Management System in Yancoal Company Company Limited - Case Study Example

Institution : xxxxxxxxxxx Title : xxxxxxxxxxx Tutor : xxxxxxxxxxx Course : xxxxxxxxxxx @2015 Table of Contents 1.0 Introduction……………………………………………………………………………………4 1.1 Business Structure……………………………………………………………………….4 1.2 Corporate Structure………………………………………………………………………..4 1.3 Background Information……………………………………………………………………....5 2.0 WHS MS Overview…………………………………………………………………………...7 2.1 Definition of the WHS MS…………………………………………………………………7 2.2 The Purpose of a WHS MS…………………………………………………………………8 2.3 The Benefits of Implementing a WHS MS…………………………………………………8 2.4 Possible Challenges to a Successful WHS MS……………………………………………..9 3.0 Suggested WHS MS Structure……………………………………………………………...…9 3.1 Overall Policy Document……………………………………………………………………9 3.2 Key Performance Area Policies………………………………………………………..…..10 3.3 How WHS Achieves the Expected Outcome………………………………………………10 4.0 Implementation of the WHSS MS…………………………………………………………...11 4.1 Method of Implementation………………………………………………………………...11 4.2 Potential Problems with Implementation…………………………………………………..13 4.3 Support Required During Implementation…………………………………………………13 5.0 Evaluation of the WHSS MS………………………………………………………………...14 5.1 Reasons for Evaluation of MS……………………………………………………………..14 5.2 Monitoring the Management System………………………………………………………15 5.3 Reviewing the Management System……………………………………………………….15 5.4 Changing the MS as a result of Evaluation………………………………………………...16 6.0 Conclusion…………………………………………………………………………………...16 1.0. Introduction According to McKnight, Burton and Pearse (2013), Yancoal is one of the Australian chief mining and coal trading company. The company began its operation after its official establishment in the year 2004, evolving into one of Australia’s most innovative business firm. Yancoal is one of the technologically advanced companies that have successfully introduced the Longwall Top Caving mining technique. Furthermore, the company enjoys an exhilarating historical growth. In the year 2009, the company recorded a successful takeover of the Felix resources before signing up a merger with Gloucester Coal Company in the year 2012. Yangzhou Coal Mining Company Limited, Chinese Company, is the principal shareholder of Yancoal. The purpose of this research is to establish the implementation of the Australian Work Health Safety Act and the Work Health Safety Management system in the Yancoal Mining Company Limited. 1.1. Business Structure Yancoal Company has a unique business structure. Led by corporate governance that abides by the Australian legislation requirements, Yancoal has a single committee and board of governors. The board Chatter contains the responsibilities of not only the executive board, but also the committee. The board establishes appropriate committees, such as the health safety and environment committee to help in the discharge of its duties. McKnight, Burton and Pearse (2013) ascertain that Yancoal conducts significant exploration projects by operating and managing different mines in three different states. It has access to fundamental ports and rail infrastructure including constant shareholding in major coal terminals. 1.2. Cooperate Structure The company adopts an individual approach to cooperate governance and structure in alignment with the Australian law requirements. The board handles the entire corporate governance of the coal mining company. The Board adopts the recommended procedures and policies aiming at ensuring that Yancoal company fraternity fulfill their roles in respect to the Australian regulatory requirements. The charter contains the function and all fundamental information concerning the Yancoal Company. 1.3. Background information Introduction According to the Australian Government (2015) the Australian new WHS laws were implemented on the 1st January, 2012 in several states and regions to harmonize the Occupational Health and Safety (OH&s) Laws. The Australian WHS legislation comprises of the model regulations, WHS Act, Codes of Practice as well as a national compliance and an enforcement policy. WHS Act According to the Australian Government (2015), the WHS Act is not considerably different from current occupational health and safety (OH&S) legislations. They make it easier for business organizations and workers to conform to their requirements across different territories and states in Australia. Some of the Australian States complying with the WHS legislation include the New South Wales Queensland, Northern Territory, Australian Capital Territory, The Commonwealth of Australia and South Australia. Nonetheless, each territory and state has a responsibility of enforcing and regulating the WHS laws (Australian Government, 2015). Consequently, the Safe Work Australia is the national body in charge of workplace safety management. It develops the Work health and safety as well as the workers compensation policy. WHS Regulations The Safe Work Australia (2015) ascertains that the WHS Regulations are guidelines that dictate more detailed requirements to support the roles included in the WHS Act. For instance, the regulations are only model provisions passed or enacted by the Australian Parliament in every jurisdiction to be legally binding. Additionally, the model WHS Regulations were historically developed from a three-staged process as depicted in the Intergovernmental Agreement for the Regulatory and the Operational Reform in Occupational Health and Safety. Codes of Practice The Safe Work Australia (2015) defines the codes of practice as the practical guidelines towards achieving