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The Impact of Criminal Violence on HRM in Jamaica

Paper presented

at the

HRMAJ Conference, Hilton Hotel, Kingston, Jamaica

November 2009

Noel M. Cowell & Tanzia S. Saunders,

Department of Management Studies

The University of the West Indies, Mona, JAMAICA

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Outline of Presentation

About the Research
Conceptualization
Background and Context
Theoretical Framework
Literature
Findings
Modelling the HRM response
Policy Recommendations

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About the HRMAJ-UWI Joint Study

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HRMAJ-UWI Joint Study

Gained access via HRMAJ’s and researchers’ networks to a convenience sample of 20 selected firms located along the industrial corridor which UWI academic Herbert Gayle refers to as the “blood belt”
Looked at “criminal violence” which is one form of crime instead of crime in general.

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Why did we do it?

The study is literally unprecedented so why did we do it?

HRMAJ asked us!
The levels of criminal violence and murders recorded in Jamaica is itself unprecedented for a nation that is not at war.
YET we have no public policy regarding how HRM should be handled in the face of criminal violence

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Research Objectives

This study sets out to:

Gain insights on the forms of criminal victimization, especially criminal violence impacting people in organizations located in an environment marked by high levels of crime and criminal violence.

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RESEARCH DESIGN

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April 28, 2009

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About the Organizations

Large, with well developed formal HRM functions
Located close to violence prone communities East to West strip of KMA

Rockfort to Six Miles (Spanish Town Road)

Employed persons who live in, traverse or perform work in or near areas prone to violence
Chief HRM/Security functionaries were targeted.

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Sample of the 26 Respondents

Expert informants would have knowledge of the levels of victimization and responses of organizations and people:

HR Managers,
Academics,
Social Entrepreneurs
Security Consultants,
Peacemakers/Mediator,
Senior Crime Fighters

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Primary Research Questions

Did organisations experience a “criminal violence effect?”

Sensitivity to criminal violence as an issue impacting the viability, sustainability and survival or the organisation
Fear of criminal violence

What conscious steps did the organisations take in response to their exposure to high levels of criminal violence.

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The Literature

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Crime

According to Schmallager (2004) crime refers to the conduct of individual(s) in violation of “criminal law of a state, the . . . government or local jurisdiction for which there is no legally acceptable justification or excuse” (2004: 5). These activities if detected are punishable by the State.

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Criminal Violence

Violence refers to extreme force.
Violence becomes criminal violence when the threat and or use of physical force by an individual or a group of persons is in breach of the law. The most extreme breach of this nature is murder the unlawful or intentional killing of one human being by another. (Cowell and Saunders 2009)

Threats
Extortion
Assault
Murder

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The Caribbean Situation

“... crime and violence present one of the paramount challenges to development in the Caribbean.”

( 2007, Joint UNDP/World Bank Report on Drug and Crime in the Caribbean)

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Business firms are victims

Francis et al (2004) conducted a Business Victimisation Survey on 400 firms during 2002). The results, itemised below, were instructive:

33% of all firms were either victims of robbery or extortion,
52% suffered from theft (carried out mostly by employees)
50% experienced fraud,
7% other forms of victimisation (Francis et al 2004).

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One response is strategic HRM

Chow (2004) suggests that HR practices must be sensitive to cultural norms and the challenges that workers face.
Globally, organizations faced with the challenges of a rapidly changing environment continue to search for ways to bolster their performance and competitiveness through employing effective, context specific and compatible human resource management practices (Ogilvie, 1986; Chow, 2004; Niehoff & Paul, 2000 and Al-Hamadi et al 2007).

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Theoretical Framework

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What we expect to find

HIGH LEVELS OF CRIMINAL VIOLENCE

PERCEPTION OF VULNERABILITY

FEAR OF VICTIMIZATION

RELOCATION OF BUSINESS

CHANGES IN HRM POLICY

AWARENESS OF HIGH CRIME

INSTANCES OF OF VICTIMIZATION

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Findings

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In this section we . . .

