Ensuring Employee Health and Safety at Illovo Sugar Malawi

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ACKNOWLEDGEMENTS
I would like to take this opportunity to express my immeasurable and heartfelt gratefulness to the
following people who were very helpful in the completion of this project
First of all I would like to thank God Almighty for the gift of life.
Secondly, I would like to express my heartfelt and ultimate gratitude to my supervisor, Mr.
Michael Chasukwa. Sir, you gave me immeasurable guidance and support! I must admit it was
pretty tough but it was through this that I can say I have truly learned. Thank you!!
I am also grateful to my brothers and sisters Elizabeth, Annie, Christina, Carlos and Benedict for
the support. To pretty Grady’s, I wish you were here…..R.I.P.
I am thankful to my cousin and big brother, Dr. Elard Alumando Sadimba. You told me that I
can do it; you are my hero. To Frank and McDonald Sadimba, I would say thank you for trusting
me. Mr Mustaf Piyasi and family, just know that you played a role worthy appreciation
My friends Silvia Giancaterino, Frank Gumbwa, Alex Sengeledo, Federico Biserna,
Malanguluko Katete, Zione Wataya, Shadreck Gondwe, Alexius Kamangira, Benson Jackson,
Tadala Gawa, Moses Chikopa, and Patrick Khouge, I thank you all. To Gift Njanje, you were
heaven sent; only God can pay you back. To Ellen, I just want to thank you for everything. To
Chifundo, I thank you for your support and care.
Finally, I am grateful to Monsignor Riccardo Mensuali and the Brotherhood of the Community
of Sant’Egidio in Rome for investing in me. You gave me hope for a better future, do it for my
friends as well. To Community of Sant’Egidio in Malawi, I am thankful for being there for me.

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DEDICATION
This project is dedicated to all single mothers who are struggling to send their children to school
because they cannot afford school fees and other basic needs. I shall always remember you in
prayers. To my mother Donata, your never-ending love, advice, support and inspiration in the
absence of Dad…is immeasurable and can never be valued. To my father Winati, I wish you
were here to see the first son you named ‘Mavuto’ making it in life. May your soul rest in eternal
peace!!!!

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ABREVIATIONS AND ACRONYMS
AIDS: Acquired Immune Deficiency Syndrome
CIPD: Chattered Institute of People Development
DI’s: Disabling Injuries
H&S: Health and Safety
HIV: Human Immune Virus
HR: Human Resources
HRM: Human Resources Management
HSE: Health and Safety Executive
ILO: International Labour Organization
NPOSH: National Programme on Occupational Safety and Health
OSH: Occupation Safety and Health
PPE: Personal Protective Equipment
SHE: Safety Health and Environment
UK: United Kingdom

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LIST OF FIGURES
Figure 1 represents a graph showing injuries summary by body part in the Agriculture section
Figure 2 below shows the common causes of accidents and injuries at Nchalo estate in the
Production, Warehouse and Packaging sections (Industrial section) in 2011, 2012 and 2013
Figure 3 is a graph showing Illovo Sugar Malawi profits in (Million Kwacha) and amount of
sugar produced at Nchalo Estate alone in (Metric tons ‘000) from 2009 to 2013.
Figure 4 is the structure of Illovo Group’s Safety, Health and Environment section.

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TABLE OF CONTENTS
CHAPTER ONE
BACKGROUND AND METHODOLOGY
1.1 Background…………………………………………………....................................9
1.2 Problem statement…………………………………………………………….......11
1.3 Justification for the study…………………………………………………….…..12
1.4 Objectives of the study………………………………………………………..….16
1.4.1 The main objective……………………………………………………..16
1.4.2 Specific objective……………………………………………….............17
1.5 Hypothesis…………………………………………………………………….….17
1.6 Organization of the study ……………………………………………………........17
1.7 Methodology……………………………………………………………….……..17
1.7.1 Research design…………………………………………………………18
1.7.2 Population……………………………………………………………....18
1.7.3 Sample…………………………………………………………………..19
1.7.4 Sampling methods……………………………………………………....19
1.8 Data collection methods................................................................................….........20
1.8.1 Interviews……………………………………………………………......20
1.8.2 Questionnaires…………………………………………………………..21
1.8.3 Documentations and company records…………………………………22
1.9 Data interpretation.....................................................................................................22
1.10 Ethical considerations..............................................................................................23

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CHAPTER TWO
LITERATURE REVIEW
2.1 Literature review……………………………………………………………….....24
2.2 Introduction……………………………………………………………………....24
2.3 Health and safety defined …………………………………………………….......24
2.3.1 Employee health and safety problems……………………………….....25
2.3.1.1 HIV/AIDS………………………………………………….................25
2.3.1.2 Workplace accidents………………………………………….............26
2.3.1.3 Alcoholism and substance abuse…………………………...................26
2.3.1.4 Job stress and burnout………………………………………................27
2.3.1.5 Occupation diseases…………………………………………................27
2.4 Effect of health and safety on organization performance………………………....28
2.5 The role of top management in health and safety management…………………...29
2.6 The impact of employees’ health on production………………………………….31
2.7 The cost of occupation health and safety………………………………………….31
2.8 The theoretical framework………………………………………………………...32
2.8.1 Expectancy theory……………………………………………………….32
2.8.2 Herzberg two factor theory……………………………………………....33
2.9 Conclusion………………………………………………………………………....35
CHAPTER THREE
STUDY FINDINGS AND DISCUSSION
3.1 Study findings and discussion......................................................................................37
3.2 Introduction...................................................................................................................37

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3.3 Data Presentation...........................................................................................................37
3.3.1 Protection of business interuption..................................................................29
3.3.2 Reduction in the number and magnitude of workplace diseases, injuries and
accidents..................................................................................................................41
3.3.3 Reliability and production improvement........................................................44
3.3.4 Improved morale and employee engagement..................................................46
3.3.5 Improved awareness and prevention of health and safety hazards................50
3.3.6 General improvement in employee motivation due to top management commitment
to employee health and safety..................................................................................52
3.3.7 Building public trust........................................................................................56
3.3.8 Cost reduction..................................................................................................58
3.4 Strategic implication of the findings...............................................................................60
3.5 Conclusion......................................................................................................................60
CHAPTER FOUR
CONCLUSION AND RECOMMENDATIONS
4.1 Conclusion and recommendations................................................................................62
4.2 Conclusion....................................................................................................................62
4.3 Recommendations.........................................................................................................63
4.4 Recommendations for further research.........................................................................65
Appendices.........................................................................................................................67
a. Interview guide..................................................................................................67

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b. Questionnaire.....................................................................................................71
c. Tables showing number of people interviewed and those that responded to the
questionnaires per department............................................................................74
References............................................................................................................................75

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CHAPTER ONE
1.1 BACKGROUND
There are a lot of factors which influenced the development of the profession occupation Health
and Safety (H&S). Among the influences was the growth of industrial welfare workers at the
beginning of the twentieth century which was concerned with their safety in the industries
(Torrington et al, 2008:527). Another influence was that of the Elton Mayo’s human relations
school at the Hawthorne plant of the Western Electric Company. It was found that an employee
counseling program was beneficial for both the mental health of the employees and their work.
This led to the introduction of welfare officers in organizations which were responsible for
overseeing the wellbeing of employees in the work place (Boyd, 2003).
More recently, the state has stepped in by requiring employers to take reasonable steps to protect
the H&S of employees and by providing an inspectorate charged with helping to ensure that they
do so in practice (Boyd, 2003). The H&S at Work Act for different countries realizes
responsibilities for employers, designers, principal contractors, and other construction project
participants. Statutory responsibility for enforcing these regulations rests with governmental
departments tasked with H&S monitoring and inspection. For example, in the United Kingdom
(UK), the Health and Safety Executive (HSE) exercises inspection and monitoring duties relative
to H&S (HSE, 2004: 3).
Malawi is also affected by those early developments in industrial revolution. For instance, the
Malawi national occupational safety and health program 2011-2016 aims at moving towards zero
accidents and diseases at work (ILO, 2013). The purpose of this National Program on
Occupational Safety and Health (NOSHP) is to guide a systematic and coordinated approach to

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strengthen a National System on Occupational Safety and Health aimed at fostering a
preventative safety and health culture in Malawi. Production industry is one of the critical sectors
in Malawi that is crucial to development since it provides for most of the needs to the citizenly.
Malawi is a pre-dominantly importing nation but amongst the little she export, Sugar produced
by Illovo adds a bigger percentage of the total exports (Ide-Jetro, 2010). Illovo Sugar (Malawi)
Limited is very old and the largest among companies in the production industry. It has
agricultural and milling assets in Nchalo and Dwangwa. Nchalo estate alone employs more than
6,000 people.
For any organization to operate, it relies on human resources who sell their labor in exchange of
wages. However, for these employees to make a huge contribution to their organization they
must be both physically and emotionally strong so that there may be no disruptions in the
production processes. Section 13(c) of the Republic of Constitution illustrates Malawi’s
obligation to H&S of the citizens. It states that “[Government have a duty] to provide adequate
health care, commensurate with the health needs of Malawian society and international standards
of health care”. Compliance to this obligation is also highlighted in the Workers Compensation
Act (2000), Section 4(1) which stipulates that “If an injury, other than the contraction of a
scheduled disease, arising out of and in the course of his employment is caused to a worker, his
employer shall, subject to this Act, be liable to pay compensation in accordance with this Act”.
The statements above shows that statutory responsibility for enforcing H&S regulations rests
with governmental departments tasked with H&S monitoring and inspection.
H&S management has been discussed in literature as well as in management forums all over the
world particularly in Europe, USA and other developed countries (Torrington et al 2008).
Although this act of ensuring well-being of employees in the work place has been found to have

