Question

In: Operations Management

4. "The first duty of business is to survive and guiding the principle of business economics...

4. "The first duty of business is to survive and guiding the principle of business economics is not the maximization of profit ... it is the avoidance of loss" (Peter Drucker).
a. Explain the meaning of the above statement related to the study of ergonomics, OSH (Industrial Occupational Health and Safety), productivity and quality of work in the industry. How can you associate work accidents with industry competitiveness (idle / delay, profit vs loss, etc.)?
b. As is the case with production / operational management; the implementation of -Occupational Health and Safety management (Safety and Health Management System, OSHA, ISO 1800) is equally important and has strategic value for the industry. Agree to you, give an explanation and do not forget to give a concrete example.

Solutions

Expert Solution

a. OSH refers to complying with the safety standards set by the authoring institutions upon several organizations. Safety is the primary responsibility of the organisation to promote the wellness of employees. Providing adequate safety standards, reduction in workplace stress, automated machine implementation, easy access to exit doors, availability of safety equipment for the employees who come in contact with hazardous products, are the several steps to be taken by the organization to ensure workplace safety.

Workplace ergonomics aids in designing the workplace. Poor ergonomics may lead to a loss of productivity among employees. Thus ergonomics plays a vital role in employee performance. The skilled labours are the efficient resources of any organization. Competitiveness can be improved by better contribution of each employee through increased workplace ergonomics. Some benefits of ergonomics are:

  1. Helps in employee engagement
  2. Safety in the workplace
  3. Improves productivity and quality of work
  4. Provides work flexibility.

Ergonomics analysis should be conducted effectively to ensure employee participation. To reduce workplace accidents, frequent assessment should be conducted. It develops the confidence of employees in workplaces which in turn results in productivity. workplace accidents occur mainly in manufacturing sectors. The number of fatalities can be reduced by effectively reporting the limitations of workplace safety standards. Providing flexible shifts to employees increases their mental stability. The type and function of business also impact workforce stability.

b. All production companies are liable to follow the OSH standards. The cost of work-related ailments are high and cannot be fulfilled by small sector companies. Efficient audit on safety reduces the absenteeism among employees, reduces health care amount, retention of employees, and also reduces the mental pressure on employees. This provides a competitive advantage for the organisation in employee empowerment.  

For example, In several organisations, labour unions fight for employee protection. Lack of maintenance in safety standards costs a lot to the company which includes loss of skilled labour, reduced productivity, loss of business reputation. Employees are exposed to several hazardous objects and situations during construction. The risks should be critically evaluated and employees should be trained to keep the workplace devoid of dangerous objects and inform the authorities in case of emergencies.  


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