©2007 BST, Inc.•All rights reserved. May not be reproduced without written permission www.bstsolutions.com
Comparing Organizational
Comparing Organizational
Functioning to Injury
Functioning to Injury
Rates and Cost per Unit
Rates and Cost per Unit
Produced:
Produced:
A Case Study
A Case Study
R. Scott Stricoff, CIH, CSP
R. Scott Stricoff, CIH, CSP
Behavioral Science Technology, Inc.
Objectives
Objectives
•
•
Introduce nine factors that predict
Introduce nine factors that predict
organizational functioning
organizational functioning
•
•
Compare these nine factors to injury
Compare these nine factors to injury
rate performance
rate performance
•
•
Compare these nine factors to cost per
Compare these nine factors to cost per
unit produced
unit produced
•
•
Completing the model
Completing the model
-
-
How do you
How do you
improve organizational functioning
©2007 BST, Inc.•All rights reserved. May not be reproduced without written permission \
1. Procedural justice
2. Leader-member exchange
3. Management credibility
4. Perceived organizational support
1.
Procedural justice
2.
Leader-member exchange
3.
Management credibility
4.
Perceived organizational support
Organizational Factors
Organizational Factors
5. Work group relations
6. Teamwork
5.
Work group relations
6.
Teamwork
Team Factors
7. Organizational value for EHS performance
improvement
8. Upward communication
9. Approaching others
7.
Organizational value for EHS performance
improvement
8.
Upward communication
9.
Approaching others
Performance
Performance-
-specific Factors
specific Factors
Lower injury rates
Higher levels of safe behavior
Reduced WC costs
Less turnover
Less Absenteeism
Increased commitment to the organization
OUTCOMES
OUTCOMES
Organizational commitment
Openness to change
Job satisfaction
Mutual trust and respect between
supervisor and worker
Organizational citizenship behavior
Excellent communication and cooperation
ORGANIZATIONAL QUALITIES
ORGANIZATIONAL QUALITIES
Organizational Functioning
High Organizational Functioning
High Organizational Functioning
Attributes
Attributes
•
•
Organizational commitment
Organizational commitment
•
•
Openness to change
Openness to change
•
•
Ethical decision making
Ethical decision making
•
•
Job satisfaction
Job satisfaction
•
•
Mutual trust and respect between
Mutual trust and respect between
supervisor and worker
supervisor and worker
•
•
Organizational citizenship behavior
Organizational citizenship behavior
•
©2007 BST, Inc.•All rights reserved. May not be reproduced without written permission \
Dysfunctional Cultures
Dysfunctional Cultures
•
•
Unspoken and frequent undiscussable
Unspoken and frequent undiscussable
arrangements / agreements determine
arrangements / agreements determine
the way things get done
the way things get done
•
•
Values do not guide decision making
Values do not guide decision making
•
•
Ethics expectations become blurred
Ethics expectations become blurred
•
•
Behind
Behind
-
-
the
the
-
-
scenes conflicts stand in the
scenes conflicts stand in the
way of getting work done effectively and
way of getting work done effectively and
efficiently
efficiently
•
•
People wonder why leaders
People wonder why leaders
“
“
can
can
’
’
t see what
t see what
we see
we see
”
”
and feel that
and feel that
“
“
things are harder
things are harder
than they should be
Leader-Member
Exchange
Procedural
Justice
Perceived
Organizational
Support
Management
Credibility
Organizational Factors
Organizational Factors
Fair decision
Fair decision
-
-
making by
making by
supervisor
supervisor
Organization
Organization
is concerned about needs
is concerned about needs
and interests of employee
and interests of employee
Positive reciprocation between
Positive reciprocation between
supervisor
supervisor
and employee
and employee
Managers
©2007 BST, Inc.•All rights reserved. May not be reproduced without written permission \
Work Group
Relations
.