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an impact on overall organization performance in those countries, the question to be asked is can
these findings be applied wholly in Malawi? Is H&S management really an issue of concern to
modern day HRM? If it is, what recommendations can managers follow to ensure that
investment in occupational H&S improves overall business performance or better still reduce the
negative impact of H&S management issues? In attempting to answer these questions, the
researcher thus endeavored to study the business case for investing in occupation H&S in
Malawian production industry with particular reference to Illovo’s Nchalo Estate.
1.2 PROBLEM STATEMENT
In the year 2000, Safety Health and Environment (SHE) at Illovo was fully implemented and the
company began to be highly committed at all levels to the issues concerning occupation H&S.
This was influenced by the Welfare Act 1997 (Nchalo SHE Handbook, 2010). A lot of programs
and initiatives were implemented including restructuring of the organization. For instance
positions were created and restructured such as the position of Group Risk Manager. Nchalo
estate alone has a fully-fledged safety department with a Risk manager and Safety officers who
manages the growing responsibility of the section. Some of the SHE initiatives being
implemented at Nchalo Estate are; medical surveillances and prevention of repeat incidents
initiatives, personal protective clothing (PPE), daily safety briefings and symbolic safety sign
posts around the estate.
Another initiative is that of SHE training. These include; annual briefings, first aid, defensive
driving, hazard identification and risk assessment, employee awareness on SHE and fire. Finally,
some of the programmes being undertaken are; car track for monitoring vehicle speed,
monitoring disabled injury frequency rates or lost time injury frequency rates. On top of all that

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Nchalo Estate has clinics all over the estate which treats employees and their dependents on each
and every illness and has a lot of qualified employees for the clinics such as a Medical Doctor,
Clinical Officers, Nurses and many other support staff. They also have a specialized ART clinic
for taking care of those employees living with HIV and AIDS. However, Hallowell (2010:33)
argues that SHE programmes are supposed to be cost effective due to the fact that the prime goal
of every business is to make profits for its stakeholders. Therefore, are all these H&S programs
and initiatives at Nchalo cost effective enough?
Illovo in general has been very successful over the years. For instance, the management at
Nchalo estate has been able to manage the growing responsibility due to extension of its farm
land as they now have sugar fields in Nsanje District (Kaombe farm). It has also been able to
improve its industrial relations climate at Nchalo estate as compared to the early 90’s and has
been able to adapt to the changing operating environment due to improved knowledge of the
local and international customers, government legislations such as modifications in the Pensions
Act in Malawi and the volatile political and economic environment of the globalized world. In
addition to that, Malawi’s contribution to the overall profits of Illovo group has been high
compared to other African sister companies (Ide-Jecto, 2010). For example, profits from
operations in 2014 were K 29 billion and K 32 billion in 2013 (extracted from audited financial
statements, 2014). In 2009, Malawi contributed 45 per cent to the overall operating profit of
Illovo Group of companies.
Although different studies including that by the Health and Safety Authority in January, 2006
found out that good H&S practices improves organization performance, it could not show the
direct link between H&S and profit maximization. Similarly, a study by Mbunju (2004)
concluded that H&S improves service delivery in the Malawian government hospitals. It found

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out that H&S policies helps to improve employee morale and initiatives such as compensation
improves employee commitment. However, no direct link between the two variables, H&S and
service delivery was illustrated as well as costs associated with it were not put into consideration.
Despite the fact that Illovo has no local competitor in Malawi, has a good reputation,
experienced employees, extensive capital, stable business and political environment in Malawi
and its continued investment in SHE at Nchalo Sugar Estate over the years, profits from
operations as indicated above in 2014 went down from K 32 billion in 2013 to K 29 billion
(Malawi Stock Exchange, 2014). Finally, a study by the Canadian Manufacturers and Exporters
found that annual lost time accident rates were often 25 or more per 100 employees in 1900. By
the 1980’s, this had declined to about 6 per 100 employees, and by 1999 in Ontario (Canada); it
had improved to less than 3 per 100. This is a substantial improvement. However, associated
costs to the business continue to rise. Consequently, there is a need to assess the business case
for investing in occupation health and safety in the Malawian production industry.
1.3 JUSTIFICATION FOR THE STUDY
The development of health, safety and welfare provision is to a large extent is interrelated with
the development of human resource management as a study (Torrington et al, 2008:521). As a
result the human resource manager is often the focus of whatever action that has to be taken in
ensuring that employee H&S issues are advanced. Since the industrial revolution, a lot have been
written concerning H&S and a lot have been researched. For example, after industrial revolution
welfare officers influenced the profession of H&S which propelled companies to start taking care
of employees’ welfare (Torrington et al 2008). This saw the birth of legislations in governments

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and organizations which signified their commitment to employee welfare but mere adoption of
the idea cannot be a basis of arguing that employee welfare really matters in organizations. In
addition, Elton Mayo’s human relations school at the Hawthorne plant proved that an employee
counseling program on the health of employees shows the impact of H&S policies on employee
performance in the workplace (Boyd, 2003). These early developments however, could not be
enough in explaining how significant investment in occupation H &S is to the organization.
Recent studies however, have also shown organizations the need to be serious with H&S
management. For example, in the study of new small businesses that registered with the
Workers' Compensation Board of British Columbia, a statistical correlation was found between
workplace safety and health and the survival of a small business. Businesses that failed within
one to two years of start-up had an average injury rate of 9.71 while businesses that survived
more than five years had an average injury rate of 3.89 in their first year of business (McDonald
et al, 2006). Secondly, The Malawi Occupational Health and Safety Profile compiled in 2009
identified a number of shortfalls ranging from inadequate National regulatory framework,
inadequate information documentation and dissemination, poor H&S management systems, non-
ratification of international instruments, inadequate enforcement capacity to weak stakeholder
cooperation (ILO, 2009). Thirdly, Jervis et al (2001) in his study found out that most researchers
on H&S just concentrate on the costs associated with it forgetting the intangible benefits H&S
management brings to the organization.
On the other hand a study by Chiocha et al (2011) on H&S in the Malawian construction
industry found that investment in occupation H&S can improve the perception that H&S is the
contractor’s responsibility, the limited financial provision for H&S, and the availability of H&S

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policies that does not reflect H&S leadership and management commitment to H&S in Malawi.
The study also acknowledged that H&S is a strategic issue, and that H&S failures negatively
impact on overall organizational performance and image but good H&S management leads to
improved employee performance, morale and profits.
In addition, a collaborative study by the International Labour Organization and the ministry of
labour in 2011 found that the study of the impact of occupation H&S is affected by so many
challenges in Malawi. They reported that although the impact is significant, the cost is also huge
and that is the concern of organizations in Malawi. The other problem is that of lack of
management for success. This means that the OSH directorate in Malawi is not aware of the
impact of its safety and health promotional interventions due to non-availability of a benchmark
or baseline data or information that identifies present performance which can be used in setting
targets in evaluating progress. In addition, fragmentation of OSH activities to different
departments in the country has also an impact in the study of the impact of H&S. This means that
there is no central Database or IMS on occupational accidents and work related deaths and
diseases. These factors presents a challenge in coming up with credible results when occupation
H&S in Malawi is being analyzed.
It is therefore important to note that H&S is a concept that has not been researched extensively in
most organizations in Malawi and in most cases the results of the studies have not been
published. This has had serious implications on the willingness of organizations to invest in the
H&S of their employees. This study therefore intends to add knowledge on the significance of
investing in occupational H&S of employees in Malawi.

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The early and recent developments and findings in the field of H&S have serious implications on
overall organization performance in Malawi. This means that, having knowledge of the business
value for investing in occupational H&S shall help managers to understand its implications and
how they can manage it. For example, H&S knowledge will provide ways of improving
employee relations in the workplaces by understanding and reducing industrial disputes caused
by H&S grievances that have engulfed most organizations in Malawi. It can also enable
managers to appreciate the importance of implementing H&S policies which are a sign of
employers’ commitment to the welfare of their employees. This can in the end help to improve
production, employee morale, improve efficiency and reduce absenteeism in the workplace. In
addition, research in H&S can as well provide documented information on H&S and help in
reducing huge cost (in terms of compensation) associated with mismanagement of H&S that
have engulfed most Malawian organizations. Ultimately, it is important that this study is carried
out in order to add knowledge to the existing literature on the business value for investing in
occupational H&S.
1.4 OBJECTIVES OF THE STUDY
1.4.1 THE MAIN OBJECTIVE.
The overall objective of this study is to assess the business case for investing in occupation
health and safety in the Malawian production industry.

