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Unit V

5.1 Leadership
5.2 Organization Culture and Change
5.3 Values and Work Ethics
5.4 Staff Communication
5.5 Succession Planning
5.6 Occupational Hazards : Health and Safety
5.7 Welfare Programmes and Counseling
5.8 Review Questions

5.1 Leadership
Introduction

Manager and leader are two completely different roles, although we often use the
terms interchangeably. Managers are facilitators of their team members’ success.
They ensure that their people have everything they need to be productive and
successful; that they’re well trained, happy and have minimal roadblocks in their
path; that they’re being groomed for the next level; that they are recognized for great
performance and coached through their challenges.

leadership styles

Not only do the greatest teammates allow different leaders to consistently emerge
based on their strengths, but also they realize that leadership can and should be
situational, depending on the needs of the team. Sometimes a teammate needs a warm
hug. Sometimes the team needs a visionary, a new style of coaching, someone to lead
the way or even, on occasion, a kick in the bike shorts. For that reason, great leaders
choose their leadership style like a golfer chooses his or her club, with a calculated
analysis of the matter at hand, the end goal and the best tool for the job.

six leadership styles Goleman uncovered among the managers he studied, as well as a
brief analysis of the effects of each style on the corporate climate:

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1. The pacesetting leader expects and models excellence and self-direction. If
this style were summed up in one phrase, it would be “Do as I do, now.” The
pacesetting style works best when the team is already motivated and skilled,
and the leader needs quick results. Used extensively, however, this style can
overwhelm team members and squelch innovation.

2. The authoritative leader mobilizes the team toward a common vision and
focuses on end goals, leaving the means up to each individual. If this style
were summed up in one phrase, it would be “Come with me.” The
authoritative style works best when the team needs a new vision because
circumstances have changed, or when explicit guidance is not required.
Authoritative leaders inspire an entrepreneurial spirit and vibrant enthusiasm
for the mission. It is not the best fit when the leader is working with a team of
experts who know more than him or her.

3. The affiliative leader works to create emotional bonds that bring a feeling of
bonding and belonging to the organization. If this style were summed up in
one phrase, it would be “People come first.” The affinitive style works best in
times of stress, when teammates need to heal from a trauma, or when the team
needs to rebuild trust. This style should not be used exclusively, because a
sole reliance on praise and nurturing can foster mediocre performance and a
lack of direction.

4. The coaching leader develops people for the future. If this style were
summed up in one phrase, it would be “Try this.” The coaching style works
best when the leader wants to help teammates build lasting personal strengths
that make them more successful overall. It is least effective when teammates
are defiant and unwilling to change or learn, or if the leader lacks proficiency.

5. The coercive leader demands immediate compliance. If this style were


summed up in one phrase, it would be “Do what I tell you.” The coercive style
is most effective in times of crisis, such as in a company turnaround or a
takeover attempt, or during an actual emergency like a tornado or a fire. This

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style can also help control a problem teammate when everything else has
failed. However, it should be avoided in almost every other case because it
can alienate people and stifle flexibility and inventiveness.

The democratic leader

builds consensus through participation. If this style were summed up in one phrase, it
would be “What do you think?” The democratic style is most effective when the
leader needs the team to buy into or have ownership of a decision, plan, or goal, or if
he or she is uncertain and needs fresh ideas from qualified teammates. It is not the
best choice in an emergency situation, when time is of the essence for another reason
or when teammates are not informed enough to offer sufficient guidance

5.2 ORGANIZATIONAL CULTURE

Organizational culture is the behavior of humans who are part of an organization


and the meanings that the people attach to their actions. Culture includes the
organization values, visions, norms, working language, systems, symbols, beliefs and
habits. It is also the pattern of such collective behaviors and assumptions that are
taught to new organizational members as a way of perceiving, and even thinking and
feeling. Organizational culture affects the way people and groups interact with each
other, with clients, and with stakeholders.

Ravasi and Schultz (2006) state that organizational culture is a set of shared mental
assumptions that guide interpretation and action in organizations by defining
appropriate behavior for various situations. At the same time although a company
may have their "own unique culture", in larger organizations, there is a diverse and
sometimes conflicting cultures that co-exist due to different characteristics of the
management team. The organizational culture may also have negative and positive
aspects.

