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Guidelines for Managing Process Safety Risks During Organizational Change,9781118379097
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Guidelines for Managing Process Safety Risks During Organizational Change

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Organizational Change Management (OCM) has often been overlooked by regulatory and guideline publications in the past. Documents have historically disregarded the topic, mentioned it in passing, or focused on only a few of its aspects. As a result, major decisions regarding reduction in staffing levels, reorganization of the corporate hierarchy, modifications to shift schedules, or adjustment of personnel responsibilities may often be finalized by individuals or committees who lack the understanding of how these changes may affect the health and safety of their employees or the surrounding community. This book addresses these issues and helps companies bring their OCM systems to the same degree of maturity as other process safety management systems. Topics Include: Corporate Standard for Organizational Change Management, Modification of Working Conditions, Personnel Turnover, Task Allocation Changes, Organizational Hierarchy Changes, and Organizational Policy Changes.

Table of Contents

List of Tables xi

List of Figures xiii

Files on the Web Accompanying This Book xv

Acronyms and Abbreviations xvii

Glossary xxi

Acknowledgements xxiii

Preface xxv

Introduction and Scope 1

1.1   Case Study- Hickson and Welsh LTD, England (1994) 1

1.2   Introduction 3

1.3   The Need for Management of Organizational Change 5

1.4   Organization of the Book 6

1.5   A History of Organizational Change Management 11

1.6   Definitions Related to Management of Organizational Change 16

Corporate Standard for Organizational Change Management 21

2.1 Case Study – BP – Grangemouth, Scotland (2000) 21

2.2 OCM Background 24

2.3 Management Commitment 25

2.4 OCM Policy 26

2.5 OCM Workflow 27

2.6 OCM Procedure 28

2.7 Definition of Organizational Change 29

2.8 Roles and Responsibilities 32

2.9 Initiate an Organizational Change 32

2.10 Review the Change 34

2.11 OCM Risk Assessment 35

2.12 Action and Implementation/Transition Plans 55

2.13 Post-Implementation Monitoring 59

2.14 Closeout 61

2.15 Conclusion 61

Modification of Working Conditions 65

3.1 Case Study – Esso – Longford, Victoria, Australia (1998) 65

3.2 Modifying location, communication, or time allocation for people 68

3.3 Case Study – Changes in shift schedules and staffing during turnarounds 69

3.4 Changes to terms and conditions of employment (e.g. hours, shifts, allowable overtime) 72

3.5 Staffing during turnarounds, facility-wide emergencies, or extreme weather events 74

3.6 Impacts and Associated Risks 76

3.7 Special Training Requirements 79

3.8 Conclusion 80

Personnel Changes 83

4.1 Case Study – Union Carbide – Bhopal, India (1984) 83

4.2 Case Study – Bayer CropScience, LLC – Institute, West Virginia, USA (2008) 87

4.3 Changes in Plant Management, Such as Plant Manager or EHS Manager 91

4.4 Replacement of a Subject Matter Expert (SME) 92

4.5 Replacing the Incumbent in a Position that Directly Affects Process Safety 93

4.6 Strikes, work stoppages, slowdowns, and other workforce actions 93

4.7 Emergency Response Team Staffing 95

4.8 Impacts/Associated Risks 95

4.9 Organizational Change Procedures versus OCM for new hires, promotions, etc. 97

4.10 Conclusion 98

Task Allocation Changes 99

5.1 Downsizing Examples 99

5.2 Task Allocation Changes 101

5.3 Job Competency Change 102

 5.4 Case Study – Bayer CropSscience LLC – Institute, West Virginia, USA (2008) 103

5.5 Assigning New Responsibilities 105

5.6 Temporary Backfilling 106

5.7 Vanishing Task Allocations 106

5.8 Case Study – BP – Whiting, Indiana, USA (1998 – 2006) 107

5.9 Impacts/Associated Risks 109

5.10 Conclusions 111

Organizational Hierarchy Changes 113

6.1 Centralization or Decentralization of Job Functions 114

6.2 Case Study – Esso – Longford, Victoria, Australia (1998) 115

6.3 Reorganizations and De-layering the Hierarchy 117

6.4 Impacts/Associated Risks 119

6.5 Changes to Span of Control 121

6.6 Impacts/Associated Risks 122

6.7 Linear vs. Matrix Organization 122

6.8 Case Study – BP, Texas City, Texas, USA (2005) 124

6.9 Impacts/Associated Risks 126

6.10 Acquisitions, Mergers, Divestitures, and Joint Ventures 127

6.11 Case Study – Anonymous, USA (1998) 127

6.12 Associated Risks 128

6.13 Case Study – Union Carbide, Bhopal, India (1984) 129

6.14 Changing Service Providers 132

6.15 Impacts/Associated Risks 132

6.16 Conclusion 133

Organizational Policy Changes 135

7.1 Case Study – Dupont, Delaware, USA (1818) 135

7.2 Changes to Mission and Vision Statements 136

7.3 New and Revised Corporate Process Safety Related Policies/Procedures 138

7.4 Major Changes to Policy of Budgets for Maintenance or Operations 139

7.5 Impacts/Associated Risks 140

7.6 In/Outsourcing of Key Departmental Functions Such as Engineering Design or Maintenance 142

7.7 Staffing Level Policy Changes (shutdowns, turnarounds, startups) 144

7.8 Special Training Requirements 146

7.9 Conclusion 146

Appendix A. Example Tools for Evaluating Organizational Changes 149

Appendix B. Example Procedures for Managing Organizational Changes 199

Index 236

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