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Need for safety
1. Cost Saving: Two type of costs are incurred by the management when an accident occurs. There are the direct costs in the form of compensation payable to dependents of he victim if the accident is fatal and medical expenses incurred in treating the patient if the accident is non fatal. The management, however is not liable to meet the direct costs if the victim is insured under the ESI scheme. When the victim is uninsured, condensation and medical expenses are the responsibility of the management. Here is the cost of risk management which he management must bear.
More serious than the direct costs are the direct of hidden costs which he management cannot avoid. In fact the indirect costs are three to four times higher than the direct costs. Hidden costs includes loss on account of down time of operators, slowed up production rate of other workers materials spoiled and labor for cleaning and damages to equipment.
2. Increases Productivity: Safety plant are efficient plans. To a large extent, safety promotes productivity. Employees in safe plants can devote more time to improving the quality and quantity of their output and spend less time worrying about their safety and well being.
3. Moral: Safety is important on human grounds too. Managers must undertake accident prevention measures to minimize he pain and suffering the injured worker and his her family are often exposed to as a result of the accident. An employee is a worker in the factory and the bread winner for his her family. The happiness of his her family depends upon the health and well being of he worker.
4. Legal: There are legal reasons too for undertaking safety measures there are laws covering occupational health and safety and penalties for non compliance have been quite severe, the responsibility extends to the safety and health of the surrounding community too.
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