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According to Needle organisational culture represents the collective values, beliefs
and principles of organisational members and is a product of such factors as history,
product, market, technology, and strategy, type of employees, management style, and
national cultures and so on. Corporate culture on the other hand refers to those
cultures deliberately created by management to achieve specific strategic ends.

As a part of organization

When one views organizational culture as a variable, one takes on the perspective that
culture is something possessed by an organization? Culture is just one entity that adds
to the organization as a whole. Culture can be manipulated and altered depending on
leadership and members. This perspective believes in a strong culture where everyone
buys into it

Stanley G. Harris argues that five categories of in-organization schemata are


necessary for organizational culture:

1. Self-in-organization schemata: a person's concept of oneself within the


context of the organization, including her/his personality, roles, and behavior.
2. Person-in-organization schemata: a person's memories, impressions, and
expectations of other individuals within the organization.
3. Organization schemata: a subset of person schemata, a person's generalized
perspective on others as a whole in the organization.
4. Object/concept-in-organization schemata: knowledge an individual has of
organization aspects other than of other persons.
5. Event-in-organization schemata: a person's knowledge of social events
within an organization.

All of these categories together represent a person's knowledge of an organization.


Organizational culture is created when the schemata’s (schematic structures) of
differing individuals across and within an organization come to resemble each other
(when any one person's schemata come to resemble another person's schemata
because of mutual organizational involvement), primarily done through

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organizational communication, as individuals directly or indirectly share knowledge
and meanings.

Strong/weak cultures

Strong culture is said to exist where staff respond to stimulus because of their
alignment to organizational values. In such environments, strong cultures help firms
operate like well-oiled machines, engaging in outstanding execution with only minor
adjustments to existing procedures as needed.

Healthy organizational cultures

Organizations should strive for what is considered a "healthy" organizational culture


in order to increase productivity, growth, efficiency and reduce counterproductive
behavior and turnover of employees. A variety of characteristics describe a healthy
culture, including:

• Acceptance and appreciation for diversity


• Regard for and fair treatment of each employee as well as respect for each
employee’s contribution to the company
• Employee pride and enthusiasm for the organization and the work performed
• Equal opportunity for each employee to realize their full potential within the
company
• Strong communication with all employees regarding policies and company
issues
• Strong company leaders with a strong sense of direction and purpose
• Ability to compete in industry innovation and customer service, as well as
price
• Lower than average turnover rates (perpetuated by a healthy culture)
• Investment in learning, training, and employee knowledge

Additionally, performance oriented cultures have been shown to possess statistically


better financial growth. Such cultures possess high employee involvement, strong

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internal communications and an acceptance and encouragement of a healthy level of
risk-taking in order to achieve innovation. Additionally, organizational cultures that
explicitly emphasize factors related to the demands placed on them by industry
technology and growth will be better performers in their industries.

According to Kotter and Heskett (1992 organizations with adaptive cultures perform
much better than organizations with unadaptive cultures. An adaptive culture
translates into organizational success; it is characterized by managers paying close
attention to all of their constituencies, especially customers, initiating change when
needed, and taking risks. An unadaptive culture can significantly reduce a firm's
effectiveness, disabling the firm from pursuing all its competitive/operational options.

. The described four types of culture are

Power culture: concentrates power among a small group or a central figure and its
control is radiating from its center like a web. Power cultures need only a few rules
and little bureaucracy but swift in decisions can ensue.

Role culture: authorities are delegated as such within a highly defined structure.
These organizations form hierarchical bureaucracies, where power derives from
the personal position and rarely from an expert power. Control is made by
procedures (which are highly valued), strict roles descriptions and authority
definitions. These organizations have consistent systems and are very predictable.
This culture is often represented by a "Roman Building" having pillars. These
pillars represent the functional departments.

Task culture: teams are formed to solve particular problems. Power is derived
from the team with the expertise to execute against a task. This culture uses a
small team approach, where people are highly skilled and specialized in their own
area of expertise. Additionally, these cultures often feature the multiple reporting
lines seen in a matrix structure.