Team Work
Team Factors
Team Factors
Trust, respect and cooperation
Trust, respect and cooperation
among co
among co
-
-
workers
workers
Planning, communication, and
Planning, communication, and
performance
Approaching
Others About
Safety
Org. Value for
Safety
Upward
Communication
About Safety
Safety Specific Factors
Safety Specific Factors
Attention and resources devoted to
Attention and resources devoted to
safety by
safety by
the organization
the organization
Individuals
Individuals
’
’
willingness to speak up
willingness to speak up
to co
to co
-
-
workers about safety
workers about safety
Encouragement by
Encouragement by
supervisor
supervisor
to
to
bring up safety issues
©2007 BST, Inc.•All rights reserved. May not be reproduced without written permission \
Data Collection
Data Collection
•
•
Survey targeting 100% of the
Survey targeting 100% of the
employee population
employee population
•
•
2 instruments
2 instruments
•
•
Manager
Manager
•
•
Non
Non
-
-
manager
manager
•
•
Scoring 1
Scoring 1
-
-
5
5
•
•
Statistical analysis comparing results
Statistical analysis comparing results
to norms data base
Norms Database
Norms Database
•
•
125,000+ Surveys
125,000+ Surveys
•
•
508 Companies
508 Companies
•
•
~ 25% Chemicals
~ 25% Chemicals
•
•
~ 12.5% Food Processing &
~ 12.5% Food Processing &
Manufacturing
Manufacturing
•
•
~ 10% each (Metals, Mining, Paper,
~ 10% each (Metals, Mining, Paper,
Petroleum, Utilities, & Consumer
Petroleum, Utilities, & Consumer
Products)
Products)
•
©2007 BST, Inc.•All rights reserved. May not be reproduced without written permission www.bstsolutions.com
Case Study 1
Case Study 1
Organizational Factors
Organizational Factors
versus Safety Results
About the Organization
About the Organization
•
•
16 locations
16 locations
•
•
Mix of continuous and batch
Mix of continuous and batch
operations
operations
•
•
Report to same Vice President
Report to same Vice President
•
•
Implemented the same EHS systems
Implemented the same EHS systems
•
•
Mix of union/non
Mix of union/non
-
-
union (was not a
union (was not a
factor in the survey scores)
©2007 BST, Inc.•All rights reserved. May not be reproduced without written permission \
Combined
Combined
Overall Percentile by Scale
Overall Percentile by Scale
48
51
64
60
60
60
65
68
77
86
67
72
86
Percen
tile 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
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
TCIR 2.0
Site 1
Site 1
Overall Percentile by Scale
Overall Percentile by Scale
TICR
TICR
–
–
.8
.8
89
83
87
86
90
89
87
88
94
98
86
96
99
Percen
tile 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
©2007 BST, Inc.•All rights reserved. May not be reproduced without written permission \
Site 2
Site 2
Overall Percentile by Scale
Overall Percentile by Scale
TICR
TICR
–
–
1.4
1.4
83
83
84
68
81
41
31
39
88
88
92
94
88
Percen
tile 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
Site 3
Site 3
Overall Percentile by Scale
Overall Percentile by Scale
TICR
TICR
–
–
4.2
4.2
30
29
44
61
44
18
17
18
84
88
43
74
47
Percen
tile 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
©2007 BST, Inc.•All rights reserved. May not be reproduced without written permission \
Site 4
Site 4
Overall Percentile by Scale
Overall Percentile by Scale
TICR
TICR
–
–
7.8
7.8
6
7
10
16
9
8
17
13
22
25
59
38
47
Percen
tile 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
Case Study 2
Case Study 2
Organizational Factors versus
Organizational Factors versus
Safety Results for
Safety Results for
94 Sites
©2007 BST, Inc.•All rights reserved. May not be reproduced without written permission \
8.5
5.8
4.3
Bottom Third
Middle Third
Top Third
OCDI Aggregate Scores
Averag
e Occup
a
tional Inju
ry
Rate
Organizational Cultural Diagnostic Scores
Organizational Cultural Diagnostic Scores
Predict Injury Rates
Predict Injury Rates
94 sites
2.2
1.5
1.1
Averag
e Occup
a
tional Inju
ry
Rate
Organizational Cultural Diagnostic Scores
Organizational Cultural Diagnostic Scores
Predict Injury Performance for Sites with Rates
Predict Injury Performance for Sites with Rates
less than 3.0
©2007 BST, Inc.•All rights reserved. May not be reproduced without written permission \
Why the Diagnostic is not always
Why the Diagnostic is not always
predictive of injury rates
predictive of injury rates
•
•
Exposure varies due to:
Exposure varies due to:
•
•
Culture
Culture
•
•
Type of Work
Type of Work
•
•
Work Pace
Work Pace
•
•
Robustness of Safety Enabling Systems
Robustness of Safety Enabling Systems
–
–
What programs
What programs
–
Case Study 3
Case Study 3
Organizational Functioning
Organizational Functioning
Versus Productivity and Cost
©2007 BST, Inc.•All rights reserved. May not be reproduced without written permission \