the accepted standards of health. It also includes safety and welfare needed under the WHS Regulations in a jurisdiction and Work Health and Safety (WHS) Act. As outlined above, it is the responsibility of the Safe Work Australia to develop the model Codes of Practice. The model is regularly treated as part of the package of coordinated work health and safety laws. They are frequently based on jurisdictional laws practiced at the time of establishment and are always informed by the comments from the Australian public. It is a requirement that every manager checks with the appropriate Work Health and Safety Regulator to determine the approval of the organizational model Code of Practice. For instance, the organizationally approved code of conduct is always applicable to everyone with any duty of care in the circumstance designated in the laws. Most of the organizations believe that achieving the compliance of the code of practice is a strategy to the success of the organization. Similar to the regulations, the codes of practice deal with unique issues. However, it does not cover all hazards or risks that may arise. The health and safety responsibilities demand that all duty holders should all work associated risks despite their inclusion in the codes of practice. Current National Efforts to Consolidate Critical Areas of WHS Management and Practice According to the Safe Work Australia (2012), there are some current national strategies to strengthen the key areas of WHS management and practice. For instance, the Australian government decided to set up a ten-year plan as an effort to address issues regarding work health and safety. The ten-year plan that began from the year 2002 and expected to end during the year 2022 succeeded the previous program that started in 2002. According to Safe Work Australia (2012), the plan a vision of establishing “Healthy, safe and productive working lives”. Additionally, the program targets to ensure a reduction in the incidence rates of work-related death minimize the number of employee illness and injuries as well as plummeting exposure to risks and hazards at work. Lastly, the plan will ensure that there is enhanced infrastructure to work health and safety of employees. Resnick, Gwyther and Roberto (2011) asserts that there is efficient and adequate risk management that resulted in enhanced of worker health and safety as well as productivity. The government in coordination with all organizational managers ensures that there are adequate reduction and prevention of reported cases of illnesses and injuries related to work and concomitant costs. The government also promotes the health of workers, their wellbeing and ability to work. Finally, every manager has the responsibility to foster quality, innovation as well as efficiency by ensuring continuous development. 2.0. WHS MS Overview 2.1. Definition of the WHS MS According to Archer (2012), Work Health and Safety Management System refer to the system methodology used in addressing the organizational work and safety. For instance, WHS MS is a detailed framework employed in the management of the implementation of work health and security in any organization. The framework, therefore, includes the primary structural components that need designation to achieve sustainable legislation conformance. 2.2. The Purpose of a WHS MS Archer (2012) chronicles that the WHS Management System plays a crucial role in establishing the work health and in any organization. The WHS Management System acts as the guideline for a given organization towards the achievement of the set guidelines with respect to the Occupational Health and Safety law. The system provides all the guidance contained in the law. Besides guiding, the WHS Management System provides all the duties of all key stakeholders in an organization. Moreover, the WHS Management System helps in systematically elimination of the likelihood of illness, fatality accident or an injury at the workplace. 2.3. The Benefits of Implementing a WHS MS The Safe Work, South Australia Government (2012) outlines some advantages that accrue to an organization by establishing an appropriate WHS Management System. The system offers a safe and healthy workplace while reducing the risk of illnesses, accidents, and injuries. The system assists in the identification of risks, hazards, assesses them and offers adequate control. It ensures that there is active participation of managers and all employees in matters concerning their heath while availing information for training the workers at all levels of performance. The WHS MS not only reviews the work health and safety and but also creates safe working conditions for the organization. Trilling and Fadel (2009) reports that the WHS Management System results in reduced costs as it saves money spent on injured workers expenses, replacement of employees and medical expenses by preempting injuries. MS not only improves the organizational reputation but also reduces work stoppages because of safety disputes. It demonstrates that the organization is meeting the legal requirements, improves business opportunities in an organization and enhances work methods and worker motivation hence results in increased productivity. 