HEALTH AND SAFETY MANAGEMENT AND ORGANIZATIONAL PERFORMANCE: A STUDY OF SELECTED CONSTRUCTION COMPANIES IN RIVERS STATE.
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HEALTH AND SAFETY MANAGEMENT AND ORGANIZATIONAL PERFORMANCE: A STUDY OF SELECTED CONSTRUCTION COMPANIES IN RIVERS STATE.
This study examined the relationship of Health and Safety Management and Organizational performance in construction industry in Rivers State, Nigeria. Yamen’s formula for sample size determination was used, a sample of twenty eight (28) questionnaire were drawn for the study. A twenty one (21) items questionnaire with a 5-point scale (Likert’s Method) response format was developed and used for the study. The test-test, method was used to ascertain the reliability of the instrument, which showed 0.85stability. Nine (9) research questions and hypotheses were asked and tested respectively. The essential variables of the study were strategies planning, strategic implementation and supportive supervision (an independent variables); return on investment, profitability and market share participation (the dependent variables). Regression analysis method was used to test the hypothesis at significant level of 0.05. The SPSS software facilitated that the following relationship are true in construction companies studied. There is a strong and significant relationship between strategic planning, strategic implementation, supportive supervision, and market share. Based on these findings, some of the recommendations made include: management should give health and safety management a priority attention, since a healthy person, order things being equal is a productive individual; employees should be given appropriate training under qualified trainers on the area related to their job and also on general aspect of health and safety. Government should pay serious attention to devoilation of health and safety rules and regulations by construction industry, since many of them are selfish; and finally, the use of obsolete and malfunction equipment should be done away with, since most of the accident are as a result of these.
TABLE OF CONTENTS
Cover Page i
Table of Contents vii
List of Tables viii
CHAPTER ONE: INTRODUCTION
1.1 background of the study 1
1.2 statement of the problem 6
1.3 conceptual framework 10
1.4 purpose of the study 11
1.5 research questions 12
1.6 research hypothesis 13
1.7 significance of the study 15
1.8 scope of the study 16
1.9 limitation of the study 16
1.10 operational definition of terms 18
1.11 organizational of the study 20
CHAPTER TWO: REVIEW OF RELATED LITERATURE
2.0 Introduction 24
2.1 concepts of health and safety 25
2.2 strategic management process 27
2.3 safety and health policy 29
2.4 strategic planning 32
2.4 safety and health objectives and targets 33
2.4.2 performance standards 34
2.5 strategic implementation 36
2.5.1 management responsibilities 37
2.5.2 individual responsibilities 39
2.5.3 safety consultation participation and
2.5.4 training awareness and competence 42
2.6 supportive supervision 44
2.7 strategic planning and organizational performance 45
2.8 strategic implementation and organizational performance 48
2.9 supportive supervision and organizational performance 50
2.10.1concept of organizational performance 54
2.10.2measuring organizational performance 60
2.10.3 profitability 64
2.10.4 market share 66
2.11 relationship between health and safety management on
Organizational performance 68
2.11.1 The effect of the relationship 69
2.11.2 effects of health and safety management and
Organizational performance 72
2.12 size of organization 73
2.12.1 organizational culture
2.12.2 organizational size as moderating factor influence the
Relationship between health and safety management and
Organizational performance 75
2.12.3 organizational culture as moderating factor
Influencing the relationship between the health and safety
Management and organizational performance 78
2.12.4 measuring culture 78
2.12.5 human model 80
CHAPTER THREE: RESEARCH METHODOLOGY
3.0 Introduction 97
3.1 research design 98
3.2 sample procedure/ sample size determination 99
3.3 data collection method 100
3.4 operational measures of variables 101
3.5 data analysis techniques 103
CHAPTER FOUR: DATA PRESENATION ANANLYSIS AND INTERPRETATION
4.0 Introduction 106
4.1 data presentation 106
CHAPTER FIVE: DISCUSSION, CONLUSION AND RECOMMENDATIONS
5.0 Introduction 128
5.1 summary of findings 128
5.2 discussion of findings 130
5.3 conclusion 131
5.4 recommendation 132
5.5 suggestion for further study 133
1.1 BACKGROUND OF THE STUDY
The ultimate goal of every organization is to attain its overall objectives. A lot of innovations have been made, new technological equipment purchased by various arms of organizations, researches and development projects have been executed by experts in various functional areas. Training programmes are continuous virtually in every organization. But the expectations of many organizations are not met. It is obvious that many variables contributed to the achievement of organization objectives. Though other variables contribute to the difficulty of meeting their targeted objectives. Health and safety are twin factors that impede attainment of organizational objectives.
The health and safety of employees in an organizational are of prime concern to all managers in every organization. The attention given to these indispensable variables are indications of the extent to which management value its employees. Nwachukwu (2009, P 265) effective health and safety programmes could result in an efficient work force by reducing absenteeism due to injury, sickness and grievances reduction.