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1.4.2 SPECIFIC OBJECTIVES.
To completely fulfill the main objective, the study will aim to achieve the following objectives:
 To assess the relationship between employees’ H&S and organization performance.
 To analyze top management commitment to H&S at Nchalo Estate
 To determine the cost of employee H&S at Nchalo Estate.
1.5 HYPOTHESIS
Investment in occupation health and safety programs improves overall organizational
performance.
1.6 ORGANIZATION OF THE STUDY
After discussing the background of the study and the methodology used in conducting this study
in the first chapter, the rest of the study is organized as follows; chapter 2 provides a thorough
and comprehensive literature review with theoretical framework linked to occupation health and
safety and their principle components. Literature review shall also include the link between H&S
management and organization performance, the costs associated with H&S as well as the role of
top management in occupation H&S. Chapter 3 presents the results/findings and makes an
analysis of the findings. Finally, chapter 4 concludes the discussion and makes recommendations
based on the discussion of the findings.
1.7 METHODOLOGY
The methodology provides the research method and design that has been used in the study. The
research method explains the technique used in collecting data. The research design provides a
frame work used in the collection and analysis of data. The methodological design however

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served as a guide on the procedure followed when interacting with participants. Grenner (2008)
argues that a research methodology concerns ones attitude to and his/her understanding of
research and the strategy he/she chose to answer research questions. Since the significance of
research lies in its quality and not in quantity, there is therefore, the need for those concerned
with research to pay due attention to designing and adhering to the appropriate methodology
throughout for improving the quality of research (Kothari, 2004:5). The research adopted
qualitative methods. Qualitative research, on the other hand, is concerned with qualitative
phenomenon, meaning a phenomena relating to or involving quality or kind.
1.7.1 RESEARCH DESIGN
This study adopted a cross-sectional study design. Babbie (2007) defines cross-sectional study as
a study based on observations representing a single point in time. This study shall therefore
contact and reach people only once. A cross-sectional study design enabled the researcher to
have a complete understanding of the impact of H&S on the organization.
1.7.2 POPULATION
The target population refers to the subjects who possess attributes which the researcher wish to
study and a universe of units from which the sample is to be drawn (De vos, 2001:198). The
study took place at Illovo’s Nchalo Sugar Estate and it focused on Agriculture, Production,
Packaging and Warehouse, Safety section and Clinic sections. The study collected data from
employees from these departments because these departments are generally prone to accidents
hence relevant and empirical data could easily be available (sourced from Nchalo Safety

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section). Currently, Illovo Nchalo Estate employs about 6,000 permanent employees and
seasonal workers.
1.7.3 SAMPLE
According to Babbie (2004:34), a sample consists of elements of a population only considered
for the actual inclusion in the study. The sample is selected because the researcher may not be
able to study the entire population of interest (Marczyk et al, 2005:18). Therefore, the sample
under-study was 82 employees although it targeted 100 employees. These were the
representatives from different departments since it concentrated on senior staff, supervisors and
any other workers according to its nature and the fact that time to conduct this research is
limited.
1.7.4 SAMPLING METHODS
Creswell (2006) outlines sampling techniques which are consistent with both qualitative and
quantitative methods. He argues that qualitative methods go hand in hand with purposive
sampling. Purposive sampling is defined by Creswell (2006) “…as one of the most common
sampling strategies which groups participants according to preselected criteria relevant to a
particular research question.”
However, according to Dooley (1990:134), there are two primary sample techniques, namely
probability sampling and non-probability sampling. In probability sampling, every member of a
population is given an equal chance of being included in the sample, whereas in non-probability
sampling, there is no way of knowing the probability that a case will be selected for a sample,

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thus there is no way of knowing how representative the sample is. Mouton (1996:38) states that
the researcher may use multiple methods and techniques in order to improve the quality of
research. In this study, the non-probability sampling technique was used together with self-
administered open-ended questionnaires and in-depth interviews to collect data from all the
respondents.
1.8 DATA COLLECTION METHODS
Mouton, (1996:10) observes that this process is accomplished through various methods and
techniques of observation such as interviewing, content analysis and document analysis.
According to Layder, (1993:54) there are several instruments that can be used to collect data,
among which are interviews, questionnaires, surveys and attendance records. However, data
collection took place at Illovo Estate in Nchalo since data collection is most efficient when
collected from one central location as argued by (Tayie, 2005). In this study, questionnaires and
key informant interviews and company records were used to collect data.
1.8.1 INTERVIEWS
Interviews were used in this study as an instrument of collecting data. This method was central in
this study as it provided an understanding of the opinions, feelings and values conveyed by each
respondent concerning the impact of H&S programs policies on employee’s job performance. In
data collection from the respondents, the research used in-depth structured interviews. In a
structured interview, the sequence of questions to be asked and the detailed information to be
gathered are all predetermined. An advantage of structured interview is that it provides uniform
information which assures the comparability of data (Kumar, 2005:126).

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The researcher booked appointments with ten (10) senior management officials and twenty (20)
supervisors of which only fifteen (15) were reachable at Nchalo Sugar Estate where in-depth
face- to- face and well-structured interviews schedules were conducted. These officials were
targeted due to their positions and the roles they play in the administration of the institution.
They are the policy-makers and are either involved in design and formulating reform, or
facilitating its implementation. The interviews were reliable and valid because participants
engaged in open discussion with the researcher, expressed their personal feelings, made
suggestions and provided explanations during the course of interview.
1.8.2 QUESTIONNAIRES
In this study, the researcher used self-administered questionnaires with closed and open ended
questions which allowed the respondents to express themselves fully and provide detailed
information. The respondents were from the departments under study which were; Agriculture,
Packaging, Warehouse and Production. This was the case because according to Nchalo Estate
Risk Manager, these are the sections whose study can provide a real picture of SHE at Nchalo
estate since it is in these areas where SHE issues are common. Despite that other respondents
were from other sections such as the Clinic and Human Resources because of their role in SHE
management at Nchalo. The General workers (Labourers) were selected because of the ability to
write and understand English since the questionnaires were structured in English. On the other
hand the managers and supervisors were selected because of their position in understanding the
impact of H&S management to individual, departmental and organization output.
The researcher distributed questionnaires to the seventy (70) participants and were collected
from them after one week. However, only fifty seven (57) questionnaires were collected as some

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participants reported that the questionnaire could not be located and others were out of their duty
station. Questionnaires were used because they allow a large number of subjects to be tackled
and open ended questions provide a greater uniformity of responses and are easy to analyse than
closed questions (Babbie, 2007).
1.8.3 DOCUMENTATION AND COMPANY RECORDS
The researcher utilised primary and secondary data in this study as the researcher was seeking an
understanding of the impact of investment in H&S on overall organization performance. Primary
data is the type of data the researcher collects by making first hand observations (Kalof et al,
2008:39). Although primary data is very crucial in achieving concrete results in a research,
secondary sources are also important as they broaden the understanding of key concepts, theories
and empirical results. The secondary data sources used in this research include several books,
research literature, journals, review of official documents and company records, the relevant
legislations and review of related literature.
1.9 DATA INTERPRETATION
Data interpretation involves data analysis. Data analysis is the process of bringing order,
structure and meaning to the mass of collected data (De Vos et al, 2001:333). It is one of the
critical processes inherit in research. According to Henning (2004:101) data analysis is a process
that requires analytical craftsmanship and the ability to capture understanding of the data in
writing. In this qualitative research, the purpose of data analysis is to transform data.
The study adopted a correlation data analysis method. According to Kothari (2004), this method
involves studying the joint variation of two or more variables for determining the amount of

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correlation between two or more variables. This method was used since this is a social science
research in which the objective was to understand and control relationships between variables
and determining the causes. After interviews, all responses were thoroughly analyzed and
subjected to content analysis to single out themes and sub-themes. Questionnaire responses were
entered to ensure that data is thoroughly analyzed in order to help in ascertaining the link
between in investments in H&S and business performance. Tables, charts, clip arts and shapes
were also used to systematically display data.
1.10 ETHICAL CONSIDERATIONS
Issues of health and safety involve emotional attributes as well as personal values. This study
therefore will have serious ethical considerations. These include issues of confidentiality,
objectivity, anonymity, maintaining personal integrity as well as strong adherence to the labor
laws of Malawi and company rules and regulations. Participants shall however be briefed about
objectives of the study and participation shall not be imposed on them. Participants shall be
assured of confidentiality and that findings of the study shall be for academic purposes only.

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CHAPTER TWO
2.1 LITERATURE REVIEW
2.2 INTRODUCTION
This chapter of the study reviews the literature on occupational H&S. It begins by reviewing the
concept of occupation H&S and then provides an in-depth discussion of the relationship between
employees’ H&S and organization performance. It will also analyze the role of top management
in H&S management and examine the cost of employee H&S. Finally, shall discuss the theories
which have been used in this study. These are Vrooms’ expectancy theory and Herzberg’s two
factor theory.
2.3 HEALTH AND SAFETY DEFINED
Mathis & Jackson (2011:468) argues that one of the key components of strategic management is
risk management. It involves responsibilities to consider physical, human, and financial factors
to protect organizational and individual interests. Its scope can range from workplace H&S to
disaster preparation. The management of H&S according to Beadwell (2004) is generally the act
of ensuring well-being of employees in the work place. The terms H&S are closely related.
Health refers to a general state of physical, mental, and emotional well-being (Mathis & Jackson,
2011:468). A healthy person is free from illness, injury, or mental and emotional problems that
impair normal human activity. Health management practices in organizations strive to maintain
employees’ overall well-being. Mathis and Jackson also define safety as a condition in which the
physical well-being of people is protected. Armstrong (2009:960) on the other hand defines
occupational health as programs that deal with the prevention of ill-health arising from working

