Commitment and Leadership towards developed Health and Safety Policies in Oil and Gas Industry from Senior Management
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This paper assesses the role of senior management's commitment and leadership in developing health and safety policies in the oil and gas industry. The paper uses primary data collected from employees, management, and supervisors and analyses it using frequency and correlation analysis.
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Running head: RESEARCH METHOD Commitment and Leadership towards developed Health and Safety Policies in Oil and Gas Industry from Senior Management Name of the Student: Name of the University: Author’s Note:
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1 RESEARCH METHOD Abstract This concerned topic has the intention of creating an understanding of how health and safety issues can be developed with the help of the commitment and the leadership of the senior management. The background of the study has highlighted the issues and the risks that are related to the “oil and gas industry”. The aim and the objective of the study along with the hypothesis have looked to discover the aspects that are essential for the construction of the paper. The literature review has addressed the safety aspects and the measures that have been taken by the management in order to improve these activities. Primary data has been used by the researcher by taking the responses of the employees as well as the management and the supervisors. The analysis that has been done with the help of the data explains that leadership and commitment of the senior management is helpful in the mitigation of the “health and safety” issues in the oil industry and the development of better “health and safety” practices within the working environment.
2 RESEARCH METHOD Table of Contents Chapter 1: Introduction....................................................................................................................4 1.1 Background of the Study.......................................................................................................4 1.2 Purpose of the Study..............................................................................................................5 1.3 Aim and objective of the study..............................................................................................5 1.4 Research Question.................................................................................................................6 1.5 Research Hypothesis..............................................................................................................6 Chapter 2: Literature Review...........................................................................................................7 2.1 Factors Affecting Safety Performance...................................................................................7 2.1.1 Human factors.................................................................................................................7 2.1.2 Behavioural factors.........................................................................................................7 2.1.3 Economic factors............................................................................................................7 2.1.4 Psychological Factors.....................................................................................................8 2.1.5 Social Factors..................................................................................................................8 2.2 Management practices of the safety performance.................................................................8 2.2.1 Training...........................................................................................................................9 2.2.2 Rewards..........................................................................................................................9 2.2.3 Management Commitment.............................................................................................9 Chapter 3: Research Methodology................................................................................................10 3.1 Introduction..........................................................................................................................10
3 RESEARCH METHOD 3.2 Research Approach..............................................................................................................10 3.3 Research Design..................................................................................................................10 3.4 Process of data gathering.....................................................................................................10 3.5 Data Analysis Plan...............................................................................................................11 3.6 Ethical Consideration...........................................................................................................11 Chapter 4: Research Methodology................................................................................................12 4.1 Frequency Analysis.............................................................................................................12 4.2 Reliability............................................................................................................................16 4.3Correlation......................................................................................................................17 Chapter 5: Conclusion and Recommendation...............................................................................20 5.1 Conclusion...........................................................................................................................20 5.2 Recommendation.................................................................................................................21 Reference List................................................................................................................................22 Appendix........................................................................................................................................25 Questionnaire.............................................................................................................................25
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4 RESEARCH METHOD Chapter 1: Introduction The global environment is sustainably making progress towards modernization and it is seen that they have been facing various kinds of challenges. The fast development in the global industries has led to the rise in the concerns on the health and the safety issues at the work environment as it is seen that more and more injuries and accidents have been becoming the newsheadlineworldwide.Thesafetyattheworkenvironmentiscomplexanddifficult phenomenon and the subject of the safety activities among all the industries has been hard and very complex to attain (Silvestre and Gimenes 2017). It is in need of a lot of policies and measures that needs to be incorporated. Furthermore, safety performance is very much sensitive and complicated issue for the companies to handle as it is seen to be associated with the live and safety of the employees who are working in a project. Ahmadet al.(2016) explained that occupational risks and hazards have been increasing mainly due to the absence of attention that is provided to the activities related to safety, safety processes and the developments of the procedures in order to restrict the injuries and accidents. On the other hand, the occupational accidents that take place have been either due to the absence of knowledge, lack of supervision, training and the rules that are associated to the incorporation of these procedures. Furthermore, human errors have led to the carelessness of the employees, negligence and lack of controlling and monitoring (Klettner, Clarke and Boersma 2014). All these factors have an impact on the safety measures and performance and thereby increased the rate of accidents.
