Chapter 4

The Proprietary Security Organization

Goal: To acquaint students with the role of security within an established organization.

Objectives: 

• To understand how companies determine the need for a  security organization.
• Discus security's place in the organizational structure.
• Explain the security manager's role and responsibilities in the organization.
• Identify the steps in organizing the security function.

Abbreviated Lecture:

WSU Criminal Justice Professor Paul Johnson, Ph. D., points out that our text's treatment of "authority" and its types are confusing. We define authority as "the right to command or direct." The " chain of command" in an organization is the line of authority within it, from top to bottom. "Line" authority refers to those involved directly in accomplishing the organization's mission. "Staff" authority refers to those who serve in an advisory capacity to a key line executive.  The text gets into discussions of types of authority.  I don't plan to get wrapped around the axle on this issue.  Let's just say that authority is the right (and responsibility) to direct others. 

Does every private sector company need or have a security manager and security organization?  Look around; perhaps you work at a small company in a mall.  It sells athletic shoes.  It has one full-time employee (maybe the owner) and three part-time employees.  This little business will very likely not have a security manager or security staff.  (However, usually the owner will have to perform some security-related tasks, such as robbery response training, locking up at the end of work, shoplifting prevention, etc.)  The owner might call upon the local police department's crime prevention officer to help set up the security program.

Larger companies such as fast food franchises and convenience stores usually have regional or national security organizations that look out for the entire company and its outlets or stores. 

Some companies hire consultants to set up a security program.  The consultants might advise on "gates, guards, guns"; help set up a physical security program; provide security training; etc.

Manufacturing and other large companies usually have an in-house security management organization with a proprietary or contract security officer component.  Sometimes the security and safety functions are combined.  (Later in the course we will discuss some functions that are related to both security and safety.)

Assuming there is a security manager, to whom should he or she report?  Obviously, the higher up in management, the better.  In my own case, I report to a very senior vice-president, who in turn, reports to the company president.  That gives me  "the ear" or "face time" with high-level officials in the company.  The lower down the chain of command, the lower the level of interest and support for security - that's been my observation.  It makes sense, doesn't it?  

Let's get back to the security organization and where it fits.  It is a "staff" function.  This means it usually falls under and supports the "line."  In a manufacturing organization, we might think of the assembly line as the "line."  It makes the products and the products are what bring money, in the form of sales, to the company.  The line usually is what is called "direct," in that employees on the line charge their labor directly to the production of some product.  The staff usually supports many product lines and is often referred to as "indirect" or "overhead."  Staff, such as security, safety, human resources, finance, internal audit, legal, are part of the "cost of doing business."

Why is it important to understand this?  First, because it means that when a staff outfit like security directs some action, let's say, permanently closing a gate, it has an effect, usually, on the line.  Perhaps production workers use that gate frequently to move product.  Now you've had an impact on them by closing the gate.  That can drive up costs.  Lesson: always coordinate security actions with those upon whom there will be an impact.  Second, security, as an overhead cost, is usually among those being looked at when costs are cut.  Keep that in mind!

Read all the info in the text (Chapter 5)  about organizing the security function.  My office, for your information, is organized similarly to the diagram on page 65.  Relating to the discussion of delegation of authority (page 65), I delegate authority to a "captain" to run the security officer sections.  I check up, and I regularly visit with the officers on duty and in meetings, but the day-to-day running of that part of my outfit I leave up to the captain and he, in turn, delegates some authority to the sergeants (one sergeant per platoon).

Pages 67-68 in the text list some duties of security personnel.  Look that list over.  Do you have any questions about any of the duties listed there?  Are there other duties you think might be done by security staff?

On pages 71-72 there is a section called "departmental evaluation."  In my business, my department gets evaluated by:

• Company auditors
• Defense Security Service (classified programs)
• Bureau of Alcohol, Tobacco, Firearms and Explosives ("ATF") - they regulate commercial activities involving explosives and propellants
• NASA  - they check security of NASA programs that we work on (in fact, right now I am very involved in a total review of security by NASA.  This is in partial response to the Columbia Space Shuttle accident.  Even though terrorism had nothing to do with that tragedy, NASA wants to make sure that terrorists can't affect future Shuttle flights.)
• Department of Defense - they regulate government programs involving explosives and propellants

That's not an all-inclusive list but it shows that we get checked up on.

ASSIGNMENT: Answer Review Question 5 on page 73.