Describe the Report for Risk Crisis And Disaster Management of Organizational Risk.
Organizational risk management is the process of identifying and assessing the existing and potential risk of organization (Soin and Collier 2013). The study will identify the breaches in WHS legislation with specific reference to the legislation that applies in the case study. The study will also analyze the workplace hazards and the associated risk of those hazards of hotel mentioned in the case study. Apart from that, specific management control and hierarchy of those controls will also be described in this study. Furthermore, the study will also reflect a cost benefit analysis associated with non-compliance, hazards and recommended controls. On the other hand, the consequence of not improving compliance and managing the workplace hazards will also be analyzed in this study.
Breaches in WHS Legislation
Breaching codes for health and safety risk of plant
Plant is the major reason of workplace injury and death in Australia. WHS legislation in regards to New South Wales Legislation (NSW) suggests that workplace should have competent person for handing and regular checking of all the plants existing in an organization (safework.nsw.gov.au 2016). In case of the hotel mentioned in the case study, it has been found that lift is old and constantly out of order. There is no competent staff to check the efficiency level of the plants. It has also caused break down of lift for five times. Therefore, it can be said that the organization is breaching the NSW legislation in terms of safe plant management.
Code of Practice on First Aid in Workplace
Under section 274 of WHS, organizations have to keep first aid as the immediate treatment of staffs suffering from organizational injuries (workcover.nsw.gov.au 2016). There should also be a competent fast aider, who has completed a nationally accredited training course for administering first aid. In this case study, the staff of the organization usually does not get first aid treatment in their workplace. First aid kits are not stocked properly. Management does not give effort to roster competent and qualified first aiders in each shift. Therefore, it can be said that the organization has breaches the NSW legislation.
Code of practice associated with hazardous chemicals
As per NSW, organizations must have competent person to identify the chemicals associated with the work within workplace (safework.sa.gov.au 2016). In this organization, it has been found that the bottles, which are used by staffs, are not leveled and suppliers do not provide adequate information about the safe of chemicals. Moreover, the chemical usage also causing breathing difficulties and burn to eyes of staffs. In this way, it is breaching the NSW legislation of workplace safety.
Code of practice associated with employee training
Occupational Health and Safety Act 2004 of New South Wales suggests appropriate training for the employees to manage their work in safe way without causing risk (Comcare.gov.au 2016). In this hotel, the health and safety representatives are trained properly for checking the safety issues of the workplace. In this way, the organization is breaching the NSW legislation within workplace.
Hazards within Workplace
The hotel was associated with huge safety issues in terms of lack of safety measurement. It has been found that the guests of the hotel are allowed to call any number of visitors in their room without having permission of reception. The visitors do not usually go through the reception prior to entering into the rooms. It creates measures safety issues for other guests within the hotels (Thalmann et al. 2014).
Disaster in workplace can be occurred, when plants are not properly managed and controlled. It can lead to severe accident. It has been found that the health and safety representatives of the hotel are not trained properly. Therefore, they are not efficient enough to check the safety issues of plants. It has been noted that the lift of the hotel is old and constantly out of order. Therefore, it has created huge hazards for the hotel staffs by creating the chance of lift break down (Arnaboldi and Lapsley 2014).
The housekeeping staffs of the hotel are noted to use new cleaning substance for glass shower screen. However, the hotel has no competent employees to level of the chemicals in the workplace machineries. Therefore, it is causing organizational injuries for the staffs by excessive use of chemicals (Chikoto, Sadiq and Fordyce 2013).
The hotel mentioned in the case study has huge lack of first aid treatment facility for the staffs. The staffs are to go to the local doctors for treating their organizational injuries. Therefore, it is creating organizational hazards by creating sickness for the employees (Hora and Klassen 2013).
Risk Associated with Hazards
Risk Associated with Safety Hazards
The hotel has not security measures in allowing unlimited visitors to the rooms of the guests. The visitors need not to go through reception. On the other hand, the hotel itself is established in a dimly lit area. Therefore, the risk of assault and robbery are always associated with this hazard for the hotel staffs and guests (Weber et al. 2012).
Risk Associated with Plant Hazard
The hotel has lack of trained and competent staff for checking the functional efficiency of the lift. It has been examined that the lift is old and consistently out of order. Therefore, there is huge chance of staff and guest accident due to break down of lift (Bromiley et al. 2015). Moreover, over last month the lift has been broken down at least 5 times.
Risk Associated with Chemical Hazard
The Health Safety Representatives of the hotel have not completed HSR training. The Health Safety Committee of the hotel has been formed with full time employees of administrative department. Therefore, there is no such employee in organization, who can check the chemical within the organizational accessories. Therefore, there is huge risk associated with this hazard in terms of creating breathing problems and burns to eyes of staffs and guests (Kreiser et al. 2013).
Risk Associated with Workplace Hazards
The hotel has no adequate facility of first aid treatment for the staffs suffering from organizational injuries. Moreover, the first aid treatment kits are not stocked properly and management does not take proper initiatives to roaster qualified first aiders to each shift. Therefore, organization staffs have huge risk to face severe impact organizational injuries (Birkmann et al. 2013).
The priority for risk treatment has been referred in Appendix 1.
