ADMINISTRATIVE RISK CONTROL
AND
CONTINUAL IMPROVEMENT
The Maturity Model of Organisations
If you question middle managers and tradespeople in an organisation, you will often discover that its history has been quite chaotic. Usually the organisation has started as a one-person business, or has been set up by government in an unplanned manner.
‘Crisis management’ is still the norm in many large organisations, and can be accompanied by a quite undesirable organisational culture.
The use of a systematic approach to management can provide the impetus for the organisation to ‘mature’. The ‘maturity model of organisations is as follows:
It is considered that many Australian organisations have achieved the ‘planned ‘ level of maturity. Australian Standard 4581:1999 Management System Integration has been published, however most organisations are probably not aware of its existence. Some organisations are attempting to achieve the ‘integrated’ level. No organisation has achieved the ‘optimised’ level.
Continual improvement
Improvement of work practices, where there is no administrative risk control is very difficult. Administrative risk control involves the documentation of work practices as ‘procedures’, this makes the process ‘visible’.
If work practices are not documented, they are subject to change at the whim of managers and others. It is quite common in organisations at the initial and managed levels to manage risk on an ad hoc basis. Managers often make what are properly, policy decisions, often without reference to established standards, and in ignorance of the law, which calls up these standards.
Continual improvement can be achieved as follows:
Total Quality Management
The TQM problem solving activity is based on the Plan, Do, Check, Act cycle.
Nonconformance (Opportunity for Improvement) Report
This report provides means by which system and procedural nonconformances, can be formally addressed by management. Nonconformances can be detected through audit activities, customer complaints or may simply be reported by workers ‘at the coal face’.
It is essential that workers have a mechanism to have their concerns formally addressed, other than resorting to union activity. The implementation of TQM in an organisation should reduce the need for use of the report by team members. However where ‘directive’ management systems prevail, there is often no way for workers to advise the Chief Executive Officer of problems.
This effectively causes ‘lack of control’, over the work activity by the worker, and amongst other things, causes a stressful situation to exist.
An example of this phenomenon occurs in ‘telephone call centres’, where staff may be reduced by management decision, leaving the operator to deal with irate customers, who have been waiting several minutes. It also occurs in hospitals, where medical staff are not empowered to complain about conditions which adversely affect patients.
Industrial Democracy
To date industrial democracy in Australia has been representative democracy, that is, to have concerns addressed by management the worker must join a union, and request the union representative to act on his/her behalf. The use of the Nonconformance (Opportunity for Improvement) Report, and TQM offer a means of implementing participative democracy.
The implementation of participative democracy involves changing the paradigm to one, which is risk conscious, proactive, and empowering. This can be achieved by:
Alan Cotterell
Acotrel Risk Management Pty Ltd18th September 1999