Arm 55 Chapter 8 - Human Resource Risk

Front 1

Human Resource (HR) potential

Back 1

The collective capacity of that group to produce goods or services of value by using existing skills and knowledge or the skills and knowledge developed in the future. (8.3)

Front 2

Factors that affect an organization's human resourced potential

Back 2

1) health and education of the general population
2) proper personnel selection procedures
3) preservations of employees' existing productive capabilities
4) rehabilitation of injured or ill employees
5) retention of productive employees (8.3)

Front 3

Health and education of the general population

Back 3

Influences the average quality and potential productivity of an organization's current and potential employees. If a population enjoys good physical and mental health, tends to live a long time, and is well educated, an organization is more likely to be able to select employees with promising HR potential. (8.3)

Front 4

Proper personnel selection procedures

Back 4

Increase an organization's ability to hire the most qualified person from the general population. (8.3)

Front 5

Preservation of employee's existing productive capabilities

Back 5

Requires preventing or reducing disabling injuries and illnesses on or off the job, dissatisfaction with the job, and work-related violence. Workplace health and safety programs contribute to these efforts. (8.4)

Front 6

Rehabilitation of injured or ill employees

Back 6

Speeds their recovery, restoring as fully as possible their pre-injury or illness physical, intellectual, social, and interpersonal skills. (8.4)

Front 7

Retention of productive employees

Back 7

Entails keeping employees on the job as long as they remain productive and forestalling their premature retirement and resignation. (8.4)

Front 8

Types of personnel losses:

Back 8

1) work related injury and illness
2) retirement and resignation
3) work related violence

Front 9

Work related injury and illness

Back 9

Workplace disabilities are categorized as those resulting from work-related injuries and illnesses. Injuries are usually caused by an external physical force exerting stress on the human body, resulting in some externally manifested injury (laceration, fracture, etc). An illness usually develops more slowly as the result of some organic or inorganic agent being absorbed, ingested, inhaled, etc. (8.5)

Front 10

Injury causes of loss

Back 10

1) machinery and equipment use
2) materials handling
3) vehicle fleet operations
4) physical conditions of premises
(8.6)

Front 11

Illness causes of loss

Back 11

1) long term chemical exposures
2) noise levels
3) ergonomic stress
4) radiation
5) temperature extremes
6) poor air quality
(8.7)

Front 12

Retirement and resignation

Back 12

When an employee retires or resigns, the HR potential of an organization is temporarily reduced. The extent of this productivity loss depends on how quickly the employee can be replaced.
When an employee retires or resigns, the loss to the organization is the future value that the individual would have provided the organization
(8.7)

Front 13

Work related violence

Back 13

There are two prevalent types of work related violence
1) work place violence: includes any type of violence or threat of violence that occurs in the work environment, including physical and verbal assaults, threats, coercion, and intimidation.
2) kidnap and ransom: is a loss exposure that organizations are likely to face if they operate in a high-risk overseas location that is not subject to the kinds of security measures used in the US. (8.8-9)

Front 14

Assessing personnel loss exposures

Back 14

1) risk assessment questionnaires
2) loss histories
3) other records and documents
4) flowcharts and organizational charts
5) personal inspections
6) expertise within and beyond the organization
(8.10)

Front 15

1) risk assessment questionnaires

Back 15

Used for identifying personnel loss exposures because they usually include extensive lists of standardized questions that are designed to aid RM professionals in developing a better understanding of the organization's loss exposures. Standardization is a strength because the questions are universally relevant.
(8.10)

Front 16

2) loss histories

Back 16

A source of internal information about the causes of personnel loss. This information can be used to evaluate an organization's mortality or disability rates as well as retirement trends and voluntary and involuntary employee separation histories. (8.11)

Front 17

3) Other records and documents

Back 17

Many of the personnel losses an organization may experience may be projected by using reliable and widely available public data. (8.11)

Front 18

4) flowcharts and organizational charts

Back 18

Present RM professionals with two methods that help identify key persons and key points in an organization's processes. The flowchart method identifies employees at critical junctions in an organization's processes. Each function or operating division should be charted, analyzed, and examined to determine how heavily it relies on key persons at various operational steps.
The organizational chart method of identifying personnel loss exposures involves studying job descriptions to identify the most important positions.
(8.12)