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conditions which comprise medicine and hygiene. The main purpose of effective safety
programs in organizations is to prevent work-related injuries and accidents.
2.3.1 EMPLOYEE HEALTH AND SAFETY PROBLEMS
A lot of health related substances and problems can undermine employee performance at work.
The problems include; alcoholism and substance abuse, HIV and AIDS, job stress and burnout,
occupation diseases and workplace accidents (Dessler, 2000). In Africa HIV and AIDS is a
biggest health challenge facing organizations since it undermines the immune system of the body
and its impact on working relationships. This raises the need for organizations to increase their
commitment to the management of employees living with AIDS whose ill-treatment impact
negatively to the organization performance (Cohen, 2007). In the present days, the whole world
is committed to fight against the HIV/AIDS pandemic.
2.3.1.1 HIV/AIDS
The International Labor Organization’s (ILO) commitment to fighting HIV/AIDS in the
workplace is founded on two important facts. First, the epidemic is concentrated in the working
age population (15-49 years), and affects the world of work in many ways, resulting in reduction
in labor supply and earnings, loss of valuable skills and experience, and decline in productivity
and enterprise profits. Secondly, there is the capacity of the ILO to respond to the epidemic
based on its tripartite structure, which makes it possible to mobilize governments, employers and
workers organizations to take action against AIDS in the workplace (Cohen, 2001:7). However,
organizations should not single out employees to be tested for to do so is subjecting that person
to discriminatory treatment. Employees who have tested positive to HIV cannot be given

26
mandatory leave unless their performance has deteriorated and employers has a duty to support
and make reasonable accommodation and develop an HIV and AIDS policy that will guide its
behaviors in treating people living with AIDS.
2.3.1.2 WORKPLACE ACCIDENTS
Workplace accidents are caused by two factors which are technical and human causes (HSA,
2006, p. 8; Flippo, 1976:524). Technical causes of accidents are connected with deficiencies in
plant, equipment, tools, poor housekeeping, improper lighting and inadequate ventilation.
Human causes of work place accidents are connected with deficiencies in the individual such as
improper attitudes, carelessness, and inability to perform the job, day dreaming and use of drugs.
On the other hand, Dessler (2000) adds that the basic causes of accidents at the work place
includes; chance occurrences, unsafe conditions, and unsafe acts. Chance occurrences contribute
to accidents but are more or less beyond management’s control. For example, walking past a
plate glass window just as someone hits a ball through it. Unsafe conditions on the other hand
includes; improper ventilation and defensive equipment. Finally, unsafe acts are behavior
tendencies and undesirable attitudes that cause accidents such as and working at unsafe speed.
2.3.1.3 ALCOHOLISM AND SUBSTANCE ABUSE
Alcoholism and substance abuse are serious and widespread problems at work. Some experts
estimate that as many as 50% of all problem employees in industry are actually alcoholics
(Dessler, 2000). Due to alcoholism, both the quality and quantity of work decline sharply and a
form of on the job absenteeism occurs as efficiency declines. It is important to note that alcohol
related problems range from tardiness in the earliest stages of alcohol abuse to prolonged

27
absences in the later stage. Cancelling and treatment must be offered to the affected employees
as part of employee benefit package to ensure health workforce (HSA, 2006).
2.3.1.4 JOB STRESS AND BURNOUT
Cole (1997:234) defines stress as the adverse psychological and physical reactions that occur in
an individual as a result of their being unable to cope with the demands being made on them.
Problems such as alcoholism and drug abuse sometimes result from job stress. However, job
related factors that cause stress are overwork, relocation and problems with handling customers
which may lead into drug abuse (Dessler, 2000). The main sources of job stress can also be
environmental such as pace of work, job security and personal, such as divorce and self-esteem.
Stress can be reduced through developing awareness, adjusting attitudes and taking action to
alleviate stress.
2.3.1.5 OCCUPATION DISEASES
These are job induced disturbance of the normal functioning of the body or a person’s mental
and emotional capacities (HSA, 2006). Examples of these diseases are; Tuberculosis, rushes,
excessive and prolonged job stress, and impaired hearing. These illnesses take time to be
manifested, as such it is problematic to prevent them and they may develop after the worker has
left the organization hence difficult to claim. It is therefore the duty of management to provide
for mechanisms that can reduce the danger of being affected by these diseases. For example, by
removing harmful materials from the rest while providing special protection for those who work
in disease prone areas employees can be protected.

28
2.4 EFFECT OF HEALTH AND SAFETY ON ORGANIZATION PERFOMANCE
In the last decade a dominant concern of human resource practitioners and academics has been to
establish the relationship between human resource management and organizational performance
(Bach, 2005:290). However, this part of the paper aims at discussing the relationship between
investment in H&S of employees and overall organization performance. Dessler (2000) argues
that the consequences of occupational accidents and diseases include; reduction in quality and
quantity in job performance, increased absenteeism and turnover, and increased grievances. It
can therefore, be argued that proper management and implementation of H&S initiatives can lead
into increased quality and quantity of job performance which can translate into overall
organization performance.
Bevan (2010:16) attests that healthy employees whose physical and psychological wellbeing is
good demonstrate higher levels of commitment than those who are less healthy. Committed
employees are more likely to identify with the values of their organization, be proud to work for
it and want to exert effort on its behalf. They tend to work harder and are more willing to give
‘discretionary effort’. Second, committed employees are more likely to deliver high value
customer service. Many case studies have found that engaged and committed employees have a
significant influence on customer outcomes and on sales performance (Rucci et al, 1998).
It is also important to note that another benefit of having health and safe workforce or H&S
initiatives is that they improve motivation levels of employees. Maslow’s hierarchy of needs
contain security needs as one of the basic need of every individual which is the need to feel safe
and secure (Thomson, 2002:77). It is argued that by providing these needs for security,

29
employees’ performance will greatly improve. On the same motivation point of view, it can be
argued that Frederick Herzberg’s research on motivation revealed a number of factors which
affected the way in which people felt about their work (Herzberg, 1959 cited in Thomson,
2002:78). One of the factors which can increase employee satisfaction is company policy.
Therefore, having a well formulated H&S policy can improve workers motivation to perform.
At a psychological level, many of the factors associated with sickness and stress also affect
employee performance (Robinson, 1997). Employees are demotivated or disengaged from their
work, or who find aspects of their work stressful, or who have poor working relationships with
colleagues, or who feel their job is not worthwhile are more prone to periods of absence and are
more likely to resign their posts. This state of being affects employee engagement to the
organization (Bevan, 2010:15). This decreases individual performance thereby affecting the
overall organization performance.
2.5 THE ROLE OF TOP MANAGEMENT IN HEALTH AND SAFETY MANAGEMENT
Employers mean any person, body corporate, undertaking, public authority or body of persons
who or which employs an employee and includes heirs, successors and assignees of the employer
(Employment Act, 2000:4). To management represent the employer. The commitment of top
management manifests itself in top management’s being personally involved in safety activities
on a routine basis; giving safety matters a high priority, production scheduling, giving safety
officers high ranks and status and including safety and health training in new workers training
(Dessler, 2000).

30
Torrington and Hall (1995:509) argues that in enforcing H&S at work every employer, through
top management should prepare a written statement of the general policy on H&S and the
organization should ensure that arrangements for carrying out that policy are in force and it is
communicated to employees. This general policy statement should be a declaration of the
intention of the employer to safeguard H&S of its employees. Top management has another duty
of conducting risk assessment (Armstrong, 2009:962). This is concerned with the identification
of hazards and the analysis of the risks attached to them. Its purpose is to initiate preventive
action. Armstrong, continue arguing that Human Resource Specialists or Safety Advisors have a
duty to conduct safety audits. This involves examining the whole organization in order to test
whether it is meeting its safety aims and objectives. It helps in drumming up action plans for
approval by the board.
Dessler (2000) is of the view that any safety modeled manager must instill in his/her workers the
desire to work safely by minimizing hazards since any work place is prone to accidents. This is
the case because without full commitment of all levels of management, attempts to reduce unsafe
acts by workers will meet with little success. The first line supervisor is a critical link in the
claim meaning that it the supervisor does not take safety seriously, it is unlikely that those under
him/her will either. Finally, Torrington and Hall (1995:509) attest that an alternative or
subsequent power of the manager of inspector is to issue prohibition notice to where they believe
that there is a risk of serious general injury. Therefore in to summing up these roles, it can be
argued that every manager, supervisor or everyone in an organization is responsible for his/her
H&S as well as that of the friend. The employer through top management has a duty of creating
a conducive and safe working environment.

