Occupational safety and health (OSH) practices and operational performance in Malaysian manufacturing sector
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Date
2009-05
Authors
Saad, Mazni
Journal Title
Journal ISSN
Volume Title
Publisher
Universiti Sains Malaysia
Abstract
The manufacturing sector is the backbone of Malaysia's economy. However, accident statistics
for this sector show levels of hazard in the workplace that may reduce the operating ability and
efficiency of a firm and consequently lead to a decrease in performance. Meanwhile, OSH
practices are acknowledged as an important factor in terms of reducing interruptions to
production and eliminating non-added value to business. Thus, the aims of this study are
· threefold. Firstly it will identify the composition of OSH practices, secondly it will determine the
existing OSH practices in manufacturing firms, and thirdly it will examine the relationship
between OSH practices and operational performance. Grounded in the domino and sociotechnical
theories, OSH practices arise from the existing literature, the government's guideline, ·
and the practice review in manufacturing firms. As such they are regarded as critical for optimal
performance and for meeting government expectations. A mixed-methods approach was used to
construct the composition of OSH practices: management commitment, hazard control, training
and education, and continual evaluation. OSH practices are proposed as independent variables
and operational performance as the dependent variable. This research was conducted on all the
·manufacturing firms in Malaysia. Of the 329 questionnaires distributed through the Human
Resource managers of each firm, the response rate was 44%. A total of 143 full-time production
related leaders from supervisory to top management level voluntarily participated in the survey.
The results from the means, standards deviation and one-way ANOV A analyses of descriptive ·
statistics indicated that OSH practices are well established within the manufacturing sector
regardless of industry type, ownership status, employment size, and business duration. The
minimum requirements of Occupational Safety and Health Acts (OSHA) 1994 are also practiced by the firms. The regression results indicated OSH practices significantly relate to operational
performance. This finding further strengthens the theoretical assumptions underpinning the
research framework namely that health and safety practices act as a means to minimize the
conflict between man and machine. OSH practices certainly contribute to business advantage.
The significance of this relationship is supported by this study and this implies that at an
organizational level OSH practices could also be used as the impetus to reduce occupational
accidents and rates of illness. Hence, this complements the government policy as mentioned in
the 91
h Malaysia Plan. This policy is aimed at further enhancing holistic health, creating safer
working environments and generating more income from a less hazardous manufacturing
industry. In summary OSH practices should be considered as an investment with a potentially
positive rate of return for firms in Malaysia.
Description
Keywords
Occupational safety and health, manufacturing sector,