About the Organization
About the Organization
•
•
13 Extrusion plants.
13 Extrusion plants.
•
•
Raw material and energy cost consistent
Raw material and energy cost consistent
•
•
Data available to analyze included:
Data available to analyze included:
•
•
manufacturing costs,
manufacturing costs,
•
•
production quantities,
production quantities,
•
•
quality costs,
quality costs,
•
•
payroll,
payroll,
•
•
workers
workers
’
’
compensation costs,
compensation costs,
•
•
incident rates, and
incident rates, and
•
Average OCDI scores versus Unit Produced per Employee
Average OCDI scores versus Unit Produced per Employee
1,215
1,522
Units M
a
nu
factured
Per Employ
ee 2005
YTD
©2007 BST, Inc.•All rights reserved. May not be reproduced without written permission \
t(11) = .49, p<.05
LMX versus Unit Produced per Employee
LMX versus Unit Produced per Employee
0
500
1000
1500
2000
2500
0
10
20
30
40
50
60
70
80
90
100
June 2005 Leader-Member Exchange Percentile Score
Units M
a
nu
factured
Per Employ
ee 2005
YTD
Teamwork versus Unit Produced per employee
Teamwork versus Unit Produced per employee
0
500
1000
1500
2000
2500
Units M
a
nu
factured
Per Employ
ee 2005
YTD
©2007 BST, Inc.•All rights reserved. May not be reproduced without written permission \
t(11) = .50, p<.05
Workgroup Relations versus Unit Produced per Employee
0
500
1000
1500
2000
2500
0
10
20
30
40
50
60
70
80
90
100
June 2005 Work Group Relations Percentile Score
Units M
a
nu
factured
Per Employ
ee 2005
YTD
Average OCDI Scores versus Costs per 1000 units
Average OCDI Scores versus Costs per 1000 units
$108.36
$94.50
Total cost per msbe 2005 YT
©2007 BST, Inc.•All rights reserved. May not be reproduced without written permission \
t(11) = -.575, p<.05
LMX Exchange versus Cost per 1000 Units Produced
LMX Exchange versus Cost per 1000 Units Produced
0
20
40
60
80
100
120
140
160
180
0
10
20
30
40
50
60
70
80
90
100
June 2005 Leader-Member Exchange Percentile Score
Total cost per msbe 2005 YT
How do you improve
How do you improve
Organizational Functioning?
©2007 BST, Inc.•All rights reserved. May not be reproduced without written permission \
Working
Interface
Worker
Worker
Facilities and
Equipment
Procedures
Safety
Enabling
Elements
Hazard recognition
Hazard recognition
& mitigation
& mitigation
Skills, knowledge
Skills, knowledge
& training
& training
Policies & standards
Policies & standards
Exposure reduction
Exposure reduction
mechanisms
mechanisms
Organizational
Sustaining
Systems
Selection &
Selection &
development
development
Structure
Structure
Performance
Performance
management
management
Rewards and
Rewards and
Recognition
Recognition
Organizational
Organizational
Culture
Culture
Leadership
Blueprint for
Blueprint for
Safety
Safety
Transformation
Transformation
Blueprint for Safety Transformation is
Vision
Vision
Credibility
Credibility
Collaboration
Collaboration
Feedback &
Feedback &
Recognition
Recognition
Accountability
Accountability
Communication
Communication
Action Oriented
Action Oriented
1.
1.
Procedural justice
Procedural justice
2.
2.
Leader
Leader
-
-
member exchange
member exchange
3.
3.
Management credibility
Management credibility
4.
4.
Perceived organizational support
Perceived organizational support
Organizational Factors
Organizational Factors
5.
5.
Work group relations
Work group relations
6.
6.
Teamwork
Teamwork
Team Factors
Team Factors
7.
7.
Organizational value for EHS
Organizational value for EHS
performance improvement
performance improvement
Safety Factors
Safety Factors
SAFETY LEADERSHIP
SAFETY LEADERSHIP
BEST PRACTICES
BEST PRACTICES
Path to a Zero
©2007 BST, Inc.•All rights reserved. May not be reproduced without written permission \
0
10
20
30
40
50
60
70
80
90
100
PJ
LMX
MC
POS
OF
TW
WGR
TF
OVS
UC
AO
SF
Factor Results – Before and After Working on Leadership at All Levels
2002
2004
Before and After Results
Before and After Results
Control Chart of Recordable Rate
Control Chart of Recordable Rate
0.0
0.5
1.0
1.5
2.0
2.5
3.0
3.5
4.0
4.5
5.0
Recordable Rate
Leadership
Intervention Begins
©2007 BST, Inc.•All rights reserved. May not be reproduced without written permission www.bstsolutions.com