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Person culture: formed where all individuals believe themselves superior to the
organization. It can become difficult for such organizations to continue to operate,
since the concept of an organization suggests that a group of like-minded
individuals pursue organizational goals. However some professional partnerships
operate well as person cultures, because each partner brings a particular expertise
and clientele to the firm.

Constructive cultures

Constructive cultures are where people are encouraged to be in communication with


their co-workers, and work as teams, rather than only as individuals. In positions
where people do a complex job, rather than something simple like a mechanic one,
this sort of culture is an efficient one.

Achievement: completing a task successfully, typically by effort, courage, or skill


(pursue a standard of excellence) (explore alternatives before acting) - Based on the
need to attain high-quality results on challenging projects, the belief that outcomes
are linked to one's effort rather than chance and the tendency to personally set
challenging yet realistic goals. People high in this style think ahead and plan, explore
alternatives before acting and learn from their mistakes.

1. Self-actualizing: realization or fulfillment of one's talents and potentialities -


considered as a drive or need present in everyone (think in unique and
independent ways) (do even simple tasks well) - Based on needs for personal
growth, self-fulfillment and the realization of one's potential. People with this
style demonstrate a strong desire to learn and experience things, creative yet
realistic thinking and a balanced concern for people and tasks.
2. Humanistic-encouraging: help others to grow and develop (resolve conflicts
constructively) - Reflects an interest in the growth and development of people,
a high positive regard for them and sensitivity to their needs. People high in
this style devote energy to coaching and counseling others, are thoughtful and
considerate and provide people with support and encouragement.

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3. Affinitive: treat people as more valuable than things (cooperate with others) -
Reflects an interest in developing and sustaining pleasant relationships. People
high in this style share their thoughts and feelings, are friendly and
cooperative and make others feel a part of things.

Organizations with constructive cultures encourage members to work to their full


potential, resulting in high levels of motivation, satisfaction, teamwork, service
quality, and sales growth. Constructive norms are evident in environments where
quality is valued over quantity, creativity is valued over conformity, cooperation is
believed to lead to better results than competition, and effectiveness is judged at the
system level rather than the component level. These types of cultural norms are
consistent with (and supportive of) the objectives behind empowerment, total quality
management, transformational leadership, continuous improvement, re-engineering,
and learning organizations.

Passive/defensive cultures

Norms that reflect expectations for members to interact with people in ways that will
not threaten their own security are in the Passive/Defensive Cluster.

The four Passive/Defensive cultural norms are:

• Approval
• Conventional
• Dependent
• Avoidance

In organizations with Passive/Defensive cultures, members feel pressured to think


and behave in ways that are inconsistent with the way they believe they should in
order to be effective. People are expected to please others (particularly superiors) and
avoid interpersonal conflict. Rules, procedures, and orders are more important than
personal beliefs, ideas, and judgment. Passive/Defensive cultures experience a lot of

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unresolved conflict and turnover, and organizational members report lower levels of
motivation and satisfaction.

Aggressive/defensive cultures

This style is characterized with more emphasis on task than people. Because of the
very nature of this style, people tend to focus on their own individual needs at the
expense of the success of the group. The aggressive/defensive style is very stressful,
and people using this style tend to make decisions based on status as opposed to
expertise.

1. Oppositional - This cultural norm is based on the idea that a need for security
that takes the form of being very critical and cynical at times. People who use
this style are more likely to question others work; however, asking those
tough question often leads to a better product. Nonetheless, those who use this
style may be overly-critical toward others, using irrelevant or trivial flaws to
put others down.
2. Power - This cultural norm is based on the idea that there is a need for
prestige and influence. Those who use this style often equate their own self-
worth with controlling others. Those who use this style have a tendency to
dictate others opposing to guiding others’ actions.
3. Competitive - This cultural norm is based on the idea of a need to protect
one’s status. Those who use this style protect their own status by comparing
themselves to other individuals and outperforming them. Those who use this
style are seekers of appraisal and recognition from others.
4. Perfectionist - This cultural norm is based on the need to attain flawless
results. Those who often use this style equate their self-worth with the
attainment of extremely high standards. Those who often use this style are
always focused on details and place excessive demands on themselves and
others.