Look at homicides data – national versus industrial corridor;
Explore some social norms that dominate; the environment in which these firms operate;
Look at data on managers killed over the last 30 years and speculate about management as an “occupational hazard”
Explore the “crime effect”

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Table 1: Murders along the Industrial Corridor (2005 – 2008)

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National
Year	2005	2006	2007	2008
Number of reported homicides	1674	1340	1583	1611
Murder rate	63	50	59	60
Industrial Corridor - East (Rockfort) to West (Six Miles)
A: St. Andrew South Division ( Communities)
Year	2005	2006	2007	2008
Number of reported homicides	209	195	211	223
Murder rate	95	88	95	101

Source: Based on data compiled from statistics provided by the Police National Computer Centre, Jamaica Constabulary Force.

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Anytime me hungry again . . .

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Source: “Minister in Jamaica crime gaffe”

By Nick Davis, BBC News, Kingston, http://news.bbc.co.uk/2/hi/americas/8076737.stm

accessed September 20, 2009

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Future talent pool?

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That is ... If they survive!

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1970s - Permanent Secretary in the Ministry of Works, Ted O'Gilvie, killed
1990s - Human Resources Vice-President Anthony Finnegan killed in his front yard, by a gunman.
1990s - Asian expatriate accountant employed to KFC, murdered.
2001 - Damian Lynch, 24 year old warehouse manager at the Jamaica Livestock Association killed.
March 2001 - Barbara Cadogan, Senior Director of Human Resource Management and Administration at the Ministry of Transport and Works, attacked.
2005 - Wayne 'Ricey' Clarke supervisor at the Caribbean Cement Company, murdered.
2006 - Rosa Goveia, 37 year old general manager of B.J. Hanna and Sons, killed.
June 2008 – Douglas Chambers, former chairman of the Jamaica Urban Transit Company, murdered.

Killed/injured in the Line of Duty

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Incident

1970s - Permanent Secretary in the Ministry of Works, Ted O'Gilvie, killed allegedly because of efforts to staunch “the bleeding of public funds on the McGregor Gully project, controlled by thugs affiliated to the People's National Party.”

1990s - Human Resources Vice-President Anthony Finnegan killed in his front yard in the 1990s, by a gunman.

1990s - Asian expatriate accountant employed to KFC, murdered at a time when he was allegedly attempting to clean up financial irregularities at the company.

2001 - Damian Lynch, 24 year old warehouse manager at the Jamaica Livestock Association was killed inside his office. Police declined to confirm reports that the gunman was one of two former employees fired by Mr. Lynch earlier this week.

March 2001 - Barbara Cadogan, Senior Director of Human Resource Management and Administration at the Ministry of Transport and Works, was attacked and physically assaulted by an employee while in her office at 140 Maxfield Avenue, St. Andrew. Reports were that the employee attacked the personnel manager because he was upset because his position at the PWD had been made redundant.

2005 - Wayne 'Ricey' Clarke supervisor at the Caribbean Cement Company, murdered in October 2005 in the wake of a long running dispute between himself and a junior employee who had threatened his life

2006 - Rosa Goveia, 37 year old general manager of B.J. Hanna and Sons, was killed at the entrance of her workplace. Several workers had been laid off their jobs just previous to the incident.

June 2008 – Douglas Chambers, former chairman of the Jamaica Urban Transit Company, murdered towards the end of a bitter trade dispute involving the restructuring of the company and the lay-off of a number of workers.

An employee of one of the utility company has been murdered when he attempted to make a disconnection for non-payment of utility bills. Others have been abducted when they enter violence prone and depressed communities.

Businessman and Clarendon Justice of the Peace Maurice Azan, along with his stepson, Lloyd Phang, were murdered by gunmen at Azan’s workplace.

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Criminal violence effect

Not afraid but “concerned” – criminal violence is accepted and taken for granted.
No reports of extortion or protection.
Security consciousness and visible elements of security.
Undisclosed “millions” spent on security.
High proportion of worker organized pilferage.

Workplace criminals are known but comprises are made

Workers affected at work and in their communities.

