Chapter_4 - Chapter 4 The Proprietary Security Organization...

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Unformatted text preview: Chapter 4 The Proprietary Security Organization Security's Place in the Organization (pgs. 5663) Where and how the inhouse or proprietary security department operates within the organizational framework and how this relates to the total security system of individual concerns depends on the needs of that organization. In evaluating the need to install or expand the company security function, the immediate urgency for increased security must be considered along with status, growth, and prior performance of the current security effort, if any. The head of security for a company is the Chief Security Officer (CSO). Reduced Losses and Net Profit (pg 60) With soaring crime rates that currently cost businesses approx $114 Billion annually, every business is targeted for losses. And all of these losses come off the net profit. An effective security operation could cut losses by as much as 75%. Any security operation that can minimize and reduce losses and maximize net profits can greatly benefit a business financially. Nonintegrated Structures (pgs 6163) In spite of the obvious advantages of integrating security into the organization as an organic function (an independent, basic unit of the firm like accounting or personnel), many firms continue to relegate this operation to a reporting activity of some totally unrelated department. In this way, security was traditionally attached to the financial function of the organization because financial control was usually the most urgent need in a company otherwise unprepared to provide internal security. The disadvantages of such an arrangement are severe enough to endanger the effectiveness of security's efforts. The assignment of security under the financial officer is a clumsy arrangement representing bad management practices. Relation to Other Departments (pgs 6163) Every effort should be made to incorporate security into the organizational functions. Security considerations should ideally be as much a presence in every decision at every level as are cost considerations. This does not mean that security factors will always take precedence over matters of production, merchandising, etc. If security recommendations are overridden from time to time sometimes a wise decision when the cost of disruption involved in overcoming certain risks is greater than is the risk itself this will be done with full knowledge of the risks involved. Organizing the Security Function (pgs 63 73) An extraordinary common mistake in security planning is to put the cart before the horse that is, to create a department, hire personnel, and then look for something for the department to do. In reality, need comes first. A hazard must exist before it becomes practical to establish an organized effort to prevent or minimize it. The first step in security planning is a detailed analysis of potential areas of loss, their probability, and their gravity in terms of corporate goals. Organizing the Security Department (pgs 6373) The security organization, like any other organizational structure, must be designed to meet particular needs. Some common matters of concern in any organizational structure are delegation of authority, span of control, and the question of how many personnel are required. Span of Control: Refers to the number of personnel over which any individual can effectively control. Organizing the Security Department (Cont.) (pgs 6373) Number of Personnel: Since security personnel are the largest single item of expense, they must be used with the greatest efficiency possible. Only careful individual analysis of the needs of each facility will determine the optimum number and use of security personnel. One rule of thumb concerns the number of personnel required to cover a single post around the clock, providing coverage for three 8 hr shifts. The number is not three but rather 4.55 persons to allow for vacation time, sick leave, termination, and/or training. ...
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