Comparing Organizational Functioning to Injury Rates and Cost per Unit Produced: A Case Study

Transcription

1 Comparing Organizational Functioning to Injury Rates and Cost per Unit Produced: A Case Study R. Scott Stricoff, CIH, CSP Behavioral Science Technology, Inc BST, Inc. All rights reserved. May not be reproduced without written permission

2 Objectives Introduce nine factors that predict organizational functioning Compare these nine factors to injury rate performance Compare these nine factors to cost per unit produced Completing the model - How do you improve organizational functioning?

3 Organizational Functioning Organizational Factors Procedural justice Leader-member exchange Management credibility Perceived organizational support Team Factors Work group relations Teamwork Performance-specific Factors Organizational value for for EHS performance improvement Upward communication Approaching others Organizational commitment Openness to change Job satisfaction ORGANIZATIONAL QUALITIES Mutual trust and respect between supervisor and worker Organizational citizenship behavior Excellent communication and cooperation OUTCOMES Lower injury rates Higher levels of safe behavior Reduced WC costs Less turnover Less Absenteeism Increased commitment to the organization

4 High Organizational Functioning Attributes Organizational commitment Openness to change Ethical decision making Job satisfaction Mutual trust and respect between supervisor and worker Organizational citizenship behavior Excellent communication and cooperation Typically high-performance

5 Dysfunctional Cultures Unspoken and frequent undiscussable arrangements / agreements determine the way things get done Values do not guide decision making Ethics expectations become blurred Behind-the the-scenes conflicts stand in the way of getting work done effectively and efficiently People wonder why leaders can t t see what we see and feel that things are harder than they should be

6 Organizational Factors Procedural Justice Fair decision-making by supervisor Perceived Organizational Support Organization is concerned about needs and interests of employee Leader-Member Exchange Positive reciprocation between supervisor and employee Management Credibility Managers are trustworthy, honest, forthright

7 Team Factors Work Group Relations. Trust, respect and cooperation among co-workers Team Work Planning, communication, and performance within the work group

8 Safety Specific Factors Org. Value for Safety Attention and resources devoted to safety by the organization Approaching Others About Safety Individuals willingness to speak up to co-workers about safety Upward Communication About Safety Encouragement by supervisor to bring up safety issues

9 Data Collection Survey targeting 100% of the employee population 2 instruments Manager Non-manager Scoring 1-51 Statistical analysis comparing results to norms data base

10 Norms Database 125,000+ Surveys 508 Companies ~ 25% Chemicals ~ 12.5% Food Processing & Manufacturing ~ 10% each (Metals, Mining, Paper, Petroleum, Utilities, & Consumer Products) ~ 2.5% Other

11 Case Study 1 Organizational Factors versus Safety Results 2007 BST, Inc. All rights reserved. May not be reproduced without written permission

12 About the Organization 16 locations Mix of continuous and batch operations Report to same Vice President Implemented the same EHS systems Mix of union/non-union (was not a factor in the survey scores)

13 TCIR 2.0 Combined Overall Percentile by Scale Percentile Score Overall Lower Quartile (25th Percentile) Median (50th Percentile) Upper Quartile (75th Percentile) PJ LMX MC POS Org Factor TW WGR Team Factor OVS UC AO Safety Factor Organizational Factor Team Factor Safety-Specific Factor PJ Procedural Justice TW Teamwork LMX Leader-Member Exchange WGR Work Group Relations MC Management Credibility POS Perceived Organizational Support OVS Organization s Value for Safety UC Upward Communication about Safety AO Approaching Others about Safety BST, Inc. All rights reserved. May not be reproduced without written permission \

14 TICR.8 Site 1 Overall Percentile by Scale Percentile Score Overall Lower Quartile (25th Percentile) Median (50th Percentile) Upper Quartile (75th Percentile) PJ LMX MC POS Org Factor TW WGR Team Factor OVS UC AO Safety Factor SE Organizational Factor PJ Procedural Justice LMX Leader-Member Exchange MC Management Credibility POS Perceived Organizational Support Team Factor TW Teamwork WGR Work Group Relations Safety-Specific Factor OVS Organization s Value for Safety UC Upward Communication about Safety AO Approaching Others about Safety Other Scales SE Social Efficacy BST, Inc. All rights reserved. May not be reproduced without written permission \

15 TICR Site 2 Overall Percentile by Scale Overall 68 Lower Quartile (25th Percentile) Percentile Score Median (50th Percentile) Upper Quartile (75th Percentile) PJ LMX MC POS Org Factor TW WGR Team Factor OVS UC AO Safety Factor SE Organizational Factor PJ Procedural Justice LMX Leader-Member Exchange MC Management Credibility POS Perceived Organizational Support Team Factor TW Teamwork WGR Work Group Relations Safety-Specific Factor OVS Organization s Value for Safety UC Upward Communication about Safety AO Approaching Others about Safety Other Scales SE Social Efficacy BST, Inc. All rights reserved. May not be reproduced without written permission \