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Patterns and Responses

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Incident	Frequency	Response
Certain categories of workers take they community norms of violence and disregard for authority to work	pervasive	Outsourcing – use of 3^rd party contractors
Managers have been beaten while they discussed a termination with a contractor	1	Outsourcing
Flare-up of violence – late for work or no show	pervasive	Accommodate workers – double shifts, toiletries at work. Only 1 organization was indifferent - strict
Workers robbed at the bus stop adjacent organization	pervasive	Police asked to patrol area
Workers abducted/killed in carrying out work	2	Security consciousness – protect life over company property
Workers stressed/traumatised in the face of violence	pervasive	Counsellors engaged
Guns at work – intimidation, protection	1	Police called in but no arrests made
Workers fearful of workers connected to criminal elements	1	Police and private security patrols Truce called at work
Workers afraid to participate in disciplinary hearings – “informer fe dead culture”	pervasive	Strategic discipline: witness protection, union cooperation

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Modelling the Corporate Response

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Modelling the Corporate Strategic Response �(Summary)

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Corporate Strategic responses to criminal violence

Human Resource Management Strategies

Community Engagement Strategies

Corporate Security Strategies

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Modelling the Corporate Strategic Response �(Summary)

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HRM initiatives

Corporate

Security

Community Engagement

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3^rd Party contracts

Security checks

Welfare provisions

Affirmative action

Strategic discipline

Work with aged/indigent

Educational programmes

Union relationship

Strategic alliances

Internal/External

Police and private security

Supporting sports

Supporting Community Centres

Work time accommodation

Supporting enterprise development

“Treats”

Supporting “fund raising”

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Organisations could be distinguished by the way in which they combined these different elements of their overall strategy and by the degree of emphasis placed on each.
We developed two “ideal types” falling at either end of a “reaction continuum”

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The CV Reaction Continuum

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Zero tolerance

Low Tolerance

Med-tolerance

High-tolerance

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Zero Tolerance Model	High Tolerance Model
Strong resolve to exercise managerial prerogative in respect of disciplinary matters and to control the norms and practices within its domain of activity.	An acknowledgement of their inability to exercise managerial prerogative in respect of certain categories of staff. At the extreme they sub-contract the employment of such staff to other firms and sub-contractors, who must in turn be responsible for hiring, firing, other forms of discipline, remuneration and training.
Corporate security arrangements supported by senior personnel	Weak or non-dedicated corporate security arrangements.
A close formal and informal relationship with the police strengthened by the existence of dedicated security personnel, with background in state security.	Relatively shallow and tenuous relationship with state security.
Well defined grievance procedures and disciplinary codes managed by senior human resource management personnel.	Relatively poorly developed human resource management function.
Where a union is in place, management seeks to forge a common perspective with respect to criminal activity.	Adversarial union management relationships. No effort or little success in forging a common perspective in discipline.
A deliberate strategy of courting a high trust relationship between workers and management	Low trust combined with little or no strategy for trust-building.
Close proactive relationship with the volatile areas in close proximity to the plant. The relationship is characterised by “good neighbourliness” in which the corporation seeks to set the agenda of community relationships through social investment. Clearly established standards within their own environment is combined with respect for the community its norms and values. This is manifested in a willingness to talk to community leaders, to visit community members in their homes, to help them but to respect their dignity and keep their confidences.	Poor or non-existent standards for interaction with the community, resulting in shallow tenuous, reactive, unpredictable and largely insecure relationships.
Close working relationship between HRM, Corporate Security and Community Relations.	Human resource management has responsibility for corporate security and community relations.

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Recent Trends and Patterns – causes for concern

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Trends and Patterns

High levels of redundancies taking place

Estimated 40,000 job since the start of the recession up to October 2009 (http://www.jamaica-gleaner.com/gleaner/20091108/lead/lead6.html)

In the last 6 months 3 workers have been implicated in the killing/assault of managers.

