Example of Management Systems

Over the years I have had the opportunity as a consultant and also in the industrial environment to see all types of organizations perform. Hansen has captured the essence of these types of organizations. As you read this section, consider which type of system you may be operating in. 

They employ make-do solutions (quick fixes) to equipment and facilities, often unsafe. There is minimal employee participation in decisionmaking. Employee-management relationships are adversarial—the traditional them against us [5]. 

This type of organization has high insurance cost driven by frequency and severity. Their EMR is typically 1.25, that is, 25 percent worse than the average. They pay a high cost in premiums to insurance (liability and workers compensation.) They continue to operate in statutory ignorance, often in violation of recognized safety codes. The attitude is that It is cheaper to have an OSHA fine than it is to fix the problem [5]. 

Employees complain frequently. This organization becomes a target for litigation emanating from major injuries and frequently makes national headlines [5]. 

These companies remain in this type of environment until a significant financial crisis (SFC) occurs—normally an increase in operational cost or losses so damaging (to profit) that management finally recognizes a problem and declares, We need a safety program [5]. 

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Some examples of management systems that influence human performance are shown below. 

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