2.4. Possible Challenges to a Successful WHS MS Archer (2012) identified some difficulties that can face an organization with respect to the implementation of a successful Work Health and Safety Management System. One major problem facing successful management system is the assumption of most of the employees that safety is someone else problem as well the responsibility of the management. In some cases, some managers never care about the security of the workers and place profits and productivity at the expense of employee safety. There is also the challenge of excess paperwork with increased reaction to injuries instead of preventing and controlling them. Additionally there is limited capacity building for active participation of all stakeholders. Lastly, the system appears to be too much complicated for different organizations to implement. 3.0. Suggested WHS MS Structure The organizational WHS MS suggested Structure is diverse and broad. It includes several components such as the number of employees, regulations to adhere to, roles and responsibilities of each organizational stakeholder the corporate targets. It is, therefore, the blueprint upon which all managers in an organization follow strictly for efficient performance. 3.1. Overall Policy Document The mining overall system plays an integral role in the organization. It establishes a link with the principal performance area systems as well as the process of reviewing and evaluating the organizational management system. Furthermore, the overall policy document elaborates the intent and structure of an overall policy. The document also stipulates the roles and duties of all employees and key stakeholders of the organization (Education & Communities, 2013). The policy ensures the provision of adequate occupational health and safety at the workplace as well promoting dignity and respect. It is the guideline for the entire organization. 3.2. Key Performance Area Policies According to Le Cordon Bleu, 2014) the policy statement contains the responsibility of the Mining organization. The company has to reduce the risk of injury, accidents and diseases to the employees and other persons. The company, therefore, adopts a planned and systematic strategy to the management of occupational health, safety, and welfare. It also provides resources for successful implementation of the WHS Act. For instance, the critical performance areas in the policy include the adopted procedures, roles and responsibilities of all policy review. Furthermore, policy analysis regards the assessment of the general safety and security performance as well as effective policy and procedure monitoring. 3.3. How WHS Achieves the Expected Outcome The WHS emphasizes on hazard management process as its core function and identifies risk control as the critical point for determining the Management System outcomes as well as the propeller of the success identified with it. Moreover, WHS uses effective communication, consultation, cooperation and coordination among staff members of a given organization to achieve its expected outcomes. WHS in the mining group develops naturally as a result of effective integration and use of the stipulated policies and procedures. For instance, there are fundamental requirements for training of all the members of the mining organization staff. However, training needs tend to vary in respect the level of personnel. There exist a variety of officials at different levels in a mining organization (Le Cordon Bleu, 2014). For instance, new workers will require induction training, on the job training as well as training on safe work techniques. The installation will include an introduction to the organizational WHS Management System, reporting lines and the WHS reps. Existing workers need to be constantly acquainted with all safety updates, new or amended procedures, and first aid certificate, filling of incident forms and training on hazard identification methods. Supervisors need training on workplace inspection, incident investigation, development of SWMS, development of WHS procedure as well danger or risk control and assessment training. Managers need training regarding WHS regulation, develop positive WHS culture as well the WHS policy development training. Finally, the Committee members or the WHS representative also need their unique training (Le Cordon Bleu (2014). They should receive formal WHS rep training, fire warden training, senior fist aid training, administrative training on how to run meetings and training on hazard assessment. It is also relevant to allow for analysis and review of work groups and the entire organization's performance in engagement and outcomes from the WHS Management System. 4.0 Implementation of the WHSS MS 4.1. Method of Implementation The best way of implementing a WHS management system in any organization is by ensuring that there is active participation of all stakeholder and the key players in an organization. Consequently, there is a fundamental requirement for ensuring the efficient implementation of a Work Health Safety Management System. The primary requirement is the resources that mainly include people with specialized skills, authority, appropriate time, and the financial delegation. The program starts with the establishment of an action list that includes all the resources mentioned above. The WHS Act requires that the Yancoal Mining Company acquires an officer as well a contractor for implementing the plan. The officer will ensure the establishment, implementation and maintenance of the WHS Management Systems requirements. Also, the officer under Section 27 of the WHS Act will report on the effectiveness of the plan while regularly reviewing and improving it. Large mines will need more than contractors for efficient implementation. The process must ensure that there are sufficient risk and hazard identification, assessment, control and management with the appropriate establishment of an emergency