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Recent attacks

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Description	Status and Date
Lloyd B. Smith, Business Man, Founding Editor, at Western Mirror	Attacked by a former employee on June 29. Matter is before the courts
Elva Mullings, Manager at Tools Hardware	Murdered at her home on October 5. An employee has been arrested and charged with murder. Matter is before the courts.
Rudolph Gschloessl, German national and Co-owner of Cafe Aubergine	Murdered at his home on October 25. An employee has since been arrested and charged with murder. Before the Courts.
Sandra Supersad, Businesswoman /Manager of Xtra	Murdered as she approached her home on November 4. Being investigated by the police

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Concerns

We are not in a position to definitively blame workplace disputes/investigations for these acts of violence against employers/managers
We know that workers have been implicated, arrested and matters are before the courts in 3 of the 4 cases and we know that rumours abound
The question is; to what extent does this environment influence HRM practices.

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Policy Recommendations

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Management of HRM

Given the nature and patterns of criminal violence HR Managers should be more conscious of the cultural norms pervading the society. Greater care has to be taken in regards to:

Recruitment and Selection
Discipline
Conflict/dispute resolution
Termination (redundancy, discipline)

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Examples of strategies

Robust and ongoing background checks – police and private investigators
Fair mechanisms to deal with conflicts at work
Polygraph tests, camera, surveillance, metal detectors
Zero tolerance approach towards deviance in the workplace and within the community they operate
Alliances with police
Alliances with corporate security unit

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Addition Policy Indicated

Individual organisations – must focus on the right mix of strategies
Companies must work together to share strategies.
Companies must secure state intervention – there are costs and social benefits to their strategic intervention.

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Recommendations

There is a need for honest and open dialogue among stakeholders to devise a strategy to manage crime and violence in Jamaica involving:

Business operators
Academics
Governments and Politicians
Crime fighters
International security agencies

Funding for research aimed at informing public policy
Target the sources, causes and stimulants of crime and violence

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References

McDonald, Artnell, What Effects does Extortion

have on the Operations and Profitability of

Building Construction Industry in Metropolitan

Kingston, MSc. Thesis, Department of Civil

Engineering, The University of the West Indies,

(2003), St. Augustine, Trinidad

Payne, Carroll, Understanding Terrorism:

Source : Harriott, A. (2002). Crime Trends and Caribbean Responses

CARICOM

CONFERENCE ON THE CARIBBEAN:

A 20/20 VISION

A STRATEGY AGAINST CORRUPTION

PREPARED BY:

OLGA NAZARIO, PH. D.

Senior Associate

CASALS & ASSOCIATES, INC.

1199 N. Fairfax Streeet, 3

rd

Floor

Alexandria, VA 22314

onazario@casals.com

http://www.casals.com/

Washington, DC June 19-21, 2007

THE IMPACT OF TERRORISM AND EXTORTION ON ENGINEERING, CONSTRUCTION AND DEVELOPMENT

Hilton McDavid, D.Sc., The University of the West Indies

Anthony Clayton, Ph.D, ALCAN Professor of Caribbean Sustainable Development, UWI, Mona

United Nations Office on Drugs and Crime and the World Bank’s Latin American and the Caribbean

Region, “Crime, Violence, and Development: Trends, Costs, and Policy Options in the Caribbean,”

Report No. 37820, March 2007 (http://www.unodc.org/pdf/world%20bank%20C&V%20Report.pdf).

5

)(Shang-Jin Wei, “Corruption and Globalization,” Policy Paper No.79-2001 (Washington, DC: Brookings Institution (www.brookings.edu).

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Strategies

Multi-stakeholder approach

Government

Min. of Security
Min of labour

Chambers of commerce etc
Security forces
Business networks – sharing resources and strategies

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Summary

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Summary

Businesses are negatively impacted by criminal violence and an emerging sub-culture of violence resulting in serious injuries and death and even comprises
There is no handbook of HRM strategies and practices in the face of criminal violence in Jamaica
The threat of criminal violence undermines managerial authority and managerial effectiveness;
Existing estimates of the impact of criminal violence are almost certainly under-estimates;
There is an urgent need for social dialogue, research and public policy to tackle the manifestations of criminal violence that pervade organizations.

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THE END

Thank You
We welcome your comments and questions.

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