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Organizations with aggressive/defensive cultures encourage or require members to
appear competent, controlled, and superior. Members who seek assistance, admit
shortcomings, or concede their position are viewed as incompetent or weak. These
organizations emphasize finding errors, weeding out "mistakes" and encouraging
members to compete against each other rather than competitors. The short-term gains
associated with these strategies are often at the expense of long-term growth.

Entrepreneurial organizational culture

Stephen McGuire (2003) defined and validated a model of organizational culture that
predicts revenue from new sources. An Entrepreneurial Organizational Culture (EOC)
is a system of shared values, beliefs and norms of members of an organization,
including valuing creativity and tolerance of creative people, believing that
innovating and seizing market opportunities are appropriate behaviors to deal with
problems of survival and prosperity, environmental uncertainty, and competitors'
threats, and expecting organizational members to behave accordingly.

Elements

• People and empowerment focused


• Value creation through innovation and change
• Attention to the basics
• Hands-on management
• Doing the right thing
• Freedom to grow and to fail
• Commitment and personal responsibility

Mergers, organizational culture, and cultural leadership

One of the biggest obstacles in the way of the merging of two organizations is
organizational culture. Each organization has its own unique culture and most often,
when brought together, these cultures clash. When mergers fail employees point to
issues such as identity, communication problems, human resources problems, ego

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clashes, and inter-group conflicts, which all fall under the category of "cultural
differences".

One way to combat such difficulties is through cultural leadership. Organizational


leaders must also be cultural leaders and help facilitate the change from the two old
cultures into the one new culture. This is done through cultural innovation followed
by cultural maintenance.

• Cultural innovation includes:


o Creating a new culture: recognizing past cultural differences and
setting realistic expectations for change
o Changing the culture: weakening and replacing the old cultures
• Cultural maintenance includes:
o Integrating the new culture: reconciling the differences between the
old cultures and the new one
o Embodying the new culture: Establishing, affirming, and keeping the
new culture

5.3 VALUES AND ETHICS

INTRODUCTION

Values and ethics are central to any organization; those operating in the national
security arena are no exception. What exactly do we mean by values and ethics? Both
are extremely broad terms, and we need to focus in on the aspects most relevant for
strategic leaders and decision makers. What we will first discuss is the distinctive
nature of ethics for public officials; second, the forces which influence the ethical
behavior of individuals in organizations; and third, explore the actions strategic
leaders can take to build ethical climates in their organizations.

THE CHARACTER OF VALUES AND ETHICS

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Values can be defined as those things that are important to or valued by someone.
That someone can be an individual or, collectively, an organization. One place where
values are important is in relation to vision. One of the imperatives for organizational
vision is that it must be based on and consistent with the organization's core values. In
one example of a vision statement we'll look at later, the organization's core values -
in this case, integrity, professionalism, caring, teamwork, and stewardship- were
deemed important enough to be included with the statement of the organization's
vision. Dr. John Johns, in an article entitled "The Ethical Dimensions of National
Security," mentions honesty and loyalty as values that are the ingredients of integrity.
When values are shared by all members of an organization, they are extraordinarily
important tools for making judgments, assessing probable outcomes of contemplated
actions, and choosing among alternatives. Perhaps more important, they put all
members "on the same sheet of music" with regard to what all members as a body
consider important.

The Army, in 1986, had as the theme for the year "values," and listed four
organizational values-loyalties, duty, selfless service, and integrity-and four
individual values- commitment, competence, candor, and courage. A Department of
the Army pamphlet entitled Values: the Bedrock of Our Profession spent some time
talking about the importance of values, and included this definition:

Values are what we, as a profession, judge to be right. They are more than words-they
are the moral, ethical, and professional attributes of character . . . there are certain
core values that must be instilled in members of the U.S. Army-civilian and
uniformed soldier alike. These are not the only values that should determine our
character, but they are ones that are central to our profession and should guide our
lives as we serve our Nation.

