data is brought before the courts there is no guarantee that the solution given will appropriately compensate the firm for the damage caused by the specific activity. The above assumption is in accordance with the findings of a research made by Meadows (1991). In the above research it has been proved that most of the cases published between 1985 and 1989 in the scientific journal ‘American Trial Lawyers Association Law Reporter’ ‘resulted in out-of-court settlements due to inadequate human and physical security practices’ (Meadows, 1991, 167). In accordance with the above, the limitation of risk related in various organizational activities is feasible only if appropriate measures are taken in advance by the firm’s strategic planners. 3. Health and Safety in the context of a large organization The context of health and safety in the business environment can be identified through the reference to their particular aspects; in accordance with ‘health is the protection of the bodies and minds of people from illness resulting from the materials, processes or procedures used in the workplace; safety is the protection of people from physical injury’ (Hughes et al., 2005, 2). On the other hand, supports that ‘the units of analysis of health include individual physiology and workplace environments’ (Glendon et al., 2006, 9). All aspects of employees’ health need to be taken into consideration by a firm’s strategic planners when the organizational practices are set. Measures of safety taken need to be in accordance with the targets set but also with the resources available – feasibility of policies set under particular market conditions. Health and safety are quite important for modern organizations; most commonly these concepts are related with the firm’s employees but they can also refer to the customers or all people entering a firm’s premises. Modern firms need to take appropriate measures in order to protect the health of their employees and customers – otherwise they have to offer a fair compensation to the employee or customer who suffered damage on his health – especially when this damage was caused because of the lack of relevant measures of protection. In accordance with Nelson (1994), ‘occupational health and safety professionals can achieve only limited results without the full support of top management’ (Nelson, 1994, 13). At a next level, it is noted that ‘worker participation in occupational health and safety (OHS) generally achieves better outcomes than unilateral management initiatives; but in a `cold industrial relations climate, meaningful participation is increasingly difficult’ (Gunningham, 2008, 336). Health and safety in modern organizations are supported by relevant organizational policies and rules; they are also supported by the state – although at different level in each particular state. 4. Relationship between Security & Risk and Health & Safety in the context of a large organization – interaction and mutual influence In accordance with the issues developed above, security & risk can interact with health & safety. In fact, measures related with health & safety in modern organizations can be regarded as part of the risk management policies developed within these organizations. As explained above, risk can be involved in all organizational practices; if appropriately controlled risk could lead to the limitation of damages caused within the organizational environment to which the health and safety of employees is directly related. On the other hand, both risk & security and health & safety are depended on specific factors: the firm’s mission, its culture, the resources available and the legal rules developed by the state. In other words, there is a dependency on common principles and factors – a community of supportive elements which can lead also to the community in interests. The above issues are clearer in the case of Shell in Nigeria. The response of the firm’s security manager to the challenges set by the firm’s environment – especially the external environment – has been immediate. However, the effectiveness of the policies developed can be doubted – the lack of support of these policies by the firm’s employees can be considered as the main reason for this outcome. On the other hand, the sector in which the firm operates – petrochemical sector – is quite challenging; firms in this sector need to develop extremely complex policies in order to keep their premises and information safe; in any case, the support of the state – which in this sector is high – guarantees the success of the firms’ policies. 4.1 Security & Risk and Health & Safety in the case of Shell in Nigeria – role of the firm’s security manager Shell operates in Nigeria for about 70 years (see corporate website). The security of the firm’s operations is under continuous threat because of the following factors: ‘poverty, unemployment, inter and intra-ethnic conflicts, community unrests, illegal Bunkering, hostage taking, kidnapping, and upsurge in activities of rival Cult groups/private militias in the Niger Delta’ (corporate website, security). Under these terms, the firm’s security manager has to take all relevant initiatives ensuring the limitation of risk related with the above factors and protecting the health and safety of employees across the organization. In the corporate website it is noted that ‘Shell is committed to the use of dialogue and peaceful means in resolving issues with its host communities, and will not advocate the use of force in suppressing peaceful protest by its host communities against its