The impact of people risks on any organisation, and potential, strategies to mitigate those risks : a literature review

Stramrood, Zander (2008-03)

Thesis (MBA)--Stellenbosch University, 2008.

Thesis

ENGLISH ABSTRACT: Organisations are under constant pressure to perform and meet shareholders' demands and expectations, Whether it is a global, national, regional or entrepreneurial enterprise, the management team need to ensure that the operations are run effectively and efficiently. People or human resource related risks are being recognised more often as having a potentially high impact on meeting company objectives. Leaders have realised that human resources remain one of the most important assets, if not the most important, of the company. Employees on the other hand have realised that companies are willing to reward them according to value added, and are often using this to their advantage. Employers need to be aware of the risks associated with their workforce and manage it in order to mitigate the risks and limit the consequences. Various types of people risks have been identified by academics and professionals, often classified into different categories. People risks which are not managed effectively may pose a moral, social, legal and/or environmental burden on the business, shareholders as well as leadership. This study involves a literature study as well as a survey to determine the impact which these risks may have on different types of businesses, and their ability to meet organisational objectives. The literature study focuses on 30 different people related risks, categorised into physical risks as well as non-physical risks. Each risk has been explored in the study, reflecting different opinions as well as potential consequences if not managed effectively. The survey conducted amongst risk management practitioners and consultants reflects personal opinions regarding the level of impact which a risk may have on meeting organisational objectives. Each respondent had the opportunity to rank a risk as having either a high, medium or low impact on meeting objectives. The survey concluded that certain non-physical risks featured very prominently as being high risks, while the physical risks were regarded as medium to low risk. HIV/AIDS and occupational injuries were the only two physical risks which featured in the top ten risks according to the survey results. Conclusions drawn from the survey conducted as well as previous research are that three of the top five risks are similar. There is also the possibility that organisational leaders and professional advisors may not always be aware of the people risks associated with business. The potential for further surveys and research is vast, and potential for organisations to become more effective and efficient largely depend on the ability to identify, assess, evaluate and manage risks according to risk management principles. A basic risk management process is explained in the recommendations section, together with a variety of mitigating strategies and suggestions.

AFRIKAANSE OPSOMMING: Organisasies is deesdae onder voortdurende druk om te presteer en aan aandeelhouers se eise en verwagtinge te voldoen. Dit maak nie saak of dit 'n globale, nasionale, streek- of entrepreneursaak is nie, die bestuurspan moet verseker dat die bedrywighede effektief en doeltreffend bestuur word. Menslikehulpbron-verwante risiko's word al meer geag 'n potensieel hoë impak te hê op maatskappye se vermeë om doelwitte te bereik. Leiers het besef dat menslike hulpbronne een van die belangrikste bates van die maatskappy bly, indien nie die belangrikste nie. Werknemers het weer besef dat maatskappye bereid is om hulle te vergoed ooreenkomstig waarde toegevoeg, en gebruik dit dikwels tot hul voordeel. Werkgewers behoort bewus te wees van die risiko's verbonde aan hul arbeidsmag en dit so te bestuur dat die risiko's verminder en die gevolge beperk word. Verskillende tipes menslike risiko's is al deur akademici en professionele persone geïdentifiseer en hulle word dikwels in verskillende kategorieë geklassifiseer. Menslike risiko's wat nie effektief bestuur word nie, kan morele, sosiale, wetlike en/of omgewingstremmings plaas op die besigheid, aandeelhouers sowel as die bestuur. Die studie behels 'n omvattende literatuurstudie sowel as 'n opname om die moontlike impak te bepaal van hierdie risiko's op verskillende tipes besighede en hul vermoë om sakedoelwitte te bereik. Die literatuurstudie fokus op 30 verskillende menslike risiko's wat as fisiese en nie-fisiese risiko's gekategoriseer word. Elke risiko is in die studie ontleed, en verskillende sienings en potensiële gevolge indien die risiko nie bestuur word nie, word verduidelik. Die opname wat onder risikobestuurpraktisyns en -konsultante gedoen is, weerspiëel persoonlike menings aangaande die graad van die impak wat 'n risiko op die bereiking van organisasiedoelwitte kan hê. Elke respondent het die geleentheid gehad om die risiko's te evalueer en aan te dui of dit 'n hoë, medium of lae impak het op die bereiking van doelwitte. Die opname het bevind dat sommige nie-fisiese fisiko's baie prominent uitgestaan het as hoë risiko's, terwyl die fisiese risiko's meestal as medium tot lae risiko's beskou is. MIV/VIGS en beroepsbeserings is die enigste twee fisiese risiko's wat onder die top tien risiko's verskyn het volgens die resultate van die opname. Gevolgtrekkings uit die opname sowel as vorige navorsing dui aan dat drie van die top vyf risiko's soortgelyk is. Die moontlikheid bestaan ook dat besigheidsleiers en professionele adviseurs nie altyd vertroud is met menslike risiko's ten opsigte van die besigheid nie. Die potensiaal vir toekomstige opnames en navorsing is enorm, en die potensiaal van organisasies om meer effektief en doeltreffend te word, hang grootliks af van die vermoë om risiko's volgens risikobestuurbeginsels te identifiseer, te bereken, te evalueer en te bestuur. 'n Basiese risikobestuursproses word in die afdeling met aanbevelings verduidelik, tesame met 'n verskeidenheid van voorkomingstrategieë en -voorstelle.

Please refer to this item in SUNScholar by using the following persistent URL: http://hdl.handle.net/10019.1/18133
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