5 RESEARCH METHOD 1.1 Background of the Study The extent of safety and health issues has been a major concern in the current time period as it is seen that the safety of the employees working in the companies have been significant issues. The development of the plans and policies in accordance to the safety and health issues are dependent on the level of leadership. The responsibility and the accountability of the leaders andthemanagershaveakeyfunctiontoplaywiththehelpofwhichtheycreatean understanding in accordance to the activities the company performs (Zohar 2014). The activities that are performed in the “oil and gas industry” are associated with a lot of risks and therefore it is the responsibility of the management to undertake measures with the help of which safety and healthissuescanbemaintained.Theextentofleadershipplaysasignificantroleand commitment among the leaders is helpful in the understanding of the risks and hazards associated with the industry with the help of which these issues can be mitigated (Hofmann, Burke and Zohar 2017). This has been the factor that has led to the development of this topic and thereby better understanding of impact of leadership and commitment in the development of the risk and safety issues in the oil industry can be known. 1.2 Purpose of the Study The main intention of the paper has been to assess and comprehend the responsibilities and the role of the leaders and their extent of leadership and commitment of the senior management in the oil industry in order to create a better health and safety policies (Shenet al. 2015). The paper would be even assess the extent of commitment the senior management holds towards the development of the safety and health policies.
6 RESEARCH METHOD 1.3 Aim and objective of the study The aim and the objective that has been constructed for this paper determines the aspects and the elements that have an impact on the safety and the health issues in the “oil and gas industry”. The objectives and aim of the paper is: Assess the extent of commitment the senior management holds towards the development of safety and health policies Understand whether the senior management has been constructing the right tone for their down line in order to follow the footsteps. 1.4 Research Question The research question for this paper has been explained as follows: Q1. What is the extent of commitment the senior management holds towards the development of the safety and health issues? Q2. How does the senior management construct the right tone for their down line in order to follow that footstep? 1.5 Research Hypothesis The hypothesis of the paper has been determined as follows: H1: The commitment of the senior management is vital for the enhancement of the “safety and health” issues in the oil industry H2: The senior management is able to construct the right tone for down lining in order to follow the footstep.
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7 RESEARCH METHOD Chapter 2: Literature Review 2.1 Factors Affecting Safety Performance There are several issues that can have an effect on safety activities as the maintenance of safety at the workplace is a complex process and the issue related to the safety performance in the “oil and gas industry” has been observed to be even more complicated to understand. The factors are therefore discussed as follows: 2.1.1 Human factors Human factor plays a vital role as it is seen that involvement of humans towards the safety attitude and their nature in order to understand how humans deal with these aspects. The safety of the workplace can be enhanced when the employees give significance to the safety measures and this is how they create an understanding of enhancing the safety scenario (Gholami et al.2015). 2.1.2 Behavioural factors This is known to be the employee performance and motivation development with the help of the constraints of behaviour. The behaviour base safety is known to be the behaviours, which may lead to the mitigation of the risk behaviours and as an outcome mitigate the extent of injuries and accidents.Kouabenan, Ngueutsa and Mbaye(2015) explained that the employees who have riskier attitude are more prone to facing accidents in the workplace. 2.1.3 Economic factors By leaving behind the human expense of facing an accident, the economic impact can be dangerous. It is seen that a lot of working hours are lost due to the accidents that are taking place