31
2.6 THE IMPACT OF EMPLOYEES’ HEALTH ON PRODUCTION
Armstrong (2006) suggests that good H&S programs protect employees and the general
environment against the hazards arising from their employment and what the organization does
and produce respectively. This means that if well implemented, H&S programs improve
production. For instance, H&S initiatives help to reduce absenteeism thereby ensuring that
production is not disrupted. They also reduce lost time and work related stress which affects
production of those directly or indirectly affected by work related injuries and accidents
(Armstrong, 1991).
2.7 THE COST OF OCCUPATIONAL HEALTH AND SAFETY
Several scholars argue that poor H&S management cost organizations and these costs are both
direct and indirect. Mathis and Jackson (2011:469) outlined direct costs and indirect or hidden
costs. Direct costs include medical and compensation. Nevmark et al (2007:221) reported that
Workers’ compensation costs are a major issue for many employers and they usually represent
from 2% to 10% of payroll for most employers and the major contributors to increases have been
higher medical costs and litigation expenses. In indirect or hidden costs on the other hand
include; time lost from work, economic loss to employee, time loss by peers and loss of
efficiency by crew, lost time by supervisor, cost of training substitute, damage to equipment,
time equipment is out of service and spoiled work, water and chemicals. These summarized costs
shows that the direct costs of accidents are only a small part of the total costs.
On the other hand, Bevan (2010:14) attest that direct and indirect costs of workplace accidents
can be very high and, while many organizations insure themselves against personal injury claims

32
and public liability, there are a number of additional costs which remain uninsured. These
include: lost time, sick pay, damage or loss of product and raw materials, repairs to plant and
equipment, extra wages, overtime working and temporary labor, production delays, investigation
time, fines, loss of contracts, legal costs and loss of business reputation. It is however important
to note that there is consensus among scholars on the cost of H&S. Therefore, top management
need to take note of the proposed ways of how the costs can be reduced.
2.8 THEORETICAL FRAMEWORK
The study has explored elements of the employment relationship that lead either to positive or
negative impact on organization performance. The study shall therefore use Vroom’s expectancy
theory, content (needs) theory of Maslow as well as Hertzberg’s two factor theory. Individuals
have expectations when they join organizations. However, when their expectations are not met,
there emerges negative psychological contract which reduces employees’ contribution to overall
organization output. The theories shall thus help espouse the concepts better and shall help show
the relationship between investment in H&S and business performance.
2.8.1 EXPECTANCY THEORY
In order to fully understand how employee expectations influence their contribution to an
organization, Expectancy Theory has been critical in the discussion of the subject matter.
Expectancy Theory is a cognitively based motivational theory, initially put forward by Victor
Vroom in 1964 (Sparrow et al, 2003). The theory begins by recognizing the fact that
expectations of employees have implications on their motivation to work to their fullest
potential. According to this theory, the strength of a tendency to act in a certain way depends on
the strength of an individual’s expectation that the act will be followed by a given outcome.

33
Expectancy Theory is popularly expressed by the valency-instrumentality-expectancy
connotation. Valency stands for value, instrumentality is the belief that if we do one thing it will
lead to another and expectancy is the probability that one’s action or effort will lead to an
outcome (Armstrong, 2008).
The theory has been expressed by the formula:
Motivational force (F) =Valency (V) × Expectancy (E)
Expectancy theory has thus been critical in the study by working as a framework for diagnosis
and identification of changes needed to increase morale and commitment. The importance of this
approach is the emphasis that it places on the individuality and variability of motivational forces.
The theory has also act as a tool for identifying impacts of policies like health, safety and welfare
on employee’s contribution to business performance. Ultimately, the theory has help in
examining the relationship between employee expectations and employee performance at Nchalo
Sugar Estate. However, the theory has the weakness of failing to determine what is actually
expected of parties in the employment relationship because some of these expectations are
implied and unwritten. Thus, it becomes difficult to ascertain something which can be defined
clearly stated in the first place.
2.8.2 HERZBERG TWO FACTOR THEORY
The second theory that has been used in the study is “Herzberg’s Two Factor Theory”
(Armstrong, 2009). Frederick Herzberg conducted research aimed at investigating the sources of
job satisfaction and dissatisfaction in workplaces. He identified two distinct sets of needs in
individuals working in organizations. These are the need to avoid pain and discomfort and the

34
need to develop psychologically as a person (Collings et al, 2009). He thus grouped the factors
into two; one consists of the satisfiers or motivators, because they are seen to be effective in
motivating the individual to superior performance and effort. The other consists of dissatisfies
called (hygiene factors) which essentially describe the environment and serve primarily to
prevent job dissatisfaction while having little effect on positive job attitudes (ibid).
Hygiene factors include working conditions, company policy and administration, status and
security of job, supervision, interpersonal relations, pay, salary and fringe benefits (Bratton et al,
1999). If these are not adequate, there will be dissatisfaction and work output suffers. On the
other hand, Motivators included achievement of work tasks, advancement and recognition by
supervisors for achievement and quality of work, increased responsibility as a reward for
successful work efforts and the opportunity for psychological development in the work role and
growth. It is thus argued that since these are the characteristics that people find intrinsically
rewarding, people will work harder to satisfy them through their job.
Herzberg’s theory has been critical in the study because it has help in ascertaining factors that
influence workers of Illovo in working hard to their potential. However, Armstrong (2008) has
criticized Herzberg’s theory in a number of ways. He argues that in the research method
conducted by Herzberg, no attempt was made to measure the relationship between satisfaction
and performance. It has also been suggested that the two-factor nature of the theory is an
inevitable result of the questioning method used by the interviewers. It has also been suggested
that wide and unwarranted inferences had been drawn from small and specialized samples and
that there is no evidence indeed to suggest that the satisfiers do improve productivity (ibid).

35
2.9 CONCLUSION
This chapter has reviewed literature on occupation Health and Safety. It has reviewed the
concept of occupation H&S and then provided an in-depth discussion of the relationship between
employees’ H&S and organization performance. It has analyzed the role of top management in
H&S management and examined the cost of employee H&S. Finally, it has discussed the
theories which have been used in this study. These are Vrooms’ expectancy theory and
Herzberg’s two factor theory.
From the literature above, it is important to note that employee H&S management is a very
important activity organizations need to invest into. This is because it is the process of ensuring
that the organizations most valuable resource which is the human resource is in good state and
remain productive. As CIPD (2002) argues, H&S management is one of the most important
initiatives that ethical managers would adopt since it demonstrates commitment of a caring
organization. This is the case because literature has shown that improper management of
workplace health and safety problems such as; alcoholism and substance abuse, HIV and AIDS,
job stress, diseases and workplace accidents has a negative impact on organization performance.
This is because these problems increases absenteeism, increases fear and in general they reduce
individual performance which could in the end affect overall production. On the other hand
however, proper management of these problems reduces the risks they could bring to the
organization and improve performance.
In addition, literature has demonstrated that having H&S initiatives in an organization can
improve employee morale and commitment since workers would know that the organization

36
takes care of their welfare. It has also been noted that for H&S to be a success at an organization,
top management must support it. However, complete success of the initiative would need that
everyone is involved since safety starts at an individual level but management is responsible for
creating a conducive and safe working environment hence making their role significant. Finally,
literature has shown that bad employee health conditions and accidents generally have a negative
impact on production since they affect individual performance in a number of ways. For
example, slippery floors and poor ventilation in a factory or working room could increase
injuries to employees. Secondly, a poor H&S policy impacts negatively on an organizations
public image and employee relations climate. Despite its significance, H&S management can
also be a very big cost to the organization whose prime goal is making profits for its
stakeholders. This was the reason that had compelled the researcher to investigate the business
case for investing in occupation health and safety in Malawian production industry.

37
CHAPTER THREE
3.1 STUDY FINDINGS AND DISCUSSION
3.2 INTRODUCTION
This chapter discusses findings of the study. The author made sure that at least all the grades of
the respondents were covered and from analysis of the respondents, all the responses were quiet
representative. The chapter examines the hypothetical question that investment in occupation
health and safety improves organization performance. This has been achieved by making an
examination of the core aspects of the study’s problematic areas which have been identified in
the findings. The analysis basically is based on the findings vis-à-vis literature review on
occupation health and safety and business performance. It must be noted that findings of the
study adds knowledge to findings of previous empirical research conducted on the subject
matter.
3.3 DATA PRESENTATION
At Illovo’s Nchalo Estate, all the managers interviewed responded positively by saying that good
H&S initiatives at their organization improve productivity. They said this is the case because
business interruption is greatly reduced; there is no reduction in the quality of work and products
made, they improve employee morale and commitment as well as employee relations at the work
place, they greatly reduce the costs of injuries and accidents to both the individual workers and
the employer, they demonstrate an organization’s compliance with the law and increase
employees’ discretionary behavior as fear is reduced hence improving individual as well as
group performance. The managers also agreed in their responses that proper H&S programs
helps in building an organizations public image and all these according to the company records
have a positive impact on the overall profits of Illovo Sugar Limited for over the years. However,

38
the managers also stressed that H&S management in an organization is a cost in itself but if
managed well the benefits it brings are much greater than the costs.
The supervisors on the other hand had some variations in their responses depending on which
department they were from. This was the case because some sections like production, warehouse
and packaging are much prone to injuries and accidents than others such as the agriculture
section. Although this was the case, the responses of the respondents from the sections were
similar to those of the managers. Firstly, 66% of the supervisors reported that sound H&S
programs improve individual and group output and employee relationships in the workplace;
they reduce the cost of pain and suffering of the injury and illness and reduce the loss of
individual income and possible loss of a job. However, one supervisor from the Agriculture
section argued that H&S programs in the agriculture section at Nchalo estate is just a waste of
money since H&S is an employees’ responsibility. However, he also said that the impact of good
H&S initiatives is that they reduce the rate and magnitude of accidents, diseases and injuries at
work. The responses from the supervisors from Safety and Clinic sections were similar to those
of the top managers but the occupational health nurse added that the only occupational health
problem at Nchalo estate is sound induced hearing loss and minor eye problems for those
exposed to the computers.
Finally, 81% of the employees who were given the questionnaires responded timely and 96% of
their respondents that sound health and safety policy show them that the organization cares for
their welfare and H&S initiatives such as safety trainings reduce fear in them hence they
motivate them to work hard. It was also noted that the responses of all the questionnaire

39
respondents in one way or the other meant that the protective clothing and aides they are given
reduces fear in them when they are supposed to work in difficult situations such as working at
height and in the sugarcane fields when it is raining. For instance, a Starker from the warehouse
section commented that on his first day to work at the warehouse he was asked together with his
team members to load a thirty tons truck but he could not know how were they going to put six
hundred 50 kilograms of Sugar into one truck. However, when he was taught to how use Safety
Harness the fear he had from working at height went away and he found the job exciting. On the
other hand, one Cane Guard in the agriculture section said that “snakes have no strong teeth for
my figures because they are plastic”. He referred to gumboots which protect him from snake
bites in the cane fields.
It was noted that most of the responses were similar in one way or the other. All in all, the
responses echoed that investment in occupation H&S at Nchalo is very important because; it
reduce costs, improve awareness and prevention of health and safety hazards, reduce business
interruption, improve productivity, build public trust and generally improves employee
motivation due to top management commitment. It also reduces frequency and magnitude of
injuries, as well as improves morale and employee engagement. Therefore their overall analysis
was that investment in H&S improves individual, group and organizational performance at
Nchalo.
3.3.1 PROTECTION OF BUSINESS INTERUPTION
All the managers reported that the accidents, injuries and bad health conditions result in major
interruption of the business and it is unacceptable from a shareholder or regulatory perspective.