It is an established fact that health and safety of employees in any organization are the hubs on which organizational success and failures revolve, because it is a commonly belief that “Health is Wealth” other things being equal a healthy and safe (protected) employee is an efficient productive individual. According to the World Health Organization (2009) “Health is a state of complete physical, mental and social well-being and not merely the absence of disease” therefore the employees attitude toward the corporate goal of the organization will be positive if their health and safety needs are met other factors being in their rightful places. On the contrary, if the situation is the reverse, considering the huge investment and over increasing demand for efficiency in production both in goods and services, the management need to employ all available resources within its reach to established effective health and safety measures.
There are factors that influence the health and safety management in organization and its organizational performance. A successful occupational health and safety practice requires the collaboration and participation of both employers and workers in health and safety programmes, and involves the consideration of issues relating to occupational medicine, industrial hygiene, and toxicology, education, engineering safety, ergonomics, and health psychology.
Occupational health is of often less attention than occupational safety issues because the former are generally more difficult to confront. However, when health is addressed, so is safety, because a healthy work place is by definition also a safe work place. The converse, though may not be there, a so called safer place is not necessarily also a healthy workplace. The important points are the issues of both health and safety; must be addressed in every workplace.
Poor working condition of any type of have the potential to affect workers health and safety. Unhealthy or unsafe working condition are not limited to factories-they can be found anywhere, whether the workplace is indoor or outdoor.
Poor working conditions can also affect the environment workers live in. since the working and living environments are the same for many workers. This means that occupational hazard can have harmful effect on workers, their families and other people in the community as well as on the physical environment around the workplace.
Work play a central role in people’s lives, since most workers spent at least eight hours a day in the workplace, whether in plantation, in an office, factory or construction site. Therefore, work environment should be safe and healthy. Yet this is not the case for many workers. Everyday works all over the world are affected with a multitude of health hazards, such as dusts, gases, noise, vibration and extreme temperature.
Unfortunately some employers assume little responsibility for the protection of workers health and safety. In fact, some employers do not even know that they have the moral and often legal responsibility to protect workers. As a result of the hazards and lack of attention given to health and safety, work related accidents and diseases are common in all part of the world.
Work related accidents or diseases are costly and can have many serious direct and indirect effects on the lives of workers and their families. For workers some of the direct cost of an injury or illness are; the pain and suffering of the injury or illness; the loss of income; the possible loss of job, health care lost.
It has been estimate by World Health Organization (WHO), (2009) that the indirect cost of an accident or illness can be four to ten times greater than the direct cost or even more. An occupational illness or accident can have so many indirect costs on workers that it is often to measure them. One of the most obvious indirect cost is the human suffering caused to workers’ families, which cannot be compensated with money.
The huge costs to employer on occupational accident or illness also estimated to be about as much as 58 million dollars yearly WHO (2009). For a small business, the cost of even one direct costs are; payment for work not performed; medical and compensation payments, repair or placement of damaged machinery and equipment; reduction or a temporary halt in production; increased training expenses and administrative costs; possible reduction in the quality of work; negative effect on morale in other workers.
Some of the indirect costs for employers are; the injured/ill worker has to be replaced; a new worker has to be trained and given time to adjust; it takes time before the new worker is producing at the rate of the original worker; time must be devoted to obligatory investigations to the writing of reports and filling out of forms. Accidents also arouse the concern of other workers and influence labour relation in a negative way; poor health and safety conditions in the work place can also result in poor public relations.
In order to develop a successful health and safety programme, it is essential that there be strategic planning and implementation in the effort to create and maintain a safe and healthy workplace. An effective management addressed all work related hazards, not only those covered by government standards.
The quest to proffer lasting remedy to this questions led to research to determine how certain variables such as strategic planning, strategic implementation, supportive supervision and effective training on health and safety programmes, on one hand and on the other hand determine how dependent variables such as return in investment, profitability, market share, could enhance organizational performance in construction companies in Rivers State.
1.2 STATEMENT OF THE PROBLEM
In managing organizations, management attaches much importance to the management of human resources. This is achieved through the proper management of health and safety of employees. The proper management of health and safety of employees has significant impact on the organizational performance. It is observed that a healthy and safe employee will desire to meet the expectation of the organization. These basic variables are inadequate in many construction companies in Rivers State, rather undue influence and pressure are mostly exercised such as forcing worker to try to adapt themselves to unsafe condition, which is also shifting the responsibility from management to the workers.
The management has a lot of duties concerning the health and the safety of employees apart from normal routine which include inspection of worksite and equipment. The manner in which these functions are performed and the response of the employee will differ from one company to another in the construction companies in Rivers State.
