Current State of Human Factors Knowledge in Slovakia and Barriers, Which Need to be Removed

to Improve Human Performance, 30th – 31th October 2003 Bratislava

THE ROLE OF TOP MANAGEMENT IN BUILDING SAFETY THE ROLE OF TOP MANAGEMENT IN BUILDING SAFETY

EXCELLENCE AND OPTIMIZING HUMAN PERFORMANCEEXCELLENCE AND OPTIMIZING HUMAN PERFORMANCE

Anton VAČKO, Human Resources Manager, Kappa Štúrovo, a.s.

Current State of Human Factors Knowledge in Slovakia and Barriers, Which Need to be Removed

to Improve Human Performance, 30th – 31th October 2003 Bratislava

ITEMS

1. THE DEVELOPMENT OF THE WAY OF THINKING AND

ATTITUDES TOWARDS SAFETY MANAGEMENT ISSUES IN

SLOVAK ENTERPRISES AFTER THE YEAR 1989

2. IT IS ALL ABOUT CORPORATE CULTURE

3. THE ROLE OF TOP MANAGEMENT IN MANAGING CHANGES IN

EMPLOYEE´S WAY OF THINKING, ATTITUDES AND BEHAVIOUR

4. EXPERIENCE WITH CORPORATE CULTURE CHANGES IN

KAPPA ŠTÚROVO, A.S.

Current State of Human Factors Knowledge in Slovakia and Barriers, Which Need to be Removed

to Improve Human Performance, 30th – 31th October 2003 Bratislava

■ Today´s Slovak management spent their early youth and most of their studies during the socialist regime

■ The thinking of middle and older generations was formed in „socialistic attitudes to work“

■ The limiting factor was, and still is, the attitude towards property

We lived under the illusion that „all property is held in common“

It was accepted that everybody must defend socialist property but hardly anybody did (stealing, frauds, ...)

Corporate management underestimated risk management issues – just a few special departments existed (often working formaly)

THE DIFFERENCES IN THE WAY OF THINKING AND ATTITUDES I.

Current State of Human Factors Knowledge in Slovakia and Barriers, Which Need to be Removed

to Improve Human Performance, 30th – 31th October 2003 Bratislava

■ Similar attitudes towards employee´s health care and work related accidents Fulfilling the plan was „dogma“, real working conditions and size

of risks were forged

Working accidents were taken as natural and unavoidable

Transition to the market economy was not, and still isn´t, carried out at appropriate levels - concerning the treatment of employees

■ The majority of employees are very slowly beginning to change their attitude towards company property and its technologies

THE DIFFERENCES IN THE WAY OF THINKING AND ATTITUDES II.

Current State of Human Factors Knowledge in Slovakia and Barriers, Which Need to be Removed

to Improve Human Performance, 30th – 31th October 2003 Bratislava

„The enterprise used to belong to communists but today it belongs to capitalists. We have been exploited by all of them...“

The conditions in some enterprises became even worse – the owners worship only profit and employees only high wages and salaries

Earnings often prevail over safety, employees health, property loss (insured) and environmental damage

Unemployment has a very negative influence too – often misused

People often do not care (Just tell me what to do and I will...)

THE DIFFERENCES IN THE WAY OF THINKING AND ATTITUDES III.

Current State of Human Factors Knowledge in Slovakia and Barriers, Which Need to be Removed

to Improve Human Performance, 30th – 31th October 2003 Bratislava

■ Within the last few years some Slovak enterprises have been

starting to deal more effectively with risk management issues

– mostly under the influence of their international corporations

■ There is also big pressure from insurance companies

■ Risk management issues are becoming a substantial part

of company visions and missions, and are being incorporated

into company culture and company image

THE CURRENT OPINIONS OF RISK MANAGEMENT AND H&S I.

Current State of Human Factors Knowledge in Slovakia and Barriers, Which Need to be Removed

to Improve Human Performance, 30th – 31th October 2003 Bratislava

Barriers to the incorporation of Risk management into

company culture depends on:

International corporation – if Risk Management Policy belongs to their priorities or not

Whether the company is already consolidated and restructured. When not, company management priorities are somewhere else

Subjective, the human factor – is company management willing and able to grasp and realize Risk management ideas?

THE CURRENT OPINIONS OF RISK MANAGEMENT AND H&S II.

