Reference no: EM133197247

Operations Management

Risk Management and the HR Executive Today's HR professional acts as a partner with line management to solve important problems and contribute positively to the company's bottom line. This HR-business unit partnership ensures that HR objectives are in line with the organization's overall strategy. The alignment of the human element of the organization and its strategic objectives ensures that the organization maintains its competitive edge by addressing key issues such as time-to-market and productivity. A constant in today's corporate culture is change. With change comes an increase in risk. It is imperative that today's HR executives have an awareness and understanding of these risks. This understanding can enhance their organization's efficiencies by proactively working to avoid and prepare for these risks. HR executives are increasingly partnering their skills with those of their peers in the Risk Management profession. And for good reason. There are human resources and social issues involved in each and every business venture from the small local software start-up to the re-organization of a global Fortune 500 organization. Donald Norris of Norris & Associates says, "I have spent over 25 years in Human Resources Management, the last 10 years specializing in Risk Management. With the possible exception of casualty losses caused by natural disasters, I can think of no other risk exposure that does not include a human element. Even natural disasters can be mitigated by proper loss prevention techniques developed and implemented by staff or contractors." Norris continues, "I am convinced that the underlying cause of virtually every loss is human error somewhere within the system. Unfortunately, most can be laid at the feet of management. For example: Product Liability claims: improper design, materials, construction, operation and/or maintenance. Director's & Officer's Errors and Omissions claims: someone was negligent or failed to pursue due diligence. And the current hot issue, Employment Practices Liability: improper selection, training, coaching; policy & procedure development; ignoring employee complaints of harassment or discrimination; arbitrary termination procedures. All of the above add up to a need to re-vamp your human resources function. The two fields have to work hand in glove." Norris, concludes, "One final example that I believe many organizations overlook is disability management. Organizations have been so concerned with the rising cost of workers' compensation that they forget it is only one element in the total disability management costs of an organization. By combining the efforts of HR & Risk Management the organization has the capability of looking at the broad picture and creating accountability for managing its total loss exposure...

QUESTION 2

According to the article, poorly carried out employment practices are the reason for an organization to experience loss.

(a) For training to be successful HR executives need to be aware of an important legislation. Discuss the importance and purpose of this legislation to HR executives

(b) Complete a report for HR executives at a company you have joined , discussing the importance of training and discuss how training of employees can be beneficial to HR executives in reducing 'human error'