40
One of the safety officers said that as a responsible organization, Illovo ensures that it assess its
operations and processes to understand the hazards and implement control measures to eliminate
or control identified hazards. One of the ways identify hazards is by conducting risk assessment
and safety talks at the beginning of every shift. Bach (2005) also argues that the major
consequences of occupational accidents and diseases include; increased compensation costs and
production interruption which leads to reduction in quality and quantity in job performance
which eventually impacts negatively on overall business performance. To avoid these effects
management at Illovo conducts risk assessments exercises among other initiatives.
At Nchalo estate, risk assessment exercises help the managers to make plans of removing the
safety hazards to avoid the impact they can make to the employees and the whole operation in
general. On the safety talks, the Warehouse Load Checker commented that they remind
employees of the dangers associated with their work and that of their colleagues and thereby
helping them to take appropriate precautionary measures such as “Take Five”. This is an
initiative which compels each and every employee to take five minutes before starting working
by ensuring that he or his colleagues are not in danger. Illovo also obtains good advice from
employees and follows it. All these ensures that managers at Illovo understand that incidents that
are a result of failure to assess hazards and implement control measures will invite regulatory
intervention, including stop work orders and, depending on severity, may result in charges. The
managers due to good H&S management understand that if an incident is serious, it can put the
operation out of business. Therefore, Illovo ensures that good H&S management initiatives are
implemented to avoid disruption of production processes hence maintaining the level of output.

41
3.3.2 REDUCTION IN THE NUMBER AND MAGNITUDE OF WORKPLACE
DISEASES, INJURIES AND ACCIDENTS
All the respondents from the Clinic and Safety sections reported that for the past five years, few
incidents of work related injuries, accidents and diseases has been reported. Company records
also supported these findings. Most of these problems are minor injuries and there has been a
reduction of the disabling injuries (DI’s). Figure 1 on the next page represents a graph showing
injuries summary by body part in the Agriculture Section from 2012 to 2013. Not only that,
Figure 2 shows that in 2011, 2012 and 2013, the only common cause of accident at Nchalo was
‘struck against’ which is also not a big danger to the safety of the employees compared to others
according to safety personnel. On the other hand, in her words the occupation Health Nurse for
Nchalo explained that the only established occupation health disease at Nchalo is noise induced
hearing loss while the injuries ranges from fractures, burns, soft tissue injuries to falling bodies
in the eye. She also said that the risks associated with work are cough, stress, back aches, athletes
foot and vision impairment. However, she cautioned that research and clinical records has shown
that most of these risks are not directly linked to the type of work the concerned employees
perform. For instance, one may find that a driver is complaining about his eyes while welders do
not.
In addition, most of the ‘Back Ache’ problems are due to the farm work employees do at their
gardens after work thereby showing no connections to their work. Most of the vision problems
on the other hand are not connected to the work of those diagnosed with those problems. The
Occupation Health Nurse therefore commented that it is difficult in her professional to support
that a Cleaner’s sight problem is as a result of his/her job when a Welder who up to retirement

42
has never complained about his/her eyes. The nurse and her colleagues in the clinical and Safety
sections attributed the Occupation H&S successes at Nchalo to Illovo’s investment in good H&S
initiatives. Because of these facts the organization’s H&S costs have been greatly reduced,
employee relations at work improved and departmental output increased thereby improving the
overall production of Nchalo mill.
Figure 1 below represents a graph showing injuries summary by body part in the Agriculture
section from July 2012 – June 2013.
The graph illustrates that a lot of workplace injuries were minor injuries. This means that there
were few disabling injuries (DI’s) which reduced Nchalo Estate’s expenditure on H&S that
period. That according to the interviewees enable the company and the departments to work
within the budget limit; a factor which reduces Illovo’s operating costs.
7
12
2
7
3
2
1 1
4
2
7
0
1
0
1
0 0 0
0
2
4
6
8
10
12
14
Head Leg Eye Finger Arm Shoulder Neck Trunk Hand
Total injuries Disabling injuries (DI's)

43
Figure 2 below shows the common causes of accidents and injuries at Nchalo estate in the
Production, Warehouse and Packaging sections (Industrial section) in 2011, 2012 and 2013.
The figures above shows that the only a few serious injuries took place as a result of Illovo’s
continued commitment to SHE management. They also show that even the numbers of accidents
caused by Struck Against are gradually reducing from 2012 to date due to increased awareness
of the common causes of accidents at Nchalo. Improved awareness of causes of accident reduces
fear which improves morale for the employee to work hard. According to Herzberg motivation
theory, the hygiene factors describe the working environment and serve to prevent job
dissatisfaction. Therefore, absence of fear to the employees improves the working environment
at Nchalo estate hence preventing job dissatisfaction which could have a negative impact on the
employee’s job performance and departmental output.
0
1
2
3
4
5
6
7
8
9
Numberofaccidents/injuries
Causes of accidents in Production, Packaging & Warehouse sections
A graph showing common causes of
accidents at Nchalo in the industrial sections
2011
2012
2013

44
3.3.3 RELIABILITY AND PRODUCTION IMPROVEMENT
20% of the questionnaire respondents from the Production and Packaging/ warehouse sections
reported that injuries, occupational illnesses and incidents causing losses are often symptoms of
defects in the workplace systems. They commented that most injuries and accidents caused by
improper conveyors, slips and falls, chemicals, manual handling and electricity at Nchalo mill
mostly results due to defects in the work processes and systems. They also commented that these
underlying defects which allow an injury, illness or incident to occur affect the reliability of the
operation, productivity and product quality. For instance, a Bag Attendant at Packaging section
commented that ‘when the machine stops due to an injury or accident our supervisors advise us
that when production resumes the first one ton of sugar produced should be put in yellow bags
where we put rejected sugar since the stoppage of the machine any how reduces the quality of
sugar produced’. In addition, the temporary halt of production reduces output and repair or
replacement of the damaged machinery is costly and takes time to start functioning properly.
They also reported that all these reduces levels of production reliability in the times of high
demand from customers such as in the months of April, May and June when production has just
resumed.
In addition, almost all the responses echoed that ill-health and workplace injuries reduces the
quality of work in their sections and reduces their shift output. The supervisors said that
increased injuries and accidents in their shifts label them as non-performers in the face of
managers and non-caring in the face of their employees. These conditions reduce worker’s
motivation and commitment to their day to day duties and sometimes lead to other accidents
hence impacting negatively on the departmental productivity and employee relationships. The

45
Expectancy theory of motivation is based on the significance of employee expectations in
influencing their contribution to the organization. In the case of Illovo, employees expect their
employers and managers to be caring and the organization to provide avenues for good employee
relationships by ensuring that their welfare is taken care off. Therefore, when these expectations
are fulfilled employees’ motivation to work improves and departmental output also increases.
On the other hand, section managers from Agriculture noted that good H&S conditions leads to
improved employee commitment to the job throughout all husbandly practices to harvesting as
they ensure that there are not disruptions in the processes such as irrigation and weeding.
Therefore, their comments show that proper H&S management initiatives reduce the bad effects
and improve employee and department productivity with the help of reliable workplace systems.
Improvement in the production processes directly leads to increased profits of the only sugar
producer in Malawi.
Figure 3 on the next page is a graph showing Illovo Sugar Malawi profits in (Million Kwacha)
and amount of sugar produced at Nchalo Estate alone in (Metric tons ‘000) from 2009 to 2013.