- Treatment for Workplace hazards
- Treatment for Chemical hazards
- Treatment for Plant hazards
- Treatment for Safety Hazards
Management Level Control
The management of the hotel should focus on the infrastructural improvement within their workplace. They should improve the operational condition their lift and construct new lift with operational consistency. It would minimize the chance of lift breakdown and the chance of accident within the workplace (Osipova and Eriksson 2013). In this way, the management can comply with the safety measures of WHS legislation.
Appointing Trained First Aider
The hotel is breaching the WHS legislation associated with first aid facility in the workplace. They have no sufficient first aider in each shift for the employees. Therefore, the management should appoint trained and competent first aiders in each shift for the staffs. They should also maintain adequate first aid kits for the staffs to treat organizational injuries of the staffs (Alhawari et al. 2012). In this way, they will be able to comply with the WHS legislation.
It has been found that the Health Safety Representatives of the hotel have not completed HSR training for maintaining workplace safety. In order to comply with Occupational Health and Safety Act 2004 of NSW legislation, the management has to provide adequate health and safety training to the employees (Su, Baird and Schoch 2015). It will assist in maintaining the workplace safety of the hotel.
Security and Safety Policy
The management has to implement proper security policy for entering to the hotel. There should be proper checking system in reception centre of the hotel so that unknown person cannot enter within the room of the guest without proper checking. Apart from that, strict policy should also be implemented for the suppliers so that they give proper information on the bottles regarding the chemical usages.
Hierarchy of Controls
While considering hierarchy, it can be said that security and safety policy of the organization has to be improved at the earliest. This is because the organization is facing tremendous issues from assaults and robberies. The guests are the most affected by such activities who are the only revenue earning stakeholders. If guests are dissatisfied, then they cannot be retained.
Next, employee training has to be considered as it has been found that most of the employees are casual and they are not carrying out their daily duties. Moreover, receptionist has to be trained regarding which visitors are visiting the guests. Proper identification of visitors is to be recorded. Injuries and illness of the staffs can also be taken care of they are trained about what items they are supposed to use at what circumstances.
Considering infrastructural development, it can be placed at the third position of hierarchy. This is because once the consumers are satisfied through training of staffs and safety policies, they can be retained. Amount earned from revenue will be used for infrastructure development. Finally, trained first aid professionals are to be incorporated so that effected stakeholders due to chemical hazards can be treated at the earliest.
Cost Benefit Analysis
Considering safety hazards, it can be said that introduction of safety and security policy will be most significant factor. This will fall under non-recurring cost. For this, the capital will be used for the following:
- Documentation of policies
- Communicating with employees
Documentation will be the least expense and therefore organization will be highly benefited. Expense for communication will be done verbally and through presentation slides through training session.
Considering plant hazard, employee training will be the best alternative as being a service oriented organization employees are the one who directly communicate with guests. This will fall under non-recurring cost. Therefore the associated costs here are:
Training sessions for each employee
- Training equipments
- Material handling items
- Laptops for presentation slides
- Schedule handling manual
From the above, it can be said that much of the expense will be done only though material handling and training equipments. Therefore, it can be said that this is the most beneficial training delivery procedure with least cost.
Considering chemical hazard, it can be said that first aid professionals are to be included who will serve 24x7. Shifting duty will be allowed for the professionals. This can be termed as a recurring cost as professionals will work in contract basis and the associated costs here are:
- Incorporation of first aid professionals
- Incorporation of first aid equipments and box
- Replenishment cost
From the cost breakdown, it can be said that if employees within the organization are trained for providing first aid, then continuous training session will have to be provided and irregular service pattern will consume huge resources. For this if professionals are hired then cost consumption can be reduced, which will be organization benefit.
Consequence of not improving compliance
Lack of strict security measure can lead to increasing rate of assault and robbery within the hotel. Therefore, if the hotel does improve compliance and manage workplace hazards, then it will definitely lead to customer dissatisfaction. The customers will no longer be interested to revisit this hotel, if such incident occurs repetitively (Osipova and Eriksson 2013).
Employees are the main asset of any organization towards its success. Therefore, securing the employees health within the workplace should be major concern of any organization. However, in this hotel employee health security is highly avoided. The hotel has no adequate first aider and kits for the treatment of organizational injuries, which can lead to severe impact of injuries. Therefore, such situation can lead to major employee conflict, if it is not tackled properly at right time (Hora and Klassen 2013).
Chance of Legal Issue
Repetitive assaults and robbery occurring in the hotel can lead to major legal issues, if it is not handled properly. These kinds of incident can result in severe disaster for the guests as well as staffs. Therefore, the hotel can suffer from major legal issues even from legal notice of court.
Bad Reputation of hotel
Repetitive accidents and robberies can create bad reputation for the hotels. These incidents will reflect a negative image of hotel on the mind of customers and community (Arnaboldi and Lapsley 2014). Therefore, bad reputation of the hotel can also lead to ineffective business for the hotel.
While concluding the study, it can be said that the hotel has breached the health and safety regulation of WHS legislation due to improper lift management and lack of proper first aid treatment in the workplace. The hotel has huge lack of safety measurement, which has created safety hazards, chemical hazards and other workplace hazards. Extreme safety hazards are associated with high chance of assaults and robbery within the hotel. Management should take strict safety measures in terms of appointing first aider and offering employees training. Without proper safety measures, the hotel can face customer dissatisfaction and legal issues.
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