HRM 311 – WEEK 5 Risk Management Involves responsibilities to consider physical, human, and financial factors to protect: Organizational interests Individual interests Risk management involves responsibilities to consider factors to protect both organizational and individual interests. Even though risk management often is a distinct business function, there are specific and separate risks associated with the supervision of employees. In the United States and other developed nations, HR departments are included in the prevention, minimization, and elimination of workplace risks. There are a variety of risk management issues linked to HR, including the prevention of accidents and health problems at work, the protection of employees from workplace violence, and HR data security. Other issues can involve preparing for natural disasters, terrorist attacks, and global disease outbreaks. 2 Snapshot of Health, Safety, and Security Specific rates vary depending on the industry, type of job, and other factors. For instance, illnesses and injuries in the private industry were down, but the agriculture, forestry, and fishing and hunting industry and the accommodation and food services industry experienced an increase in cases. Unfortunately, there is reason to believe that many organizations misrepresent how often injuries and illnesses occur in the workplace. Nearly half of employees investigated by OSHA for documentation problems failed to report accurate information about worker illnesses and injuries. There are many other factors that likely lead to the underreporting of illnesses and injuries, including the following: Lack of procedural knowledge on the part of employees and managers Safety policies that provide a reason not to report cases Belief that the company won’t get inspected Concerns about workers’ compensation claims Loss of needed contracts 3 Workers’ Compensation Workers’ compensation Require payments be made to an employee for: Time away from work because of an injury Payments to cover medical bills Retraining if a new job is required as a result of the incident Under workers’ compensation laws, employers contribute to an insurance fund to compensate employees for injuries received while on the job. Premiums paid reflect the accident rates of the employers, with employers that have higher incident rates being assessed higher premiums. Depending on the amount of lost time and the wage level in question, these laws often require payments be made to an employee for the time away from work because of an injury, payments to cover medical bills, and for retraining if a new job is required as a result of the incident Workers’ compensation coverage has been expanded in many states to include emotional impairment that may have resulted from physical injury, as well as job-related strain, stress, anxiety, and pressure. Some cases of suicide have also been ruled to be job related in some s ...

1. HRM 311 – WEEK 5
Risk Management
Involves responsibilities to consider physical, human, and
financial factors to protect:
Organizational interests
Individual interests

2. Risk management involves responsibilities to consider factors to
protect both organizational and individual interests.
Even though risk management often is a distinct business
function, there are specific and separate risks associated with
the supervision of employees. In the United States and other
developed nations, HR departments are included in the
prevention, minimization, and elimination of workplace risks.
There are a variety of risk management issues linked to HR,
including the prevention of accidents and health problems at
work, the protection of employees from workplace violence, and
HR data security. Other issues can involve preparing for natural
disasters, terrorist attacks, and global disease outbreaks.
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Snapshot of Health, Safety, and Security
Specific rates vary depending on the industry, type of job, and
other factors. For instance, illnesses and injuries in the private
industry were down, but the agriculture, forestry, and fishing

3. and hunting industry and the accommodation and food services
industry experienced an increase in cases. Unfortunately, there
is reason to believe that many organizations misrepresent how
often injuries and illnesses occur in the workplace. Nearly half
of employees investigated by OSHA for documentation
problems failed to report accurate information about worker
illnesses and injuries.
There are many other factors that likely lead to the
underreporting of illnesses and injuries, including the
following:
Lack of procedural knowledge on the part of employees and
managers
Safety policies that provide a reason not to report cases
Belief that the company won’t get inspected
Concerns about workers’ compensation claims
Loss of needed contracts
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Workers’ Compensation
Workers’ compensation
Require payments be made to an employee for:
Time away from work because of an injury
Payments to cover medical bills
Retraining if a new job is required as a result of the incident
Under workers’ compensation laws, employers contribute to an

4. insurance fund to compensate employees for injuries received
while on the job. Premiums paid reflect the accident rates of the
employers, with employers that have higher incident rates being
assessed higher premiums. Depending on the amount of lost
time and the wage level in question, these laws often require
payments be made to an employee for the time away from work
because of an injury, payments to cover medical bills, and for
retraining if a new job is required as a result of the incident
Workers’ compensation coverage has been expanded in many
states to include emotional impairment that may have resulted
from physical injury, as well as job-related strain, stress,
anxiety, and pressure. Some cases of suicide have also been
ruled to be job related in some states, with payments due under
workers’ compensation.
Another aspect of workers’ compensation coverage relates to
the use of telecommuting by employees. In most situations,
while working at home for employers, individuals are covered
under workers’ compensation laws. Therefore, if an employee is
injured while doing employer-related work at home, the
employer likely is liable for the injury.
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Child Labor Laws
Set the minimum age for most employment at 16 years
Individuals who are 14 or 15 years old may work no more than
three hours a day
Total of 18 hours in a week

5. Safety concerns have resulted in restrictions affecting younger
workers, especially those under the age of 18. Child labor laws,
found in section XII of the Fair Labor Standards Act (FLSA),
set the minimum age for most employment at 16 years.
Individuals who are 14 or 15 years old may work no more than
three hours a day and a total of 18 hours in a week when school
is in session, and they can only work from 7 o’clock in the
morning through 7 o’clock in the evening. When not in school
or during the summer months, individuals can work eight hours
per day and 40 hours per week, and from June 1 until Labor Day
they can work until 9 o’clock at night. Individuals of any age
can work for a family-based business that is owned and operated
by their parents, but individuals who are younger than 16 cannot
be employed in manufacturing or mining jobs.
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Occupational Safety and Health Act (www.osha.gov)
http://www.youtube.com/watch?v=H6wRRWi6i0c
Passed to assure safe and healthful working conditions
Occupational Safety and Health Administration (OSHA)
administers provisions of the Act
Established the National Institute for Occupational Safety and
Health (NIOSH)
Supporting body to do research and develop standards