Front 19

Personal inspections

Back 19

A valuable method to help determine the extent of workplace hazards. RM professionals can use personal inspections to identify workplace hazards that may lead to the death, disability, or voluntary separation of employees who were not identified by the other methods of assessing personnel loss exposures. (8.12)

Front 20

Expertise within and beyond the organization

Back 20

May include HR, system safety engineers, or senior managers. Interviews with these employees can help the RM professional gather information about workplace hazards as well as information about employee productivity and morale. (8.13)

Front 21

Risk treatment for work-related injury and illness

Back 21

A RM professional familiar with an organization's structure and procedures may select from a variety of risk control techniques to mitigate losses arising from work-related injury and illness.
1) avoidance
2) loss prevention
3) loss reduction
4) separation and duplication
(8.13)

Front 22

1) avoidance

Back 22

Reduces the probability of an activity's future loss to zero. For example, a tool manufacturer learns that the application of a rustproof coating on its tools will emit toxic vapours. The manufacturer could simply avoid using the product, thus protecting employees fro potential related harm. (8.13)

Front 23

2) loss prevention

Back 23

May be used when avoidance is impossible or undesirable. Safety engineering and workplace design can help prevent work-related injury and illness. (8.14)

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a) Safety engineering

Back 24

Two basic causes of loss are associated with workplace injuries and illnesses: physical and procedural. Physical controls are sometimes called engineering controls, while procedural controls are sometimes called administrative controls. (8.14)

Front 25

Physical controls

Back 25

Include these:
- materials substitution
-isolation
-wet methods
-guarding
-ventilation
-maintenance
(8.14)

Front 26

Procedural controls

Back 26

include these:
-process change
-education and training
-standard operating procedures (SOPs)
-proper supervision
-medical controls
-job rotation
(8.14)

Front 27

b) Workplace design

Back 27

Coordinates a work environment's physical features, devices, and working conditions with the capabilities of the people in that environment. It is applied through methods that fall into these categories:
-ergonomics
-human factors engineering
-biomechanics

Front 28

Ergonomics

Back 28

The science of designing work space and equipment based on the needs of the people who use the work space and equipment. Workplace design can reduce work injuries and maintain product quality and operating efficiency when it is applied in the context of six major areas of ergonomic concern:
-manual materials handling
-cumulative traumadisorders
-physical layout of workstations
-displays and controls
-fatigue
-accommodating disabled employees
(8.15-16)

Front 29

Human factors engineering

Back 29

Combines the expertise of psychologists, engineers, and sociologists in the study of human behaviour as it affects productivity. Human factors engineers attempt to design machine controls and gauges to reduce operator error and fatigue. (8.16)

Front 30

Biomechanics

Back 30

A process that views people at work as special kinds of machines functioning within environments filled with other machines. (8.16)

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3) Loss reduction

Back 31

Focus on rehabilitation, which is the process of restoring an injured and disabled person to his or her highest attainable level of functioning and independence in self-care, vocational, and recreational activities. (8.17-19)

Front 32

4) Separation and duplication

Back 32

Separation of loss exposures involves arranging an organization's activities and resources so that no singe event can cause simultaneous losses to all of them.
Duplication involves creating backup facilities or assets to be used only if the primary activity or asset suffers a loss. (8.19)

Front 33

Risk treatment for work-related violence

Back 33

The ramifications of work-related violence can potentially devastate an organization. RM professionals must consider the procedures for controlling losses caused by work-related violence. There are two prevalent types of work related violence:
1) workplace violence
2) kidnap and ransom
(8.20)

Front 34

1) Workplace violence

Back 34

Controlling workplace violence is essential, both because it may lead to illness or injury, reduced productivity, or resignation and also because it may expose an employer to liability loss. Workplace violence can occur between coworkers or between an employee and customer. Risk control measures can be used for workplace violence from co-workers in five key ares: hiring process, supervisor training, written policies, procedural safeguards, termination process. (8.20-22)

Front 35

2) Kidnap and ransom

Back 35

Large profile organizations are most likely to have loss exposures related to kidnap and ransom. Although loss frequency is low, loss severity can be high. (8.22.23)