response and management plan. Furthermore, the fourth step will involve strengthened consultation, instruction, information and training of all workers to ensure that there is active participation as well as adherence to the plan implemented. For instance, the mine operator must endeavor to consult with different employees and any health and safety representative available at the workplace. Some of the issues that require active involvement by the consultation include implementation and continuous reviews of the WHS Management System. Le Cordon Bleu (2014) asserts that there should hazard and risk identification, selection and testing of the controls with adequate emergency planning. However, the list is broad to include the review of controls after an occurrence of an accident, decisions concerning health and safety as well as testing the feedback on emergency response. Here workers need to participate in discussions regarding safety matters appropriate to their work and development of procedures and policies relating to their work. Outline the chosen method. Training needs to take into concern the workforce composition such as their level of education, literacy, and language spoken. Conducting training reviews is important in establishing assessment for the need of retraining, updates, and additional training in case there is a change in processes and activities. Provision of adequate and appropriate information is fundamental to ensuring the success of the organization. 4.2. Potential Problems with Implementation As identified earlier, the implementation process may face some challenges. The challenges range from managerial to employee involvement to resources. Primarily, inadequate access to capital, labor force and machinery required to implement the program is a major challenge. Poor management of the entire project inhibits efficient implementation while employees may have misconceptions and stereotypes that the establishment of health and safety is someone else’s responsibility. Failure to adopt the appropriate technology that imposes the organization to too much paperwork may also pose a challenge to the implementation process. Most of the managers fail to care about safety and prefer laying emphasis on the achievement of supernormal profits and enhanced productivity. Such management team in an organization will tend to react to injuries and accidents while ignoring the establishment of preventive and control measures. Additionally, management can fail to involve all the stakeholders in decision-making actively as well training (Safe Work Australia). Finally, most of the Work Health Safety Management System may be very complicated that the entire board of directors and the employees fails to adhere to it. 4.3. Support Required During Implementation There is a variety of forms of support required during the implementation process. Training of workers is one of the strategies that depict support dedicated by the managers in a given mining organization. Moreover, training should cover several requirements. It is should include the initial induction of visitors, specific work requirements, fundamental procedures, the orientation of new employees and the continuing staff (Le Cordon Bleu, 2014). Besides that, the training should address safety and health issues in adherence to the WHS Management System stipulations as well as a measure for particular risk control measures. Le Cordon Bleu (2014) ascertains that documentation of all training and any other activity conducted during the implementation is also a strategy to ensure the provision of adequate support. Documentation will allow proper identification of the problems to be countered. Nonetheless, documentation will allow consistency, reduce possible gaps and verify achievement of competency. The mine operator and the managers should ensure that all employees that need training complete the training appropriate to their demands. The WHS Act requires that the mining organization keeps a mine record that covers any notices continually issued under Part 10 of the Act. Apart from documentation and provision of training, the manager should provide incentives to the employees, reward those showing improved performance in the implementation process and institute allowances as well job promotions. Communication should be official and well-coordinated to ensure that all staff is consistently entitled to the appropriate information (Le Cordon Bleu, 2014). Setting appropriate policies that support the implementation process is also a recommendable strategy. 5.0. Evaluation of the WHSS MS 5.1. Reasons for Evaluation of MS Metz (2007) identifies reasons and benefits that accrue to an organization due to the evaluation of the program under implementation. System evaluation is a systematic technique for collecting, analyzing and utilizing the information gained to respond to fundamental questions concerning the implementation of a program. For instance, there are two types of evaluation. Summative evaluation seeks to establish whether the program implemented met the expected outcome and whether it reached the targeted population. Contrary, outcome or formative evaluation assesses whether the capability that the expected changes in the management system or result take place. Metz (2007) chronicles that system evaluation can detect whether the program is working or not performing to its targeted goals. It, therefore, identifies the strength and weaknesses of the system by assessing its effectiveness hence assisting in program improvement. Evaluation may also help in increasing the capacity of a program or system when conducting a critical self-assessment and planning for the future. Alternatively, system evaluation will not only result in program expansion and improvement but also gain additional resources to strengthen the implementation process. Program evaluation is, therefore, a valuable tool for all system managers seeking to increase the quality of their systems and improve their outcomes. 