operations, even if oil production is disrupted’ (corporate website, security). It seems that the firm’s security manager prefers to use different approaches when having to handle the reactions of local people to the firm’s activities. The communication with local communities is included in the strategic measures used for the limitation of risk related with the protests of people against the firm’s activities. Investments in projects for the improvement of life in local communities are also part of the firm’s strategic planning for handling the crisis. The Global Memoranda of Understanding has been included in the firm’s strategic tools towards the increase of security and safety across the organization. However, all these measures do not have the required effectiveness; in fact, the support of the state has been considered as necessary in order for the firm’s operations in the area to be continued (see corporate website, security). The security manager in Shell in Nigeria has to respond to a series of challenges; measures that have been proved to be effective in other states may not produce the required effects in Nigeria; for this reason, additional practices should be incorporated in the firm’s existing policies in relation with the security and the safety in the firm’s various operational units. Moreover, this is not a problem faced only by Shell. In the study of Omeje (2006) it is noted that ‘the upsurge and intensification of violent anti-oil protests in the oil-bearing communities since the 1990s have compelled petrobusiness to explore new paradigms of security communitization, security privatization, security corporatization and securitization of development’ (Omeje, 2006, 477). Firms that operate in the specific industrial sector are usually multinational organizations; their potential to face operational risks and threats is high – compared to small and medium size firms. 5. Conclusion The concepts of risk & security and health & safety can be controlled more effectively using specific strategic tools; technology can be also employed in order to improve the protection provided to the firm’s employees but also to its customers (Ogut et al., 2008, 112, Piper et al., 1992). However, all the above concepts have many dimensions. Security is not related only with the organizational premises. It can be also related with a firm’s employees – in this case security refers to the protection of the employees’ position within a particular organization (Cooper, 2008). The security of this type is expected to be higher in firms with a strong position in the market and lower (limited) in small and medium size firms (Lipton, 2001). Under these terms, the management of risk in modern organizations cannot have specific rules – the potential failure of a firm’s initiatives is estimated using the knowledge available (Kramer et al., 2003, 56) and appropriate plans are developed – under the condition that they are feasible having in mind the resources available. The leader of the firm involved has the responsibility to identify the needs of his organization and suggest the necessary initiatives. In accordance with Flin et al. (2004) ‘the importance of leadership for effective safety management has been the focus of research attention in industry for a number of years, especially in energy and manufacturing sectors’ (Flin et al., 2004, 245). Risk & security and health & safety can interact but their co-existence is not quite calm. All these concepts have a series of demands that need to be addressed by firms’ managers – either in the short or the long term in order for the organizational activity to progress without delays. Works Cited Bradford, M. (2007) Personal credit information - Privacy and information security issues — the Experian view. Business Information Review, Vol. 24, No. 4, 253-256 Brewer, B., Huque, A. (2004) Performance Measures and Security Risk Management: a Hong Kong Example. International Review of Administrative Sciences, Vol. 70, No. 1, 77-87 Cooper, M. (2008) The inequality of security: Winners and losers in the risk society. Human Relations, Vol. 61, No. 9, 1229-1258 Flin, R., Yule, S. (2004) Leadership for safety: industrial experience. Quality and Safety in Health Care, 13: 245-251 Glendon, A., Clarke, S., McKenna, E. (2006) Human safety and risk management. CRC Press Gunningham, N. (2008) Occupational Health and Safety, Worker Participation and the Mining Industry in a Changing World of Work. Economic and Industrial Democracy, Vol. 29, No. 3, 336-361 Hearnden, K., Moore, A. (1999) The handbook of business security: a practical guide to managing the security risk. 2nd Edition. Kogan Page Publishers Hughes, P., Ferrett, E. (2005) Introduction to health and safety at work: the handbook for the NEBOSH national general certificate. Butterworth-Heinemann Kramer, D., Cole, D. (2003) Sustained, Intensive Engagement to Promote Health and Safety Knowledge Transfer to and Utilization by Workplaces. Science Communication, Vol. 25, No. 1, 56-82 Lipton, J. (2001) Security Interests in Electronic Databases. International Journal of Law and Information Technology 2001 9(1):65-86 Meadows, R. (1991) Premises Liability and Negligent Security: Issues and Implications. Journal of Contemporary Criminal Justice, Vol. 7, No. 3, 167-178 Nelson, L. 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(1995) Risky Business: Defining the Concept of Environmental Security. Cooperation and Conflict, Vol. 30, No. 3, 239-258 Online sources Royal Dutch Shell plc (2009) Corporate Website http://www.shell.com/ Read More