46
The trend of the operating profits for Illovo in the past five years shows that Illovo has been
maintaining the profits levels and in 2013 they improved with just a small increase in the sugar
produced. The amount of sugar produced also support the argument that over the past five years
Illovo has been performing well due to among other things, increased investment in occupation
H&S. This therefore shows a link between H&S management and profit maximization since
investment in occupation H&S together with other important factors at Illovo lead to improved
overall business performance.
3.3.4 IMPROVED MORALE AND EMPLOYEE ENGAGEMENT
Expectancy theory recognizes the fact that expectations of employees have implications on their
motivation to work to their fullest potential. The findings have found that H&S policy and
initiatives improve employee relations climate at Nchalo estate and this improves employee
motivational levels. All the supervisors and employees interviewed reported that reduction in
2009 2010 2011 2012 2013
186991
178647
168573 163851
177108
9740 10915 9736 12034
32478
An illustrtation of amount of Sugarproducedat Nchalo and Illovo
Malawi operating profits from 2009-2013
Sugar Produced in (tons '000) Profits in (K Billion)

47
injuries and accidents in the workplace improve employee morale and commitment to their work.
This in the end according to the supervisors increases production and improve quality of work.
These findings therefore support the fact that the tendency to act in a certain way depends on the
strength of an individual’s expectation that the act will be followed by a given outcome. In the
case of Illovo, the H&S policy and initiatives presents employees expectation from a caring
employer which is followed by hard work and commitment.
Therefore, these findings are supported by literature on H&S. this is the case because according
to Thomson (2007:77), another benefit of having health and safe workforce or H&S initiatives is
that they improve motivation levels of employees. In addition, Maslow’s hierarchy of needs
contain security needs as one of the basic need of every individual which is the need to feel safe
and secure. It is argued that by providing these needs for security, employees’ performance will
greatly improve. One of the factors which can increase employee satisfaction is company policy
(Cole, 2004). Therefore, the presence of a well formulated H&S policy at Nchalo Estate is a
motivating factor to the employees.
The findings also demonstrate that top management commitment to ensure employee health &
safety is an opportunity to demonstrate concern for employee well-being and work satisfaction.
All the safety officers reported that motivated employees focus their energy on improved
productivity, quality, and implementing change successfully, rather than on health & safety
concerns, workplace problems, and relations between employees and management. However,
pro-active management commitment to safe operation helps to attract and retain quality people.
Increasingly, quality job applicants look for and are motivated by the status of health & safety at

48
a company. It is part of their decision to join or stay with an organization. Illovo now has
increased the number of workers in the safety section and ensures that the employees in that
section are qualified enough and their skills are up to date through training. According to
Armstrong (2009), Human Resource Specialists or Safety Advisors have a duty to conduct safety
audits and training. This involves examining the whole organization in order to test whether it is
meeting its safety aims and objectives and to ensure that all employees have the knowledge of
the impact of the health and safety to their lives and the organization respectively.
Figure 4 below is the structure of Illovo Group’s Safety, Health and Environment section. The
diagram shows that Illovo Group of companies is committed to employee health and safety at all
management levels. Illovo’s safety, health and environment policy on the other hand
demonstrates the estate’s overall commitment to employee wellbeing.
Nchalo Estate SHE policy; ...Nchalo Sugar Estate is committed to creating and maintaining a
working environment in which the levels of risk to employees, equipment and the environment
at large are reasonable and acceptable.

49
According to Dessler (2000), top management represents the employer. The commitment of top
management manifests itself in top management’s being personally involved in safety activities
on a routine basis; giving safety matters a high priority, production scheduling, giving safety
officers high ranks and status and including safety and health training in new workers training.
Therefore, the study found out that at Illovo Safety Officers are indeed given ranks and are
represented at all management levels; at group, country, department, supervisory and even at the
lower level where Safety Representatives and First Aiders are situated. This shows management
commitment to Health and Safety at Illovo which according to the Risk manager is a catalyst for
successful implementation of a SHE policy.
Group risk
and quality
manager
General
manager
(Nchalo)
Process
manager
Warehoouse
& Logistics
Risk manager
(Nchalo)
Safety officers
Safety
supervisors
Fire team
members
First Aiders Safety Reps
Safety
coordinators
Occupation
health nurse
Area
Managers
(Agric)
Factory
manager
General
manager
(Dwangwa)

50
3.3.5 IMPROVED AWARENESS AND PREVENTION OF HEALTH AND SAFETY
HAZARDS
According to Herzberg Two Factor Theory, the need to develop psychologically is one of the
factors that remove job dissatisfaction among individual employees. The Theory suggests that
the working environment and anything associated with it can affect the psychological growth of
employees. On this one, the Occupation Health Nurse at Illovo commented that Nchalo estate
has initiatives which ensure that their employees are growing psychologically for the benefit of
the organization. This is done by ensuring that the work environment is conducive and that
employees are aware of all the dangers to their health and safety. Some of these programmes
include; SHE training, medical surveillances, HIV/AIDS awareness, Behavioral audits and
provision of Personal Protective Equipment (PPE).
Robinson (1997) argues that at a psychological level, many of the factors associated with
sickness and stress also affect employee performance. Employees are demotivated or disengaged
from their work, or who find aspects of their work stressful, or who have poor working
relationships with colleagues, or who feel their job is not worthwhile are more prone to periods
of absence and are more likely to resign their posts. This psychological state of being affects
employee engagement to the organization (Bevan, 2010:15). Therefore, this literature supports
the importance of ensuring the psychological growth of employees as elaborated by the
Occupation Health Nurse.
On HIV/AIDS, apart from having a specialized ART Clinic at the Estate which also advice and
inform employees about the pandemic, Illovo also conducts Business Understanding

51
Programmes (BUP) which aims at making the employees aware of the impact of their health to
the business performance. Therefore, the knowledge of that impact compels employees not to
allow their health impact negatively on their job. This means that employees are prepared
psychologically to manage their health for the betterment of their departments and the whole
organization. A Supervisor in the Agriculture Section commented that “when employees
underwent the BUP they come back changed…they are hardworking and committed to their job
as if they have just been promoted”. Therefore, having knowledge of how important is their
health to the organization employees at Nchalo Estate are motivated to work hard so that the
organization’s performance improves.
The H&S trainings such as induction, first aid, fire, behavior audit, defensive driving and driver
refresher courses are meant to increase awareness and prevention of health and safety risks at
Nchalo. One respondent a Safety Officer (Industrial) said that when employees Safety trainings
are conducted in a department there is always a reduction in the common accidents at the estate
and an improvement in the morale of the employees especially those who took part in the
training since the training prepares them psychologically to do their job. He added that the
amount spent of these trainings increases on a year basis due to the fact that managers and
supervisors demand them since they view them as one way of improving their departmental
output. That is the case because as they reduce accidents, operation costs are also reduced
thereby automatically increase a departments’ contribution to overall organization profits.

52
3.3.6 GENERAL IMPROVEMENT IN EMPLOYEE MOTIVATION DUE TO TOP
MANAGEMENT COMMITMENT TO EMPLOYEE HEALTH AND SAFETY
Since 2000 management at Nchalo estate has been implementing programmes and adopting
policies that support Illovo’s intentions to improve the company’s commitment to SHE
management. According to the Risk Manager for Nchalo a lot of money has been spent,
programmes implemented, rules changed, departments restructured, culture changed and new
employees hired only to create an enabling environment for Occupation H&S and top
management championed all that.
Expectancy theory argues that the strength of the tendency to act in a certain way depends on the
strength of an individuals’ expectation that the act will be followed by a given outcome. At
Nchalo, this research found that management at Illovo implements different programmes which
ensures that employee’s expectations in terms of their health and safety are met. Firstly,
management creates a conducive environment which support and protect employees from
different H&S hazards. For instance, respondents form the Agriculture section said that the
creation of the position of First Aiders ensures that the working environment is safe for the
employees since they are not required to worry of what will happen when an accident occurs
because there are people within the workgroup who are trained in handling injury and accident
cases as they happen.
In addition, symbolic safety signs, general safety codes, rules and regulations together with the
H&S procedures show that management at Nchalo are committed to creating an accident and
injury free working environment which support the interests of both the employer and the

53
employees. A Supervisor in the Agriculture section commented that; “although having H&S
rules and regulations is a requirement by OHS Act 1997, at Illovo we make sure that each and
every employee irrespective of his/her position must be familiar with them as well as the OHS
Act by issuing SHE bulletin, SHE Handbooks and delivering Safety talks before the beginning of
the working day”. All these show increased level of management commitment to H&S at Nchalo
estate which in the end induce employee motivation as they are informed and taken care off.
On the other hand, management at Illovo’s Nchalo mill employs a system of rewards and
punishment in order to ensure employees follow H&S rules and regulations. Illovo management
rewards SHE performance using different means. Firstly, it introduced SHE competitions and
reward employees and workgroups which demonstrates adherence to safety requirements. For
example, an annual SHE trophy at Nchalo is won by a department which has achieved twelve
months without disabling injuries. These are injuries that do not require an off sick. The
representative of the winner of the trophy in 2011 and 2012 the Welding Bay Forman from the
Service section commented that winning the trophy in 2011 had been a motivating factor which
made them won it again in 2012 and the trophy itself is a sign of a caring management which
supports good practice.
He continued by saying that the idea of a competition led the Transport Workshop achieve over
750 000 man hours without any of the 150 employees in their section getting an injury that
required off-sick. All these achievements improve employee relations climate, employees’
morale, interpersonal relationships, departmental performance and reduced departmental H&S
costs. Therefore, with reference to Herzberg’s proposition that motivational factors at work