It is the belief of the researcher that an average Nigerian worker is hardworking, efficient and ready to work. Though they may seem to be lazy, unwilling to work and inefficient and safety measures.
When the expectation of employees is not met, it is a common experience in construction companies that when the employer (management) is around, employee will endure to perform their assigned task. But once the employer (management) is away, the job is abandoned. To a large extend, the poor implementation of policies and regulations enshrined in the construction companies policies begins to manifest clearly, despite the modern equipment and machinery employed.
The employee participation in decision affecting the work and their welfare, health and safety training, effective communication structure, health and safety procedures, environmental working condition, and compensation policies are the next important areas where health and safety management lingers.
In as much as these units of health and safety management are not fulfilled, the high expectation of organizational performance of management from the employees often suffers setback. Once the employees finds a leeway that will enable him to keep away from the job or release for sometimes. The lapses and laxity created form the loop hole for the employee which might have been created by the management or through corporate setting.
It is therefore imperative to examine the relationship between health and safety management in an objective manner to ensure that adequate supervision is guaranteed, as well as strategic planning, policy and regulation, strategic implementation and supervision to enhanced overall organizational performance.
It quite interesting to know that there is sufficient literature existing on rules and regulations, policies, management commitment, strong worker participation, union and government involvement and good communication structure which foster organizational performance.
However, there is apparent non availability of literature on factors prevalent in health and safety management in construction companies in Rivers State such as strategic planning, strategic implementation and supportive supervision which may cushion organizational performance. This constitute the existing gap which this study intent to close.
Consequently, it is the intention of the researcher to determine the impacts which factors existing in health and safety management such as (strategic planning, strategic implementation and supportive supervision on health and safety expert on organizational performance in construction companies in Rivers State. It is expected that the research would promote organizational performance in construction companies.
1.3 CONCEPTUAL FRAMEWORK
The researcher did a comprehensive review of the review of the related literature on health and safety management and organizational performance and came up with improved model that reflects the general view on relationship between the variables of the study.
General frame work model on the relationship between health and safety management (HSM) and organizational performance (OP).
INDPEENDENT VARIABLES DEPENDENT VARIABLES
Source: Conceptualized by the Researcher 2012.
The model looks at Health and Safety Management (HRS) as the input point and direction flow reflects the influence it may have on organizational performance (OP). This influence has flow into organizational performance (OP). since there are moderating variables which include size and culture that were introduced into the system. The output has a feedback loop that allows the outcome or result of organizational performance (OP) to flow lack into Health and Safety Management to form fresh inputs.
1.4 PURPOSE OF THE STUDY
The main purpose of the study is to examine the effect of health and safety management in construction companies in Rivers State of Nigeria with a view to ascertain the following:
1. To identify the relationship between strategic planning and return on investment in construction companies in Rivers State.
2. To identify the relationship between strategic planning and profitability.
3. To identify the relationship between strategic planning and market share.
4. To identify the relationship between strategic implementation and return on investment.
5. To identify the relationship between strategic implementation and profitability.
6. To identify the relationship between strategic implementation and market share.
7. To identify the relationship between supportive supervision and return n investment.
8. To identify the relationship between supportive supervision and profitability.
9. To identify the relationship between supportive supervision and market share.
1.5 RESEARCH QUESTIONS
The following research questions are designed to provide appropriate direction to the research work.
1) To what extend does strategic planning on health and safety management influence return on investment on organizational performance.
2) To what extent does strategic implementation on health and safety management influence return on investment?
3) To what extent does supportive supervision on health and safety management influence return on investment?
4) To what extent does strategic planning on health and safety management influence profitability?
5) To what extent does strategic implementation on health and safety management influence profitability?
6) To what extent does strategic implementation on health and safety management influence profitability?
7) To what extent does strategic planning on health and safety management influence market share?
8) To what extend does strategic implementation on health and safety management influence market share?
9) To what extent does supportive supervision on health and safety management influence market share?
1.6 RESEARCH HYPOTHESES
H01: There is no significant relationship between strategic planning on health and safety management and return on investment on organizational performance.
H02: There is no significant relationship between strategic implementation on health and safety management and return on investment.
H03: There is no significant relationship between supportive supervision and return on investment.
H04: There is no significant relationship between strategic planning on health and safety management and profitability.
H05: There is no significant relationship between strategic implementation on health and safety management and profitability.
H06: There is no significant relationship between supportive supervision on health and safety management profitability
H07: There is no significant relationship between strategic planning on health and safety management and market share.
H08: There is no significant relationship between strategic implementation on health and safety management market share.
H09: There is no significant relationship between supportive supervision on health and safety management and market share.
1.7 SIGNIFICANCE OF THE STUDY
The significance of this research work aims at achieving the following:
1. Provide information to management in construction sector on how various factors such strategic planning strategic implementation of policies, supportive supervision compensation policies, risk and hazard prevention measure could influence organizational performance in construction industry in Rivers State on Nigeria.