Values are the embodiment of what an organization stands for, and should be the
basis for the behavior of its members. However, what if members of the organization
do not share and have not internalized the organization's values? Obviously, a
disconnect between individual and organizational values will be dysfunctional.

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Additionally, an organization may publish one set of values, perhaps in an effort to
push forward a positive image, while the values that really guide organizational
behavior are very different. When there is a disconnect between stated and operating
values, it may be difficult to determine what is "acceptable." For example, two of the

CAUSES OF UNETHICAL BEHAVIOR

INDIVIDUAL

• COMPLEXITY OF STRATEGIC ISSUES OBSCURES ETHICS


• COMPETITION FOR SCARCE RESOURCES/ POWER/POSITION
• CONFLICTING LOYALTIES

GROUP

• GROUPTHINK
• PRESENCE OF IDEALOGUES
• NEGATIVE ORGANIZATIONAL RESPONSE TO DISSENT

ETHICS IN PRACTICE

Kenneth R. Andrews, in "Ethics in Practice," contends that there are three aspects to
ethical behavior in organizations: the development of the individual as an ethical
person, the effect of the organization as an ethical or unethical environment, and the
actions or procedures developed by the organization to encourage ethical behavior
and discourage unethical behavior.

INFLUENCES ON ETHICAL BEHAVIOR

• PRIOR DEVELOPMENT OF INDIVIDUAL AS ETHICAL PERSON.


• THE ORGANIZATION AS AN ETHICAL ENVIRONMENT.
• PROCEDURES THAT ENCOURAGE ETHICAL BEHAVIOR.

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Most of an individual's ethical development occurs before entering an organization.
The influence of family, church, community, and school will determine individual
values. The organization, to a large extent, is dealing with individuals whose value
base has been established. This might imply that ethical organizations are those
fortunate enough to bring in ethical individuals, while unethical organizations brought
in unethical people. But it is not that simple. While the internalized values of
individuals are important, the organization has a major impact on the behavior of its
members, and can have a positive or negative influence on their values.

5.4 STAFF COMMUNICATION

Delegation - Delegating tasks and authority is a key professional skill for


effective managers and helps you make the most of your time as well as developing
others in your team.

• Communicating and consulting with your team - How to ensure effective


communication with employees and volunteers.
• Motivation and engagement - The basic needs of staff and how to keep your
employees motivated and engaged in their work.
• Performance-based rewards - Ideas for connecting performance to rewards
and why this is important for the development of your staff.
• Building a loyal workforce - How to build and improve staff loyalty,
including ideas about flexible working.
• Treating others as you would wish to be treated - Why it's important to have a
considerate management style and to treat employees as you would wish to be
treated yourself.
• Treating people equally - How employees can become demotivated if they
feel they are being treated unfairly in comparison to their colleagues.
• Measuring achievements in good staff management - Ways of measuring your
organisation's success with people management procedures.

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• Dealing with conflict - Dealing with and managing conflicts or disagreements
between employees effectively is a key management skill.

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5.5 SUCCESSION PLANNING

Introduction

Succession planning is not an issue that many organizations address in any systematic
way. Because many nonprofits are small (with fewer than 10 employees) and because
they may be facing other organizational challenges, thinking about who the next
executive director might be or what would happen if the director of finance suddenly
left is not high on their priority list.

There are many reasons why organizations need to be thinking about succession
planning. The most important reason, of course, is that we rely on staff to carry out
our missions, provide services and meet our organization's goals. We need to think
about what would happen to those services or our ability to fulfill our mission if a key
staff member left.

Another reason to focus on succession planning is the changing realities of


workplaces. The impending retirement of the baby boomers is expected to have a
major impact on workforce capacity. Teresa Howe in "Succession Planning and
Management" identified other emerging realities about the workforce in Canada:

• Vacancies in senior or key positions are occurring in numerous organizations


simultaneously and demographics indicate there are statistically fewer people
available to fill them

• Baby boomer retirements are on the rise just at the time when the economy is
growing and increasing the demand for senior management expertise

• There is no emerging group of potential employees on the horizon as in past


generations (i.e. baby boomers, women entering the workforce, large waves of
immigration)

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• Many organizations eliminated middle manager positions during restructuring
in the 1980s and 90s and no longer have this group as a source to fill senior
level vacancies

• Younger managers interested in moving up do not have the skills and


experience required because they have not been adequately mentored. This is
because middle managers, who would normally perform this type of coaching
role, were eliminated

With careful planning and preparation, organizations can manage the changes that
result from a generational transfer of leadership as well as the ongoing changes that
occur regularly when key employees leave an organization.