54
include management recognition for achievement, it can be concluded that the system of reward
at Nchalo improves motivation of employees. This at Nchalo leads to quality of work, products
and increased productivity which eventually lead to improved business performance.
In support of the findings, Torrington and Hall (1995:509) argues that in enforcing H&S at work
every employer, through top management should prepare a written statement of the general
policy on H&S and the organization should ensure that arrangements for carrying out that policy
are in force and it is communicated to employees. This general policy statement should be a
declaration of the intention of the employer to safeguard H&S of its employees. Dessler (2000)
on the other hand is of the view that any safety modeled manager must instill in his/her workers
the desire to work safely by minimizing hazards since any work place is prone to accidents. This
is the case because without full commitment of all levels of management, attempts to reduce
unsafe acts by workers will meet with little success. Therefore, SHE policy at Illovo is one of the
initiative which improves employees’ perception of their employer and initiatives like the
introduction of the SHE trophy and Safety trainings instills in the workers the desire to work
safely as proposed by literature.
Illovo also punish non-compliance behavior. Nchalo SHE Handbook published in 2010 states
that the general safety and health rules at Nchalo are in force throughout the estate. For instance,
they require that any person on premises where machinery and equipment is used to carry out all
the orders given to him/her or which have been issued as a general standing instruction.
Employees failing to comply with the said orders are subject to discipline in terms of the
Company Disciplinary Code. Some of the respondents wrote on the questionnaire that

55
management at Illovo is discriminatory in terms of how safety compensation is paid after an
injury or accident since it favors bosses and despises laborers who are sometimes dismissed or
suspended because they have reported an accident. When seeking clarification on this issue, one
experienced Capitao in Agriculture commented that “ignorance and failure to follow the SHE
rules and regulations is what make most of workplace accident victims not to be compensated
and not because the system is discriminatory. Management ensures that we are all protected and
procedures to follow when an accident has occurred are provided together with the punishments
which results if one does not comply but most employees do not comply”. Therefore, these
sentiments by the Capitao who work directly with the employees show that Illovo use
punishments as a reward for non-compliance with safety rules and regulations.
These punishments as complemented by the Risk Manager applies to everyone in the
organization such that even managers are given warnings in form of Yellow and Red Cards for
non-compliance of their departments to SHE requirements. With the help of Vroom’s
Expectancy theory, it can be attested that the expectancy of a punishment makes the employees
at Illovo to abide by SHE rules and regulations. This therefore improves the state of H&S at
Nchalo estate which is favorable for improved employee and organization performance since
H&S costs are reduced, preventable accidents avoided and turnover as well as absenteeism due
to injury and illness are reduced. All these successes are as a result of increased top management
commitment to SHE at Nchalo estate.
As the people who are involved in formulation of policies, implementation and their evaluation,
top management at Illovo is responsible for each and everything that concerns H&S. All the

56
respondents who had advanced education voiced the fact that management at Illovo is committed
to H&S and this makes Illovo a model to so many organizations that would want to implement
H&S programmes. However, they voiced concern that Malawi Government does not recognize
the impact of their efforts to the whole country. This commitment is shown through management
activities like; offering SHE training to each and every employee at all levels, harmonized
working conditions, building of Clinics all over the estate compounds, provision of HIV/AIDS
testing and awareness programmes and emphasizing H&S at all organizational levels as well as
telling employees the impact of their Health and Safety to individual, departmental and
organization performance. One Section manager in the Agriculture section after interview he
commented that for the past five years the best advice he gave to his employees was to put
‘Safety First’.
All in all, the research found that top management commitment to SHE at Illovo is the greatest
motivational tool which have had a direct impact to the continuous improved in performance of
Illovo over the past five years. This is the case because all the H&S programmes and initiatives
depend on management commitment for their success. Management is responsible for creating
an environment where employees will feel safe and motivated to apply all their efforts to
achievement of their pre-set goals.
3.3.7 BULDING PUBLIC TRUST
Corporate image is important regardless of company size. 50% of the respondents which were
managers, officers and supervisors stressed the importance of a good public image while the
remaining 50% which included the other employees did not know the relationship between H&S

57
and public relations. The production and Packaging/warehouse managers also stressed that Illovo
as an international organization has a concern for safe operations and the health and well-being
of its employees. They said that this is a positive message that is carried into the community not
only by employees, but also by suppliers and customers. This positive company image helps the
Illovo in attracting and retaining higher caliber employees. It also helps improve the image of the
quality of the Illovo’s products. In stressing that point, a Warehouse supervisor said “many times
a year our biggest customer in Malawi, Southern Bottlers Malawi Limited do inspection tours in
our Factory, Packaging and Warehousing Sections to see if we are indeed implementing good
H&S initiatives which they suggests”. Therefore, if these customers are convinced Illovo is
assured of continued business relationship with them and this leads to improved public image
and product quality in front of customers.
For example, the Risk manager said that their international customers all over the world
especially in Europe and USA demand that they would want to buy goods from a company
which has the interests of employee’s health at heart. They also demand that they would want to
buy sugar which was made in safe ways as a result the customers themselves conducts quality
and safety inspection tours around the production facilities. Good public image also creates a
positive image when the company needs to influence local government or the surrounding
community and it creates a favorable image with provincial and other government agencies, one
of the managers commented. The managers concluded to say that investment in good H&S
initiatives brings money to the organization as customers continue to buy the product and
improves the organizations relationship with its stakeholder’s such as the community and

58
government agencies responsible for H&S inspections hence these people supports Illovo’s
initiatives.
3.3.8 COST REDUCTION
The managers and supervisors interviewed emphasized that investment in workplace H&S
reduces the costs associated with diseases, accidents and injuries to both the employee and the
employer. The Risk Manager for Nchalo estate said that workers compensation costs are
significant, and there are other substantial costs that are incurred when an injury/illness occurs at
work. The sum of these costs if added directly to operation costs impacts negatively on the
overall profits hence there is a need to keep them lower. The Safety Officer (Industrial) when
asked to comment on what the Risk Manager said he had this to say, “before we started investing
much in H&S the money spent on H&S issues in other departments was huge such that managers
were threatening employees not to report workplace accidents for fear of being regarded as non-
performers and to be seen as a cost-effective department. This however impacted negatively on
our employee relations climate and led to high levels of employee turnover”.
According to the Safety Officers at Nchalo the costs to the employer includes; equipment/tool
damage and repair costs, property repair costs, production delays including other employee time
at time of accident, increased training expenses, material loss, medical and compensation
payments, management time spent on issues related to the incident, injury or illness such as
enquiry on the causes of the accident and salary top-up and benefit costs while on compensation.
In addition, Illovo also incur the costs of loss of use of equipment while being repaired, loss of
production if stop work order is issued, legal and trial costs if charges laid, managing return to

59
work and reduced productivity while on modified work assignment, reduced
productivity/organization capability due to loss of skilled employees and cost of obtaining a
replacement employee and decrease in productivity while the new employee is on learning curve.
On the other hand, the costs of poor H&S conditions to the employees according to the
respondents from the production section were; the costs of pain and suffering due to the injury or
illness, loss of income, the possible loss of the job and health care. For instance, one respondent
said that his father who was working for Illovo until 2008 lost his job because he was involved in
an accident which made him lose his sight and since they were having financial problems at
home he decided to join the company as a general worker after finishing secondary school in
order to support his family. This indeed shows how improper H&S management is a cost to the
employers as well as the employees and their families. Therefore proper management of
employee H&S lead to the reduction of departmental expenditures among other issues hence
saving money for the organization to reinvest.
Nevmark et al (2007:221) reported that Workers’ compensation costs are a major issue for many
employers and they usually represent from 2% to 10% of payroll for most employers and the
major contributors to increases have been higher medical costs and litigation expenses. However,
this study has found that Nchalo estate ensures that these H&S costs are minimized by offering
clinical services, conducting safety trainings and provision of accident and injury prevention
measures. This shows that Illovo knows the impact of these costs to its bottom line thereby
ensuring that they are minimized to continue operating profitably.

60
3.4 STRATEGIC IMPLICATION OF THE FINDINGS
Findings of the study show that between 2009 and 2014 Illovo’s profits greatly improved and
Nchalo estate has expanded within the same period since it has opened Kaombe farm in Nsanje.
It is therefore critical to note that continued investment in occupation health and safety at Nchalo
sugar estate over the years among other things led to improved business performance. After the
analysis of Illovo the other factors which has led to the continued success of the company
includes the fact that it has no local competitors, it has established structures, it has a huge
capital base, experienced and well qualified employees as well as the fact that it operates in a
stable environment with stable political and economic environments compared to other countries
in the African continent. This means that investment in occupation H&S management together
with other enabling factors improves overall organization performance which in the end helps
the organization achieve its strategic goals. This is the case because H&S management largely
concerns employees which are the most important stakeholders in the whole process of strategic
planning and implementation.
3.5 CONCLUSION
This chapter has made a presentation of the findings of the study. The chapter has also made
thorough analysis of the findings. Analysis of the findings shows that there is indeed a direct and
explicit link between investment in occupation health and safety and overall business
performance. It has also established that a combination of various health and safety initiatives
ultimately led to the superior performance of Illovo for the past five years. The findings have
also shown that investment in health and safety have led to increased morale, good employee
relations, reduced production disruption, increased commitment, reduced operational costs,

61
improved public trust, improved accidents record, improved efficiency and effectiveness and
reduced absenteeism.
In addition, the findings have as well shown that having health and safety policy in the
organization entails an organizations commitment to the welfare of its employees. It also shows
that the organization complies with the laws of the land and increases public trust in the
organization. All these are factors improves perception of the customers towards the products of
the organization hence increased sales and public support for the concerned organization.
However, the findings have also established that lack of top management emphasis and
commitment to employee health and safety negatively affects employee performance and that of
the organization. Finally, it can be concluded that the findings shows that investment in
occupation health and safety improves organization performance.

Ensuring Employee Health and Safety at Illovo Sugar Malawi

Ensuring Employee Health and Safety at Illovo Sugar Malawi

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