Current State of Human Factors Knowledge in Slovakia and Barriers, Which Need to be Removed

to Improve Human Performance, 30th – 31th October 2003 Bratislava

IT IS ALL ABOUT CORPORATE CULTURE

„Fifteen years ago, I would have said that if you want to bring about change, you need to understand corporate culture along with the company's products, markets, financials and human resources.” “Now, if you want to change an institution, I would say it's all about corporate culture."Luis V. Gerstner, long-time CEO and president of IBM, October 2002.

Corporate culture definition:

CORPORATE CULTURE IS THE BELIEF, VALUES AND SYMBOLSTHAT A COMPANY USES TO DEFINE ITSELF.

IT'S ABOUT PEOPLE AND HOW THEY GO ABOUT DOING THEIRWORK AND RELATING WITH EACH OTHER.

Current State of Human Factors Knowledge in Slovakia and Barriers, Which Need to be Removed

to Improve Human Performance, 30th – 31th October 2003 Bratislava

CORPORATE CULTURE AND COMPANY MANAGEMENT TEAM

MD and MT members – critical factor in creating and

maintaining corporate culture

CC must be addressed in the organization's mission, vision,

and goal statements, and emphasized in company

communication

Only company management can implement values like

safety and health care into the company culture

Critical question is – how to do it?

Current State of Human Factors Knowledge in Slovakia and Barriers, Which Need to be Removed

to Improve Human Performance, 30th – 31th October 2003 Bratislava

EXAMPLES FROM KAPPA STÚROVO, a.s.

Kappa Stúrovo, a.s. – Pulp and Paper producing company, part of international Kappa Packaging company (The Netherlands)

Production: 185 ths. tons of fluting (paper on corrugated layers of corrugated board), plus different types of boards

Turnover: 80 mil. EUR/Year

Profit (EBITDA): 16 Mio. EUR (2002)

Number of employees – 700

Export: 80 % (Spain, Italy, France, Denmark, Czech rep., ...)

ISO 9001, ISO 14 001, OHSAS 18 001

Current State of Human Factors Knowledge in Slovakia and Barriers, Which Need to be Removed

to Improve Human Performance, 30th – 31th October 2003 Bratislava

KAPPA ŠTÚROVO, a.s.

Current State of Human Factors Knowledge in Slovakia and Barriers, Which Need to be Removed

to Improve Human Performance, 30th – 31th October 2003 Bratislava

EXAMPLE – CORPORATE CULTURE (VISION)

Kappa Stúrovo - Company VISION of 2000:

„The main goal of the company is to take over the leading position

in our segment of the European paper industry.

From this dominant position we would be able to achieve a higher

shareholder value evidenced by a return on net operating assets (RoNA)

comparable with the best in our industry.

We will, through long term relationships, permanently supply our clients

with products of a declared quality.

Additionally we will provide our customers with satisfactory services and

meet their needs. We will also take into account the increasing demand for

environmental protection.

We would also like to be the most attractive employer within the Slovak

paper industry“

Current State of Human Factors Knowledge in Slovakia and Barriers, Which Need to be Removed

to Improve Human Performance, 30th – 31th October 2003 Bratislava

INBETWEEN

This company (at that time) AssiDomän was taken over by

Kappa Packaging – in 2001

One of the priorities – Health and Safety, Risk management

Launched: Company H&S Policy, Risk management Policy,

Crisis managemnet Policy, ...

2001 – Training in H&S led by DuPont

Company management started to deal with these issues

very seriously

Current State of Human Factors Knowledge in Slovakia and Barriers, Which Need to be Removed

to Improve Human Performance, 30th – 31th October 2003 Bratislava

EXAMPLE – CORPORATE CULTURE (VISION)

Kappa Stúrovo – Company VISION of 2002:

„As part of an international company to take over the leading position

in our segment and maximally use existing potential.

To deliver goods to our custommers steadily in the long run and declare

quality services with more solutions. Through all activities to respect the

increasing demand for environmental protection.

To be the most attractive employer within the Slovak paper industry and

as one of the highest priorities to consider safety and employee´s health

protection“.