Although the type and extent of planning will be different, organizations both large
and small need to have some sort of succession plan. Effective succession planning
supports organizational stability and sustainability by ensuring there is an established
process to meet staffing requirements. Boards and executive directors can
demonstrate leadership by having the strategies and processes in place to ensure that
these transitions occur smoothly, with little disruption to the organization.

The benefits of good succession planning include:

A means of ensuring the organization is prepared with a plan to support


service continuity when the executive director, senior managers or key people
leave

• A continuing supply of qualified, motivated people (or a process to identify


them), who are prepared to take over when current senior staff and other key
employees leave the organization

• An alignment between your organization's vision and your human resources


that demonstrates an understanding of the need to have appropriate staffing to
achieve strategic plans

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• A commitment to developing career paths for employees which will facilitate
your organization's ability to recruit and retain top-performing employees and
volunteers

• An external reputation as an employer that invests in its people and provides


opportunities and support for advancement

• A message to your employees that they are valuable

The absence of a succession plan can undermine an organization's effectiveness and


its sustainability. Without a succession planning process, an organization may not
have a means of ensuring that the programs and services that are crucial to its
operation are sustained beyond the tenure of the individual currently responsible for
them

5.6 Occupational safety and health

Introduction

Occupational safety and health (also commonly referred to as occupational health


and safety) is an area concerned with protecting the safety, health and welfare of
people engaged in work or employment. The goals of occupational safety and health
programs include to foster a safe and healthy work environment. OSH may also
protect co-workers, family members, employers, customers, and many others who
might be affected by the workplace environment.

Occupational safety and health can be important for moral, legal, and financial
reasons. All organisations have a duty of care to ensure that employees and any other
person who may be affected by the companies undertaking remain safe at all times.[
Moral obligations would involve the protection of employee's lives and health. Legal
reasons for OSH practices relate to the preventative, punitive and compensatory
effects of laws that protect worker's safety and health. OSH can also reduce employee

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injury and illness related costs, including medical care, sick leave and disability
benefit costs.

Definition

"Occupational health should aim at: the promotion and maintenance of the highest
degree of physical, mental and social well-being of workers in all occupations; the
prevention amongst workers of departures from health caused by their working
conditions; the protection of workers in their employment from risks resulting from
factors adverse to health; the placing and maintenance of the worker in an
occupational environment adapted to his physiological and psychological capabilities;
and, to summarize, the adaptation of work to man and of each man to his job.

"The main focus in occupational health is on three different objectives: (i) the
maintenance and promotion of workers’ health and working capacity; (ii) the
improvement of working environment and work to become conducive to safety and
health and (iii) development of work organizations and working cultures in a
direction which supports health and safety at work and in doing so also promotes a
positive social climate and smooth operation and may enhance productivity of the
undertakings. The concept of working culture is intended in this context to mean a
reflection of the essential value systems adopted by the undertaking concerned. Such
a culture is reflected in practice in the managerial systems, personnel policy,
principles for participation, training policies and quality management of the
undertaking."

—Joint ILO/WHO Committee on Occupational HealthAlthough work provides many


economic and other benefits, a wide array of workplace hazards also present risks to
the health and safety of people at work. These include but are not limited to,
"chemicals, biological agents, physical factors, adverse ergonomic conditions,
allergens, a complex network of safety risks," and a broad range of psychosocial risk
factors.