5.2. Monitoring the Management System Le Cordon Bleu (2014) affirms that system monitoring is essential in ensuring that the system is performing its intended role by the WHS objectives, policies, targets. The achievement of the goals is part of the constant improvement process. For instance, monitoring should take place with the introduction of a new process, equipment or substance to the system. It is the role of managers and key stakeholder to carry out monitoring periodically after two years. 5.3. Reviewing the Management System According to Le Cordon Bleu (2014), it is important to conduct more and frequent system reports in case there is any form of amendments to the laws and regulations affecting the organization. Additionally, studies are vital to changes in terms of the organizational structure, plant, systems and the equipment used by the business. Reviews will assist in ascertaining whether the system is working or not. It will identify significant trend regarding the occurrence of incidents, injuries, and accidents. However, the review needs to be comprehensive, diverse and to consider all WHS Management System aspects, its objectives. It should address the WHS targets and observe the inspection results in terms of accident, injury audits, and incident records. 5.4. Changing the MS as a result of Evaluation After the review, it is recommendable that the organization WHS committee should perform the necessary modifications to the system to align it with their goals and objectives. The system cannot be efficient without carrying out the recommended review. The WHS Act demands that all persons involved in the management of the mine to ensure that all employees are not under risk from the business work. Establishment of the free risk organization, therefore, involves eliminating and reducing risks to health and safety. 6.0. Conclusion Occupational Health Safety Act plays an integral in the efficient management of any organization. This paper has adequately covered the benefits attributed to any organization that implements an effective work Health and Safety Act. OHS implementation not only ensures the safety of workers at the workplace but also increases the revenue of an organization. Additionally, implementation of the WHS Act saves the organization from the unnecessary costs incurred in the process of responding the incidents, accidents and injuries resulting from the occurrence of a risky or hazardous event. An organization implementing the WHS Act stands to benefit from several beneficial outcomes. The WHS Act placed a requirement for principal contractors for any construction project from 1 January, 2012. The plan stipulates penalties and punishments accruing to an organization due to failure to adopt the WHS Management System. Failure for the principle contractor to prepare a written WHS management plan before the commencement of a project will attract a penalty of $ 6 000 for an individual and $30, 000 for a corporate body. The penalties apply to all persons and organizations as stipulated in Section 309 of the WHS management plan and preparation. The section also contains all the components that the contractor has to include in the WHS management plan. It is, therefore, imperative for the Yancoal Mining Company to implement an effective WHS Management System concerning the penalties as well as the benefits accrued. Bibliography Archer, R. J., 2012, WHS: A Management Guide. South Melbourne, Vic, Cengage Learning Australia. Australian Government, 2015, WHS/OH&S Acts, Regulations and Codes of Practice, Retrieved from :< http://www.business.gov.au/business-topics/employing-people/workplace-health-and-safety/Pages/whs-acts-regulations-and-codes-of-practice.aspx> Education & Communities, 2013, Work Health and Safety (WHS) Policy. Retrieved from :< https://www.det.nsw.edu.au/policies/staff/WorkHealthSafety/PD20130454.shtml> Le Cordon Bleu, 2014, Manage Work Health and Safety Systems (Cuisine & Patisserie) Theory Notes Retrieved From : McKnight, D., Burton, B. & Pearse, G., 2013, Big Coal: Australia's Dirtiest Habit. Rosina Di Marzo: New South. Metz, A. J. R., 2007, Why Conduct A Program Evaluation? Five Reasons Why Evaluation Can Help an Out-Of-School Time Program Part 1 in a Series on Practical Evaluation Methods Resnick, B., Gwyther, L. P., & Roberto, K. A., 2011, Resilience in aging: concepts, research, and outcomes. New York, Springer. Retrieved from: http://www.childtrends.org/wp-content/uploads/2013/04/child_trends-2007_10_01_rb_whyprogeval.pdf Safe Work Australia, 2012, Australian Work Health and Safety Strategy 2012–2022: Healthy, safe and productive working lives. Retrieved From :< https://www.safework.sa.gov.au/uploaded_files/Australian-WHS-Strategy-2012-2022.pdf> Safe Work Australia, 2015, Model Codes of Practice. Retrieved From :< http://www.safeworkaustralia.gov.au/sites/swa/model-whs-laws/model-cop/pages/model-cop> Safe Work, South Australia Government, 2012, WHS Management System. Retrieved from :< https://www.safework.sa.gov.au/uploaded_files/wsmk-module3.pdf> Trilling, B & Fadel, C, 2009, 21st Century Skills Learning for Life in Our Times. San Francisco, Jossey-Bass Read More