16 TICR 4.2 Overall Lower Quartile (25th Percentile) Site 3 Overall Percentile by Scale Median (50th Percentile) Upper Quartile (75th Percentile) 74 Percentile Score PJ LMX MC POS Org Factor TW WGR Team Factor OVS UC AO Safety Factor SE Organizational Factor PJ Procedural Justice LMX Leader-Member Exchange MC Management Credibility POS Perceived Organizational Support Team Factor TW Teamwork WGR Work Group Relations Safety-Specific Factor OVS Organization s Value for Safety UC Upward Communication about Safety AO Approaching Others about Safety Other Scales SE Social Efficacy BST, Inc. All rights reserved. May not be reproduced without written permission \

17 TICR 7.8 Site 4 Overall Percentile by Scale Overall Lower Quartile (25th Percentile) Median (50th Percentile) 59 Upper Quartile (75th Percentile) Percentile Score PJ LMX MC POS Org Factor TW WGR Team Factor OVS UC AO Safety Factor SE Organizational Factor PJ Procedural Justice LMX Leader-Member Exchange MC Management Credibility POS Perceived Organizational Support Team Factor TW Teamwork WGR Work Group Relations Safety-Specific Factor OVS Organization s Value for Safety UC Upward Communication about Safety AO Approaching Others about Safety Other Scales SE Social Efficacy BST, Inc. All rights reserved. May not be reproduced without written permission \

18 Case Study 2 Organizational Factors versus Safety Results for 94 Sites 2007 BST, Inc. All rights reserved. May not be reproduced without written permission

19 Organizational Cultural Diagnostic Scores Predict Injury Rates 8.5 Average Occupational Injury Rate Bottom Third Middle Third Top Third OCDI Aggregate Scores 94 sites - The difference between the two groups is statistically significant: X2 (2, N = 94) = 8.872, p<.05.

20 Organizational Cultural Diagnostic Scores Predict Injury Performance for Sites with Rates less than Average Occupational Injury Rate Bottom Third Middle Third Top Third OCDI Aggregate Scores 42 sites - difference between the three groups is statistically significant: X2 (2, N = 42) = 9.233, p<.05.

21 Why the Diagnostic is not always predictive of injury rates Exposure varies due to: Culture Type of Work Work Pace Robustness of Safety Enabling Systems What programs How the programs are implemented

22 Case Study 3 Organizational Functioning Versus Productivity and Cost 2007 BST, Inc. All rights reserved. May not be reproduced without written permission

23 About the Organization 13 Extrusion plants. Raw material and energy cost consistent Data available to analyze included: manufacturing costs, production quantities, quality costs, payroll, workers compensation costs, incident rates, and employee counts and hours worked

24 Average OCDI scores versus Unit Produced per Employee 1,522 Units Manufactured Per Employee 2005 YTD 1,215 t(7) =.41, p>.05 <35 >70 Average OCDI Percentile Score

25 LMX versus Unit Produced per Employee 2500 Units Manufactured Per Employee 2005 YTD t(11) =.49, p<.05 June 2005 Leader-Member Exchange Percentile Score

26 Teamwork versus Unit Produced per employee 2500 Units Manufactured Per Employee 2005 YTD t(11) =.58, p<.05 June 2005 Teamwork Percentile Score

27 Workgroup Relations versus Unit Produced per Employee 2500 Units Manufactured Per Employee 2005 YTD t(11) =.50, p<.05 June 2005 Work Group Relations Percentile Score

28 Average OCDI Scores versus Costs per 1000 units $ Total cost per msbe 2005 YTD $94.50 t(7) = -.39, p>.05 <35 >70 Average OCDI Percentile Score

29 LMX Exchange versus Cost per 1000 Units Produced Total cost per msbe 2005 YTD t(11) = -.575, p<.05 June 2005 Leader-Member Exchange Percentile Score

30 How do you improve Organizational Functioning?

31 Blueprint for Safety Transformation Leadership Safety Enabling Elements Hazard recognition & mitigation Skills, knowledge & training Policies & standards Exposure reduction mechanisms Worker Organizational Culture Facilities and Equipment Working Interface Procedures Organizational Sustaining Systems Selection & development Structure Performance management Rewards and Recognition Blueprint for Safety Transformation is a trademark of Behavioral Science Technology, inc.

32 Path to a Zero-Injury Culture Organizational Factors SAFETY LEADERSHIP BEST PRACTICES Vision Credibility 1. Procedural justice 2. Leader-member exchange 3. Management credibility 4. Perceived organizational support Collaboration Feedback & Recognition Accountability Communication Action Oriented Team Factors 5. Work group relations 6. Teamwork Safety Factors 7. Organizational value for EHS performance improvement 8. Upward communication 9. Approaching others

33 Factor Results Before and After Working on Leadership at All Levels PJ LMX MC POS OF TW WGR TF OVS UC AO SF

34 Before and After Results Control Chart of Recordable Rate Leadership Intervention Begins Recordable Rate Q99 2Q99 3Q99 4Q99 1Q00 2Q00 3Q00 4Q00 1Q01 2Q01 3Q01 4Q01 1Q02 2Q02 3Q02 4Q02 1Q03 2Q03 3Q03 4Q03 Quarter

35 Comparing Organizational Functioning to Injury Rates and Cost per Unit Produced: A Case Study 2007 BST, Inc. All rights reserved. May not be reproduced without written permission