2. Provide information to construction companies and other organizations key factors when initiating influence on organizational performance in any organization.
3. It would enable management to attain the corporate objective for which any organization is established.
4. It would broaden the understanding of management commitment to strategic implementation and supportive supervision that lead to the success of any organization.
5. It would provide frame work for student and those who wish to carry out further research work in this area.
1.8 SCOPE OF THE STUDY
The scope of the study covers virtually all construction industry and other related industries since health and safety is indispensable in almost all organizations. The unique characteristics of construction industry make the issue of health and safety a peculiar affair. The construction industry is diverse in nature; the building construction differs from road construction and other types of construction activities. On the whole, all aspects of construction operation is covered in the study as far as health and safety management in concern.
1.9 LIMITATION OF THE STUDY
This study is limited to an appraisal of variables in health and safety management as they affect organizational performance in construction industry in Rivers State.
However, due to the typical Nigeria attitude toward the release of information about organization which they consider as confidential, respondent were lukewarm during sample collection of information relating to organization health and safety policies and regulation, report of management inventory in health and safety measure. Return on investment record, data on team work results rate of accident, sickness, compensation files, training records and safety tool. Effort were made towards averting the problem of unrealistic responses by persuading and educating as well as soliciting for support and co-operation of the respondents on the intent of the research which is purely academic exercise.
Above all, some of the respondents were reluctant to return the questionnaire and in order to address this problem; the researcher personality visited some of the construction companies again and liaised with some officials to ensure that most of these copies were retrieved. Another problem encountered in the course of the study was in the collation of response from respondents and the rigour of analysis the data using the requisite statistical tool.
Time was another problem, because of the limited time available which could not allow for extensive research survey. Money was not left our among the constraints, because some of the officials that demand constant contact for handy information was not possible because of financial constraint.
1.10 OPERATIONAL DEFINITION OF TERMS
A number of terms defined in order to clarify the manner in which they are used. Others are not defined under this section were definitely treated as and when used.
1. Accident: An unforeseen, unexpected event that is capable of causing personal injury, dead or property damaged or both.
2. Strategic: This refers to options that a company has to accomplished is an objective as a blue or plan adopted by the management for accomplishment of its goals.
3. Attitude: A stable, long-lasting and learned predis position to respond to certain things in different ways.
4. Communication: He process of transmitting or exchange information, ideas, belief, and opinion normally the use of language, though, non verbal communication which is less equipped to handle complexity and change.
5. Control: The aspect of management concerned with the comparison of actual versus planned performance; as well as the development and implementation of procedure to correct substandard performance.
7. Organizational Performance: This is refers to the total accomplishment by the whole organization in relation to total input and output as well as meeting the target of the organizational objectives.
8. Employee: A person who offers his or her service to another person or organization for exchange of wage or salary.
9. Employee Productivity: This is the ratio of the total output to the total input. This is the relationship between unit of labour input and unit of output. It also measured how well resources are brought together in organization and utilized for accomplished a set of result. Productivity is reaching the highest level of performance with the least expenditure or resources.
10. Human Resources Management: The possibility for making the best use of organization employee. One of the functions of personnel management.
11. Hazard: An unsafe action condition with potential for causing an accident or nearness.
12. Management Commitment: Is the direct participation by the highest level executive in a specific and critical aspect or programme of an organization.
13. Organization: A group of people who work for a common goal.
14. Organizational Commitment: Is the relative strength of an individual’s identification with and involvement in particular organization.
15. Occupation: Is anything trade, career or profession a man engage himself a lifetime in order to earn a living.
16. Safety: The absence of danger or hazard at the workplace, it borders on injury and asset damage at work.
17. Safety Management Strategic: Refers to methods adopted by an organizational in order to reduce the occurrence of accident in the workplace.
18. Training: An organizational effort aimed at helping an employee to acquire basic skills require for the effective execution of the function for which he was employed.
19. Unsafe Acts: An action by a worker that predispose himself and other workers to hazard example failure to wear personal protective equipment, horseplay, improper use of equipment.
1.11 ORGANIZATION OF THE STUDY
This study is organized in five chapters, one is the introduction focusing on the background of the study, the statement of the problem, conceptual framework, the purpose of the study, research questions, hypothesis, significance of the study. Other areas treated in chapter one includes, scope of the study, limitation of the study, definition of terms used and the organization of the study.
Chapter two deals with the review of relevant literature. The chapter is broken down into sub-topic, each reflecting the key interest area. Chapter three is the research methodology. The focus of this chapter is on research background of the organization, population of the study, sample and sampling techniques, other issues includes research instruments, validity of the instrument, scoring of the instrument and method of data analysis. Chapter four deal with data presentation, analysis and interpretation. The last chapter, chapter five present summary, conclusion, recommendation and suggestions.