8 RESEARCH METHOD in the work place (Zwetsloot, Leka and Kines 2017). This leads to the rise in the cost of maintaining the employees and therefore the indirect cost increases for the company. 2.1.4 Psychological Factors Thepsychologyoftheemployeesisavitalfactorthatcontributestothesafety performance.Wan Ahmad, de Brito and Tavasszy(2016) explained that psychology of the employees is very much complicated and therefore it depends on the fact that the employees will perform more safely with the supervisors who is regarded to be someone who respects their employeesandtheyundertaketheiractivitiesinaccordancetothecompanypoliciesin accordance to the safety activities. 2.1.5 Social Factors The social and the individual factors are the element of risk which is dependent in the motivation in order to face the risks and avoid the risk altogether and is known to be one of the effective determinants of safety which is associated to behaviour (Jitwasinkul, Hadikusumo and Memon 2016). The risks which deals with the unsafe and the safe practices is dependent on the cognitive biases related with the safety of the employees who are going through risks, which takes place in a rational manner but this evaluation of risk is not realistic, in an outcome that is creating increased amount of risk and increased level of accidents and injuries lead to death. 2.2 Management practices of the safety performance The management processes are focusing in order to prevent the occupational accidents at the workplace, which is regarded to be a process to control the accidents taking place at the workplace.LiangandRenneboog(2017)haveexplainedthatmanagementpracticesare significant factors for a company and it plays an efficient role in mitigating the injuries and the accidents in the workplace.Kirat(2015) cited that management practices are able to create safety
9 RESEARCH METHOD culture.Themanagementpracticesthatareconstructedbythemanagementconsistsof commitment of the management, training and rewards. These aspects have been discussed as follows: 2.2.1 Training The training that is given to the employees is contributing factor as it is seen that proper training to the employees would improve their knowledge with respect to the health and safety issues (Hugheset al.2015). This encourages the employees to take decisions in association to the safety concerns and these decisions are undertaken by the entire company in order to improve their level of performance and development of the health and safety plans. 2.2.2 Rewards The rewards that are provided to the employees is helpful in creating motivation to the employees. The development of motivation among the employee encourages them to undertake training and awareness programmes with the help of which they are able to understand the health and safety issues and thereby learn the policies with the help of which the accidents and injuries within the working environment can be reduced (Finnertyet al.2017). 2.2.3 Management Commitment The commitment of the management is one of the key factors as the aspects and the leadership that are undertaken by the management determines the efficiency level of the “safety and health issues” in the oil industry. The commitment of the management towards the health and safety issues is helpful in determining the costs that are related to injuries and thereby plan and construct plans and policies with the help of which these issues can be developed (Georgeet al.2016).
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10 RESEARCH METHOD Chapter 3: Research Methodology 3.1 Introduction This segment determines the kind of data that would be utilised in order to attain the result that is desirable in accordance to this topic. It is due to this fact that the methodology would be explain the approach, design and the data gathering process so that the effectiveness and the reliability of the data can be ascertained and thereafter data analysis can be undertaken. 3.2 Research Approach The researcher in this paper is in need of theories and frameworks that would be utilised in order to collect the desired data (Pilbeamet al.2016). The researcher in accordance to the current topic has implied deductive approach simply due to the fact that models and theories that have earlier been utilised would be used and no new theories and frameworks have been constructed by the researcher for this paper. 3.3 Research Design The design refers to the ideology that would be utilised with the help of which an idea about the effect of leadership and commitment on the “safety and health” issues in the “oil and gas industry” would be understood (Kaynaket al.2016). In this manner descriptive reserach design is selected so that all the aspects would be explained descriptively in order to gain an idea on the topic. 3.4 Process of data gathering In this paper, primary data would be used and therefore respondents would be selected from a large pool of people. The researcher has selected the respondents from the employees as
11 RESEARCH METHOD well as management personnel so that feedback from the employees as well as the management in accordance to this topic can be understood (Mendeset al.2014). Quantitative data would be used for this paper and therefore closed ended questionnaire has been prepared and responses would be collected with the help of the same. A total of 35 respondents have been selected and their responses would be used for the purpose of analysis. 3.5 Data Analysis Plan The analysis of the data would be done with the help of Microsoft Excel and the analysis would be done in order to reach a result that would be used to construct the conclusion of the paper and desired outcome is achievable. 3.6 Ethical Consideration The researcher has abided with the ethics and therefore true and valid resources have been used with the help of which the authenticity of the results are attainable and fair results can be achieved (Guo, Yiu and González 2016).