6. The Occupational Safety and Health Act of 1970 was passed to
ensure that the health and safety of individuals employed in
organizations would be protected. Every employer that is
engaged in commerce and has one or more employees is covered
by the act. Farmers having fewer than 10 employees are exempt.
The Occupational Safety and Health Act of 1970 established the
Occupational Safety and Health Administration, known as
OSHA, to administer its provisions. The act also established the
National Institute for Occupational Safety and Health (NIOSH)
as a supporting body to do research and develop standards.
By making employers and employees more aware of safety and
health considerations, OSHA has significantly affected
organizations. OSHA regulations appear to have contributed to
reductions in the number of accidents and injuries in some
cases.
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OSHA Inspections
Compliance offers - Conduct on-the-spot inspections
Dealing with an inspection
Check credentials
Opening conference
Review of safety records
On-the-spot inspection

7. The Occupational Safety and Health Act provides for on-the-
spot inspections by OSHA representatives, called compliance
officers or inspectors. In Marshall v. Barlow’s, Inc., the U.S.
Supreme Court held that safety inspectors must produce a
search warrant if an employer refuses to allow an inspector into
the plant voluntarily. The Court also ruled that an inspector
does not have to show probable cause to obtain a search
warrant. A warrant can be obtained easily if a search is part of a
general enforcement plan.
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Workplace Violence
Workplace violence warning signs
There are warning signs and characteristics of potentially
violent persons at work that should be recognized by employees
Workplace incivility and bullying
Rude behavior by ill-mannered coworkers or bosses makes the
targets of incivility feel annoyed, frustrated, or offended
Workplace Violence Warning Signs
There is reason to believe that some people might downplay the
risks associated with violent colleagues. However, there are
warning signs and characteristics of potentially violent persons
at work that should be recognized by employees. Figure 14-11
depicts the profile of individuals who have committed the most

8. violent acts. Someone with some of these signs and
characteristics may cope for years until a trauma pushes that
person over the edge.
Workplace Incivility and Bullying
Workplace incivility occurs when rude behavior by ill-mannered
coworkers or bosses makes the targets of incivility feel
annoyed, frustrated, or offended. Incivility can escalate into
bullying. Bullying is behavior that the victim perceives as
oppressive, humiliating, threatening, or infringing on the
victim’s human rights and must occur over an extended period
of time. Bullying, especially by supervisors, can result in
damage to the employee and to the organization, leading to
increased turnover.
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Workplace Violence
Domestic causes of workplace violence
Often violence that begins at home with family or friends can
spill over into the workplace
Can disrupt the workplace and create a negative work
environment for all parties involved
Dealing with workplace violence
Develop policies and practices for trying to prevent and respond
to it
Violence response team

9. Domestic Causes of Workplace Violence
Too often violence that begins at home with family or friends
can spill over into the workplace. Many abused women report
being harassed frequently at work, by telephone or in person, by
abusing partners. Such behavior can disrupt the workplace and
create a negative work environment for all parties involved.
Domestic violence can harm work attitudes, and even worse, put
the well-being of employees in jeopardy. Organizations need to
be proactive about teaching employees about the dangers of
such misconduct and get victims proper counseling and
assistance. Domestic violence is particularly troubling because
HR professionals sometimes find it difficult to take action
because of concerns over personal privacy. A reaction by
employers is to sometimes ignore obvious signs of domestic
violence.
Dealing with Workplace Violence
The increase in workplace violence has led many employers to
develop policies and practices for trying to prevent and respond
to it. Policies can identify how workplace violence is to be dealt
with in conjunction with disciplinary actions and referrals to
EAPs.
One application of these policies is a violence response team.
Composed of security personnel, key managers, HR staff
members, and selected employees, this team functions much like
a safety committee, but with a different focus. Employers must
be careful because they may face legal action for discrimination
if they discharge employees for behaviors that often precede
violent acts.
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10. Disaster Planning Components
For disaster planning to occur properly, three components must
be addressed by HR (Figure 14-12).
Organizational Assessment
Organizational assessment includes establishing a disaster
planning team, often composed of representatives from HR,
security, information technology, operations, and other areas.
The purpose of this team is to conduct an organizational
assessment of how various disasters might affect the
organization and its employees.
Human Impact Planning
Certain areas are part of human impact planning (the impact of
events on people). Issues such as having backup databases along
with employee contact information, are key considerations of
such planning. Who will take responsibilities for various duties
and how these efforts will be coordinated must also be
identified. Many organizations have done an effective job with
such planning.
Disaster Training
All of the planning efforts may be wasted if managers and

11. employees are not trained on what to do when disasters occur.
This training covers a wide range of topics, including the
following:
First aid/CPR
Hazardous materials containment
Disaster escape means
Employer contact methods
Organizational restoration efforts
But this training is not sufficient without conducting exercises
or simulations for managers and employees to use the training.
Training must be a continuing consideration, and must reflect
updated disaster planning efforts.
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