Current State of Human Factors Knowledge in Slovakia and Barriers, Which Need to be Removed

to Improve Human Performance, 30th – 31th October 2003 Bratislava

November 1993 - Big fire on Paper Machine No. 3

Fire caused by sparks during welding on the ceiling

The building and PM nearly completely damaged

The fluting production stopped for approx. 6 months and then

had to be rebuilt and renovated

496 employees lost their jobs

Company lost some customers

About 200 empoloyees were taken back after the event

EXAMPLE – LEARNING BY EXPERIENCE

Current State of Human Factors Knowledge in Slovakia and Barriers, Which Need to be Removed

to Improve Human Performance, 30th – 31th October 2003 Bratislava

Consequences of 1993 fire on management and employee´s

behaviour

Fire protection became extremely important and respected

Company took many measures and precautions in this respect

Company fire brigade improved its work substantially

Employee´s behaviour changed - became very careful

regarding fire prevention...

Unfortunately, this attitude regarded only fire, not H&S.

EXAMPLE – LEARNING BY EXPERIENCE

Current State of Human Factors Knowledge in Slovakia and Barriers, Which Need to be Removed

to Improve Human Performance, 30th – 31th October 2003 Bratislava

15 years ago - Health & Safety Protection issues were in place

Company followed all regulations Work Safety Committee existed and worked All PPE given to employees Trade union H&S representatives in operational

departments Reports on results in H&S regularly in management

meetings ...

but THE NUMBER OF ACCIDENTS WAS STILL VERY HIGH

EXAMPLE – IMPLEMENTED BY MANAGEMENT I.

Current State of Human Factors Knowledge in Slovakia and Barriers, Which Need to be Removed

to Improve Human Performance, 30th – 31th October 2003 Bratislava

Number of accidents (WWC) development in Kappa Stúrovo

EXAMPLE – FORCED BY MANAGEMENT II.

75 7667

46 49 47

20 20 16 19 21

7 5 6

0

10

20

30

40

50

60

70

80

1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003*

Number of accidents (WDC)

PRIVATIZATION

OUTSOURCING OF MAINTENANCE

KAPPA „FOCUS“

Current State of Human Factors Knowledge in Slovakia and Barriers, Which Need to be Removed

to Improve Human Performance, 30th – 31th October 2003 Bratislava

Only fatal accidents were taken seriously

Company did not have to pay salaries during illness (only the state)

Company could do without ill employees (overemployment)

Employees misused accidents (got extra money, could stay and work at home, private accidents claimed as working accidents...)

No efficient system of working procedures, poor state of equipment, poor technology...

EXAMPLE – REASONS WHY SO MANY ACCIDENTS

Current State of Human Factors Knowledge in Slovakia and Barriers, Which Need to be Removed

to Improve Human Performance, 30th – 31th October 2003 Bratislava

Focus on Corporate culture

Cleanliness, tidiness and order

Integrated Systems (ISO, OHSAS)

Influence on employees behaviour

Ethic code

Personal example set by MT´s

Internal audits (advising, not punishing)

Communication (newsletter, intranet, working meetings, ...)

EXAMPLE – TOP MANAGEMENT ROLE IN KAPPA STÚROVO

Current State of Human Factors Knowledge in Slovakia and Barriers, Which Need to be Removed

to Improve Human Performance, 30th – 31th October 2003 Bratislava

THERE IS NO DIFFERENCE AMONG EMPLOYEE´S POTENTIAL

TO ACCEPT CHANGES IN ANY SLOVAK COMPANY

ALL PEOPLE CAN LEARN - BUT SOMEBODY MUST SUPERVISE

IT IS NECESSARY TO CAHNGE BEHAVIOUR AND THE WAY OF

THINKING (ATTITUDES)

BY CREATING APPROPRIATE CONDITIONS YOU CAN CHANGE

EMPLOYEES OPINION IN RELATION TO THE COMPANY

COMPANY MANAGEMENT MUST TAKE RESPONSIBILITY

SOCIAL-ECONOMIC SITUATION AND THE WHOLE

ATMOSPHERE HAS BIG INFLUENCE ON BARRIERS TOO...

CONCLUSIONS(How to remove barriers)

Current State of Human Factors Knowledge in Slovakia and Barriers, Which Need to be Removed

to Improve Human Performance, 30th – 31th October 2003 Bratislava

THANK YOU VERY MUCH

FOR YOUR ATTENTION