12 RESEARCH METHOD Chapter 4: Research Methodology This section would assess the data that has been collected and conclusion of the paper can be attained with the help of which the extent of leadership and commitment towards the safety and health issues in the oil industry would be understood. It is due to this fact that frequency analysis as well as correlation and reliability test would be done in order to understand in association to the current topic. 4.1 Frequency Analysis The first question is the demographic question and therefore tries to answer the gender of the respondents. It is seen that 62.9% of them are male and the rest of 37.1% are female. The next questions are related to the topic and therefore each one of them have been evaluated in order to have an idea of the topic. The table below addresses all the questions in an effective manner.
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13 RESEARCH METHOD VariableStrongly disagree DisagreeNeutralAgreeStrongly agree Aresafety toolsand equipment availablein theoil industry? 11.4%31.4%22.9%22.9%11.4% Areproper trainings given tothe employees regardingthe healthand safety issues? 14.3%25.7%22.9%22.9%14.3% Is the effective monitoringof the operational activitiesof theoil industries already undertaken? 5.7%25.7%22.9%14.3%31.4% Isthe commitment amongthe leaders present towardsthe development ofthehealth andsafety issues? 8.6%17.1%14.3%28.6%31.4% Isleadership directly related tothe development of better health andsafety policies? 8.6%14.3%17.1%28.6%31.4% Is proper path followedby thesenior management to maintain the healthand safety policies? 8.6%22.9%20%20%28.6%
14 RESEARCH METHOD In accordance to the question that safety tools and equipment are available in the industry, it is seen that most of the respondents disagree to it. The question that is asked in respect to the training given to the employees in accordance to health and safety provides the fact that most of the respondents remain neutral to it. The next question that is asked to the respondents associates to whether effective monitoring of the operational activities within the oil industry is undertaken. The responses reveal that most of the respondents strongly agree to it. The question that is asked to the respondents is related to whether commitment among the management and the leaders are present towards the development of the health and safety issues. The respondents reveal that most of the respondents agree and strongly agree to this question. The respondents even strongly agree and agree to the fact that leadership is directly related to the development of an effective safety and health policies. The respondents are generally agreed to the fact that proper path is followed by the senior management in order to maintain health and safety policies. This indicates that health and safety practices have been maintained moderately by the senior level management in the oil and industry and therefore leadership and commitment among the senior management plays a vital role in the health and safety issues in the oil and gas companies.
15 RESEARCH METHOD
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16 RESEARCH METHOD 4.2 Reliability Reliability Statistics Cronbach's Alpha N of Items .6286 Item Statistics MeanStd. DeviationN Aresafetytoolsand equipmentavailablein the oil industry? 2.911.22235 Arepropertrainings given to the employees regarding the health and safety issues? 2.971.29435 Aretheeffective monitoringofthe operationalactivitiesof the oil industries already undertaken? 3.401.33335 Isthecommitment amongtheleaders presenttowardsthe developmentofthe health and safety issues? 3.571.33535
17 RESEARCH METHOD Isleadershipdirectly relatedtothe developmentofbetter healthandsafety policies? 3.601.31135 Is proper path followed bythesenior management to maintain thehealthandsafety policies? 3.371.35235 The value that is attained in accordance to Cronbach’s Alpha indicates the fact that the data set for the concerned topic is reliable as the value is 0.628 and therefore the value is within 0.6 to 0.9, which signifies that reliability of the data set is maintained and is available and therefore all the variables are reliable in accordance to this topic. 4.3Correlation The correlation analysis is undertaken in order to understand the mutual relationship among all the variables that have been taken into consideration. The table below addresses the correlation analysis of the concerned variables. Correlations Are safety toolsand equipmen t available in the oil industry? Are proper trainings givento the employee s regarding thehealth and safety issues? Isthe effective monitoring ofthe operational activities of theoil industries already undertaken? Isthe commitment amongthe leaders present towardsthe developmen tofthe healthand safety issues? Is leadership directly relatedto the developmen tofbetter healthand safety policies? Isproper path followed by thesenior management tomaintain thehealth andsafety policies? Aresafety toolsand equipment availablein Pearson Correlation1.742**.202.193.125-.016 Sig.(2- tailed) .000.244.266.475.928