Psychosocial hazards

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Employers in most OECD countries have an obligation not only to protect the
physical health of their employees but also the psychological health. Therefore as part
of a risk management framework psychological or psychosocial hazards (risk factors)
need to be identified and controlled for in the workplace. Psychosocial hazards are
related to the way work is designed, organised and managed, as well as the economic
and social contexts of work and are associated with psychiatric, psychological and/or
physical injury or illness. Linked to psychosocial risks are issues such as occupational
stress and workplace violence which are recognized internationally as major
challenges to occupational health and safety According to a survey by the European
Agency for Safety and Health at Work, the most important emerging psychosocial
risks are:

• Precarious work contracts


• Increased worker vulnerability due to globalization
• New forms of employment contracts
• Feeling of job insecurity
• Aging workforce
• Long working hours
• Work intensification
• Lean production and outsourcing
• High emotional demands
• Poor work-life balance[22]

Occupational safety and health by industry

Specific occupational safety and health risk factors vary depending on the specific
sector and industry. Construction workers might be particularly at risk of falls, for
instance, whereas fishermen might be particularly at risk of drowning. The United
States Bureau of Labor Statistics identifies the fishing, aviation, lumber,
metalworking, agriculture, mining and transportation industries as among some of the
more dangerous for workers.[23]Similarly psychosocial risks such as workplace

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violence are more pronounced in certain occupational groups such as health care
employees, correctional officers and teachers.[24]

Organizations provide welfare facilities to their employees to keep their


motivation levels high. The employee welfare schemes can be classified into
two categories viz. statutory and non-statutory welfare schemes. The statutory
schemes are those schemes that are compulsory to provide by an organization as
compliance to the laws governing employee health and safety. These include
provisions provided in industrial acts like Factories Act 1948, Dock Workers
Act (safety, health and welfare) 1986, Mines Act 1962. The non statutory
schemes differ from organization to organization and from industry to industry.

WELFAREPROGRAMMES

The statutory welfare schemes include the following provisions:

1. Drinking Water: At all the working places safe hygienic drinking water
should be provided.

2. Facilities for sitting: In every organization, especially factories, suitable


seating arrangements are to be provided.

3. First aid appliances: First aid appliances are to be provided and should be
readily assessable so that in case of any minor accident initial medication
can be provided to the needed employee.

4. Latrines and Urinals: A sufficient number of latrines and urinals are to

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be provided in the office and factory premises and are also to be
maintained in a neat and clean condition.

5. Canteen facilities: Cafeteria or canteens are to be provided by the


employer so as to provide hygienic and nutritious food to the employees.

6. Spittoons: In every work place, such as ware houses, store places, in the
dock area and office premises spittoons are to be provided in convenient
places and same are to be maintained in a hygienic condition.

7. Lighting: Proper and sufficient lights are to be provided for employees so


that they can work safely during the night shifts.

8. Washing places: Adequate washing places such as bathrooms, wash


basins with tap and tap on the stand pipe are provided in the port area in
the vicinity of the work places.

9. Changing rooms: Adequate changing rooms are to be provided for


workers to change their cloth in the factory area and office premises.
Adequate lockers are also provided to the workers to keep their clothes
and belongings.

10. Rest rooms: Adequate numbers of restrooms are provided to the workers

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with provisions of water supply, wash basins, toilets, bathrooms, etc.

NONSTATUTORYSCHEMES

Many non statutory welfare schemes may include the following schemes:

Employee Welfare - What Is Employee Welfare


Employee welfare is a term including various services, benefits and facilities offered
to employees by the employers. The welfare measures need not be monetary but in
any kind/forms. This includes items such as allowances, housing, transportation,
medical insurance and food. Employee welfare also includes monitoring of working
conditions, creation of industrial harmony through infrastructure for health, industrial
relations and insurance against disease, accident and unemployment for the workers
and their families. Through such generous benefits the employer makes life worth
living for employees.

Importance of Employee Welfare

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As a business, you have to provide various benefits to ensure your employees'
welfare. While this may increase your business expense and negatively affect your
bottom line, looking after your employees will benefit you in other ways.

Compliance:
As an owner, you are required by law to provide certain benefits for the welfare of
your employees. You may have to match the Social Security taxes your employees
pay and obtain a worker's compensation insurance policy. If you terminate an
employee, you may have to funds to extend his health insurance.