18 RESEARCH METHOD theoilN353535353535 Areproper trainings given to the employees regarding the healthand safety issues? Pearson Correlation.742**1.382*.248.028-.027 Sig.(2- tailed).000.024.151.874.876 N353535353535 Isthe effective monitoring ofthe operational activitiesof theoil industries already undertaken? Pearson Correlation.202.382*1.099.414*.258 Sig.(2- tailed).244.024.571.013.135 N353535353535 Isthe commitment amongthe leaders present towardsthe development of the health andsafety issues? Pearson Correlation.193.248.0991.252.058 Sig.(2- tailed).266.151.571.144.740 N353535353535 Is leadership directly related to the development ofbetter healthand safety policies? Pearson Correlation.125.028.414*.2521.368* Sig.(2- tailed).475.874.013.144.029 N353535353535 Isproper path followedby thesenior Pearson Correlation-.016-.027.258.058.368*1 Sig.(2- tailed) .928.876.135.740.029
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19 RESEARCH METHOD management tomaintain thehealth N353535353535 **. Correlation is significant at the 0.01 level (2-tailed). *. Correlation is significant at the 0.05 level (2-tailed). The above table explains that relationship among the tools and the equipment used in the oil industry and proper training to the employees has indicated high correlation. On the other hand proper training and effective monitoring has a moderate and positive correlation. There exists a moderate and positive correlation among effective monitoring and leadership leading to development of health and safety issues in the oil industry. It is even seen that leadership and the path that is followed have moderate and positive correlation and thereby it is seen that all the variables are positively correlated to each other even though most of them are moderately correlated and only one of them is highly correlated to each other. This indicates that leadership and commitment has an essential role to play in the enhancement of the safety and health issues in the oil industries and therefore the management and the leaders should undertake steps and actions in order to enhance the health and safety practices within the working environment of the oil and gas industry.
20 RESEARCH METHOD Chapter 5: Conclusion and Recommendation 5.1 Conclusion The outcome that is attained from the analysis of the data determines that leadership and commitment among the leaders plays a significant factor in the development of the “health and safety practices” in the oil industries. The authenticity of the results can be determined once the outcome has been able to address the constructed hypothesis and the objectives of the paper. It is seen that according to the constructed hypothesis, it is seen that commitment among the senior management is essential for the enhancement of the “safety and health” issues in the oil industry as frequency, reliability and correlation analysis have determined the same. The analysis that has been done even determines the fact that senior management is even able to construct the right tone for down lining in order to follow the footstep so that better and effective practices can be attained. The result has even addressed the objective as it is seen that senior management and their leadership and commitment plays a vital role in the enhancement of the safety health practices in the oil industry. The second objective that looks to discover whether the senior management has been constructing the right tone for the purpose of down lining in order to follow the footsteps and the outcome has indicated the fact that the senior management has created a proper guideline whichcan be followed for the development of a better health and safety performances within the working environment in the oil industry. Hence, the role of the senior management is vital and their commitment and leadership is essential for the development of the safety and health practices in the oil industry.
21 RESEARCH METHOD 5.2 Recommendation The outcome leads to the provision of suggestions that can improve the activities and the operational activities. It is therefore recommended that senior management should undertake awareness programs for their employees in order to empower them and accordingly they can make decisions with the help of which better safety and health issues can be created. It is even recommended that frequent monitoring of the health and safety activities should be done in order to remove the tools and equipment that are obsolete and introduce new tools that would be helpful to the employees as well.
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22 RESEARCH METHOD Reference List Ahmad, W.N.K.W., Rezaei, J., Tavasszy, L.A. and de Brito, M.P., 2016. Commitment to and preparedness for sustainable supply chain management in the oil and gas industry.Journal of environmental management,180, pp.202-213. Finnerty, N., Sterling, R., Coakley, D., Contreras, S., Coffey, R. and Keane, M.M., 2017. Development of a Global Energy Management System for non-energy intensive multi-site industrial organisations: A methodology.Energy,136, pp.16-31. George, R.A., Siti-Nabiha, A.K., Jalaludin, D. and Abdalla, Y.A., 2016. Barriers to and enablers ofsustainabilityintegrationintheperformancemanagementsystemsofanoilandgas company.Journal of cleaner production,136, pp.197-212. Gholami, P.S., Nassiri, P., Yarahmadi, R., Hamidi, A. and Mirkazemi, R., 2015. Assessment of Health Safety and Environment Management System function in contracting companies of one of the petro-chemistry industries in Iran, a case study.Safety Science,77, pp.42-47. Guo, B.H., Yiu, T.W. and González, V.A., 2016. Predicting safety behavior in the construction industry: Development and test of an integrative model.Safety science,84, pp.1-11. Hofmann, D.A., Burke, M.J. and Zohar, D., 2017. 100 years of occupational safety research: From basic protections and work analysis to a multilevel view of workplace safety and risk.Journal of Applied Psychology,102(3), p.375. Hughes, B.P., Newstead, S., Anund, A., Shu, C.C. and Falkmer, T., 2015. A review of models relevant to road safety.Accident Analysis & Prevention,74, pp.250-270.
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24 RESEARCH METHOD Shen, Y., Tuuli, M.M., Xia, B., Koh, T.Y. and Rowlinson, S., 2015. Toward a model for forming psychologicalsafetyclimateinconstructionprojectmanagement.Internationaljournalof project management,33(1), pp.223-235. Silvestre, B.S. and Gimenes, F.A.P., 2017. A sustainability paradox? Sustainable operations in the offshore oil and gas industry: The case of Petrobras.Journal of Cleaner Production,142, pp.360-370. Wan Ahmad, W.N.K., de Brito, M.P. and Tavasszy, L.A., 2016. Sustainable supply chain managementintheoilandgasindustry:Areviewofcorporatesustainabilityreporting practices.Benchmarking: An International Journal,23(6), pp.1423-1444. Zohar, D., 2014. Safety climate: Conceptualization, measurement, and improvement.The Oxford handbook of organizational climate and culture, pp.317-334. Zwetsloot, G., Leka, S. and Kines, P., 2017. Vision zero: from accident prevention to the promotionofhealth,safetyandwell-beingatwork.PolicyandPracticeinHealthand Safety,15(2), pp.88-100.
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25 RESEARCH METHOD Appendix Questionnaire Q1. Gender Male Female Q2. Availability of safety tools and equipment are present in the oil industry Strongly Disagree Disagree Neutral Agree Strongly Agree Q3. Proper training are given to the employees regarding the health and safety issues Strongly Disagree Disagree Neutral Agree Strongly Agree Q4. Effective monitoring of the operational activities of the oil industries are undertaken
26 RESEARCH METHOD Strongly Disagree Disagree Neutral Agree Strongly Agree Q5. Commitment among the leaders is present towards the development of the health and safety issues Strongly Disagree Disagree Neutral Agree Strongly Agree Q6. Leadership is directly related to the development of better health and safety policies Strongly Disagree Disagree Neutral Agree Strongly Agree
27 RESEARCH METHOD Q7. Proper path is followed by the senior management in order to maintain the health and safety policies Strongly Disagree Disagree Neutral Agree Strongly Agree