Hiring and Retention:


The benefits an employee receives from his employer for his welfare are often a
significant reason why he decides to accept a job offer. As such, providing employee
benefits allow you to compete with other businesses to recruit and retain qualify
employees. If other employers offer better benefits, good employees may choose to
go there.

Employees Motivation:
By providing a plan that's good for employees' welfare, you show them that you value
them. This can help make them feel welcome and happy in your company, motivating
them to work harder. If your health plan has wellness coverage and preventative care,
employees are more likely to stay healthy, cutting down on absenteeism and sick
days.

Employees' Well-Being:
For companies that have a large base of employees working under stressful conditions
or living away from family, it is important to look at fostering personal happiness and
professional growth. Investing in employees pays dividends in terms of higher
productivity and greater loyalty

Company Image:
Providing a good employee welfare plan reflects well on your business, building a
good company image. It may even earn you some press coverage, giving you free

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publicity to improve awareness among potential customers. This may boost your sales
and increase your profits.

Features of Employee Welfare

• Employee welfare is a comprehensive term including various services,


facilities and amenities provided to employees for their betterment.
• Welfare measures are in addition to regular wages and other economic
benefits available to employees under legal provisions and collective
bargaining.
• The basic purpose of employee welfare is to improve the lot of the working
class and thereby make a worker a good employee and a happy citizen.
• Employee welfare is an essential part of social welfare. It involves adjustment
of an employee's work life and family life to the community or social life.
• Welfare measures may be both voluntary and statutory.

How to Develop an Effective Employee Welfare Program

• Conduct employee surveys to understand their needs and expectations


• Indentify key areas of building skills and engagement and facilitating trainings
for the same
• Propose solutions for personal upkeep, family uplifting and future security
• Create opportunities for greater synergies between the management and
employees
• Conduct impact assessments and feedback surveys

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Welfare Measures in India

"During the pre-independence period, industrial relations policy of the British


Government was one of laissez faire and also of selective intervention. There were
hardly any labour welfare schemes. After independence, labour legislations have
formed the basis for industrial relations and social security. These legislations have
also provided machinery for bipartite and tripartite consultations for settlement of
disputes.

Soon after independence, the government at a tripartite conference in


December 1947 adopted the industrial truce resolution. Several legislations, including
the following, were enacted to maintain industrial peace and harmony: Factories Act,
1948, Employees State Insurance Act, 1948 and Minimum Wages Act, 1948. The
payment of bonus act was passed in 1965.

In the early 1990s, the process of economic reforms was set in motion when
the government introduced a series of measures to reduce control on industries,
particularly large industries. The workers have opposed economic liberalization
policy for fear of unemployment while entrepreneurs have welcomed it in the hope of
new opportunities to improve Indian industries. The new economic policy has directly
affected industrial relations in the country, because the government has to play a dual
role, one of protecting the interest of the workers, and second to allow a free interplay
of the market forces. Economic reforms, by removing barriers to entry, have created
competitive markets. Fiscal stabilization has resulted in drastic reduction in budgetary
support to the public sector commercial enterprises while exposing these enterprises
to increased competition from private sector.

Labour and Labour Welfare sub-sector consists of six main programmes viz.
Labour Administration, Rehabilitation of bonded labour, Assistance to Labour
Cooperatives, Craftsmen training programmed, Apprenticeship training programme,
Employment Services and Sanjay Gandhi Swavalamban Yojana.

Manpower, employment policy and labour welfare in India: post-independence


developments:

197
Many researches has been done in the following themes, such as

1. Manpower: trends and magnitude.

2. Employment policies and programmes

3. Labour welfare: legal framework and initiatives.

4. Women workers: legislations and empowerment.

5. Industrial relations and labour laws.

6. Restructuring of labour laws: the great debate.

7. Labour laws and welfare: India and ILO

5.8 REVIEW QUESTION

1) Explain leadership
2) Explain Organization Culture and Change
3) Explain Values and Work Ethics
4) Explain Staff Communication
5) Explain Succession Planning
6) Discuss Occupational Hazards
7) Explain Welfare Programmes and Counselling

198
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